Partnership is the Key to CEE-Indian Business

.

Rudradeb Mitra

About Rudradeb Mitra

Rudradeb Mitra is a serial entrepreneur who has been living in Europe for past 14 years. As a graduate of the University of Cambridge he started his first venture in 2010. He has built start-ups doing business with over 50 countries in four continents and understands the challenges and opportunities of the global market. These days he is mostly busy working with companies, helping them grow internationally. 

India’s progress in the last two decades has been unique. Traditionally, the manufacturing sector is viewed as the key engine of economic growth. Western countries, China and South East Asia grew largely due to growth in manufacturing sector, but India’s economic growth is largely driven by the services sector. For example, in 2015-16, the services sector contributed around 66.1 per cent of the country’s gross value added growth.

At the same time, the manufacturing sector has stagnated and accounts for some 15 per cent of the GDP. To pump up growth in this sector, the Indian government started a campaign ‘Make in India’ but it may take years, if not decades, to show results and the growing service sector demands are not being fulfilled by the much smaller manufacturing sector.

If we look at the CEE region, especially Poland and the Czech Republic, the countries have a strong manufacturing base, mostly catering to regional and European markets. The products are of highest quality but priced lower than their Western counterparts. This makes it perfectly suitable to fill up the void in India, left by the lack of the manufacturing sector there.

Where are opportunities for CEE producers? I would see six areas, with personal care, which is experiencing a healthy growth of nine per cent per annum and is expected to reach over $18 billion by 2020, being the first segment. The top three players in the Indian market are international manufacturers but CEE-based firms have also spotted opportunities, for example Polish cosmetics brand Inglot plans to open two stores every month in India, to have 100 stores by 2020.

There is also a strong and growing interest in natural and organic cosmetics. However, due to the high pollution levels in India, local companies are finding it difficult to meet the high standards required to manufacture organic and natural cosmetics. Some of the well-funded companies are already setting up farms in Europe.

Cross-border online shopping by Indians is expected to increase 85 per cent in 2017 and total online spending is projected to rise 31 per cent to $ 128 billion, by 2018. Most of the demand in cross-border shopping is for high-end brands from Western Europe. However there is a growing middle class, who are interested in high quality products, but at a price cheaper than can be found in Western countries. Companies from CEE can provide that. Here again, a partnership with an Indian online retail shop would be the way to go forward.

Healthcare has become one of India’s largest sectors — both in terms of revenue and employment. In April 2016, the Healthcare Information Technology (IT) market value was estimated at $1 billion currently and is expected to grow 1.5 times by 2020.

In this sector the biggest opportunity is in the medical devices industry. India has become one of the leading destinations for high-end diagnostic services, and medical companies from CEE have one of the highest standards of medical equipment in the world.

India is the world’s largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the $124-130 billion market. Although there may not be much opportunity in software, India lacks in IT hardware. One such segment is of drones, especially those used in the entertainment and agriculture industry. Robotics and IoT hardware are also opportunities that companies from this region can capture.

In 2016, the Indian government’s step to demonetise was part of an effort to curb black money and to move towards a cashless economy. In the past, the country was mostly cash based, so it was slow in Fintech innovations. Innovative mobile payment solutions such as BLIK and blockchain technologies have opened up huge opportunity in the Indian market. My various interactions, with the top IT consultancy companies in India, show that they are actively seeking companies working on such technologies. Fintech is very strong in CEE and companies can explore partnerships with top Indian IT companies in terms of technology or knowledge transfer.

Additionally, by 2020, there will be around 50 million outbound Indian travellers, spending $20 billion in total. The CEE region is expected to be one of the top travel destinations. Since Brexit, this regions has seen a 200 per cent increase in Indian tourism. This is a unique opportunity for many travel companies here to promote themselves among Indian travel companies. The key segment to focus on will be MICE.

Of course, any great opportunity comes with a bigger challenges. Doing business with India is difficult and one has to understand the cultural differences and adapt accordingly. Some challenges can result from cultural differences, such as showing immense excitement initially followed by no response should be interpreted as no interest, or inviting one to come to India might not necessarily entail business, as Indians are very hospitable.

The Indian government is also easing the trade barriers at both domestic and international levels through agreements to enhance India’s competitiveness at a global level. For example, on 1 July 2017, a Goods and Services Tax (GST) was introduced as a unified tax system, replacing the multiple cascading taxes levied by the central and state governments.

So for companies looking at Indian market, my advice is that the best way to do business with India will be to build relations with local businesses and to be a partner who supplies them with products that they don’t already have, at a lower price than Western countries. This will be a win-win for all and will create a golden opportunity for companies from this region.

