A common perspective views India as a highly populous and therefore poor country. But the fact is that the Indian economy is a highly dynamic one and the opportunities are immense. Countries and businessmen who have identified this potential have already begun venturing into the Indian business scenario.
India on a growth path
India has emerged as one of the fastest growing countries in the world in terms of economic status. One of the reasons of its fast rise is its growing middle class which is estimated to reach 475 million in number by 2027.
According to the International Monetary Fund (IMF), the Indian economy in 2015 was worth roughly US$2.090 trillion which made it the 7th largest economy by market exchange rates and the third largest by purchasing power parity at US$8.027 trillion.
This growth has made India shine in the international market and attracted the attention of numerous other countries towards favourable business opportunities.
Consumer opportunities in India
Here are the specific opportunities under the top consumer genres in India:
Food products and services
Due to the rising income of the middle class in India, many companies see demand growth in different imported food products and food services here. Studies show that restaurants will be at the top of their run considering the consumer market in India.
Electronics and E-commerce
There is good news for all domestic and international network providers and manufacturers of electronic products. By 2017, there will be an estimated growth of 500 million internet users out of a total population of 1.25 billion in India. It is also estimated that the demand for smartphones will grow four times between 2014 and 2019 to reach 651 million buyers.
General merchandise and apparel
Demands for apparel, cosmetic and hygiene products, as well as general merchandise such as furniture and toys are expected to increase. The evidence for this growth is the successful entry of popular international apparel brands such as Zara, Mango, Charles and Keith, and many more.
However, there might be some challenges in the consumer products and services sector such as lack of familiarity with domestic consumer preferences, lack of clarity on approval process, and fragmented and unreliable distribution network.
India’s diverse consumer base
Countries open to exporting their products to India should take into consideration what the needs of majority of their consumer base are. Insights and ideas through observation to increase familiarity and awareness about targeted consumer preferences is recommended. Other ways to facilitate product or service introduction into a new market is by drawing reference from existing approvals of similar products or services as a basis for preparing submissions; and tapping into readily available distribution channels.
There are specific locational specialities in India that you need to consider if you are planning to launch a business there. Cities like Amaravati and Visakhapatnam have a strong inclination to develop economically. These prime cities possess large agricultural reserves which are good for food processing. Delhi and Gurgaon have a large presence of the growing middle class and are ideal markets for consumer goods. Mumbai and Pune have a developed industrial base with the presence of industrial clusters including automotive, food and pharmaceuticals companies.
India is indeed a country of opportunities and one that’s on the global business radar. However, it is always advisable to conduct some market research to be more aware of the business culture, market conditions and of course Indian customs that play an important role in most Indian business communities.