Investors take note: How India is defying the crunch

There are a few golden rules when it comes to developing commercial interests on foreign shores. Granted, market research is pretty vital, and a sound business plan is also recommended. But most importantly for all you budding entrepreneurs, don’t chance your arm somewhere crippled by the economic climate – it’s probably going to end in tears.

Then again, that’s easier said than done. So where can you find a country that has shrugged off the dastardly threat of the credit crunch, and is in fact thriving amidst the economic slowdown. Ladies and gentlemen, look no further than India. Boasting a whopping GDP of £545bn and proving to be a fruitful investment destination, it’s no surprise that businesses are cashing in on the World’s second-fastest-growing economy.

In fact, India has leapfrogged China in terms of private equity investments with cash injections now totalling £10bn, compared with just £2bn four years ago. Corporates are generating a surplus of £86bn a year, and foreign direct investment recently shattered the £17bn barrier. Add a 22% growth in imports and exports into India, and you, quite literally, have stumbled upon a goldmine.

So let’s break down the positives. A burgeoning middle class with disposable income? Check. A large English-speaking population? Check. Corporate and national growth annually? You bet. India is flourishing in the heat of a consumer boom, so why haven’t more UK businesses hedged their bets and taken the risk?

Part of the reason is the tedious and often complex lengths one must go to in order to register a business. Those with a phobia of paperwork look away now. Approval is required on a variety of levels, and appropriate licensing is needed to establish a bank account. You’ll also need approval from the foreign investment board, plus registration with all relevant tax authorities.


Easy it won’t be, but expanding into India could be the best commercial decision you ever make.

(Startupoverseas.co.uk, 2009)