South Asia · current conditions as of 11 October 2026 · fundamentals reviewed 16 October 2026
🇮🇳 Doing business in India
Worlds fastest growing major economy with massive opportunity.
Long-term risk: Medium
Current alert: Monitor
Oil-import shock from the Hormuz closure: Brent about US$100 and the rupee near record lows (~96.8 per USD on 9 Oct). The RBI raised its policy rate 25bp to 5.50% on 7 Oct, its first hike since 2023. USD-denominated labour costs are lower; input and energy costs higher.
This has not changed the score yet.
Conditions change fast. Check current government travel and trade advisories before acting.
What makes up the long-term score
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.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
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 team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
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
Tap a market to see it side by side with India.
Common questions
Is India a good market to enter in 2026?
India has a long-term score of 6.4/10 on EmergingMarketIQ’s index (long-term risk: Medium) and scores 6.4/10 now, as of 11 October 2026. Worlds fastest growing major economy with massive opportunity. India imports most of its crude, much of it historically via Hormuz. With Brent about US$100 and the rupee near record lows (~96.8 per USD in early October 2026), import costs and inflation pressure are rising; the RBI raised the repo rate to 5.50% on 7 Oct. A border shooting on 2 Oct led India and Pakistan to summon each other's envoys, with no military escalation. For foreign firms, USD-denominated labour costs have fallen.
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; depending on industry the range is US$270k–US$390k. 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 and alerts updated 11 October 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.