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India, Newsletter

India Positioned at the 52nd Rank on Global Innovation Index

August 14, 2019

India has moved up five places in last one year and has reached to the 52^nd position on the Global Innovation Index (GII), 2019. If we compare the last year’s data, India has gone up by 29 places in the last five years, thus reaching this rank.

Switzerland continues to top this list and Israel has for the first time found its way in the top ten.

India’s 2019 position in GII signifies the highest jump or move by any of the major economies in the world. India also continues to remain on the second position in terms of the innovation quality amid middle-income economies.

The ranking also represents that India has been able to sustain its leadership ranking as the most innovative country in the Central and South Asia region each year starting since 2011.

India also ranks 15th in the global companies’ R&D expenditures, due to its good and consistent performance in critical economic indicators like productivity growth and exporting services such as information and communication technologies this year.

Piyush Goyal, the Commerce and Industry Minister, said at the launch of the Global Innovation Index 2019that enabling and expediting entrepreneurship through innovation is a very important component under the vision of new India by the year 2022. India’s continuous rise at the global innovation index is an evidence of its people’s entrepreneurial prowess and the rate and success of company formation in India.

He also said that “Innovation does not come new to India and we are seriously looking at increasing our spends at R&D. Right from establishing hundreds of Atal Innovation Labs to Mangalyaan and Chandrayaan, this new approach and engagement adopted by the government have become the new hallmark of India as we move towards a more prosperous country.”

With consistent top ranking of our nation in GII, it is the best time to try your entrepreneurial journey. But in case you don’t know where to start or how to register a pvt. Ltd. company in India or how to go about company formation in Mumbai, then do get in touch with us and we would be glad to assist you.

India, Newsletter

RBI Permits Foreign Firms to Process Abroad with a Condition of Storing Data in India

July 15, 2019

Foreign payment companies like Mastercard and Visa are allowed to process transactions made in India outside of the country, however, the related data must be stored locally within 24 hours, as per the directive of the Reserve Bank of India (RBI). The announcement came to elucidate the central bank’s ordinance in April 2018 that directed foreign firms to ensure that they store their payments data “only in India” so that they get “unfettered supervisory access”.

The RBI rules resulted in an aggressive lobbying attempt from the U.S. government and American organizations who felt that the directive would escalate infrastructure costs and affect organizations’ investment plans. As per the Reuters report, the request to dilute the rules has been declined last year.

The RBI has recently stuck to its position but has made clear that the payment transactions are permitted to be processed outside the country in case the companies wish the same. The earlier RBI directive did not point on the fact if data could be processed abroad or must only be done locally only.

However, even in scenarios where the transactions were processed abroad, the RBI guided that the data should be “deleted from the systems abroad and brought back to India” and that too within 24 hours of the payment processing.

“The clarity on processing, and the ability to do so overseas, is a welcome development. Although the clarifications do not ease the local-only storage requirement,” said Kriti Trehan, a partner specializing in technology law at the Law Offices of Panag & Babu.

The RBI clarification has come after India’s commerce ministry, subsequent to a meeting with technology and payment firms, said the central bank is going to “look into” issues brought up by the industry.

The differences amid American firms and India have fuelled additional trade tensions between Washington and New Delhi. Recently, the U.S. Secretary of State, Mike Pompeo made efforts to lessen these tensions by assuring a renewed emphasis on negotiating better ties; however, he gave few specifics on his visit to New Delhi, the Indian capital.

India is looking at more stringent rules regarding data storage so that it can access data in a better way and carry on the investigations if the need arises.

Besides the RBI’s directive for payment firms, India has also made an overarching law around data storage which mandates that all the personal data which could be critical must be processed locally. So if you are planning new company formation in India or company incorporation in India then you must keep these directives in mind.

Article, India

A look in to India’s Top Investment Destinations

June 3, 2019

India is a growing economy which offers unprecedented business opportunities. Indian markets are considered as one of the key markets worldwide and have significant potential offering prospects of high profitability and favourable regulatory regime for investors. In fact, every state in the country has a unique economic profile that offers numerous opportunities to foreign investors looking to set up or expand their business in India.

