An Introduction to Doing Business in India 2023 for EU Businesses

ANINTRODUCTIONTO DoingBusinessinIndia2023 forEUBusinesses SpecialFocus India-EUTradeandInvestment KeySectorOpportunitiesforEUBusinesses VISITUSONFACEBOOK <DezanShira&Associates> <IndiaBriefing> VISITUSONLINKEDIN <DezanShira&Associates> <IndiaBriefing> FOLLOWUSONTWITTER @DezanShira@IndiaBriefing THEDOINGBUSINESSINASIAGUIDESSERIES AvailabletoDownloadNow: DoingBusinessinIndiaPortal-LAUNCHEDNOW! •ASEANGuide •ChinaGuide •IndiaGuide •IndonesiaGuide •HongKongGuide •SingaporeGuide •VietnamGuide •ChinaSuperCityClusters(Upcoming) •DubaiGuide OurlatestonlineDoingBusinessinIndiaPortalconsists of100+guides,videos,publications,andtoolsthatarepracticalandeasytonavigate,covering:WhyIndia,RegionstoInvest,SectorInsights,HowtoSetup,Tax,AuditandAccounting,HR,Recruitment,PEO,andPayroll,News,Events,andmore. ThiseditionofDoingBusinessinIndiawasproducedbyateamofprofessionalsat DezanShira&Associates,withNainaBhardwajasTechnicalEditorandKatherineCheungGarciaascontributor.CreativedesignoftheguidewasprovidedbyNguyenHoangLinhandMiguelEnricoAnciano. ©2023DezanShira&Associates Disclaimer Thecontentsofthisguideareforgeneralinformationonly.Foradviceonyourspecificbusiness,pleasecontactaqualifiedprofessionaladvisor.Copyright2023,AsiaBriefingLtd.Noreproduction,copying,ortranslationofmaterialswithoutpriorpermissionofthepublisherispermitted. YourPartnerforGrowthinAsia AboutDezanShira&Associates AtDezanShira&Associates,ourmissionistoguideforeigncompaniesthroughAsia’scomplexregulatoryenvironmentandassistthemwithallaspectsofestablishing,maintainingandgrowingtheirbusinessoperationsintheregion.Sinceitsestablishmentin1992,DezanShira&AssociateshasgrownintooneofAsia’smostversatilefull-serviceconsultancieswithoperationalofficesacrossChina,HongKong,India,Singapore,andVietnamaswellasliaisonofficesinItaly,GermanyandtheUnitedStates,andpartnerfirmsacrosstheASEANregionandinBangladesh.Withover30yearsofon-the-groundexperienceandalargeteamofprofessionaladvisers,weareyourreliablepartnerinAsia. Preface CONTACT DezanShira&Associatesindia@dezshira.comwww.dezshira.com NamasteandwelcometoourguideonDoingBusinessinIndiaforEUBusinessesin2023! ThisspecialeditionhighlightsthedynamiceconomicpartnershipbetweenIndiaandtheEuropeanUnion(EU),whichachievedarecordbilateraltradeofUS$132.09billioninFY2023.AsIndiaandtheEUcelebrate60yearsofbilateralrelations,botheconomicpartnershavetheopportunitytoleveragetheirsynergiesacrossvarioussectors. Further,variousgeopoliticaleventshaveresultedinIndiaandEuropeprioritizingstrongerties,creatingopportunitiesforcollaborationindigitalization,cleanenergy,research,manufacturing,FinTech,infrastructure,andeducation.Thesepartnershipsoffergreatpotential,especiallyforIndianandEuropeanSMEsandbusinessalliances. India’srobustgrowthtrajectory,backedbybusiness-friendlyreforms,positionsitasakeyplayerinshapingtheglobaleconomyofthe21stcentury.Despiteexternalheadwinds,IndiahasseenanunprecedentedriseinM&Aactivitiesandhasfosteredathrivingstartupecosystemwithover100unicorns.Moreover,infrastructuremodernizationistopofIndia’sdevelopmentagenda,coveringconnectivityprojects,integratedindustrialtownships,andschemestobolstersector-specificdomesticmanufacturingcapabilities. EuropeancompaniesarealsoactivelycontributingtoIndia’sshifttowardsaninnovation-basedandsustainability-driveneconomy.EUinvestmentsinIndiahavemorethandoubledinrecentyears,withafocusonsectorssuchashighprecisionmanufacturing,pharmaceuticals,ande-commerce. AsIndia-EUengagementcontinuestogrow,understandingmarketdynamics,regulations,andlocalconsumerpreferencesbecomescrucialforEuropeancompaniesstrivingforsuccessinIndia.Thisbusinessguide,createdbyDezanShira&Associates,aspecialistfirmofferingcomprehensivebusinessservicestomultinationalinvestorsinemergingAsia,providesvaluableassistancetoEuropeanbusinessesinformulatingtheirIndiamarketstrategy. RICCARDOBENUSSI Director-EuropeMunichDezanShira&AssociatesMilanOffice ROHITKAPUR ManagingDirector DezanShira&AssociatesNewDelhiOffice What’sNewinThisGuide? DoingBusinessinIndia2023forEUBusinessesisdesignedtointroducethefundamentalsofinvestinginIndia.CompiledbytheprofessionalsatDezanShira&AssociatesinJune2023,thiscomprehensiveguideisidealnotonlyforEuropeanbusinesseslookingtoentertheIndianmarket,butalsoforcompanieswhoalreadyhaveapresencehereandwanttokeepuptodatewiththemostrecentandrelevantpolicychanges. Tobemorespecific,thebelowchangesarenoticeableforyourattention: WhyIndia:Despiteheadwindschallengingtheglobaleconomy,2022hasbeenayearofopportunitiesandpositivedevelopmentsforbusinessesinIndia,whichpostedanestimated 8.7percentgrowthinfinancialyear2021-22(FY2022)andprojectedtoreach7.2percentinFY2023.Inthelasttwo-threeyears,multipleinvestor-friendlyschemeshavebeenrolledoutliketheproductionlinkedincentive(PLI)schemes,NationalMonetizationPipeline,etc. Thischapteradditioninthe2023DoingBusinessGuidewillprovideacomprehensivesummaryofallthefactorsthatmakeIndiaanattractiveinvestmentdestinationforforeignstakeholdersandopportunitiesintargetsectorslikeautomotives,manufac