1 Macro snapshot — India in numbers
GDP: ≈ USD 3.8 trillion, with the IMF projecting ~6.8 % real growth in FY 2025-26.
Demographics: 67 % of 1.44 billion citizens are under 35; 12 million new entrants to the workforce each year.
Digital economy: 150 billion annual UPI payments; cheapest 1 GB mobile data cost among G-20.
Capital inflows: USD 46 billion net FDI in FY 2024-25 — highest ever for India, third-highest globally.
Political stability: Single-party majority since 2014; 34 places jumped in World Bank Logistics index (2016-24).
2 India vs peer destinations
Metric | India | Vietnam | Indonesia |
Population (millions, 2025) | 1,440 | 100 | 281 |
Median age (yrs) | 29 | 34 | 32 |
Urban internet cost (1 GB, USD) | 0.13 | 0.70 | 0.48 |
Corporate tax headline rate | 22 % (new regime) | 20 % | 22 % |
Average monthly engineer salary (USD) | 1,100 | 1,300 | 1,250 |
English‑proficient graduates (’000/yr) | 850 | 100 | 120 |
Beacon Filing takeaway: India’s talent pool and data-cost advantage outweigh slightly higher corporate tax versus ASEAN peers.
3 Five structural advantages foreign founders love
Unified Single Market — GST subsumed 17 taxes; interstate e-way bill lets a truck cross India in 72 hrs (vs 138 hrs pre-2017).
Digital Public Infrastructure — Aadhaar, UPI, Account-Aggregator rails slash KYC cost by 70 %.
Production-Linked Incentive (PLI) Schemes — 14 sectors, USD 26 bn incentives till 2028; mobile phones alone drew Apple & Samsung supply chains.
Growing Middle Class — 85 million households will earn > USD 10k disposable income by 2027 (EY estimate).
Geo-economic hedge — “China + 1” sourcing strategy pushes suppliers to India for risk diversification.
4 Hot sectors for 2025-30
Sector | 2025 size (USD bn) | CAGR 25–30 % | FDI route | Beacon Filing insight |
Electronics mfg | 115 | 21 | 100 % auto (minus defence) | PLI up to 6 % cash‑back on sales |
Renewable energy | 19 GW add/yr | > 25 | 100 % auto (generation) | Green‑H2 duty waiver till 2030 |
FinTech & payments | 85 | 18 | 100 % auto (B2B) | GIFT‑IFSC grants 10‑yr tax holiday |
EV & battery | 7 | 34 | 100 % auto (manufacturing) | Customs duty cut on Li‑ion cells to 5 % |
Pharma CDMO | 55 | 14 | 100 % auto | Bulk‑drug parks offer 50 % cap‑ex subsidy |
5 Incentive menu you can mix-and-match
GIFT City Section 80LA: Choose any 10 of 15 years at 0 % income tax.
SEZ profit holiday: 15 yrs (100 % for 5 yrs, 50 % next 10).
State SGST refunds: Maharashtra, Tamil Nadu refund 50-75 % of state GST for mega projects.
Import-duty exemptions: Zero customs on capital goods routed through SEZ/GIFT for export production.
Beacon Filing models NPV of each incentive stack so CFOs know which state + scheme combo maximises IRR.
6 Entry pathways & timelines
Pathway | Calendar days to go-live (typical) | Beacon Filing deliverable |
Wholly‑owned subsidiary (Pvt Ltd) | 18 – 25 | SPICe+, PAN/TAN, GST + 1‑yr compliance concierge |
LLP with 100 % FDI | 25 – 35 | FiLLiP, FDI‑LLP filings, resident DP service |
GIFT IFSC unit | 55 – 70 | IFSCA licence pack + SEZ operationalisation |
Contract manufacturing via Indian OEM | 30 | Draft and vet 100 % buy‑back agreement; map GST reversal risk |
7 Biggest mistakes we fix Using a trading entity for future manufacturing — loses PLI eligibility; we structure spin-off before cap-ex hits. Late Form FC-GPR / FLA filings — RBI penalties at USD 7,000 per entry; our FEMA desk files within 30 days of share issue. Over-aggressive royalty pricing — triggers 10 % withholding + transfer-pricing adjustment; Beacon Filing benchmarks to OECD range.
8 Real-world founder stories
• Seoul-based SaaS opened a GIFT unit; 10-year tax holiday saved USD 1.8 m in year 1.
• Dutch EV battery firm flipped a contract-manufacture deal into a 100 % subsidiary in 22 days; imported pilot line duty-free.
• US wellness brand tested D2C demand via an Amazon India storefront, then moved into a Bengaluru warehouse once monthly GMV hit ₹1 cr.
9 Beacon Filing — your India launch engineer
Big-4 trained CAs + ex-DPIIT policy officers on one retainer.
FEMA, transfer-pricing and indirect-tax desks in-house — no agency ping-pong.
Launch-to-scale playbook: entity set-up → incentives → bookkeeping → audit → exit support.
Flat-fee + SLA: weekly progress tracker, escrow refund if milestone slips.
Ready to make India your fastest-growing market?
Book a strategy call and let Beacon Filing turn regulations into runway.
Disclaimer (23 July 2025): Data reflects sources available on the date above; laws and incentives may change. Always seek personalised professional advice before acting.
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