When working in India, foreign companies quickly think of three things: poverty, bureaucracy and corruption. But this simple ABC is no longer applicable to the country. This is because, according to the World Economic Forum, “India will play a key role in global industrial revolution 4.0“. In addition, continued economic growth makes India the most attractive emerging market in the world, according to McKinsey. Specially, to make a long-term investment.
The fifth economy of the world is going economically like a train. The country is rapidly modernizing: cities are being made more liveable with the Smart City plan, India is the fastest digitizing country in the world after Indonesia, and it has been a part of world poverty reduction champion since 2019. All these improvements ensure that in the next ten years about 500 million Indian households climb the socio-economic ladder and end up in middle and higher income groups. Further, it also ensures that these Indians use their mobile phones to spend, largely online.
India will surpass the US and Europe by 2050 and have the largest consumer market in the world. So if you take the future of your company seriously, it is good to explore India. Better today than tomorrow, because building relationships is crucial in India and it takes a while, of course.
The country’s large multinationals have known this for a long time. Philips, Unilever, Heineken, TomTom, Elsevier, DSM, AkzoNobel and Shell: they have all been there for years. And not just to outsource their IT. Philips has a beautiful innovation campus. Heineken is one of the largest beer sellers in the country. Ahold gets its grapes there and Tomtom has developed a separate navigation system especially for the Indian market.
In India there are opportunities for every sector
There are opportunities for SMEs in almost every sector. For example, water, energy, mobility and waste companies can make an important contribution in India. They can explore opportunities in the construction of the hundred smart, sustainable cities that are currently being planned. Furthermore, agriculture and food companies can also have a role to play in India. With 40% of all fruit and vegetables rotting away before it enters the Indian market, there are enormous opportunities for greenhouse builders, logistics players and cold storage suppliers.
The creative sector is also growing at a rapid pace. Endemol has grown into the largest TV producer in India in 10 years. Additionally, the Amsterdam Dance Event has been organizing a special ADE Global session in Mumbai since 2016. Further, the Dutch clothing brand Scotch & Soda has been in India for three years now. They are on their way to soon open their eighth physical store in India. In addition, they will venture into the fast-growing Indian e-commerce market with their local partner. Also, big American giants such as Amazon, Walmart and Apple will massively focus on (online) sales in India in 2020.
The question is not whether, but when your company will also take the first steps on the Indian market. Are you curious how exactly your company can benefit? We can help you understand the Indian market and draw up a plan together with you!