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A Brief Understanding of India

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A brief understanding about India, with focus on specific sectors

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A Brief Understanding of India

  1. INDIA : A Brief Understanding
  2. Introducing a country with over 1.23 billion people Second most populated country in the world and the largest democracy.
  3. Divided into 28 states and 7 union territories Hosts 640 districts, 5767 tehsils, 7933 towns and more than 600,000 villages
  4. Diversity in Diversity India speaks a 152 languages and 1652 mother tongues , is also home to 6 major religions and many more faiths
  5. The 6rd largest economy in the world with a GDP of over 1.84 Trillion at PPP Between 1991-2013 the economy has grown close to 5x up from 310 billion India GDP Growth Rate 1991-2012 12 10 8 6 % Growth 4 2 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0
  6. Drivers for growth
  7. 1. India is one of the youngest populations in the world with over 799 million (65%) under the age of 35 years 2. Literacy rate has been on the constant rise and presently stands at 74%
  8. Presently 210 million households Total consuming households set to grow to 65 million by 2015
  9. 3. Disposable income of consumer base on constant rise, reaching an all time high in 2011 4. Rapid increase in the flow of FDI towards growth sectors ; Infrastructure, Construction, Automobiles and Real Estate
  10. India has been moving from a primarily agrarian economy since towards a manufacturing and service industry Contribution to GDP by Industry % GDP 1950 % GDP 1991 % GDP 2013 58.9 57 39.8 32.8 27.4 16 Agriculture 27 10.3 Manufacturing Services
  11. Top Sectors by contribution to GDP - 2013 The top 5 sectors contribute to more than 70% of the economies products 23% 15.7% Retail & Wholesale Agriculture 13.5% Real Estate 10% Banking & Insurance 9% IT & ITES
  12. Industries in Focus
  13. Transport Infrastructure : Roads & Rail
  14. India has a very low per capita consumption of steel compared to most developing nations, especially China. However with planned investments in infrastructure and a growing constructions & real estate market this scenario is poised to change Per capita consumption of steel China India World Average 460 216.9 60 China India World Average
  15. India currently has the second largest road network in the world at 3.3 million kms Heavy investments are being made by public and private entities into improving the existing networks as well as building more roads. Golden Quadrilateral – 5846 kms of 4 lane highways connecting 4 metros
  16. One of the worlds largest and comprehensive railroad networks with 115,000 kms of rail tracks, connects majority of cities and towns in India; facilitating business and commute for millions of people daily.
  17. Automobile Industry
  18. 6th largest manufacturing industry globally 17.3 million units sold domestically (2011-12) Asia’s third largest exporter of passenger cars 2011 there were 3,965 factories producing automotive parts across the country
  19. India’s automobile industry is set to reach US$ 12 billion in 2014
  20. Although the automobile market has shown a slight slowdown, there has been a positive growth y.o.y There are positive signs for increased growth rates Automobile Market Overview Brazil 249 Russia India USA World 439 293 148 Brazil China Russia India 136.7 85 China USA World
  21. Real Estate & Construction
  22. India is expected to emerge as the world’s third largest construction market by 2020 To aggregate approximately US$ 380 billion between 2012-16
  23. Current FDI in Real Estate Projected to become a (RE) at $4 Billion projected to $1 Trillion construction be at $25 Billion in 10 years market by 2025 The Planning Commission of RE is a $180 Billion India has budgeted an industry growing at investment of $320 billion in CAGR of 11% the latest five year plan
  24. Fierce Competitive Framework
  25. Across categories there are numerous players looking to tap into the large consumer base in India Automobiles : 53 companies – multiple brands Insurance : 14 companies Media : Over 150 media companies Real Estate : Over 100 Real Estate companies in the organised sector
  26. With multiplicity of choice, across categories both in B2B & B2C ensuring the market in India has shifted long ago from a sellers market to a buyers market
  27. While the pie itself is growing, there is fierce competition across industries and sectors to get a bigger share Therefore Customer centricity will be the fulcrum on which businesses need to be built

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