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Posted on 3/21/2018

5 Reasons to do Business in India

Noel Nevshehir

This September, Automation Alley is leading a trade mission to India and is seeking Michigan companies interested in expanding their business abroad. This week on the blog, Noel Nevshehir, Automation Alley’s director of International Business Services and Industry 4.0 Strategic Partnerships, discusses why the Indian market is a promising one for Michigan companies and lays out the business opportunities available in this fast-growing economy.

1. India is the world’s fastest growing major economy. 

India’s GDP grew a whopping 7.2 percent in the last quarter of 2017, supplanting China for the top spot. In addition, manufacturing output soared 8.1 percent while construction clocked in at 6.8 percent. Services also saw impressive gains. 

2. It’s a country with an abundance of consumers, hungry for American-made products. 

With a population of 1.3 billion, India is the second most populous country in the world. India has a strong, vibrant and fast-growing economy that is rapidly integrating with the global economy. Promising business opportunities await U.S. companies—including an emerging middle class of nearly 300 million. 

3. India’s government is cutting the red tape.

This year, India jumped 30 places in the country’s ease of doing business, according to the World Bank’s 2018 Doing Business Report. The nation’s recent success can be partially attributed to economic reforms recently implemented by India’s Prime Minister Narendra Modi. Indeed, last year he proclaimed that “we are not merely reforming India, we are transforming India.” And, in an effort to modernize its economy, Modi demonetized the rupee with the aim of increasing tax collections from the informal economy in order to finance government spending on education and infrastructure. 

4. India boasts a strong auto industry. 

The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in fiscal year 2015-2016, following a growth of 2.57 percent over the last year. In fact, the automobile industry accounts for 7.1 percent of the country's GDP. The city of Chennai is known as the “Detroit of India” for its automobile industry and ranks fifth in India by overall GDP contribution.

5. It’s a country investing in infrastructure and aerospace. 

India is expected to invest a total of $7.5 billion in intelligent urban infrastructure upgrades for 100 cities over the next five years. In addition, the country is planning to buy more oil and gas and civil aircraft from the U.S. In fact, Indian airlines have recently ordered more than 300 planes from Boeing, the delivery of which will start in the middle of this year and extend through 2024.

If you are interested in learning more about doing business in India, please plan on attending our conference Doing Business in India: Opportunities and Challenges at Automation Alley’s Troy headquarters on March 22. As the title suggests, the event will feature business experts who will discuss how to successfully enter Asia’s third-largest economy while overcoming some of the common challenges of doing business there. 

The event will also feature a case study by a local manufacturer with operations in India. He will share his firsthand insights on what has worked and what hasn’t for his company and how SMEs entering the Indian market for the first time can avoid common missteps others have made. You will also hear about Automation Alley’s trade mission to India this September, which will include stops in New Delhi, Pune, Mumbai, Bangalore and Chennai. 

About the Author

Noel Nevshehir | Automation Alley

As director of Automation Alley’s International Business Services, Noel Nevshehir’s responsibilities include assisting local companies in expanding their markets overseas through global trade and export and helping companies from around the world set up their operations in Michigan.

 
 

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