India Business Monitor

• Opportunities for companies large and small

• Success often sooner than companies expect

• Multiple drivers behind doing business in India

India Business Monitor September 2013 2

India offers potential to companies of all sizes

There are opportunities for large corporates, mid corporates as well as SMEs. Research

has shown that the level of profitability is not linked to size of the company nor is the

break-even point.

The most popular sector for Dutch companies operating in India are manufacturing and agri-

culture, closely followed by professional services, IT, construction and water management.

SMEturnover < € 20 million

Mid corporates€ 20 million - € 250 million

Large corporates> € 250 million

Manufacturing

Professional services Construction

Agriculture

IT Water management

Success often sooner than companies expect

Results sometimes arrive sooner than expected. Almost half

of the 152 respondents we surveyed had reached break-even

point after just three years of operations in India.

Furthermore, 50% of these respondents manage to make

their business activities profi table, while 63% of them expect

to achieve that in the year ahead. 21% of the respondents

expect a net profi t growth of over 15% in the next year.

The most attractive regions for Dutch companies to base themselves

50%

3 years

India Business Monitor September 2013 3

Alternatives

Delhi

Gujarat

Maharashtra

Andhra Pradesh

Karnataka

1

2

3

India Business Monitor September 2013 4

Multiple drivers behind doing business in India

India’s rapid economic growth, in combination with the size of

the market are its two greatest attractions to Dutch businesses.

There is also an increasingly affl uent middle class with a

strong appetite for new products and services.

Another motivating factor for Dutch companies to do business

in India is the widespread availability of skilled labour. India’s

relatively young population of 1.2 billion is still growing and

benefi tting from rising standards in education.

Large corporates and mid corporates are mainly in India be-

cause of its size and growth perspective. The most important

driver for SMEs is skilled labour. 75% of all respondents active

in or with India has over 10 years of international experience.

Additionally, labour costs in India are substantially lower than

in other countries such as China, which is very important for

businesses in the manufacturing sector and the construction

industry.

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The case for India

The case for doing business in India has never been stronger, but business people who are

considering opportunities in or with India, still have a lot to consider before they take the first

step. Here is some advice from those who had already experienced the Indian market.

Be preparedTake time to learn as much as you can about the local

business environment. You may find it helpful to learn

from your peers already established there.

Go localMake sure you have local expertise and contacts, and can

find the right partners and people to support you.

Have the right attitude Don’t expect overnight success, and remember to be flexible.

You are not trying to bring the Netherlands to India.

India Business Monitor September 2013 5

The India Business Monitor (IBM) is an initiative by the

Netherlands Embassy in New Delhi, the Netherlands India

Chambers of Commerce & Trade and ING with the support

of the Ministry of Foreign Affairs, AgentschapNL and the

Dutch Trade Board India Working Group