How to do business in India
India has a rapidly developing economy and therefore offers
substantial opportunities for your business to expand its
activities and profitability. This guide will outline how to do
business in India and look at:
- Why you should look at India
- Risks
- Getting started
Why you should look at India
Trade between Europe and India has greatly increased in the last
few years. It is a growing economy and with a population of over 1
billion people is one of huge potential for your business. There
are opportunities in a wide range of sectors including construction
services because of the demand for infrastructure,
telecommunications equipment, IT, health equipment, pharmaceuticals
and call centres. The number of middle-market consumers is also
increasing and labour is cheap. Indian businesses are organised in
a similar way to those in the UK and English is the main business
language used. The Government is keen for more trade liberalisation
and economic reforms and the economy is predicted to become the
third largest one in the world by 2030.
- India can help you improve your global competitiveness and sell
more products
- Demand for infrastructure, telecommunications equipment, IT,
health equipment, pharmaceuticals and call centres
- Labour is cheap, middle market growing , English main business
language
Risks
India is ethnically diverse with different languages and
religions so you need to ensure your strategy can deal with this
variety. You have to ask yourself whether your product will work in
India. Can it stand the heat and humidity for example. Winning
business in India is a long process and you have to invest time in
building up long-term relationships. It is still a very
bureaucratic country. Exports to India are subject to duties and if
you have an Indian office the tax position is a complex one.
Skilled manpower is growing but there is a severe skills shortage
and competition for labour is fierce. Your transport needs to be
multi-modal using airfreight or shipping to an Indian port and then
using road transport.
- It is essential to get your transport and logistics right
- Is your product right for the social mix of India and its
environment?
Getting started
You have to assess which region will need your product/service
most. It is important that you make the right connections, meet the
right people and develop long-term relationships with Indian
business. It's a good idea to start networking at Indian
trade fairs or after organising a trade visit. Talk to UK Trade
& Investment who can offer a range of support and will put
you in touch with your local trade advisor. Visit their section on
trading in India
for a wealth of practical information. Think of using a local
agent, joint ventures or setting up your own office. Take legal
advice on this and the regulations that may apply to your
product/service.
- Indian Trade Fairs are a good place to network and meet
contacts
- Consider joint ventures or setting up your own
office
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