For Immediate Release: April 15, 2011
Contact: Cory Churches (202) 482-3809
U.S. Companies Explore Opportunities During Commerce's First Franchising Mission to India
Stops in Mumbai, Hyderabad and New Delhi Yield New Business Prospects
WASHINGTON – Fifteen globally recognized U.S. companies introduced their products and services to three of India’s major metropolitan markets during the Department of Commerce’s first-ever franchising trade mission to India. Assistant Secretary of Commerce for Manufacturing and Services Nicole Y. Lamb-Hale led the mission which included stops in Mumbai, Hyderabad, and New Delhi, April 10-15.
“There are tremendous opportunities for U.S. franchising firms such as Dominos and Subway in India. I am impressed by the serious interest in U.S. franchise brands we have found during our trip,” said Lamb-Hale. “President Obama set a new mark for U.S. business in India during his visit here last November and with this mission, we are translating this new relationship into real U.S. exports and jobs.”
Mission participants completed more than 300 individual meetings with prospective investors, and public and private sector officials to explore the environment for their franchises. The franchise market in India has the potential to grow to $20 billion by 2020. Franchising in India is growing at an impressive rate of approximately 30 percent per year. Presently, there are 1,200 franchisors in India, of which 25 percent are of international origin, with U.S. companies the most prevalent.
“It will be a challenge to narrow down the appropriate partners and define our India strategy after all our amazingly productive meetings this week,” said Benjamin Simon, Radio Shack Corporation’s senior director for international development.
Lamb-Hale and the U.S. delegation visited a California Pizza Kitchen in Mumbai to highlight the success of current American brands in India. Lamb-Hale also celebrated the opening of the 200th Subway® franchise in India.
U.S. exports to India more than doubled between 2005 and 2010, and India is now ranked 12th in terms of total trade with the U.S. at $48.8 billion. In 2010, U.S. merchandise exports grew by 17 percent to $19.2 billion and imports grew by 40 percent to $29.5 billion. U.S. service exports to India totaled nearly $10 billion in 2009.
A list of the mission participants is available.
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