The document discusses the growing Indian economy and its increasing globalization. It notes that India's GDP has grown significantly from 1999 to 2010, with services contributing over 60% to the economy. Exports and imports have also increased substantially. Foreign direct investment in India has risen sharply, and major mergers and acquisitions have involved Indian firms purchasing overseas companies. Overall, the Indian economy has rapidly integrated into the global marketplace in recent decades.

1. INDIAN ECONOMY AND GLOBALISATION

2.  The term globalization means International
Integration.
 It is a process through which the diverse world
is unified into a single society.
 Opening up of world trade, development of
advanced means of communication,
internationalisation of financial markets,
growing importance of MNC's, population
migrations and more generally increased
mobility of persons, goods, capital, data and
ideas

4.  Accountability
of Global businesses?
 Increased gap
between rich and poor
fuels potential
terrorist reaction
 Ethical responsibility
of business?
 Efforts to remove
trade barriers.

5.  Marketing
Nike  Branding

Advertising
 Cost down

Dell Outsourcing

6.  New trade pattern: developing countries
◦ don't just have to trade their raw materials to the West
and get finished products in return;
◦ can become big-time producers as well.
 New production pattern: global product network
◦ companies can locate different parts of their
production, research and marketing in different
countries

7.  Growing global markets in services
people can now offer and trade services globally -- from
medical advice to software writing to data processing --
that could never really be traded before.
W-2, W-4, 1099
bonuses & stock
statements
Indian accountant
US tax payers

8.  Market economic policies spreading around the
world, with greater privatization and liberalization
than in earlier decades.
ex: BRIC
 Widespread adoption of democracy as the choice
of political regime.

9.  Multilateral agreements in trade, taking on such
new agendas as environmental and social
conditions.
 New multilateral agreements – for services,
intellectual property , communications – more
binding on national governments than any
previous agreements.

10. Growth
Customer Survey

11. Growing Indian Economy
2010 *
 GDP – USD 1.36 trillion
 GDP growth rate – 9%
 Services contribution –
60-65% 2008 *
 Balance of Trade – Negative  GDP – USD 1.16 trillion
balance should increase with
surging imports versus exports  GDP growth rate – 9.5%
2006
 Investment goal –  Services contribution – 60%
USD 370 billion  Balance of Trade – Negative  GDP – USD 590 billion
balance should increase with  GDP growth rate – 9%
surging imports versus exports
 Services contribution – 54%
 Investment goal –
USD 305 billion  Balance of Trade –
USD (-)46.2 billion
 Investment goal –
USD 250 billion
*: Projected
Source: Economic Times & India Brand Equity Foundation (IBEF)

12. Growing GDP
1,200 Contribution of Services -
increased from 48% to 62% and
is estimated to contribute 60% by 2010
1,000
800 682
USD Billion
600 453
398
400
237 287
191
204 231
200 125
103
105 105 135 145 167
0
1999-00 2002-03 2005-06 2006-07 2010*
Agriculture Industry Services
*: Projected
Source: India Brand Equity Foundation (IBEF)

13. Growing Exports
*: Projected
Source: Ministry of Commerce & IBEF

14. Growing Imports
Source: Ministry of Commerce & IBEF

15. Increasing Forex Reserves
India's Forex Reserves: 2001-08 (Till 14 March 2008)
350
306
300
250
199
USD Billion
200
141 152
150 112
100 75
54
50
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
(Till 14
March 08)
Steadily increasing Forex reserves offer adequate
security against any possible currency crisis or
monetary instability
Source: Reserve Bank of India & India Brand Equity Foundation (IBEF)

16. Growing FDI Inflows
Electronic equipment,
India is ranked second in
manufacturing and telecom
AT Kearney’s FDI
have witnessed significant
confidence index (2007)
FDI inflow
* Provisional
Source: Department of Commerce

17. Increasing Per Capita Income
Source: India Brand Equity Foundation (IBEF) & Economic Survey 2007-08

18. Major M&A and Investments Announcements in India
POSCO to invest in building steel
manufacturing plants and facilities USD 12 billion
in India by 2016
Plans to establish three
manufacturing plants to produce
photo-voltaic units USD 2 billion
Plans to spend on its development
operations in India over the next USD 1.7 billion
four years
Source: India Brand Equity Foundation (IBEF)

19. India Inc. Investing Overseas
Main sectors:
• Auto Components • IT
• Beverages • Metals
• Cosmetics • Mobile Communications
• Energy • Pharmaceuticals
• Financial Services • Software
• Industrial Goods
Main Destinations:
China, UAE, UK
North America is emerging as a destination.

