About Us FICCI Survey on Doing Business in Europe

FICCI, 2017 Survey on the Indian Companies doing Business in India.

Federation of Indian Chamber of Commerce and Industry (FICCI) recently conducted a survey titled “Are Winds of Change Bringing Good Tidings for Indian Companies Doing Business in Europe”. The survey was undertaken to assess the business sentiment of Indian Companies doing business in the European Union (EU) in view of the gradual economic turnaround in major Europeaneconomies.

The survey concluded with an overwhelming response from the companies surveyed indicating optimism about their business prospects in the coming year. Thus, for the first time in two years, Indian companies in Europe have shed their pessimism and seen a rebound in their business prospects. The gradual turn-around has been achieved by Indian corporatesthrough successful adaptation in one of the most demanding markets in the world. Furthermore, there has been a marked rise in the number of companies which have been able to reduce losses. The Survey notes that the current economic situation, though posing a number of procedural and regulatory obstacles to expansion or even doing business by Indian companies, is still providing needed returns on the investments made. However, the issue of visas and movement of professionals in the EU remains one of the most contentious concern areas for Indian companies.

More than 60% of the companies surveyed noted that even when markets were slow, they were able to register growth in their product category, even though more than 70% of companies surveyed confirmed their business was affected due to the economic crisis in Europe. The companies also shared their optimism regarding the big markets (i.e. Germany & France etc), which have shown better growth prospects.

As the survey indicates, despite the number of policy and regulatory impediments, India’s outbound investments in the EU may see smaller deals but activity will continue. Many Indian companies are viewing the current situation as an opportunity to enhance their investments. To maximize benefits and alleviate losses in terms of reduced demand, Indian manufacturers are aggressively pursuing new business plans. In the short to medium term, according to Indian businesses, the economic outlook is moderate to stable for them to actively assess new business prospects and the investment plans of Indian companies doing business in the European region.

This Embassy supports Outward Direct Investment (ODI) in the high-tech advanced economies of Europe. This creates a positive feedback loop for upgrading business & technology practices in India and also contributes to growth in both Europe and India. 

We thank FICCI for sharing this Survey report.