LINKS - COBCOE

14
feature
In today’s competitive world, firms
have to constantly look for new
strategies and markets to generate
revenue and grow business. We all
know that entering new markets is
never an easy option. There are many
challenges for European businesses in
deciding whether to enter any overseas
market - let alone one as complex as
India. However, for one simple reason
alone they should look to India, which is growing at almost
10% whist Europe is growing at below 1%.
Europe needs to find quick solutions out of the current
economic crisis, but I also believe that Europe should have
greater urgency about scaling up its trade and investment
links with India. In the end, Europe can only keep tightening
its belt for so long. Eventually there will need to be fresh
growth, and India is able to provide it.
France has successfully sold high-end brands like L’Oréal
and Dior into the Indian market, Germany has sold vehicle
parts to Indian auto giants, whilst the UK is helping to
design new Indian airports. But the European footprint in
India is a fraction of what it could be. This financial crisis
teaches us that European countries need to look beyond
just trading and investing with each other, and India is an
opportunity we can no longer afford to miss.
photo: www.shutterstock.com
Europe should look East
to balance the books
Dynamic and complex India
We all know that India has a dynamic workforce and a
domestic economy which occupies 87% of its overall
activity. It has developed financial, professional, legal and
corporate services sectors which, while they should be
liberalised further, have sustained and nurtured impressive
economic development to date. It is a vibrant, multi-cultural
society and is famously the world’s largest democracy. It
is widely accepted that India will evolve into the world’s
second largest economy by the year 2050.
By
Richard Heald
CEO, UK India
Business Council
Given its size, however, India should not be seen as one
market but a series of interconnected regional markets
where the legislative and investment climate may change
from one state to another. Gujurat and West Bengal sit on
opposite ends of the political spectrum, while Noida and
New Delhi, although only a few miles
apart, operate in different states.
When choosing a location, investors
must compare local laws, government
incentives, the local infrastructure and
workforce. Often it is also crucial to
find the right partner for your product
or service.
Trade barriers
Eventually
there will need
to be fresh
growth, and
India is able to
provide it
It is often believed that trade barriers
in India remain the main obstacle for
businesses. In fact, India has come
a long way since 1991 when its finance reforms began.
Today, 100% FDI is permitted in most sectors. In addition,
the Government-to-Government deliberations between
Indian and many European countries are working all the
time to create a beneficial investment climate.
In the UK, we help companies both understand and do
business with India. We do this by providing information
on specific industries and by developing themes and
opportunities around which companies can congregate/
participate. Last year we spoke to some 1500 companies in
the UK. This year the number will be higher.
photo: www.shutterstock.com