By BRICS JOURNAL
It’s the fastest growing democracy in BRICS countries. More and more global companies are working on expanding within India, which is home to a fifth of the global population. But it’s a high-patience game that requires you to follow a golden global rule: respect for a local way of doing business.
India offers a very large and long-term market with more than 50% of its population below the age of 25 and more than 65% below the age of 35
3 reasons India’s the most attractive market right now
- Of all listed companies in India, 67% are family businesses and the majority of them are still run in a traditional setup. Most of these are in the manufacturing of general products and trading commodities.
- With the economic policies getting more liberal and foreign direct investment (FDI) being permitted in the majority of the sectors, many traditional businesses are facing tough competition due to limited finances and an ecosystem less conducive for research and development (R&D).
- The cost of capital in India is high and profit margins are shrinking, so it’s essential that businesses create real value propositions for their sustenance and profitability. While India is a large, execution-based market, those with strong ideas and a willingness to collaborate will flourish. This opens up new opportunities for companies from around the globe to enter the market.
If you’re looking at expanding in the Indian market, it is important to dwell deeper into these points:
Choose the right business partners
You need to bank upon the wisdom of a local expert to help you drive your business with the resources they already possess. Finding a partner whose vision is aligned with yours is important. Before entering into any agreement, invest in proper due diligence – it can save you time and money.
Have faith in your Indian partner. Indians are usually trustworthy and born accustomed to the challenges of doing business. They do not too much interference when it comes to decision making, but at the same time are receptive to suggestions and changes, if it is for the benefit of the business.
Raise strategic investments
This model is very helpful for startups or mid-size companies which have unique technologies, but don’t have access to the capital necessary for expansion. Finding local partners, who have access to customers, to invest in the business is ideal. Many large Indian corporations like Reliance Industries, Adani Group and Infosys are actively scouting to invest in companies strategically aligned to their businesses.
Indian software giant Infosys recently made investments in Israeli startup CloudEndure – a cloud-based migration and disaster recovery service – and Silicon Valley-based data analytics startup Trifacta, with a view to increasing their value offering to their existing customers.