Trade and investment between India and the Greater Mekong Sub-region (GMS) countries of Cambodia, Thailand and Vietnam is relatively low in comparison to India’s trade with the rest of the world. GMS countries offer many opportunities for Indian businesses given their geographic and cultural proximity and their involvement in similar global value chains such as automotive, garments and pharmaceuticals. In driving this integration, small and medium-size enterprises can play a key role in India’s strategy – and assist it to progress its ‘Act East’ policy – to promote economic cooperation more closely with GMS, amongst others.
It is believed that Indian SMEs are more likely than larger firms to enter the smaller GMS markets and it is further believed that this can provide a launchpad to expand into larger, more complex markets including further afield with ASEAN and the EU.
For businesses that are ready for this step, it is important to consider which approach to internationalisation is most appropriate. Possible approaches include exporting, importing, technology transfer, licensing, joint ventures, as well as inward and outward investment.
This factsheet provides an introduction to sectors that offer opportunities for international trade and investment but PROFIT cautions that businesses will not be able to realise all the opportunities and indeed, precisely because these are perceived as the opportunities, the competition may be tougher. So do not feel constrained if your business works in other sectors. Either way, PROFIT will help you explore further your desire to internationalise.