Patience rewarded
Against these salutary tales, there are also plenty of examples of success, particularly where Westen businesses have pursued joint ventures. Hindustan Unilever, the Indian business of Unilever of the UK, remains one of India’s largest companies. Japanese carmaker Suzuki’s alliance with local manufacturer Maruti sells more vehicles than any other automotive brand. Google and Meta have built partnerships with Reliance Industries, India’s biggest conglomerate.
That’s not to rule out standalone ventures, either. Samsung has enjoyed growing success with its smartphone business. Another Korean business, Hyundai, is running Maruti Suzuki a close second in the automotive industry, while Honda’s motorbike sales are growing fast.
Nor is multinational investment in India limited to consumer-facing businesses. Some manufacturers are keen to follow Apple’s lead, increasing production in India for the export market. Denmark’s Vestas now produces wind turbines for sale abroad. Tesla has discussed setting up an electric vehicle (EV) factory.
Others are manufacturing for the home market, betting on Modi’s investments in infrastructure. The Indian subsidiary of engineering giant ABB, for example, is outperforming its European parent by a factor of two-and-half times.
The evidence suggests that, with patience and persistence, multinationals can build a thriving business in India. Given the country’s economic prognosis for the decades to come, many chief executives will conclude that it is worth committing to India for the long haul.
Moreover, for all the bumps in the road, given the geopolitical backdrop and China’s recent economic struggles, of the two giants India now offers a more comfortable prospective ride. Global economic leadership appears to be changing hands.