What Can We Learn from India?

India is currently seeing a real economic boom. More and more companies and startups are setting up here. But why? Which trends is India setting right now? And what can German companies learn from the rising subcontinent?

India's rising relevance

In recent years, India has worked its way into the top ten largest economies in the world and is now the fifth-largest economy in the world. And that's not all: through its dynamic growth, India could soon push Germany off fourth place.

India has great relevance in the business world beyond its borders too. People of Indian descent hold top positions at many global corporations like Microsoft, PepsiCo, MasterCard or Adobe.

Startup ecosystem

India has grown into the third-largest startup ecosystem in the world. It also ranks second in innovation quality, with top spots for the quality of scientific publications and of its universities.

Around a quarter of startups are founded in Bangalore. That's why Bangalore also carries the nickname "India's Silicon Valley".

Various factors make Indian startups especially successful and thus fuel the startup culture. One influence is the fact that India has a large home market. There's also a high affinity for digital technology in the country, so the willingness to try new apps and digital offerings is exceptionally high. India's startups can also draw on a large pool of skilled workers. Finally, the Indian government has a strong interest in promoting the country's startup ecosystem and building working structures.

What makes India so special?

There are several aspects that set India apart from other emerging markets. For example, the country is a popular location for companies that want to make their supply chains independent of China. India's digitalization and its infrastructure boom also support the growth of several parts of the local stock market. On top of that, India's demographics, with an average age of 29, are among the most attractive of the world's largest economies.

Trends from India

Unified Payments Interface (UPI): a popular, convenient payment method in India that enables an instant bank transfer between two parties via internet-connected mobile phones. In Germany, there's so far no common way to pay via UPI.

Robotics: within five years, the operational stock of industrial robots more than doubled, reaching over 30,000 units in 2021. New production capacities create appropriate education and employment opportunities for the Indian population, generating jobs.

Dark kitchen: food from a restaurant can only be ordered online, not eaten on site. This saves restaurants the high costs of a large venue, so they only have to rent a kitchen. That means higher profitability and, with multiple locations, reduced delivery times to more distant areas.

Artificial intelligence (AI): in India, AI is more relevant than ever. Over 70% of all companies in the country have AI projects planned or underway. The global average is 49%. That makes India a real pioneer, and Indian companies also use much of their data to train AI models, which in turn improves AI performance.

Infrastructure: tens of thousands of kilometers of highways are built each year, and over 140 airports are set to be created in the next 10 years. For the world's most populous country, expanding infrastructure is extremely important and forward-looking.

India is moving forward, are you coming along?

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