India as business enterprise


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For students of intro to business. What if they were to look at India as a business enterprise. So here is a look on India as a business enterprise.

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  • Total allocation Rs1,000 crore
  • Banking and Insurance
  • India as business enterprise

    1. 1. Presented by – Sonu Gupta Amol Dhurde Nikita Das Rohan Kulkarni Ankita Walke Bharat Singh Sumesh Parkar
    2. 2. Geographical area 32,87,240(7th )  Population 121,01,93,422(2nd) GDP rate $4.711 trillion (3rd)(PPP) $1.947 trillion (10th)(nominal)
    3. 3. private consumption + gross investment + government spending + (exports − imports)
    4. 4. 1.821 trillion
    5. 5. 4.684 trillion
    6. 6. BY SECTOR BY LABOR FORCE 17% 27%56% Sales agriculture industry services 52% 17% 27% 4% Sales agriculture industry services unempioy ment
    7. 7. Industry and services Textile Services Retail Tourism Mining Agriculture Banking and finance Energy and power Infrastructure
    8. 8. INDUSTRY AND SERVICES MINING  Industry accounts for 28% of the GDP  employs 14% of the total workforce  India is 11th in the world in terms of nominal factory output  Mining forms an important segment of the Indian economy.  producing 79 different minerals  Such as Ironore, manganese, mica, bau xite, chromite, silica limestone, asbestos fluorite, etc .
    9. 9. TEXTILE AGRICULTURE  Textile manufacturing largest source of employment after agriculture  accounts for 20% of manufacturing output, providing employment to over 20 million people  But demand for Indian textiles in world markets continues to fall.  India ranks 2nd worldwide in farm output  Agriculture and allied sectors accounted for 14.0% of the GDP  employed 58.00%  India is the largest producer in the world of milk, jute and pulses  second largest cattle population with 175 million
    10. 10. SERVICES BANKING AND FINANCE  india is 13th in services output  services sector provides employment to 23% of the work force  growing quickly, with a growth rate of 7.5%  7 Indian firms were listed among the top 15 technology outsourcing companies in the world  Prime Minister Indira Gandhi nationalized 14 banks in 1969 + 6 others in 1980  mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, etc  India's gross domestic saving more then 32.7%.
    11. 11. RETAIL ENERGY AND POWER  Retail industry is one of the pillars of Indian economy and accounts for 14–15% of its GDP  The Indian retail market is estimated to be US$ 450 billion and one of the top 5 retail markets  India is one of the fastest growing retail market  of India is the 4th largest producer electricity and oil products  fourth largest importer of coal and crude-oil in the world  India had an installed power generation capacity of 185.5 Giga Watts(GW)
    12. 12. Tourism in India is relatively undeveloped, but a high growth sector It contributes 6.23% to the national GDP 8.78% of the total employment The majority of foreign tourists come from USA and UK India's rich history and its cultural and geographical diversity make its international tourism appeal large and diverse.
    13. 13.  India has the world's third largest road network covering more than 4.3 million kilometers and carrying 60% of freight and 87% of passenger traffic  is the fourth largest rail network in the world, with a track length of 114,500Km.  13 major ports handling a cargo volume of 850 million tones  India has a national teledensity rate of 74.15% with 926.53 million telephone subscribers
    14. 14. Public debt 67.59% of GDP Budget deficit 5.2% of GDP Revenues $171.5 billion billion Expenses $281 billion billion Economic aid $2.107 billion Foreign reserves $295.29 billion
    15. 15. Public Sector companies are the companies that are owned and operated by the government. The government level can be national, state or local. These companies provide basic government services.
    16. 16. •1960-1980 - 3.5% • 1980-1990 - 5.4% •1990-2000 - 4.4% • 2000-2009 - 6.4%
    17. 17. Contribution of different sectors in GDP Below are the contributions of different sectors in the India's GDP for 1990-1991 Agriculture: - 32% Service Sector: - 41% Industry: - 27% Below are the contributions of different sectors in the India's GDP for 2005-2006 Agriculture: - 20% Service Sector: - 54% Industry: - 26% Below are the contributions of different sectors in the India's GDP for 2007-2008 Agriculture: - 17% Service Sector: - 54% Industry: - 29%
    18. 18. Fiscal Deficit. Aamdani atthanni kharcha
    19. 19. What is fiscal deficit?  Fiscal deficit is the difference between the government’s expenditures and its revenues (excluding the money it’s borrowed). A country’s fiscal deficit is usually communicated as a percentage of its gross domestic product (GDP).  Considering that the Indian economy is growing between 5 to 5.5 percent in the financial year ended March 2013, fiscal deficit is definitely a challenge to the economy. According to the World Bank, growth in India is projected to rise to 6.5 percent and 6.7 percent in FY2014 and FY2015, respectively.
