There was a time to die for the nation , now it is the time to live for the nation.
“WILL INDIA MAKE IT TO THE LEAGUE OF ECONOMIC SUPERPOWER IN NEXT 25 YEARS”
Presented by :
Puneet madaan Gaurav sadachar Swapnil Devroop pandit
India-youngest country of the world • USA – 39.3 years • • • • • • • • •
Canada – Mexico – Europe – France – Italy – UK Russia – Japan – China --
• India --
42.9 years 32.5 years 45.4 yrs 43.3 yrs 50.7 yrs 44.5 yrs 43.8 yrs 50 yrs 39 yrs
31.3 yrs
Median age by 2025
India today is fast changing – setting the pace for growth and stability… TODAY
• One of the fastest growing world economies • Reasonably proactive
YESTERDAY
• Slow rate of growth • Bureaucratic • Protected and slow • Small consumer markets • Underdeveloped infrastructure
• Opening up of sectors for investment • Promising consumer markets • Significant investment in infrastructure creation for industry
INDIA ECONOMY – REGIONAL DEMOGRAPHICS TOURISM & IT TOURISM & IT
FINANCIAL & BUSINESS CENTRE
IT & EDUCATON
SILICON STATE TOURISM & IT
TOURISM & IT
KEY FACTORS •GDP $576 Billion. (GDP rate 8%) • Parliamentary form of Government • Worlds largest democracy. • Worlds 4th largest economy. • World-class recognition in IT, bio-technology and space. • Largest English speaking nation in the world. • 3rd largest standing army
COND . . . • 5,000 year old ancient civilization • 325 languages spoken – 1,652 dialects • 18 official languages • 29 states, 5 union territories • 3.28 million sq. kilometers - Area • 7,516 kilometers - Coastline • 1.3 Billion population. • 5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million.
ed By youth minist
•Foreign direct investment inflows •Fastest growing GDP •Sectoral growth
SECTOR WISE FDI INFLOW IN INDIA
Year 2000 vs. Year 2020 predictions US Japan Germany UK France Italy Canada China Brazil Mexico India Russia 0
5,000
10,000
15,000
20,000
GDP (US$bn)
India emerging as one of the top global economies
25,000
INDIA’S contribution to world’s GDP growth
SECTOR WISE GDP GROWTH OF INDIA
FOREIGN CURRENCY RESERVE GROWTH OF INDIA
Other key sectors Manufacturing Sector
Food processing
Textiles
• The government has recently set up a National Manufacturing Competitiveness Council • Progressive reduction in taxes and tariffs, India emerging as a manufacturing hub • Manufacturing exports from India likely to grow to USD 300 billion in 2015 from USD 48 billion in 2003
• India is the world’s largest producer of tea, sugarcane and milk • Processing industry is nascent but is growing rapidly • FDI of 100% permitted except in special cases, capital goods can be imported freely • All profits from exports are free of corporate tax and minimum alternate tax
• The second largest textile industry in the world • Textiles account for 14% of India’s industrial production and 27% of export earnings • National Textile Policy aims to take up the textile and apparel exports from USD 11 billion in 2004 to USD 50 billion in 2010
Other key growth sectors in India include: Telecom, Financial Sector, Insurance, Healthcare, Tourism, Entertainment, etc
The incentives and facilities offered to the units in SEZs • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units • 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years. • Exemption from minimum alternate tax under section 115JB of the Income Tax Act. • External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels. • Exemption from Central Sales Tax. • Exemption from Service Tax. • Single window clearance for Central and State level approvals. • Exemption from State sales tax and other levies as extended by the respective State Governments.
How will the global economic slowdown affect India's innovation potential?
• INDIA ranks second in the world in terms of financial attractiveness, people and skills availability and business environment.
• deepening recession will force Western companies to outsource even more of their knowledge work to India as they desperately seek to streamline their cost structure. • This will give a big boost to India's nascent Knowledge Process Outsourcing (KPO) market. • This is exactly what happened after 2000, once the dotcom bubble burst: IT outsourcing and Business Process Outsourcing (BPO) to India really took off.
India is one of the fastest growing automotive markets in Asia Pacific… Sales of passenger cars by country - 2003-2008
16
14.1
14
Million units
12 10 8 6
13.0 10.8
11.3
11.9
1.4 0.9 1.4
1.4 0.8 1.3
1.1 0.6 1.1 1.0
1.2 0.6 1.2 1.1
1.3 0.7 1.3 1.2
2.6
2.9
3.4
4.1
2.0
2.3
4.5
4.7
4.6
4.5
4.6
4.6
2003
2004
2005
2006
2007
2008
10.1 1.0 0.4 1.3 0.9
1.6
1.5
4 2 0 Japan India Thailand
Note:
China South Korea Others
"Others" includes Malaysia, Indonesia, Philippines, Taiwan and Vietnam Source: EIU, "World automotive outlook", 2004
Extra 3 million units expected from China and India
IT & IT-enabled sectors IT industry is one of the fastest growing
industries in India – grown at a CAGR of 29% over the last 5 years Industry like to maintain high growth and is expected to generate revenues of USD 62 bn by 2008 and USD 148 bn by 2012 (NASSCOM-KPMG estimates)
In India the IT sector employs around 650,000 people currently, which is likely to increase to 2 million by 2010
India seen as an outsourcing hub Huge export potential yet to be tapped
Government backing for the sector Infrastructure support through setting up of technology parks and continuing strengthening of communication facilities 100% FDI allowed in the sector through the automatic route India exports IT products and IT enabled services to 133 countries 220 of the Fortune 500 companies outsource their software from india
O
High end research, analytics and design, large pool of skilled technical personnel available Lower cost Higher value added services planned and new markets aggressively targeted
pportunities IT & ITeS Sectors