Every year, the National Council for Applied Economic Research (NCAER) publishes its State Investment Potential Index (N-SIPI) to demonstrate the investment climate of India’s states. The NCAER publishes the report by assessing the competitiveness of Indian states on six key pillars – infrastructure, labour, land, economic climate, political stability and governance, and business perceptions. It is a pioneering effort to provide metrics of economic governance, competitiveness and growth opportunities at the state and regional levels. The aim of this report is to provide the domestic as well as foreign investors an overview of the Indian market.

As per N-SIPI 2018, Delhi is the most attractive state for investors, followed by Tamil Nadu, Gujarat, Haryana and Maharashtra. In this article, we will walk you through the country’s top five investment destinations and their economic features.

Delhi

New Delhi is the national as well as the administrative capital of India. Not only this, but it is also one of the largest cities in the world in terms of population. Delhi has established a new benchmark in attracting FDI (foreign direct investment) equity inflows into the country. The per capita income of Delhi is 2.5 times higher than the national average.

Delhi is the preferred choice of investors owing to reasons like investor-friendly policies of the government, great infrastructure, competent workforce and large consumer market. In fact, Delhi outperforms other states in India in terms of infrastructure and economic environment.

The city is a hub for all types of commercial and business activities. If you are looking for company formation in Delhi, the city offers great investment opportunities in the industrial sectors such as information technology, tourism, manufacturing and real estate.

Tamil Nadu

Tamil Nadu boasts of the second largest economy in terms of GDP among all the states in India. It is also the most urbanized state in India. Being surrounded by sea from three sides (i.e. Bay of Bengal, Indian Ocean and the Arabian Sea), Tamil Nadu is strategically located and serves as an important gateway to Southeast Asia.

Apart from being an educational hub, there are many industries in Tamil Nadu which are majorly engaged in healthcare, IT, automotive, textile and financial services. The favourable industrial climate, competitive manufacturing industries in the region and the largest number of special economic zones serve as a major advantage to the businesses eyeing to set up their base in Tamil Nadu.

Cities like Chennai, Coimbatore, Madurai, Tiruchirappalli, Salem and Tiruppur provide huge advantages of population and larger customer base.

Gujarat

Gujarat is a leading industrial state and boasts of the highest GDP growth among all the states in India. Due to its strategic location, it provides a gateway to the land-locked states in north India. In addition, Gujarat is well situated to provide strategic trade routes to the African continent and the Persian Gulf. Moreover, it is consistently ranked on top in the ‘ease of doing business surveys’.

Gujarat offers great investment opportunities in the industrial sectors such as petrochemicals and allied products, chemical and allied products, port and shipbuilding, conventional and renewable energy, pharmaceuticals, jewellery, gems, diamonds, textiles, food and agribusiness, engineering and automotive manufacturing, etc.

Cities like Ahmedabad, Surat, Vadodara and Rajkot provide huge advantages of population and larger customer base. There are well-renowned industries in Gujarat such as Adani group, Aditya Birla Group, Reliance, Mahindra & Mahindra and Godrej.

Haryana

Haryana is one of India’s largest automobile hubs and a preferred destination for auto majors and auto-component manufacturers. The state has also emerged as a base for the knowledge industry, including Information Technology and biotechnology. It is a top-ranked state in terms of business perceptions and ranks among other top states in the country in ease of doing business.

Haryana contributed around 3.32% to India’s GDP. The state offers a wide range of fiscal and policy incentives to businesses. Its key geographical location and progressive business environment attract local as well as global investors.

Haryana offers great investment opportunities in the industrial sectors such as automotive, IT, textiles, oil refining, agro-based industry, biotechnology and petrochemicals.

Maharashtra

Maharashtra is known as the most industrialized and wealthiest states in India. Mumbai, the capital city of Maharashtra is popularly known as the financial capital of India as it is home to some of the major banks and financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, National Stock Exchange, General Insurance Companies and Life Insurance Companies.

