Thursday, November 30, 2006

India: Huge Opportunities For Global Firms

The Indian market and its one billion plus population, presents lucrative and diverse opportunities for US exporters with the right products, services, and commitment. In recent times, the declining value of the dollar, vis-à-vis competitors' currencies, is expanding and accelerating these opportunities.

India's infrastructure, transportation, energy, environmental, health care, high-tech , and defense sector requirements for equipment and services will exceed tens of billions of dollars in the mid-term as the Indian economy globalises and expands.

India's GDP, currently growing at around 7 per cent, makes it one of the fastest growing economies in the world. Construction of nearly everything from airports to container ports to teleports is setting the stage to remake India.

GDP: $691 billion

Growth: Estimated 7-8 per cent or higher in 2005-06; 7 per cent in 2004-05.

Breakdown: Services equal 50 per cent of the GDP; industry and agriculture equal 50 per cent.

Ranking: 10th largest economy in the world and one of its fastest growing; fourth largest in purchasing-power parity terms.

Per capita income: $640 in 2004-05, (almost double the figure of two decades ago). Of the 1.1 billion people, 39 per cent live on less than $1 per day.

Purchasing power: In 2005, approximately 170-300 million people had growing purchasing power, thus creating a growing middle-class consumer population.

Youth Power: Over 58 percent of the Indian population is under the age of 20. That is over 564 million people, nearly twice the total population of the United States.

US - India Trade

Total Trade: Total bilateral trade in 2005 was $26.77 billion US. Exports to India in 2005 increased to $7.96 billion, a 30.3 per cent increase from the previous year Imports from India in 2005 totaled $18.81 billion, a 20.8 per cent increase from the previous year.

India at a glance

Population: 1.1 billion (Urban population - 28.4 per cent)

Retail Market Size: $286 billion (only 3.9 per cent is organised retail). Retail trade is booming in the country due to increasing disposable incomes of middle and upper middle class

Growth of Malls: 375 shopping malls by 2007 from 25 in 2003

Estimated space: 90 million sq ft.

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