What are the challenges?

Challenges and risks of doing business in India

India is a price-competitive market and price is an important consideration for consumers. You will be expected to negotiate on the price for your goods and to discount.

You must check what the import duty is for your product in India to see if your export is viable. It is likely to be a minimum of 35% once all additional taxes are included.

You should be aware of:

  • multiple religious, ethnic and annual variations in holiday timings, requiring careful planning for business trips

  • barriers to trade and investment in some sectors because of regulatory constraints, local sourcing requirements and import tariffs

  • intellectual property protection (IP)

  • risk of delays due to administrative requirements

  • difficulty of land acquisition

  • access to the right skills in the local workforce

  • infrastructure challenges, including for distribution and logistics

  • extremely hot weather in summer and wet weather in the monsoon season can affect business

  • risk of bribery and corruption

You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act. See:

Read the Foreign and Commonwealth Office’s (FCO) Overseas Business Risk report for India:

[Source –]


Payment risks in India

UKEF helps UK companies get paid by insuring against buyer default.

Be confident you will get paid for your export contract. Speak to one of UKEF’s export finance advisers for free and impartial advice on your insurance options or contact one of UKEF’s approved export insurance brokers:

Currency risks in India

If you have not fixed your exchange rate you have not fixed your price.

You should consider whether the best option for you is to agree terms in Sterling, US Dollars or Indian Rupees in any contract. You should also consider getting expert financial advice on exchange rates (sometimes called FX).


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