Challenges and opportunities aplenty

India is one of the most interesting growth markets in Asia. Already today, India is the fourth-largest national economy in the world, after the USA, China and Japan, measured by purchasing power.

The up-and-coming market draws many German companies in various industry sectors – ranging from mechanical engineering and plant construction or communications and information technology, the textile industry, metal construction and the automotive industry, to the electrical industry and biotechnology sector.

Around 1,800 German companies are already doing business in India. Until now, however, primarily larger corporations are using the chances at hand. According to a recent survey (Handelsblatt, 09/2007), only about 10 % of small and medium-sized enterprises see India as an important market. An immense untapped potential lies here for German mid-sized enterprises.

The reasons for investing in the Indian market are not only the political stability of the country, a sufficient supply of specialists and knowledge workers, and the independent legal system, but also mainly a continously growing seller's market. The middle class, which possesses purchasing power, currently includes about 50 million residents, therefore making India one of the most attractive export markets. Compared to 2005, German exports to India increased last year by 51.5%.