Apple opens its first stores in India
02:29 - Bron:CNN
Hong Kong/London CNN—
When Tim Kokarrived in India to open Apple's first physical store at the beginning of this month he is celebrated as a hero in the country.
The executive director was greeted with cheers and applause,represented bycourted old Macintosh and the country's authorities,OnFirst Narendra Modi.
Cook's visit, the latest by a senior international executive, illustrates the growing interest companies and governments are showing in doing business with India. Just days after its historic journey, Pret A Manger, the trendy British sandwich chain, opened its doorsfirst exitin the commercial capital of Mumbai, drawing on the country's growing middle class.
India will overtake Chinabecome the most populous nation in the worldthis weekend, according to United Nations calculations, a milestone that will only cement its growing image as the darling of the world economy.
The new status has raised concerns about whether the economy will use this demographic strength to displace China in other ways.
The arguments for investing in India - a country of 1.4 billion people - are clear and have only been confirmed by recent geopolitical changes. As Western leaders push for greater economic cooperation with countries that share similar values, India, the world's largest democracy, could win.
Until recently, many countries and companies "put all their eggs in the Chinese basket," says Partha Sen, professor emeritus at the Delhi School of Economics. While tensions between the West and Beijing continue to rise, there is a "movement to diversify and India is a perfect fit," he added.
A crowded train station in Loni, Uttar Pradesh, India, in April.
India's so-called 'demographic dividend', the potential economic growth that comes from a large workforce, represents a huge opportunity. A large consumer market and an affordable workforce are also attracting more attention from global brands and business partners.
In an effort to boost the manufacturing sector and increase exports, the Indian government has sought to sign free trade agreements, a move that has been warmly welcomed around the world.
As of 2021, India has signed agreements with Australia, United Arab Emirates and Mauritius. It is also negotiating agreements with the European Union, the United Kingdom and Canada.
Russia, whose trade with the West has plummeted since last year's invasion of Ukraine, is also interested in strengthening ties with India. The move is seen as risky as it requires a tricky balancing act by New Delhi to keep Washington happy as it prepares for Moscow.according toShilan Shah, Deputy Head of Emerging Markets Economics at Capital Economics.
The United States and India have taken steps in recent months to strengthen their ties, particularly in defense and technology, to counter the rise of an increasingly assertive China.
In January, the White Housestarted cooperationwith India, which Washington hoped would help the countries compete with China in artificial intelligence, military equipment and semiconductors.
United States hailed the agreement as strengthening "our democratic values and democratic institutions", although those ideals have been undermined by the recent crackdown by opposition politicians in India andto the media.
In February, Air India bought more than 200 aircraft from Boeing(BA)at the American aircraft manufacturerthe third biggest sale ever. President Joe Biden praised the "strength of the US-India economic partnership."
"Together with Prime Minister Modi, I look forward to further deepening our partnership as we continue to address shared global challenges," he said.
Air India's recent order for more than 200 Boeing jets could support more than a million jobs in the US.
A month later, US Commerce Secretary Gina Raimondo visited New Delhi with a group of senior executives from US companies. She signed thereagreementwith Indian leaders to discuss mutual coordination of investments in the semiconductor industry.
Speaking at the Indian embassy in Washington last week, Raimondo said, “There will be two technology ecosystems in the coming years. One is in line with our democratic values and the other is not."
"An economic miracle?"
Apart from geopolitics, India's economic and demographic fundamentals drive commercial interest.
International Monetary Fundto waitThe South Asian country outperformed all major emerging and advanced economies this year, recording GDP growth of 5.9%. In comparison, the economies of Germany and the United Kingdom will stagnate, while the United States will grow only 1.6%.
If it manages to maintain its momentum, India will overtake Germany as the world's fourth largest economy by 2026 and displace Japan from third place by 2032, according toanalyzeby the Center for Economic and Business Research.
According to 2021 data from the Organization for Economic Co-operation and Development, India has more than 900 million people of working age. In the coming years, your workforce may exceed from Chinaaccording toEconomic capital.
The Biden administration embraced India's projected growth with unbridled enthusiasm.
