Does India frustrate foreign businessmen?

Naotaka Nishiyama was not in pursuit of comfort. On March 25, 2024, he embarked on a journey from Tokyo to Bengaluru, armed only with a suitcase and a vision. Upon his arrival in the vibrant, pre-dawn atmosphere of India’s technology hub on March 26, he emerged as a founder resolute in his mission to create something innovative in this new environment. 

Reflecting on his experiences a year later, Nishiyama, who serves as the founder and CEO of Talendy, Japan, contemplates the significance of immersing himself in the chaos, ambition and unpredictability of India — and choosing to remain. 

His journey transcended mere business; it involved reshaping his instincts, embracing the hustle, and relinquishing the pursuit of perfection. “Exactly one year ago, I landed in India with just a suitcase — and a dream,” he shared on LinkedIn.

After departing Tokyo on March 25 and reaching Bangalore the following day, he recalls, “As I stepped out of the airport pulling my suitcase, I found myself standing in a completely new world.”

As a Japanese entrepreneur in India, Nishiyama often encounters surprised reactions from both Indians and fellow Japanese. He observes, “There aren’t many Japanese individuals in India to begin with, and most of those who are here are corporate expatriates from sectors like automotive, electronics, or banking.”

Do other foreign businessmen feel the same about India?

Initial encounters often come with preconceived notions. When asked, “Toyota? Suzuki?” he responds with a grin, “No, I lead a company named Talendy.” This typically sparks curiosity or support, as he notes, “Each time someone remarked, ‘That’s intriguing!’ or inquired, ‘Why India?’, my confidence and dedication grew a bit stronger.”

Throughout the year, India served as his mentor, imparting three fundamental lessons. He emphasizes, “Perfection hinders progress,” noting that Indians consistently find ways to advance, regardless of the complexities they face. The Japanese entrepreneur reflects, “Things seldom unfold as anticipated here — and that’s perfectly fine,” having learned to adapt and embrace uncertainty. He adds that collaborating towards common objectives with individuals from diverse religions, languages, and cultures has significantly broadened his perspective.

The realisation

A transformation has occurred within me this year, he expresses. "Rather than merely 'challenging myself within stability,' I have discovered the importance of 'creating value amidst change.'"

He concludes with a sense of humility. "I acknowledge that I am still on a learning journey... However, the individuals I have encountered in India — particularly the remarkable energy and aspirations of the younger generation — inspire me to continue progressing with the conviction that we can collaboratively shape the future."

General impression of India in foreign businesspersons' minds

Foreign businessmen often view India as a dynamic and promising market, driven by its rapid economic expansion and innovation. Despite some operational challenges, many express a favorable opinion, highlighting India's potential as a global business hub. This impression is shaped by both the opportunities for growth and the cultural richness they encounter, though not without noting areas for improvement.

Economic and technological appeal

India's economic growth, ranking as the world's fifth-largest economy with a 7.2% growth forecast for FY 2023, attracts foreign businessmen. Technological advancements, particularly in IT and renewable energy, are frequently praised, with CEOs noting a shift from price-sensitive to value-sensitive markets.

Challenges and cultural experiences

While the economic potential is appealing, challenges such as bureaucratic red tape and infrastructure issues are often mentioned, says The Washington Post. However, many foreign business leaders express fascination with India's cultural richness, with some even stating they have "fallen in love" with the country, according to The Times of India.

Unexpected detail: Positive global perception

An unexpected detail is that international surveys, like those by Pew Research Center, show a median of 46% favorable views of India across 23 countries, reflecting a broader positive global perception that aligns with business leaders' experiences.

Analysis of foreign businessmen's impressions of India

This analysis delves into the detailed impressions foreign businessmen carry back home about India, drawing from a range of sources including interviews, surveys, and economic reports. The findings highlight a generally positive outlook, tempered by challenges, and reflect the complexity of doing business in a diverse and rapidly evolving market.

Economic growth and market potential

India's economic landscape has been a significant draw for foreign businessmen, with the country surpassing the United Kingdom in economic size in 2022 and ranking fifth globally, with a projected 7.2% growth for FY 2023, says India Briefing. The World Bank's "Navigating the Storm" report underscores India's resilience, growing faster than most major emerging market economies, backed by robust domestic demand.

