This document provides an overview of opportunities for doing business in India. It discusses India's large population and growing consumer market as positive factors. Several industries with potential for growth are highlighted, including food and beverages, healthcare, education, and infrastructure. Key details about India's transportation networks like railways and roadways are also mentioned. Overall, the document promotes India as a country with great business potential due to its large size, diversity, and increasing economic power.

3. Agenda
• India and its people
• Opportunity identification and making money
• Real world examples
• Factors for success
• Showcasing of real-world projects in Entrepreneur booklet
Target Audience
• Small & Medium Enterprises (SMEs) and Start-ups with products and services to sell in India
• Entrepreneurs to create or innovate unique solutions for the Indian market
• Non-Resident Indians (NRIs) who want to establish a revenue-generating business for their
families in India

4. What comes to the mind when we
hear the word ‘INDIA’?
• Outsourcing
• Population
• I don’t know where India is on the world map
• Mahatma Gandhi
• Corruption
• Bollywood
• Slumdog Millionaire
• Young population with so many ‘wants’
• Everything seems to sell in India
• Risk taking entrepreneurial spirit
• Are people really making money there and how I can?
• Where do I start…???

5. Cautions and Precautions from the perspective of
doing business in ‘INDIA’?
There is liberty to do anything in India, but one can totally get pinned down on going wrong
There are points which should not be focused. There are many such ones in the governmental formalities
Maintain a time cushion whilst performing any activity
Do not gather yes-man in staff
Two types of people- one who give instructions and one who receives instructions
Distinguished handling of upper rank and lower rank
Grey is to be blackened or whitened
Japanese style FS check list does not apply
Information in Excess. Answer is different from person to person
A person who cannot speak English is not rude to other people
Silence is golden does not apply
Time is Money
Japan friendly (Pro-Japanese)
People dirty in money-making
Change in job is obvious, but I think it is better to remain in a job for 3 years.
Carry an Intention of giving a manual to a kindergartener

6. Cautions and Precautions from the perspective of
doing business in ‘INDIA’?
Corporate Culture in Indian companies varies from company to company
There are vegetarian people
There is no taboo when talking to Indians
There are people with excellent brains
There are people who pretend to be superior
And the ones who make excuses
Do not approve a mistake
Bring the Japanese style management and operations
Missing on courtesies is not advisable
Bribe is not that important
India is changing
India in a way can be held responsible for tomorrow’s world
China is also important but India too is important
China and Islam are the causes of trouble for India
Country that could make the impossible tasks possible
Please visit India

7. CLARITY ON YOUR COMPANY’S OBJECTIVE
What needs to be done? Domestically within India, establishing of an export base and export to Japan
Whether or not to keep Indian Partners
Whether or not to wait and watch for gaining deep understanding of the intentions of the Indian Government
HOW TO ENSURE EXCEEDINGLY SMOOTH ESTABLISHMENT FROM COMMERCIAL PROSPECTIVE
According to the survey of world bank, (time required to start a business) 2 days in New Zealand and 89 days in
India
Establishment cost, 2.5 million JPY to 20 million JPY
 Naming of the company, Hiring of a temporary office, Staff’s Recruitment, Visa acquisition for Japanese people,
Income tax calculation for the Japanese staff, Co. Ltd or Pvt. Ltd., Holding of Board Meetings etc.,

