Despite the international knock on of the Credit Crunch, the Indian economy is still looking robust.  With "common people" initiatives such as Tata's US$2,500 family car, and "Budgee", the piggy bank, a distinctly Indian cartoon character doing the rounds of Indian cities to promote popular interest in the forthcoming budget, there is a positive feeling on the streets in Mumbai, New Delhi, Bangalore and other large Indian cities.

As Kishore Biyani, Chairman of the high profile Future Group stated last week, the budget will "focus on increasing consumption" because "as a country [India] has arrived" so the priority is to achieve consumption led growth "through value added products and services". 

This is of course good news for foreign franchisors in the Retail and Food and Beverage Sectors looking to enter the Indian market.

On the back of the plans for consumer focused growth franchises that are already established in the Indian market are planning rapid growth.  Planet Hollywood for example have made their intention clear by stating that they will be opening five new restaurants in India over the next couple of years.  F&B operator Mark Pi is even more aggressive and is planning on opening 300 restaurants over the next 10 years.

At first sight the Indian market can appear rather daunting for foreign franchisors due, to a large extent, to the regulatory regime, overseen by the Foreign Investment Promotion Board.  However, with the benefit of advisors experienced in the Indian market, these can usually be overcome, so opening the door to an exciting new market that is keen to consume the offerings of foreign retailers and restauranteurs.

If you would like more information please contact Mark Abell, Babette Märzheuser-Wood or Lisa Sen at Field Fisher Waterhouse LLP.