Market Intelligence for India - M-Brain Market & Media ...GIA Geographies White Paper 2/2010 Market...

GIA Geographies White Paper 2/2010 Market Intelligence for India 1

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India is a complex market due to the

regional diversity, rural-urban divide,

presence of a large unorganized mar-

ket, and multiple legal and adminis-

trative systems. Companies that have

understood the nuances of handling

India’s complex business environment

have been successful. This white paper

seeks to help illustrate some of these

nuances, and offer some possible solu-

tions to overcoming the inherent MI

challenges in India.

EXECUTIVE SUMMARYIndian society is a melting pot of diverse traditions, customs, languages and dialects. Strong domestic consumption, increasing service demand and a steadily rising industrial output have been major drivers behind India’s fast paced growth over the past decade. However, regional diver-sity, unequal income distribution, inadequate infrastructure, and multiple state-level jurisdictions add up to make India a complex landscape for doing business. Thus, Market Intelligence (MI) practitioners in India are required to familiarize themselves with these challenges in order to deal with them in a more effective manner.

This Global Intelligence Alliance White Paper offers some possible solu-tions to overcoming the inherent MI challenges in India.

We begin with an overview of the key economic indicators across India’s states, as well as the major themes underpinning the country’s growth story. This is followed by the challenges that India throws up for MI practi-tioners, and concluded with few MI best practices within the India market context.

Two case studies provide further insight into these best practices and demonstrate the unique environments that can be found amongst India’s states.

Market Intelligence for India

GIA Geographies White Paper 2/2010


The term “Market Intelligence” which is used in this paper refers to understanding the present and future business environment by using the intelligence process to provide decision-making support. Terms such as competitor analysis, technology analysis or customer insight will be used under the overarching term “Market Intelligence”. “Market Intelligence” should be seen as synonymous with concepts such as Competi-tive Intelligence and Business Intelligence.

TABLE OF CONTENTSEXECUTIVE SUMMARY �� 11� INTRODUCTION��32� COUNTRY PROFILE ��43� GROWTH THEMES �� 104� CHALLENGES OF CONDUCTING MI IN INDIA �� 165� RECOMMENDED SOLUTIONS �� 196� CASE STUDIES ��207� REFERENCES ��22

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1� INTRODUCTION1�1 India – The billion-plus-people growth engineIndia is the world’s second most populous country after China with a population base of 1.16 bil-lion as of July 2010. The country supports 16% of the world’s population, on 2.5% of world’s land area. It is the world’s largest democracy with 29 states and 6 union territories under one central parliamentary government. Since adopting liberalisation policy in 1991, India has gradually and systematically transitioned from a closed to an open economy, escalating its growth to become a trillion dollar economy in 2007.

India recorded an annual economic growth of 7.4% in the financial year of 2010. India’s eco-nomic growth rates have remained more or less on a steady upward trajectory - hovering in the range of 7%-9% over the past few years and are expected to remain so in the next foreseeable future. This is backed by strong domestic consumption, increasing service demand and a stead-ily rising industrial output. IMF has projected India’s GDP growth at 9.4% for 2010-11 and 8.4% for 2011-12.

Exhibit 1� States and Union Territories of India

RajasthanUttar Pradesh

Maharashtra

Gujarat

AndhraPradesh

Tamil NaduKerala

Karnataka

Goa

MadhyaPradesh

China(Tibet)

Orissa

Bihar

Chattisgarh

Jharkhand

West Bengal

Jammu andKashmir

Punjab

Haryana

Himachal Pradesh

Uttarakhand

SikkimAssam

ArunachalPradesh

Nagaland

Manipur

Mizoram

Tripura

Meghalaya

North zone

West zone

South zone

East zone

Delhi

Table 1� India fact file

India fact file

Population 1.16 bn

Population growth 1.4% p.a

Land area 3.29 mn sq km

Population density 324 persons per sq km

Form of government Constitutional Republic and a representative democracy

Number of states 29 states & 6 union territories

Capital New Delhi

Per capita income Nominal: USD1,124.4 p.a

Religion 6 main religions

Languages Hindi (national language), English (business language), 22 official languages

Key festivals 8

Currency unit Rupees (INR)

Rural-urban mix 70% people reside in rural areas

Households 240 mn

Literacy rate 65%


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As India advances into the next development quadrant, growth opportunities will emerge across various sectors of the economy. And these will be more robust for sectors that are directly in-fluenced by domestic consumption, infrastructure spending and the outsourcing phenomenon. While growth opportunities and enabling regulatory environment are generating India-interest among international enterprises, challenges of doing business in India are aplenty. In addition to infrastructure bottlenecks, wide spread corruption and bureaucratic red-tape, regional diver-sity also adds to the business challenges.

This white paper throws light on various growth sectors of the Indian economy, categorised under the three broad growth themes of domestic consumption, infrastructure and outsourc-ing. We have profiled different regions in the country – categorised geographically. We have also provided an overview of the challenges of doing market intelligence in India and suggested practical solutions based on real life case studies and experiences.

2� COUNTRY PROFILEEconomic liberalisation has helped India emerge out of three decades of growth rates of 4%, propelling her into a high growth orbit. Today, the country has a stable union government and broad structural framework and soft infrastructures (transparent judiciary, good corporate gov-ernance etc) in place, India thus is well poised for a sustainable healthy economic growth. Some of the key features of the Indian economy are:

2�1 Transition into a service based economyIndia has transitioned over the past few decades from being an agrarian economy to a service based economy. While agriculture still employs more than 60% of the working population, its contribution to the national income has reduced by more than half over the last 40 years. In-stead, India’s robust economic growth has been supported by double digit growth in industrial production and a surging services sector.

1970 2000 2010

Source: RBI

15%

65%

20%

22%

57%

21%

44%

34%

22%

Exhibit 2� A service based economy

Industry

Services

Agriculture and allied activities

2�2 Internal consumption adds to more than 50% of India’s GDPTrade openness, measured by the trade-to-GDP ratio has more than doubled for India since the 1980s. Yet India continues to be relatively decoupled to the volatilities in the global economy in comparison to other emerging market economies. The trade to GDP ratio for India stands at 40% compared to other emerging economies such as China (80% as in 2008) or South Africa (60% in 2008) or Taiwan (more than 100%). Despite a three fold jump in its exports since 2000, exports to GDP ratio of India stood at 18% in 2009. Because of a lesser reliance on international trade, India’s economy has remained relatively insulated from exogenous shocks.

2�3 India remains a preferred destination for foreign capital: FDI in-flows have jumped 4 times since FY05FDI inflows have surged significantly over the last decade showing increasing confidence on the India growth story. India has received a cumulative FDI equity inflow of USD 117bn over the period Aril 2000 to July 2010. Despite experiencing a slowdown influx of foreign capital owing to the recent global recession India has still been ranked third place in global foreign direct invest-ments by the United Nations Conference on Trede and Development (UNCTAD).

