The Indian market has been following a positive growth trend for years and despite the difficulties faced by the country during the Covid period, medium-term development prospects remain optimistic. The numbers show a strong trend: India is experiencing a period of expansion, and Made in Italy products are already the most appreciated. Italian companies can therefore seize the opportunity to enter the country and give new impetus to revenues and profits.
In the current economic climate, marked by the consequences of the Russian-Ukrainian conflict and rising raw material prices, India has proven to be an ideal market to address the persistent difficulties in the domestic market. In fact, The country is currently the fifth largest economy in the world., based on GDP in dollars at current prices. Furthermore, growth of over 6.1% annually is projected for 2023. This trend is also expected to hold true in the forecasts for 2024. These figures place the subcontinent at the center of Asia’s market dynamics, now that China has lower economic growth prospects to what was expected until a few years ago.
The ever-growing middle class therefore enjoys greater spending power than in the past, fostering interest in international brands. Not only that: India is also a country experiencing some really interesting digital development. By the end of 2023, Internet users are expected to reach 840 million people, a figure that has doubled from only four years ago (in 2017 it was 422 million people).
Among European players, Italy represents the 4th largest exporter to India, preceded by Germany, Belgium, and France. Bolstered by this data, Italian exports to India have effectively touched the record figure of 4.8 billion euros, thus exceeding the pre-COVID values of 2019 (3.9 billion euros). Furthermore, this figure is part of a context of continuous growth, as already in 2021, Made in Italy exports to India had recovered to pre-pandemic levels (3.87 billion euros).
But what does Italian exports to India focus on? As can be seen from the chart below, Indian imports from Italy primarily go to power the country's industrial apparatus.
In detail, the most representative sector is that of machinery and equipment (1.5 billion euros), followed by substances and chemicals (424 million euros), and in third place by the metal products (295 million euros). Rounding out the Top 5 are computers and electronic devices, products from waste treatment and remediation activities, and finally, electrical equipment.
In fact, "Made in Italy" has a very positive reputation among the Indian business community: many people in the country know the vast potential that Italian-Indian cooperation can offer both countries.
Is this the opinion of Vishnu Krishna, Director of Octagona India: “Everything produced or designed in Italy usually leaves a positive impression on the Indian population. This is the best moment in years for Italian companies to take advantage of. to enter or expand into the Indian market. Given the uncertainty that exists in global markets today due to a number of factors, India presents itself as one of the main large markets, With GDP growing by 6% annually, a huge domestic market, tax incentives for local production (Make in India), a young, English-speaking workforce. There aren't many examples like this in the world today.”.
Vishnu Krishna's comment highlights that investing abroad and entering into trade agreements in a high-growth country like India can prove to be Fundamental to the growth of its business and turnovers. The time has come to ride the wave of economic growth, step on the gas, and immediately plan winning strategies that take all of this into account.
Do you want to seize the right opportunities? The next successful company in India could be your own. Contact us and tell us about your internationalization project in India: We will study together the best solution for your needs.
ALSO READ:
India: business opportunities for Italian companies in 2023
The success of Italian companies in India
India bans single-use plastics: what changes for exporting companies
Are you interested in our service?
Fill out the form or contact us at
+39 059 9770184
Copyright © Octagona. All rights reserved. P.I. 02646871208