Foreign Direct Investment (FDI) inflows, despite a recent decline from USD 42.0 billion in FY23 to USD 26.5 billion in FY24 due to global factors, remain significant, with gross inflows moderating only by 0.6%, says Mint. This resilience is evident in sectors like services (16.3%), computer software & hardware (15.1%), and telecommunications (5.6%), with major investors including Mauritius (25.0%), Singapore (23.6%) and the USA (9.6%).

Technological advancements and innovation

Foreign CEOs have noted India's transformation into an innovation-driven market, particularly in technology. Pekka Vauramo, President and CEO of Metso, a Finnish industrial machinery company, highlighted India's rapid strides in technology, with a shift from a price-sensitive to a value-sensitive market, anticipating future focus on new technologies, automation, digital solutions, and safety, according to The Hindu BusinessLine.

Laszlo Posset of T-Systems ICT India, who came to India in 2003, described the country as having evolved from an outsourcing destination to an innovation hub, with a massive start-up ecosystem, and expressed having "fallen in love" with India, returning after an initial exit in 2008 and restarting operations in 2015, says the newspaper above in a report. Andrew Hines of CleanMax Solar, with 13 years in India, sees it as a leading market in renewable energy, though he acknowledges challenges in that report.

Eugene Kaspersky of Kaspersky Lab views India as having a bold vision for human progress and economic development through digital technology, with the second-largest population of internet users and a rich ecosystem of innovative companies according to the report above.

Challenges in doing business

Despite the positives, foreign businessmen frequently cite challenges that temper their impressions. Bureaucratic red tape, restrictive import policies, and unpredictable regulations have been noted as barriers, with a former Indian ambassador quoted as saying, "We aren’t Vietnam," reflecting India's struggle to attract manufacturing FDI compared to smaller countries, according to The Washington Post.

The Economic Survey 2024 highlighted weakening FDI inflows due to geopolitical conflicts and high borrowing costs, suggesting increased caution among investors. Infrastructure issues, inequality, pollution, water, and waste management are also concerns, as noted by Andrew Hines, questioning India's effectiveness in managing these for inclusive growth in the next five years.

Cultural and personal experiences

Cultural experiences play a significant role in shaping impressions. The 2003 article from the Times of India captured foreign CEOs like Bob Hoekstra of Philips Software Centre, who, after over five years in India, preferred it over other developed Asian cities like Bangkok or Kuala Lumpur, hoping to stay longer, says a report in The Times of India.

MB Lee of Samsung India opted for a transfer back in 2001 by choice, indicating a positive personal experience, in The Times of India report.

However, cultural misalignment has been a challenge, as seen with the departures of foreign CEOs like Thierry Delaporte from Wipro and Brian Humphries from Cognizant, due to difficulties blending into the cultural fabric, often exacerbated by remote leadership from Europe, says the last report above.

Global perception and surveys

International surveys provide additional context, with Pew Research Center's 2023 survey showing a median of 46% favourable views of India across 23 countries, with particularly positive views in Israel (71%), Kenya, Nigeria, and the UK, though South Africans see it more critically.

The PwC Foreign Portfolio Investor Survey 2016-17 found FPIs viewing India as an attractive emerging market with favorable trade and settlement cycles, moderate tax rates, and adequate investment limits, reflecting optimism despite regulatory challenges.

Comparative insights and trends

The ORF Foreign Policy Surveys 2022 and 2023, while focused on foreign policy, indicate urban youth's preference for multilateral engagement and India's G20 presidency success, suggesting a positive international business environment perception (ORF Online, ORF Online). However, the Economic Times notes expat CEOs as a rare commodity in India Inc, with only 28 non-Indian expat CEOs among 2,521 in listed companies by FY24, highlighting cultural and cost preferences for home-bred CEOs, according to an Economic Times report.

Table: Summary of foreign CEOs' impressions

The table above encapsulates key impressions, reflecting both opportunities and challenges, providing a comprehensive view of foreign businessmen's experiences in India as of March 27, 2025.