If you are looking for company formation in Mumbai, you can grab the many advantages that the city offers such as its strategic location on the western coast of India; a gateway for imports into western India; conducive business environment; competitive banking, financial, and service industries; and largest entertainment industries in the world.

Maharashtra offers great investment opportunities in the industrial sectors such as automobiles and auto components, petroleum and allied products, chemicals, information technology, telecom, engineering, textiles, electrical and non-electrical machinery, etc.

Cities like Mumbai, Pune, Nagpur, Nasik and Aurangabad provide huge advantages of population and larger customer base.

If you are looking for company formation in India, you can choose any of the above-mentioned destinations. For company formation in India, you may seek help from a professional company like IMC Group.

Article, India

US-China Trade War to Boosts Indian Markets

May 31, 2019

US-China trade war has been a major concern for many companies and economies across the globe. The tussle between the US and China gives nations like India a chance to enter into new foreign markets. Many companies from the US are looking to relocate their companies from China to India. In addition, the export from Indian companies can increase drastically amid the trade war.

Recently in a media interview, US-India Strategic and Partnership Forum (USISPF) – a US-based advocacy group, said that the US has been looking at India as an alternative to set up companies that are moving out of China. This will certainly give a big boost to India’s manufacturing sector.

Many top brands like Samsung, Adidas, Nokia, etc. have already shifted their manufacturing base from China even before the trade war began. This was done to reduce their costs and diversify their supply chain. If this manufacturing base shifting continues to happen, India will prove to be a great alternative to China.

Why India Appeals as a Manufacturing Hub?

The Indian government took several initiatives to bring structural reforms and intellectual property rights, which has attracted companies from across the globe to India and start their manufacturing unit.

In the recent years, many big companies have set up their manufacturing units in India. One of them is Samsung electronics, it has set up the world’s biggest mobile phone manufacturing plant in India. Another example is the iPhone which has started assembling its phones from India.

Since many companies are eyeing at India to set up their manufacturing unit, it is important to learn what makes India so appealing.

What Makes India Appealing?

- Lower Labour Cost

Many global giants and start-ups are looking for foreign company registration in India because it offers many benefits. The primary benefit is the low labour costs which makes manufacturing affordable. India’s labour cost is lower than China and the majority of the Southeast Asian countries. Also, there is a large pool of engineers that offer world-class expertise with wages less than the Chinese labour force.

- Huge Customer Base

Furthermore, what makes India highly attractive is the large population which provides the manufacturers with a good domestic market for their products. The 1.3 billion population of India has the market for every product that various companies offer. Therefore in terms of consumption, India’s population is higher than any other Asian country other than China.

- Easy Access to Natural Resources

Another reason why there is an increase in setting up of manufacturing base and company formation in India is the access to natural resources. When the prices of raw materials or natural resources are compared with any other country, India is the cheapest. India has a vast reserve of iron ore, aluminium, etc. which proves to be a good alternative to China when it comes to setting up of manufacturing units in auto or apparel sector.

- Favourable Government Policies

Government policies have played a significant role in attracting businesses to set up their manufacturing units in India. India’s manufacturing sector got major strength from the “Make in India” program. This program facilitates investment, protect intellectual property, build manufacturing infrastructure, enhance skill development and foster innovation. Furthermore, many bold moves like the implementation of goods and services tax, the revival of the power sector, IBC code, etc. have addressed the concern areas of the economy.

- Free Trade Agreements

India has many free trade agreements (FTAs) inside and outside the Asian region. Also being a signatory of ASEAN, India provides the companies an access to the world’s largest FTAs. This gives the companies an opportunity to sell their products not only in India but to the outside regions as well.

Setting Up Your Business in India

Before setting up your business in India, you must understand the wide geographical area of the country. On the basis of need of the business, the manufacturing unit must be set up accordingly. The infrastructure facilities vary from state to state. Also, many states offer various incentive facilities to the business for setting up a manufacturing unit.