"We want to be part of your economic miracle," said Donald Lu, US assistant secretary of state for Central and South Asian affairs.countedIndian news agency PTI last week.
But India's impressive GDP and population growth comes with a growing headache.
"If you look at the overall data -- GDP growth, total national income is growing, India is doing pretty well," said Kaushik Basu, a professor of economics at Cornell University. "Lower India is not doing well," he added. "The main reason for this is that India is doing very poorly in terms of employment."
At 7.1%, India's unemployment rate remains above the pre-pandemic average. Basu told CNN about the jobs problem, which some analysts have pointed tocalledimpending time bomb, was becoming one of India's biggest problems and could worsen as the population grows.
Economists say there is a clear answer to the employment problem: build more factories.
"The demographic potential and the key to unlocking it would be the development of this globally competitive and labor-intensive manufacturing sector," said Thamashi De Silva, associate economist at Capital Economics.
By 2021, manufacturing will account for less than 15% of India's economy or employment — relatively small by global standards, noted Capital Economics' Shah.
Fortunately, the need for more assembly lines comes as companies look for new production centers.
Weeks earlier, the head of Foxconn also visited India andstopped methmodes. The Taiwanese electronics maker, which supplies Apple, was one of the fastest-growing manufacturers in India late last year and is looking to expand.
A media preview at Apple's store ahead of the opening in Mumbai in April. The iPhone maker opened its first physical stores in the country last week.
"Apple's increased production and investment in India has certainly raised hopes of building an electronics ecosystem in the country and, more broadly, encouraged other multinationals," De Silva said.
India will benefit if companies diversify their supply chains away from China, but "a number of obstacles" will prevent that shift, said Alexandra Hermann, chief economist at Oxford Economics.
She cited strict labor laws, high import tariffs and logistical challenges. While India's technology exports have grown steadily in recent years, places like Taiwan and Vietnam "have so far benefited the most from looking to alternative sources of imports," she told CNN.
Despite improvements in infrastructure, India's logistics costs are still higher than those of China, South Korea, Japan, Malaysia and Thailand, according to the World Bank.
Cornell University's Basu said now is the time for the government to come up with a plan to absorb the surplus labor force by creating manufacturing jobs.
"Do it right and it pays off," he said. "Get it wrong and it will be extremely worrying for the Indian economy."
CNN's Vedika Sud in New Delhi contributed to this report.
India's so-called “demographic dividend,” the potential economic growth arising from a large working-age population, represents a major opportunity. Its vast consumer market and pool of affordable labor is also drawing more attention from global brands and trading partners.Why is India attractive for business? ›
In India, a strong and stable economy, dramatically widening incentive programmes, infrastructural improvements, and access to a large labour supply, form the basis of its appeal to investors. In addition, policy reforms are making it easier to do business in India.Why do companies go to India? ›
Corporate tax incentives for eligible companies; Tax incentive for Capital Expenditure on specified businesses; Incentives for Special Economic Zones (SEZs); and. Tax incentives in different Indian states.What is current economic situation of India? ›
The economy of the Indian subcontinent was the largest in the world for most of recorded history up until the onset of colonialism in early 19th century. India account for 7.2% of global economy in 2022 in PPP terms, and around 3.4% in nominal terms in 2022. 1,417,173,173 (2nd; 2022 est.)What is the economy of China? ›
It is the only middle-income economy and the only newly industrialized economy in the top 30. It is often ranked among the world's most innovative countries, leading several measures of global patent filings. China has the second-largest financial assets in the world, valued at $17.9 trillion as of 2021.Is it better to start a business in India or USA? ›
This can make it difficult to compare the two systems. However, overall, it is generally considered easier to start a business in the US than in India. The process is more straightforward and there are fewer restrictions. Additionally, the US has a lower corporate tax rate than India.Which country is the most attractive for business? ›
Read more in our ranking of the most attractive countries in the world for business. Switzerland is recognized as the best country for entrepreneurs, which is known for the ease of doing business. The Swiss Confederation ranks second in the world in terms of GDP per capita.Why does everyone outsource to India? ›
A lot of companies often choose to outsource to India because of the wide talent pool. The Indian workforce consists of skilled professionals that are well-versed in world-class business practices. They can accomplish various tasks efficiently and deliver quality work.Why is everyone investing in India? ›
India is not only a fast-growing economy but also a market that is relatively uncorrelated with other major economies. Investing in India can reduce the overall risk of your portfolio. Attractive valuations: Despite its strong economic growth, India still offers attractive valuations compared to other emerging markets.Why do people return from USA to India? ›
India has some of the lowest taxes in the world, especially for individuals. This is a great opportunity to invest in real estate and pay less tax. There are many reasons why it is a good idea to move to India from the USA. One of these reasons is the fact that taxes in India are much lower than they are in the USA.
