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Business and Market Focus In India

India is the second most populated country in the world, ranking right behind China. India is a blended beauty of rich culture, ancient monuments, historical sites, varied festivals and has the mighty Himalayas in its northern boundaries. There is hardly any country in the worlds where one finds such diversity in the traditions but somewhere all are kind of interlinked. That is probably the charm of this largest democracy in the global front. Where languages are concerned, Hindi happens to be the national language of the country but English is quite popularly used as one of the common languages nationwide.

The economic scenario has also developed massively and the country presents some of the best opportunities for the foreign investors and the exporters. Named as one of the fastest growing as well as dynamic economies in the world economy, the India poses to be quite a rewarding option for the small and the medium enterprises or the SMEs. However, like other major economies, the Indian economy is not flawless and has its own shares of drawbacks.

The recession that affected most of the major world economies, compared to that, India did not suffer such a serious blow though many companies still have apprehensions on the back of their minds. However, all said and done, the situation is changing for the benefit of the country that is seeing more and more foreign companies with modern technologies and advanced products are entering the Indian markets and doing good business. India is being viewed by many as an attractive destination for their products as well as services that proves India is very much open to all kinds of foreign investments. However, many are of the opinion that in the present times, the private sector has the major contribution in the success and globalization of the Indian economy.

Different Indian firms are investing into development of infrastructure and advancing their manufacturing abilities. This together with the investments in the volume-based business models leads to the increase in the income as well as the consumption levels in the towns and the rural economies belonging to the country.

We will be discussing different features related to the Indian economy that can be explained as follows:

Entry into the market:
For any foreign company entering the market, it becomes very important for the company to find efficient agents and partners. This helps in achieving the initial hold in the Indian market. Due diligence must be initiated by the company in order to verify the credibility as well as the reliability of the partners. Moreover, having regular meetings with the agents and also maintaining personal relationships with them becomes utmost important. One can also utilize a subsidiary relationship, liaison, and joint venture with any Indian company or partner in order to venture into the Indian market. But because of the diverse geographical characteristics, doing business in the country can present a unique kind of a challenge. One should have a thorough knowledge of the local market and many times, this can be the defining factor of success of any foreign company.

Franchising in the Indian economy:
Having faced the economic downfall of the global economy, Indian happens to be one of the economies that is growing at a fast paced rates at 8% every year. This rapidity in the growth resulted in high disposable incomes for the overtly populated country. The country is enjoying unparalleled consumption boom. There is umpteen number of factors, which contribute to this increase in the consumption level which relates to change in the lifestyles, increase in the demand for foreign goods, growing demand, needs, and aspirations of the population as a whole are worth mentioning. Thus, as a result, the increase in demand leads to increasing demand for the franchises to penetrate into the market successfully.

Major challenges of the Indian economy:
Analysts have pointed out that the major drawback of doing business in India is facing the undeveloped infrastructure. The problems relating to roads, airports, education, railways, power system seem to be never-ending in the country. These loopholes have prevented the economy to justify its potential and worth. Though various liberalization reforms are being conducted in the technology, transportation and other key sectors in the country, the lack of a clear policy has prohibited critical investments from the private sector in the infrastructure department. Another barrier that proves to be very vital is the delay in implementing any kind of reforms. The Indian economy is embracing investors from the world platform, but the many number of tariff as well as non-tariff barriers still exist. Because of these high duties, many foreign investors are apprehensive of carrying business in full-fledged manner. To add to this, the tax system as well as the tariff customs are extremely confusing and are not at all easy to understand. All these coupled prevent the Indian economy to achieve its deserving success where foreign investments are concerned.


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