Businesses in Georgia are limited to a very few sets of industries, with the primary industry driving the Georgian economy being agriculture. In fact, the agriculture industry is so large that it accounts for almost half the GDP of the country. The country has good business setup stability with low costs of power generation and opportunities for large industrial projects. Considering these factors, Georgia has emerged as a potential market for business industries to expand into the country.
Here are the top industries you can consider if you are planning to set up your business in Georgia:
- Grapes and Wine
- Metal and Machinery
1. Grapes and Wine
Georgia is one of the oldest regions in the world where wine is grown and manufactured. The valleys of the mountains in Georgia help in grape wine cultivation. The industry of wine cultivation and manufacturing is growing rapidly with an increase in the popularity of Georgian wine around the world and most of the Georgian wine is exported to neighbouring countries such as Ukraine, Belarus, Kazakhstan, Poland, etc. The industry is growing rapidly with an estimated 36% increase in the supply of wine production.
Georgia has always had a rich history of apparel and textile production of high-quality silk and wool blended fabrics and most of the fabrics (95%) are exported to Turkey and EU markets. The Free Trade Agreements between Georgia and other large markets such as Turkey, Russia etc have made it easy for manufacturers to export their goods.
The pharmacy industry has clocked a growth rate compounded annually at 13% during 2010-2014 and the imports and consumption are increasing every year and 30% compounded annual growth rate of pharmacy exports from Georgia during 2010-2014. The primary reason for many pharmacy companies establishing their company in Tbilisi is due to low utility costs along with competitive labor costs along with government’s support in which businesses are exempted from all taxes except Personal Income Tax and incentives for new production companies.
4. Metal and Machinery
Metals and other machinery equipment such as mechanical appliances are manufactured in Georgia. Most of these types of equipment are exported from Georgia to other countries. Steel Production in Georgia has a lot of market opportunities especially with neighbouring countries which export waste and scrap metal along with the mines of copper and manganese in Georgia. These existing productions could further be used in manufacturing products such as tin cans and other construction materials such as wires, cables etc or can be used to produce ferroalloys which can be exported to other countries.
Markets in these countries have a lot of potentials and are having good growth with the government supporting a lot of new production companies. The country doesn't have a minimum wage regulation along with no working permits that are required. To know more about the business opportunities in these markets, contact us and our dedicated specialists from business setup worldwide will assist you further.