Like for example, states like Gujarat, Andhra Pradesh, Tamil Nadu, West Bengal and Maharashtra have their own industrial policy that emphasises on developing the manufacturing sector. Gujarat offers various incentives and facilities for setting up production units in jewellery, chemical, textile and pharmaceutical sector. For setting up business units in automotive and auto-component manufacturing, Maharashtra is the most popular place. For electronics assembly and manufacturing, Uttar Pradesh and Tamil Nadu are the popular states.

Therefore, it would not be wrong to say that the wide geographical land of India offers many opportunities for setting up manufacturing units in the country.

About Us

IMC Group caters to all the requirements regarding company formation in India. We understand the various challenges that your business may face in India. We help you in identifying the right location for your business. Our wide range of services can assist you at every step of the company or manufacturing unit set up in India. Some of our services include:

Legal Set-up Services
Physical Set-up Services
Ongoing Services

The aim of the IMC Group is to act as a one-stop solution for all your business needs in India.

Article, India

Guide to Start-up Initiative in India

May 6, 2019

In order to improve the Indian economy, the Government of India is launching various schemes to promote company formation in India. One such scheme is ‘Start-up Initiative Scheme’, which was launched in January 2016 by the honourable Prime Minister Narendra Modi.

Start-ups play a significant role in pushing the economy forward. The Government of India has launched the ‘Start-up Initiative Scheme’ with the action plan framed by the Department of Industrial Policy and Promotion (DIPP) to make the start-up registration process easier and increase the entrepreneurial drive in India.

Benefits of Start-up Action Plan

The action plan simplifies the start-up registration process. It expedites the legal compliance process, encourages the set-up of start-ups and access through the use to mobile app or web portal further simplifies the work.
The government has allocated Rs. 10,000 crores to help the start-ups to establish themselves. The action plan also provides many other monetary benefits like tax exemption on capital gains, credit guarantee, etc.
The action plan provides the start-ups with resources and knowledge bases that are essential for efficiently running the business. Furthermore, it also promotes industry partnerships and focuses on promoting business in the biotechnology sector.

Let us now have a look at the start-up registration criteria.

Criteria for Start-up Registration

The start-ups can be either of the following; limited liability partnerships (LLPs), private limited companies, or partnerships.
The start-up has been incorporated not more than 5 years ago.
Turnover since its operation for each year is less than Rs. 25 crores.
It must be developing products that add value to the customers.
It must have obtained DIPP approval.
The start-up must focus on developing innovative products.
The start-up must have a recommendation letter.
The start-up must have a patent from the trademark office and Indian patent.
The start-up must be funded by angel fund, private equity fund, incubation fund or angel network.

Moreover,

There is an exemption from capital gain if the start-up is under the start-up India campaign.
New entrants get the benefit of tax holiday for 3 years.

Your business is eligible for start-up registration if you fulfill the above criteria. There are many benefits of registering the start-up with DIPP. Let us see some of the benefits of registering the start-up with DIPP.

Benefits of Registering the Start-Up with DIPP

The start-ups get the benefit of self-certification if they fulfil the compliances in relation to 9 labour laws and environmental laws.
Faster tracking of patent application and rebate of up to 80% on patent fees.
The start-ups get the opportunities and same level playing field which are available to the experienced entrepreneurs.
As per the Insolvency and Bankruptcy Code of 2016, a registered start-up gets the time period of 90 days to execute the exit strategy.
An amount of Rs. 25 crores has been set aside by the government to help the start-ups.
Tax exemptions in the form of exemption on capital gains and investments made by incubators or angel investors are Furthermore, tax exemption for 3 years is available to the start-ups.
National Credit Guarantee Trust or Small Industries Development Bank of India (SIDBI) provides help for over 4 years to DIPP registered start-ups.
DIPP provides a common platform for new entrepreneurs to grow their business by engaging with the leaders of the industry.

There are many other benefits of registering the start-up with DIPP. IMC Group provides assistance to the start-ups in India. Our experts can help your start-ups grow and function at a rapid pace. We also provide assistance for foreign company registration in India. To know our quotes, you can send us an e-mail or get in touch with us on our number.