    20. 20. What are the causes of fiscal deficit? Some main factors are  Government spending  Inflation  Lower revenue One way the government earns money, is through taxes. For example, if the government lowered taxes or provided tax concessions to a particular group of people, then it would earn less, leading to an increase in fiscal deficit. And that’s one of the reasons why you will find the government giving a face-lift to the tax structures. In the same context, cutting of custom duty and excise duty will lead to declining revenues. Like India, many developing countries are making an effort to resolve big fiscal deficits. On the bright side, for India, among other sources of revenue, foreign investments and inflow of remittance s from Indians living overseas has helped avoid very high deficits. Fiscal deficit does not come about only in case of creating less revenue and spending more money. Another major reason for a growing fiscal deficit can be slow economic growth or sluggish economic activities.
    21. 21. How fiscal deficit can be bad for India?  A large fiscal deficit is an indication that the economy is in trouble and will have reasons to worry.  A high fiscal deficit could pose an  Inflation risk,  Minimize the growth of the economy,  Doubt the government’s abilities.  It is believed that high fiscal deficit can be corrected. For example, if the government could not control its expenditures, it could raise taxes to cover up for the extra amount of money spent. When taxes increase, consumers will involuntarily have to cut down on their expenditure to pay the government.  Did you know that several government projects are stalled because of high fiscal deficit? Here’s why. When a country labors under high fiscal deficit, it limits the government’s spending capacity and this has an effect on the continuous funds various projects need. For example,  Infrastructure projects  Welfare policies  Education and healthcare projects, etc.
    22. 22. Why is India’s fiscal deficit continually high?  While the government fights to manage money, here are a few reasons why India has a soaring fiscal deficit.  It is high because in the corporate sector,  Bailouts are becoming common and  Subsidies are being high.  The money that the government earns through non-tax revenue is not big and the money it earns from taxes is not enough.
    23. 23. • Meaning •Types of revenue •Types of expenditure •Sectoral analysis
    24. 24. Head In Crore of Rupees Tax Revenue 8,84,078.32 Non Tax Revenue 1,72,252.38 Capital Receipts 6,08,966.62 Grand Total 16,65,297.32
    25. 25. Defense Health Education Women & Youth Agriculture Banking & Insurance
    26. 26. *Image via Bing Total allocation Rs 2,03,672 crore DEFENCE
    27. 27. *Image via Bing Total allocation Rs 2,03,672 crore
    28. 28. *Images via Bing Special focus on medical education, trai ning and research New National Health Mission to get Rs 21,239 crore
    29. 29. *Image via Bing Total allocation Rs 65,867 crore
    30. 30. Mid-day meal programme gets Rs 13,215 crore *Image via Bing *Images via Bing SSA gets Rs 27,258 crore
    31. 31.  An all-women bank by November 2013 with an initial capital of Rs 1,000 crore  Rs 1,000 crore Nirbhaya Fund, named after Delhi gangrape victim, to empower women *Image via Bing Special allocation Rs 200 crore
    32. 32. Rs 1,000 crore for skill development of 10 lakh youth to enhance their employability*Image via Bing Special allocation Rs 1000 crore
    33. 33. *Image via Bing Total allocation Rs 27,049 crore
    34. 34. Total Allocation Rs 14,000 crore
    35. 35. Definition of 'Private Company' A company whose ownership is private. As a result, it does not need to meet the strict Securities and Exchange Commission filing requirements of public companies.
    36. 36. Amul Ambuja Cement Apollo Tyres Infosys Technologies Ltd. Bank Of India ITC Limited LIC Insurance
    37. 37. With an Annual GDP growth rate of 7-8 percent India is the one of the fastest growing economies in the world. This stable annual GDP growth rate that India is witnessing is mostly due to the rise of the major private sector companies in the country.
    38. 38.  1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.  2. Minimum number of members : Minimum number of members required to form a private company is 2, whereas a Public Company requires atleast 7 members.
    39. 39. 3. Maximum number of members : Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company. 4. Number of Directors : A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have atleast 3 directors.
