Thursday, May 26, 2011
At last India has shown some foresightedness in its foreign policy and has extended a credit line of $5bn to the African Countries . It is a great step forward as new battle ground for resources is African Contingent. It is still vastly untapped market and it is very similar to Indian market so Indian companies will not have much problem in doing business there.
China is 3-4 years ahead of India in tapping the market there, as it is churning out new roads, ports and railway tracks cross the contingent.Afro-China trade is worth $1114bn today in comparison Indian trade is only $46bn, but India has huge advantage vis-a-vis china being a democratic country. India should use its comparativeness in software, healthcare, nation building,telecom and infrastructure.
Its better to be late than never.
Wednesday, May 25, 2011
In an effort to cut down cost on reaching the rural market companies are collaborating together. For example SBI and HUL have joined hand where HUL project Sakti is assisting SBI in penetrating the rural market. Major problem related to the rural market is cost of distribution due to the scattered market characteristic.