Why the international companies not showing the interest in india ?

Question

Why the international companies not showing the interest in india ?

Answer 1

Maybe they are finally listening to the US workers, who don't want to lose their jobs, & the people who have to call these businesses, who can't understand the accents. I know I can't.

Answer 2

Well, that depends on what type of interest you are talking about.  Interest in promoting jobs or interest in selling products?  Certainly many companies are interested, and actively persuing, job development in India, particularly in the IT sector (Dell, HP).  But, there is not that much of an interest in India in terms of marketing and products (which I think is what you are referring to).  India has the world's second highest population, so that means per capita GDP is relatively low.  While India has a GDP of $805B, the per capita is only $3800 per individual.  Companies are unwilling to invest large sums of money in marketing and selling products to people who cannot buy them.  A large portion of the Indian population still lives under the poverty line, further leading to a lack of interest.  

The government also has a lot of the blame as well.  The government has reduced controls on foreign trade and investment. Tariffs averaged 12.5% on non-agricultural items in 2006. Higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications. However, tariff spikes in sensitive categories, including agriculture, and incremental progress on economic reforms still hinder foreign access to India's vast and growing market. Privatization of government-owned industries remained stalled in 2006, and continues to generate political debate.  All of these combine to lessen the likelihood that international companies will show interest in India.

Answer 3

Hm I remember reading vaguely about it. I think companies used to try to invest there, but the returns just didn't meet their expectations. Also remember something about a lot of companies being family owned and their refusal to sell it.

Answer 4

Where have you been?International companies like GM,Microsoft,IBM,HP and many more already have a presence in India.

Answer 5

As far as I know, there is a lot of International interest in Indian companies. That is the reason , the SENSEX stocks are galloping ahead.

Answer 6

Single window clearances do not work as per policy decisions.

Answer 7

Many industries like customer service did go to India, but it did not work out. Language and cultural differences could not be overcome. Dell computer is an example of what can happen.