The document provides an overview of key industries and economic indicators in India. It discusses advantages like a growing economy, favorable demographics, and a thriving services sector. Several industries are summarized, including GDP growth rates, FDI inflows, sector breakdown, and highlights for education, luxury brands, financial services, pharmaceuticals, healthcare, biotechnology, and retail. Analysis sections discuss opportunities and challenges for foreign investment and growth in these industries in India.

1. FW/09-11/ISBE/PGP 1
INDIA – SNAPSHOT
~ SANDESH GHOSAL

2. ADVANTAGES – INDIA
2
 Fastest growing Economy: Fifth largest economy - GDP (PPP). Second fastest growing economy in the
world after China
 Favorable Demographics: About 64.3 percent of the population falls under the working 3 age group
and 30 % comprises of children . Highly skilled, English speaking and technical manpower - lower costs
 Thriving Services Sector: Chief source of economic growth in recent years, contributing to over 1/2 of
the country’s GDP, while employing only 1/3rd of labor force
 World’s Largest Democracy: stable democracy, independent judiciary and free press make India
better off than it’s counterparts
 Principal Exports: Petroleum products, textile goods, gems and jewelry, engineering goods, machinery
and instruments, pharma and fine chemicals, metals, transport equipment, iron ore, primary and semi-
finished iron and steel
 Principal Imports: Petroleum crude & products, electronic goods, transport equipment, gold, iron and
steel, precious and semi-precious stones, organic chemicals, coke, coal and briquettes, etc .
FW/09-11/ISBE/PGP

3. INDIA’S GDP GROWTH
3
Series 1
12
10 9.5 9.7
9
8
6.7
% Growth
6
6
4
2
0
2005-06 2006-07 2007-08 2008-09 2009-10E
Source: Economic Survey, Ministry of External Affairs, Government of India
FW/09-11/ISBE/PGP

4. FDI INFLOWS
4
30
25
20 CAGR – 65%
15
10
5
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Source: Department of Industrial Policy & Promotion
FW/09-11/ISBE/PGP

5. GDP COMPOSITION
5
17%
Service Sector
20% Industry
63%
Agriculture
Source: IBEF
FW/09-11/ISBE/PGP

6. …more facts
6
According to a UNIDO analysis based on 2007 figures mentioned in the International
YEARBOOK OF INDUSTRIAL STATISTICS 2009
 India ranks among the top 12 producers of manufacturing value added (MVA)
 Textiles, the country is ranked 4th after China, US and Italy
 electrical machinery and apparatus, it is ranked 5th
 holds 6th position in the basic metals category
 Ranked 7th in chemicals and chemical products
 Ranked 10th in leather, leather products, refined petroleum products and nuclear fuel
 Ranked 12th in machinery and equipment
FW/09-11/ISBE/PGP

7. AGRICULTURE & FOOD PROCESSING
7
PARAMETERS STATISTICS
Overall Indian Food Market Size USD 182 billion
(2008)
Food Processing Industry Size - 2008 USD 67 billion
Growth in 2007-08 13.1%
CAGR (2008-2015) 20%
FDI Inflows (2000-2009) USD 750 million
Exports of Processed food (2006-07) USD 20.5 billion
Foreign Players in India Unilever, Cadbury Schweppes,
PepsiCo, Nestle,
FW/09-11/ISBE/PGP
Source: India Food Report, 2008; Ministry of Food Processing Industries, Indian MSM Ecosystem, DGCIS

8. …contd
8
Region Package & Consumption
Northern Region 28%
Western Region 30%
South India 25%
Eastern Region 17%
Source: Euromonitors, Packaged Food India – May 2009
FW/09-11/ISBE/PGP

9. ANALYSIS – Agriculture & Food Processing
9
 Inclusion of FDI in agriculture sector
 Infrastructure of cold storage, warehouse should be improved at larger
scale.
 Improve on quality control and testing should be done i.e. more number of
testing centers should be there.
 Supply chain & involvement of middlemen should be increased.
 Growing demand in organic food market and immense export.
 Rising demand in branded packaging food.
“Atleast if consider the above points, India should start looking to European
Union countries as markets are already established.”
FW/09-11/ISBE/PGP

10. Hillary Clinton
10
U.S. Secretary of State
FW/09-11/ISBE/PGP

11. EDUCATION
11
PARAMETERS STATISTICS
Industry Size – 2009 USD 50 billion (2008)
Pvt. Spend on Education USD 80 billion (2012)
Education Spend (% of GDP) 3.7% (10th FYP – Five Year Plan)
6% proposed in 11th five year plan
Target Population (5-24 years)** 445 million (2008)
486 million (2025E*)
School & Institutions 1.3 million schools; 20,000 higher
education & 350 universities
Key Private Players Educomp, Everonn, NIIT, Career
Launcher, Core Projects
FW/09-11/ISBE/PGP

