The India Oppurtunity

India is Booming Again,about the Indian economy?

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India is Booming Again

Centuries ago, the Indian civilization was one of the world’s leading economies. Now, India is again a country whose star is rising. Today, the Indian economy offers immense economic opportunity. Businesses from across the world have lined up to gain a strategic foothold in the Indian market or to leverage the India advantage. Simultaneously, the different sectors of the Indian economy have matured and Indian businesses are aggressively seeking global opportunities.

Experts predict that India and China will be the world’s two biggest economies by the middle of this century. In fact, many foresee a strong possibility that India may well move ahead of China. To support this prediction, they point to the fact that all the pieces of the Indian puzzle are falling in place and the driving forces are moving in the right direction.

Since 1991, India has opened its doors to the world and invites foreign investment with open arms. This has made India the world’s second most favored destination for FDI, after China. What’s more, Indian governments are committed to making these investments rewarding. Above all, the robustness of the Indian economy, size of the Indian market, rising incomes, the changing lifestyles and the high growth rates are factors that every business recognizes as unprecedented opportunity.

Entering India – Your First Step

Business leaders the world over have seen huge opportunities and growth potential in the Indian market. They are only too aware that it is not advisable to ignore such huge opportunities. Hence, hundreds of businesses have entered the Indian market, setting up their own India business divisions with confidence. Where it has not been possible to set up fully-owned businesses, companies have entered into collaborations with Indian partners through various means. As a result, the market has seen a variety of technological joint-ventures, collaborations and transfers taking place. It would be appropriate to say that almost every industrial segment in India is experiencing a technology revolution. The advances made through this revolution are delivering benefits for the Indian economy and the investors’ business.

The First Step Is Your Biggest Challenge

Almost every leading international company today has its products/services available in India, through a direct or indirect presence. Associations are being created every day, in all segments of the Indian economy.

At Orison India, we realize that while the opportunity is attractive, the entry strategy can be highly challenging. This is where Orison India comes in. Orison provides the right strategic solutions for your business to establish operations in India and grow the way you want your business to grow.

To read more about Orison’s services, click here

Want to know more about the Indian economy? Here are some quick facts.

India adds about five million telephone subscribers every month. While one in every five persons owns a telephone, the total number of subscribers is expected to reach 250 million by the end of 2007.

India has one of the largest road networks in the world, aggregating 3.34 million kilometers. It comprises 66,590 km of National Highways, 1,28,000 km of State Highways, 4,70,000 km of Major District Roads and about 26,50,000 km of other District and Rural Roads.

Indian roads carry about 70 per cent of freight and 85 per cent of passenger traffic. Major Indian ports handled cargo of around 463.84 million tonnes in 2006-07.

India is the sixth largest crude consumer and fifth largest oil importer in the world. India has the sixth largest refining capacity - with about 2.9 million barrels per. Export of petroleum products is the second largest merchandise export earner with a total export of US$ 20.4 billion.

India has topped the AT Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year in the emerging markets category. Estimated to be a US$ 350 billion industry, the Indian retail sector is growing at a three-year CAGR of 46.64 per cent.

The tourism sector in India generated US$ 6.56 billion as foreign exchange earnings in 2006 as against US$ 5.73 billion in 2005, accounting for nearly 5.9 per cent of GDP and about 5.4 per cent of total employment.

India exports over US$ 6 billion worth of garments.

India's gems and jewelry sector contributed about 13.7 per cent of India's total merchandise exports during 2005-06 with exports worth US$ 17.1 billion.

India is the largest consumer of gold jewelry in the world and accounts for about 20 per cent of world consumption.

India is the largest diamond cutting and polishing centre in the world.

India is the largest producer of mango, banana, milk, dairy products, coconuts, cashew nuts, ginger, turmeric and black pepper. It is also the second largest producer of rice, wheat, groundnuts, sugar, fruits and vegetables.

Healthcare delivery is one of the largest service-sector industries in India. The country will spend US$ 45.76 billion on healthcare in the next five years.

The Indian IT-ITeS industry has recorded revenues of US$ 39.6 billion in FY 2006-07. India is the second largest two-wheeler market, fourth largest commercial vehicle market, and 11th largest passenger car market in the world.

India is the second largest producer of cement in the world, with a production of 161 million tones.

The Indian pharmaceutical industry ranks 4th in terms of volume (with an 8 per cent share in global sales) and 13th in terms of value (with a share of 1 per cent in global sales).

The Indian pharmaceutical industry could zip at 13.6 per cent and reach a market size of US$ 9.48 billion by 2010.

The contract research outsourcing (CRO) market in India is worth US$ 250 million and is growing at 30-40 per cent year on year.

An Ernst and Young study has named India as one of the five emerging biotech leaders in the Pacific. The study ranked India third in the region based on the number of biotech companies.

The ISA-Ernst and Young in their benchmarking study, ‘India in the Global Semiconductor Design Ecosystem', rates India as the best among different destinations on availability and scalability of talent.

India’s share in global engineering services outsourcing (ESO) market is estimated to increase to 25-30 per cent by 2020 from 12 per cent in 2006.

The eighth PricewaterhouseCoopers Global Entertainment and Media Outlook has ranked India as the fastest growing market in the world for spends in entertainment and media in the next five years. With a compound annual growth rate (CAGR) of 18.5 per cent, the Indian entertainment and media industry is the fastest growing in the Asia-Pacific.

(Source :www.ibef.org)