Detailed Solution. The correct answer is Service Sector. The services sector is the largest sector of India.Which is the fastest growing economy in world? ›
India. India's GDP grew by 8.7% in 2021, reaching $3.1 trillion, making it the fastest-growing major economy in the world. Furthermore, India's per capita income has doubled in the last decade, and poverty rates have declined significantly.Is the US economy growing? ›
U.S. Economy Continues to Grow, but More Slowly. Gross domestic product increased 1.1 percent in the first quarter as consumer spending remained robust despite higher interest rates.What is the economy of USA? ›
The U.S. has a mixed economy that blends some aspects of command and market economies. Relative to other countries around the world, the U.S. is among the more market-oriented nations, but it imposes strict regulations and controls in some areas.Who has the best economy in the world? ›
1. Healthcare and Insurance Sector. Due to an ageing population, an increase in chronic illnesses, and a growth in disposable income, India's demand for healthcare services is on the rise.Can a US citizen do business in India? ›
Can A Foreign National Start A Business In India Without Being A Resident? Any person can start his business in India like Foreign Citizens, Overseas Citizen of India card holder (OCI), foreigner citizen, Non Resident Indians (NRI), Person of Indian origin (PIO).Is doing business in India hard? ›
But doing business in India can still be a troublesome endeavour, and having local help can really make the difference to the success of your venture. The cost of starting a business in India is astronomical, and the procedures involved can be daunting without local knowledge.Which country is safest for business? ›
- Switzerland. #1 in Open for Business. #1 in Best Countries Overall. ...
- Panama. #2 in Open for Business. #53 in Best Countries Overall. ...
- Finland. #3 in Open for Business. ...
- Luxembourg. #4 in Open for Business. ...
- Norway. #5 in Open for Business. ...
- Denmark. #6 in Open for Business. ...
- Sweden. #7 in Open for Business. ...
- Singapore. #8 in Open for Business.
- Sweden. #1 in Quality of Life. #5 in Best Countries Overall. ...
- Denmark. #2 in Quality of Life. #10 in Best Countries Overall. ...
- Canada. #3 in Quality of Life. ...
- Switzerland. #4 in Quality of Life. ...
- Norway. #5 in Quality of Life. ...
- Finland. #6 in Quality of Life. ...
- Germany. #7 in Quality of Life. ...
- Netherlands. #8 in Quality of Life.
- United Arab Emirates.
- United States.
