Entering India the Largest Democracy

Let me tell you Currently India’s approximate accounted population is over 1.237 Billion plus unaccounted population. The Indian middle class is large and growing; wages were low and now it is best in the various industry segments; many workers are well educated and speak English; investors are optimistic and local stocks are up; despite political turmoil, the country presses on with economic reforms. But there is still cause for worries-

With a billion people, the Republic of India is the world’s largest democracy. With a population nearly four times that of the United States, India modeled its government on the British parliamentary system, with a healthy dose of influences from the United States and the rest of Europe.

Let me share an example with out taking the name of the organization, one organization in India did a massive campaign on Milk. Requesting people and children with the advantage of the drinking Milk. As a matter of fact their sales of milk got increased by way of increase in consumption per person per day per family. Resultantly prices of Milk were increased in other part of world including USA because of the raise in demand in the largest democracy of the world. This is off-course the power of the demand.

There is enough market in India for any product you take of any category. Indian government has opened gates for world to come to India and explore the power of demand. Only thing is needed is the right company with the willingness to do the business with a long term goal.

Today, during the time India has emerged as a super power in IT, software and IT enabled services.
India has undergone a paradigm shift owing to its competitive stand in the world. The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.

There is ample reason for India’s viability as a destination for foreign investment. In addition to the above-mentioned macroeconomic indicators, higher disposable incomes, emerging middle class, low cost competitive workforce, investment friendly policies and progressive reform process all contribute towards India being an appropriate choice for investors.

The Indian Government is committed in its efforts to maintain a healthy growth rate and provide a conducive policy environment to the enterprises, both public and private, to invest and grow their business in the country. To this end, the Government has liberalized the foreign investment regime substantially over the last decade. Today, foreign direct investment is allowed in almost all sectors including a few sensitive areas such as Defense with few levers. Further, FDI is allowed in most of the sectors under the automatic route, except a few, where approval from the Foreign Investment Promotion Board is required.

HASSLES & ADVANTAGE

Infrastructural hassles
The rapid economic growth of the last few years has put heavy stress on India’s infrastructural facilities. 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. Problems include power demand shortfall, port traffic capacity mismatch, poor road conditions. However, most of the project for road widening, and making of the Express way for National highway are near to completion. 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. 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 develop Indian partners and financing, finding the land or ready premises, and pushing through the paperwork required.

Advantage India

– Progressive movement towards delicensing and deregulation.
– India is the world’s largest democracy.
– Large pool of young skilled labour force, cost effective production facilities, large domestic market.
– Capacity upgradation in infrastructure, industrial base and intellectual capital.
– Progressive tax reforms.
– Progressive opening of the economy to FDI.
– Portfolio investment regime liberalized.
– Liberal policy on technology collaboration.
– Investor friendly policies.
– Acceleration of the privatization process and restructuring of public enterprises.
– Good network of research and development.
– Economic and political stability.