“For Danish companies that can adapt quickly, the door to paradise will open”

“The trade agreement between the EU and India is a historic opportunity for Danish companies with the courage to embark on entirely new ways of doing business,” says Lennart Garbarsch.

“I once heard a Danish man talk about the time he was stationed in Hong Kong. One of the things that surprised him most was how often colleagues and business contacts invited him to karaoke bars. Even though he personally found the activity pointless, he went along again and again because he believed it was an important part of the local culture and crucial for building strong relationships.

Despite these good intentions, the man’s cultural adaptation ultimately failed. It happened when he was invited to a child’s birthday party by a business associate and declined the invitation. He felt it would bring him far too close to a family he did not really know, while the Chinese man most likely felt humiliated and ashamed by the rejection. The result? The relationship—and the contract the Dane had been working on—collapsed with a bang.”

“I have always carried that example with me when entering new markets. For instance, my own company established a department in the Philippines a year ago. Experiences like that make you wiser—especially when it comes to understanding that the differences in authorities, interpretations of contracts, payment practices, and the handling of documents can be incredibly large when a Danish company ventures into trading with businesses in Asia.

These experiences came back to mind the other day when I read about the new trade agreement between the EU and India. I see it as a cold rejection of Donald Trump and his unpredictable whims, but also as a historically significant opportunity for a wide range of Danish companies.”

“The agreement removes, in one stroke, the tariff of up to 30 percent that has so far been imposed on Indian companies wishing to import from the EU.

Add to that the fact that 1.4 billion people live in India. The exact number of companies is unknown, but it certainly runs into the millions. And many of these companies will very likely be able to benefit from the knowledge in which Denmark is particularly strong.

I am thinking, among other things, of our extensive expertise in green energy, water purification, and waste sorting. These are areas experiencing strong growth in India, and fields in which we are already regarded as international experts.

The opportunities are therefore enormous for Danish companies that are quick to adapt to a new way of doing business. For some, the door to paradise could truly open, because the market and demand are so vast—and because India today accounts for only about 1 percent of Danish exports.”

“Unfortunately, the pitfalls are also easy to spot when moving from small Denmark all the way to the world’s most populous country. And it is not only about karaoke and children’s birthday parties, but rather about a fundamentally different culture and moral framework than the one we are used to.

For example, in India you must obtain approval from the authorities before you are allowed to invoice a local company. In practice, this means you have to wait for a reference number from the authorities each time you are ready to issue a new invoice. Naturally, this delays payment. And Indian companies already tend to pay when they feel ready—regardless of the deadline.

In addition, it is a huge advantage to have a presence in India, where both bureaucracy and corruption play a significant role. If you are not physically present and do not know the right people, it can in some cases be impossible to get projects approved and carried out.”

“Note also that in India 22 official languages are spoken, along with roughly 100 additional languages that are not officially recognized. Laws and regulations are also interpreted differently depending on the region in question.

Furthermore, the right supporting documents, customs papers, and certificates can easily make the difference between a successful agreement and one that collapses. Likewise, a deadline in India is often regarded more as a wish than an absolute commitment. Finally, it is not uncommon for a signed contract to suddenly be considered outdated, with a clear expectation that it should be renegotiated.

Before I make cooperation sound completely impossible, it should be mentioned that these are conditions you only need to learn once—after that, there will be few major surprises left. In essence, it is about seeking advice, conducting thorough research, and ultimately testing the collaboration in practice. As with most things, you learn best from your own experience—also when it comes to fitting into a world that in some respects is turned upside down compared with Denmark.”