8. HOW TO ENSURE EXCEEDINGLY SMOOTH ESTABLISHMENT FROM NON-COMMERCIAL PERSPECTIVE
 THOROUGHLY LEGAL LAND ACQUISITION (ENROUTE A BANK, FINANCIAL INSTITUTION ETC.,)
 ACQUISITION OF APPROVAL FOR CONSTRUCTION (CFE: CONSENT FOR ESTABLISHMENT)
 ALL ENVIRONMENTAL CLEARANCES (AIR, SOIL, WATER POLLUTION CHECK AND SUBSEQUENT APPROVALS ETC.,)
 ALL COMMERCIAL COMPLIANCES (SUCH AS CENTRAL EXCISE, SALES TAX, CENTRAL SERVICE TAX (CST), WAREHOUSE, TRADING ETC.,)
 CONSENT FOR OPERATION (CFO)
MANAGEMENT AND ADMINISTRATION PERSPECTIVE
 SELECTION OF AUDITORS, DAILY CONSULTATION ON FINANCE AND ACCOUNTING, TAX RELATED CONSULTANCY , SELECTION OF
CORPORATE LAWYERS, HRD & RECRUITMENTS, FORMULATION OF ‘COMPANY RULES’; ‘EMPLOYEE HANDBOOK’, FREEZING OF ‘COMPANY
LEAVE CALENDAR’, COUNTERMEASURES AGAINST PROBABLE LABOR STRIFE, NO GIVING-UP TO RIVAL COMPANIES UNDER SIMILAR SET
OF SCENARIO, RELATIONSHIP WITH OTHER JAPANESE COMPANIES, ACQUIRING MEMBERSHIP OF NEW DELHI BASED CHAMBER OF
COMMERCE ETC.,

9. SALES AND MARKETING PERSPECTIVE
IDENTIFICATION OF BUYERS AND INITIATION OF SEGMENT WISE OFFENSIVE
PRICE RECOVERY
ENSURE THAT THERE ISN’T ANY ACCOUNT SETTLEMENT VIDE A DEMAND DRAFT
PROFILE OF LEADING INDIAN COMPANIES NOT CHANGING DIVIDEND-RATE EVERY YEAR
SUCCESS STRUCTURING
 PIONEERING ADVANTAGE
 OLIGOPOLIZATION OF THE MARKET
 BRAND BUILDING AND ITS ESTABLISHMENT
 NECESSITY OF PROFESSIONALS. BOTH INSIDE AND OUTSIDE THE COMPANY

10. India’s Statistics
• 7th largest country in the world with a Population: 1.156 billion (July 2010 est.)
• India is member country to various international trade organizations such as WTO, SAFTA, BRICKS, G20
• Capital is New Delhi and Financial/Trade Capital is Mumbai
• Largest English speaking nation in the world
• Over 200 languages are spoken
• Density: 389 persons per sq. km as compared to 31 persons per sq. km in USA

11. India’s Financial Statistics
• World’s 3rd largest economy: $7.277 trillion (PPP: Purchasing Power Parity)
• World’s 10TH Largest Economy: GDP: $2.047 trillion (Nominal)
• GDP Per Capita: $ 1,625 (Nominal; 130TH in the World)
• GDP by sector: Agriculture: 13.7%, Industry: 21.5%, Services: 64.8% (As in 2013)
• Population below Poverty Line: 179.6 Million (In 2014 as per World Bank)
• Labor Force: 487.3 Million (As in 2013)
• Unemployment: 3% Urban; 2% Rural, 10.8 Million is Total Headcount (In 2013 based on NSSO Method)
• Gini Coefficient: 33.9 (In 2012: Indicates a gradual shift towards economic equality amongst Indians)
(Gini index measures the extent to which the distribution of income or consumption expenditure among individuals
or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative
percentages of total income received against the cumulative number of recipients, starting with the poorest
individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of
absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents
perfect equality, while an index of 100 implies perfect inequality).
• Credit Rating: BBB (Domestic & Foreign), BBB+ (T&C Assessment), Outlook: Stable (An obligor rated 'BBB'
has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments).
• Foreign Reserves: Δ $ 316.83 Billion (as on 12TH DEC’2014)

