By
RaviThomas
 Where are we coming from?
 Where are we now?
 Where are we going?
Where Are We Coming From?
The world is just discovering it yet
India’s growth story is NOT new.
She has been going strong ...
 5,000 year old ancient civilization
 325 languages spoken – 1,652 dialects
 18 official languages
 29 states, 5 union...
India's per capita income is projected to soar by 10.4 per cent in 2013-14
as the country becomes a $1.7 trillion economy.
(%)
(Years)
Sources: 1900-1990: Angus Maddison (1995), Monitoring theWorld Economy, 1990-2000: Census of India (2001)
Popu...
900 million cell phone subscribers in India. 74.09 phones per 100 population
137 million Internet users in India. 11.4% in...
Indians are Younger than the World…
36
30
37 3839 39
44 44
USA China Russia UK
24
30
35
40
45
50
24
India
31
2000 2025
India is poised to
OVERTAKE Japan
to be the 3rd Largest Economy
India is the Fourth Largest Economy
India
 Domestic
 Services
 Consumption
HighTech (Capital
Intensive Industry)
Drivers of Growth
East and S.E. Asia
• Exp...
“Domestically Led”
Means:
 Insulation from global
downturn
 Less volatile
 Recovery from global
crisis faster
Implicati...
India’s success is market-led while
China’s is state induced
Reasons for Success
The entrepreneur is at the center of
the ...
Rise of Globally Competitive Indian Companies
 100 Indian companies have a Market Capital of
100 billion USD
 1,000 Indian companies have received foreign
institution...
Elections
Pluralistic
Society
Freedom
Election Victory Celebrations
We have:
 Dynamic democracy with honest elections
 Free, lively media and press
 Independent Judiciary
 Rule of Law
Ad...
 The economy grows at night
 Working to support
economies around the world
means there are people
‘always awake’ and wor...
 Open economy to trade and investment
 Dismantled control
 Lowered tariffs
 Dropped tax rates
 Broke public sector mo...
 Remarkable– every government has
reformed (slowly) since 1991
 Slow reforms add up
 65 countries have undertaken the s...
Where are We Going?
 Base case post recovery is 7.5-8.5% GDP
growth
 Democracy will not permit more than 8%
unless you h...
2,100 3,050 5,800
16,800
37,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2000 2005 2020 2040 2066
On a ppp...
Convergence in the 21st Century
 Why is convergence intuitive?
 Convergence didn’t happen in the 20th
century because th...
0
5
10
15
20
25
30
35
40
45
50
1980 2000 2010 2020 2040
8
22
32
50 50
IndiaTurning Into Middle Class
(Years)
(%)
The Show Will Go On!
 Infrastructure
 Improving via public-private partnerships
 Overcoming Fiscal deficit
 Strengthen...
 India got democracy before capitalism and
this has made all the difference
 Growth slower than China but surer
 An ele...
2nd fastest growing economy in the world
India Now in Overdrive
8% average annual growth for last 10 years
India Now in Overdrive
Attractive Investment Destination
India Now in Overdrive
Infrastructure
Investments
$500 billion USD in the
next 5 years
 Roads ($48bn
USD)
 Airports ($9bn
USD)
 Ports ($12bn U...
Diversifying export basket
From large to medium to small
ExpandingTrade
M E D I A &
E NT E RT A I N M E NT
F I N A N C I A...
India’s Investment Abroad
Advanced Manufacturing
 Aviation
 Biotech, Health &Medical
 ICT
 Defense & Homeland
 Security
 Machinery & Equipment
Energy
Mining
Infrastructure
Advanced Manufacturing
Emerging Industries
 Automotive
 Environmental
 Equine, Sport &Recreation
 Retail and Franchise
 Marine
 Energy
Agriculture and Food
 Packaged Food
 Beverages
 Food Ingredients
 Agro-Business
 Machinery &
 Equipment
 Specialty ...
Services
 Education &Training
 Financial Services
 Professional Services
 Media and Entertainment
India – the Next Big Market
AreYou Ready?
THANK YOU
E-mail: ravithomas@tenacitygroup.us
Why India?
Why India?
Why India?
Why India?
Why India?
Why India?
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  • 18
  • Why India?

    1. 1. By RaviThomas
    2. 2.  Where are we coming from?  Where are we now?  Where are we going?
    3. 3. Where Are We Coming From? The world is just discovering it yet India’s growth story is NOT new. She has been going strong for the past 25 years!
    4. 4.  5,000 year old ancient civilization  325 languages spoken – 1,652 dialects  18 official languages  29 states, 5 union territories  3.28 million sq. kilometers - Area  7,516 kilometers - Coastline  1.3 Billion population.  5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million.  Parliamentary form of Government  Worlds largest democracy.  Worlds 4th largest economy.  World-class recognition in IT, bio-technology and space.  Largest English speaking nation in the world.  3rd largest standing army force, over 1.5Million strong.  2nd largest pool of scientists and engineers in the World. INDIA
    5. 5. India's per capita income is projected to soar by 10.4 per cent in 2013-14 as the country becomes a $1.7 trillion economy.
