Many Australian businesses are now looking towards exporting to India. If you are interested in exporting to this emerging economic powerhouse and join other Australian companies seeking to explore opportunities in this market, please contact Camil G. View SP Joshi, Country manager’s presentation here.
3. • 1.29 billion: Second largest population in world
• World’s youngest population – 59% people in 15-54 age bracket
• Largest democracy in the world
• World’s second largest workforce
• Largest biometric database in the world: over 950 million
Demographics
4. Economy
• GDP (2015): AUD 2.7 Trillion
• GDP: Average growth rate last decade over 7%,
expected to achieve 7.8% in 2016-17, highest growth
among BRICS and developing economies
• Services sector contributes 65% to GDP followed by
manufacturing (18%) and agriculture (17%)
5. Socio-economic Profile
• Foreign exchange reserves over US$ 354 billion
• Over 11,000 companies listed on Indian stock exchanges
• Market capitalisation (2016): AUD 2.01 Trillion
• World’s second largest workforce
• World’s second largest users of Mobiles: more than one billion
(April 2016)
• Internet users: more than 402 million (December 2015)
• Number of online shoppers estimated at 40 million
• Largest biometric database in the world: over 750 million,
targeted to cross one billion within a year
6. Geo-political
profile
World’s largest democracy
Structured as Sovereign
Democratic Republic
Stable political regime
Consumption and investment
driven economy
Sixth largest country by area
World’s second largest
acreage of arable land
7. India’s growth drivers
• Demographic dividend
• Job creation
• High savings rate
• Pro-reforms Federal Government
• Focus on ease of doing business
• Reviving investment climate
• Fiscal consolidation
8. Future Economic Trends
• By Year 2030
• India forecasted to be world’s 3rd largest economy
• 600 million people expected to live in cities
• 586 million Indians expected to be in middle and upper middle
income segment
• By Year2050
• India poised to become second largest economy, ahead of US
(PWC)
11. Infrastructure
• Total planned investment on infrastructure
(includes power, bridges, dams, roads and
urban infrastructure development) during 12th
five year plan is A$ 1.3 trillion
• Indian Government plans to invest A$ 490
billion in infrastructure over a period of three
years, which will include A$ 157 billion for
developing 27 industrial clusters and an
additional A$ 98 billion for road, railway and
port connectivity projects
• Indian construction equipment industry
expected to grow to A$ 6.5 billion by FY2019-20
from current size of A$ 3.6 billion, according to
Indian Construction Equipment Manufacturers’
Association
12. Infrastructure
Opportunities
• Roads: projects worth A$ 78 billion
• Ports: planned investment of A$ 38 billion
• Railways: 2 dedicated freight corridors, 3300 km of rail line,
safety, metro development for 7 cities
• Airports: modernisation of non-metro airports, 7 green
field airports
• Electricity: new power plants, projects worth A$ 295 billion
• Green building products & services
13. Smart Cities
(www.smartcities.gov.in)
• Smart city projects aim at developing the entire urban eco-
system, represented by comprehensive development-
institutional, physical, social and economic infrastructure
• GOI initiative to set up 100 smart cities identified across
India in stage-1
• Allocated a budget of A$ 21billion
• 120 cities to receive funding in stage-2: A$ 23.5 million per
city per year. State Government will contribute an equal
amount
14. Smart Cities: Opportunities
• As per NASSCOM: opportunities
to the tune of A$ 40-50 billion
over the next 10 years
• Focus Areas:
• E-governance & citizen
services
• Waste management
• Water management
• Energy management
• Urban mobility
• Others: master planning,
telemedicine, etc.
15. Mining
• India’s mineral production valued at over A$ 50 billion
in year 2013-2014
• India is world’s 3rd largest coal producer
• Significant producer of iron ore, lignite, copper,
manganese & chromite
• Concentrated amongst a few public sector companies
• Private sector becoming active & making significant
investments
16. Mining Sector - opportunities
• Mining IT & mine management systems
• Geo-mining consultancy
• Underground mining equipment & technologies
• Mineral beneficiation systems
• Safety systems & equipment
• Environmental protection technology & equipment
• Training
17. Food Processing
• Wide array of products, coupled with increasing global
connectivity, has led to a change in the tastes and preference
of domestic consumers
• This trend has been bolstered by rising incomes, increasing
urbanisation, a young population, and the emergence of
nuclear families. Consumer preference is moving towards
healthier snacks
• Liberalisation and growth of organised retail have made the
Indian market more attractive for global players
• With a large agriculture sector, abundant livestock, and cost
competitiveness, India is fast emerging as a sourcing hub of
processed food. Danone, Nestle, Kraft Foods, Mondelez
International, Heinz are the international players in food
processing market in India
18. Food Sector Opportunities
• Fast growing segments
• Packaged Food
• Aerated Soft Drinks
• Packaged Drinking Water
• Alcoholic Beverages
• In 2015, Zespri International New Zealand based company
tied up with Mumbai Tiffinmen to sell new variants of fruits
in India
• Many global and Indian companies are getting into joint
ventures to make global products available in India. Starbucks
and TATA Alliance is one of the largest joint ventures
• Bharti Enterprises and Delmonte Pacific Ltd is the largest
fresh baby corn exporter in India
19. eCommerce in India
• eCommerce industry is fast rising and
