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International Business in India

Worldwide Business in India looks extremely rewarding and each passing day, it is thinking of just more potential outcomes. The development in the universal business division in India is over 7% every year. There is degree for greater improvement if just the relations with the neighboring nations are settled. The stunning execution of the financial exchange in India has assembled even more consideration (in contrast with the other universal bourses). India unquestionably remains as an advantageous spot to investigate business potential outcomes, with its high-gifted labor and maturing working class section.

With the different social setup, it is fitting not to figure a uniform business technique in India. Diverse pieces of the nation are notable for its distinctive characteristics. The eastern piece of India is known as the 'Place of the intellectuals, while the southern part is known for its 'technology hub’. Then again, the western part is known as the 'business capital of the nation', with the northern part being the 'center of political power'. With such assorted varieties in all the four sections of the nation, worldwide business opportunity in India is without a doubt gigantic.

Sectors having potential for International business in India :

The Leather industry in India accounts for around 12.9% of the world’s leather production of hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather. The country accounts for 9% of the world’s footwear production. The industry is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country.

India has an abundance of raw materials with access to 20% of world’s cattle and buffalo and 11% of the world’s goat and sheep population.

The Leather industry is an employment intensive industry providing job to more than 4 mn people, mostly from the weaker sections of the society. Women employment is predominant in Leather products industry with about 30% share. The Leather industry in India has one of the youngest workforces with 55% of the workforce below 35 years of age.

The Leather industry has the tendency to generate 250 jobs for every $ 0.2 mn investment.

India remained the fastest growing domestic Aviation market in the world in 2017. India has 86 scheduled international airlines comprising of 5 Indian carriers and 81 foreign carriers, which ensure that India is well connected with most major countries. Revenue passenger kilometer (RPK) in domestic airline demand rose by 18.7% in 2017-18. Indian carriers reported a combined profit of $ 122 mn in 2015-16.

• India aims to become the third-largest aviation market globally by 2020

• Indian carriers plan to increase their fleet size to 800 aircraft by 2020

• Freight traffic on Indian airports is expected to cross 11.4 MT by 2032

• Government agencies projects requirement of around 250 brownfield and green-field airports by 2020

• India has been projected to be the second fastest growing country in the world for passenger traffic by the Airports Council International (ACI) in its traffic forecasts between 2017-40.

India is expected to be the world's third-largest automotive market in terms of volume by 2026.

The industry currently manufactures 25 mn vehicles, of which 3.5 mn are exported. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, second largest bus manufacturer and third largest heavy trucks manufacturer in the world.

The sector attracted $ 17.9 bn FDI (Foreign Direct Investment Policy of India) between April 2000 and September 2017; accounting for 5% of the total FDI inflows.

The Tourism and Hospitality industry is one of the largest service industries in India. Tourism is an integral pillar of the Make in India programme. Tourism plays a role of significant economic multiplier and becomes critical since India has to grow at rapid rates and create jobs.

India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in Tourists Arrivals and Employment.

India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF); UNWTO Tourism Barometer (2016) currently ranks India at #40 in terms of global tourist footfalls.

Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities. Five tourism mega economic zones were announced in the previous budget to attract global tourism players to India and also drive tourism sector's contribution to GDP.

• By 2028, Tourism & Hospitality is forecasted to earn $ 50.9 bn as visitor exports compared to $ 27.3 bn earned in 2017

• By 2028, direct contribution to employment is expected to grow to 5.3% of the total employment from the current contribution of 4.9% in 2017

• By 2030, India is expected to be among the top five business travel market

The Retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. The Retail market is set to cross the $ 1 tn mark by 2020 from $ 672 bn in 2017. India’s e-commerce market is also set to grow at a CAGR of 30% for gross merchandise value to be worth $ 200 bn by 2026.

India ranks among the best countries to invest in Retail space. Factors that make India so attractive include the second largest population in the world, a middle class of 600 mn people, increasing urbanization, rising household incomes, connected rural consumers and increasing consumer spending.

• India has overtaken China to grab the top spot in A.T. Kearney's 2017 Global Retail Development Index.

• Retail is India's largest industry, currently accounting for over 10% of the country's GDP and 8% of total employment.

• By 2030, India is expected to be among the top five business travel market

In 2017, India was ranked as the second most attractive Renewable energy market in the world.

The country has set an ambitious target of 175 GW of renewable power by 2022, which includes:

• 100 GW of Solar power

• 60 GW from Wind power

• 10 GW from Biomass power

• 5 GW from Small Hydro power

This is the world's largest expansion plan in renewable energy.

India is strategically located on the world’s shipping routes with a coastline of approximately 7,517 km. Maritime transport handles around 70% of India’s trading in value terms. The government has also introduced various fiscal and non-fiscal incentives for enterprises that develop, maintain and operate ports, inland waterways and shipbuilding in India.

