GIRT Hamburg and Bremen Chamber of Commerce invite to an insightful event on 21st Nov. 2013
Photo courtsey: Ministry of Rural Development, Govt. of India
Latest data suggest that India is again set on a growth track. Away from media limelight India’s hinterland has emerged as a key driver of economic growth. A recent report in the Economic Times (4th October 2013) said, “India Inc’s rural champions have probably never had it so good”. “At a time when the rest of India Inc is either groaning under heavy debt or struggling to sell in a sluggish market,” the report said, “companies with heavy rural focus are literally licking their lips in anticipation of a surge in demand in India’s villages and towns.” The news items also quoted a Deutsche Bank report saying that “years of above-average rainfall have increased rural prosperity and stock markets have responded by pushing up prices of companies with a strong rural presence.”
Hamburg (Oct. 8, 2013). The International Monetary Fund (IMF) released yesterday new World Economic Outlook (WEO), which sees slowdown in economic growth for most major econmies this year. On a positive note it expects the growth to resume an upward trend in the next year. The Executive Summary states:
„Global growth is in low gear, the drivers of activity are changing, and downside risks persist. China and a growing number of emerging market economies are coming off cyclical peaks. Their growth rates are projected to remain much above those of the advanced economies but below the elevated levels seen in recent years, for both cyclical and structural reasons.“
Between August 2012 and July 2013 Indian firms continued to scale up their investments in Germany. We could observe some significant investment projects in the reporting period. Seeking access to technology and patent portfolios is increasingly driving Indian investments in Germany even as Indian firms try to augment their in-house R&D capabilities in order to compete on innovation. On the flip side, Indian firms often struggle to integrate themselves in the local eco-system and to fully benefit from the national, regional, and sectoral innovation systems in Germany.
After consulting the General Consulate of India in Hamburg Germany and other local stakeholders, the Renewable Energy Hamburg Cluster Agency prepared the three day “India Hamburg Smart Cities und Renewable Energy Convention” in connection with the India Week Hamburg 2013 for you.
The “Hidden Champions” and the India Challenge: Market Entry and Cultivation Strategies for German “Mittelstand”
India has emerged as an important powerhouse of economic growth with global ramifications. An emerging and aspiring middle class, remarkable technological capabilities, integration in the global governance structures, and a supportive demographic structure coupled with the enormous need for modernization and upgrading of the country’s physical infrastructure provide an unparalleled avenue of economic growth for many coming decades. The “hidden champions” consisting of the renowned German “Mittelstand” (small and mid-sized firms) can participate in this growth story and help shape the Indian dream for “inclusive growth”. However, the long-term opportunities of engaging India seem too daunting for many a “hidden champion” owing to both real and perceived challenges in overcoming bureaucratic and market hurdles. At the same time, German firms would be ill-advised to ignore this market and leave the growth to their rivals from other (emerging market) multinationals.