Fokus Pasaran: INDIA

by Nurul

Country Background

Main Challenges

Major Opportunities

Machine tool industry, as well as the fastener and fixing industry, India is a major growth market which offers outstanding opportunities.
Automotive industry and its suppliers, the construction, telecoms, petro chemicals, energy supply, home electronics and white goods industries have benefited from this positive trend.

Doing Business in India

The total wealth of India has tripled in a decade to $3.5 trillion and is expected to double again in the next 5 years
The urban-household income would top $4 trillion in next 20 years
India is expected to invest $1.2 trillion on its infrastructure over next 2 decades
By 2020, additional 800 universities and 35,000+ colleges are required to enable the targeted 46 million children to avail college education
The US exports to India doubled between 2005 and 2009 to 16.5 billon and increased by 20 percent through the first seven months of 2010

Using an agent/distributor

Establishing an office

Selling to the government

Avoid the common mistakes Western firms make doing business in India
Improve business relationships and communications through a better understanding of the management culture of Indian organizations
Manage risk by learning how to evaluate the risks and rewards of doing business in India
Increase business opportunities by learning how to scan for important trends in Indian society
Reduce costs and risk by identifying Indian regulations that will affect how you do business
Increase your effectiveness in communicating with multi-cultural and virtual work teams

Joint ventures/licensing

A foreign company authorizes an Indian company to use its strong brand name, to produce a certain product.
The overseas company charges a license fee, for sharing its brand name, patents or copyrights.
Foreign company ensures an immediate access to the Indian market at a lower price.
Foreign company does not have any control over the distribution, sales and image of the product in the Indian market.

Distribution & sales channels

Electronic commerce

E-commerce has grown significantly in the past decade meaning that the actual base of an operation can be anywhere provided the infrastructure and resources are available

Openness to foreign investment

Local time, business hours, & holidays

1 January = New Year's Day
23 January = Netaji Subhas Chandra Bose's Birthday
19 February = Maharaja Shivaji's Birthday
15 March = Kanshi Ram's Birthday
22 March = Bihar Day
30 March = Rajasthan Day
1 April = Utkal Dibasa(Orissa day)
14 April = Dr. B. R. Ambedkar's Birthday
2nd Day of Chaitra, March–April = Cheti Chand(Sindhi New Year)
1st Day of Chaitra, March–April = Gudi Padva(Marathi New Year), Ugadi(Kannada and Telugu New Year)
15 April = Bihu(Assamese New Year), Maha Vishuva Sankranti / Pana Sankranti(Oriya New Year), Poylá Boishakh(Bengali New Year), Vishu & Varusha Purapu(Malayali & Tamil New Year)
1 May = Labour Day, Maharashtra Day, Gujarat Day

Fact facts

Population	1.17 billion
Capital	New Delhi (pop. 12.8 million)
Area	Agra
Ethnic Group	Indo-Aryan 72%, Dravidian 25%, others 3%
Religious	Hindu 80.5%; Muslim 13.4%; Christian 2.3%; Sikh 1.9%; other groups including Buddhist, Jain, Parsi within 1.8%; unspecified 0.1%.
Major Language	Hindi, English, and 16 other official languages.
Monetary Unit (Currency)	rupee
Major Industries	Textiles, Jute, processed food, Steel, Machinery transport equipment, Cement, Aluminum Fertilizers, Mining, Petroleum, Chemicals Computer software.
Major Export	engineering goods, petroleum products, precious stones cotton apparel and fabrics, gems and jewelry Handicrafts, tea
Major Import	Garment, Food, Furniture, Textile, Electronic
GDP (Gross domestic product) - in USD	$1.095 trillion.
GDP per capita (in USD)	$3,100.

Source:

http://www.state.gov/r/pa/ei/bgn/3454.htm

Fokus Pasaran