India Land of Opportunity - ASAE IC 2012 Tarnbir Kaur,CAE


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Presentation made by Tarnbir Kaur of MCI India/MENA region at the ASAE International Conference 2012

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  • In addition a local website adds the following to hot opportunities :IT and ITES industryAviation industryHotel and hospitality industryRetail IndustryHealth care industrySocial media marketingReal estate and land acquisition industryResearch and development
  • In addition a local website adds the following to hot opportunities :IT and ITES industryAviation industryHotel and hospitality industryRetail IndustryHealth care industrySocial media marketingReal estate and land acquisition industryResearch and development
  • In addition a local website adds the following to hot opportunities :IT and ITES industryAviation industryHotel and hospitality industryRetail IndustryHealth care industrySocial media marketingReal estate and land acquisition industryResearch and development
  • In addition a local website adds the following to hot opportunities :IT and ITES industryAviation industryHotel and hospitality industryRetail IndustryHealth care industrySocial media marketingReal estate and land acquisition industryResearch and development
  • India Land of Opportunity - ASAE IC 2012 Tarnbir Kaur,CAE

    1. 1. 2012 Association International Conference Land of Opportunity and Challenge: Build and Expand Business in India Tarnbir Kaur, CAE- Director, Association Management & Consulting, MENA & India
    2. 2. Our Agenda Why India? How India is unique? Size of opportunity? Understanding associations Challenges Strategies to use
    3. 3. Why India?
    4. 4. India – Overview• WEF Ranking of 51• Stage 1 - factor-driven country markets• Phased planning process since independence
    5. 5. Rise of Middle Class in India Huge Market for Global products and services • Average household incomes to triple over the next two decades • World’s 5th-largest consumer economy by 2025 • By 2025 India’s wealthiest citizens will total 24 million • Urban population to expand from 318 million to 523 million in 20255
    6. 6. Increasingly young populationYoung Population which will augmentproductivity of the Nation• Over 35% of India’s population is below the age of 20• Surplus of 47 million working people by 2020• Dependency ratio to drop from 60 today to 48 by 2025• Disparity in growth throughout the various states 6
    7. 7. Gradually improving Business Environment• Commitments to infrastructure more than 9% of GDP• Involvement of private sector increased in all aspects of development• Roads, Port, Power, Highways, Airports, Railways, Telecom and IT all a key priority for the government and have made remarkable achievements 7
    8. 8. Economic progress despite global recession  Growth driven by a step up in value chain in IT, pharmaceutical, manufacturing  FDI into India remains unaffected by the global slowdown  Manufacturing, communication services and the real estate sector major drivers of FDI  Special economic zones to accelerate exports 8
    9. 9. Leading Industries by sectorTop sectors attracting FDI equity inflows into India (FY11) Source: “Doing Business in India 2011” by Earnest & Young India’s 12th Five Year Plan
    10. 10. Frugal innovation leading to effective solutionsFrugal innovation emerged from drive innovation despitelimited resources and financial constraints Frugal products in the market in all sectors such as cars, consumer durables, banking solutions and computers Concept not new as demonstrated by the Six Sigma dabbawalas delivery system International companies leading frugal innovation in their Indian operations US $ 35 Tablet – Akash Entrepreneurial, indigenous companies 10
    11. 11. Urbanisation Source: “India Outlook 2011-12” by D&B “India Outlook 2011-12” by D&B
    12. 12. India’s Consumption Basket Source: Gale
    13. 13. Pronounced Skill Gaps“We will need to ensure far greater availability of educational opportunities at thehigher education level so that we have not just a literate youth but a skilled youth, with skills which can fetch them gainful employment. As our economy booms and as our industry grows, I hear a pressing complaint about an imminent shortage of skilled employees. As a country endowed with huge human resources, we cannot let this be a constraint.” Indian Prime Minister Manmohan Singh, Independence Day speech-2006
    14. 14. India- skill pyramid Source: FICCI and IMcas
    15. 15. Import of Higher Education in IndiaLack of quality institutions in India leading to interest fromwestern universities• India (11%) higher education compared to US (82%)• 185,000 Indians study overseas and spend US$ 13 Bn• Opening up of higher education sector recommended by National Knowledge Commission (NKC)• Foreign university partnerships increasing in India 16
    16. 16. Participation of Private sector in Educationto close skills gapPhenomenal growth in private education predicted in the highereducation sector• Ranking of 85 on the WEF Global Competitive Index pillar - Higher education and training• 30private equity and venture capital investors worth over $300 million• Education sector in India expected to reach US$64B in 2013 and US$107B in 2018 17
    17. 17. Growth Sectors and Manpower needs
    18. 18. Popular and most in demand professions byemployers seeking labourBased on research done by, India’sno. 1 job site, top jobs in India are in:• IT Software• BPO (Business Process Outsourcing)• Sales• Finance• Marketing• Engineering• HR Administration• Government jobs• Telecom
