As Australian and US businesses look to expand their markets and diversify from traditional trading partners, Governments are paving the way for increased trade and security arrangements. Whilst the QUAD has created great government to government dialogue between Australia, India, the US and Japan, how do Australian and US businesses commence dialogue with local treading partners and succeed in the Indian market?

The World Bank’s latest data projects India’s GDP to reach an impressive $3.4 trillion, propelling the nation into the ranks of the world’s fifth largest economies. This feat is characteristic of India’s consistent performance as the fastest growing major economy, underscored by a recent statement from Prime Minister Modi, who confidently predicts India’s ascent to the third largest economy by 2027. This bullish outlook is underpinned by several factors, including visionary policy directives, stable governance, a favourable business climate, robust geopolitical relationships, and an environment conducive to innovation and trade.

As India emerges from the shadows of poverty, a growing demand for goods and services is being witnessed, rendering the nation an attractive destination for foreign businesses keen on investment and expansion. Notably, key sectors such as technology, healthcare, retail, automotive, defence, and infrastructure have served as avenues for foreign investors, catalysing India’s remarkable economic trajectory.

Today, with a staggering population of 1.4 billion people, English established as an official language, a democratically elected government, and a diaspora of educated citizens capable at bridging cultures, India has emerged as an alluring alternative to our traditional trading partners.

While the allure of Indian business prospects is undeniable, navigating its complex market landscape presents formidable challenges. Establishing and managing a business in India whilst trying to understand its intricacies demands considerable time and effort. Compliance with numerous local, state, and federal laws, securing the right permissions, licenses, and authorisations, and adjusting to the preferences of Indian consumers stand as pivotal conditions for achieving success.

Over time, companies have deployed diverse strategies to penetrate the Indian market. Suzuki’s partnership with the government in 1983 to launch Maruti Suzuki, a venture that continues to flourish, stands as a good example. Concurrently, Tata and Starbucks, Bharti and AXA General Insurance, Cadila and Bayer Zydus Healthcare, amongst others, have harnessed the power of joint ventures to secure their foothold. On the flip side, corporate giants such as IBM, Amazon, Coca-Cola, Pepsi, Google, HP, Nestle, and Sony have boldly charted their own pathways to success.

Nonetheless, for every success story, there exists a tale of struggle. Notably, in December 2022, the Indian government disclosed that 2,783 foreign companies and their subsidiaries had ceased operations in India between 2014 and November 2021. Motorola, Nokia, Vodafone, Chevrolet, and Walmart are examples of companies that encountered hurdles due to cultural disparities and the intricacies of conducting business in India.

Intricately woven into the fabric of Indian business is the need to comprehend its diverse and intricate environment. Businesses who have succeeded in India invest in cultivating relationships and trust with local stakeholders, recognizing the pivotal role personal connections play in shaping business interactions. As they say – “Your network is your net worth”.

The merits of patience, flexibility, and adaptability are crucial in navigating bureaucratic complexities and cultural differences. Prioritizing compromise during negotiations lays the foundation for enduring partnerships. Foreign entities must also demonstrate an astute awareness of the regulatory framework, tax structures, and compliance norms governing Indian commerce.

India’s hierarchical social structure places a premium on respect for authority and age, a principle that reverberates through business interactions. Communication often unfolds in an indirect and polite manner, necessitating active listening and a keen sensitivity to non-verbal cues. The nuances of timing and flexibility in scheduling meetings mirror the relatively relaxed nature of India’s business culture. To truly thrive, a nuanced understanding of the varied cultural landscapes across different states and regions is a must, serving as a bedrock for tailoring business strategies accordingly.

The crux of success hinges on capturing the local sentiment and honouring the prevalent culture. The revered status of the cow, the transformative impact of the Navratra festival turning carnivores into vegetarians, and the coexistence of English and local languages exemplify the intricate tapestry of Indian society.

This landscape, rich with contrasts, necessitates careful navigation.

The Indian penchant for ‘jugaad,’ the art of resourcefulness and innovative problem-solving, coupled with careful negotiation alludes most new entrants into the Indian market. This ethos can be harnessed in business to adapt to unique challenges and craft alternative solutions, albeit with a vigilant eye on potential regulatory implications.

