SEMINAR ON
INTERNATIONAL BUSINESS
TO P I C : O P P O RT U NI TI E S A N D TH RE ATS O F
I N D I AN C O M PA NI E S I N I N T E R N ATI O N AL
M A RK ET S
Introduction
India is ranked as the world’s second most favored
destination for FDI
Foreign investment in most sectors welcome except
strategic sensitive sectors. Eg: atomic energy and
defence
Foreign equity participation raised to 100 percent in
several important areas.
Globalisation has increased the opportunities of
companies.
Major Industry groups
Tata, Birla, Reliance, Bajaj, Mahindra, Godrej,
Mittal,Mahindra,Hindujas etc
Foreign participants :
Major foreign banks, Insurance companies, Major
corporates, Institutional investors etc.
Opportunities
Intellectual skills, Exceptional quality and low cost
sourcing of services and products provide
competitive advantage to companies operating in
Indian market.
The vast Indian population brings an opportunity for
domestic market as it increases the purchasing
power.
Free flow of capital: It became easy to obtain funds
in international markets
Free flow of technology
•Increase in production and consumption : Increased
industrialization leads to increased production, thus results
in industrial development and increase in income ,which in
turn enhances level of consumption
•Sharing of manufacturing facilities
•Cultural exchange and demand for variety of product
Key Sectors for Foreign Collaboration
•Technology, Innovation and knowledge based
•Biotechnology
•Telecommunications
•Oil exploration and refining
•Insurance, Banking and financial services
•Pharmaceuticals
•Auto industry and ancillaries
•Consumer durables
•Fashion
•Health care
•Education
•Industrial machinery
•Electronics
•Designs
•Gems and Jewellary
Challenges & Threats
One of the major challenge is with regard to segmentation of
market.ie, how to relate to low spending power of majority
of market.
Inefficient industrial infrastructure
High tariff rates imposed by other countries.
Bureaucracy, rules and regulations that affect the business.
Change in laws
Currency risks
Slow legal system and corruptions
Restrictions by governments regarding immigration,
tightened visa process, work permit applications, increased
minimum wage requirement.
Post-acquisition challenges in case of mergers or acquired
companies
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