India – Land of Opportunities

1. Second Largest Emerging Market India – Land of Opportunities Fourth largest Economy (PPP) - A safe place to do business Largest democracy – political stability & consensus on reforms Largest reservoir of skilled/semi-skilled manpower Liberal & transparent investment policies Long-term sustainable Competitive advantage - High growth rate economy Highest returns on investment; India 19.33%, China 14.25%, Thailand 13.3%

2. Brand India • R&D base for 100 of Fortune 500 companies; • GE’s largest R&D Center outside US; • Large pool of World class scientific and technical manpower; • Indian Institutes of Technology; • Indian Institutes of Management. • S&T policy aims at R&D investments of 2% of GDP by 2007 • Among the only three Asian countries with super computing competence • Strong base for manufacturing; • Bharat Forge world’s largest forging facility • Most major MNC’s like Volvo,GM,GE, Chrysler, Ford,Toyota, Unilever, Cliariant, Cummins, Delphi sourcing high quality components and hardware from India • Hyundai Motors India – Global base for manufacturing small cars; • Indica(100% indigenous car) being exported to Europe as Rover City. • Hero Honda world’s largest manufacturer of motorbikes • Precision Automation & Robotics India (PARI) - 20 Fortune 500 clients

3. India Economic Advantage • The economy is expected to grow by 6.75 - 7 % during 2005-06 and inflation is likely to be around 5-5.5 %. • Agriculture to grow by 3.5 %, industry by 7 and services by 8.5 % next fiscal…Crisil. • India has one of the largest Telecom Networks in Asia with approx. 1,23,000 route kilometers of optic fibre cable network. • Forex Reserves are as high as $120billion, Exports are rising @ 20%, Industrial Production is rising @7-8% • India ranked 10th among 29 emerging markets in the latest country… Economic Intelligence Unit (EIU) • Full signatory to WTO and committed to integrate completely with the world market by year 2005.

4. Infrastructure Development • US$ 12 billion Highways Development Programme; • Over 13,000 Kms of Highways being developed. • US$ 22 billion ‘Sagar Mala’ programme to develop ports and shipping sector • Modernization of Airports at New Delhi & Mumbai. • World’s Fastest growing telecom market with unified licensing regime and world class international and domestic connectivity; • The Electricity Act, 2003 enables captive generation and trading in electricity;

5. India: FDI Outlook • Rated as the best BPO destination; AT KEARNEY • Best technology licensing regime - UNCTAD’s Global Competitiveness Report, 2003; • Rated among the most favourite investment destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.) • Major destination for foreign venture capital funds (Far Eastern Economic Review) • Sixth most attractive investment destination – ATKEARNEY Business Confidence Index, 2003 • Also among the top 10 Tourist Destinations.

6. Skilled knowledge Workforce • India’s competitive edge is its manpower • Over 380 universities (11200 colleges) • 1500 research institutions • Over 200,000 engineering graduates • Over 300,000 post graduates from non-engineering colleges • 2,100,000 other graduates • Around 9,000 PhDs • Knowledge workers in software and service industry increased from 6,800 in 1985-86 to 650,000 in 2003

7. BPO India Advantage • Highly skilled, English-speaking workforce. • Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts. • The cost of telecom and network infrastructure getting equivalent to rest of the world. • Dedicated workforce aiming at making a long-term career in the field. • Round-the-clock advantage for Western companies due to the huge time difference. • Lower response time with efficient and effective service. • Developed legal system.

8. Country USP Limitation Philippines Understands the US market; voice work; low attrition More expensive than India; small talent pool Canada, Australia Understands the US market; high-end skills High costs South Africa Time zone similar to Europe; 25% cost saving, good for niche work Skill shortage China Low costs Quality of English not good Russia Technology skills Poor infrastructure; corruption; language Czech Rep, Hungary European language skills Small talent pool; high costs Mexico Immediate neighbor of US, 30% cheaper than US; Spanish skills Good only for low-end jobs Competition … Lagging Behind

9. Competitive Entrepreneurship • Prevalence of foreign technology licensing – Rank 1 • Availability of scientist and engineers – Rank 2 • Quality of management schools – Rank 9 • Firm level innovation – Rank 12 • Firm level technology absorption – Rank 16 (Source: Global Competitiveness Report, 2002-03) • India amongst the leading entrepreneurial hotbeds globally (Red Herring Clubs India with Israel)

10. JACK WELCH, GE JOHN CHAMBERS, CISCO MICHAEL DELL, DELL BILL GATES, MICROSOFT Global Business Leaders - Bullish On India’s Potential “We are expanding our presence in India to take advantage of the ample R&D talent available” “India is a developed country as far as intellectual capital is concerned” “India is handling the most sophisticated projects in the world..I am impressed with the quality of work” “India can be a major part of Dell’s operations and we are looking to capitalize on India’s human capital”