India and China – a simple comparison

The Indian economy is expected to grow by 7.3% in the current fiscal year, which ends in March.

China is expected to grow by 2%.

Population of China is 1.4 billion (approx), ageing and declining.

Population of India is 1.4 billion (approx), young and growing.

Indian economy is driven by supplying local demand as the youthful population and middle class growth increase demand.

Chinese economic growth has largely been driven by making and exporting.

India as a domestic demand-driven economy – is less sensitive to global downturns.

China is an export driven economy – highly sensitive to global downturns.

And we have not even got onto world’s largest democracy, innovative driven, attracting and welcoming western investment and more…

Compare the two – what do you think?

Read the best short summary of why India is the bright spot economically

This is one of the best summaries of why India should be on your business and trade radar.

My good friend Hareesh Tibrewala provides the great summary – he is the Author of ‘If I Had To Do It Again’, a Social Media Strategist and Internet Entrepreneur – currently Joint CEO of Mirum India.  

“Right now the Indian economy seems like the brightest spot among all large economies.

“One one hand, the whole of Europe is suffering the brunt of the Ukraine war. And irrespective of sanctions against Russia, and who is winning or losing the war, the brunt is actually being faced by Europe in form of inflation and energy issues.

“On the other hand, the US seems to be struggling to come out of Covid. There are just no people anywhere to fill in the job vacancies. Every shop or outlet has “Hiring” signs in their window. And salary levels, even for minimum wage kind of jobs seems to have increased dramatically.

“And finally China, who was powering the world economy for the past few decades seems to be floundering thanks to zero-covid policy and an unprecendented drought.

“Overall the APAC region, and specifically India, seem to be comparatively doing much better and seem stable.”

Thanks Hareesh – well said!

India agricultural, processed food products exports up 30% to US$ 9.6 billion in April-July

INTO INDIA has written regularly on agribusiness growth in India – and the opportunities this presents. The story is gathering pace…

India’s exports of processed food and agricultural products increased by 30% to US$ 9.6 billion from April-July of this fiscal year. Fruit and vegetable exports increased by 4% during the time period, according to data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S).

According to a statement released by the Ministry of Commerce & Industry, an export goal of US$ 23.56 billion has been set for the basket of agricultural and processed food goods for 2022–2023.

The first four months of the current fiscal saw a growth of 61.91% in the export of dairy products, reaching US$ 247 million. Basmati rice exports climbed by 29.13%, rising from US$ 1.21 billion in April–July 2021 to US$ 1.56 billion in April–July 2022. Non-Basmati rice exports increased by 9.24% to US$ 2.08 billion in the same time period.

There is a lot happening in the agriculture sector in India – time for you to upgrade your India engagement strategy?

Read more here:

https://www.livemint.com/economy/indias-agricultural-and-processed-food-products-exports-up-by-30-to-9-598-mn-11662993250147.html

Putin, Xi and Modi likely meeting at the SCO starting today – is it a challenge to the QUAD?

India has always been skilled at dealing with both sides of diplomatic arguments – and it has an inclination towards “multilateral” and even “multi-bilateral” arrangements while western friends prefer “bilateral”.

So, it will be interesting to see what role Indian PM Modi will play at the 22nd leaders’ summit of the Shanghai Cooperation Organisation, to be held on 15–16 September – the first in-person gathering of the central Asian grouping since 2019.

While it might not make page one news, politicians and diplomats around the world will be closely watching this summit to be held in the ancient Uzbek Silk Road city Samarkand. Not only is it providing Xi Jinping and Vladimir Putin their first face-to-face meeting since the Russian invasion of Ukraine and declaration last year of a “forever partnership” – but it also comes after an interval where Indian PM Modi became closer and more impactful at the QUAD.

The members of SCO are China, India, Tajikistan, Russia, Kazakhstan, Kyrgyzstan, Pakistan, and Uzbekistan. Four Observer States were involved in granting full membership (Belarus, Iran, Afghanistan, and Mongolia) and six “Dialogue Partners” (Nepal, Armenia, Sri Lanka, Azerbaijan, Cambodia, and Turkey).