Many companies based in the United States outsource their web development from India and other overseas locations. The main reason they do this is that they are saving money. If you are also thinking about outsourcing to India, you may be wondering about the pros and cons that come with outsourcing.Which Indian companies send employees to USA? ›
Companies such as Tata Consultancy Services, Tech Mahindra and Wipro have a significant employee base at client locations, primarily in the US, as well as the UK, Australia, Japan and Europe.Which countries outsource to India the most? ›
Currently, the US, UK, and Australia are some of the leading outsourcing markets contracting to companies in the Philippines and India. Some developed countries in Asia have also started outsourcing their services, such as Singapore and Japan.Who invest most in India? ›
Mauritius, Singapore, the U.S., the Netherlands, Japan, the U.K., Germany, and the United Arab Emirates are the main investing countries in India. Investments were mainly oriented towards services, computer software and hardware, telecommunications, trade, the automobile industry, construction, and chemicals.How rich people invest in India? ›
84% of the investable wealth of Indian ultra-high-net-worth individuals is allocated between equities, real estate and bonds, as per the Knight Frank report.How risky is investing in India? ›
Index funds are generally considered safe because they don't rely too much on the performance of any individual stock, and they also don't rely on the competence of investment managers as actively managed mutual funds or hedge funds do.What is the salary of moving from US to India? ›
So if you are drawing a salary of USD 100,000 in the US, you can expect to draw Rs 21 lakh in India, give or take. At an exchange rate of Rs 45, that would translate to an Indian salary of USD 46,666 or 46% of the US salary.Why do NRIs want to return India? ›
They feel that they owe something to their country and want to give back to their motherland in terms of service and charity. Many NRIs come back to India and set up non-profit ventures to tackle socio-economic issues.What is the salary of NRI moving back to India? ›
Broadly, you could expect 40-70% of your US salary as your salary in India. The next step is to understand what exactly salary means. In the previous article we saw what kind of salaries NRIs returning to India from the US could expect. Broadly, you could expect 40-70% of your US salary as your salary in India.
According to the World Inequality Database, an annual income of Rs 18.6 lakh or more in 2021 would put an Indian among the richest 1 percent of the country.What are the 7 sources of income in India? ›
- Salary Income. You already know what a salary is but, let's define it anyway! ...
- Interest Income. ...
- Dividend Income. ...
- Capital Gains Income. ...
- Rental Income. ...
- Profit Income. ...
- Royalty Income.
India will be the fastest-growing economy among the seven largest emerging markets and developing economies, despite a challenging external environment, said the World Bank in its global economic prospects report. A decade ago, India's GDP was the 11th largest in the world.Is India struggling with economy? ›
India's economy stutters, but remains on track to lead world growth. India's economic growth slowed further in October-December, but the government is retaining its growth forecast of 7% for 2022-2023 – a level that would make it the world's fastest-growing major economy.What country has the best future? ›
1. Sweden. Sweden is the top country in 2022 best quality of life rankings. The country stands out in the ranking of quality of life for health systems and well-developed public education, security, economic stability, and politics.Which country will be richest in 2050? ›
As a result, six of the seven largest economies in the world are projected to be emerging economies in 2050 led by China (1st), India (2nd) and Indonesia (4th) The US could be down to third place in the global GDP rankings while the EU27's share of world GDP could fall below 10% by 2050.Is the US the fastest growing economy? ›
Facts First: Biden's claim is false. The US economy grew by 5.7% in 2021, but more than 50 other countries had faster growth that year, figures published by the International Monetary Fund show; many of them are small or developing countries, but some of them are large or wealthy.Why is the US economy so strong? ›
All values, unless otherwise stated, are in US dollars. The American economy is fueled by high productivity, transportation infrastructure, and extensive natural resources. Americans have the highest average household and employee income among OECD member states.How much debt is the US in? ›
What is the national debt? The national debt ($31.46 T) is the total amount of outstanding borrowing by the U.S. Federal Government accumulated over the nation's history. Updated daily from the Debt to the Penny dataset.Is the US economy getting stronger? ›
That has translated into sustained demand, which in turn produced a January jobs report that showed 517,000 jobs added — the most since July. And while gross domestic product has also most likely peaked in the post-pandemic period, it remains firmly in positive territory, with 2.9% growth in the most recent quarter.
Overall, in the calendar year 2022, the United States' Nominal GDP at Current Prices totaled at $25.463 Trillion, as compared to $23.315 Trillion in 2021. The three U.S. states with the highest GDPs were California ($3.6 Trillion), Texas ($2.356 Trillion), and New York ($2.053 Trillion).What made America wealthy? ›
The integration of far-flung settlements required new technologies — steam engines, canals and railroads — setting the country on a natural course to industrial development. In sum, slavery and conquest created the foundation upon which the U.S. economy grew.What is the strongest economy in the US? ›
On this page, US states are ranked by the real gross domestic product (GDP). California has the largest GDP among US states of $2.8 billion accounting for 15 percent of the total country's GDP. Texas has the second-largest economy which constitutes 10 percent of the national economy.Where does America rank in the world? ›
For its part, the U.S. moved back into the top 5 this year after jumping from No. 7 to No. 6 in the 2021 rankings. The country is at or near the top of several subranking lists: It's No.What country has the most freedom? ›
In the 2022 index, New Zealand is ranked most free overall, while North Korea is last. Hong Kong was ranked most free in economic liberty, while Norway was ranked most free in the social liberty category.Which country is the richest in the world? ›
- The world GDP per capita continues to grow every year, and is projected to be $13,920 for 2023.
