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Business Environment – Essential parameter to consider while selecting an ER&D centre location
Business Environment – Essential parameter to consider while selecting an ER&D centre location

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A favourable business environment is another essential parameter for companies who are considering setting up an ER&D centre in a particular location. Business-friendly regulations, ease of doing business, fair legal processes, overall business landscape etc., all aid in making a location attractive for the companies to choose a particular location.

To evaluate the overall strength of the business environment of a location, in the NASSCOM-KPMG Engineering R&D Global Location Analysis study, 4 key sub-parameters were taken into account. These include –

  • Macroeconomic risk – including unemployment risks, interest rate fluctuations, exchange rate fluctuations, commodity price changes, inflation, GDP growth rate fluctuations, government’s fiscal and monetary policy changes etc.
  • Climate risk including climate risks, extreme weather conditions and events, droughts, tsunamis, sea level changes, etc.
  • Ease of doing business includes conducive environment to set up businesses and operate them, stable regulatory environment, free and fair competition, investor friendly trade and other policies etc.
  • Political stability risk includes risks associated with political stability, geopolitical tensions, economic and social reforms etc.

 

Location 7

 

India features among the leading nations in APAC offering a facilitative business environment by virtue of a strong macroeconomic footprint and continuously improving political stability.

A conducive business environment promotes fair trade, healthy competition, development of markets, enhances the effectiveness and sustainability of other development interventions, promotes economic growth, and leads to efficient functioning of market economy, among others. It is therefore vital that ER&D enterprises also take into account this aspect as well before making a decision regarding the choice of a location for their ER&D centre.

 

Read more about this in the report “Engineering Research and Development – Global Location Analysis” from the links below –

NASSCOM Website – https://nasscom.in/knowledge-center/publications/engineering-research-and-development-global-location-analysis

NASSCOM Community - https://community.nasscom.in/communities/engineering-research-design/engineering-research-and-development-global-location


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Vandhna Babu
Principal Analyst - Research

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