The Government launched the ambitious SagarmalaProgramme in March 2017, with the vision of port-led development and growth of logistics-intensive industries. Under SagarmalaProgramme, $ 123 bn would be invested across 415 projects across the following identified components:

• Port Modernization and New Port Development

• Port Connectivity Enhancement

• Port-Linked Industrialization

• Coastal Community Development

The projects identified under SagarmalaProgramme are expected to have the following impact:

• Mobilization of over 61.6 bn of infrastructure investment

• Double the share of inland and coastal waterways in the modal mix

• Yield cost savings of $ 5.3-6.1 bn in logistics annually

• Boost merchandise exports by $ 110 bn

• Create 4 mn new direct jobs and 6 mn indirect jobs

India is the largest provider of generic medicines globally, occupying a 20% share in global supplies by volume. The country is home to 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The cost of production in India is around one-third of that in the US and almost half of that in Europe.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India's core strengths. The export of Pharmaceuticals stood at $ 16.3 bn in 2015-16.

• Pharma exports recorded CAGR of 11.9% for a decade ending 2015-16

• Third largest Pharmaceuticals market by 2020 in terms of incremental growth

India is the 3rd largest energy and oil consumer in the world after China and the US. Oil and gas occupied approximately 35% share in India’s energy consumption.

India is the fourth largest importer of liquefied natural gas (LNG) after Japan, South Korea, and China, accounting for 7.4% of the total global trade.

Import of crude oil during April-November 2017 stood at 144.7 MMT valued at approximately $ 51.1 bn, marking an increase of 9.31% in quantity terms and 15.3% in value terms compared to the same period of last year. While, imports of petroleum products during April-November 2017 were 23.76 MMT valued at approximately $ 7.9 bn, which shows a decrease of 4.91% in quantity terms but an increase of 21% in value terms compared to the corresponding period of previous year.

• The demand for petroleum products is estimated to reach 244,960 MT by 2021-22

• India aims to reduce oil and gas imports dependence from 77 % to 67% by 2022

• Gas production will likely touch 90 bn cubic meters by 2040

India is emerging as the hub for “Digital Skills”. The country spends $ 1.6 bn annually on training workforce in the sector. The industry is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with over 450 mn plus internet subscribers; only second to China.

Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market.

The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats (village council) in the country with high-speed broadband.

• India’s domestic tech-market is the fastest growing in Asia-Pacific, witnessing growth of over 11% in 2016-17.

• The revenue of Information Technology and Business Process Management (IT and BPM) industry in India is estimated to reach $ 350 bn by 2025.

India's healthcare market may see a threefold jump in value terms to reach $ 372 bn by 2022. The healthcare industry in India stood as the fourth largest employer in 2017 as the sector employed a total of 319,780 people.

Key components of the healthcare market in India are hospitals (Government and Private), pharmaceuticals, diagnostics (imaging and pathology), medical equipment and supplies, medical insurance and telemedicine.

Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving healthcare market in India.

• By 2020, India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth

• By 2020, the healthcare information technology market is expected to grow 1.5 times from current $ 1 bn

• By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $ 32 bn from $ 5 bn in 2012

• During 2015-20, the in-patient market is expected to grow at a CAGR of 13%

The Construction industry in India consists of the Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare.

• By 2025, Construction market in India is expected to emerge as the third largest globally

• By 2025, Construction output is expected to grow on average by 7.1% each year

• By 2020, Construction equipment industry’s revenue is estimated to reach $ 5 bn

India has a large broadcasting and distribution industry, comprising approximately 900 satellite TV channels, 6000 Multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers.

India has 114,820 registered publications (newspapers and periodicals), close to 2,500 multiplexes and more than 400 mn Internet users – second largest base after China, and is expected to reach out to 640 mn by 2019.

• By 2019, digital advertising is projected to have the highest CAGR of 30.2%, while all other sub-sectors are expected to grow at a CAGR between 8% and 18%

• By 2020, media market expected to reach $ 33.7 bn

Up to 74% with FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services: Upto 49% allowed under automatic route and beyond 49% (up to 74%) allowed under government route

India is among the world's largest producers of Textiles and garments. Domestic Textile and apparel industry contributes 2% to India’s GDP and accounts for 14% of industrial production, 27% of the country’s foreign exchange inflows and 13% of country’s export earnings. The Textiles & garments industry in India that employs 45 mn people in India is the second only to agriculture sector in terms of employment.

• FDI in the Textiles & garments industry has more than doubled to $ 618.9 mn during 2016-17 from $ 230.1 mn, a year ago

• Exports in the Textiles & garments industry are expected to reach $ 300 bn by 2024

The Telecom industry in India is the second largest in the world with a subscriber base of over 1.2 bn. The industry has witnessed exponential growth over the last few years primarily driven by affordable tariffs, wider availability, roll out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers and a conducive regulatory environment. The number of smartphone users in India crossed the 300 mn mark in 2016, making it the largest smartphone market in the world.

• Total number of Subscriber Identity Module (SIM) connections is expected to reach 1.4 bn by 2020 from 1.1 bn in 2017

• Telecom industry contribution to GDP is expected to reach 8.2% by 2020 from 6.5% in 2017