India

Country Overview
Population 1.2 billion

GDP (Purchasing Power Parity):

$4.962 trillion (2013 est.)
country comparison to the world: 4
$4.78 trillion (2012 est.)
$4.63 trillion (2011 est.)

GDP Composition by sector of origin:

agriculture: 16.9%
industry: 17%
services: 66.1% (2013 est)

Labor Force- 486.6 million , world second largest as of 2011

1 April - 31 March

Inflation rate (consumer prices):


9.6% (2013 est.)
country comparison to the world: 208
9.7% (2012 est.)

Central bank discount rate:


7.75% (31 December 2013 est.)
country comparison to the world: 33
8% (31 December 2010 est.)
note: this is the Indian central bank's policy rate - the repurchase rate

Commercial bank prime lending rate:


10.6% (31 December 2013 est.)
country comparison to the world: 82
10.63% (31 December 2012 est.)

Exchange rates:


Indian rupees (INR) per US dollar -
58.68 (2013 est.)
53.437 (2012 est.)






Doing Business in India

India officially the Republic of India (Bharat Ganrajya), is a country in South Asia. It is the seventh-largest country by area,
the second-most populous country with over 1.2 billion people, and the most populous democracy in the world. Bounded by
the Indian Ocean on the south, the Arabian Sea on the south-west, and the Bay of Bengal on the south-east, it shares land
borders with Pakistan to the west; China, Nepal, and Bhutan to the north-east; and Burma and Bangladesh to the east. In the
Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives; in addition, India's Andaman and Nicobar Islands share a
maritime border with Thailand and Indonesia.
Economy
According to the International Monetary Fund (IMF), as of 2013, the Indian economy is nominally worth US$1.842 trillion; it is
the eleventh-largest economy by market exchange rates, and is, at US$4.962 trillion, the third-largest by purchasing power
parity, or PPP. With its average annual GDP growth rate of 5.8% over the past two decades, and reaching 6.1% during 2011
12, India is one of the world's fastest-growing economies.
The 486.6-million worker Indian labour force is the world's second-largest as of 2011. The service sector makes up 55.6% of
GDP, the industrial sector 26.3% and the agricultural sector 18.1%. Major agricultural products include rice, wheat, oilseed,
cotton, jute, tea, sugarcane, and potatoes.
[180]
Major industries include textiles, telecommunications, chemicals,
pharmaceuticals, biotechnology, food processing, steel, transport equipment, cement, mining, petroleum, machinery, and
software


Drivers of Entry Success

Factors that affect the success or failure of market entry can be grouped as follows:
Firm-level factors such as the mode of entry, entry timing, and firm size.
Country-level factors of the host nation and home nation, such as economic distance,cultu ral distance,
country risk, and country openness.

Modes Of Entry



Taxation
Company Where taxable income
exceeds INR 10 million

Other cases
Domestic Company


32.445%
(30% plus surcharge of 5%
and education cess of 3%)
30.90%
(30% plus education cess of
3%)
Foreign Company


42.024%
(40% plus surcharge of 2%
and education cess of 3%)
41.20%
(40% plus education cess of
3%)






Indian Law

There are various laws in India and they govern their respective areas of law. A list of important
is given here under:



Foreign Investment
Maximum limits on foreign investment in some sectors are being progressively liberalized, eg : telecommunications
(74%), insurance (26%), banking (74%), mining (74%) aviation (49%), defence equipments(26%), cable network
(49%), trading (51%), print media (26%) and small-scale industries (24%). FDI in excess of 24% is permitted in small-
scale industry with 50% export obligation.
100% FDI is allowed in non news publications, which means all foreign non-news scientific, technical, specialty
magazines, periodicals and journals are allowed to be published and sold throughout the country.
Retail Trading is permitted under automatic route with FDI up to 51% provided it is primarily export activities, and the
undertaking is an export house/trading house/super trading house/star trading house.