I inspire to write this blog after reading following information.If you are seeking for best business place ,with hidden goldmine in its future then India is the choice without any doubt.One can grow big with a least capital in India.
India could become third largest economy post-2030 as per CEBR study
IBEF: January 05, 2016
London: Post 2030, India is expected to become the world’s third largest economy, just behind China and US, according to a research report by the UK-based Centre for Economics Business and Research (CEBR). China is expected to surpass the US as the world’s largest economy in 2029 with the US slipping to second place and India close behind at third. In 2030, China’s projected Gross Domestic Product (GDP) will be US$ 34,338 billion followed by America’s US$ 32,996 billion and India’s US$ 10,133 billion. India will also become the largest economy in the Commonwealth after it overtakes the British economy in 2019. The report also says that India is expected to overtake China in the second half of the century. Britain will move up to take fourth spot and Brazil will take the fifth to complete the top five. Brazil and India are also expected to be included in the exclusive G8 club of developed democracies, once they meet the political criteria for its membership. Over the next 15 years, UK is set to become the best performing economy in the western world.
Driven by the average growth rate of 7-8% over last decade and 350 million strong & growing middle-class with increasing purchasing power, the Indian market today is reshaping the world’s economy. India’s GDP crossed the trillion dollar mark in 2007 and is currently in 3rd position (PPP) after US and China. Investment in almost every sector (Education, Food, Energy, Health Care and Retail) of the Indian economy has a promise of high returns that has caught the attention of investors and businesses across the world. Considering that restaurants keep you waiting, malls are packed, movie theatres are full, and airlines and hotels are over-booked showcase the increasing appetite of the Indian consumer. As an example, recognizing that Indian youths strongly favor branded clothes, Levis introduced a special brand ‘Spykar’ for India that is a runaway success.
So far only Multi National Companies (MNCs) with their vast resources, know-how and the right connections have been the major beneficiaries of this phenomenal growth in India. Small and Medium Enterprises (SMEs) and Entrepreneurs are just becoming aware of the growth story of India.
- The total wealth of India has tripled in a decade to $3.5 trillion and is expected to double again in the next 5 years (source: Credit Suisse)
- 1.1 million jobs were created in India in 2010 and this year will see 12.9% salary hike for the employed according to Aon Hewitt, a global HR consultancy group
- The urban-household income would top $4 trillion in next 20 years (US Dept. of Commerce)
- The Population is expected to be over 1.50 billion by 2050 from the current 1.16 billion; the number of people living in the cities will increase to 590 million by 2030 from the current 340 million, and 180 million new workers will get added into India’s work force by 2030.
- By 2020, additional 800 universities and 35,000+ colleges are required to enable the targeted 46 million children to avail college education
- The Boston Consulting Group sees a shortfall of 200,000 engineers, 400,000 other graduates and 150,000 vocationally trained workers in the coming years.
- There is only 1 doctor for every 1700 people in India and 1 nurse for every 1250 people
- 40% of fruits and vegetables produced in India goes wasted
- India added 18.99 million mobile phone connections in January 2011 alone taking the total figure to 771.18 million
- Only 3% have insurance of any kind and less than 1% of Indians participate in Indian stock market
A simple analysis, taking into account the increasing population (See above information), growing consumption and the shrinking agricultural land, shows that there is a very lucrative market for US companies with products or technologies in the following areas:
- Food & Beverages: food processing, food packaging, food warehouse and transport, health drinks, etc.
- Home based: home décor products, kitchenware essentials, bed and bath, etc.
- Healthcare: diagnostics and testing, medical equipment, health supplements, clean air and water products, etc.
- Education: medical/nursing, ‘train the teacher’ programs, automotive mechanics, medical technicians, advanced courses in the upcoming fields of genetics and nanotechnologies. For human resource and skill requirements in the healthcare services industry, your can download a full report by National Skill Development Corporation of India at entryindia.com/files/Healthcare/healthcare.pdf
- Consultancy Services: engineering, business development, product development, security analysis, etc.
- Infrastructure: waste management, solar and wind technologies, temperature controlled warehouses, air and noise pollution control technologies, towing trucks, and automated parking lot equipment.
Similar business prospects abound in other sectors such as home land security, media & entertainment, hotel/motel, financial investment services, etc.
One of the business formats that is rapidly gaining acceptance is “Franchising” which is growing at a rate of 30% annually. While legal infrastructure and ecosystem are in place in India, one must do a thorough research, and due diligence of the potential Franchisee and create binding agreements covering all important aspects of the Franchising before making any investments. One must also understand business norms of India and seek professional help in navigating the paper trail, IP protection, and Tax implications etc. before undertaking partnership agreements with the Franchisee. Top sectors with franchising opportunities are Education and Healthcare due to a huge mismatch between supply and demand now and in the coming years. You may want to take advantage of the fact that US Commercial Service (Dept. of Commerce) regularly takes Trade Missions of US Franchisors to India.
Another popular model is Public Private Partnership (PPP) with the Government of India through a ‘tender’ process. In the Infrastructure sector, for example, India is expected to invest $1.2 trillion in revamping or upgrading its ports, roads, bridges, energy plants, etc. Again the US Commerce Service can be instrumental in making the opportunities in this area available to US companies in a timely fashion and help with responding to the RFPs and with the required paperwork.
All of the above present a historic opportunity for the SMEs and Entrepreneurs in the US to expand beyond borders to India. US companies with the right know-how have almost unfair advantage for success for several reasons:
- President Obama’s National Export Initiative has set a target of doubling US exports to $2 trillion by 2015. To meet this objective, the US Administration has initiated huge incentives to support US exports. Commerce Dept.’s International Trade Administration (ITA) budget is raised by 20 percent to $534 million and 300 international trade specialists are added to help US companies export US goods and services.
- Indians have a very favorable view (76%) of the US according to a Global Attitudes Survey. Indian Government officials make regular visits to the US to meet with the industry experts and to promote business and trade opportunities.
- The government of India offers multiple incentives to US companies doing business in India. Government incentives include duty free import of capital goods and raw materials, reimbursements of Central Sales Tax, Tax holiday for specified period, 100 per cent repatriation of profits for subcontracting facilities and more.
Article by Mr. Navin Pathak – India Business Opportunities
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