Professional Documents
Culture Documents
// INDIA
Independence
15th August 1947 (from
British colonial rule)
//GEOGRAPHY
Location:
Southern Asia, bordering
the Arabian Sea and the
Bay of Bengal, between
Burma and Pakistan with
Nepal, China and Bhutan in
the north
Population:
1,220,800,359
(July 2013 est.)
Growth:
1.28%
(2013 est.)
Literacy: 61%
Male: 73,4%; Female: 47,8%
(2001 census)
Urbanization:
Urban population:
30% (2010); rate of
urbanization: 2.4% annual
rate of change
(2010-15 est.)
Area:
Total: 3,287,263 sq km
//ECONOMY
GDP (PPP):
$4.761 trillion (2012 est.)
GDP/Capita (PPP):
$3,900 (2012 est.)
Growth: 4,7%
(13 14, Worldbank est.)
FDI Investments:
US$ 27,3 billion (2012)
Current account balance:
-$80.15 billion
(2012 est.)
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// Contents
04
India: An Overview................................................................. 06
Introduction...........................................................................
Case Studies...................................................................
08-23
24
Conclusion.............................................................................. 29
Doing Business in India.......................................................... 30
India Business Advice.............................................................
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// Introduction
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// Introduction
the business culture might be difficult to
understand and dealing with several lengthy
procedures and complicated regulations can be
tough for foreign companies.
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Alphonsus Stoelinga
Ambassador
// India: An overview
Located in South Asia, India supports over 16% of the worlds
population and around 2.4% of the worlds land. It is the confluence
of many religions and ethnicities, which has shaped the countrys
diverse culture.
/ / Economic Overview
Since the adoption of the economic
liberalization policy in 1991, India has
grown to become a USD 1.3 trillion
economy with a largely self-sufficient
agriculture sector, a diversified industrial
base, and a stable financial and services
sector. Real GDP growth averaged at 8.8
percent between 2003 & 2008, witnessed
a minor slump in 2008-09 and recovered
to 8.4 percent during 2009-11. Albeit with
a few concerns in view of the current
/ / India Advantages
With a population of just over 1.21 billion,
India is the worlds second most populous
country, after China. Indias burgeoning
middle class which is expected to swell
from the current level of 31.7 million
9.4
8.5
9.6
9.3
8.4
7.5
8.4
6.9
6.7
5.8
5.5
3.8
4
2
0
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10
11
12
By 2025
1400
1200
1000
800
600
400
200
0
1991
2000
2010
20-59 yrs
2005
2015
Total Population
2020
/ / India Challenges
India presents lucrative business opportunities, but both foreign and domestic
enterprises face formidable challenges in
conducting their businesses here. India is a
complex market due to regional diversity,
large rural-urban divide, dominant unorganized markets and multiple legal and administrative systems. Furthermore, a complex
bureaucracy and lack of proper infrastructure
facilities magnify these challenges.
The biggest challenge that most multinational companies face is the Indian governance
framework, which is intertwined between
the Central and State structures. The companies face several complex bureaucratic
procedures and are forced to comply with
both state and central rules and regulations.
Moreover, duties and levies undergo frequent
revisions during the Annual Central and State
budget exercise. These factors are the major
reasons why many Dutch companies indicate
dealing with regulations and procedures as
one of the major challenges.
A checklist of business advice featured in
a subsequent chapter facilitates an understanding of the cultural and professional
differences of working with and in India
and can serve as a useful guide for potential Dutch investors eyeing India.
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1. Source: National Council for Applied Economic Researchs (NCAER) Centre for Macro Consumer Research
// Case Studies
curately studied the Indian agriculture sector, and assessed the demand for its seed
varieties and the need for new technology
and methods for producing high yielding
crops. Following their initial success with
Gherkins, the Dutch vegetable breeder
wanted to be an active player in the Indian
vegetable seed market and offer a whole
assortment of other products, for which it
set-up its 100% subsidiary in India in 2010
with the intent of collaborating with the
Indian distributors and commencing R&D
operations locally. They realized that to
be highly successful in India, its essential
to have a local representation through an
Indian firm which is managed by a group of
local people.
