There are a number of important issues to consider with regard to doing business with and in India. The most successful companies have adopted and developed a methodical, long-term strategy, and have prepared thoroughly before doing business with and in India.

Government interference
Government interference in some fields is still relatively high. Government contacts are an essential ingredient of doing business in India. However, government officials are typically transferred to other departments, hampering long-term, intensive contacts.

Infrastructure
Infrastructure projects, including roads, waterways, airports, energy supply and financial sector are still under development.

Government finances
Both central government and sub-states are facing a considerable financial deficit.

Investment climate
The investment climate is not open in all areas. Certain sectors are still "no-go areas" for foreign investors. In some instances, special approval procedures and investment ceilings have been put in place.

Bottlenecks affecting Trade Policy
An example of this is the anti-dumping initiations against India by the European Commission (in particular in the area of agricultural products, textiles and clothing, and chemical products). The import of goods from India is additionally hampered by the stringent product standards and quality standards imposed by the EU.

Bottlenecks affecting the free movement of persons
This is a long-term issue, in particular regarding visa applications and document verification. This particular bottleneck has eased in recent years for knowledge workers- workers who come in on the invitation of a number of companies “recognised� the Immigration and Naturalisation Department.

Exhibitions and trade fairs
Visiting or participating in trade fairs is one of the best ways to get to know certain market segments in India. In contrast to its British and German counterparts, the interest expressed by the Dutch entrepreneurs, with the exception of the agricultural sector, has been somewhat subdued. India plays host to a large number of exhibitions and trade fairs, of differing standards. Participation fees are comparable to those charged in the West. It therefore makes most sense to visit a trade fair first, before deciding whether to participate or not. For businesses and entrepreneurs wishing to promote their activities in India, it certainly pays to organize a seminar to target specific market segments. In contrast to many Western countries, India's seminar circuit is currently thriving. (http://www.evd.nl/)

Agents
Enlisting the services of a local trade agent is certainly not a superfluous luxury. Factors such as non-transparent markets, market size, the importance of personal contacts and the nature of bureaucratic challenges in India make it difficult to enter the Indian market without local knowledge. For many businesses, a good distribution network is the key to success in India. However, networking is laborious and highly time-consuming. That is the precise reason why collaborating with a good local partner is essential. Nevertheless, there is also a growing trend among many multinationals to build their network independently, due to major problems with Indian partners after a number of years. Your agent/partner must therefore be subjected to meticulous screening. The EVD provides guidance and information on the selection as well as legal arrangements.

Joint ventures, licences and place of business.
The joint venture is a tried-and-tested method for targeting the Indian market. Until the liberalization policies of the early 1990s, this was effectively one of the few possibilities open to overseas businesses wishing to penetrate the heavily protected Indian market. Needless to say, your decision to enter into for example a technological partnership, a licensing agreement or a joint venture is largely dependent on the market segment you wish to target, and your own market strategy.
Since 1991, a number of bureaucratic obstacles have gradually been removed to facilitate joint ventures. This resulted in the following developments:

• most sectors automatically approve foreign majority interests, including licensing agreements;
• a number of strategic sectors, such as the nuclear and the railway sectors have remained in the public sector as a government department;
• industrial licences are required for a number of products. This list keeps shrinking;
• the Indian government, in an effort to promote export, has established so-called 'Special Economic Zones' (SEZ) and 'Export Processing Zones' (EPZ) and 'Export Oriented Units'. This could be an interesting proposition for companies wishing to set up a joint venture geared exclusively toward export markets.

When concluding a technical collaboration agreement or entering into a joint venture, it is important to investigate all procedures and corresponding bureaucratic red tape. A local partner should be able to do much of this work on your behalf. Nevertheless, it is recommended that one makes inquiries into the procedures to be adopted, in particular as they are subject to change. The EVD, the Netherlands Embassy, the Consulate-General, the NBSOs, the banks and financial institutions represented in India and specialist consultants (both Dutch and Indian) are able to provide the necessary support.

With regard to selecting an ideal business location, the aim is to carefully assess and analyze 'offers' from different sub-states. As always, it is important to source a good local partner with an informal government network, who should be able to successfully and effortlessly conclude this process. Nevertheless, the general consensus is that, for the foreseeable future at least, setting up collaborative agreements will remain a time-consuming affair, taking a minimum of four to six months. (http://www.evd.nl/)

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