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Presented by –Mushfiqul Hassan Sarkar
Introduction about Indian Economy: LPG 1991 & impacts Global Recession 2008-09 & its impact.. The economy has turned i...
GROWTH RATE OF GDP AT CONSTANT (2004-05) PRICES                                                               PERCENT)    ...
Sectoral shares (%) of GDP at constant (2004-05) prices                              14.6                                 ...
Agriculture: Growth Trend (%):             Growth ofagricultural production is erratic; with very low or nogrowth.6 54 32 ...
Growth of Industrial Production (all figures in %):Industrial Production seems recovering, but slowly…                    ...
GDP at factor cost: Growth Trend (%)1210 8 6 4 2 0     2005-06   2006-07   2007-08   2008-09   2009-10   2010-11          ...
After Black Monday 2008…Current Scenario of Asian Economy   AIG Lehman Bros. bankrupts..   Real Estate Bubble   Proacti...
Services: Growth Trend (%): Growth Rate in Services sector isalso still less than the 2007-08 level. 12 10  8  6  4  2 0  ...
Rates of Inflation (Base Year: 2004-05=100)Item                  Weight 2006-07 2007-08 2008-09 2009-10   Sep     Oct   No...
Asia: The Most Dynamic Region GDP Growth2004 2005 SOUTHEAST ASIA                Rates                        2006   2007  ...
Opportunities in China•   GDP growth of 8% or over for the last two decades•   Domestic market of some 250-300 million hig...
Threats in China   Overheating economy: possible credit and stock market    bubble   Inflation rate reached 6.5% in Octo...
Japanese Economy Political instability caused by successive  resignations of two Prime Ministers The Tsunami – Badly bro...
Emerging Engines of Growth GDP % Change         US, EU, JAPAN AND BRICA               2006   2007   2008F 2009F US        ...
The Developmental Trends in Asia2000 onwards….. Expanding middle class e.g more productive HR.. Diversity of consumer ta...
Asian Economic Trends 2010-2011  Domestic markets as engines of growth: double track     strategy    China as engine of ...
Identified Major Constraints       Infrastructure       Procedural Delays       Corruption       Tax Rates & Tax Regul...
PRIORITY AREAS DEMANDING IMMEDIATE ATTENTION1. Physical Infrastructure: electricity supply, roads, port infrastructure &  ...
Overall assessment: Asian Persepective The investment climate and the competitive condition in Asia have shown hardly any...
ASEAN    GDP Growth Rates and Per Capita Income                                                        GDP per Capita, at ...
Some Corporate Achievements in India               The Tata Nano,       The HCL               the world’s          laptop,...
You To Superpower.. but You maynot Know !!!   India is one of only three countries that makes supercomputers    (the US a...
Some Encouraging Statistics.. India is the second fastest growing major economy with a 9.2% increase in  GDP per year In...
Selected Sunrise Industries in Asia    Agribusiness    Mining    Triple Ts: Transport, Telecom, and Tourism    Infrast...
Thank You..
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Business Environment of India 2012

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Business Environment of India 2012

  1. 1. Presented by –Mushfiqul Hassan Sarkar
  2. 2. Introduction about Indian Economy: LPG 1991 & impacts Global Recession 2008-09 & its impact.. The economy has turned itself into a services-driven economy. Services sector now accounts for almost 57 % of India’s GDP Agriculture 14.6%, & Industries 28.5%. Although one notices signs of recovery, there are areas of concern as well.
  3. 3. GROWTH RATE OF GDP AT CONSTANT (2004-05) PRICES PERCENT) ( 2008-09 2009-10 2010-11 Industry 2005-06 2006-07 2007-08 (QE) (RE) (H1)I. Agriculture 5.2 3.7 4.7 1.6 0.2 3.5II. Industry 9.3 12.7 9.5 3.9 9.3 10.1 mining & quarrying 1.3 8.7 3.9 1.6 10.6 manufacturing 9.6 14.9 10.3 3.2 10.8 11.4 electricity, gas &water supply 6.6 10 8.5 3.9 6.5 construction 12.4 10.6 10 5.9 6.5III. Services 11.1 10.2 10.5 9.8 8.5 9.6GDP at factor cost 9.5 9.7 9.2 6.7 7.4 8.9
  4. 4. Sectoral shares (%) of GDP at constant (2004-05) prices 14.6 2.4 Agriculture mining & quarrying manufacturing 16.1 electricity, gas & water supply construction Services 56.9 2 8
  5. 5. Agriculture: Growth Trend (%): Growth ofagricultural production is erratic; with very low or nogrowth.6 54 32 10 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (QE) (RE) (H1)