12. Key Industry Trends
12
 Government - encouraging Public - Private–Partnership
 Demand for skilled workers - vocational training institutes
 E-learning market comprising of:
 Digital content in private schools,
 Information, Communication and Technology (ICT) program for
Government schools and
 online education market is gaining importance
 Foreign universities - offering online courses to Indian students
FW/09-11/ISBE/PGP

13. Advantage - India
13
 Government – importance of education - achieving rapid and inclusive growth
 Average household spending: estimated to increase 5.4% over 2005-25
 Increase expenditure on education to 6 % of GDP
 Tax Benefits:
 Under the provisions of certain tax treaties between India and foreign countries,
income earned by foreign professors/ teachers who visit India for the purpose of
teaching at a university or other approved institution, is exempt from tax in India
 Government - likely to allow the IITs and IIMs to open campuses in foreign countries
Source: 11th Five Year Plan document; ICICI Securities, Education Services, February 2008
FW/09-11/ISBE/PGP

14. Analysis - Education
14
 Large untapped market in India
 About 1.5 lakh students from India go abroad for higher education and this
number is rising by 35 % annually
 During 2007-08, about 1,700 students went to France, while 4,500 students opted
for Germany as their educational destination
 At present, only 2% of Indian schools are equipped with computers offering room
for growth
 Opportunities
 Language constraints especially in Italy, France , Spain and Germany
 Cost of studying in western countries are very higher
 Challenges - Indian Education Sector is highly regulated
FW/09-11/ISBE/PGP

15. 15
Kapil Sibal –
Human Resource Development Minister TOI, FDI in Education top
priority , 25th June 2009
FW/09-11/ISBE/PGP

16. LUXURY BRANDS
16
PARAMETERS STATISTICS
Industry Size – 2007 USD 0.8 billion
Expected growth for the next 5 years 25%
Share of Global Market 0.4%
# of luxury brands (2008) 25 (8 in 2005)
Foreign Players in India Hugo Boss, Versache, Chanel, Zara,
Gucci, Chritian Dior, etc.
FW/09-11/ISBE/PGP

17. Key India Markets
17
• Political Capital
• Luxury Consumers – politicians, bureaucrats,
DELHI businessmen & Senior Executives
• Commercial Capital & home to Bollywood
• Luxury Consumers – film stars, CEO,
MUMBAI executives & socialists
• IT Capital of India, elite group of CEO & Top
level executives
BANGALORE • Luxury Consumers still to make an impact
• Untapped Market
• Luxury Consumers – film stars, politicians &
CHENNAI businessmen
FW/09-11/ISBE/PGP

18. Key Industry Trends
18
 Market driven by niche segment
 Industry driven by Bollywood
 Changing life style – unbranded to branded
 Ability to manufacture @ low cost
 Well developed media industry for advertising & marketing
 Major cities – many malls
FW/09-11/ISBE/PGP

19. Analysis – Luxury Brands
19
 Number of brands increasing – so FDI limit should
be increased.
 Indian fashion accepted worldwide.
 Indian designers – labeled in cities London, etc.
 Common methods to enter – JV, Franchising
 60% of European brands are not present in India.
 Design Process – Indian designers are gaining
recognition globally
FW/09-11/ISBE/PGP

20. FINANCIAL SERVICES
20
PARAMETERS BANKING INSURANCE MUTUAL FUND
Industry Size (2008) USD 1081 billion USD Life = 48.6 USD 98.7 billion
billion
Non life – USD 8.7
billion
Expected Industry USD 2130 billion Life = USD 80-100 USD 192.8 billion
Growth (2012) billion (2013)
Non-Life = USD
18.3 billion (2013)
Major Foreign BNP Paribas, Aviva, Standard ING, HSBC
Players in India Barclays Life, Bajaj Allianz
Major Indian SBI, BOB, ICICI NA NA
Players Globally
Source: AMFI, IRDA, RBI, BMI
FW/09-11/ISBE/PGP

21. Key Industry Trends
21
 Rise in entry of foreign players in financial service sector
 Indian banks venturing into new opportunities like insurance and mutual fund
 Low penetration of financial services
 Rising income levels
 Leading financial service centre
 Favourable tax and regulatory environment
 Advanced technology
 Low dependence on exports and high reliance on
 domestic market
 Low exposure to sub-prime loans
 High savings rate
FW/09-11/ISBE/PGP

