Exporting to India represents a significant opportunity for Italian companies due to their large population and rapidly expanding domestic markets.
In fact, India not only offers export and investment attractions, but is also a strategic hub for re-export to neighboring countries. Since 2014, under the leadership of Prime Minister Narendra Modi, recently re-elected, the Indian government has initiated reforms aimed at making the country self-sufficient and increasing foreign investment.
Key programs such as “Make in India” are at the heart of this long-term vision, aiming to transform the nation into a global hub for manufacturing, thereby strengthening the industrial sector and improving national competitiveness.
What specific opportunities are opening up for exports to the nation, especially in the construction sector, where the building envelope sector has recorded a overall growth of 28.33% In the last five years?
The “Make in India” program is the centerpiece of India's economic development focused on intensive manufacturing. The goal is to reduce the economy's historical dependence on services by enhancing the manufacturing sector with the goal of increasing it annually by 10%. In parallel, the program aims to increase the number of factories and attract more foreign investment, especially in the infrastructure sector, to modernize facilities and support long-term economic growth.
The Indian government is also simplifying bureaucracy to make the country more attractive to foreign investment, with the introduction of deregulation measures aimed at facilitating the entry of foreign capital.
Let us now explore what other positive aspects are crucial for Italian exports and need to be considered in the internationalization strategies toward this country, with a special focus on the construction sector.
In contrast to Western economies plagued by high interest rates and rising energy costs, India is experiencing a remarkable boom in the real estate sector. In the July-September quarter of 2023, the construction sector recorded a growth of 13.3% compared with the same period of the previous year and 7.9% compared with the previous quarter, contributing positively to national GDP. In particular, new residential projects marked an increase of 24%. Early estimates for the full year 2023 indicate real growth of 9.6% compared to 2022.
This long-awaited boom, which created millions of new jobs, came after about six years of economic hardship caused by the pandemic. It was driven by rising per capita income, severe housing shortages in major cities, and population growth.
Growth in the real estate sector is projected to continue for the next three to four years, thus providing excellent export opportunities for the construction industry. Indeed, the government is stepping up efforts to increase the supply of affordable housing through incentives, further encouraging housing development in Indian cities.
In the context of Make in India, the’Access India Initiative is a strategic program aimed at facilitating companies interested in exporting to and investing in India. This program provides a structured platform to support companies in navigating the complexities of the Indian market, offering assistance in various areas, from business operations to legal and regulatory issues. The main objective is to promote sustainable economic growth and create business opportunities that can strengthen bilateral economic relations.
Specific benefits of the Access India Initiative, which can also positively impact the construction sector, include:

L’India, to encourage foreign investment and stimulate economic growth, has implemented a series of tax incentives and benefits aimed at making the country an attractive business destination. These incentives include. tax breaks, subsidies and benefits specific to various sectors and regions. Below is an overview of some of the main benefits available to companies that intend to export to India.
Octagona provides valuable support to companies looking to expand their business in India, offering a internationalization consulting for enterprises specialized and targeted. To explore all opportunities, including in the construction sector, we invite you to contact us.
The Indian construction market is growing strongly: in the July-September 2023 quarter, the sector grew by 13.3% compared to the previous year and by 7.9% compared to the previous quarter. New residential projects increased by 24%, and projections indicate continued growth for another three or four years, amid a severe housing shortage.
Make in India is the government program, launched under Prime Minister Narendra Modi, which aims to transform India into a global hub for manufacturing. It aims to grow the manufacturing sector by 10% annually, increase factories, and attract foreign investment, especially in infrastructure, with a simplified bureaucracy and deregulation measures.
The Access India Initiative is a strategic program, part of Make in India, that supports companies interested in exporting and investing in India. It offers personalized support to understand the market, expert advice on legal, fiscal, and operational aspects, and facilitates the identification of local partners for joint ventures and other business collaborations.
Businesses located in the Indian Special Economic Zones (SEZs) enjoy a total exemption from income tax for the first five years, followed by a partial deduction for the subsequent five years. These areas were created to incentivize industrial and commercial development and attract foreign investment.
Anyone who starts a startup in India can obtain tax exemption on profits for three consecutive years in the first seven years of operation. Startups also have facilitated access to venture capital funds and mentoring programs. Some states add regional incentives, such as property tax exemption, infrastructure grants, and energy subsidies.
The growth of the Indian real estate sector has been driven by rising per capita income, a severe housing shortage in major cities, and demographic growth. The boom, which has created millions of jobs, comes after about six years of difficulties related to the pandemic, and is supported by government incentives for affordable housing.
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