Doing Business in India VS Switzerland: Which One Is the Best for You?

Doing Business in India VS Switzerland India VS Switzerland – If you’re asked where you want to start a business, you’d probably choose Switzerland because of its developed economy.

But what if we tell you there’s a catch? The standard of living in Switzerland and the cost of operation for your business are just expensive compared to India, which makes Switzerland difficult for some startups.

If you can get the same success of opening a business in Switzerland when you invest in India without ripping much out of your pocket, would you still consider India?

Let’s examine the two countries from the eyes of an investor, India VS Switzerland, and let’s find out which one is the best.


India Has the Following Economic Profile

1. Country Description

India is the largest country in South Asia. It shares a land border with Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. It is the second-most populous country in the world, having over a billion people. Because of the large population of India, the demand for products and services is also high. Thus, there’s a need for more businesspersons and investors who can provide these.

2. Economic Strategies

The economic strategy that the government of India employed was primarily to make their economy an open market and this has been going on since the 1990s. Some of the measures taken were economic liberalization, industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade.

3. Area of Investment

The strength of India lies in its number of people. Two-thirds of its output is from its service sector and because of this, business related to the utilization of manpower is a good area of investment. Sectors of IT, Business Outsourcing Services, and Software Development are just some of the upsides of India. Other areas of investment include fast-moving consumer goods, housing finance, automobile, infrastructure, and pharmaceutical stocks.

4. 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 labour cost in India is extremely low compared to Switzerland. The minimum wage for an 8-hour work in India is 5280 INR or almost 70 USD while the labour cost in Switzerland ranges from 2,200 to 4,200 CHF, amounting to 2400 USD when converted.
  • Large Market – Since India has an estimated billion people, the products and services of the investors always have a market. Different variations, shapes, sizes, and price range can be offered as the country has different economic classes as well.
  • Buying Power – Employment in India is increasing. With the people making more money and becoming more willing to spend than before, you can build a business in various sectors like tourism and travel, jewellery, cars, house construction, and life and medical insurance.
  • 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.


Switzerland Has the Following Economic Profile

1. Country Description

Switzerland is a country in Central Europe. It shares borders with France, Italy, Austria, Liechtenstein, and Germany.

The country has four major subdivisions namely the Northeast, the Southwest, Southeast, and the Center.
The Northeast is occupied by Swiss-German-Speaking people who are known for their stiffer 8 to 5 working hours adherence.

The Southwest, however, is the portion of the country where people can be described as having laissez-faire lifestyles by the French.

The Southeast is the home-based for Swiss-Italian-Speaking people who love sipping a cappuccino and eating Italian-Style Pizza.

And last but not the least, the Center portion, is where you can find alphorns and mountain landscapes.

2. Economic Strategies

The economic strategy that the government of Switzerland employed was primarily the good administration of the country. Switzerland is known for its economic and political stability, the transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rate. The strength of the economy of Switzerland lies in its trade relationship with its neighbouring countries, which purchase the majority of its exports.

3. Area of Investment

Switzerland is known for its finance and banking services. The country has been performing well for that particular sector. But it’s not only the available area of investments for the country. There are also various demands in the sectors of travel and tourism, medical equipment, security equipment, information technology, telecommunications, and pharmaceuticals.

4. Incentives and Attractions of Switzerland to Foreign Investors

There are several reasons why you should invest in Switzerland. The following are some of them:

  • Strategic Location – Since the country is located in Central Europe, neighbouring countries France, Italy, Austria, Liechtenstein, and Germany can be easily reached by land travel. The country, however, has flights to several continents like Europe, Asia, and North America.
  • Test Market for European Countries – Since the market in Switzerland is highly competitive, it’s becoming a ground for market testing. For example, when Starbucks was just starting, it opened some branches in Switzerland and they monitored how the people will respond to their products and services. After Starbucks could penetrate the Swiss Market with its highly competitive environment, they opened several branches in Europe afterwards.
  • Foreign Investment Protection – The government of Switzerland understands that the economy of the country is highly dependent on its foreign investors. Without them, their economy will fall. The country is keeping its neutral position and implements transparent and liberal foreign investment policy to avoid international disagreements and to protect foreign investors.


The Call to Make a Decision Is Up to You

Who is the winner in the Economic battle of India VS Switzerland? Honestly, it depends on the type and nature of your business. India may be good for startup businesses who don’t have a big amount of capital. But if you think you can penetrate the Swiss Market and you have enough capital, then, we won’t stop you.

But what if you can get the same success of investing in Switzerland when you invest in India without the high cost? The business world is full of surprises. You should know and always assess your capacity.

In the economic battle between India VS Switzerland, are you having difficulty to choose who is the winner for you? We at 3E Accounting would like to help. We’re among those known Company setup specialists on the planet and we will assist you in aspects where you’re having difficult decisions.

Doing Business in India VS Switzerland