Juristax

Why Foreign Companies are Investing in India

A Land of Economic Opportunities

India, the world’s fourth-largest economy, is projected to grow at 6.6% in FY 2025–26, making it one of the fastest-growing major economies globally. With a 1.4+ billion consumer base, a young and skilled workforce, and rapidly rising domestic demand, India offers unmatched scale and long-term growth potential.

Government initiatives such as Make in India, Digital India, Startup India, and Production Linked Incentive (PLI) schemes, along with liberalized FDI norms, have significantly improved the ease of doing business. Combined with strengths in IT services, Global Capability Centres (GCCs), financial services, cost competitiveness, and robust infrastructure development, India has emerged as a preferred destination under the China+1 strategy. Up to 100% FDI permitted under the automatic route in most sectors.

Favourable Tax Framework

India has Double Tax Avoidance Agreements (DTAAs) with over 94 countries, offering tax certainty and reduced withholding taxes.

Competitive corporate tax rates include:

  • 22% for domestic companies
  • 15% for new manufacturing companies
  • No MAT under concessional tax regimes

These rates position India competitively alongside major Asian investment hubs.

Incentives

Foreign investors benefit from a wide range of central and state-level incentives, including:

  • Corporate tax concessions
  • Capital expenditure subsidies
  • SEZ benefits
  • Sector-specific incentive schemes

Investible Sectors in India

  • Electric Mobility

–  3rd largest automotive market globally

–  GST reduced to as low as 5%

–  Incentives under PLI and FAME schemes

–  USD 500 million EV policy (2024) to attract global manufacturers

  • Electric Components and Materials

–  2nd largest mobile phone manufacturer globally

–  Electronics market valued at USD 101 billion, targeting USD 300 billion

–  Incentives of up to 25% for manufacturing and R&D

  • Food Processing

–  USD 7.3 billion FDI equity inflow

–  GST rates between 0%-5% on food products

  • Food Processing

–  USD 7.3 billion FDI equity inflow

–  GST rates between 0%-5% on food products

  • Pharmaceuticals

–  Largest vaccine manufacturer globally

–  2nd highest number of USFDA-approved plants after the USA

–  3rd largest pharmaceutical producer by volume

  • Renewable Energy

–  USD 23 billion FDI attracted in the non-conventional energy sector

–  Third largest solar energy producer in the world

Entry Options for Foreign Companies

Foreign investors can establish:

  • Wholly Owned Subsidiary or LLP for full-scale operations
  • Liaison, Branch, or Project Offices for limited or project-specific activities

How JurisTax can support you?

JurisTax, headquartered in Mauritius, is a trusted global advisory and corporate services group. We support investors setting up semiconductor, electronics, and technology operations in India and worldwide.

Our Services Include:

  • Entity incorporation
  • Corporate administration
  • Tax planning & compliance

Allen D’souza

Manager | Business Development

Any Question?