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Investment
in Indian market
India, among the European investors, is believed to be a good
investment despite political uncertainty, bureaucratic hassles,
shortages of power and infrastructural deficiencies. India presents
a vast potential for overseas investment and is actively encouraging
the entrance of foreign players into the market. No company, of any
size, aspiring to be a global player can, for long ignore this
country which is expected to become one of the top three emerging
economies.
Success in India
Success in India will depend on the correct estimation of the
country's potential, underestimation of its complexity or
overestimation of its possibilities can lead to failure. While
calculating, due consideration should be given to the factor of the
inherent difficulties and uncertainties of functioning in the Indian
system.Entering India's marketplace requires a well-designed plan
backed by serious thought and careful research. For those who take
the time and look to India as an opportunity for long-term growth,
not short-term profit- the trip will be well worth the effort.
Market potential
India is the fifth largest economy in the world (ranking above
France, Italy, the United Kingdom, and Russia) and has the third
largest GDP in the entire continent of Asia. It is also the second
largest among emerging nations. (These indicators are based on
purchasing power parity.) India is also one of the few markets in
the world which offers high prospects for growth and earning
potential in practically all areas of business.Yet, despite the
practically unlimited possibilities in India for overseas
businesses, the world's most populous democracy has, until fairly
recently, failed to get the kind of enthusiastic attention generated
by other emerging economies such as China.
Lack of enthusiasm among investors
The reason being, after independence from Britain 50 years ago,
India developed a highly protected, semi-socialist autarkic economy.
Structural and bureaucratic impediments were vigorously fostered,
along with a distrust of foreign business. Even as today the climate
in India has seen a seachange, smashing barriers and actively
seeking foreign investment, many companies still see it as a
difficult market. India is rightfully quoted to be an incomparable
country and is both frustrating and challenging at the same time.
Foreign investors should be prepared to take India as it is with all
of its difficulties, contradictions and challenges.
Developing a basic understanding or potential of the
Indian market, envisaging and developing a Market Entry Strategy and
implementing these strategies when actually entering the market
are three basic steps to make a successful entry into India.
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