In the ever-expanding and ever-globalizing world of trade, finding new trading partners is essential for brands seeking a way to differentiate themselves in the market. Finding new sources for the sale, production and distribution of products and materials is a huge part of the differentiation potential a company may leverage in their quest to offer new and exciting benefits to their customers. India has rapidly become a great go-to country for leveraging trade for a wide range of businesses, industries and products -- and for great reason. Consider some of the most noteworthy cases for initiating a trade relationship with India and bring those insights back to the next board meeting. India is definitely one of the fastest-growing countries in Asia. There are lots of benefits of trading with India.
4 India Trading Tips You Must Need to Know
Prevalence of English language
Aside from Hindi, English is the most commonly spoken language in India which is a crucial factor of successful trade. As of 2010, there were more than 125 million English-speaking Indians and the number is expected to have risen sharply since then. This makes trading with India much easier between the US or UK and expansion of businesses across different countries without the need of translation.
The rise of India's middle class
The rise of middle-class families in a country means that more people are able to afford luxury goods, increasing the opportunity of trade with India in more sectors. Things like consumer electronics, media and brand name products are a few of the hottest market segments in Indian import culture, and this India trading trend will continue. India's middle class is not small. The estimate number of middle-class residents in the north is around 250 million. Therefore, the potential for bringing consumer staples to the Indian shores is massive.
Surging youth population
The young population in India are already dictating many of the household purchases in India, but as they grow up and begin to enter the full-time workforce, the percentage of purchases by Indian youth is only going to increase. Getting a foothold in the Indian youth market now for any brands expanding into new markets and trading with India are great strategies for exponential market growth potential.
Skilled, low cost workers and improving labor environment
Due to its massive and ever-growing population, India boasts an ample supply of skiller workers. They possess the industry know-how, and are well equipped to work in the field. What not ot be overlooked, at the same time, is the improving labor environment, where a special package has recently been apporoved by the Union Cabinet to encourage employment generation in the apparel and textile sectors. Better work condition and higher incentive can drive more people especially women into the labor market, benefiting businesses that look to expand in India.
Cost of labor is still low, especially compared to China. Nevertheless, as more and more businesses start to trade with India, the labor wage will increase and their willingness and ability to work for substantially lower wages than US and UK laborers will begin to wane. The present moment is the best time to capitalize on this rare potential for retaining well-educated and skillful workers who can speak English but complete tasks for lower wages.
Organized capital markets and banking networks
Plenty of countries have workers that are willing to work for lower wages and some of these nations have sizable youth populations who are pretty fluent in English. However, not many of these nations also have well-developed banking and regulatory systems in place that could nicely trade with US and European industry. India is attractive in their structural capacity for taking on global trading relationships without much undue effort or bottlenecks.
For businesses looking for a way to shake things up in the sourcing of products or in the development of new product sales channels, India is one of the best country to trade with. With the surging youth population in India and the explosion of new middle class, many types of products and services can be sold in India. Therefore, this opens a whole new massive market. If selling products in India isn't a natural cultural fit for a given brand, off-shoring some of a company's labor to India can be a smart fiscal choice. The benefits of trading with India aren't limited to these few most intuitive aspects, but a more encompassing and wide-reaching than one might naturally think. For comprehensive information of trading in India, please visit our Trade Guide