India's market is 'brutal'—why Zoho's CEO calls it the toughest test for businesses

Zoho co-founder and CEO Sridhar Vembu has described India’s domestic market as one of the toughest in the world for businesses. Speaking candidly, he compared the challenges to facing a 'demanding and strict Indian school teacher'. According to Vembu, surviving in India is far harder than dealing with global customers. Vembu highlighted the relentless pressure companies face in India. Thin profit margins, frequent audits, strict regulatory compliance, and gruelling negotiations make the environment 'brutal'. He admitted that while global markets pose their own hurdles, Indian buyers demand far more.

Indian consumers are known for being discerning, value-conscious, and fiercely demanding. Their expectations push businesses to constantly refine products and services. Vembu noted that loyalty in India is fragile, shaped by fast-changing trends and growing digital awareness. As consumers become more digitally savvy, the pressure on companies is set to rise further. Vembu even drew a parallel with Japan, suggesting it may share a similarly exacting domestic market. Yet, he expressed gratitude for these challenges, arguing they ultimately make businesses stronger.

The Indian market remains a testing ground for companies, forcing them to adapt quickly and deliver high value. Vembu’s remarks underscore how consumer demands and regulatory pressures shape business resilience. For now, the trend shows no signs of easing as digital adoption continues to grow.