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8/9/2019 Statistics of India
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INDIAINDIA
Talent LandscapeTalent LandscapeSanjay SinghSanjay Singh
8/9/2019 Statistics of India
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INDIAINDIA
Talent LandscapeTalent Landscape
Today & the Future
8/9/2019 Statistics of India
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Structure
India Economic Overview
Trends in Key Sectors of Indian Industry
Key Success factors in India
Key Challenges for Search Firms
Conclusion
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5,000 year old ancient civilization5,000 year old ancient civilization 325 languages spoken325 languages spoken1,652 dialects1,652 dialects 18 official languages18 official languages
29 states, 5 union territories29 states, 5 union territories
3.28 million sq. kilometers3.28 million sq. kilometers -- AreaArea 7,516 kilometers7,516 kilometers -- CoastlineCoastline 1.3 Billion population.1.3 Billion population.
5600 dailies, 15000 weeklies and 200005600 dailies, 15000 weeklies and 20000
periodicals in 21 languages with a combinedperiodicals in 21 languages with a combinedcirculation of 142 million.circulation of 142 million.
GDP $576 Billion. (GDP rate 8%)GDP $576 Billion. (GDP rate 8%)
Parliamentary form of GovernmentParliamentary form of Government
Worlds largest democracy.Worlds largest democracy. Worlds 4th largest economy.Worlds 4th largest economy.
Largest English speaking nation in the world.Largest English speaking nation in the world. 33rdrd largest standing army force, over 1.5Millionlargest standing army force, over 1.5Million
strong.strong.
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India Economic Perspective
Last 40 years
1950-1980:
Slow rate of
growth (~2%)
1980-1990:
GDP growth of
~5% (reform
process
launched)
1993-1996: GDP growth of7+%
Increased openness toglobalization - FDIallowed
Import tariffs graduallyreduced
Small scale reservationabolished in severalsectors
Key sectors opened toprivate participation
1997-2002: GDP growth of
~5%Slow down in reforms
Interest ratesprogressively reduced -16% to 7%
1991-2002
2003
GDP growth of 8.2 % (03-04)
Almost complete deregulation
- 100% FDI allowed in several
sectors Forex reserves at all time high
Rupee at a three year high
against dollar
Modest inflation Record investments by FII
Declining External debt
Fiscal deficit declining for the
first time
Investment Grade- Moodys
Indian companies now turning
global through acquisition
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Economy surging ahead
Economy on course for growth of 9.2%
Fastest growth in 18 years
A consumption-driven boom New emerging middle class, IT/BPO spillover
ITES growth in 2006/07 of 25%
Wage gains fuelling buoyant demand
Spending rather than saving
And borrowing heavily
Trade, hotels, transport, comms: up 13% (from 10.4%)
Manufacturing up 11.3% (from 9.1%)
Banking, insnce, business services: up 11.1% (from 10.9%)
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Some sectors showing staggering growth
Source: Pyramid Research
Telephone subscribers in India (millions)
0
50
100
150
200
250
300
350
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Telephone main lines Mobile subscribers
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2001/0
2
2002/0
3
2003/0
4
2004/0
5
2005/0
6
2006/0
7
Source: SIAM
Sales of passenger cars in India
80%
23%
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Confidence surging
Incredible India
Grant Thornton survey: 7,200 firms in 32 countries
Indians most optimistic aboutnational economic prospects
Palpable sense India is on the move
Domestic firms taking on the world:
IT superstars: TCS, Infosys
Tata Steel buying Corus
Hindalco Industries buying Novelis
Stronger profile on international political stage Investment & Consumption, both rising rapidly
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Foreigners getting excited too
Services and IT: By August 07, Indias 35,000 workforce will be largest for
Accenture (US is 32,000)
NYSE and DeutscheBorse buying intostock exchanges
Vodafone buying
Hutchison Essar
But manufacturing too: Flextronics indl park
Suzuki: US$1.7bn by2010 on top of US$800m 0
2
4
6
8
10
12
14
2001
2002
2003
2004
2005
2006
2007
Sources: UNCTAD, EIU
FDI inflows into India (US$bn)
44%
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What is Indias trend growth rate?
