India is one of the major contributors to the global economy. The government policy of trade liberalisation, tax ratification or open approach towards foreign investments shows consistency support and improvement in the business sector.
HOW TO ENTER INTO INDIAN MARKET
INDIA is an attractive destination for business
As per world bank report (2016), India is home of 1.324 billion people and the world’s largest democracy with GDP of over USD 2.274 Trillion. India is termed as one of the fasted growing economies in the world, it is evolving and growth opportunity is present across multiple sectors.
Facts About Indian Market
IEBF’s (Indian brand equity foundation) report anticipated India’s retail market to increase by 60% to cross USD 1 Trillion by 2020 owing to factors like changing consumers lifestyle, rising incomes and growing middle-class population. As per 2017 report, the organised sector in retail market contributes 7% of the total sector while the unorganised sector contributed the rest 93%.
According to IEBF
- With the growing digitalization, urbanisation, technological advancement, globalization, favourable demographics & increasing household income, India’s GDP is anticipated to reach USD 6 Trillion by 2027.
- India is focusing on renewable source and planning to achieve 40% of its energy from non-fossil sources by 2030.
- India is expected to be the third largest consumer economy and its anticipated to that its consumption may triple to USD 4 trillion by 2025.
RETAIL MARKET IN INDIA (USD Billion)
To attract and give opportunities to both foreign and as well as the domestic market India has permitted 100% FDI (Foreign Direct Investment) in single-brand retailing.
INVESTMENT STRUCTURE IN INDIA:
Indian retail industry has received FDI (Foreign Direct Investment) of USD 1.4 billion from April 2000- June 2018, this as per the report provided by Department of Industrial Policies and Promotion (DIPP), with growing customers demand goods and services, many companies have invested in the retail industry of India.
To enter into Indian market there is need of:
- Proper Planning
- A good partner who is knowledgeable of the local market and aware of procedural issues.
- Contacting and contracting with agents and distributors
- Identifying the target consumers and target market
- Marketing and Promotion of product and services
Significant points to keep in mind before entering the Indian market
INVESTMENT STRUCTURE IN INDIA:
Indian retail industry has received FDI (Foreign Direct Investment) of USD 1.4 billion form April 2000- June 2018, this as per the report provided by Department of Industrial Policies and Promotion (DIPP), with growing customers demand for goods and services, many companies have invested in the retail industry of India.
To enter into Indian market there is need of:
- Proper Planning
- A good partner who is knowledgeable of local market and aware of procedural issues.
- Contacting and contracting with agents and distributors
- Identifying the target consumers and target market
- Marketing and Promotion of product and services
Significant points to keep in mind before entering the Indian market
Options to enter the Indian Market:
Before entering the market, it is significant to consider right mode of entry to do business in the Indian market which can be evaluated in terms of short- and long-term business plan, nature of business activity, size of investment and other liability.
A foreign company planning to set up business operation in India has the following options:
- Incorporate a business entity
- Make a wholly owned subsidiary
- Liaison office
