In addition, there are other attractions: (1) a large number of highly educated people, especially in areas such as medicine, engineering, and computer science; (2) widespread use of English, long accepted as the international language of business; and (3) low wages and salaries, which often are 10 to 30 percent of those in the world’s economic superpowers. While these factors will continue to have a positive impact, the growing debate over jobs outsourced from the United States could dampen some of the impressive growth prospect for India. Also, the election upset of May 2004, in which the opposition National Congress Party defeated the ruling BJP Party, suggests Indians are concerned about attention to social needs, not just economic growth. However, the Congress-led coalition under Prime Minister Manmohan Singh has continued economic reforms as well. When terrorists who perpetrated violent attacks in Mumbai in November 2008, were traced to a Pakistani organization, there was concern that India’s already delicate relationship with its northern neighbor would unravel. To date, the two countries appear to be committed to working toward stability across their long border and broader cooperation. Elections in May 2009 further solidified the Congress Party’s coalition as the solid leader of the government.
1. What is the climate for doing business in India? Is it supportive of foreign investment?
2. How important is a highly educated human resource pool for MNCs wanting to invest in India? Is it more important for some businesses than for others?
3. Given the low per capita income of the country, why would you still argue for India to be an excellent place to do business in the coming years?