Assignment

QUE How an US firm may use Sales Promotion and Distribution infrastructure of an Indian firm to sell the products in India and in return the Indian firm can use the same strategy for the sale of its product in USA. (Hint – Strategic Alliance).

ANS

A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.

Market Opportunities

Best prospect sectors and business opportunities. Ranked on

the basis of estimated Indian imports from the U.S. for 2007, the

best prospects (in alphabetical order) for U.S. exports follow:

• Airport and Ground Handling

• Computers and Peripherals

• Education Services

• Electric Power Generation, Distribution and Transmission

Equipment

• Food Processing & Cold Storage Equipment

• Franchising and Retailing

• Medical Equipment

• Mining and Mineral Processing Equipment

• Oil and Gas Field Machinery

• Pollution Control Equipment

• Telecommunications Equipment

• Textile Machinery

• Water

Selling U.S. Products and Services

Only five industries are subject to compulsory licensing in India. The need for licensing is attributed to safety, environmental, and defense related considerations. The licensing authority in this case is the Ministry of Industrial Development and the industries are: distillation and brewing of alcoholic drinks; cigars and cigarettes of tobacco and manufactured tobacco substitutes; electronic aerospace and defense equipment of all types; industrial explosives including detonating and safety fuses, gun powder, nitrocellulose and matches and hazardous chemicals.

Selling to the Government

Indian government procurement practices and procedures often lack transparency and standardization, which can frustrate foreign suppliers.

Remember the scale of India and consider a Regional approach. Creating a local presence in India is strongly advised, but if your...