Atradius publishes new country report on India
Leading trade credit insurer Atradius has published an in-depth country report on India.
The report analyses economic performance and looks at the trading environment for overseas companies exporting to India.
Atradius, which has its UK headquarters in Cardiff, facilitates both domestic and international trade by protecting companies from the risks of B2B trade and holds real-time business intelligence on 100 million companies.
Key findings from the new country report, reveals:
– The internal economy is improving: GDP rose by 6% in 2014 which although positive was below potential due mainly to India’s poor track record on structural economic reform which has created an “inadequate business environment”. However, inflation is falling and with planned reforms of the financial sector a marked improvement in the economy is anticipated.
– The rupee is recovering: In 2013, the rupee experienced a sharp depreciation in reaction to the anticipated tapering by the US Federal Reserve. However, India has now won back the confidence of the international financial markets and depreciation has been halted.
– Growth for 2015: Economic growth for 2015 is expected to increase again to 6.5% with the long-term potential growth rate as high as 9% . However, while the new government is committed to reform, the full potential at 9% rate will be a challenge without the implementation of more radical reforms tackling the fiscal deficit.
– Atradius has a mixed outlook on the performance of India’s industries: Construction and Construction Materials are given a ‘poor’ outlook from Atradius. However, other sectors are expected to perform more positively with a ‘good’ outlook indicated for a number of key sectors including: Chemicals, Food, Paper and Services.
– Despite some shortcomings, India remains a market of significant size and with high growth potential: With a burgeoning middle-class population in excess of 70million creating demand for consumer goods, this is a market that businesses cannot afford to ignore.
