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Division
of Investment and Export
PO Box 7970
Madison, WI 53707-7970
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Vol.
8 #4, March 2009
India Looking Good
 On
March 2 the New York Times reported that “While most of the world
grapples with a crippling financial crisis and a recession, optimism
reigns in much of India as its economy continues to grow.
India’s trillion-dollar economy remains a relative bright spot,
some say, in part because the country’s bureaucracy and its
protectionist polices have kept it insulated from the fallout of the
global downturn.”
Prior to the current economic crisis, many businesses were looking to
India to follow China to become the new booming market.
India’s recent growth was not tied to exports as much as that of
China, and the country has a more well-developed domestic demand
component. India’s youthful population, domestic demand,
and entrepreneurial culture are helping to propel the economy
forward. India’s growth has been trimmed in the last year,
but not as precipitously as that of other countries. On February
27 the Indian government reported that the country’s economy grew
by only 5.3 percent in the fourth quarter of 2008, down from 7.6
percent in 2007. That compares to the United States where gross
domestic product for the end of the year had contracted at an
annualized rate of 6.2 percent, and Japan which recently reported that
its economy shrank at an annual rate of 12.7 percent.
India’s continuing need for infrastructure improvement creates
significant opportunities for Wisconsin exporters with regards to
capital equipment. Indian firms have been actively expanding
their international scope in recent years and are seeking to compete on
a global level. In order to achieve world-class status, they have
been acquiring technology and equipment from abroad and have begun
making investments in other countries.
In 2008, India was the #20 export destination for Wisconsin with
purchases of $241 million. That was 10.8 percent above the
figures for 2007. Ten years ago India ranked #32, buying $37.8
million worth of products.
While not free of problems - inadequate infrastructure, reputation for
high levels of government red tape, and security concerns in light of
the terrorist attacks in Mumbai in November – India may be one of
the bright spots for Wisconsin exporters in the near
future.
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