12. ‘India Is Rising’ Indicators
• ‘Funny money QE (Quantitative Easing)’ : India looks expensive. But within the context of its own history, India
is just trading at the average forward PE (price-to-earnings). Indian markets aren’t too expensive; they are
reasonably valued, if it is made to believe that the investment cycle is resuming. If it isn’t, India appears
expensive. Another big positive is Indian markets are not distorted by ‘Funny money QE (Quantitative Easing)’
(QE: An unconventional monetary policy in which a central bank purchases government securities or other
securities from the market in order to lower interest rates and increase the money supply. Quantitative easing
increases the money supply by flooding financial institutions with capital in an effort to promote increased
lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching
zero, and does not involve the printing of new banknotes.)’. The yield curve is not distorted. There is a
conservative central bank and a conventional yield curve; which is a big positive.
• Impact on Indian Economy
• Quantitative easing or the printing of money is the easiest way to stimulate economic growth that involves a lot
of risk not only for the home economy but for the world as a whole. In 2011, before the first round of tapering,
the 10 year Indian govt. paper gave a yield of 7.92% and the Rupee Dollar exchange rate was 44.71. However, in
2011 when the first round of tapering begun in the US, FIIs assumed a short position in the Indian Bond market
selling in huge volumes. Thus, the price of G-sec fell and the yield rose to 8.55% because of huge selling and the
FIIs took more dollars along with them out of the country. The Balance of Payment equation which was earlier
balanced turned skewed because of the change in current account.

13. ‘India Is Rising’ Indicators
Per Capita Income
• grew by 10.4% Y.O.Y to Rs. 74,920/- (2013-14)
Working Population:
• 180 million new job seekers will enter working age by 2020
• Cities will account for 70% of the new jobs created
College Graduated Workforce: Currently 15 million
• 800 universities and 28,000 colleges
• Requirement: Additional 600 universities and 35,000-40,000 colleges by 2020
Stock Market:
• BSE index 3000 in 2003; 21,000 in 2008; 8000 in 2009; 27,208.14 current
• Less than 5% actively participate in stock market
Advertising: 134 million households have TV; Private satellite channels: 500 from 1 (2000); News & current
affairs 211
Mobile Phones: current 933 million subscribers, (monthly cell phone additions is 5.88 million sets)

14. ‘India Is Rising’ Indicators
• 52% less than 25 years of age
• Middle Class: 300 million
• One-third households got a raise of over 20% in last 12 months
• Only 2% of Indians have life or health insurance
Urbanization:
Currently 29% of population is living in cities and this will increase to 590 million by 2030
SUCCESS FACTORS FOR DOING BUSINESS IN INDIA (A Reference Guide):
1. Thoroughly grasp the following:
India in Context:
# An overview of India’s history, geography, and legacy
# India’s economic growth and Rise of Consumer Market
# The political landscape of India and its effects on business
# India’s new-found confidence: implications for international firms
# The ‘Buzz:’ current issues important to Indians

15. SUCCESS FACTORS FOR DOING BUSINESS IN INDIA (A Reference Guide):
Understanding India’s Business Cultures: The effect of Hindu, Muslim, Sikh, and other
religions on Indian society and business. # How the caste system impacts business
# India’s communities abroad
# Attitudes towards the western world
# India’s business culture in transition
# Understanding key business groups in India and the parallel, underground economy
Strategic Decision-making for Indian Business Relationships
# Investing or not investing? Analyzing risk in the new India
# Evaluating potential strategic alliances
# Outsourcing customer service operations to India
# Offshoring: setting up your own operation
Operating in India: Management Issues
# Understanding Indian leadership and decision-making styles
# Developing an effective corporate system and culture that makes sense in India
# Building an effective multi-cultural work team
# Hiring and retaining key talent in India
# Determining if your executive team has the global mindset to support operations in India

16. SUCCESS FACTORS FOR DOING BUSINESS IN INDIA (A Reference Guide):
Optimizing Functional Business Areas
# Protecting intellectual property
# Navigating the regulatory environment in India
# Marketing and customer service
# One of the largest English speaking nations.
# Separated by a common language: speaking English with Indians
# Effective meeting management in India and negotiations and conflict resolution
# Common communication pitfalls for Westerners in India
# Successful strategies for communicating across time and distance
# Building Relationships: Social Guidelines for Westerners in India
# Etiquette in business and enjoying of Indian Cuisine
# Operating in India: Management Issues
# Understanding Indian leadership and decision-making styles
# Developing an effective corporate system and culture that makes sense in India
# Building an effective multi-cultural work team
# Hiring and retaining key talent in India
# Determining if your executive team has the global mindset to support operations in India

