india position in world

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  • Sources Used: Business World Hindu Business Line Economic Times Company Websites
  • Data outdated Updated data possible source IBEF Big names like IBM, SAP etc. to be included Other names which have global R&D / Large R&D teams may be indicated
  • This is a quick snapshot, non-quantitative summary. Important to contrast with Latin Americal, East Asian and E. European countries.

Transcript

  • 1. Indian Position in Globalize world the journey…
  • 2. Flow of Presentation
    • Objective
    • Look at Asian Economies
    • Strength & Weaknesses
    • Transformation
    • Self Sufficiency
    • Break – up of the Economy
    • Drivers of Global Economy
    • What lead to India Shinning
    • Evaluation
    • Sources of Information
  • 3. Objective
    • The review of past Indian Economy
    • Assessing the current scenario
    • How India highly competitive
    • Future predictions about Indian Economy
    • Future Investments in India
  • 4. Under construction Korea Philippines Vietnam Singapore Thailand China Bangladesh India Pakistan Japan Taiwan Malaysia Indonesia
  • 5. Fastest Growing Free Market Democracy 8.8% average annual GDP growth rate from 2003–04 to 2007–08 Sources: Times of India , RBI , The Economic Times . The Transformation... GDP Growth Forex Reserve FII Flow FDI Per Capita Inflation 1990 4.9 per cent < US$ 1 billion US$ 1 million (1993) US$ 97 million US$ 390 9 per cent 2008 9.0 per cent US$ 300.01 billion as on August 08, 2008 US$ 16.1 billion in 2007–08 US$ 25 billion in 2007–08 US$ 740 12.14 per cent as on September 13, 2008
  • 6. Self Sufficiency Steadily increasing forex reserves offer adequate security against any possible currency crisis or monetary instability Increased confidence of investors in Indian companies has led to a surge in cross-border borrowings by corporate houses In 2007–08, forex reserves witnessed a growth of approximately 56 per cent over 2006–07 … t he decreasing external debt to GDP ratio indicates that India has a sound economic platform India’s forex reserves are in excess of external debt…
  • 7. Break – up of the Economy Contribution of Services— increased from 48 per cent in 1999–00 to 53 per cent in 2007–08
    • Fastest GDP growth of 9.4 per cent in 2006–07.
    • India’s GDP (8.7 per cent) has witnessed high growth and was the second fastest-growing GDP after China (11.4 per cent) in 2007–08.
    • The sound performance of each industry segment is leading to the overall robust performance of the Indian economy.
    Source: MOSPI Statistics , RBI .
  • 8. The Drivers of the Global Economy Source: Goldman Sachs BRIC report
    • Engines of growth
    • US and Europe are expected to grow at 2-4%
      • Brazil, Russia, India and China are going to be the next big drivers of the global economy
      • In less than 40 years, the BRIC companies could be larger than the G6 in dollar terms
      • Among BRICs , India will be the fastest growing and will rank behind China and USA by 2033
    • The movement of capital
    • Higher growth will lead to higher returns
      • Increased demand for capital will mean more fund flows in these countries.
    Cumulative FDI Inflow India has witnessed a strong inflow of FDI in the last 5 years Source: Reserve Bank of India
  • 9. India: Sweeping reforms post liberalization Dismantling Protectionism Average imports tariffs have reduced from 53% in 1988 to 18% In 2002 Strong Infrastructure
    • Avoid direct government
    • Involvement
    • Allowing FDI
    • Sound regulatory
    • framework (TRAI)
    • Introduction of competition
    Disinvestment
    • Major successes include VSNL,
    • BALCO, Maruti Udyog,
    • GAIL, ONGC, NTPC
    • Progress by state governments
    • as well
    Financial Sector Reforms
    • Sound regulatory base in
    • banking, insurance and securities
    Fiscal Reforms
    • Removal of distortionary taxes,
    • Migration to VAT regime
    • Simplicity and low cost of
    • compliance
    Globalisation
    • Reduced barriers to movement
    • of goods and capital
    • Well-poised to exploit the
    • Internet
    The economic reforms process has been a key source of convergence among the political parties, with every successive government taking the reforms forward
  • 10. Indian firms seek global reach Tata Steel bought Corus Plc Hindalco acquired Novelis Inc. Suzlon Energy Ltd. acquired REpower Dr. Reddy’s acquired Betapharm United spirits acquired W&M USD 12.1 billion USD 6 billion USD 1.6 billion USD 0.5 billion USD 0.5 billion Acquisition made Tata Steel world’s fifth largest steel producer globally Acquisition made Hindalco the world's largest aluminum rolling company Acquired German’s third largest generic companies Acquisition made United Spirits world's second largest spirit company Acquisition made Suzlon world's third largest wind power company
  • 11. Major M&A and Investments Announcements in India USD 11 billion Vodafone buys Hutch USD 1.7 billion Plans to spend on its development operations in India over the next four years USD 12 billion POSCO to invest in building steel manufacturing plants and facilities in India by 2016 Plans expansion of cement capacity in India Over USD 1 billion Plans investment in private equity, real estate, and private wealth management USD 1 billion
  • 12. MNCs finding location of R&D in India : Increases global competitiveness India- Attractive R&D Destination
    • Large R&D facility of major MNCs
      • Microsoft
      • IBM
      • ADOBE
      • SAP
      • Sony Ericsson
      • Dell
      • The DaimlerChrysler
      • Boeing
      • Texas Instruments
  • 13. Indian Workers in America
    • 38% of Doctors in America are Indians.
    • 12% of Scientists in America are Indians.
    • 36% of NASA employees are Indians.
    • 13% of XEROX employees are Indians.
    • 34% of MICROSOFT employees are Indians.
    • 28% of IBM employees are Indians.
    • 17% of INTEL employees are Indians.
  • 14. Evaluation
    • Strengths
    • Sustained growth for over a decade (but recent slowdown)
    • Strong export potential, current a/c deficit low
    • Healthy forex reserves
    • Low external debt
    • Low inflation
    • Political consensus on reforms
    • Deepening financial sector
    • Knowledge base advantage, demographic surge
    • Weaknesses
    • Fiscal deficit high, debt GDP ratio high
    • Fiscal situation of states worse
    • Inadequate infrastructure, huge funding needed
    • Unsatisfactory investment climate
    • Rising gap between rich and poor
    • Dependence on oil imports, monsoons
    • Slowing of reforms, coalition compulsions
    • Social indicators below world average
  • 15. BRIC Report, Goldman Sachs “ I have never seen India so dynamic, vibrant and full of business opportunities”. - Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005 “ We came to India for the costs, stayed for the quality and are now investing for innovation”. John Redwood Economic Competitiveness Policy Group, UK “ India is now truly a land of opportunity”. Jack Welch General Electric “ India is a developed country as far as intellectual capital is concerned”. Peter Loescher President and Chief Executive Siemens By 2032, India will be among the three largest economies in the world. Why India? – Quote Unquote Travyn Rhall, ACNielsen “ The Indian market has two core advantages - an increasing presence of multinationals and an upswing in the IT exports”. Craig Barrett Intel Corporation “ India has evolved into one of the world's leading technology centers“. Mr Paul de Voijs Managing Director Volvo Car India “ India is a very exciting market and the luxury car segment is growing exponentially here”.
  • 16. Sources of information
    • Reports,
    • Goldman Sachs,2005
    • World bank,2007
    • CII report,2005
    • Websites,
    • www.et.com
    • www.rbi.org
    • www.gov.nic.in
  • 17. Thank You ROLL NO 57 TO 65