The event, entitled ‘Doing Business with India’ was hosted by Santander UK and brought together a panel of distinguished figures who were able to offer a variety of views on building lasting commercial relationships.
Delivering the keynote speech was Conservative peer Baroness Wheatcroft, who is a member of the UK-India Roundtable.
Referencing the Chancellor’s target to double annual exports to £1tn by 2020, she stressed that the Government remained committed to “doing more on the export front”, although she highlighted that it might take a little longer than planned to reach the target.
Explaining why UK export figures had fallen below expectations, she said: “It takes time and that is why at the moment exports are not soaring the way I would like to see them. It takes time to put the groundwork in. You can’t just race into a country like India, expect to understand it and get it right. But nevertheless, if you work with government you will find that doors do open”.
“Not to say that there aren’t difficulties, but both the UK and Indian governments could do more to make relationships between our two countries, which go back so far and are so important, really gel properly… I am very hopeful that we will get to our target, perhaps a little late, of doubling exports to India.”
Other challenges for UK companies were outlined by a number of panel members, including Pratik Dattani, UK Director of the Federation of Indian Chambers of Commerce and Industry.
He advised investors to gain an understanding of cultural differences, saying: “When you go to India and when you speak to somebody and say, ‘we like this, can you do it?’ Everyone will say ‘yes’. When an Indian says ‘yes’ it doesn’t necessarily mean ‘yes’. Follow up. Make a few trips and then see whether ‘yes’ actually means ‘yes’.”
Building on this, Hannah Simcoe-Read, CEO and Founder of NVH Technology, stressed the need to be patient when making contacts.
She said: “It’s very important to be immersed in the culture and actually work hands on in the country in order to understand it, and do your homework. It is so important to understand how the country works, and I was very lucky to have a person who I mentored and worked with in the field”.
“It took me nearly 18 months to make the contacts, to understand how you work in India, to create partnerships. And relationship building in India – whether it is with governments, or whether it is local authorities or whether it is support for SMEs, or in banking – it is very, very essential.”
Despite the challenges, Ms Simcoe-Read was positive about her experience, saying “I found India innovative, aspirational and easy to work in.”
Urging investors to act early, Sun Mark Chairman and celebrated entrepreneur, Dr Rami Ranger, suggested that the opportunities available to UK companies in the growing Indian market will reward those who get in first.
He encouraged the business community to embrace the challenges and rewards and identified the role India could play in fuelling UK growth.
He said: “If you do not go to India now it might be too late, because when things become easier, then – Tom, Dick and Harry - everybody will jump in. So, it is better that you crack the difficult market now. When you crack the difficult market you will have less competition…”
“Economies are not growing in the West. So, British companies, by plugging into the Indian economy or Indian companies can get out of sluggish recovery. So, India can become an engine for the growth of this country.”
Dr Ranger also echoed the insight given by other panel members and recommended taking expert advice before entering the market.
He said: “I have gone through the portal Santander bank have made. It is amazing. I don’t think that any bank has gone that far in facilitating exports and giving people knowledge. So I think that your first port of call is to go on the website and join and you will get to know a lot more than we already know. And the other thing is you do need a good bank to do business in India because there are so many issues.”
Explaining the burgeoning interest in India, Arbinder Chatwal, head of Indian Advisory Services Group for BDO LLP, attributed the country’s increasing business attractiveness to a couple of factors.
“The first is the power of demographic dividend. 50% of the population is under 35, so it’s a young middle class population… India’s low cost manufacturing hasn’t really been recognised much, but for me that is quite interesting. From a quality perspective, it is all very positive. Whichever sector you work in, in the UK I can’t see how India cannot present opportunities for you. For, Why India, I would say - Why not India?”
Adding to this optimistic message, John Carroll, Santander UK’s Head of International said: “India is absolutely critical… Why is India so attractive? It is not least because of the growing middle class, in which there is a real demand for premium British products.”
This is why Santander UK, he said, was working hard to overcome the lack of knowledge and fear that are the main obstacles for UK companies.
With the UK economy experiencing a tentative recovery, this advice could be lucrative for British businesses, as they embrace the vital international trade opportunities that could secure the UK’s economic future.