Indian SMEs Moving Fast in UAE
The Indian FMCG industry is one of the key growth drivers of the economy. Dominated by SMEs, mostly in tier II and III cities, the sector is currently estimated at around $17.42 billion.
Significantly, the segment has grown at a time when nearly all other sectors are bleeding due to the ongoing economic turmoil. Motivated by the robust growth and increasing demand, Indian SMEs in the FMCG sector are eyeing foreign markets to expand their footprint.
The UAE has an open economy and a high per capita income. Owing to its rich oil resources, the Emirates have evolved into highly developed and industrialised markets for foreign investors, including Indian SMEs.
On the trading front, India is one of the foremost trading partners of the UAE. In 2007-08, India's exports to the UAE stood at $15,634.56 million.** In recent times, the demand for Indian consumer goods has increased at a steady pace in the UAE. As a result, a large number of Indian FMCG exporters have established trade linkages with their counterparts in the Emirates to tap this burgeoning market.
UAE's FMCG sector weathers recession
In recent times, the FMCG sector in the UAE has achieved phenomenal growth. It has remained largely insulated from the adverse impact of the global economic crisis.
According to trade analysts, the demand and consumption of consumer durables will continue to rise in the UAE in the near term. Hence, market experts foresee that the Emirates will emerge as a key export destination for Indian SMEs in the FMCG segment.
Indian SMEs can capitalise on the duty sops extended by the UAE government on the import of components required for manufacturing consumer durables by setting up their manufacturing units there. Furthermore, Indian FMCG companies can grab a significant market share of the UAE market by offering B2b Products at competitive prices.
However, it is imperative for Indian SMEs to assess the market thoroughly before venturing into it. These companies can also collaborate with FMCG players in the UAE market to achieve long-term growth.
With bilateral trade between India and the UAE poised to exceed $25 billion by 2010, Indian SMEs can cash in on the demand for consumer goods in the latter.
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About the Author:
David Parks is a well known author and has written articles on B2b Yellow Pages, B2B Portal, Computers Manufacturers, suppliers, Manufactures and many other subjects.
