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Subsidiary Success in India: How to Overcome the Common Pitfalls

Foreign mid-cap companies have been drawn to India for its scale, costs, and talent. Over the past decade (20 1 4- 24) , thousands of foreign subsidiaries have been set up across industries from automotive to chemicals to consumer goods. But entry is not the same as success.   Between 2017 and 2022 - 3,552 foreign companies and subsidiaries shut operations in India.   This equals almost two closures every single day.   While some exits were planned (e.g., project completion), many reflected unexpected challenges such as market misjudgement and operational hurdles faced by foreign CXOs.   For foreign mid-cap companies, this is a serious warning . Unlike global giants, they cannot afford expensive failures. So, what goes wrong after the launch phase?   The Hidden Traps of Running a Subsidiary   Compliance complexity   India’s tax and legal system is layered. Filings, payroll compliance, GST (now GST 2.0), company law , all demand close attention. Miss...
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India as the Next Frontier: Powering International Growth for Mid-Cap Companies

For foreign mid-cap companies, international growth in India is becoming a strategic priority.  • Companies expanding internationally grow 2.5x faster than domestic-only firms • Global foreign investment was USD 408 million until mid - 2025 • Foreign mid-caps are growing exponentially, with their average annual returns exceeding 25-30% over the past year • According to OECD – Supply chain resilience review 2025, Slow growth at home country and changing supply chains are driving firms to look beyond borders to countries like India, China, Vietnam. In this global shift, India has become one of the most attractive markets. For mid-cap firms planning international growth, India is not just an emerging market it is a growth engine. Is India Emerging as a Core Market for Global Mid-Caps? Over the past decade, India has steadily drawn the attention of global firms. Despite global slowdowns and uncertainty, the country has consistently welcomed new entrants, proving its resilience...
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