Bilateral trade between India and the United States is growing by leaps and bounds. India’s trade with the U.S. reached $100 billion last year and has a potential to grow to $1 trillion. Businesses are creating value, wealth and thousands of jobs every year, including here in Atlanta.
In 2007, Novelis Inc., an Atlanta-based global aluminum company, was acquired by India’s Hindalco Industries for $6 billion. In May 2011, Novelis announced the hiring of nearly 150 scientists and technologists for its research and development center in Kennesaw.
In last five years or so, several leading IT and technology companies like TCS, Infosys, Wipro and NIIT have created jobs and have had a positive impact on Atlanta’s economy. These companies are working to narrow the skills gap, a problem that often leaves local businesses without talent.
The USA-India Business Summit and Georgia Tech Global Business Forum, set for Sept. 11-12 at the Georgia Tech Historic Academy of Medicine, brings together parties interested in the growth of emerging markets, specifically India. The summit is the largest conference in the Southeast to promote productive business relations between the United States and India. Its objective: Grow a sustainable nexus of business relationships in life science, agribusiness, health information technology and new media.
India’s story is one of opportunity and continuous growth. The country’s economy has the potential to be 40 times bigger by 2050 than it was in 2000. Its economy today is still growing faster than most countries. Keen investors are taking advantage of the moment. India’s ratio of debt to its gross domestic product (GDP) is stable; India’s growth is healthy even by East Asia’s high standards.
Despite the global economic slowdown, U.S. and other multinationals remain sold on India and are deepening and expanding their market penetration. For example, Unilever, a multinational consumer goods company, recently offered a $5 billion buyout of minority shareholders in its India unit. A full range of U.S. firms with advanced products in the technological and commercial sectors are entering the Indian market for the first time. Other firms increasingly view India as the top anchor market for their services and products.
The Indian health care industry is experiencing a rapid transformation. According to the World Health Report, India spends about 5.5 percent of its GDP on the health care sector. About 50 percent is spent on curative and primary care, and another 40 percent, on secondary care, including medical specialists in major hospitals with expensive diagnostic equipment. The Indian health care market is estimated to be valued at $70 billion. Informational technologies provide the solutions to this fast-changing market.
By 2020, India is on track to grow its workforce by 140 million, the equivalent population of the four most populous markets in the European Union. While such figures represented challenges, they undeniably represent one of the greatest opportunities in the world economy. The right time in India is now.
Ani Agnihotri is chairman of the USA India Business Summit and founder of USA India Business and Research Center, a management consulting firm.
