Download - India Country -Emerging Economy
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IndiaEmerging Economy
By : Amit Rathod
Exec. PGDM
2010-11
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Geographic & climatic conditions
Geographical
Location:Southern Asia, bordering the
Arabian Sea and the Bay of
Bengal, between Burma ,
Pakistan, china , Nepal.
Land boundaries:
Total: 14,103 km border
countries: Bangladesh 4,053
km, Bhutan 605 km, Burma1,463 km, China 3,380 km,
Nepal 1,690 km, Pakistan
2,912 km
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Population
Population: 1,191,000,000(2010 estimated)
Growth rate: 1.548% (2009
estimated)
Age structure:
- 0-14 years: 31.1%
- 15-64 years: 63.6%
- 65-over: 5.3%
Source : http://en.wikipedia.org/wiki/Demographics_of_India
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The Indian flag is a horizontal tricolor inequal proportion of deep saffron on the
top, white in the middle and dark green at
the bottom.
The ratio of the width to the length of the
flag is two is to three.
In the centre of the white band, there is awheel in navy blue to indicate the Ashok
Chakra, is a symbol dating back to 2nd
century BC.
Its diameter approximates the width of
the white band and it has 24 spokes, which
intends to show that there is life in
movement and death in stagnation.
The saffron stands for courage and
sacrifice; the white, for purity and truth;
the green for growth and auspiciousness
Indian Flag
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India 2nd in global competitiveness
Source -Press Trust Of India / Washington July 11, 2010, 0:38 IST
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Firms in India Globally Competitive
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India
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Constitution of India : Democratic system
The Constitution of India (Hindi:
) is the
supreme law of India.
The framework defining fundamental
political principles, establishing the
structure, procedures, powers and
duties, of the government and spells
out the fundamental rights, directive
principles and duties of citizens.
Passed by the Constituent Assembly
on 26 November 1949, it came into
effect on January 26, 1950. Supervised by Dr. Rajendra Prasad &
B. R. Ambedkar, as chairman of the
Constitution Drafting Committee,
was the chief architect of the Indian
Constitution.
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The Indian Judicial System has the
Supreme Court of India is located only
in the capital city Delhi, without any
benches in any part of the nation, and
is presided by the Chief Justice of India
Institutions : Legal
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Government is focusing on business & investment environment
No licensing required except in five sectors
100 % FDI permitted in manufacturing (except atomic energy)
100 % FDI permitted in most services sector
Foreign investment allowed in capital market
State Government compete for Investor friendly image
Investor Friendly, Liberal open market
economy
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Infrastructure :Finance
Infrastructure funding has come a
long way to go in India.
Foreign investors are
comfortable with the idea of
investing in Indian infrastructure The average internal rate of
return (IRR) on infrastructure
projects in India is about 15-20
per cent.
India needs US$320 billion ininfrastructure 11th Plan(2007-
2012)
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Infrastructure : Indian Telecom Industry
Average growth rate of over 40%
in respect of subscribers
The tele-density of India at about
23 per cent coupled with itsbillion-plus population offers
immense growth potential for the
telecom services sector
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Infrastructure : Civil Aviation
Totally 125 civil airports in India
including the 11 designated
international airports. Of these
only 94 airports only are
presently operational.
Economic survey report , there
had been record growth of over
25% in the air traffic in India in
the last three years
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Infrastructure : Railways
India has one of the largest railway networks inthe world (63,000 KMs route network)
Accounts for 30% of total freight traffic
Traffic volumes set to double by 2016
Potential for rolling stock, passenger coaches,
track equipment, signaling equipment
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Infrastructure : Highways & Roads
India has an extensive road networkof 3.3 million Kms the secondlargest in the world.
Roads carry about 61% of thefreight and 85% of the passenger
traffic.
Highways/Expressways constituteabout 66,000 Kms (2% of all roads)and carry 40% of the road traffic.
The Government of India spendsabout Rs.18000 Crores (US $ 4billion) annually on roaddevelopment.
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Infrastructure : Power
Electricity is the most important
infrastructural input in the
development and growth of
economy.
India, which posted a 9.4%GDPgrowth last fiscal, has an installed
capacity of 132,110 mw.
Indias investment requirements
for power generation and
transmission will be tune of $200
billion, to be able to fulfill
projected demand by 2012.
