Who Wants to Invest in India’s Growth?
November 17th 2006 17:00
If you, my reader, are a businessperson, would you do business in India today?
The news today, 17 November 2006, is that “the penny has dropped on doing business with India.” This was said by Mr Moignard, Austrade’s senior trade commissioner for South Asia, who added that India “has captured people’s imagination.”
Mr Moignard was speaking at an Indian trade seminar in Melbourne in the presence of Prime Minister John Howard and 150 guests.
Mr Moignard indicated that Australian exports to India grew by “more than 25 per cent.” He added that “India’s middle class is more than 240 million people—and they have sophisticated demands and purchasing power.”
Australian exports to India totalled $7.3 billion, and Mr Moignard said “this would grow because India’s economy was expanding at 8 per cent a year.”
Mr Moignard said it was much easier to start a business in India and mentioned construction companies could operate a 100 per cent-owned local subsidiary and, in retail, foreign companies could have 51 per cent of a single product store.
Mr Moignard said also retail and infrastructure were big growth areas. More than 200 shopping malls were planned to be built in the next 18 months, while $265 billion were planned to be spent within the next five years in airports, roads, mining, oil and gas, power and telecommunications.
Other areas of growth with Australian interest are aviation, education, food and beverage, services and travel and tourism.
This news was published in the online version of The Age, www.theage.com.au, under the title “Rich pickings in middle-class market of 240 million” and was written by Philip Hopkins. Click here to open this page: http://www.theage.com.au/news/business/rich-pickings-in-middleclass-market-of-240-million/2006/11/16/1163266712742.html.
There is nothing for business like an emerging economy.
What made the US great was its youth. In its beginnings, all areas of economic activity were growing and companies, originally, didn’t have to pay taxes.
Now-a-days we have India. India is a vast continent. It speaks English, which is good for Australia; it has a stable political system; it has a vast population base and an educated, up-and-coming middle class of, as mentioned above, 240 million people—and all have to eat, dress, travel, work, holyday, communicate, save, invest, etc.
To realise just how amazing India looks as a country to invest in consider the above list of areas of economic activity where growth and spending is projected to be made and I think you will agree that, like ducks migrate North in winter, so businessmen should migrate to India now.
The reason is that when a market is young there are only a few players, margins are large and fast expansion is doable. In these circumstances, business can grow to a size that will secure their future permanency.
There is an advantage in picturing an opportunity in time and moving soon.
End
The news today, 17 November 2006, is that “the penny has dropped on doing business with India.” This was said by Mr Moignard, Austrade’s senior trade commissioner for South Asia, who added that India “has captured people’s imagination.”
Mr Moignard was speaking at an Indian trade seminar in Melbourne in the presence of Prime Minister John Howard and 150 guests.
Mr Moignard indicated that Australian exports to India grew by “more than 25 per cent.” He added that “India’s middle class is more than 240 million people—and they have sophisticated demands and purchasing power.”
Australian exports to India totalled $7.3 billion, and Mr Moignard said “this would grow because India’s economy was expanding at 8 per cent a year.”
Mr Moignard said it was much easier to start a business in India and mentioned construction companies could operate a 100 per cent-owned local subsidiary and, in retail, foreign companies could have 51 per cent of a single product store.
Mr Moignard said also retail and infrastructure were big growth areas. More than 200 shopping malls were planned to be built in the next 18 months, while $265 billion were planned to be spent within the next five years in airports, roads, mining, oil and gas, power and telecommunications.
Other areas of growth with Australian interest are aviation, education, food and beverage, services and travel and tourism.
This news was published in the online version of The Age, www.theage.com.au, under the title “Rich pickings in middle-class market of 240 million” and was written by Philip Hopkins. Click here to open this page: http://www.theage.com.au/news/business/rich-pickings-in-middleclass-market-of-240-million/2006/11/16/1163266712742.html.
There is nothing for business like an emerging economy.
What made the US great was its youth. In its beginnings, all areas of economic activity were growing and companies, originally, didn’t have to pay taxes.
Now-a-days we have India. India is a vast continent. It speaks English, which is good for Australia; it has a stable political system; it has a vast population base and an educated, up-and-coming middle class of, as mentioned above, 240 million people—and all have to eat, dress, travel, work, holyday, communicate, save, invest, etc.
To realise just how amazing India looks as a country to invest in consider the above list of areas of economic activity where growth and spending is projected to be made and I think you will agree that, like ducks migrate North in winter, so businessmen should migrate to India now.
The reason is that when a market is young there are only a few players, margins are large and fast expansion is doable. In these circumstances, business can grow to a size that will secure their future permanency.
There is an advantage in picturing an opportunity in time and moving soon.
End
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