Fluent communication in the Indian context is an artistry characterised by subtlety and indirectness. Politeness and lengthy phrasing are the norm, with individuals often veering away from direct negative feedback. Skilful active listening and skilled interpretation of non-verbal cues are pivotal in unlocking the underlying meanings within conversations, averting misunderstandings.

An often-misunderstood aspect by many investors is the intense competition across sectors. India’s consumer market, in particular, is a bustling arena teaming with local and international players vying for consumer attention. Foreign enterprises must impeccably tailor their offerings, services, and marketing approaches to resonate with the unique preferences of Indian consumers.

Impatience and unfamiliarity with Indian business customs can lead to stumbling blocks. The cultivation of relationships and trust is an endeavour that matures with time, demanding patience. Hastening into decisions or negotiations risks misinterpretation and the squandering of opportunities. Thriving in the Indian market necessitates an unwavering long-term vision and a willingness to recalibrate strategies to align with local dynamics.

Several critical sectors have propelled India’s economic ascent, functioning as beacons for foreign investment. The Information Technology (IT) and Business Process Outsourcing (BPO) domain, renowned for its skilled workforce and cost-effectiveness, exemplifies India’s global IT prowess. Simultaneously, the pharmaceutical sector, with its expansive generics market, is a significant contributor to India’s economic tapestry. The nation’s escalating renewable energy sector has garnered substantial attention, underpinned by the government’s commitment to sustainability. Additionally, the burgeoning consumer market, buoyed by a burgeoning middle class and amplified disposable incomes, unveils lucrative avenues for foreign businesses.

India unfolds as a land of boundless possibilities for foreign enterprises, albeit necessitating meticulous planning and a deep-rooted understanding of local markets and consumer behaviour. The complex interplay of cultural nuances holds sway over business outcomes, spotlighting the paramount need for adaptability and innovative strategies. India rewards the tenacious, the curious, and the visionary, beckoning those who dare to forge meaningful connections with consumers and surmount the challenges with resilience.

 

Rashmi Rai – Vaxa India Partner

As a business development and education specialist, Rashmi has extensive experience in identifying and delivering positive outcomes providing maximum impact or her clients and her local community.

Based in Delhi, she has a Bachelor’s degree in Arts with Hindi Honours and a Master’s degree in Arts with a focus on Language, both from Banaras Hindu University and holds a Bachelor’s degree in Education from Mumbai University.

Vaxa Bureau’s trade facilitation services help organisations and businesses looking to gain an advantage for their product or service into Australasia and the Indo Pacific.Our team consist of honorary diplomats, defence attaché’s and retired senior military officers, trade and policy advisors, professional services experts and supply chain and logistics specialists with extensive experience working at the highest levels of government and business across the region.

 

 

By Angus Woods, Owner of Woods Group

KEY TAKEAWAYS:
• Today, technological solutions are indispensable to feed a continuously growing population in the face of limited agricultural land, unsustainable natural resource use, and increasing shocks and stresses, including climate change.

• These solutions are needed to make agriculture more productive and sustainable across all its sectors.

• Feeding nearly 10 billion people by 2050, while maintaining economic growth and protecting the environment is an urgent, unprecedented challenge.

• Applications of data-driven technologies in agriculture have the potential to promote and maintain higher productivity, improved quality of produce, sustainability, as well as providing transparency to consumers.

 

There’s no question that food insecurity is one of the biggest problems facing the global population today.

With the changing climate and burgeoning the population, global food systems will likely witness increasing pressures in the coming decades on supply and demand competition.

Optimal utilisation of limited resources while intensifying farming practices to maintain food security will be a serious challenge for future sustainable crop production.

Various sources predict if stresses on our food system increase — everything from staffing and supply chain issues to climate change negatively impacting crops — more than 500 million people around the world could be facing acute hunger by the end of the year.

Feeding nearly 10 billion people globally by 2050, while maintaining economic growth and protecting the environment is an urgent, unprecedented challenge.

Australia, known as the “food bowl” of the Asia Pacific produce enough food to feed 75 million people. The $122.1 billion Australian food, beverage and grocery manufacturing sector is the biggest manufacturing sector with 273,000 jobs and is a backbone to regional Australia.

As a net exporter, it is therefore vital for our near neighbours that trade, security and shipping lanes remain stable.

Coupled with the geopolitical climate specifically across the Indo Pacific requires human intervention and smart farming practices using artificial intelligence (AI).

