INDIAN ECONOMY

Presented by: Pavan P Kannav Roll no: G-45

Growing Indian Economy

2010

GDP USD 1.36 trillion GDP growth rate 9%

Services contribution 60-65%

Balance of Trade Negative balance should increase with surging imports versus exports Investment goal USD 370 billion

2008

GDP USD 1.16 trillion GDP growth rate 9.5% Services contribution 60% Balance of Trade Negative balance should increase with surging imports versus exports Investment goal USD 305 billion 2006 GDP USD 590 billion GDP growth rate 9% Services contribution 54% Balance of Trade USD (-)46.2 billion Investment goal USD 250 billion

*: Projected
Source: Economic Times & India Brand Equity Foundation (IBEF)

Major M&A and Investments Announcements in India

POSCO to invest in building steel manufacturing plants and facilities in India by 2016

USD 12 billion

Plans to establish three manufacturing plants to produce photo-voltaic units

USD 2 billion

Plans to spend on its development operations in India over the next four years

USD 1.7 billion

Source: India Brand Equity Foundation (IBEF)

India Inc. Investing Overseas

Main sectors:
Auto Components Beverages Cosmetics IT Metals Mobile Communications

Energy
Financial Services Industrial Goods

Pharmaceuticals
Software

Main Destinations:
China, UAE, UK North America is emerging as a destination.

Additional economic indicators:

India has a consumer base of 1.14 billion people India is the 4th largest economy in the world when measured by PPP Indias has a growing middle class of over 300 million people - 30% of Indias population and larger than the population of the US India is the 3rd largest global telecom market. The mobile subscriber base has grown from 0.3 Million in 1996 to over 250 million currently. India is likely to add over 200 shopping malls by 2010 and 715 malls by 2015 The number of billionaires in the country were 3 in 1999; 23 in 2006; and are 48 currently.

India co. going Global

Buyer Acquisition Price

Reliance Industries
Tata Motors

Flag Telecom, Bermuda

Daewoo, Korea

US$ 212m
US$ 118m

Infosys Technologies

Expert Information Services, Australia

Carl Dan Peddinghaus, Germany RPG (Aventis) Laboratories, France CP Pharmaceuticals, UK Alpharma SAS, France Straits Ply, Australia NerveWire Inc, USA Dashiqiao Chem, China Oryzalin Herbicide, USA

US$ 3.1m
N/A N/A US$ 18m US$ 5.7m US$ 56.4m US$ 18.5m US$ 8.5m US$ 21.3m

"Toyota Motor has chosen to source from India due to its competitive cost of manufacture, availability of abundant engineering talent, and strong indigenous machine tool."

Bharat Forge Ranbaxy Wockhardt Cadila Health Hindalco Wipro Aditya Birla United Phosphorus

Automotive Sector - Overview

India is the worlds: 2nd largest two-wheeler market,

4th largest commercial vehicle market

11th largest passenger car market.

Expected to be the 7th largest automobile market by 2016

India has become an attractive destination for global American, European, Japanese and Korean OEMs.

Source: IBEF, Economic Times

Agriculture

Agriculture acquired 17% of Indias GDP in 2008. 60% of population still depends on agriculture for their livelihood. Occupied 43% of Indias geographical areas. All other sectors are growing at much faster.

What are people talking about India?

"India has a fantastic pool of software professionals. The world needs to benefit from this. This market (India) is critical to our plans for building a Ford Motor Co. for the 21st century

Bill Gates, Microsoft Chairman

Bill Ford, Chairman and CEO

India on its way to becoming IT, manufacturing kingdom of the world Mr Yasukuni Enoki, Japanese Ambassador to India

The dynamism shown by India in the last 15 years is phenomenal

Paul Wolfowitz, President, World Bank

Indias Problems
High growth but problem of unemployment. Need to generate 10 million jobs per year. Multi party rule, hence need to accommodate political ideology with economic reality (reservation, labour law reforms).

Conclusion

Companies in India That Have Successfully Met Competition by Multinationals & Domestic Companies Had A Spirit Of Innovation Not Only In Their Products And Services But Also With Reference To All Their Resources And Effectively Restructured Them In A Time And Cost Frame And Met Customer Needs And Improved Their Top And Bottom Line.

Thank You