A population of 1.01 billion people, and a growing middle class of 350 million, means that India is predicted to become the fifth-largest world economy by 2020. It is already the fourth-largest economy - measured in terms of purchasing power - after the USA, China and Japan.
The Indian economy is driven by its competitive advantage in knowledge-based industries, with scientific research and development, information technology, biotechnology and technology-enabled services being a large part of its economic strength in the global economy. The country is also capitalising on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers.
All this means that India, along with China, is considered one of the foremost emerging markets in the world today, as together they represent more than 37% of not only the global population but the consumer base as well.
Pizza chain PizzaExpress took the decision to enter the market in 2000 because, according to Eric Andre, managing director of PizzaExpress International, the only other competition at the time was from private restaurants and fast-food chains. These included McDonald's, Pizza Hut and KFC.
"Emerging markets are attractive if you are one of the first brands within your segment to arrive, as you can easily build recognition and loyalty," says Andre. "However, being first in the market means you are taking the risk of the business segment not being ready."
Andre believes that working with a local partner makes operational issues easier, but supply chain management remains an expensive and challenging enterprise in the country, thanks to importation taxes and plenty of red tape.
But recruiting and training staff to work in PizzaExpress restaurants in India is not too challenging, due to the country's relatively high levels of unemployment and the aspirational perception of the job.