2�4 Unequitable growth permeate across statesWhile all the states/regions contribute to India’s growth story, there is wide disparity among states not only in terms income levels but also in terms of literacy levels, industrialization and foreign capital flows of the differences in religion, culture and customs, languages and gastro-nomical preferences add to the regional diversity. While the top ten states by income are driven by capital intensive manufacturing industries, the last twelve states on the other hand, have concentration of labour intensive agriculture based industries such as bamboo making, horticul-ture, floriculture, and handloom.

The states are profiled on various parameters as tabled below in a descending order based on Net State Domestic Product (NSDP).

The services sector (financial

and non-financial) has received

the highest FDI inflows worth

USD 24 bn over the last decade.


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Table 2� States profiled on various parameters in a descending order based on Net State Domestic Product (NSDP)

States (in ascending order as per

NSDP)

Net State Domestic Product USD bn (07-08)

FDI inflow (USD bn)

(2000-09)

Literacy rate

Key industriesKey regional languages

Number of administrative

districts

Maharashtra 79.0 36.7* 76.9% Pharmaceuticals, biotechnology, IT and ITeS, engineering, auto and auto components

Marathi, Konkani

35

Tamil Nadu 73.3 (GSDP 2009)

5.2 73.5% Textiles, heavy commercial vehicles, automobile and auto components, railway coaches, power pumps

Tamil 32

Uttar Pradesh 49.8 46.7* 56.3% IT, agro processing, tourism, mineral based industries, textiles

Urdu 70

Andhra Pradesh

47.6 4.2 60.5% Agro and food based industry, biotechnology, bulk drugs and pharmaceuticals, IT and ITeS, mines and minerals

Telugu, Tamil 23

West Bengal 44.9 1.3* 68.6% Tea, petroleum and petrochemicals, leather, iron and steel

Bengali, Nepali

19

Gujarat 39.5 6.3 69.1% Agro and food processing, dairy, chemicals and petrochemicals, textiles and apparels, engineering and auto

Gujarati 26

Karnataka 33.4 6.4 66.7% IT and ITeS, biotechnology, engineering, electronics and telecom, automotive

Kannada, Tulu, Kodava

29

Rajasthan 26.6 0.5 60.4% Cement, auto and auto components, IT and ITeS, ceramics & marble, mining

Marwari, Jaipuri

33

Kerala 24.8 0.3 90.9% Handlooms and power looms, rubber, bamboo, coir, village industry, tourism

Malayalam, Tamil

14

Delhi 22.3 19.3* 81.6% Banking and financial services, IT / ITeS, tourism, food processing, construction / engineering

Punjabi, Haryanvi

9

Haryana 20.9 * 67.9% Automotive, agro based industry, IT / ITeS, textiles, oil refining

Punjabi 21

Madhya Pradesh

20.0 0.16* 63.7% Auto and automotive components, textiles, cement, agro based industries, forest based industries

Marathi 50

Punjab 19.2 3.9* 69.7% Tractors and auto components, agro based industries, bicycles, chemical products, textiles

Punjabi 20

Bihar 18.1 * 47.0% Food and beverages, rubber, transport equipment, chemicals, tobacco

Bhojpuri 38

Orissa 15.1 0.17 63.1% Iron and steel, aluminium, handloom, agro based industry, mining

Oriya 30

Jharkhand 10.1 - 53.6% Mining and mineral extraction, engineering, iron and steel, chemicals, metallurgy

Santhali, Urdu, Bengali

24

Assam 10.0 * 63.3% Tea, coal / oil / gas, limestone and cement, agriculture / horticulture, food processing

Assamese 27

Chattisgarh 9.8 * 64.7% Mining, iron, cement, power, IT / ITeS Chhattisgarhi 18


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We have clubbed and categorised the states into regions on the basis of their geographical posi-tioning. These regions are briefly profiled below along with the states from the region that figure among the top 10 states ranked by income.

WESTERN INDIAWestern India is one of the most developed regions in the country and is highly industrialized. Proactive government policies and relatively better infrastructure (social, physical and industri-al) have helped in attracting investments (foreign and domestic) over the years into the region.

States (in ascending order as per

NSDP)

Net State Domestic Product USD bn (07-08)

FDI inflow (USD bn)

(2000-09)

Literacy rate

Key industriesKey regional languages

Number of administrative

districts

Uttarakhand 4.91 0.04 71.6% Agro based industry, information and communications technology, floriculture, horticulture, pharmaceuticals

Garhwali, Kumaoni

13

Himachal Pradesh

4.63 * 76.5% Textiles, pharmaceuticals, food procurement / processing, light engineering, IT and electronics

Pahari, Punjabi

12

Jammu & Kashmir

4.36 - 55.5% Horticulture, floriculture, handlooms and handicrafts, tourism, mineral based industry

Urdu, Kashmiri, Dogri, Pahari, Ladakhi

22

Goa 2.09 0.4 82.0% Tourism, food processing, IT, mining, biotechnology, pharmaceutical, fishing

Konkani, Portuguese

2

Meghalaya 1.20 * 62.6% Agriculture, horticulture, mining, cement, tourism

Khasi, Garo 7

Manipur 0.91 0.06* 70.5% Village industry, handlooms and handicrafts, sericulture, food processing, bamboo processing

Manipuri 9

Arunachal Pradesh

0.57 * 54.0% Arts and crafts, weaving, cane and bamboo, carpet weaving, wood carving

Assamese, Bengali

16

Mizoram 0.46 * 88.5% Bamboo, sericulture, agriculture and horticulture, tourism, food processing

Mizo and local dialects

8

Sikkim 0.31 * 68.8% Tourism, agriculture, agro processing, handlooms and handicrafts, hydroelectric power

Nepali, Bhutia, Lepcha and local dialects

4

Nagaland NA - 67.1% Bamboo, agriculture and allied industries, horticulture, sericulture, minerals and mining

60 different dialects of Sino-Tibetian language

11

Tripura NA * 73.2% Natural gas, food processing, rubber, tea, bamboo

Bengali, Kokborok/Tripuri

4

* FDI figures combined: Maharashtra - Dadra and Nagar Haveli, Daman and Diu; Uttar Pradesh - Uttarakhand; West Bengal - Sikkim, Andaman & Nicobar Islands; Haryana - Delhi, parts of Uttar Pradesh and Haryana; Madhya Pradesh - Chattisgarh; Punjab - Chandigarh, Punjab, Himachal Pradesh and Haryana; Manipur - Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura

Source: NSSO, DIPP, state industrial development corporations, industry associations, state ministries

Table 2� States profiled on various parameters in a descending order based on Net State Domestic Product (NSDP)


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Maharashtra is the third-largest state in India in terms of area and the second-largest in terms of population. Mumbai, the financial, trade and commerce capital of India is the state’s capital city. • Per capital NSDP of the state is higher than the country average. • Tertiary sector contributed more than 60% to the state’s income in 2008. • There are 58 SEZs in the Maharashtra.

