This newsletter provides information on recent economic and business developments in India. It discusses India's strong performance in agricultural output and employment. It also mentions political unrest in the Middle East and natural disasters in Japan and New Zealand, as well as two high-profile visits to India by Bill Gates and Warren Buffett to encourage philanthropic giving. Furthermore, the newsletter outlines opportunities in India's growing IT sector and provides an overview of the state of Maharashtra, noting its large population, strong infrastructure and historical exports.

1. IBI Investor
Newsletter for economic development agencies
Issue 3 | March 2011
India -
Faits interessants
March Matters
 India ranks second in The month of March 2011 would be remembered for two major
farm output globally events that caught the attention of the entire world. One was the worst
and is one of the
of the natural disasters, the tsunami in Japan and the other, political
largest producers in
unrest in the Middle East which could potentially re-write the political
the world for milk,
destiny of the region.
cashew nuts,
coconuts, tea, ginger,
turmeric and black Each time a natural disaster or some political upheavals take place,
pepper. Governments around the world debate on their preparedness to withstand
the fallout of such events. The same happened when the earthquake
 The largest employer struck New Zealand in the month of February. The axing of all the regional
in India is the Indian development agencies in UK with the change in government is also
Railways employing another case in point. One of the questions we are asking is, how prepared
over 1.6 million are the economic development agencies to withstand such uncertainties
people. political or otherwise.
 India has the largest In today’s world where we expect the unexpected every day,
no. of post offices in organizations have to learn to thrive competitively taking into account the
the world. The world’s dynamic changes happening all around them. Adding value for all the
highest post office stakeholders consistently and being able to justify the investments &
Hikkim is located at resource allocation would be a key differentiator for organizations to
15,500 ft in the Lahaul survive in an uncertain economic scenario.
Spiti district of
Himachal Pradesh.
India also had two high profile visits in the month of March. Two of
world’s richest men Bill Gates & Warren Buffet came to India on a
 The Indian
mission to encourage the wealthy to donate their wealth. With the India
telecommunications
industry is the world’s growth story catching the world’s attention and an increasing number of
fasted growing billionaires in the country, the visits could not have been at a more
telecom opportune moment. Many of the corporate honchos have pledged to give
industry723.28 million more and support social causes.
telephone connections
(land-lines & mobile) The India-Asean Business Fair & Business Conclave that took place
in New Delhi during early March saw the participation of all the ASEAN
 Tourism is the largest countries. With ministers, other government officials, business delegations,
service industry in companies and economic development agencies in full strength at the
India, with a conclave, it was an excellent platform for discussions on matters related to
contribution of 6.23% trade, investment and partnerships between India and the other ASEAN
to the national GDP. countries.
In spite of the strife and struggle happening around the globe,
INCREDIBLE INDIA!!! observing the India growth story and the plethora of economic activities
happening in the country, one is led to believe there is after all light at the
end of the tunnel.
For comments/queries: Shankar Ramachandran at shankar@ibimail.net or +91 99999 48732
Copyright © 2011 IBI Consulting
www.consultibi.com

