With a population of 1.42 billion people, a GDP of $3.4 trillion, and a fast-growing economy, India is a major foreign market for most U.S. industries. In 2023, North Dakota exported a total of $12.37 million in goods to India, making it the 22nd largest export market for our state. But with economists predicting India will surpass Japan and Germany by the early 2030s to become the world’s third-largest economy, we may see the country play a larger role in our international trade operations.
The NDTO’s new “Finding the Right Fit” series will highlight the trade and business opportunities of a different country each month. In this edition, we’ll cover India’s impressive profitability, expansion, and how an export partnership could benefit your business.
* All statistics and information used in the “Finding the Right Fit” series is available through various online programs made accessible through an NDTO membership. To become a member, please contact info@ndto.com or give us a call at (701) 231-4323.
Markets & Profitability
North Dakota’s top exports to India in 2023 included industrial machinery, electric machinery, edible vegetables, medical instruments, and a small range of other products. However, the entire United States’—whose exports to India accounted for $40.12 billion—covered a broader array of industries: mineral fuel, pearls and/or precious stones and metals, aircraft and spacecraft, etc.
India’s needs are vast. In many areas, like agriculture and information technology, they can provide for themselves and export abroad. But there are still a number of goods and services lacking a strong domestic supply. Which means you have a good chance of finding a partner willing to invest in importing your products. Given the right market, the demand and consumer rate of your product could skyrocket.
In recent years, the services sector has become increasingly more important to India’s economy. More and more of the population is finding employment in insurance, tourism, and financial services. If your business’s expertise fits within these categories, or if you manufacture software or tools that aid employees, a partnership could be fruitful.
Expansion
The past decade has seen India becoming a trade powerhouse, and in another decade, they may be sitting near the top for largest global economy alongside the United States and China.
This economic growth has paved the way for innovation and investment. In fact, there are fantastic foreign investment opportunities in India, especially in the information technology and business outsourcing sectors. In terms of goods, there’s plenty of value to be found in their transportation equipment, cement, chemicals, and textiles industries.
India has left its mark on almost every continent, and continues to strengthen its ties to key global players. North Dakota will surely see an increase, however small, in both exports and imports to the country over the next few years.
The Ideal Partner
If you haven’t already deemed your business the right fit as an export partner to India, here are a few more points to make its case:
- Demographics
People aged 0-29 make up a majority of the population (about 70%). For comparison, only 38% of Americans are below the age of 29. This means more individuals will be preparing to enter the workforce and perhaps start new businesses within the next few years. It also means there’s a huge emerging audience for a number of products.
- Business Style
India has a very relaxed business style—and very personal. These things tend to lead to stronger negotiations and relationship ties. By the time a contract is drafted, you should know your new partners very well.
- Education
India is quickly becoming a hub for global education, especially in the information technology and environmental technology sectors. These fields are becoming increasingly popular and necessary to the functions of business across the world. They are also becoming a crucial part of exporting.
Is India a compatible market for you? More compatibility research is necessary to truly determine what the value and demand of your product in the country may be, but the above information is a great starting point.
As always, if you would like more information on exporting abroad or “Finding the Right Fit,” contact the NDTO!