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34
India-EU: Creating Market Alliances
Operational Advantages
Low Cost along with Ever-Growing Consumer Base gives India a Distinctive Operational
Advantage
India’s Operational
Advantage:
Economies of Scale
Low Cost Benefit
PPP Business Model
Subsidies through
SEZs
35% of the respondents
expect an ROI / IRR of 15-
18% by the end of 2-3
years in India
In the last decade, India has become an important business
destination for various overseas companies. In the recent past
various EU Wastewater companies have entered India to benefit
from the immense Operational Advantages on offer.
Following are the Major Advantages that India offers:
Economies of Scale: India offers an immense target base for
various EU companies in waste management sector. The
country’s increasing population and urbanisation keeps the
target market growing, an opportunity that overseas companies
can tap and thereby increase their sales volume and benefit
by achieving Economies of Scale
Low Cost Benefit: The overall cost of doing business in India
is much lower, ~30-50% lower, than conducting business in
Europe, due to cheap labour and other input costs. EU
companies will reduce their overall cost of operations with an
India presence.
Public Private Partnership Business Model: The
government has been promoting the PPP model in waste
management sector. EU companies can conduct business
through the PPP channel and benefit from reduced cost and
availability of low cost capital. This would significantly reduce
their operational cost and ease business operations.
Subsidies through Special Economic Zones (SEZs):
Government offers tax breaks to companies (domestic and
foreign) for setting up units in SEZ. Some of these subsidies
include tax rebates, fiscal incentives, and lands at
subsidised rates. EU companies can follow this investment
route and avail various attractive schemes.
Reference: Dr. D.D. Basu, Sr. Scientist, CPCB
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