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The Indian scenarioThe Indian scenario
ByByPrem BehlPrem Behl
ChairmanChairman
Exhibitions India GroupExhibitions India Group
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1.1. The Indian Economy: An OverviewThe Indian Economy: An Overview
2.2. History of the Indian exhibitions industryHistory of the Indian exhibitions industry
3.3. Exhibitions Venues in IndiaExhibitions Venues in India
4.4. Doing business in IndiaDoing business in India
IndexIndex
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The Indian Economy: An OverviewThe Indian Economy: An Overview1.1.
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The Indian Economy: An OverviewThe Indian Economy: An Overview
20
13 7
36
70
1950s 1960s 1970s 1980s 1990s
The fastest rise in incomes.The fastest rise in incomes.
% rise in per capita income
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The Indian Economy: An OverviewThe Indian Economy: An Overview
The biggest drop in inflationThe biggest drop in inflation
% decrease in inflation
9.5
9.1
7.4
4
1970s 1980s 1990s 2000-4
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The Indian Economy: An OverviewThe Indian Economy: An Overview
Have prompted a spending boomHave prompted a spending boom
% growth in consumption expenditure
5.9
9.5
6.5
11.4
2000-01 2001-02 2002-03 2003-04
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The Indian Economy: An OverviewThe Indian Economy: An Overview
as well as the highest level of savingsas well as the highest level of savings
13.8
19.321.9
26.6
1980-81 1990-91 2000-01 2003-04
Household savings as % of GDP
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The Indian Economy: An OverviewThe Indian Economy: An Overview
The economy is riding highThe economy is riding high
% annual growth in GDP
4.4
8.5
6.9 7*
2002-03 2003-04 2004-05 2005-06
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India is theIndia is the 44thth largestlargesteconomy in the world as measured byeconomy in the world as measured by
purchasing powerpurchasing power
Between 1980 and 2003, Indias economy grew at an averageBetween 1980 and 2003, Indias economy grew at an average
rate ofrate of5.7%5.7%
During the same period, Indias real income per headDuring the same period, Indias real income per headgrew bygrew by
125%125%
Dr. Manmohan Singh, Finance Minister in 1991 and architect ofDr. Manmohan Singh, Finance Minister in 1991 and architect of
IndiasIndias economic reformseconomic reforms, is the current Prime Minister, is the current Prime Minister
The Indian Economy: An OverviewThe Indian Economy: An Overview
Additional economic indicators:Additional economic indicators:
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India has aIndia has a consumerconsumerbasebase of 1.2 billion people, andof 1.2 billion people, and
The youngest population of the world henceThe youngest population of the world hencesustainable,sustainable, longlong
termterm growth is assuredgrowth is assured
Modern (organised) retail converging with theModern (organised) retail converging with the consumption boomconsumption boom
will open upwill open up manymany opportunitiesopportunities for small and mid-size consumerfor small and mid-size consumer
companiescompanies
With upper income and rich classes growing rapidly and deprivedWith upper income and rich classes growing rapidly and deprived
classes actually falling, Indiasclasses actually falling, Indias incomeincome demographicsdemographics will actuallywill actually
bebe unrecognizableunrecognizable by the end of the decadeby the end of the decade
The Indian Economy: An OverviewThe Indian Economy: An Overview
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Home ownership is on the rise withHome ownership is on the rise with 55 MillionMillion homes added every year,homes added every year,
approximatelyapproximately 1.51.5 MillionMillion new homes added in urban areasnew homes added in urban areas
Mobile telephone subscriber base has grown from 0.3 Million in 1996Mobile telephone subscriber base has grown from 0.3 Million in 1996
to over 55 Million currently; expected to grow toto over 55 Million currently; expected to grow to 200 Million200 Million by 2008by 2008
13 Million credit card holders currently & growing at13 Million credit card holders currently & growing at40%40% p.a.p.a.
