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    Setting Up Business in India

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    Johny Kurubila
    The document provides an overview of the Indian economy and foreign investment opportunities in India. It notes that India has a large population with a growing middle class, mature financial markets, and encourages foreign investment across sectors. Automatic approvals are available for certain levels of foreign ownership. Several reasons are listed for India being an attractive destination for global businesses, including low labor costs, growing cities and infrastructure, and potential for job creation. Examples are given of major American and multinational companies that have established successful operations in India. The document also discusses some foreign companies that have acquired Indian companies and examples of collaborations between foreign and Indian companies.

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    Setting Up Business in India

    Uploaded by

    Johny Kurubila
    41 views5 pages
    The document provides an overview of the Indian economy and foreign investment opportunities in India. It notes that India has a large population with a growing middle class, mature financial markets, and encourages foreign investment across sectors. Automatic approvals are available for certain levels of foreign ownership. Several reasons are listed for India being an attractive destination for global businesses, including low labor costs, growing cities and infrastructure, and potential for job creation. Examples are given of major American and multinational companies that have established successful operations in India. The document also discusses some foreign companies that have acquired Indian companies and examples of collaborations between foreign and Indian companies.

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    Indian Economy

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    The document provides an overview of the Indian economy and foreign investment opportunities in India. It notes that India has a large population with a growing middle class, mature financial markets, and encourages foreign investment across sectors. Automatic approvals are available for certain levels of foreign ownership. Several reasons are listed for India being an attractive destination for global businesses, including low labor costs, growing cities and infrastructure, and potential for job creation. Examples are given of major American and multinational companies that have established successful operations in India. The document also discusses some foreign companies that have acquired Indian companies and examples of collaborations between foreign and Indian companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    41 views5 pages

    Setting Up Business in India

    Uploaded by

    Johny Kurubila
    The document provides an overview of the Indian economy and foreign investment opportunities in India. It notes that India has a large population with a growing middle class, mature financial markets, and encourages foreign investment across sectors. Automatic approvals are available for certain levels of foreign ownership. Several reasons are listed for India being an attractive destination for global businesses, including low labor costs, growing cities and infrastructure, and potential for job creation. Examples are given of major American and multinational companies that have established successful operations in India. The document also discusses some foreign companies that have acquired Indian companies and examples of collaborations between foreign and Indian companies.

    Copyright:

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    Download as DOC, PDF, TXT or read online from Scribd
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    of 5

    INDIAN ECONOMY-AN OVERVIEW

    India is world's largest democracy & among the strongest emerging markets in all
    business field. India now is a liberalized economy with 1.5 billion people with 300
    million in the middle class bracket. We have well matured financial and securities market
    and time-tested judicial systems.

    We are also a WTO member committed to providing opportunity to the global market.
    The Indian Government is constantly undertaking reforms in every sector with
    Infrastructure Sector receiving Government's fullest attention. India now permits foreign
    investment virtually in every sector of the economy. Majority foreign equity, even upto
    100 per cent in some sectors, is encouraged and special investment incentives are
    provided in areas such as power, hydrocarbons, softwares, electronics and export oriented
    undertakings.

    Foreign investment up to 50, 51, 74 and 100 percent in priority industries/activities, is


    eligible for automatic approval by the RBI. Automatic approval is also available for
    holding equity up to 51 per cent in trading companies engaged primarily in export
    activities. In addition, 100 % Export Oriented Units (EOUs) and units set up in
    designated Export Processing Zones (EPZs) are eligible for automatic approval provided
    they satisfy stipulated criteria. Foreign technology agreements are also eligible for
    automatic approvals within certain limits. India has 5 major metropolitan urban centers
    growing @ 2.1 % p.a India's urban population is 218 million as of 2002, and expected to
    be 500 million by 2012:

    Indian economy has a favorable business environment in India

    Set up business in India

    Indian economy is on the spree of encouraging foreign companies to penetrate Indian


    markets. Setting up of business in India has now become simpler compare to earlier
    years of closed economy. The Indian markets are, as on date rated a one of the most
    vibrant markets from expansion of business point of view. India’s dynamic and highly
    competitive private sector has long been the backbone of its economic activity and offers
    considerable scope for foreign direct investment, joint ventures and collaborations.

