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Growth opportunities in India
Strategic pathway for American corporations to enter the Indian market

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Much has been made of the offshoring of American (and from other countries in the developed world) jobs to India.  The reality is that considering the size of the US economy, the impact is not material.  The reason it seems significant is that the US economy is still in deep trouble due to a structural realignment underway that could take another 3-5 years.  (Related article:  Offshoring forecast to grow 50% a year)

We forget that we have been offshoring jobs for decades now; this time the difference is that the jobs that were offshored belonged to people who had a voice.  When we sent manufacturing jobs overseas in the past, a local newspaper may have highlighted the plight of families that got into distress but the elites (who control the national media) did not find the stories juicy enough.  With some white-collar jobs sent overseas, the situation is different.  Availability of tools like websites and blogs, it seems as if the world is coming to an end for American workers.  We at iProceed see things differently.  Our research is showing that the investments being made in India by companies from the developed world and the improvement in incomes of educated Indians create tremendous business opportunities not just for American companies but also for Americans who are among the best in the world when it comes to entrepreneurial spirit.

Why is India an attractive market?

  • The base at which India is starting is very small.  Think of the United States in the sixties.  In some parts of India, think of the United States almost two hundred years ago.  Or in other words, everything will simply go up.  (Related:  India hype)
  • A huge population with some estimates putting the  middle class at approximately 300 millions (using the purchasing power parity estimates).
  • Fascination with anything "foreign", comfort factor with western culture/products, and lack of obsession with "Indian" (something that made it so hard for American companies to succeed in Japan).
  • Existence of the foundations of a democratic society and legal framework.
  • Educated workforce with excellent command of English language.
  • Return of Americanized Indians to India (what Indians are now calling as "brain gain" as opposed to the "brain drain" of the 80s and 90s that brought the smartest Indians to the US) who are now ready to help American companies do business in India in "American style".

How to develop an India strategy?

  • Think long-term.  Most of the growth explosion in India is less than five years old and basic business infrastructure is still developing.
  • Just because your target market speaks English and appears to be very comfortable with western culture does not mean that you can start thinking of Indians as Americans.  Despite attending schools and universities that replicate American campuses and watching American television all day, Indians have a very strong culture that is rooted in centuries of history.  When you do your focus groups or conduct your market research, use a local firm and make sure that you do not force an American business model in your India operations.
  • Finally, learn to work within the Indian system.  Almost everyone is corrupt, the sense of urgency that we take for granted is missing, and ethics are somewhat different.  Or in other words, develop an "India strategy".

Related articles:  Growth opportunity for direct marketing in India    Register business in India   How to develop an India strategy?

How to grow in emerging markets?     Bringing economic prosperity to America  How to globalize your business?

Stable growth period creates new business opportunities Healthcare offshoring expected to grow        Auto market growth in India

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