What are the opportunities for UK private businesses in India?

22 September 2017

On the 20 September 2017 our India Business Group hosted an event at the House of Commons to help UK private businesses understand how to invest in India and benefit from its fast growing economy.

Much of the discussion focussed on the opportunities and challenges India presents, particularly with regards to trade and entrepreneurs outside of India. The panel offered a variety of perspectives, with expert speakers talking about the financial landscape, cross-border navigation and the commercial and regulatory environment for investors outside of India.

The general sentiment was upbeat and panel member Sanjiv Chadha, Regional Head of State Bank of India (UK), spoke about the enormous growth prospects in the Indian market, particularly the Indian financial sector which is a competitive part of the economy.

IndiaHe also addressed to some of the current concerns such as; nonperforming assets, their impact on foreign entrepreneurs looking to set up business in India and how Indian banks can assist in and outside of India.

Praveen Bhambani, Private and Entrepreneurial Services Lead from PwC India, also expects significant growth for the Indian economy. As per one of our reports, Future of India: The Winning leap, he agreed that if India continues on its present growth course, it could have a US$5.6 trillion economy in 20 years.

To create a US$10 trillion economy, India will instead need to accelerate to a 9% compound annual growth rate over the next 20 years. To achieve this, a focus on creating new solutions will radically improve its economic and human development performance. UK private businesses could certainly play a part here. Praveen’s top tip for those considering expanding into India was that having the right product with the right pricing targeted to the Indian consumer market is crucial for success.  

Here are some of my other key takeaways from the event

The Indian economy is experiencing significant growth, leading to more business opportunities. As per the World Economic Forum in 2016-17 India’s competitiveness index ranked from 55 to 39. Innovation, Business Sophistication and Financial sector are one of the top three parameters.

  • Government reforms may momentarily stall the speedy growth, nevertheless India is still one of the leading economies globally.
  • Gradual increase in consumer class (population over 1billion) and disposable income, urbanisation clubbed with constant reforms are leading to new opportunities.
  • As per the PwC India Family Business Survey 2016 - 75% of Indian family businesses have grown in the last 12 months. This is higher than both the global average and the findings from our previous survey.

The UK is already the single largest G20 investor in India and Brexit presents further opportunities to strengthen the relationship between the two countries with new trading agreements.

India is a land of opportunities, but some UK private businesses are still daunted by the regulatory and cultural differences between the two countries and have concerns about where to begin doing business there.  

That’s where we can help. You can find out more about all the services our India Business Group and Private Business team offer here:

https://www.pwc.co.uk/india

https://www.pwc.co.uk/private-business-private-clients.html

Please do get in touch with me if you have any queries.

 

 

Dipan Shah

Dipan Shah | Partner, Head of London Private Business, PwC
Profile | Email | +44 (0) 20 7804 0685

 

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