    Setting up business in India requires an entrepreneur to streamline the line of thinking


    as to the ownership pattern. Depending thereon, the format of business is decided. The
    source of investment is also equally important that will decide the further benefits arising
    out of multi bilateral treaties with other countries. The Government of India offers many
    opportunities to multinational companies to venture in India be it software, retail,
    telecommunication, infrastructure. Investments in all these sectors are governed by the
    relevant rules and regulations promulgated from time to time. Indian market is most
    favoured because 70% of the population is still untapped which is a big number.
    India has become a favorite destination for business houses world wide for the following
    reasons:

    • Large pool of educated low manpower cost in India

    • Significant lifestyle and standard of living

    • Cities with world class integrated infrastructure recognized as necessary drivers of


    Indian economy's growth

    • India has potential to attract more then US $ 100 billion over next five years

    • Export Oriented Sectors alone to attract US$ 11 billion investments

    • Increase in FDI will lead to increase in GDP

    • Potential for creation of 1 Million direct and indirect jobs each year

    2. Foreign Companies that started their operation in India

    List of American Companies in India

    There are a number of American companies in India which have been doing business
    successfully over the years. Following are some of the popular American companies in
    India:

    • Agilent
    • Agro Tech
    • American Express
    • Amway
    • Avaya
    • Caltex
    • Caterpillar
    • CB Richard Ellis
    • Cisco
    • Citigroup
    • Coca Cola
    • Cognizant
    • Colgate Palmolive
    • CSC
    • Cummins
    • Discovery
    • Dupont
    • EDS
    • Eli Lilly
    • Emerson Electric
    • EXL
    • Federal Express
    • Ford
    • Franklin Templeton
    • GE
    • General Motors
    • Gillette
    • Honeywell India I
    • BM
    • Intel
    • Johnson & Johnson
    • JPMorgan
    • Kellogg India
    • Kimberly Clark
    • Kodak
    • McDonalds
    • Metlife India
    • Microsoft
    • Morgan Stanley
    • New York Life
    • Ogilvy and Mather
    • Oracle
    • Pepsico
    • Pfizer
    • Pizza Hut
    • Sun Microsystems
    • Texas
    • Tecumseh
    • Timex
    • Tyco
    • UPS India
    • Visteon
    • Whirlpool
    • Xerox Modicorp

    List of Multinational Companies in India

    The list of multinational companies in India is ever-growing as a number of MNCs are


    coming down to this country now and then. Following are some of the major
    multinational companies operating their businesses in India:

    • British Petroleum
    • Vodafone
    • Ford Motors
    • LG
    • Samsung
    • Hyundai
    • Accenture
    • Reebok
    • Skoda Motors
    • ABN Amro Bank

    1. Cutting on Collaboration of foreign company working in India

    Between 1954 and 1957, two refineries were built by Burmah-Shell and Standard-
    Vacuum at Bombay, and another was built at Vizagapatnam by Caltex. During the same
    period the companies found themselves in increasing conflict with the government.

    The government came into disagreement with Burmah Oil over the Nahorkatiya oil field
    shortly after its discovery in 1953. It refused Burmah the right to refine or market this oil
    and insisted on joint ownership in crude production. Burmah and Standard-Vacuum then
    temporarily suspended all exploration activities in India.

    3. Foreign Companies that have taken over Indian Companies


    Two years ago the leading Indian company Ranbaxy was acquired by the second largest
    Japanese drug company Daiichi Sankyo to establish itself globally in the generics,
    keeping in view of the due expiry of the patent molecules.

    Piramal Health Care, another pharma company of Indian origin has


    been taken over by Abbot of U.S.A. and many more are in pipeline.

    4. Collaboration of Foreign Companies with Indian Companies


    There have been tie-ups between MNCs and domestic companies including
    GSK’s link with with Dr Reddy’s; Pfizer with three companies - Aurobindo, Strides
    Arcolab and Claris Life Sciences
    Abbot with Cadilla Health Care
    Astra Zeneca with Torrent
    Bharti with wal-mart.
    TATA MOTORS Acquired JAGUAR and LAND ROVER from FORD MOTORS

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