STIKEMAN ELLIOTT S.E.N.C.R.L., s.r.l. www.stikeman.com
ASPECTS LÉGAUXÉVITER LES PIÈGES
Érik Richer La FlècheStikeman Elliott s.N.C.R.L.
LE MARCHÉ INDIEN EN 2012
10881061
DO NOT LET THE FOLLOWING DULL YOUR SENSES :
Commonwealth Country
English
Common law
Rule of law
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INDIA IS A VERY DIFFERENT PLACE
India will not adapt to you
you will have to adapt to India
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In 1990 India and China had approximately same GDP per capita
Today China's GDP per capita is about 3.5 times greater than India
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Ease of Doing Business(June 2012, World Bank Group)
Canada
17
Easiest to do in Canada
Starting a business
3
In India
166
India
132
Easiest to do in India
Getting credit
23
Same as Canada
23
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Doing business in India
is complicated for Indians
as well as foreigners
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Most sectors are open to market but in many sectors there are government approvals, ownership ceilings and other requirements
Chose your sector and the extent of your involvement carefully
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Also chose the area where you are going to do business
India is a big place with lots of variations
Doing business in Kolkata is a lot more difficult than in Hyderabad
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CANADIAN INTERNATIONAL COUNCIL
Doing business in India: success, failure and the prospects for Canada (Douglas Goold, November 2010)
Some recommendations:
1. Assess India market critically
2. Be prepared for long-term commitment
3. Understand India’s unique history and culture
4. Get help with your entry-strategy
5. Take advantage of the services offered by Canada
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PRINCIPAL RISKS
Excessive Regulation (Licence Raj)
Inadequate laws
Slow/cumbersome administration
Slow judicial process (enforcing contracts : 182)
Corruption (transparency international CPI (2011) 95)
Constant renegotiation
Fraud
IP piracy/protection
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Mitigation Strategy
If you believe that party best able to prevent or control a risk should deal with it then transfer the risk mentioned above to the Indian party
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Most importantly:
Chose your local partner
very, very carefully
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