A2 business studies emerging markets india

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This is done by A Level business studies students under the topic Emerging markets, this would be helpful for your Edexcel exam
Prepared by: Sharaff, Juvey, Riyaaxaa, Rifath(Rifoo)

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A2 business studies emerging markets india

  1. 1. Learn us, Join us (World Ideal Nation)
  2. 2. With over 1 billion people, India is a country that you cannot ignore if you are kind of business. With a growth rate of 10% India is one of the hottest business destination in the world!!! A number one rich country for investments for those seeking to grow beyond the US borders.
  3. 3. Population: 1.241 billion(world’s 2nd highest population) Currency: Rupees National languages: Hindi(22nd languages) Capital: New Delhi Independence day: 15th August 1987 Specialty: 2nd largest film industry Specialized: Software & Agriculture Landmass: World’s 7th largest GDP: World’s top 3rd Religion: Hindu(14% Muslims)
  4. 4. Operating as a mixed economy 9th largest nation by nominal GDP 19th largest exporter 10th largest importer Unemployment 3.8% 487 million workers in labour sector PCI basis India rates 141st by nominal GDP GDP grew by 9.3% in 2011
  5. 5. GDP grew by 4.8% in march 2013 Forecasts a growth of 6.7% for 2014 Labour force: i. 80% on agriculture ii. 12% on coal, jewellary, car, textile, electronics iii. 20% on services Democratic nation since 1970 to present $365 billion of FDI inflow in December 2012
  6. 6. 2nd largest source of employment Employment for 12 million people Currently invested 38 billion Demand for Indian textile in world market is falling Ahmedabad, Mumbai – popular city for textile industry
  7. 7. Employment to 23% of workforce Shares 55% to GDP Bangalore, Hyderabad, Chennai, Kolkata, Mumbai - best hub for IT Popular in India because of low wages, educated & fluent English speakers Employment to 23% of workforce ½ of land used for farming Leading crops - rice, cotton, tea, sugarcane
  8. 8. Contribute 6.5% to national GDP 8.8% of total employment Most tourist from USA & UK Contributes 14-18% to GDP Spends US $ 450 billion In 2012 government permitted 51% to FDI in multi brand & 100% in single brand
  9. 9.  2nd highest production of cement i.e. 183 million tones.  Average non-agricultural tariffs have fallen below 15%  Quantitative restrictions on imports have been eliminated  Anti-dumping measures used to protect trade Now more liberal global trade, esp. in services
  10. 10.  A leading country among developing nations in global trade negotiations  India – Sri Lanka free trade agreement  trade agreement with Bangladesh, Bhutan, Sri Lanka, Maldives, China & South Korea  India – Nepal Trade  Comprehensive Economic Corporation Agreement(CECA) with sign  Framework Agreements with the Association of Southeast Asian Nations (ASEAN) Preferential Trade Agreement with Afghanistan, China & Marcos
  11. 11.  One of the faster growing economies in the world Improved efficiency in the economy  Adoption of international “best practices” in the production of range of goods and services  Top ten investments destinations since 2007-08, attracting US $195 bn  $US 97 bn FDI over the past 5 years
  12. 12.  GDP grown at a 7.9% between 2003-2012  Continue growth next 5 years at 7.7%  GDP for 2013, valued at US $ 1.9 trillion  Current price is 10th largest in the world  8% targeted (2012-2017)  One of the youngest population  2/3 of the population is below 35 years  65% working population is about 15 to 64 years  One of the highest English speaking nation
  13. 13. • Major imports: Crude oil, military products, fertilizers, chemicals, gems, antiques and art works. • Imported goods are divided into: 1.Freely importable 2.Canalised item 3.Prohibited item • Commercial trade rose from $252 bn in 2006 to $724 bn in 2012 • Biggest import in 2012: Crude petroleum with $155 bn
