New Foreign Investment in Indian Suppliers
In our past our articles, ET2C has lauded efforts by India Prime Minister Narendra Modi to reinvigorate the country’s stagnant economy. With a new budget and sweeping reforms, it is now obvious that Modi has moved beyond the rhetoric and is indeed actually providing tangible change for the Indian economy. With this, the 3rd largest economy in Asia is now piquing the interest of the most powerful global companies by inviting them into a lucrative and exciting market.
For one there is Jeff Bezos, CEO of e-commerce monolith Amazon.com, who was seen proudly holding a mock-up of a $2 billion cheque in tech capital Bangalore earlier this month. The company plans to launch an aggressive expansion plan in India to expand Amazon’s global reach. “I’m super excited” said Bezos, in a statement that is quite indicative of the mood in the country. India’s well known IT sector is thriving under Modi and many other firms and startups are feeding into this enthusiasm. Amazon’s investment may seem large, but in this market such a grand amount is absolutely necessary in order to compete with the other billion dollar figures that are being tauted by competitors.
Naturally, Modi’s fiscal efforts are having a direct effect on the manufacturing sector and Indian sourcing capabiliities as well. Orders for Indian vendors have increased over the past year as retailers and others are seeking to join in on the potential of a new Indian economy.
British department store Marks & Spencer’s, who has 60% of their sourcing operations already in India, are seeking to expand in the country. There is a similar story for IKEA, who sourced $450 million worth of products from India in 2013. They seek to more than double this figure by 2016 by closing at a near $1 billion bill for the Indian sourcing operations. This could possibly make the country be the largest sourcing point for the Swedish furniture giant, signaling a great deal of confidence in Indian vendors. Like Marks & Spencer’s, IKEA is also seeking to expand their retail presence in India by opening over two dozen locations in the country over the next ten years.
Surprisingly enough, the U.S. White House is also submitting sourcing orders for the President’s private transport. The cabins for the new line of ‘Marine One’ helicopters, the air transport for the US President’s exclusive use, will be made in India. The Indian aviation manufacturer ‘Tata Advanced Systems’ is responsible for constructing the airframes on behalf of American aerospace firm Sikorsky Aircraft. Eyeing the potential for the Indian market, Sikorsky is committed to investing into the country for the next 25 years and beyond.
Likewise, with our presence in Bangalore, ET2C also believes in the potential of this nascent but promising manufacturing market. We too have noticed the sprawling changes that Modi’s new government can offer and have already been able to benefit from reforms and new fiscal initiatives. Our company is currently expanding our India office accept more client orders, all while finding great manufacturing resources within the nation. By adding to our numerous relationships with suppliers in India, ET2C is committed to helping our clients benefit from the great products that Indian vendors can offer. Contact ET2C today to discuss the advantages of an Indian sourcing strategy.