Passenger car sales of USD 5 Billion in 2004,Passenger car sales of USD 5 Billion in 2004, more thanmore than twicetwice thethe
level of sales five years earlierlevel of sales five years earlier
The Indian Economy: An OverviewThe Indian Economy: An Overview
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The Indian Economy: An OverviewThe Indian Economy: An Overview
0
10
20
30
40
50
60
70
Percent
0
1
2
3
4
5
US
$
Thousand
Consumption share of GDP Population Dependency RatioPer Capital Consumption
Population Dependency Ratio = Ratio of Pop aged 65 years or over to the population aged 15-64 (Source: Morgan Stanley)
Growth at the margin
will close the gap
between Indias per
capita consumption
and Chinas
Private consumption currently accounts for 64% of Indian GDP Private consumption currently accounts for 64% of Indian GDP higher than Europe(58%), Japan (55%) and China (42%)higher than Europe(58%), Japan (55%) and China (42%)
Emerging consumerism from one of the worldsEmerging consumerism from one of the worlds youngest populationyoungest population
China India
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The Indian Economy: An OverviewThe Indian Economy: An Overview
36
30
37 3839 39
44 44
USA China Russia UK
24
30
35
40
45
50
Medianagein
years
24
India
31
2000 2025
Indians are Younger than the WorldIndians are Younger than the World
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The Indian Economy: An OverviewThe Indian Economy: An Overview
India in 2050India in 2050
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,00045,000
50,000
China US In
diaJapan
Brazil
Russia UK
Germ
any
Fran
ce Italy
US2
003
$
billions
0
1
2
3
4
5
6
7
8
2005-10 2015-20 2025-30 2035-40 2045-50
5-Ye
arPeriodAveragePercentPer
Annum
Brazil
China
India
Russia
India will be the 3rd largest economy. ..with the highest growth rate of BRICs
BRICs = Brazil, Russia, India, China
Source: Goldman Sachs, Dreaming with the BRICs
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The Indian Economy: An OverviewThe Indian Economy: An Overview
Analysts View of the Indian EconomyAnalysts View of the Indian Economy
India is on the cusp ofsomething big.[I] am as enthusiastic about India
as I was about China in the late 1990s. Whatexcitesme mostis the
potential for an increasinglypowerfulinternal consumption dynamic the
missing link in most development models.
Stephen S. Roach, Chief Economist, Morgan Stanley Equity Research Global,
October 31, 2005
A dynamic and open India would have an important impact on the world
economy. If India continues to embrace globalization and reform, Indian
imports could increasingly operate as a driver of global growth as it is one
of a handful of economies forecast to have agrowing working-age
population over the next 40 years.
IMF, World Economic Outlook, September 2005
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History of the Indian exhibitions industryHistory of the Indian exhibitions industry2.2.
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History of the Indian exhibitions industryHistory of the Indian exhibitions industry
Soon after independence, in the lateSoon after independence, in the late
1940s, the Government set up the1940s, the Government set up the
Directorate of Exhibitions under theDirectorate of Exhibitions under the
Ministry of CommerceMinistry of Commerce
An exhibition ground in New DelhiAn exhibition ground in New Delhi
was developed to host the Railwayswas developed to host the Railways
exhibition in 1952 to mark theexhibition in 1952 to mark thecentenary of railways in Indiacentenary of railways in India
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History of the Indian exhibitions industryHistory of the Indian exhibitions industry
19701970
The Trade Development Authority (TDA) was set up in 1970 underThe Trade Development Authority (TDA) was set up in 1970 under
the Ministry of Commercethe Ministry of Commerce
19721972 The fair ground was christenedThe fair ground was christened
Pragati MaidanPragati Maidan
Pragati Maidan hosted Asia72:Pragati Maidan hosted Asia72:
third Asian International Trade Fairthird Asian International Trade Faircoinciding with Indias Silver Jubileecoinciding with Indias Silver Jubilee
Year of IndependenceYear of Independence
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History of the Indian exhibitions industryHistory of the Indian exhibitions industry
19771977
The Trade Fair Authority of India (TFAI) is formed by an Act ofThe Trade Fair Authority of India (TFAI) is formed by an Act of
Parliament with the aim of organising trade showsParliament with the aim of organising trade shows
19921992
The India Trade Promotion Organisation (ITPO) is formed byThe India Trade Promotion Organisation (ITPO) is formed by
merging the Trade Development Authority (TDA) with the Trademerging the Trade Development Authority (TDA) with the Trade
Fair Authority of India (TFAI)Fair Authority of India (TFAI)
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Exhibitions VenuesExhibitions Venues
in Indiain India
Exhibition VenuesInternational Airports
Exhibition VenuesExhibition Venues
International AirportsInternational Airports
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Exhibitions Venues in IndiaExhibitions Venues in India
New DelhiNew Delhi
NameName AreaArea(in sqm.)(in sqm.)
Outdoor AreaOutdoor Area (in(insqm.)sqm.)
Additional facilitiesAdditional facilities
Pragati MaidanPragati Maidan
Owned and managed by the IndianOwned and managed by the IndianTrade Promotion Organisation (ITPO)Trade Promotion Organisation (ITPO)
60,00060,000 10,00010,000 2 Conference Halls2 Conference Halls
(capacity 200 each), 4(capacity 200 each), 4
theaterstheaters
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Exhibitions Venues in IndiaExhibitions Venues in India
New DelhiNew Delhi
Pragati Maidan is a massive venue of 149 acres in the heart of IndiasPragati Maidan is a massive venue of 149 acres in the heart of Indias
capital citycapital city
The venues 16 exhibition halls and other facilities are ageing and farThe venues 16 exhibition halls and other facilities are ageing and far
from being world classfrom being world class
The ITPO has proposed to completely modernize and revamp theThe ITPO has proposed to completely modernize and revamp the
venue by 2010 (subject to approval by the Commerce Ministry)venue by 2010 (subject to approval by the Commerce Ministry)
http://www.epch.com/ihgf/files/picture_gallery.htmlhttp://www.epch.com/ihgf/files/picture_gallery.htmlhttp://www.epch.com/ihgf/files/picture_gallery.html -
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Exhibitions Venues in IndiaExhibitions Venues in India
Greater NoidaGreater Noida
NameName AreaArea (in(insqm.)sqm.)
