With a massive electoral process unprecedented in history, the world's largest democracy has spoken out by again choosing Prime Minister Narendra Modi to lead it. Although the mandate renewal had been widely predicted by international analysts, the result was nonetheless surprising: with 67% of the vote and more than 300 seats in the Lokh Sabha (the lower house of the Indian Parliament, where 272 are needed for an absolute majority) Indian voters placed more trust in the outgoing prime minister and his party, the Bharatiya Janata Party (BJP), than they did five years ago.
The reason for such a clear-cut victory (the main opponent, the Indian National Congress, stopped at only 55 seats) is to be found in the Modi government's ability to nurture a extraordinary economic growth with a mix of public investment e reforms aimed at making the country more business friendly: thanks to strong leadership, during his first term Modi was able to implement major reforms (such as demonetization and a single federal-wide VAT tax) previously thought unthinkable, to say the least, for a bureaucratic mastodon such as India. The results were not long in coming: since 2014, when the first Modi government was elected, the growth of the Indian economy has not stopped accelerating (the average growth rate stood at around the +7%) and India today is, among the world's major economies, the one grappling with the most rapid expansion. The future also looks particularly positive: While in 2018 the Subcontinent occupied seventh place in the world ranking in relation to GDP (just ahead of Italy), by 2030 it is expected to reach third position, with growth rates well above 7 percentage points.
Narendra Modi's reelection was particularly welcomed by domestic and international investors: Not surprisingly, in the aftermath of the poll, the Senex Index of the Mumbai stock exchange hit its own all-time high. Indeed, economic operators see the stability of New Delhi a excellent growth driver for the country, precisely because it can provide the necessary continuity in the path of reforms and many programs still being implemented: Make in India, a manifesto of Modi's signature economic development model, and infrastructure investments in the Smart Cities and in the Mega Food Park represent its most shining examples.
India will therefore go through a crucial season of massive investment, both public and private, which will consequently result in. huge business opportunities For foreign companies. What Italy can do In the face of this scenario?
Our companies are able to offer products, services, know-how and technology that the local market is desperately looking for: When considering the similarities between the industrial fabrics of the two countries, the Great appeal exerted by the made in Italy in place and the strong appreciation of Indian entrepreneurs towards the flexibility and adaptability of our SMEs, it follows that, by virtue of all these reasons, we cannot afford to consider India a market of secondary importance. The spaces to be conquered loom within various sectors: from food processing to furniture, infrastructure to renewable energy, mechanical engineering to retail, and e-commerce.
Companies that want to approach India, due in part to the profound changes the country is undergoing, need to have an understanding of how it is a market definitely From enormous possibilities but also complex and not easy to understand, for which a strategic approach And a deep understanding of internal business dynamics.
If you are interested in the Indian market, contact us at the address: octagona@octagona.com or at the phone number 059.9770184: Octagona, thanks to 17 years of experience in the market and the presence of its direct offices in India (New Delhi, Pune and Bangalore) Is able to build the most suitable internationalization project for your company.
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