Common Risks of Doing Business in India:
The biggest risk for Western companies entering India is lack of preparation. India offers huge rewards to executives and companies that take the time to understand and respect it business culture but can be frustrating to those who think that they can make a quick buck there. Starbucks and Apple first faltered as they considered India plans and many others like Mary Kay Cosmetics decided to exit India after investing millions. To prepare effectibvely, read the five-star rated book by Amritt’s founder, Doing Business in 21st Century India.
The second risk is to assume that India is like China or Japan or another Asian country. The business culture of South Asia is distinct from the rest of the continent. With 23 official languages, India is more like a continent than a country. For example, Punjabis from Ludhiana in the north function very differently from Malayalis from Kochi in Kerala. You can compare and contrast India with China and America here
The third risk with India is impatience. If you are not committed to success in India, don’t bother to start. It’s a marathon not a sprint. Few companies succeed without major setbacks in India and most companies experience some serious surprises despite the best preparation.
For foreign companies getting started in India, the fourth major risk is losing your key talent. In a growing economy, the competition for top talent is intense. Also if your team in India starts to feel that the corporate headquarters is not sympathetic to their unique concerns and worries, they become disenchanted more readily.
Many other risks are specific to the company, the industry, the location and the state of the competition. It’s best to see bi-culturally savvy guidance to identify, manage and mitigate the risks of doing business in India.
We hope that our Doing Business in India Guide will help answer some of the routine questions we get asked. Please Contact Us at Amritt, if you need more in-depth assistance when looking to do business with India.
