India Market Entry
India Market Entry Strategy Consulting
Any organization can move forward with small incremental changes but building for the future in today’s rapidly evolving environment means taking bold chances and making insightful decisions. Indian economy finally offers one such lucrative opportunity to Global Businesses, Investors, Entrepreneurs and Growth Enablers.
At 8% projected GDP growth until year 2035, India is one of the fastest growing economies in the world. Stronger economy, business friendly tax and legal reforms, increased domestic consumer spending and digitization initiatives are all contributing to the future potential growth.
Entry modes for FDI in Indian Economy
Since opening the doors to foreign countries and international markets in 1991 through economic liberalization, Indian economy has come a long way in improving the investment climate. FDI being a non-debt financial resource has also served well in economic development of India which helped foreign companies take advantage of lower wages in domestic markets, income tax benefits, quick licenses and approvals etc.
Inspite of the Covid 19 pandemic, India registered the highest FDI inflows of $81 billion in 2020-2021 which is one of the historic highs and increased by nearly 10% compared to 2019-2020. Computer Software & Hardware received nearly $21 billion followed by telecom, construction, automotive, chemicals, pharma/life sciences and others. Singapore was the top FDI investor ($15.7 Billion) in local markets followed by United States ($12.8 Billion), UAE ($4 Billion), Mauritius ($3.5 Billion) and UK, Netherlands, Cayman Islands all investing about $2 billion each.
To make FDI in Indian economy attractive, government has not only made it easier to get licenses or approvals quick but also introduced 3 entry modes of FDI in India namely Automatic route , Government Route & a combination of both. This allows international companies to enter new markets in India by operating either as a foreign company (Liaison, Branch or Project Office) or as an Indian company ( Joint ventures with Indian partner or wholly owned subsidiary).
Benefits of doing business in India
A $2.5 Trillion economy that is rapidly rising thanks to slew of economic reforms and ease of doing business in last 3-4 years, India is home to nearly 1.37 Billion people with world’s largest democracy. Lifestyle of an Indian consumer is rapidly evolving due to rising incomes. Middle class population is booming with a surge in spending power. All of these factors are contributing to an accelerated growth in Indian economy across traditional as well as emerging sectors like FMCG, Consumer Lifestyle, IT, AI, FinTech, Healthcare, Renewable Energy, EdTech and E-commerce.
By allowing 100% Foreign Direct Investment (FDI) across various sectors, India has significantly opened its doors to foreign countries and is rapidly pushing for international businesses to succeed in India. Corporate Tax cuts were announced in September 2019 to aggressively compete with other Asian economies. To further make it a business friendly destination, government has tremendously eased the costs and timelines of getting regulatory permits by making it quick as well as relatively easy to obtain them.
Fluent English speaking population, accredited education standards and globally experienced talent pool provides competing workforce that continues to encourage reputed MNCs in building a successful organization in India. Recent government push towards manufacturing through Make in India campaign, aggressively increasing mandates on renewable energy sources like solar, wind, waste to energy, biofuels, bioplastics and electric vehicles are creating new market opportunities that are set to permanently integrate in the Indian economy.
Digital transformation initiatives by government of India across the country inclusive of rural towns and villages, is leading to an e-commerce, fintech, edtech and technology boom thus offering an exciting market opportunity and setting India up for coming decade of an economic growth engine.
INDIAN GDP STATISTICS
Indian economy growing robustly at nearly 8% GDP since 2010
Strong momentum to continue until year 2035
8-9% GDP growth expected from year 2020 till 2035 due to Economic, Legal and Business friendly reforms implemented since the year 2016
Top Business Opportunities in India
With a strong focus on Technology Advancements, Infrastructure upgrades, Rapid Urbanization, & rising incomes, Government has set a $5 trillion economy goal by 2024 from current $2.5 Trillion
Government has now allowed 100% Foreign Direct Investments (FDI) in Retail Industry, currently a $900 Billion market, growing at approx. 18% CAGR for last 2-3 years and is expected to continue this unprecedented momentum till 2024 and beyond.
Under the “ Make in India” campaign, government is aggressively pushing for India as next generation manufacturing hub providing single stop and easy business licenses, expedited special legal counsel for disputes and resolutions, monetary incentives, rebates and tax benefits to all foreign entities wanting to establish a presence in India
To meet rising energy demand and curb pollution levels, India has set a target of meeting 40% of its energy demand through renewable energy sources like solar, wind, geothermal, waste to energy/biomass & biofuels by the year 2030
To increase its manufacturing sector base, country offers tax free opportunities in Special Economic Zones in India (SEZ) to promote export entirely to other nations
Third largest startup ecosystem in the world,
1300 start ups founded in 2019
Total 8900 tech startups in India now according to NASSCOM
24 Unicorns (startups with more than $1 billion valuation) in 2019.
Challenges of Doing Business in India
Doing business in India clearly presents a long term opportunity but we are cognizant of the market entry hurdles which may be a cause of concern for foreign companies or investment firms. At Arete Ventures, we have negated these hurdles with well executed risk mitigation plan for our reputed USA & European clients by developing a prudent India market entry strategy with quantifiable results.
