“MAKE BUSINESS IN INDIA” THE SWEDISH BUSINESS COMMUNITY ON CHALLENGES AND OPPORTUNITIES POWERED BY

The Business Climate Survey is conducted annually by the Swedish Chamber of Commerce in India in partnership with the Embassy of Sweden in New Delhi, Consulate General in Mumbai and Business Sweden. This is the 7 th Survey conducted. THE PURPOSE OF THE SURVEY IS TO: - Assess the business confidence of Swedish companies in India, including identifying challenges and barriers of doing business, increasing investments in, and trade with India - Serve as an input to discussions and engagement with the relevant Ministries of Government of India, State Governments and other stakeholders - Give valuable input to Swedish companies considering doing business with and in India Significant increase of Participating Companies compared to (83%)/69(44%) BUSINESS CLIMATE SURVEY 2014/15

SWEDEN-INDIA BUSINESS RELATIONS USD 350 MILLION 16% INCREASE FROM 2012 USD 2,15 BILLION CUMULATIVE FDI STOCK (2013)

SWEDISH COMPANIES PRESENT IN INDIA 4 12 new companies incorporated more right now in pipeline (June) 2015 (January) Location of Indian HQ of Swedish companies (January 2015) Delhi-NCR (32%), Mumbai (18%) Bangalore (18%) Pune (13%)

NATURE OF BUSINESS 42% are Manufacturing in India

BUSINESS CLIMATE SURVEY 2014/15 EXECUTIVE SUMMARY CAPTURING THE VIEWS OF 110 SWEDISH COMPANIES ESTABLISHED IN INDIA TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES A MAJOR SHIFT IN PERCEPTION FROM 2013 – A MAJORITY OF SWEDISH COMPANIES ASSESS THE BUSINESS AND INVESTMENT CLIMATE IN INDIA AS MORE FAVORABLE

A SHIFT IN OUTLOOK FROM LAST YEAR

HIGH ANTICIPATION OF FAVORABLE INVESTMENT CLIMATE THE COMING YEARS 90% INVESTMENT CLIMATE COMING 3 YEARS

A POSITIVE TREND ON MARKET SHARE MARKET SHARE COMPARED TO PREVIOUS YEAR Retail/Sourcing of Consumer goods Life Science/Healthcare Engineering Products Automotive/Heavy Vehicles IT/Telecom

POSITIVE PREDICTIONS FOR OPERATING MARGINS AND REVENUE DEVELOPMENT OF OPERATING MARGINS 73% Forecast increased revenue. A notable increase from 58% in out of 3 Forecast a substantial increase >20% REVENUE FORECAST

PERCEIVED COMPETITIVE ADVANTAGES Companies within Engineering Products and IT/Telecom Sectors Automotive/Heavy Vehicles, Life Science/Healthcare and Retail/Sourcing of Consumer Goods

SWEDISH COMPANIES INVEST 3 out of 4 have invested out of 10 plan to invest the coming 3 years MANUFACTURING PRODUCT DEVELOPMENT RESEARCH & DEVELOPMENT

55% PLAN FOR EXPANSION INTO OTHER STATES

>600,000 jobs indirectly 150,000 Total numbers of direct jobs created by Swedish companies in India 7 out of 10 plan to increase number of employees with 5% or more JOB CREATION

TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES

CHALLENGES FOR BUSINESS BUREAUCRACY IMPORT REGULATIONS & CUSTOMS DUTY TAX REGULATIONS & TAXATION RATES Retail/Sourcing of Consumer goods and Life Science/ Healthcare especially, but a major issue in all sectors Retail/Sourcing of Consumer Goods Automotive/Heavy Vehicles Life Science/ Healthcare Retail/Sourcing of Consumer Goods Life Science/ Health care CORRUPTION 25% SUBSTANTIAL TIME SPENT WITH GOVT. AUTHORITIES

PERCEIVED COMPETITIVE DISADVANTAGES Impact companies equally in all key sectors Mainly the Sectors of Life Science/ Healthcare and Engineering Products Impacting companies working within Trading and Sourcing from other companies

WORKFORCE CHALLENGES BLUEBLUE WHITEWHITE

BUSINESS CLIMATE SURVEY 2014/15 EXECUTIVE SUMMARY CAPTURING THE VIEWS OF 110 SWEDISH COMPANIES ESTABLISHED IN INDIA TO TRANSLATE THE POSITIVE OUTLOOK INTO REALITY WILL REQUIRE ADDRESSING LONGSTANDING CHALLENGES A MAJOR SHIFT IN PERCEPTION FROM 2013 – A MAJORITY OF SWEDISH COMPANIES ASSESS THE BUSINESS AND INVESTMENT CLIMATE IN INDIA AS MORE FAVORABLE

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