Maharashtra Industrial Development Corporation (MIDC) is primarily responsible for the devel-opment of industrial infrastructure in the state. The government of Maharashtra is also promot-ing the development of several Special Economic Zones (SEZs) across the state.

Gujarat is one of the fastest growing states and most industrially advanced states of India. Gandhinagar is the state capital. The state ranks amongst the top five with regards to per capita income.• Tertiary sector contributed almost 50% to the state’s income in 2008. • The state contributed 21% to India’s exports and 15% to its industrial production in 2009. • The state boasts of 83 product clusters, 202 industrial estates, 60 SEZs.

While the entire region boasts of high foreign tourist intake, Goa in particular has a flourishing tourism industry.

NORTHERN INDIANorthern India is pre-dominantly agrarian but the rapid GDP growth is changing the economic landscape. The region is progressively moving towards a manufacturing and services sector driven economy. Despite the recent uptake in investments in the region, economies of Jammu & Kashmir, Himachal Pradesh and Uttarakhand are primarily agrarian and are driven by tourism.

Uttar Pradesh is the highest earning state of the region. Despite growing its per capita NSDP at CAGR of 10% during 2001-09, the state ranks low in per capita NSDP on account of high popula-tion density. • Uttar Pradesh ranks among the top states in India in terms of agricultural production. • Tertiary services suchas IT, electronic services, printing and publishing contribute more than

50% to the state’s income in FY09. • The state has a robust industrial infrastructure, including 15 industrial areas, 12 specialized

parks, three growth centers and four industrial infrastructure development centers (IIDC). • The state has 18 notified and functional special economic zones (SEZ). The state has

proposed 40 IT/ITeS parks (apart from IT SEZs), two biotech zones and a knowledge park.

Rajasthan is the largest state (land area wise) in India. Jaipur is the state capital. • Tertiary sector contributed nearly 60% to its income in 2009. • The state has 5 operational SEZs and has in-principle approval for developing another 6 such

industrial clusters.

Bureau of Investment Promotion (BIP) and Rajasthan Industrial Development and Investment Corporation (RIICO) are responsible for promoting investments and developing industrial infra-structure in the state.

SOUTHERN INDIASouthern India is well developed in both manufacturing and services sectors. All the south-ern states also rank high as tourism destinations. Southern states are considered as India’s outsourcing hub. All the IT firms, BPO service providers and captive offshoring units have operations in all or either of the capital cities of these states. State governments of these states have been able to attract significant investments into the knowledge sector through proactive policies and incentives.

Maharashtra

Gujarat

Goa

RajasthanUttar Pradesh

MadhyaPradesh

Jammu andKashmir

Punjab

Haryana

Himachal Pradesh

Uttarakhand

Delhi


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Karnataka is the fifth most populous state in India economy and its economy is primarily driven by technology and energy sectors. Bangalore is the capital city and it is regarded as the silicon valley of India due to the significant presence of IT companies.• The tertiary sector witnessed the highest growth and contributed 55% to the state income in

2009 followed by the secondary sector (29%).• The State has 15 operational SEZs and 97 PPP projects.

Tamil Nadu is amongst the most industrialized states in the country and has the highest level of urbanization.• The tertiary sector registered a high growth of 11.9% and contributed 55.3% to the state’s

income.• The state has a total number of 53 SEZs and has a high concentration of automobiles and

auto components, chemicals and rubber manufactures.

Kerala is heavily dependent on tourism and is also a leading agricultural state. • The tertiary sector is the largest contributor to the state’s economy, and grew at 12.5% in

2008 • The State has 24 SEZs and has the highest literacy rate in the country.

Andhra Pradesh is the fourth largest state in the country in terms of land area. Hyderabad is the state capital. The state has emerged as a knowledge based state with key industries such as IT / ITeS, engineering, pharmaceuticals, biotechnology etc.• The state’s tertiary sector contributed 61% to the state’s income in 2008 followed by the

primary sector contributing 35%. • The state is well developed in terms of infrastructure. It has 37 public private partnership

projects for the roads sector. It is also the first state in the country to initiate a PPP Metro Rail project.

EASTERN INDIAThe eastern region has the highest number of states and is the least developed region in the country. Most of the states in the region rank below the per capita income benchmark. East-ern states are primarily agrarian with key focus on sectors such as tea, food processing / agro processing, bamboo, handloom and handicrafts, mines and minerals, and iron and steel. These states are also heavily dependent on tourism. However, due to inadequate infrastructure de-velopment and difficult terrain, tourism industry has not picked up to its true potential in these areas. This is especially true for the North-eastern states.

West Bengal provides an entry point in Southeast Asian markets and shares its international borders with countries like Bangladesh and Nepal. Kolkata (the capital city) is the fourth largest city in India and provides lower cost of operations for a business as compared to other metro-politan cities in the country.• The State’s tertiary sector contributed 61.2% to the GSDP followed by the primary sector at

26.8%.• In terms of infrastructure, West Bengal is well connected to the rest of the country. The state

also serves as a gateway to the seven North-eastern states.• It is a leading agricultural state with suitable climatic conditions for fisheries, horticulture

etc. It also has abundant natural resources of minerals.

While growth and development vary across states/regions, the overall themes underpinning the India growth story are unequivocally domestic consumption, infrastructure investments and outsourcing. We have profiled these growth themes and the various sectors that are influenced by these underlying drivers.

AndhraPradesh

Tamil Nadu

Kerala

Karnataka

Orissa

Bihar

Chattisgarh

Jharkhand

West Bengal

Sikkim

Assam

ArunachalPradesh

Nagaland

Manipur

MizoramTripura

Meghalaya


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3� GROWTH THEMESIn today’s business world, most large companies have a market monitoring process in place to deliver information about competitors, customers, and other market players to their employees. These systems are generally seen as useful, but the benefits are often difficult to pinpoint. To show how the maximum value can be seized from a market monitoring process, it is useful to start with analyzing the relation of market monitoring to strategic management.

3�1 Domestic consumption - Driving India’s overall growthIndia has one of the largest consumer bases in the world that is growing at a steady rate. A 2008 McKinsey study revealed that the Indian domestic consumption will increase four times by 2025 if the economic growth sustains at 7% to 8% over the long term. One of the key factors driving such high growth will be the rising income levels of the population.

