The consolidation of a giant market and, at the same time, little explored by the overall global business system. Magic, culture, and lots of opportunities.

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Very few topics break the 'distant' vision that characterizes my professional practice, bringing a biased perspective... even those connected with affinities and expertise, or the ones dividing opinions and centralizing the Zeitgeist in restaurants or meeting rooms.

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Today I can happily say that talking about India is one of my favorite topics... and with a current 2023 where the subcontinent obtains 2/3 of the 'Chinese flags' (being the most populous country and with the highest economic growth in the world), the mega-businesses take their strategic plans towards a 'Tikka Masala' flavor, which, like the famous dish (always delicious with Naan and Raita), at first, for many, could be complex to digest, but over time can become essential.

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After several visits to their households to understand consumer habits, attend and give conferences and workshops, visit factories, advise local and multinational companies, and do fieldwork in Mumbai, Delhi, Chennai, and Bangalore, I certainly confirm that 1) it's the new global economy top destination, 2) its exorbitantly different culture has hidden common points with the West, and 3) outsiders have taken slight advantage of the 'Hindi' business environment.

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Let's start with the economic facts, which have not stopped creating a stir since the pandemic. According to IMF estimates, India is currently the fifth largest economy in the world in Nominal Terms (USD 3.737 trillion) and the third in Purchasing Power Parity (USD 13.033 trillion).

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And while after the pandemic, countries struggled with reactivation (and recovering from global supply chain collapse), during 2021, India had a booming 9% GDP growth, and from last year until 2027 (according to World Bank forecast), will oscillate between 6.5 and 7.5%, until becoming as the third largest world economy, surpassing Japan and Germany.

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And by 2050 will reach the second place with an economic system ten times larger than today... but how will they pursue it? For different experts, it is the conjunction of five facts building one of the best business environments worldwide:

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1. The sustained growth of the middle class and its access to consumption, projecting 475 million people in this segment by 2030 with broad access to microfinance (Brookings Institute).

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2. Extensive production of goods and services, creating an economy that, in many categories, sustains itself thanks to internal consumption. Remember that India is the largest dairy producer worldwide and the second in fruits and vegetables.

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3. Markets and investors' confidence based on being the largest democracy in the world, which for S&P, beyond current political confrontation between ethnic origin and country model, enables foreign investment.

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4. According to the World Bank, A high rate of young and active population, with an average age of 28.4 years in 2022.

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5. Technology development with more than 50,000 emerging companies and several incubators and accelerators in cities like Bangalore and Mumbai.

An economic growth context taking place in a unique culture code... this does not seem like the time to explain the obvious. Still, surely you have heard about India's language diversity, religious systems, ways of eating and ingredients, the Kama Sutra, social castes, dirt wrapped in marginality, spirituality in praesenti, cows walking from street to street, luxurious dresses and lounges, the Ayurvedic...

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And Indeed it is... making it so magical and impressive for Western visitors, evidencing four similarities in a second review:

• Closeness to religions and the profound belief in the power that exercises in people's life.

• The mother's central role as the home's nucleus, affection, and consumption.

• A paradoxical and contentious relationship with her colonialist past.

• The impressive inequality that goes from mansions to favelas in seconds.

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And finally, how much of this peculiar growth and potential comes from foreign investment? According to Indian Central Bank, the country's total FDI reached USD 887.76 billion between April 2000 and September 2022.

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About 26% arrived via the 'Mauritius Route' (the subcontinent's tax trade with the remote African island), followed by Singapore (23%), the USA (9%), the Netherlands (7%), Japan (6%), and the United Kingdom (5%). The United Arab Emirates, Germany, Cyprus, and the Cayman Islands accounted for 2% each. Key sectors include the service segment, computer software and hardware, telecommunications, trade, construction development, automobile, chemicals, and pharmaceuticals.

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Regulations for foreign capital arrival are friendly and allowed through automatic routes for most sectors. Government approval is required for foreign investors in areas such as telecommunications, media, pharmaceuticals, and insurance.

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Many businesses are not very close to an Indian possibility because it's far, unknown, or doesn't get the same attraction as selling in more developed currencies/markets. A 'Benjamin Franklin pursuing race' at all costs (can't judge); however, there seem to be many advantages in producing and bringing products and services to/from this area of the world.

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Every category is different, and every business has priorities. Still, I can tell you that every review about the world's future always shows that it will have a distinctive flavor… Like Chicken Tikka Masala with Naan and Raita. Time to look at new horizons and explore territories for your business.

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