22. Analysis – Financial Services
22
 India – needs more improvement in terms of
awareness
 More reach & distribution required
 MNCs – enter through acquisitions, joint ventures &
wholly owned subsidiaries.
 Offshoring of banking and financial services to
India.
 Enter – by setting private equity funds.
FW/09-11/ISBE/PGP

23. 23
MR FIDELIS M GOETZ,
HEAD OF PRIVATE BANKING - BANK SARASIN
FW/09-11/ISBE/PGP

24. PHARMA, BIOTECH & HEALTHCARE
24
PARAMETERS STATISTICS
Size of industry - Pharma USD 16.6 billion
Healthcare delivery USD 36.6 billion
Biotechnology USD 2.5 billion
Expected Industry Size (2013) USD 37.1 billion
Healthcare Delivery (2012) USD 64.2 billion
Biotechnology (2013) USD 13-16 billion
Pharma Exports USD 8.9 billion
Foreign Players Presence in India GlaxoSmithKline, AstraZeneca, Sanofi
Aventis, Novartis, Solvay
Source: Crisil Research Pharmaceuticals Annual Review December 2008, Crisil Research Hospitals Annual Review May 2008,
FW/09-11/ISBE/PGP

25. SPLIT of INDIAN PHARMACEUTICAL MARKET
25
22%
Domestic
MNC
78%
Source: IBEF
FW/09-11/ISBE/PGP

26. Key Pharma Clusters
26
Baddi (Himachal Pradesh)
Agra
Lucknow
Ahmedabad
Gandhinagar
Baroda
Vapi/Valsad
FW/09-11/ISBE/PGP

27. Key Industry Trends
27
 Increasing potential of domestic drug consumption market
 Indian pharma companies penetrating regulated and semi-regulated
markets
 Emerging as an attractive outsourcing destination in areas of Contract
 Indian biotechnology industry is a sunrise sector
 Ranked among the top 12 biotech destinations globally and is third biggest
in Asia, Pacific by number of biotech companies
 Healthcare delivery market - rapidly transforming.
 Focus of Indian companies shifting from USA to JAPAN – JAPAN world’s 2nd
largest pharma market.
FW/09-11/ISBE/PGP

28. Advantages & Opportunities
28
 Highest number of US FDA approved plants
 Low cost destination for drug development and manufacturing
 Five-year tax holiday for hospitals set up in Tier II and III cities between
April 2008 and March 2013
 Government policies on FDI and tax promote foreign players foray into the
country
 A tax deduction to the tune of 150 % on R&D spent
 Exemption of clinical trials from service tax
 65% of population in Rural Area – no access to medicines & health care
facilities
FW/09-11/ISBE/PGP Source: KPMG Report

29. RETAIL
29
PARAMETERS STATISTICS
Industry Size – 2007-08 USD 345 billion
Share of organized retail in the total retail USD 20 billion
market (2007-08)
Expected growth rate (2008 - 2013) 12.5 %
Expected growth rate of organized 18.9%
retailing (2008 - 2013)
Foreign Player Presence Wal mart, Tesco, Metro AG, Gap, Marks &
Regulatory Spencer, Mc Donalds, Guess, Home Depot,
staples, Benetton, Body Shop
Source: Crisil Research
FW/09-11/ISBE/PGP

30. Key Markets
30
Kolkata
Pune Hyderabad
Ahmedabad Bangalore
KEY
Mumbai Chennai
MARKET
Source: Euro Monitor, Retailing in India, 2009 FW/09-11/ISBE/PGP

31. Emerging Industry Trends - Analysis
31
 Rising health, fitness and wellness retailing
 Increasing popularity of home décor and furnishing stores
 Cash and carry – 100% FDI is permitted only through this format.
 Direct retailing and internet retailing are emerging as attractive non-store based retail formats
 Rising urbanization and internationalization
 Increase in income leading to rise in purchasing power
 Young population willing to experiment with new trends
 Low cost destination
 Large & Untapped rural market
 Octroi – abolished to boost retail in many states
FW/09-11/ISBE/PGP

32. REVENUE & SHARES OF VERTICALS
(source: IBEF)
32
Food & Clothing Consumer Jewelry & Home Beauty Books &
Foot ware
beverages & textile Durable Watch Décor Products Music
3,268 &
231,951 & 29,024 & 15,171 & 13,390 & 9,463 & 6,854 & 2,610 &
1.05%
74.41% 9.31% 4.87% 4.30% 3.04% 2.20% 0.84%
ALL IN USD & MILLION
FW/09-11/ISBE/PGP

33. 33
FW/09-11/ISBE/PGP

34. 34
FW/09-11/ISBE/PGP