M+V Survey 2016 | First published in M+Vs India Insight in July 2016
India is already the World‘s 9th largest economy and likely to become 3rd largest by 2030. GDP growth is above 7% and set to stay that way with the World’s largest youth population beginning to enter the job market. India is vast and complicated and many international companies find it hard to succeed; so we asked international companies what this really means for them and what is the business potential in India.
How much potential do you see in India in the next 3-5 years?
We asked international Companies based in USA, Germany, France, Italy & other nations, how they view the potential of India: 62% of companies think there is lots of potential in India.
Which industries see the most potential in India?
Agriculture, Automotive, Food, Energy & Utilities, Industrial Automation, Construction and Chemical saw the most potential. Packaging, Mining, Textile and Water Waste Water Treatment Industries saw less. German companies see most potential in the Automotive sector, whereas Italians see the most in Agriculture.
How active is your business in India right now?
Most respondents already have some or good business in India, but still see lots of potential in the market. Most of the companies already with business in India are doing well and plan more, and they therefore see less limits for expansion than others.
What limits your business expansion in India?
30% of companies said that the market is fulfilling its potential and they are doing well with nothing holding them back. For others, the answers were split by nationality; more Americans felt they needed to know more about the market or found Indian bureaucracy a barrier, while Germans and Italians were held back by current available resources or finding the right partner.
There is huge potential in India in various industries and many companies are willing to extend their presence in the country. With reducing entry and expansion barriers, India can become an even more interesting business destination. The ‘real’ potential of India for international companies is still very much existent.