30. 30th Edition of Kula Connect
Learnings and Insights from interviewing 20+ Professionals Bridging India and Europe
Hello Kula Community! 👋
Welcome to the Kula Connect Digest, a monthly recap to help you navigate the Indo-European landscape and make you actively involved in Kula’s future.
We are thrilled to mark a significant milestone today — the 30th edition of our newsletter!
What started as a simple initiative to create a connection between India and Europe business and tech ecosystem, has now become a vibrant community of individuals and businesses dedicated to fostering collaboration between India, Europe, and beyond.
As we celebrate this achievement, we want to take a moment to reflect on the stories we've brought to you over the past months, from the challenges of expanding global businesses to the inspiring journeys of entrepreneurs
This edition will also give you a special update on these stories, as we retrace the milestones and lessons from our previous newsletters.
You’re new to Kula? Learn more about us here
Creating a Knowledge Hub: Supporting India-Europe Expansion
When we launched Kula Connect, our mission was clear: to raise awareness and build a shared repository of knowledge about the India-Europe market. As we reach our 30th newsletter, we want to make a recap of all the incredible people we met and learnt from.
Now, as we hit the milestone of our 30th newsletter, we’re taking a moment to look back on the incredible journey we’ve had and the amazing people who’ve been part of it.
Over the past nine months, we’ve had the pleasure of connecting with a dynamic mix of professionals—entrepreneurs, consultants, institutional leaders, and expansion experts. Each conversation opened up a new perspective, offering us invaluable insights into the opportunities and hurdles shaping the evolving India-Europe relationship.
These interactions haven’t just enriched our understanding—they’ve built a treasure trove of knowledge for anyone curious about the intersections of these two vibrant markets.
In this special edition, we’re diving into the highlights: the lessons, stories, and key takeaways from these conversations, along with a guided tour of the brilliant minds who’ve shared their expertise with us.
1. Why we believe the relationship between EU <> India is increasingly relevant
The EU-India partnership is becoming vital in a rapidly changing global landscape. India, now the most populous nation and the fifth-largest economy, is a critical market, innovation hub, and strategic partner.
According to COMTRADE (2024), India's exports to the European Union (EU) reached approximately $72 billion in 2023, representing 17% of India's total exports. This positions the EU as India's second-largest trading partner for exports. The EU has also become a crucial market for Indian goods, with trade relations continuing to strengthen in recent years
As more global companies seek alternatives to China, India offers stability, democratic values, and economic potential, aligning with the EU's diversification goals. We also believe that for the EU to stay competitive, it must act as a unified entity and build alliances with key players like India. Together, they can tackle global challenges such as—climate change, digital transformation, and security.
Indian companies are increasingly aiming to expand globally and boost exports, with Europe emerging as a key partner. While many Indian firms traditionally focused on the U.S. due to its large market and shared language, there’s a growing shift towards Europe as a promising alternative.
To unlock this potential, the EU must address market fragmentation and create a more seamless business environment. By fostering innovation and supporting new ideas, Europe is attracting entrepreneurs eager to showcase their products and services, solidifying its position as a top destination for Indian companies seeking growth.
On this note, EU and India have recently resumed the FTA negotiations after a 9 years stop. The latest round of talks, which took place from September 23 to 27, 2024, marked the ninth round of discussions since the negotiations were relaunched in June 2022.
We will explore why businesses on both sides are keen to collaborate, what to consider when expanding, and insights drawn from our conversations and interviews with experts.
2. India’s Growth Potential is Enormous—Why European Companies Want to Invest and operate there
India’s growing economy presents massive opportunities, making it an increasingly attractive destination for European businesses. While challenges like diversity, infrastructure, and consumer behavior persist, many say ”the potential outweighs the hurdles”.
1. A Massive and Growing Market
With 1.4 billion people, a young and educated population and rising purchasing power, India is one of the few countries worldwide offering strong future growth in various sectors.
A simple yet powerful insight: The middle class currently makes up 31% of the population, a figure projected to grow to 38% by 2031 and an impressive 60% by 2047. This translates to hundreds of thousands of people gaining the resources to purchase cars, clothing, dine out, and even indulge in luxury items. With better access to healthcare, people will also live longer, creating a growing demand for products tailored to older generations—a market that is far from small and offers significant opportunities.
2. Supportive Government Initiatives
The Indian government has launched several incentives to attract foreign investments and boost economic growth. One of those initatives are the Production Linked Incentives (PLI) offering additional sales incentives to companies of 4-6% depending on the sector. Moreover with a continued effort by the Indian governement, FDI (foreign direct investment) is now authorized in almost all sectors.
