| India – the giant of Asia with a potential second only to that of China - is now awaking and no other democratic market economy anywhere in the world is currently expanding as fast. “India is riding on a wave of steady growth”,
according to Finance Minister Chidambaram, who believes the boom is sustainable in the long term, adding that the Indian economy was set to grow “at a rate of more than seven percent a year for at least a decade”. Also German investors are viewing the country with increasing interest. The number of firms newly investing there or expanding their market presence is quite clearly growing. One reason: once the inevitable obstacles of market entry have been negotiated successfully, commercial profits in India often exceed those achievable in other emerging markets.
India is an interesting and diverse market
India has now become a global competitor in many sectors which are important for German industry. Companies such as Siemens, Bosch and SAP are now using India as a base for research and development activities – not just when it comes to software and engineering services, for which the country has now gained a very good reputation. India has also established itself as an exporter of manufactured products, especially in the sector of quality goods. It is here that firms can make the most of the country’s biggest benefits: the availability of a large number of highly-qualified, English-speaking workers at unrivalled wage levels. India’s widely diversified and vital private sector is driven by a dynamic business culture. Innovative power, efficient capital investment, increasing productivity growth and soaring quality levels are leading to a growing global attention on a variety of industry sectors, ranging from pharmaceuticals and fine chemicals to automotive.
Good preparation is needed to enter into the Indian market
In spite of all the opportunities, there are many risks lying in store for those companies who fail to do proper groundwork and who ignore professional consultation and solid sources of information. In such cases bureaucratic obstacles and poor infrastructure conditions will block the road to success. No other country in the world needs infrastructure investment as much as India. Yet this also opens up opportunities for investors, for the Indian Government has estimated that some 150 billion dollars in foreign capital will be required for infrastructure development over the course of the next ten years.
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