What is keeping Inda from starting service industry companies like banking and auto insurance companies?

Question

I used to work for an insurance company that has out-sourced some of their IT, claims and processing work. What is keeping India from just starting their own companies in these fields, selling these products to Americans at a fraction of what American companies charge and running American companies out of business.

Answer 1

India already has its own banks - http://finance.indiamart.com/investment_in_india/banks_in_india.html

There are several barriers to prevent Indian companies competing in the US. I'm no expert in this field but would guess that each State has their own regulations as to who can do business, minimum capital requirements etc. Also, they may not necssarily be able to undercut American companies as their names would not be well known.

Answer 2

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