India, Newsletter

India Decides to Sign BEPS Multilateral Instrument which will Curb Tax Avoidance

April 15, 2019

The Indian Union Cabinet has recently approved India’s signing of the multilateral instrument (MLI) for implementing the tax treaty procedures in the OECD/G20 base erosion profit shifting (BEPS) action plan. A ceremony for signing this deal is going to be held in Paris in June this year.

The Cabinet’s decision and further action was anticipated because of India’s active contribution in the BEPs project and in the MLI drafting.

Though India has recently done some amendments in the tax treaties that were a concern to the government, like those with Singapore, Mauritius and Cyprus, and applied domestic general anti-avoidance rules (GAAR), the MLI is still important to India as an instrument to avoid any tax treaty abuse, including any instances of artificial avoidance of the permanent establishment status. The Indian government’s confirmation of their plan to sign again goes to prove India’s viewpoint towards restraining the base erosion globally.

The OECD has developed the BEPS Action Plan to deal with the use of aggressive strategies of tax planning used by multinational firms that falsely transfer the profits to low tax jurisdictions which have limited or no economic activities. BEPS Action Plan 15 envisions MLI’s development for implementing the measures related to tax treaty under the BEPS Action Plan.

The MLI is definitely a milestone development as it strives to modify more than 3000 bilateral tax treaties. When comparing with the protocols, which directly modifies the text of the treaties, the MLI is envisioned to be applicable along with the current tax treaties, amending their application to the required extent for implementing the measures related to BEPS.

An important aspect of the MLI is that it functions on the reciprocity principle. This means that any provision under the MLI is applicable to a bilateral tax agreement that happens between any two nations or jurisdictions, only in case both the parties agree to it. To bring this reciprocity into effect, the MLI allows for reservations against specific MLI provisions (except the ones related to application of BEPS minimum standards). Typically, if any one of the parties make a reservation against any MLI provision, then it is applicable symmetrically between the reserving party and all other concerned parties.

For the MLI to be brought into force, global law related to multilateral treaties should be complied with. Generally, the first step is signature, then ratification or acceptance and approval from each involved party, as per their respective law requirements applicable in that country.

Therefore, signature is only the initial step towards stating consent to be bound by the MLI.

Article, India

Advantages vs Disadvantages of Joining a Start-up

April 12, 2019

Before joining a start-up, you must carefully analyze the opportunity. It can turn out to be a gamble if you are not certain about the future of the enterprise. However, if the start-up takes off well, it can take your career to new heights. In this article, we will look at the advantages and disadvantages of joining a start-up in India.

Advantages of Joining a Start-up

If you are among the initial employees of a start-up, certainly you would enjoy higher rewards. A start-up who plans to bring an IPO after its success can offer a good amount of equity to you which can prove to be a huge wealth generator in the long run.
Start-ups offer a tremendous learning opportunity to You can learn the functioning of the business closely and understand how it works. Along with your specialized field, you get to learn a lot of things related to the other departments of the business. This helps in enriching your experience and enhancing your personal growth.
Start-ups offer an environment where it is easy and fun to work. There are no dress codes, you can indulge in recreational activities and do other interesting things. This keeps the work environment calm and working seems a fun job.
The vibe of working in a start-up can fill you with excitement. Since you become a part of a rapidly growing start-up you always feel involved. Here you won’t even have the regret of working for long or extra hours.
Start-ups give freedom to the people who can bring creativity and innovation to the table. When your talent is appreciated, you are always motivated and have a sense of freedom to work. Since you have an environment where freedom is given and no one is bossing you, you will tend to perform better.
While working in a start-up, you can manage a better work-life This helps in keeping your mind fresh and you are dedicated to your work. Long term success of the individual also depends on his mental status.

The above mentioned are a few of the benefits of joining a start-up. Now let us have a look at the disadvantages of joining a start-up.

