Coimbatore's vibrant business community witnessed a significant step forward on February 4, 2025, when the Coimbatore District Small Industries Association (Codissia) signed a Memorandum of Understanding (MoU) with the Georgia Indo-American Chamber of Commerce (GIACC). This collaborative effort aims to strengthen trade relations and create new business opportunities for Indian MSMEs on the global stage.
The MoU was formalized during the inauguration of the international conference titled "Empowering Coimbatore MSMEs in the Global Market," and was attended by representatives from diverse sectors including corporate legal services, real estate, lending, and export logistics, аmong others. The event brought together a 21-member delegation from the GIACC, which included not only business leaders but also government officials from Georgia, USA.
Karthikeyan, president of Codissia, expressed optimism about the potential for Indian manufacturers to fill gaps left by Chinese companies, especially following recent US import duties impacting trade with China. "With the recent US import duties against China, Indian manufacturers have a unique opportunity to replace Chinese companies in the US market," he stated, highlighting several sectors ripe for investment, such as textile machinery and food processing.
S K Raj, the immediate past president of the GIACC, emphasized the strategic significance of the southern states of India for US businesses. "This delegation aims to explore investment opportunities for US companies in India, particularly in the southern states," he noted. He also pointed out the advantages for Indian businesses, such as the ability to establish companies swiftly within the US due to favorable tax policies and incentives.
Yet, he warned of challenges, primarily concerning the repatriation of profits from India. "While bringing investment to India is relatively easy, taking back profits is a cumbersome process. The Indian government is working on easing these regulations, but there are still hurdles such as obtaining permissions and securing basic utilities for businesses," he added.
On the flip side, Grace Multani, chairperson of GIACC, elaborated on the advantages of operating from Georgia. She stated, "There are tremendous opportunities for businesses in Coimbatore when they set up operations in Georgia, and it offers labor incentives too." She described Georgia as one of the leading bases for numerous US companies, highlighting its economic growth and relatively low cost of living.
Following the signing of the MoU, around 180 MSMEs participated in the conference, sharing their experiences and aspirations with the visiting delegation. It was reported by The Hindu, this collaboration marks the renewal of the MoU from last year, enabling continued engagement and exploration of investment prospects.
The GIACC has also established a trade office within Coimbatore to facilitate easier connections for business interactions. It is noted, after the last year's visit from Codissia’s delegation to Georgia, ten members have already set up offices there, demonstrating the growing interconnectedness between the two regions.
Adding to this dynamic, the Manitowoc Company, Inc., a leading global manufacturer of cranes and lifting solutions, announced its acquisition of certain crane assets from Ring Power Corporation through its subsidiary, MGX Equipment Services. This deal will expand Manitowoc’s customer reach across Georgia, North Carolina, and South Carolina, emphasizing the company's commitment to enhancing operations within these key markets.
Founded in 1902, Manitowoc has over 120 years of experience delivering quality products and support services. This acquisition is significant as it allows them to tap directly to crane customers and offers enhanced aftermarket parts and services, aligning with the increased industrial activities resulting from foreign investment.
With growing economic ties between India and the US, particularly through initiatives like those presented at the conference, the coming years look promising. Collaborative efforts from organizations like Codissia, GIACC, and businesses like Manitowoc are paving the way for transformative business landscapes.