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Emerging Markets Imperial Apr 09 Final

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Presentation at the Imperial Business College Event, 28th Apr 2009

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Emerging Markets Imperial Apr 09 Final

  1. 1. Not to be distributed without prior consent © Shantanu Bhagwat Udbhav Associates Emerging Markets Opportunities and Challenges for Entrepreneurs Shantanu Bhagwat 28th April ‘09 The contents of this presentation and the opinions expressed therein (unless stated otherwise), are the intellectual property of Shantanu Bhagwat and should not be used, quoted, transmitted or distributed in any form or manner, without the explicit and written consent of the author. © Shantanu Bhagwat © 2009 Email: info@udbhavassociates.com
  2. 2. Not to be distributed without prior consent © Shantanu Bhagwat Udbhav Associates • India, although having similar potential, is very different from China • More transparent, open and vocal • Culturally different from “Far East” • A more direct approach to business • Widespread use of English provides a business-friendly interface • But also masks underlying diversity and complexity • Contracts and agreements are more valued • Legal recourse exists • Although court cases may take decades to resolve • However, some “Asian” elements persist… • Relationships remain important • …and decisions-making (at times) can still be painfully slow India vs. China
  3. 3. Not to be distributed without prior consent © Shantanu Bhagwat Udbhav Associates India vs. China • India’s development model may be more sustainable and (almost certainly) stable compared to China • Although a decade behind in terms of timing • Reforms started more than a decade after China (’91 vs. ’78) • …world-class elements exist… • "India has something that China doesn't…Companies that compete with the best that Europe and China has to offer, ..such as…Infosys Technologies Ltd. and Dr. Reddy's Labs...” • Lacks the physical infrastructure of a modern economy but has several softer elements e.g. courts, financial system… • “Smarter” investment of resources… • China’s growth has come from a 40% savings rate + $60bn annual FDI; India’s growth has come from a 24% savings rate + $6bn FDI* • …and an emphasis on knowledge-based sectors may yet tilt the scales * Source: Joydeep Mukherji, Standard and Poor, New York (2006 data)
  4. 4. Not to be distributed without prior consent © Shantanu Bhagwat Udbhav Associates Long Term Growth Forecasts * Source: Goldman Sachs Research quoted in SBI Blue Chip Fund presentation, 2006 0 1 2 3 4 5 6 7 8 9 2000-05 2005-10 2010-15 2015-20 2020-25 2025-30 2030-35 2035-40 2040-45 2045-50 GDPGrowth% India China India’s “3D Advantage ”

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