1.47 Billion
Total Population
17–18% of the world's population
WHY INDIA?
The reasons Japanese companies should focus on India are not limited to its population and market size. With four elements—people, environment, organization, and policy—in place, India is rapidly becoming a business market attracting global attention.
India is one of the growth markets attracting global attention.
1.47 Billion
Total Population
17–18% of the world's population
6.4%
Real GDP Growth Rate
A market that continues to experience high growth
28 Years
Median Age
A young and vibrant working-age population
Source: UN World Population Prospects, IMF World Economic Outlook (based on publicly available statistics)
People
A foundation rooted in an entrepreneurial spirit
Environment
Rapidly advancing infrastructure development
Organization
Strong in Program Management
Policy
Initiatives promoting "Make in India"
Interest in the Indian market is currently growing significantly among Japanese companies. At the same time, the Indian market has unique business practices, opaque regulations, immature infrastructure, and many other factors that make entry challenging even when taking the first step.
The Indian market is largely made up of small individual shops. Therefore, rather than negotiating with large companies, the key to success is how effectively a company can leverage networks of small retailers across the country.
India has a vast land area, but only a limited number of companies operate logistics networks on a nationwide scale.
India is a federation consisting of 28 states and 8 union territories, but economic development, language, culture, regulations, and taxation differ by state, as do business opportunities.
Language, ethnicity, religion, economic status, and caste are intricately intertwined in Indian social structure.
The Indian market is highly cost-conscious overall, so companies need to find ways to keep prices down while maintaining quality and clearly communicate value.
The "Rapid Decision-Making" among Indian businesspeople can be a major cultural shock for Japanese companies. Indian companies are adept at "making a decision and getting started first, then adjusting course as issues arise."