It is estimated that household disposable income will grow at a CAGR of 5.3% during 2005-25. As incomes rise, the country will witness significant growth in the middle class. Middle class households are estimated to grow at a CAGR of 11% to reach 128 mn by 2025. They will consti-tute 46% of the total households in 2025, as compared to around 15% currently. This combina-tion of rising disposable income and growing middle class will increase the overall consumer spending.

The median age of India is 25 years, which is the lowest as compared to other developing countries such as Brazil (29 years) and China (34 years) and developed countries such as the US (37 years) and the UK (40 years). More than 30% of India’s population is within the 15 to 34 age bracket. The population of young people in India is rising at a faster rate than the total popula-tion of the country. The population of persons within the age bracket 15 to 34 is estimated to rise by a CAGR of 2.1% for the period 1971 to 2021, while total population for the same period is estimated to increase at a CAGR of 1.8%. By 2011 young India will constitute 36% of the total population and by 2021 this will continue to constitute an attractive 35%. India’s compelling demographics will ensure increasing consumption spends.

Exhibit 3� Burgeoning middle class

1995 2001 2009 1015 2025

128

61

28

46%

25%

13%

6%3%

No of middle-class households (million)

% of total households

Exhibit 4� Rising share of young population

Population (million)

Proportion of age group 15-34 years

1971 1981 1991 2001 2011 2021

36%

34%34%

32%

31%

35%

15001200

1000800

700550


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Signs of exploding consumer demand are already visible in certain sectors. Some of these sec-tors that will be directly impacted by the growing consumer base are briefly profiled below.

Table 3� Growing consumer base

Segment Key characteristics Opportunities & enablers Government initiatives

Education • Education and training market estimated at USD 40bn as of 2009 - CLSA

• More than 400 universities, 20,000 plus colleges and 7,000 technical institutes with around 15 mn students

• Potential education market (in the 5–24 age group) of around 446 mn

• Additional investment of USD 10-15 bn required till 2012 to meet GER targets

• Surging market for higher education

• Government target of 21% Gross Enrollment Ratio (GER) by 2017 as compared to the present 12.4%

• Ten fold increase in Plan outlays

Healthcare • Healthcare market size estimated at USD 40 bn as of FY2010

• Highly inadequate infrastructure - hospital beds available per 1,000 people is less than one

• Highly fragmented and disor-ganized sector

• Annual growth of 9.3% during the period of 2000 –09

• 14% of population is health insured

• Rising healthcare awareness, change in disease profile, in-creasing awareness and penetra-tion of health insurance

• Additional 1.75 mn beds by 2025 with an investment of USD 86 bn – E&Y

• Industry to nearly double in size by 2012 – lifestyle diseases to trigger the need for tertiary care hospitals

• Healthcare expenditure expected to increase by 15% p.a

• Private health insurance covers only 2% of India’s population

• National Rural Health Mission launched in 2005

• Increase plan outlay yoy – USD 4.8bn allotted in FY11

• Tax sops under Income Tax Act extended to development of health-care infrastructure

• Indirect taxes – custom and countervailing duties reduced on import of medical equipment

Telecommunication • Current market size pegged at ~USD30bn as of FY09

• Fastest growing mobile telecom markets in the world, with ~10-12 mn new subscrib-ers every month

• One of the lowest tariff mar-kets in the world

• Low overall teledensity of 40%• Subscriber base to touch 700

mn by 2012 – industry to touch USD45bn by 2012

• Creation of tower infrastructure and enabling environment for roll out of 3G services

• Opportunity for value-added services

• Telecom regulator facilitating increase in spectrum allocation and roll out of 3G services

• Tax sops on telecom tower creation

Banking • Banking sector’s total busi-ness is pegged at USD 1.4tr as of 2009- growing at CAGR of 23% during 2004-09

• Bank loan assets have grown three fold since 2004 while retaining high asset quality

• Public sector banks account for 72% of loan assets

• Proxy for India’s economic growth, latent demand and low penetration signifies growth opportunity

• Underbanked economy – less than 50% of people have banking accounts. Banking penetration – number of credit accounts is 9.4 per 1,000

• Credit growth expected at modest 15-20% - rural banking the next growth area

• Financial sector reforms and proactive regulations

• 74% of FDI is permitted in banking

Insurance • Life insurance industry pegged at USD41bn as of FY09 – growing at 30+% pa.

• Gross life premiums collected in FY10 was USD24 bn - surged four fold since 2003

• Gross non-life premium collected during FY10 was USD7.8 bn – growing at 13% p.a

• Growing risk awareness and rising income levels coupled with hitherto low insurance penetration highlights the growth opportunity

• Life market size to cross US-D60bn by 2013

• 26% FDI allowed – proposal to allow up to 49% under consideration

• Reforms for insurance IPO in progress

• Reforms for insurance M&A in progress


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Other industries or sectors that are directly beneficiary of the growing domestic demand include financial services (capital markets, asset management, NBFCs), media and entertainment, con-sumer durables and food processing.

Economic growth and changing demographics (such as rising incomes levels and urbanization), will define India as a consumer superpower and the effect will be felt on key consuming sectors. To summarise, In the light of rising disposable incomes and with more families entering the middle class bracket, we believe that Indian companies responsible for fulfilling the appetite of domestic consumption are bound to benefit.

The next growth theme that this paper highlights is the infrastructure creation taking place in the country. Infrastructure serves as the backbone for economic growth and development. In fact, it has a multiplier effect on the country’s GDP.

Table 3� Growing consumer base

Segment Key characteristics Opportunities & enablers Government initiatives

Organized retail • Current market size estimated at USD400bn – 5% of the total retail market

• 95% of retail sales are made in more than 15 mn tiny mom-and-pop stores

• Estimated to be 20% of retail market by 2015

• Increase in the disposable incomes, easier consumer credit and exposure to international lifestyles through satellite TV channels raising awareness

• Infrastructure development enabling efficient supply chain and logistics management

• Introduction of Value Added Tax (VAT) in place of multi-point sales tax and excise duties

• 100% FDI allowed in multi brand retail

Tourism and hospi-tality

• Tourism industry estimated at USD91.7bn in 2009 growing at CAGR of 16% (2004-09)

• Tourism industry expected triple in next ten years to reach USD266 bn

• Hospitality industry is projected to grow at a rate of 8.8% annually during 2007-16

• 100% FDI is permitted through the automatic route

• Tax sops for tourism infrastructure creation

Automobiles & auto components

• Automotive market size pegged at USD 38bn as of 2009

• World’s second largest two wheeler market and Asia’s third largest passenger vehicle market

• Only 3 of every 50 auto ancillary firms in India are in the organized sector

• India to become world’s seventh largest automobile market by 2016, and third largest by 2030

• Automotive industry turnover pegged to reach USD 150+ bn by 2016

• Global acceptance of India as a sourcing hub for auto components - availability of skilled manpower (0.4 mn engineering graduates every year), global best practices and export potential

• 100% FDI allowed in the automotive sector under the automatic route

• Automotive Mission Plan (2012) directing efforts for technology modernization and related infrastructure creation

• Promotion of automobile exports through focus market scheme (FMS)

• Implementation of global emission norms

• Weighted tax deduction up to 200% on in-house R&D activities

Source: Concerned ministries and industry associations


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3�2 Infrastructure – Government paving the way for private sector involvementIndia’s strong economic growth is putting tremendous pressure on its core infrastructure. The urgent need for improvement in basic infrastructure is visibly apparent in all major cities and rural centres in India as evidenced by its power shortages, inadequate quality of roads and capacity shortages in the ports sector. Sensing that significant funding is required to sustain economic growth, the Planning Commission had envisaged a planned outlay of USD 500bn into the infrastructure sector between 2007 and 2012. It has further raised the estimated investment outlay at USD 1.5 tr in the next planning period (2013-2018).

