5 Tips For Foreign Business To Plan Their India Entry Strategy

A large number of foreign investors are interested in setting up business in India. The country is one of the biggest economies in the world with a robust market and large workforce. However, foreign companies must plan their India entry strategy carefully before embarking upon a venture. There will be tough competition from local rivals apart from the fact that the average Indian customer can be hard to please. India can be described as a continent within a country. It is a land with diverse geographic conditions as well as cultures. Enterprises have to consider physical conditions as well as various cultural sensitivities while promoting and marketing their products. The following tips will help overseas entities looking to get a foothold in the nation’s markets.

1. Identify Suitable Partners For The New Venture

Foreign enterprises can start a wholly owned subsidiary in sectors where 100% Foreign Direct Investment (FDI) is allowed. However, the preferred option for most of them is creating a joint venture with a local partner. This gives them access to existing infrastructure and distribution networks of the Indian partner who can also help them with the legal formalities of beginning a new commercial entity. Investors must look for an associate who has significant experience in the field they are entering. An established company will help them in understanding the local business environment and regulatory framework. It will be pertinent to conduct due diligence to assess whether a prospective ally is trustworthy or not.

2. Be Aware Of The High Price Sensitivity Of Local Customers

India is a unique market in the sense that the tried and tested strategies practiced in other locations will not necessarily work here. One of the biggest reasons for the failure of many overseas ventures is an inappropriate pricing strategy. The local customer is extremely sensitive to prices and corporations have to keep this factor in mind while finalizing the cost of their items. Even a minor difference in theirs and a rival’s prices of similar products can make or break fortunes.

3. Customize Products According To Local Tastes

As mentioned earlier, India is a vast land with diversities in various aspects. It is essential to customize the products according to the tastes of the local audience. However, the one size fits all approach will never work here. What is suitable for the northern parts of the country will not be effective in the southern states. It is essential that businesses first identify their local target customers. Then they must use local resources to understand their behavior and modify their services accordingly. This is one of the most vital points to be kept in mind while planning the India entry strategy.

4. Do Not Expect Quick Short Term Results

The country’s markets are not suitable for investors looking to make a quick fortune. Only those who are prepared to dig in their heels and wait for some time must make investments here. The vast market size, intense competition, and lower prices mean that businesses have to be patient in order to generate good returns. The complex market may also cause the initial strategies to fail. Overseas ventures must make arrangements to absorb the impact of these factors. Once they gain a strong foothold in the country, they will definitely reap rich rewards.

5. Understand The Legal Framework Of The Country    

India has codified, effective laws but their application is an entirely different matter. The nation does not have a great track road in implementing vital regulations like IP laws. The under-staffed judiciary has also led to a huge backlog of pending cases. The alternative dispute resolution mechanisms are also not that effective. Businesses must understand the legal environment of the country before entering local markets.


It is necessary that overseas investors make a blueprint for their India entry strategy. They must approach the top law firms in India for this purpose as such agencies have experts with in-depth knowledge of local business conditions, legal framework, and culture.  

Author Bio

Amy Jones has been serving as an experienced legal expert in Ahlawat & Associates. She is a passionate writer and always on the lookout for opportunities for sharing her knowledge with legal community. Follow her company on various social media networks like: Twitter and LinkedIn.

5 Tips For Foreign Business To Plan Their India Entry Strategy
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Ajay Verma

Ajay is a Computer Geek, Internet Entrepreneur, Blogger, Day Dreamer, Business Guy, Fitness Freak, Music Lover and Digital Marketing Specialist. He also helps companies to grow their online businesses. At Foggy Hub he Writes about Blogging, WordPress, SEO, Business, Technology and Computer Tips and Tricks.

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