Business Foundations
Indian Political Risk Analysis, Country Forecasting & Business Strategy Consultancy

E 10/9 (2nd Floor), Vasant Vihar, New Delhi 110 057, India
TEL: +91 11 615 1801    FAX: +91 11 615 2219

Why Foreign Investors Need to Look at Political Risk in India

Business Foundations
advises foreign companies and investment guarantors on evaluation and management of industry-specific political and economic risks in India.

Many foreign investors find that, frequently, they have little or no control over external events which can adversely affect the commercial viability of their investments and future business plans in India. These developments include:
  • slow-down in government decisions due to political instability

  • adverse changes or unpredictability on foreign investment, import, ownership, pricing or tax issues

  • cultural problems, delays or legal disputes due to local partners and suppliers

  • labour unrest and industrial action

  • disruption of normal business due to social and political unrest

  • corruption and bureaucratic inefficiency

  • unexpected delays and cost-overruns due to overlapping governmental jurisdiction

  • fluctuation in interest, inflation and currency rates

Political Risk Analysis involves the study of these and other external sources of risks, and to evaluate their likely impact on specific businesses and projects. The purpose of Political Risk Analysis is to identify, analyze and predict major risks before actual investment or commitment, and to offer risk-minimization strategies and options. Political Risk Analysis provides senior company executives with a comprehensive set of determinants -- political, economic, cultural or market related -- that may influence their business, both in the short and long term, and gives them an advance look at how existing trends will likely interplay and result in positive or negative outcomes.

Business Foundations has successfully advised many foreign investors in this area, including:

1) Large Consumer Products Company (USA): With worldwide sales in excess of $ 7 billion, this company is the undisputed global leader in direct-selling. Business Foundations evaluated potential political opposition to its entry in India, and studied local social and cultural barriers to direct selling.

2) Multi-Client Pharmaceutical Group (USA): Business Foundations has assisted this group, the largest and most active of its kind in the world, in closely monitoring, analyzing and predicting changes in government policy and political attitude towards multinational pharmaceutical companies in India, and has advised it on political aspects of the national debate over new product patent laws.

3) Mid-Sized Medical Products Company (Denmark): Business Foundations has evaluated long-term potential business risks in this sector arising out of developments in healthcare policy and NGO activism.

4) Large Industrial Conglomerate (Japan): Business Foundations has briefed top-level executives on near-term political scenarios, policy forecasts and overall country risks.

5) Business Foundations also publishes India Focus, a bi-monthly political risk report (covering Indian politics, policy, business, diplomacy and social issues) which goes out to over 150 subscribers and readers.

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