5 key tips for succeeding in India

Here’s a big generalisation – almost every product and service can find an eager market in India – the Indian economic growth story means demand for everything cannot be met – so that means opportunity for you.

But how to approach India?

First – think longer term than you normally do, but keep in mind modern India can be either fast or slow and there is no way of predicting.

Second – leave your ego behind. Pretty much every western company that has succeeded in India has done so on the support of a strong local Indian team across all levels. To do this, they have effectively left their ego behind.

Third – India wants your business, NOT your culture. You will struggle if you want to transfer your “culture” to India – putting your expat team in long-term charge of the local team is a risky approach.

Fourth – use your expat team wisely. Expats can come and go as needed – but your business needs longevity in India and that is what an Indian management team can provide.

Fifth – smart companies that go into India also ensure they hire Indians into the Head Office team, at the right level in HO guiding and advising the HO team.

Why has India banned wheat exports?

India – one of the world’s leading wheat producers – has placed an immediate ban on wheat exports.

Why?

As reported in this analysis by SOUTH ASIAN TIMES, the ban serves three main purposes: It maintains the food security for the country, it helps others who are in distress, and maintains India’s reliability as a supplier.

See full report here:

Some straight talking on climate change and public policy

Patrick Suckling presents the clearest short paper on climate change and what we urgently need to do

Patrick Suckling is a non-resident Senior Fellow of Asia Society Policy Institute and former Australian Ambassador for the Environment – and former Australian High Commissioner to India.

He has written one of the clearest – and briefest – papers on the importance of climate change and how we need to respond.

Highly recommended reading –

Australian exports of citrus and other horticulture produce to India set to grow

Citrus exports from Australia to India are expected to boom following the trade deal – from 2019 –21, Australian growers exported more than $18 million of oranges and mandarins to India. This rates India as a key market for Australian horticulture exports.

Australian Fresh Produce Alliance CEO, Michael Rogers is upbeat about the trade deal and said: “The opportunities presented by the agreement will enable a number of existing exporters, like those in the citrus industry, to capitalise immediately.”

INTO INDIA has advocated setting up some form of horticulture centre in India for knowledge sharing, skills training and more – good timing now!

The interim agreement will see tariff elimination over 7 years on a variety of Australian horticulture products including blueberries, avocados, onion, cherries, asparagus, lettuce and celery. Other significant gains for the sector include an immediate halving of the tariff within the tariff rate quota for oranges and mandarins.

Despite the interruptions caused by the COVID19 pandemic, Australian horticulture exports continue to grow, with exports in 2021 reaching $2.65 billion.

Future growth of horticulture exports to India is definitely on the way!

Click here for the AFPA Media Statement:

http://www.freshproduce.org.au/media-releases/india-interim-agreement-is-a-fruitful-opportunity-for-australian-growers/

Agribusiness and horticulture big winners in India-Australia trade deal

The Australia-India Economic Cooperation and Trade Agreement signed on 2 April has some big winners for Aussie agribusiness:

Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market

Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.

Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine).

Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine).

Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.

Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.

India-Australia trade deal – a handy list of features

Indian Commerce Minister Piyush Goyal is negotiating multiple trade deals

Benefits of AI Economic Cooperation and Trade Agreement include:

  • Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market
  • Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.
  • Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine).
  • Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine).
  • Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.
  • Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.
  • The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
  • LNG tariffs will be bound at 0 per cent at entry into force.
  • Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.

Wow! India Australia trade deal much bigger than we thought

These two Ministers are transforming the Australia-India relationship

Wow! The Australia-India Economic Cooperation and Trade Agreement signed yesterday is a whopper.

Get on the plane now if you are in business or education! The trade and investment doors are open for you.

The two trade ministers, Australian Dan Tehan and Indian Piyush Goyal, are transforming the economic relationship and created a platform for decades of growth for India and Australia. Well done.

