Episode 28 - The India Country Review With Swatick Majumdar (Special Episode)

The Exit Strategy Podcast

Swatick breaks it all down in this special episode about the country of India.

Strong economic indicators

• India is the fourth largest economy in terms of purchasing power parity
• The nation’s GDP is expected to grow by over 8.5 percent in 2010-2011
• Liberal and transparent foreign investment regime
• Well developed banking system and vibrant capital market
• Strong and independent judicial system
• Among the highest rates of returns on investment

Incredible human capital skills

• A strong pool of scientific and technical manpower from such places as the India Institute of Technology and the India Institute of Management
• Over 255 of Fortune 500 companies getting services from India
• Second largest English-speaking population in the world
• Abundant, high-quality, cost-effective, competitive manpower. Over 100,000 IT professionals added each year
• IT Industry over US$14 billion and growing at 50 percent per year

Pervasive entrepreneurial spirit

• Prevalence of foreign technology licensing: Ranked 1st in the world
• Availability of scientists and engineers: Ranked 2nd
• Quality of management schools: Ranked 9th
• Firm-level innovation: Ranked 12th
• Firm-level technology absorption: Ranked 16th

Easy industrial licensing policy

• Under the Industries (Development and Regulation) Act of 1951, an industrial license is only needed for items that fall under compulsory licensing, are reserved for the small-scale sector, or in a location that is restricted
• All industries exempt from industrial licensing are required to file an Industrial Entrepreneur Memorandum
• No approval is required, only notification needed
• Financial sector reform
  • Stable tax regime; only three rates of indirect tax and trade facilitation measures have been introduced
  • The Foreign Exchange Management Act, of 1999 provides a liberal regime; forex procedures are straightforward
  • Stocks can be sold on without prior approval
  • Profits, dividends, and capital investment can be repatriated
• Royalties can be paid by wholly owned subsidiaries to parent companies

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