It is election time in India and many companies abroad have wondered what the scenario is going to be, especially when it comes to Indian economy. Before we speculate on future matters, let us understand where the country is right now. Indian currency devalued and experienced a lot of panic last year, when it fell against the dollar drastically. The rupee has stabilized so far but its performance has obviously not been stellar. The country has also been witnessing a lot of melodrama, which sort of diverts the attention from real economic problems to something that isn’t quite necessary.
India looks bullish and it might be a good year to invest
With all that in mind, India still looks bullish and the coming months are going to be exciting for those who plan to invest here. No matter which party makes it to the power seat, certain economic policies will remain the same and one does not have to expect drastic changes in spite of the noise. All major political parties of India know that IT is one of the biggest revenue earners for the country and nothing need to be done that will scare away investors. With that in mind, we list a number of reasons why India is actually a better place to outsource work to now than ever before:
The rupee is weak
India was in news last year when the rupee fell so hard that most analysts feared a point of no return. The currency has stabilized but still remains weak against the dollar. At around 60 rupees for a dollar, the rupee is cheaper than it ever used to be. This is good news for companies who want to outsource work to India. Much can be bought and outsourced for the same dollar than a year or two ago. Rupee devaluation is, obviously, not a permanent factor that you need to be looking at but in the short term, you will be able to get some work done for a lower cost; and that is never a bad thing.
More graduates are unemployed
Indian engineering graduates have increased by several folds. In India, most people finish a technical degree before they even think about their careers. While that is not the best way to look at one’s career, it leaves a lot of people desperately looking for jobs that they are well-trained for; and there is an opportunity for overseas employers who are looking for less expensive IT graduates. Freshers and even experienced IT workers are ready to work for a lower salary than much of the world elsewhere. Moreover, Indian companies are not able to hire all the IT graduates and there is always a ready pool that is willing to work.
Infrastructure is being built in major cities
As it is the time for elections, most cities are beginning to see a lot of infrastructural projects being taken up. In order to woo the voters, political parties have started grand infrastructure projects so that investment can be attracted. While this is nothing but political cronyism, it works well for the business community. No matter who is in power or who comes to power after the elections, the infrastructural projects will be continued and completed; and that will help not only Indian companies but also companies that plan to outsource work to India. Better infrastructure will be available in smaller towns too, outside New Delhi, Mumbai, Kolkata and Bangalore.
Economy is getting stable
While the Indian economy was in a freefall, it has stabilized now and is beginning to improve. Though the rupee might not become as strong as it was against the dollar, economic prosperity will occur, thanks to the number of infrastructural projects that have been taken up. Indian economy is also likely to see an upward growth in the coming months, thanks to an increased focus on fiscal issues.
Certainly, things are not perfect in India. When it comes to Indian economy, things are far from being perfect. Nevertheless, there is room for optimism and when it comes to outsourcing, it, actually, might be the best time to send work to India. A cheaper rupee and a number of IT graduates will ensure that overseas companies have all the opportunities to increase productive and save costs.