Has your business grown to a point where you’re now looking beyond exporting and considering establishing operations overseas?
Has your business grown to a point where you’re now looking beyond exporting and considering establishing operations overseas?
If so, India is emerging as a priority market for international expansion.
Before making the move, understanding what market entry involves is critical to success.
Invest India – the Indian Government’s national investment promotion and facilitation agency – shared what WA businesses need to know about setting up a base in India, with practical insights on regulatory settings, investment pathways and operational considerations.
Where opportunities in India are strongest
According to Invest India, the nation’s key sectors for foreign investment in 2026 include:
- IT and services such as artificial intelligence, cloud computing and global capability centres (offshore units set up by multi-national companies)
- Manufacturing industries including electronics, cars, renewables, pharmaceuticals and telecommunications
“The IT & ITES along with manufacturing sectors continue to attract strong foreign direct investment (FDI) inflows supported by liberalised policies that permit 100% automatic routes and government incentives like Production-Linked Incentive schemes,” Tilak Pati, Vice President of Asia-Pacific (APAC) and Middle East and North Africa (MENA) at Invest India said.
“For WA businesses, the Indian market also offers strong potential in mining equipment and services, agribusiness, food processing, biotechnology, health, renewables and infrastructure.
“These prospects are strengthened by WA's well-established resources capabilities and the long-standing complementary trade relationship between the two countries.”
How India compares to other regional markets
While many WA businesses often weigh India against ASEAN or China, India’s investment appeal is distinct.
India offers a compelling market proposition with its vast 1.4 billion consumers, widespread English proficiency and democratic stability, providing unparalleled scale for services and high-tech exports.
India also offers relatively open foreign investment access, alongside a “burgeoning” domestic demand base.
More from Invest India
- Renewable energy: how international collaboration is accelerating India’s solar and green hydrogen push
- Top seven emerging manufacturing clusters in India
- Inside India’s EV manufacturing ecosystem: key investment trends, government policies, and market outlook
- Six Indian states leading the next wave of IT and ITeS growth
Market entry support from Invest India
Pati said Invest India is a good first contact point for foreign investors, offering advice on investment promotion and facilitation.
“We provide assistance to companies with sector overviews, policy advocacy, subsidy and incentive clarifications, partnerships, location assessments and site visits, and expediting regulatory approvals – all on a pro-bono basis,” he said.
Support is delivered through three specialised teams covering country, sector and state engagement, ensuring end-to-end assistance from initial evaluation through to establishment and scaling.
Navigating regulatory and operational complexity
Regulatory complexity, varying state-level requirements and cultural adaptation are common challenges for foreign businesses entering India.
Before establishing an Indian operation, businesses need to consider:
- Sector-specific foreign investment caps
- GST and tax compliance
- Labour laws that vary by state
- Company incorporation requirements
- Intellectual property protection
Choosing locations and partners
India’s size and diversity mean location decisions are critical. Invest India provides neutral, nationwide advice to help investors identify the most suitable states, cities, special economic zones or industrial parks based on sector needs, infrastructure and logistics.
The Invest India teams connect businesses with vetted partners through their extensive network, ensuring alignment on capabilities, track record and WA-specific synergies such as resources or agribusiness.
This support extends to setting up physical operations such as offices, warehouses and distribution hubs, including access to state-level incentives.
Understanding investment approval routes
India manages foreign investment through two primary pathways. Most sectors, including IT, manufacturing and renewables, fall under the Automatic Route, allowing immediate investment without prior government approval, subject to post-investment reporting.
More sensitive sectors require approval under the Government Route, with proposals lodged through the Foreign Investment Facilitation Portal and assessed by relevant ministries.
Support beyond establishment
Once operations are underway, Invest India continues to provide aftercare support, including fast-track issue resolution, expansion advisory services, policy updates and reinvestment guidance.
Looking ahead, Invest India recommended that WA businesses should watch emerging opportunities in green manufacturing, semiconductors, advanced electronics, industrial automation and ESG-compliant supply chains.
“We see Australian companies as key strategic partners driving India's economic growth toward Viksit Bharat@2047 [vision to be a developed nation by 2047],” Pati said.
Is India your next big business move? For more information about Invest India’s services, email [email protected].
If you are looking for support or advice in business, investment or trade, contact CCIWA’s experienced International Trade Services team at [email protected].
