INDO-AUSTRALIA BILATERAL BUSINESS RELATIONS

• Democratic country with stable Government: India is a democratic and secular country, has robust Judicial system upholding the Rule of Law, strong Federal system and Freedom of Speech. The present Government at Centre which is in its second 5-year term offers a very stable Government.
• Strong economic growth: India, tipped to be world’s fastest growing economy. The Economic Survey for 2021-22 projected GDP growth rate of around 8.5% for theFinancial year 2022-23.IMF has projected a GDP growth rate of 9% for this fiscal year.
• India is a large and ever-expanding Market: India is the second most populous country with over 1.3 billion population and being fifth largest economy in the World offers a huge and ever-expanding market. With growing consumerism and purchasing power, Indian consumer market is expected to double by 2025.
• Ease of doing business: Both Union Government and every State Government in India are putting in place various measures towards ease of doing business to attract investments into India and various states.
• Single window clearance system: Government of India under the Prime Minister’s leadership is laying red carpet for all global companies to come and establish their presence in India.Very few countries of the world offer the kind of opportunities India does.
The Government of India is in the process of developing National Single window system for a seamless process of granting most of the approvals for setting up business in India by foreign investors.
• Simplified Indirect Tax regime: Government of India has heralded the biggest tax reforms through Goods and Services Tax (GST) subsuming many indirect taxes. It has eliminated the cascading affect of `tax on tax’ and made life easy by smooth and unified on-line accounting and compliance processes.
• Easing FDI norms: Government of India has raised the limits of Foreign Direct Investment to 100% in various sectors and also put them on `automatic route’. Tax concessions and concessional customs duty and tax holidays are offered to attract FDI.
• Huge Human Capital: with largest young population in the world, premier educational institutes producing large number of highly competitive professionals in the fields of Engineering, Medicine, Financial & Accounting, and General management streams, constant and sustained efforts on skill development of the inexpensive labour force, India offers a huge Human Capital.
• IT capital of the world: Indian IT industry has emerged as the fastest growing industry in the last three decades and has become an engine of accelerated economic growth. India produces largest number of IT professionals every year. IT services industry accounts for more than 50% of the export and the industry is on the course to achieve 300 to 350 billion USD annual revenue by 2025.
• A growing technical hub: India is emerging as a major technical hub and an alternative to China. Apart from large number of assembling units, manufacturing units are also coming for manufacture of smart phones, computers and other digital equipments. India is the second largest manufacturer of smart phone in the world.
• Start up and Technology Innovation: Indian Government is according highest priority to starts ups and technology innovations as a vehicle of transformation. Many young professionals with strong technical background had trail blazing success in start up space and attracting a lot of foreign investments.
• Outsourcing Powerhouse: India, the pioneer of the offshore IT and Business Process outsourcing, has emerged as the Powerhouse of outsource from US, Europe and many other countries of the world. Large pool of technically qualified professionals, cheaper skilled labour force with proficiency in English, extremely favourable Government policies have given unassailable advantage to India over other countries.
• Robust financial system: India has a very robust financial system comprising of Banks, Financial Institute, Non Banking Finance Companies, Mutual Funds, Insurance and Capital markets. India has one of the largest capital markets – both primary and secondary.

As per the Indian Economic Strategy to 2035 commissioned by Australian Government, India offers far better growth opportunities for Australia Business than any other country.
Whichever part of the Globe one may be in, India is an important part of business strategy. The role played by India in international community is enormous.The new India offers great opportunity and potential, and the businesses in Australia should look at India as an opportunity to be captured.
Both countries are now focusing on investment led strategy besides the trade led business relations.ar. Government, through various measures aiming to improve investment and consumption, demands to boost GDP.