Various technological applications can help make farming more efficient and slow the effect of stressors on the food system.

From data processing tools and smart drones to automation and AI, these applications are already having an impact.

In many countries, declining rural labour availability – reflected in rising agricultural wages – is a main driver of agricultural automation.
Rising consumer concerns about food quality, safety, taste and freshness, together with environmental concerns, are also driving investment in digital technologies.

In recent years, the agricultural sector has witnessed an increased use of sophisticated equipment such as robots, satellites, GPS, drones, and other sensor guided vehicles.

These pieces of machinery serve as invaluable sources of data concerning crop growth, soil characteristics, and weather conditions.

While each of these hardware systems is important on their own, the application of advanced AI and machine learning-based algorithms as accumulated data would augment the full potential of these hardware tools.

Applications of AI would allow real-time monitoring and analysis of agricultural processes, generating critical knowledge to fine-tune strategies for optimal resource utilisation, boosting farm productivity while minimising environmental impact.

However, as digital technologies revolutionise, the risks of unequal access and digital exclusion loom large.

Countries must make investments in human capital and put policies and regulations in place to minimise such risks and ensure that everyone, especially smallholders who produce the majority of the world’s food, can participate in a new digital economy.

By David Fraser, Managing Director, RZ Resources

Key takeaways

• Australia is already among the top suppliers of some of the world’s most sought-after critical minerals, with global demand increasing exponentially
• As countries and businesses grapple with the consequences of geopolitical instability in areas such as Ukraine, Russia and China, it boosts Australia’s credentials both as a supplier and a place to invest

Ask most Australians what they know about our mining landscape, and a few key constants will likely emerge. They know the industry is massive in states including Western Australia and Queensland, and that we’re big producers of materials such as lithium, iron ore, bauxite, gold and lead.

What they might not know is that the toothpaste they used this morning, or the coat of white paint they gave their walls at the weekend, likely started out underground in Australia. It’s the story of critical minerals and rare earth elements – one that’s rich in potential and prosperity.

Critical minerals – also commonly known as mineral sands – are metals and non-metals that have been deemed essential for the world’s major and emerging economies to thrive.

In Australia – as well as the US – there are 25 of them, including metals and semi-metals used in our smartphones, flat-screen monitors, electric cars, solar panels, paints, plastics, paper, glass and so much more. They include rutile, leucoxene, ilmenite, monazite and xenotime.

Rare earth elements, meanwhile, are a group of 17 metals made up of 15 lanthanides, plus scandium and yttrium. They are critical for industries such as aerospace and defence, as well as modern technologies like electric car batteries, permanent wind turbine magnets and agents used in medical imaging.

Both resources are also crucial to the development and expansion of clean technology applications, meaning growing global demand – especially for rutile, zircon and titanium – works to our advantage.

Looking to our closest ally, Australia has recently won the support of the United States for the development of its critical minerals industry after both countries reached an agreement to coordinate policies and investment to support the industry’s growth.

The deal paves the way for Australian suppliers of these minerals to be treated as domestic suppliers under the U.S. Defence Production Act.

The Ukraine-Russia conflict, to give one example, brought into sharp relief the fact this region of the world supplied 30% of the titanium for Boeing aircraft.

So when that supply chain is impacted at a fundamental level, as it has been by the ongoing conflict, where does the product then come from? And what does it mean for other nations?

It’s a question with which the world has been forced to grapple. And for Australia it means opportunity, for reasons ranging from risk to timeframes.

When companies look at where to do business, what they’re fundamentally looking for is certainty. That partners can supply decades of product, that this supply will be consistent and that, among other things, it will be done within appropriate safety guidelines.

In Australia, this works to our favour, given our ongoing political stability and rigorous commitment to quality. And it’s contributing to investment as a growing force, particularly from Europe, which is proactively exploring opportunities here.

That stands in contrast to some of the high-profile logistical issues centred around China in recent years.

During the pandemic, companies that were used to getting most of their product from the Asian powerbroker realised that supply wasn’t guaranteed – especially given geopolitical uncertainties.

Furthermore, a rise in product costs, coupled with inflation, opened up a case to look into other countries, like Australia, that may previously have been considered more expensive.

There was a fresh perspective that potentially paying a bit more was palatable if it shored up supply and quality, especially with Aussie companies showing their willingness to invest in strategic assets.

