Global businesses tapping India, other emerging markets and vice versa: Grant Thornton
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Globalisation is no more a one way street, as a significant number of business leaders are looking for international expansion opportunities in higher growth emerging markets including India, a report says.
However, the traffic from the emerging nations is also rising as these businesses eye the mature Western economies.
According to assurance, tax and advisory firm Grant Thornton's International Business Report (IBR), globally, 57 per cent of those business leaders considering international expansion are looking at the five biggest emerging economies - China, India, Russia, Brazil and Mexico.
The report added that many business leaders in mature economies, who are stuck with weak growth rates at home are looking for expansion opportunities in higher growth
economies, while their peers in emerging economies are looking to access technologies and skills from mature economies.
"Dynamic businesses are constantly looking for growth opportunities and expanding into different markets can boost business growth prospects. Emerging economies traditionally offer low-cost inputs such as labour and land, and also vast consumer markets," Grant Thornton in India National Managing Partner Vishesh Chandiok said.
Around 63 per cent of Japanese businesses and 45 per cent of those in the G-7 are looking at opportunities in China, while 59 per cent of German businesses are looking at Russia and 57 per cent of North American businesses are looking at Latin America.
As much as 50 per cent of Indian businesses are looking at opportunities in the Middle East.
"International expansion is no longer a one-way street. Increasingly cash-rich businesses in emerging economies are looking for expansion opportunities in mature markets, whether through opening premises or buying distressed assets," the report said.
About 59 per cent of businesses in Turkey, Russia (37 per cent), India (33 per cent) and China (27 per cent) are looking at opportunities in Western Europe.