For multinational corporations, India has not been an easy market to do business in – especially over the past few years. What with laws changing frequently, aggressive and unpredictable tax demands, resource constraints (especially land), infrastructure bottlenecks, business unfriendly bureaucracy and rules – many foreigners (and even Indians) are frustrated and discouraged from investing in India.
In recent months, there has been renewed hope due to a new government. However, this has also led to some unrealistic expectations. Things may not happen as quickly as many expect, and several reforms may be delayed or de-railed by vested interests.
If so, then why do we think corporations should (indeed, must!) invest in India? Here are some good, long-term reasons.