    6. 6. (%) (Years) Sources: 1900-1990: Angus Maddison (1995), Monitoring theWorld Economy, 1990-2000: Census of India (2001) Population Growth is Slowing 1 billion Population of India: 24 Median age. 290,000 Number of engineers who graduate in India each year.
    7. 7. 900 million cell phone subscribers in India. 74.09 phones per 100 population 137 million Internet users in India. 11.4% internet users per 100 population
    8. 8. Indians are Younger than the World… 36 30 37 3839 39 44 44 USA China Russia UK 24 30 35 40 45 50 24 India 31 2000 2025
    9. 9. India is poised to OVERTAKE Japan to be the 3rd Largest Economy India is the Fourth Largest Economy
    10. 10. India  Domestic  Services  Consumption HighTech (Capital Intensive Industry) Drivers of Growth East and S.E. Asia • Exports • Manufacturing • Investments LowTech (Labor Intensive Industry)
    11. 11. “Domestically Led” Means:  Insulation from global downturn  Less volatile  Recovery from global crisis faster Implications of the India Model
    12. 12. India’s success is market-led while China’s is state induced Reasons for Success The entrepreneur is at the center of the India Model
    13. 13. Rise of Globally Competitive Indian Companies
    14. 14.  100 Indian companies have a Market Capital of 100 billion USD  1,000 Indian companies have received foreign institutional investment  125 Fortune 500 companies have R&D in India  390 Fortune 500 companies have outsourced software development to India  2% Bad Loans in India (v. 20% in China)  80% credit goes to private sector (v. ~10% in China) India has aVibrant Private Sector
    15. 15. Elections Pluralistic Society Freedom Election Victory Celebrations
    16. 16. We have:  Dynamic democracy with honest elections  Free, lively media and press  Independent Judiciary  Rule of Law Advantage India
    17. 17.  The economy grows at night  Working to support economies around the world means there are people ‘always awake’ and working
    18. 18.  Open economy to trade and investment  Dismantled control  Lowered tariffs  Dropped tax rates  Broke public sector monopolies  Divested government shares  Introduced public-private partnership! Key Reforms
    19. 19.  Remarkable– every government has reformed (slowly) since 1991  Slow reforms add up  65 countries have undertaken the same reforms– why did India become the second fastest growing economy in the world?  Unappreciated fact– rule of law Understanding India’s Economic Success
    20. 20. Where are We Going?  Base case post recovery is 7.5-8.5% GDP growth  Democracy will not permit more than 8% unless you have aThatcher!  1.5% of population growth & declining!  Young & high skilled population  Demographic dividend– growth will continue beyond China
    21. 21. 2,100 3,050 5,800 16,800 37,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2000 2005 2020 2040 2066 On a ppp basis Per Capita Income ($inThousands) (Years)
    22. 22. Convergence in the 21st Century  Why is convergence intuitive?  Convergence didn’t happen in the 20th century because the world was closed  Returning to a world of equality prior to 1750  Once again China and India will account for 45% of world’s GDP
    23. 23. 0 5 10 15 20 25 30 35 40 45 50 1980 2000 2010 2020 2040 8 22 32 50 50 IndiaTurning Into Middle Class (Years) (%)
    24. 24. The Show Will Go On!  Infrastructure  Improving via public-private partnerships  Overcoming Fiscal deficit  Strengthening Government Policies  These changes have improved the show in the past 25 years
    25. 25.  India got democracy before capitalism and this has made all the difference  Growth slower than China but surer  An elephant at 8% growth is formidable!  We have waited 3000 years for this moment  India is more likely to preserve its way of life
    26. 26. 2nd fastest growing economy in the world India Now in Overdrive 8% average annual growth for last 10 years
    27. 27. India Now in Overdrive
    28. 28. Attractive Investment Destination India Now in Overdrive
    29. 29. Infrastructure Investments $500 billion USD in the next 5 years  Roads ($48bn USD)  Airports ($9bn USD)  Ports ($12bn USD)  Power ($9bn USD) Others • Gas Pipelines • -Telecom • - Health and Education • Infrastructure • - Urban Mass Transport • - UrbanWater Supply, Solid • Waste Management India Now in Overdrive
    30. 30. Diversifying export basket From large to medium to small ExpandingTrade M E D I A & E NT E RT A I N M E NT F I N A N C I A L S E RV I C E S RETAIL BUILDING & CONSTRUCTION AVIATION ARCHITECTURE
    31. 31. India’s Investment Abroad
    32. 32. Advanced Manufacturing  Aviation  Biotech, Health &Medical  ICT  Defense & Homeland  Security  Machinery & Equipment
    33. 33. Energy Mining Infrastructure Advanced Manufacturing
    34. 34. Emerging Industries  Automotive  Environmental  Equine, Sport &Recreation  Retail and Franchise  Marine  Energy
    35. 35. Agriculture and Food  Packaged Food  Beverages  Food Ingredients  Agro-Business  Machinery &  Equipment  Specialty Items  Fresh Produce  Wines  Agro-expertise/Services
    36. 36. Services  Education &Training  Financial Services  Professional Services  Media and Entertainment
    37. 37. India – the Next Big Market AreYou Ready?
    38. 38. THANK YOU E-mail: ravithomas@tenacitygroup.us

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