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India is wealthy in resources and manpower. Foreign entities find India to be an attractive destination to do business. India is among the fastest-growing economies in the world. To promote foreign entities to do business in India, Indian Government has eased the entry barriers. This has had a positive impact on the development of the country. In the last couple of years, despite Covid-19 restrictions and lockdown, India has shown a rise in the GDP rate. Now that the world has come back to normalcy, the opportunity for growth is even better. In the year 2022, the World Bank Report has ranked India at 63rd position in the ease of doing business as compared to 142nd rank in 2014. This suggests that the coming years will be even more prosperous for India.
The foreign entities planning to come to India must decide on the market entry strategy to India. Every entity has to decide on a market entry strategy that best suits its business objectives. Market entry strategies can be either by investing capital in India or by having foreign ownership without any capital investment. The best market entry strategy for a foreign entity to enter India would depend upon the nature of the business, the structure of the business, and the type of product or service that entity has to offer. However, there are a few common market entry strategies that are used by emerging markets. These strategies have been discussed.
Table of Contents
In this blog, we have seen the different types of market entry strategies that a foreign entity can adopt to enter the Indian market. However, the best market entry strategy may differ from entity to entity and market to market. Whether or not a strategy is best for a particular entity can only be determined based on the factors such as the nature of the business, the products, and services provided by the business, financial capability, and the objective that the entity aims to achieve.
Read Also: Market Entry Strategy in India for a Foreigner
Ankita is an Advocate and has joined Enterslice as a Legal Researcher. Her work focuses on General Civil and Commercial laws, Corporate Taxation Laws, Labour and Employment Laws and Dispute Resolution. She is a law graduate from School of Law, University of Petroleum and Energy Studies. Prior to joining Enterslice, Ankita has the experience of practicing law in Delhi and Odisha.
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