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Why are other countries looking to do trade deals with India?

May 26, 2017 | Emerging Trends Advisors

When you think about countries that are performing heroically on the world economic stage, India is one of those that immediately springs to mind. Having risen from almost nowhere a few decades ago India has become a major player with some even describing it as an economic superpower. Other countries are looking to build trade relations and trade links with India so this is testament to how far the country has developed. So, what make India so attractive to other countries, and why are they so desperate to deals?

The most obvious reason is because India is so successful and has a rapidly growing economy and other countries can see opportunities opening for them. To give you a true indication of how successful India has become you only have to look at the number of billionaires that it now has. Since 2010, the country has created a new billionaire each month and the country now has the fourth most billionaires in the world, coming in behind the US, China and Germany but catching up all the time. This gives a true picture of how the country is expanding and growing, so is it really that surprising that other countries want to strike deals?


India is experiencing a start-up boom and indeed this is the area that many of the new billionaires are coming from. Of all the billionaires in India, 69% of them are self-made and the country is now the third largest country globally for tech start-up companies. Naturally, these start-up companies cover a range of different industries but perhaps the most notable that the country is challenging some so the more established countries in the tech sector. Technology is often an area that countries look to build allegiances not to mention private companies looking to do the same.

When it comes to commercial investment from business there are plenty of takers. Japan’s Softbank and Taiwanese company Foxconn are committed to investing $20 billion dollars in India. Energy giant EDF is another company looking to invest in the country, already committing to invest $2 billion but this is mainly in the renewal energy sector. This is very interesting and it shows India’s willingness to co-operate with other countries. India is targeting using 60% non-fossil fuels by 2027, exceeding the Paris Climate Agreement targets by 20%.

Countries always want to do deals with countries that are willing to co-operate and are successful. India has consistently shown a willingness to work with other countries. Britain for example, a country with strong links to India and who have just voted to exit the European Union are very keen to forge stronger business links between the two countries. Certainly, there are obvious gains for the UK but India also has plenty to gain and established links will undoubtedly help the country to have a greater influence on the world stage – something that they are looking to do without a shadow of doubt.

So, if more countries look to do deals with India, will private investors start to follow too? The answer is ‘yes’ and they are doing already. India is very keen to encourage overseas investment and is reaping the rewards of doing just that. It is largely big business that is looking to invest directly in India at the present time but individuals are gaining more and more of an interest. Businesses seem to offer the greatest attraction presently but it surely can’t be long before private investors start showing a genuine interest in the real estate sector. The opportunities are certainly there and there are huge sums of money to be made.

India has come a long way in a very short time however the country looks to be doing things in a very stable way. They are building links with other countries so it can’t be long before individuals start to show even more interest that what they are doing now. The opportunities are out there and it won’t be long before others start to realise that.

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