Business in India
In spite of the dual speed economy and poverty levels in India (see our Indian Economy page or Modern India page) India is booming. There are rafts of young educated Indians who earn enough to get housing loans for one of the multitude of apartment complexes being built, more and more families own cars and the increase in air travel as boosted both domestic and foreign tourism in India (see our Tourism in India page)
Every Year the government does more to encourage foreign investment making doing business in India a more attractive proposition. Over the last decade manufacturers and retailers alike have invested in new machinery and systems. There are more and more business opportunities in India. Certain areas of finance, retail and agriculture are the last areas with tighter than usual restrictions.
Outsourcing (Helpdesk, call centres, back office processes, translations, HR) is an obvious sector of opportunity if you area buyer. Low cost suppliers can also be found for textiles, leather and finished parts in metal & plastic.
India has, however, matured and there are now acquisitive Indian multi-nationals looking to penetrate new markets. Mittal Steel is the highest profile but Tata, Reliance and Infosys are all on the move. Other large companies are making money through pharmaceuticals and biotechnology in partnership with Western and East Asian companies.
Further down the business scale, many manufactureres are looking for partnerships and agreements and software houses are looking for development opportunities. Some manufacturers are, admittedly, just looking for technology transfer to keep up with the market. Software houses will help in development, testing or enhancements. Others offer coding for control systems, billing, encryption etc. SME's van view current business opportuities in India and China by clicking on the link to the left.
If you want to sell your product or service; distributors can be found at local, state and national levels.
There are some issues that should be considered when entering the market:
Intellectual Property - Anyone entering the market should tie-upo their IPR tightly. The Indian government is more helpful than it was but the slow legal system can be difficult. There are good lawyers in India and the similarities with English law make transfer of most clauses acceptable.
Responsiveness - Some smaller companies still do not understand the speed and accuracy of response required in other parts of the world. Yes does not always men yes, as face saving in India rivals China and other parts of Asia. Face to face contact is worth the effort.
Banking & Incorporation - HSBC and Standard Chartered offer accounts in India but the Indian Overseas Bank requires a much more reasonable average balance. If setting up a business in India, find a reputable law firm or agent who can ensure you get registered properly and find you a reliable accountant. Been caught out by the accountant myself!