India is one of the world's fastest growing economies, and one of Asia's giants. It is also the largest democracy in the world and with a rapidly growing population of more than 1.3 billion, India is expected to overtake China as the world's most populous nation within a decade. If there is a single serious long-term rival to China as an economic powerhouse in Asia, India is it. And all the signs are that India's rapid economic expansion will continue, making it an even more compelling option for Australian businesses looking to expand their operations into Asia. Consider some key facts:
India was the world’s sixth-largest economy in 2017, with gross domestic product (GDP) of just over USD 2.5 trillion
On the alternative measure of purchasing power parity, India is predicted to replace the United States as the world’s second-largest economy by 2050
Household incomes in India are steadily increasing, creating a burgeoning population of middle-class consumers that will reach 583 million in 2025
India is currently Australia's fifth largest trading partner and our fifth biggest export market. In 2017, we exported goods and services worth about AUD $20.16 billion to India, while our imports from India totalled just over AUD $7.2 billion. In an effort to further deepen trade links, the nations’ two governments began negotiating the Australia-India Comprehensive Economic Cooperation Agreement (CECA) in 2011. The negotiations are expected to conclude shortly, bringing to fruition another in a series of bilateral trade agreements between Australia and its key partners in the Asian region. The implementation of CECA with India is expected to make a major contribution to further growth in trade in goods and services, as well as investment. India’s vast geographical area and diverse regions present numerous market opportunities for Australian businesses. Differing levels of wealth and development across the country create the need to import a wide range of goods and services, including food, education, financial services and infrastructure. All signs point to strong and steady growth over the next decade, with a continuing explosion in the extent and range of business and investment opportunities.