Perfect time to invest in MSMEs India. Here’s everything foreign investors need to know

March 15 15:38 2021
Perfect time to invest in MSMEs India. Here's everything foreign investors need to know

India is the best destination for foreign investment in MSMEs with high returns
India is becoming a top investment destination for foreign investors due to its developing advanced infrastructure and network capacity as well as locational advantages that cater to its well-established manufacturing ecosystem and facilitate exports.

India attains 5th position in the world economy with the largest contribution emerging from MSME (Mirco, Small, Medium, Enterprises). India’s MSME sector is the second largest in the world after China, and it encompasses enormous varieties of manufacturing and services sector industries.

Indian Government initiated several measures in recent years, most notably Make in India and Aatmanirbhar Bharat, to draw the attention of foreign investors.  

Make in India is considered a revolutionary initiative as it is expected to create a 25% share of manufacturing to GDP and 100 million jobs before 2022.

MSME occupies major in national GDP as it aids in resolving various economic challenges like unemployment and equal distribution of wealth. The Government of India implements different policies and programs through loans, subsidies, and technological advancements to develop MSME.

As of a recent survey, there are 6,30,50,000 micro-enterprises actively functioning throughout India. A number of small industries are declared to be 33,00,000, and 5,000 are officially registered medium industries.

Why should foreigners invest in Indian MSME?

  1. Extensive domestic market
  2. Workforce available at lower cost
  3. Highly developing infrastructure
  4. Existence of economic zones 
  5. integrated industrial environment 
  6. Most favourable policies for enterprises
  7. Tax exemptions & targeted incentives 


How manufacturing sector of India is a lucrative opportunity for foreign investors?

The manufacturing of goods has a significant influence on India’s economic performance. The sector contributes a 15% share to the national GDP. The government of India keeps supporting different initiatives and measures to enhance the manufacturing sector in the country.

Production-based industries generate massive employment opportunities, and it also boosts the export of the country. A cumulative Foreign Direct Investment (FDI) has grown to USD 89.15 billion from April 2000 to December 2019.

Moderation of India’s taxation policies is the most enticing factor that makes the Indian market more favorable for foreign investors than other Asian countries.

In September 2019, the government lowered the percentage of taxes from 25 to 15 percent for the business registered after October 1, 2019, and began functioning before March 31, 2023. 

MSME with futuristic scope for investment

  • Telecommunications

Manufacturing of equipment:

  1. Routers and switches
  2. Software-defined networking equipment  
  3. Cheaply costed mobile phones devices
  4. Transceiver station equipment   

Value-oriented service sector:

  1. Data analytics of mobile customer
  2. Analytical solutions   
  3. Value-added services  
  4. Over-the-top (OTT) platforms offering entertaining content and service to subscribers of mobile.
  • Healthcare
  1. Healthcare facilities affordable to local citizens  
  2. Medical equipment to serve in rural areas  
  3. Operational equipment like surgical gloves, syringes, scrubs.  
  4. Affordable surgeries  to  minimize the healthcare expenses  
  5. Medical tourism  
  6. Diagnostic laboratories
  • Electronics

Manufacturing & designing the following equipment

  1. Designing Semiconductors
  2. Design of Electronic Gadgets   
  3. Production of Hi-tech Devices
  4. General Electronic Products
  5. Gadgets for National Armour
  6. Inexpensive consumer electronics
  7. Household Appliances
  8. Microelectronics
  9. Nanoelectronics 


How can businesses register as MSME in India?

MSME registration process is simple and easy to encourage entrepreneurship. 

MSME participants are required to fill the one-page form – “Udyam Registration Process

Registrants have to fill up the following information in the application form:

  1. Number of Personal Aadhar
  2. Name of your Industry 
  3. The official address of the enterprise
  4. Details of bank account

Applicants will receive the Udyam Registration Number after the submission form.

Self-certification is enough to validate the information; no supporting documents are required to be attested with the form.

Conclusion

The exponential momentum of small sector businesses in India and rewarding government policies opened tremendous opportunities in the market for international capitalists for long-term investment. 

The development of micro, small, and medium businesses is escalating in India. Continuous support from the government for the economic welfare of minor industries will make the market more compatible with foreign direct investment (FDI) in upcoming years.

Media Contact
Company Name: MSME / Udyam Registration Consultancy
Contact Person: Vishal Satpute
Email: Send Email
Phone: 9112211457
Address:Office No. 101-102, 1st Floor, Gulmohar Apartments, East Street Camp
City: Pune – 411001
State: Maharashtra
Country: India
Website: https://www.msmeregistration.org/

  Categories: