NOW- The Time To Hop Onto The India Growth Bandwagon

#FOMO - Here is a list of some key factors that make India unmissable in your growth journey

$1.7 trillion – Anticipated consumer spending between 2019 and 2030

Yes, you read that right! As per the latest data from IMF, for October 2022, this is equivalent to the current GDP of Australia and more than the current GDP of Mexico or Spain or Switzerland or Singapore among many others!

So, irrespective of the industry – healthcare, ed-tech, fin-tech, e-commerce, FMCG, manufacturing, anything - this is a market you just cannot afford to ignore.

But to gain from this story, it is key to understand the preferences of this 1.3 billion large and growing demographics. In sync with the growth rate, the awareness and preferences of Indian consumers also evolves rapidly, thus making it imperative to have in-depth understanding of the local market.

2nd largest internet users globally – Heaven for any digital product

If you are building a digital product, then these below facts speak for themselves:

• Instagram’s largest market and TikTok’s (former) largest market – India
• Growth of online gaming in India – CAGR of 38% making it the 2nd largest market globally
• ‘India – The next global SaaS capital’ is the title of a recent report by CIII, as per which the growth of SaaS adoption in India has witnessed an annual growth of 20%  and is poised to constitute 7-8% of the global market by 2025
• E-commerce market in India is expected to reach US$ 74.8bn by 2022 end at 21.5% growth rate, and expand exponentially to reach US$ 350 bn by 2030

Many such examples are available in plenty and they all point out to the fact that-

India’s impeccable internet penetration and growing usage makes her an inevitable fixture in any digital product company’s growth plans.

But, the laws around data security, privacy, storage, online payments, content moderation regulations, etc. keep evolving continuously and at a breakneck speed. Monitoring and adherence to these laws, as well as localisation of the experiences for Indian consumer and enterprise audience is critical for the success of internet companies in India.

Resilient growth focused schemes by Indian Government

Indian Government’s multiple schemes and relaxations have helped India rapidly climb up 79 places in just 6 years in the World Bank’s Ease of Doing Business Index to rank at 63. Increasing number of Free Trade Agreements with multiple countries has been bolstering the export potential from manufacturing sectors.

Relaxed FDI norms in key sectors such as healthcare, insurance, pharmaceuticals, etc. makes it lucrative for companies to expand their base in India.

Besides, the ‘Make In India’ program has strengthened India’s internal capabilities in all spheres so remarkably that not just Indian companies, but foreign companies can now benefit from the really strong and adept workforce and internal infrastructure. If you haven’t already heard of UPI (Unified Payments Interface), then you will be amazed at how this 75 years young, largest democracy of the world with multiple ethnicities, languages and culture has become a ‘global case study’ for countries to revamp their digital payments infrastructure.

Indian talent: Low cost + High quality = Dream team

Many leading startups like Go-jek, Salesforce, Bridgeweave, etc. as well as giants like Facebook, Apple, American Express, etc. build remote teams in India to leverage the ‘too good to be true, but famously true’ cost-quality paradigm.

Building remote teams in India has proved to be 60-70% cost effective for companies.

As far as the talent quality is concerned, India is the leading tech talent supplier to the world. Even in other fields, be it medicine, finance, management, biotechnology, data science, research, etc. Indian talent is widely recognised and sought after.

As per OECD and World Population Review data, India’s working age population is 67.4% (2021) with a median age of 28.4 years, thus making it one of the largest pools of highly skilled, cost effective people with diverse backgrounds as well as talents and many years of enthusiastic working life ahead of them.

So, either as a consumer market, or as a talent market, India will prove to be a winner for your company

However, to optimize the benefits to your business, certain key pointers should be kept in mind

• It makes business sense to understand the Indian consumer closely, by being present in India and customizing the Indian experience into your product or service
• Adherence to the ever changing laws related to your industry, labor law regulations, taxation and investment considerations, etc. is critical for smooth functioning of your business. Best to leverage local expertise to avoid hefty penalties, reputational loss and project delays
• Even if your product is not built for the Indian market, leveraging Indian talent to build those products or services can be a game changer for your business in terms of the long term cost and skill advantage. You should certainly consider building remote teams in India, but at the same time be cautious of the evolving compensation needs, taxation laws and efficiently managing these remote teams

Are you worried about the cost, effort and hassles of setting base in India?

Well, you need not! Our experts at Expat Orbit assist companies to enjoy the benefits of expansion into India, without undertaking any of the hassles associated with it.

If you are a new entrepreneur planning to test the waters first, we invite you to our special program for overseas entrepreneurs. Experience India first-hand for a few months before deciding to establish a business here.

As part of the program, we'd be sponsoring visas to India, taking care of logistics, and accommodation, and assisting with acclimatization to the local culture.

If you wish to leverage the Indian talent market or even explore the longer term fit for your offerings in India, then we become your extension in India for all administrative and HR purposes, with our Employer of Records program. Without even incorporating your entity in India, we set up your entire remote team, take up all employer related legal obligations including their payroll, office infrastructure, etc. while the team works dedicatedly for your company abroad.