Additional facilitiesAdditional facilities
India Expo CenterIndia Expo Center
Owned by the Export PromotionOwned by the Export Promotion
Council for Handicrafts (EPCH)Council for Handicrafts (EPCH)
7,5007,500 11stst phase of construction complete.phase of construction complete.
Another 20,000 sqm., as well as a 5Another 20,000 sqm., as well as a 5
star hotel, to be built by 2008star hotel, to be built by 2008
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Exhibitions Venues in IndiaExhibitions Venues in India
MumbaiMumbaiNameName AreaArea
(in sqm.)(in sqm.)
Outdoor AreaOutdoor Area(in sqm.)(in sqm.)
Additional facilitiesAdditional facilities
Expo CenterExpo Center OwnedOwned
by the World Trade Centerby the World Trade Center2,5002,500 n/an/a n/an/a
Bandra Kurla ComplexBandra Kurla ComplexOwned by the Maharashtra Dev. Co.Owned by the Maharashtra Dev. Co.
n/an/a 50,00050,000 Organisers typically set up airOrganisers typically set up airconditioned hangarsconditioned hangars
Bombay Exhibition CenterBombay Exhibition Center
Owned by Nesco Ltd.Owned by Nesco Ltd.
60,00060,000 n/an/a Non air-conditioned hallsNon air-conditioned halls
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Exhibitions Venues in IndiaExhibitions Venues in India
ChennaiChennai
NameName AreaArea(in sqm.)(in sqm.)
Outdoor AreaOutdoor Area(in sqm.)(in sqm.)
Additional facilitiesAdditional facilities
Chennai Trade CenterChennai Trade Center
Owned by the Indian TradeOwned by the Indian TradePromotion Organisation (ITPO)Promotion Organisation (ITPO)
and the Govt. of Tamil Naduand the Govt. of Tamil Nadu
6,8006,800 3,0003,000 Opened in 2001,Opened in 2001,
11stst
phase completephase completeConference Room (CapacityConference Room (Capacity
200 people) 200 people)
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Exhibitions Venues in IndiaExhibitions Venues in India
BangaloreBangalore
NameName AreaArea(in sqm.)(in sqm.)
Outdoor AreaOutdoor Area (in(insqm.)sqm.)
Additional facilitiesAdditional facilities
KTPO Exhibition ComplexKTPO Exhibition Complex
Owned by the ITPO and theOwned by the ITPO and theKarnataka Industrial AreaKarnataka Industrial Area
Development Board (KIADB)Development Board (KIADB)
5,5005,500 40004000 Opened in 2004,Opened in 2004,
11stst
phase completephase completeConference Room (capacityConference Room (capacity
200) 200)
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Exhibitions Venues in IndiaExhibitions Venues in India
HyderabadHyderabad
NameName AreaArea(in sqm.)(in sqm.)
Outdoor AreaOutdoor Area (in(insqm.)sqm.)
Additional facilitiesAdditional facilities
Hitex Exhibition CenterHitex Exhibition Center
Jointly owned by the Govt. of AndhraJointly owned by the Govt. of AndhraPradesh and the private sectorPradesh and the private sector
10,00010,000 30,00030,000 Opened in 2003Opened in 2003
11stst
phase completephase complete
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Opportunities AplentyOpportunities Aplenty
TheThe needneedfor quality trade shows and venues is apparentfor quality trade shows and venues is apparent
If India and China are Asias emerging giants, then India is fallingIf India and China are Asias emerging giants, then India is falling
terribly behindterribly behindin its trade fair developmentin its trade fair development
China has approximatelyChina has approximately 150 exhibition centers150 exhibition centers and 3 millionand 3 million
square meters of exhibition spacesquare meters of exhibition space
India, according to our calculations, hasIndia, according to our calculations, has 6 dedicated exhibition6 dedicated exhibition
venues and 90,000 square meters of indoor exhibition space thisvenues and 90,000 square meters of indoor exhibition space this
is estimated to increase by 40% in 3 yearsis estimated to increase by 40% in 3 years
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Doing business in IndiaDoing business in India4.4.
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Doing business in IndiaDoing business in India
There exists a myth that doing business in India is difficult.There exists a myth that doing business in India is difficult.
