India Rises: Record-Breaking Business Registrations in 2024 Signal Global Confidence

India saw a record 1.9 million new businesses registered in FY 2023-24, marking a 15% year-on-year increase, according to the Ministry of Corporate Affairs. The message is clear: India isn’t just open for business, it’s accelerating.

As per the Department for Promotion of Industry and Internal Trade (DPIIT), over 123,000 startups have been officially recognised across 800+ districts as of mid-2024. This surge reflects India’s emergence as not just a startup hub, but also a highly decentralised and inclusive innovation ecosystem, welcoming both domestic and international entrepreneurs.

Driven by a combination of bold regulatory reforms, digital infrastructure, and investor-friendly policies, India has emerged as a top destination for foreign startups and SMEs looking to scale in Asia. According to the UNCTAD World Investment Report of 2024, India retained its position among the top 15 global FDI recipients, attracting over $71 billion in FDI inflows last year, despite global economic uncertainty.

However, beyond the headlines lies a more nuanced truth: while the ease of doing business in India has improved significantly, navigating its complex regulatory environment still requires in-depth local insight, especially for those entering the market for the first time.

This blog examines the key considerations startups and foreign SMEs must address to succeed in India today, including the updated India FDI policy, compliance frameworks, and sector-specific trends.

Why This Matters: India’s Market Entry Opportunity is Now

For global companies looking eastward, India presents a rare blend of scale, opportunity, and innovation.

With a $3.7 trillion GDP, a growing middle class of over 400 million, and a digital-first population, the country is fast emerging as a strategic hub for international expansion.

However, while the macro-outlook is promising, establishing a foothold in India still requires a thorough understanding of local compliance frameworks, cultural nuances, and sector-specific regulations. This is where a nuanced approach to “Ease of Doing Business in India” becomes essential for market success.

Key Trends and Insights: What You Need to Know

– Regulatory Streamlining Has Improved, but Is Still Evolving

India has made significant strides in cutting red tape:

1. Company incorporation now takes 1-2 weeks, down from 26 days a decade ago.
2. The MCA21 portal and SPICe+ form have digitalised much of the process.
3. New businesses can now register for PAN, TAN, GST, and ESIC in a single integrated form.

However, regulatory compliance still varies across states. Maharashtra, Karnataka, and Gujarat are leaders in business facilitation, while others may present additional procedural hurdles.

– The India FDI Policy Is Among the World’s Most Liberal – With Caveats

Up to 100% FDI is permitted under the automatic route in sectors such as:

1. Manufacturing
2. E-commerce B2B
3. Renewable Energy
4. Fintech (under specific caps)

However, sectors like defence, telecom, and media still require prior government approval. SMEs must also consider FDI-linked performance conditions and sector-specific equity caps.

Actionable Insight: Always check the latest Consolidated FDI Policy (2024) or consult experts before structuring your investment to ensure compliance with the relevant regulations.

– Taxation Is More Transparent – Yet Complex

1. The GST regime, introduced in 2017, has simplified indirect tax compliance.
2. Corporate tax rates have been reduced to 22% for domestic companies and 15% for new manufacturing firms.

That said, transfer pricing, withholding taxes, and state-level levies remain areas of complexity, especially for SMEs unfamiliar with Indian tax structures.

– Labour Laws are Moving Towards Uniformity

The Labour Codes on Wages, Social Security, Industrial Relations, and Occupational Safety aim to simplify over 40 central laws. While promising, implementation timelines differ across states.

Tip: Foreign companies must establish a local HR compliance framework that incorporates both central and state-level regulations.

– Infrastructure and Digital Push Offer an Edge

India’s infrastructure ambitions are not limited to highways and ports.

1. The DPI (Digital Public Infrastructure) stack – Aadhaar, UPI, DigiLocker, ONDC – is enabling real-time financial and identity services.
2. The Startup India portal and Invest India support are designed to guide foreign entrepreneurs through the maze of documentation and policy queries.

Still, gaps remain in logistics, customs clearance, and on-ground bureaucracy, particularly outside Tier-1 cities.

Walmond’s Perspective: Guiding International Growth Through Local Expertise

At Walmond Consultancy LLP, we understand that India market entry is not just about compliance, but strategic execution as well. Our on-ground knowledge, sectoral expertise, and regulatory insight have helped global startups and SMEs navigate India’s evolving business landscape with confidence.

We work closely with businesses across sectors to:

1. Facilitate company incorporation and regulatory approvals
2. Design optimal FDI structures
3. Ensure end-to-end compliance, licensing, and reporting
4. Offer state-specific market entry strategies

India’s Doors Are Open, But You Need the Right Map

India’s rapid reforms have significantly improved the ease of doing business, especially for those with a clear understanding of the legal, operational, and cultural landscape. For startups and SMEs, the opportunity is enormous, but so are the stakes.

Let’s explore how your business can grow in India, the right way. Contact Walmond Consultancy LLP for a customised India market entry strategy.

Join the conversation below – what’s your biggest question about doing business in India?