Why everyone in business loves India right now.

When Tim Cook arrived in India earlier this month to open Apple's first physical store in the country, he was welcomed like a hero.

The CEO was greeted with cheers and applause, presented with a vintage Macintosh and held court with the country's officials, including Prime Minister Narendra Modi.

Cook's visit, the latest by a top global executive, exemplifies the rising tide of interest that corporations and governments are showing in doing business with India. Just days after his landmark trip, Pret A Manger, a trendy British sandwich chain, set up its first outlet in the commercial capital of Mumbai, as it bet on the...