Andrés Gómez Funes

Vice Rector of International Relations of ESIC University.                    

India is a country of enormous contrasts for the Spanish company given that, although it offers great opportunities for Spanish companies, due to its large population, growing economy and a legal framework that favors foreign direct investment, however, there are specific challenges that They must be addressed meticulously given the complex cultural difference it represents for us.

Valuation of India as a Market of Opportunities

Job opportunities

1. Large and Growing Market: With more than 1.3 billion inhabitants and an expanding middle class, India offers a market of enormous potential for all types of products and services, even more so if we take into account that in parity of purchasing power (PPP) today is a larger market than the one the United States would represent.
Economic Diversification: India has a well-developed services (technology) sector, with a growing focus on manufacturing under initiatives such as “Make in India”.
Cost-Efficiency Advantages: Relatively cheap labor and lower production costs than in many developed countries.
Government Support: Tax incentives and FDI facilities in priority sectors such as technology, renewable energy and manufacturing.

Challenges

1. Regulatory and Bureaucratic Complexity: Although it has improved, the complexity of the decentralized administrative management system often represents a very difficult barrier to overcome. Strong Local Competition: In many sectors, such as textiles or technology, local competition is extremely strong.

Cultural Differences: Without a doubt the biggest barrier in my opinion. With a more than relevant influence of religion at all levels of society, and very differentiated patterns of behavior depending on their origin (Hindu, Muslim, Arian, etc.), adapting to the cultural environment and understanding it is a piece key when trying to access this market.

Keys and Challenges of Operation in India

Keys to Success

1. Cultural Adaptation: Understanding and respecting cultural differences (multiple differences even within the country itself), the obligatory adaptation of products and positioning strategies to reach the potential local audience. Appropriate Entry Strategy: Given the complexity of operation, the operational access strategy is key, and in many cases it will be important to take into consideration the opportunity to have a local partner.

Supply Chain Management: Ensure efficient logistics given the size and geographical complexity of India.

Specific Challenges

1. Understanding of the Legal and Tax Regime: the existence of different administrative levels with regulations that apply to our business can complicate operations, especially in terms of tax and labor regulations. Human Resources Management: Given the influence of religious and cultural factors It is important to be prepared to manage everything from hiring to training and retaining local talent.

Specific Elements to Consider for Companies in India

1. Local Market Research: It is more than important to be able to carry out detailed market studies to understand consumer needs, competition, and the regulatory environment, taking special consideration that the approach should be done by state, and not for the country. as a whole.

Intellectual Property Protection: Secure and protect patents, trademarks, and copyrights.
Distribution Channels: Identify and develop distribution channels that maximize product coverage and effectiveness.
Corporate Social Responsibility (CSR): Implement CSR practices that not only comply with regulations but also improve brand perception at the local level.
Technology and Digitalization: Use technology to optimize operations and connect with consumers who are digital natives.

In conclusion, while India offers significant potential for Spanish companies, success in this market requires meticulous planning, cultural and strategic adaptability, and a strategic and tenacious approach to overcoming operational and regulatory challenges. Proper preparation and a well-thought-out entry strategy are essential to taking advantage of the opportunities this market has to offer.
It is a market of enormous difficulty for Spanish companies but the advances produced in their digital transformation process and access to broadband networks offer, in my opinion, an improved environment in which our companies can today have greater opportunities for success if they take into consideration our advice.

Lourdes Morales

Promoter of NUMA, the first platform that speeds up and simplifies the OAS application procedures

"When a Spanish company considers opening new markets, it generally looks at the trade agreements that the EU has with that country but, since the signing of the SAFE Regulatory Framework, new Recognition Agreements have been established by the World Customs Organization (WCO). Mutual Agreement (ARM) between the customs of different countries and this opens up business opportunities because, by establishing these recognitions, administrative obstacles between the customs processes of both countries are streamlined, simplified and reduced, provided that agreements have been signed between both customs, the Authorization for the departure of merchandise from the port gives approval for its entry into the port of arrival, without controls and with priority in dispatches, and this is a basic pillar to expedite internationalization.

The only requirement will be that the logistics chains are made up of commercial partners who are Authorized Economic Operators and since Covid and mainly, with the push for digitalization, the figure of the AEO has more power every day within the international logistics chains, not not only for the profitability of the movement of goods but also for the security and sustainability of trade.

For several decades, India has established itself as one of the most important emerging economies in the world and this is linked, therefore, to digital processes that are easy to implement when there is a market with more than 1.300 billion people willing to consume because they are a virgin civilization in the process of growth. When a Spanish company wants to export to new markets, as may be the case with India, having the security of controlling the entire documentary process of an export not only provides confidence to your Indian clients, but also simplifies the procedures and that translates into money that benefits the costs of your product compared to the competition from other companies or even other countries.

If we take into account that the Indian economy has evolved considerably since the 1990s, in relation to everything that encompasses software development and information technology and that the new era of customs is supported by digital processes, the customer Indio values ​​this digital contribution in its work processes, without forgetting the great increase that has taken place in online sales, with an incredible development not only due to the new technologies developed by the Indians themselves but also because of the government's commitment to dissemination in the country of smartphones, which give Internet access to users and the new middle classes willing and able to consume economically, being the country that has grown the most worldwide, ahead only of China and the United States. Within the ambitious reform plan of the Union Customs Code (May-2023), mention must be made of the commitment that the EU makes to simplify customs processes in the entire online environment and this, supported by the development that the sector has experienced. -commerce in India are pillars to consider in the new internationalization processes between Spain and India.

Indians consider purchasing necessary products on a daily basis, from agri-food to textiles or essential goods at any point in their extensive urban geography. One of the lines of business or investment is linked to the expansion of logistics, large warehouses and good communication routes to meet the online demand that is growing internally, but is supplied by third countries. These logistics chains will be operational and profitable as soon as their commercial partners are AEO, both in India and here in Spain.

When an exporting company is AEO, in its internal processes it has correctly identified the product identification procedures, referring to tariff item, customs value and origin of the product and these three concepts are key to expedite online sales, the movement of containers without port controls and the result is a sustainable business not only as a member audited by customs but as a responsible company that cares for and protects the rights of the final consumer and the environment, general pillars that develop the new era of internationalization and the Indian market. "We have already said that it is in the quantitative and qualitative development phase."

Luciano Menendez

Area Manager – Asia-Pacific International Banking Relations - FI BANKINTER

- What assessment do you make of India as a market of opportunities for Spanish companies?

As is known, India is already the most populated country in the world and one of those that is experiencing greater and more sustained economic growth over time. However, from a commercial point of view, at the moment only a fraction of these inhabitants can access certain products and services.

However, the country's constant economic development offers numerous opportunities to companies in almost all sectors and activities.

