Business Expansion into India: A Report for C&C Industries

Introduction: India's Evolving Business Climate

After an extensive review of the current business climate in the nation of India, it appears that conditions are ripe for some type of expansion by C&C Industries. The following report outlines the results of this research and offers pertinent conclusions and recommendations for any future business expansion into a region that some analysts see as poised to eclipse the United States as the world's number one economic power sometime in the early 21st century.

The nation of India has changed greatly since its days under the control of the British Empire in the early 20th century. According to the Indian government's "India in Business" website, India has experienced a significant shift in its competitive standing in the world and, despite the recent global economic downturn, is now experiencing a stable annual growth rate.

Some of the industries that have contributed to this growth include construction, service industries, financing, manufacturing, agriculture, real estate, and a burgeoning high-tech manufacturing base. The Indian government has also gone to great lengths to open the door to foreign investment, which it views as directly linked to higher disposable incomes, an emerging middle class, a low-cost competitive workforce, and many progressive reforms — all of which "contribute towards India being an appropriate choice" for foreign investors like C&C Industries.

Key Industries and Foreign Investment Opportunities

Some of the most important reasons why C&C Industries should consider establishing a new business entity in India relate directly to the company's focus on computer software development and marketing. According to the "India in Business" website, India has a fast-growing electronics and information technology industry, and the Indian government actively wants foreign companies like C&C Industries to establish a presence there. The electronics and information technology sector "is not only attracting significant attention as an enormous market but also as a potential production base for international companies."

Software development and engineering are now at the top of the Indian government's list of priority industries. As of the time of this report, there are nearly two million software product development engineers in India — a substantial talent pool from which C&C Industries could recruit employees. The "India in Business" website further notes that India exported a significant volume of software products, which by 2009 accounted for 15% of the country's total export market, reaching customers in countries around the globe, including the United States.

Setting Up a Business in India

Compared to many other countries, the process of starting a business in India is relatively straightforward. According to the World Bank Group's "Doing Business: Measuring Business Regulations in India" resource, the required steps are as follows ("Doing Business: Measuring Business Regulation," 2009):

First, a potential business owner must obtain a Director Identification Number (DIN), which takes approximately four weeks. Second, a digital signature certificate must be acquired, which typically takes less than one week. Third, the company name must be reserved with the Registrar of Companies, a process that can be completed electronically in fewer than three days. Fourth, a Certificate of Incorporation must be obtained, which also takes less than one week.

A potential business owner would also need to obtain additional government-related documents and permissions; however, the entire process generally takes fewer than 30 days to complete. Many of the procedures can be handled simultaneously, which reduces the total time required and allows for a quicker business launch — particularly if products are sold online rather than through traditional brick-and-mortar enterprises.