  14. 14. • Gold and Silver amounted to $62 billion • Electronic goods, pearls and precious stones are top imports • Top import source is china(12% of total imports), UAE, Switzerland, Saudi Arabia • UK has 1.4% share of India's import sources
  15. 15. Top ten importers from India, by value of trade in US $m and share of total Country 2012-2013 (Apr- Sep) %Share (2012- 2013 (Apr- Sep) USA 19704.05 13.87 UAE 18601.71 13.09 SINGAPORE 6652.77 4.68 CHINA 6417.32 4.52
  16. 16.  In 2001-2002 Asia’s share stood at 40.2%  In 2011-2012 grew to 51.6%  A decline share of in Europe from 24.8% in 2001- 2002 to 19% in 2011-2012  Exports in 2012: 1.petroleum products earned $56bn 2.gems and jewelry $47bn  UAE: biggest export market in 2012  UK: 8th biggest export market  UK held 2.9% of the market share in April-Sep 2012
  17. 17. Top ten exporters to India, by value of trade in US$m and share of total Country 2012-2013 (Apr- Sep) %Share (2012-2013 (Apr- Sep) CHINA 28025.57 11.92 UAE 19622.81 8.35 SAUDI ARABIA 16094.83 6.85 USA 12208.05 5.19 SWITZERLAND 10779.45 4.59 IRAQ 9803.79 4.17 QATAR 8144.45 3.47 KUWAIT 8134.73 3.46 GERMANY 7154.41 3.04 INDONESIA 6944.86 2.95
  18. 18. HONG KONG 6137.9 4.32 SAUDI ARAB 4636.29 3.26 NETHERLANDS 4458.24 3.14 U K 4112.26 2.89 GERMANY 3491.77 2.46 BRAZIL 3042.64 2.14
  19. 19. o Tourism o Automobile o Textile o Social Ventures o Software o Engineering Goods o Franchising o Education and Training o Food Processing o Corporate Demand
  20. 20. o Organic Farming o Traditional medicine o Media o Packaging o Floriculture o Toys o Healthcare Sector o Biotechnology o Energy Solutions o Recycling Business
  21. 21.  5% tariff on imports  Prohibited 53 items  Export is permitted against license  8% royalty payments of exports  5% royalty payments on domestic product  Duty free imported raw materials  Liberalization of FDI  Removal of entry restriction
  22. 22.  Fast economic growth  Vibrant democracy  Favourable demographics  Consumption  Valuations offer some comfort  Balanced equity market  Under represented in global indices  Increased investor confidence  Growth bias vs. inflation  Budget with an eye on reforms  Becoming bigger in manufacturing  Rapid export growth  Attractive foreign direct investment destination  Continuing fiscal consolidation  Healthy foreign exchange reserves
  23. 23. India is the one of the founder member of WTO, joined in 1st January 1195. Become one of 76 nations of WTO on 1st day of formation Increase in foreign trade Increase in agriculture exports Increase inflow of foreign investment Restricts dumping Improve in services Protection of property rights Enhance competitiveness among trade partners Challenge policies of developed countries
  24. 24. Under WTO, the greatest agreement made by India is on agriculture. It focuses on three areas: 1.Market access 2.Domestic support 3.Export subsidies India is second world wide in farm output It accounts 16.6% of GDP 60% of work force employed in this field
  25. 25. 100% F.D.I is permissible in hotel and tourism, construction, medicine & electronics Invested $ 2billion on healthcare by 2012 Allowed particularly for education to: 1. Prevent brain drain 2. Match international standard of studies Prohibited sectors - Gambling, betting, atomic energy, agriculture, lottery businesses
  26. 26. Liberal democracy Sufficient natural resources Skilled labor force Rate of return on investment is high 2nd largest software developer World’s 4th largest economy 2nd largest pharmaceutical industry Growing with 8% gross domestic product Reduced license in requirement
  27. 27. High corporate tax High corruptions High poverty Limitation to obtain loans for foreign companies Different culture & languages Low per capita income Still, “SAAREY JAHAASE AHCHAA HINDUSTAAN HAMAARAA” ( Amongst all, India is the best )
  28. 28. Reference India guide 2010 Wikipedia http://www.expandinindia.net http://www.expandinindia.net/blog/ http://www.slideshare.net/expandinindia http://www.linkedin.com/groups/Expand-in-India-4075543

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