  6. 6. Growth of Industrial Production (all figures in %):Industrial Production seems recovering, but slowly… 2005-2006 2006-2007 2007-2008 2008-2009 2009-10 April-Nov,10Index of Industrial Production(Overall) 8 11.9 8.7 3.2 10.5 9.6# Capital Goods 14.2 22.4 1 19.1 8 8.2 20.9 1 25.8# Consumer Durables 13.6 8.3 -1.8 4.7 25.5 20.72# Consumer Non-durables 10.8 10.4 8.6 6.1 0.4 0.8# Other IndicatorsFDI Equity Inflows 154.7 52.6 8.6 -0.2 -27.0 Non-Food Credit of SCBs 39.6 28.5 23.0 17.8 17.0 20.48#Exports 23.4 22.5 29.2 13.6 -3.6 Manuf. Exports (with petro) 24.8 23.4 27.0 13.9 -4.2Imports 33.8 24.4 35.6 20.7 -5.6 Capital Goods 49.3 24.3 899.4 -37.5 -9.6
  7. 7. GDP at factor cost: Growth Trend (%)1210 8 6 4 2 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (QE) (RE) (H1)
  8. 8. After Black Monday 2008…Current Scenario of Asian Economy  AIG Lehman Bros. bankrupts..  Real Estate Bubble  Proactive Federal Reserve System  US Government Pump Priming  No Panic in the Banking Sector  No Crash in the Stock Market  Unemployment Rate Manageable  Countervailing Power of Emerging Markets  Liquidity of Sovereign Funds  Massive intervention of European governments
  9. 9. Services: Growth Trend (%): Growth Rate in Services sector isalso still less than the 2007-08 level. 12 10 8 6 4 2 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (QE) (RE) (H1)
  10. 10. Rates of Inflation (Base Year: 2004-05=100)Item Weight 2006-07 2007-08 2008-09 2009-10 Sep Oct Nov Dec Jan, 11ALL COMMODITIES 100.0 6.5 4.8 8.0 3.6 8.9 9.1 7.5 8.4 8.2PRIMARY ARTICLES , 20.1 9.6 8.3 11.0 12.7 18.2 18.1 13.0 16.5 17.3of which Food 14.3 15.7 of which Vegetables 1.7 64.9FUEL & POWR 14.9 6.5 0.0 11.6 -2.1 11.1 11.0 10.3 11.2 11.4of which LPG 0.9 15.0 Petrol 1.1 27.4 High speed diesel 4.7 14.7Manufact. Products 65.0 5.6 4.9 6.2 1.8 4.8 5.0 4.6 4.5 3.8of which Consumer Non Durable 37.4 6.4 4.6 7.5 10.2 10.4 9.6 6.5 8.4 (-)
  11. 11. Asia: The Most Dynamic Region GDP Growth2004 2005 SOUTHEAST ASIA Rates 2006 2007 2008F 2009F Indonesia 5.0 5.7 5.5 6.3 6.1 5.5 Malaysia 6.8 5.3 5.8 6.3 5.8 4.8 Philippines 6.4 5.0 5.4 7.2 4.4 3.8 Singapore 9.0 7.3 8.2 7.7 3.6 3.5 Thailand 6.3 4.5 5.1 4.8 4.7 4.5 Vietnam 7.8 8.4 8.2 8.5 6.3 5.5 Source: World Economic Outlook, Oct 2008 (IMF) NORTHEAST ASIA 2004 2005 2006 2007 2008F 2009F China 10.1 10.4 11.6 11.9 9.7 9.3 Hong Kong 8.5 7.1 7.0 6.4 4.1 3.5 Korea, Republic of 4.7 4.2 5.1 5.0 4.1 3.5 Taiwan 6.2 4.2 4.9 5.7 3.8 2.5 OTHERS India 7.9 9.1 9.8 9.3 7.9 6.9 Source: World Economic Outlook, Oct 2008 (IMF)
  12. 12. Opportunities in China• GDP growth of 8% or over for the last two decades• Domestic market of some 250-300 million high-income consumers• High rate of investment at 50% of GDP• Foreign direct investments (FDIs) of US$60 billion or more yearly• Surging raw material demand• Greater integration of China and other Asian countries (e.g. ASEAN + China)• Demand for middle managers
  13. 13. Threats in China Overheating economy: possible credit and stock market bubble Inflation rate reached 6.5% in October 2007, the highest monthly inflation in 11 years Efforts to cool down economy may result in hard landing Underdeveloped banking sector Undervalued currency Uncontrolled local officials Shortage of local entrepreneurs and managers High rates of poverty Stricter regulations in IT
  14. 14. Japanese Economy Political instability caused by successive resignations of two Prime Ministers The Tsunami – Badly broken the economy Despite a stronger than expected GDP outturn in the first quarter of 2010, Japan’s economic outlook is weak for 2010 and 2011. The yen weakened against the U.S. dollar in June but may strengthen if U.S. economy continues to be troubled by financial crisis. Consumer prices will rise in 2012 Reserves may be used to help ailing banks in the Asian region
  15. 15. Emerging Engines of Growth GDP % Change US, EU, JAPAN AND BRICA 2006 2007 2008F 2009F US 2.8 2.0 1.6 0.1 Euro Area 2.8 2.6 1.3 0.2 Japan 2.4 2.1 0.7 0.5 F-forecasts BRICA Sources: World Economic Outlook, Oct 2008 (IMF) Brazil 3.8 5.4 5.2 3.5 aseansec.org Russia 7.4 8.1 7.0 5.5 India 9.8 9.3 7.9 6.9 China 11.6 11.9 9.7 9.3 ASEAN 6.0 6.5 5.4 5.4 THE NEXT ELEVEN 2006 2007 2008F 2009F Bangladesh 6.5 6.3 7.0 5.6 Egypt 6.8 7.1 7.2 6.0 Indonesia 5.5 6.3 6.1 5.5 Iran 5.8 6.4 5.5 5.0 Mexico 4.9 3.2 2.1 1.8 Nigeria 6.2 5.9 6.2 8.1 Pakistan 6.9 6.4 5.8 3.5 Philippines 5.4 7.2 4.4 3.8 South Korea 5.1 5.0 4.1 3.5 Turkey 6.9 4.6 3.5 3.0 Vietnam 8.2 8.5 6.3 5.5
