DEİK EVALUATED INDIA FOR TURKISH INVESTORS
The fastest growing economy of the globe, the Indian economy, contributes tremendously to the global economy with its positive acceleration. According to the report "Opportunity Analysis in India", which was prepared jointly with KPMG Turkey and DEİK, India's GDP will reach 3.4 trillion US dollar by 2020 and 7 trillion US dollar by 2025. India is expected to attract billion dollars of new investments over the next 5 years, making it a center of attention.
The report claims that in order to develop economic relations between India and Turkey, Turkey needs to play an active role in manufacturing industry and investment projects in India, to follow closely the developments in the transportation sector to set alternative routes, to contribute to the education infrastructure and to carry out joint research programs in the field of science and technology.
The Indian government wants to make India one of the world's largest manufacturing center with "Make in India" program and aims to provide employment for 100 million people in the manufacturing sector. In line with the program, machine, automotive, textile and ready-to-wear, food, ceramics, electronic devices, construction, jewelry and furniture sectors hold great potential for investment. The report recommends taking active roles in the manufacturing and investment projects.
The Report draws attention to the developments in the field of transportation, stating that India is searching for an alternative trade route to its Mumbai-Hamburg-Russia Transportation Corridor. As a result, in order to exploit the opportunity, Turkish investors should pay close attention to the alternative trade route i.e. the ECO Freight Project covering Istanbul-Tehran-Islamabad route and they should try hard to bring this project to life.
Route. Furthermore, the Report points out the ECO Freight Project
In terms of education, infrastructure needs to be prepared to attract Indian students to Turkish universities, joint research activities should be conducted in the fields of science and technology.
DEİK/Turkey-Asia Pacific Business Councils Coordinator Chairman Murat Kolbaşı, evaluated Indian's economic market, "The next phase of India's growth will be faster in the urban and rural areas. It is projected that 68 cities' population will exceed 1 million by 2030. The new and fast growing regions in the gigantic geography hold great opportunities to reach millions and increase penetration. The increasing revenues and familiarity with the Western tradition will be a turning point in the commodity and service sectors. It is expected that this trend will shift consumer consumption in the near future. According to the analyses of some independent consulting groups, the main spending items will continue to be food, housing, durable goods and communication devices by 2020. The fastest growing spending items will be personal care, debt repayment, vacation and social events (weddings and parties) by 2020."
KPMG's Consulting Division President Hande Şenova drew attention to India's growth figures in 2015-16 fiscal year and stated "In the report prepared jointly by KPMG and DEİK, we provided information regarding Indian economy from the perspective of the investors. We think that the Report will contribute investors' strategy. Increasing investments in India show the confidence to India and Indian government tries hard to remove bureaucratic obstacles. India is a giant that did not fulfill its full potential. The recent political and economic reforms enable the power in this country. Based on the current data, we can see the light in the future. India's FDI grew by 29% reaching 40 billion US Dollar in 2015-16 fiscal year. Over the next 5 years, the investment will reach hundreds of billions of US dollars"
In the report, prepared jointly by DEİK and KPMG Turkey, Smart Cities Project in India will require additional 110 million housing by 2022, 400,000 internet access point by 2019. Clean India Mission project has a renewable energy target of 175 GW by 2020 and India is expected to be the world's third largest construction market by 2020.