What you need to know about India if you decide to enter this market

Entering this market is quite long and can take up to 10 years. In this article, I will tell you what helps to establish cooperation with India.

Why India?

This country's economy is the fastest growing of the G20 countries. GDP growth for 2023-2024 is 7.6%, and its contribution to global economic growth, according to the IMF, is 16%. Investments in industry are also growing. India also has a fairly advantageous territorial location and access to Asian markets. But, despite the pace of development, decisions are not made quickly here.

Pitfalls and features of cooperation

India has a Make in India program, according to which foreign companies are not allowed to participate in tenders announced by state-owned companies if the country has its own manufacturer. Established production in the country will provide more opportunities for development.

The business culture in India differs from the rules adopted in Russia.

In India, physical presence is of great importance, especially for B2B companies. Without personal interaction, local partners will not trust you. What helped us? The process of establishing business relations with the local community accelerated after reaching a dealer, who became our guide. For manufacturers, a local dealer is not only a ready sales market and several hundred end customers at once, but also their own staff of experienced salespeople, an active service program, and extensive experience working with similar products.

Also, a woman is not always well received here as one of the parties to negotiations. But this is not the case everywhere and not always. A stricter rule is associated with signing documents. In many eastern countries, verbal consent does not mean an agreement, so I always recommend getting both parties to sign the contract.

Indians are polite and patient, and they expect the same from their business partners. The local population is not always punctual, but foreign partners are advised to arrive for meetings on time.

India is a fairly bureaucratic country, so allow more time for each stage.

Foreign companies in India can have high taxes - up to 40%. But there are ways to reduce export costs.

How to make export cheaper

Potential exporters should study government support measures before entering the markets of other countries. Below are several subsidies that an engineering company can use:

1. RF Government Resolution of 24.10.2018 No. 1269 Export subsidy. Subsidies for manufacturers of SDT to reimburse part of the costs in connection with the guarantee of the buy-back of products. The amount of the subsidy is up to 15% of the price of the equipment.
2. RF PP of 18.06.21 No. 931 Subsidizing part of the costs of R&D and homologation. Subsidies for homologation are bringing products into compliance with the requirements of the target foreign market (homologation). The maximum subsidy for one project to create competitive products is 900 million rubles, for homologation - 200 million rubles.
3. RF PP of 28.12.2020 No. 2316 Subsidizing part of the costs of enterprises associated with participation in international exhibitions.
4. RF PP of 28.03.2019 № 342 Subsidizing part of the costs of participation in exhibitions included in the list of international events.

There may be similar support measures in your area.

Conclusion

I am convinced that in order to succeed in any business, you need to turn to professionals. And in the case of entering the Indian market, there are several options: get advice from local specialists, for example, lawyers; talk to companies that are already working in this market; contact the sales representative of the Russian Federation in India.