Investment prospects in India increased: Disillusionment with China increased the interest of foreign investors in India, yet it is difficult to succeed

It can be difficult to find the formula for success by copying America or China.

Investing in Indian tech companies is certainly very lucrative. These days there has been an influx of foreign money into tech companies. E-commerce company Flipkart has recently raised a record 26 thousand 797 crores. Shares of food delivery company Zomato remained oversubscribed. Payment company Paytm is also going to come in the market soon. In fact, due to less inclination towards China, the interest of new investors in India has increased. India is more youthful and open to foreigners than China. But, when viewed from a close, it does not fully meet this scale. Despite some advantages, there are many difficulties in running a business here.

India is a tough place to earn a livelihood. Every operator of a small grocery shop has to face so many obstacles that MBA educated managers from rich countries collapse. Nevertheless, India’s tough business environment creates a different kind of business vibrancy and motivation. This is reflected in its good startup. A Bengaluru-based tech investor says the computing genius in India lies in design rather than patent-level technology. If venture capital joins in and luck supports it, a company emerges that can be competitive in India and beyond.

There are two types of Indian tech companies
There are two types of Indian tech companies that attract attention. First- do normal business for companies of rich countries. The big names in this category are Infosys and Tata Consultancy Services, the flagship company of the Tata Group. They are technology-driven intermediary companies. Other types of companies are local versions of American or Chinese technology businesses. They have their presence in their market. Like Flipkart Indian is Amazon, Ola Indian is Uber and Paytm Indian is Alipay. There is a lot of enthusiasm in the market for such companies at the moment. New investors are happy to buy such companies. His thinking is, if a business model can make money outside, it can make money for them in India too.

Two software engineers founded Flipkart in 2007
In the midst of this commotion, the question arises, is this possible? Flipkart was founded in 2007 by two software engineers who worked at Amazon. There was a lot of scope in the e-commerce market at that time. In 2013, Amazon itself knocked in the Indian market. Meanwhile, the old Indian companies realized the fact that the new companies could outrun their consumer franchises. Reliance has invested heavily in telecom and broadband. It has a large network of supermarkets. Old experience is a big strength especially in Indian business. The old businessmen are ahead in terms of their ability to make government rules and regulations in their favor.

Certainly India has some merits attached to it as well. The country is a natural place for venture capital because of computing and business talent. There are good prospects for new companies to bring change here. But, the money coming into venture capital doesn’t advance originality. Like Hollywood producers, venture capitals also bet on old hits. There are bright possibilities of earning money in India but only a few people can take advantage of it.

India is far behind China
The average per capita income in India is more than one lakh 48 thousand rupees as per current values ​​as compared to 7 lakh 44 thousand rupees in China. Average figures hide the gap between India’s rich and poor. Most of the country’s workforce is not in formal employment. His income is less than average. Despite sometimes impressive GDP rates, India is not following the path of rapid economic growth like China. Its active market is relatively small.