In spite of the recent global financial downturn Beyond Business Connections continues to see significant business potential between Australia and India. Last year, India (& South Asia) was the fastest growing trade region for Australia.
Beyond Business Connections is well placed to take advantage of these opportunities with our office in India continuing to build its presence. Ms Rilka Macainsh, Country Vice President has been based in New Delhi since March 2008. Rilka is helping to facilitate opportunities between India and Australia – be it Indian companies wishing to access the Australian market or Australian companies wanting to enter India.
Australia has become India’s 5th trading partner in less than 10 years. This looks set to continue.
The Indian Union Budget, delivered in July 2009, has the Indian economy continuing to grow at around 9% per annum. The Government has increased its allocation of funds for road, rail and power as well as an 87% increase for water programs.
In terms of equity investment India is now seen as providing stable returns; it has been taken off the “political risk” list providing a strong positive signal to private investors.
Forthcoming opportunities:
· 2010 Commonwealth Games. Australian success already can be seen through the 2010 Commonwealth Games to be held in Delhi in October 2010. 26 Australian companies (as at July 09) have won 35 contracts worth over $42 million, with more companies bidding for new contracts.
· Infrastructure: mining, resources, building and construction. Strong prospects continue in these sectors in India. Private participation in infrastructure projects such as road construction, road operation, rail and ports is increasing.
· Green technologies. Australia is recognised for its clean, green image. The May 2009 Australian Federal Budget provided funding of over $4 billion for a suite of energy efficiency measures to reduce energy use and carbon pollution in homes, communities, business and industry. This provides an opportunity for Indian businesses across a range of sectors to work with Australian companies to source green technology and products that have a low environmental impact.
· Financial services sector. This sector looks set to increase with much interest in the areas of banking, insurance and superannuation. For example, in February 2009, the Institute of Chartered Accountants of India and CPA Australia Ltd signed a Mutual Recognition Agreement as regards qualification, training and the admittance of members through a bridging mechanism.
· Retail. With India’s strong push for tourism and demand for a better quality product from the Indian consumer there are opportunities in sectors such as food and beverage. In 2009 India reopened the market for Australian milk products; an important strategic shift for cheese and ice cream producers as India is the world’s largest dairy consumer; such products making up an important part of the daily diet especially for the vegetarian consumer.