    19. 19. Sectoral Growth RatesThe 5- year Plan indicates that government policysupports an investment plan in the following 14 sectors: • Energy • Education and skill • Transport development • Sustainable management of • Social and regional equity natural resources • Challenge of urbanisation • Rural Transformation • Science and technology • Farm sector • Services: Tourism, Hospitality • Manufacturing sector & Construction • Health • Governance • Innovation
    20. 20. 21
    21. 21. Understanding India Before Liberalization After Liberalisation Contentment and Stability Striving to keep up with others (Hindu rate of growth) Swadeshi (Indian products) Making world class products that can be exported Self reliance Efficiency Isolation Exposure Ideology Pragmatism Protection Enabling Competition Skepticism about technology Embracing and using technology
    22. 22. Understanding India Indian Values Western Values Patriarchy Egalitarianism Ambiguity, Adaptability Clarity, linearity Low dissonance Need for resolution Socially defines roles Individually chosen roles Patience and passivity Impatience, assertion Continuing with tradition Constantly seeking change and novelty Happiness= self harmony Happiness=material gains Respect for age Respect for youth
    23. 23. Understanding India• Unique growth patterns and trends• Managing plurality• Constantly changing
    24. 24. Associations in India • Vibrant association culture • Easily incorporated under Society Act • Professional associations not very evolved with successful revenue models • Concept of lifetime membership • Value conscious market26
    25. 25. Indian Associations• 57 professional societies and 108 trade associations in India• Among the total 165 associations, 41 have membership >1,000, accounting for about 25%. Source: Gale
    26. 26. Popular certification programmes in India International Certifications Certification Association Chartered Wealth Manager American Academy of Financial Designation (CEM) Management India Certified Crop Adviser American Society of Agronomy (CCA) (ASA) Finance Certifications Certified Technical Analyst Association of Technical Analysts (CeTA) (ATA) Certification Issued Organisation Project Management Project Management Institute Certified Financial Planner Indian Institute of Financial Professional (PMP) (PMI) Education Programme Planning Certified Internal Auditor The Institute of Internal Auditors Certificate Course in Project Indian Institute of Banking and (CIA) (IIA) Finance Finance Certificate Programme in Indian Institute of Quantitative Quantitative Finance and Risk Finance Local IT Certifications Management Certification Issued Organisation VMware Certified VMWare Professional(VCP) Microsoft Certified Systems Microsoft Engineer (Security) (MCSE) Cisco Certified Network Cisco Professional (CCNP) Certified Information Systems Information Systems Audit and Auditor (CISA) Control Association (ISACA) Certified Information Security Information Systems Audit and Manager (CISM) Control Association (ISACA).
    27. 27. Lifetime membership fees Association INR USD Computer Society 8,500 160 of India Indian 6,728 127 Pharmaceutical Association Association of 5,000 95 Physicians of India The Association of 1,500 2829 Engineers, India
    28. 28. Association event registration fee Association INR USD Computer Society of 2,000 38 India Indian Pharmaceutical 5,000 95 Association Association of 4,500 85 Physicians of India The Association of 3,600 68 Engineers, India30
    29. 29. Challenges • Corruption • Complicated tax and legal structure • Infrastructure • Government control • Administrative and political reform32
    30. 30. India- ease of doing business Source: World Bank
    31. 31. Regulations (For profit organisations)Foreign entities who want to trade in India or carry outtheir operations can carry out in the following forms:• Through a full fledged representative in India taking management decisions and carrying on business in India as an Indian Entity this may be referred to as the Permanent Establishment in India.• Through a representative limited in transactions in India – i.e. the basic management rests out of India and only the representative is there to facilitate a contact between the customer/client and company.• Through a 100% subsidiary incorporated in India called the Indian Arm.• Through a Liaison office 34
    32. 32. Success achieved by “Global Indianised” products Only global products that have reviewed the needs of the Indian market and adapted accordingly have been successful • Continued success of Indian companies such as Infosys, TATA, Reliance, WIPRO and ICICI over its international competitors • Success of international companies such as Google, Nokia, LG and Facebook that have adapted to local needs • Price conscious consumers and dramatically different needs for various segments needing different products for each segment • Local management teams that understand the local culture, needs and challenges. With the demand being driven by needs that are arising from local requirements, will your association be able to customize or innovate some of its products from content, pricing and delivery methods to meet the local demands? 35
    33. 33. Strategies for Growth• Its all about relationships• Creating relevance for many segments• Creating perceived value advantage• Getting business economics right• Multipronged strategy36
    34. 34. Thank you for your attentionTarnbir Kaur, CAEDirector- Association Management and Consulting, MENA and IndiaMCI Group+971 4