Welcome to India ran

8/14/2019 Welcome to India ran

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An URGE to Invest in INDIAAn URGE to Invest in INDIA

Presented by :Sharanjeet Singh (50701517)


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What is the India story? What is the India story?


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1.03.5

6.08.0

Average annual GDP growth

0

2

4

6

8

10

1900-1950 1950-1980 1980-2002 2002-2006

(%)

2006-20080

20

40

60

80

100

1950 1980 2000 2010

(%)

17

5265

80

0

10

20

30

40

50

1980 2000 2010 (proj)

46

26

16

1% of the people have been crossing poverty line each year for 25 years

Equals ~ 200m

Poverty is declining(%)

0

100

200

300

400

500

1980 2000 2010

Middle class is exploding

9.0


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Advantage India

Rated among the mostfavourite investment

destinations (UNCTAD,JETRO, JBIC,

Deutsche Bank, EIU,etc.)

One of the lowest

cost destination

in the world

Largest English

speaking nation inthe world

One of the oldest

stock exchanges

in entire Asia

Superb bankingsystems and well

developed financialsystems.

Largest

Democracy

in the world

2nd largest poolof scientists and

engineers in the

World

HarmonizedIntellectual

property rightslaws

Operates under English common

law and basedon English style justice system

AdvantageIndia

Rated as the secondbest destination for

manufacturing

projects and the mostattractive investment

destination-I BM

Best technology

licensing regime

- UNCTADs

Global

Competitivenes

s Report, 2007

India has been

rated as the most

attractive

investment

destination for

offshoring


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India has among the highest

returns on foreigninvestment

- Dan Scheinman, Cisco System Inc. astold to Business Week, August 2005

We came to India for the costs,stayed for the quality and are

now investing for innovation.

A T KearneyFDI Confidence Index 2007

India is among the twomost attractive FDI

destinations in the world

Jack WelchGeneral Electric

India is a developedcountry as far as intellectual

capital is concerned.

US Department of Commerce

By 2032, India will be among thethree largest economies in the world

BRIC ReportGoldman Sachs, October 2006

Views


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Indias Competitive Advantage vis--vis Other Nations

India- Fact File

Source: World Competitiveness Yearbook 2007; Britannica Yearbook, CIA, World factbook, May 2007 ,BCG ; Literature search; E&Y analysis

India

PhilippinesMexicoIsrael

IrelandRussia

China

MalaysiaBrazilTurkey

Surplus

Shortfall

Projectedworkforcein 2020

People strength Productivity/quality Cost English language skills

Low High

Quantity and quality of manpower


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Allowed selectivelyup to 40%

Up to 51%under AutomaticRoute for

35 Priority Sectors

up to 74/51/50%in 111 Sectors under

Automatic Route100% in some sectors

Up to 100% under Automatic Route in

all sectors excepta small negative list

More sectors opened;Equity caps raised;Conditions relaxed;Foreign Exchange

Management

Pre 1991 1991 1997 2000 Post 2000


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Ban against using foreign brand name hasBan against using foreign brand name hasbeen lifted.been lifted.

Corporate tax for foreign companies reducedCorporate tax for foreign companies reducedto 41%.to 41%.

5 year tax holiday extended to5 year tax holiday extended toenterprises engaged in infrastructure.enterprises engaged in infrastructure.

100% FDI for biotech, titanium mining ore.100% FDI for biotech, titanium mining ore.

Recent policychanges:


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Booming SectorsBoomin g Sectors

- BIOTECHNOLOGY- BIOTECHNOLOGY- POWER- POWER

- TELECOMMUNICATION- TELECOMMUNICATION- BANKING- BANKING


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The Biotech industryThe Biotech industryis projected to growis projected to growat a CAGR of 39%at a CAGR of 39%

OpportunitiesOpportunities

The Indian PharmaceuticalThe Indian Pharmaceuticalindustry (including exports)industry (including exports)is expected to growis expected to growat 23% p.a. till 2010at 23% p.a. till 2010

The domestic market isThe domestic market isexpected to double inexpected to double inthe next 5 years to over the next 5 years to over $10 billion$10 billion

The Biotech industryThe Biotech industryfor fresh investmentfor fresh investment

in 5-7 yrs US$ 2bnin 5-7 yrs US$ 2bn


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POLICY POLICY

OUTLOOK OUTLOOK


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Telecommunication

OUTLOOK OUTLOOK


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POWER SECTORPOWER SECTOR

PRESENT SCENARIOPRESENT SCENARIO

India currently has aroundIndia currently has around145,000 MW145,000 MW

production capacityproduction capacity(March 2008).(March 2008).

The Planning Commission hasThe Planning Commission hasestimated that aroundestimated that around

78,000 MW of78,000 MW ofnew power facilities willnew power facilities will

be set up over thebe set up over thenext 5 years.next 5 years.

This would requireThis would requireInvestment of aroundInvestment of around

US$ 73 billion.US$ 73 billion.


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India has the fifth largest electricity generation capacity in the worldIndia has the fifth largest electricity generation capacity in the world

Opportunities in Generation for:Opportunities in Generation for: Ultra Mega Power Plants (UMPP) 6 projects of 4000 MW eachUltra Mega Power Plants (UMPP) 6 projects of 4000 MW each

Coal based plants at pithead or coastal locations (imported coal)Coal based plants at pithead or coastal locations (imported coal)

Natural Gas/CNG based turbines at load centers or near gasNatural Gas/CNG based turbines at load centers or near gas

terminalsterminals

Hydel power potential of 150,000 MW is untapped as assessed by theHydel power potential of 150,000 MW is untapped as assessed by theGovernment of IndiaGovernment of India

Renovation, modernization, up-rating and life extension of oldRenovation, modernization, up-rating and life extension of oldthermal and hydro power plantsthermal and hydro power plants

Private sector participation possible through JV and 100% equityPrivate sector participation possible through JV and 100% equitymodemode

Total investment opportunity of about US$ 200 billion over a fiveTotal investment opportunity of about US$ 200 billion over a fiveyear horizonyear horizon

Total estimated invest opportunitiesOf US $150 billion till 2012.


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India

Australia

Malaysia

ChinaKorea

Taiwan

Singapore

PhilippinesJapan

18

12

11.8

11.5

11.5

7

7.5

7.8

10.5

Source jp Morgan

India has higher return on equity than other countries in Asia

Return on equity


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+Time to securefirst-mover

advantage in IndiaRelaxing FDI

norms

ResplendentMarket

Booming

Consumerism

VibrantEconomy

Is this the right time? It is


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Explore.. Envision.. Invest

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