Northern Ireland’s economy, as well as the EU, may be in recession but local firms are reaping the benefits of identifying business opportunities further afield.

Despite a dip in economic growth in 2008-09 as a response to the global economic crisis, India remains one of the shining lights of the world economy.

With a decade of growth behind it averaging more than 7% and exceeding 9% in some years, India has emerged as a 21st century economic powerhouse.

The 4% growth in the 2008-09 fiscal year may suggest a downturn in India’s fortunes but in the current climate it has proved resilient.

Indian-born Lord Diljit Rana, director of Belfast-based Andras House, has been promoting business links between Northern Ireland and India for decades.

The hotelier said: “India is a huge and dynamic market which is still achieving levels of economic growth ahead of the West. There are huge opportunities in infrastructure flowing from India’s drive to upgrade its roads, railways, ports airports and housing.

“It is also a market in which UK and Irish companies are respected because of the historic links in business, education, religion and politics, which the nation has with the British Isles. Many Indians living in Northern Ireland — around 4,000 — also maintain close links with home which helps build the profile of local companies.”

Fuelling India’s economic growth has been, among other things, a liberalisation of the economy and substantial government spending. With a population of over 1.2 billion people and a rapidly expanding consumer class, the services sector, in particular, has enjoyed growth.

For Northern Ireland companies India offers export opportunities in a variety of sectors ranging from aerospace, biotechnology and pharmaceuticals to financial and legal services, ICT, construction, transport, engineering and environment.

According to the Department of Enterprise Trade & Investment Northern Ireland Manufacturing Exports Survey 2007/08, local firms won £377.2m worth of sales in Asia. There are opportunities arising from the need for massive investment in India’s infrastructure and the Indian government is planning to spend approximately $559bn in this area.

Every year 10 million new homes, 50 million sq ft of new office space, and 80,000 hospital beds and related infrastructure are required. Roads, railways, airports and ports, the essential conduits of India’s trade, all require significant upgrades and work in this area alone is estimated to be worth $173 bn.

The country’s Vision 2030 plan, which aims to have India fossil fuel-free and energy independent by 2030, presents opportunities in the ‘green’ products sector which, together with the energy savings sector market, is worth more than $13 bn.

Northern Ireland has close trade links with India and is recognised as one of the UK’s most active regions in the Indian market for trade development. Local exports to India have grown substantially, especially within the hi-tech, construction and mining equipment sectors.

Lord Rana said: “Indian companies are particularly keen to do business with the UK and Ireland Other advantages for Northern Ireland companies include the use of English as the business language, a stable banking system, a legal system based on UK practice and an open trading system.”

Tracy Meharg, managing director of Innovation and Capability Development, Invest NI said: “Small companies here may initially feel overwhelmed by the sheer size of India but experience has shown that local companies of any size can do good business in India in terms of exporting, identifying sourcing opportunities and through setting up strategic alliances.”

Several local companies across a number of sectors including engineering, textiles, technology, chemicals and healthcare, are successfully trading in India, including Randox Laboratories, the Quinn Group and Singularity.

Recognising the vast potential of India as a target export market for local companies, Invest Northern Ireland opened an office in Mumbai in 2007.

Ms Meharg said: “The agency’s team there works to provide in-market support to companies wishing to penetrate the Indian market, and also pitches the Northern Ireland proposition to potential inward investors. In this latter arena key target sectors are the IT and business services industry, promoting Northern Ireland as a nearshore delivery or development location to support global delivery by Indian companies. To date Northern Ireland has secured eight projects from Indian companies, promoting over 3,000 jobs here.”

Invest NI also hosts two major trade missions to India every year with the next, to Mumbai and Bangalore, scheduled for September 2009. Before that, a series of seminars beginning June 16 are being held in Belfast and the north-west to give local companies an insight into the opportunities and support available in India.

India is the UK’s 18th largest export market, but as one of the fastest growing economies in the world is likely to become a top 10 contender within a few years.