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India’s

International

Trade-Present

Scenario
International Business in India looks really lucrative and every
passing day, it is coming up with only more possibilities. The
growth in the international business sector in India is more than
7% annually. There is scope for more improvement if only the
relations with the neighboring countries are stabilized. The
mind-blowing performance of the stock market in India has
gathered all the more attention (in comparison to the other
international bourses). India definitely stands as an opportune
place to explore business possibilities, with its high-skilled
manpower and budding middle class segment.

With the diverse cultural setup, it is advisable not to formulate
a uniform business strategy in India. Different parts of the
country are well-known for its different traits. The eastern part
of India is known as the 'Land of the intellectuals', whereas the
southern part is known for its 'technology acumen'. On the
other hand, the western part is known as the 'commercialcapital of the country', with the northern part being the �hub
of political power'. With such diversities in all the four segments
of the country, international business opportunity in India is
surely

Sectors having potential for International business in India

huge.

Retailing. Sectors like Health. Agriculture and Food Processing. Pharmaceuticals and Biotechnology. 3. Small and Medium Enterprises (SME) and Urban Development are still not tapped properly and thus the huge scope should be exploited. Telecommunication. Water Resources. Education. Banking. Financial Institutions and Insurance & Pensions. Information Technology and Electronics Hardware. Logistics. bodies like . 2. Infrastructure. Manufacturing. To foster the international business scenario in India. Environment. 11. 6. 7.1. Resource Conservation & Management Group. 8. Power and Non-conventional Energy. Rural Development. Chemicals and Hydrocarbons. 4. 12. Housing. R&D. 10. 9. Capital Market. 5. 13.

The image was not bright enough to be the cynosure among the shining stars. FICCI and the various Chambers of Commerce. These bodies work closely with the Government and the different business promotion organizations to infuse more business development in India. 3. after liberalization process and the concept of an open economy . . as of now. It was evident till a few years back that India had a marginal role in the international affairs.CII. The credit rating agencies had radically brought down the country's ratings.international business in India grew manifold. the International Business trend in India is mind boggling. They help to build strong relationships with the different international business organizations and the multinational corporations. Future definitely has more to offer to the entire world. 2. 4. But. India International Business community along with the domestic business community is striving towards a steady path to be the Knowledge Capital of the world. These bodies help to identify the bilateral business cooperation potential and thereafter make apt policy recommendations to the different overseas Governments. have a host of services like 1. With opportunities huge.

the average of 55% i.716 shoppers are benefiting for online services.2. As per the reports. around 2. As per the Chairman of IOAL "The report . According to the Preti Desai. As per the survey reports. Consumers and retailers both desire a safe. followed by those who access it from home. The business module is cost effective. Internet and Online Association of India "E-commerce is coming of age in India.300 crore worth of e-business in India.In India to compare with the total population.570 crore during 2004-05. easily accessible and profitable in many functional areas. the present and the next couple of years it may be crossed to Rs. that are getting services through online and use of internet by way of e-commerce. The most of the study found that. Chaining lifestyles and shopping habits" Now a days most of the metro and non metro corporation cities are basing completely on the media and internet and multiple internet access points. On the basis of that.e. In India most of internet users are purchasing their commodities and services through online shopping through internet and e-business. 1. simple and complete online shopping. out of 3099 online shoppers. The rapid development of E-commerce in India is forcing companies to adopt business strategies revolving around the internet. President.. the total value of e-commerce activities within India crossed Rs.5 crores are the internet users. of Internet and online association of India. most of the shoppers access the internet from office. From this we can findout what is the actual and real power of internet now a days. Some also go to cyber cafes.

P. . Now India has improved its position to the 43rd rank in the World of E-Commerce activities. Finance Minister of India Mr. we can imagine how the India is growing with online shopping and ecommerce. The rapid development of e-commerce is forcing companies today to adopt business strategies rotating around the internet. the internet population is 25+ million and is expected to grow at 100 million by end of 2008" So on the basis of reports.Though impact of Indian economy growth may not be considerable on world scale but atleast all Indians will be very very happy. India is the second most populous country and the largest democracy in the world. Today.reflects the chaning face of business trends in India.Chidambaram announced recently that expected growth rate of Indian economy is 9 % for the year 2008 and that is excellent by any means.

