The best route for global business expansion in India

The best route for global business expansion in India

Increasing investments by the government, greater political stability, growing consumer demand, increase the flow of FDIs, and constantly improving business trends are pushing India to explore and expand various business sectors. India is now a business powerhouse for entertainment, pharmaceuticals, healthcare services, education, agriculture, logistics, Information technology, telecommunication, textile, and infrastructure. In recent years, India has shown huge development in fields such as space technology, entertainment, and even trade. A closer look at these emerging industries in India provides a better picture. Information Technology India is known globally to have a technologically driven knowledge economy due to its Information Technology (IT) industry. The IT industry plays an important role in enhancing the productivity of almost every other country sector. Over the last decade, India has become an IT hub for many software companies across the world. It is now known as the world’s largest sourcing destination for the IT industry. The growth of the IT and business service market in India is projected to reach $19.93 billion, by 2025. Telecommunication The Indian telecom industry has grown at a rapid pace post-liberalization. New technology such as Wi-max, Virtual Private Network (VPN), and data services have been instrumental in enhancing business in the IT and BPO sectors. It is estimated that over the next few years, the rising use of mobile phones and reduction in data costs will add 500 million new internet users approximately, thereby creating various new business opportunities in India. Additionally, by 2025, India will start to have 5G-centric technologies such as robotics, cloud computing, AI, etc. Entertainment The entertainment industry in India has grown out of its black-and-white era and entered multiplex and Over-The-Top (OTT) platforms such as Netflix, Amazon Prime, etc. This is because of the advances in virtual reality and the use of 3D and special effects by developers. This has also provided new business opportunities to ancillary sectors such as dubbing, recording studios, animation, cinematography, and other content-creating options. Aerospace and Defense India is the third largest military spender. It is also known to have the second largest armed force in the world. India is revolutionizing its defense sector, by empowering startups and research projects. The government has also designed a few schemes such as DTIS (Defence Testing Infrastructure Scheme) and iDEX (innovations for Defence Excellence) to uplift the defense and private sectors. Commercial space sector India’s commercial space stands out as one of the most promising business sectors in the world. India’s space program, ISRO (Indian Space Research Organization), is the sixth largest space agency in the world, harboring a large fleet of remote sensing and communication satellites. India’s space sector has earned worldwide recognition for its successful Mars mission lunar probes and for launching 104 satellites in one mission for fraction of the cost of western nations. Fintech India Fintech or BFSI (Banking, financial services, and insurance) has revolutionized the way financial services are provided in India. The fintech startup ecosystem saw a huge capital inflow to reach $4.6 billion funding across 160 deals in the first half of 2020. Fintech is also bringing in newer trends in various industries. In addition, government financial initiatives such as Jan Dhan Yojana and India Stack are accelerating the digital revolution even in rural parts of the country. Textile India is now among the world’s largest producers and consumers of cotton. As per the Ministry of Textiles, India recorded its highest-ever textile and apparel exports of $44.4 billion, in the financial year 2021-22. Availability of raw materials and skilled manpower, increasing domestic market, and the rise of e-commerce are a few growth drivers of the textile industry in India. Agriculture The agricultural sector is a major source of employment for India’s population and hence proves to be an important driving factor of the Indian economy. The agriculture sector accounts for 28% of the country’s GDP. The increasing adoption of drones, remote sensing technologies, and advanced irrigation systems have provided a boost to the agricultural market in India. Trade routes of India India is constantly exploring overseas markets to develop new business opportunities. The Department of Commerce has strategized various policies and procedures for the expansion of trade and export services. You will find it interesting to know that Indian export is not limited to spices and cotton, but has crossed all barriers and become a major exporter of electronics and electrical equipment, pharmaceutical products, AI technology, vehicles, and various software services. As of 2020, India is at number 18 in total exports and is also the world’s largest exporter of diamonds. It has also established markets in countries such as the U.S, Singapore, China, the Netherlands, Australia, Turkey, and so on. For more in-depth information regarding India’s top trade partners, refer to the Observatory of Economic Complexity. It also provides information regarding the import and export evaluation of India. Service exports have taken a large leap in recent years. The IT and Information Technology Enabled Services (ITES) are contributing almost 50% of India’s total export services. The service exports scaled up to $148.3 billion in the year 2020-21. This growth was despite the effect of COVID-19 pandemic on India’s travel, tourism, aviation, and hospitality sectors.