Market
Trend:
India, among the European investors, is believed to be
good for investment despite bureaucratic hassles, shortages of power and
infrastructural deficiencies. India presents a vast potential for overseas
investment and is actively encouraging the entrance of foreign players into the
market. No companies, of any size, aspiring to be a global player can, for long
ignore this country which is expected to become one of the top three emerging
economies.
Success
in India:
Success in India will depend on the correct estimation of
the country's potential. Underestimation of its complexity or overestimation of
its possibilities can lead to failure. While calculating, due consideration
should be given to the factor of the inherent difficulties and uncertainties of
functioning in the Indian system. Entering India's market place requires a
well-designed plan backed by serious thought and careful research. For those
who take the time and look to India as an opportunity for long-term growth, not
short-term profit- the trip, will be well worth the effort.
Market
potential:
India is the fifth largest economy in the world and has
the third largest GDP in the entire continent of Asia. It is also the second
largest among emerging nations. India is also one of the few markets in the
world which offers high prospects for growth and earning potential in
practically all areas of business. Yet, despite the practically unlimited
possibilities in India for overseas businesses, the world's most populous
democracy has, until fairly recently, failed to get the kind of enthusiastic
attention generated by other emerging economies such as China.
Lack
of enthusiasm among investors:
The reason being, after independence from Britain 50
years ago, India developed a highly protected, semi- socialist economy.
Structural and bureaucratic impediments were vigorously fostered, along with a
distrust of foreign business. Even as today the climate in India has seen a sea
change, smashing barriers and actively seeking foreign investment, many
companies still see it as a difficult market. India is rightfully quoted to be
an incomparable country and is both frustrating and challenging at the same
time. Foreign investors should be prepared to take India as it is with all of
its difficulties, contradictions and challenges.
Developing a basic understanding or potential of the
Indian market, envisaging and developing a Market Entry Strategy and
implementing these strategies when actually entering the market are three basic
steps to make a successful entry into India. The Indian middle class is large
and growing; wages are low; any workers are well educated and speak English;
investors are optimistic and local stocks are up; the country presses on with
economic reforms. But there is still cause for worries.
Infrastructural
hassles:
The rapid economic growth of the last few years has put
heavy stress on India's infrastructural facilities. Problems include power
demand shortfall, port traffic capacity mismatch, poor road conditions. Only
half of the country's roads are surfaced. The projections of further expansion
in key areas could snap the already strained lines of transportation unless
massive programs of expansion and modernization are put in place.
Indian
Bureaucracy:
Although the Indian government is well aware of the need
for reform and is pushing ahead in this area, business still has to deal with
an inefficient and sometimes still slow-moving bureaucracy.
Diverse
Market:
The Indian market is widely diverse. The country has 17
official languages, 6 major religions, and ethnic diversity as wide as all of
Europe. Thus, tastes and preferences differ greatly among sections of
consumers. Therefore, it is advisable to develop a good understanding of the
Indian market and overall economy before taking the plunge. Research firms in
India can provide the information to determine how, when and where to enter the
market. The general economic direction in India is toward liberalization and
globalization. But the process is slow. Before jumping into the market, it is
necessary to discover whether government policies exist relating to the
particular area of business and if there are political concerns which should be
taken into account. There are also companies which can guide the foreign firm
through the entry process from beginning to end performing the requisite
research, assisting with configuration of the project, helping to develop
Indian partners and financing, finding the land or ready premises, and pushing
through the paperwork required.
More,
No comments:
Post a Comment
Your Comment on this box