Why Australian tech firms should consider smaller South Asian markets before India

South Asia is home to almost a quarter of the world’s population and some of its fastest-growing economies.

To help link Australian businesses with this opportunity, Austrade, supported by the Accessing New Markets Initiative, recently led a series of roadshows focused on agribusiness, technology, health, renewable energy and infrastructure.

So what opportunities are emerging across South Asia’s tech sector and where are Australian companies best placed to compete? Mumbai-based Trade and Investment Commissioner Mary Overington has the answers.

Digital-first generation driving technology consumption

How are rapid digital transformation and demographic change reshaping commercial opportunities across South Asia?

South Asia is one of the few regions where scale, sustained economic growth and rapid technology adoption are all moving in the same direction.

India is the world’s fastest-growing major economy and home to more than 1.4 billion people, including around 600 million people under 25. This young, digital-first generation is reshaping how products and services are designed, delivered and consumed.

One factor that sets India apart is its digital public infrastructure. Platforms such as Aadhaar, the country’s biometric identity system, the Unified Payments Interface and the broader India Stack have enabled digital payments, data sharing and government services to operate at extraordinary scale.

Financial services, healthcare, life sciences, agriculture, manufacturing, education and sport are all being transformed by digital platforms, AI, data and connected technologies.

As India’s digital economy grows, Australian companies bring strengths in trusted technology, governance, world-class research and specialised innovation, particularly among our SMEs and scale-ups.

Consider a smaller market before a larger one

Do businesses need different market entry strategies across South Asia?

Think of South Asia as a collection of distinct markets, each with its own stage of development, customer needs and commercial potential.

For some Australian businesses, the best strategy may be to start in a market such as Bangladesh, establish partnerships and demonstrate their capability, then use those learnings and experience to expand into India.

India is a global technology leader with sophisticated customers and high expectations around quality, performance and value. It is a highly competitive market, so businesses need a clear value proposition and a strong understanding of customer needs from the outset.

By comparison, we’re seeing strong interest from organisations in Bangladesh looking to engage with Australian technology providers and explore new solutions. In some sectors, Bangladesh is at an earlier stage of digital transformation, creating opportunities to test solutions, build a track record and better understand how to operate in South Asia.

Businesses can then take that experience into India with a stronger proposition, demonstrated capability and practical insights from operating in the region. The key is not to assume India must always be the first step.

Participants hear insights about market strategies and opportunities at the South Asia tech roadshow.

What it takes to build a successful presence

Beyond a competitive product or service, what does it take to build a successful presence in markets like India?

Focus on Australia’s competitive strengths and what customers are seeking. Whether the customer is a bank, hospital, sporting organisation or government, the priorities are often similar: reducing risk, improving efficiency and driving growth.

Localisation is equally important. India is not a single, uniform market. With 28 states and 8 union territories, each with its own customer segments, priorities and government agendas, where you focus can be just as important as what you offer.

For many businesses, the best entry point is through a pilot, partnership or proof-of-concept that demonstrates capability and builds credibility. We’re already seeing Indian universities purchase Australian education technology. Sporting organisations are investing in areas such as coach education, train-the-trainer and smart stadium design, where Australia has recognised expertise.

From there, success comes from deepening relationships and maintaining a long-term presence. The businesses that succeed invest time in developing relationships, visit regularly and remain committed, while being ready to move quickly when commercial opportunities emerge.

Industry and government join forces to support exporters

What role can Austrade and the Trade Diversification Network play in helping Australian businesses enter and scale in South Asia?

No company scales internationally on its own and that’s where Austrade and our Trade Diversification Network (TDN) partners can help.

Through the Accessing New Markets Initiative, we help businesses understand market opportunities, identify the right entry pathway and connect with trusted local partners.

One of the roadshow’s strengths was having TDN members FinTech Australia, the Tech Council of Australia and the Australian Sports Technologies Network co-leading sessions alongside Austrade. This allowed us to move beyond high-level market briefings into practitioner discussions about market access, intellectual property, licensing and growth strategies.

Our TDN partners also brought their members into the conversation, allowing businesses with different levels of experience in South Asia to learn directly from one another and share practical insights.

Working together, Austrade, our TDN partners and state government agencies can help Australian businesses see the full potential of opportunities across India and emerging diversification markets such as Bangladesh, Sri Lanka and Nepal.

By combining our insights, networks and expertise, we can give businesses the confidence to invest, expand and build lasting success in the region.