With theWith the right Indian partnersright Indian partners, this is not at all the case, this is not at all the case
United Nations World Investment Report 2005United Nations World Investment Report 2005
A TNC (transnational corporations) survey has ranked IndiaA TNC (transnational corporations) survey has ranked India
as theas the third mostthird mostattractive investment destinationattractive investment destination
In the same report, a UN expert opinion group ranked India asIn the same report, a UN expert opinion group ranked India asthethesecond mostsecond mostattractive investment destinationattractive investment destination
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Doing business in IndiaDoing business in India
Indian Trade Promotion OrganisationIndian Trade Promotion Organisation(ITPO)(ITPO)
In order to organise a trade show in India, an organiser must gainIn order to organise a trade show in India, an organiser must gain
approval from the ITPOapproval from the ITPO
For leading trade show organisers, this is aFor leading trade show organisers, this is astraight forwardstraight forwardandand
simple processsimple process
This approval consists of a Customs Notification allowing theThis approval consists of a Customs Notification allowing the
duty free temporaryduty free temporary import of goods to be displayedimport of goods to be displayed
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Doing business in IndiaDoing business in India
CustomsCustoms
In line with international practices, there exists a wellIn line with international practices, there exists a well
established systemestablished system allowing foreign participants the facility ofallowing foreign participants the facility of
duty free temporary imports for exhibitionsduty free temporary imports for exhibitions
India is a signatory to the ATA convention.India is a signatory to the ATA convention.ATA CarnetsATA Carnets areare
accepted at all major exhibition destinations in Indiaaccepted at all major exhibition destinations in India
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Freight HandlingFreight Handling
There are professional and experienced exhibition logisticsThere are professional and experienced exhibition logistics
companies that provide acompanies that provide afull rangefull range of servicesof services
The scope of services range fromThe scope of services range from customs clearancecustoms clearance toto on siteon site
handlinghandlingwith modern mechanical handling equipment and awith modern mechanical handling equipment and a
skilled work forceskilled work force
These logistic service providers have an extensiveThese logistic service providers have an extensive internationalinternationalnetworknetwork
Doing business in IndiaDoing business in India
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Doing business in IndiaDoing business in India
The following is a brief list of leading freight forwardersThe following is a brief list of leading freight forwarders
RE Rogers India Pvt. Ltd.RE Rogers India Pvt. Ltd.
Translink Express (I) Pvt. Ltd.Translink Express (I) Pvt. Ltd.
Schenker India Pvt. Ltd.Schenker India Pvt. Ltd.
Orient Marine Lines Pvt. Ltd.Orient Marine Lines Pvt. Ltd.
The following is a brief list of leading stand constructersThe following is a brief list of leading stand constructers
Pavilions & Interiors India Pvt. Ltd.Pavilions & Interiors India Pvt. Ltd.
PICO International Exhibitions Pvt. Ltd.PICO International Exhibitions Pvt. Ltd. Meroform (India) Pvt. Ltd.Meroform (India) Pvt. Ltd.
Kingsmen Fairtech International Pvt. Ltd.Kingsmen Fairtech International Pvt. Ltd.
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Exchange ControlExchange Control
All investments can be on aAll investments can be on a repatriationrepatriation basisbasis
Original investment, profits and dividends can be freelyOriginal investment, profits and dividends can be freelyrepatriatedrepatriated
Foreign investors canForeign investors can acquire immovable propertyacquire immovable property incidental to orincidental to or
required for their activityrequired for their activity
(Source: Ministry of Commerce & Industry, Government of India)(Source: Ministry of Commerce & Industry, Government of India)
Doing business in IndiaDoing business in India
Reforms in Exchange Control & TaxationReforms in Exchange Control & Taxation
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Reforms in Exchange Control & TaxationReforms in Exchange Control & TaxationTaxationTaxation
Companies incorporated in India are treated as Indian companiesCompanies incorporated in India are treated as Indian companiesforfortaxationtaxation
There exists a Double Taxation Avoidance AgreementThere exists a Double Taxation Avoidance Agreement withwith 6565countriescountries
Peak Custom duty has beenPeak Custom duty has been reducedreducedto 15%to 15%
Corporate Tax has beenCorporate Tax has been reducedreducedto 30%to 30%
Tariff to be aligned withTariff to be aligned withASEAN levelsASEAN levels Value Added TaxValue Added Tax introducedintroducedin some States from 1st April 2005in some States from 1st April 2005
Transparency in Tax Structure:Transparency in Tax Structure: Online/ ICTOnline/ ICTApplicationsApplications
(Source: Ministry of Commerce & Industry, Government of India)(Source: Ministry of Commerce & Industry, Government of India)
Doing business in IndiaDoing business in India
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Thank YouThank You
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The Indian Economy: An OverviewThe Indian Economy: An Overview