Why Foreign Companies Prefer to Setup Their Office in India More Than Any Other Country?
The main reason behind the increasing expatriate movement in India is its shining presence to the world. According to an HSBC survey, India is a better country than the US and China for expats, because of its political stability, stable economy, and entrepreneurial environment. No need to say, most foreign companies prefer to establish their office space in India more than other countries in the world.
According to the survey, among 190 countries and union territories, India is placed overall 26th, which is higher than China’s 34 and the US’s 30. We have come across some of the amazing points in the survey that present India as a delightful country for companies that set up their office here.
These countries were ranked by considering some of the important parameters, such as economy, career opportunity, and scope for entrepreneurship. On most of such parameters, India has been proved better than China and the US. Here are the detailed results from a recent survey –
It has been ranked 23rd, and China is at 21 and the US at 20 in the economics league table. But in sub-parameters, the US is ranked 20, China at No. 10 and India at No. 26. Surprisingly, India still seems better with rank 10, beating the US (at No. 16) and China (at 20) in local economy. On the other hand India stands at No. 24 while the US at 19 and China at 26, for work-life balance.
Obviously, expats have great level of confidence in the economic and political stability of the country. According to the survey, almost 2/3rd (65%) of expats have confidence in Indian economy which is a good sign for foreign companies to set up their offices to play safe. Over 53% (more than half) of expats have trust on the political stability of India over 48% on Asia-Pacific.
Good for Career Growth
The survey also indicated that expats look India as a great destination for career opportunities and career growth. Around 60% (almost 3 in 5) expats believe that India will definitely improve their job prospects in future, while only 43% of them believe in Asia-Pacific region. According to 51% of expats, India is a great place to for their career progress (against 42% who believe on Asia-Pacific), and 57% of them are expecting to have better opportunities to gain new skills than in their home countries.
Cost of Living
In India, most of the cities are offering a very healthy lifestyle to the working professionals who return from foreign countries, at a very low cost and most of them live pretty luxurious lifestyle. The cost of various things like education, entertainment, housing, and food is lower than the same in western countries, even in metro cities like New Delhi and Mumbai. Both Mumbai and New Delhi have been dropped by 19% and 28% respectively, among the most expensive cities to live in the world.
Hindi is the official language in India and around 30% of population speak and understand only Hindi. English is also a widely-used and prevalent language in service and trade sectors. There are 37 different languages and 14 further official languages spoken in India as each state has their own official language. But Hindi is a universal language in India, except in southern part of India where English speakers are more than Hindi speakers.
India is such a big country which receives diverse weather conditions. Basically, there are two major seasons in India – dry season and rainy season. As a whole, the weather remains mild and drier from October to March. Flooding and monsoons are commonly seen in rainy season. There are four climatic regions in India –
- Sub Tropical (North India) – Receive cold-dry winters and hot-wet summers.
- Alpine Zone (Himalayan regions) – Various types of climate are felt in such areas due to high altitude. Generally, the weather brings low rainfall and low temperatures.
- Arid (Western India) – It receives low rainfall and high temperatures.
- Tropical (South India) – It remains very hot and humid all the year round.
In India, finding jobs for locals bring a major challenge. But those who are looking for a job after returning to the country may find better job opportunities on local contract. Around 25% of what is offered to the professionals in western countries is considered a good salary in India. A large number of expats are assigned with multinational giants. These days, large numbers of domestic companies are sourcing experience and skills from overseas. So, work is secured for expats before entering the country. India is widely known as a progressive and high-tech country to live in.
Good for Entrepreneurship
India is also a great option for entrepreneurship. Around 10% of expats moved to India to set up their business against 5% in Asia-Pacific. India attracts more foreign entrepreneurs than the Middle East, including UAE (5%) and Bahrain (7%). Around 46% of expats prefer India as a great country to set up their business, while 39% prefer China and 32% prefer Oman.
Helpful in Achieving Long Term Financial Goals
Around 38% (two in five) expats said that India has helped very much to secure their children’s future and accelerate their growth, over 29% in Asia-Pacific. In India, expats could also save more. Around 44% of them said that living in India has improved their progress in their long-term goals of investments and savings, when compared to 39% in Asia-Pacific.
India has become much better place to live in terms of entrepreneurship, long-term financial goals, career opportunities, cost of living and economy. These are some of the key pointers to attract large number of foreign companies to set up their business in India. These reasons are enough to attract expats to prefer India over any other country.