An island connected by bridges to the mainland, Mumbai is the industrial hub of everything from textiles to petrochemicals, and responsible for half of India’s foreign trade. Today it’s a teeming metropolis, commercial hub of an old civilization seeking to find its place in the New World Order.

Nearly thirteen million people live here – wealthy industrialists, flashy film stars, internationally acclaimed artists, workers, teachers and clerks – all existing cheek by jowl in soaring skyscrapers and sprawling slums. They come from diverse ethnic backgrounds and speak over a dozen tongues adding colour, flavour and texture to the Great Mumbai Melting Pot.

  • Area: 440 sq km (170 sq mi)
  • Population: 18 million
  • State: Maharashtra
  • Language: Hindi, Marathi & English
  • Time Zone: GMT/UTC plus 5.5 hours (Current local time in Mumbai)

Weather in Mumbai

The climate in Mumbai throughout the year is temperate being hot and humid in summer to being pleasant in winter. Its never too hot nor too cold. It rains quite heavily during the monsoon months of June, July and August. The climate is cooler at IIT than its surroundings – the reason is that it is located between two lakes and also surrounded by greenery.

Winter in Mumbai

During December and January the climate in Mumbai is pleasant. The air temperature will be around 25 degree C (75% relative humidity) in the daytime and around 15 degree C at night.

Summer in Mumbai

During May and June the climate is becomes hot and humid in the afternoons. The air temperature will be around 35 degree C (90% relative humidity) in the daytime and around 25 degree C at night.

Monsoon in Mumbai

The monsoon rains hit Mumbai in the month of June. The rains are quite heavy and last till the end of August. The climate becomes pleasant. The air temperature will be around 30 degree C (80% relative humidity) in the daytime and around 20 degree C at night.

Time Difference

Indian government policies

  • IT is regarded as one of the top 5 priority industries in India. IT is a part of the national agenda, and policies are framed so as to obtain maximum benefit out of IT outsourcing to India.
  • The liberalization and deregulation initiatives taken by the government are aimed at supporting growth & integration with the global economy. These reforms have enabled the entry of foreign companies to the Indian market. FDI investment from NRI’s including Overseas Corporate Bodies (OCB’s); owned by the NRI’s are warmly welcomed in India.
  • The new National Telecom Policy has invited private participants to the Indian telecom sector.
  • The IT bill passed in 2000, gives a legal framework for the recognition of electronic contracts, prevention of computer crime and electronic filing of documents. NASSCOM along with the government is playing a notable role in protecting the interests of the IT sector. Thus with all these help, IT outsourcing to India has reached a point of no turning back.

Tax system in India

The well structured tax system in India, with the authority to levy taxes is divided between the Central & State Governments. Direct taxes, like personal income tax, corporate tax and indirect taxes like customs duty are collected by the Central Government while State Government levies local and state sales tax. Tax revenue as a percent of GDP has been constantly on the rise.


A domestic company having entire management and control in India is bound to pay 35.7% tax to the Central Government. The nonresident Corporation has to pay 48% of the income derived in India from Indian operation; income that is accounted to arise in India and income that is received in India. Minimum Alienate Tax (MAT) is at the rate of 7.65% of book profit of the companies.

Tax Incentives

The tax incentives offered to the investors by the Government of India are a boon for firms involved in IT outsourcing to India. The incentives that facilitate economic growth and development are:

1. Infrastructure:

A 10 years tax holiday to ventures engaged in developing and / or maintaining and operating an infrastructure facility.

2. Power:

10 years tax holiday to undertakings, which generate and / or distribute power.

3. Telecom:

5 years tax holiday for companies providing telecom services including Internet services and broadband services. Also 30 % deduction from profits for the next 5 years in any 10 continuous years out of first 10 years is also offered.

4. Industrial Parks and Special Economic Zones

10 years tax holiday is applicable to ventures that develop and /or operate or maintain in notified IT parks and special economic zones.

5. Other Industries:

5-year tax holiday is available for new industrial units to be set up in backward states and districts.

6. Incentives for Exports:

Tax is deducted on exporter’s profits for unit set up on EPZ’s, STP’s, EHTP’s, FTZ and SEZ’s.

7. Other Incentives:

Tax concessions are allowed for FTI and a weighted deduction of 150% for scientific research and development expenditure have been offered. 10 years tax holiday is available for R&D companies engaged in scientific and industrial research.