India’s infrastructure demand stems from past under-investment, and is being driven by the need for basic, or core assets such as roads, telecommunications networks and power genera-tion. Similarly, in addition to much needed capital, India recognizes the benefits that foreign private participants can bring, including enhanced competition, infusion of technology and management skills, and benchmarking against global best-practice. In an effort to encourage private participation in infrastructure investments, both countries have, developed regulatory frameworks that are conducive to foreign direct investment (FDI).

Growth opportunities in key infrastructure sub-sectors are profiled below.

Table 4� Growth opportunities in key infrastructure sub-sectors

Infrastructure Brief characteristics Constraints Government Initiatives

Power • Sector growth 6.3% in FY10• Total installed capacity is

159,398.49 mega watt (MW) and an estimated additional capacity of 78,700MW re-quired by 2015

• India’s power demand will increase to 315 GW by 2017 (with an investment of around USD 600 bn) - McKinsey

• energy shortage of 11% in FY09

• Electrification rate in India is 64.5%: 35.5% of the popula-tion still live without access to electricity

• Per capita energy consumption of 612KW as compared to the world average of approximately 2,490 KW

• Electricity loss during distribution is between 30 to 45% - the highest in the world

• USD 115.56 bn allocated (Eleventh Plan) to the power sector

• T&D of power has been privatized

• Income tax holiday for 10 years in the first 15 years of operation along with zero duty fees on capital goods imports

• Regulatory commissions have been constituted in 22 states

Urban Infrastructure • As per 2001 census, 27.8% of the population lived in urban areas

• 67% of the population growth will take place in the next 25 years in urban areas alone

• About 15% of the urbanites do not have access to safe drinking water

• About 50% of the urban population is not covered by sanitary facilities

• Jawaharlal Nehru Urban Renewal Mission focuses on urban infrastructure and basic services to the urban poor

• Encouragements in PPP• As of 2009, a total of USD

7 bn was allocated to urban infrastructure


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Table 4� Growth opportunities in key infrastructure sub-sectors

Infrastructure Brief characteristics Constraints Government Initiatives

Ports • 12 major ports and 187 minor ports

• More than 7,500km long coastline on Indian territorial waters

• Ports handled a total of 560.96MT of cargo in 2009- an increase of 5.74% y-o-y

• The cargo handled is projected to grow at 7.7% p.a till 2014 due to an increase in international trade

• Pressure on Indian ports due to high growth in international trade

• As of 2008-09, the capacity utilization was 92% putting pressure on port infrastructure

• Present TAT is 3.87 days compared to 10 hours in Hong Kong

• Under the Eleventh Plan, USD 19.6 bn to be invested in Ports

• NMDP*1 cleared 276 projects for private participation and capacity expansion

• In 2010-11, government will allocate USD 3.13 bn for 21 port expansion projects under PPP route

Roads • One of the largest road networks in the world - 3.34 mn km

• Roads account for 65% of freight traffic and 85% of passenger traffic

• Freight traffic grew at a CAGR of 6.9% and passenger traffic at a CAGR of 13.7% between 2000 and 2005

• The road freight industry will grow at a CAGR of 9.9% (2007 – 2012) with an expected po-tential investment of USD107 bn between 2009 and 2014

• 2% of National highways carry 40% of the total traffic.

• Only 50% are paved of which 20% are in good condition*2

• 40% of villages are not connected to all-weather roads network

• 40% of roads unsurfaced• Highways highly congested• India ranked 87th globally on

basis of quality of roads: Majority of roads are single lane in spite of increasing traffic and congestion

• Investment of USD50 bn planned up to 2012 for the NHDP*3 to develop more than 50,000 km of National Highways in seven phases

• Target 7,000 km per year (20 km per day) from 2009 to 2014

• Increased private sector contribution

• Build Operate and Transfer (BOT) to attract more private investors and generate steady cash flow through annuity / toll

Railways • 4th largest rail network in the world - 64,000 km

• Transports 18 mn passengers and 2 mn tonnes of freight daily

• Total revenue increased from USD1.50 bn to USD1.62 bn in April 2010, a growth of 9.7%

• Congestion due to growing traffic• Indian railways run mixed traffic

(freight + passenger on same tracks - leading to preference of passenger trains over cargo trains thereby leading to delays and congestion)

• Government increased funds allocation to USD3.49 bn for rail infrastructure

• Encouragement in Private participation

• Metro projects initiated in major cities, attracting foreign players as well

Air • Indian aviation industry the fastest growing in the world (CAGR 16%)

• Domestic airline passenger grew 22% - 25.7 mn passengers between January and June 2010

• A total of USD30 bn is the projected investment needed up to 2020, towards airport infrastructure*4

• 89 are operational airports• Over-utilization of existing

airports• Land acquisition issues:

Shortage of land restricts the expansion of current airports as well as new airports

• Traffic congestion: Air traffic congestion due to growing demand is resulting in delays and reduction in skilled manpower

• The Airports Authority of India (AAI) to spend USD 3.07 bn in the next five years (2010 – 2015) for modernization of metro/ non-metro airports

• 100% tax exemption on airport projects for a 10-year period

• Private sector participation in Greenfield airports & modernization

* 1 National Maritime Development Programme* 2 As per International Association of Safe Travel* 3 National Highway Development Programme* 4 As per Investment Commission of India

Source: Concerned ministries, industry associations, Infrastructure Commission


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By offering tax benefits and regulating the reform process, the Indian Government has actively encouraged private participation in infrastructure projects. More than 30% of the planned out-lays are expected to come from private participation. Governments’ Public Private Partnership (PPP) initiative coupled with opening of key sectors to private investment will act as drivers for increased private participation.

