Income has increased in recent years and millions of Indians have been lifted out of poverty. 

India has a distinct comparative factor advantage as a vast reservoir of skilled manpower. The demographic differentials reveal that over the next 20-30 years, India has distinct advantages in a population profile concentrated in the younger age group, where many new opportunities can be fully optimized. 

With a huge population, India is for sure one of the biggest markets for businesses globally. India has been amongst the fastest-growing economies of the world over the last decade. And it is likely to continue on a high growth path for the next decade or two. The government has stated its objective to make India a 5 trillion-dollar economy (double the GDP of India) by 2025.

High growth in the economy is having an impact on the per capita growth of the population and hence increasing the purchasing power of the country. Global companies are investing heavily to build products made for Indian conditions to tap into this opportunity.

Even though we are a 500 million internet users’ country, we still sub 40 percent in internet penetration. This shows that there is a huge upside and growth opportunity ahead of us. The domestic start-up ecosystem has matured, and a variety of business models are becoming viable as gradually consumers are willing to pay/sample newer products. All these factors make India a very attractive market for global start-ups across sectors like fin-tech, consumer technology, e-commerce, ed-tech & more. A multitude of companies & funds from North America, China & Europe are looking at this as a growth opportunity over the next decade.

Global start-ups can make the most of a high-quality workforce with a strong work ethic to set up facilities like manufacturing, R&D, innovation centers, and technical support for global operations.

The numbers bear out India’s changing face; 40% of the growth champions come from Bengaluru, Mumbai, Hyderabad, and Delhi, while Tech (21%), Industrial Goods (13%), Food, Beverage & Restaurants (8%), Construction & Property (7%), and Financial Services Companies (7%) make up a majority of the mix.

The opportunities offered by India are immense, making it a dream destination for international brands and start-ups. 

Requirements for India Market Entry

For the International brands willing to expand their presence to the Indian market needs to take care of the following:

1. Completing company-specific and product-specific regulatory compliances

2. Setting up a registered office in India, or having representation in the Indian market for support, demos, and company introduction to potential customers

3. Firming up the right strategy for the market and setting up distribution channels/warehousing/logistics partners for product fulfillment.