The market entry prospects for India are often countered with increased and evolving changing market policies. As such, numerous companies are willing to venture into the country due to the attractive policies. Among them are the import and export prospects. MES-Sim corporation is among the companies that are eyeing India as a target market for international operations. Since 1991, India has gravitated towards an open economy which is widely believed that export and import growth is crucial to the growth of economic development (Sharma & Mishra, 2015). India, for a long time, has relied on foreign capital for their economic development programs. But, for its to be beneficial for India, efficiency within the economy heavily relies on productively engaging in the production of goods and services. The strategy has involved the exportation of products which enables the country to specialize in the production of products that are internationally demanded (Sharma & Mishra, 2015). Moreover, trade expands competition within the country borders in case of production of goods and services as well as improvement of importation of raw materials as well as capital goods that increase the investment in the economy, therefore, expands higher output.
MES-Sim corporation is among the companies that can benefit from the export-import strategy that India has adopted for more than three decades. Its success depends on outward orientation based on innovation and efficiency rather than directly producing profits seeking activities observed under import substitution (Vernom, 2017). For example, MES-Sim’s innovative product, the new video game which is set to change the gaming industry both in Australia and in the international market. The integration of the company into India will benefit the business greatly due to the combination of the import-export reformed strategies. Among them include identification of the diverse market strategies toward specific regions and income groups.
Moreover, obtaining necessary licenses and approvals is necessary within India (Vernom, 2017). This is an established open market policy which ensures any foreign company is registered and the government is aware of its economic impact. Inherently, the trade with India will require documentation and an understanding of the Indian import procedures which with ensure smooth entry of products into the Indian market.
One of the significant aspects of the import-export market in India is based on the consideration that any foreign company including MES-Sim Corporation to tactic the market through a regional approach. It is recommended that the key to success for any international company is to take on a large and diverse country from a geographical perspective. For example, regional services in areas including Bengaluru, Hyderabad, Ahmedabad, Mumbai, Chennai and New Dheli (Vernom, 2017). There are a lot of provisions on local information as well as advice based on the connection between local businesses and economic leaders. However, it is crucial to keep in mind that multiple agents are necessary for various geographical markets in the country.
The country, India, is divided into four economic regions that include North India, South, West, and East and Northeast India. All the mentioned areas posses more than 200 million people in the population as well as well-endowed with natural resources. But east and northeast India is regarded as the best region to house the company due to the variety of natural resources such as oil and petroleum, power generation and metals and minerals (Vernom, 2017). This entails the critical industries in India including engineering, chemicals and petrochemicals, coal, iron and steel and agro-businesses. Other supplementary aspects include real estate, hospitality, healthcare, and food processing. This region is the best area for MES-Sim corporation to establish as an importer and exporter of finished goods.
As for entry into the Indian market, it is advisable for a foreign company including MES-Sim to enter the market as an incorporation of a private limited company. This is the easiest and fastest type of entry into the nation. It is recommended that foreign companies do so through foreign direct investment with up to 100% investment for the company through the Central Government permission (Patra & Krishna, 2015). The company would be wholly owned by the private business, unlike other ways through which foreign companies are accepted in other nations. Nonetheless, some industries require full government approval for investment into the country. They include, but not limited to, defense and strategic sectors, tea sector, establishment and operation of satellites and asset reconstruction companies as well as the petroleum sector. The business that MES-Sim corporation engages in is not considered to require permission from the central government. This will make it easier for the company to establish its operations within the nation.
Further, the operations of the private company are stipulated within the constitution on private companies in the country. This entail shareholder and partner structures as well as management (Contractor, Kumar & Dhanaraj, 2015). For example, it is recommended that private limited companies have to have a minimum of two shareholders and two directors while operating within the country. The purpose of the supporting structure is to ensure that liaison operations are linked with the government in case of any issue. For trade operations, the business is also required to operate within the confines of the law to ensure that human and environmental rights are controlled.
Furthermore, the business is required to engage with other companies preferably local as a means of promoting local business and economic growth. Based on the recommendation that the company can be set up in, the east and northeast region of India is regarded as the best set-up area (Patra & Krishna, 2015). From this aspect, the company can opt to improve on its operations outside the country through the establishment of an importation system where raw materials that are not found within the state to be transported through its international transit system. As for export purposes, the business can use the large harbor ports in the country, and the aviation infrastructure can be used as the transit routes that easily access other continents and trade routes.
Sharma, C., & Mishra, R. K. (2015). International trade and performance of firms: Unraveling export, import and productivity puzzle. The Quarterly Review of Economics and Finance, 57, 61-74.
Vernon, R. (2017). International investment and international trade in the product cycle. In International Business (pp. 99-116). Routledge.
Contractor, F. J., Kumar, V., & Dhanaraj, C. (2015). Leveraging India: Global interconnectedness and locational competitive advantage. Management International Review, 55(2), 159-179.
Patra, S., & Krishna, V. (2015). Globalization of R&D and open innovation: linkages of foreign R&D centers in India. Journal of Open Innovation: Technology, Market, and Complexity, 1(1), 7.