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Indian Economy Opportunities Unlimited SEPTEMBER 10, 2008, BUDAPEST

Indian Economy Opportunities Unlimited SEPTEMBER 10, 2008, BUDAPEST. India: Fastest Growing Free Market Democracy. 2. Sources: Times of India , , RBI , RBI , DIPP , Indian Budget , Rediff , The Economic Times. * Annualized data used to show comparison with 1990.

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Indian Economy Opportunities Unlimited SEPTEMBER 10, 2008, BUDAPEST

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  1. Indian Economy Opportunities Unlimited SEPTEMBER 10, 2008, BUDAPEST

  2. India: Fastest Growing Free Market Democracy 2 Sources: Times of India, , RBI, RBI, DIPP, Indian Budget, Rediff, The Economic Times * Annualized data used to show comparison with 1990

  3. India: Among the Top 15 Countries in terms of GDP at constant prices The Indian economy has witnessed unprecedented growth. Booming services and industry sectors are providing the required impetus to economic growth • Fastest GDP growth of 9.4 percent in 2006–07, since last 18 years (at constant prices) • India’s GDP has witnessed high growth and was the second fastest growing GDP after China in 2007-08 • The sound performance of each industry segment is leading to the overall robust performance of the Indian economy 27 percent Increase Contribution of Services - increased from 48 percent to 53 percent * RE - Revised Estimates Growth in sectors at Constant Prices (2007–08): Industry: 10.8% Services: 8.5% Agriculture: 4.5% Source: MOSPI Statistics, RBI

  4. India: Robust Economic Platform Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability In 2007-08, Forex reserves witnessed a growth of approximately 56 percent over 2006-07. India’s Forex reserves are in excess of external debt… Increased confidence of investors in Indian companies has led to a surge in cross border borrowing by corporate houses …the decreasing external debt to GDP ratio indicates that India has a sound economic platform Source: RBI Statistics

  5. India: Surging Trade (1/2) Quality and cost advantage are the two important parameters leveraged by the Indian producers to increasingly market products and services Services sector has been a major contributor to increased exports from India Exports in April 2008 amountedto USD 14.4 Billion increasing by 31.5 percent from April 2007 … Acceptance of Indian products along with the cost advantage has provided an edge to Indian companies Petroleum products are the major contributors towards India’s growing imports Product imports by India mainly include petroleum products and minerals Imports in April 2008 amountedto USD 24.2 Billion increasing by 36.6 percent from April 2007 … Source: Ministry of Finance (May 2008)

  6. India: Surging Trade (2/2) Exports of Top-Five Commodities (Apr-Feb 2007-08 *) * Data for April-Feb 2007-08 (Provisional) Imports of Top-Five Commodities (Apr-Feb 2007-08 *) * Provisional data Source: DGFT

  7. India: Attractive Investment Destination With improved performance on PE ratio and ROE, Indian markets have attracted large investments Electronic equipment, manufacturing and telecom have witnessed significant FDI inflow India is ranked second in AT Kearney’s FDI confidence index (2007) 56 percent Increase FDI forApril 2008 amounted to USD 3749 Million FDI inflow for the period 2007-08 witnessed a growth of 56 percent over the last year 140 percent Increase Large FII activity in India has led to an upsurge in the Sensex * FII growth momentum was restricted because of Sub Prime Crisis in 2007-08 Source: DIPP (October Report) , SEBI

  8. India: Vibrant Capital Market Sensex – The Bombay Stock Exchange index has risen 20 times from 1990s to reach 20,000 mark in November 2007. India is among the major destinations across the globe for inflow of US Dollar Sensex has risen 20 times in the period 1990-2007 Emergence of industry and confidence of local investors along with the FIIs has led to upsurge of the Sensex FIIs have infused large investments into the Indian stock market Increased local investors’ confidence Encouraging industry performance

  9. India: Vibrant Economy Driving M&A Activities …First two months of 2008 have already seen 92 M&A valued at approximately USD 6 Billion In 2007, the total value of M&A and PE deals was USD 70 billion… In 2007, there were a total of 676 M&A deals and 405 private equity deals… Private equity deal value increased to USD 19 billion … Total M&A deal value was close to USD 51 billion… • Growth Drivers: • Globalisation and increased competition • Concentration of companies to achieve economies of scale • Cash Reserves with corporates • Trends: • Cross-border deals are growing faster than domestic deals • Private Equity (PE) houses have funded projects as well as made a few acquisitions in India Source: Deal Tracker Grant Thornton, Economic Times, IBEF, RBI

  10. Tata Steel buys Corus Plc USD 12.1 billion Hindalco acquired Novelis Inc. USD 6 billion Essar Steel acquired Algoma Steel USD 1.58 billion Suzlon Energy Ltd. acquires REpower USD 1.6 billion Major M&A Deals Undertaken Abroad by India Inc. Tata buys Jaguar and Land Rover USD 2.3 billion

  11. Major M&A and Investments Announcements in India POSCO to invest in building steel manufacturing plants and facilities in India by 2016 USD 12 billion Vodafone buys Hutch USD 11 billion Plans to establish three manufacturing plants to produce photo-voltaic units USD 2 billion Plans to spend on its development operations in India over the next four years USD 1.7 billion

  12. Major M&A and Investments Announcements in India Plans investment in private equity in Indian markets USD 1 billion Plans investment in private equity, real estate, and private wealth management USD 1 billion Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14 percent stake USD 0.98 billion Mylan Laboratories acquired a majority stake in Matrix Laboratories USD 0.74 billion

  13. Major M&A and Investments Announcements in India Plansto invest in six private equity funds in Indian market USD 0.185 billion Plans expansion of network in India USD 4–5 billion Plans expansion of cement capacity in India Over USD 1 billion Source:The Economic Times 13

  14. Indian Companies Fuelling Future Expansions Plans to provide services in the Sri Lanka market USD 0.2 billion Plans to invest in the Uganda market USD 0.5 billion Plans to invest in its global expansion efforts Over USD 2 billion RIL is planning to invest in its recently acquired polyester manufacturing facility in North Carolina USD 0.215 billion 14 Source:International Business Times, The Financial Express, IBEF, SifyBroadband

  15. India: Pacing Ahead to Emerge as a Major Economy in the World 2008 Global Retail Development Index (GRDI) … India ranks second in the AT Kearney Global Retail Development Index (2008) Services sector continues to attract interest from major global players and large investments are being pumped into it AT Kearney has placed India as the most preferable destination for Services sector (2007)… India is expected to outperform its rivals in the BRIC, in terms of GDP growth rate, from 2015 onwards… Source: AT Kearney, BRIC Report

  16. Why India? – Quote Unquote “India has evolved into one of the world's leading technology centers“. “India is now truly a land of opportunity”. “I have never seen India so dynamic, vibrant and full of business opportunities”. Craig BarrettIntel Corporation John RedwoodEconomic Competitiveness Policy Group, UK By 2032, India will be among the three largest economies in the world. Peter Loescher President and Chief Executive Siemens “The Indian market has two core advantages - an increasing presence of multinationals and an upswing in the IT exports”. “We came to India for the costs, stayed for the quality and are now investing for innovation”. BRIC Report, Goldman Sachs “India is a developed country as far as intellectual capital is concerned”. “India is a very exciting market and the luxury car segment is growing exponentially here”. Travyn Rhall,ACNielsen - Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005 Mr Paul de Voijs Managing DirectorVolvo Car India Jack WelchGeneral Electric

  17. THANK YOU FOR INFORMATION ON INDIAN ECONOMY AND BUSINESS VISIT www.ibef.org OR WRITE TO ceo@ciionline.org

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