BOOMING INDIAN ECONOMY: WHAT IS IN IT FOR GLOBAL SHIPPING - PowerPoint PPT Presentation

1 / 19
About This Presentation
Title:

BOOMING INDIAN ECONOMY: WHAT IS IN IT FOR GLOBAL SHIPPING

Description:

... development of infrastructure and full utilisation of labour force more than 20 ... Self-sustaining & not implanted by foreign investments to utilise cheap labour ... – PowerPoint PPT presentation

Number of Views:126
Avg rating:3.0/5.0
Slides: 20
Provided by: dsl85
Category:

less

Transcript and Presenter's Notes

Title: BOOMING INDIAN ECONOMY: WHAT IS IN IT FOR GLOBAL SHIPPING


1
BOOMING INDIAN ECONOMY WHAT IS IN IT FOR
GLOBAL SHIPPING?
  • By Ravi K Mehrotra
  • Chairman
  • Foresight Group, London

At European Parliament, Brussels (Conference Room
3E-2) On 9th November 2005
2
When I visited China in late 1980s
3
When I visited China in 2005
4
When I visited India in late 1980s
5
When I visited India in the present day
6
WHAT DO THE PREVIOUS FOUR IMAGES TELL US?
  • India in 1980
  • Ahead of China esp. in free enterprise and per
    capita earnings
  • China in 1980
  • Still struggling with Communist Egalitarian past
    and lack of enterprise
  • India in 2005
  • Full of vigour but political system still trapped
    in clanship management of the Nation instead of
    taking charge of enterprise
  • China in 2005
  • Government took charge of enterprise in late
    1980s, transforming China into a modern
    industrial nation which increased per capita
    income by a factor of 5

7
BOOMING INDIAN ECONOMY WHAT IS IN IT FOR GLOBAL
SHIPPING ?
  • In October Bombay Stock Exchange crossed 8,500
    points More than 35 growth in one year
  • But is it the effect of Globalisation of Indian
    Economy or Industrial Revolution?
  • Will it follow China? Or Brazil?

8
IS INDIA THE NEXT BIG STORY?
  • Is India ready for a repeat of the China Effect
    on Global Shipping?
  • Indias Intellectual Industry Growing, Why?
  • India presently lacks development of
    infrastructure and full utilisation of labour
    force more than 20 population unemployed or
    partly-employed
  • India is the worlds largest democracy but has
    archaic labour employment laws

9
Total GDP and PPP GDP 2004
10
GDP Growth 2000 to 2050
Source Goldmann Sachs The Path to 2050
11
WEAKNESSES OF INDIAN ECONOMY
  • Still dependent on agriculture 25 of GDP and
    40 of labour employment
  • Labour Laws archaic contributes to keeping
    people below poverty line
  • Political system controlled by clan mentality
  • Day-to-day economic activity shackled in
    bureaucracy
  • Legal system slow time consuming
  • Acute shortage of infrastructure development in
    the country

12
Urbanisation Trends
Urbanisation Trends
World Population Prospects The 2004
Revision United Nations Population Database
Population Division
13
Value of Merchandise Exports Imports
14
STRENGTHS OF INDIAN ECONOMY
  • Self-sustaining not implanted by foreign
    investments to utilise cheap labour
  • Industrial Growth improved from 6-7 to 11.7
  • Largest middle-class purchasing power
  • Largest number of Professionals
  • Largest percentage of computer literate people
  • Self-sufficient in food production in fact net
    exporter

15
China vs. India FDI Attractiveness
Source FDI Confidence Index. A.T. Kearney.
October 2004. Volume 7
16
Infrastructure ) Investments
Source China Statistical Yearbook, RBI, Morgan
Stanley Research
17
SUMMARY ON INDIA
  • It will still take time to sort out distortions
    in society and its economy
  • Acute shortage of infrastructure development in
    the country
  • Above two weaknesses will limit economic growth
  • For next 5 years India will have a negative trade
    balance
  • Population growth means young labour force for
    next 20 years
  • Hydrocarbon exploration in river deltas due
    perennial rivers from Himalayas will contribute
    to India being self-sufficient in energy
  • Due globalisation of Indian economy Bombay Stock
    Exchange will continue in positive direction

18
CONCLUSION
  • India will reach 8 Growth Rate in next 5 years
  • Economy will grow to between 10 12 between
    2010 2015
  • QUOTE We can be a developed Nation by 2020 if
    we make this our Mission Statement Dr A P J
    Abdul Kalam, Indian President
  • Will India fulfil the Presidents Statement?
  • Will Indias Development have an effect on Global
    Shipping?
  • Will International Ship Owners reap similar
    profits which they had from China over the last
    two years?

19
BOOMING INDIAN ECONOMY WHAT IS IN IT FOR
GLOBAL SHIPPING?
By Ravi K Mehrotra Chairman Foresight Group,
London
At European Parliament, Brussels (Conference Room
3E-2) On 9th November 2005
Write a Comment
User Comments (0)
About PowerShow.com