India’s growing economy: What are the opportunities? India is attracting significant investment from companies all over the world, whether they are seeking opportunities in India’s growing economy or require outsourced solutions to assist operations abroad. The primary sectors for growth in the Indian economy are Infrastructure, Financial Services, Technology, Automotive, Healthcare and Data Research. The rate of change will astonish anyone who has not visited India in the past ten years. Since the 1991 economic liberalisation, India has achieved 6-7% average GDP growth annually. In FY 2015 and 2018, India’s economy became the world’s fastest-growing major economy, surpassing even China. According to the Economist, India’s growth rate was 8.2% in Q2 2018 compared with China’s 6.7%. Government policy has included bringing banking to the masses and including both rich and poor in the wider economy. Subsequently, a rapidly growing middle class has brought about a massive upsurge in integrated manufacturing and car production amongst others. Infrastructure must also improve to meet the demands of a growing economy and middle class. The recent Summit for improving transportation systems in India prioritised fast paced construction of world class rail and highway networks to connect India’s remote areas with a further focus on clean fuel and other environmentally friendly initiatives. Meanwhile, the Indian population, while relatively young in Western world terms, is ageing, which has been a stimulus for the country’s budding healthcare industry. Growth in India is also good news for contractors: Growth in a broad range of sectors has increased demand for skilled foreign contractors in India. Greater disposable income coupled with high standard of living, lower tax rates, and lower living costs have all made India an increasingly popular destination for contractors and employees seeking positions in multinational companies. A recent article in The Telegraph featuring research from Access Financial showed that expats could command more disposable income in India than in any other country due to higher expected salary on offer and cheap living costs. A skilled contractor could expect a salary of £167,104, would pay tax worth £56,556 and have living costs of £7,129 leaving £103,419. If you have further questions about working in India, please read our previous article on contracting in India or get in touch with our consultants to discuss compensation and eligibility. Outsourcing business services to India: The rising cost of conducting business in Western countries has also paved the way for outsourcing to growing economies like India. In a globalising economy, multinational companies require affordable employment solutions to help them expand to markets around the world. The way these international organisations move talent globally, or global mobility, is evolving and increasingly complex. For example, companies and their employees must interact with a greater number of immigration and tax authorities, who are ever more vigilant of mobile employees, withholding obligations and trailing liabilities. Failure to comply with regulatory and tax requirements in each locale can result in steep financial and legal penalties. The Indian Government is aware of the potential for further growth in its outsourcing industry and is providing all of the support it can, such as lower interest rates, fewer foreign exchange restrictions and development of IT enclaves. These positive changes have helped the outsourcing industry and encouraged increased foreign direct investment. A global solution: Access Financial India Office Access Financial offers bespoke solutions at a competitive price to help our global clients tackle the complexity of managing a mobile workforce to support their international business activities and achieve growth. With more than 14 years of experience in payrolls, contract management, immigration services and tax compliance, AFS India’s back office team helps companies from around the world to setup their businesses and attract and retain talent in India or elsewhere. We take care of all immigration formalities, tax requirements, and employment management in the country of work, so that companies can focus on their core line of business. Access Financial places a strong focus on R&D and regular training of our staff to provide an unrivaled customer experience. We also understand the importance of maintaining access to vital information at all times in the digital age. Access Financial clients have access to our very own proprietary Enterprise Resource Planning (ERP) system via an online portal known as Fortuna. Fortuna is available 24/7 and can do everything from uploading payroll to monitoring the progress of your payments. All Data entrusted to our systems is completely secure and safeguarded by efficient Data Security and Privacy policies. Get in touch with Access Financial India If you have further questions about working in India or outsourcing your international business services please get in touch with our consultants to discuss compensation and eligibility. AFSS Consultancy Pvt Ltd F-15, 1st Floor Sector-8 Noida – 201 301 Uttar Pradesh India Tel: +91 (0)120 468 1100 & 102 Fax: +91 (0)120 468 1166 Email: asia@accessfinancial.com