India is Honeywell's next big business

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Fers far less FDI incentives than neighboring China. However, U.S. management consulting firms estimated in 2010 that India's share of global trade will increase about five-fold by 2020, when it will account for 10% of total global trade. Given the growth projections, waiting for the target revenue segment to reach break-even levels or for greater government incentives to materialize is not the right strategy. Taking Apple as an example, the Indian smartphone market is growing rapidly, but most of the smartphones being snapped up are priced below the US dollar. Even the cheapest ones look expensive by comparison. Therefore, Apple’s market share in India is less than 1% in terms of shipments.


In September, Apple CEO Tim Cook traveled to India for high-level talks that included seeking exceptions to localization requirements for foreign retailers. The company wanted to introduce Apple's retail image and services through a series of its own flagship stores, but the Indian government insisted on local Job Function Email List sourcing requirements for foreign manufacturers at the time. This setback reflects the Indian government's commitment to executing Prime Minister Narendra Modi's Make in India campaign. At the heart of the movement are reforms to improve the ease of doing business for foreign companies that are serious about manufacturing in India.



It’s all about offering carrots to compliant foreign companies that generate spillover benefits, including reduced tax barriers, improved infrastructure, reformed labor laws, boosted workforce skills development, easier land acquisition and faster business license approvals, among other benefits. As China's economic growth slows down and the intellectual property protection environment becomes increasingly severe, several foreign multinational companies have increased their attention to India. As Honeywell International's former vice president of high growth regions explains.