The India marketplace for U.S. companies

India has a marketplace that continues growing and attracting American companies. In the next 20 years, India is expected to be the fifth largest consumer market in the world.

The Website India in Business states, “The Indian economy is on a robust growth trajectory and boasts of a stable annual growth rate, rising foreign exchange reserves and booming capital markets among others.”

The average household income is expected to triple in size during the next two decades and the middle class is expected to expand dramatically. There is also a new symbol for the Rupee that is now available to download for free, according to the Hindustan times.

Much economic growth is expected to take place in India’s cities, according to McKinsey Institute, “cities will create 70 percent of new jobs, and these will prove a powerful magnet.”

But before Americans rush to do business in India, they first need to stop and develop a long-term approach for conducting business with the goal of either selling products in the country or finding suppliers.

Industries for business in India

A wide variety of U.S. companies can benefit from doing business in India including automotive and aerospace companies. However, businesses that cater to young adults and teens like companies producing skateboarding apparel can also benefit.

Social entrepreneurship is growing in popularity and organizations that provide education and health benefits may have access to grants and funding available through the World Bank. An established track record is necessary to do business with the World Bank.

I know of an American who is producing television programs to educate viewers about the chances of contracting the AIDS virus. His programs are well received; but he’s also been in India for several years now.

Getting started doing business in India

The third annual India Trade Conference takes place July 29 in the greater Los Angeles area. Representatives from the U.S. Commercial Service will be on hand to offer advice. A series of workshops will acquaint attendees with those who have first-hand experience doing business in India.

The conference is held on the campus of Southern California Edison’s Irwindale campus. It’s co-sponsored by Quanta Consulting, the U.S. Commercial Service, the Port of Los Angeles, JetSuite Air and New York Life among other sponsors.

The president of So Cal Edison, John Fielders, and Peggy Johnson of Qualcomm are featured speakers.

Companies that want to pursue business in India need a strategy that includes:

Patience - U.S. companies may need sales; but just like business networking takes time developing the trust to make sales internationally may take many months as well;

Researching markets - a thorough understanding of entering the market, regulations, and the sales potential gives companies a greater chance for business success in India and reduces the likelihood for costly mistakes;

Understanding culture - India is a diverse mixture of local cultures and languages. English is a major trade language but consumer needs and quality control may be vastly different from the southern coast to the northern mountains;

Strategic partnerships - Quanta consulting maintains close ties with entities such as the U.S. Commercial Service that exists to help small and growing businesses enter the international marketplace.

Long-term outlook - small and mid-size businesses need a long-term outlook to compete in India.

Doing business in India may certainly hold the promise of long-term profitability. However, a company must chart a course and plan to have other sales sustain it for months or even a few years before sales in India become reality.