17. About Indians : People do Business with People
• Compete: work hard and win
• Make more money, buy branded clothes, big cars, big houses
• News: must know what is happening (necessarily complete or accurate)
• Go to school, get a degree and a high paying job
• Save and own a home
• Negotiate a price and get discounts
• Secretive about what they know
• Relationship building
• Seniors to be addressed as Sir or use Mr. as prefix to their last name
• Talking, Food, Cricket, Politics
• Family, Family Sacrificing for Children and Family run businesses
• Show-off (regional)
• Believe in astrology
• Sensitive to religion: won’t do business or accept a check during certain time of the year
• Advertisement Tag line: ‘SNAKE CHARMERS ARE NOW THE WORLD’S WEALTH CHARMERS’

18. Budding Areas of Opportunities
The following is a small sample-set of areas with opportunities to make money
• Food & Beverages
• roof-top farming, food processing technologies, food packaging technologies, water treatment plants for
drinking water…
• Home based
• Home décor products, kitchenware, bed and bath, etc.
• Healthcare
• setup hospitals, medical clinics, drug development industry
• Medical devices/equipments, scanning and testing labs, etc.
• Development of disease specific herbal products following FDA guidelines
• Education
• degree colleges (medical/nursing), vocational institutes
• Programs to train teachers, automotive mechanics, medical technicians, etc.
• Courses in upcoming fields of genetics, nanotechnologies, etc.
• Infrastructure
• waste management, solar and wind technologies, temperature controlled warehouses, air and noise
pollution control technologies
• Towing trucks, automated parking lot technologies

19. Indian Market Potential in General Terms
 The diversity of India is unique in terms of geography, religions, culture, languages and attitudes and incomePopulation:1.08 billion -
730 million in rural areas,278 million in urban areas
• Age structure: 0-14 years 31.2 percent , 15-64 years 63.9 percent, 65 years and over 4.9 percent
• Geographic Areas: 29 States, 7 Union Territories: West Bengal, Andhra Pradesh, Maharashtra, Uttar Pradesh, Rajasthan, Karnataka,
Punjab, Haryana, Orissa, Jharkhand and Tamil Nadu etc.,
• Land Area: 3,287,590 km²
• Indian Railways: An Indian State owned enterprise, owned and operated by the Government of India through the ‘Ministry of
Railways’, and It is one of the world's largest railway networks comprising 115,000 km (71,000 mi) of track over a route of 65,436 km
(40,660 mi) and 7,172 stations. In 2013–14, IR carried 8.425 billion passengers annually or more than 23 million passengers daily
(roughly half of which were suburban passengers) and 1050.18 million tons of freight in the year. In 2013–2014 Indian Railways had
revenues of 1441.67 billion (US$23 billion) which consists of 940.0 billion (US$15 billion) from freight and 375.0 billion
(US$6.1 billion) from passengers tickets.
• Indian Roadways: According to the ministry of road transport and highways, the Indian road network of 33 lakh kilometers is the
second largest in the world. The inter-connection of state and national highways linking villages to the metro cities is vital to match the
needs of a developing economy and still needs to make significant progress. In the recent years, massive road development projects
undertaken by private companies and foreign investors throughout the country have resulted in the creation of new roads and
highways that have been built to accommodate multi-lane systems. The Golden Quadrilateral highway project is one of the country’s
biggest roadway development projects connecting the major metro cities and spanning over 6,000 kilometers

20. Indian Market’s Potential In General Terms
• Power: Power and electricity consumption in the country is perhaps the most critical area of the Indian
infrastructure that still needs to make significant improvement. The State governments have a majority control over
the transmission and distribution of power and need to strengthen their alliances with more private sector
participants in order to promote growth in this sector. Bharat Heavy Electricals Limited (BHEL) is the country’s
largest energy and power infrastructure provider and continues to undertake huge efforts to meet the nation’s
demands in this sector
• Telecommunications: This sub-sector is one of the modern infrastructure areas contributing directly to the growth
of the Indian economy. Due to the high growth and expansion in IT, the telecom sector has opened up for
privatization thereby making it a highly competitive sector Almost everyone, including rural sections of the
population have more than just basic telephone accessibility these days.
This has been possible due to the efforts of Bharat Sanchar Nigam Limited (BSNL), an Indian government owned
subsidy. The sector has now advanced to include mobile phone services, broadband capabilities, cable TV operators
thereby integrating IT and modern technology into several households. Companies such as Reliance Communication,
Bharti Airtel, Tata Indicom etc. are active proponents to this sector’s progress.

