Focus on... India
India is one of the fastest growing economies in the world and the uk is its third-largest investor. Benjamin Coren discovers the benefits of doing business in this innovative market Made up of 29 states and seven union territories, India is a vast country packed with potential.
with a wide range of trading opportunities and a fast-growing economy encompassing multiple sectors, it is an attractive prospect for uk companies willing to navigate potential pitfalls and be patient with what can seem strange and slow cultural practices. english is widely spoken in India so the good news is language needn’t be a barrier to business. other benefits include common legal and administrative systems, rising personal incomes that are creating a new middle-class consumer market, and urban growth that has created more than 50 cities of over a million people. according to the International Monetary fund (IMF), the Indian
economy in 2017 was nominally worth us$2.611 trillion, making it the sixth largest economy in the world. Top exports to India include mineral fuels and oils, gems and precious metal, electrical machinery, mechanical appliances, organic chemicals, iron, steel, plastics, fertilisers, animal or vegetable fats and oils, and medical and surgical equipment.
Businesses need to be aware of the potential risks they may face
doing business in India, however. It is a competitive market, and price is an extremely important consideration for consumers. additionally, there is a risk of delays due to administrative requirements, infrastructure challenges, extremes of weather and a high risk of bribery and corruption. what's more, India is not a single nation market and each state
can resemble a separate country, often with its own language and idiosyncratic practices.
The Indian prime Minister, narendra Modi, visited the uk in april with a huge boost for the uk economy as a range of new Indian investments worth more than £1billion will create or safeguard 5,750 British jobs. alongside the investment, a new India-uk trade partnership has been forged, seeking to improve the accessibility of trade for businesses in both countries. The partnership will focus on three key sectors: life sciences, IT and food and drink.
Total trade in goods and services between the uk and India was £18billion in 2017, a 15% increase from 2016. and uk exports to India, led by innovative machinery and mechanical appliances, contribute
a large element of growth.
The uk's International Trade Secretary, Dr liam fox, says: “It is clear that the opportunities for growth in trade with India are plenty, and as an international economic department we will continue to use tools such as trade missions not only to boost uk exports, but also to help businesses of all sizes forge ties and cultivate relationships with potential buyers and investors.”