Source: EIU
Indias average annual GDP growth rate
0%
1%
2%
3%4%
5%
6%
7%
8%
9%
10%
1981-85
1986-90
1991-95
1996-00
2000-05
2006-10
?
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India placing in the world
Among the top 5 economies
One of the fastest growing economies
Source : World Development Indicators 2006
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Red tape continues to slow the
liberalisation process
Poor infrastructure remains a challenge
airports, power, ports & roads require huge
investments.
Labor laws continue to be restrictive.
Legal processes are slow.
Political opposition to privatization still strong.
Tax system is viewed by some as being very
complicated, and bureaucratic, with laws opento interpretation.
Burgeoning population
Source1: NASCOM
Source2: Economist
Red tape & infrastructure
But many hurdles remain
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Indias Value Proposition
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Source: Gartner Research
India and the Global Talent Pool - A Comparison
Cost, Quality & Language advantages
HighMediumLow
Philippines
Overall climate
Educational system
Cost advantage
Quality
Cultural compatibility
India ChinaCanadaIrelandRussiaIsrael
English proficiency
Government support
Labour pool
Infrastructure
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India Demographic advantage
Largest youth population (One quarter of the worlds youth lives in India)
Growing literacy rate.
Large pool of professionals and technocrats
Largest pool of English speaking manpower after US
India
Demographics assure increasing domestic demand
Set to become service provider to the world
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India DemographicProfile (2020)
China DemographicProfile (2020)
France DemographicProfile (2025)
-60 -40 -20 0 20 40 60
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Mn people
Age group
Female MaleFemale Male
-60 -40 -20 0 20 40 60
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Mn people
Age group
-3 -2 -1 0 1 2 3
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Mn people
Age group
204060204060 123
Source: CII Conference 2002; CSFB Report; UN Population Division; BCG Analysis
20 - 35 age group :
325 mn people (~25 %)
20 - 35 age group :
308 mn people (~21 %)
20 - 35 age group :
11 mn people (~17 %)
Future Demographics - 2020
25 % of total population is in the peak Working Age
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Potential surplus population in working age group (2020)
47
Mn
19Mn 7
Mn
3Mn
5Mn
3Mn
India
Bangladesh
PakistanIran
Brazil
Mexico
Philippines
5Mn
4MnVietnam
2Mn
Turkey
-10Mn
China
-6Mn
Russia
5Mn
Indonesia
1Mn
Malaysia
0Mn
Ireland
Israel
0Mn
Iraq
2Mn
-1Mn
Czech
Republic
4Mn
Egypt
-17MnUS
-2 MnUK
-2 Mn
Italy
-3 MnFrance-9 Mn Japan
-0.5Mn
Australia
-3 MnSpain
-3 MnGermany
This results in
India likely to have a 47 Mn Working population Surplus
Source : Hewitt 2006 Study
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Leading to Destination India ?
India has among thehighest returns onforeign investment
Dan Scheinman, Cisco System Inc.Business Week, August 2005
We came to India for thecosts, stayed for the quality
and are now investing forinnovation.
A T Kearney FDI ConfidenceIndex 2005
India is among thethree most attractiveFDI destinations in
the world
Jack WelchGeneral Electric
India is a developedcountry as far as
intellectual capital isconcerned.
US Department of Commerce
By 2032, India will beamong the three largesteconomies in the world
BRIC Report by Goldman Sachs,October 2003
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Structure
India Economic Overview
Trends in Key Sectors of Indian Industry
Key Success factors in India
Key Challenges for Search Firms
Conclusion
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Whats Going On ?CONSUMER & RETAIL
Overall growth in Consumer Goods @ 7.5% driven by premium, lifestyleproducts
Indian consumer with increasing spending power, resulting in increased
demand for basic and high end consumer goods India the 6th most attractive retail destination among emerging markets
Total market valued at US $ 200 bn (esti)
Presently modern retail commands only 2-3% of total retail sales vs 85% in US
Maturing Financial markets
Significant growth in Retail Banking and Asset Management
RBI gives licenses to new Private Sector Banks - increases direct investment
limit to 74%
Insurance sector open to competition from foreign players
FIIs allowed to invest in Indian capital markets. Indian companies permitted toaccess international capital markets
FINANCIAL SERVICES / INSURANCE
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Whats Going On ?