growing by 7. India’s economy has witnessed a significant economic growth in the recent past. 2015. The improvement in India’s economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms.23 trillion (US$ 1. The size of the Indian economy is estimated to be at Rs 129.57 trillion (US$ 2. as per the report. RBI's inflation focus supported by benign global commodity prices.5 per cent in 2016.596 trillion). The steps taken by the government in recent times have shown positive results as India's gross domestic product (GDP) at factor cost at constant (2011-12) prices 2014-15 is Rs 106.01 trillion) for the year 2014 compared to Rs 118. The economic activities which witnessed significant . as against Rs 99.21 trillion (US$ 1.3 per cent.9 per cent in FY2014. registering a growth rate of 7.5 per cent in FY 2015-16.4 trillion (US$ 1.3 per cent in FY2015 as against 6. India’s Gross Domestic Product (GDP) is expected to grow at 7.84 trillion) in 2013. as per the recent report by The World Bank.Current Scenario of Domestic Trade in India India is set to emerge as the world’s fastest-growing major economy by 2015 ahead of China. India ranks seventh globally in terms of GDP at current prices and is expected to grow at 7. Market size According to IMF World Economic Outlook April.488 trillion) in 2013-14.

2 per cent in July 2015 compared to 3.7 billion involving a total of 156 transactions. Investments/developments With the improvement in the economic scenario. M&A activity increased in 2014 with deals worth US$ 38.2 billion. communication services’ at 10. Private equity (PE) investments increased 16 per cent y-o-y to US$ 2. compared to US$ 28.2 billion in 2013 and US$ 35. Also.4 billion in 2012. The growth was largely due to the boost in Electricity . real estate and business services’ at 11. amounting to 38 per cent of the total transaction value. urbanization and other structural reforms.growth were ‘financing.8 per cent in June 2015. insurance. which were higher in terms of volume (47 per cent) and value (17 per cent) compared with the same period last year. hotels. In the M&A space.1 billion being concluded. there have been various investments leading to increased M&A activity.7 per cent. India could grow at a potential 8 per cent on average during from fiscal 2016 to 2020 powered by greater access to banking. marking the highest activity in 2015. transport. Energy and natural resources was the dominant sector.  India’s Index of Industrial Production (IIP) grew by 4. technology adoption.5 per cent and ‘trade. According to a Goldman Sachs report released in September 2015. Some of them are as follows: India has emerged as one of the strongest performers with respect to deals across the world in terms of mergers and acquisitions (M&A). The total transaction value for the month of July 2015 was US$ 6.

led by low crude oil prices.  India’s Consumer Price Index (CPI) inflation rate eased to 3.3 per cent in the previous month. 2015 – indicating an increase of US$ 631.95 per cent for the tenth consecutive month in August 2015 as against negative 4.  India's consumer confidence continues to remain highest globally for the fifth quarter in a row.3 billion (0.  India's foreign exchange reserve stood at a high of US$ 352 billion in the week up to September 18. According to Nielsen’s findings. which was 3.  India’s current account deficit reduced sharply to US$ 1. . India's consumer confidence score is up by three points from the corresponding period of the previous year (Q2 of 2014) when it stood at 128. On the other hand.5 per cent in July compared to 1. With a score of 131 in the second quarter (2015).3 per cent quarter-on-quarter basis.2 per cent of GDP) in the fourth quarter of 2015 compared to US$ 8.sector growth.69 per cent in the previous month.5 million compared to previous week. India’s consumer confidence score in the second quarter of 2015 increased by one point from the previous quarter (Q1 of 2015). riding on positive economic environment and lower inflation.05 per cent in the previous month. indicating a shrink in the current account deficit by 84.66 per cent in August 2015 compared to 3.6 per cent of GDP) in the previous quarter. the Wholesale Price Index (WPI) inflation rate remained negative at 4.3 billion (1.

