The Indian business environment provides a number of opportunities to foreign investors. These include cheap resources, skilled talent, a massive national market (population 1.2 billion) and a middle class exceeding 350 million with increasingly stronger purchasing power, and one of the youngest populations in the world.
India boasts one of the most diverse populations in the world. With a democratic political structure, a free press, and a judicial system, which despite being slow is known tobe robust.
India today has shown the capacity to absorb the global financial crisis ripples, and is characterised by:
The nature of the Indian business environment is changing rapidly. As the Indianeconomy grows, businesses are facing critical issues such as growing competitionand increasing pressures to attract and retain talent. Pressure for further reforms; developments in infrastructure; divestments in the public sector; delays in the approval ofproposals of foreign direct investments; union policies and practices, can all have an impacton business.
India has thousands of miles of coastline and a diverse topography, bordered by unstableneighbouring countries and border controls, can be prone to illegal immigrants. Potentialinvestors need to devise project plans and strategies that incorporate more than simple‘business-oriented’ steps. The key to success in India lies not only in the investor’s own business competencies, but on how best they understand and efficiently function in the business context, which is ingrained into the unique socio-cultural, political, legal and economic milieu of India.
For further information visit the Aston India Foundation for Applied Research (AIFAR) webpages or download issue 2 of Aston Advances.