Welcome To India Ran

An URGE to Invest in INDIA

Presented by : Sharanjeet Singh (50701517)

- Biotechnology - Banking - Telecommunication - Power

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

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What is the India story?

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Average annual GDP growth

(%) 10

9.0

8

100 80

80

8.0 6.0

6 4

(%)

65

60

3.5

52

40

1.0

2

17

20

0

0 1900-1950

1950-1980

1980-2002

2002-2006

2006-2008

1950

Poverty is declining

2000

2010

Middle class is exploding

(%) 50 40

1980

500 46

30

400 300

26

200

20 16

10 0

100 0

1980

2000

2010 (proj)

1980

2000

2010

1% of the people have been crossing poverty line each year for 25 years Equals ~ 200m

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Advantage India… Rated as the second best destination for manufacturing projects and the most attractive investment destination-IBM

Largest English speaking nation in the world

One of the lowest

Rated among the most favourite investment destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.)

cost destination in the world Largest Democracy in the world

One of the oldest stock exchanges in entire Asia

Operates under English common law and based on English style justice system

Advantage India

Superb banking systems and well developed financial systems. 2nd largest pool Best technology

of scientists and

licensing regime

engineers in the

- UNCTAD’s

World

Harmonized Intellectual property rights laws India has been rated as the most attractive

Global

investment

Competitivenes

destination for

s Report, 2007

offshoring

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Views… India has among the highest returns on foreign investment

India is among the two most attractive FDI destinations in the world A T Kearney FDI Confidence Index 2007

US Department of Commerce By 2032, India will be among the three largest economies in the world

BRIC Report Goldman Sachs, October 2006

“We came to India for the costs, stayed for the quality and are now investing for innovation.”

- Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005

“India is a developed country as far as intellectual capital is concerned.”

Jack Welch General Electric

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India’s Competitive Advantage vis-à-vis Other Nations India- Fact File

  Quantity and quality of manpower

Surplus



India

Projected workforce in 2020

Turkey Brazil

China Malaysia

Mexico Philippines Israel

  

Ireland Russia

Shortfall Low

People strength • Productivity/quality • Cost • English language skills

High

9 Source: World Competitiveness Yearbook 2007; Britannica Yearbook, CIA, World factbook, May 2007 ,BCG ; Literature search; E&Y analysis

Up to 100% under ‘Automatic Route’ in all sectors except a small negative list

More sectors opened; Equity caps raised; Conditions relaxed; Foreign Exchange Management

up to 74/51/50% in 111 Sectors under ‘Automatic Route’ 100% in some sectors Up to 51% under ‘Automatic Route’ for 35 Priority Sectors Allowed selectively up to 40%

Pre 1991

1991

1997

2000

Post 2000

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Recent policy changes:

 Ban against using foreign brand name has been lifted.

Corporate tax for foreign companies reduced to 41%. 5 year tax holiday extended to enterprises engaged in infrastructure. 100% FDI for biotech, titanium mining ore.

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Booming Sectors - BIOTECHNOLOGY - POWER - TELECOMMUNICATION - BANKING

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The Indian Pharmaceutical industry (including exports) is expected to grow at 23% p.a. till 2010

The domestic market is expected to double in the next 5 years to over $10 billion

Opportunities The Biotech industry for fresh investment in 5-7 yrs –US$ 2bn

The Biotech industry is projected to grow at a CAGR of 39%

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POLICY

 

 OUTLOOK

    

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Telecommunication   

OUTLOOK

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POWER SECTOR –

PRESENT SCENARIO

India currently has around 145,000 MW production capacity (March 2008).

The Planning Commission has estimated that around 78,000 MW of new power facilities will be set up over the next 5 years.

This would require Investment of around US$ 73 billion.

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India has the fifth largest electricity generation capacity in the world Opportunities in Generation for:   Ultra Mega Power Plants (UMPP) – 6 projects of 4000 MW each  Coal based plants at pithead or coastal locations (imported coal)  Natural Gas/CNG based turbines at load centers or near gas terminals  Hydel power potential of 150,000 MW is untapped as assessed by the Government of India   Renovation, modernization, up-rating and life extension of old thermal and hydro power plants   Private sector participation possible through JV and 100% equity mode Total investment opportunity of about US$ 200 billion over a five year horizon

Total estimated invest opportunities Of US $150 billion till 2012.

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India Australia

12 11.8

Malaysia China

11.5

Korea

11.5

Taiwan

10.5

Singapore Philippines Japan

7.8 7.5 7

Return on equity Source jp Morgan

India has higher return on equity than other countries in Asia

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Is this the right time? … It is

Vibrant Economy

Booming Consumerism

Time to secure + first-mover advantage in India

Relaxing FDI norms

Resplendent Market

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Explore.. Envision.. Invest 21