3 key Lessons for Doing Business in India

Samantha Schmidt, The Business Journals for HSBC

India has the world’s second-largest population and a booming economy, so it only makes sense that U.S. companies want to learn how to do business there. But with all of India’s opportunities come several distinct challenges for U.S. companies that want to enter the market.

Here are three key lessons for doing business in India.

Catering to Indian consumers:

India has a population of more than 1.2 billion people, but many of them are low-income and live in rural regions. This has caused many Western companies to make substantial changes to how they usually do business, Haley said.

For instance, companies such as London-based Unilever have adjusted their packaging to offer their products in single-use package sizes – an ideal marketing strategy for low-income consumers.

Indian consumers can also be rather sensitive when it comes to food services, Haley said. Since 80 percent of the population is Hindu — and many Hindus abstain from beef — companies need to avoid anything that resembles a beef or beef bi-product in their food.

Infrastructure/shipping:

Western companies often fail to focus enough attention on making sure proper infrastructure is available for their needs in India. More than a decade ago, India unveiled the Golden Quadrilateral highway system, which wraps around the country’s circumference, but only a small portion of it carries four-lane traffic.

The primary concern with Indian infrastructure is its port system. Many ports in India do not have water deep enough to run efficiently. Shipping products requiring refrigeration or heating can also be problematic, Haley said, because many ships may not have the necessary capacity.

 Companies need to make sure the port they are using is equipped properly for their products, and is conveniently located for their investment.

 Working with the government

Like many Asian countries, India’s state and provincial governments often hold considerable power. Companies need to work with these governments to get deals approved, and they need to make an effort to show government officials their projects will be bring jobs and taxes to the region.

First Meeting of the Presidential Ambassadors for Global Entrepreneurship

BY  for http://www.inc.com/

Their goal will be to help foster a culture of entrepreneurship, innovation, and the creation of startups at home and abroad.

“America’s entrepreneurial spirit has always been a key driver of our economic growth and success,” Pritzker said in a statement today. “Through this group, we will take what we know about transforming innovative ideas into thriving companies and share that knowledge around the country and the world.”

Here’s a list of the entrepreneurs who will serve as advisors:

Rich Barton, co-founder and executive chairman of Zillow

Tory Burch, CEO, Tory Burch

Steve Case, chairman and CEO, Revolution Capital

Helen Greiner, founder and CEO, CyPhy Works; CoFounder, iRobot Corporation

Reid Hoffman, co-founder and executive chairman, LinkedIn

Quincy Jones, CEO, Quincy Jones Productions

Salman Khan, founder and executive director, Khan Academy

Daphne Koller, co-founder and president, Coursera

Hamdi Ulukaya, founder and CEO, Chobani

Nina Vaca, CEO, Pinnacle Technical Resources (an Inc. 500 company)

Alexa von Tobel, founder and CEO, LearnVest

“There’s no way to overstate the importance of entrepreneurship, especially as business continues to break through borders and language,” Pinnacle Technical Resources CEO Nina Vaca said in a statement. “This initiative proves that the dream of starting a business is a viable one, to domestic and international would-be entrepreneurs.”

The U.S. Department of State and the U.S. Agency for International Development are partners in the new group.

U.S. North Korea Sanctions: Treasury Official

By Lee Chi-dong for Yonhapnews

The U.S. government will keep imposing tough sanctions on North Korea in a bid to press the communist nation to adopt a policy of denuclearization, a senior Treasury official said Friday. “What we are going to continue to do is to implement the sanctions programs that we have in place, which are focused on North Korea’s efforts to develop its nuclear program, as well as North Korea’s other illicit activity,” David Cohen, Treasury undersecretary for terrorism and financial intelligence, said at a congressional hearing.

UK Prospects Beat Global Economy

Jamie Dunkley for The Independent

The quarterly Deloitte poll of chief financial officers  shows that 95 per cent believe the prospects for the UK have improved over the past half year.  However, the net percentage who felt the same for emerging market and developing economies was minus 52 per cent. More than half said that eurozone prospects were on the up, against 70 per cent who liked the look of the business environment in the US.

This marks a shift from previous years when emerging markets were seen as the driving force of global growth.

Ian Stewart, chief economist at Deloitte, said:  “The default position of large corporates in the past six years – bullish on emerging markets, cautious on developed markets – seems to be reversing.”

The survey found that finance directors’ appetite for risk has reached the highest level since the survey began in 2007, before the financial crisis. More than two in three said that now is a good time to take risk on to their balance sheets. A net 81 per cent expected UK corporates to increase hiring over the next year and four-fifths expected more investment.

The 126 finance directors surveyed included respondents from 27 FTSE 100 and 45 FTSE 250 companies.

Cost of crisis: Banks pay out £28.5bn

The big banks have paid out £28.5bn in fines and litigation costs since the onset of the financial crisis, hitting the value of their assets by 25 per cent, it emerged today.

Mis-selling and Libor rigging are just some of the scandals to have hit lenders such as Barclays and Royal Bank of Scotland over the past five years. Accountant KPMG claims that 80 per cent of the profits made by the five largest UK banks last year went towards remediation costs.

 

World Bank Loans Egypt $300m to Support Small Businesses

Source: http://english.ahram.org.eg

Fund to target over 130,000 small businesses in marginalised areas and boost youth and women’s access to economic opportunity.

The World Bank has approved a LE2.1 billion ($300 million) loan to Egypt for a project targeting small businesses in more rural and underprivileged areas, the bank announced on Tuesday.

In Egypt, small and young enterprises are the main source of new job opportunities, generating more than 85 percent of jobs in non-agricultural private sectors, and representing 40 percent of total employment.

“The project will reach out to remote, rural and underprivileged areas in Egypt,” said Sahar Nasr, the World Bank’s lead economist and project team leader.