GOING GLOBAL GOINGGLOBAL
The Chamber’s INTERNATIONAL TRADE TEAM will help you navigate your way through all of the regulatory procedures and documents that you’ll need for successful international trading
INDIA: A LAND OF OPPORTUNITY FOR EXPORTERS
Boasting an impressive GDP growth rate of seven per cent and amid continued talk of a post- Brexit free trade agreement, India offers significant opportunities for ambitious companies seeking to develop new overseas markets. With a population of 1.2 billion
people, of which the median age is 26.7, India is a young country benefitting from a growing domestic demand where consumption is driving the expansion of a middle class. By 2025, India is expected to
become the world’s fifth-largest consumer. As the largest English- speaking population in the world, and with a familiarity of British culture stemming from a close history, UK goods and services enjoy a positive perception. A ‘Brexit: Opportunities for India’
briefing paper published by the Commonwealth Secretariat this year predicted a post-Brexit free trade agreement could increase UK exports to India by 33% per year. Pointing to the fact that the EU
and India have been negotiating a free trade agreement since 2007, the report suggested the UK would be in a better position to negotiate an FTA outside of the EU, which could remove tariff barriers on goods and stimulate trade. Opportunities exist for
internationally-minded companies to provide their goods and services in a range of sectors. Substantial and sustained
government and private-sector investment in infrastructure has transformed the Indian road network, keeping pace with a 10% annual growth rate in the number of road vehicles observed in recent years. Whilst renowned for a world- famous rail network, roads provide the modern links that keep the Indian economy growing. With FDI and capital grants sustaining investment in
infrastructure, significant opportunities exist for Northamptonshire companies in the construction and automotive sectors. Selling in to the Indian market has
also become more manageable, thanks to the development of e- commerce, which has enjoyed phenomenal growth as a commercial platform in recent years. The value of e-commerce to the
Indian economy continues to develop at breakneck speed; from USD$3.9bn in 2009, it increased to $12.6bn in 2013 and $24bn in 2015. By 2020, India is expected to
generate $100bn online retail revenue of which $35bn will be fashion e-commerce. With 450 million regular internet
users, favourable demographics, increased acceptability of online payments and a proliferation of internet-enabled devices, e- commerce provides the ideal platform enabling UK companies to sell directly to a digital market growing at a rate of five million people per month. While the commercial
opportunities in India are significant, penetrating the market is not without difficulty, and research should be undertaken before implementing a market entry strategy. India ranked a lowly 130th in the
2017 World Bank Ease of Doing Business survey, with bureaucratic issues such as applying for building permits and paying taxes hampering output and deterring FDI. Another area of concern for
businesses is the difficulty in enforcing contracts. The World Bank estimates it takes approximately four years to obtain a judgement in a contractual disagreement. Despite the difficulties, the
potential of India as both an export market and FDI destination are so significant that businesses should give serious consideration to entering the market.
12 inbusiness AUGUST/SEPTEMBER 2017
‘SIGNIFICANT OPPORTUNITIES FOR AMBITIOUS COMPANIES SEEKING TO DEVELOP NEW OVERSEAS MARKETS’
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