India's economy has demonstrated resilience despite a challenging external environment, says the World Bank in its latest India Development Update. India is projected to grow at an average rate of 6.5% in 2023-24, backed by robust domestic demand and strong macroeconomic fundamentals. Additionally, India has one of the world's largest holdings of international reserves at US$ 560+ billion as of March 2023. Gold reserves have also risen to US$ 44.1 billion. A well-crafted and prudent policy response to global spill overs is helping India navigate international and domestic challenges.
The recent announcements in India's Union Budget 2023 are also a testament to the government's emphasis on growth and its drive to boost capital spending, much-needed infrastructure with connectivity projects, and port modernization. Subsequently, India also stands focused on green and renewable energy, upskilling and job creation, and improving technology.
In demographic terms, India has the largest young population in the world. With new programs for healthcare, national digital libraries for children, physical libraries in rural areas, and a dedicated program for training teachers, the government aims to empower the youth to reach new heights in terms of skills, knowledge, and innovation.
Being the third largest ecosystem for startups globally, India currently houses 75,000+ startups and is home to 107 unicorns with a total valuation of US$ 340.79 bn. India continues to make amendments to ease doing business by digitizing manual processes and interventions and reducing the burden of redundant compliances. It has also put a red carpet for investors through its National Single Window System for business approvals.
Digital India is more pronounced now with the launch of 5G services. Ranked 2nd internationally with over 1.17 billion subscribers and being the world's largest data consumer, India now opens opportunities in healthcare, education, banking, agriculture, factory automation, and many life-changing innovations.
India is likely to witness increased foreign direct investment and trade in the coming decade, with a recent slew of MOUs, bilateral agreements, and trade negotiations being signed with the USA, UK, Australia, Germany, UAE, Japan, and France in defence, space, healthcare, innovation, energy, academia, economic cooperation and trade, tourism, etc. Demographic factors, including India's educated population and multi-lingual capabilities, will likely augment these partnerships and enable the sustainability of foreign investments, making India a lucrative investment destination and a safe bet considering the evolving global landscape.
India's presidency of the G20 is also a testimony of the government's rigorous efforts to achieve accelerated, inclusive, and resilient growth, achieving SDG targets, transforming technology and digital public infrastructure, women-led development, and expanding green sectors to meet climate action targets. The 20-member club account for 85% of the world's GDP, and India's self-styled "Voice of the Global South" stresses the importance of powerful developing countries coming together and prioritizing multilateralism.
Going into 2023 marks the beginning of "Amritkaal", the 25-year period beginning from the 75th anniversary of its independence on 15 August 2022, leading up to the centenary of its independence, towards a futuristic, prosperous, inclusive, and developed society, distinguished by a human-centric approach at its core. India looks forward to making itself more business-friendly, and its efforts are driven towards becoming a US$1 trillion digital economy by 2025.
Handcrafted through decades of experience in assisting foreign businesses in India, Nexdigm's Doing Business in India publication is a guide meant to facilitate your India entry strategy and give international investors an overview of the local business, regulatory, and tax environment. It aims to provide the reader with knowledge of critical regulations and changes in the country while providing an overview of the demographic and key statistics. We hope you find our compilation informative and useful in understanding the dynamic business environment of India.