There are advantages and also potential challenges for Northern Ireland companies doing business in India.
Advantages of doing business in India
- English widely spoken
- common legal and administrative history
- rising personal incomes creating a new middle class consumer market
- gateway to south east Asian markets
- fast growing economy with one of the world’s largest youth populations
- expanding emerging cities with more than 50 cities now over a million people
- availability of skilled, low cost workforce
- good network of banks, financial institutions and an organised capital market
You should also be aware of some challenges you could face when exporting to India. It is a large market to do business in which can lead to some unique challenges.
Challenges of doing business in India
India is a price competitive market. Government contracts are awarded to the lowest bidder who meets the technical specifications. Consumers often prefer lower prices to quality or durability.
India has seven major religions and many minor ones. The country has six main ethnic groups. As a result there are countless holidays which change depending on the year. Plan your visit carefully so it does not fall within a holiday period.
Other challenges include:
- barriers to trade and investment in some sectors resulting from regulatory constraints, local sourcing requirements, and import tariffs
- protecting your Intellectual Property (IP)
- risk of bureaucratic delays
- land acquisition can be difficult
- risk of bribery and corruption
- access to the right skills in the local workforce
- poor infrastructure, including distribution and logistics as much of India remains rural
- weather extremes with extremely hot weather in summer and wet weather in the monsoon season can affect business