It is also one of the most diverse nations in the world, where various ethnicities, cultures and religions coexist. This diversity, together with its geographical size, means that India must often be approached not as a single market, but as a set of more or less disparate regional markets.

- What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

As in any international project, human resources can be the decisive factor that determines its success or failure. This is especially important in India, given the adaptation difficulties that expatriate staff generally face. Fortunately, this challenge is partially mitigated by the relative abundance of highly qualified local staff.

On the other hand, we would suggest to the Spanish company that wishes to access the Indian market that it bring its best and most modern products or services there, rejecting the temptation that some Western companies sometimes have, to amortize second-level products or products in developing countries. with some antiquity. The fact that it is a developing country does not prevent the level of competition from being already very high.

-What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

Although it is obvious, we believe that the cultural distance between India and Spain should not be underestimated, which affects, to a greater or lesser extent, each and every aspect of the foreign company's activity in that country: negotiations with clients and/or suppliers, relations with the different administrations, management of local human resources, etc.

The fact that many of our Indian interlocutors are used to dealing with foreigners, speak perfect English, etc., can lead us to forget the profound differences in the way of thinking or behaving, differences that can emerge when we least expect it.

Reena Arora

Commercial Director Banco Sabadell Office – New Delhi

What assessment do you make of India as a market of opportunities for Spanish companies?

India offers the greatest opportunity for Spanish companies that wish to take advantage of the potential it offers since India is currently the fastest growing economy in the world. It has the largest population in the world (1.400 billion inhabitants), and it is also a very young population, with an average age of 28 years. The demographic dividend is playing a key role in the growth of the Indian economy, be it in the context of urbanization or the huge consumer market.

India's economic growth is supported by the expansion of its middle class, political and regulatory reforms, infrastructure development and a shift towards clean energy.

In the last 10 years, India has made leaps and bounds to become one of the world's leading powers and the government is fully focused on carrying out essential reforms to attract foreign investment in order to turn India into a manufacturing hub and to be able to position the country as one of the main centers of global supply chains.

Spanish companies have high technology and global competition so they can play an important role in participating in the growth of the Indian economy.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

India is a large and complex market that requires a well-researched approach to achieve success. The culture is very different from the Western one and the market dynamics are also very different from the Western one.​

Administrative processes tend to be many and often slow compared to European standards. Each state of India is a country in itself with its particularities, customs, language and regulations, so it is essential to do an extensive study with the help of experts when entering India and be very clear about your objectives.

It has been observed that many times companies land in India with a goal of high profits in the short term and over time they feel disappointed for not achieving them.

When exporting to India, you must keep in mind that tariffs can be high depending on the sector of activity.

You have to be prepared for fierce competition. Haggling is omnipresent in the country's commercial activity and India is a very cost-sensitive market.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

India requires a lot of patience, humility and long-term vision.

When investing in India it is important to have global strategies and local executions. In Joint Ventures it is very important to group with partners who have good experience of the Indian market.

In India, work culture differs from organization to organization, depending on their sector, size and location. Companies should actively seek to understand the country and its culture, it is a key priority to achieve long-term sustainable growth.

Pablo de la Torre Rodríguez

International Business Director of Banco Santander Spain

What assessment do you make of India as a market of opportunities for Spanish companies?

With 49% of its annual GDP generated by international trade, India represents an opportunity for Spanish companies that intend to expand internationally.

India is the fifth largest economy in the world (with a GDP of USD 4,112bn), supported by a growing, young, aspirational and increasingly educated population. In the coming years, it could surpass even China as the largest contributor to global GDP growth.

The economic activity of this country is quite aligned with the activity of Spanish companies. With a focus on agriculture, manufacturing, textiles, automobiles and technology, important synergies are generated between companies in both countries. 

And with a contribution in 2023 of only 0,5% to Spanish exports and 1,2% to our imports, India is a country of great, almost unexplored opportunities for Spanish companies seeking to establish a global franchise and take advantage of growth. from India. 

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

To operate with India, it is important to define the most appropriate means of collection and payment and through which financial entities to channel them. We are facing a market with a very atomized financial system (mainly state banks) in which almost each office, of the same entity, can act independently and manage the operations of its clients individually, so it is key to be clear about this aspect.

At Santander we work with the main entities in the country and we can offer solutions adapted to all clients, from the most sophisticated and previously mentioned to making payments in Indian rupees. 

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

1. Establish relationships of trust. India is a complex market, with 29 states of national size and linguistic plurality with 380 languages. Guarantees and documentary credits are a way to raise the level of security in international trade and seek greater comfort between the parties in the first phase of the relationship. The solvency of the financial entity that issues the guarantees is key; in that sense, Santander has the best rating among Spanish banks. 

2. Manage currency risk. Despite the stability that has characterized the rupee in the last year, it is important to take into account, as for any other emerging country, the possible volatility of the currency. The management of this, both in spot and forward, with currency hedging instruments is key to mitigating the risk of transactions.   

3. Choose partners with global capabilities. To make the most of the opportunities in India, it is imperative to have local knowledge and partners operating in the country. Santander has an extensive network of correspondent banks in India.

Immaculate Riera

General Director of the Chamber of Spain   

What are the main economic trends in India in the short and medium term?

The Indian economy is experiencing a very relevant economic, industrial and technological transformation in recent years marked by the “Make in India” roadmap. In macroeconomic terms, India has remained one of the fastest growing countries in the world in recent years.

The changes are undeniable in the Indian economy especially in its industrial and energy policy. In this sense, the energy transition is expected to have a notable impact on the Indian economy, creating new jobs and business opportunities because the country has committed to reducing its greenhouse gas emissions and achieving carbon neutrality by 2070. 

In the industrial framework, it is worth highlighting the opportunities that India offers the company as an alternative to relocating production.

All of this reinforces not only the strategic positioning of India and its leadership objective in the region but also the firm commitment by the Government of India to a new economic and industrial model that follows the roadmap set by “Make in India”.

How can the Spanish company take advantage of the role that India plays on the Global stage along with Spain's current international position?

For years now, the Spanish Chamber has identified India as a country of enormous interest for Spanish companies and as one of the priority markets to promote and support their internationalization both for what it represents as a country and for what it represents in the region. We firmly believe in the diversification of our internationalization towards new markets that offer very interesting opportunities, with great potential both in terms of trade and investment and in which the presence of Spanish companies has been minor. We are not only referring to India but also to the Asia-Pacific region.

In relation to the Indian market, the main areas of opportunity are focused on the infrastructure sector (transport and energy), construction machinery, environment, agricultural technology, automotive and components, as well as defense, pharmaceutical sector, health sector and tourism.

Another interesting axis of collaboration is in joint collaboration opportunities in third countries, taking advantage of synergies that may arise in other regions, such as Latin America.

