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Why Australian Exporters Struggle in India & And How to Fix It?

India is often described as one of the most promising markets for Australian exporters. And rightly so.

A growing middle class, increasing consumption, and deepening bilateral ties make India an attractive destination across sectors, from education and agriculture to manufacturing and services.

Yet, despite this promise, many Australian exporters struggle to convert interest into sustained commercial success.

The issue is rarely product quality. It is almost always approach, positioning, and execution.

The Reality: India Is Not One Market

Just like 'Butter Chicken and Naan Bread are believed to be staple Indian food', one of the most common mistakes is treating India as a single, uniform market.

In reality, India operates more like a collection of economic regions, each with its own:

  • Regulatory environment
  • Political priorities
  • Industry clusters
  • Ease of doing business

For an exporter, this raises fundamental questions:

Do you engage with Maharashtra or Gujarat?

Is Uttar Pradesh the right entry point, or does Tamil Nadu offer better infrastructure?

Should you consider emerging hubs like Amaravati, or financial centres like GIFT City?

Without a clear market entry strategy, businesses often spread themselves too thin—or choose the wrong starting point.

The Partner Problem: Who Is Serious?

Another major challenge is identifying the right partner.

India is relationship-driven, but that also means:

Many conversations

Many introductions

Not all of them actionable

Australian exporters often struggle to distinguish between:

Exploratory interest

Genuine commercial intent

The result:

Time lost in discussions

Misaligned expectations

Slow progress

In India, partnerships are not just about distribution (it does matter but not in the beginning), they are about alignment of intent, capability, and commitment.

Make in India vs Exporting to India

India’s “Make in India” policy adds another layer of complexity.

The government is actively encouraging:

Local manufacturing

Technology transfer

Domestic value creation

For exporters, this creates a strategic question: Is it better to export into India or to participate in India?

In many sectors, long-term success requires:

  • Local partnerships
  • Partial localisation
  • Or even on-ground presence

Export-only models may work initially but often face limits as policy and market expectations evolve.

Volume Expectations and Commercial Reality

India is often perceived as a “high-volume market”. I thought so too when I recently tried to explore wine exports. Selling two containers is like throwing a penny in a pond.

While true, this comes with trade-offs:

  • Price sensitivity is high
  • Margins can be lower
  • Scale is often required to be competitive
  • What you hear on TV (or Facebook) is not entirely true (Wine still has 100% taxes and CECA doesn't mean no state taxes).

Many exporters enter India expecting premium positioning, only to discover that Volume and value need to be carefully balanced.

China Comparison: A Misleading Benchmark

India is frequently compared to China but this comparison can be misleading.

China offers:

  • Scale
  • Speed
  • Good quality
  • Centralised systems

India offers:

  • Flexibility
  • Entrepreneurial networks
  • Reliable supply chain
  • Decentralised decision-making

Where China rewards efficiency, India rewards patience, persistence, and partnerships

Policy Support: Is CECA Enough?

The India–Australia Economic Cooperation and Trade Agreement (ECTA/CECA pathway) has improved:

Tariff structures

Market access in certain sectors

I was so overjoyed with it that we featured our opening session in World Hindu Economic Forum 20205 Adelaide on CECA. The speakers did an outstanding job, but while helping businesses connect I found that the trade agreements alone do not guarantee success.

They create opportunity but do not solve:

  • Market complexity
  • Partner selection
  • Execution challenges

Are Australian Exporters Ready?

Interestingly, I recently found out form our good friends in Department of State Development that even within Australia, exporters are assessed for readiness before receiving government support such as EMDG grants.

This raises an important question: Are we applying the same level of readiness assessment before entering India?

Success in India requires:

  • Market understanding
  • Strategic positioning
  • Local engagement
  • Long-term commitment

So, What Is the Solution?

There is no single answer but there are clear patterns among businesses that succeed:

1. Start with Focus, Not Scale : Choose one region, one segment, one entry point.

2. Invest in the Right Partnerships: Not just distributors but aligned partners with shared intent.

3. Be Prepared to Localise: Whether through partnerships, presence, or adaptation.

4. Balance Volume and Value: Understand where you sit in the pricing–volume equation.

5. Think Long-Term: India rewards consistency, not quick wins.

Final Thought (I promise)

India is not an easy market, but it is not an impossible one either.

The challenge is not capability of India or Australian exporter, it is alignment.

Success in India is not about entering the market. It is about understanding where you fit within it and committing to that position.

For those willing to invest the time, build the right partnerships, and approach the market with clarity and intent, the opportunity is real and growing.

Arise, awake, India is waiting for you!