India is one of the world's fastest growing economies, and one of Asia’s giants. It’s also the largest democracy in the world, with a rapidly growing population of more than 1.3 billion.
The size of India’s economy makes it an attractive market for Australian exporters. It’s the single largest potential export market for Australia. The Australian Government’s goal is to make India the third largest business destination globally.
Despite the economic impact of COVID-19, there’s strong demand for Australian goods and services. India’s fast growing middle class, rapid urbanisation and stable government drives this demand.
Outlook for growth
The following factors are fuelling India’s economic growth:
- increased private investment
- infrastructure growth
- investment-friendly climate
India’s government has simplified its tax system with a single goods and services tax. Other business-friendly reforms include easier access to credit and red tape reduction.
India offers more growth opportunities for Australian businesses than any other market (Source: An India Economic Strategy to 2030, accessed Oct 2020). As strategic partners since 2009, Australia and India enjoy strong political, economic and community ties.
Two-way investment and increasing exports
Two-way investment between Australia and India reached A$30.7 billion in 2019. Australia’s largest exports to India are in the resources sector.
Export opportunities in the following sectors are increasing:
- food and agribusiness
- mining equipment, technology and services (METS)
- health care
- defence, advanced manufacturing and space
- energy and new energy tech
- advanced tech.
An India Economic Strategy to 2035
The Australian Government’s India Economic Strategy sets out an ambitious plan to transform Australia’s economic partnership with India by 2035.
The report, An India Economic Strategy to 2030 identifies the sectors that will need Australian goods and services. It also highlights the Indian states and regions Australian businesses should focus on.
Comprehensive Strategic Partnership
India and Australia are working together through the Comprehensive Strategic Partnership (CSP). Their focus includes innovation, entrepreneurship and economic cooperation for a prosperous shared future.
Australia India Business Exchange (AIBX)
The Australia India Business Exchange 2020 (AIBX) brought together delegates from 87 Australian businesses and peak bodies.
The AIBX programs helped them explore opportunities identified in the India Engagement Strategy and the CSP. The AIBX also gives insight into India’s business culture and operational environment.
Insight: India on the rise in the World Bank’s Doing Business 2020 report
India has moved up 14 places to rank 63rd among 190 countries for ease of doing business. (Source: World Bank, Doing Business 2020, Comparing Business Regulation in 190 Countries, February 2020). Exporting and importing has become easier for the fourth consecutive year. This is good news for Australian businesses looking to export to India.
Learn more about India’s ease-of-doing-business ranking on the Austrade website.
India regional profiles
Read market summaries of major states in India on the Department of Foreign Affairs and Trade website.
Many Australian businesses from different industries are finding success in India.
Read about their success stories in this market.
Austrade’s dedicated team in India
Austrade’s dedicated team in India can help you understand, enter and succeed in this market.
Contact Austrade online or call 13 28 78.