I’ve written various thought leadership perspectives for this trade credit insurance company, from economic outlooks to regional trade focuses. This piece looked at the rise of India as a trading powerhouse.
[Copy extract]
It’s a question which many have asked in recent times, but what is the real truth? Does today’s India offer similar opportunities? What are the caveats, obstacles and risks you should be aware of? We asked our experts on the ground for their opinions.
Recent economic developments and geopolitical tensions, particularly between the US and China, have led to a shift in attention. Tit-for-tat tariffs and other trade restrictions are concerning governments, with the result that the US and leading European countries such as the UK, Germany and France are actively courting India. Companies want greater trading stability as well, so are looking to de-risk and diversify their supply chains.
So at all levels, there’s a fresh focus on India as a potentially more desirable trading partner – even “the new factory of the world”. To assess whether India can provide the future that so many seek, we talked to Meghna Nair, Manager Risk Services, Atradius India, and to Arun Soundarajan, Country Manager Atradius India. These are their conclusions.
What advantages does India offer as a trading partner?
To begin with, India offers many structural and demographic attractions. A population of 1.4 billion ensures plentiful skilled labour, combined with a relatively low cost base – and enticing consumer markets. In particular, there’s a growing number of educated and tech-oriented professionals, along with a growing middle class, many of whom speak good English.
The country has a long history of manufacturing and associated set-up capabilities. There is also strong government support for boosting industry and exports.
In particular, as Arun Soundarajan observes, “There is a tremendous logistics push by the government. Spending more on infrastructure and growth projects is key to developing resilient supply chains in India; and that’s what India is working towards.”
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