The QUAD nations are India, USA, Japan and Australia.

If he attends, Modi is expected to have meetings with Putin and Xi, giving a further glimpse as to how India is likely to map out its relationship with Eurasia’s great powers.

Modi has previously stood up to pressure from QUAD countries to condemn the Russian invasion of Ukraine, so as a leader he has a track record of combining non-confrontation with firm commitment to his own position.

Indian consumers are optimistic, even during Covid – McKinsey

A McKinsey survey has found that nearly three-quarters of India’s consumers are optimistic about economic recovery, and net intent to spend is growing and positive across many categories.

Omnichannel usage continues across the majority of categories.

Social-media influence is high, especially for Gen Z and millennials. More than 90 percent are engaging in social media and entertainment platforms.

There is an upward trend for new technology, such as crypto and augmented reality/virtual reality, and consumers intend to continue digital activities as the COVID-19 crisis subsides.

About 40 percent of consumers are engaging in out-of-home activities, especially among the vaccinated segment.

Most consumers have tried new shopping behaviours’ such as new retail outlets and new brands.

https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/survey-indian-consumer-sentiment-during-the-coronavirus-crisis

Find the right business partner in India

 One of the most frequent questions for INTO INDIA is how do we find the right business partner in India? Most case studies of Australian businesses succeeding in India reveal one key element – finding the right local partner.

What is the right local partner?

It is much more than someone who says “yes”. Too many have been frustrated in Indian market entry because they forged alliances with any and everyone who said “yes” – which means everyone they meet. India is a culture that cannot say no, so be wary of the yes answer.

The right partner is already active and successful in your field. They can show you their track record.

Your right partner will have connections among suppliers and customers, and will be keen to introduce you to them so you can form your own judgement.

In the collective culture of India, your right partner will be well connected in the various business chambers and will have good connections in government – central and state. This right partner will demonstrate these connections by organising meetings for you, rather than just saying “yes” we are connected.

Your right partner will be someone you double check with Austrade and with other reliable connections you have in India or Australia.

Your right partner could ultimately become an agent, a joint venture or more. They might just be a trusted individual who willingly offers to make connects for you – this freely opening doors does occur in India.

Your right partner might be a talented individual who you hire into your business. Or it might be a combination of external and internal. Patience will be your best friend as you make these choices.

Finally, your right partner will develop relationships for you – because in Indian culture relationships matter. Relationships first, business second is the path to long term business in India. Quick deals are just that – one transaction that might not lead to anything.

So, how are you going finding the right partner in India?
 

Online meetings present the challenge – how do I introduce myself?

Zoom, Teams and other online meetings are now part of our lives. In many of these meetings, you are called upon to introduce yourself. Maybe everyone is introducing themselves.

It can get the pulse raising and the mind in overdrive. What will I say? Where should I focus? Will they like me? Meanwhile, we are missing out on all the other interesting introductions happening.

The stress can be negative – or positive. Through practice, we can come to recognise stress when it arises and use it for good – ah, now, better concentration, sharper reflexes, and so on. In contrast, if we have a negative reaction to stress it can mess up our introduction – nervous, shaky voice, tongue-tied, rambling on….

So, what is the easiest way to introduce yourself?

Like all public communication, the secret is to keep it simple.

The simplest way to introduce yourself is in three parts (and this might mean just three sentences) – present, past and future. People love this approach – they recognise the structure, simplicity and like a note about the future.

A present-tense statement to introduce yourself: “Hi, I’m Stephen, and I’m a communication consultant and author. My current focus is mentoring and writing.”

Past tense might be just two or three points about your background and gives you credentials and credibility. An example: “My background is in corporate communication, and I have previously advised top 100 corporates and big four professional services firms.”

Future tense is all about projecting optimism and enthusiasm – two very likeable characteristics. In a meeting this should relate to the topic. “In the next 12 months I plan to do more writing towards a new book and meetings like this give me not only content, but the motivation to keep exploring”.

Simple? Present, past and future. Each can be as long or short as the occasion requires – but always err on the side of shorter. Trust me – you will gradually enjoy (and smile) while introducing yourself.