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// Case Studies
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// Case Studies
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at an early stage. To begin with, the company considered Ahmedabad, which enjoys
the reputation of being a straightforward
and business minded region, as their ideal
location for manufacturing, which has
helped them maintain their infrastructural
and other operational costs at a minimum.
Additionally, the selection of the right
When setting up a company in India, cultural differences appear. Q.I Press Controls in
The Netherlands took care of these differences by ensuring that the management of
her daughter company should have enough
freedom to determine their own course and
take their own decisions along with enough
checks so that the vision and mission of
the company did not get overlooked.
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// Case Studies
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// Case Studies
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// Case Studies
THEY India
// Advertising
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// Case Studies
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developing long-term relationships with suppliers. Though still a field of constant improvement, Danieli Corus has already managed to
gain some good results.
After years of hard work, the company has established a solid position in the Indian market,
as well as a reputation of technological excellence and flexibility. To get to this point, Danieli Corus chose to stick to its core principles
of delivering top-notch quality solutions.
With this solid foothold, the Indian subsidiary is now set for further accelerated
development. It will work towards increased
market share and benefit from the economic
growth and the consequent high demand
from the iron and steel industry for the companys products.
To do so, perhaps one of the most important
aspects to enable this growth and maintain
the Danieli Corus USP, is the companys
decision to dedicate a Dutch national for
managing this process for several years. The
cultural differences and the expectations
from both countries and organizations
require continuous alignment and mediation
and have been an area of special attention
for the last 5 years.
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// Case Studies
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// CONCLUSION
// Conclusion
There are challenges that any investor would face towards establishing a successful business
presence in India. Given that the regulatory environment is seen as one of the largest barriers to
entry, it is critical that the appropriate strategies are envisaged right from the planning stage. Red
tape remains a perennial issue, but the difficulties of navigating the bureaucracy have been thought
to be outweighed by the eventual benefits of successful market entry. To summarize, the India entry
checklist among other things call for:
Identification of suitable local partners: This
should be a priority in any successful market entry
strategy. Many companies which have successfully
entered the Indian market, stress the importance
of devoting significant resources to this aspect of
their overall strategy. Those that committed time
and effort to find the perfect fit often found that
they saved themselves the task of having to find
additional partners later on.
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Business assistance
The Netherlands government provides
support to companies that want to do
business in India. This assistance is
available through our extensive network in
both India and The Netherlands.
For India, the assistance covers the
following areas:
Information resources
Providing basic information about
markets, both geographically and in
terms of specific products
Supplying information on developments
in science, technology and innovation in
India
Advisory services
Initial identification and research
into potential business partners and
partners for scientific and technological
collaboration
Providing referrals to experts in legal
matters, recruitment and accounting
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Match-making assistance
Finding potential partners for your needs
in research, scientific collaboration or
technological exchange
Arranging contacts with relevant
stakeholders and prospective business
partners in India
Business support
Providing assistance with preparation
and organization of business trips to
India
Offering an official umbrella under
which to operate, which can make a
decisive difference
Providing advice and assistance with
project tenders
Problem solving and intervention
Intermediating in conflicts
Directing you to the relevant government
authorities and non-governmental
bodies
Acting as observers
In The Netherlands, the government
agency NL EVD International can
provide the following:
Useful information on sectors, legal
procedures, tax regulations and other
matters
Industry-specific market scans
Assistance in finding potential business
partners in India
Customized information on subsidy
schemes and financing
Useful links
www.hollandtrade.com
www.hollandinindia.org
http://india.nlembassy.org
www.cbi.nl
www.agentschapnl.nl/onderwerpen/internationaal-ondernemen
Agricultural Department
E: ndE-LnV@minbuza.nl
T: +91(0)11 24197605
5x210_v11.indd 3-4
08-03-12 09:01
In addition to the support offered by the Netherlands government, more in-depth commercial
assistance is provided by consultants, banking institutions and other organizations. Further
support is available from specialized organizations.
Doing business in India
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