and Corporates in India
The industrial setting in India has been going through a phenomenal
phase due to its sudden recognition as the global business hub
for MNCs and corporates alike. Most of the premier globally
networked industrial enterprises and corporate identities are
fastly locating their base in new age India for better growth
The corporate friendly industrial policy has attracted a large
number of multi-national corporations (MNCs) in the last few
years to India. These multinationals have come here to set up
industries either themselves or through franchise as the upgraded
industrial policy of India offers competitive advantages
to foreign investors.
India offers certain unique opportunities for investment
which makes it a favorable investment environment. Most of
the reputed global companies prefer operating in India rather
than in China because of Indians' expertise in the English
language and lower wage costs. India has an enviable pool
of high quality, talented professionals and the largest population
of English speakers outside the US. These vital factors have
attracted a large pool of foreign manufacturers to India,
the world's most preferred manufacturing hub.
With the removal of restriction on entry, diversification
and expansion of multinational corporations in the past decade,
India has become a gateway for progressive investors. Foreign
direct investment in India up to 100 per cent equity in a
business venture is being allowed on a wide-range of products.
In this extremely liberal investment atmosphere, the benefits
and corporates are very high.
India, the software super power, houses a large number of
IT Parks, Business Centers and SEZs to offer an unparallel
global corporate atmosphere to its investors in prominent
cities such as Bangalore, Gurgaon, Noida, Hyderabad, Chennai,
Chandigarh, Kolkata, Mumbai and Pune. These world class facilities
make India the foremost choice for MNCs and Corporates.
Office-lease Trends in Tier II cities
As foreign investments in the IT and BPO sector keep flowing
to India, there is a fair demand for office spaces which a
chic international ambience. In Tier I cities like Delhi and
Bangalore where developers have been catering to the demands
for swanky office spaces the Tier II cities are no less comparable
in design and quality.
And with FDI being relaxed in the construction sector, there
is a healthy competition amongst developers for on quality
and has brought inevitable acceleration
OK in construction activities. The concept of hard option
where the first right to lease office space at a future time
is given to an existing tenant is a major attraction for investors
in The Tier I and II cities.
The cost advantages in the realty sector presently lies with
the Tier II cities where the realty prices are less in comparison
to the metros due to easy availability of land and the government’s
promotion of SEZs as more investors enter the market, the
lease trends show an increase by 25% - 30% in Tier I &
II cities over the next 3 years.