Module – 2

Business Reports & Documentation

1. United Nation’s Sustainable Development Goals (SDGs)

Refer to: https://www.un.org/en/exhibits/page/sdgs-17-goals-transform-world

A Brief History of SDG

In 1972, the Stockholm Conference (UN Conference on the Human Environment) was the
first major global gathering focused on environmental issues, leading to the creation of UNEP
- UN Environment Programme. The 1987 Brundtland Report, also known as "Our Common
Future", is a significant milestone as it popularized the concept of sustainable development.
The Millennium Development Goals (MDGs) 2000 set the 8 global goals for 2015 to address
poverty, health, education, gender, etc. The Rio+20 Conference 2012 resulted in the
document “The Future We Want”, calling for a new set of goals and in 2015, UN adopted 17
SDGs with 169 targets, integrated across social, economic, and environmental dimensions.
The Sustainable Development Goals (SDGs)—a set of 17 global goals adopted by the United
Nations—can be divided or grouped in several ways, depending on the purpose of analysis,
such as thematic relevance, interlinkages, or implementation focus.
Thematic Division: This method clusters SDGs by the type of challenge or sector they
address.
Group SDGs Included Focus
Ending poverty and hunger, health, education, gender
People SDG 1, 2, 3, 4, 5
equality
SDG 6, 12, 13, 14, Water, climate action, ecosystems, responsible
Planet
15 consumption
Energy, work, infrastructure, urban growth, reducing
Prosperity SDG 7, 8, 9, 10, 11
inequality

Peace SDG 16 Peace, justice, and strong institutions

Partnership SDG 17 Global cooperation and implementation

Key Aspects of SDGs based on 169 Targets

SDG Goal Title Key Aspects Based on 169 Targets
• Eradicate extreme poverty for all.
• Implement nationally appropriate social protection systems.
1 No Poverty
• Ensure equal access to basic services and ownership of
land/resources.
• End all forms of malnutrition.
• Double agricultural productivity of small-scale food
2 Zero Hunger producers.
• Ensure sustainable food production systems and resilient
agricultural practices.
• Reduce global maternal mortality and preventable deaths.
Good Health and • End epidemics of AIDS, TB, malaria.
3
Well-being • Achieve universal health coverage, including access to
essential medicines and vaccines.
• Ensure completion of free, equitable, quality primary and
secondary education.
Quality
4 • Eliminate gender disparities.
Education
• Increase supply of qualified teachers, especially in Least
Developed Countries.
• Eliminate all forms of violence and harmful practices
against women and girls.
5 Gender Equality • Ensure equal participation in political, economic, and public
life.
• Ensure universal access to sexual and reproductive health.
Clean Water and • Achieve universal and equitable access to safe drinking
6
Sanitation water.
 • Improve water quality by reducing pollution.
• Support water-related ecosystems and community
management.
• Ensure universal access to modern energy services.
Affordable and • Increase renewable energy share in global mix.
7
Clean Energy • Enhance international cooperation for clean energy
technologies.
• Promote inclusive and sustainable economic growth (at least
7% GDP in LDCs).
Decent Work and
8 • Reduce youth unemployment and NEET rates.
Economic Growth
• Protect labour rights and promote safe working
environments.
• Develop quality, reliable, sustainable infrastructure.
Industry,
• Promote inclusive industrialization and raise industry’s
9 Innovation, and
share of employment and GDP.
Infrastructure
• Enhance scientific research and technological capabilities.
• Empower and promote inclusion regardless of age, sex,
Reduced disability, race, ethnicity, origin.
10
Inequalities • Facilitate orderly, safe, regular migration and mobility.
• Adopt fiscal and social protection policies for equality.
• Ensure access to adequate, safe, affordable housing and
transport.
Sustainable Cities
11 • Reduce environmental impact of cities (air quality, waste).
and Communities
• Strengthen disaster resilience and sustainable urban
planning.
• Halve global per capita food waste.
Responsible
• Encourage sustainable practices in companies.
12 Consumption &
Production • Ensure sustainable management of chemicals and reduce
waste generation.
• Strengthen resilience to climate-related disasters.
13 Climate Action • Integrate climate change measures into national policies
• Improve education, awareness, and institutional capacity.
• Prevent and reduce marine pollution (especially from land-
based activities).
14 Life Below Water
• Sustainably manage marine and coastal ecosystems.
• Regulate harvesting and end overfishing.
• Combat desertification and halt biodiversity loss.
15 Life on Land • Ensure conservation of mountain and forest ecosystems.
• Integrate ecosystem and biodiversity values into planning.
Peace, Justice, • Reduce violence, exploitation, and trafficking.
16 and Strong • Promote rule of law and ensure access to justice.
Institutions • Develop effective, accountable institutions at all levels.
• Mobilize financial resources for developing countries.
• Enhance international cooperation on science, tech, and
Partnerships for
17 innovation.
the Goals
• Promote policy coherence and multi-stakeholder
partnerships.
 Relation between SDGs and International Business
Aspect Connection to International Business
International businesses are expected to uphold ethical labour,
Global Ethical
environmental, and governance standards aligned with the SDGs,
Standards
especially in developing markets.
SDGs open new markets and sectors—clean energy (SDG 7),
Market Opportunities sustainable infrastructure (SDG 9), and health (SDG 3)—which
businesses can tap into for innovation and expansion.
Aligning with SDGs reduces reputational, environmental, and
Risk Management regulatory risks in global operations. For example, promoting
gender equality (SDG 5) prevents discrimination lawsuits.
International trade agreements and foreign investment policies
Compliance & Trade increasingly reference SDG compliance, especially in areas like
fair labour practices, climate responsibility, and transparency.
Multinational companies must ensure their supply chains uphold
Supply Chain
SDG-related principles, such as responsible consumption (SDG 12)
Sustainability
and decent work (SDG 8).
Investors, consumers, and governments worldwide now expect
Stakeholder
businesses to demonstrate commitment to social and environmental
Expectations
goals aligned with SDGs.
SDG 17 promotes global partnerships, encouraging international
Public–Private
businesses to collaborate with governments, NGOs, and academia
Partnerships
to achieve common goals.
SDGs encourage companies to innovate for sustainability—e.g.,
Innovation and
clean tech, green logistics—and share technology across borders to
Technology Transfer
benefit developing regions.
 2. India: The promise and possibilities for global companies (McKinsey &

