India is too big a business opportunity to miss
INDIA is simply too big an opportunity for Yorkshire businesses to miss, according to experts.
By 2030, India is projected to house the world’s largest middle class consumer market, surpassing both china and the US. It plans to spend US $1trn on a variety of new infrastructure projects by 2020, encompassing roads, airports, power and urban regeneration.
Guy Thomas, head of transaction services at Deloitte India, said: “India is a market you can’t afford not to think about, it is one of the fastest growing markets and one of the biggest. But you have to have a clear understanding of how the market works.”
According to experts at Deloitte, which is currently holding the Deloitte India Growth Roadshow, recent reforms passed by the Indian government have been focused on making India more investor friendly through measures such as relaxing the rules governing Foreign Direct Investment and loosening restrictions on foreign ownership in key sectors. Major proposed investments announced recently by players such as Marks & Spencer, which has pledged to make India its biggest market outside the UK, highlight the attractions of what is fast becoming one of the world’s largest marketplaces.
Thomas said: “A lot of businesses from the West want to be part of it and cannot afford not to be. People are investing here. M&S wants to make India its largest market out of the UK.
“The language of business is English, the time zone isn’t complicated. India has got an incredible demographic, too. Half the population is under the age of 30.
“However, there are some challenges when investing in India. Unless you are a large corporate, working out how to get into India and where to start is quite a challenge. But the prize available is so enormous.”
Thomas said businesses have to be patient and not rush into it and not to make assumptions. He also suggests finding a partner in India to work alongside.
Anil Talreja, partner at Deloitte India, highlighted that regulations surrounding retailers in India are not as restrictive as they previously have been and therefore, there is a whole opening up of investment in this sector. “India has predominantly been a service based economy. But that doesn’t mean it doesn’t have manufacturing and industrial business opportunities,” he said.
Thomas said there is a good amount of potential and growth in chemical, manufacturing, pharmaceutical, healthcare and industrial sectors. He said he believes there are “massive” growth opportunities in infrastructure and healthcare industries and these are areas of the economy that that will grow pretty quickly, but said he thinks overall, there’s potential in all sectors.
India’s healthcare market has risen at a 19.1% CAGR over the period 2005-2011 it is expected to touch $79bn by 2012 and $280bn by 2020.
