International Markets - Growth Opportunities for Indian SMEs
Indian Economy is Projected to Grow
By Disha Shetty
In spite of the world economy slowing down, Indian economy is projected to grow around 8 % this year. The SME sector plays a big role in keeping up with this momentum. Entrepreneurial spirit among the youth is on the rise with many spurning lucrative job offers in favour of establishing their own ventures.
The regions across the world are also looking to have increased trade relations with the Indian SME sector. In this context, all that an SME needs is the willingness to focus on product and service quality, to succeed in the international markets.
Rakesh Naidu, Director of Windsor Essex Economic Development Corporation, Canada says, "Our companies understand the potential of the market size in India. We are interested in partnering with Indian companies to offer their product and technology and gain access to the Indian market. Investment, joint ventures, collaboration, technology transfer, M&A opportunities are all being considered."
There are several sops on offer to those wishing to invest in newer regions. "Low taxes, utilities cost and competitive labour wages that Windsor Essex has to offer will make it very affordable for SMEs," adds Mr Naidu.
Sri Lanka is also looking to boost trade links with India. Sri Lanka's Consul General in India, Mrs Upekkha Samaratunga elaborates, "The Indian entrepreneurs will have the advantage of exporting the finished products from Sri Lanka to India under the Indo-Sri Lanka Free Trade Agreement. They would also be entitled to claim duty free status at the Indian customs entry point."
Market research imperative
However, not all SMEs would do well in the overseas markets. No matter which country they are seeking to expand, it is a given that the SME needs to do thorough research of business potential and competitiveness of their business model.
Mrs Samaratunga says, "The Indian SME sector is strong in designing, technology and manufacturing. The Sri Lanka entrepreneurs are keen on having JV projects in Sri Lanka in partnership with the Indian SMEs." She also asserted that the Indian SME sector has a vital role to play in the booming of the Indian economy.
While North America holds tremendous opportunities in advanced manufacturing and automotive sector, Sri Lanka offers business opportunities in rubber, food processing, and textile, among others.
The expansion will also require changes on the part of the Indian SME sector. Mr Naidu explains, "The Indian SME sector is in the process of evolution. The SMEs need to invest in improving productivity and quality."
(C)Bizxchange - India News