READ MORE DETAIL HERE:

https://www.trademinister.gov.au/minister/dan-tehan/media-release/historic-trade-deal-india

India riding high – exports pass US$400 billion for the first time

Prime Minister Mr. Narendra Modi has announced that India had passed the US$ 400 billion mark in goods exports for the first time, calling it a “key milestone” for his government’s Aatmanirbhar Bharat (Made in India) initiative for manufacturing self-sufficiency.

He made the statement as India’s services and industrial activities remained stable in February, despite the fact that the crisis in Ukraine has clouded the outlook for prices and growth in the consumer-driven economy.

“India set an ambitious target of US$ 400 billion of goods exports & achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success,” he said posting a graphic showing the target being met nine days ahead of the deadline.

Time to upgrade your India market entry strategy?

https://timesofindia.indiatimes.com/business/india-business/explained-in-charts-how-india-achieved-400-billion-export-target/articleshow/90398092.cms

9 Key Factors to Winning in India

Follow the lead of successful businesses who have advanced by integrating Indian culture and values into their offering.

  1. Abandon the “quick sale” old mindset and adopt patience and a long-term view.
  2. Model your business on Macquarie Bank – this works whether you are a large or small enterprise. Their central plank for India was partnering is the key to success.
  3. Abhishek Poddar, Managing Director, Macquarie Infrastructure and Real Assets (MIRA) “India is one market where you need deep experience if you’re going to be successful. You have to take the time to appreciate and understand its unique culture and ways of working.”
  4. Be clear about what India wants. Macquarie saw infrastructure and clean energy opportunities and focused just on them.
  5. Most successful businesses in India have some philanthropic activity – this is highly worthwhile and well regarded in India.
  6. Establish good relations with Government at Central and State levels – this is vital to being accepted in India.
  7. Consider options such as acquisitions and partnerships which can speed up your market acceptance.   
  8. Be there for the long haul – Deakin University continues to make gains in India and has been present there for over 25 years.
  9. Develop a local Indian team and allow them to apply their own culture – within your larger business culture.

Well done on Modi deals, Scott Morrison – he “gets” India

Australian PM Scott Morrison at the virtual talks yesterday with Indian PM Modi.

In a meeting yesterday with Indian PM Narendra Modi, Australian Prime Minister, Scott Morrison, cemented ties with India in a series of deals worth almost A$190 million. He gets (understands) India.

PM Modi is an “investment magnet”, but is also strongly wary of “multilateral” groupings and has a preference to do deals country by country.

So, PM Morrison did a country by country deal. He used some of the western rhetoric over Russia, Ukraine and China, but then got stuck into business.

What is there to “get” about India that matters in our region?

First, it wants investment.

Second, it stays away from promoting democracy as the ONLY future, instead seeing all countries as different and many having different forms of government – all accepted by India.

Third, it now buys most of its defence hardware from Russia and has a long standing close relationship with them.

Fourth, it wants to be in the QUAD (Australia, Japan, USA and India) but will only play on its own terms – that is, not condemning others and not championing democracy as the only solution.

Fifth, Modi is riding high, and he has numbers to back it up – India is the world’s fastest growing economy in 2020. You have to “get” his confidence levels, which are high.

Sixth, India is keen for more Indians to have access to Australia and to work here – PM Morrison “gets” this, and it was significant that the Monday night talks also included a taskforce to see if both countries could recognise the same education qualifications.

Seventh, India has a proud culture and history, feels rightly that much has been plundered by the west – so it was highly important that the National Gallery of Australia formalised the return of artefacts to India.

Future challenges?

There are plenty. The CECA (free trade deal) will soon announce “early harvest” deals and then plans to complete a full CECA some time this year. Good luck with that – especially as our own Aussie negotiators have always been averse to cherry picking. I think PM Morrison gets the need for flexibility and hope he is challenging his bureaucrats to do the same.

Relying more on our High Commission staff in Delhi would be a good step as we have outstanding people there.

But by and large, finally, it seems Australia is “getting” India.