With an impressive electoral process unprecedented in history, the largest democracy in the world has expressed itself by choosing Prime Minister Narendra Modi again as its leader. Although the renewal of the mandate had been widely announced by international analysts, the result was nonetheless surprising: with 67% of the votes and more than 300 seats in the Lokh Sabha (the lower house of the Indian Parliament, in which 272 are needed for an absolute majority ) Indian voters have placed greater trust in the outgoing Prime Minister and his party, the Bharatiya Janata Party (BJP) than they did 5 years ago.
The reason for such a clear victory (the main opponent, the Indian National Congress, stopped at only 55 seats) is to be found in the ability of the Modi government to fuel a extraordinary economic growth with a mix of public investments and reforms aimed at making the country more business-friendly: thanks to a strong leadership, during his first term Modi managed to implement important reforms (such as demonetization and the single VAT tax on the whole federal territory), previously considered at least unthinkable for a bureaucratic mastodon such as India . The results were not long in coming: since 2014, the year of the election of the first Modi government, the growth of the Indian economy has not stopped accelerating (The average growth rate settled around +7%) and India today is the one in the throes of the fastest expansion of the major economies in the world. The future also promises to be particularly positive: if 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 re-election was greeted with particular favor by national and international investors: not surprisingly, the day after the poll, the Senex Index of Mumbai stock exchange set its own historical record. In fact, economic operators see in the stability of New Delhi a excellent growth driver for the country, precisely because it is able to guarantee the necessary continuity in the path of reforms and of many programs still in the implementation phase: Make in India, manifesto of the economic development model signed by Modi, and infrastructure investments in Smart Cities and in Mega Food Park are the most shining examples of it.
India will therefore face one crucial season of massive investments, both public and private, which will consequently result in huge business opportunities for foreign companies. What can Italy do faced with this scenario?
Our companies are able to offer products, services, know-how and technology that the local market is desperately looking for: if we consider the similarities between the industrial fabrics of the two countries, the great appeal exerted by the made in Italy locally 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 conquer they loom within various sectors: from food processing to furniture, from infrastructure to renewable energies, from mechanics to retail, up to e-commerce.
Companies that want to approach India, also by virtue of the profound changes the country is undergoing, must be aware of how it is a market Surely with enormous possibilities but also complex and not easy to understand, for which a strategic approach and a deep knowledge of internal commercial dynamics.
If you are interested in Indian market, contact us at the address: [email protected] or at the telephone number 059.9770184: Octagona, thanks to 17 years of experience in the market and the presence of its own 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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