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Power Reach & Cost per Unit
Per capita consumption Around
606 units.
Customers registered as being
from the agriculture sector, 85
paise/kWh (0.6 U.S. cents/kWh),were far below the overall average
price (208 paise/kWh).
This occurred at the expense of
commercial consumers (354
paise/kWh), industry (350
paise/kWh, 7.8 U.S. cents/kWh)
and railway hauling (411
paise/kWh).
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Infrastructure : Ports
India has around 12 major ports
and 185 minor ports with a
coastline of 7517 Km.
Twelve major ports Kolkata,
Paradip , Visakhapatnam,Chennai, Ennore, and Tuticorin
on the east coast and Cochin,
new Mangalore, Mormugao,
Jawaharlal Nehru at Nhava,
Mumbai and Kandla on west
coast.
India has the largest merchant
shipping fleet among the
developing countries and is
ranked 17th in the world
In Million tons
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0
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2009
-10(uptoF
eb)
GD
GrowthRate(%)
GDP - composition
by sector:
Agriculture: 17.1%
Industry: 28.2%
Services: 54.6% (2009)
Source : CIA World Fact book
Indian macroeconomic Indicators : GDP Growth
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Macroeconomic environment
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Macroeconomic environment
5.3 5.4 8.4 9.620 18 22
28 3238 42
46
7584
144 148
192
220
243
288
0
50
100
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Yr-91 Yr-92 Yr-93 Yr-94 Yr-95 Yr-96 Yr-97 Yr-98 Yr-99 Yr-00 Yr-01 Yr-02 Yr-03 Yr-04 Yr-05 Yr-06 Yr-07 Yr-08 Yr-09 Yr-10
Foreign Reserve (US $ Bn)
Foreign Exchange (US$ Bn) Reserves
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Higher education and Training
India is the second largest Education market of the world & India spendsabout 5% of its GDP in education.
With more than 55 percent of its 110 million population is under the age
of 25 by 2010, is the indicator of potential educational market in India.
India has around 370 universities and 18000 colleges with 12 million
students on their rolls, and half a million teachers teaching in all
disciplines.
India currently has around 115 universities and 2,100 colleges, whichteach various engineering disciplines.
Engineering colleges in the country have been growing at 20 per cent a
year, while business schools have grown at 60 per cent.
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Industrial Production in Indiaexpanded 1.6 percent in Decemberof 2010.
Industrial production measureschanges in output for the industrialsector of the economy which
includes manufacturing, mining, andutilities.
Industrial Production is an importantindicator for economic forecastingand is often used to measureinflation pressures as high levels ofindustrial production can lead tosudden changes in prices.
From 1994 until 2010, India'sindustrial production averaged 7.49percent reaching an historical highof 17.70 percent in December of2009 and a record low of -0.20
percent in December of 2008
Goods market efficiency : Industrial production
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Healthcare
By the year 2010, India has thebest mass health care deliverysystem in the world.
Because our country produces thelargest number of doctors in theworld. India also produce thelargest number of nurses andtechnicians.
The India is the only country in the
world which can provide qualityhealthcare service to the patientsof developed countries at around40 to 50% of the price charged fortreatment at developed countries.
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Primary Education
Primary education is the foundation on which the development of everycitizen and the nation as a whole built on.
India has made a huge progress in terms of increasing primary educationenrolment, retention, regular attendance rate and expanding literacy toapproximately two thirds of the population.
GOI and States increasingly recognize education as a critical input forhuman capital development, employment/ jobs, and economic growth, andare putting major financial and technical resources into this effort
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Labor market efficiency
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Unemployment Rate
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India exports were worth 22500Millions USD in December of2010.
Exports amount to 22% of IndiasGDP.
Gems and jewellery constitutethe single largest export item,accounting for 16 percent ofexports.
India is also leading exporter oftextile goods, engineering goods,chemicals, leather manufactures
and services. Indias main export partners are
European Union, United States,United Arab Emirates and China
Financial market development : India Exports
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India imports were worth25100 Millions USD inDecember, 2010.
India is poor in oil resourcesand is currently heavily
dependent on coal andforeign oil imports for itsenergy needs.
Other imported products are:machinery, gems, fertilizersand chemicals.
