The general director of the Chamber of Spain, Inmaculada Riera, reiterates the institution's commitment to supporting Spanish companies in their entry into the Indian market

This figure represents a slight upward revision from the previous estimate in October, when growth of 6,3% was expected for fiscal year 2024.

The positive outlook for India They are based on the strength of domestic demand, driven by solid private consumption and increasing investment. Furthermore, the country benefits from an expanding working-age population and an ongoing program of structural reforms.

 

La general director of the Chamber of Spain, Inmaculada Riera, participated in the preparatory meeting of the Fgold of CEOs Spain-India, which brings together the main Spanish and Indian companies with the aim of promoting bilateral, commercial and economic relations between both countries. The CEO Forum is a bilateral consultation mechanism that offers business leaders the opportunity to discuss issues of mutual interest, especially how to strengthen economic and commercial ties and make recommendations to stakeholders. Governments of Spain and India.

 

In conversations with Foreign Companies, Inmaculada Riera has reiterated the commitment of the Chamber of Spain to work for the consolidation of the strategic alliance between Spain and India, accompanying the private sector and making the numerous opportunities that arise a reality.

 

What are the main economic trends in India in the short and medium term?

 

The Indian economy is experiencing a very relevant economic, industrial and technological transformation these years marked by the roadmap of the “Make in India”. In macroeconomic terms, India has remained one of the fastest growing countries in the world in recent years. By 2024, The IMF projects 6,5% growth for India, with numerous factors that work in their favor, such as the fact that they have a young and growing population (more than half of their 1.400 billion citizens are under 35 years of age); the increase in the middle class that generates greater demand for goods and services, or the significant investment in government infrastructure.

 

The changes are undeniable in the Indian economy especially in its industrial and energy policy. In this sense The energy transition is expected to have a notable impact on the Indian economy, creating new jobs and business opportunities because the country has committed to reducing its greenhouse gas emissions and achieving carbon neutrality by 2070. 

 

In the industrial framework, it is worth highlighting the opportunities that India offers the company as an alternative to relocating production. The country is committed to offering like-minded countries an optimal environment for production that guarantees supply, technological development and growth.

 

All of this reinforces not only the strategic positioning of India and its objective of leadership in the region but also the firm commitment by the Government of India to a new economic and industrial model that follows the roadmap set by “Make in India”.

 

How can the Spanish company take advantage of the role that India plays on the Global stage along with Spain's current international position?

 

For years now, the Spanish Chamber has identified India as a country of enormous interest for Spanish companies and as one of the priority markets to promote and support their internationalization both for what it represents as a country and for what it represents in the region. We firmly believe in the diversification of our internationalization towards new markets that offer very interesting opportunities, with great potential both in terms of trade and investment and in which the presence of Spanish companies has been minor. We are not only referring to India but also to the Asia-Pacific region.

 

In relation to the Indian market, the main areas of opportunity are focused on the infrastructure sector (transport and energy), construction machinery, environment, agricultural technology, automotive and components, as well as defense, pharmaceutical sector, health sector and tourism. All of them are sectors in which Spanish companies are leaders, providing undeniable technological added value and an international positioning of recognized prestige.

 

With bilateral trade in goods exceeding 6.000 billion euros, a growing volume of contracts and indirect investments by both parties and reinforced commercial, industrial and technological cooperation between Indian and Spanish companies, the opportunities for growth in our trade and investment are important and are accompanied by a more facilitating and attractive administrative framework for investment.

 

Another interesting axis of collaboration is in the joint opportunities for collaboration in third countries, taking advantage of synergies that may arise in other regions, such as Latin America.

 

 

What is India's role in the global economy?

 

India has in recent years been a very dynamic economy, it has become the fastest growing economies in the world and is playing an increasingly important role in the global economy.

 

India's GDP is the third largest in the world, according to the International Monetary Fund, and is expected to overtake Japan to become the world's second largest by 2030. 

 

India has become not only a regional industrial power in the Indo-Pacific zone, but a global player in the aforementioned sectors. All of this driven by a very attractive business ecosystem, a wide range of leading companies, a large and talented workforce and important economic policies of the Government. With initiatives like "Make in India", the country has not only achieved great integration in global value chains, but is also keeping pace in the global technology race.

