Middle-Market U.S. Business Opportunity in India

TO: Craig E. Buchner, ENG402 Professor  

FROM: Dmitriy Vishnevskiy

DATE: April 27, 2018

SUBJECT: Middle-Market U.S. Business Opportunity in India

The Indian Dream

There’s 2 Sides to Every Business Opportunity

India’s Consumption Culture

The consumption culture in India creates an opportunity for Middle Market U.S businesses to take advantage of India’s high demand in U.S. products. “Private domestic consumption accounts for 57 percent of GDP (Gross Domestic Product) in India compared with only 35 percent in China. This goes to show how an emerging and evolving consumption culture is a defining feature of India’s burgeoning middle class.”^[1] Because of India’s consumption culture there is a high demand in the luxury market, after all, India’s private domestic consumption is 22% greater than China’s. “India’s growing $2.1 trillion economy demands American and European products and services for its consumers, industry and government.” ^[2] As India’s economy grows, the demand for American products increases, hence, creating opportunity for middle-market U.S. businesses.

Irregular Regulations

The laws governing operation of a business, majorly influence its prosperity. “New de-licensing and deregulation measures are reducing complexity, and significantly increasing speed and transparency in the overall process.”^[3] In India, regulations are evolving towards efficiency in the process of entrepreneurs receiving clearance for conducting business. “The government is expected to take steps to develop a decisive and integrated action plan to enhance transparency, simplify bureaucratic procedures and modify or scrap regulations.”^[4] 

During 1969-1974, India had strict economic regulations,^[5] as a result, the country’s economy significantly dropped. In order to improve the economy, the “government’s policy of economic liberalization”^[6] took effect and gradually replaced and modified regulations on foreign business existence in India. Since the mid 70’s, the country’s GDP had a substantial increase because of the policy of economic liberalization, in fact, in 2018 India’s nominal GDP ranked the 7th largest economy in the world, reading $2,654.170 Billion.^[7]

Window Systems

The process of obtaining clearance to start a business can be divided into multiple window and single window systems.^[8] In a single window system, business owners earn clearance to operate by referring to a single contact, while in a multiple window system, each authority has its own contact. India is adopting the single window system, however, even though the economical

regulations in India are evolving towards practicality, there are states in India that still practice a multiple window system,^[9] making it unnecessarily difficult for business owners to expand in those particular states.