INDIA WILL GROW STRONGER in the global market place, Indian multinational companies are growing and gaining market share all over the world. In Sweden, a little more than 25 companies, from pharmaceutical companies to car manufacturers, have been acquired by Indian companies.
– Indian companies are expanding abroad and we will see more of this development in the future, says Stefan Johansson, office manager at ITPS in New Delhi.
The global growth of Indian multinational companies is largely the result of simplification of regulations and liberalisation implemented in the beginning of the 90’s to strengthen domestic competitiveness.
INTEREST IN THE INDIAN market has grown in Sweden in recent years and last August, ITPS, the Swedish Institute for Growth Policy Studies, opened an office in New Delhi. Today, ITPS has six offices around the world, tracking and analyzing development and financial growth in each country.
Young population in an old culture: 50 percent of the Indian population is under 25 years old. In 2050, the countrie's GDP will be the third largest in the world. Photo: Jonas Rehnberg
STEFAN JONSSON HAS A positive view of India’s future development. He believes that if the present growth continues, India will be one of the five largest economies in the world around 2020-2030.
– India has a positive growth right now and, as opposed to China (with an older population to take care of) India has a younger population. In 20-25 years, India will reach its demographic peak, while China is there today, says Stefan Jonsson. This doesn’t mean that India’s economy automatically will chug on, he explains. Above all, there are two major challenges that the country needs to deal with to become successful.
– One major political challenge is to make sure that everybody fit for work gets a job. To implement this, the general educational level needs to increase. The educational system in general and the Primary School in particular, are not very good today, and many Indians need a primary education.
Getting domestic industrial production started is another key factor to be addressed to increase employment.
– In recent years, IT and other service sectors have represented a significant part of GNP growth in India, but to occupy everybody fit to work, the country needs an industrial sector.
In the 1920s the Englishmen bulit New Delhi as the capital
in "the crown jewel of the empire". India became independent
about 25 years later. Photo: Jonas Rehnberg SEVERAL MAJOR SWEDISH COMPANIES are already established in India, but there are several interesting markets for small and medium sized companies. As mentioned earlier, the IT and service sector is big, but there is also great need for companies specializing in environmental technology, ie water and air purification.
A GENERAL ADVICE from Stefan Jonsson if you want to become successful in India is to be prepared to reduce your prices. Quality is obviously an important factor, but to face Indian competition, you need to adapt to a price reduction.
– The trick is to offer good quality at a low price, like IKEA does.
Emelie Ring