India Rises in Business Environment Ranking, Attracts Foreign Investment

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India has climbed six places in the global Business Environment Ranking (BER) by the Economist Intelligence Unit (EIU). This indicates that doing business in India has become easier and the country has the potential to become a significant manufacturing power. However, India still faces competition from emerging markets in Southeast Asia, and protectionist attitudes and excessive red tape are concerns for investors. India’s market opportunities category scores the highest, supported by the country’s large and growing domestic market, while the political environment category has the lowest score.

Bloomberg reports that Apple’s contractor, Taiwan’s Foxconn, is investing $700 million in a factory near Bengaluru. This factory could expand the production of Apple’s smartphones in India and will employ around 100,000 workers. The new factory is expected to boost India’s share of iPhone assembly to 10-15%, from the current sub-5%. Other companies are also shifting their manufacturing to India, such as Samsung, which announced its plan to invest in setting up smart manufacturing capabilities at its mobile phone plant in Noida.

India’s strong and stable economy, widening incentive programs, infrastructural improvements, and access to a large labor supply make it an attractive destination for investors. In addition, policy reforms are making it easier to do business in India. The researchers at EIU predict that further improvements in areas such as education, better labor participation rates, infrastructure, taxation, and trade regulation will boost investment in India.

The country’s golden opportunity to galvanize its manufacturing sector, which only accounts for less than 20% of its GDP, could drive economic growth and exports. India’s improving business environment also presents an excellent opportunity for women investors, as they can play a significant role in shaping India’s economic future. The Indian government has implemented various initiatives to promote women’s participation in the economy, such as the MUDRA Yojana, a program that provides loans to women entrepreneurs. Women investors can contribute to India’s growth and development by investing in the country’s manufacturing sector and supporting the government’s efforts to build a robust and inclusive economy.

Re-reported from the story originally published in LokMatTimes English