_______________

The views expressed in this opinion editorial are the author’s own and do not necessarily reflect Emerging Europe’s editorial policy.

RELATED ARTICLES

Impact of Brexit on EU-CEE Not Overstated

theresa may brexit

Emerging Europe Back on Track to Convergence

wiiw

Central and Eastern European Consumers Are Joining the Global Trends for Change

The Voice of European Business Must Be Heard Loud and Clear by Brexit Negotiators

Why is Armenia Borrowing Another 100 Million US Dollars From Russia?

Ex-Transition Economies’ FDI Recovery

dollar euro fdi

Old Fashioned Skulduggery Overshadows the Elections in Moldova

Is the CEE Region About to Steal the Outsourcing Crown From India?

Amazing view on the Taj Mahal in sunset light with reflection in water. The Taj Mahal is an ivory-white marble mausoleum on the south bank of the Yamuna river. Agra Uttar Pradesh India.

CEE-Benefits and Disadvantages of Joining the Eurozone

forint zloty euro

‘Traditional Values’: A Potent Weapon Against LGBT Rights

gay rights putin

Belarus 2020: Turning the Vicious Circle Into an Upward Spiral

Examining How a Strong Swiss Franc Could Single-Handedly Topple Poland’s Economy

The EU’s Choice: Fundamental Reform Or Disintegration

A New Division Between Eastern And Western Europe?

Will the New Five-day Visa-free Regime Encourage More Visitors to Belarus?

Bulgaria Needs a Reform-Oriented Government to Take Full Advantage of its EU Membership

bulgaria emerging europe

Falling into Old Ways in 2017? Ukraine’s Struggle for Functioning Economic Institutions

Resignation in Ukraine: War, Revolution, Crisis — Some Things Never Change

Not All Quiet on the Eastern Front

Poland Needs to Cling to the Eurozone

zloty euro emerging europe

Will a Two-speed European Union Side-line the Visegrad Four?

Could the West At Least Help Ukraine To Insure FDI Against Political Risks?

The Netherlands’ Objection to the Ukraine-EU Association Agreement could be Costly to Europe

History as Destiny? Institutional Erosion in Ukraine and Poland

Defending EU Values in Poland and Hungary

Eu hungary poland

Polish Tax Laws — Fighting a Winning Battle Against Tax Evaders

EU-CEE Is Still Growing at a Healthy Rate

Prague emerging europe

Nagorno-Karabakh Conflict Moves from Frozen to Kinetic

Nagorno-Karabakh

Global Expansion in the Digital Age

Measuring Growth of Societies with GDP Alone Shows an Incomplete Picture

Swimpassing Dniester Without Prejudice To Democracy

Parliament of the republic of moldova in chisinau, national flag, stefan cel mare street, spring time with blue sky

Moldova’s Briefly Suspended President is Still in Business

chisinau moldova parliament

Adam Smith’s Warning for Poland

Why Hungary’s New NGO Law Is Harmful for Business

Budapest, Hungary. Aerial view of the old city Budapest, Hungary with river and Parliament Building with cloudy blue sky

PiS Uses Media Control to Bring Poland to Heel

Jaroslaw kaczynski pis emerging europe

Hungary’s Nationalist Assault on Free Enquiry

victor orban ceu

Can Armenia Keep a Foot in Both Camps?

European union armenia russia emerging europe

Euroscepticism in Serbia: An Image Problem?

When Neutrality Isn’t an Option

President of the Russian Federation Vladimir Putin

Europe Needs To Be More Proactive In Embracing Armenia

People Power Reminds the Government of the Rule of Law

Is the Level of Foreign Ownership a Problem in Emerging Europe?

Flags of European countries flying from their capital cities. Viewed from the South.

Finalising the DCFTA is Expected to Bring Multiple Benefits to Ukraine

Poland’s Unicorn, Slovakia’s Flying Car and the Future of Europe

Changing Perspectives and Showing That True Romania is a Vibrant Innovative Country

Breaking With Imitations of the Past

LGBT in CEE — A New Acceptance Is Being Born From Migration

Poland: Is it Ready, and is it Time to Adopt the Euro?

CEE — Do We Need a Launch Pad For Our On-Site Tech Intelligence in the Silicon Valley

The CEE Region Is Making Advances in Prioritising Waste-to-Energy Projects

Albania’s Election Apathy

tirana albania

The Long Tail of Global Expansion

Hungary and Israel: the Collision of Past and Present

Budapest synagoge

Poland Challenges the European Identity

Poland emerging europe

Moldova Falls Victim to Politicising

moldova emerging europe

The Competitive Edge in Central and Eastern Europe

SOFIA BULGARIA - MAY 5: View of the Ivan Vazov National Theatre in Sofia on May 5 2016. Sofia is the largest city and capital of Bulgaria.