An example of this was RZ Resources’ move in 2020 to acquire a mineral separation plant at the mouth of the Brisbane River. As the only such plant on the east coast – noting China as our main competitor for this service – it significantly reduced capital cost and time to production. And it was done by a company that is 100% Australian owned and operated.

It creates an exciting precedent in an evolving industry which requires ongoing conversations, and leadership from the highest levels of government to ensure Australia can capitalise on its rich resources to position itself as an attractive place to invest and do business.

There’s also the influence of geopolitics on supply chains.

Looking to our closest ally, Australia has recently won the support of the United States for the development of its critical minerals industry after both countries reached an agreement to coordinate policies and investment to support the industry’s growth.

The deal paves the way for Australian suppliers of these minerals to be treated as domestic suppliers under the U.S. Defence Production Act.

The Ukraine-Russia conflict, to give one example, brought into sharp relief the fact this region of the world supplied 30% of the titanium for Boeing aircraft.

So when that supply chain is impacted at a fundamental level, as it has been by the ongoing conflict, where does the product then come from? And what does it mean for other nations?

It’s a question with which the world has been forced to grapple. And for Australia it means opportunity, for reasons ranging from risk to timeframes.

When companies look at where to do business, what they’re fundamentally looking for is certainty. That partners can supply decades of product, that this supply will be consistent and that, among other things, it will be done within appropriate safety guidelines.

In Australia, this works to our favour, given our ongoing political stability and rigorous commitment to quality. And it’s contributing to investment as a growing force, particularly from Europe, which is proactively exploring opportunities here.

That stands in contrast to some of the high-profile logistical issues centred around China in recent years.

During the pandemic, companies that were used to getting most of their product from the Asian powerbroker realised that supply wasn’t guaranteed – especially given geopolitical uncertainties.

Furthermore, a rise in product costs, coupled with inflation, opened up a case to look into other countries, like Australia, that may previously have been considered more expensive.

There was a fresh perspective that potentially paying a bit more was palatable if it shored up supply and quality, especially with Aussie companies showing their willingness to invest in strategic assets.

An example of this was RZ Resources’ move in 2020 to acquire a mineral separation plant at the mouth of the Brisbane River. As the only such plant on the east coast – noting China as our main competitor for this service – it significantly reduced capital cost and time to production. And it was done by a company that is 100% Australian owned and operated.

It creates an exciting precedent in an evolving industry which requires ongoing conversations, and leadership from the highest levels of government to ensure Australia can capitalise on its rich resources to position itself as an attractive place to invest and do business.

Defence, opportunity and strategy: why the time is right to innovate in cyber security and defence

The Indo-Pacific is emerging as a critical geopolitical area for this century. In terms of economic, technological and resources capability, the area is crucial to continued growth and prosperity for the global community.

However, despite almost 80 years of relative peace, this area is now under threat due to increasing displays of regional aggression.

Australia’s role in the region has never been more essential to preserving hard won peace, securing economic gains and driving technological advancement.

As a nation, we must not shy away from emerging threats to peace in our region, instead we should use it as a catalyst to drive change, both at home and regionally.

We have a real opportunity to use the current regional uncertainty to bolster our own capability and innovation within the defence and cyber security sectors, which will have positive flow on effects for all Australians.

These include improving our own independence by building capacity across critical infrastructure, harnessing the power of new technology and properly funding startups that show promise in key sectors.

Advanced and emerging technologies, including artificial intelligence, combined with operational concepts that harness them in innovative and unexpected ways, are creating new opportunities to bolster our cyber and actual security.

Australian’s ingenuity for inventing solutions for some of our most vexing problems is celebrated the world over, including the electronic pacemaker, cochlear implants, the Gardasil vaccine and wi-fi.

And while Australians invented wi-fi, we missed the boat in truly monetising it. We believe that by investing in innovation, particularly in cybersecurity and defence, similar future opportunities will not be missed.

Despite our past successes in the innovation space, we lack the collective confidence to back ourselves and take risks in investing in early-stage technology.

This mindset needs to change.

Imagine an Australia where the best and brightest are properly funded in the startup stages. The depth of our collective capability would be nurtured and celebrated and its applications for the wider community would lead to significant progress.

Areas like quantum computing and hypersonics are already unlocking capabilities that were, until recently, deemed impossible.

