India is a country of 1.2 billion people, second only in population to China’s 1.3 billion.
From a business perspective, India’s rising middle class is eager to embrace new technology and products.
With a projected growth rate of 5 percent, it stands out as one of the most promising markets in sectors such as agriculture, engineering goods, consumer goods, pharmaceuticals, textiles and telecom, among others.
And, with the Indian Prime Minister pushing for up to $1 trillion in much-needed infrastructure improvements, the future of India as a trading partner has never been better.
That was the message that came through loud and clear Tuesday at the India Supply Chain: Markets and Opportunities conference at the Hyatt Regency Savannah.
The conference, which began Monday with tours and an overview of the port, wrapped up Tuesday with speakers and panel sessions designed to help area logistics companies, exporters and others learn more about tapping the potential of this increasingly significant market.
“With the United States representing only 11 percent of all business coming into India, there is tremendous opportunity for growth,” said Cliff Pyron, chief commercial officer for the Georgia Ports Authority.
Although India represents huge possibilities, there are also challenges, Pyron said.
For more than six years, India has formally banned imports of certain agricultural products from the U.S., reportedly due to concerns over avian influenza, despite the fact that the U.S. has not had an outbreak of the disease in nearly 10 years.
Last year, the United States appealed to the World Trade Organization to facilitate discussions on removing the ban, which includes poultry and chicken eggs.
That process is ongoing.
“I feel we’re making real progress and hope we will see this ban lifted sooner rather than later,” said Donnie Smith, director of the Georgia Center of Innovation for Argibusiness in Tifton.
Ajit Kumar, consul general of India in Atlanta and a keynote speaker for the conference, agreed.
“We are a country of more than a billion people, and we like poultry,” he said. “We would like to do business with the United States, and we are working with our American counterparts to see more poultry imports from the U.S. — and the state of Georgia — coming into India.
“Efforts are now under way to find the best way to make this happen.”
Poultry exports to India would represent a $300 million annual industry for the United States.
Even without poultry, India is already a significant U.S. trading partner at $100 billion a year.
“India is one of the fastest growing markets for the United States and for Georgia in particular,” wrote GPA executive director Curtis Foltz in a message to conference attendees.
“Georgia’s ports lead the Southeast in trade with India, and we expect this partnership to grow as more Suez services cone on line.”
Savannah already provides service to all major Indian ports, with trade growing exponentially in the four years between fiscal 2007 and fiscal 2011. During that time, GPA exports to India grew by 497 percent, while imports from India to Savannah grew by 236 percent, Foltz said.
In her keynote, Judy Reinke, with the U.S. Commercial Service in New Delhi, India, told the group that India represents “incredible opportunities” for trade.
Acknowledging a “mountain of red tape” for outside companies hoping to do business in India, she urged those companies to come to her organization to be matched with a partner in India to walk them through the process.
“That’s what we do — serve small- and mid-sized U.S. companies hoping to sell products in other countries,” she said.
While India is growing by consumer demand, its infrastructure hasn’t caught up, she said.
“The supply chain is still fragmented and disoriented, but that issue is being aggressively addressed,” Reinke said. “Where many see issues, we see opportunities.
“Those countries that recognize these opportunities and take advantage of them will be the winners.”
INDIA BY THE NUMBERS
• 1.2 billion people
• 20 languages (English is the language of business)
• 900 million active cellphone users (three for every U.S. citizen)
• 50 percent of Indians are under age 25
• In 2020, average age will be 29; in China it will be 47
• $100 billion — India’s trade with the U.S.
• $1 trillion — India’s planned infrastructure improvements
• 200 percent — projected growth in cargo growth in next seven years