Doing Business in India Has Advantages

Doing business in India has advantages, with growing attractiveness. According to a study by Goldman Sachs, the Indian economy is expected to grow at the rate of five percent or more through the year 2050 -- which is far better than forecast growth rates in the U.S., currently at less than two percent.

Such consistent growth and the adundance of a higly-skilled workforce makes India ripe for investments, and overseas business opportunities for those seeking to grow beyond the U.S. borders.

The advantages of doing business and investing in India include a federal government system with clear powers established between the central government and state governments, a liberal and friendly investment climate, and liberal and clear policies on foreign direct investment from other major economies of the world.

The government also places a high importance on infrastructure development, including highways, ports, railways, airports, power, telecom, and more, and the Indian government actively seeks domestic and private investment for its infrastructure sector development.

As for the ease of doing business in India, the country is considered on the lower end of the scale among 183 global economies -- with a ranking of 134 according to The Doing Business Project, which provides objective measures for business regulations and their enforcement. Launched in 2002, The Doing Business Project looks at domestic small and medium-sized companies and measures the regulations applying them to their life cycle, according to the organization's Web site.

But while India's 2011 rank is 134 out of 183, the country's doing-business conditions are improving, as India's rank in 2010 was 168. Among the country's ease attributes, protecting investors and getting credit rank highest. India is ranked 32nd among 183 economies for getting credit, and 44th in protecting investors.

Among the greatest challenges for doing business in India is dealing with construction permits (177 rank) and enforcing contracts (182 rank).