India, among the European investors, is believed to be an excellent investment in spite of political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents an enormous potential for overseas investment and is enthusiastically encouraging the entrance of foreign players into the market. No company of any size, aspiring to be a international player can for long pay no attention to, this country which is expected to become one of the top three emerging economies.
Success in India will depend on the accurate estimation of the country's potential, dryness of its complexity or overestimation of its possibilities can lead to failure. While scheming, due consideration should be given to the factor of the inherent difficulties and uncertainties of functioning in the Indian system. Inflowing India's marketplace requires a well-designed plan backed by serious thought and careful research. For those who take the time and look to India as an opportunity for long-term growth, not short-term profit- the expedition will be well worth the effort.
India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the third largest GDP (Gross Domestic Products) in the whole continent of Asia. It is also the second largest among promising nations. (These indicators are based on purchasing power parity.) India is also one of the few markets in the world which offers high prospects for growth and earning prospective in virtually all areas of business. Yet, in spite of the virtually unlimited possibilities in India for overseas businesses, the world's most populous democracy has, until fairly recently, failed to get the kind of enthusiastic attention generated by other emerging economies such as China.
The cause being, after independence from Britain 50 years ago, India developed a highly sheltered, semi-socialist autarkic economy. Structural and bureaucratic impediments were dynamically fostered, along with a distrust of foreign business. Even as nowadays the climate in India has seen a sea change, smashing barriers and actively seeking foreign investment, many companies still perceive it as a difficult market. India is rightfully quoted to be an unparalleled country and is both frustrating and challenging at the same time. Foreign investors should be equipped to take India as it is with all of its difficulties, contradictions and challenges.
Developing a basic understanding or potential of the Indian market, envisaging, developing a Market Entry Strategy and implementing these strategies requires actually entering the market are three basic steps to make a successful entry into India.