Country Focus - India
India is the most populous democracy in the world with nearly 1.2 billion people. Its economy grew 9.4% in the first half of year 2010 and is forecasted to grow 9.7% for the year by IMF (Businessweek). On the one hand, India possesses young and growing workforce, rising income levels and a domestic driven economy that are attracting global investors, on the other hand, issues like rising inflation and poor infrastructure continue to hold back the economy.
Workforce: India has one of the highest numbers of working people in the world. In year 2010, India’s labor force counted to 478 million people second to China which has around 820 million. Young and growing ...view middle of the document...
8 days on major Indian ports compared to 10 hours at Hong Kong
Demographics: India has around 1.2 billion people 64% of which is between 15 and 64 years of age (CIA , 2010). Its population growth rate is around 1.4% with 2.4% people being urbanized every year. Life expectancy of 66 years is among the lowest in the world. The latest available data suggests India’s literacy rate stood at 61% in year 2001 with male literacy rate being higher that female literacy rate. Every year, India spends 3.2% of its GDP on education
Communications & Transportation: As a result of the latest telecom boom, around 670 million people own a cell phone (next to China with 750 million). India has one of the most penetrative Road and Railway infrastructure connecting different parts of the country. The total number of airports stood at 352 in year 2010 and India major sea ports include Chennai, Jawaharal Nehru, Kandla, Kolkata (Calcutta), Mumbai (Bombay), Sikka and Vishakhapatnam (CIA , 2010).
Overall, India has a domestic driven economy, its exports account for just 20% of its GDP compared to China which has exports GDP contribution of 40%. Indian economy is mainly driven by high internal consumer spending which accounts for 60% of its GDP and this fact that the country is less connected to foreign countries makes it even more lucrative during the times of recession.
Exports and Imports
India has Trade Agreements with quite a few countries. India currently has Free Trade Agreements with Sri Lanka and Thailand. The plan is to have FTAs with Brunei, Indonesia and Malaysia by end of 2011, Philippines, Cambodia, Laos, Myanmar, and Vietnam by the end of 2016. Talks are ongoing for setting up FTA with China and Singapore. Other agreements India has includes a trade treaty with Nepal, Singapore (Comprehensive Economic Cooperation Agreement (CECA)), Framework agreements with GCC states, The Association of South East Asian Nations (ASEAN)and with Chile, South Asia Free Trade Agreement (SAFTA) with Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives and Preferential Trade Agreement (PTA) with Afghanistan, Chile and MERCOSUR, a trading bloc in Latin America comprising of Brazil, Argentina, Uruguay and Paraguay.
Appendix 2 shows yearly value of Indian exports and imports
As shown in Appendix 3, India’s main exports include engineering goods, jewellery, petroleum products, textiles and chemical products. India imports petroleum products, gold, electronic goods etc.
India’s main trading partners include China, USA, UAE, Saudi Arabia, Germany, and Netherlands as shown in Appendix 4.
Appendix 5 shows the major sea ports in India.
Unique marketing practices:
There is no one right way of marketing in India. But, a check list to be followed to ensure companies does not fail.
1) Made for India
"Made for India" is increasingly becoming a coveted tag these days. This is a far cry from the early days of liberalization when many companies...