 

The country is a major exporter, not just goods. The services sector is also growing rapidly and India is already a major center for financial services, information technology and other services.

 

In summary, India plays an increasingly important role in the global economy due to its size, its solid economic growth, its strength in technology and services, its agricultural production, its exports, its foreign investments and its position in international organizations. However, it faces important challenges that it is already addressing, such as energy, to ensure inclusive and sustainable growth.

 

From the Chamber of Spain, what factors do you consider that must be taken into account to enter the Indian market?

 

India is a country and a market with enormous possibilities, but it is a large, diverse and complex country, a very competitive and demanding market that still presents administrative complexity and bureaucracy that must be taken into account. We cannot forget the framework of the “Make in India” project that promotes the transformation and enhancement of the country's brand. On the other hand, it is true that many barriers are being removed but at this time in terms of exports and investment it is essential to know the regulatory framework and the administrative framework of the country India. Therefore, supporting companies, especially SMEs, in this entry into the Indian market is essential and the role of Commercial Offices and Chambers of Commerce goes in this direction of support.

 

In this sense, to enter the Indian market, Spanish companies must take into account some factors such as the following:

- the new “Make in India” framework

- the size and diversity of the market. India is the second most populous country in the world, making it a huge market with huge consumption potential. Its young and growing population provides a very favorable demographic base for economic development.

- bureaucracy and regulation. The country has a complex bureaucratic system and strict regulation. Spanish companies must familiarize themselves with these regulations before entering the Indian market.

- the competition. It is an increasingly competitive market, with the presence of local and international companies.

- Solid economic growth: India has experienced steady economic growth in recent decades, with rates often exceeding 7% annually. Although growth rates may fluctuate, India is expected to remain one of the fastest growing economies globally. This growth has been driven by sectors such as information technology, agriculture, financial services and manufacturing.

- India's leadership in the region and the opportunities derived from it for Spanish companies;

 

The Spanish Chamber of Commerce is deeply committed to el support for Spanish companies, which already have a presence in India or want to enter in that market to take advantage of the many opportunities that arise. Within the framework of this commitment we have different instruments at the service of companies and we promote different programs for SMEs financed with Structural Funds aimed at training and information actions in this market, also promoting different trade missions to this country.

 

One of our most valuable instruments is the CEOS Forum, a joint initiative of the two governments that was launched in 2016, with the support of business representatives in both countries, as a bilateral consultation mechanism that offers business leaders the possibility of learning about issues of mutual interest, especially the way to strengthen economic and commercial ties and make recommendations to the Governments of Spain and India. 

 

On the Indian side, the permanent secretariat falls to the Federation of Indian Chambers (FICCI), and for the Spanish in the Chamber of Commerce of Spain in collaboration with the CEOE.

 

During the last technical meetings held by the members of the CEO Forum, it has been determined to establish four working groups that will allow companies from both countries to develop joint roadmaps, facilitate the exchange of information and identify areas of mutual collaboration that will serve as a channel to address trade obstacles and barriers between both countries. All of this will serve to promote mutual understanding and long-term cooperation between the public and private sectors of Spain and India. 

 

The sectors that have been established for the working groups are: 

-Infrastructure

-Defense and security, aerospace and naval

-Energy, water and environment

-Automotive industries

 

There are also other institutional mechanisms at the service of Spanish companies such as bilateral trade, investment and tax treaties; the Intergovernmental Economic Commission; the Spain – India Council Foundation, and the Indo-Spanish Chamber of Commerce. 

 

The latter was created in 2016 and acts as an official nuclear point, providing links between the Indian and Spanish business communities, covering the entire Indian territory wherever necessary.

 

The dialogue of the Spanish Chamber of Commerce with the Indian Institutions is fundamental as a facilitator and promoter of our bilateral relations and therefore driver of greater investment and growth of our exports in a critical country within the framework of trade and the world economy; a market that Spanish companies can and must take advantage of.