The Indian market has been following a positive growth trend for years and, despite the country's difficulties during the Covid period, the prospects for development in the medium term remain optimistic. The numbers show a strong trend: India is experiencing a period of expansion and Made in Italy products are already the most popular. Italian companies can therefore take advantage of the opportunity to enter the country and give a new boost to turnovers and profits.
In the current economic climate, characterized by the aftermath of the Russian-Ukrainian conflict and rising prices on raw materials, India has emerged as an ideal market to make up for the difficulties that persist in the domestic market. In fact, the country is currently the world's fifth largest economy, based on GDP in current-price dollars. In addition, growth of more than 6% per year is projected for 2023. This figure will also be confirmed in the forecast for 2024. Numbers that place the Subcontinent at the center of Asia's market logic, now that China has lower economic growth prospects to what was expected until a few years ago.
The growing middle class thus enjoys greater spending power than in the past, fostering interest in international brands. Not only that: India is also a country that is experiencing 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 is the 4th largest exporter to India, preceded by Germany, Belgium and France. On the strength of this figure, Italian exports to India have actually touched the record figure of 4.8 billion euros, thus surpassing the pre covid values of 2019 (3.9 billion euros). Moreover, the figure is part of a context of continued growth, as already in 2021 Made-in-Italy exports to India had recovered pre-covid levels (3.87 billion euros).
But what is the focus of Italian exports to India? As the chart below shows, India's imports from Italy mainly go to feed the country's industrial apparatus.
In detail, the most representative sector is the 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). Closing the Top-5 are computers and electronic equipment, products of waste treatment and remediation activities, and, finally, electrical appliances.
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 Italy-India cooperation can offer both countries.
This is the opinion of Vishnu Krishna, Director of Octagona India: “Anything produced or designed in Italy usually has a positive impression on the Indian people. This is the best time in years that Italian companies can take advantage of to enter or expand in the Indian market. Given the uncertainty that exists in global markets today due to a number of factors, India emerges as a major large market, With GDP growing by 6% annually, a huge domestic market, tax incentives for starting local manufacturing businesses (Make in India), a young, English-speaking working class. There are not many such examples in the world today.”.
Vishnu Krishna's comment highlights the fact that investing abroad and making business deals in a high-growth country like India can prove to be Fundamental to the growth of its business and turnovers. Now is the time to ride the wave of economic growth, push on the accelerator and immediately plan winning strategies that take all this into consideration.
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.
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