- Luxembourg is the richest country with a GDP per capita of $128,820.
India has been rated as the most attractive retail destination in the world by AT Kearney for the third year in a row. Indian retail is witnessing a convergence of several favourable factors such as a steady economic growth, favourable demographics, infrastructure creation and supply of good real estate etc.What attracts people to India? ›
Natural beauty, landscapes, and India's cultural diversity are some tourist attractions of India.Why does India have a good economy? ›
India's economy encompasses traditional village farming, industrial-scale agriculture, handicrafts, and a wide range of modern industries. With a well-educated English-speaking population, India is a major exporter of information technology services, business outsourcing services, and software workers.What businesses are successful in India and why? ›
- Cloud Kitchen. Cloud Kitchen is one of India's creative food business ideas. ...
- Wedding Planner. ...
- Organic Farming. ...
- Online Bakery. ...
- Courier Business. ...
- Pet Care Service. ...
- Cooking Classes. ...
- Commercial Cleaning Services.
Clothing & Apparels
One thing that would never go out of demand is clothing! They are one of the most selling products in India. Especially with players like Myntra, Amazon, Meesho, etc., clothing and apparel are available to people at affordable rates and quick delivery.
Also known as the land of spices, the country produces about 70% of the world's spices from turmeric, masala, coriander, saffron, to many more. Actually, 75 spices out of the 109 common spices in the world are produced in India. The country is also the largest consumer and exporter of spices in the world.Which country uses Indian products the most? ›
|3||United Arab Emirates||28.76|
Reasons for increasing foreigners' visits to India
The country is known to the world for its diversity and richness in culture and traditions. India has many historical sites that take the tourist to the past and the art and architecture of ancient India are very pleasing to the eyes.
Collectivism and Harmony
Indians generally place a high value on harmony and unity with others, keeping a strong nexus with their community and relatives. A unified and interdependent community or family provides a support system that an individual can rely on daily.
- Tandoori Chicken. Tandoori chicken is a popular Indian dish in the United States. ...
- Murgh Makhani (Butter Chicken) ...
- Chicken Vindaloo Curry. ...
- Instant Pot Butter Chicken. ...
- Rogan Josh. ...
- Malai Kofta. ...
- Palak Paneer. ...
- Chole (Chickpea Curry)
The country is largely dependent on fossil fuels oil, gas, and coal but it is increasingly adding capacity to produce hydroelectricity, wind, solar, and nuclear power. Medical tourism to India is also a growing sector.Is India a rich country? ›
List of the World's Richest Countries in 2022: A Quick Look at the Top 10 Wealthiest Countries.
|The United Kingdom||$3.19 trillion|
1. Food and Beverage Business- A Business Related to Hospitality Industry. India has approximately 1.25 billion consumers of food with all the foodies and lovers of food out there. Also, India is one of the fastest-growing economies in the world.Which business is demand in India? ›
|Business||Estimated Investment||Estimated Earnings (Per Month)|
|Cloud Kitchen||₹30 lacs||₹3.75 lacs.|
|Digital Marketing Agency||₹5 lacs||₹80000|
|Courier Service||₹1 lac||₹30000|
- E-Commerce distribution center for small business. ...
- Retail & Distribution Consulting. ...
- International Trade Consulting Company. ...
- Personal CyberSecurity Software Company. ...
- Small Business CyberSecurity Software Company. ...
- Security Company (Drone powered) ...
- Digital Assistant Integrations Company.