Indian SMEs intending to foray into the Mongolian market now have a reason to rejoice. The Mongolian government has invited India Inc to invest in their country in a bid to promote bilateral trade and investment between the two nations. This development holds a lot of importance for Indian SMEs because some of the sectors in which the Mongolian government has invited investments from India include industries that have fair SME-presence such as healthcare, information and communication technologies (ICT) and agriculture, among others.

Indian SMEs investing in Mongolia can also avail of special grants and tax incentives. While SMEs investing in the infrastructure sector will be entitled to receive income tax (I-T) exemption for the first 10 years, small business entities exporting over 50% of production will receive corporate I-T exemption for the first 3 years.

However, according to the Southern India Chamber of Commerce and Industry (SICCI), issues such as extra freight charges and delivery modes are some of the trade gaps that Indian investors would have to address to increase bilateral trade with Mongolia.

ICT sector being one of the most significant areas of collaboration between the two countries, Indian ICT-based SMEs can look forward to tap the Mongolian markets further, especially with the investment climate being so friendly for both countries. Indian SMEs engaged in the human resource development industry can also scout for better opportunities in Mongolia.