Europe: The Next Fertile Land for Indian Entrepreneurs
Date: Monday , April 11, 2016
Headquartered in, Dublin, IDA Ireland is responsible for development and promotion of foreign investment in the country. Active since 1950, it is Ireland\'s inward investment promotion agency that has been attracting strong emerging companies as well as giant MNCs across diverse sectors like engineering, financial, life science and so on
Market segmentation decisions are no longer bounded by borders. Companies treat the world, including their home market, as one-market. However, the Indian companies which are seeking to stretch their wings globally are skeptical about Europe due to various languages and countries it contains. Ireland being an English speaking country using Euro currency, we are much integrated financially and hence it\'s a great launching pad for Indian businesses. Furthermore, you can access all European countries from Ireland.
Earlier it was a different world where it was tough for companies to invest outside of their home markets,but it\'s not the case today.Ireland has ensured that bureaucracy and legislation is favorable to any business and has also been maintaining proper amount of corporate tax rates, education to create best talents, research systems, and so on.Ireland government has always been very responsive not just to our businesses but international business too. As globalization is happening at a much faster pace, legislature alignment with the rest of the world is vital. European\'s market awareness is crucial for Indian exporters.
IT Industry Across the World
The development of IT is changing the world and the impact is felt around all the sectors and continents. The contributions being made by the IT industry towards the country\'s GDP has led to a steady growth of the Indian economy which has also helped the domestic economy to get integrated to world economy.In the next couple of years about a half a million vacancies will be available in IT in Europe as per reports.IoT is becoming more and more relevant. Interestingly, the core chip for IoT was designed by the Irish Intel team. When you connect all the information from all facets of life in one central place, you need data analytics which is yet another big trend. Likewise, Artificial Intelligence has become a hot topic over the last 12 months globally. Financial innovations and Robotics are becoming more disruptive.
Healthy Indian Ecosystem
According to World Investment Report 2015, India is now one of the top 10 recipients of foreign direct investment during 2014. With Make in India initiative, the government has amended FDI policy to increase FDI inflow by 48 percent by April 2015.
India seems to have a very strong ecosystem and commitment in the startup revolution. When a country has the government\'s support, involvement of multinationals, impressive graduates and talented professionals who are coming back after gathering knowledge from matured countries to be the part of start-ups.it is the hallmark of a very healthy ecosystem.
Companies like Flipkart, Myntra and Amazon are pervasive and tremendously flourishing. e-Commerce in India is maturing and creating an ecosystem akin to delivery services around itself, which might open more opportunities for them in foreign markets.Going forward, these companies are expected to touch the supply chain or procurement & innovative centers in the developed markets.However, Irish start-ups are focused on filling the B2B gap, since it is an easier space that doesn\'t require humungous funds.
Globalization in Indian economy
Investments abroad encourages economic co-operation between the countries which results in the exchange of technology, skills, access to global market and many more. Indian firms are investing in foreign firms primarily through mergers and acquisitions, like Wipro buying ViteosGroup, Mahindra & Mahindra buying 76 percent stake in PininfarinaSPA, Jaguar Land Rover (JLR) building car plant in Slovakia and so on. Significant rise in these investments will give them direct access to newer and more extensive markets.
Guideline for young entrepreneurs
Capital is the life-blood of business and ensuring enough of it will make things fall into place. Also, designing a concrete business plan before jumping in the business would help youngsters who are stirring the idea of start-ups. Don\'t over-hire.It is always beneficial to be surrounded with knowledgeable and trustworthy people on board to work on your team and to advice at regular intervals. This will ensure smooth running of the business.Evolving the business model as per the need of the hour is of utmost importance. Constantly communicating with your customers and potential customers will eliminate the hindrances in building a solution for a real world problem. (As told to Ananth. V &Pushpita Das)