changing fast
• The sector in India has grown by 36% (CAGR)
since 2009 to touch A$ 27.7 billion in 2014
• Currently, eTravel comprises 70% of the total
eCommerce market
• eTailing, (online retail and online
marketplaces) is the fastest-growing segment
(CAGR of around 56% over 2009-2014)
• The size of the eTail market is pegged at 7.8
billion AUD in 2015
• Books, apparel and accessories and
electronics are the largest selling products
through eTailing, constituting around 80% of
product distribution
9.1
12.3
16.4
21.3
27.7
1.3 1.9
4 4.5
7.8
0
5
10
15
20
25
30
eCommerce
(Including
eTail) AUD
Billion
eTail (AUD
Billion)
20. eCommerce - Growth Drivers
• Fast growing internet population
• Increasing use of in internet-
enabled devices smartphones,
tablets and internet broadband
and 4G has led to developing a
strong consumer base, likely to
increase further
• Changing lifestyle of the Indian
consumer seeking convenience,
comfort and variety
• Peer pressure, rising aspirations
with career growth, fashion and
trends encourage this segment to
shop more than any other category
• Fast growth of internet users in
rural areas
721
462
287
120 115 102
52
35
88
60
90
71
0
100
200
300
400
500
600
700
800
China India USA Brazil Japan Russia
Internet Users in 2015
(Million)
%
21. eCommerce Prospects in India
• eCommerce market expected to grow @40% CAGR, likely to touch
A$ 177 billion in 2020
• eCommerce retail expected to grow @ 52% CAGR, poised to reach
A$ 47.7 billion in 2020
• Of the total organised retail market, online retail penetration is
likely to increase from 6 per cent in 2014 to 14 per cent by 2020
• Value wise, electronics is the largest segment in e-commerce retail
(47%) followed by apparel (31%), home & furnishing (8%), books
(7%), baby products and personal care (2% each)
• eCommerce retail high growth attributed to high growth in
internet devices, ease of shopping, innovative payment options,
deals & discounts and rapidly changing lifestyles
22. Packaging and labelling regulation
• All pre-packaged commodities imported into India must
carry the following declarations on the label:
• Name and address of the importer
• Generic or common name of the commodity packed
• Net quantity in terms of standard unit of weights and
measurement (India follows metric system)
• Manufacturing or packing date
• Maximum retail sales price (MRP) at which the commodity in
packaged form may be sold to the end consumer
• Standard labelling language is English
• Packaging and Labeling requirements for packaged food
products are separately specified (www.fssai.gov.in )
24. • Family like organizations, many older organizations are
philanthropic
• Preference for foreign partners, degree depends on country
• E-governance and mechanization has helped a great deal to
reduce corruption
• Bureaucracy more accountable and efficient
• Intellectual property – stricter laws now in place, getting better
• Attitudes towards quality – a drastic change
• Commitment to deadlines – improving
• Long term relationships are valued
• There is certain mindset about management hierarchy
• Indians have difficulty in saying no
Business environment
25. Government: Reforms and Initiatives
• GST: Bill Cleared by Parliament on 3rd August 2016, set to
roll out from April 2017
• Labour and insolvency & bankruptcy laws simplified
• Make in India (www.makeinindia.com ): facilitate investment,
foster innovation, protect intellectual property
• Skill India (www.skillindia.in ): aims to train over 400 million
people in India in different skills by 2022
• Smart Cities (www.smartcities.gov.in ): scheme to develop
100 cities as smart cities in next five years
• Digital India (www.digitalindia.gov.in ): initiative to make
Government services available to citizens electronically by
improving online infrastructure and by increasing Internet
connectivity
26. Ease of Doing Business -
Initiatives
• eBIZ (Online Single Window Platform) initiated to
facilitate one-stop access for investors to know more
about Investment opportunities (www.ebiz.gov.in )
• User-friendly features such as Payments through
netbanking, credit & debit cards, status tracking, SMS
alerts and Help-desk support enabled and information
on number of licenses/approvals required from
Government agencies
27. Ease of doing business - Initiatives
• Most approvals required to start business now
done online
• Online filing of annual income tax and other
statutory returns
• Applications for Industrial licensing and Industrial
Entrepreneur Memorandum can be made online
• Electricity connections and building approvals made
simpler
• Exports and import procedures simplified
28. Questions one needs to ask
1. Can I sustain my business without exporting to India
in next 10 years?
2. Can I grow my business without being in India in
next 10 years?
If the answer is NO,
it is time to engage India
29. How to engage
• Ascertain market size, growth trends, competitive situation
and entry barriers, to make a confident entry
• Important to check market credentials of potential partner/s
• While most Indians can communicate in English, body
language and mannerisms can be sometimes misleading
• Exchanging pleasantries before initiating a business
discussion is helpful to break the ice
• Indians like to develop personal relations in business
engagements, don’t get offended by personal questions
• On the ground professional support is necessary to meet
regulatory and cultural challenges
• Always consider long term prospective
30. Australian Business Consulting & Solutions
Assists Australian businesses into India
• Market assessment studies
• Distribution/JV Partner search
• Setting up company
• Sourcing/contract manufacturing
• On-going assistance/advice to do business in India
