Pepsi entered the Indian market in the late 1980s as the US market was becoming saturated and India represented a large, untapped market. However, entering India presented challenges as the economy was closed and the government intervened in foreign businesses. Pepsi overcame these challenges by launching an Indian brand called LAHAR PEPSI, pursuing political and public support, establishing joint ventures with local companies, and bringing new technology and jobs to India. While Pepsi faced some early losses and criticism for unfulfilled promises, it ultimately benefited from India's economic changes and established a long-term business serving Indian consumers.