The India Focus

India’s GDP growth during the current fiscal (2006-2007) will exceed 8%, a rate which reflects the average for the past four years. With population growing at around 1.6%, per capita income growth is now a rapid 6.4% a year. Projections are that at such sustained pace, per capita income would double in about 11 years.

India is also worth your close attention as an attractive nation with which to do business. Many of those pursuing opportunities in China fail. The challenges of China are in many respects much greater than those in India. The English language is widely spoken throughout India and the legal system is English-based.

Opportunities Indian market offers South Australian Businesses

• In the Indian stock market :
National Stock Exchange ranks third in terms of the number of daily transactions after NYSE and NASDAQ. The Indian stock market is attracting new international attention.


• In infrastructure :
India requires over US$300 billion in new investment in the next five years. The new investment spending will provide a wide range of opportunities for Australian business, either through direct sales or through partnering with Indian companies. As a recent development India now allows private mining firms, including foreign ones, to enter the coal mining sector to help increase energy supplies in the country. Some of the biggest names in Australian mining like BHP Billiton, CRA and MIM have been in India for sometime. Other comparatively smaller mining companies Lake Resources, Oropa Limited, Austpac, Ticor, Cairn Energy to name a few have also established presence in the market anticipating such opportunities.


• In retail :
The Indian retail market is worth about US $300 Billion of which the organized retail in 2006 was a meager US $ 12.5 Billion (4% of total retail at $300 Billion). The India Retail Report 2007 presented by IRF projects a 37% growth in organized retail in 2007 and 42% in 2008 and by 2010 this market is expected to be US $ 45 Billion. The environment is full of opportunities ranging from alliances, training, education, merchandise. Woolworth's has joined with Tata (India's second largest business group).


• In education :
Foreign universities are now welcomed to the Indian education sector. Bill has been submitted with the cabinet to allow foreign educational institutions to offer courses in India independently. Until the cabinet approval foreign educational institutions can offer courses in India in collaboration with Indian institutes to enrich the quality of human capital and sustain the GDP growth momentum.

The inadequate education opportunities in India force several students to pursue their higher studies abroad. There is a potential for Australian universities to devise courses to help retain human capital and educate them in India.