| The Indian FMCG industry is one of the key growth | | | | achieved phenomenal growth. It has remained largely |
| drivers of the economy. Dominated by SMEs, mostly | | | | insulated from the adverse impact of the global |
| in tier II and III cities, the sector is currently | | | | economic crisis. |
| estimated at around $17.42 billion. | | | | According to trade analysts, the demand and |
| Significantly, the segment has grown at a time when | | | | consumption of consumer durables will continue to |
| nearly all other sectors are bleeding due to the | | | | rise in the UAE in the near term. Hence, market |
| ongoing economic turmoil. Motivated by the robust | | | | experts foresee that the Emirates will emerge as a |
| growth and increasing demand, Indian SMEs in the | | | | key export destination for Indian SMEs in the FMCG |
| FMCG sector are eyeing foreign markets to expand | | | | segment. |
| their footprint. | | | | Indian SMEs can capitalize on the duty sops extended |
| The UAE has an open economy and a high per capita | | | | by the UAE government on the import of |
| income. Owing to its rich oil resources, the Emirates | | | | components required for manufacturing consumer |
| have evolved into highly developed and industrialised | | | | durables by setting up their manufacturing units there. |
| markets for foreign investors, including Indian SMEs. | | | | Furthermore, Indian FMCG companies can grab a |
| On the trading front, India is one of the foremost | | | | significant market share of the UAE market by |
| trading partners of the UAE. In 2007-08, India's | | | | offering B2b Products at competitive prices. |
| exports to the UAE stood at $15,634.56 million.** In | | | | However, it is imperative for Indian SMEs to assess |
| recent times, the demand for Indian consumer goods | | | | the market thoroughly before venturing into it. These |
| has increased at a steady pace in the UAE. As a | | | | companies can also collaborate with FMCG players in |
| result, a large number of Indian FMCG exporters have | | | | the UAE market to achieve long-term growth. |
| established trade linkages with their counterparts in | | | | With bilateral trade between India and the UAE |
| the Emirates to tap this burgeoning market. | | | | poised to exceed $25 billion by 2010, Indian SMEs can |
| UAE's FMCG sector weathers recession | | | | cash in on the demand for consumer goods in the |
| In recent times, the FMCG sector in the UAE has | | | | latter. |