Indian Pharma industry growing at 9% per year
New, product patent regime to fuel innovation and greaterinvestment in R&D
Low costs and capacity enhancement options make Indiaan attractive destination for major global Pharma Cos
Global Generic companies script India strategy
India to earn $ 1 bn from Clinical Trials
Vast pool of Scientific & Technical personnel ; recognizedexpertise in Healthcare
LIFE SCIENCES
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Whats going on ? Pharmaceuticals
The Indian pharmaceutical industry at $6.5 billion and growing at 8-10%annually, is the 4th largest pharmaceutical industry in the world, and isexpected to be worth $12 billion by 2008.
Its exports are over $2 billion. India is among the top five bulk drug makers andat home, the local industry has edged out the Multi-National companies whoseshare of 75% in the market is down to 35%.
Trade of medicinal plants has crossed $900M already.
There are 170 biotechnology companies in India, involved in thedevelopment and manufacture of genomic drugs, whose business is growingexponentially.
Sequencing genes and delivering genomic information for bigPharmaceutical companies is the next boom industry in India.
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Whats Going On ? Engineering / Mfg
Significant foreign investment with key global players setting
shop- automobiles, steel, energy & process
Auto exports rise 30%+; Commercial Vehicles are hot picks
Private Equity Firms beef up investments in Auto sector
India increasingly being recognized as a low cost production
base - outsourcing of manufactured goods
100% foreign investment allowed for a variety of Oil & Gas
activities
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Bharat Forge has the world's largest single-location forging facility, its clients includeHonda, Toyota and Volvo amongst others.
Hero Honda with 1.7M motorcycles a year
is now the largest motorcycle manufacturerin the world.
India is the 2nd largest tractor manufacturerin the world.
India is the 5th largest commercial vehiclemanufacturer in the world.
Ford has just presented its Gold WorldExcellence Award to India's Cooper Tyres.
Suzuki, which makes Maruti in India hasdecided to make India its manufacturing,
export and research hub outside Japan.
Hyundai India is set to become the globalsmall car hub for the Korean giant and willproduce 25k Santros to start with.
By 2010 it is set to supply half a millioncars to Hyundai Korea. HMI and Ford.
The prestigious UK automaker, MG Roveris marketing 100,000 Indica cars made byTata in Europe, under its own name.
Aston Martin contractedprototyping its latest luxurysports car, AM V8 Vantage,to an Indian-based designerand is set to produce the
cheapest Aston Martin ever.
Whats Going On ? Auto
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Whats Going On ?
India story becoming integral strategy for a number of foreign VentureCapitalists from across the globe
Over $1.1 billion invested in 66 Indian companies in 2004
Most of the funding went to later stage, publicly-listed Cos
Shift in focus from early stage opportunities to growth & expansionopportunities
Media, Airlines, Hospitality, Entertainment & Real Estate are the flavor with PEinvestors
PRIVATE EQUITY
Maintained incredible growth, with new Airlines, Hotels, Transport andCommunications witnessing the highest growth at 20%+ in 2005
Highest contributor to GDP
Significant potential for employment generation - Tourism, Hotels, Airlines
Leading global Airline Cos chart India strategy ; spurt in low cost Airlines 4
SERVICES
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Whats Going On ?HI-TECH / TELECOM
Software and ITeS industry continue to chart double digit growth - revenuesto top $ 28 bn
Software & services exports to reach US % 17 bn in 2005
ITeS / BPO, the fastest growing segment, to reach $ 5.7 bn this year
Telecom sector deregulated - to attract $ 1 bn investments in 2006-07
Direct Investment cap in certain telecom services increased to 74%
Mobile subscriber base expected to touch 155 mn by 2009, teledensity
expected to increase upto 18%
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Whats Going On ? : BPO The domestic BPO sector projected to increase to $6 Bn in 07 and reach $65 Bn by 2015. (McKinsey).
