India: An Economic Superpower?

1
India An Economic Superpower?

• Jayashankar M. Swaminathan

2
India Past

• The Indus Valley (1500 BC) as well as Pataliputra
  (400BC - 800 AD) were comparable to the New
  York, London or Tokyo of today for their times.
• Scholars from world over came to learn in India
• Yoga, Vedas and Buddha still impact of our lives
  globally

3
India Past

• The medieval period saw the splendor of large
  kingdoms in north and the south
• Explorers such as Marco Polo, Vasco De Gama and
  Columbus traveled long distances searching for
  spices, silk, jewellery and craftswork

4
India Past

• Post industrialization India was colonized and
  remained a British colony till 1947
• As late the beginning of the 19th century, India
  was the major producer of cotton for the globe
• Gandhis non-violence approach makes India famous

5
India Past to Present

• Transformation from a underdeveloped to an
  emerging economy
• Change from an agro to a service economy

6
India Present

• 2nd fastest growing country
• USD 1 trillion GDP
• 250 million middle class
• Young, educated, eager
• Retail market expected to reach 300 billion in
  2010
• Only 4 of retail is organized currently
• By 2050 (maybe earlier) will be the third largest
  economy

7
India Present

• Beyond IT /Software and Call Centers to
  Manufacturing and Knowledge
• Recognized as nuclear nation
• Strides in infrastructure Delhi metro,
  airports, quadrilateral

8
India Present

• More than 400 million below
• 1.25 per day
• Choking cities
• Literacy rates among the lowest
• Poor intellectual property protection
• Poor rural healthcare and infrastructure
• Terror risk

9
India Present Sea Change

• Burgeoning Middle Class
• Moving beyond Technology
• Indias Young and Vibrant Workforce
• Economic Development and Politics
• Infrastructure Focus
• Belief in Future Potential

10
India Potential Connect Everyone

• Market Size
• In 2000, developing countries accounted for one
  quarter of the worlds 700m mobile phones
• In 2009, they accounted for three quarters of a
  total of over 4 billion
• upto March 2009 128 m in India, 89m in China,
  96m across Africa
• By 2013 total mobile phones would reach 6
  billion, half of the users in India and China

11
India Potential Connect Everyone

• Business Innovation
• Indias biggest mobile operator
• All IT operations are outsourced to IBM
• Mobile network handled by Ericsson and Nokia
  Siemens Networks
• Customer care by IBM and other Indian firms
• Bharti now concentrates on marketing and strategy
• Operating margins 40, Cost reductions
  obtained through outsourcing

12
India Potential

• Business Innovation
• In a new area, Bharti requests a certain amount
  of calling capacity and pays for it 3 months
  later at an agreed price per unit of capacity
• Vendor handles the business of designing
  networks, putting up base stations etc. with
  incentive to build the network as frugally as
  possible
• Costs lowered by ensuring that operators do not
  pay for more capacity than they really need
• Vendors gain economies of scale as they build,
  run and support networks for several operators

13
India Potential Global Car
Has a lighter body and engine which is in the rear
No second windshield wiper to cut costs
The speedometer is moved to center of dashboard
with the air vents to cut costs
Reinvented way car seats were made to make more
room in compact interior
Tata Motors Nano is priced to sell at 2200.
Larger, competing vehicles sell for 6500. Plans
to export the cars to Europe making some
adjustments to the interior and enhancing safety
features
14
India Potential Global Healthcare

• Global Healthcare
• Liver transplant costs USD 45K in India as
  opposed to USD 280K in US
• Heart surgery costs USD 5K in India as opposed to
  30K in US
• Medical tourism business is projected to grow to
  USD 2.1B by 2012.

15
India Potential Rural Banking
A finger print scanner confirms the account
holders identity
A local is paid on commission to handout and
receive money
A cell phone updates account balances wherever a
network is available
Zeros rural wireless banking system can manage a
branch with thousands of accounts for only 60 a
month while regular bank branches (and ATMs) cost
thousands of dollars to build and run
16
India Potential Rural Refrigerators
Instead of compressor uses a cooling chip to
ones used to cool computers
Can run on battery or unstable power instead of
being plugged into an electric outlet
Opens from the top to keep more cool air in when
opened
Small and portable with handles
Godrejs Little Cool costs about 70 compared
to regular refrigerators that start at around
180. It resembles a cooler, has only 20 (as
opposed to 200) moving parts and can run on
battery.
17
India Potential Rural Cooking Stove
Uses gasifier technology to power plants to
burn more efficiently
Uses pellets made of agricultural waste like corn
husks and peanut shells, cooks dont have to
spend time searching for wood
A small fan delivers air to the burning pellets
Burns three times more efficiently than a regular
wood fire, so very little smoke is created in
process
First Energys Oorja stove sells for 23 and
pellets that fuel the stove cost around 5.60 per
month
18
India Potential Rural Health Care
Uses camera batteries to charge
Attached to a black and white printer to make
readings of the hearts electric impulses
Lightweight and portable, allowing doctors to
reach more patients
GEs ECG machine costs 1000. Before design
changes, the machine would cost as much as 10000
19
India Potential Entertainment
20
India Potential Global Innovation

• Global Supply Chain Innovation
• Went to India in 2001 and set up RD lab
• 5003 tractor was built for the Indian farmer
• 5103 tractor modified for the American farmer
• Very different from its current line yet
  successful

21
India Future

• Where is India in terms of economic development?
• Has India reached the tipping point?
• What are the roadblocks?
• What can be expected from India in the next
  decade?

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Questions
Contact msj_at_unc.edu