At a time when the world economy is likely to shrink for the first time in six decades, India is moving in the other direction.
The next wave of economic growth in India will come from the so-called second tier Cities. This is because big cities like Mumbai, Calcutta, N
ew Delhi, Chennai, Bangalore etc known to the outside world have taken the first wave of investments and achieved phenomenal growth so much so that there is a need to divert the concentration of growth to smaller cities for a perfect balance of growth, opportunities and an easy access to the basic infrastructure. Their opportunities are understood and in a relatively advanced stage of development. Beyond the 'big cities' lies a far bigger opportunity. The Government of India has identified about twenty second tier cities to work in this direction to achieve the next wave of planned growth of 8 to 9% of GDP for the years ahead.At a time when the world economy is likely to shrink for the first time in six decades, India is moving in the other direction, expecting 6 to 7 percent growth in its gross domestic product this year.
WASITRAC has been a strong advocate for the promotion of the Indian state of Orissa as a trade partner to the State of Washington. Besides having a second tier city as its capital, the State of Orissa has lots of advantages for the State of Washington for establishing a Sister-State relationship with. Its geographical presence, its unexplored natural resources, very low cost of living, vast growth opportunities, a coastal line of 480 Kilometers and the deepest sea port in the nation at Dhamra, it is strategically located closest to the sea ports in the East Asian Countries (like China, South Korea, Vietnam and Japan) the Washington State have the sea trade with. It will also be a great opportunity for the Port of Seattle to explore the possibilities of establishing a sister port relationship with Dhamra or any other Ports. A joint collaboration for the Infrastructure developments along with the development of maritime activities and tourism along the Orissa Coast is also among the endless opportunities to be explored by the Washington State businesses.
Take for example the state of Orissa
Orissa is about to embark on an ambitious state-wide economic development program under the dynamic leadership of its Chief Minister Naveen Patnaik, one of the most progressive chief ministers in the nation. The State is perfectly positioned to benefit from a variety of on going and future infrastructure developments. Having one of the world's deepest natural sea ports, 480 km of coastal line and being located roughly in the middle of the Indian Eastern seaboard and close to the East Asian nations of China, Japan and Korea whom the State of Washington already has a sea trade with, Orissa is poised to offer the best return on investment (ROI) of any industry or entity currently open to foreign investment.
Some of the investment opportunities include:
* Architectural services
* Infrastructure Developments (sea ports and air port development, Container Depots)
* Telecommunications
* Power supply and management
* Sewer, water and garbage mgmt
* Clean Energy technologies
* Tourism & maritime activities
* Chemicals & Fertilizers
* Manufacturing: Food Processing; Packaging; Irrigation
* Health care services: Hospitals, Pharmaceuticals
* Educational Institutions Development
At a time when the world economy is likely to shrink for the first time in six decades, India is moving in the other direction, expecting 8 to 9 percent growth in its gross domestic product consistently for the next five to six years without any credit crunch and sub-prime crisis.
Opportunities for U.S. companies are especially strong in pharmaceuticals, engineering products, civil aviation and energy infrastructure, said Sibi George, counselor at the Embassy of India in Washington, D.C., who was also in Seattle.
That presents opportunities for Washington state as trade between the U.S. and India expands, officials from India's Ministry of Commerce told a Seattle business gathering Wednesday.
India is faring better than much of the world for a couple of reasons: Its financial sector has limited exposure to the failed subprime loans and subsequent credit tightening that devastated many banks. Moreover, its population, still about 60 percent rural, is a market onto itself served largely by domestic companies and beyond the shocks of globalization.
"The current global financial crisis has dampened world enthusiasm," and no country is immune, noted Anil Mukim, joint secretary in India's Ministry of Commerce. But demand from consumers in India continues to be robust.About a third of India's population is under 15, and the country has a growing middle class.
Foreign investors are responding, driving up investment in India to $24 billion from April 2008 to January 2009, a 65 percent increase from the same period a year earlier, Mukim said. Another factor in India's favor is a drop in commodity prices, which has reduced costs for Indian manufacturing companies and improved their profitability, Mukim added. Trade between India and the U.S. is up sharply in the past five years. Imports from India to the U.S. rose from $11.5 billion in 2003-04 to $20.7 billion in 2007-08.
U.S. exports to India rose from $5 billion in 2003-04 to $21 billion in 2007-08. The state's exports to India totaled more than $2.3 billion in 2008, though some trade barriers still exist in areas such as retail and agriculture.
Last year, for the first time, India registered a trade deficit with the U.S. "There cannot be more proof of our belief in free and fair trade" than that, Mukim said. He cautioned against protectionist policies, saying the Indian government was concerned with the "Buy American" clause in the U.S. economic-stimulus package and restrictions on H-1B visas.
Opportunities for U.S. companies are especially strong in pharmaceuticals, engineering products, civil aviation and energy infrastructure, said Sibi George, counselor at the Embassy of India in Washington, D.C., who was also in Seattle.
The world's second most populous country is taking on greater strategic importance to the U.S. not only in relation to Pakistan but also to Afghanistan and Central Asia, said Prof. Anand Yang, director of the Henry M. Jackson School of International Studies at the University of Washington.