The largest cabinet delegation in UK history is set to head to India this week to try to encourage the once colonial relationship to prosper as a new more modern partnership, according to The Telegraph.
Britain, desperate for any means to get its businesses to grow, is trying to take advantage of a surging India, now growing at the rate of 9% per year.
It’s a fascinating case study into what Western governments are going to have to become more accustomed to over the next decade.
India, China, and Brazil will continue to be the powerhouses of the global economy. And while they have their own emerging corporations, much of this next decade will be about how the international companies based in the U.S., UK, Europe, and Japan can open up these markets to their businesses.
Domestic growth is likely to be weak in these developed economies, due to deflationary pressures and reduced personal and government spending.
But emerging markets do not have this debt problem. And while there are many others there, such as the difficulty of India’s bureaucracy, the opportunities are also far larger.
For manufacturing led exporters like Germany and Japan, their entrance into these markets is natural.
But for the U.S. and UK, where financial services, retailing, and technology are bigger industries, breaking into the market can be somewhat more prohibitive, based on regulations and other barriers for entry.
The Telegraph story is an interesting example of how it will become the norm to see once powerful governments plead for entrance into the world’s developing marketplaces.
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