This document provides an overview of India's economy and society. It notes that India is the largest democracy, has a long history and diverse population, and is now the 4th largest economy in the world. India has experienced high economic growth in recent decades, driven by domestic consumption, services, and a large private sector. This growth has lifted many out of poverty and created a large middle class. However, infrastructure and other issues remain as India continues developing as a global economic power.

1. INDIARedefining progress

2. Did You know that India.......Is the largest democracy in the world

3. Has one of the most ancient civilizations, with a history of scientific enquiry.

4. Has never invaded another country ,yet the 3rd largest armed country, and even a nuclear weapon power.

5. Is world’s 4th largest economy

6. Has 29 states; 325 languages; 1652 dialects and many civilisations.

7. Has 2nd largest pool of technical manpower in the world.

8. Produces 50,000 doctors, 350,000 engineers and 800,000 MBAs every year.India…a unique, very complex story In India,an Italian lady born a Catholic (Sonia Gandhi)stepped aside so a Sikh (Manmohan Singh) could be sworn in as Prime Minister by a Muslim President (Abdul Kalam)to lead a nation that’s 82% HinduCan you cite another country with such diversity and tolerance??

9. Even though the world hasjust discovered it, the Indiagrowth story is not newIt has been going on for 25 years

10. What is the India story?

11. 28 years of high growthAverage annual GDP growth(%)(%)108.986.063.541.0201900-19501950-19801980-20022002-2007

12. Literacy is rising(%)100808065526040172001950199020002010 PSource: Census of India (2001)

13. (m)0The rise of a strong middle class makes it a consumption driven economy32%22%8%400368300200220100652010 19802000Source: The Consuming Class, National Council of Applied Economic Research, 2002

14. India is now the 4th largest economyIt will overtake Japan between 2012 and 2014 to become the 3rd largest

15. The India model is unique

16. Drivers of growthIndiaDomesticServicesConsumptionHigh tech, capital intensive industryEast and S.E. Asia Exports Manufacturing Investment Low tech, labour intensive industry

17. Implications of India model ‘Domestically led’ means:Insulation from global downturnsLess volatilityComing out of the global crisis faster

18. 33%59%42%64%IndiaIndiaChinaChina41%U.S.Europe58%45%BrazilImplication of India model – Consumption ledPeople Friendly:Consumption as % of GDPPeople Friendly, Less inequality: Gini IndexWill India become the next big consuming economy after the U.S.?

19. India’s success is market-led whereas China’s is state inducedThe entrepreneur is at thecentre of the Indian model

20. India has a vibrant private space 100 Indian Companies have market cap of US$ 1bn 1,000 Indian Companies have received foreign institutional investment125 Fortune 500 companies have R&D bases in India390 Fortune 500 companies have outsourced software development to India2% bad loans in Indian banks (v~20% in China)80% credit goes to private sector (v~10% in China)

21. Understanding India’s economic successMental revolution among the young“I want to be Bilgay” “Banianisation” of society300+ TV channels; 65 news channelsThe rise of Hinglish

22. “By 2010 India will have world’s largest number of English speakers”“When 300 million Indians speak a word in a certain way, that will be the way to speak it.”Professor David CrystalCambridge Encyclopedia of the English Language

23. Key government reformsOpened economy to trade and investmentDismantled controls Lowered tariffsDropped tax ratesBroke public sector monopolies

24. Where the government infrastructure fails…..….. Innovation kicks in

25. Business in 21st century IndiaYet Another Point Of View

26. First …the bad newsInadequate infrastructure

27. roads

28. ports and airports

29. power

30. Labour productivity issues

31. Some archaic laws -eg. Land ,labour

32. Socialist hangovers –or posturings

33. Intermittent fundamentalism issues…..and some good newsSecular tolerance-2nd largest Muslim population

34. Stable and sharp economic growth

35. Well established banking and a judicial system

36. Very young population-that means hands ,and demand

37. Developing into a consumption economy

38. Changing bureaucracy

39. Declining trade unionism

40. Federal and unitary amalgamWhy was it this way….The Hindu DNA-acceptance and karma

41. A few hundred years of subjugation

42. And then by politicos

43. Erosion of self esteem

44. Complex governance issuesAnd what has changed……..Intellect-the main Indian export

45. Abundance of knowledge resources- and creation of the arbitrage opportunity

46. Global acceptance of the Indian mind