Reasons for American Companies to Invest in India

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Why U.S Companies Should Invest in India

There are many reasons for companies to be investing in India, such as market size, tax benefits and their high quality multilingual work force. An important reason to invest in India is the youth of this country. As it is known, India has a large population which offers a wide variety of opportunities in different demographic segments. One of the most attractive segments in India is the youth or teenage population. India has the largest population of teenagers around the world, having about 115.3 million of adolescents. This amount even exceeds the number of teenagers in the United States, Brazil, Russia, Mexico and Japan combined. This amazing number of teenagers in India provides an immense market potential for areas, such as, fashion accessories, fast foods, books, education, clothes, music, electronics, sports, entertainment, among others. This is why we can see companies like Levi’s, Adidas, Louis Vuitton, Nike, MTV, Disney, McDonald's, Pizza Hut, Domino’s, Subway, Pepsi, Coca Cola that are already successfully established in India. And, there is still a huge market potential that can be attacked for foreign companies that want to invest in this country. 74% percent of the urban teenagers have cell phones, 81 % of the urban youth use computers, 89% watch television daily, 73% listen to radio, 91% watch movies regularly. Knowing that India’s GDP has grown at almost 9 percent the past years, it is a potential to become the third largest economy by 2012 surpassing Japan. India offers an incomparable business opportunity for foreign companies that desire to open their business in it. Indian youth are highly brand conscious and are willing to pay more for a recognized brand. They are very rational in their purchase decisions, for them the brand name is essential. An example of this is the case of Louis Vuitton where 18 percent of their sales come from teenagers. As we know, economy is always driven by the market...
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