India, it seems, has really taken to the world stage in the past few years. Rarely a day goes by when there isn’t a story about a major development in trade, a large Indian company that is involved in a takeover, or an initiative expected to have repercussions far beyond its borders.
Five years ago, politicians invariably mentioned China as the embodiment of how the world economy is changing. Listen carefully now, and the name of India invariably follows, in much the same way that India’s economy is expanding and changing in hot pursuit of the trailblazing Chinese.
The effect of the sustained and rapid economic growth that has been achieved over the past 15 years is reshaping the world of trade. Since it embarked on its strategy of reform in 1991, at least one hundred million people have been lifted out of poverty, while infant mortality has fallen rapidly and both life expectancy and literacy rates have shown rapid improvements.
At the same time, a growing number of entrepreneurs have amassed great fortunes, not to mention fame. Company names such as Tata, Reliant and Infosys are now commonplace in the Western press, whilst two leading Indian banks, ICICI and the State Bank of India, have extended their presence in Britain’s major cities. In fact, some 76 Indian companies chose to locate or expand their business in the UK last year, creating almost 1,500 jobs.
Perhaps the best news of all for British businesses is that relations with India are as warm as ever, and this is paying dividends in sales. Combined business between the two countries has more than doubled since 1993, reaching a huge value of some £6bn.
of the exotic and the familiar for a first-time British visitor. In a country that recognises no less than 18 official languages, and where at least 800 different dialects are spoken, it is a huge advantage for British suppliers that English is the language of business. Furthermore, there is a very strong cultural bond that has caused many Britons to report a surprising feeling of being at home in India.
However, a visit to India can be a shock. The country is one of unparalleled extremes in wealth, and in some ways the visible distinction between the ‘haves’ and ‘have nots’ has grown in the last four years. While one recent report found a record rise in the number of millionaires in India, at the same time the federal government is having to alleviate increased hardship for some of India’s poorest people as divergence between supply and demand has led to rapid price increases for some basic food products.
One of the most startling experiences for many new visitors to India is the way in which the very rich live and work so close to some of the country’s poorest, but this is normal in India’s major cities. Around the outskirts of Delhi and Mumbai (formerly Bombay), some of the most aesthetic, state-of-the-art business parks and science parks stand like palaces, while some of India’s poor live and work in makeshift housing close to the gates. That India’s economic miracle is helping to fight poverty fast is not in doubt, but there is still a very long way to go before it is finally eradicated.
It is the sheer size of India, as well as this bruising pace of change that can make it difficult for a newcomer to know where to start. The country is, perhaps, better viewed as a continent, and, therefore, approached as a number of distinct markets, each with its own unique features.
It’s Delhi for deals, Mumbai for money and Kolkata (formerly Calcutta) for culture,’ quipped Vicki Treadell, the UK’s Deputy High Commissioner in Mumbai during a recent trade mission. Mumbai is regarded as the nearest thing India has to a commercial centre (a quarter of all incoming shipments land there), whilst Delhi, being the seat of government, is the place where large public sector deals are concluded.
As for Kolkata, a massive city in India’s north eastern state of West Bengal that is frequently overlooked by visitors, it is a place where economic growth has kicked in more recently, but is now occurring at a phenomenal pace even by contemporary Indian standards.
As many of India’s best known boom towns (such as Bangalore, the renowned IT centre of the south) struggle to keep up with the pace of demand for premises and people, Kolkata is reaping the benefits as a ready-made alternative.
Even the experience of travelling to India is changing. As recent agreements to extend the choice of airlines between the UK and India have come into force, new carriers such as Virgin Airlines, British Midland, and the reputed Indian-owned line, Jet, have given passengers greater choice and driven down prices. New arrivals in India are likely to realise quickly that the country has much to do to catch up with China, its major Asian rival, but India has shown that it is capable of meeting the increasing demands of world business, and ambitious programmes of investment in roads, rail and airports are beginning to take shape.
Businesses seeking help in cracking this extraordinary market can expect to find welcome guidance from the London-based Indo-British Partnership (IBPN). Established in 1993, this specialist organisation has helped numerous companies in the UK and India to find new business. Now the Partnership has been rewarded with a major increase in funding from the British government, and is currently planning a major expansion of its services.
A productive visit to India requires careful planning and research. The country is vast, and it is important for a first-time visitor not to try to do too much. The climate is gruelling at many times, and, with a risk of illness, every visitor needs to take medical advice on inoculations. British passport holders need a visa to enter the country and, as demand is very high at present, readers are strongly advised to allow sufficient time to complete their applications – and to keep abreast of the latest requirements.
