emerging india

7/28/2019 Emerging India

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Ms Debjani ChowdhuryJoint Director-Research

World Trade Centre Mumbai

November 2011


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Slide 2

India among top 15 countries in terms of GDP at constant prices

Fourth largest economy in the world in terms of GDP at Purchasing Power

Parity (PPP) (After the US, China and Japan)

India is on track to overtake Japan this year in terms of GDP at PurchasingPower Parity (PPP)

Attractive destination for business and investments

Huge manpower base (1.2 billion people), diversified natural resourcesand strong macro-economic fundamentals

Economic Reforms initiated since 1991


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An emerging economic powerhouse

Goldman Sachs predicts by 2050 India would emerge as the second

largest economy in the world (After China)

India could be 40 times bigger by 2050

Pricewaterhouse Coopers forecast Indian economy will register the

second fastest growth between now and 2050 and emerge as the

second biggest economy in the world by the middle of the Century

Slide 3


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Consistent economic growth of 8-9% in recent years

GDP growth in 2009- 10 was 8.0% despite global economicslowdown

GDP growth in 2010-11 was 8.5%

Growth likely to stabilise at around 8% in 2011-12

Growth likely to return to 9% in a couple years

Slide 4


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IMF predicts Indias growth for 2011 at 8.4%

Second fastest growing economy after China

India ranks 51 in World Economic Forums Global Competitiveness

Index for 2010-11, ahead of South Africa, Brazil and Russia

India among top four major wealth creating countries in the world

in 2010 ( Global Wealth Report- Boston Consulting Group)

Slide 5


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Rising Foreign Exchange Reserves

Enhanced economic performance has been major contributor

towards increased Forex reserves

Offer adequate security against currency crisis and monetary

instability

Strong Balance of Payments leading to steady accumulation of

Indias foreign exchange reserves $318.4 billion foreign reserves as

on October 21, 2011

Slide 6


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Indias International Trade

India accounts for 1.3 percent of world merchandise trade (2009)

India ranks 21 among leading exporting countries in the world (2009)

Among leading importers, India is ranked 14 and accounts for 2 per centof total global imports

In respect of trade in commercial services India is placed in the 12thposition among global exporters of commercial services

India exported 87 billion dollars worth of commercial services in 2009

Slide 7


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India Surging Exports

Total Exports during April- September (2011-12) topped $ 160billion

52 per cent growth registered

Exports crossed target of $ 200 billion for 2010-11 to reach $ 252Billion ( $41 per cent growth)

IT software and IT enabled services exports touched $49 billion in2010 rising from $2 billion in 1998

Slide 8


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April- September (2011- 12 ) imports were $234 billion ( 32 Per

Cent growth)

Acceptance of Indian products along with cost advantage has

provided an edge to Indian companies

Imports of products by India mainly includes petroleum products,minerals machinery and electronic goods

Slide 9


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India: Attractive Investment Destination

India is ranked third in A.T.Kearney FDI Confidence Index 2010

India is placed after China and US. Brazil and Germany follow India

UNCTADs World Investment Prospects Survey 2010-12 ranks India secondmost favoured investment destination (behind China) followed by Brazil,

United States and Russian Federation.

For the first time the four major emerging markets China, India, Brazil

and the Russian Federation all ranked among the top five investmentdestinations.

FDI inflow for the period April 2000- August 2011 reached $ 219billion

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Mauritius has been the largest contributor towards FDI (42%)

Singapore (9%), USA (7%), UK (5%), Netherlands (4%), Cyprus (4%),

Japan (4%), Germany, France and UAE are among the top ten

investors

Sectors attracting Highest FDI equity inflows are

Financial and non financial services (21%)

Computer Software and Hardware (9%)

Telecommunications (8%)

Housing and Real Estate (7%)

Construction activities (including roads & highways)(7%)

Power (5%)

Automobile Industry (4%)

Metallurgical Industries (3%)

Petroleum and natural gas (3%)

Chemicals (2%)

Slide 11


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India-Regional Cooperation

Regional Trading Agreements have been a very prominent feature

of the Multilateral Trading system

India has signed free trade agreements with SAARC, ASEAN ,

Singapore, South Korea, Sri Lanka and Bhutan,

Negotiating FTAs with EU, EFTA, Japan, Thailand and Bangladesh

India is a member of the SAARC Regional Trading Bloc

Slide 12


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InfrastructureVast Opportunities

India is planning to spend $514 billion in infrastructure

development during the 11th

Plan period (2007-2012)

Investment in infrastructure accounts for 7.6 percent of total GDP

during the 11th Plan Period

Private sector investment is projected at $155 billion

The Government has opened up major infrastructure projects to

public private partnerships

Slide 13


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Slide 14

Projected Investment in infrastructure during theEleventh Plan (2007-2012)

SectorsElectricityRoads & BridgesTelecommunicationRailwaysIrrigation

Water & SanitationPorts

AirportsStorageGas------------------------------ Total

Amount $ Billion166.678.564.665.563.3

35.922.07.75.64.2------------------------514.0


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Slide 15

Some Expressions About Indian Market

India is not simply emerging : India has already emerged

Barack Obama

President, US

I have been a great believer in the India growth story

Wilfried AulburMD & CEO

Mercedes Benz India

India is our fastest growing market

J.S.Shin

CEO, Samsung,SW Asia

We will make India the export hub for L.G

Moon Bum Shi

Managing Director

L.G. Electronics India


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Slide 16 India has taken its place in the world economy. A lot of them (Indian

companies) can be global companies. You already have them in cars andautos in electronics and systems

Jamie DimonChairman and CEO

J.P.Morgan Compared to China, India has a much stronger and self-sufficient skill

base. India is truly the powerhouse of the future.Michael Maedel

PresidentJWT Worldwide

India is a very important market for Ford Motor Company. We are here ina big way. We are doubling our plant capacity in Chennai.

Mark BentleyManager

Ford Global Licensing


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THANK YOU

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