What is India's role in the global economy?India has in recent years been a very dynamic economy, it has become the fastest growing economies in the world and is playing an increasingly important role in the global economy.

The country is an important exporter, not only of goods. The services sector is also growing rapidly and India is already a major center for financial services, information technology and other services.

In short, India plays an increasingly important role in the global economy due to its size, strong economic growth, strength in technology and services, agricultural production, exports, foreign investments and position in international organizations. However, it faces important challenges that it is already addressing, such as energy, to ensure inclusive and sustainable growth.

From the Chamber of Spain, what factors do you consider that must be taken into account to enter the Indian market?

India is a country and a market with enormous possibilities, but it is a large, diverse and complex country, a very competitive and demanding market that still presents administrative complexity and bureaucracy that must be taken into account.

Supporting companies, especially SMEs, in this entry into the Indian market is essential and the role of the Commercial Offices and Chambers of Commerce goes in this direction of support.

In this sense, to enter the Indian market, Spanish companies must take into account some factors such as the following:

- the new “Make in India” framework

- the size and diversity of the market. India is the second most populous country in the world, making it a huge market with huge consumption potential. Its young and growing population provides a very favorable demographic base for economic development.

- bureaucracy and regulation. The country has a complex bureaucratic system and strict regulation. Spanish companies must familiarize themselves with these regulations before entering the Indian market.

- the competition. It is an increasingly competitive market, with the presence of local and international companies.

- Solid economic growth: India has experienced steady economic growth in recent decades, with rates often exceeding 7% annually. Although growth rates may fluctuate, India is expected to remain one of the fastest growing economies globally. This growth has been driven by sectors such as information technology, agriculture, financial services and manufacturing.

- India's leadership in the region and the opportunities derived from it for Spanish companies;

The Spanish Chamber of Commerce is deeply committed to supporting Spanish companies that already have a presence in India or that want to enter that market to take advantage of the many opportunities that arise.

Antonio Bonet

President of the Spanish Exporters and Investors Club.
 

What assessment do you make of India as a market of opportunities for Spanish companies?
With 1.417 million inhabitants, India has recently surpassed China as the most populated country on the planet, and in this sense the first thing that draws attention is the low volume of Spanish exports to this immense nation: barely 1.780 million euros in 2023, when in that same year we sold to China, as we have said with a similar population, for an amount of 7.578 million euros.
Secondly, we note the imbalance in our trade balance, since we buy about 5.848 million euros from them per year, which results in a deficit in the bilateral balance with India of 4.068 million, always figures for the year 2023 as a whole.
What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?
The increase in sales from Spain to India, which is one of the countries included in the Strategic Sector Action Program (PASE), is of primary importance, since one of the “Achilles heels” of Spanish exports is their excessive concentration on the European continent, to which we sell almost 75% of what we export.
In addition to solving the current problems that we suffer today in the area (stranglement of supply chains, Red Sea crisis), Spanish Exports need better knowledge of the Indian market, which is enormously complex, and long-term actions that must be taken. of the clichés and prejudices that have always been expressed towards this country. For example, and contrary to the secular image of India, today it is a great exporter of food, which is certainly the most abundant of what Spain acquires in the Asian subcontinent. Greater knowledge, more frequent bilateral contacts and solutions to current problems may be ways to increase Spain's presence in India.
What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?
It is a high-growth market, and as such it can bring very high returns to Spanish investment. In addition to presenting very favorable costs, which allows them to be very competitive in international exchanges. In this case, the long-term vision is essential, as is the active support of Spain's diplomatic network and the assistance of public organizations created for this purpose, such as ICEX or CESCE. 

Enrique Cuadra

Corporate Director of Risks, Information and Claims at Solunion  

What assessment do you make of India as a market of opportunities for Spanish companies?

India continues to be an attractive market for Spanish companies, despite the challenges that the country presents, and we predict that it will become the second largest economy in the Asia-Pacific region by 2030. After the pandemic, the Indian economy has shown great dynamism and its economy is expected to recover and maintain solid growth in the medium term. 

Likewise, thanks to its particular demographic characteristics (high population density and growing middle class) and its developing infrastructure, India offers multiple opportunities in a wide range of sectors, from technology to energy, including health and education. . However, it is important for Spanish companies to understand the unique challenges of the Indian market and adapt their strategies accordingly.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

Without a doubt, India is an emerging power with a very particular context. Its operations present great challenges that must be carefully analyzed and understood by companies that wish to be successful in their market. 

Among the various key points that must be taken into account, we highlight three that are fundamental: the enormous cultural difference, which requires a prior in-depth analysis exercise; understanding the country's legal and regulatory environment, which is complex and may vary by sector and state; and the dizzying social and economic transformation that is taking place in India and which represents a significant adaptation challenge for companies. In this sense, we will have to be very attentive to the electoral process that has been taking place since April 19 and whose results we will know on June 1. 

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

Due to the great differences that this market presents with respect to the Spanish one, it is advisable to carry out exhaustive research to understand the needs and preferences of the consumer, understand the local competition and understand the dynamics with suppliers and clients. In this sense, going hand in hand with experts who can help with information about the solvency of potential business partners that come into play throughout the life cycle of the company can make a difference. 

India represents a moderate risk for entrepreneurship and its economy performs well among emerging countries, with an average growth of +6,5% during the period 2000-2019 and +6,9% during the period 2010-2019. However, certain weaknesses remain in terms of its fiscal health, investment and financial freedom, as well as bureaucratic pressure. Therefore, in this sense, flexibility, management of cultural differences and long-term commitment are key aspects to be able to adapt to their particularities. 

Furthermore, managing commercial risk through prevention, but also by covering accounts receivable with tools such as Credit insurance, can help build a solid and sustainable presence in the country in the long term. 

Juan Carlos García

Head of Air Cargo and Lamaignere Projects

What assessment do you make of India as a market of opportunities for Spanish companies?

 Now is a good time, within the investment plan that they have been undertaking with their “Making India”

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

The main keys are that India is looking for technology that it lacks, but with a great danger of hoarding and appropriating it once known, it must be protected from the misuse that they can make of that technology.                                                 

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?  

Protection of the technology that is applied, and the rights that emanate from it.

Isabel Cortes

Head of Institutional Projects and Relations at PONS IP

What assessment do you make of India as a market of opportunities for Spanish companies? 

