In 1979, China was a different place. The economy was poor, inefficient, and stifled by central control that isolated the nation. But that was about to change. With the introduction of sweeping free-market reforms, China opened its doors to foreign trade and investment and changed its economic destiny forever. 50 years later China averaged a GDP growth of 9.5%. A feat so impressive the World Bank called it "the fastest sustained expansion by a major economy in history."
Now … Do me a favour. Just imagine you hopped into a time machine, zipped yourself back to 1979, and invested early in China. Maybe you set up a factory, for instance. Okay, now imagine you fast forward 50 years. How big would the factory be now? There'd be a pretty good chance it would be huge right? For no other reason than you got in early and rode the massive wave of growth.
Which brings me to the point of this article:
The next country this is happening to is India. And it's happening right now.
No need for a time machine. Or any imagined hypotheticals. There's never been a better time to get involved.
The Benefits of Riding India’s Wave of Growth
India reached its 75th year of Independence on the 15th of August this year. Since this day in 1947, India's GDP has grown from ₹ 2.7 lakh crore to ₹ 135.13 lakh crore and CEBR's 2021 Welt has India predicted to enter 2030 as the world's third largest economy. It has also become an attractive target for investment. For example, since 2015 the U.S. interest rates have increased from just above 0 to floating above 2% only to crash back down again. Meanwhile Indian interest rates have been anywhere from 4 and 6%.
It's no wonder then that an influx of companies that have scrambled to get involved in this growing economy. Amazon is said to be hiring 20,000 new employees each year. And Google, Facebook, Walmart, Hitachi and more are descending on the country like it’s a gold rush.
Why wouldn't they?
Although the Indian economy is growing, it’s still far cheaper to hire in India than it is at home. Accenture, for instance, hires more people in India than anywhere else in the world - a hiring strategy that makes sense when you dig into their business. Accenture's profit margin this year was around 12%. Given that wages in India are said to be up to seven times less than the UK (where Accenture is headquartered), it's not outrageous to say that the company would literally be bankrupt without India.
The takeaway is pretty clear: investing in India doesn’t just help you be globally competitive. It's one of the factors that makes you able to compete in the first place.
But the benefits don’t just stop there. In the modern digital economy, quality software engineers have been crucial for staying ahead of the game. This is only going to increase the more the world goes digital. India has the second largest population of software engineers in the world, and is predicted to take the top spot by 2024. It’s one of the few places in the world where you can get a roomful of world class talent without being Google or Amazon. For instance, we’ve helped YellowMobile, a South Korean unicorn startup, deploy a 40 person R&D center in India staffed with talent from the aforementioned big companies.
And if that's not enough for you ... then there's the fact that India has a market of 1.3 billion people. The second largest in the world.
So India has a rock solid economy, an enormous pool of software developers, and is set to be one of the top 3 global economies on the planet within 9 years. This is a country you need to get involved with if you're going to compete with modern businesses.
After all, why wouldn’t you leverage the same practices that Fortune 500 companies are?
HOW TO GET INVOLVED WITH INDIA
Here's the kicker… If you believe that India is going to take off then there is no better time to invest than now.
Despite the heavy competition that exists, there’ll never be a less competitive time to get involved than right now. It’ll never be cheaper than it is now, and it’ll never be easier to get involved than it is now. The more the economy booms the more prices are going to increase and the more businesses will establish themselves there and soak up the talent.
This is why I stress that the best time is right now. Because all of this change is happening and not enough businesses have recognised the scale of it. But they will, trust me. It's just a matter of time.
However, for you, it might not be as simple as agreeing with me and setting up shop in India. For you, there are two problems:
The first, is that you probably don't know how to go about branding yourself as an employer and source grade-A talent overseas. The second is that establishing yourself overseas is expensive. Even if India is cheaper than expanding at home, there's still a lot of upfront cost to setting up an office and driving recruitment - a cost you might not be able to afford. These are real problems, and ones you'll most almost definitely face if you’re not the Fortune 500.
So what can you do?
At McKinley Rice we set out to solve this problem. We wanted to help open the opportunities presented by India up to all businesses - instead of keeping it a playground of multinational giants.
We want to give you access to all the upsides of India's growing economy and software engineering talent pool. WITHOUT having to invest capital you don't have, and suffer through the learning curve of establishing yourself abroad.