India Is A Huge Market and Growing, Are You Advising Your Customers to Consider India?
It is no hidden fact that India is one of the fastest growing markets in the world. It is one of the most favorite destinations for International firms wanting to expand their business in the Asia Pacific region. One of the main reasons being the up and coming reforms that are in favor of foreign investors willing to establish their foothold in the country. It is also becoming the hotbed for startups, with over 4,750 tech startups in the country, and this number is all set to reach 10,500 by 2020.
So, what makes India the crowd-puller? What are the factors that can potentially inspire worldwide companies to take an interest in the country?
Let’s look at the following pointers to get a better perspective.
McKinsey Global Institute estimates that by 2025, 69 cities in India will reach the population of more than one million each. This translates into opportunities for businesses, which will be needed to support the livelihoods of the populace. This should be one of the core incentives for companies to bring their products and services to the country.
According to data from the RBI, India has a foreign exchange reserve that was US$ 405.64 billion in the week up to March 15, 2019. Add to this, the Indian government’s measures to strengthen the infrastructure, initiatives like demonetization and implementation GST (Goods and Services Tax). All these things lead the nation’s revenue receipts to touch a whopping Rs. 28-30 trillion by 2019. This results in a favorable landscape to do business in the country.
Growing GDP Rates
India is the world’s sixth-largest economy, given its annual GDP growth rate, which is 7.5 percent at present. Moreover,the World Bank has stated that private investments in India are expected to grow by 8.8 percent in FY 2018-19 to overtake private consumption growth of 7.4 percent. This is set to drive the growth in India’s gross domestic product (GDP) in FY 2018-19.
In fact, India is expected to be one of the top three economic powers of the world in the next decade, based on strong democracy and partnerships. Its monetary policy and additional fiscal support can also help boost economic growth. This makes the country a top choice for conducting business.
A Thriving Consumer Market
India trails behind only the USA and China to become the third-largest consumer market. In fact, the consumer spending in the country is estimated to grow from USD 1.5 trillion to nearly USD 6 trillion by 2030, according to a World Economic Forum report. As per a different report by PWC, India can surpass the USA and become the second-largest economy in terms of purchasing power parity (PPP).This gives firms a level playing field for making the most of the consumption opportunity in India.
A Huge Labor Market
India boasts of a huge labor force. And the benefits don’t just stop at that. For any firm entering the Indian market, the decision is based on the comparatively cheaper labor costs, with a lower wage structure. Think of it this way, the minimum wage for contract workers in the country is USD 148 per month, whereas, in China, it comes to around USD 234 per month.
India also sees steady growth when it comes to the adoption of digital technologies.Digital India is powered by the steep rise in smartphone usage. Coupled with internet subscriptions, it can lead to significant economic growth in sectors such as electronics and manufacturing, digital communications, and IT BPM. The core digital sectors in the country constitute a large and a growing portion of the nation’s economy. This is a turning point for the country, and International firms can ride on the wave to derive maximum profits.
A Blooming FDI
According to IBEF, during 2018-19, India received the maximum FDI (Foreign Direct Investment) equity inflows from Singapore (US$ 16.23 billion), followed by Mauritius (US$ 8.08 billion), Netherlands (US$ 3.87 billion), USA (US$ 3.14 billion), and Japan (US$ 2.97 billion). Moreover, the report further stated that FDI to India grew by 6 percent to USD 42 billion in 2018.
FDI is not just a critical driver of economic growth, but it is also a significant source of non-debt financial resource. This rise in the FDI is also useful for the country to attain technical know-how and generate more employment.
For this purpose, the Indian government offers a favorable policy regime along with a robust business environment. This helps in keeping the flow of foreign capital intact in the country. Moreover, the government has also taken several initiatives recently, which includes relaxing FDI norms across various sectors. This works in enhancing the image of the country as an emerging nation for doing trade.
Growing Opportunities in the Exhibition Industry
An EY-EEMA (Event and Entertainment Management Association) report states that the events and activations industry in India is expected to cross Rs 10,000 crore mark by 2020-21. It also said that the organized sector would be able to touch 60% within 2-3 years.
With the Indian exhibition industry putting its best foot forward, several brands are seeking to participate in various upcoming trade shows, events, and trade fairs. Add to this, new venues, better infrastructures, and innovative thinking by the organizers, which emphasize the fact that India will retain this momentum for several years down the line.
Another plus point is the full-fledged involvement of Indian exhibition design agencies, which are quick adopters of the latest trends and are embracing digitization in their work methods. All these facts help international firms to showcase their products and services based on the unique needs of this growing country.
The Road Ahead
Considering such plethora of growing opportunities in India, International brands and agencies find exhibitions and trade shows as one of the primary options to get the pulse of the market, understand the consumer needs, get first-hand feedback on their products, and also connect with potential partners.
Having said that, participating in Indian exhibitions has its own nuances and challenges. One needs to consider cultural diversity and language barriers. Partnering with a local exhibition design agency is a desirable option for international agencies and brands as the exhibition stand design and build agencies can not only design a stand as per the brand’s marketing objectives but also take care of all the logistics and operational hassles.
What are your plans for India expansion?