"You are a consultant to a company considering India or China as an attractive opportunity for investment. Citing appropriate examples of other companies' experiences assess the risks involved in investing in ONE of these countries" N/B Choose either Indi

Résumé du document

India is today, considered as the seventh largest, and the world's second most populated country, with 1.1 billions inhabitants. Due to a series of reforms conducted since 1991, India has become the second fastest growing economy with an annual growth rate of around 8% over the last three years, offering opportunities for foreign businesses. India became independent in 1947. At the beginning, government monopolies concentrated more in industrial sectors such as telecommunications, chemical etc., constraining the growth of the private sector. Private companies needed the approval of the government for business activities, called 'License Raj', to diversify a new product. In the mid-1960s, the government decided to strengthen its policy towards foreign investment. Companies like Coca-Cola or IBM chose, at this time, to leave India, preferring not to follow the new strict legislation. Finally, in 1991, the system was unable to deliver any kind of economic progress. The government, facing a grave balance of payments crisis, received loans from the International Monetary Fund, on the condition that it opens up the economy. Manmohan.Singh, then the finance minister, now the prime minister launched a huge economic reforms process, Import and export restrictions were almost banned. Foreign investments were allowed in several areas, such as the telecommunications industry, air transport etc. The 'License Raj' system was banned. The government also introduced a privatization program for India's state owned business, some 40% of which were in crisis in the early 1990s.

Extraits

[...] Department of State FY 2001, Country Commercial Guide: India. Available from: http://www.state.gov/www/about_state/business/com_guides/2001/sa/india_ccg 2001.pdf [accessed 11.11 .2006], pp.78- KPMG, Destination India. [...]

[...] are a consultant to a company considering India or China as an attractive opportunity for investment. Citing appropriate examples of other companies' experiences assess the risks involved in investing in ONE of these countries” N/B Choose either India or China India as an attractive opportunity for investment India is today considered as the seventh largest and the second world's populous country in the world with 1.1 billions inhabitants. Thanks to a series of reforms conducted since 1991, India has become the second fastest economy with an annual growth of around over the last three years, offering exciting opportunities for foreign businesses India overview India became independent in 1947. [...]

[...] India is now establishing itself as an active participant in the world economy. Budhwar, P (2001) reports a study by Goldman Sachs, which suggests that Indian is expected to be the world's third largest economy in 2035, after United States and Japan. But if we compare India to the other emerging superpower China, there is still a huge difference in the level of foreign direct investment. According to Hill (2006), from 1998 to 2004, China received $342 billion in FDI, India only $24 billion. [...]

[...] A study by Morgan Stanley reveals the low Indian's annual spending on infrastructure representing of GDP or $21 billion in 2003. The investment bank evaluated the needs close to $100 billion a year by 2010 if India is to perform annual growth of 8-9%.[11] Nokia was facing major problem when the company was looking for a place to build its Indian factory. The Firm needed a quite bigger international airport: only Delhi, Mumbai and Chennai were conceivable. Any other options were available soon enough. Finally, the Nokia factory is one hour's drive out of a suitable airport. [...]

[...] ( 10.10 .2006) Where Society has triumphed over the state The Financial Times Special Report Investing in India, pp.3 cols 1 Cites as: (Das 10.10 .2006) Business Week, 22/ China India, What you need to know now, pp. 49-136. Cites as: (Business Week, 22/ 29.08 .2005) 3. Material on the Internet Embassy of India in France, India a profile. Available from: http://www.amb-inde.fr/Eco_Com/Inv_Ind/Ind_Pro.html, [accessed 11.11 .2006] Budhwar,P 08.2001 ) Doing business in . India. Available from: http://proquest.umi.com/pqdweb?did=74933962&sid=8&Fmt=2&clientId=18443&RQT=3 09&VName=PQD [accessed 11.11 .2006] Cite as: (Budhwar 2001) Basu, K. [...]