Traditionally India is an agrarian economy but after the liberalization of the economy in 1991, it has become an open market economy for global business. Since 1991s, there were significant changes in forms of investment strategies and external trade regulations in different business modules. These changes have made India one of the fastest growing economy.
The changes can be seen in the in the economic activity of India. Now India has evolved into an open market economy with adequate investment opportunities in various sectors including infrastructure, retail, defense, finance and insurance, information technology, and manufacturing.
Agricultural and Industrial Products
India is among the foremost producers of food grains on the global scale. Rice and wheat are the highest cultivated food crops, with considerable productions of millets and maize. Lentils and oilseeds also contribute to total agricultural production. Among cash crops, the chart is topped by tea, cotton, jute, and sugarcane. India is among the largest producers and exporters of tea.
Among industries which are running on large scales are, textiles, chemicals, steel, shipbuilding, and engineering goods. For the foreign investors, cement, luxury goods, mining machinery, automobiles, and pharmaceuticals have always remained on the top.
Cotton, Iron And Steel, Plastic, Fish and Crustaceans, Aircraft, Spacecraft, And Parts, Meat, and Edible Meat Offal, Other Made Up Textile Articles, Sets, Worn, clothing And Worn Textile Articles, Ships, Boats, And Floating Structures are the main exports from India. Imports into India mainly constitute India Import of Iron And Steel, Ships, Boats, And Floating Structures., Nuclear Reactors, Boilers, Machinery And Mechanical Appliances, Electrical Machinery And Equipment And Parts, Organic Chemicals, Optical, Photographic Cinematographic Measuring, Checking Precision, Medical Or Surgical Inst, Vehicles Other Than Railway Or Tramway Rolling Stock, And Parts And Accessories. With the opening up of the Indian market for FDI, this country has become one of the privileged destinations for investment opportunities in various sectors.
Indian Exporters Growth at Global Trading
The Indian exporters are making their existence felt in diverse categories of products and services in the global market. They have all necessary skills, tools, and strategy to extend their reach globally. India has always been the source of diversity of goods for the global people consumption since ancient items.
So, below are the major factors accountable for the growth of Indian exports business.
The growth of the SME Sector
SME Sector plays a huge roll in setting up the manufacturing sector of any country. The economy of any country hugely depends upon its small-medium scale industries. Same is the case with India, with so much diversity in skill sets and geographical location, a different type of SME industries have grown up and has enabled the Indian exporters to go around the world.
Online Trading Transactions
With the availability of e-commerce, b2b exporters have contributed hugely towards the Indian trade statistics growth in recent times. With so many businesses to business marketplaces are available for almost every niche, India’s small and medium-sized enterprises have reached the global audiences with their unique products and services. Decreased time to reach global audiences, instant business transactions, super fast & complete secure payments, and various other benefits are connected with the b2b business transactions and their amazing growth.
Liberal Approach of Government
As discussed early in the blog, India was a closed economy and there were no such big-time export opportunities. Then finance minister of 1991 and took the greatest decision of opening the Indian economy through its liberal policy. The biggest beneficiaries were the Indian exporters, who made the best out of the opportunity by offering the high-quality products and service to global users at a relatively lesser price. Today, Indian government body is creating new opportunities like approving hundred percent FDI in various sectors, special economic zones in various states and special business summits so that the Indian exports can attract more global companies and increase the total export to a new level.
Support of Various Indian Exporters Associations
There are abundant Indian exporters associations that help the business exporters to do the business in a most friendly way. They help their members by creating business-friendly policies which ultimately bring big profits to the country. There are so many regional associations, state-level associations and so many industry-specific associations as well which do provide adequate support and guidance to the exporters whenever they need.
Here is the list of the associations:
- SME India external link
- National Bank for Agriculture & Rural Development (NABARD) external link
- Laghu Udyog Bharati (LUB) external link
- SME Network – Network of Small and Medium Enterprises Associations & Members external link
- Federation of Indian Chambers of Commerce and Industry (FICCI)
- Confederation of Indian Industry (CII)
- The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
- Federation of Indian Micro and Small & Medium Enterprises (FISME)
- World Association for Small and Medium Enterprises (WASME)
- India Trade Promotion Organisation (ITPO)
- Technology Innovation Management and Entrepreneurship Information Service
- Technology Bureau for Small Enterprises (TBSE)
- Asian and Pacific Centre for Transfer of Technology
- Environmental Information Centre
We are now seeing the return of investor confidence in Indian business models, reflected in current investment done in both domestic and foreign. This confidence is helping Indian business houses to get the industrial growth at a rapid rate. The Government determines to build Indian economy on all three legs-services, manufacturing, and agriculture.
The Indian services sector, which is drastically changed by the hugely developed infrastructure in communications technology along with human capital is running the growth engine in the last few years. The dynamism and growth of the Indian IT sector have made the foreign investors believe that Indians can compete with the best in the world. This sector continues to run the Indian economy, generating new business areas such as robotics designs and bio-informatics.
After facing the period of recession in the last decade, the Indian exporters are again ready to serve the ever-growing requirement of foreign business. The need of the house is to make more utilization of SME production with latest technology and b2b marketplaces in different niches to accelerate the rate of growth.