The outsourcing includes a wide range of services including design, architecture, management, legal services, accountingand drug development and the Indian BPOs are moving upin the value chain.
There are about 200 call centers in India with a turnover of
$2 billion and a workforce of 150,000.
100 of the Fortune 500 are now present in India compared to 33 in China.
Cummins of USA uses its R&D Centre in Pune to develop the sophisticated
computer models needed to design upgrades and prototypes electronicallyand introduce 5 or 6 new engine models a year.
Business Week of 8th December 2003 has said "Quietly but with breathtakingspeed, India and its millions of world-class engineering, business and medicalgraduates are becoming enmeshed in America's New Economy in ways most
of us barely imagine".
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Whats Going On ? Foreign MNCs
Top 5 American employers in India:
General Electric: : 17,800 employeesHewlett-Packard : 11,000 employeesIBM : 6,000 employeesAmerican Express : 4,000 employeesDell : 3,800 employees
General Electric (GE) with $80 Million invested in India employs 16,000 staff,1,600 R&D staff who are qualified with PhDs and Masters degrees.
The number of patents filed in USA by the Indian entities of some of the MNCs(upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125,Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.
Staff at Intel (India) has gone up from 10 to 1,000 in 4 years to reach 4000 staffby 07 end
GE's R&D centre in Bangalore is the company's largest research outfit outsidethe United States.
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Addresses of the futureWhats going on ? Global R&D Trends
Emerging markets & Available Talent is shifting R&D Eastward
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Whats going on ? Global R&D Trends
China & India are emerging as Global Research hubs
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Whats going on ? R&D
Established in 2002 with just two people, has scaled up to 20 specialists today. Plans exist to double itsheadcount by the beginning of 2004. Is totally dedicated to high-level research on futuristic
technologies, with special focus on emerging markets.Bangalore.
Established in 1996 with 10 people, has scaled up to 895 people today, and will be further scaled up to1,000 before the end of 2003. Works on developing software for Philips products. Almost all Philipsproducts that use software have some contribution from this centre. It is the largest software centre forPhilips outside Holland.
Innovation Campus, Bangalore.
Established in November 1998 with 100 people, the Lab swill be scaled up to 1500 by the end of 2004.That will double 3000 staff by middle of 2006. It is the largest single-location R&D lab for SAP outside
Walldorf, Germany. Nearly 10 percent of SAP's total R&D work is carried out from the Indian lab.Labs India, Bangalore.
Established in 2001. Works on all IBM software like WebSphere, DB2, Lotus, Tivoli and Rational. Thecentre has added many new areas of activities such as middleware and business intelligence.
Software Lab,Bangalore, Pune.
Established in 1988 with 20 people, has scaled up to 1,000 today. Drives nearly 60 percent of thecompanys global development delivery.
R&D Centre,Bangalore and Mumbai.
Established in mid-1999 with 20 people, has scaled up to 500 people today. Does work mainly onSun's software which includes Solaris and Sun One.
India Engineering Centre,Bangalore
The Bangalore centre was established in 1994; the Hyderabad one in 1999. Oracles largestdevelopment centre outside the US currently has 6,000 staff. Does work on Oracle's databaseproducts, applications, business intelligence products and application development tools, besides otheractivities.
India Development Centre, Bangalore,Hyderabad.
Established in 1984. The centre started with just 20 people, now has 900 people working on VLSI andembedded software, which goes along with a chip or into the chip.
