INDIA
India
RELOCATION’S RISING STAR
India’s economy is booming, and with it the mobility sector. Louise Whitson finds out from some of the country’s leading relocation professionals which industries are leading the way, what the latest relocation hotspots are, and where Indian companies are sending their assignees.
W
ith China’s economy in the doldrums, Indian government figures show that India has retained its place as the world’s fastest-expanding major economy,
with growth of 7.6 per cent in 2015/16, up from 7.2 per cent the previous year. Despite the challenges of poor infrastructure, high levels of
corporate bad debt, and low job creation, the future looks bright for the vast and diverse subcontinent. Recent start-up Saffron Relocation provides UK companies
moving to India with immigration, logistics, property and settling- in services. It has offices in London and Gurgaon, and a pan-India satellite presence. Why does Saffron’s head of UK operations, Mark Proctor,
feel the time is right for this new venture? “India,” he says, “is experiencing ever-increasing interest from overseas, and expansive growth in foreign direct investment (FDI) year on year. With this, a significant number of multinational companies are setting up their operations in India. FDI increased by 26 per cent in 2014/15 from the previous year, and this trend is set to continue in the coming year. “With the recent downturn in the Chinese economy and
the subsequent pessimism as to future prospects for growth in China, India, which has stayed relatively immune from the slump, is widely seen as an increasingly favourable destination for investment. Many Asian countries, such as Japan and Korea, have long seen India as a hedge against China – an ally with a perfect
synergy that will allow these countries to remain competitive in the global marketplace. “India’s well-recognised shortfalls, in particular its
organisational and physical infrastructure, are being addressed, and its government has pledged $1trillon in infrastructure development by 2017. This will provide India’s economy, traditionally serviced based, with increased competitiveness in the manufacturing sector, affording it a two-tiered approach to growth.” Mark Proctor believes that many companies which, in the
past, have been attracted to India by reduced labour costs, cheap raw materials, and good logistical placement, but have avoided setting up there because of the lack of quality infrastructure, will now see the country as an “inevitable” destination for investment. “Companies such as Foxconn, Walmart and Bosch,” he says,
“have already made large commitments to India in 2015, and many others are due to follow. Companies are also being attracted by the government’s pledge to bring India into the top 30 of the World Bank’s Ease of Doing Business Index through its consistent engagement in lowering bureaucratic hurdles and tackling corruption. These problems may take a while to overcome, but the government is actively and directly addressing them, and there has been an appreciative response to the language of change.” Mark Proctor thinks that these positive trends will continue
into the foreseeable future, and that many UK companies will establish operations in India as a result, sending staff to set them up and operate them.
14 | Re:locate | Summer 2016
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