“India is the undisputed counterweight to growth giant China, and is highly attractive for the maritime industry”
The Indian economy has the second-fastest growth rate in the world. What are the factors that currently make the Indian economy so strong, and what part does the maritime industry have to play in this?
It is nearly 30 years since the liberalisation of the Indian economy, and India is still engaged in catching up with comparable developing countries and with itself. India will soon be the country with the largest population in the world, and today it already has by far the largest population of consumer age. Per capita income and consumption are relatively low, so there will inevitably be strong growth in the coming years. The young, ambitious people of India are not only eager to consume and to use the internet, but mostly they also have a multilingual background and a good technical education.
The maritime industry plays a major part in India’s economic growth. The coastline is 7,517 km long, and is geographically and strategically well placed along important international shipping routes. According to figures from the Indian Ministry of Shipping, India’s ports handle 95% of the import and export cargoes of the country in terms of quantity, and 70% in terms of value. So the capabilities of the ports play a key role in growing industrial output and developing the Indian economy as a whole. Prime Minister Modi places great hope in the maritime sector, describing it as India’s “engine of growth”. That is reflected in numerous projects and initiatives currently being moved forward by the Government.
What opportunities arise from the re-election of Prime Minister Modi in spring 2019 for internationally operating companies seeking a foothold in India?
The re-election of Modi and his governing party is a strong endorsement of their liberal economic policy. Internationally operating companies have attractive opportunities for growth thanks to the focus in government on improving infrastructure and modernising the country, explicitly welcoming and supporting foreign investors. India is the undisputed counterweight to growth giant China. That is why I definitely recommend that multinational companies should be engaged in India.
Please complete the following sentence: “India is an attractive investment and export market for the maritime industry because…”
“…India will soon be the country with the largest and youngest population worldwide, with global-minded people getting more and more closely networked in worldwide trading in goods and services, and the maritime economy plays a key role in mastering the resulting logistical challenges.”
About Indo-German Chamber of Commerce
AHK Indien or the Indo-German Chamber of Commerce (IGCC) was incorporated in 1956. With over 6000 members it is currently the largest AHK and the largest Chamber of Commerce in India. The Chamber has built up a strong local presence with its Head Office in Mumbai, branch offices in Delhi, Bengaluru, Kolkata, Chennai and Pune and a liaison office in Düsseldorf (Germany). Through its activities and services, it enhances the bilateral economic relations between India and Germany.
As a highly regarded and respected institution in India and Germany, with a qualified team and a number of key contacts and connections, the Indo-German Chamber of Commerce has played a major role in advancing corporate as well as cultural understanding between India and Germany, for over 60 years.