Main import partners areEuropean Union, Saudi Arabiaand United States.
Financial market development : India Imports
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Science and Technology
Indias science and technology, seems finally to find its feet. In January 2007, ISRO successfully recovered an orbiting
satellite.
It is a technology that only China, the EU, Russia and the USApossess.
In April 2007 ISRO commercially launched and Italian scientificsatellite Agile into orbit and entered the international satellitelaunch market.
Successful launch of the Geosynchronous Satellite LaunchVehicle, (GSLV-F04), which placed a 2-tonne communicationsatellite, INSAT-4CR into orbit.
Successfully tested an indigenously made cryogenic engine topower GSLVs.
Indian made super-computer ranked in the top-10 in the world
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What is e-commerce?
Includes:
Online business to business transactions
Online business to consumer transactions
Digital delivery of products and services
Online merchandising
Automated telephone transactions eg phone banking
E commerce in India is at low cost
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Consumer finds
something she wants
to buy at a shop on
the Net
Consumer sends on
enciphered request for
payment to her bank
The electronic bank
sends back a
secure packet of e-
cash
Consumer
sends the e-
cash to theshop
Verification and
remittance of actual
funds
Consumer
Public Key
The shopsends the
packet of
cash to its
bank
Merchant Bank
MerchantServer
Shop
Consumers
Bank
Shop
1
3
6
2
5
4
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Technological readiness:Exports of IT
Services
India is home to large number of IT
professional, who have the necessary
skill and expertise to meet the
demands and expectations of the
global industry.
The cost of skilled Indian work force
is reasonable low compared to the
developed nation.
India has huge pool of Englishspeaking IT professional. This is why
IT speaking countries like US & UK
are depend upon India for ITSkill out
sourcing.
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Market size : Retail
Retail Industry market size is
$650 billions by 2010.
The high growth in the retail
sector in India is primarily driven
by the impact of rising incomes,
increasing urbanization, greaterbrand competition, changing
lifestyles.
India's vast middle class and its
almost untapped retail industry
are key attractions for globalretail giants wanting to enter
newer markets.
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Business sophistication
Business sophistication is conducive to higher
efficiency in the production of goods and services.
It leads, inturn, to increased productivity, thusenhancing a nations competitiveness.
Process of continual improvement of quality &
quantity through value chain.
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Business sophistication Indian Top
companies in world
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Innovation : Policies The final pillar of competitiveness is technological innovation.
Indian Pharama Industry expenditure in R & D 8-9 %. Bio Technology - India is among the first few countries in
the developing world to have recognized the importance ofbiotechnology as a tool for advancing growth in theagriculture and health sectors .
Department of Biotechnology (DBT)-T
he DBT
has established ahuge infrastructure of 55 globally networked bio-informaticscenters and supports. Presently, 15,000 scientists are estimated tobe engaged in Indias biotechnology sector.
Indias Information-Communications-Technology (ICT) sector : Itexports software to over 102 countries around the globe and one
out of every four global giants outsourced their softwarerequirements to India.
E-Commerce - Electronic commerce means business conducted bymeans of computer networks. online services such asbanking, ticketing (including airlines, bus, railways), billpayments, hotel booking etc. have been of tremendous benefit for
the customers.
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India-China Trade Relations
India has emerged as the 7th
largest export market of China
and 10th largest trade partner.
y Handpicked three commodities
from the basket of commodities
that India exports to China.
These are
y Iron & Steel
y Cotton
y Organic Chemicals
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India AND China: Engines of global growth
1/3 rd of humanity: Demanding goods and servicesfrom the world
1/4 th of high-skilled manpower: Providing goodsand services to the world
In 2025, the combinedGDP of India and China will beroughly equal to that ofG-7 minus US (i.e.
Japan, Germany, France, UK, Canada and Italy).
India and China cannot afford to ignore each other.
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Bibliography
http://www.unicef.org/infobycountry/india_statistics.html
http://www.indiastat.com
http://www.worldbank.org.in/WBSITE/EXTERNAL/COUN
http://www.rbi.org.in
http://www.indiainfraguru.com/
http://www.wto.com
http://www.youthxchange.net/main/ff4b265_india-p.asp
http://www.asiape.com/aper/aper_issues/aper1101.html
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Thank you