For entrepreneurs, the western, the indian market is very rich of attractions… but also traps !
first : a few weeks ago, a dozen of hypermarkets and Auchan have opened in India. The French brand should be emulated among the international actors of the distribution. With its 1.3 billion inhabitants and its economic dynamism, which remains much higher than that of developed countries (5 % growth expected in 2012, and 6 % in 2013, according to the latest IMF estimates), the indian market is the envy of companies around the world.
As pointed out by four consultants from the Boston Consulting Group, in a recent book explaining to businessmen western how to capture markets in India and China (The $10 Trillion Dollar Prize : Captivating the Newly Affluent in China and India editions of Harvard Business Review), “the rapid growth of India has led to a huge increase in the consumption of the commodity (copper to corn through chickens and coal), but also of all the other ingredients, enabling an improvement in the standard of living, such as diet foods rich in protein, the buildings are equipped with modern facilities and transport vehicles […]. The indian children who are born today will consume during their life and thirteen times more than their grandparents.”
in Addition to the possibility to access a market ultraporteur, another strong motivation pushes the entrepreneurs of the developed countries to invest in India. “By installing a French company may make investments that are geared towards the efficiency, that is to say, towards the decrease of its production costs”, decrypt Nikhil Singhi, a partner network of accounting and consulting Baker Tilly in India and Marie Mermillod, partner of Baker Tilly France.
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larger Opening to foreign investors
For a long time, it seemed very difficult to develop a physical presence in India, both the local legislation was protective. In the distribution, the possibility for foreign companies to invest in direct will not date as of last September ! But the situation is evolving in the right direction. “The government attitude of indians towards foreign investment has changed significantly in recent years, indicate Nikhil Singhi and Marie Mermillod.
The foreign investment, which was allowed only in sectors of activity to be limited and under special conditions, has been largely liberalised. This evolution reflects the growing confidence of the public authorities in the fundamentals of the national economy and the progress of their efforts of integration into the world economy.
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implant in India
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“But be careful ! Whether they are experts or leaders, those who have had experience of the India highlight the magnitude of the difficulties facing any candidate wishing to take the foot. To begin with, a staggering bureaucracy, infrastructure, a great weakness, of high rents, shortages of energy. And a cultural divide to a depth unfathomable.