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How To Do Business in India

By on March 28, 2014 in Business Tips with 0 Comments

India is a growing economy so, starting business in India can be a good decision.

India as a country have many factors which can attract new businesses and investors from all around the world. Being the largest democracy of the world, India offers an excellent business environment and large numbers of potential buyers along with favorable government policies. But before you actually start your business in India it is better to understand some of the crucial aspects of the Indian market. Better understanding of these aspects will help you in getting a clear picture of the Indian business scenario:

Consumers: It is very essential to understand Indian consumers and their preferences before starting your business in India. The Indian consumers are large in number and their demands are higher elastic in relation to the price of the product or services. Consumers in India prefer products which are good in quality and reasonable in price. The customization of the products or services,according to the needs of the Indian consumers,can be an additional factor in attracting buyers in India.

Administration: Study the administrative aspects and get the idea about the working of Indian administration. For Example: Indian administration is often not very punctual. If it is written that you will get the license to start your business in India in 15 days, it is not sure that you will get it in 15 days. It is quite possible that you have to give extra money for getting your work on time.

Infrastructure: Relatively low cost of land, machinery, transport and other elements are the factors that can make your business profitable in India. Low cost of production also ensures low pricing of the products which will result in getting large number of potential Indian buyers.

Special Economic Zone (SEZ): Special Economic Zone are the geographical locations of a country where business and trade laws are quite liberal as compare to the other regions of the country. If you are starting a business in India, SEZ will be perfect for setting up base offices or production units. Some of the operational SEZ in India are Gujarat, Karnataka, Kerala , etc and some of the SEZ set-up by the Indian Government includes Noida Special Economical Zone,   MEPZ Special Economical Zone in Chennai and three others SEZ.

Labour cost-competitive advantages : India have great advantage of inexpensive human resources. Large number of educated work force along with bulk of uneducated labours makes India a place to do business by spending minimum money on human resources. Most of the educated Indian are good English speakers so, the companies around the world use to outsource their work in India. Low manufacturing cost makes India an alternative for China for the production purposes.


Low cost of human resources makes India a cost effective country for setting-up a business.

Government policies: Government of India have supported FDI to a great extent. The Government have liberalized FDI in almost every sector of the Indian Economy. This ensures the development of the foreign companies in India. These companies will provide employment to the Indian population and will also bring new products and services in the Indian market.

Doing business in India requires little patience and proper planning as there are some problems that you may face while running your business in India. Some of them are:

Western way of working missing: Most of the Indians though look westernized by their way of talking or the dressing but don’t expect westernized way of working from Indian employees. Most of the Indian don’t like to move out of their comfort zone to do a job. Get ready to deal with Indian  work style.

Things can change at the last moment: The schedule of a meeting can be charged at the last moment. The person you want to meet may inform you just half-an- hour before the meeting time that he can’t come.

Delays and long processes: If you want something in a week , it is quite possible that it take a month in India. Time is still not that much important for some of the Indian.

The Indian economy is growing at a fast rate so, it is profitable and easy to do business in India. Low cost and large market can ensure good profits for the companies running their business in India.

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