Czech Republic Renaming Has Real Economic Costs

The GREAT London Food Scene

Bakery in London

E-lifestyle and Cyber Security: Some Views From Estonia

Cyber Security Protection Firewall Interface Concept

Poland’s Drift Away From Democracy

Is there any prospect of ‘Polexit’?

poland european union polexit

Poland’s Capital Saturation Lower Than the Czech Republic’s

deloitte fdi poland

We, the Post-Communist Generation, Have the Skills to Rid of the Past And Create Our Own Future

After 25 Years of Restructuring, the Romanian Power Sector Is at a Crossroad

A Bosnian Referendum Shows Russia’s Influence in the Balkans—As Well As Its Limits

Where’s My Cheese? – The GREAT British Food Tour 2014

Cheese Shop

Business Moving Forward with Cautious Optimism — Can Investors Win the Confidence Game?

Are Czech-EU Relations at Breaking Point?

PRAGUE, CZECH REPUBLIC - 21 JUNE 2014: People on the streets of Prague, Czech Republic. Prague is one of the most visited city in Europe with over 5 million visitors every year.

The Morawiecki Plan Promises a Brighter Future for Poland

Only a United Opposition Can Defeat Poland’s Ruling Law and Justice Party

Classical building of Polish parliament. Warsaw in Poland.

Czech Own Currency Insures Against Euro Losses

Euro Czech republic emerging europe

Political Tensions Rise As Croatia Allegedly Breaks the Dublin III Refugee Regulation

croatia migrants

EU Visa-Liberalisation Strengthens Georgia’s Pro-Western Path

georgia emerging europe eu

How Will Poland Approach the Brexit Negotiations?

Europe at Odds over OPAL and Nord Stream 2

Outsourcing in Germany: Stop Talking at and Start Talking to

International Women’s Day — Let’s Take Action And Then Celebrate

How strong is V4?

Viktor Orban

Belarusian Journalists Still Face Huge Problems

Slovenia’s Presidential Election: Pahor Expected to Romp Home

Slovenia flag against blue sky waving in wind

How Will Trump’s Visit Affect Polish Politics?

Donald trump

Stuck in Neutral: Georgia’s Constitutional Reforms

Tbilisi Parliament Georgia

2018 Elections — Vital Decisions for Hungary’s Future

Victor Orban energing europe

Ukraine’s Reputation for Cheap Labour May Not Ring True in the Long-term

Prepare for a New Europe

The Sharing Economy Could Bring New Business Models to CEE

A Positive and Modern View of Entrepreneurship

Macedonia’s Controversial Coalition Government

SKOPJE MACEDONIA emerging europe

European Volatility Makes Economic Development Slower for Ukraine

Ukraine’s Economic Recovery: Good, But Slow

ukraine money

The Global Outsourcing Industry — the Rise of the Phoenix

Big Fish, Small Fish, Where to Fish? On the Eve of the Fourth Industrial Revolution

Why Was Zapad-2017 So Important?

russian tank belarus zapad

After Its Significant Rise the Georgian Economy May Now Fall

Panorama of Tbilisi, Georgia in sunset rays. Vivid, saturated, splittoned image.

Emphasising the Incongruence Between the V4 Countries

Macron emerging europe

Romania Surviving the Waves of Recent Political Tsunamis in Europe

The Capital Markets Union: a New Beginning in the European Financial Sector?

Will Poland Leave the European Union?

polexit

Under Promise, Over Deliver: Prospects for the EU’s Eastern Partnership in 2018

Eastern partnership

China: A Giant That Is Hard to Crack

Fiscal Policy Predictability in CEE — It’s Time for Change

Poland’s Confusing GDP Growth

Azerbaijan: The Rich Get Richer and the Poor Get Nothing

Baku

Good Match But Unlikely Marriage

January Kicks Off an Exciting Year for Emerging Europe

The Right to Water: Who Can Change Today’s Situation?

Let’s Stop Wasting Time Redefining our Place in Europe

Are Labour Shortages Driving Economic Growth?

The EU’s Benign Neglect Of Eastern Europe

Are There Differences Between How Tax Regulations in Poland and IAS Treat Intangible Assets?

Serbia’s New PM Is Cut From a Familiar Cloth

Serbian flag emerging europe

Brexit: Let’s Learn the Lesson and Hope a Better Europe Will Arise

Regional Relations in the Western Balkans: Moving Beyond Folklore

Bosnia and Herzegovina flag with Serbia flag, 3D rendering

United or Divided? Europe in the Face of the Challenges of Tomorrow

Leave a Reply

Your email address will not be published. Required fields are marked *