India is expected to emerge as the third largest economy in the world by 2050, after China and the USA, according to economic experts and reports, and capitalising on this growth, the Dubai Export Development Corporation (EDC) has organised a seminar through the Dubai Export Academy on 'Exporting Opportunities in India'
More than 40 UAE companies attended the seminar in the presence of H.E. Sanjay Verma, Consul General of India. Among the speakers were A.J. Vidiaysagar, Chief Executive Officer of State Bank of India Dubai Branch, India's largest bank and Navin Kapoor, Managing Director, Xpertise Unlimited.
Vidyasagar presented the country's economic background while Kapoor spoke at length regarding the sectors best suited to meet the capabilities of Dubai's firms both in the manufacturing and service sectors.
Indian entrepreneurs are widely investing in expanding their manufacturing and service sector capabilities. Among the sectors that have witnessed growth in included consumer goods, high level technology, industrial products, healthcare, financial services and basic industries. In addition, to this both the private and government sectors in India have committed to large scale infrastructure projects that are aimed at developing much of the country.
"Dubai and India have a very long trading history going back many decades. Therefore, it's no surprise to find that India is currently Dubai's major trading partner with over 40% of the emirate's exports going to the country.
The economic and entrepreneurial dynamism in India opens the door to our firms not only to consider entering the market if they have not already done so, but also to extend their reach. In this regard the first international exhibition held by EDC was in India. Similarly, the first outward mission was also to the country in the ever important jewellery sector,"said Engineer Saed Al Awadi, Chief Executive Officer, EDC.
"Although, EDC and our members have been hugely successful in penetrating the Indian market we have seen that it is highly complex and full of challenges. The country is vast hence necessitating multiple marketing efforts that address differing regional opportunities, languages, cultural differences, and so on.
Gaining access to India's markets requires careful analysis of consumer preferences, existing sales channels, and changes in distribution and marketing practices, all of which are continually evolving. To help our members navigate these markets we are pleased today to have experienced speakers each of whom will provide us with a different aspect," added Alwadi.
Moreover, India is increasingly integrated to the global economy especially as a major centre for outsourcing activities primarily for high cost European firms. Factors that have led to India becoming a target export market is the opening up of its economy, including the rapid growth of the middle class segment which is a major attraction for exporters due to its increasing size and purchasing power.
The rate of urbanisation has increased as well leading to changes in lifestyles and consumer habits along with the ease of finance which has fuelled the current consumer boom. As a result of this, the demand for convenience foods, quality clothing, cars, electrical appliances, toys, communication and leisure goods has increased substantially and is expected to be growing even further.
Surprisingly, the change in consumer habits has also impacted the large rural sector who now also demands electrical appliances, communication equipments (largely mobile phones), quality clothing and leisure goods.
"Gaining access to India's markets requires careful analysis of consumer preferences, existing sales channels, and changes in distribution and marketing practices, all of which are continually evolving," Kapoor commented.