“make business in india” the swedish business community on challenges and opportunities powered...
TRANSCRIPT
“MAKE BUSINESS IN INDIA”THE SWEDISH BUSINESS COMMUNITY ON CHALLENGES AND OPPORTUNITIES
POWERED BY
The Business Climate Survey is conducted annually by the Swedish Chamber of Commerce in India in partnership with the Embassy of Sweden in New Delhi, Consulate General in Mumbai and Business Sweden.
This is the 7th Survey conducted.
THE PURPOSE OF THE SURVEY IS TO:- Assess the business confidence of Swedish companies in India, including identifying challenges and barriers of doing business, increasing investments in, and trade with India- Serve as an input to discussions and engagement with the relevant Ministries of Government of India, State Governments and other stakeholders- Give valuable input to Swedish companies considering doing business with and in India
Significant increase of Participating Companies compared to 2013
110(83%)/69(44%)
BUSINESS CLIMATE SURVEY 2014/15
SWEDEN-INDIA BUSINESS
RELATIONS
USD 350 MILLION
16% INCREASE FROM 2012
USD 2,15 BILLION
CUMULATIVE FDI STOCK (2013)
SWEDISH COMPANIES PRESENT IN INDIA
4
12 new companies incorporated 2014
12 more right now in pipeline153
852007 (June)
2015 (January)
Location of Indian HQ of Swedish companies (January 2015)
Delhi-NCR (32%),Mumbai (18%)Bangalore (18%)Pune (13%)
Agriculture/Food processing
Education (Formal/ Informal)
Infrastructure/Construction
Banking/Finance
Packaging
Defense/Security
Environmental technology
Shipping/Transportation/Logistics
Life Science/MedTech/Healthcare
Automotive/Heavy Vehicles
Service/Consulting
Retail/Sourcing of consumer goods
IT/Telecom
Engineering products
1%
1%
1%
2%
3%
4%
4%
5%
7%
9%
10%
10%
13%
31%
NATURE OF BUSINESS
42% are Manufacturing in India
BUSINESS CLIMATE SURVEY 2014/15 EXECUTIVE SUMMARY
CAPTURING THE VIEWS OF 110 SWEDISH COMPANIES ESTABLISHED IN INDIA
TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES
A MAJOR SHIFT IN PERCEPTION FROM 2013 – A MAJORITY OF SWEDISH COMPANIES ASSESS THE BUSINESS AND INVESTMENT CLIMATE IN INDIA AS MORE FAVORABLE
A MAJOR SHIFT IN PERCEPTION FROM 2013 – A MAJORITY OF SWEDISH COMPANIES ASSESS THE BUSINESS AND INVESTMENT CLIMATE IN INDIA AS MORE FAVORABLE
A SHIFT IN OUTLOOK FROM LAST YEAR
2012 2013 2014
24%40%
4%
42%
45%
36%
36%16%
60%
PERCEIVED BUSINESS CLIMATE
FavourableNeutralNot favorable
2010 2011 2012 2013 2014
7.6 7.4
5.45
6.7
AVERAGE RATE OF BUSINESS CLIMATE PERCEPTION 2010-
2014
HIGH ANTICIPATION OF FAVORABLE INVESTMENT CLIMATE THE COMING YEARS
Considerably less favorable
Less favorable Same as previous year
More favorable Considerably more favorable
0%
26%31%
38%
5%0%
20%29%
39%
12%
0% 2%8%
60%
29%
90%
INVESTMENT CLIMATE COMING 3 YEARS
Decreased No change Increased
4%
41%
55%
7%
50%
43%
7%
35%
58%
2012 2013 2014
A POSITIVE TREND ON MARKET SHARE
MARKET SHARE COMPARED TO PREVIOUS YEAR
Retail/Sourcing of Consumer goodsLife Science/HealthcareEngineering ProductsAutomotive/Heavy VehiclesIT/Telecom
POSITIVE PREDICTIONS FOR OPERATING MARGINS AND REVENUE
10%
29%
22%
29%
10%13%
30% 30%
23%
5%1%
20%
38%
29%
12%
2012 2013 2014
DEVELOPMENT OF OPERATING MARGINS
73%Forecast increased revenue. A notable increase from 58%
in 2013
1 out of 3
Forecast a substantial increase
>20%
REVENUE FORECAST
PERCEIVED COMPETITIVE ADVANTAGES
Access to subsidies/tax incentives
Access to labor
Access to financing
Product design
Recognition as a Swedish brand
Management
Long standing business relationships
Established presence in the country
Brand recognition
Product quality/technology
0%
4%
0%
20%
0%
14%
28%
33%
49%
71%
1%
1%
6%
14%
18%
26%
28%
35%
50%
56%
2014 2013
Companies within Engineering Products and IT/Telecom Sectors
Automotive/Heavy Vehicles, Life Science/Healthcare and Retail/Sourcing of Consumer Goods
SWEDISH COMPANIES INVEST
3 out of 4 have invested 20148 out of 10 plan to invest the coming 3 years
MANUFACTURING
PRODUCT DEVELOPMENT
RESEARCH & DEVELOPMENT
55% PLAN FOR EXPANSION INTO OTHER
STATES
>600,000 jobs indirectly
150,000Total numbers of direct jobs
created by Swedish companies in India
7 out of 10 plan to increase number of employees with 5% or more
JOB CREATION
TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES
CHALLENGES FOR BUSINESS
BUREAUCRACY IMPORT REGULATIONS & CUSTOMS DUTY
TAX REGULATIONS & TAXATION RATES
Retail/Sourcing of Consumer goods and Life Science/ Healthcare especially, but a major issue in all sectors
Retail/Sourcing of Consumer Goods
Automotive/Heavy Vehicles
Automotive/Heavy Vehicles
Life Science/ Healthcare
Retail/Sourcing of Consumer Goods
Life Science/ Health care
CORRUPTION
25%SUBSTANTIAL TIME SPENT WITH GOVT. AUTHORITIES
PERCEIVED COMPETITIVE DISADVANTAGES
Access to labor
Established presence in the country
Network
Brand recognition
Relations with authorities
Economies of scale
Access to subsidies/tax incentives
Relations to Govt/Authorit-ies
Cost structure/pricing
6%
14%
4%
14%
9%
13%
14%
23%
55%
5%
13%
13%
17%
18%
21%
22%
47%
60%
2014 2013
Impact companies equally in all key sectors
Mainly the Sectors of Life Science/ Healthcare and Engineering Products
Impacting companies working within Trading and Sourcing from other companies
WORKFORCE CHALLENGES
Not skilled enough
Retention Increasing salaries
Low loyalty Low availabil-
ity
Difficulty in discharging employees
of duty
Gender Diversity
Costs of so-cial benefits
Cultural dif-ferences
31%
9% 8% 6% 6% 4% 3% 2% 2%
Increasing salaries
Not skilled enough
Low availabil-ity
Retention Cultural dif-ferences
Low loyalty Gender Diversity
Costs of so-cial benefits
30%
21%
8% 6% 5% 4% 2% 1%
BLUE
WHITE
BUSINESS CLIMATE SURVEY 2014/15 EXECUTIVE SUMMARY
CAPTURING THE VIEWS OF 110 SWEDISH COMPANIES ESTABLISHED IN INDIA
TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES
A MAJOR SHIFT IN PERCEPTION FROM 2013 – A MAJORITY OF SWEDISH COMPANIES ASSESS THE BUSINESS AND INVESTMENT CLIMATE IN INDIA AS MORE FAVORABLE
SWEDEN MAKES BUSINESS IN INDIA
THANK YOU
POWERED BY