A Quick Chat with...
Tata Consultancy Services' (TCS) chief executive Natarajan Chandrasekaran talks about bilateral trading opportunities between India and the UK.
Why is the UK market attractive to Indian companies?
It is a very dynamic market that attracts the best in technology, talent and investment across the spectrum of industries. It is competitive and open markets and companies who want to create a global footprint for their brands and services have to make an impact in the UK. Today, TCS derives over 15 per cent of its global revenues from the UK and Ireland, which is second only to our operations in the US. Several other factors, such as a shared language, ease of doing business, a long-standing economic and social relationship, make it very attractive for Indian businesses in IT or even in other sectors to consider the UK as a significant component of their globalisation plans.
In which areas do you see greatest opportunity for UK-India business growth?
In 2011, trade between UK and India stood at £13bn, which demonstrates good growth in relative terms, but in absolute terms, I believe there is significant head room for expansion. Currently, the UK is only a top 15 trade partner for India, accounting for 2.2 per cent of India's overall trade. This leaves room for deeper trade and relationships across a broad range of sectors from pharmaceuticals and biotech, to information technology and financial services. India's rapidly expanding consumer market also provides an expansive potential opportunity for British businesses. Many British companies are already well established in India but there is room for many more.
What advice would you give to UK businesses looking at India?
The opportunities in India are plentiful with a growing middle class, rising disposable incomes and good GDP growth in the range of around 7 per cent in this current fiscal year. But new entrants also have to remember, it is also very competitive, fragmented and hence unique and complex. I would advise them to really do their homework – study the unique local customer behaviour, local regulations, supply chains, constraints and risks – in order to get their strategy right the first time.
Looking at India as a single homogenous market is a mistake – there are strong regional nuances, customs, preferences and languages, so businesses should either pick a few niches or really study and account for customisation when going for a nationwide strategy. Secondly, if it is the first time the company is entering the market and has no previous experience in dealing with it, then the right local partner can add value.
N Chandrasekaran – 'Chandra' – will speaking at the UK India Business Council summit on 14 March in Manchester. Insider readers interested in attending the conference can get a 30 per cent discount on tickets by quoting the reference of SUM1202 at www.ukibc.com/summit/Register.aspx.
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