Uploaded byRavi Thomas MBA, PMP
Why India?
The document outlines India's growth over the past 25 years, highlighting its status as the world's largest democracy and fourth-largest economy with a projected GDP growth of 7.5-8.5%. It emphasizes India's unique market-led success, vibrant private sector, and ongoing reforms since 1991, which have positioned it as an attractive investment destination. Additionally, challenges and opportunities for future growth, including massive infrastructure investments and a young, skilled population are addressed.
Why India?
- 1.
- 2. Where arewe coming from? Where are we now? Where are we going?
- 3. Where Are WeComing From? The world is just discovering it yet India’s growth story is NOT new. She has been going strong for the past 25 years!
- 5. 5,000 yearold ancient civilization 325 languages spoken – 1,652 dialects 18 official languages 29 states, 5 union territories 3.28 million sq. kilometers - Area 7,516 kilometers - Coastline 1.3 Billion population. 5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million. Parliamentary form of Government Worlds largest democracy. Worlds 4th largest economy. World-class recognition in IT, bio-technology and space. Largest English speaking nation in the world. 3rd largest standing army force, over 1.5Million strong. 2nd largest pool of scientists and engineers in the World. INDIA
- 6. India's per capitaincome is projected to soar by 10.4 per cent in 2013-14 as the country becomes a $1.7 trillion economy.
- 7. (%) (Years) Sources: 1900-1990: AngusMaddison (1995), Monitoring theWorld Economy, 1990-2000: Census of India (2001) Population Growth is Slowing 1 billion Population of India: 24 Median age. 290,000 Number of engineers who graduate in India each year.
- 8. 900 million cellphone subscribers in India. 74.09 phones per 100 population 137 million Internet users in India. 11.4% internet users per 100 population
- 9. Indians are Youngerthan the World… 36 30 37 3839 39 44 44 USA China Russia UK 24 30 35 40 45 50 24 India 31 2000 2025
- 11. India is poisedto OVERTAKE Japan to be the 3rd Largest Economy India is the Fourth Largest Economy
- 13. India Domestic Services Consumption HighTech (Capital Intensive Industry) Drivers of Growth East and S.E. Asia • Exports • Manufacturing • Investments LowTech (Labor Intensive Industry)
- 14. “Domestically Led” Means: Insulationfrom global downturn Less volatile Recovery from global crisis faster Implications of the India Model
- 15. India’s success ismarket-led while China’s is state induced Reasons for Success The entrepreneur is at the center of the India Model
- 16. Rise of GloballyCompetitive Indian Companies
- 17. 100 Indiancompanies have a Market Capital of 100 billion USD 1,000 Indian companies have received foreign institutional investment 125 Fortune 500 companies have R&D in India 390 Fortune 500 companies have outsourced software development to India 2% Bad Loans in India (v. 20% in China) 80% credit goes to private sector (v. ~10% in China) India has aVibrant Private Sector
- 18.
- 19. We have: Dynamicdemocracy with honest elections Free, lively media and press Independent Judiciary Rule of Law Advantage India
- 20. The economygrows at night Working to support economies around the world means there are people ‘always awake’ and working
- 22. Open economyto trade and investment Dismantled control Lowered tariffs Dropped tax rates Broke public sector monopolies Divested government shares Introduced public-private partnership! Key Reforms
- 23. Remarkable– everygovernment has reformed (slowly) since 1991 Slow reforms add up 65 countries have undertaken the same reforms– why did India become the second fastest growing economy in the world? Unappreciated fact– rule of law Understanding India’s Economic Success
- 25. Where are WeGoing? Base case post recovery is 7.5-8.5% GDP growth Democracy will not permit more than 8% unless you have aThatcher! 1.5% of population growth & declining! Young & high skilled population Demographic dividend– growth will continue beyond China
- 26. 2,100 3,050 5,800 16,800 37,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 20002005 2020 2040 2066 On a ppp basis Per Capita Income ($inThousands) (Years)
- 27. Convergence in the21st Century Why is convergence intuitive? Convergence didn’t happen in the 20th century because the world was closed Returning to a world of equality prior to 1750 Once again China and India will account for 45% of world’s GDP
- 28. 0 5 10 15 20 25 30 35 40 45 50 1980 2000 20102020 2040 8 22 32 50 50 IndiaTurning Into Middle Class (Years) (%)
- 29. The Show WillGo On! Infrastructure Improving via public-private partnerships Overcoming Fiscal deficit Strengthening Government Policies These changes have improved the show in the past 25 years
- 30. India gotdemocracy before capitalism and this has made all the difference Growth slower than China but surer An elephant at 8% growth is formidable! We have waited 3000 years for this moment India is more likely to preserve its way of life
- 31. 2nd fastest growingeconomy in the world India Now in Overdrive 8% average annual growth for last 10 years
- 32. India Now inOverdrive
- 33. Attractive Investment Destination IndiaNow in Overdrive
- 34. Infrastructure Investments $500 billion USDin the next 5 years Roads ($48bn USD) Airports ($9bn USD) Ports ($12bn USD) Power ($9bn USD) Others • Gas Pipelines • -Telecom • - Health and Education • Infrastructure • - Urban Mass Transport • - UrbanWater Supply, Solid • Waste Management India Now in Overdrive
- 35. Diversifying export basket Fromlarge to medium to small ExpandingTrade M E D I A & E NT E RT A I N M E NT F I N A N C I A L S E RV I C E S RETAIL BUILDING & CONSTRUCTION AVIATION ARCHITECTURE
- 36.
- 38. Advanced Manufacturing Aviation Biotech, Health &Medical ICT Defense & Homeland Security Machinery & Equipment
- 39.
- 40. Emerging Industries Automotive Environmental Equine, Sport &Recreation Retail and Franchise Marine Energy
- 41. Agriculture and Food Packaged Food Beverages Food Ingredients Agro-Business Machinery & Equipment Specialty Items Fresh Produce Wines Agro-expertise/Services
- 42. Services Education &Training Financial Services Professional Services Media and Entertainment
- 43. India – theNext Big Market AreYou Ready?
- 44.
Editor's Notes
- #19 18