South Asia is the world’s fastest growing region, with overall economic growth projected at 7.4% for 2016.
India’s expansion in the region is a major factor contributing to this projection. Countries such as Bangladesh and Sri Lanka have benefited from low oil prices, which have decreased food prices. International oil dynamics will play a key role in the economies of emerging and developed countries in 2016.
India is in the stage of economic development that China was in a decade ago. There is a lot of room for growth in urbanization, gross domestic product (GDP) and business expansion.
It is forecasted that India's GDP will touch 7.9% in 2016. It is projected by International Monetary Fund (IMF) that India is in a highly favourable position for economic growth.
Make in India is a major new national programme of the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure in the country.
The primary objective of this initiative is to attract investments from across the globe and strengthen India’s manufacturing sector. It is being led by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India.
As you know, growth in core sectors directly impacts many sectors favourably; including infrastructure, housing construction and even automotive. What is more, even the core sectors in India are likely to receive a boost with the energetic launch of the “Make in India” campaign by the Central Government. It is expected that growth in the core sectors itself will be largely responsible in realising the “Make in India” vision to take the manufacturing component in the national GDP to 25% by 2025.
By any measure, the Central Government seems to have done commendable work in the last 2 years to create a commercial eco-system that is conducive to overall economic growth in the medium to long-term. “Ease of Doing Business” has now become a competitive benchmark among our states, which are now competing with each other to remove procedural hurdles for manufacturing initiatives. All of them are now also striving to demonstrate their government’s keenness to achieve the “new investment” goals and to convey a message to the rest of the world about the robustness of our economic fundamentals.
It is heartening that a positive response is coming from within and from outside the country for such growth initiatives. The Central Government has indicated its desire to make friendlier policies for sectors like steel, chemicals etc., to boost overall growth. For example, exponential capacity enhancement in the steel and cement industry alone is expected to result in almost 1 million additional jobs in the mining sector by 2025! In addition, if you consider initiatives such as “Electricity to all households by 2022”; “Housing for all by 2020”; “100 smart cities”, “Swachh Bharat campaign”; “Sagar Mala”; the new “Industrial Corridors”; the new metro rail projects, air & seaports, indigenisation of defence production, sizeable investments in the upgradation and modernisation of Railways etc., the new opportunities being thrown up are truly extra ordinary.
It would appear logical that in view of such large scale emerging opportunities in India, the Spanish industry should come forward and aggressively participate – be it with capital goods or with technology. These are the two sure areas where your legendary Spanish Industry enjoys the greatest advantage to profit from.
Yes, new entrants will require a customised, India-centric, entry strategy. If you are already here, you will require devising a cutting edge rapid-growth time-framed road map, again specifically for the Indian marketplace. Besides, it is not just manufacturing but services like skill development too that have potential in our 1.25 Billion people’s marketplace!
This would obviously involve researching the markets thoroughly, profiling existing and potential customers, re-evaluating their needs or creating new ones and deriving a customised, cutting edge, time framed strategy – these are important steps towards success. With over 26 years of proven global industrial research and growth strategy developing experience, we in BDB, an ISO certified Company, are convinced that for all this to happen in a reasonable period of time, the critical components shall be technology, active inclusive participation and speed in execution.
The Spanish companies may look at studying the following factors before entering into the Indian market :
Mr. K C MANI
BDB India Private Limited