South Asia · updated 24 September 2026
🇮🇳 Doing business in India
Worlds fastest growing major economy with massive opportunity.
Conditions are changing fast — check current government travel and trade advisories before acting.
Structural scores
Highlights: 1.4B consumer market · Complex federal tax system · Digital India momentum
Key industries
Information Technology & Services ↑ Strong growth
India IT sector exports $245B annually. Bengaluru, Hyderabad and Pune are global technology delivery hubs.
Main investors: US, UK, Japan, Singapore
Manufacturing & PLI ↑ Rapid growth
Production Linked Incentive schemes covering 14 sectors are attracting global manufacturers to India.
Main investors: US, Japan, South Korea, Singapore
Financial Services & Fintech ↑ Rapid growth
UPI processes 10B+ transactions monthly. India is the worlds 3rd largest fintech ecosystem by deal volume.
Main investors: US, Singapore, Japan, UAE
Renewable Energy ↑ Rapid growth
India targets 500GW renewable capacity by 2030. Solar and green hydrogen are priority investment sectors.
Main investors: US, Japan, France, UAE
Sector priorities
- Technology & Global Capability Centres — India hosts 1,600+ GCCs for global firms. Cost, talent scale and English proficiency make it unrivalled for technology delivery.
- Renewable Energy — India solar and green hydrogen targets creating the worlds largest renewable energy investment pipeline outside China.
- Manufacturing & PLI Sectors — PLI incentives in electronics, pharma, textiles and 11 other sectors creating compelling manufacturing investment opportunities.
Talent & work permits
India produces 1.5M engineering graduates annually. English is the business language. Deep talent pools in IT, finance, pharma and engineering.
- Foreign workers: Business Visa or Employment Visa required. Employment Visa requires minimum salary of $25,000 per annum.
- Localisation: No mandatory localisation requirement for most sectors. State level employment requirements vary. Priority to local hiring is culturally expected.
- Key consideration: India offers the worlds largest English speaking technical talent pool at highly competitive cost making it ideal for global capability centres.
How to enter: first four steps
India offers multiple entry structures. Wholly owned subsidiary is most common for foreign firms. State selection matters enormously.
- Incorporate with MCA — Ministry of Corporate Affairs SPICe+ portal for company registration. Process takes 3 to 7 days
- Obtain PAN and TAN — Permanent Account Number and Tax Deduction Account Number from Income Tax Department
- Register for GST — Goods and Services Tax registration required if turnover exceeds INR 2 million
- Select your state — Karnataka, Maharashtra, Telangana and Tamil Nadu offer best infrastructure and talent for technology firms
Indicative cost: 10-person team
Professional-services mix (1 senior, 5 professional, 2 admin, 2 support), Grade-A office, registration, legal, audit and tax compliance. Model estimate, not a quote. Model your own team size and industry →
Regulatory watch
- Feb 2026 · Union Budget FDI Updates — Union Budget 2025 announced further liberalisation of FDI in insurance and pension sectors.
- Mar 2026 · DPDP Rules Notified — India notified Digital Personal Data Protection Rules requiring businesses to appoint Data Protection Officers.
- Mar 2026 · Union Budget 2026 Tax Changes — India Union Budget 2026 introduced revised personal income tax slabs and enhanced PLI scheme allocations for semiconductor and EV manufacturing sectors.
- Feb 2026 · DPDP Rules Implementation — Digital Personal Data Protection Rules formally notified. Companies must appoint Data Protection Officers and implement consent mechanisms by June 2026.
Compare with South Asia peers
Common questions
Is India a good market to enter in 2026?
India scores 6.4/10 on EmergingMarketIQ’s structural index (risk: Medium). Worlds fastest growing major economy with massive opportunity. Current-conditions score: 6.4/10 (India imports most of its crude, much of it historically via Hormuz. With Brent above US$100 and the rupee at record lows (~96 per USD in Sep 2026), import costs and inflation pressures are elevated. For foreign firms, USD-denominated labour costs have fallen.) — updated 24 September 2026.
How much does it cost to set up a 10-person office in India?
Our cost model estimates about US$336k for the first year (≈US$26k per month run-rate plus ≈US$12k one-off setup) for a 10-person professional-services team. Indicative only.
What are the first steps to set up a company in India?
Incorporate with MCA — Ministry of Corporate Affairs SPICe+ portal for company registration. Process takes 3 to 7 days Then: Obtain PAN and TAN — Permanent Account Number and Tax Deduction Account Number from Income Tax Department Then: Register for GST — Goods and Services Tax registration required if turnover exceeds INR 2 million Then: Select your state — Karnataka, Maharashtra, Telangana and Tamil Nadu offer best infrastructure and talent for technology firms
Source: EmergingMarketIQ country dataset — current conditions, alerts, GDP (World Bank 2025) and FX updated 24 September 2026; structural scores reviewed 24 September 2026. Rules, rates and conditions change — verify with local counsel before acting. Not legal, tax or investment advice.