With a population of 1.2 billion and an annual growth rate in excess of 5 percent, India is a thriving market of 500 million middle-class consumers eager for U.S. products and services, John McCaslin told a group of interested business people Wednesday in Savannah.
McCaslin, minister counselor for commercial affairs at the U.S. Embassy in New Delhi, was a keynote speaker at the third annual India’s Supply Chain: Markets and Opportunities Conference at the Hyatt Regency Savannah.
Not surprisingly for a large country with explosive growth, India presents a lot of challenges for those looking to do business there, McCaslin said.
Among those are red tape at all levels of government, a highly fragmented trucking industry, a complex tax system, slow, poorly maintained and heavily congested roads and overloaded ports.
Add to that the fact that 70 percent of India’s population consists of rural consumers living in six million villages across the country and you get an inkling of what a company might face.
“But with those challenges come great opportunities for companies that are willing to invest the time and effort it takes to tap into this market,” McCaslin said.
Jamie McCurry, senior director of administration for Georgia Ports Authority, agreed.
“Savannah is the fastest growing and fourth-largest container port in the country, and India is one of the fastest growing markets for Savannah,” McCurry said.
Major imports from India include textiles, apparel, sheets and rugs, auto parts and arts and crafts items, McCurry said. Major exports are paper, wood pulp, logs, lumber and clay.
“These products complement major Georgia businesses, including the carpet and textile industry in north Georgia as well as the timber and mining industries in middle and south Georgia,” he said, adding that every shipping service connecting the U.S. East Coast and India calls on the Port of Savannah.
“In fact, three container services calling on our Garden City Terminal offer direct routes to India, and one of our mixed cargo services calling on Ocean Terminal also directly serves the Indian market,” he said.
In addition to imports and exports, McCaslin said, there are opportunities to be found in India’s logistics industry.
India’s supply chain has lagged behind the country’s economic growth, he said.
“Given that supply chains are the backbone, arteries and veins of an economy, it’s critical for India to improve its supply chain if it wants to continue to survive and expand.
“The Indian government and industry sector know this, and they are looking for products and solutions from all over the world.”
For example, he said, India’s trucking sector is very fragmented, with limited adoption of tracking and fleet management technology — a potential opportunity for U.S. businesses looking to do business in India.
Another example is India’s rail system and its Dedicated Freight Corridor plan, which will span about 2,000 miles.
“As this project comes to fruition, U.S. companies can find good opportunities for their products and technology in signaling, construction and more,” McCaslin said, adding that companies looking to explore the possibilities have access to help from the U.S. Commercial Service, including his office in India and the South Georgia U.S. Export Assistance Center in Savannah, headed by Todd Gerken.
“India will continue to grow as its young population enters the workforce and its huge economy modernizes and multiplies,” he said, urging businesses to make the effort to get in on the ground floor.