India business unpredictable: rain forced foreign companies to relocate

Doing business in India has always been unpredictable and challenging i.e. most Indian business are expending abroad. Perhaps Enron case was the best illustration about the frustration foreign businesses face in India.

Doing Business in India & understanding pitfalls
Doing Business in India & understanding pitfalls

However foreign businesses including UKBIC are more adventures and bets big on India though many confused with the slow response of authorities and unpredictability in case of any natural clamity.

More than 10 years ago Goldman Sach invented the terms BRICS and was betting big on India while suggesting their clients about the big business potential in India however lately after a decade of working in India, they realized that they were earning only around 0.25% of their profit margin from Indian market and decided to exit many business areas in India.

Similarly couple of years ago Vodafone with 140 million Indian customers were working on Zero operating profits and confused how to raise their profits.

In addition to corruption and confusing rules, India lack basic infrastructure and the result is that during slightest heavy rain, everything clogged in India.

The latest evidence is that a bit of excess rain in Chennai forced several multinational companies to relocate their employees which is discouraging for foreign investment as it is adding to already existing many unpredictability.

Tech giants such as IBM and Cognizant are busy relocating their staff and if companies get involved in all these operations, when would they do business?


If Indian government is seriously interested in inviting foreign investment in the country perhaps they first need to improve crippled infrastructure.


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