- World’s largest democracy with 1.2 billion people.
- Stable political environment and responsive administrative set up.
- Well established judiciary to enforce rule of law.
- Land of abundant natural resources and diverse climatic conditions.
- India’s growth will start to outpace China’s within three to five years and hence will become the fastest large economy with 9-10 per cent growth over the next 20-25 years (Morgan Stanley).
- Investor friendly policies and incentive based schemes.
- India’s economy will grow fivefold in the next 20 years (McKinsey).
- Cost competitiveness; low labour costs.
- Total labour force of nearly 530 million.
- Large pool of skilled manpower; strong knowledge base with significant English speaking population.
- Young country with a median age of 30 years by 2025: India’s economy will benefit from this “demographic dividend”.
- The proportion of population in the working age group (15-59 years) is likely to increase from approximately 58 per cent in 2001 to more than 64 per cent by 2021.
- Huge untapped market potential.
- The urban population of India will double from the 2001 census figure of 290 m to approximately 590 m by 2030 (McKinsey).
- Progressive simplification and rationalization of direct and indirect tax structures.
- Reduction in import tariffs.
- Full current account convertibility.
- India is member of WTO.
- Robust banking and financial institutions.
Source
