India: An Actual Business Opportunity?
The Indian market is undoubtedly among the most interesting emerging economies in the world, thanks to a market and a middle class in strong growth.
Among the emerging economies, India is certainly one of the most interesting opportunities to date.
The Indian economy is among the fastest growing in the world. According to the International Monetary Fund, the Indian economy responded to the deep contraction of 2020, with growth of 9.5% in 2021. Not only that, the rebound is expected to continue throughout 2022 with an expected growth of 8.5%.
Not only is India’s economic growth attractive from an investment point of view, but also its population, which is among the largest in the world. The country has a rapidly growing consumer base that, thanks to a greater purchasing power, will try to afford more and more products and services. In addition, the use of the English language facilitates the market entry of foreign companies.
To help and support the economic growth of the country there are important reforms and programs of economic development, launched by the government, which tend to modernize the market and encourage growth in foreign investment.
Another feature that must be taken into account is the strategic geographical position of India, which makes it the ideal platform for opening up to the markets of South East Asian countries, thus taking advantage of an additional business opportunity.
What are the business opportunities?
The manufacturing sector is certainly a driving force for the country. It is a key sector of the Indian economy that contributes to 16%-17% of GDP, providing employment for about 12% of the country’s workforce.
Agriculture absorbs about half of the workforce and even 25% of the country’s GDP comes from agricultural products. These data show us how crop quality is still low and we need to improve productivity.
The sectors to be considered with high strategic potential at this time are represented by mechanical and engineering. In fact, both sectors show an increase in demand, caused by an increasing consumption of oil and gas by users. In the next 5 years is previewed a ulterior increment had from the investments in infrastructures of 1.5 trillions of dollars from the government.
There are also growing IT and technology sectors. It is no coincidence that in recent years many companies have invested in India, opening centers of production and research in the field of technology.
A significant increase in India’s import has occurred for food processing machinery, water, water pumps and the chemical industry, especially between 2020 and 2021.
Cold chain in India: development potential not to be underestimated
Opportunities also arise where there are shortcomings. This is the case of the cold chain in India, which is still in deficit and therefore represents a high potential for development. Just think how about 35-40% of Indian agricultural production is wasted due to the lack of adequate cold storage facilities. The storage facilities currently operating on the territory, in a non-uniform way, are used more for the preservation of potatoes. Market changes, however, are increasing the focus on multi-purpose cold storage especially in areas where investment in cold chain infrastructure is still weak.
Search for partners in India
Considering the economic growth of recent years and the growth forecasts of the economy, one can come to the conclusion that investing in India today might be convenient. Among emerging markets, India is certainly among the most attractive. Being able to find partners within the country can bring major benefits and lower investment risks. MatcHub provides its free services to find business partners in India through the creation of “Proposals”, real offers of partnerships dedicated exclusively to profiled companies.
If your company is also interested in entering the Indian market, join MatcHub for free and use the platform to find new business partners and expand your business.