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LIMBA Doing business with India -Pradeep Gupta
June 15, 2012 @ 12:00 am EDT
Our speaker this morning, Pradeep Gupta, gave us an overview of the nature intricacies of doing business in India. Mr. Gupta is an accountant by profession but has built an expertise in American / Indian Trade.
India has been on an unprecdentent growth pattern, as have the other BRIC (Brazil, Russia, India, China) countries. Each of these countries have various strengths and weaknesses. Mr. Gupta’s objectives included showing us the areas that are open to partnerships. India is the 4th largest economy in the world, of the $450 billion in imports 5.7% come from the United States. The implication here is that, that number could be considerably higher. On the other hand 12.6% of India’s exports are destined to the USA.
India is an attractive place to invest for several reasons. India has numerous dialects, but English is almost universal (less so in the rural areas). American brands are respected because we are considered innovators and that desirable trait is valued. The MADE IN AMERICA is a big plus. In the minds of the Indians, American made implies quality. Intellectual property is generally respected. Architectural and engineering are among the desirable services that are used by the Indians.
Here are the key sectors in the Indian economy;
- Automotive- American brands are being built in country- they are also creating replacement parts.
- Clean Technology- That would include wind and solar technology as well as alternate fuels among others.
- Defense- This sector is protected and there may be limited opportunity
- Financial Services
- Media and Entertainment- Including a big movie industry “Bollywood”
- Retail & Services
- Transport and Infrastructure – This sector includes India’s extensive rail system, probably the world’s largest system.
Americans should pay attention to the fact that the population is growing wealthier, and as wealth grows this large populace (1.2 billion people) will demand more and more consumer goods as this youthful nation develops. We could benefit from that upward shift.
Navigating- Local relationships and cultural knowledge is essential
- Find local partners
- Attend Trade Fairs or Road Shows
- Set up Liaison Office or Branch Office
As resource information Mr. Gupta offered the following;
- USA / India Chamber of Commerce http://www.usaindiachamber.org
- US Embassy in India. US Commercial Service, Minister Counselor for Commercial Affairs
- Indian Consulate Office, NYC http://www.indiacgny.org
- Federation of Indian Chambers of Commerce & Industry (FICCI) http://www.ficci.com
- Export Import Bank of the United States http://www.exim.gov and http://export.gov/india
- Story of India documentary www.pbs.org/thestoryofindia
We are pleased to present this interesting topic and will create more programs in this vein in the future