India – The Investor’s Paradise

Rabi N Bishoyi, Habiba Shan, Manasi Talikoti, Ranjith PM, Angad Singh, Calvina Serrao, Twinkle Rohra

Objective

To portray India as an attractive investor destination based on

facts and figures from the Indian Economy.

IntroductionTrue, we read our own newspapers, true, they may be biased, but what

if the whole world is saying the same thing.

India is growing; as a country, as an economy, as a global platform.

From GDP to FDI, from natural resources to human resources, from infrastructure to trade, the opportunities are endless, and it is up to

the world to capitalize on it.

National Income•GDP Growth –The Economy of India is the tenth largest in the

world by nominal GDP and the fourth largest by purchasing power parity (PPP). Current Growth of 8.2%.

•Growth In Different Sectors - services (55.3%), industry (28.6%), agriculture (16.1%) (2010)

•Forex Reserve - Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability.

•External Debt to GDP - the decreasing external debt to GDP ratio indicates that India has a sound economic platform

205 223319 347

103 91

116117

104 109

155168

0

100

200

300

400

500

600

700

1999-00 2002-03 2005-06 2006-07

US

D B

illio

n

Services Agriculture Industry

India's GDP: 2002-07

424484 534

590 631

0

100

200

300

400

500

600

700

2002-03 2003-04 2004-05 2005-06 2006-07

US

D B

illio

n

GDP at Constant Prices

India's Forex Reserves: 2001-07 (Till 22 June 2007)

5475

112

141152

199213

0

50

100

150

200

250

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08(Till 22June)

US

D B

illio

n

External Debt-to-GDP Ratio

21.120.4

17.817.3

15.816.4

10

13

16

19

22

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Ra

tio

Demographic Profile• Working Population - Countries worldwide are

anticipating a shortage of working population in the future. India is expected to emerge as a clear winner,

and by 2050, it will have the largest working age population

•Demographic Transformation - Growth in the higher income categories of India’s population has created an affluent section of society, which has significant level of

purchasing power

•Consumerism - Increasing per capita income and a 300 million strong middle class has led to high level of

consumerism in India

Per Capita Income

393

461519

583

651

0

100

200

300

400

500

600

700

2002-03 2003-04 2004-05 2005-06 2006-07

US

D

Trade•Exports - Quality and cost advantage are the two

important parameters leveraged by the Indian producers to increasingly market their products

and services

•Imports -Imports of products by India mainly includes petroleum products and minerals.

•Mergers & Acquisitions - In 2006, there were a total of 480 M&A deals and 302 private equity

deals.

India's Exports: 2002-07 (till February 2007)

52.8163.95

83.81

103.42112.40

0

20

40

60

80

100

120

2002-03 2003-04 2004-05 2005-06 2006-07(upto Feb.

07)

US

D B

illio

n

India's Import: 2002-07 (till February 2007)

61.5278.28

111.89

149.65162.30

020406080

100120140160180

2002-03 2003-04 2004-05 2005-06 2006-07(upto Feb.

07)

US

D B

illio

n

Number of Deals and Values

12.3

18.3

28.2

306

467

782

0

5

10

15

20

25

30

2004 2005 2006

US

D B

illio

n

0

100

200

300

400500

600

700

800

900

Nu

mb

er

of d

ea

ls

Deal Values No. of Deals

FDI/FII & Industrial Policy• India is ranked second in AT Kearney FDI confidence

index

• Liberal and Transparent Investment Policies

•Positive economic reforms aimed at deregulating the economy

• Minimal Red Tapism

FDI Inflow - India: 2001-07

4,2223,134 2,634

3,755

5,546

15,730

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

US

D M

illio

n

Net FII into India: 2001-07

1.80

0.60

10.00 10.209.40

6.72

0

2

4

6

8

10

12

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

US

D B

illio

n

Scope•Investment - Bharat Nirman, JnNURM,

Power, Roads, Ports, Airports, Telecommunication, IT, Food Processing,

Governance, Waste Disposal, SEZ’s

•Incentives – Tax Exemptions, Excise Duties, 100% FDI, Transport & Investment Subsidies

•Opportunities - Research, Manufacture, Capital, Development & Management of

Infrastructure, Employment

The Road Ahead

• GRDi - India has been ranked superior to other major countries by many prominent surveys. The retail market along with the services sector has

been attracting the interest of major players

• GSLi – India does better than many upcoming economies in terms of its financial structure, business environment and people and skill availability

• Projected GDP - India is expected to outperform its rivals in the BRIC, in terms of GDP growth rates, from 2015 onwards.

0

20

40

60

80

100

India Russia Vietnam Ukraine China Chile Latvia

GR

DI S

co

re

2007 Global Services Location Index

3.3

2.6

3.2

2.8

2.9

3.2

1.5

1.8

1.2

1.3

2.3

2.3

1.1

1.5

1.6

2

1.4

1.4

Indonesia

Brazil

Thailand

Malaysia

China

India

Financial structure People and skill availablityBusiness environment

Projected GDP Growth Rates for Select Upcoming Economies

0

2

4

6

8

2005-10 2010-15 2015-20 2020-25 2025-30 2030-35 2035-40 2040-45 2045-50

GD

P G

row

th R

ate

(%)

Brazil China India Russia

Thank You

Easy Question = Rs. 10Difficult Question = Rs. 5