Introduction

This paper discusses the opportunities for the establishment of health equipments in India. The purpose to move the industry to India is to reduce the manufacturing cost. India dot independence from British rule in 1947 and is democratic country. The country has large potential itself for the consumption of health equipments. The objective is to make a set up in India is to become more competitive by reducing the cost. In early nineties India under the leadership of Prime minister Narismah Rao and the current prime minister Manmohan Singh who was Finance mister of Narismah Rao government started economic liberalization in India. There was reduction in taxes an sound fiscal policies were introduced. Emphasis was given to improve the technical skills of the people and more focus was given on manufacturing sector. So many foreign companies have made huge investments up till now.

Till 2009, about 300 million people have come out of extreme poverty Nick Gillespie (2009). The results of liberalization reached at their peak in 2007, when highest GDP growth rate of 9% was recorded in India (www.cia.gov). With this growth, India turned out to be the second fastest growing major economy in the world, next to China. A report from Organization for Economic Co-operation and Development (OECD) states that the average growth rate of 7.5% will double the average income in a decade, and further reforms would speed up the tempo (www.oecd.org).

In fact, India is well-known now for its low cost manufacturing because it has a large number of cheap labor, stable political environment, favorable investment policy, stable social environment and better technical knowhow etc. All such factors make India one of the most welcomed investment country in the world. As a health equipment manufacturer, it is a big opportunity to become cost-effective by moving business to India and involving in market competition since this country has huge market potential.

Political System of India

India is a Secular, Sovereign, and Democratic Republic and it has a Parliamentary form of Government. Its constitution was prepared by the Constituent Assembly on 26th November 1949 after getting independence from British Rule in August 1947. The constitution came into force on 26th November 1950. The main components’ of Constitution advocates the equality of all citizens, trinity of justice, and liberty. The Constitution was structured keeping in mind the socioeconomic development of the country. The government setup in India is federal in structure and it follows the parliamentary form of democracy..