Exports are the major focus of India's trade policy. The export promotion package compares favourably with incentives offered elsewhere in the world. It makes a special effort to attract foreign investors to set up export oriented units in India. To companies that are global in outlook, India presents itself as a production base for targeting markets from the Middle East to the Asia Pacific region and for sourcing components and products manufactured at low costs.
India offers immense opportunities to foreign investors in terms of its strategic location between the Middle East and South East Asia. Pakistan, China, Nepal, Sri Lanka and Bangladesh are India's immediate neighbours. It is also located close to Russia and the southern central Asian countries. Added to this is the country's labour advantage. India has vast reserves of technical and scientific manpower, backed by engineering and management institutes of excellence.
India's technocratic elite grace the boardrooms and laboratories of the world's premier corporations. Both skilled and unskilled labour is easy to find and wage rates are highly competitive compared to international levels.
A major advantage of locating in India is that the professional work force speaks English. In fact, English is the predominant business language in India.
The government also provides a number of incentives and facilities for exporters.
India's rich resource and production base provides significant opportunities for investors to establish export units.
The size of India's foreign trade has expanded enormously in the last two decades, both in absolute terms and relative to GDP. In the last two years, export growth has been very high by world standards, which has helped engender a comfortable balance of payments situation.