Austrade media release
23 March 2010
Strong economic growth and a steady flow of foreign direct investment (FDI) into and from India despite the global downturn have expanded opportunities for Australian businesses in the sub-continent, according to Austrade.
Austrade’s New-Delhi-based Senior Trade Commissioner, Peter Linford said the India growth story was good news for Australian businesses.
“India is Australia’s fourth largest export market, with merchandise exports growing by 65 per cent from the previous year to $15.4 billion in 2008-09. But there are more opportunities for growth,” Mr Linford said.
Mr Linford and Austrade market specialists will shed light on market opportunities and challenges, and provide strategies for export success at Austrade’s Winning Business in India and South Asia seminars (details below).
“India’s domestically driven-economy is 12th largest in the world and expected to grow at an average of over eight per cent for the next decade.
“According to a recent Columbia University report, the sub-continent attracted US$27 billion in FDI in 2009. This will mean further growth and development across a range of sectors in the market.
“India’s 350 million consumer class with their significant spending power and increasingly western tastes are fuelling the growth in the country’s organised retail sector, which is expected to increase US$140 billion this year.”
Mr Linford said there was increasing interest from India in sourcing Australian goods and services, and these were not limited to traditional sectors like commodities and agribusiness.
Last week, executives from India’s largest infrastructure company (Hindustan Construction Company) were in Australia to source expertise in education, sports, tourism and leisure for Lavasa City, a $10.9 billion urban infrastructure project.
Cookie Man, Cartridge World and Gloria Jeans are just some of the home-grown brands that have already established a foothold in the Indian market.
“Austrade has identified significant opportunities for growth in clean technology and services, food and beverage, financial services, hospitality, infrastructure and sports, particularly around major events like the 2010 Delhi Commonwealth Games and the ICC Cricket World Cup.
“The Indian Government is also planning a massive investment of US$130 billion to enhance the energy sector and US$21 billion to improve airports and ports around the country,” he said.
Mr Linford said Indian firms were also looking to expand operations globally, presenting significant opportunities in areas of traditional strength for Australia.
“India’s share of global FDI outflow increased almost six-fold from USD 2.9 billion in 2005 to USD17.4 billion in 2008, positioning the sub-continent as a major player internationally.
“Already, Indian companies on the 2009 Fortune 500 list such as Reliance Industries and State Bank of India have invested in Australia. Aditya Birla Group, Mahindra & Mahindra and leading global ICT players like Infosys and Wipro also have a major presence here.
“Australian firms wanting to attract investment and businesses which facilitate investment projects in Australia like banks and financial institutions, legal firms, consultancies, and other support services are the potential winners.”
Mr Linford said Australian businesses with an established presence in India could take advantage of the growth in neighbouring South Asian markets like Bangladesh, Nepal, Maldives, Sri Lanka and Pakistan by working with Austrade.
“Whatever the size of your business, the opportunities are there for innovative firms committed to business expansion. It’s a matter of finding the right partner and tapping into the opportunities,” he said.
Winning Business with India and South Asia seminars will commence in Perth (19 March) and continue on to Hobart (22 March); Adelaide: (22 March); Melbourne (23 March); Geelong (24 March); Wollongong (24 March); Sydney (25 March); Brisbane (29 March) and Gold Coast (30 March)
Available for interviews: Peter Linford (Austrade) and local firms doing business in India and South Asia
ENDS
Media contact
Purnima Ganapathy, Senior Media Adviser, Ph: 02 9390 2319, M: 0419 127 577
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