How the growth of the global middle class in India is presenting UK businesses with huge opportunities

Recently CPP Group took part in a Confederation of British Industry (CBI) roundtable as part of UK-India Week. The discussion centred on the increasing significance of trade relationships between the UK and India. UK businesses have created 422,000 jobs since 2000 and we’re proud to be one of them. We’ve been operating in India for over 10 years and now employ over 7,000 people both directly and indirectly.
As an employer in this market, we recognise the value of having local people running our Indian business. They understand the local market, have great networks and consistently deliver high value performance. We are seeing record revenue growth in this market, with a 54% increase in 2018. This success story enables us to offer progressive career opportunities to our colleagues in this part of the world, something that is especially important to us.

As part of delivering our end-to-end technology solutions, we have established long-standing partnerships with key businesses in India, including TATA and AMEX.

But what makes India such a good market for UK business?

The success we are seeing in this market has been reinforced by the growing middle class, which is now made up of 300 million people. And this figure is only set to grow. The increase in disposable income and purchasing power has created a significant market for foreign goods and services. With India set to become the world’s fifth largest consumer economy, there is no sign of these growth rates slowing down.
The growth of the global middle class in India has created an environment that has enabled this part of our business to flourish.

Some of the key reasons why India is fast becoming a huge opportunity for UK businesses are:

1. India’s technology capability

Many people don’t know that the UK is India’s second largest international research and innovation partner. This is a key indication of the prospects of the two countries working closely in order to share knowledge, collaborate on research, innovate and create partnerships. The digital economy, health technologies and cyber security have been highlighted as areas of focus, which naturally presents huge opportunities for organisations like CPP Group who have an invested in cyber risk management products and companies such as KYND. CPP Group will continue to invest in technology in order to improve our digital delivery and servicing capabilities in line with local market needs.

2. Focus on insurance and FinTech

A Grant Thornton/CBI survey has found that 62% of UK businesses have already imported new tech and products to India, including 4G technology and credit card protection which is one of CPP Group’s biggest products.

The opportunities for banking, InsurTech and FinTech are particularly prevalent, with both the UK and India investing heavily in start-up companies. Respective governments are also placing emphasis on supporting the FinTech sector.

3. Partnerships and business capabilities

Multiple partnerships are already being formed between UK and India in the areas of high-end technology. This includes collaborations in the finance space, which is reinforced by regulators such as the UK’s Financial Conduct Authority and the Reserve Bank of India working with each other.

We boosted our ambitions in India with an investment in Globiva, a rapidly growing Business Process Management company. The investment will enable us to extend our value chain and value add to our partners in India. It also allows Globiva to utilise CPP’s extensive contacts to bolster its business development activities globally which will add to both Globiva’s and CPP Group’s growth and profitability in India.

4. India’s economy is only going to swell

India is currently the sixth largest economy in the world and according to the International Monetary Fund, it took over France this year. The Indian government is ambitious in its commitment to establishing the country’s position as an ideal economic landscape for overseas organisations to do business with. This dedication to growth means that Indian businesses are open to opportunities that are going to benefit the wider economy, for example by offering additional employment opportunities it is naturally going to support financial growth.

5. Education, human resources and talent

India boasts a remarkably strong workforce, with one of the most developed higher education systems across the world. CPP has created a dedicated team of market specialists in India to lead this part of the business, with their country insight and in-depth knowledge of customers paramount to the success we’re seeing.

6. Language

English is most commonly used as a medium of spoken and written communication, as well as being the language of business in India. This means operating in India is easier in terms of communicating, plus it also means that there isn’t a language barrier when it comes to creating new partnerships. Business relationships have been key to our growth and we’re always looking to expand our network of partners.

For CPP Group, India aligns strongly to our business goals through the shared focus on investing in growth markets and developing long-lasting business partnerships. Driving all of the above is the development of new technologies allowing us to showcase its end-to-end capability in the InsurTech and financial services spaces.