India is a market brimming with opportunities for Spanish companies, but it also presents certain challenges, pointing its Intellectual Property in that same direction. A strategic approach is essential to address it, allowing Spanish companies to understand the business and legal environment in which they operate and minimize their risks.
The country has aligned its legislation with international standards to guarantee the effective protection of intellectual property rights. Furthermore, although there is no law exclusively dedicated to trade secrets and know-how, Indian courts recognize their importance. 
Under Modi's leadership and with elections looming, the country is well aware that the preservation of Intellectual Property assets is essential to promote innovation and technological advancement. Proof of this is the latest WIPO global innovation index, which places India in position 40 as a global leader in innovation, leading the group of economies in the Central-South Asia region and standing out in innovation for 13 consecutive years. . 
Another additional indicator is the relaunch of negotiations with India by the European Union in 2022 for a Free Trade Agreement and an Agreement on Geographical Indications (GI), where the Industrial Property chapter will also play a relevant role.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?
Among the specific recommendations regarding Intellectual Property for companies wishing to make their way into the Indian market, we suggest the following: register your rights in India to ensure your legal protection, including patents, trademarks, designs and copyrights. Without forgetting to look for ways to protect trade secrets; comply with intellectual property regulations once in India, as well as implement a robust surveillance system to detect infringements. Adapt to local business culture, which may involve adjustments to brand names and logos. Throughout this process, it is relevant to seek specialized legal advice with experience in the Indian market to facilitate this process and help anticipate inconveniences.

Manuel Alcocer Alvarez

International Trade Specialist

xNova

¿What assessment do you make of India as a market of opportunities for Spanish companies?
India as the “factory of the world” is an idea that is not so far from reality, but with nuances: I do not consider that it will have the same evolution as China. This country has traditionally been known for its cheap labor and a place where European companies offshored the production of lower value-added goods, but it is now the 5th largest economy in the world.

The sectors where I believe that Spanish companies should focus on India are railway and communications infrastructure (where the Indian country suffers from port and land transport inefficiencies, an area where the Chinese wanted to bet heavily), renewable energy (India has major problems of waste, water management and pollution). Investment in R&D is key for Spain, placing us in a quality-price range that positions us more advantageously with respect to more expensive producers such as Japan and the United States.

In agribusiness, India demands an increasingly automated and advanced supply and production chain, so assembly and packaging machinery, greenhouses and irrigation systems are niches to be taken advantage of by Spanish companies. Last but not least, the Smart Cities sector is one of the most virgin today, due to the need to improve urban mobility.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

If we analyze the market, the Spanish businessman and investor must increasingly consider that the average Indian citizen is capable of purchasing higher quality goods and must provide them with greater added value products. Due to the highly competitive domestic market and price sensitivity, Spain must focus its efforts on specific market niches, high technology and gourmet foods.

Differentiation is key, in a market where it is practically impossible to compete on price, where the supply is saturated and where internal local competition can be greatly harmed (leading to even more import tariffs to protect products of Iberian origin, both industrial as feeding).What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

We will see what happens with India's Trade Agreement with the European Union (signed in January of this year and waiting to be launched), which aims to boost bilateral trade and investment much more in a country that still struggles against poverty and wants to increase per capita income. Today, tariff barriers, political and administrative bureaucracy in projects with companies and the government are a clear obstacle for companies. Furthermore, with a more than possible victory for Narendra Modi and being re-elected as president in the elections, my fear is that this trend towards protectionism will continue. However, the scenario is very propitious.

At the level of business philosophy and cultural idiosyncrasy, I have come to the conclusion that the Indian is a patient buyer, but also more relaxed, where communication and the desire to get to know their suppliers is the order of the day. Where Japanese is too formal, Indian is at a very balanced and more flexible point.

Direct contact with the employer is key to guaranteeing long-term relationships. Unlike the Chinese (although it is reckless to generalize), where there is a focus on results and somewhat more detached from emotions, I have been able to observe that Indians value human connection much more. Of course, long decision processes are completely common given the complex hierarchies in companies and the Indian habit of establishing consensus among many parties within the organization.

Nicolas Mouze

Marketing and Sales Director at DHL Express Iberia

What assessment do you make of India as a market of opportunities for Spanish companies?

Almost three decades after the liberalization of its economy, and with a population of more than 1.400 billion people, India is growing in every sense, making it a smart choice for any company looking to expand into new markets. The good bilateral relations between Spain and India have meant that, between January and September 2023, Spanish exports were 1.363,10M euros, while imports were 4.570,29M EUR, according to ICEX sources.

This positions India in 31st place as a client of Spain, and in 14th place as a supplier to Spain. More and more companies are betting on new business opportunities within the Indian market and vice versa. Clearly, a growing trend is perceived.

The rise of its middle class is, in large part, the driver of this change. In fact, some estimates put the number of people who meet the criteria of middle class in India at around 400 million, the same as the entire population of South America.

In addition, there are currently approximately 210 to 230 million online buyers in India. According to the Deloitte Global TMT 2022 (Technology, Media and Entertainment, Telecom) predictions report, it is expected that in 2026 the country will have 1.000 billion smartphone users, which translates into more and more potential online consumers and It is expected to become one of the countries in which electronic commerce grows rapidly. Some estimates from Statista, prepared in June 2023, suggest that in 2027 73,7% of its total population could be e-commerce users.

It is also important to highlight India's gains in connectivity as a catalyst for change. Data from the recently published DHL Global Connectivity Index 2024 indicates that the country ranks 62nd out of the 181 economies analyzed. India's overall score, which measures its absolute level of connectivity, has increased by 0,9 points over the past five years. Since 2021, the country gained 2 places in the ranking and its score grew by 0,5 points.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution??

India is currently the seventh largest player in the world in international flows (trade, capital, information and people flows combined) and our experience in the Indian market supports us.

DHL has been established in India since 1979. Our robust network and knowledge of this market position us as the leading international express transport operator in India. Additionally, DHL's gateways, Delhi (DEL) and Bangalore (BLR), connect India to more than 220 countries and territories, ensuring increasingly faster transit times.

On the other hand, we are experts in international trade, having been the first international express transportation company certified by TAPA (Transported Asset Protection Association) in India.

Regarding digital payments, we see how, day by day, the Indian market is quickly getting used to online payment systems, thanks to the rise of what, we have already mentioned, smartphones or digital wallets.

Without a doubt, India has become one of the fastest growing economies in the world, with a positive relationship between countries' levels of economic development and their levels of global connectivity. This means that India's international flows have great potential to grow even faster than its domestic activity in the future, placing the country in an increasingly central role in the future of globalization.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

India is a country with great wealth in cultural and religious diversity. This is a very important factor, as any business should have a clear idea of ​​the demographics of its target audience, including age, budget, the online marketplaces they shop at most, the social media platforms they interact with, and your preferred payment methods.

On the other hand, India has strict customs procedures that can be time-consuming and complex. Shippers must provide detailed documentation such as POA (power of attorney) and invoices with comprehensive descriptions, value and quantity. Additionally, the country imposes import taxes and duties on many products, which can increase the price of shipping. Added to this is that carriers must also comply with specific regulations to ensure that such shipments are dispatched quickly and efficiently.