Industries or sectors that will benefit from of the massive infrastructure spending in India include:• Logistics and warehousing services• Construction and construction equipment• Travel and hospitality• Infrastructure financing

Infrastructure creation has its set of challenges in terms of issues in land acquisition, short-age of manpower and equipment, regulatory bottlenecks and lack of coordination between the centre and states. Despite these challenges private sector players have demonstrated the ability to exploit the significant opportunity.

The next big growth theme for India is outsourcing. Information technology (IT) outsourcing and business process outsourcing (BPO) has done for India what manufacturing outsourcing in the 1980s did for the Chinese economy.

3�3 Outsourcing – India’s service growth engineOutsourcing is a key growth industry for India. It has in fact come to be known as the global brand ambassador for India, accounting for significant value creation, employment, and revenue growth, in comparison to other sectors. Industry revenues are set to touch USD73.1 bn in FY10, growing from 1.2% in FY98 to 6.1% of national GDP in FY10, according to the National Associa-tion of Software and Services Companies (NASSCOM). Verticals serviced by the industry are var-ied, spearheaded in the early days by companies in the banking, financial services, insurance, and telecom sectors. The retail, healthcare, media and entertainment sectors (among others) have also started relying on India’s service capabilities in outsourcing. Client geographies are heavily tipped towards English speaking western markets.

The US is the main contributor to industry revenues (61%, according to NASSCOM), followed by the UK, and increasingly, continental Europe and Asia Pacific.

The outsourcing industry can be broadly categorised into Information technology services (IT), business process outsourcing (BPO) and knowledge process outsourcing (KPO), which is a sub set of the BPO industry. The major outsourcing export component is IT services and solutions, one of the first areas to be offshored to India. The key service areas for IT, BPO and KPO are outlined below:

Table 5� The key service areas

Segment Key service areas

IT Traditional services include application development and maintenance (ADM), testing services and infrastructure solutions. Key players have evolved over time to now offer remote infrastructure, consulting and system integration services. More recently, in line with global demand, providers are increasingly offering Service Oriented Architecture (SOA) and cloud computing solutions to client organisations.

BPO Human resources, finance and accounting, technical/customer support, sourcing and procurement, etc. high value/complex services offered by the largest BPOs today include business transformation and platform based solutions.

KPO Service areas include legal, publishing, research and analytics and certain ITeS services (such as e-learning), among others.

Source: ValueNotes research

The outsourcing industry now

contributes 26% to total Indi-

an exports (merchandise plus

services), employing an esti-

mated 2.3 mn people directly

in FY10.

- NASSCOM


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India features a highly conducive business environment for outsourcing services. As a relatively low cost destination, the savings potential of 40% - 70% (dependent on processes) is extremely lucrative for overseas clients, coupled with the availability of a high quality talent pool (FY10 alone saw the addition of 3.7 mn graduates). Infrastructure development, coupled with proac-tive government policies has positively impacted industry growth. With increasing growth and maturity of the vendor base, talent growth and quality improvements are constantly on the rise. Through its early entrant advantage, the Indian outsourcing industry has built up extensive domain expertise in several segments and verticals, enabling it to cater to high level global demand today.

To conclude, India is on a healthy growth path. Strong economic and demographic fundamen-tals, favourable government policies and sustainable growth drivers make India a compelling growth story.

4� CHALLENGES OF CONDUCTING MI IN INDIAAlthough India presents lucrative business opportunities, both foreign and domestic enter-prises have to face formidable challenges while setting up a business in the country. According to World Bank’s Doing Business 2010 Index, India ranks 133rd among 183 countries for ease of doing business. It has the lowest rank among the BRIC nations. Low ranking for parameters such as starting a business, dealing with construction permits, paying taxes, enforcing business, and closing a business have pulled the overall index down. Dealing with construction permits requires around 195 days and 37 procedures, while enforcing contracts requires 1420 days and 46 procedures.

However, on the brighter side, India falls in the top 50 ranks for protecting investors, and access to credit parameters. India ranks 51st among 139 countries surveyed for the Global Competitive-ness Index 2010-11 (published by the World Economic Forum) and scores higher than Brazil (58) and Russia (63). However, it still falls far behind China’s competitiveness, which is ranked 13. In the World Competitiveness report, while India is rated highly on certain parameters including fi-nancial market development, business sophistication and market size, it fares poorly on various other parameters including core infrastructure and labour market efficiency among others.

India is a complex market due to regional diversity, rural - urban divide, presence of a large unorganized market, and multiple legal and administrative systems. Further, lack of proper in-frastructure facilities, bureaucracy, and corruption accentuates the challenges of doing business in India. Companies that have understood the nuances of handling India’s complex business environment have been successful. For instance, auto giant Hyundai was sensitive about the fact that Indian consumers attached a lot of importance to lifetime ownership costs while purchas-ing a car. It thus kept the fuel efficiency high, priced spare parts reasonably and incorporated other changes to suit Indian consumers. As a result Hyundai has emerged as a leading player in India’s small car market. LG, another successful foreign player in India, invested in feeling the pulse of the Indian consumers. For instance, it introduced a 6kg washing machine instead of its 4.5kg model, keeping in mind the need of a large Indian household. Thus, market intelligence (MI) is very important for understanding the Indian business environment.

The major challenges encountered while doing MI in India are listed below:

4�1 Presence of large unorganized and grey marketsThe grey market in India is swamped with a wide range of products ranging from electronics to cosmetics. These markets take advantage of the price sensitivity of Indian consumers. In the grey market for electronics, customers can get up to 20% - 25% discounts on prices at which


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these products are available in legal outlets. It has been flourishing particularly well in the case of mobile handsets. A large number of mobile handsets are sold in the grey market, which include smuggled handsets, handsets brought by people travelling abroad and parallel import. Since transactions in grey markets are not reported, it is difficult to assess the number of goods sold or revenues generated from such markets.

There also exists a large unorganized sector, which employs about 90% of India’s labour force and contributes 60% to India’s GDP (according to National Sample Survey Organization (NSSO)). The unorganized sector consists of ‘mom and pop’ businesses, which exist across industries such as textiles, automotives, engineering goods, food products, and so on. These businesses may be formed as proprietorships or partnerships. The unorganized sector is char-acterized by high level of fragmentation, and activities do not get updated in the government records. It is thus challenging to assess the scale of operation and revenues of these busi-nesses. Also, activities such as market sizing and identification of suppliers and competitors become very difficult due to the fragmented nature of the market. For instance, assessing the market size of car batteries is a challenging task, as about 90% of the market is unorganized.

4�2 Complicated legal environment and multiple jurisdictionsIndia comprises of over 30 States and Union Territories. Doing business in India is similar to doing business in 30 different countries. Each state has a separate legislative assembly, and is divided into districts which are governed by municipal bodies. Some sectors, such as water, electricity, education, and liquor among others, fall under the state governments’ jurisdiction.

