India

1
Indias Position in the World Market

• Bharat Wakhlu
• President
• Tata Inc., USA
• bharat_at_tatainc.com
• NASPD Fall Conference New York, 2006

2
Brief History

• Indias exports during the time of Christopher
  Columbus accounted for 38 of global trade by
  value
• When India became independent in 1947 its share
  of global trade had fallen to less than 4

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Topography
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China
Pakistan
Tibet
Nepal
6000 km of natural peninsular coastline
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Vibrant, Pluralistic Democratic Society
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India Melting Pot of Cultures

• Secularism is a philosophy embedded in Indias
  history
• Diversity abounds in the geography as well as in
  culture.
• India is home to all the worlds faiths
• One billion people live together even as they
  speak 22 different languages and 2500 dialects.

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Elements of Democracy

• India is the worlds largest and fastest growing
  free-market democracy
• Written Constitution
• Peoples participation- freely contested
  elections regularly since independence in 1947-
  680 million voters 5 million election officials
• Independent Judiciary, alert and free media and
  NGOs.

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Free Press

• 5000 daily newspapers
• 16000 weeklies
• 6000 fortnightlies, including US magazines
• 200 TV channels

10
Youthful Nation- Demographic Dividend

• India has 350 million citizens below the age of
  15 years in 2005 this will ensure that its
  workforce will expand for decades
• BY 2010 65 of Indias population will below the
  age of 25 years.

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While China may have won the sprint, India is
training for the marathon.-Dan Fineman,
Far Eastern Economic Review
Sustainability
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Robust Economy Large Market and Competitive
Source for Goods and Services
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India is on a high-growth trajectory

• India will be one of the four fastest growing
  economies of the world over the next 40-60 years,
  leveraging its demographic and growth oriented
  investment
• Consistent and sustainable growth rates between
  7.3 to 8.2 predicted by JP Morgan, UBS and
  Morgan Stanley

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Percentage
9.8
9.0
8.1
Financial Year
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GDP Sector-wise Distribution
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High Disposable Income

• Indias Middle class is 400 million strong.
• With high disposable incomes, the middle class is
  driving demand, stimulating competition and sharp
  increases in productivity

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Growing Consuming Group
Numbers in Millions of people
472
429
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Attractive Investment Destination(US Billion)
FDI in 1991 US 100 Million in 2005 US 6
Billion
10.5
8.2
6.1
0.9
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Manufacturing Competitiveness
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Indian Manufacturing Facts

• India is fast developing into a manufacturing hub
  for global corporations keen to leverage skills
  in Product Design, Customization, Innovation,
  Quality and Value Addition
• Manufacturing Exports from India are likely to
  grow to US300 billion by 2015 a third from
  apparel, auto components, specialty Chemicals and
  Electronics assemblies

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Indian Manufacturing Facts(2)

• India is an economy that achieves the same level
  of value addition at considerably lower costs
• The availability of English speaking, highly
  trained skilled technicians, craftsmen and
  Engineers is a distinct advantage

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The Most US FDA Approved Manufacturing Sites
75
55
27
25
10
8
5
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Tata Motors

• Tata Motors developed the Indica sedan for US
  350 million
• An equivalent project in the US or EU would have
  cost at least three times as much, i.e over US 1
  billion
• Over 52 years of manufacturing experience

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Indias Capital Advantage
Total Cost of Plant set up Index cost in US 100
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Tata Steel
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Tata Steel

• Lowest cost producer of Carbon Steels in the
  world
• Produces world class flat products for White
  goods and automotive applications, as well as
  construction steel, wires, tubes and pipes.
• 100 years of manufacturing experience

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Infrastructure Upgrades
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India is Investing Heavily in Infrastructure
Roads

• US 20 billion to be spent between 2006-2012 for
  Urban renewal
• National Highways Development Project (NHDP)
  creating the Golden Quadrilateral 15,000 km of
  4/6 lane roads connecting the four Metros. Cost
  US13 billion

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Infrastructure Ports

• Additional Port handling capacity created to
  handle 47.4 MMt of cargo.
• New projects to enhance annual handling capacity
  by 90 MMt with an investment of US1.6 billion
  underway

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Infrastructure Power

• India is short of power in the North. Has a
  surplus in the East and the West
• 108000 MW of additional power generating capacity
  being added over the next 8 years.

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Infrastructure Telecom

• Everyday 2 million new cell phone subscribers are
  added
• 32 million subscribers were added in 2005.
• Indias tele-density touched 11.5, with 125
  million sbscribers

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India Quick Facts
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What India is known for

• Largest producer in the world of milk, pulses,
  sugarcane and tea
• 2nd largest producer of wheat, rice, fruits and
  vegetables
• Insurance US10 billion industry
• 5th largest electricity generation capacity in
  the world
• 5th largest telecom services market revenues
  US18 billion in 2005

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What India is known for(2)

• 2nd largest road network of 3.3 million Km
• Indian Railways is the largest and busiest
  network in the world employs 1.6 million people
• One of the ten largest retail markets
• Largest producer of Sponge Iron in the world
• Producer of 35 million Mt of steel
• Largest consumer of gold in the world

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Questions?