Disadvantages of Joining a Start-up

The ratio of start-ups failing is quite high in comparison to firms that survive. The reason for failure can be a shortage of funds, business not taking off or a dispute between the founders of the business. Therefore, it is important to analyse the situation well before you join the business.
In the start-ups, there is no role that is well defined. You can survive in a start-up only if you are flexible with your job profile. To put it another way, your degree would not matter because you would have to do the work of other profiles too.
In the start-up, you cannot hide behind any senior or a team like in an MNC. In start-ups, you have to be on toes right from the beginning and you will be working in a more transparent environment where you cannot hide.
Start-ups work in an environment where there is lack of resources. Before joining a start-up beware of the fact that there would be strict cash flows and other things of the business will take a back seat just to capture a larger market share.
Start-ups are mostly struggling to capture the market share. In order to do so, they may ask you to work for long hours, stay at the workplace and work even on holidays.

The above mentioned are a few of the disadvantages of joining a start-up. Therefore, you must evaluate the advantages and disadvantages properly before joining a start-ups business.

IMC Group is always at the assistance of start-ups in India. All you have to do is drop us an e-mail to know our quotations.

Article, India

Conversion of Limited Liability Partnership into Private Limited Company

March 26, 2019

Often businesses choose to register themselves as a Limited Liability Partnership (LLP) but later wish to convert into a Private Limited Company. The reason for converting an LLP into the private limited company is growth opportunities and infusion of capital. But as per the recent laws, now LLPs cannot convert themselves into a private limited company. Therefore, those companies who want to raise funds in the future, go for private company registration in India and IMC Group assists such companies for hassle-free registration.

Ministry of Corporate Affairs on Conversion of LLP into Private Limited Company

The Ministry of Corporate Affairs states that, “conversion of LLP into private limited company would not be allowed under the LLP Act. However, enabling provisions would be required to be made in the Companies Act for such conversion. Necessary action in this regard would be taken when the Companies Act would be revised.”

Companies Act 2013 on Conversion of LLP into Private Limited Company

“Companies Capable of Being Registered (Section 366):

For the purpose of this Part the “company” includes any partnership firm, limited liability partnership, cooperative society, society or any other business entity formed under any other law for the time being in force which applied for registration under this Part.”

Now let us try to understand why entrepreneurs choose LLP Registration and Private Limited Company Registration.

Reasons for Selecting LLP Registration

LLP businesses are not required to get their audit done if the turnover is less than Rs. 40 lakhs and capital is less than Rs. 25 lakhs.
LLPs are exempt from dividend distribution tax.
The compliances for LLPs are fewer as there is no requirement for a board meeting or annual general meeting.
In comparison to the private limited company, the fee for incorporation of an LLP is much lower.
The incorporation of LLP is hassle-free and requires fewer

Reasons for Selecting Private Limited Company Registration

Equity investors or venture capitalists can invest in a private limited company because private companies have the concept of shareholding. Whereas, there is no such concept of shareholding in case of LLPs.
NRIs and foreign promoters prefer to invest in the private limited company rather than LLPs because they can invest in private companies through automatic route while Foreign Direct Investment (FDI) in LLPs is through approval route.

From the above points, we can make out that the start-ups which do not intend to raise funds from Angel Investor or Venture Capital firms register themselves as LLP. Whereas, those start-ups which look for funding from investors register themselves as a private limited company. At the moment, the conversion of LLPs into private limited companies is not possible. The only solution that is available for the LLP start-ups is to register a new private limited company which can take over its business. To assist you further in such matters, you can contact IMC Group. We provide services like company formation in India and many business-related services. To know more about our services, all you need to do is drop us an e-mail.

Article, India

Everything You Want to Know About Start-up Company in India

March 20, 2019

As per the report by NASSCOM, India is the 3^rd largest start-up ecosystem in the world. Whenever there is a company registration in India, we term it as business and not start up. To put it in simpler words, any business in India is just a business and not a start-up company. This is because the start-up business is very different from regular business. In this article, we will list out a few points that define start-up companies in India.

Legal Definition of Start-Up in India

A business entity is a start-up for 7 years from the date of its incorporation. However, the eligibility period is 10 years for the biotechnological sector.

Growth

In India, the biggest difference between traditional business and start-up is growth. The traditional business functions on a lesser scale whereas the start-up companies have the capability to grow at a rapid pace. Start-ups have the ability to capture a larger share of the market in a small span of time.