R&D Centre, Bangalore
HighlightsR&D Centre
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Structure
India Economic Overview
Trends in Key Sectors of Indian Industry
Key Success factors in India
Key Challenges for Search Firms
Conclusion
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Indians are more aligned to western styles of management command andcontrol is not very effective
Life term employment is no longer seen as desirable, or in the best interest of
the Executive
India is a very diverse and heterogeneous country there is no one right answer
Indian Managers have grown with the freedom to express their viewpoint
should not be viewed as disrespect for the superior or being disloyal
Designation, Titles and career Promotions very important for Indian Managers
Indians pay greater regard to intellectual ability rather than craftsmanship -
Technical staff is typically paid lower than Managerial talent
Indians tend to over-commit and have difficulty in saying No need to have amonitoring and review mechanism in place
Factor #1: Bridging Cultural Gaps
Understanding Cultural issues is critical for Success
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Factor #2 Empowered Organization
High caliber Managers demand inherent trust from their Employers
Within certain global norms, most successful organizations empower their
local management teams to achieve extraordinary results
The diversity and uniqueness of the Indian market requires a customized
approach e.g., value for money culture, limited brand loyalty, etc.
most MNCs in India have resorted to localized advertising as opposed to
global advertising
Opportunity for the Manager to participate and contribute in decision
making is critical to retention
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Factor #3 : Invest in Developing Local management
Career Opportunities
Opportunities for career growth are extremely important at senior managementlevels Indians are very mobile and appreciate global opportunities
Glass ceiling of any kind is seen as a major disincentive western companieshave made major headway in this area almost all Western companies in Indiaare run by local managers
Implement a robust succession planning system
PROFESSIONAL DEVELOPMENT
Training and skills up gradation
Ongoing transfer of knowledge / best practices send Indian Managers for shortassignments, familiarization trips to home country, etc
Provide opportunity to participate in international project teams and to contributeto the Parent organisation
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Factor #4 Broad based Commitment
India strategy must have the backing of the entire senior management team at HO
Significance of India in overall global strategy of the Parent company is extremely
critical in attracting high caliber talent
Size and scale of investment signals the seriousness of the company to commit to India
for the long term
Successful companies have looked to leverage India beyond just the domestic market
opportunity
R&D GE, General Motors, Bell Labs, Monsanto, Daimler Chrysler
Outsourcing Citibank, Ford, Agilent, HSBC, IBM, GE, Nissan
Engineering & Software Development Centers - Philips, Canon, ABB, AllianzCornhill, DuPont, LG, Intel, Cisco, Honeywell
Export Hub Hyundai, Bosch, Suzuki, Whirlpool, Volvo
Sourcing Base - Wal-Mart, GAP, Coca Cola, Pepsi
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Share the vision and direction of the company Employees perform
better if they identify with the organisation and know where it is
headed
Actively cultivate a sense of belonging through regular engagementand communication with Employees
Create an environment of openness and accessibility
Integrate into the local environment and be seen as a responsiblecorporate citizen
Build Pride in the Company
Factor # 5 Build an Employer Brand
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Structure
India Economic Overview
Trends in Key Sectors of Indian Industry
Key Success factors in India
Key Challenges for Search Firms
Conclusion
The Changing Environment
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The Changing Environment
Booming Indian economy Leading to phenomenal growth of Executive Search firms in India
Clients are looking for trusted business advisors Search firms need to transform themselves
Global shortage of right talent companies need specialist who help themhire..
Increasing Indian Companies are setting up businesses overseas. Indian
talent gaining recognition in the Global Landscape.foreigners looking jobsin India, New MNCs Coming in.
Search market in India estimated around $ 150 million Growing at a healthy clip of 50% every year
Increased competition at higher end of the market More international search firms setting up shop in India. Second round of consolidation expected. MNCs acquiring local firms to get a toe hold in the Hot Indian Market.
Indian Executive Search Industry is at a Crossroad
A few trends in Executive Search
The Changing Environment
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The Changing Environment
Hiring challenges have a different texture in India
Hiring challenge that Search Firms & Cos. face
Compensation (usually the number one in most cases)
The canvas / scope available for the Role & Organization
Future growth
Empowerment
Decision-making freedom
The parent company not open to feedback/market realities
Patience! For a market like India to pay you back
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Structure
India Economic Overview
Trends in Key Sectors of Indian Industry
Key Success factors in India
Key Challenges for Search Firms
Conclusion
The Changing Environment
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The Changing Environment
Its going to be an exciting ride Are you game ?
