Originally published on - https://www.linkedin.com/pulse/business-expansion-india-ranjan-das-f36bc/

25 Things to Know Before Your Business Expansion to India

1. Diverse Market: India can never be treated as a homogenous market; various factors of cultural, linguistic, or regional influence play important roles in consumer behavior and demand.

2. Regulatory Framework: Right from the Companies Act to GST regulation and local labour law, business methods always have supporting laws of India.

3. FDI Policies: 100% FDI is allowed in certain sectors in India, but there are restrictions in a few industries or approval from the government may be required.

4. Ease of Doing Business: Ranked 63rd in the World Bank's Ease of Doing Business Index (2024), India scored well on construction permits and on resolving insolvency.

5. Consumer Behaviour: The Indian consumer is price-sensitive but progressive with increasing emphasis on quality and brand equity in urban markets.

6. Infrastructure Gaps: While cities have well-developed infrastructure, rural locations can present serious challenges regarding logistics.

7. Digital Penetration: Digital channels are extremely important for marketing, sales, and customer engagement, with 800 million internet users.

8. Payment Preferences: Digital payment is the mainstay, and UPI transactions crossed $2 trillion in 2025, but cash is still common in rural areas, with cash accounting for 80%-90% of consumer transactions in some regions.

9. Labour Market: There is a huge pool of both skilled and unskilled laborers in India; however, labor laws may vary from state to state.

10. Cultural Nuances: Festivals, traditions, and regional customs are vital elements that influence consumer spending patterns.

11. Tax Structure: Knowledge of GST, corporate tax, and state taxes is important in pricing and profitability.

12. Competition: The competition varies from local to international players with different market shares, while in order to know there are gaps, one has to conduct proper market research.

13. IP Protection: A strong intellectual property exists, but enforcing them can be difficult in some situations.

14. Supply Chain Ecosystem: In India, the logistics area is changing with investments in the warehousing and transportation networks being increased.

15. Environmental Regulations: Tight environmental rules are on the books for businesses in manufacturing and heavy industries.

16. Startup Ecosystem: India is one of the three most powerful startup capitals of the globe and offers opportunities for collaboration and innovation.

17. Language-Barriers: While English is spoken widely in urban areas, rural areas are in practice dominated by regional languages.

18. Political Climate: This stable democracy in India promotes the growth of business; however, local politics might have some effect on operations.

19. Local Partnerships: Partnering with Indian enterprises can smoothen the entry into the market.

20. Education Levels: Literacy rates differ with wide variations in certain areas relating to the feasibility of advanced tech solutions.

21. Healthcare Trends: With the onset of the pandemic, the consumer has heightened focus towards health and wellness products.

22. Government investments: Schemes such as Make in India, Digital India, and Skill India are enticing investments and easing market access.

23. Real Estate Costs: Prices of office and retail space vary between metro and tier-2 or tier-3 cities.

24. Media Landscape: Advertising is through television, print, and digital media with social media now emerging as a key player.

25. Social Dynamics: Caste, religion, and regional identities can have strong influences on consumer choices and employee relations.

25 Things to Do Before Your Business Expansion to India

1. Conduct Thorough Market Research: The demand-analysis, competition, and pricing trends for your product or service.

2. Understand Entry Modes: Choose between joint venture, franchise models, and wholly owned subsidiaries based on sectoral regulations.

3. Hire Local Experts: Employ consultants knowledgeable about Indian law, taxes, and business practices.

4. Build Up on Local Network: Get in touch with distributors, suppliers, and local trade associations.

5. Secure Government Approvals: Get licenses and approvals required for starting up your business.

6. Setup the Financial Framework: Open localized bank accounts with full compliance with FEMA (foreign exchange management act).

7. Customize Your Offering: Localize products and services to cater to tastes and preferences.

8. Optimize Pricing Strategy: psychologically balance affordability and margin to reach A price-sensitive customer segment.

9. Prepare a Regional Marketing Plan: Tailored campaigns that resonate with local cultures in their own languages.

10. Digital Enablement: Introduce e-commerce and social media for brand building and direct-to-consumer sales.

11. Check Distribution Channel: Direct sale, stacked retail chains, or online marketplaces based on the mode of selling to the customer.

12.  Invest in Logistics: Partner with reliable logistic suppliers so logistics can be timely delivered, and inventory can be managed.

13. Register for Taxation: Register for GST, and comply with state and central tax obligations.

14. Protect Your Intellectual Property: Register trademarks and patents that protect your brand and innovations.

15. Assess Real Estate Need: Choose your office, retail, or manufacturing space wisely, taking cost and access into account.

16. Establish a Crisis Management Plan: Look out for risks: political instability, litigation, or supply chains.

17. Train Local Employees: Provide cultural and professional training to align employees to the values of the firm.

18. Engage with Local Communities: Build goodwill and brand loyalty through corporate social responsibility initiatives.

19. Observe Economic Indicators: Watch out for inflation, currency fluctuations, and GDP growth for making informed decisions.

20. Government Incentives: Explore out there in your particular sector: subsidies, tax holidays, and grants.

21. Establish Legal Framework: Partner with local law firms to ensure compliance with Indian laws.

22. Adapt to the Payment Mechanisms: Integrate UPI and digital wallets as well as credit card options.

23. Test the Waters: Implement pilot projects in select areas to validate your model.

24. Build Brand Awareness: Invest in advertising and public relations to establish a strong market presence.

25. Measure and Optimize: Continuously track KPIs like customer acquisition, market share, and revenue growth to refine your strategy.

Expanding to India is a rewarding but complex process. By knowing the market intricacies and taking actionable steps, foreign brands and businesses can successfully tap into one of the world's most dynamic economies.

For a hand-held journey to leverage the Indian growth chapter through business expansion to India, write to us at servcies@foxnangel.com. Visit www.foxnangel.com