Why Bulgaria is attractive for Indian investors
Bamong ulgaria has been chosen
other possible investment destinations from Indian companies in the spheres of BPO, pharmaceuticals, agriculture, retail, hospitality business. The Indian company Sutherland Global Services has opened BPO activities hiring Bulgarian young multilingual professionals and shared that the Bulgarian team does the job of a twice as big teams in other countries where the company has settled. The Indian agri company Namdhari Seeds produces fruits and vegetables and export the production to UK's chains of stores. Elder Pharmaceuticals Mumbai has acquired a Bulgarian pharma producer and now has operations in Bulgaria, which allow the company to step in the whole EU market in a cost effective way. A large Indian company has acquired hotel properties in Bulgaria, as tourism is one of the most developed sectors in the country.
Nowadays, Bulgaria is famous for its political and business stability. Being a member of the European Union, NATO and WTO and having a national currency, supported by a currency board, pegging the Bulgarian lev to the euro at the level of 1.96, Bulgaria is a predictable place to do business. Bulgaria is proud to have one of the lowest government debts in the European Union (18.5 per cent of GDP) and one of the lowest budget deficits (0.8 per cent) as of 2013. The country is famous for providing the lowest costs of doing business due to the most favourable tax regime in Europe, providing corporate income tax rate of 10 per cent, the lowest in the EU together with Cyprus and personal income tax of 10 per cent on flat rate. Industries in high-unemployment areas are granted zero per cent tax rate and there is a two-year VAT exemption for imports of equipment for investment projects over €5 million, creating at least 50 jobs. Bulgaria has one of the most competitive costs of labour in Central and Eastern Europe and favourable office rents and low cost of utilities. Bulgarian cost of electricity for industrial users is 70 per cent of the European average.
Located at the heart of the Balkans, Bulgaria is a strategic logistics hub which eases the transportation of cargo by five panEuropean corridors (IV, VII, VII, XI, X), which pass through the country, the four major airports in the cities of Sofia, Plovdiv, Bourgas and Varna, the two main seaports in Varna and Bourgas and the numerous ports at the Danube River. Due to its location Bulgaria provides direct access to key markets such as the whole EU - a zero tariff market with population of 500 million, the CIS market, Turkey - zero tariff market of near 80 million population, the Middle East – a market with high purchasing power and the North African market.
A specific advantage of Bulgaria is the well educated, highly skilled and multilingual work force. Of the total population, 62.2 per cent is in working age (approximately 4.6
Why Bulgaria is attractive for Indian investors million) and 60000 students annually graduate from 51 universities. Studying foreign languages is quite common, 98 per cent of the high school students study a foreign language (usually English) and 73 per cent study a second language (mainly German, French, Spanish, Russian). Sectors attractive for Indian investors
The key sectors, which will be attractive for Indian companies looking for expansion of their presence in the EU are machine building, automotive sector, pharmaceuticals, agriculture, food processing industries, electric and electronic engineering, IT, BPO. Bulgaria has special economic zones under the governmental company National Company Industrial Zones, where all necessary facilities with regard to infrastructure, access to international transportation network, telecommunications, electricity, water and sewage and many investment incentives are provided for direct start-ups. Additionally, the investors in Bulgaria can benefit from the European Union Structural Funds once they found a company in the country. The registration of a company takes not more than a day or two.
Political and business stability