    40. 40. 5. Shares Warrants : A Private Company cannot issue Share Warrants against its fully paid shares, Whereas a Private Company can issue Share Warrants against its fully paid up shares. 6. Special privileges : A Private Company enjoys some special privileges, which are not available to a Public Company.
    41. 41. Contribution of Genetic, Extraction, Manufacturing, Constru ction and Commerce Industries
    42. 42.  It is an industry that involves activities in reproducing and multiplying certain species of plants and animals for the sake of earning profit from their sale.  It is going to be India’s leading industrial sector in future.  Fish culture,Cattle breeding, goatery and piggery are included in genetic industry.  There are 325 major companies working in this sector in India.  Some of the top companies are – Mahyco, Metahelix life sciences ltd.,Bio Con,Panacea Piramal,Nicholes Piramal.  The growth rate of the sector is 3% to 4% annually.  The total revenue generated annually is around 2 billion US dollars.
    43. 43. This industry involves in activities like mining, quarrying, digging of oil wells and gas reservoirs.  India is one of the most important market for petroleum products and crude oil.  This industry is attracting attention of many international players.  The major companies in this field are – ESSAR Oil Ltd, Mazagaon Dock Ltd, Reliance Industries Ltd.,JK Industries, Oil India.  Revenue generated by this industry in the year 2012-13 is Rupees 4 lakhs crores.  The growth rate of this industry in India is 4.1 % in 2012-13.  This industry has a very good job potential.
    44. 44.  Manufacturing industry involves the use of tools and processes to transfer raw materials into finished goods i.e goods from shoes to ships.  India has a large and diversifies manufacturing basis.  Thus India’s manufacture sector has a very huge potential.  Government of India has announced many policies and reforms in manufacturing industry  It is a labour intensive industry and many multinational players are there in Indian manufacturing industries.  Some of the major manufacturing companies are – Tata motors, L&T, Maruti Suzuki and SAIL, ITC Ltd.  Revenue generated by this sector in 2013 is 13.8 billion dollars.  Growth rate of this industry in India is 50.1 % in the year 2013.
    45. 45.  This industry has many associated sectors i.e. from dam – to- flyovers -to – airport construction  It is a very important indicator of economical development of the nation  Leading companies in this sector are – Unity Infra Projects Ltd, Pratibha Industries, Shapoorji and Paloonji, UB Construction, Godrej Real Estate, P.D.Construction.  Revenue generated in the year 2013 is Rupees 670,778 crores.  More than 35 million people are employed in this industry.  Growth rate of this industry in India 20% in may 2013.  More than 500 construction equipment manufacturing companies are dependent on this industry.
    46. 46.  Commerce is a process in which businesses and individuals take part in exchange of goods and services in exchange for money.  It has two main parts – Trade services and Ancillary services.  Trade takes place between producer and consumer . There is a trade at national level and international level.  Ancillary services are those that are supportive services and secondary services.  Major companies in trade are – India Trading Company, Geojit Trading Company .Shakti Traders.  Major ancillary services are – LIC, Stock Exchange, Ghai Finance.  Total revenue generation in trade in year 2013 is Rupees 23,277 crores. The growth rate is 6.1 %.  Total revenue generation in ancillary services in 2013 is 11,012 crores . The growth rate is 2,98%.
    47. 47.  India’s exports reversed the trend in October, 2009 by registering a positive growth of 3.4%. The upward trend has been maintained since then wherein exports grew at the rate of 30.0 % in 3.4%  On a cumulative basis, merchandise exports stood at US$ 300.6 billion, declining by 1.8 percent, in FY 2012-13 as compared to the export of US$306.0 billion in FY 2011-12 (21.8 per cent)
    48. 48.  Merchandise imports in the FY 2012-13 recorded a marginal growth of 0.4 per cent amounting to US$ 491.5 billion compared to a growth rate of 32.3 percent at US$ 489.3 billion.  The decline was mainly led by a fall in gold and non-oil non-gold imports. Fall in non-oil non-gold was more on account of a slowdown in domestic activity and dampened demand for export related items.
    49. 49. 0 50 100 150 200 250 300 350 400 450 500 EXPORTS IMPORTS
    50. 50.  India should reduce their imports & increase their exports. As there is trade deficit in India.  This can only be done when the government will change their policies & they should not be depend only on the product which is exported from other countries.  India have most of their imports from & exports to Asia & ASEAN countries.