Yesterday, head of IAN Padmaja Ruparel walked us through the relationship between IAN and the newly-formed WBAA (World Business Angels Association). Today, Padmaja gives us a quick snapshot of the Indian market.
* Edited interview
VH: What’s the current investing market in India?
PR: Current Indian markets are at a very interesting point, perhaps a watershed moment. The Indian election results have been announced recently and the market has reacted very, very favorably. From a startup and early stage investing perspective, the current situation is very encouraging:
New paradigms of doing business are emerging as large amounts of capital being wiped out. This has created a great opportunity for innovative, niche-focused businesses to emerge. At the same time, competent people who were in a comfort zone are now being goaded into entrepreneurship. The current market scenario provides entrepreneurs the opportunity to build a venture at lower costs: infrastructure is discounted; good talents are inexpensive; development costs are reasonably priced; advertisement and marketing prices have been slashed, for example.
VH: What makes the Indian market attractive?
PR: India presents a tremendous investing environment:
VH: What obstacles might investors encounter with Indian opportunities?
PR: India’s tax and regulatory framework does present some constraints, specifically on repatriating returns. But this didn’t stop visionary investors from investing in India because of the market potential we offer.
* For series, references are published in the last installment of the series.