The Indian trade boom
The past decade has seen remarkable growth in the trading relationship between India and Australia, with two-way trade in goods and services reaching $14.8 billion in financial year 2013-14.
The past decade has seen remarkable growth in the trading relationship between India and Australia, with two-way trade in goods and services reaching $14.8 billion in financial year 2013-14. With the Australia-India Comprehensive Economic Cooperation Agreement expected to be concluded in 2015, India’s youthful population, diversified economy and growth trajectory presents significant opportunity for Australian businesses, especially in agriculture, energy, manufacturing, mining and services.
- Capital: New Delhi
- Official languages: Hindi, English
- Population: 1.243 billion (2013)
- Trade with Australia in 2013-14: Two-way goods and services trade was $14.8 billion
- Trade rank: Australia’s 12th-largest trading partner
- GDP 2014: $US2.04 trillion*
- GDP growth 2014: 5.8%*
Source: DFAT/Austrade * IMF/EIU forecast
- Though a traditional society at heart, when it comes to business dealings most internationally accepted practices are widely followed in India. English is widely used in written and oral communication.
- Any entertaining of business partners or clients is mostly done outside of the home.
- In a business meeting using a formal manner of addressing a person, for example ‘Mr Smith’, is safer than using their first name.
- Exchange of business cards is expected at most business meetings.
- A multicultural and multi-religious society, India celebrates numerous religious and secular holidays. In certain parts of the country some of the religious occasions are celebrated for many days, such as Durga Puja in West Bengal and neighbouring states, and Ganesh Chaturthi in Maharashtra. Dussehra and Diwali are also widely celebrated. It’s advisable to avoid scheduling a meeting around major holidays.
In 2013-14, the value of Australian goods exported to India totalled $8.36 billion. Australia exported $2.01 billion in services to India in 2013-14, primarily in education.
Australia’s major goods and services exports to India, (2013-14)
Source: DFAT 2014
In 2013-14, goods imported to Australia from India totalled $2.86 billion. Furthermore, Australia imported $1.45 billion of Indian services in 2013-14.
Australia’s major imports from India (2013-14)
Source: DFAT 2014
There are a variety of resources to help Australian businesses enter the Indian market, including:
- Confederation of Indian Industry – cii.in
- Federation of Indian Chambers of Commerce and Industry − ficci.com
- The Associated Chambers of Commerce & Industry of India − assocham.org
- Foreign Investment Promotion Board − fipb.gov.in
- Central Board of Customs and Excise – customs.gov.in
- Ministry of Commerce and Industry − commerce.nic.in
- Ministry of Finance − finmin.nic.in
In January this year NAB participated in Australia Business Week in India (ABWI), a week-long roadshow designed to boost trade and investment between the two countries.
ABWI 2015 was Australia’s largest ever trade mission to India with around 450 delegates across 14 focus sectors visiting eight key cities including Mumbai, Delhi, Chandigarh and Kolkata. Australia’s Trade and Investment Minister Andrew Robb says: “There’s something special going on in India. The enormous vision of Prime Minister [Narendra] Modi has excited many people. Australia is looking forward to being a part of this very important period in India’s re-emergence as a significant power.”
This article was first published in Business View magazine (Winter 2015). For more articles and interactivity, download the iPad edition of Business View for free via our app, NAB Think.
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