India is the fastest growing large economy in the world. By 2035, India is projected to be the world’s third largest economy with more people than any other country.
Today, resources comprise Australia’s largest exports to India. Opportunities in other sectors are already increasing, including in education, tourism, infrastructure, agribusiness, and mining equipment, technology and services (METS).
With more than half a billion internet users and an aspirational middle-class population, India presents a ready and growing market for Australia’s goods and services.
The demographic dividend and rapid urbanisation in India present medium- to long-term opportunities. Two-way investment between Australia and India reached A$30.7 billion in 2019. Currently, the Australian Government’s goal is to make India the third largest destination in Asia for outward investment.
An India Economic Strategy to 2035
Commissioned by the Australian Government, the India Economic Strategy sets out an ambitious plan to transform Australia’s economic partnership with India by 2035.
The strategy identifies areas where a growing India will need many of Australia’s goods and services. It covers education, tourism, healthcare, infrastructure, sport and financial services. The report also highlights the Indian states and regions where the government should focus its efforts.
Read the Australian Government response to the India Economic Strategy.
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, according to the World Bank. Importing from and exporting to India have become easier for the fourth consecutive year. This is important for Australian businesses that want to participate in India’s large and growing markets.
Learn more about India’s ease-of-doing-business ranking.
Transnational education: Opportunities for Australia
Education is a flagship sector in Australia’s bilateral relationship. India is Australia’s second largest source of international students and Australia is the second most popular overseas destination for Indian students.
Developing long-term relationships in the sector goes beyond student recruitment. Australian institutions can capitalise on a range of opportunities including research and development with Indian corporates, institutional partnerships and government-supported research programs.
In 2019, Austrade released a report that outlines transnational education opportunities for Australia. The report includes information on the business structures that can be deployed to best capitalise on these opportunities.
E-commerce in India: Rapid growth means opportunities for Australian business
India’s e-commerce sector is growing rapidly. Access to affordable mobile data means Indian consumers are technically literate and have embraced online shopping. The market is expected to be worth A$175 billion in 2020, led by Flipkart (an Indian ‘unicorn’), Amazon India and bigbasket.com.
The development of e-commerce in India is helping service a growing appetite for international brands and high-quality imports. Traditional retail space is cost-intensive and hard to secure, especially in smaller cities. As a result, e-commerce is evolving rapidly, connecting more consumers with a wider range of products, including those from Australia.
Read about the e-commerce market in India.
India regional profiles
Market summaries of major states in India: