5 Things You Need to Know About the Indian Market
By Chloe [email protected]
India has the world’s fastest growing Internet market
The potential growth rate of India’s Internet users is expected to experience a massive surge over the next five years. India is expected to hit 730 million Internet users by 2020. It can be attributed to the emergence of a group of world-class internet giants. According to the G20 National Internet Development Report, India’s Internet user base grew by 51.9% in 2015, the fastest growth rate of all member states.
Indian government’s policy supports Startups and Entrepreneurs
Prime Minister Narendra Modi has kicked off a few ambitious Startup India movements and policies in hopes of stirring up the development of the startup scene. Notable developments include: “Digital India”, “Startup India”, “Skill India”, “India Innovation Fund”, and many more. In addition, the government has introduced benefits and subsidies such as special scheme for women entrepreneurs, 80 % reduction of patent fees for startups, the elimination of the Capital Gains tax, and more. All of these initiatives signify inviting arms to entrepreneurs and show the government’s determination to encourage the entrepreneurial ecosystem in India.
It’s not easy to beat the local competitor, but it’s not impossible
The best example would be Uber. You may get dubious after knowing Uber’s recent withdrawal from the Chinese market. Meanwhile, Uber isn’t too far behind Ola, Uber’s largest competitor in India. Uber has adopted a series of localized measures such as the “Help” buttons to protect women and offer multilingual services. Impressively, Uber also made all types of vehicles available, from three-wheeled “Tuk Tuk”- style vehicles to high-end luxury cars. It’s still an unknown whether Uber can ultimately suppress Ola but it is certainly bound to face a tough battle. We’ll wait and see.
China and India – The battle between the “Dragon and the Elephant”
When we talk about the Indian market, it is almost inevitable to compare it with the Chinese market, as both of them are the most populous countries in the world, and are being considered as the two Asian super powers. The competition between the two super powers had always been a heated topic among international discussion. The truth is, both markets are technically in competition in a lot of ways but they are very much mutually beneficial to a large extent. For instance, the Indian market is the best overseas option for Chinese companies to target as the Chinese market becomes more and more saturated. At the same time, the Indian market can also benefit from Chinese expertise and investment.
There are few more obstacles to overcome
Having mentioned all the benefits and favorable factors of entering the Indian market, there are still a lot of barriers to overcome. For instance, the underdeveloped network infrastructure and India’s complex language situation can be difficult for companies to implement their localization strategies. India is in the middle-to-lower end of the spectrum, in terms of average global connection speeds. In addition to this, the complex language situation also makes it a problem for companies because of potential development costs. India has approximately 200 languages, in addition to English, including more than 10 mainstream languages.