Business Funding

Any type of business requires funding to operate. Traditional business have finacing options such as bank loan or loan against security to fund their business. Whereas, start-ups in India have many options to fund their business like a bank loan, funding by angel investors or venture capitalists in exchange for security, etc. Start-ups easily acquire loan as the investors expect huge returns from their funding and they continuously mentor the start-ups until it’s a success.

Exit Plan

Traditional business and start-up business both have a different exit plan. In case of a traditional business, the entrepreneur can exit the business when he suffers loss or finds an alternative idea of business. Whereas in the case of a start-up, the business does not close when funding is done by a venture capitalist or angel investors. The exit strategy of a start-up in such cases is via merger, IPO, or acquisition by other company.

Working Culture

The working culture in traditional businesses and start-ups are drastically different. The traditional business functions like any other business in India and have normal offices. While the start-up offices are lavish and attractive. The working culture in a start-up is very professional. Furthermore, the start-up companies provide their shares to the employees of the company at lower prices which acts as a big motivation for the workforce.

Unique Selling Proposition

The traditional businesses in India work on pre-defined guidelines and strategy. On the other hand, start-ups sell their products using innovative tools and methods. The start-ups focus on creating such technological tools that attract the customers to purchase its products. Therefore, by using innovation and technology as USP, start-ups try to capture the market.

We hope the above points help you in understanding about the start-ups in India. IMC Group is a professional firm offering services of company registration in India. If you want to register a company or avail any other company related service, just drop us an e-mail to know our quotations.

India, Newsletter

India Ranks as the Fastest Emerging Economies World-wide

March 18, 2019

India is going to surpass UK with regards to world’s largest economy rankings as its GDP growth is projected to be 7.6 percent in 2019. Data trends show that US growth is estimated to be temperate from 2.8 percent in 2018 to approximately 2.3 percent in 2019. Labour markets in developed economies are estimated to tighten, thus increasing the wages.

India and France are expected to cross the UK with regards to world’s largest economy ranking this year, pushing it from the fifth to the seventh position in the global ratings, as per the projections. Though the UK and France usually switch places because of similar levels of development and almost equivalent population, India’s spiraling up the rankings is most likely to be stable and lasting now. As per the projections, UK would experience almost 1.6 percent real GDP growth, 1.7 percent for France and 7.6 percent for India in the year 2019.

India is expected to have a healthy growth rate of almost 7.6 percent in FY20, assuming that there are no big headwinds in the world economy like more trade tensions or any supply shocks in oil. The growth will be aided by further realization of efficiency gains that come from the newly-implemented GST and policy momentum predicted in the first year of the new government.

Today, India has become the fastest developing large economy throughout the world, with the gigantic population, very favorable demographics and the huge potential because of the low initial GDP per head. It is assured to continue to go up in the global GDP league ratings in the next few decades and this surely is a good time for company formation in India.

The restrained growth in the UK last year and again in the year 2019 is probable to turn the statistics in France’s favor. When comparing the currencies, the relative strength of the Euro as against the Pound is also an important factor to consider here. The world-wide economy is estimated to slow down this year as G7 countries go back to long-run average growth rates, as per new projections and data.

The lift in growth of many major economies observed between 2016 end and 2018 beginning has now ended. The boost from the fiscal stimulus is estimated to decrease, while higher interest rates could diminish consumer expenditure and a strong dollar is expected to continue dragging on net exports. The projections point out that US growth is going to be moderate from a projected 2.8 percent last year to around 2.3 percent in 2019.

The development in China is also expected to slow down as compared to 2018. Although the Government would try to ensure a minimal slowdown, the effect of US tariffs and the necessity for controlling the debt levels are probable to create a meek deceleration in growth this year.

The labour markets in developed economies are likely to go on tightening with unemployment decreasing even if job creation slows. This will push up wages, but would cause challenges for enterprises planning to fill talent shortages. In 2019, unemployment would fall a little more in the US and Germany, though the rates of job creation in these countries have remained strong.

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