India VS United Kingdom: Which Country is Better for Investors to Start a Business?

Doing Business in India VS United Kingdom India and the UK are among the highly competitive economies in the world. Independently, each offers significant economic opportunities. Tap on to these opportunities, as highlighted by their solid economic flows, and these two countries are unmatched.

Business partnership possibilities are rising as the UK leaves the European Union, while India seeks to maximize its potential. And it isn’t just about long term prospects, for businesses of both countries. They both evolved for years and continue to grow today. Those who seek to do business in these countries look for emerging markets and new competitors to take their first stages.

If you’re on the same track, read on the points below to learn which country, India VS UK, is better at doing business.


Strength Within States

In setting up a business, business owners should look at the core foundations of the country. One way to do that is by gauging the country’s strength by states. The Indian states are distinct in characteristics, population, culture, and business environments. Uttar Pradesh in Northern India has a total land area equal to that of the United Kingdom. Aside from that, Karnataka’s economy in South India is parallel to that of Portugal. This metric highlights the potential of ‘locations’ in India.

By contrast, in the UK, businesses are reasonably uniform throughout the nation. Others are clustered in a variety of locations, whereas production concentrates in just one area. Also, companies on the coast are more likely to go out of business than businesses further inland. In certain areas of the country, single companies have local dominance, and the local effects of losing or acquiring a major corporation may be important.


Government Efforts to Attract Investors

Logically, after analyzing the country’s strength in states, the next thing to look at is the government policies conducive for business. Through ‘competitive federalism,’ Indian states exerted efforts to become more desirable for investors. They focus on reducing red tape, collaborating with international investors, and setting new markets. Consequently, the outcome is obvious: investments rise to about $1,271.40 billion between April 2000 and June 2018, providing 422,524 employment opportunities.

While in the United Kingdom, the government is trying to draw investment. However, there is little proof of what works.


Increasing FDI

The third factor to consider is the trend of the country’s Foreign Direct Investment ( FDI). FDI is at its highest in India for over 5-10 years. This is because the Indian Government developed progressive and international policies. For both foreign investors and Indian entrepreneurs, such policies have been motivating. Economic modernization policies include market reform, the acquisition of state-owned businesses, and the reduction of foreign international trade restrictions.

In the United Kingdom, the government has reduced public ownership for over two decades and restricted social welfare benefits. As a result, there’s a drastic fall in the trend of the country’s FDI.


The Economy

Next is the country’s economy. After all, it’s the primary indicator of a county’s suitability for the business. With that said, it’s good to note that the diverse Indian economy has a broad variety of industrial sectors and services. These include traditional community agriculture, modern food production, arts, and crafts. Also, more than half of the working population is in agricultural production. But services are the primary source of economic development, accounting for almost two-thirds of India’s production. India takes pride in its wide skilled English-speaking workforce and thus becomes the leading provider of information systems, business consultancy, and software jobs.

Contrarily, the British economy experienced the longest run of development since recovering from a recession in 1992. In 2008, however, given its significance, the global economic crisis affected the country hard. The crises rapidly dropped property prices, increased debts, and worsened the economic problems of Britain. As a result, the country has a downturn, forcing the government to impose a series of policies to mitigate these detrimental results.


Business Environment

Finally, business people should look at a country’s business environment in their quest for a better business location. The medium-term business growth prospects for India are favourable. This claim is valid because of the younger population, the lower levels of poverty rate, stable capital investment rates, and growing access to global markets.

On the flip side, in 2012, the United Kingdom’s economy was dragged down by poor consumer spending and low business investment. GDP dropped massively. At 7.7 % of GDP, the budget deficit remained high, which continued to raise public debt.


What to Do Next?

At 3E Accounting, we are extending our wide range of knowledge about the United Kingdom and India. We do so to help our clients find and pursue the best business opportunities. Whether you have been doing business for years or are just setting up, we’re happy to support it. Our services are five-star reviewed and reliable. Contact us for more information.

Doing Business in India VS United Kingdom