K.E.S SHROFF COLLEGE OFLOGO ARTS AND COMMERCE. LOGO SUB:EQUITY MARKETS. CLASS: S.Y.Bcom(FM) SEM: 3RD SEMESTER YEAR: 2011-12 GUIDED BY : MISS PRIYA SHROFF. TOPIC: BOOM PERIOD OF INDIA INC.
GROUP MEMBERS • KALPESH GUPTA 10 • PAWAN MAMANIYA 21 • SONU PETHANI 34 • SAGAR SHAH 42 • VIRAL SHAH 45 • MAHESH TRIPATHI 47 • DARSHAN UDESHI 49
The boom period for India Inc Boom time for Indias Economy•Indias economy has joined the ranks of theworlds fastest growing economies, officialfigures show•The economy expanded at a scorching 8.6%between July and September.•Experts put the surge down to the best monsoonin a decade - India is heavily dependent onagriculture which accounts for 25% of its grossdomestic product.
Growth In Retail sector•Is said to be the fastest growing sector in the Indianeconomy.• India’s retail sector is the ninth largest retail marketin the world, where the huge middle class populationis attracting the global players to enter in tothe country, and a 25% growth is expected in theorganized sector annually.•There is been a growth of about 50-60% in smalltown and 35-40% in the large citiesinorganized sector.•The rising income levels, a rise in retailingthrough online shopping and global exposure hashelped the leading industrial houses to enter into thismarket to serve the needs of the consumer.
Limitations in Retail sector•Some shopkeepers are against big foreign stores moving to India.•The demolition has released Indias remarkable entrepreneurial talent. Americahas coined a new word - "Bangalored" - to describe the fate of the large number ofIT employees who lose their jobs to Indias IT capital, Bangalore.•The big international names in the motor industry now have plants here and theyare all being given a good run for their money by cars designed as well as made inIndia.•Indian companies are now taking over foreign companies like the Anglo-Dutchsteel manufacturer Corus.•India argues its specific political and economic problems mean that it must retainfreedom to direct its economy, and to control the market.
Economic boom invites more retail players into the sectorOut of the companies that responded to this survey, 23% were establishedbefore 1990. Players like Tribhovandas Bhimji Zaveri, Nilgiris, and BombaySwadeshi Stores, to name a few, have been successfully operating in the sectorfor decades. Over the past five decades many of today’s retail majors likeVijay Sales, Khadim’s, Fabindia, Rhythm House and Apollo Pharmacy madeheadway for the sector and mostly operated only in the metros; however, thescenario changed dramatically post-liberalisation.
Expansion plans continue in next two years.As mentioned earlier, the retailers in India are optimist about growth of theindustry in spite of global slowdown. A majority of the respondent companies(49.1%) feel that the industry will achieve an annual growth rate of 15-25% in thenext two years while 36.1% companies feel that the industry will grow annually by5-15% during the same period. India has achieved moderate growth during thetime when most of the countries across the globe are falling prey to slowdownand recession and this is one of the key reasons why an average Indian retailer isconfident about the growth of the industry.
Growth In industry Sector In IndiaThe different industry sectors of India witnessed astronomical growth over thelast 15 years. This growth of the different industry sectors of India is attributedto the Government of Indian liberal economic policy.
Growth of financial sector in India•The growth of financial sector in India at present isnearly 8.5% per year.•The rise in the growth rate suggests the growth of theeconomy.•The financial policies and the monetary policies areable to sustain a stable growth rate.
The growth of financial sector in Indiawas due to the development in sectors.•Growth of the Capital Market in India.•Growth in the Insurance sector in India.•Growth of the Venture Capital market in India.•Growth of Derivatives.
Banking Sector Developments in India IntroductionThe banking system is central to a nation’s economy.Banks are special as they not only accept and deploy largeamounts of uncollateralised public funds in a fiduciary capacity, butalso leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly tothe urban areas and neglected in the rural and semi-urban areas.Agriculture, small-scale industries and exports did not receive thedeserved attention. Therefore, inspired by a larger socialpurpose, 14 major banks were nationalised in 1969 and six more in1980.
ConclusionThe domestic demand-driven growth momentum is likelyto continue with sectors like automobile, cement, capital goods and fast moving consumer goods (FMCG) companies leading from the front. Analysts expect 25% growth in bottomline following the strong economic growth, rise in infrastructure spending and pick-up inmany sectors to drive corporates this fiscal. In the March quarter, India Inc showed a 43% rise in profits and 10% growth in sales over the December quarter.