21. Indian Government Initiatives
• In order to attract investments in the defense sector, higher FDI cap, wherein the foreign investor having majority equity, will act as a
catalyst-CII
• India is the only country in the world which offers the unique combination of democracy, demography, and demand. He said the new
Government was taking initiatives for skill development to ensure that skilled manpower was available for manufacturing. He also referred
to the Digital India mission, saying this would ensure that Government processes remained in tune with corporate processes.
• ‘Sensitization of Government Officials’ and ‘Effective Governance’
• Infrastructure of the future – including i-ways besides highways – and mentioned port led development, optical fiber networks, gas grids
and water grids.
• Trade liberalization: reduction in tariffs, compliance with WTO regulations and creation of special economic zones
• Legal system: Common Law. Independent Judiciary. Protection of intellectual property rights. Company law
• Launch of ‘Make in India’ as a global initiative; directly undertaken by the PMO.
• Likely revision of ‘Indian Export Policy’, scaling the growth of ‘Manufacturing Industry’ to a remarkable level of 25% of ever increasing GDP.
• Luring of Non Resident Indians could help India to catapult it into a higher growth thus overtaking China in future. The report is neither
misguided nor confusing; it is based on the factual economic figures and emotional determination of the Indian Diaspora to take India
to a new height.

22. Indian Government Initiatives (Trade & Commerce)
• 2% INTEREST SUBVENTION SCHEME: Has now been extended to ‘Labor Intensive Sectors’ namely: Toys, Sports Goods, Processed
Agricultural Products and Readymade Garments in addition to 4 sectors already benefiting from the scheme.
• Scope of “Zero Duty EPCG Scheme” has been enlarged along side making many changes in it.
• Introduction of a “New Post-Export EPCG Scheme”. Wherein, exporters if they choose to, may even import ‘Capital Goods’ on payment
of duty in cash.
• To promote manufacturing activities and employment opportunities in North Eastern States, the export obligation under the EPCG
scheme shall be 25% of the routine export obligations. The exporters in these states shall also be now provided with an additional
incentive of 1% on the FOB value.
• Encouragement of export of ‘Green Technology Products’; now the export obligations have been reduced to 75% of that of the routine
one. 16 such products are: equipments for decentralization of ‘Solar Energy’, Grid and connected products, Bio Products Gassifiers
etc.,
• Support for Infrastructure and Agriculture Sector, incentives on promoting investment in ‘Labor Intensive Sectors’.
• The afore-mentioned ‘SHIS Scrips’ have now been made transferable
• Visakhapatnam Airport has been recognized as a new port for the purpose of benefits under EPS.
• An extremely challenging “e-BRC” has been launched by DGFT.

23. Indian Government Initiatives (Trade & Commerce)
• Re-writing of FTP (Foreign Trade Policy) and HBP (Handbook of Procedures) by the government to make these more user friendly.
• Market and Product Diversification: Wherein, 7 more countries such as Algeria, Austria, Cambodia, Myanmar, Netherland, Antilles and
Ukraine have been added to FMS (Focus Market Scheme)
• 7 New Markets have been added to the SFMS (Special Focus Market Scheme). These are Belize, Chile, El Salvador, Guatemala, Honduras,
Morocco and Uruguay.
• 46 new items have been added to ‘Market Linked Focus Product Scheme’ (MLFPS). This would have the effect of including 12 new markets
for the first time.
• 110 new items have been added to the FPS (Focus Product Scheme) List.
• 2 new items have been added to VKGUY (Vishesh Krishi Gram Udyog Yojna). These are roasted cashew kernel, and protein concentrates &
textured protein substance.
• 3 new ‘TEE’ (Towns of Export Excellence) have been added to the ‘List of TEE’. These are Ahmedabad (Textiles), Kolhapur (Textiles) and
Saharanpur (Handicrafts).
• Use of the term: ‘Delivery Against Acceptance (DA)’ shall not be encouraged for Carpets and Handicrafts unless they are covered by Bank
Guarantee (BG) or ECGC Guarantee. Having done so has significantly protected the business and financial interest of small exporters.
• Simplification of Procedures such as “AA” (Advance Authorization); wherein AA has been made acceptable at all EDI Ports.

