Home ／ Insights on entering the Indian market
2026.03.24
For Japanese companies considering entry into India, choosing the right consultant is an important decision that determines success. The consulting market between Japan and India is becoming more active, as seen in the 2025 announcement of a strategic alliance between Tokyo-based CDI (Corporate Directions Inc.) and India's Universal Consulting. However, the quality of consultants varies widely, and choosing the wrong one can lead to a major waste of time and cost. This article explains seven points to consider when choosing an India market-entry consultant.
India presents unique challenges in the complexity of its business environment that are incomparable to those of developed countries: a federal system with regulations that differ by state, a complex tax system (with procedural complications that remain even after the introduction of GST), difficulty acquiring land, complicated labor laws, and cultural and linguistic diversity. Solving these challenges with only your own company's resources is inefficient, making support from a consultant well versed in local conditions essential.
India's market environment differs greatly by state. Delhi and Bengaluru have different regulatory environments and business customs, so general knowledge of "India" alone is not enough. You should choose a consultant with a track record specific to the state and industry you are entering.
Personal networks (connections) are extremely important for business in India. A consultant with direct access to government agencies, regulators, industry associations, and potential partner companies can greatly speed up the market-entry process.
No matter how much local knowledge a consultant has, they cannot provide effective support if they do not understand the decision-making process and organizational culture of Japanese companies. In addition to the ability to communicate in Japanese, the ideal consultant is someone who understands Japanese companies' culture of behind-the-scenes consensus-building (nemawashi), their commitment to quality, and their careful decision-making, and who can bridge the gap with the Indian side.
Consulting fees vary greatly depending on company size and scope of service, but an unclear fee structure can cause trouble later on. It is important to understand the differences between fee models, such as success-fee-based, hourly, and fixed-project pricing, and to choose the one that fits your company's needs.
Entering the Indian market requires a wide range of tasks, including market research, company incorporation, tax and legal compliance, hiring, securing office or factory space, and obtaining permits and licenses. Splitting these across multiple consultants increases communication costs and risks losing consistency across the project as a whole.
Entering the Indian market always carries risk. A risk management system is needed to prepare for unforeseen events such as regulatory changes, political risk, currency fluctuations, and trouble with partners. Considering an exit strategy in advance, including the worst-case scenario of withdrawing from the business, also improves the quality of management decisions.
Entering the Indian market is not a short-term project but a long-term commitment. It does not end with incorporation; ongoing support is needed afterward for business expansion, regulatory compliance, talent management, marketing, and more. You should choose a consultant who can build a relationship as a partner, not just on a project-by-project basis.
One notable move in 2025 was the announcement of a strategic alliance between Tokyo-based CDI (founded in 1986 by a former BCG consultant) and India's Universal Consulting. This alliance established a one-stop system providing everything from India market-entry strategy formulation to on-the-ground execution support for Japanese companies. Others, such as Nichi-In Support Services (based in Delhi NCR), Japan India Consulting (JIC), and the Universal Japan Association (UJA), also offer specialized services for Japanese companies.
Choosing an India market-entry consultant is an important decision that determines whether your entry succeeds. You should compare multiple consultants against these seven points — track record and expertise, local network, Japanese-language and cross-cultural support, fee transparency, one-stop service, risk-management ability, and a commitment to a long-term partnership — and choose the partner that best fits your company's needs. In the end, we also recommend using information from JETRO offices and the Embassy of Japan in India, and making your decision after obtaining multiple recommendations.
This is because India has unique challenges, such as a federal system with regulations that differ by state, a complex tax system, difficulty acquiring land, complicated labor laws, and cultural and linguistic diversity. Solving these with only your own company's resources is inefficient, and support from someone well versed in local conditions speeds up the entry process.
Check the number of past India market-entry support projects and their success rate, a concrete track record in the specific state or city you plan to enter, expertise in the relevant industry, and whether they have a track record of supporting Japanese companies. Since regulations and business customs differ between Delhi and Bengaluru, general knowledge of India alone is not enough. A track record specific to the state and industry you are entering matters.
No, Japanese-language support and cross-cultural understanding are separate criteria. The ideal consultant is someone who understands Japanese companies' culture of behind-the-scenes consensus-building, their commitment to quality, and their careful decision-making, and who can bridge the gap with the Indian side. In addition to the ability to report in Japanese, also check whether they have experience living abroad or working at a Japanese company.
This is because entering the Indian market requires a wide range of tasks, including market research, company incorporation, tax and legal compliance, hiring, securing a base of operations, and obtaining permits and licenses. Splitting these across multiple consultants increases communication costs and risks losing consistency across the project as a whole.
Understand the differences between fee models, such as success-fee-based, hourly, and fixed-project pricing, and choose the one that fits your company's needs. Checking for a clear explanation of the fee structure with a quote, advance disclosure of additional costs, a clear definition of deliverables, and clarity of contract termination conditions helps you avoid trouble later.
Compare multiple firms from the perspectives of track record and expertise, local network, Japanese-language and cross-cultural support, fee transparency, one-stop capability, risk-management ability, and a commitment to a long-term partnership. We also recommend using information from JETRO offices and the Embassy of Japan in India, and making your decision after obtaining multiple recommendations.
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We support Japanese companies entering India, from market research through local partner development, test sales, and import.