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India
33.7
23.0 19.7
Russia
Brazil
7.6 5.0
15% 10% 5% 0% 0% 1% 2% 3% 4% 5% 6% 7%
China
Share of Global FDI 8% (2008)
2000-04 (Average)
2005
2006
2007
2008
Source: World Investment Report, IHS Global Insight, CIA, DIPP, Ministry of Finance, World Economic Forum, Media Reports, Booz & Company Analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009
FDI growth in line with overall investment growth - local market demand key driver
Reasons for FDI Investment
Booz & Co. and AMCHAM Survey (% of Respondents)
86%
5.6%
5.6%
Labor Availability
Political Stability
2000-04
2005
2006
2007
2008
Source: Booz & Company and AMCHAM Survey; DIPP: Global Insight; Booz & Company analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009
10.3
Infrastructure
22.2 19.7
3.0 5.7
10.5
Manufacturing
8.2
2007
2008
Undecided
20%
Developed Economies
10 5
Aug 2008
Sep 2007
Dec 2007
Sep 2008
Dec 2008
Feb 2008
Jun 2008
# of Approvals
Feb 2009
Mar 2008
Jan 2008
Apr 2008
Jan 2009
Oct 2007
Oct 2008
Nov2007
Nov2008
Jul 2008
No change
0.0
France
Developed Nations Average
United States
Developing Nations Average
Worldwide Average
China
Weakened FDI
Strengthened FDI
Russian Federation
Hong Kong
Brazil India
Turkey
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Developed Economies
Source: Global Insight, Booz & Company analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009
Developing Economies 5
Long-term Drivers
More Attractive
29%
2
52%
Availability of capital
Less Attractive
0%
Improved Infrastructure
? ?
6
Undecided
19%
5
Source: Booz & Company and AMCHAM Survey; Booz & Company analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009
Indias opportunity
Sectoral(1) Comparison of FDI Investment
(Various Years from 2000-2008(2))
18%
15% 25% 41% 8%
Infrastructure
16%
Brazil
14% 12%
Russia
10% 8%
India China
48% 46% 47% 19% 11% India Brazil Russia China Services
6% 4% 2% 0% 2005
2006
2007
2008
1) Multiple sectors reported by DIPP Have been combined together into the three higher level sectors 2) Same year data not available across countries, so representative years used from 2000 to 2008; India data is Jan 2008 to Sep 2008 Source: Respective Central / Reserve Bank Statistical Databases, Research Reports, UNCTAD, Booz & Company Analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009
Infrastructure Development
60%
55%
Reduced Bureaucracy
40%
25%
20%
Source: Booz & Company and AMCHAM Survey; Booz & Company analysis
Booz & Company AMCHAM India 090324 FDI Summary Presentation vf.ppt Friday, 24 April 2009