Conclusions
Indian economy is growing fast. Presents a variety of
opportunities.
India presents itself as both a source & destination for Talent.
Changing aspirations & environment in India are creating an
exciting but complex Talent needs.
The India story has a compelling present & Future rationale
Intellectually demanding sectors seem to be growing faster
Several challenges exist & can potentially derail India
Sustainable Talent advantage in a politically stable growing
Economy
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Questions
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Backup
?
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Is the economy overheating?
3
4
5
6
7
8
Jul'05
O
ct'05
Jan
'06
A
pr
'06
Jul'06
O
ct'06
Jan
'07
3
4
5
6
7
8
9
Q3'04
Q4'04
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Consumer prices, y-on-y % change RBI monetary policy tools (%)
Source: EIU Source: RBI
Short-term lending rate
Short-term borrowing rate
Cash reserve ratio
I h h i ?
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Is the economy overheating?
Source: Jones Lang LaSalle
Delhi grade A office space
0
50
100
150
200
250
1Q
01
1Q
02
1Q
03
1Q
04
1Q
05
1Q
06
0
50
100
150
200
250
1Q
01
1Q
02
1Q
03
1Q
04
1Q
05
1Q
06
Mumbai grade A office space
Rental Value Index Capital Value Index Index base Q101 = 100
I th h ti ?
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Is the economy overheating?
Source: Yahoo
Bombay Stock Exchange Sensitive Index
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1/6/20
03
1/6/20
04
1/6/20
05
1/6/20
06
1/6/20
07
I h h i ?
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Is the economy overheating?
Capacity utilisation higher than any time in pastdecade
Severe skills shortage sending wages soaring Ave wages to rise 13.8% during 2007
Deteriorating trade balance
-200
-150
-100
-50
0
50
100
150
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Imports
Exports
Trade balance
Merchandise trade, US$ billions
Source: EIU
S i f th
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Scenarios for growth
9% growth is possible, but unlikely
More realistic is growth of around 7.2% Improvements happen, but slowly, hampered by politics (eg
SEZs)
Serious shocks could derail growth to below 6%: Oil price hike
India imports 70% of its oil Oil is 31% of Indias import bill
Global IT bust (or increasing protectionism)
String of poor monsoons
Worst case (unlikely): war with Pakistan
Commercial Activity Centers
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Commercial Activity Centers
2
New Delhi
Bangalore
Mumbai
Pune
Chennai
Hyderabad
ConsumerGoods, ITeSPharma,Telecom,FinancialServices
Banking, FinancialServices,
Consumer Goods,Private Equity,Telecom
Auto,
EngineeringITeS,Pharma
IT, ITeS,LifeSciences,PrivateEquity
Auto,Engineeringand IT
IT, ITeS,LifeSciences
THE POLITICAL & ECONOMIC
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THE POLITICAL & ECONOMIC
LANDSCAPE
1947 Late 70s
ERA OF SELFRELIANCE AND
SOCIALISM
State owned monopolies Industrial LicensingPolicy
High Import TariffsFDI discouragedLocal industry notglobally competitive
Rising inflation
Poor developmentmodel, fails to deliver
growth
1980s
LIBERALISATIONBY STEALTH
Effort to reformReducing barriersto export
Import substitutionpolicy
Limited industrialde-regulation
Some reforms totaxation
Mere tinkering at theedges of the existingdevelopment model.
Realization forstructural reform
1990s
TRANSITION TO AMARKET DRIVEN
ECONOMY
Economy opens upto the rest of theworld
Beginning ofEconomic Reforms
Licensing regimeabolished
Emergence of theIndian Softwareindustry
Macro-economic
stabilization ;template for longterm growth in place
2005
INDIA : AN
INTEGRAL PART OFTHE
INTERNATIONALECONOMY
2000
100% foreignownership allowedin most sectors
Privatization across
sectors India the 3rd most
attractive FDIdestination
Emergence of Indianmultinationals
Economic reformsdeeply rooted,
gradually gettingdivorced from
politics
3.5 %
6%
8%
GDP
4
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WIP
India: Technology Superpower
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India: Technology Superpower
Geneva-based STMicroelectronics is one of thelargest semiconductor companies to developintegrated circuits and software in India.