20. Additional economic indicators:
• India has a consumer base of 1.14 billion people
• India is the 4th largest economy in the world when measured by PPP
• India’s has a growing middle class of over 300 million people - 30% of
India’s population – and larger than the population of the US
• India is the 3rd largest global telecom market. The mobile subscriber base
has grown from 0.3 Million in 1996 to over 250 million currently.
• India is likely to add over 200 shopping malls by 2010 and 715 malls by
2015
• The number of billionaires in the country were 3 in 1999; 23 in 2006; and
are 48 currently.

21. India’s Trade with USA
USD Billion
Exports to US Imports from US
Source: Department of Commerce, Govt of India

22. Major Items Exported to USA (2006)
Source: US Department of Commerce

23. Major Items Imported from USA (2006)
Source: US Department of Commerce

24. Buyer Acquisition Price
Reliance Industries Flag Telecom, Bermuda US$ 212m
Tata Motors Daewoo, Korea US$ 118m
Infosys Technologies Expert Information Services, Australia US$ 3.1m
"Toyota Motor has Bharat Forge Carl Dan Peddinghaus, Germany N/A
chosen to source from
Ranbaxy RPG (Aventis) Laboratories, France N/A
India due to its
competitive cost of Wockhardt CP Pharmaceuticals, UK US$ 18m
manufacture,
availability of Cadila Health Alpharma SAS, France US$ 5.7m
abundant engineering
Hindalco Straits Ply, Australia US$ 56.4m
talent, and strong
indigenous machine Wipro NerveWire Inc, USA US$ 18.5m
tool."
Aditya Birla Dashiqiao Chem, China US$ 8.5m
United Phosphorus Oryzalin Herbicide, USA US$ 21.3m

25. Automotive Sector - Overview
 India is the world’s:
• 2nd largest two-wheeler market,
• 4th largest commercial vehicle market
• 11th largest passenger car market.
 Expected to be the 7th largest
automobile market by 2016
 India has become an attractive
destination for global American,
European, Japanese and Korean OEMs.
Source: IBEF, Economic Times

26.  1990 FDI $ 234 Million
 1998-2003 FDI $ 2.5 Billion Per Year
 Target FDI $ 10 Billion Per Year
 Over 620 FIIs Compared to 500 in 2003 and Earlier
 China FDI & FII
FDI $ 50 Billion Per Year
FII $ 20 Billion Per Year

27.  Agriculture acquired 17% of India’s GDP in
2008.
 60% of population still depends on
agriculture for their livelihood.
 Occupied 43% of India’s geographical areas.
 All other sectors are growing at much faster.

28. Year Industry(%) Service(%) Agriculture(%)
1991 25 31 44
2007 28 55 17

29.  Current Literacy rate is 64.84%
Year Literacy Rate Male -
Female
Person Male Female Gap
1981 43.6 56.4 29.8 26.6
1991 52.2 64.1 39.3 24.8
2001 65.4 75.8 54.2 21.6

30. What are people talking about
India?
"India has a fantastic pool of
software professionals. The This market (India) is critical
world needs to benefit from to our plans for building a
this.“ Ford Motor Co. for the 21st
century
Bill Gates,
Microsoft Bill Ford,
Chairman Chairman and
CEO
India on its way to becoming
IT, manufacturing kingdom of The dynamism shown by India
the world in the last 15 years is
phenomenal
Mr Yasukuni Enoki,
Japanese Ambassador Paul Wolfowitz,
to India President, World Bank

31.  High growth but problem of unemployment.
 Need to generate 10 million jobs per year.
 Multi party rule, hence need to accommodate
political ideology with economic reality
(reservation, labour law reforms).

32. Companies in India That Have Successfully Met
Competition by Multinationals & Domestic
Companies Had A Spirit Of Innovation Not Only
In Their Products And Services But Also With
Reference To All Their Resources And Effectively
Restructured Them In A Time And Cost Frame
And Met Customer Needs And Improved Their
Top And Bottom Line.

33. Thank You