Indian Economy: The Asian Tiger



By: YOSEF TASTASSA  
Published: November 1st 2010
in Economics » World

Mumbai
Pic: WikiMedia Commons

India is amazing; it is beautiful and ugly, cruel and generous, black and white, happy and sad - a country of many contradictions.

 

It is the world's largest democracy, and like China it is facing an economic boost that will influence the entire world.

 

Like China, India’s growth pace is 9.7 per cent every year. But unlike China its economy is based on the interior market, and the number of people participating in the labour market in 20 years will be the biggest in the world.

 

India has two important characteristics that reflect its economy: Only 25% of the economy is export related, meaning that if someone wishes to make money in India he should look for places where there is a steady increase in the local demand, such as communication, health care, clothing, private transportation, food and products.

 

Look at the young generation: unlike China who limits its birth rate, India does not do that. The numbers are smaller than 20 years ago but are still at a large scale.

 

According to data provided by the United Nations, in the coming decade the number of working people in India will jump by no less than 136 million. China will add in the same time 23 million posts, the US will add around 11 million posts and our Canada will add around 1 million posts.

 

India has three more advantages over China.

 

Language – English is spoken all over India, and as such it is easy to communicate and do business.

 

English Law – The fundamental rules, laws and regulations are very much familiar to the western culture as they are based on the English law.

 

Regime – The Indian Democracy has a free market attitude which in some ways may look chaotic to outsiders, but in other terms is very flexible and is easy to deal with. It is not the Chinese accuracy, nor is it the Chinese stubbornness.

 

The middle class is growing fast in India and is capturing a significant position in the country's giant economy. It is expected that domestic products will boom in the country.

 

Sales of laundry machines, dryers, vacuum cleaners, Hi-Fi systems, cell phones, internet, jewellery, clothing and cars are increasing.

 

India's long term vision is to effectively connect remote regions to the heart of the Sub-Continent by roads and more efficient rail tracks. This will result in many investments in the transportation sector.

 

All you have to do is look at national and provincial tenders to understand the Indian needs and take the right opportunity.

 

If you decide to do business in India, be very patient and learn how to respect the Indian mentality.



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