Doing Business in India

Doing business in India

Introduction

The pharmaceutical industry in India has shown a continuous growth rate of around 13% for last six years. This shows market boom in the pharmaceutical industry. The advancement in the Biopharmaceutical Technology has even showed that this market has potential to reach profit margin of $25 billion in the coming years. Indian business industry therefore shows a massive business opportunity but it also presents many entry barriers and risks to Global business. Whilst, the government of India is trying its best to keep these barriers open for foreign investments. There are many sectors which are stubbornly remain closed and a considerable pressure is seen which help in keeping these strong entry barriers. The combination of these “Foreign Direct investment barriers” along with bewilderingly intricate combination of the government system has made it easy to see why most of the organizations are a wary for entering the market space of India. This study is the analysis of doing a business in Indian Pharmaceutical industry and a detailed study elaborating the risks of doing business within Indian boundaries. Moreover, the major risks of doing business in India involve Cultural, Political, Financial and Commercial risks that should be considered before starting any business there.

Discussion

Pharmaceutical sector of India is currently undergoing unparalleled change. This can be attributed largely to the introduction of the country's product patents. Under these patent regimes there are many of the multinational company's comebacks to the Indian market stage. This attraction is basically because of the Indian traditional strength in contrast to the manufacturing and as being the outsourcing site for the Research and Development, particularly for the clinical trials and other services.

Nowadays this sector has increasing the process of direct investment from the Multinational companies and has been placing much emphasis over the biotech segment and development of brand. The discussion for any foreign company comes to a turning point while starting business in India when the major risks of doing business there are highlighted. Indian business environment is mostly influenced with the environmental factors of the country which might become a critical decision for any company to start its business there. Few of those high-lightening risks are being discussed in the essay.

Political risk

There is growing concern about India that it will become the next victims of a prolonged economic slump in the world. In the 2010-11 Asian economy grew an annual average rate of 8.5 per cent., While the rest of the world on average at a rate of only 3 percent. So if India will soon be hard to avoid the crisis of world recession.

India is the country with the highest growth rate of gross domestic product in recent times has leaned so bully on the world market, becoming one of the main actors.

The democracy of India though the largest one but not the best around the world. The reports have suggested that 162 members of the parliament have various legal charges against them which are being ...