India has the second largest population in the world and is notoriously known for having unsanitized water for most of the citizens in country. Steps have been made to purify the water, but the increase of the population is making that difficult for the government to maintain their filtered water development. “Regardless of improvements to drinking water, many other water sources are contaminated with both bio and chemical pollutants, and over 21% of disease related illnesses are from the water” (Snyder, 2017).

In this country, our filter should be distributed to all households.

It is important for India’s government to continue to work on fixing the major groundwater contamination, but if everyone in a household is given a filtered bottle or container, they will at least have clean water within their home to consume. Our product is similar to equipment used by hikers; when they are around lakes or other water sources they can purify the water and it will be safe to drink.

If containers are not available to be made, teaching the citizens of India how to make a homemade filter at home is a good start to lower water related illnesses. Some areas in India are lucky enough to have a wet climate that can allow them to catch rain if residents know how to filter it. “However, with no rain catchment programs in place, most of the water is displaced or dried up instead of used” (Snyder,2017). Sewage treatment plants are one to none existent in India, the wastewater flows within the stream water, which happens to be the same contaminated water used in rural areas for drinking.

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Challenges and Opportunities of Doing Business in India

One of the opportunities of doing business in and with India is that it is one of the world’s fastest growing nations. This also makes it one of the largest consumer markets in the world. With such a high population, there will be clients willing to buy our product especially since it can help with their problem of water contamination. Our product is intended to help filter contaminated water and turn it into clean drinkable water. This product can be seen as beneficial to many of India’s residents, especially those in lower income regions.

One of the challenges we may face while doing business in India is their regulations on imports and high taxes. Although foreign money is welcome in India, it is heavily regulated in order to protect domestic industries from being overrun. Tariffs in India are on average 6.3%, which can add up quickly to a small business (India 2017). Foreign businesses are also like to find challenges doing business with India because rules and policies change constantly due to ongoing changes in in the government (Indian Law, 2018). Another challenge is that our product may be too expensive to those that need it most. Water contamination is a widespread issue through India, but those that are affected the most are those in low income regions. While we offer a product that can help their quality of life, they may not be able to purchase it. In order to get the product distributed to the people that desperately need it, we would likely have to partner with a non- profit or company that is willing to buy and distribute our product.

Lastly, one of the biggest challenges we may face while doing business in India is corruption. Their history of corruption and fraud has made it a less than desirable option for investments (Desai, 2018). Many people including government officials are perpetrators of business fraud, embezzlement, and other illegal accounting violations. This could be detrimental to a company if we are unable to trust that our money and business is secure in India.

Entry Mode

Doing business in a foreign market can be tricky. It is best to go into a joint venture when dealing with a business culture unlike your own. Going into a joint venture has many advantages to it. It allows for shared costs which reduce the investment needed, a reduced risk, and it allows the company to be viewed as a local entity. When bringing a new product into India, it is best to know what the people are currently looking for. Going into a joint business venture allows us to have someone in the company with a hands on approach when distributing the water purification systems. It is helpful to have a partner who is familiar with the market, culture, and the way business is conducted in India (The Five Common International-Expansion Entry Modes, n.d).

Since India has a population of 1.3 billion people, it has a huge opportunity for sales (5 tips for a better Indian market entry strategy, 2016). However, India is a low middle income economy so an accurate pricing strategy is essential to the vitality of the company. That is where the joint venture comes in to help. Having a business partner who is familiar with the local pricing of goods similar to our product, will allow the company a better opportunity to sell. Since India is so diverse, it is helpful to know which parts of the country the product will sell the best in. Areas with a lower income might sell slower, but it might also be a necessity if the water supply there is poor. Whereas, areas of higher income might prefer to spend the money on purified water, but their water system is sufficient enough for it to not be necessary. Having someone in the country within our company will also help us know which areas our product will do the best in. Since the country is foreign to us having someone with a knowledge of the land is going to be vital for the product we are selling (India, 2018).

Promotion Methods

When entering the market in India, we will use a product extension/communication adaptation communication strategy. We won’t need to change our product at all, just the way we promote it (Wild, J, and Wild, K). By choosing this method in India our company will be able to retain our economies of scales while customizing the advertising campaigns to suit the Indian market. In India consumers rather have a great product but will rather have a product that is innovative but price is low. Our promotion strategy will focus on letting the consumers know the cost is low and competitive in comparison to similar products. We will invest and have a comprehensive marketing plan that involves social and digital media, stakeholder management, public relations, and television value propositions with the help of Indian local knowledge. When promoting via television we will have to be sure to conform to all religious and ethical codes. It is also vital to our brand that we cater to differing levels of population and diverse cultural backgrounds in India. To start we will target consumers that will choose our product based on cost. Language will be a major consideration for how we market in India. We will also ensure that we consider regulations India has and ensure that we use a test market to ensure our advertisement does not create outrage.

Trends for Our Proposed Product

India’s diverse economy practices both modern agriculture and traditional farming (Wild, 2016). Our company plans to offer a water purification system that would benefit not only individuals, but individual households and the diverse farming industry. We would like to see our product distributed to all households in India as a solution to the major groundwater contamination problem the country continues to suffer from. Much of the lower income regions will be able to benefit from the low cost of our product and availability in different regions. Although certain factors such as regulations on imports and high taxes may create a challenge for our company in the beginning, we are hoping that by creating a joint venture we can lessen the burden of doing business in another country. We have also considered the rules and policies differences in India will likely create challenges along the way, but with the correct research and legal team we are hoping to lessen the effects and confusion. Another consideration for operating a business in India, is the country’s human resource policies. It is important that we establish practices that take into consideration the Indian culture. To soften the effects of product introduction into society we will need to gradually introduce our product and be mindful of marketing plan. As our company grows we will be able increase the income of employees in India, and by providing clean water alternatives we can increase the life expectancy rate in India (Wild, 2016).

By establishing a joint venture and conducting hands on market research we will be able to better predict the long-term future of our company and how it will benefit India’s growing economy. It is definitely important that we have different price points for India’s unique culture and population. Once the product is introduced to individuals, we can continue to market the business by offering our products in other market areas such as agriculture.

Cite this page

Research on Doing Business in India. (2021, Nov 17). Retrieved from

Research on Doing Business in India
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