Opportunities Unlimited
India: Fastest Growing Free Market Democracy 2
India: Among the Top-15 Countries in terms of GDP at constant prices 3
The Indian economy has witnessed an unprecedented growth. Booming Indian services and
industry sector are providing the required impetus to the economic growth
Indias GDP
witnessed high
India's GDP: 2002-07 9.4%
growth and was the 8.4%
700
second fastest
8.5% 7.5%
growing GDP after 600 Fastest GDP growth of 9.4
China percent in 2006-07, since last 18
500
USD Billion
years
400
4% 631
300 590
484 534
200 424
Indian economy is
the 4th largest in 100
terms of PPP USD
4.1 trillion in 2006 0
2002-03 2003-04 2004-05 2005-06 2006-07
GDP at Constant Prices
Contribution of
The sound Services -
performance of each increased from
industry segment is 700 49 percent to
leading to the 55 percent
overall robust 600
performance of the 168
500 155
Indian economy Growth in sectors (2006-07):
USD Billion
0
1999-00 2002-03 2005-06 2006-07
Services Agriculture Industry
India: Robust Economic Platform 4
16
Increased
confidence of
13 the decreasing external debt to
investors in Indian
GDP ratio indicates that India has
companies have led
a sound economic platform
to a surge in cross
border borrowing by 10
the corporate 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
houses
India: Surging Exports 5
With improved performance on PE ratio and ROE, Indian markets have attracted
India is ranked
second in AT large investments
Kearney FDI
confidence index FDI Inflow - India: 2001-07
18,000
15,730
16,000
14,000
180 percent
USD Million
Telecom and 12,000
Increase
Electronics topped 10,000
Return on the Investments in India (2006 Q1)
the list of inward FDI 8,000
Market PE Ratio P/B Ratio RoE (%) 5,546
6,000 4,222 3,755
India 16.1 4.53 22 4,000 3,134 2,634
China 10.62 2.06 17 2,000
FDI inflow for the
0
period 2006-07 Indonesia 10.26 3.09 NA
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
witnessed a growth
Korea 9.85 1.84 16
of 180 percent over
the same period last Malaysia 13.21 1.82 16
year Net FII into India: 2001-07
Taiwan 12.17 2 11 12
Thailand 9.84 2.32 23 10.00 10.20
10 9.40
EM Asia 11.19 2.12 15
USD Billion
Mauritius has been 8 6.72
Latin America 9.35 2.46 18
the largest
contributor towards EM Europe 10.9 2.39 15 6
FDI into India..
4
1.80
2
0.60
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
India: Vibrant Capital Market 7
Sensex The Bombay stock exchange index has risen 15 times from 1990s to
India is among the reach 15,000 mark in July 2007
major destinations
across the globe for
inflow of US Dollar
i.e. FIIs 7/9/2007
Crossed
15,000
mark FIIs augmented
1/12/2007 support by infusing
16,000 Crossed 14,000 mark large investments
Sensex risen 15 in Indian stock
times in the period market
1990-2007 14,000
2/7/2006
12,000 Crossed 10,000 mark
10,000
INR
12/30/1999 Exorbitant
8,000 industry
Crossed 5,000 mark
Emergence of performance
industry and 6,000
confidence of local
investors along with 4,000
the FIIs has led to
increased movement 2,000
Increased local
of sensex investors
- confidence
7/1/1997 7/1/1998 7/1/1999 7/1/2000 7/1/2001 7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7/1/2007
India: Vibrant Economy Driving M&A Activities 8
USD USD
Growth Drivers: Number of Deals and Values SECTOR SECTOR
28.2 (Mn) (Mn)
30 900
Globalisation of
782 800 Automotive 518 Manufacturing 933
competition 25
Number of deals
700
Concentration of 18.3 Banking and Financial 1,375 Media 630
20 600
companies to
USD Billion
Aditya Birla Group increased its stake in Idea USD 0.98 billion
Cellular by acquiring 48.14-percent stake
2007 Global Retail Development Index (GRDI) 2007 Global Services Location Index
India has been 100
ranked superior to India 3.2 2.3 1.4
other major 80
countries by many China 2.9 2.3 1.4
prominent surveys
GRDI Score
India is expected to
outperform its rivals 4
in the BRIC, in terms
of GDP growth rates,
from 2015 2
onwards
0
2005-10 2010-15 2015-20 2020-25 2025-30 2030-35 2035-40 2040-45 2045-50
100
0
2002-03 2003-04 2004-05 2005-06 2006-07
India: Increasing Working Population 13
314
World 4,168
71
India 691
64
Africa 500
44
China 934
33
South East Asia 362
31
Latin America 359
17
Southern Asia 132
USA 200 10
Europe 497 0
Japan 85 -3
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.
Growth Expected in India 14
To sustain the GDP growth of more than 8 percent, India requires an investment of USD 1.5 trillion
in the next five years
2010
GDP USD 900 billion
GDP growth rate 9%
2008 Services contribution 60-65 %
GDP USD 750 billion FDI limit is expected to be 100
percent in major industry sectors
GDP growth rate 9.5% such as Telecom,
2006 Services contribution 60 % Semiconductors, Automobiles, etc.
GDP USD 590 billion FDI limit is expected to be close to Balance of Trade Should be
100 percent in major industry positive with increased level of
GDP growth rate 9 % sectors such as Telecom, exports as compared with imports
Services contribution 54 % Semiconductors, Automobiles, etc. Investment goal USD 370 billion
FDI limit not 100 percent in major Balance of Trade Should
industry sectors such as Telecom, increase with surging exports as
Semiconductors, Automobiles, etc. compared with imports
Balance of Trade USD (-)46.2 Investment goal USD 305 billion
billion
Investment goal USD 250 billion
Why India? Quote Unquote 15
largest economies in
the world.
Jack Welch
General Electric
16
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