The Exit Strategy Podcast

Episode 28 - The India Country Review With Swatick Majumdar (Special Episode)

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Swatick breaks it all down in this special episode about the country of India.

Strong economic indicators

  • India is the fourth largest economy in terms of purchasing power parity
  • The nation’s GDP is expected to grow by over 8.5 percent in 2010-2011
  • Liberal and transparent foreign investment regime
  • Well developed banking system and vibrant capital market
  • Strong and independent judicial system
  • Among the highest rates of returns on investment

    • Incredible human capital skills

    • A strong pool of scientific and technical manpower from such places as the  India Institute of Technology and the India Institute of Management
    • Over 255 of Fortune 500 companies getting services from India
    • Second largest English-speaking population in the world
    • Abundant, high-quality, cost-effective, competitive manpower. Over 100,000 IT professionals added each year
    • IT Industry over US$14 billion and growing at 50 percent per year

      • Pervasive entrepreneurial spirit

      • Prevalence of foreign technology licensing: Ranked 1st in the world
      • Availability of scientists and engineers: Ranked 2nd
      • Quality of management schools: Ranked 9th
      • Firm-level innovation: Ranked 12th
      • Firm-level technology absorption: Ranked 16th

        • Easy industrial licensing policy

        • Under the Industries (Development and Regulation) Act of 1951, an industrial license is only needed for items that fall under compulsory licensing, are reserved for the small-scale sector, or in a location that is restricted
        • All industries exempt from industrial licensing are required to file an Industrial Entrepreneur Memorandum
        • No approval is required, only notification needed
        • Financial sector reform
          • Stable tax regime; only three rates of indirect tax and trade facilitation measures have been introduced
          • The Foreign Exchange Management Act, of 1999 provides a liberal regime; forex procedures are straightforward
          • Stocks can be sold on without prior approval
          • Profits, dividends, and capital investment can be repatriated
          • Royalties can be paid by wholly owned subsidiaries to parent companies
            • ...more
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            The Exit Strategy PodcastBy Marcus Magarian