In this sense, DHL Express has an expert customs team, responsible for providing personalized advice to any company that wishes to make its way into the Indian market. The company thus positions itself as a delivery provider capable of guiding its clients through its team of international trade specialists.

Furthermore, within this complex landscape, DHL Express guarantees an easy and comfortable option to carry out these procedures with its DTP (Duty and Tax Paid) service. Through DTP service we provide users with an easy and hassle-free e-commerce delivery experience. The seller covers all duties, taxes, and import fees associated with shipping the product, allowing consumers to receive their purchases at no additional costs. DHL DTP is a valuable tool to help expand the presence of any company in the Indian market, by providing a very positive shopping experience that can not only help build customer loyalty, but also strengthen the brand itself.

Alberto García

Pricing & Procurement Manager - SAF
Moldtrans Spain 

What assessment do you make of India as a market of opportunities for Spanish companies?

As an international transport company, our vision would be slightly biased since our clients are companies that trade in goods, and at a global level, India since the 1990s has stood out for its great specialization as a service provider, especially in the field of computer engineering. and telecommunications. 

India is a country with a negative trade balance, however in the case of the India – Spain bilateral relationship the trade balance is favorable to India, with the value of imports from India to our country tripling the amount of our exports to the Asian country.

In the area of ​​foreign trade in goods and considering that since 2023 it is the most populated country in the world ahead of China, together with the exponential growth of its middle class, Spanish companies in sectors such as plastic materials, automotive, industrial machinery or food, among others, still have a long way to go to grow.

As a supplier, the role that India plays in industries such as textiles, chemicals and metallurgy is notable.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

From the point of view of international logistics, for any exporter/importer, we would recommend working with a company specialized in said market such as Moldtrans, where having the support of a reliable correspondent in India is essential to not put at risk operations and to be able to count on good support from the main Indian ports and airports.

The country is immersed in a plan to improve its main port facilities as well as its railway network, but the truth is that its current infrastructure is operationally low in efficiency when compared to that of other countries, which accentuates the importance of That the local logistics partner with whom we work has great knowledge and means to handle shipments, whether air or sea.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

For Spanish exporting companies, it is key to stay duly informed about the continuous negotiations that are taking place between the European Union and the Asian country, where intense work is being done to try to reduce the tariff pressure on EU products. This is a complex issue since it clashes squarely with the government program “Make in India” with which the country has been promoting local manufacturing and consumption in recent years to balance its balance of payments.

On the other hand, and in general when doing business there, having local help is more than recommended to be able to deal with the bureaucracy and excess of existing regulations.

Alfonso Ortega Gimenez

Partner-Director of COEX INTERNATIONAL TRADE, spin-off of the Miguel Hernández University of Elche

What assessment do you make of India as a market of opportunities for Spanish companies?

Currently, India is the fifth largest economy in the world and is estimated to be one of the three world powers in economic terms in the coming years, along with China and the United States.

Spanish-Indian trade cooperation has focused on the telecommunications, agri-food, pharmaceutical, infrastructure, environmental technologies, security and tourism sectors. Precisely one of the main objectives of the Indian Government has been to attract foreign direct investment and promote measures to boost investment dynamism. Relying on the 'Make in India' initiative, it has tried to encourage investments in the manufacturing sector within the country and turn it into an industrial production hub for domestic and international markets. Another of the Delhi government's programs is the strategy for a new India, with which it aims to celebrate the 75th anniversary of the country's independence. The main objective is to make India a 4 trillion dollar economy in which development involves the entire country and ensures more balanced growth between its different territories and sectors by promoting new technologies, innovation and qualifications. The initiative also includes transforming the public sector to make it more efficient.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

The biggest mistake companies make when considering India as a market is that they do not do enough research. To say that India is huge would be a huge understatement. A country with 1.300 billion inhabitants, multiple languages, ethnicities, climates and geographies cannot be approached as a homogeneous unit. Therefore, doing a good market study is essential to define our strategy in India. 

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

Administrative bureaucracy and excess regulations are some weak points of the Indian market, therefore, legal planning is essential to open doors and have specialized legal advice to facilitate the management of procedures.

The establishment of a foreign company in India can be done in two ways: by creating a representative office; or with the creation of an Indian company, in the form of a “joint venture”. 

Things don't always happen quickly in India as we would like. Most European companies that successfully started in India in recent years, moving their production or opening a business office, did not really reap the benefits until 3-5 years later. 

Indians take their time to get to know you before deciding to do business with you. Building relationships takes time, patience, and financial resources.

Abhishek Gandhi

Dry cargo expert BERGÉ

What assessment do you make of India as a market of opportunities for Spanish companies?

India is a country full of new opportunities and its potential has been on the rise for the last 10 years. In the last 2 years, India has focused its main attention on becoming the epitome of global manufacturing.

India's GDP growth is above 6% when, according to the World Bank's economic outlook, the United States is expected to grow by 1,4% in 2024, while Germany and Japan will grow by 1,1 and 1%, respectively. Even China will grow below that figure, around 4,5%. Currently, India is the fifth largest global economy.

One of the advantages of manufacturing in India is its ability to offer quality products while remaining price oriented, something other countries cannot focus on.

Two sectors with a great connection between Spain and India are leather and textile manufacturing. All the big fashion brands are manufacturing their products in India when quality vs price is a factor. Even Spain is also adapting and accepting the colorful designs of the country's typical designs, which will be the next advancement in the fashion industry.

Conversely, Spain has become one of the biggest tourist attractions for people traveling from India. In 2022 alone, 145.000 Indians visited us and this is a tourist with an above-average spending average and who enjoys a stay in our country of up to nine days. There are many opportunities that a Spanish company can explore in terms of tourism.

Another market that remains untapped is wine, which is still considered a luxury product in India. Spanish wines, known for their quality, diversity and excellent value for money, have started gaining ground among Indian consumers. However, it is important to note that the wine market in India is still relatively niche and is dominated by wines from traditional wine-producing countries such as France, Italy and Australia.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

Indians value long-term relationships in business and are willing to invest time and effort in maintaining them. Building trust and effort over time is crucial to succeed in the Indian market.

Another key is religious sensitivity. Religion has significant importance in Indian culture, so it is essential to approach any connection or emotion related to religion with care and respect.

On the other hand, India is a highly competitive market with a wide variety of businesses, including small-scale entrepreneurs. Due diligence is necessary to ensure trustworthy partnerships and avoid fraudulent companies.

Finally, certain barriers must be taken into account. For one thing, India's extreme weather conditions, especially during summer, can pose challenges for physical visits and travel. However, leveraging digital tools for communication and meetings can mitigate these challenges to some extent.

The same happens with infrastructure. Although India has made significant improvements to its domestic infrastructure, challenges remain, especially in the railway system. Air traffic is increasing, offering more travel options within the country.

