Did you know India has a little more risk today?

Euler Hermes, the 100-year-old trade credit insurance firm, has a fantastic little tool for assessing credit risk around the globe. Euler Hermes monitors country risks in 241 countries and territories. Their country risk map aims to assess the risk of non-payment by companies in a given country.

In other words, if you’re thinking of developing a new market, you can use this little tool to see how likely (or unlikely) it is you’ll get paid. The map is interactive, and updated periodically to reflect changes in the global economy.

As many of you know, we do a lot of business in India — so, I was pretty surprised to see that Euler Hermes upgraded India from “low risk” to “medium risk” this year. In retrospect, while it took me by surprise, it probably shouldn’t have. India still suffers from an immature business market. I can see how this can translate into higher credit risks.

Country Risk Map
Country Risk Map, Euler Hermes (click to open)

It also underscores how important it is to work with a trusted source, and an experienced partner, no matter what country you go into. Euler Hermes is one such resource when it comes to insuring your revenue stream — whether its import/export, manufacturing, or even R&D. If you’re doing International business, trade credit insurance is a must, and these guys know how to do it well.

Getting back to India: Yes, maybe it is a little bit more risky today, at least when it comes to credit risk. But that’s no reason to stay away, it just means you need to account for those risks. Engage with a partner that really knows how to work with India, take the right precautionary steps (such as using trade credit insurance), and move forward with your eyes open. India is an incredible market opportunity, and not one to shy away from!

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