The Indian market offers many opportunities for Dutch industry, but also great challenges. The market is characterized by bureaucracy and there are major regional and cultural differences.
In recent years, the Indian economy grew by an average of 6.4%. According to The World Bank, Indian economy is expected to grow at 7.8 per cent in 2016-17, followed by further acceleration of 7.9 per cent in 2017-18. When entering this market, patience is important. We see that the most successful companies in the market adopt a long-term strategy. It is certainly not a market for quick profits. But one where time and energy, coupled with adaptability, can lead to good results. Approaching a market in India is not necessarily simple, but it offers many opportunities.
There are different ways to enter the Indian market. Many companies make use of agents, distributors or representatives (representative offices). At a later stage companies may also choose to develop production and back office operations in India. Companies that have to do business in India are advised to carefully build relationships. These relationships are (almost) everything in India.
Export to India
When exporting to India, one must take into account several things, since India has complex customs regulations. It is advisable to cooperate with a distributor, who will be responsible for the import of your product and will know the import-related procedures in India.
The investment climate in India is attractive. Financial markets are technically in order, grow fast and are full of opportunities. Additionally, the political environment in India is stable, which benefits investments. Nonetheless, processes in India can sometimes seem lengthy and intransparent. Moreover, some laws hamper or preclude full involvement of foreign parties (land purchases, etc.).
Personal support and advice
Do you already have a market in mind? Or would you like further information on opportunities in India? The consultants of the RVO can help you, for example by providing customized information packages.