The World’s attention is on India as one of the fastest growing major economies, despite challenges caused by recent domestic reforms such as the demonetisation of Indian currency.
The Hon’ble Prime Minister of India, Shri Narendra Modi is attending the 48thWorld Economic Forum Annual Meeting taking place from 23 to 26 January 2018 in Davos-Klosters, Switzerland.Bringing together global political and business leaders, economists, policymakers and celebrities, this year’s theme is ‘Creating a Shared Future in a Fractured World’.
India has transformed itself in the past 10 years and its growth trajectory is on an upward path. Thecountry’s economic, business and regulatory environments are positively changing. So, what are the top five recent factors contributing to the rise of “Modern India” as an unrivalled destination for foreign investors and businesses seeking growth?
- India’s economic growth bounced back to 6.3%GDP in the third quarter of 2017, with future growth projected to accelerate to 7% plus during 2018. The outlook for the country remains hugely positive.
- The major structural reforms of demonetisation of Indian currency which took place in November 2016 and the introduction of the Goods and Services Tax 2017 are simplifying the business landscape.They aregradually improving transparency, accountability and compliance levels.
- India made an unprecedented 30-place jump in the World Bank’s Ease of Doing Business (EODB) rankings from 130 to 100 out of 190 countries, being the largest stride made by any country in South Asia. Execution is therefore becoming easer in India.
- India’s global sovereign rating was increased by Moody’s Investor Service to Baa2, being the first such upgrade in 14 years, making the country an even greater investment destination.
- India continues to benefit from the demographic dividend based on the country’s unrivalled youth population offering an innovative and dynamic workforce. The country is projected to become the youngest nation in the World by 2020 with an average age of 29.
The UK and India continue to remain key strategic partners across a variety of sectors, with ongoing collaborations,in areas such as defence, technology, masala bonds, life sciences, amongst others. The UK has been keen to maximise trade and investment opportunities based on established historical, cultural and diplomatic ties and there is immense potential for shared success between the two nations.
At a time of global financial uncertainty, the ongoing reforms and economic growth trajectory make India one of the most compelling investment destinations globally.
The India Business Group (universally known as IBG) is a leading business advisory consultancy working in the UK, EU and India markets. We work with ambitious businesses on market entry support and provide expertise, high level connections and cultural awareness to help devise global growth strategies.
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23 January 2018