19 Dec Expanding into India
Ever wanted to grow your company in India? Diwali may now be behind us for another year, but it’s always a great time to share some insights on India and how we have worked to support international companies entering this fantastic growing country.
What are the financial advantages of expanding into India?
In addition to the economy currently experiencing an unprecedented surge in growth, India also has a growing market for a wide variety of smaller companies with more specialized niche technologies. India is anticipated to experience the fastest economic growth of all major economies in 2022, after growing by an additional amount of USD 81.7 billion in 2020-21. The amount of inward foreign investment in the country has substantially slowed down during the COVID-19 pandemic.
In light of several initiatives taken by the Indian government to attract foreign investment and make doing business in the country easier, India’s economy has grown significantly. Corporate tax rates have been lowered, entry requirements have been simplified, and digitisation of existing legal framework has taken place, among other regulatory changes and initiatives
India is a rising economic powerhouse, already the world’s largest democracy and third-largest economy by 2030. With a population of over a billion and a growing middle class, consumer-driven consumption is strong. There are many opportunities, in addition to a growing economy and a large population. There are 18 million non-resident Indians, too.
Cultural considerations
There are a number of things to keep in mind when entering an international market, and India has several significant points on business culture and doing business there. People in India are strongly motivated by their respective religions and the values they share. They respect the hierarchy and the values of seniority and family. Good relationships and trust are critical in India, which may have an effect on your business dealings there. You should expect to spend a lot of time at meetings, dinners, and other events as you build your business enterprise in India.
As in some other Asian cultures Indians want to establish a relationship when working with a new company. This important foundation for establishing trust enables you to see the person you are dealing with and comprehend their values. So, be prepared to ask questions about family and be prepared to answer questions about your own.
Here are our Top 5 pointers for operating in India:
- Be present:
It is critical to maintain a presence in India, because the population genuinely desires to view that you are committed.
- Be local:
Having a local staff member or corporation that has already established a staff in the country is critical. When you can, establish an Indian member of your workforce or work with a company that already is.
- Be Indian:
You must blend in with the local culture as this is critical in developing a long-term business partnership.
- Be seen:
An important part of being present is being seen. By joining local business organizations and attending local events, you will gain credibility.
- Allowing “Indianisation” is critical.
Innovation, imagination, and cutting-edge technology are plentiful in India, and that may be nice to have in your company as well. If you’re open to a “Make in India” approach, then you may also consider a “Make in India” strategy, which is a great way to promote localisation.
From what we have seen, the Indian economy seems to be operating on a long-term growth trajectory.
The market indicators have been positive. In addition, the legal and regulatory framework has been amending policies to make doing business easier. Despite the fact that India has seen a lot of advancement and business ventures in the past few decades, there is still a lot left to be unlocked. The demographic peculiarities of the country (namely, a large portion of the population is available to work, earn and spend) and domestic consumption patterns make it an attractive market for all types of businesses. Furthermore, India’s democracy, internationally aligned commercial policies, and a well-developed legal system will continue to make it a popular destination for global business in the face of other geopolitical concerns.
If expanding into India is part of your business expansion plan, or you want to find out if it would be the right move for your company, get in touch to book a conversation
If you would like to learn more about Terra Sales Solutions and how we can work with you to achieve your international expansion goals into India, or any other part of the globe, take a look at our services
You can also find us on LinkedIn too.
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