The Government of India. has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy. according to a Nomura report. Currently. Owing to increased investor confidence. delivering services digitally and to increase the digital literacy. the manufacturing sector in India contributes over 15 per cent of the GDP. Mr. Following the government’s initiatives . Besides. the Government has also come up with Digital India initiative. Government Initiatives Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. net Foreign Direct Investment (FDI) inflows touched a record high of US$ 34. This initiative is expected to increase the purchasing power of an average Indian consumer.9 billion in 2015 compared to US$ 21. Prime Minister of India. and hence spur development.7 per cent of the GDP in 2015 from 1. is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP. which focuses on three core components: creation of digital infrastructure. Narendra Modi. The report indicated that the net FDI inflows reached to 1.6 billion in the previous fiscal year. which would further boost demand. in addition to benefiting investors. Finance Minister Mr Arun Jaitley stated that the government is looking at a number of reforms and resolution of pending tax disputes to attract investments.1 per cent in the previous fiscal year. under the Make in India initiative.

several plans for investment have been undertaken which are as follows:  Foxconn Technology group. . Besides. mainly to increase the capacity at the Talegaon plant in Maharashtra from 130.  JSW Group plans to expand its cement production capacity to 30 MTPA from 5 MTPA by setting up grinding units closer to its steel plants. Besides. Clean energy investments in India increased to US$ 7. the Telangana Government aims to double IT exports to Rs 1. Taiwan’s electronics manufacturer.  US-based First Solar Inc and China’s Trina Solar have plans to set up manufacturing facilities in India.000 jobs. Besides. Samsung Heavy Industries and Kochi Shipyard will be making Liquefied Natural Gas (LNG) tankers.7 billion) by 2019. helping the country maintain its position as the seventh largest clean energy investor in the world.2 trillion (US$ 18.000 units a year to 220.9 billion in 2014. Foxconn aims to establish 10-12 facilities in India including data centers and factories by 2020.  Hyderabad is set to become the mobile phone manufacturing hub in India and is expected to create 150.  Hyundai Heavy Industries (HHI) and Hindustan Shipyard Ltd have joined hands to build warships in India.  General Motors plans to invest US$1 billion in India by 2020. is planning to manufacture Apple iPhones in India.000 by 2025.000 – 200.

Some of them are as follows:  The Government of India has launched a digital employment exchange which will allow the industrial enterprises to find suitable workers and the job-seekers to find employment. The program is a step towards realising Digital India and will depict good governance. Bodhgaya and Taj Mahal will have a Wi-Fi facility as part of digital India initiative. According to officials at the MSME ministry over 200. the Government has started providing free Wi-Fi service at Varanasi ghats.  The Ministry of Human Resource Development recently launched Kendriya Vidyalaya Sangthan’s (KVS) e-initiative ‘KV ShaalaDarpan’ aimed at providing information about students electronically on a single platform.  The Government of India announced that all the major tourist spots like Sarnath.567. Based on the recommendations of the Foreign Investment Promotion Board (FIPB). Besides. The Government of India has launched an initiative to create 100 smart cities as well as Atal Mission for Rejuvenation and . The core purpose of the initiative is to strengthen the communication between the stakeholders and to improve the efficiencies in service delivery in the MSME ministry.92 crore (US$ 1. the Government of India has recently approved 23 proposals of FDI amounting to Rs 10.378.000 people have so far registered on the website.Under the Digital India initiative numerous steps have been taken by the Government of India.75 million) approximately in August.

Besides. initiatives like Make in India and Digital India will play a vital role in the driving the Indian economy. Furthermore. having a floor space greater than 100. Besides. growing at 7.000 crore (US$ 7.. Indian economy would continue to grow at 7 to 9 per cent and would double in size to US$ 4–5 trillion in a decade. becoming the third largest economy in absolute terms. The Phase I for Smart City Kochi (SCK) will be built on a total area of 650.5 per cent in 2016. lower food prices and better policy reforms. .000 crore (US$ 7. The Bank believes India to become the fastest growing major economy by 2015. Road Ahead The International Monetary Fund (IMF) and the Moody’s Investors Service have forecasted that India will witness a GDP growth rate of 7. Smart cities are satellite towns of larger cities which will consist of modern infrastructure and will be digitally connected. ft. according to mid-year update of United Nations World Economic Situation and Prospects. According to Mr Jayant Sinha. India is leading The World Bank’s growth chart for major economies.78 billion) crore respectively. it will also generate a total of 6.000 direct jobs in the IT sector. India is expected to grow at 7. Minister of State for Finance. due to improved investor confidence.000 sq.5 per cent. 2015. The program was formally launched on June 25. As per the latest Global Economic Prospects (GEP) report by World Bank.6 per cent in 2015 and at 7.7 per cent in 2016.Urban Transformation (AMRUT) for 500 cities with an outlay of Rs 48.000 sq.47 billion) and Rs 50. ft.