JOIN US"Now is the time for US companies to enter the rising Indian market," according to an export promotion agency of the US government. For the US companies, the agency has named civil nuclear energy as the biggest potential Indian export market segment, estimated at about 150 billion dollars, followed by areas like renewable energy, aerospace and defense, mining and coal, security, healthcare, retail and auto.
"India is a free-market democracy with a legal and regulatory framework that rewards free enterprise, entrepreneurship and risk taking," according to a report compiled by Export.Gov, a collaboration of the US Department of Commerce's International Trade Administration with 19 other federal agencies.
The agency, which offers export assistance to the US companies on the behalf of the US government, has identified India as the 'market of the month'. The US exports to India stood at 32.44 billion dollars in 2008, an 85 per cent increase from the previous year. The US imports from India was 39.89 billion dollars in 2008, up 65 per cent from the previous year.
"India’s sustained and forecasted GDP growth makes it one of the fastest growing economies in the world, and the second fastest in Asia. While its size and growth make it attractive as a market, the most compelling reason for investors to be in India is the high return on investment," the agency has said.
"India is a fast-growing economy with a dynamic and robust financial system. The highly diversified Indian economy has shown rapid growth and remarkable resilience since 1991, when economic reforms were initiated with the progressive opening of the economy to international trade and investment
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"The result was an average annual GDP growth of over 6.5 per cent in the past decade, with 8 per cent per annum expected in the long term," it added.
The Indian market, with more than one billion people, presents lucrative and diverse opportunities for US exporters with the products, services, and commitment that can meet the country’s needs.
"India’s requirements for equipment and services for major sectors such as energy, environmental, healthcare, high-tech, infrastructure, transportation, and defense will exceed tens of billions of dollars in the medium-term as the Indian economy further globalizes and expands," it said.
The report said that Indian companies were increasingly manufacturing finished products to meet growing domestic and export demands and at the same time were "sourcing sophisticated, efficient products and equipment from the US." "There is also a growing trend in utilizing US expertise in the fields of education, energy, environmental, engineering consulting, management consulting, retail and telecommunication," it noted.
Listing out the best potential market segments in India, the export promotion body said that "civil nuclear energy is perhaps the biggest market opportunity in terms of potential export value to US companies, valued at more than 150 billion dollars over the next 30 years. The recent opening of the civil nuclear sector provides a huge market opportunity (reactors, raw materials, supplies) for US companies."
Besides, aerospace and defense sector also ranks among the world’s most dynamic and airlines in India were in the process of buying over 300 aircraft between 2007 and 2012. "India is also a large and growing market for air defense equipment, especially for US suppliers seeking joint-venture opportunities," it said.
As per the report, other high growth potential markets of the country include mining and coal sector, safety and security industry, healthcare, retail, franchising and automotive.