The country has a three-tier tax structure. The central or union government levies income tax, tax on capital transactions, sales tax, service tax, customs and excise duties, while state gov-ernments collect sales tax on intra-state sale of goods, tax on entertainment and professions, excise duties on manufacture of alcohol, stamp duties on transfer of property and land revenue. The municipal bodies charge users for public utilities like water supply, electricity and sewage among other, and levy property tax.

Consolidating data from each state to arrive at a national figure becomes a difficult task as each state follows different data reporting methods. Also, each state may have different regulatory and bureaucratic levels which need to be penetrated to access the required data. For instance, a factoring service company intending to enter India discovered that factoring was considered state level and there was no uniformity in rates of stamp duty. Thus, gathering the regulatory data from 30 states and further arriving at a pricing for the services was a challenge.

4�3 The rural urban divideAs one travels out from an Indian metropolitan city like Mumbai or Bangalore towards the coun-try side, not only does the landscape change, but a distinct change in the standard of living and infrastructural facilities is also visible. More than 80% of India’s population still resides in rural areas and there exists a wide gap in case of literacy and income levels.

Companies cannot consider the rural market to be an extension of the urban market. There is a wide difference in the infrastructural facilities, culture, level of industrialization, and consump-tion patterns. For instance, rural markets have a low penetration rate for electrical goods such as TV sets and refrigerators, primarily due to the lack of electricity supply. Also, rural popula-tion is highly dispersed, i.e. it is estimated that 90% of the rural population is concentrated in villages which have a population of only 2000 or less. Thus it is a challenging task to set up a distribution network for rural markets. Also, rural consumers, due to their limited purchasing power, are very price sensitive. Thus, products launched for the urban consumer may not match the requirements of the rural market.


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4�4 Regional DiversityDiversity in traditions, customs, cultures and languages provides a different flavour to each Indi-an state. Furthermore, there exist disparities in income, education, and level of industrialization and globalization, between states and also within each state. For instance, Hyderabad (located in the southern Indian state of Andhra Pradesh) has emerged as a hub for the global software industry. As a result the city has higher incomes, higher level of employment and industrializa-tion, access to quality education and infrastructural facilities. However, the rural areas of Andhra Pradesh such as Kurnool and Rayalseema have low level of income, education, employment rates. Levels of industrialization in states such as Bihar, Orissa and West Bengal are much lower than that in Tamil Nadu or Maharashtra.

A lot of groundwork needs to be done before entering the Indian market. The huge expanse, with each state having its own peculiarities, income disparities, use of multiple languages and lack of information, throw up challenges. New entrants to the market should keep in mind the fact that one business plan may not bear the same results across all states. Strategies need to be tailor-made according to each state.

4�5 Inadequate data collectionThe Central Statistical Organization (CSO) and the National Sample Survey Organization (NSSO) are some of the government authorized institutions for collecting data in India. However, the data collection infrastructure and machinery at these government bodies has proved inefficient, as data is not updated regularly, and in some cases not comprehensive. There are regulatory and quasi regulatory agencies, government departments and ministries and third party information aggregates that also provide various data points. However, even these agencies do not cover the data gaps. For instance, data on total farmland under wheat cultivation may not be accurate as information may not have been collected from remote rural areas. Also, critical information such as individual credit histories, income data for various cities, and housing statistics is not available in India.

Industry and trade association are also publish various industry statistics. However, it is only done by associations which are strong and active such as those for the telecom, automotive or IT industries. However, it is difficult to find statistics for industries where the associations are weak.

4�6 Lack of secondary informationAs a result of inadequate data collection, information from published sources is not available or often not sufficient to arrive at logical conclusions. Information from secondary sources is avail-able for mature markets such as telecommunications and IT. However, it is not easily available for niche or emerging markets. Also, if information is required at a more detailed level, such as product information or product performance, it is not available through secondary sources. For instance, when an international retail property fund was interested to understand the Indian retail market for high-end shopping mall space, data on regional income and spending specific to the target /catchment area was not available

Apart from inadequate official sources of information, informal sharing of information through social networking sites, blogs, discussion groups, and forums has not achieved popularity levels like those in the US or UK. In such as scenario, it becomes difficult for a new player to assess the opportunities existing in the market.

4�7 Ethical IssuesCompetitive intelligence is a new concept in India, and a number of unethical means are be-


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ing used to extract information. For instance, lot of ‘under the table’ dealings are required for extracting information from judicial or government officials. Industrial espionage, which is an unethical practice, is often used to gather information about competitors. In a scenario where unethical methods of data gathering are rampant, it becomes a challenge to gather information ethically.

5� RECOMMENDED SOLUTIONS

5�1 Significance of local partners It is essential to identify a local partner for familiarization with India’s diversity and on the ground reality. Also, local partners have a higher possibility of knowing the right points of contact for gathering information. Local partners are also helpful in overcoming language bar-riers. Since secondary information is not available, reliance on primary information is quite high. Local partners can conduct face-to-face interviews, and thus play a vital role for gathering information at a detailed level. They can also build a network of local contacts. These networks are important because in India, information is shared more readily if the other person is an acquaintance. Local partners can also reach out to the highly fragmented unorganized sector, and rural areas. Thus, new entrant can maintain a ground presence all over the country with the help of its local partners.

5�2 Primary research and due diligencePrimary research assumes high importance in India because of unavailability of information from secondary sources. Data available from official sources (trade associations and government bodies) does not take into account the unorganized market or presence of a grey market. Also, information gathered from secondary sources needs to be validated through primary research.

For instance, primary research was very useful in assessing the e-learning market in India. The sector is unexplored and undocumented, and every data point such as billing rates, margins, service providers, user segments, competitive positioning of service provider groups, nature of competition had to be un-earthed via extensive primary research.

In case a company wants to enter the Indian market through a local partner, it would be advis-able to hire experts in due diligence. It is helpful for identifying a supplier or dealer for the Indian market. These experts can be helpful in doing a background check of prospective part-ners, validating their financial credibility, scale of operations, litigation status and management structure. Insights into a company’s negative track record may be available only after conducting on-the-ground research. Due diligence fills gaps in data, which often occur while researching unorganized and under-documented sectors in India, and also prevents companies from enter-ing into fraudulent transactions.

5�3 Innovative estimation techniques and alternate sources of dataInformation from primary research may be available in bits and pieces. Thus, innovative estima-tion techniques have to be employed to obtain the required information. A small sample size can be researched and the results obtained can be extrapolated for the entire market. For instance, a company interested in launching a retail salon chain in India, wanted to first assess the oppor-tunities and risks associated with the Indian beauty salon market. The market in question was highly fragmented and under-documented. Thus, the research relied on extensive interviews with leading suppliers, distributors and owners of beauty salons. These interviews gave insights about the average revenues by size and location in the beauty salon industry.


