INDIA : A Brief Understanding
Introducing a country with over 1.23 billion people
Second most populated country in the world and the largest democracy.
Hosts 640 districts, 5767 tehsils, 7933
towns and more than 600,000 villages
Divided into 28 states and 7
union territories
Diversity in Diversity
India speaks a 152 languages and 1652 mother
tongues , is also home to 6 major religions and
many more faiths
The 6rd largest economy in the world with a GDP of over 1.84 Trillion at
PPP
Between 1991-2013 the economy has grown close to 5x up from 310
billion
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
0
2
4
6
8
10
12
India GDP Growth Rate 1991-2012
% Growth
Drivers for growth
1. India is one of the youngest populations in the world with over
799 million (65%) under the age of 35 years
2. Literacy rate has been on the constant rise and presently
stands at 74%
Presently 210 million households
Total consuming households set to grow to65 million by 2015
3. Disposable income of consumer base on constant rise,
reaching an all time high in 2011
4. Rapid increase in the flow of FDI towards growth
sectors ; Infrastructure, Construction, Automobiles and Real Estate
Agriculture Manufacturing Services
58.9
10.3
32.827.4
39.8
16
27
57
Contribution to GDP by Industry
% GDP 1950 % GDP 1991 % GDP 2013
India has been moving from a primarily agrarian
economy since towards a manufacturing and service
industry
23%
Retail & Wholesale
15.7%
Agriculture
13.5%
RealEstate
10%
Banking& Insurance
9%
IT & ITES
Top Sectors by contribution to GDP - 2013
The top 5 sectors contribute to more than 70% of the
economies products
Industries in Focus
Transport Infrastructure : Roads & Rail
India has a very low per capita consumption of steel compared to
most developing nations, especially China. However with planned
investments in infrastructure and a growing constructions & real
estate market this scenario is poised to change
China India World Average
460
60
216.9
Per capita consumption of steel
Kgs
Heavy investments are being made by public and private
entities into improving the existing networks as well as
building more roads.
Golden Quadrilateral – 5846 kms of 4 lane highways connecting 4 metros
India currently has the second largest road
network in the world at 3.3 million kms
One of the worlds largest and comprehensive railroad
networks with 115,000 kms of rail tracks, connects
majority of cities and towns in India; facilitating
business and commute for millions of people daily.
Automobile Industry
6th largest manufacturing industry globally
17.3 million units sold domestically (2011-12)
Asia’s third largest exporter of passenger cars
2011 there were 3,965 factories producing automotive parts across the country
India’s automobile industry is set
to reach US$ 12 billion in 2014
Although the automobile market has shown a slight slowdown, there has been a positive growth y.o.y
There are positive signs for increased growth rates
Brazil Russia India China USA World
249293
14885
439
136.7
Automobile Market Overview
Cars/1000 people
Real Estate & Construction
India is expected to emerge as the
world’s third largest construction
market by 2020
To aggregate approximately US$ 380 billion
between 2012-16
Current FDI in Real Estate
(RE) at $4 Billion projected to
be at $25 Billion in 10 years
The Planning Commission of
India has budgeted an
investment of $320 billion in
the latest five year plan
Projected to become a
$1 Trillion construction
market by 2025
RE is a $180 Billion
industry growing at
CAGR of 11%
Fierce Competitive Framework
Across categories there are numerous players
looking to tap into the large consumer base in
India
Automobiles : 53 companies – multiple brands
Insurance : 14 companies
Media : Over 150 media companies
Real Estate : Over 100 Real Estate companies in
the organised sector
With multiplicity of choice, across
categories both in B2B & B2C ensuring the
market in India has shifted long ago from a
sellers market to a buyers market
While the pie itself is growing, there is fierce
competition across industries and sectors to
get a bigger share
Therefore Customer centricity will be the
fulcrum on which businesses need to be built
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