Why India Holds Great Potential for European Trade Companies: Experiences and Statistical Evidence

India, with a population of over 1.3 billion people and growing market potential, is increasingly attracting European trade companies. In this article, we will discover why India matters to Europe and what European businesses can expect in India.

(Heading 1: Why is India Attractive for European Businesses?)

India is the world’s second-largest economy and offers a range of advantages that make it an alluring target for European trade companies. For instance, India boasts a large market with a young and growing middle class. (Quote: "India’s economic growth is primarily driven by the Middle and Upper Classes." – World Bank)

India has a strategic geographical location, being situated between the Middle East, Africa, and Southeast Asia, making it an ideal hub for businesses seeking to expand their presence in these regions. Moreover, India offers a highly skilled labor force, a growing consumer base, and favorable business policies. (Quote: "India has one of the most business-friendly tax systems in the world." – Doing Business Report 2021)

(Heading 2: Success Stories of European Companies in India)

European giants such as Adidas, BMW, IKEA, and H&M have already established successful businesses in India. Adidas, for example, has increased its market share in India’s sports shoe market to 25%. (Quote: "India is a crucial market for us, and we will continue investing." – Adidas Spokesperson)

BMW’s Indian subsidiary, BMW Group India, produces vehicles for both the domestic and international markets. IKEA, on the other hand, opened its first store in Hyderabad in 2018 and plans to expand further. Lastly, H&M operates over 140 stores across more than 30 cities in India.

(Heading 3: Statistical Evidence of Growth Potential in India)

The numbers speak for themselves. The trade volume between Europe and India has grown by more than 40% over the last decade. (Quote: "The European-Indian trade has doubled in size over the past ten years." – EU Commission)

Moreover, the European Union and India signed a Broad-based Trade and Investment Agreement (BTIA) in August 2021, which aims to boost bilateral trade and investment between the two regions. This agreement is expected to create new opportunities for European businesses in sectors like services, agriculture, and manufacturing.

(Heading 4: Challenges and Solutions for European Companies in India)

While there are numerous advantages to operating in India, it is essential to be aware of the challenges. For instance, European companies often lack market knowledge and a solid network in India. To overcome these obstacles, India offers several initiatives such as the European-Indian Chamber of Commerce and Industry (EICCI) and the Indo-German Chamber of Commerce (IGCC).

These organizations provide valuable resources for European businesses seeking to enter or expand their operations in India, including market intelligence, networking opportunities, and regulatory guidance. They can help European companies navigate the Indian business landscape more effectively and increase their chances of success.

India presents significant opportunities for European trade companies. With the right knowledge and support from appropriate initiatives, Europe can successfully establish a footing in India’s burgeoning markets. (Thought-provoking ending: "India offers endless possibilities for European businesses.

It is time to pool our strengths and shape the future together.")


  1. Why is India significant for Europe?
    India provides Europe with a vast market, a young and growing middle class, strategic geographical location, and favorable business policies.

  2. Which European companies have succeeded in India?
    Adidas, BMW, IKEA, H&M, and many others have experienced success in India.

  3. How has the trade relationship between Europe and India evolved?
    The trade volume between Europe and India has grown by more than 40% over the last decade. The EU and India signed a BTIA in August 2021 to further boost bilateral trade and investment.