24. Foreign Investment Commission – Guidelines:
• Most sectors follow the automatic approval route with FDI CAP of 100%
• FDI Caps as defined for certain sectors:
Telecom up to 74 percent, Mining 74 percent, private sector banking 49 percent,
insurance 29 percent.
• Minimum Capitalization Norms for fund based NBFCs:
i) For FDI up to 51% - US$ 0.5 million to be brought upfront
ii) For FDI above 51% and up to 75% - US $ 5 million to be brought upfront
iii) For FDI above 75% and up to 100% - US $ 50 million out of which US $ 7.5 million to be
brought upfront and the balance in 24 months
• Minimum capitalization norms for non-fund based activities:
FDI up to 51 percent in priority capital and intermediary goods sectors. Non resident Indians
and overseas corporate bodies allowed 100 percent equity in key areas

25. When Dealing with an Indian Partner
• Check for
• Reliability: Testimonials with Client verification
• Ethical Practices
• Commitment to work/doing business
• Cooperation with partner
• Fair and responsiveness to employees
• Show that you have multiple options open
• You are in the game for long time
• Willingness to come to India
• Build relationship

26. MAIN REGULATORY AGENCIES APART FROM
MINISTRIES
• RBI: (Reserve Bank of India)
i. Act as the Central Bank of all Banks of India
ii. Controls the monetary policy of the Rupee as well as US$287.37
billion (2009) of currency reserves.
iii. FDI is also regulated by RBI.
• SEBI
SEBI controls and regulates Capital Market operations

27. OTHER REGULATORY AGENCIES
Sectors Regulator Established
Inland Waterways for shipping and
navigation
Inland Waterways Authority of India 27-Oct-1986
Commodity Market Forward Markets Commission 1953
Telecommunication Industry Telecom Regulatory Authority of India 20-Feb-1997
Financial Audit and Accounting
professions
Institute of Chartered Accountants of India 1-May-1949
Financial system and monetary policy Reserve Bank of India 01-Apr-1935
Food Safety Food Safety and Standards Authority of India Aug-2011
Security Market Securities and Exchange Board of India 12-Apr-1992
Aeronautical Tariff Airports Economic Regulatory Authority 12-May-2009
Insurance industry Insurance Regulatory and Development Authority 1999
Company- related matters Registrar of Companies 1956
Power sector Central Electricity Regulatory Commission 24-Jul-1998
Pension sector Pension Fund Regulatory and Development Authority 10-Oct-2003
Warehouses Warehousing Development and Regulatory Authority 2007

28. FOREIGN DIRECT INVESTMENT (FDI)
1.Reserve Bank of India, Apex Bank of India regulates FDI in India.
2.FDI is allowed under automatic route in almost all sectors except a few of
national interest.
3.FDI can be brought in via three routes:
i. Automatic Route (Without RBI Approval)
ii. Approval Route (RBI Approval)
iii. Government Approval Route
4 Indian companies can issue equity shares, fully, compulsorily and mandatorily
convertible debentures and fully, compulsorily and mandatorily convertible
preference shares.