Clients success in Indian business market is attributed to our strong network and proven experience in various sectors like Chemical, Energy, Information Technology, FMCG, Industrial goods and others. This accumulated knowledge and experience helps foreign investors leverage as well as optimize business entry strategies for robust growth in Indian markets.
Whether you are looking to selling or manufacture a product in India, our practical experience and business network will not only answer your key objectives but also quickly lead to robust growth by finding the right investment/ expansion strategy. Whether it is buying the right company at fair price, creating a joint venture (JV), finding distribution agents or registering a private limited company in India, Arete Ventures helped numerous foreign firms succeed in Indian market with our proven strategic consulting expertise. We work alongside with you always until objectives are fully met.
Our proprietary market insights and consulting practices have benefitted startup entrepreneurs, small and medium scale (SME) businesses from Europe & North America. Accumulated knowledge in diverse Indian market sectors and hands on experience in implementing the strategic business model has proven to be a runaway success for global businesses that have worked with us in the past. It helped them leverage and capitalize well by quickly optimizing business entry strategies and successfully executing it under our robust supervision and guidance.
Educated and Young Population
Highly educated, fluent English speaking and youngest population
50% population below the age of 25, 65% population below the age of 35.
560 million active internet users in 2020, projected to touch 650 million by 2023.
Arete Ventures serves as a one stop solution for all your requirements of doing business in India and delivering turnkey projects. This can include services like new business registration, office set up, hiring, business development, finding an Indian partner for JV or contract manufacturing or distributorship, government permits & licenses, regulatory compliance and other aspects. From being a joint venture consultant in India to setting up teams, regulatory compliances & licenses, we help our client focus on growing the business rapidly in their target markets without worrying about local administration challenges.
Due Diligence/ Market Research
Analyzing current & future outlook of the market sector
Pricing Strategy & Product Positioning
Spotting Positive Divergences (if any) / Demand & Supply Gap Analysis
Picking right location
Government Policies, Incentives & Regulations that may impact or benefit that particular sector
Developing a market entry strategy for India
With a client centric approach, Arete’s strategy consulting experts develop a business model incorporating proprietary as well as actionable data insights. Our comprehensive market entry strategies include curated insights, expectations of an Indian customer and target market opportunities thus providing a clear financial strategy with higher return on investment (ROI) for their products or services.
Implementation & Strategy Execution
One of our strongest forte, Arete consulting teams stand alongside our clients in executing the business strategy throughout the course of turnkey projects. Our hands on operational experience has helped reputed international businesses succeed exceedingly well in the Indian markets. Our strategy execution teams help concentrate client’s focus entirely on business growth while we take full care of the local work including recruiting teams, setting up offices, accounting, tax and payroll services, licenses/ permits, facilitating meetings, evaluating partners and representing our clients locally.
At Arete Ventures, we stand alongside our clients in each and every aspect of the project during implementation. Our hands on operational experience is one of the fortes that continues to assist our clients during the critical time. We responsibly accomplish ground work activities like recruiting, setting up offices, accounting, tax, payroll, licenses/ permits, facilitating meetings, evaluating partners and representing our clients locally.
SECTORS & RISING INCOMES
FinTech, AI & Data Analytics
Data Analytics, Artificial Intelligence (AI), Internet of things (IoT) gaining quick adoption.
Enterprise software, FinTech & Health Care comprise 50% of the startups.
400% increase in consumer spending expected by 2030 thanks to rising middle class and higher incomes.
India Market Entry Strategy Services
India Entry Strategy Consulting
Strategy Planning, Implementation & Execution
Comprehensive Market Research & Due Diligence
Financial, Business and Economic Analysis of sector
Government Policies, Regulations & Incentives
Full Business Plan with implementation strategy, capital investment and financial projections
Company Tax & Ownership Structuring to comply with Reserve Bank of India (RBI) policies
Supply Chain & Growth
E-commerce strategy & Digital Marketing solutions.
Financial Modelling, Analysis & Accounting
Financial Forecasting, Return on Investment (RoI), Accounting, Payroll, Taxation & Company Secretary
Imports, Exports, Logistics & Warehousing
Executive Search & Recruitment
Complete recruitment solutions for Senior Leadership & Management hiring across all functions and department.
Company registration, Regulatory Permits, Opening Bank accounts
Distributor Agreements, Technology Transfer, Joint Ventures, M & A, Business Negotiations & final contractual agreements
Special Economic Zones (SEZ)
Greenfield Manufacturing Set up & SEZ India Feasibility Analysis
Representing international clients locally to facilitate stronger relationships and facilitate meetings.