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The big bazaar

Monday, 30 October 2006

With a booming economy and trade links with Britain stretching back hundreds of years, India is a market full of opportunities for exporters.

India is the seventh-largest country in the world, covering over three million square kilometres at the southern peninsula of the Asian continent. It is one of the most diverse places on Earth, from the frozen Himalayas to the Thar desert, with such famous sites as the sacred river Ganges and the magnificent Taj Mahal. However, despite its high profile, India is not always top of the list for business travellers.
So why trade in India? Well, for a start, it has one of the fastest-growing economies in the world – second only to China. In addition, the UK has strong ties with India; English is widely spoken and British companies are ideally placed to take advantage of the growing export and investment market.
India is currently the world’s tenth largest economy but, if current trends continue, analysts predict it will be third in the rankings sometime during the 2020s. Surprisingly, though, only one per cent of the UK’s total exports currently go there, making it only 18th in our league table of export destinations.
Part of the reason for this underperformance lies in the widely-held perception that India is primarily a place to outsource business operations and manufacturing. However, although there are still significant areas of deprivation, the Indian market is fuelled by the increasing disposable income of its 200 million-strong middle class. It’s also poised to become the second-largest domestic market in the world – last year, the UK’s exports to India increased from just over £3bn to £3.9bn.
There is also plenty of scope for this to continue as the country continues its free market reforms – trade barriers are constantly being swept away and the peak tariff is down from 350 per cent in 1991 to just 20 per cent in 2005. Privatisation programmes are also reducing the still-significant role of the public sector in the country. For entrepreneurial companies looking to tap into this market, help is at hand. A dedicated South Asia Business Unit has recently been set up to provide a centre of expertise for India and South Asia.
The unit, spearheaded by Business Link Cheshire and Warrington CEO Sandra Brusby, brings together the international experience of a team of UK Trade and Investment staff and various private sector partners. The unit helps North West businesses by raising awareness of opportunities in India, and offering focussed support and guidance, and it is already generating results.
For instance, on a visit to Warrington, Raji Nanyanan from the British High Commission, came with requests from Indian companies to work with UK partners. One such request was for scrap metal suppliers. The South Asia Business Unit, with its local knowledge, was able to identify a North West company, European Metal Recycling, which has since gained a significant contract with an Indian partner.
Of course, there can be difficulties and companies looking to trade with India need to consider how they’ll approach the market. The South Asia Business Unit can help to devise an entry strategy and provide continuing support in the form of market reports, subsidised visits, help from embassies and introductions to potential customers.
The unit is based in the International Business Centre, Delta Crescent, Warrington and can be contacted on 0845 345 4025.