And finally the language barrier. While English is widely used in Indian business environments, there can be challenges with the language. India lacks adequate translation resources compared to other countries like China.

What specific elements would you recommend that companies that want to approach the market, maintain and even invest in India take into account?

You have to be understanding of their culture. Holidays and festivals are significant in India, both culturally and religiously. Having a deep understanding of these can help build connections and understand the pace of business in the country. In Spain we understand this well, it already happens with Christmas, Easter or local holidays.

You also have to be understanding of political movements. India's political landscape may impact trade regulations and policies. Being aware of political dynamics can help you navigate the business environment more effectively.

A third key is to establish local partnerships, which can provide invaluable support in navigating cultural subtleties, language barriers, and identifying credible business opportunities. They can also help filter out fraudulent companies, which is crucial to business success.

Local associations often have extensive knowledge about the market, industry trends, and regulatory requirements. Collaborating with them can provide information and resources to make informed business decisions.

Finally, a nod to technology and digitalization. India's connection with technology is well known and it has embraced digitalization in various sectors. Leveraging technology can facilitate communication within the company and with external stakeholders, improving efficiency and productivity.

Pablo Lopez Gil

General Director of the Forum of Renowned Spanish Brands

What assessment do you make of India as a market of opportunities for Spanish companies?

India is the fifth largest economy in the world, with a GDP of 3,2 trillion dollars, which already represents an undoubted attraction, and with enormous potential, due to the large number of reforms and investments to modernize its economy that its vast territory requires. . Furthermore, this country has been experiencing continuous growth in recent years of around 6%, above the world average, which is an incentive. And its more than 1.400 billion consumers are a great asset, but we must also consider the great income inequality that this market presents. 
Currently, there is already a large Spanish representation in this market with more than 230 companies from our country that have subsidiaries, joint-ventures, branches or representative offices in India, many of them members of the Forum of Renowned Spanish Brands. The investments of these companies are concentrated in infrastructure, renewable energy, automotive components, water, and textile retail trade, so there is already a Spanish presence in that market, but it is still insufficient for its growth potential. 
However, trade relations with this country have been favorable to India in recent years since imports from Spain almost triple our exports, with a coverage rate of around 30%. India is still Spain's 31st customer and is the 14th supplier in terms of goods and merchandise. 
It must also be considered that it is a country considered a priority by the Secretary of State for Commerce, included in its PASE program (Countries with Strategic Sectoral Action). The most interesting sectors for Spanish investment are infrastructure (transport and energy), construction machinery for large engineering works, environment, agricultural technology, specifically in food processing and machinery related to the cold chain, automotive and components, machine tools, defense, pharmaceutical sector, health sector and tourism. The Indian market also presents opportunities in transportation infrastructure (railway and airport sectors) or the industrial sector (packaging machinery, automotive components and advanced manufacturing). In the agri-food sector there is demand for gourmet products, such as oil or fruits, and in the consumer goods sector, interest in beauty and personal care products stands out.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

One of the most important aspects to consider is that India is a fairly protectionist market, with a consolidation of this policy in recent years. Import tariffs remain very high compared to international standards, with high volatility and lack of transparency in regulation, often representing a barrier to entry. Non-tariff barriers are also very relevant in India for products such as agricultural products, medicines and medical devices, cosmetics, or financial services, among others. 
In recent years, India has undertaken a program of economic measures aimed at improving the business climate in the country. Thus, it has undertaken a tax simplification that aims to increase exports and boost national manufacturing. The government of Nerendra Modi, which is the favorite to be re-elected in the elections that end in June, is a defender of free enterprise and has tried with its measures to provide the country with greater stability to attract foreign investors and companies.  
Examples of this policy are the Make in India program, which aims to turn the country into a global manufacturing center, through the development of infrastructure and the promotion of foreign direct investment. And Self Reliant India, another program that pursues import substitution by the consumption of local products, policies that aim for self-sufficiency, which must be taken into consideration when approaching this market. These programs also focus on the promotion of seven key pillars for the country's development, which are roads, airports, ports, railways, mass transportation, navigation routes and logistics structures, since first and last mile connectivity, together with Excess bureaucracy and slowness in conflict resolution are some of its negative points.  

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

Fundamentally, it is a very diverse and complex market, due to its cultural and religious differences with the West, in addition to the internal linguistic ones. In addition, it must also be taken into account that legislation may vary depending on each region, something that may determine relationships with commercial chains and also the implementation format in this country.
Another characteristic of its market is its very large middle class, still in consolidation, which has consumption patterns focused on manufactured products and services, to the detriment of other primary products. According to available studies, the middle class segment, which is more prone to consumption, is also very sensitive to price and cultural and local affinity, so design and price are important factors when facing this market.  
The services sector is the most dynamic of its economy, since it contributes 53% to its GDP and it is a major exporter in this area, ranking 7th worldwide. India is well known for its technology industry and highly skilled workforce in software services. Likewise, India has great interest in renewable energies, which represents an opportunity for this sector in Spain; The technology, renewable energy, along with infrastructure development, automotive, pharmaceutical, and food and beverage sectors are some of the most promising in terms of their development and projection in the future. 
In short, the quantity and quality of the investments that this market attracts point to very good future prospects, and it is a country that generates a lot of interest from Western countries that seek greater commercial stability and diversification of their supply chains. Therefore, the US and the EU hope to close a free trade agreement in the short term, an agreement that could allow them to overcome their protectionism.

Sergio Sánchez Solé

Partner responsible for the Garrigues Indian Desk

What assessment do you make of India as a market of opportunities for Spanish companies?

What assessment do you make of India as a market of opportunities for Spanish companies?

Right now it is very difficult to find regions in the world with greater growth potential. We rarely find comparable conditions in other emerging countries, not only because of the size and dynamism of their economy, but also because of their political stability, the solidity of their institutions, and their privileged position in the complicated Asian geopolitical map. The country faces important challenges (demographic, social, logistical), true, but in part precisely for this reason, the potential of its economy is enormous.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

The Spanish investor must not forget that in India, despite recent progress, and despite its favorable comparison with the majority of its neighbors, legal security is not comparable to that of neighboring countries.

You must also take into account that the infrastructure deficit that India suffers from, which offers so many opportunities, increases the distances in a country of already considerable extensions, forcing us to adapt to physical and logistical realities completely different from those we experience in Europe.

Finally, the extraordinary fragmentation of the Indian market must always be kept in mind: despite the efforts of the Indian government in recent years, the truth is that each state continues to be a market of great autonomy with respect to the others, with regulations and circumstances economic, political and legal completely differentiated from the rest.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

It is always advisable to seek the best possible advice before undertaking investments in an emerging market. In the case of India, this advice extends to the entire process, from the initial design in Spain to the final execution in India. The good news is that the Indian economy is sophisticated enough to offer, in its main centers, a range of advisory possibilities that has nothing to envy, in terms of quality, to what the Spanish investor can find in our country.

