5 Golden Rules for collaborations in India

Foreign investors often enter the Indian market having in mind its huge growth potential, but underestimating the inherent risks. This is particularly true of collaborations with Indian partners, many of which have been set up hastily and without proper consideration of certain basic precautions.

There is a similar pattern in many investments that turn sour. Very often the Indian venture was not the foreign management’s top priority in the beginning, and German parties all too often had to later realize that they lost control to the Indian partner even in majority joint ventures. Know-how is typically shared too freely without appropriate protection. Another common issue we are confronted with is an insufficient contractual framework in case of disputes between the parties. Investors cannot rely on the Indian judiciary to enforce their rights and alternative arrangements are highly recommended.

Investors need to have stamina and surprises can never be excluded in India. Still, the India journey will be much smoother if some basic rules are observed right from the start of a cooperation.

Read More: https://www.maiervidorno.com/golden-rules-good-collaborations-india/

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