Succeeding as an independent consultant in India

The World Bank Group remains one of India’s biggest donors, with $26.7 billion in commitments, while the International Finance Corporation’s portfolio numbers $5.6 billion. And with hundreds of other donors and organizations funding and implementing projects throughout the country, several cities have emerged as hubs for development professionals. “[The] development sector in India is growing and has diversified quite a bit and there are a lot of opportunities,” said Tushita Mukherjee, who consults remotely from South Africa, having previously worked with several United Nations agencies and GiZ in her native India. Interested in development consulting in India? Devex finds out which cities offer the best opportunities to connect with potential clients and which sectors are in need of consulting expertise. Main job hubs India’s capital, New Delhi, is home to government agencies and many of the sector’s biggest donors, such as World Bank, GiZ, and the U.N., Mukherjee said. As a result, it’s a hub for development work and meeting prospective clients. In-person meetings are still very important to employers in India, she added, and even when hiring for consultancy or remote roles, employers tend to favor those living closer by. The U.S. Agency for International Development and the U.K. Department for International Development have a base in New Delhi, as well as several international NGOs, such as Oxfam, World Vision, Médecins Sans Frontières, and Save the Children. Where you decide to set up business does depend on which specific areas of development you want to focus on, Mukherjee continued. New Delhi is great if you are looking to work across a handful of different thematic areas of global development, she explained, but Mumbai can be a better fit if you are looking to work in impact investment or social entrepreneurship, as it’s the financial capital. Social Finance India, the Entrepreneurship Development Institute of India and the Aga Khan Development Network are just some of the development-focused organizations with offices in Mumbai. Swarandeep Singh Kambo, who works with UNLEASH, an innovation lab building global networks around the SDGs, added that Bangalore is another prominent hub for development players as a global center for information and communications technology. Opportunities in CSR and impact investing There are a growing number of conversations around impact investing and aligning this work with the Sustainable Development Goals, Kambo said, who worked in the investment sector for many years before becoming involved with nonprofits and mission-driven organizations. This isn’t something new but there is a “renewed focus” by the government on how impact investment can help transform India. Mukherjee agreed that the role of impact investment and social entrepreneurship is growing in the nonprofit sector in India: “The government of India is putting a lot of focus on these two [areas], mainly because these are creating jobs in India.” Corporate social responsibility is another area of growth, Mukherjee continued, who worked with a foundation on implementing its CSR policy when the Companies Act came into effect in 2013. This act means that companies in India that meet a certain threshold are required to spend at least 2% of their average net profit for the preceding three financial years on corporate social responsibility activities. As a result, there are now a lot of consultancy groups supporting companies, which do not have the in-house expertise, on their CRS strategy and implementation,” she explained. The government is also focusing on water, sanitation, and hygiene, and child and maternal health. And, given the frequency of natural disasters, humanitarian response is another priority, Mukherjee said. Setting up and finding work Freelancers must pay income tax as well as service tax. Those who earn more than 10,000 rupees ($139) annually must pay an additional service tax rate of 12.36%. For Indian-nationals consulting on a project by project basis, it’s simple in terms of paying taxes, Mukherjee said. However, from her own experience working on projects supporting social entrepreneurs, it can be more complicated to register as a firm. Mukherjee recommended working with a lawyer to navigate the process and figure out what works best for you. Kambo suggested it can be beneficial to register as an entity if you are planning to consultant long-term and have several clients. For non-Indian nationals, there isn’t a specific visa for freelance work. Generally, you have to first secure a job with an Indian company to obtain an employment visa and costs vary depending on your nationality. It is also possible to get an employment visa, without being a full-time employee of a company, if you are going to be involved in ongoing consultancy or contract work and have a fixed rate. In India, like many other places, networking remains an important part of a consultant’s job search strategy. Many of Mukherjee’s first projects came through referrals and Kambo also landed his current role after completing a training program with his organization and building relationships from there. Having initially struggled to connect with like-minded professionals freelancing in the social sector, Kambo, along with a handful of other professionals from different states in India, set up an online community for consultants to share city-wide rosters. Groups such as these can be a useful resource for consultants looking for their next consulting project.