Feel Good factor returning amongst Indian companies doing business in Europe FICCI Survey
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‘Feel Good’ factor returning amongst Indian companies doing business in Europe: FICCI Survey

For the first time in two years, Indian companies doing business in Europe have shed their pessimism and see a rebound in their business prospects in the region.  The gradual turn-around has been achieved by Indian corporate by successfully re-positioning and re-aligning their operational capabilities in one of the most demanding and organized markets in the world. Capitalizing on and riding on the back of improved economic performance by number of European economies, Indian companies have been able to grow and create a niche for their products there.

Furthermore, there has been a marked rise in number of companies who have successfully been able to reduce their losses while doing business in the region, says a FICCI Survey on ‘“Are Winds of Change Bringing Good Tidings for Indian Companies Doing Business in Europe”

These are heartening signs for Indian corporates as despite a gradual slowdown in India-Europe trade and economic relations, the region still remains India’s largest trading partner.

The Survey notes that the current economic situation, though resulting in number of procedural and regulatory obstacles for Indian companies to expand and or do business in the continent, is still providing needed returns on the investments made.

Indian entrepreneurial zeal is looking towards tapping into the improved economic scenario in Europe to their advantage. This has resulted in ever-increasing interactions and joint ventures with the European companies. SMEs sector in India has also played a pivotal role in forging new business alliances with European companies. It has been done to get needed technologies and operational expertise to become globally competitive. The skill upgrades and development has only added due momentum to the growing synergies between Indian and European enterprises.
The ongoing negotiations to sign an equitable and balanced FTA between India and the EU are also closely monitored by Indian industry. The issue of visas and movement of professionals in the EU still remains one of the most contentious concern areas for Indian companies.

The following are the highlights of the Survey findings:

  1. From 2015 when 75% of Indian companies surveyed had responded that the ongoing crisis had resulted in their business prospects in the region being adversely impacted, this year 25% of the surveyed companies expressed concerns about their business prospects taking a hit due to current economic scenario in Europe.

 

  1. Over 65% of companies surveyed noted that even when the markets were slow in registering increased domestic demand, they have been able to register growth in their product(s) category.
  2. Most significantly 61% of the surveyed companies who reported increase in their business prospects, their losses have come down from 20% in 2015 to less than5% this year. 18% respondents reported an increase of 2-5% in their businesses.
    • Over 20% respondents have pointed out that during the current economic turmoil, rather than facilitating foreign investments and businesses, the respective European Governments have made its processes more stringent in obtaining and renewing long-term visas, work permits, family and dependent visas and overall ease of doing business in the region. Of these, there was unanimity that getting a business visa remained the most worrying issue for them to effectively engage the European economies