Check out our newsletter with Léa Parmentier, head of India Desk at Asa, where we discussed that.
3. Geopolitical Shifts: from China to India
Global companies are adopting - as Simone Ciampi, MD of Exprivia China suggested - the "China Plus One" strategy —diversifying operations by adding India as a key hub to reduce reliance on China (see Apple or Tesla now producing in India). This shift is driven by supply chain vulnerabilities, geopolitical tensions, and the need for operational resilience.
4. Skilled, Cost-Effective Workforce
India’s talent-rich and cost-efficient workforce makes it the top outsourcing destination globally. According to a recent Deloitte survey, 80% of European and US corporations choose India for IT services. Interesting fact: Revolut employs a third of its workforce in India without even having launched locally (yet).
5. Innovation-Driven Economy
India’s fintech, e-commerce, and mobile tech sectors are booming, driven by initiatives like UPI digital payments. Low barriers to digital access enable businesses to scale rapidly, although intense competition and low spending capacity remain challenges.
6. Unsolved Problems = Big Opportunities
India’s unresolved challenges present fertile ground for entrepreneurs. Matilde and Adrian, two European founders based in Bangalore that are tackling healthcare access and urban congestion, are some clear examples of this.
3. How to lead a successful expansion in India
Expanding a business in India presents both significant opportunities and unique challenges. With a rapidly growing economy and a diverse consumer base, foreign companies must navigate complex market dynamics to succeed.
1. The Ability to Adapt in the Indian Market is crucial, more than anywhere else
India's regional diversity means that businesses must adapt their products and strategies to local preferences, tastes, and cultural differences for success.
Value Prism Consulting, Piero Giuzzetti’s company, advises companies to approach the Indian market with careful research and a measured approach, considering the diverse regional nuances and adopting a gradual, mistake-and-learn approach. Check out our talk with Piero here.
2. Bureaucracy Can Be a Major Obstacle (but things are changing in various sectors)
India's complex and slow-moving bureaucracy can delay business processes. Regulatory hurdles and inconsistent enforcement make navigating the legal landscape challenging for both local and foreign companies.
As Léa Parmentier, Head of India desk at Asa suggested in our interview, the recent challenge faced by French companies in India has been the Supreme Court ruling on the Most Favored Nation (MFN) clause in the India-France tax treaty in October 2023. The ruling has significantly impacted the tax rates applicable to French companies repatriating funds from India and companies setting to establish business there.
3. Local Relationships and knowledge of the market are Essential
Personal relationships and trust are fundamental to business in India. Companies must invest time in building strong, long-term connections with local partners, customers, and suppliers.
For instance, Leopold Lindner, CFO of a startup focused on introducing osteoporosis treatments in India, shared the following insights during our interview:
“In Indian business culture, it is better to establish personal connections before talking about business”
4. Invest in Building a Strong and Reliable Team
Building the right team is essential for any company, anywhere—but in India, it can be uniquely challenging, especially for expats. Success lies in empowering local talent, who possess invaluable insights into cultural nuances and local dynamics, while prioritizing trust-building and cultivating strong relationships.
For example to ensure a smooth entry in India, FlixBus recruited Surya Khurana as MD, a seasoned professional with prior experience at Uber, who had local expertise to conduct market research and forge essential partnerships. Similarly, Matilde Giglio, Founder of Even, emphasized that building a strong team of employees and advisors with hands-on experience in the healthcare industry was crucial to the company’s success.
5. Business, Culture, and Religion are deeply Interlinked
As Carlo Pizzati pointed out, religion and culture play a significant role in shaping business practices in India. Understanding and respecting these cultural and religious values is crucial for building trust and establishing meaningful connections with Indian consumers.
Interesting fact: Time in India operates on a different rhythm. Deadlines are often flexible, yet things get done. As Matilde Giglio put it, "Time doesn’t exist in India. Everything is possible. I’ve done things here that would be unthinkable elsewhere. There’s even a word—'Gujar'—that captures the culture of making things work, no matter what."
Thank you for reading the Kula Connect Special Digest!
We’re incredibly proud of the quality of the articles we have published and the caliber of the speakers have brought on board. We are convinced that the insights we’re able to share are truly unique, and we’re committed to continuing this journey and taking Kula even further.
As a collaborative community, your feedback and support mean a lot to us. Please don’t hesitate to leave a comment here or reach out directly. And if there’s someone you think we should interview, we’d love to hear your suggestions!