It is never an easy task to set up a business in a region where you have a population of different ethnicity and beliefs. India is one of the toughest markets to crack in the world. We have some examples of LPG (Liberalisation, Privatisation, Globalisation) policy in India that attracted MNCs to enter to Indian consumer market directly and serve the consumers. Those MNCs who used to serve the world with the same policies had to change their practices as the Indian consumers were not satisfied with the products they served.
We are not here to discuss those policies or have a discussion on the policies we had in the past. This article will be about the current business environment in India and the changing business trend as well, which has motivated many smart individuals to stay back in their homeland.
Changing Business Culture
India is going through a period of unusual economic freedom and is opening many consumer bases for international companies. However, it is a notoriously difficult place for business and local aid on board is the key to unlocking the country’s huge economic potential.
India is a huge country with huge economic potential, but breaking through the diverse and complex business scene can be a daunting task without the right help on board.
India is not only one of the fastest-growing countries in the world it is also going through a period of unusual economic freedom, which gives foreign investors greater exposure and access to a wider and more diverse market than ever before. A large, young population and a strong export sector are waiting for the expansion of companies with a potential consumer base that exceeds most other developed and developing countries. developed world.
Political power and a broad consensus on reform are also important features of corporate expansion, and a well-developed banking system and a strong capital market support the maturity of the financial system. But doing business in India can still be a daunting endeavor and local assistance can affect the success of your business.
Need for Ease
Creating a Trillion Dollar economy is not an easy task for the government, which has to deal with enemies on the international boundaries and a set of the population, that is underskilled as per the market need. Taking into consideration, the government initiated a skill India mission to train the youth with essential industry-required skills and knowledge.
Later, the Government Of India has called foreign investors and institutes to set up their operations and manufacturing units in India to generate employment for the skilled and unskilled labor force. Foreign entities were hesitating to enter India as the business environment was not that favorable as compared to India’s counterparts like China and ASEAN countries.
The procedure to get a license for the business and getting clearances from various departments was a hectic process for every small entrepreneur. The government tried their level best to make the process convenient and quick to create an environment where every business creator will have the confidence of creating an MNC.
India has been competing with China in trade for several years but never had a chance of getting near to China in terms of creating factories that could produce almost every product that the world needs. China’s created Covid19 virus & India-China standoff that took place in Ladakh, union territory of India gave rise to strict policies against China.
The world was already in search of shifting their base from China’s world factory as it was getting worst in trade with China. The Indian government introduced PLI (Production Linked Incentive scheme) to give a boost to the electronic hardware manufacturers in India and attract more manufacturers to invest in India and reduce dependency on China’s manufactured electronic items.
Yes, India has managed to create an environment where you can start a business and run it successfully. Not just the Union government but some state governments even contributed to keeping the business environment competitive and healthy. There’s always some room for growth and it needs contribution from young creators as well.
-By Parag Ahire