S’pore firms see India as land of opportunity
UDAIPUR (INDIA) — Doing business in India takes patience, but Singaporean companies that have made headway there are optimistic about the opportunities, noting that the country is still seeing growth despite the global economic slowdown.
UDAIPUR (INDIA) — Doing business in India takes patience, but Singaporean companies that have made headway there are optimistic about the opportunities, noting that the country is still seeing growth despite the global economic slowdown.
Infrastructure and urban development, renewables, tourism, retail and automotive are among the array of India’s growing industries, according to companies TODAY spoke to. Several also highlighted how campaigns launched by the Modi government — such as Clean India; Skill India, a push towards vocational training; and Make In India, which aims to spur manufacturing innovation — have opened up opportunities for foreign investors.
For example, Surbana Jurong — the master-planner for Andhra Pradesh’s showcase capital Amaravati — said its expertise in providing “smart estate-management solutions” to town councils in Singapore fits squarely with Prime Minister Narendra Modi’s “100 Smart cities” initiative. Since its first foray into India 15 years ago, the firm has completed five city-level master plans.
Chase Resource Management, which provides supply chain and fulfilment services, said it had seen a “gradual increase” in business volume since it first entered the Indian market in 2008, as more jobs continued to be outsourced to India.
The country now contributes to almost 70 per cent of the firm’s business, said its director, Ms Jayanthi Manian.
In a sign of the growing needs of India’s trade and air cargo industry, Air India SATS Airport Services (AISATS) yesterday announced that its first perishable-cargo handling centre will be built at Kempegowda International Airport in Karnataka state. AISATS is a joint venture between Singapore’s airport- and cruise-terminal services provider SATS and Air India.
With a handling capacity of 40,000 tonnes per annum, the centre will have 17 dedicated cold rooms to house perishable commodities such as pharmaceutical products and seafood.
Despite the opportunities, red tape and administration hassles remain stumbling blocks for foreign businesses in India, especially for small and medium enterprises.
“India has a totally different working culture, and it takes a lot of patience to work there,” said Ms Manian.
She added that some tax and finance processes take a long time to clear, and these affect cashflow for new ventures which have low margins.
Singapore Business Federation chair Teo Siong Seng said red tape and old-fashioned policies are the key reasons for the “cautious approach” taken by many SMEs.
However, he acknowledged that SMEs are taking more interest in the country. “India is indeed a land of opportunity, with the reforms that are taking place,” he added. KELLY NG