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Developing
a basic understanding or potential of the Indian market
The Indian middle class is large and growing; wages are low; many
workers are well educated and speak English; investors are
optimistic and local stocks are up; despite political turmoil, the
country presses on with economic reforms.But there is still cause
for worries-
Infrastructural hassles.
The rapid economic growth of the last few years has put heavy
stress on India's infrastructural facilities. The projections of
further expansion in key areas could snap the already strained lines
of transportation unless massive programs of expansion and
modernization are put in place. Problems include power demand
shortfall, port traffic capacity mismatch, poor road conditions
(only half of the country's roads are surfaced), low telephone
penetration (1.4% of population).
Indian Bureaucracy.
Although the Indian government is well aware of the need for reform
and is pushing ahead in this area, business still has to deal with
an inefficient and sometimes still slow-moving bureaucracy.
Diverse Market .
The Indian market is widely diverse. The country has 17 official
languages, 6 major religions, and ethnic diversity as wide as all of
Europe. Thus, tastes and preferences differ greatly among sections
of consumers.
Therefore, it is advisable to develop a good understanding of the
Indian market and overall economy before taking the plunge. Research
firms in India can provide the information to determine how, when
and where to enter the market. There are also companies which can
guide the foreign firm through the entry process from beginning to
end --performing the requisite research, assisting with
configuration of the project, helping develop Indian partners and
financing, finding the land or ready premises, and pushing through
the paperwork required.
Developing up-front takes:
Market Study
Is there a need for the products/services/technology? What is the
probable market for the product/service? Where is the market
located? Which mix of products and services will find the most
acceptability and be the most likely to generate sales? What
distribution and sales channels are available? What costs will be
involved? Who is the competi
Check on Economic Policies
The general economic direction in India is toward liberalization
and globalization. But the process is slow. Before jumping into the
market, it is necessary to discover whether government policies
exist relating to the particular area of business and if there are
political concerns which should be taken into account.
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