INDIA Trends and Developments Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
through the Indian Customs EDI System (ICES) and its public interface, ICEGATE, across major ports, air - ports, inland container depots and SEZs, significantly improving compliance efficiency, cargo visibility and movement of goods. Trends and developments India has become an increasingly attractive market for foreign manufacturers, exporters and service provid - ers seeking access to a large and growing consumer base. Consumer spending is on the rise, with over 30 inter - national consumer and retail brands entering India in 2025. Sectors such as fashion, beauty, food and beverages, and lifestyle remain at the forefront. India is now the world’s second-largest consumer market, with consumer spending projected to reach USD4.3 trillion by 2030, nearly doubling from 2024 levels. At the same time, bilateral and multilateral trade agreements continue to strengthen India’s global trade position and improve market access. Sectors witnessing significant growth include technology and artificial intelligence through initiatives such as Bharat - GenAI and the IndiaAI Mission; renewable energy and clean technology, with approximately INR2 lakh crore deployed; electric vehicles, with 77% annual growth; fintech and digital finance; and manufacturing and Foreign entities may structure their commercial engagement with India through a range of arrange - ments. The appropriate model depends on the nature of the business, the degree of commercial involvement and the allocation of rights and obligations between the parties. • Agency model : The foreign company appoints an Indian company to act as its agent in India. The Indian company markets, stocks and distributes the goods and retains a part of the considera - tion paid by the customer as an agency fee. The balance is remitted to the foreign company. Addi - tionally, the Indian company acts on behalf of the foreign company in relation to customer-facing activities. infrastructure. Trade Models
• Marketing and distribution arrangement : The Indian company undertakes marketing, distribution and stocking of goods on behalf of the foreign compa - ny. Goods are stocked in India, and upon identifi - cation of a customer, the Indian company supplies them. However, contractual rights and payment obligations remain between the foreign company and the customer. The Indian entity is compensat - ed by way of commission for its services. • Marketing arrangement : A foreign company engages an Indian company to render marketing services on its behalf. The Indian company identi - fies customers and informs the foreign company, following which the foreign company directly enters into agreements with those customers and sup - plies goods to them. The Indian company receives a commission for the marketing services provided. • Sub - contracting model : The foreign company engages an Indian company to manufacture goods. The Indian company exports the goods directly to the foreign company’s customers. While exports are undertaken by the Indian entity, they are on behalf of the foreign company. The Indian company is compensated on a cost-plus basis along with a subcontracting fee, while the custom - er pays the foreign company. • Teaming agreements / joint development : A foreign company and an Indian company collaborate to develop products for a specific customer. The for - eign company provides technology, know-how and confidential information, while the Indian company undertakes manufacturing and supplies the goods to the customer. Conclusion India’s business and investment environment is enter - ing a phase of increasing sophistication. While the country’s growth trajectory continues to be supported by strong domestic consumption, favourable demo - graphics and sustained policy support, the next stage of development is likely to be characterised by further regulatory refinement, institutional capacity building and deeper integration into global value chains. Recent years have witnessed significant regulatory modernisation across multiple sectors. The imple - mentation of the Labour Codes, phased implementa - tion of the Digital Personal Data Protection framework,
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