Marta White

President of the International Relations Commission of CEOE

What assessment do you make of India as a market of opportunities for Spanish companies?

With more than 1.400 billion inhabitants, half of them under 35 years of age, India has become the most populous country in the world. Likewise, it is consolidating an increasingly large middle class and it is estimated that by 2025, it will be the third largest market in the world, with an approximate consumption of 4 trillion dollars and a purchasing power high enough to adopt purchasing habits every time. more similar to Westerners. Furthermore, for 2024 and 2025, the IMF projects 6,5% growth for India. All this allows us to be very optimistic about the opportunities for Spanish companies.

Likewise, Spain-India bilateral trade already exceeds 6.000 million euros and a growing volume of contracts and investments in the medium and long term can be seen, in several sectors with a significant knock-on effect, such as infrastructure, automotive and sustainable transport, energy renewables, construction, food processing, science and technology or defense and security, among others.
Furthermore, we must highlight the complementarity of Spanish and Indian companies in many of the aforementioned sectors, which makes it increasingly common not only to consider access to the Indian market, but also to identify local partners with which to take advantage of synergies. and its international presence, to develop a common strategy and be more competitive both at the local Indian level, and in a possible collaboration in third markets.
Although, given its size and diversity, India is not a homogeneous or unique market, it is therefore increasingly necessary to carry out an in-depth prior study and develop a well-defined strategy before making the decision to enter India.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

Currently there are more than 250 Spanish companies established in India, when in 2008 there were only 60 established companies. In turn, more than 6.200 Spanish companies currently export to India. A common denominator key to the success of the vast majority of established Spanish companies has been the identification of a good local partner and a long-term commitment to the Indian market.
Participation in Spanish-Indian business events, such as the one recently held at CEOE on the defense sector, where we had the participation of the Indian embassy, ​​the Secretary of State for Commerce, the Chamber of Spain, the defense employers' association TEDAE and numerous Spanish and Indian companies, or the business meetings that we hold within the framework of the exchange of high-level visits, offer a great opportunity to facilitate the identification of partners, learn about business and investment possibilities, as well as the guidelines that administration and the private sector , promote to foster a favorable climate for foreign investment. Likewise, being in contact with economic and commercial offices, embassies and business organizations is more than recommended to define the internationalization strategy.
Know the viability of the projects that you want to carry out, after being analyzed with the experience and knowledge of the aforementioned institutions, have institutional support when starting them up and reduce or even eliminate many of the obstacles that arise. can be appreciated at first, are some of the main advantages that public-private collaboration offers, to help the internationalization of our companies.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

The Spanish Confederation of Business Organizations (CEOE) maintains collaboration agreements with the main Indian business organizations, such as the Confederation of Indian Industries (CII), our counterpart within the International Organization of Employers, the Indian Federation of Chambers of Commerce and Industry (FICCI) and ASSOCHAM. This shows the importance that CEOE gives to India, as one of the markets, at this time, with more business and investment opportunities for Spanish companies.
To enter India, it is highly recommended to do a detailed analysis of the different regions, clusters and business ecosystems that the country offers. To this end, territorial and sectoral business organizations and the Spanish and Indian administrations themselves can be of great help in identifying the incentives or financial instruments offered by each region, to encourage foreign investment and get advice on how to establish themselves in the quickest and most efficient way. effective.
Having a long-term commitment and vision when developing the strategy, as well as empathizing and knowing the Indian business idiosyncrasy, is also a priority to achieve success in India. To do this, physical presence and an effort to become familiar with the business and bureaucratic framework of the country are increasingly necessary.
On the other hand, the EU-India Free Trade Agreement under negotiation is another important aspect to take into account as a lever to boost trade relations.

Fernando Ferrero

Director of the Internationalization Area of ​​Andalusia TRADE - Business Agency for the Transformation and Economic Development of the Government of Andalusia

What assessment do you make of India as a market of opportunities for companies?
Spanish?
India is a strategic and priority market for Spanish and, therefore, Andalusian companies for several reasons. I would highlight its solid economic development, with a forecast of 6,5% GDP growth in 2024; and its position as the fifth world economy, with prospects of growing to third place in 2030. In addition, its policy of opening to international trade, as shown by its treaties with countries such as Australia, the United Arab Emirates or Canada, and the ongoing negotiations to an agreement with the EU, will put us in an unbeatable position.
Finally, we must highlight the business opportunities that, in the case of Andalusia, focus on the aeronautical sector, where we have a strategic industry promoted in the Indian market with the project to manufacture 56 Airbus C295 aircraft for the Indian Air Force. , of which 16 will be made and delivered from Andalusia. For this reason, from Andalucía TRADE we are supporting the sector through various actions, such as trade missions, to connect the Andalusian offer with the key actors in India.
What are the main keys and challenges of operating in India that you can recommend from your experience and institution?
From our experience, we can highlight several important keys to operating in India. Firstly, the demographic dividend is crucial, as the country has a large number of fast-growing cities, but also faces problems such as poor infrastructure; which is a highly price sensitive market; and that they have to improve competitiveness by modernizing the supply chain.

Another challenge is the high tariff burden, so until a Free Trade Agreement is achieved between the EU and India, it is necessary to drastically reduce tariffs so that our products are more competitive in the market. We are talking about a tariff of 45% on virgin olive oil or 30% for olives. Despite this, in the last ten years Andalusian exports of these products have increased, so Andalusia's strategy is to maintain this position of sustained growth, which will surely skyrocket once tariffs are reduced.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?
India has a vast domestic market and its geographical location makes it a strategic gateway to Asia. In addition, it offers a stable political environment and legal certainty for foreign investments, since the country allows investment with 100% foreign capital in most sectors and offers incentives for it. It should be noted that investments have grown around 20% in one year, surpassing other countries in the region such as Singapore and Indonesia.
In short, it is crucial to be present in India, retain business partners, participate in key events and have professional advice to take advantage of the opportunities offered by this growing market. From Andalucía TRADE, we offer teams and partners in both Spain and India to support companies in their entry and expansion in the Indian market.

 Vicenç Vicente

Head of International Promotion of the Sabadell Chamber of Commerce

What assessment do you make of India as a market of opportunities for Spanish companies?

India is a country on the scale of a continent. It is one of the emerging markets with the greatest growth potential in the world. It is the most populous country on the planet with more than 1.400 billion inhabitants, ahead of China, it constitutes the fifth largest economy in the world and is expected to become one of the top three in the coming years, along with China and the United States. Since its economic and commercial opening in the nineties of the 6,5th century, average economic growth has been at rates higher than 7,8%, which has contributed to the rapid development of a growing middle and upper class with a high capacity acquisitive. The IMF estimates GDP growth of 2023% in 6,8 and projects growth of XNUMX% for this year.

