Executive summary
How a company enters a market often matters as much as which market it chooses. The main options – distributor or agent, licensing, joint venture, acquisition and greenfield investment – trade off control, speed, capital and risk differently. This playbook sets out when each model fits and how companies can move from one to another as confidence grows.
The opportunity and supporting evidence
International bodies classify investment entry in similar ways. The OECD's Benchmark Definition of Foreign Direct Investment (fifth edition, 2025) defines four types of FDI transaction: greenfield investment in a new enterprise, extensions of capacity of an existing enterprise, mergers and acquisitions, and corporate or financial restructuring.
UN ESCAP's outward FDI toolkit lists five relevant entry modes: greenfield investment, mergers and acquisitions, R&D centres, resource extraction, and sales and representative offices. It notes that ownership in these investments can range from 10% to 100%, and that M&A is particularly promising for acquiring proprietary knowledge and assets.
The context is challenging. UNCTAD's World Investment Report 2025 reported that global FDI fell 11% in 2024 to $1.5 trillion.
Nirji's interpretation. In a tighter investment environment, staged entry – lower-capital models first, larger commitments once proven – reduces risk.
Countries, sectors and participants
Potential collaboration models
| Model | Control | Capital | Speed | Best when |
|---|---|---|---|---|
| Distributor or agent | Low | Low | Fast | Testing demand |
| Licensing | Low–medium | Low | Medium | Strong IP, partner can produce |
| Joint venture | Shared | Medium | Medium | Local access or rules require a partner |
| Acquisition | High | High | Fast | Need licences, customers or capabilities now |
| Greenfield | Full | High | Slow | Long-term commitment, proven demand |
Operating considerations and constraints
Practical next steps
What remains uncertain
Investment rules and incentives change, and the right model depends on company-specific factors. Treat this framework as a starting point for analysis rather than a recommendation.
Japanese companies planning an India project
For Japan-to-India expansion, R&D, manufacturing or a pilot, use our guide for Japanese companies entering India to frame partner diligence and JV decisions alongside the entry-model comparison above.