Once again I will start with the same statement which I have been repeating since years while suggesting western businesses on how to do business in India.  "India is just a different market and the business concept which applies anywhere else just doesn't work in India".

Vodafone is learning in a hard way specially When you look at the Vodafone results it shows virtually absence of operating profits from its huge customer base in India.

Vodafone is seeking growth in emerging markets such as India (just like every other western company) without understanding the Indian consumer psychology.

The results is with 4 years of hard work with revenues more than £2 billion from a customer base of 141.5 million people, Vodafone made virtually zero operating profits from India in  the half year.

I have repeatedly explained about flawed concept of 300 million Indian middle class purchasing power  in India which the eminent retail consultant often mistakely use when describing large buying power in India.

This concept is in detail in my book "Doing Business in India and Understanding pitfalls" published in year 2008
http://www.amazon.co.uk/Doing-Business-India-Understanding-Pitfalls/dp/0955688272/ref=sr_1_3?s=books&ie=UTF8&qid=1323080377&sr=1-3

Slowly western companies started realising that India is a tough place to do business and  the bitter truth of middle class purchasing power.

In addition Vodafone is entangled in seemingly never ending issue of £1.5 billion withholding tax bill the Indian  government wants Vodafone to pay following its 2007 acquisition of Hutchison Essar.

Vodafone has spent around £12 billion in India so far but has yet to generate a meaningful return.