India offers significant opportunities for Spanish companies, but also presents challenges.

Spanish companies have enormous growth potential in the country. Among the sectors of opportunity for Spanish companies we can highlight:

IT & ITeS: Information Technology (IT) and Information Technology Enabled Services (ITeS), Biotech (Healthcare, Pharma and Medical Technologies), Green Technologies (Renewable Energy, Water Treatment and Waste Management), Agro Tech food processing, agro-industrial and agrochemical goods, chemical sector, transportation infrastructure (railway and airport), automotive components (cars and motorcycles), packaging machinery and

packaging, Premium sector (food, cosmetics, beauty, premium goods and services) and fashion textiles.

What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

I would recommend that companies, before entering the Indian market, conduct in-depth research on the business culture, regulations, market trends and specific opportunities in their sector (the Commercial Offices, the ACCIÓ Bombay Office and the Chambers of Commerce can be a very good source of information), which will have good legal and tax advice due to the complexity of regulations, procedures, local regulations and applicable taxes and tariffs (Spanish law firms and financial entities destination can be very helpful in this area), who will adapt their products to the market, who will dedicate time to build a good network of contacts with local partners, thinking about the medium and long term (in this sense, participation in trade missions is recommended and fairs organized by various Spanish institutions) and, finally, I would recommend a good dose of patience, humility and persistence.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves or even invest in India?

In short, entering the Indian market requires maintaining a long-term perspective, taking into account the country's diversity, flexibility and capacity to adapt, meticulous planning and careful selection of local partners with whom one seeks to establish a commercial deal. .

Cristina Pena

General Director of TuComex

What assessment do you make of India as a market of opportunities for Spanish companies?

India is a country full of opportunities for our companies, whether we base it on its unbeatable numbers or if we base it on its unparalleled idiosyncrasy, its own business culture and the points of union with ours, as well as its perennial needs that are still to come. cover like those that the “global and digital” world has generated for them.

Their record figures in relation to the different perspectives are:

-its population (in 2024 it is already the largest in the world),

-its potential demand in crescendo, both due to its demographics and its progressively greater purchasing power, the result of its digital transformation, which has become the greatest vehicle for its sustained growth, today India is the fifth largest economy in the world and Its GDP grows more than 6%.

In 2022, the EU relaunched negotiations with India to achieve a Free Trade Agreement with the Asian country. As for Spain, a year ago the XII Spanish-India Mixed Commission and the Spain-India Business Meeting were held in Delhi, among other economic and commercial meetings.

India is therefore a priority country in Spain's internationalization policy. Our exports to India have increased progressively in recent years.

As a consequence of all this, our consulting firm, TuComex, has two active trade missions to India for exporters, which will take place in the months of October and November 2024, focused on the renewable energy and gourmet products sectors, respectively. . These are the two sectors that I would personally name as having the greatest opportunity in our opinion.

- What are the main keys and challenges of operating in India that you can recommend from your experience and your company/institution?

India, like other countries such as South Africa, are today recipients of technological outsourcing and large offshoring projects.

Therefore, we have to understand its adjacent business culture: cost centers controlled by external and global companies, high-value technological training, low labor costs, vertical integration in many sectors, more and more raw materials in the process of certifications for European standards, etc.

As mentioned in the previous point:

-India is a good supplier of technology, textiles, soon economic automobiles, etc.

-India is a good customer for food products with a differential value, as well as for energy and construction.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

India has managers and businessmen who are great negotiators, which means that international negotiation is key to the sustainability of the agreements that are created, carefully defining the optimal collaboration framework for all parties, if not, it can be reached. export to a market that only provides volume and no margin.

Any decision will require a study of the complete international price that involves customs, insurance, transportation and logistics, certifications, supplier approval, cargo security, inspections, as well as the costs of non-quality.

Juan de la Cruz Martin

Manager of CyComex, the Credit and Surety internationalization services portal

What assessment do you make of India as a market of opportunities for Spanish companies?

India remains one of the world's fastest growing economies, although it faces problems common to many other countries, such as inflationary pressures, commodity price volatility and supply chain disruptions following the pandemic and the Russian invasion of Ukraine. Spain presents historical highs in terms of export sales to this destination, but, nevertheless, the trade deficit is widely exceeded by purchases, almost three times higher than sales. While exports have grown by more than 50% in the last ten years, imports from India have multiplied almost threefold. It is the 35th country in the ranking of Spanish exports, with a 0,5% export market share. Opportunities exist in sectors such as information technology, telecommunications, pharmaceuticals, textiles and engineering, where Indian companies are recognized for their ability to innovate and compete. Spain in particular, finds opportunities in the construction sector with the export of raw materials, and annexes to the construction sector, in addition to the chemical and pharmaceutical sector, among others.

What are the main keys and challenges of operations in India?

The main challenges faced by any foreign business that wants to start an internationalization strategy with India include high tariffs and protectionist policies by the authorities with excessive and unpredictable regulation in some cases. India is the country with the highest average tariff of all G-20 countries, and some of the highest bound tariff rates within the WTO. On the other hand, Indian customers and consumers are very sensitive to price, which means that companies in some cases have to adapt their products, with consequent increases in production costs. There are problems with development in infrastructure, roads, railways, seaports and airports, congested and

inefficient that limit growth in some cases. The decentralization of the country into 28 states, with great administrative power for each of them, means that sales strategies are different depending on which States the sales are directed to. Normally in operations with governments or public entities through public bidding, domestic Indian companies are favored over any other foreign firm that wants to bid.

What specific elements would you recommend to take into account by companies that want to approach the market, maintain themselves and even invest in India?

As prerequisites to be able to approach the Indian market, strategic planning, due diligence, persistent follow-up, patience and commitment are highly recommended. Furthermore, the language, culture and consumer behavior vary from one state to another, so exporting companies must be versatile when adapting their product to each circumstance. On the other hand, face-to-face meetings are valued as a fundamental prerequisite for reaching commercial agreements, although virtual meetings are becoming more common after the pandemic. There is significant untapped potential in India across all sectors, with many international companies seeking market opportunities and facing a growing base of local companies across all sectors. Given the increasing competition, it is important to identify target markets and find qualified partners who know these markets well. Spanish exporters should consider establishing subsidiaries or joint ventures in India. Currently, there are around 270 Spanish companies established in this export destination in sectors of activity focused on the financial world, industrial machinery and related to automobiles, mostly. From Crédito y Caución and the internationalization services of CyComex we offer coverage for possible defaults of clients in this country and solutions for strategic decisions that have to do with commercial relations with India.