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India, A Fast Emerging Economy
The Foreign Direct Investments made by multinational companies involve a lot more than just the transfer of capital as it brings along the technologies of production, managerial services, and other business practices. For the underdeveloped and the developing countries, MNCs help in creating employment opportunities that solve one of the major concerns of unemployment. Inviting and making ways for multinational companies to operate in India will enhance the economic development of the country. The government’s initiatives for ‘Make in India’ and ‘Skill India’ campaigns and efforts to simplify the FDI regulations and easy India market entry strategy are certainly making ways for global companies to invest in India.
The integration of the domestic economy through the twin channels of trade and capital inflows has accelerated in the past, thereby leading to India’s GDP reaching at US$2.30 trillion in 2017-18. To be precise, India’s trade and external sector significantly had an impact on the GDP growth as well as expansion in the per capita income. Multinationals have been operating in India even prior to the Independence. Till date, there have been innumerable changes and additional benefits to the rules and regulations by the government of the country to make way for the multinationals. At present, established MNCs in India can-
- Increase foreign equity up to 51 percent
- Borrow money or accept deposits without the permission of the Reserve Bank of India
- Transfer the shares from one resident to another non-resident
- Disinvesting equity on stock exchanges at market rates
- Deal in immovable properties in the country
- Carry activities in trading, commercial or industrial areas
The foreign companies that are based out of India benefit from having a globally recognized brand and access to the technology. Not only is India one of the fastest growing countries in the world, but it is also going through a period of unprecedented economic liberation, whilst granting overseas investors more access to its vast and varied market.
India is a massive country with vast economic potential. However, traversing the diverse and complicated corporate landscape can be an intimidating task without the right assistance from a renowned management consultant on their side. No matter how successful foreign companies get in the Indian market, MNCs face a number of issues such as being at par with the current and future opportunities of growth in the market, government regulations, competition, entry barriers, sales and distribution channels, business culture, etc. while establishing their business in India.
India is a cultural hotbed, and the business is more about building relations than presenting figures and sums. The Indian culture can be difficult to adopt for MNCs and due diligence is important for companies before taking up the decision of setting up a business in India. Tecnova, the Indian market entry, and management consultant help global organizations understand the Indian market, focusing on developing the right India market entry strategy based on research and supporting the clients through the entire implementation phase to be able to penetrate the Indian market effectively and efficiently. Management consultants such as Tecnova assist foreign businesses in driving change through on-going competitive and market analysis. One of the major issues that foreign organizations face while entering the Indian market is the recruitment of the right talent to lead and grow their business. Another major task that is considered a hurdle by foreign businesses is that of acquiring new clients through roadshows, lead generation and techno-commercial seminars. Tecnova has tailored its services for direct and indirect market entry strategies. Pricing and competitive challenges in the Indian market make a huge impact on international business. Tecnova steps in to help major giants overcome the hurdles that they face while setting up their business in India whilst assisting its clients in their process of setting up and/or establishing their business in India in localizing, manufacturing, and trading across global markets. Tecnova helps its clients with the research and recommendation of the growth and demand for their products and services in the Indian market, along with the collection and validation of data, past experience of companies and their capabilities, and hence, successful implementation of the planned procedure. Tecnova helps global organizations overcome the basic barriers in the Indian market whilst setting up their business in the Indian market.
Reference Links-
Multinational Corporations of India : Characteristics, Growth and Criticisms
https://www.ibef.org/economy/trade-and-external-sector
https://www.tmf-group.com/en/news-insights/business-culture/top-challenges-india/[/vc_column_text][/vc_column][/vc_row]
