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	Wanna spice up your bottom line? India's economy is hotter than curry chicken and offers a wealth of trade opportunities to Virginia businesses! Like other Asian nations, India's economy has undergone profound changes over the last decade; including an uninterrupted economic expansion that is in its 15th year (economic output increased 8% in 2004). India enjoys many comparative advantages over its neighbors, including an educated workforce that speaks English, the world's largest democracy and second largest population, a sophisticated IT sector, and a young, entrepreneurial class that is eager to take advantage of the country's ongoing economic liberalizations. The market opportunities for Virginia companies in India are vast and growing. Take, for example, the fact that India's middle class of over 350 million people is larger than the entire population of the United States and Canada combined! Whereas the working-age population in countries like the U.S. and China is projected to shrink in the coming years, 47% of Indians will be between the ages of 15 and 59 by the year 2020, which, according to Business Week magazine, will represent the world's largest pool of workers and consumers. Although trade barriers do still exist, the Indian government has streamlined customs processing, eased restrictions on investment, deregulated key industries, and reduced tariffs on many imports. Deregulation in the airline industry has made domestic air travel more affordable for many Indians. Following the recent introduction of the first budget airline in India, competition has heated up, resulting in three new budget airlines in less than a year. In addition, Air India announced in April 2005 its intention to purchase 40-50 new planes from Boeing to replace its aging fleet. The new planes will allow for direct flights between the U.S. and India. India's top trading partner is the United States, with total two-way trade valued at over $21 billion. India's exports to the U.S. reached $15.56 billion in 2004, up 19.2% from 2003. U.S. exports to India in 2004 were up 22% and exceeded $6 billion in value. Even more impressive were Virginia's 2004 exports to India, which surged to $102 million, an increase of 127%! Coal accounted for the bulk of the increase, reflecting India's fast growing economy and its need for coal for steel production. Virginia's manufactured products, however, continued to make advances: industrial machinery was again the top manufactured export to India via Virginia, and saw an annual increase of almost 50%. Examples of the types of machinery that were exported include ball and roller bearings, centrifuges, filters, compressors, and heat pumps. The most dramatic year-on-year growth in the industrial machinery sector came from compressors and textile machinery. Exports of electrical machinery and wood pulp declined in 2004, while vehicles/not railway and iron and steel saw significant gains of 815% and 197%, respectively. Vehicle parts and accessories dominated the vehicle category, while scrap metal was the largest subcategory of iron and steel exports. Aluminum scrap exports figured prominently in 2004 at more than $1 million, a further indication of India's economic expansion. One of the catalysts behind India's booming economy has been Information Technology, which experienced cumulative annual growth of more than 42% from 1995 to 2002 (double that of most developed countries). The software sector is growing over 50% annually with expected revenues of $87 billion by 2008. India's software sector is one of the most sophisticated in the world, and boasts industry giants like Infosys and Wipro. Underscoring the booming IT sector in India, Wipro has tripled its staff to nearly 42,000 over the past 3 years (a rate of 3 new employees every working hour!). As these companies continue to grow domestically, they will increasingly look to expand their international operations. Some of India's top companies are going for world-class status through global acquisitions. In 2003, Indian companies purchased 35 companies abroad. This trend contradicts the popular notion that trade with India is a one way street which merely siphons American jobs through outsourcing. In fact, in 2004, the Fairfax County Economic Development Authority opened an office in Bangalore, India, to work with Indian technology companies interested in expanding operations in the United States. Fairfax County is home to more than 4,800 technology firms and almost 300 foreign-owned companies. Nine Indian companies have offices in the county, including Guru Infotech (Epiance), HCL Technologies America, Indotronix and Megasoft. More than $7.1 billion in U.S. federal government contracts are awarded annually to companies in Fairfax County. Beyond the IT sector, many other industries in India are growing. Electronics, for example, valued at $38 billion, have grown 37% annually since 1997. In addition, the Indian government has announced new investments and renovation/modernization projects in power, oil and gas, metals, chemicals and petrochemicals, pharmaceuticals, automotive, transportation (airports, ports, metro rails), textiles, consumer durables, and food processing. In order to sustain an expanding economy, India must invest in a creaking infrastructure that hinders growth and investment. Infrastructure improvements offer significant opportunities to Virginia companies involved in everything from construction and engineering services, energy generation and distribution, IT equipment, and transportation. Moreover, in January 2004 India signed an agreement with the U.S. to expand cooperation in civilian nuclear programs, space initiatives, technology trade, and missile defense. Hurry, hurry, to the land of curry! So how can your business be a part of the growing commercial ties with India? The VEDP makes it easy through trade missions to the Indian subcontinent. VEDP's Division of International Trade will be leading a trade mission to India in April, 2006. This follows a successful mission to India led by the VEDP in 2005 which Governor Mark Warner attended. The 2006 mission will start in the city of Mumbai (Bombay) and continue on to Bangalore and Chennai (Madras). Trade mission participants will enjoy one-on-one meetings with targeted, pre-screened companies that match their unique company and market objectives. Participants will travel with Virginia's International Trade Manager, Joe Adams, and will benefit from his local connections and expertise. The VEDP will provide pre-arranged meetings, in-country transportation, market briefings and networking functions.