India: The Next Big Opportunity for Our Clients
By Gunjan Bagla
ProVisors Global Group member Robert L. Reis
managing director of Bristol Capital is bullish on the
potential of US-India trade. Reis believes that
renewable energy specifically solar wind and wasteto-
methane are among the markets with the greatest
potential for increasing exports to India by American
companies.
Exports to India? At a recent meeting of the Global
Group group leader emeritus David Nordella was
surprised by the opportunities presented by Reis
Sangeeta Gupta [GLO] and me. He said “Most
ProVisors members are not yet focused on India partly
because their clients—West Coast entrepreneurs and
executives—are unaware of the potential of trading
with this mammoth and rapidly growing economy. In fact few business sectors in California have had
experience in dealing with India.”
Since I make a living by helping American companies deal with India let me shed some light.
India became a trillion-dollar economy in 2007 and according to the CIA Fact Book if you measure size by
purchasing power only the economies of the United States China and Japan are larger. Southern California
companies such as Steven Spielberg’s Dreamworks SKG have benefited from inward investment. Anil
Ambani India’s second richest man invested 300 million via his Mumbai-based Reliance Entertainment to
help Spielberg take Dreamworks private. In Long Beach The Boeing Company anticipates a 3.5-billion
order from India’s Air Force for ten C-17 Globemaster Transport Aircraft. My own client Paramount
Farms Inc. the world’s largest grower of pistachios exports millions of pounds of California-grown nuts per
year to India.
President Obama’s National Export Initiative announced earlier this year calls for doubling American
exports in the next five years. At Amritt Inc we believe that in order for that to happen exports to India
would need to increase five-fold to about 80 billion annually. Given that India’s economy is growing at a
torrid 8.8 percent and that Indian appetite for American goods and services is growing far faster we consider
that an achievable target.
Therefore many of your clients need to think about opportunities in India. And they will need trusted
advisors such as you to guide them through the specifics of selling outsourcing investing hiring and
succeeding in this major new for them frontier.
Copyright 2010 by ProVisors. All rights reserved.
India is a market for services as well as goods and resources. American architects are in demand for India’s
iconic buildings. Perkins+Coe designed the world’s most expensive home a 900-million skyscraper on
Altamount Road in southern Mumbai. GKK Works also based in Aliso Viejo is designing the tallest office
building in the same city. In Jamnagar 3500 Bechtel engineers have worked on the world’s largest refinery
system. Bechtel of course is headquartered in San Francisco.
India is also the destination for offshore and outsourced services of all kinds. For example General Electric
has 5000 researchers and scientists working in Bangalore. They recently designed an innovative portable
handheld ultrasound machine meant for emerging countries and rural markets. The device can take and store
100 images and run all day on a single battery charge important for medical professionals in rural areas
where electricity is unreliable or absent.
Southern California is a hotbed for technology companies in many industries and most can benefit from the
talents of India’s engineers and scientists. SoCal IP Law Group’s Mark Goldstein [WLK6] tells me that a
client who until now has been sourcing his product in Thailand is in the process of switching to an Indian
company that will manufacture in India and soon in the US. The reasons are simple: “lower cost and better
quality.” The untapped potential of India is huge.
Most American business people are confused by India’s cacophony of 23 languages and its diverse religions
Hinduism Buddhism Sikhism and Jainism began in India and India is home to more Muslims than the
entire Middle East. The noisy democracy and hyperactive press in India also add to the chaos particularly
when compared to the relative calm of authoritarian China. While there are challenges to be overcome for
those of your clients who have an interest in fueling growth through international markets and resources it
would be a grave mistake to ignore India.
Gunjan Bagla [GLO] founder and managing director of Amritt Inc www.amritt.com is the author of
“Doing Business in 21st Century India” Hachette 2008 which “India Today” said “has everything one
needs to know to understand and succeed in the Indian market.” He blogs at www.theindiaexpert.com.
Last updated: July 9th, 2024
