Guide to Doing Business in INDIA

Get to Know INDIA:

Thousands of years of history, region of historic trade routes, and home to several civilizations including Indus Valley, the Indian subcontinent is known for its commercial and cultural wealth. FYI: According to calculations by Angus Maddison, from at least the beginning of the common era until the early 19th century, China and India accounted for around half of global GDP. (Souce: World Economic Outlook database, 2005)

I recommend: Know India, a government of India site, provides excellent information on India.

Understand the Economy you are investing in:

7th largest in area, 2nd most populous, 10 largest in economy size, 300 millions middle class, 500 million below the age of 20, and proposed to be largest by 2050, INDIA is a country that no business can’t afford to ignore. However, at the ground level, corruption, bureaucracy, labor market rigidities, and regulatory framework are few challenges that foreign companies must account for while entering India.

I recommend: Doing Business site, from world bank, provides excellent stats like starting a business, dealing with licenses, etc.

Read through the following papers and presentations to know what India has to offer:
1) Doing Business in India by Ernst & Young; Dec 2006
2) Engaging India:  Challenges and Opportunities by Linda Droker, US Department of Commerce; Oct 20 2006

Assess the Market and Analyze the Opportunities:

First qualify the opportunity for your product/services or your investments into India. Get the research tailored to your needs.

I recommend: 1) Buyusa.gov provides "Best Prospects" to find out about the leading sectors for U.S. exports and investments. 
2) The country commercial guide for India from US Department of Commerce is an excellent tool for US companies tracking trade and investment opportunities in India.

Ask yourself……Are we ready??

Assess if your company is prepared with clear business objectives and also associated risks with time and money.

I recommend: Take assistance of trade specialists from US Department of Commerce

Attend Trade Events:

Trade events are an excellent resource to identify potential opportunities, meet subject matter experts, showcase your products and services, network and connect with right people/potential partners/buyers/suppliers

I recommend: Export.gov provides list of official trade events and missions.  Other great sources of trade shows, exhitbitions, events are as follows:
1) Indian Brand Equity Foundation
2) Confederation of Indian Industry
3) From Government of India site

Find and Make Right Contacts:

It is every essential and recommended to have a local partner, who understands the language and culture to conduct business dealings with other vendors or suppliers in India, negotiate, develop sales and distribution channels, etc. Due diligence and strong contractual agreements with identified partners are highly recommended in India.

I recommend: US Department of Commerce has excellent services for US companies to find right Indian partner. I also strongly recommend foreign companies to become member of Indian associations like:
1) United States India Business Council (USIBC),
2) Confederation of Indian Industry (CII),
3) Federation of Indian Chambers of Commerce and Industry (FICCI)

Market Entry Options:

Depending on your objectives in the Indian market and best practices, forge relationships with the Indian partners. Options may include subsidiary relationship, joint venture, branch or liaison or branch office. India is a very diversified and big country, so you can form relationships with various partners local to the market of interest.

I recommend: Using the trade specialist services from buyusa.gov is an excellent way to start. 
Department of Industrial Policy and Promotion under government of India provides excellent information for foreign companies pursuing entry into India.

Industry and Professional Associations in India:

With India’s business environment in transition, laws affecting trade, investment, taxes, capital markets, etc are changing rapidly and very had to keep track of for SMEs. Through membership services with such Industry associations, businesses can benefit from attaining information at minimal cost.

I recommend: Depending on the industry/sector of interest Confederation of Indian Industry, FICCI, AMCHAM, ASSOCAM, and NASSCOM are a few industry associations that a foreign business must look into. 

Export Assistance from US:

The U.S. Commercial Service helps U.S. companies to expand their business to worldwide markets and has the largest presence, outside US, with 7 offices in India. U.S. Commercial Service offices are located in 107 U.S. cities and 145 U.S. Embassies and Consulates worldwide to take advantage of.

I recommend: Buyusa.gov provides vast information on doing business with and in India.