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GDP Growth
1990 4.9 percent
Forex
< USD 1 billion
FII Flow 93
USD 1 million
FDI
USD 97 million
Per Capita
USD 390
Inflation
9 percent
2007
9.4 percent
USD 15 billion
USD 16 Billion
USD 720
3.4 percent
The Indian economy has witnessed unprecedented growth. Booming services and industry sectors are providing the required impetus to economic growth
India's GDP at Current Prices: 2002-07 900 800 700 600 500 400 300 200 100 0
USD Billion
Fastest GDP growth of 9.4 percent in 2006-07, since last 18 years (at constant prices)
556 638 737 830
469
Indian economy is expected to be 3rd largest in terms of PPP USD 4.5 trillion by the end of 2007
USD Billion
The sound performance of each industry segment is leading to the overall robust performance of the Indian economy
900 800 700 600 500 400 300 200 100 0 191 103 105
Growth in sectors at Current Prices (2006-07): Industry: 16.2% Services: 16.3% Agriculture: 10.2%
453 398
Estimated growth rate in various GDP sectors for Q1 (2007-08) is: Industry 15.9 percent, Agriculture 11.4 percent and Services 15.7 percent
USD Billion
152
at present level of Forex reserves, the country has adequate cover for 12 months of imports
Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Forex reserves witnessed an increase of 200 percent for the period 1990-2007
Ratio
16
Increased confidence of investors in Indian companies has led to a surge in cross border borrowing by corporate houses
13
the decreasing external debt to GDP ratio indicates that India has a sound economic platform
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
10
USD Billion
Acceptance of Indian products along with the cost advantage has provided an edge to Indian companies
Quality and cost advantage are the two important parameters leveraged by the Indian producers to increasingly market products and services
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08 (AprilJuly)*
* - 2007-08 provisional data for period of April to July only
USD Billion
Indian companies have chalked out extensive plans to increase their presence abroad
India's Imports: 2002-08 250 200 149.65 150 100 50 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (AprilJuly)*
* - 2007-08 provisional data for period of April to July only
Petroleum products are the major contributors towards Indias growing imports
confidence index
5,546
4,909
Electronic equipment, manufacturing and telecom have witnessed significant FDI inflow
FDI inflow for the period 2006-07 witnessed a growth of 180 percent over the same period last year
USD Billion
10.00
10.20
9.40 6.71
1.80
0.60
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (till 12 October)
2001-02
India is among the major destinations across the globe for inflow of US Dollar i.e. FIIs
10/9/2007 Crossed 18,000 mark Sensex has risen 18 times in the period 1990-2007
20000 18000 16000 14000 12000 10000
30 December 1999 Crossed 5,000 mark 07 February 2006 Crossed 10,000 mark 09 July 2007 Crossed 15,000 mark
Emergence of industry and confidence of local investors along with the FIIs has led to increased movement of the Sensex
FIIs have infused large investments into the Indian stock market
SECTOR
28.2 782 900 800 700 600 500 400 300 200 100 0
Automotive
USD (Mn)
518 1,375 1,133 896 1,484 1,327
SECTOR
Manufacturing Media Oil & Gas Pharma & Biotech Telecom Others
USD (Mn)
933 630 384 2,520 2,198 4,006
Number of deals
Banking and Financial Chemicals and Plastics Electrical and Electronics Energy FMCG, Food and Beverages IT and ITES
15 10 5 0
2,903
Total
20,305
In 2006, there were a total of 480 M&A deals and 302 private equity deals Average deal size close to USD 36 million Average private equity investment deal size increased to USD 26.02 million in 2006 from USD 16.4 million in 2005
Indian companies have clocked M&A deals approximately worth USD 31 billion during the first eight months in 2007
USD 6 billion
10
Plans to spend on its development operations in India over the next four years
Plans investment in private equity, real estate, and private wealth management
USD 1 billion
Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake
Renault, Nissan and Mahindra & Mahindra have initiated a Greenfield automobile plant project in Chennai.
11
GRDI Score
the retail market along with the services sector has been attracting interest of major global players
2007 Global Services Location Index India 3.2 2.9 2.8 3.2 2.6 3.3 1.3 1.2 1.8 1.5 2.3 2.3 2 1.6 1.5 1.1 1.4 1.4
AT Kearney has placed India as the most preferable destination for Services sector
India is the top destination in the AT Kearney Global Retail Development Index (2007)
India is expected to outperform its rivals in the BRIC, in terms of GDP growth rate, from 2015 onwards
2020-25
2025-30 China
2030-35 India
2035-40 Russia
2040-45
2045-50
12
Population (million)
9 48 221 726
2001-02
2005-06
2009-10(E)
* In PPP terms
Increasing per capita income and a growing middle class is driving a high level of consumerism in India
651
USD
Increasing per capita income coupled with an emerging middle class has provided the necessary impetus to consumerism in India
2002-03
2003-04
2004-05
2005-06
2006-07
13
195
245
295
345
Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a clear winner, and by 2050, it will have the largest working age population.
Source: Its Hendersons
14
2010
GDP (at constant prices) USD 900 billion
2008
GDP (at constant prices) USD 750 billion GDP growth rate 9.5% Services contribution 60 % FDI limit is expected to be close to 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc.
GDP growth rate 9% Services contribution 60-65 % Investment target USD 370 billion
2006
GDP (at constant prices) USD 590 billion GDP growth rate 9 % Services contribution 54 % FDI limit less than 100 per cent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade USD (-)46.2 billion Investment target USD 250 billion
15
I have never seen India so dynamic, vibrant and full of business opportunities.
By 2032, India will be among the three largest economies in the world.
We came to India for the costs, stayed for the quality and are now investing for innovation.
The Indian market has two core advantages - an increasing presence of multinationals and an upswing in the IT exports.
- Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005
India is a very exciting market and the luxury car segment is growing exponentially here.
Mr Paul de Voijs Managing Director Volvo Car India
16
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