2. Indian IT/ITES Sector: Opportunities
 India's IT services
market is forecast to According to Gartner estimates, Indian firms are increasing their IT budgets
grow to $10.7 billion an average of 13 percent this year, far more than the global average of 3.3
by 2013 at a CAGR percent. This spending covers IT services, software and hardware presenting
of 14 percent. opportunities for vendors in India and abroad.
 Indian firms are Companies in India tend to look for global partners to upgrade their IT
increasing their IT services as they expand to new geographies. However, Indian firms are now
budgets an average more open to consider utilizing tier-2 and tier-3 service providers in India and
of 13 percent this abroad.
year
Drivers:
 Indian firms are now  Increased IT spend is directed primarily towards building new
business capabilities, with 30 percent of IT spending allocated to
more open to
business growth and 19 percent to business transformation.
consider utilizing
 Indian enterprises are making heavy investments in bringing the base
tier-2 and tier-3 infrastructure up to global standards.
service providers in  Technologies in demand include service oriented architecture,
India and abroad. virtualization and unified communications, marking a movement
towards improving process efficiency.
 Sectors that are  Large government business process reengineering and modernization
driving growth in IT programs like the unique ID project are also driving growth.
services and  Heightened business risk perceptions and security concerns are also
outsourcing are leading to increased investments in enterprise-wide and client-centric
telecom, banking, devices and applications.
financial services and
retail. IT Services and Outsourcing:
India's IT services market is forecast to grow to $10.7 billion by 2013 at a
 Technologies in CAGR of 14 percent, propelled by Indian companies that are outsourcing
some of their work to other Indian and multinational companies due to staff
demand include
shortages.
service oriented
architecture,
Sectors that are driving growth in IT services and outsourcing are telecom,
virtualization and banking, financial services and retail. Large multinational companies have
unified been very successful in securing such contracts.
communications,
marking a movement Major players:
towards improving IBM continues to maintain its leadership position in the domestic IT services
process efficiency market and has consistently reached a market share of close to 12 percent
since 2007. Other major players are Tata Consultancy Services and Wipro
with market shares of 10 and 4 percent respectively. About 40 percent of
domestic business goes to small local service providers who are looking at
partnerships for expertise and scale.
The Investment & Trade Promotion practice (ITP) at IBI Consulting helps Economic Development Agencies (EDA) and
trade offices attract inward investment into their respective regions from Asia as well as help trade offices of foreign
economies find distributors and trading partners in Asian markets. Our portfolio of services includes:
 Industry Research Reports
 Market Representation & Outreach
 Investor Seminars, Events & Road Shows
 Trade Missions Support Services
 Lead Generation & Nurturing
For comments/queries: Shankar Ramachandran at shankar@ibimail.net or +91 99999 48732
Copyright © 2011 IBI Consulting
www.consultibi.com

3. IBI State Watch
Maharashtra:
Located in the north centre of peninsular India the state has a population of
over 90 million people. It is the second most populated and third largest
state by area in India. Mumbai is the capital city of the state and is also
known as the financial & commercial capital of India.
Maharashtra has a robust infrastructure and is well connected nationally
and internationally. There are 3 international & 5 domestic airports in
Maharashtra Maharashtra. Chhatrapati Shivaji International Airport in Mumbai is one of
the busiest airports in India.
Capital: Mumbai
Along a coast line of 720 km, Maharashtra has two principal ports: Mumbai
Population:
and Jawaharlal Nehru Port Trust (JNPT). Apart from this there are 53 minor
90 million (approx)
ports. JNPT is the country’s largest container port.
Language: Marathi
Historically, Maharashtra has been a major exporter of software, textiles,
 Maharashtra is the readymade garments, cotton yarns, made-up fabrics, engineering items,
third largest state drugs and pharmaceuticals, plastic and plastic items.
in India considering
area and second The state today has emerged as a key hub for IT & ITES, electronics and
largest considering captive business outsourcing industries. The government of Maharashtra is
population. promoting the development of several special economic zones across the
state for sectors such as IT/ITES, pharmaceuticals, biotechnology and food
 Mumbai the capital processing.
of Maharashtra is
also known as the Maharashtra accounts for around 40 per cent of the country’s pharmaceu -
financial capital of tical and around 33 per cent of the biotechnology output. It has strong
India. research capabilities and accounts for over 30 per cent of the country’s
patents. The state also accounts for more than 30 per cent of the country's
 The Maharashtra software exports, with over 1,200 software units based in the state.
Economic Survey
2010-11 said the Key sectors in the state attracting healthy FDI inflows include energy,
state continues to transportation, services, telecommunications and electrical equipment.
attract highest
number ofindust-
rial proposals,
despite rising
competition from
other states.
Upcoming Events:
 Bangalore India Bio 2011 –Bangalore – 04th – 06th May
http://www.bangaloreindiabio.in/BIO2011/index.php
 5th Renewable Energy India Expo 2011- New Delhi – 10th – 12th August
http://www.renewableenergyindiaexpo.com/
For comments/queries: Shankar Ramachandran at shankar@ibimail.net or +91 99999 48732
Copyright © 2011 IBI Consulting
www.consultibi.com