Another key factor is the separation that exists within the minds of Australian people between defence tech and “everyday” technology. We need to communicate how investing in defence technology can benefit everyone’s lives, for example, using technology to generate unlimited clean nuclear energy, providing rapid transport with little to no impact on the environment and deploying rapid-build accommodation.

Technology gained from defence has been crucial in propelling all industries but particularly transportation, healthcare, technology and agriculture . A good example of this is the Australian tech company Advanced Navigation. Thought to now have unicorn status, the tech start-up developed Artificial Intelligence-based inertial navigation technology for space exploration, morphing to defence applications and is now powering driverless trucks transporting cargo between warehouses. These technologies, and building successful technology companies, present Australia’s best hope for a prosperous, peaceful future beyond regional tensions.

Emerging technologies including AI, are showing real promise across a range of industries, despite some challenges. As the Australian people become more comfortable with AI, they will be better able to understand how it can be applied to cyber and defence sectors and the flow on benefits to their own lives, notwithstanding improved defence and cyber capabilities.

At a business level, Azcende has taken on the responsibility to lead the development of a National Security Innovation Ecosystem (NSIE) for Australia and directly connect it with the US. The NSIE is about identifying tech entrepreneurs, experts and other broader stakeholders who have a desire to drive greater security, self-reliance and efficiency in water, utilities, defence and other critical infrastructure.

As a result of Azcende’s investment fund, we attract a number of startups that could be vital in their ability to address the national security risks including supply chain integrity. We advise boards and executives to understand which technologies could address these national security risks to maintain resilience through any major geopolitical instability.

This service pre-empts geopolitical risks, something invaluable to a country like Australia whose key allies are literally oceans away.

 

About the author
Alok Patel, Chief Executive & Managing Partner Azcende – Vaxa Bureau Associate

Alok is a technology and strategy executive with more than 20 years’ experience across numerous industries including defence , infrastructure, engineering, real estate and investment banking. He has developed leading technology initiatives across industry and government that leverage software and the Internet of Things for the operation of critical assets. Alok is also a Staff Officer at Warfare Innovation with the Australian Navy, working on AI, cyber warfare and autonomous systems. In addition, the Harvard Business School Alumnus has built a successful management consulting firm valued at $25m.

Supporting Legacy in its care and support for families of veterans

Anzac Day on April 25 is a time when Australia comes together to pay its respects to all those men and women who have served in the defence and protection of our country and our allies.

It’s a time of memorial that’s rich in both significance and symbolism, especially in noting those dedicated members of the armed forces whose service and sacrifice have created far-reaching consequences and impacts for their families.

It’s a cause to which Legacy has been dedicated for 100 years – and something Brisbane business Vaxa Bureau has now committed to championing through a trailblazing new partnership.

In Legacy’s centenary year, Vaxa Bureau has announced it will begin gifting the organisation with a percentage of its annual profits to support the charity’s valuable work.

Services Legacy provides include:

• Relieving financial hardship – providing basic needs, and advocating for families’ rights and benefits;
• Delivering social connection services – ongoing social support in times of loss and grief; working to ensure emotional health and wellbeing; and
• Providing developmental opportunities – providing for education and development goals to help families grow and thrive despite adversity.

Among those cared for by Legacy are ageing and vulnerable widows, young families and children, and dependents with disabilities.

Vaxa Bureau director Todd Crowley said the company looked forward to a meaningful partnership.

“Many of our team members have a long history themselves with military organisations, either as former serving members, contractors or through our families,” Todd said.

“We know from experience how vital the work of Legacy is in ensuring that the partners and children of veterans who gave their lives or their health can fully realise their potential.

“It’s about remembering that behind every veteran there’s a family.”

Legacy Brisbane CEO, Brendan Cox, said they supported more than 5000 family members of fallen and injured veterans across South-East, Central and Western Queensland.

Brendan encouraged other corporations to follow suit with regular workplace gifting programs.

Other types of support include donations or signing up as Legatees, volunteer members who deliver the vast majority of services to support veteran families.

“Our mission is clear – to ensure the families of veterans don’t suffer financially or socially after the death or injury of their loved one,” Brendan said.

“These courageous men and women made the ultimate sacrifice for their country and Legacy is committed to supporting their loved ones.

“We are extremely grateful for the support we receive across Australia.”

If you’d like to learn more about how you can support Legacy’s crucial services, visit Legacy.