Business Risks in India

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Date Submitted: 03/06/2011 12:48 AM

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When you want to start a new business in India, you should know the risk of doing business in India.

First, As India gradually opens up its markets; many tariff and non-tariff barriers remain. Multiparty coalition governments since the mid-1990s have made only slow progress in this regard.

Second, Problems with the country's infrastructure: roads, railroads, ports, airports, power grid, and telecommunications may be the biggest obstacle for India’s economy to grow to its full potential.

Third, India is a complex country, and those arriving here to do business will discover that the path to success is often, not very smooth. Negotiations had started off quite well initially, but slowly, problems and misunderstandings arose as a detriment to finalizing the deal.

Fourth, India is different than any East Asia countries. With 23 official languages, India is like a big area combined with a lot of small countries. Doing business in Northern part is quite different from that in Southern part.

Fifth, known to be a populated country, India is still experiencing scarcity of highly qualified workers as a result of insufficient educational system. This can be a risk in the part of the investor who wants good quality of employees to uplift the company's performance.

After consider those implements, we can use the four steps approach to find out the risk of acquiring a new chemical branch in Mumbai. In the management side, you will face those common risks and the following fraud risks:

You want to ensure that your company has a best-in-class framework, which addresses fraud prevention and detection activities.

You want to be confident that processes in your company are adequate to uncover significant frauds or avoid claims of negligence if they occur and you also want to make sure that you have the right processes for dealing with fraud or other inappropriate acts.

You want to develop high quality internal control and have expert support when required.

First, evaluate...