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Why Companies Are Moving from Singapore to India | Business Shift Explained
Why Companies are Shifting from Singapore to India?

21 Mar, 2025

By Vidhu

2563 Likes

Why Companies are Shifting from Singapore to India?

Which place comes to your mind when you think about setting up a business? For a very long time, the answer to this question was Singapore but, in the recent times, the dynamics have been shifted in India’s favor. In this article we will discuss the  reasons for this shift. 

Singapore is considered as a strategic location from the business’ point of view due to its excellent connectivity and world class infrastructure with efficient transshipment facility. It gives a business the access to the whole Asia-Pacific region. Companies that are  headquartered in Singapore often have supply chain that spans throughout the Asia-Pacific region, including China.

So, what makes Companies to either shift or expand to a different country, like India?  

Companies always tend to reduce the risk by diversification. Heavy reliance on a single country can be very risky for a business and in this case, it was China. Even though companies are headquartered in Singapore, China is the key component to provide resources like labor, raw material, etc. Aggressive stance of China and rising uncertainties especially the coronavirus outbreak acted as a catalyst and businesses increased their efforts to implement the “China plus one” strategy.

But where should they move or expand? A business needs an efficient and consistent environment to operate efficiently. India sensed this opportunity and devised business friendly policies. Apart from this, India’s demographic advantage and abundance of natural resources never fail to attract foreign investors. 

Now, let us understand the key factors that make India a viable country to setup a business.  

Political Environment 

A stable political environment is one of the deciding factors that decides the growth of a business. Consistent policies and a predictable political future of a country are vital signs for businesses. India is proving itself as a politically stable and business friendly country by adopting consistent policies, initiatives like “Make in India” and many Production Linked Incentive (PLI) schemes with reduces bureaucracies. India is constantly pushing forward to ease the regulations even more to make it easier for Companies to operate in India.

Logistics and Resources

India has been a resource abundant country even before the dawn of its civilization and efficient movement of these resources is the aim of India. India is investing heavily to improve the logistics for better domestic network and easy access of international trade routes. Initiatives like National Logistics Policy and Multi-Modal Logistics Park have transformed the domestic network and facilitated the global trade in India. Besides from  domestic logistics network and ports, strategic foreign investments have enabled India to get control over some key locations to get access of international trade routes. 

Demographic Advantage 

India is the most populated country and its massive consumer segment is a lucrative market in itself. India’s diversity makes it perfect market for every kind of business, from masses to luxury. This sheer market size with rising consumerism is India’s biggest leverage to attract foreign companies. 

Digital Economy

"Rise of digital India” sounds good, right? It sounds even better when this works in India’s favor to attract companies in India. Digital India movement has encouraged new markets to emerge and flourish in India. It has reduced the dependency on physical aspects of business and restrictions of time. 

Skilled Labor

India is known for its skilled and cost-effective employees, especially in IT and Engineering field. Having access to a pool of talent to choose from can be a great leverage for a business because it gives business an upper hand in the competition. Generating employment in India may also attract government subsidies in the long run and gain trust of the market. India is rising as a country with increased reputation and importance on global landscape. India is putting active efforts to turn its potential into reality of being a business heaven. Companies can have the manage their entire supply chain from India and also operate internationally.


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