Company)

(Summary of McKinsey & Company Report: https://www.mckinsey.com/industries/industrials-

and-electronics/our-insights/india-the-promise-and-possibilities-for-global-companies)

India as a Global Business Hub: Key Insights

1. Opportunities for Multinational Companies (MNCs)

• Growing Global Relevance:

India is increasingly viewed as a key global business destination.
 • Key Strengths:
o Large talent pool
o Vast consumer base
o Improving infrastructure
• Projected Economic Gains:
o Potential trade-flow gains of $0.8 trillion to $1.2 trillion by 2030.
o Manufacturing share in GDP expected to rise from 16% (2023) to 25% (2030)

2. Challenges in the Indian Market

Challenge Description
Companies may face bureaucratic hurdles, red tape, and
Regulatory Complexity
shifting policies.
Labor Issues Possibility of strikes and other disruptions.
Diverse Consumer Wide variations in preferences and purchasing power across
Segments regions.
Some MNCs have scaled down or exited due to missteps or lack
Market Exit Risks
of adaptation.

3. Five Factors Shared by Winning Multinationals in India

Success Factor Explanation
Prioritize sustainable growth over quick wins. Prepare for
1. Long-Term View
policy and market fluctuations.
2. Empowering Local Hire leaders with local experience and give them decision-
Leaders making autonomy.
3. Product & Pricing
Adapt products and prices to cater to India’s diverse markets.
Customization
Set up local manufacturing, supply chains, and innovation
4. Localized Operations
collaborations.
Move fast to enter the market, scale efficiently, and leverage
5. Speed & Scalability
early-mover advantages.

India’s Growing Relevance in International Business

1. Talent Pool & Innovation

o One-third of global STEM graduates.
o Potential growth in engineering/R&D sourcing: $44B → $130–170B by 2030.
o India as a hub for global IT and digital services.
2. Manufacturing Potential
o Manufacturing GDP share target: 16% (2023) → 25% (2030).
o Exports (e.g., electronics) to rise significantly: $10B (2023) → $80B (2030) to the
US.
3. Competitive Labor Costs
o Low-cost workforce despite rising wages.
o Growing productivity and workforce participation.
4. Infrastructure Push
o $1.8 trillion infrastructure investment by 2025.
o Port, logistics, and industrial corridor upgrades.
5. Pro-Business Reforms
o National Manufacturing Mission targeting ease of doing business and technology.
o Incentives like 50% capex subsidy for semiconductor plants.
6. Growing Consumer Market
o Largest population globally (1.4 billion).
o Household spending: $271 (2012) → $705 (2023) monthly average.
7. Booming Digital Economy
o Over 1 billion smartphone users (2024).
o Projected 900M+ internet users by 2025.
o Open Network for Digital Commerce expected to grow 5x by 2030.

What International Businesses Need to Succeed in India

Key Strategy Why It Matters

1. Long-term Success requires resilience, as gains are gradual and challenges
commitment like supply chain gaps and policy shifts persist.
2. Strong local Leaders familiar with India's complex regulatory and cultural
leadership landscape can make agile, market-sensitive decisions.
3. Product & pricing India's diversity demands segmented offerings and dynamic
customization pricing models (e.g., Hindustan Unilever’s 17 sanitizers in 100
days).

