Winning in India event was hosted by FTI consulting and UKIBC held in London on June 1st, 2016. Experts panel shared their views & experience on how to do business in India.
Former Labour Minister Rt. Hon Patricia Hewitt raised the issue of various challenges of doing business in India which many businesses has raised in the past.
Ms. A Jungla Jamir (First Sectary Economics) highlighted the point that India is a very young country with lots of potentials to invest. For example, India is running the largest renewal energy project in the world. Efforts are being made to bring IPR policy in line with World bank guidelines.
Up to 100%, FDI is allowed in many plantation areas, medical devices. FDI up to 49% is allowed in the pension sector.
Mr. Bugga from FTI consulting admitted that corruption is certainly an issue in India, however, the results of reforms are started to showing in India.
He highlighted the need for investor protection mechanism in India. He also shared an example where a European bank ended up financing a India based company which was to set up a project in Africa which was actually a fraud and European bank actually handed 100$ for the purpose.
Another example was of AAP party whose winning highlight the corruption in India and how citizens are fed up with that.
Anuj highlighted the risk and said before investment it is better to check:
Political patrons, etc.
Steve Buckley from (OCS) Outsourced Client Solutions shared the informative experience such as the fact that in India 51% control doesn’t give you control over the business.
One need 76% stake in any company to get control over any business.
He also highlighted the challenge in Indian business stating that most Indian businesses are family owned businesses and the moment foreign buyers increase their stake,
Indian partners interest goes down.
He emphasised that developed markets are saturated nowadays and India is a very big and attractive market in the future i.e. OCS has 25000 strong work force in India.
On the audience (Prof Nazmal Hasan) question about Brexit and its effect on India UK business, Ret. Hon Patricia Hewitt shared her insight. She said, “uncertainty effect of Brexit in terms of domestic and foreign investment in the UK are very real and would have damaging effect on investment“.
Another relevant issue was raised by Kavitha Ravikumar from HB Fuller about the skill gap in India. She cited that ” there are plenty of engineering graduates but a lack of good vocational training in terms of practicality. Multinational companies have the resouces to train their staff however it is the small and medium size companies suffers because of the skills gap”.
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