Doing Business in India VS Philippines: Which One Is the Best for You?
When we are talking about India vs Philippines, it could be challenging to decide where to invest. Both countries offer different benefits for businesspersons.
Let’s examine the two countries from the eyes of investors, India VS Philippines, and let’s find out which one is the best.
India Has the Following Economic Profile
India is the 2nd most populous country in the world, having over a billion people. The country has a total area of 3,287,263 Square Kilometres. The land frontier measures 15,200 Km and its coastline measures 7,516.6 Km. It’s the 7th largest country in the world.
India shares a land border with some countries like Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. If the prediction is right after 10 years, it could surpass China and become the most populous country in the world. When that happens, people will need more products and services.
Interest Rate on Business Loans
Fortunately in India, they have low-interest rates for business loans. The interest rate would range from 11-20% and a processing fee ranging from 1-3% of the loan amount. During the starting years of the business, the company may experience some struggles building itself especially when the capital is limited. One solution is to avail of some business loans available in the country where your business is.
Area of Investment
The huge population of India could provide many manpower services to the world. Businesses like IT, Business Outsourcing Services, and Software Development are just some of the crafts of India. Aside from this, the country is known for agriculture and fishing. Other areas of investment include fast-moving consumer goods, housing finance, automobile, infrastructure, and pharmaceutical stocks.
Incentives and Attractions of India to Foreign Investors
There are several reasons why you should invest in India. The following are some of them:
- Labor Cost – The minimum monthly wage for an 8-hour work in India is 5280 INR or almost 70 USD while the labour cost in the Philippines is 16,000 PHP, amounting to 330 USD when converted. The labour cost in India is still low compared to the Philippines.
- Large Market – This could be a deciding factor for India vs Philippines for business. India has a huge population of 1.3 billion while the Philippines has almost only 110 million. A lot of products and services can be created and sold in India with different prices, sizes, and colours to serve the different preferences of the customers.
- Buying Power – When people have work and when they earn money, they eventually buy goods and services which is good for the economy. When people always have available money, they are always prepared to buy anything and long as the commodities are needed.
- Special Economic Zones (SEZ) – Foreign companies who will invest and operate in Special Economic Zones in India will enjoy certain tax exemptions for the next 10 years.
Philippines Has the Following Economic Profile
1. Country Description
The Philippines is a group of 7,100 islands in Southeast Asia, with 3 main divisions. These are Luzon, Visayas, and Mindanao. The country is the largest catholic country in Asia after Spain introduced religion when they colonized the Philippines.
2. Economic Strategies
The economic strategy that the government of Philippines employed was primarily to focus on 6 aspects of the economy. These are strong economic growth, dealing with rising inflation, strengthening financial stability, dealing with poverty and inequality, scaling up public investment, and investing in human capital.
3. Area of Investment
We can’t miss this when talking about India vs Philippines for business. The Philippines is considered one of the friendliest countries for investors. With the expansion of the economy, the country needs priority investment on infrastructures like constructing roads, airports, business building, and telecommunications. Aside from these things, the country also needs investment in agriculture, franchising, insurance, rice retail, public wifi services, transport network vehicle service, self-service laundromat, and indoor plant business. This is not an exhaustive list. There are still more businesses in the country where you can invest.
4. Incentives and Attractions of Philippines to Foreign Investors
There are several reasons why you should invest in the Philippines. The following are some of them:
- Young English-Speaking Workforce. Education is a precious treasure for the Filipinos. They really send their children up to college to get a degree because they believe they can get a better job when they are degree holders. For this reason, the Philippines has a lot of young professionals who are good in English as the medium of educational instruction is the English Language. Every year there is no shortage in the supply of these young professionals as every year there are always new graduates.
- The country is rich in natural resources. When you’re into a manufacturing business, you need raw materials to create products. When raw materials are not available, manufacturing will be expensive as you need to import them from another country. Taxes and the transportation of the raw materials will add up to the expense. Fortunately, in the Philippines, a lot of raw materials are present which can be used by business persons and investors.
- An advanced legal system. The Philippines never get tired of creating laws for the protection of business and businesspersons who want to invest in the Philippines. Laws should be created to stop piracy like music and movie piracy and also to protect some trademarks. Fortunately, the Philippines crafted laws for the protection of business in the Philippines.
- A large domestic market. When we are talking about India Vs Philippines, of course, India is a bigger country, but we can’t deny the Philippine market as well. The business earns by selling its products and services either outside the country or within. Fortunately, in the Philippines, the domestic trade for products and services is also good. Business investors can take advantage of that.
The Call to Make a Decision Is Up to You
Who is the winner in the Economic battle of India VS Philippines? Well, it is for you to decide. The market in India is big. It’s considered a Super Economy. It also offers other benefits like cheap labour, good support from the government, good infrastructure, and a competitive business loan interest for those who need it. However, the Philippines has a good domestic market and advance law system which could work at your advantage.
Do you need further assistance in choosing between India and the Philippines? We at 3E Accounting would like to help. We’re among those known Company setup specialists on the planet.