India's rapid economic growth is pleasing not only to the population and leadership of the country. Also this is good news for at least three American companies: Cisco, Amazon and Microsoft.
According to International Monetary Fund estimates, India's economic growth this year will be a solid 7.4%, The Motley Fool said. Therefore, it is not surprising that of all developing countries, India is currently attracting the attention of the largest investors. Only in March this year, foreign institutional investors invested $ 2.06 billion in the Indian stock market, in comparison, second place for South Korea earned only $ 259 million.
The emergence of India's current economy is not a temporary phenomenon. For example, according to HSBC, GDP growth next year in India will even increase and reach 7.6%. And according to estimates by researchers from Harvard University, the average annual growth of Indian GDP by 2025 will be 7.72%.
In other words, in terms of economic growth, India is far ahead of China, whose GDP will grow to 4.41% per year by 2025, and this can not but attract large foreign players. The Indian market is very attractive among American giants, Cisco, Amazon, and Microsoft.
The Indian government led by Prime Minister-reformer Narendra Modi has announced an ambitious program to build a "smart city", which expects to spend nearly $ 5 billion. To implement this program, the Indian government plans through a public-private partnership, and this is great news for Cisco.
American companies have benefited from participating in this project. In fiscal year 2016, Cisco's Indian division revenue grew by 41% and exceeded $ 1 billion. Cord hopes that India's smart cities will help raise unit revenue to $ 2 billion, and this does not seem like a fantasy.
In addition, Cisco is betting on the Indian online education market, growing by 11-12% per year, the company has attracted 3,000 local partners to sell its products.
Another American company, Amazon, attracted the growth of the online trading market in India. In 2016, it is estimated to reach $ 15 billion, and by 2026 will reach $ 200 billion, and even online sales will only reach 12% of India's retail turnover.
Walmart, head of Amazon's rival house, is already preparing for the biggest purchase of Indian online retailer Flipkart, but also the company from Jeff Bezos will not give up without a fight. Amazon attracts Indian vendors with reduced commissions and logistics systems that give them access to overseas markets.
Thanks to this strategy, last year Amazon's revenue in India grew by 105%, and net income by 41%.
Finally, do not forget about Microsoft. The development of the digital economy in India has provided a powerful boost to sales of technology giants - by 2016 Microsoft's revenue in India has grown by 49% and in 2017 - 30%. Indian companies and government organizations show great interest in cloud services, artificial intelligence and other Microsoft technologies, so that in the coming years the company will feel very confident in India.