29. LURING OF INVESTMENT FROM NRI/FOREIGN NATIONAL ENTITIES
EVALUATION CRITERIA MUTUAL FUND SHARES OF LISTED
COMPANIES
BUSINESS REAL ESTATES DEPOSITS
WITH
BANKS
1 RESTRICTION ON
INVESTMENT
*Subject to FDI Rules
FREELY PERMITTED* FREELY PERMITTED TO
PVT SECTOR *
UPTO 100% IN
NEARLY ALL
SECTORS*
FREELY
PERMITTED
(Large Projects)
OTHER THAN
AGRICULTURE *
FREELY
PERMITTED
*
2 RETURN ON INVESTMENT EQUITY BASE 25-30%,
DEBT 10-15%,DIVIDEND
EXEMP FROM TAX
20-25%,DIVIDEND
EXEMP FROM TAX
DEPEND ON
BUSINESS MODEL,
AVG 15-20%
15-20% 6-9%
3 RISK OF LOSSES EQUITY –HIGH,DEBT-LOW HIGH LOW LOW LOW
4 LIQUIDITY HIGH HIGH DEPENDS ON BIZ
MODEL
MEDIUM HIGH
5 PROCEDURAL SIMPLICITY YES YES YES YES YES
6 REPATRIATION OF POST
TAX INCOME
FREE FREE FREE FREE FREE

30. Sector-Wise Distribution of FDI Equity Inflow

31. 2012-13 121,907 22,424
2013-14 ( from April,
2013 to March, 2014
PERCENTAGE YOY
CHANGE IN TOTAL
147,518
(+) 21
24,299
(+) 8
2013
2013
2012
2013
2012
2012
2012
2012
2012
2012
2012
2012
CRORES (10 M) INR MILLION USD
YEAR
AMOUNT
CRORES (10 M) INR MILLION USD
7,556
10,257
6,819
13,589
12,557
21,558
12,623
8,974
8,432
9,903
8,899
26,351
11 FEB 2014 2,017
12 MAR 2014 3,533
9 DEC 2013 1,101
10 JAN 2014 2,189
7 OCT 2013 1,227
8 NOV 2013 1,638
5 AUG 2013 1,408
6 SEP 2013 4,132
3 JUNE 2013 1,444
4 JULY 2013 1,657
1 APRIL 2013 2,322
2 MAY 2013 1,631
FDI EQUITY INFLOWS (MONTH-WISE) DURING THE FINANCIAL YEAR 2013-14: AMOUNT OF
FDI EQUITY INFLOWS IN CRORES (100 MILLION INR/ MILLION USD)
Sr.
No.
FINANCIAL
MONTH
YEAR
YOY %AGE
CHANGE
AMOUNT
FDI FACT SHEET FOR FY 2012-13/2013-14

32. Entry Strategy
• Incorporating an Indian company with 100 percent foreign equity, as a wholly-owned subsidiary
• Incorporating a Joint Venture Company (JVC) with an Indian company either listed or unlisted
• Branch office - export/ import, promoting technical or financial collaboration and representation
• Liaison and Project offices
• Identify potential partners. Due diligence, complementarity and cultural fit
• Detailed legal and financial agreement with JV partner
• Business culture: relationship and trust, slow pace of business dealings
• Scams, crime and corruption (82nd in Corruption Index)
• IP infringement
• Resolution of disputes, court settlements
• Board’s Constitution
• Contents of MOA and AOA (Memorandum of Association)
• Industrial Relations, Complexities and Prejudice in Labor Laws
• Statutory Compliances and Requirements
• Company Law, Factories Act, Labor Laws etc.,
BE CAREFUL
ABOUT THEM

33. External Commercial Borrowing(ECB)
• RBI regulates ECB in India
• Almost all sectors are permitted ECB up to USD 500 Million
• ROI is LIBOR based and repayment tenure from 3 years to 10 years.
• All multinational Banks have presence in India to raise ECB
• At present RBI Approval is required for ECB. Proposed automatic route.

34. TO CONCLUDE…
• Indigenous demand and potential of exports makes it the best
investment destination.
• India’s resources and sincere government efforts assures the success.
• Economy has passed acid test of recession in last few years showing
unparalleled success. During 2008-2009 global recession, India
posted 7% rise in GDP.
• Its industrial performance is the main selling point in last few years.
• India is a country with stable government with deep rooted democracy