Which Indian states should you focus on for trade?

Choosing your best points of entry to India is one of your biggest decisions.

INTO INDIA has always advised that it is almost foolhardy to regard India as “1.4 billion customers” all in the one market, waiting eagerly for your product or service. Going there often enough, you will discover that far from being a single market, India is a “country of countries” – many differences, many cultures.

The biggest differences occur from state to state. India has 36 states and territories

Although Prime Minister Narendra Modi is a uniquely high-profile Prime Minister, it is the states who exercise a lot of the power.

States make key policy decisions in infrastructure development, land and labour, healthcare and transport, licensing and permitting. On top of this there are layer upon layer of cultural differences from region to region. It’s complicated.

The “big 6 states” with the highest GDP are Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat, Karnataka and West Bengal. But should they be your first choice?

States that are going to provide the warmest welcome and have the best ranking for ease of doing business are Kerala, Andhra Pradesh, Gujarat, Rajasthan, Tripura and Uttar Pradesh. Should they be your priority?

Wherever you choose, two things really make the difference in terms of successful market entry:

  • You need to be present, consistently available, interested and committed to this market
  • Your market entry will flourish on the foundation of your relationships (this can be tricky for Australian business which is remarkably transactional)

INTO INDIA is a big fan of the work of government agencies such as Austrade and the state trade offices in India. Talk to them – often.

Australia’s trade relations with India have grown well since our free trade agreement, and the potential for longer term growth is enormous.

For you, it might be just a question of where?

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Author: Stephen Manallack

Former President, Australia India Business Council, Victoria and Author, You Can Communicate; Riding the Elephant; Soft Skills for a Flat World (published by Tata McGraw-Hill INDIA); Communicating Your Personal Brand. Director, EastWest Academy Pty Ltd and Trainer/Speaker/Mentor in Leadership, Communication and Cross Cultural Communication. Passionate campaigner for closer western relations with India. Stephen Manallack is a specialist on “Doing Business with India” and advisor/trainer on “Cross-Cultural Understanding”. He is a Director of EastWest Academy Pty Ltd which provides strategic advice and counsel regarding business relations with India. A regular speaker in India on leadership and global communication, his most recent speaking tour included a speech to students of the elite Indian university, Amity University, in Noida. He also spoke at a major Federation of Indian Chambers of Commerce and Industry (FICCI) global summit, the PR Consultants Association of India in Delhi, the Symbiosis University in Pune and Cross-Cultural Training for Sundaram Business Services in Chennai. He has visited India on business missions on 10 occasions and led three major trade missions there. He provides cross-cultural training – Asia and the west.

2 thoughts on “Which Indian states should you focus on for trade?”

  1. Message Stephen, this is an excellent and realistic perspective on India. You are absolutely right that India is not one single market but a collection of highly diverse economic ecosystems shaped by state level policies, culture, infrastructure and business relationships. Karnataka, Gujarat, Maharashtra and Tamil Nadu alone each offer very different advantages for global investors. Your observation on long term presence and relationship building is especially valuable. Stephen and I go back many years, and I have always respected his practical understanding of India. Austrade and AIBX have also played an important role in deepening Australia India engagement. India is now Australia’s fifth largest trading partner with bilateral trade crossing US$54 billion.

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    1. Forgot to add to the above. Stephen is a true Indophile. Ramesh Kumar Nanjundaiya, Bengaluru INDIA

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