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A competitor’s sales figures may not be readily available. In such as case it would be advisable to use alternate sources for obtaining data. Such sources could be production records from local excise departments, or the average volume being dispatched by transport carriers daily. Certain legislations also allow accessing information from government records. This route can be useful in gathering information about utilities such electricity billing rates, water and electricity me-ters, and excise duties. For instance, market shares of players in the liquor market in each state may not be easily available. Information about the local excise duties paid by the companies can be gathered to arrive at the volumes sold in each state. This can be used for deriving the revenue in each state and consequently the market shares.

5�4 Importance of strategic recommendationsApart from hiring experts in due diligence and competitive intelligence, it would be advisable to seek intervention from a consultant who has successfully guided other businesses in the Indian market. Consultants gather a lot of experience about the nuances and procedures existing in India. They are capable of offering valuable tips for in sourcing, outsourcing, contract negotia-tion, and vendor selection for a business. They can also offer guidance about the management styles suitable for Indian organizations and employees.

6� CASE STUDIES

Case example: Market sizing, Channel & communication strategy for power tools in IndiaIndustry: Industrial products – Power toolsGeographic scope: India nationwideMethods: Primary interviews, secondary research, market sizing and segmentation,customer intelligence, competitive intelligence, recommendations

NEEDA leading manufacturer of portable electric power tools wanted to understand details of market demand, which customer industries posed highest demand, and customer needs and drivers for purchase of products in various customer industries in India (e.g. construction, fabrication, woodworking, manufacturing, automotive, government services, etc.). The client was an existing player in the market and wanted to leverage insights to develop a stronger product portfolio, and a marketing communication and sales strategy.

APPROACHGIA suggested a two-phase approach

Phase 1:GIA used local consultants to conduct >75 interviews on-the-ground with suppliers/manufactur-ers, local and international manufacturers (competitors), distributors, and other value chain players to size the demand for portable electric power tools by highest opportunity product and customers segments. Data was cross-checked and analyzed in-house to form the basis of reporting.

Phase 2Through local consultants, GIA conducted 400+ interviews with power tool users, purchase deci-sion makers and influencers across the nation covering key customer industries. Research covered:9 key products in the client’s portfolio 15 key customer industries (top 3-5 industries for each products)


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About 10 local and foreign competitors

SOLUTION• For the total product market GIA established current demand (volume and value) by cus-

tomer segments and analyzed key market trends and drivers/inhibitors• Demand for each product was segmented by key customer industry and competitor share• Demand by each top customer industry was segmented by product type and competitor

share• For top customer groups, GIA conducted in-depth customer intelligence to understand in

detail key purchase drivers, communication channel, purchase process and decision mak-ers.

KEY BENEFITS• Quantitatively identified key product segments and customer industries with highest

growth potential in the next few years, and the most effective channels as well as communi-cation messages to reach end customers and improve brand awareness

• Client also gained an understanding of their market positioning and areas for improvement • Stronger local business expansion strategy.

Case example: Market opportunity assessment for mobile based wealth management solutions for High Net Worth Individual (HNWI) in IndiaIndustry: Media and Information technologyGeographic scope: India nationwideMethods: Primary interviews, secondary research, market sizing and segmentation,customer intelligence, gap analysis, deep-dive analysis, recommendations

NEEDA leading global provider of information services wanted to assess opportunities to develop and commercialize new mobile based wealth management solutions and information services for High Net Worth Individual (HNWI) investors in India.

Client also wanted to understand behavior of potential HNWI customers, their information needs and the value they would put on a mobile solution

APPROACHGIA conducted in-depth interviews with 15 HNWIs to develop an understanding of investment behaviors of HNWIs, their wealth management information, transaction and other needs, unmet needs/pain points, usage/perception around mobile and the value/cost associated with such a proposition.

Further GIA suggested a deep-dive study to formulate product development strategy including identification of the core functions, contents and proposition attributes that the HNWI’s need on the mobile platform as well as developing a business case and proposition.

SOLUTION• GIA developed an in-depth understanding of investment objectives, attitude towards risk

and information needs of potential customers through in-depth interviews with HNWIs across various cities in local language

• Identified current gaps in information needs, investment channels, willingness to pay, purchase drivers and inhibitors for mobile based solutions

• Analyzed the information, formed conclusions and verified key conclusions with selected HNWI interviewees


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KEY BENEFITS• Client gained a comprehensive understanding of needs and preferences of HNWI investors

in India as well as market opportunities for new mobile based solutions• Clear picture of opportunities and challenges supported by facts and opinions of potential

target customers• Client benefitted from a series of recommendations pertaining to product development

roadmap and a, channel strategy for the business

7� REFERENCES

http://www.mospi.gov.in/nsso.htm: Economic datahttp://censusindia.gov.in:2001: Demographic details http://indiabudget.nic.in:2009-10: Employment data, Government spending across sectorshttp://dipp.nic.in: Department of Industrial Policy and Promotion – FDI data http://rbi.org.in: The Reserve Bank Of India for NSDP, banking data, credit growth, IIP datahttp://irda.gov.in: Insurance industry datahttp://amfiindia.com: Mutual Funds industry datahttp://infrastructure.gov.in/: data on infrastructure sectorshttp://planningcommission.gov.inhttp://sezindia.nic.in/: SEZ related datahttp://www.education.nic.in/http://mohfw.nic.in/ http://morth.nic.in/http://shipping.nic.in/http://civilaviation.nic.in/http://www.indianrailways.gov.in/http://www.urbanindia.nic.in/ Urban development in Indiahttp://www.iea.org/textbase/papers/2007/fs_india.pdf Power statistics http://www.eia.doe.gov/cabs/India/Electricity.htmlhttp://www.trai.gov.in : Telecom datahttp://www.ipa.nic.in/: Port statisticshttp://www.nasscom.in/: Outsourcing dataState Industrial Development Corporation web portalsRespective state portalshttp://india.gov.in/: National portal of Indiahttp://www.ibef.org/ Development organizations including World Bank and Asian Development Bank for growth data https://www.cia.gov/library/publications/the-world-factbook/geos/in.htmlhttp://www.doingbusiness.org/~/media/fpdkm/doing%20business/documents/annual-reports/english/db10-fullreport.pdf: Ease of doing business in India reporthttp://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm: World Economic Forum report on competitiveness of business destinationshttp://www.transparency.org/: Global corruptions perceptions indexwww.msdwd.com/views/perspectives/files/THE_INFRASTRUCTURE%20OPPORTUNITY_JAN09.pdf


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South Korea

Mexico

Portugal

Russia

Singapore

South Africa

Tunisia

UK

USA East Coast

USA Florida

USA Midwest

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