If you are Indian Entrepreneurs, we have one thing to say to you – The World is Your Oyster! Now how do you take advantage of the wonderful new opportunities available to you? First and foremost, you shouldn’t restrict yourself to finding export opportunities in just North America, Europe, Japan, China and Australia, as most Indian exporters do.
Export Opportunities for Young Indian Entrepreneurs! If your focus is only on these markets, there are two massive disadvantages you face – strong competition from Indian exporters and lack of options. That’s why you should look for new areas for your business. Let’s talk about some of them – fast growing emerging countries such as Brazil, Indonesia, Mexico, Morocco and others.
For Indian Entrepreneurs India is the 18th largest export economy in the world. In 2016, India exported $256B and imported $344B, resulting in a negative trade balance of $88.1B. In 2016 the GDP of India was $2.26T and its GDP per capita was $6.57k.
The top exports of India are Refined Petroleum ($25.4B), Diamonds ($24B), Jewellery ($12.6B), Packaged Medicaments ($11.6B) and Cars ($6.36B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Crude Petroleum ($60.7B), Gold ($22.9B), Diamonds ($19B), Coal Briquettes ($12.7B) and Telephones ($10.6B).
The top export destinations of India are the United States ($42B), the United Arab Emirates ($30B), Hong Kong ($13.2B), China ($8.92B) and the United Kingdom ($8.57B). The top import origins are China ($58.4B), the United States ($21.7B), Hong Kong ($15.4B), Switzerland ($14.6B) and South Korea ($11.6B).
India’s Foreign Trade i.e. Exports and Imports are regulated by Foreign Trade Policy notified by Central government in exercise of powers conferred by section 5 of foreign trade (Development and Regulation) Act 1992. Presently Foreign Trade Policy 2015-20 is effective from 1st April, 2015. As per FTD & R act, export is defined as an act of taking out of India any goods by land, sea or air and with proper transaction of money.
Many Indian exporters actually woke up to the tremendous business opportunities offered by Brazil during the highly successful football world cup held in 2014. There is a lot to go in favor of Brazil. Brazil grew by 3.11% last year, and has a great need for Information Technology products and services, which is something Indian companies are very good at. Brazil also requires agricultural processing equipment, tractors, jeeps, home care and personal consumer products – many Indian companies that make these products would be better off exporting to Brazil, where there is less is less competition.
Very few Indian businessmen know about Colombia, which is one of the fastest growing economies in South America, and which has recently opened up its economy to foreign trade. Colombia has a growing middle class, and there is a strong need for IT outsourcing and services, cyber security services, business consultancy here, which so many Indian businesses can take advantage of.
Indonesia has been mysteriously neglected by Indian businessmen despite not being so far away from India. Indonesia is the world’s fourth most populous country, with a fast growing middle class and a high GDP growth rate of 8%. Indonesia needs IT products and services, outsourcing, ERP services, education and training, banking and financial services – quite desperately. It’s a major opportunity just waiting to be filled. Can you be the one to take it?
What makes Mexico such a lucrative market is that because of its closeness to the United States, a lot of US manufacturing companies have relocated factory units to Mexico. The US-Mexican trade is worth $850 million a year. Can you take advantage of this by providing IT and outsourcing services to not just Mexican businesses, but also to the American companies located in Mexico? There’s a great opportunity here. Also, Indian agro industries can find a plenty of opportunity exporting farm produce in Mexico. Basmati rice, for example, has a great demand here.
South Africa has a large Indian community, which offers wonderful exporting opportunities for Indian processed food, consumer goods and apparel companies. South Africa has the great advantage of being financially and politically stable, a strong infrastructure and having a fast growing economy. South Africa also has giant mining and infrastructure companies that require IT products and services. Indian legal firms, accounting firms and consulting services will enjoy working in South Africa.
Turkey has been one of the fastest growing nations in the world for the past decade. Turkey’s Prime Minister Erdogan has been a visionary leader who has completely transformed the country. Turkey is a financially stable country, with excellent infrastructure. There is a tremendous demand in Turkey for Indian movies, food and clothes. Perhaps as an Indian small business entrepreneur, you can take advantage of this and export food, entertainment and consumer products to Turkey.
This article is a part of our series on “Exploring Opportunities” and Indian Entrepreneurs. Our goal is to inform and motivate young entrepreneurs in emerging countries, and we hope this initiative helps, in its own small way. Export Opportunities for Young Indian Entrepreneurs: Please send us your suggestions on how we may help to serve you better.