Nations worldwide are finding opportunities, one way or another, to invest their business in India’s emerging economy. If you’re wondering what’s enticing the world to do business in the South Asian country, there are a number of key factors to consider. There’s the fact that their GDP growth has outpaced China’s over the last few years. The Indian tech sector is also more dynamic than Silicon Valley.
There’s a clear global trend and Canada needs take advantage.
In the global energy sector, India is doubling the scale of its solar parks and is one of the world’s leading markets for the heat exchange industry, following in the footsteps of other global leaders like Solex Thermal — currently a trend-setter in bulk solids thermal exchange.
With a sweeping nation-wide commitment to solar power, innovative solutions in engineering, and energy efficiency initiatives (including a goal to supply its people with round-the-clock electricity by 2030), India is quickly emerging as a global front runner in the fight against climate change.
This is very good news, especially because if the world intends to reach its Paris Climate Agreement goal of keeping global warming to a 2-degree Celsius increase, it is increasingly important that India — currently the third largest emitter globally of carbon dioxide — set a new standard in renewable energy.
As the sixth biggest economy in the world, it’s evident that the Bharatiya Janta Party (BJP) and its leader Narendra Modi have made significant advances for the country, as evidenced by the fact that Canada and India have been gradually strengthening their relations. This has resulted in stronger trade ties. In 2017, India was Canada’s 8th largest export country. Minister visits from both sides have shown the world that Canada and India are investing heavily in each other.
The strengthening middle class, that has more buying power than ever before, is a large reason why companies around the world are eager to tap into the emerging market. For example, Amazon, which set foot in the Indian market back in 2013, has also seen phenomenal growth over the last 5 years. India’s approach is clearly geared towards a long term strategy rather than a short term one, and rightly so. The Indian market is made up of an entirely different consumer base with habits that aren’t obvious in the west. Any setup in India from Canadian companies will require careful planning.
India’s economic growth shows no signs of slowing down. Though it has yet to reach its peak, Canadian businesses must map out their approach to executing a business plan for the subcontinent region. A long-term strategy will be the key to success for any new entrant into the Indian market. The opportunity is up for grabs, the question is who will act on it first?