Indian Diaspora: Our People, Our Wealth

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Indian Economy Opportunities Unlimited SEPTEMBER
10, 2008, BUDAPEST
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India Fastest Growing Free Market Democracy
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Sources Times of India, , RBI, RBI, DIPP, Indian
Budget, Rediff, The Economic Times
Annualized data used to show comparison with
1990
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India Among the Top 15 Countries in terms of GDP
at constant prices
The Indian economy has witnessed unprecedented
growth. Booming services and industry sectors are
providing the required impetus to economic growth

• Fastest GDP growth of 9.4 percent in 200607,
  since last 18 years (at constant prices)
• Indias GDP has witnessed high growth and was the
  second fastest growing GDP after China in 2007-08
• The sound performance of each industry segment is
  leading to the overall robust performance of the
  Indian economy

27 percent Increase
Contribution of Services - increased from 48
percent to 53 percent
RE - Revised Estimates
Growth in sectors at Constant Prices
(200708) Industry 10.8 Services
8.5 Agriculture 4.5
Source MOSPI Statistics, RBI
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India Robust Economic Platform
Steadily increasing Forex reserves offer adequate
security against any possible currency crisis or
monetary instability
In 2007-08, Forex reserves witnessed a growth of
approximately 56 percent over 2006-07.
Indias Forex reserves are in excess of external
debt
Increased confidence of investors in Indian
companies has led to a surge in cross border
borrowing by corporate houses
the decreasing external debt to GDP ratio
indicates that India has a sound economic platform
Source RBI Statistics
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India Surging Trade (1/2)
Quality and cost advantage are the two important
parameters leveraged by the Indian producers to
increasingly market products and services
Services sector has been a major contributor to
increased exports from India
Exports in April 2008 amounted to USD 14.4
Billion increasing by 31.5 percent from April
2007
Acceptance of Indian products along with the cost
advantage has provided an edge to Indian companies
Petroleum products are the major contributors
towards Indias growing imports
Product imports by India mainly include petroleum
products and minerals
Imports in April 2008 amounted to USD 24.2
Billion increasing by 36.6 percent from April
2007
Source Ministry of Finance (May 2008)
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India Surging Trade (2/2)
Exports of Top-Five Commodities (Apr-Feb 2007-08
)
Data for April-Feb 2007-08 (Provisional)
Imports of Top-Five Commodities (Apr-Feb 2007-08
)
Provisional data
Source DGFT
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India Attractive Investment Destination
With improved performance on PE ratio and ROE,
Indian markets have attracted large investments
Electronic equipment, manufacturing and telecom
have witnessed significant FDI inflow
India is ranked second in AT Kearneys FDI
confidence index (2007)
56 percent Increase
FDI for April 2008 amounted to USD 3749 Million
FDI inflow for the period 2007-08 witnessed a
growth of 56 percent over the last year
140 percent Increase
Large FII activity in India has led to an upsurge
in the Sensex
FII growth momentum was restricted because of
Sub Prime Crisis in 2007-08
Source DIPP (October Report) , SEBI
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India Vibrant Capital Market
Sensex The Bombay Stock Exchange index has
risen 20 times from 1990s to reach 20,000 mark in
November 2007.
India is among the major destinations across the
globe for inflow of US Dollar
Sensex has risen 20 times in the period 1990-2007
Emergence of industry and confidence of local
investors along with the FIIs has led to upsurge
of the Sensex
FIIs have infused large investments into the
Indian stock market
Increased local investors confidence
Encouraging industry performance
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India Vibrant Economy Driving MA Activities
First two months of 2008 have already seen 92
MA valued at approximately USD 6 Billion
In 2007, the total value of MA and PE deals was
USD 70 billion
In 2007, there were a total of 676 MA deals and
405 private equity deals
Private equity deal value increased to USD 19
billion
Total MA deal value was close to USD 51
billion

• Growth Drivers
• Globalisation and increased competition
• Concentration of companies to achieve economies
  of scale
• Cash Reserves with corporates

• Trends
• Cross-border deals are growing faster than
  domestic deals
• Private Equity (PE) houses have funded projects
  as well as made a few acquisitions in India

Source Deal Tracker Grant Thornton, Economic
Times, IBEF, RBI
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Major MA Deals Undertaken Abroad by India Inc.
Tata buys Jaguar and Land Rover
USD 2.3 billion
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Major MA and Investments Announcements in India
POSCO to invest in building steel manufacturing
plants and facilities in India by 2016
USD 12 billion
Vodafone buys Hutch
USD 11 billion
Plans to establish three manufacturing plants to
produce photo-voltaic units
USD 2 billion
Plans to spend on its development operations in
India over the next four years
USD 1.7 billion
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Major MA and Investments Announcements in India
Plans investment in private equity in Indian
markets
USD 1 billion
Plans investment in private equity, real estate,
and private wealth management
USD 1 billion
Aditya Birla Group increased its stake in Idea
Cellular by acquiring 48.14 percent stake
USD 0.98 billion
Mylan Laboratories acquired a majority stake in
Matrix Laboratories
USD 0.74 billion
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Major MA and Investments Announcements in India
Plans to invest in six private equity funds in
Indian market
USD 0.185 billion
Plans expansion of network in India
USD 45 billion
Plans expansion of cement capacity in India
Over USD 1 billion
Source The Economic Times
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14
Indian Companies Fuelling Future Expansions
Plans to provide services in the Sri Lanka market
USD 0.2 billion
Plans to invest in the Uganda market
USD 0.5 billion
Plans to invest in its global expansion efforts
Over USD 2 billion
RIL is planning to invest in its recently
acquired polyester manufacturing facility in
North Carolina
USD 0.215 billion
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Source International Business Times, The
Financial Express, IBEF, SifyBroadband
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India Pacing Ahead to Emerge as a Major Economy
in the World
2008 Global Retail Development Index (GRDI)
India ranks second in the AT Kearney Global
Retail Development Index (2008)
Services sector continues to attract interest
from major global players and large investments
are being pumped into it
AT Kearney has placed India as the most
preferable destination for Services sector (2007)
India is expected to outperform its rivals in the
BRIC, in terms of GDP growth rate, from 2015
onwards
Source AT Kearney, BRIC Report
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Why India? Quote Unquote
India has evolved into one of the world's
leading technology centers.
I have never seen India so dynamic, vibrant and
full of business opportunities.
India is now truly a land of opportunity.
Craig BarrettIntel Corporation
John RedwoodEconomic Competitiveness Policy
Group, UK
By 2032, India will be among the three largest
economies in the world.
Peter Loescher President and Chief Executive
Siemens
The Indian market has two core advantages - an
increasing presence of multinationals and an
upswing in the IT exports.
We came to India for the costs, stayed for the
quality and are now investing for innovation.
BRIC Report, Goldman Sachs
India is a developed country as far as
intellectual capital is concerned.
Travyn Rhall,ACNielsen
India is a very exciting market and the luxury
car segment is growing exponentially here.
- Dan Scheinman, Cisco System Inc. as told to
Business Week, August 2005
Mr Paul de Voijs Managing DirectorVolvo Car
India
Jack WelchGeneral Electric
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