  16. 16. The Developmental Trends in Asia2000 onwards….. Expanding middle class e.g more productive HR.. Diversity of consumer tastes and lifestyles “Mallification” of Asian cities Demographic gift stage in South and Southeast Asia Rapid aging in Northeast Asia and Singapore Widespread use of English The telecom revolution Spread of university education
  17. 17. Asian Economic Trends 2010-2011  Domestic markets as engines of growth: double track strategy  China as engine of growth of the Asia Pacific region  The predominance of China in manufacturing  Growth in intra-regional trade: increased complementarity  Continuing battle against mass poverty in the big economies  Outsourcing of manufacturing and services to Asia  Outsourcing is intra-company as well as inter-country  Focus on agricultural productivity in Southeast Asia  The “entrepreneurial challenge” to centrally planned economies  The challenge of innovations and productivity
  18. 18. Identified Major Constraints  Infrastructure  Procedural Delays  Corruption  Tax Rates & Tax Regulations  Terrorism & Law & order
  19. 19. PRIORITY AREAS DEMANDING IMMEDIATE ATTENTION1. Physical Infrastructure: electricity supply, roads, port infrastructure & overall connectivity2. Controlling Corruption and improving overall governance standard.3. Social sectors: Eradication of Poverty and Health & Education4. Reduction of gender disparity & improving Female participation in labor force
  20. 20. Overall assessment: Asian Persepective The investment climate and the competitive condition in Asia have shown hardly any improvement in the recent past. There are in fact four areas where serious attention need to be given on a priority basis to improve Asia’s competitive ranking and also to facilitate speedier economic development. These are ….
  21. 21. ASEAN GDP Growth Rates and Per Capita Income GDP per Capita, at Current GDP Growth Rates Prices (in US$) Country 2007 2008F 2009F 2006 2007Indonesia 6.3 6.2 6.2 1,640.0 1,919.6Malaysia 6.3 5.6 5.3 5,890.5 6,880.2Philippines 7.2 4.5 4.7 1,355.7 1,652.8Singapore 7.7 4.2 4.6 29,499.6 35,206.1Thailand 4.8 5.0 5.0 3,293.9 3,740.1Vietnam 8.5 6.5 6.0 724.4 836.7Source: ADB, Asian Development Outlook 2008 Update (September 2008); aseansec.org
  22. 22. Some Corporate Achievements in India The Tata Nano, The HCL the world’s laptop, the cheapest cheapest production car production laptop The Infosys IT training campus – the largest in the world Kingfisher Airways, voted the best airline of south-east Asia
  23. 23. You To Superpower.. but You maynot Know !!!  India is one of only three countries that makes supercomputers (the US and Japan are the other two).  India is one of six countries that launches satellites.  The Bombay stock exchange lists more than 6,000 companies. Only the NYSE has more.  Eight Indian companies are listed on the NYSE; three on the NASDAQ.  By volume of pills produced, the Indian pharmaceutical industry is the worlds second largest after China.  India has the second largest community of software developers, after the U.S.  India has the second largest network of paved highways, after the U.S.  India is the worlds largest producer of milk, and among the top five producers of sugar, cotton, tea, coffee, spices, rubber, silk, and fish.  100 of the Fortune 500 companies have R&D facilities in India.
  24. 24. Some Encouraging Statistics.. India is the second fastest growing major economy with a 9.2% increase in GDP per year India is already the third largest economy in the world at PPP India has seen a huge amount of foreign direct investment in the country, totaling 67.72 billion dollars and is said to be one of the “preferred options” for FDI India’s poverty level is decreasing by 10% annually Indian companies have gone on a buying rampage, with Tata Steel acquiring Corus, Mittal buying Arcelor and Tata looking set to buy Jaguar and Land Rover from Ford. Every year India’s middle class is increased by 40,000,000 new members which shows that the wealth is truly entering society The Bombay Stock Exchange’s value has been consistently rising, currently worth 1.61 trillion dollars, the largest in South East Asia. Unemployment has dropped by 2% annually, and illiteracy and mortality rates have also been falling, indicating that India is not only growing but developing too.
  25. 25. Selected Sunrise Industries in Asia  Agribusiness  Mining  Triple Ts: Transport, Telecom, and Tourism  Infrastructures  Automobiles  Consumer durables  IT-enabled and IT services  Logistics and retailing  Health care and medical tourism  Education  Construction and real estate  Four Fs: Food, Fashion, Furniture, Fun
  26. 26. Thank You..

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