28
Oct

Has COVID 19 made India a more favorable destination for foreign business investment?

With the unforeseen emergence of COVID 19, many businesses had to reinvent their already established models of functioning as well as chalk out their goals for the future. Incidentally, the pandemic made its mark at a time when the global economy was not at its best. Such circumstances have made Institutional Investors rethink their choices. At the same time, it’s also known that the effects of COVID-19 will be felt long after the pandemic has left, with its repercussions leaving an indelible mark on society. 

DBPL Asia is one such organization that helps in setting up and easing the process of foreign company registration in India 

The idea of Trade and industry has evolved and developed over the years. Many companies are considering opening company offices in India. Socio-political issues like US-China trade conflicts and Made in India are some of the things that make India favourable for business by institutional investors. COVID 19 restrictions make it difficult for international investors with market presence in China to carry out proper business owing to a continuous disruption in the supply chain. Even many news agencies have reported that china dependent manufacturing businesses are considering  India as the go-to place for business setup. Truth be told, Japan has made a stride further by reporting a US$ 2 billion boost bundle to help Japanese investment moving out of China.  As a result of this, several businesses are considering a change in operation with several developing nations, coming up as the contenders. Under such scenarios, forming a company in India becomes a favourable situation provided it can satisfy the internationally accepted business standards.  

Aside from being a basic driver of economic growth and development. 

 Foreign Direct Investment (FDI) has been a significant non-debt finance-related asset for the financial advancement of India. Foreign organizations put resources into India and exploit factors like minimal wages, tax exemptions etc. For a nation where foreign investment is being made, this also opens scope for creating employment and achieving technical knowledge. 

Additionally, institutional investors think about the accessibility of assets and infrastructure as key components for investing in India. Be that as it may, the business is right now encountering a remarkable liquidity crisis, further escalated by the raging situation of lockdown in most nations. At such a period, any type of government striving to hold up and keep tasks afloat is a big plus point for many nations. By and large, this help is stretched out by the method of economic reforms and infrastructural support/incentives. Both have an immediate positive effect on investor cash flow. 

Hence these are some of the reasons opening company in India should be considered seriously especially for foreign business investments looking for a change in scenario.