1 / 25

The India Opportunity & Business Environment 2012: What it is? What are the Challenges? How to Get Involved R

The India Opportunity & Business Environment 2012: What it is? What are the Challenges? How to Get Involved Rana Sarkar President & CEO Canada-India Business Council Board of Trade of Metropolitan Montreal October 25, 2012. Overview. Who We Are The India Opportunity in Box

balin
Download Presentation

The India Opportunity & Business Environment 2012: What it is? What are the Challenges? How to Get Involved R

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The India Opportunity & Business Environment 2012: What it is? What are the Challenges? How to Get Involved Rana Sarkar President & CEO Canada-India Business Council Board of Trade of Metropolitan Montreal October 25, 2012

  2. Overview • Who We Are • The India Opportunity in Box • Market Challenges and Solutions • Common Mistakes to Avoid • Steps to Winning in India • New Reforms

  3. Founded in 1982 the Canada-India Business Council serves over 100 members in Canada and India. The C-IBC is Headquartered in Toronto with operations in Vancouver, New Delhi & Montreal.

  4. We’re the National Trade Promotion Organization Dedicated Exclusively to Building the Canada-India Trade Corridor • Convening Key Players Across Borders • Proprietary Research • Effective Advocacy & Policy Development • Network Thickening • Building Connectivity • Building Mindshare • Trade Facilitation & Innovation • Accelerate Bilateral Trade, Investment and Deal Flow • Institution-to-Institution Relationship & Network Building • Raise the “Mindshare” of India in Corporate Canada and Canada in India • Create Option Value for our members • Generate unexpected outcomes in future industries Mission How We Do It

  5. India Opportunity Drivers • Global Economic Re-alignment Makes India Inevitable for Canada • Relationships between BRICS that will be transformative - Triangles • 3rd Largest Economy by 2050 • Market Access • Bottom Billion Innovation • Demographics • Rich before Old • Urbanization • 250M moving to cities • Globalization & Googlization • Domestic Consumption • Entry of Bottom Billion

  6. “Asia is returning to its natural “half share” of the world economy” Dominic Barton , Global Managing Partner, McKinsey

  7. Global Wealth 2015

  8. Global GDP 1990 to 2015

  9. India will grow rich before it grows old….

  10. Indian aspiring middle classes are growth drivers Deprived: Less than $2,250 in annual income Aspirers: $2,250 to $5,000 Seekers (Middle Class): $5,000 to $12,500 Strivers (Middle Class): $12,500 to $25,000 Globals: > $25,000

  11. Urbanization & new cities of scale are also driving growth

  12. A quarter billon people are moving into cities in the next 18 years

  13. Anatomy of the Growth Story • Indian Reforms Started Almost 30 Years ago - Hour of Necessity • Accelerated in 1991 Liberalization of the License Raj and Re-opening to the world (on Indian Terms) • Gains were Consolidated and Sent over the Tipping Point in 2000 - Y2K Dividend - IT leads the way • Cross Party Consensus - Question is Pace Now

  14. Economic Crisis is Forcing Reform: Sept 2012 • Permit foreign investment of up to 49% in power trading exchanges. • Disinvestment (or privatization) of India’s government corporations has moved into a new progressive phase with a target of over $5 billion. • India's government has approved the Insurance Amendment Bill, which proposes raising the level of Foreign Investment allowed in the Insurance Sector to 49% (up from current 26%) • The cabinet also cleared up to 49% Foreign Investment in Pension Companies – a sector previously closed to foreign investment. • Relaxation of Restriction on Single Brand Retail (IKEA & WalMart) • Reducing Fuel Subsidies: It also announced a 14% rise in the price of diesel, which is heavily subsidised in India, and reduced the subsidy on cooking gas cylinders. • Civil Aviation: foreign carriers allowed to buy a 49% stake in Indian private airlines – opportunity to be part of India's remarkable growth in passenger traffic. • FDI in all broadcast-carriage services has been raised to 74% from 49% previously – could help fund India's digitization plan. Indian Farmers Fertiliser Cooperative (IFFCO) and La Coop fédérée announced a $1.2 Billion investment to establish a urea production nitrogen fertiliser plant in Bécancour. (octobre 2012) = new partnerships

  15. Growth Drivers • US$ 311 B in Reserves • Attracted over 100B in FI • P/E Deals of over 10B in 221 Transactions (ave. deal size up 19m-44m) • Stable Banking System • 25% Savings Rate • Bad Loans are 2% (vs 20% in China) • Domestic Driven Growth (Consumption is 64% of GDP vs 42% in China) • “Bottom Billion” Opportunities - Bringing 500m into the Consumptive Economy in 10 Years • Services and Capital Intensive Industries Lead Growth • 300M English Speakers by 2015 • Exports are only 13% of GDP (vs 40-130% in other Asia) • Only 20% of Exports are to the US

  16. Challenges to Growth - What Can Stop the Train? Why it’s Likely to Stay on the Rails Governance Education Poverty Amidst Urbanization Infrastructure Gap Adapting to Climate Change Regional Instability Black Swans Tipping Point in Growth Demographic Dividend China Example Attitude of New India Democratic Dividend “Syncretic Gradualism” / Diversity Management Talent

  17. What are the Government’s Key Challenges in India? Steps to Overcoming Them Brand Canada Confusion - Lack of Visibility Limited Focus / Little Knowledge / Limited Travel Overcoming our Federal System Differences in Cultural Styles Brand Canada Strategy - New Public Diplomacy – New Strategic Plan Senior Government / CEO Travel and Forums Start Where We are Globally Excellent Focus on Education Harnessing the Diaspora Dividend and our Weapons of Mass Attraction - Gen 1, 1.5 and beyond Capturing the Symbolic focus - Tactics Towards Mindshare - Using Events and Popular Culture

  18. Common Mistakes to Avoid for Business – more to come from subsequent presentations • Don’t Get Distracted by the 100,000 foot view • Not Doing Your Homework • Wrong Plan, People, Partners and (No) Patience • Not Getting Over There: Out of Sight / Out of Mind • Not Knowing Your Strengths • Unrealistic Time Horizons • Getting Overwhelmed

  19. Which Sectors Should We Focus On? Focus on Need & Expertise Energy & Resources Clean Tech Infrastructure Global Excellence Capability Agriculture Financial Services Automotive Life Sciences Mining

  20. What to Do: • Know Your Strengths • Pinpoint Your Targets • 4 Ps • Plan • Partners • People • Patience • Focus on the Needs of the Bottom Billion • Use the Networks - DFAIT, EDC, C-IBC, BT Metro Mtl., STEP etc. • Go there – Episodic to the Strategic

  21. Persistence is Key: But Smart Engagement Will Be Rewarded

  22. Innovation is the Real Reason We Should Be in India

More Related