Texas Instrumentswas the first to openoperations in Bangalore, followed by Motorola,Intel, Cadence Design Systems and several others.
80 of the Worlds 117 SEI CMM Level-5 companiesare based in India.
5 Indian companies recently received the globallyacclaimed Deming prize. This prize is given to anorganization for rigorous total quality management(TQM) practices.
15 of the world's major Automobile makers areobtaining components from Indian companies.
This business fetched India $1.5 Billion in 2003, andwill reach $15 Billion by 2007.
New emerging industries areas include, Bio-Informatics, Bio-Technology, Genomics, ClinicalResearch and Trials.
World-renowned TQM expert Yasutoshi Washiopredicts that Indian manufacturing quality will overtakethat of Japan in 2013.
McKinsey believes India's revenues fromthe IT industry will reach $87Billion by 2008.
Flextronics, the $14 billion globalmajor in Electronic Manufacturing Services, hasannounced that it will make India a global competencecentre for telecom software development.
India: Trade
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Tata Motors paid $ 118 million to buy Daewoocommercial vehicle Company of Korea.
Ranbaxy, the largest Indian pharmaceutical company,gets 70% of its $1 billion revenue from overseasoperations and 40% from USA.
Tata Tea has bought Tetley of UK for 260M.
India is one of the world's largest diamond cuttingand polishing centres, its exports were worth $6Billion in 1999.
About 9 out of 10 diamond stones sold anywhere in
the world, pass through India.
Garment exports are expected to increase from thecurrent level of $6 billion to $25 billion by 2010.
The country's foreign exchange reserves stand atan all-time high of$120 Billion.
India's trade with China grew by by 104% in 2002 andin the first 5 months of 2003, India has amassed asurplus in trade close to $0.5M.
Mobile phones are growing by about 1.5Million amonth. Long distance rates are down by two-thirds in
five years and by 80% for data transmission.
Wal-Mart sources $1 Billion worth of goods fromIndia - half its apparel. Wal-Mart expects this toincrease to $10 Billion in the next couple of years.
GAP sources about $600 million and Hilfiger $100million worth of apparel from India.
Indians in the USA
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Indians in the USA.
Of the 1.5M Indians living in the USA, 1/5th of them live in the Silicon Valley.
35% of Silicon Valley start-ups are by Indians.
Indian students are the largest in number among foreign students in USA.
Statistics that show:
38% of doctors in the USA,
12% of scientists in the USA,36% of NASA scientists,
34% of Microsoft employees,
28% of IBM employees,
17% of INTEL scientists,
13% of XEROX employees,
are Indians.
1. India 44%
2. China 9%3. Britain 5%
4. Philippines 3%5. Canada 3%6. Taiwan 2%7. Japan 2%8. Germany 2%9. Pakistan 2%
10. France 2%
US H1-B Visa
applicants country
of origin
Some Economic IndicatorsConclusions
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Some Economic Indicators
4Indian Economy poised for sustained growth of 8% over the next 10 years ;GDP growth pegged at 8%
450% of Indias population is under 25 years of age and 80% under 45 years
4 Increasing urbanization has led to changing consumption and spending patterns
4India, the third most attractive Foreign Direct Investment destination, next to
China and US
4FDI inflows in 2005 were more than double last year
4Strong emphasis on English as the means of education, with a specialistthrust on science and maths
4One million new English speaking graduates pass out every year
4High quality technical skills driving India towards becoming the global R&D
hub
4More than 120 MNCs have already set up R&D labs in the country
4India increasingly being recognised as a low-cost production base -
outsourcing of manufactured goods is the new trend
Conclusions
Recommended