Indian Market Entry


Indian economy is growing at a faster pace in comparison to other nations and has shown resilience in times of global financial crisis. Today, the Indian market with about 1 billion population has become a hub of opportunities for the foreign investors, who can clearly see the chances of massive growth and expansion here. The major sectors like environment, infrastructure, energy, transportation, defense and healthcare with their rising demands beckon them to India market entry.

Factors dominating India Market Entry

There are many foreign companies eyeing opportunities in India. For an entry into Indian market, they need to be careful about certain points to make it really big. These include:

The real worth of the Indian Market can be illustrated in the following manner:

  • Finding good partners who know local market well and are completely acquainted with procedural issues
  • Smart planning¬†India market entry
  • Identifying the target market
  • Promotion of products and services
  • Contacting apt agents and distributors

With these, the foreign investors also need to explore various market options in India that include forming subsidiary relationship or a joint venture with an India-based company. It also comprises setting up of a branch office or a liaison office.

Steps for India Market Entry

If you are planning to enter into Indian market, you need to take into account several important steps. These steps are:

  • Identifying potential of the particular market in India
  • Developing a fair knowledge of the market
  • Creating strategies for market entry

While venturing into Indian market, it is very important for any investor to develop a basic knowledge of the potential of the concerned market in India. This process, in turn, should be supported by a sound market entry strategy. The job does not end here. It requires proper implementation also for desired results.

However, there are some obstacles as well on the path to the market entry in India. You will have to be well prepared to tackle them. The possible impediments are:


  • Rigid and complex social framework
  • Indian Bureaucracy
  • Infrastructure issues

India is a nation with diversified cultures and hence it is difficult to implement any major change in social structure or introduce financial reforms unanimously. However, the outlook is gradually changing and government is pushing hard to make effective changes. Efforts are being made to cut down on the red-tape.

There are certain infrastructural issues that also need to be resolved as fast as possible. Poor road conditions and shortage of power supply are some of the infrastructural problems in India. However, government is adopting useful measures in these areas as well to attract foreign investors to the nation. It has approved eight highways projects that will need an investment of Rs 10k crore.

Hence, with steps being taken up to improve situations, it is most likely that an entry into Indian market will no longer remain a tedious and long-drawn process.

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