4. Localized operations Manufacturing locally, developing supplier ecosystems, and

& partnerships collaborating with R&D and training centers strengthen
competitiveness.

5. Speed and scalability Fast movers can capture consumer loyalty, secure suppliers, and
scale operations effectively.

India’s Strategic Strengths for International Business

• $1.8 trillion infrastructure upgrade by 2025 to support industrial growth.
• Government subsidies (up to 70% for semiconductors) encouraging global manufacturing
relocation.
• Global Capability Centers (GCCs): Over 1,500 already in place; 250+ more expected by
2030.
• Digital commerce explosion: Projected growth from ~$70 billion (2022) to ~$340 billion
(2030) via government-backed platforms.

Success Examples
1. Pharmaceuticals: India leads in generics (20% global export volume); hub for APIs and
small molecules.
2. Electronics: Smartphone giant shifting 30% production to India.
3. Semiconductors: Major firm builds first India unit; benefits from 70% combined capex
subsidies.
India-Specific Challenges for International Business
1. Highly Diverse Consumer Base & Market Complexity
o Cultural, economic, and linguistic diversity far exceeds many other countries,
making it difficult to implement a "one-size-fits-all" strategy.
o Over 95% of consumers hold less than $2,000 in financial assets, limiting
affordability of premium products.
2. Geopolitical and Trade Uncertainties
o India's exposure to global trade shifts creates unpredictability for foreign
companies.
o Trade policy and tariff structures are in flux, making long-term planning more
difficult for global firms operating in or sourcing from India.
3. Long Lead Times for Returns on Investment
o Expanding in India often involves delayed payoffs
o Infrastructure, regulatory, and ecosystem maturity take time.
4. Overdependence on Public Sector Investment
o Much of India’s recent industrial and infrastructure growth is driven by
government capital expenditure.
o Private sector investment remains relatively cautious, creating imbalance and risk
if public funding slows.
5. Difficulties in Scaling and Supply Chain Gaps
o To meet both domestic and global demand, companies must scale quickly—but
face key obstacles
o Local suppliers are often micro-, small-, and medium-sized enterprises (MSMEs),
lacking capacity for large-volume or high-quality outputs.
o Supply chain fragmentation and gaps are common in industries still emerging in
India (e.g., high-end electronics, advanced materials).

Key Approaches Adopted by Successful Multinationals in India

1. Taking a Long-Term View and Building Resilience

• Focus on long-term gains, not short-term profits.

• Anticipate India-specific challenges (e.g., regulatory shifts, policy changes).
• Prioritize:
o Product quality
o Customer satisfaction
o Innovation
• Helps maintain profitability even if subsidies or pro-business policies are reduced
2. Empowering Leaders with Local Knowledge and Experience
Strategy Description
Hire strong local
Must understand India’s market, regulations, and culture.
leaders
Autonomy in decision- Local leaders should be able to respond quickly to disruptions
making (e.g., labour strikes).
Alignment with global
Vetting by HQ is necessary, but local flexibility is crucial.
vision
Develop leadership Create leadership programs and offer competitive salaries to
pipeline attract and retain top talent.

3. Customizing Products and Pricing for India

Aspect Strategy
Conduct deep customer segmentation across diverse Indian
Product Development
demographics.
Example – Hindustan Used consumer model with 15 segments; launched 17 Lifebuoy
Unilever sanitizer variants in 100 days during COVID-19.
Implement dynamic pricing based on segment-wise buying power
Pricing Strategy
and economic fluctuations.

4. Localizing Operations in India

a. Local Manufacturing
• Reduces production cost
• Taps into local talent
• Can become a global export hub

b. Building a Local Supply Chain Ecosystem

• Partner with Indian SMEs for raw materials and components.
• Benefits:
o Shorter transport time
o Lower cost
o Faster restocking
• Challenges:
o Supplier capacity may be limited (especially for large orders)

c. Collaboration for Innovation and Training

• Partner with:
o Indian R&D institutions
o Startups
o Training organizations
• Joint investment in employee upskilling and product innovation

5. Moving Fast to Capture Opportunities and Scale

Element Description
Speed of entry Early movers gain better market position and supplier access.
Clear goals and
Don’t expand without a clear road map and metrics.
KPIs
Cross-functional
Ensure communication between India team and HQ.
teams
Scaling operations Set ambitious growth targets (e.g., 10x output).
Greater automation, logistics planning, and quality assurance from
Required systems
early stages.

Conclusion

• India poses unique challenges, but offers high growth potential.

• Success depends on a long-term, localized, and agile approach.
• India should be seen not just as a manufacturing base, but also as a hub of innovation
and product development.
• Companies that persist and adapt may unlock a significant growth engine in a rapidly
developing economy.