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    Global transformation of organizations

    In the 18thcentury Adam Smith pointed thetransformative effects of Division of Labour

    In the 19thcentury, David Ricardo highlighted

    the importance of International Trade

    Michael Porter, in the 20thcentury made the

    case forIndustrial Zones, Geographical

    diversity, physical capital, training & businessstrategy.

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    Global transformation of organizations

    John NaisbittsTheory of Evolution from Mega Trends (7 waves ofevolution):

    1. When people started leaving African Savannah around 40,000 BC.

    2. Wave two propelled Agricultural Revolution during 5000 BC-1500 AD.

    3. Wave three incubated Industrial Revolution1500 1850.

    4. Wave four all about Transport & Telecom Revolution (18501940).

    5. Wave five was the Computational & Electro-Chemical Revolution1940-

    1975.

    6. Wave six set the platform for the Network era1975-2002. (Accelerated

    Globalization)

    7. Wave seven is underway, about Knowledge & Collaboration2002till

    date.

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    INDIA

    Indias GDP hovers around 9% with 58% population inagriculture

    India is the 2ndlargest producer of fruits & vegetables in the

    world and accounts for 10% of worlds fruit products but, 43% is

    wasted because of lack of cold storage facilities & energy

    infrastructure

    Just 1.3% fruits & vegetables get processed in India as against

    80% in US & Malaysia, 70% in France & 30% in Thailand.

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    Doing BusinessWorld Bank Investor

    Protection Index

    9.78.7 8.3 8 8

    6 6 6 5.7 5.3 5.3 5.3 5.3 5.3 5 5 4.7

    3.3

    0

    2

    4

    6

    8

    10

    12

    Higher Value is Better

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    ILO Report

    If Asia continues to grow at 4.6 to 4.7%, It

    would account for 30 to 31% in 2020 from

    24.7% now.

    Indias share of regions GDP is expected to

    rise from 7.2% to 8.7% & even as high as 10%

    by 2020.

    Indias short-run share of 2020 World GDP is

    estimated at 3% & in long-run it is 2.7%

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    ILO Report Continued

    Chinas share of World GDP in 2020 will be 9.7%

    (Shortrun) and 8.7% in long-run

    Between 2006 & 2015, employment in agriculture

    will decrease by 160 million. The services sector will provide (40.7%), the highest

    employment of the regions total employment.

    Challenges: Poverty and Distribution of Wealth

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    CRM

    CRM is viewed by most organizations as an IT

    Initiative. But, where the human element is

    deficient, CRM fails return on Investment. (

    Surya Bharadwaj, MD, Siebel India, ET, 6THJuly2005)

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    Indiaa better place for Business, World

    Bank2008 Edition Doing Business

    India Others

    Rank -120/178 Singapore tops

    China83rdRank

    Indian export administrative procedure

    takes 18 days from 27 days earlier

    These ranks are based on 10 indicators of

    business regulationtime, cost to meet

    govt. requirements in business start up,

    operation, trade, taxation & closure

    Asia is 2ndfastest reforming region in the

    world

    Rankings do not reflectmacroeconomic

    policy, quality of infrastructure, volatility,

    investor perceptions, or crime rates.

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    Indiaa better place for Business, World

    Bank2008 Edition Doing Business

    India Others

    Closing business6 to 10 years In OECD average of >2 years

    About 60 tax related payments OECDs average 15

    Worse Labour reforms86thposition

    Worst in enforcing contracts177th

    position (eg. It takes 4 years to settle

    industrial dispute between 2 commercialestablishments)

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    Indiaa better place for Business, World

    Bank2008 Edition Doing Business

    Of all Indian cities, Hyderabad is the easiest to

    conduct business , followed by Bangalore and Jaipur.

    Mumbais rank is 11.

    Time to obtain business license:In Bhubaneswar159 days

    In Ranchi522 days

    Time to Register Property:In Hyderabad35 days

    In Kolkata155 days

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    Business Climate

    India has slipped 13 places to 64thrank in

    global list of 121 countries

    Reason for the aboveinflation & Differences

    between political parties

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    Trends in world military spending

    As per StockholmInternational PeaceResearch Institute

    World military spending

    grew to an estimated$1.34 trillion in 2007, a6% increase over 2006

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    Breakdown of 2007 world military expenditures

    45

    21

    5 5 4 4 3 3 3 3 2 2

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    % of World Military Spending

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    Defense Collaboration

    IndiaFrance plan to co-produce surface to

    air missiles (SAM)

    Brahmosbetween India & Russian

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    Globalization

    What is globalization?

    Is only trade & commerce

    Websters dictionary Making worldwide in scope andapplication

    When did globalization start?

    Initially globalization of human beings took place

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    Globalization

    Major contributors to the globalizers:

    Traders

    Preachers

    Adventurers

    Warriors

    All the above were in place in 6000 B.C.

    Slowly empires & new settlements were formed

    Arkikamedu in Tamilnadu was major trading centre for Romans from1stcentury after Christ.

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    Globalization

    Malabar coast was the trading centre for Arabs,Persians, Armenians & Jews.

    Global trade momentum took place after 1300A.D with improvements in ship design &techniques. Introduction of steamship in 1780gave major boost to trade.

    Until industrial revolution, Indian made textilesremained the biggest major manufacturing exportin the world.

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    Globalizationshare of Worlds GDP

    33

    25

    15 128

    4 3 46

    0

    5

    10

    15

    20

    25

    30

    35

    40

    0

    5

    1015

    20

    25

    30

    35

    40

    45

    1 1500 1820 1870 1913 1950 1973 2001 2008

    India ChinaUSA Japan

    Europe Rest of the World

    2 per. Mov. Avg. (Rest of the World)

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    Globalizationshare of Worlds GDP

    India China Japan USA EuropeRest of

    the World

    1 33 27 1 0 14 25

    1500 25 25 3 0 21 26

    1820 15 33 3 2 27 20

    1870 12 17 2 9 38 22

    1913 8 8 4 21 39 20

    1950 4 5 3 28 31 29

    1973 3 5 8 23 29 32

    2001 4 7 8 23 21 37

    2008 6 13 7 21 19 34

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    G8 countries share in Worlds GDP

    68 68.3

    6667 67

    66

    64

    60

    58.4

    52

    5456

    58

    60

    62

    64

    66

    68

    70

    1992 1994 1996 1998 2000 2002 2004 2006 2008

    US, Japan, Germany, Britain, France, Italy, Canada & Russia

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    Emerging Markets share in worlds GDP

    0

    2

    4

    6

    8

    10

    12

    14

    1992 1994 1996 1998 2000 2002 2004 2006 2008

    China, India, Mexico, Brazil, & South Africa

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    Globalization

    Indias GDP was 25% of world GDP in 1700.

    Portuguese trader, Tom Pires wrote that Malacca in 1512represented 61 nations with 84 languages spoken at port.

    The spread of major religions like Buddhism, Christianity,

    & Islam gave another push to Globalization.

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    Globalization

    Modern globalizers apart from businesses:

    NGOs like Amnesty International

    Human Rights Watchby creating global consciousness of humansuffering across nations

    The ambition to control the whole world & greed have been giving birthto so many empires throughout the history. (e.g. Sole super power, UShas 700 military installations world over)

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    Globalization

    Now most of the things we use today frompens, jeans, shirts, cars, etc. have some partsdesigned in other country. Therefore, we areall agents of globalization.

    New group of Globalizers:

    Students

    Patients Adding speed to Globalization Doctors

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    Globalization

    Difference between the globalization in the past andmodern time:

    velocity with which ideas & products are transferred.

    Ever growing volume of consumers, products & theirideas, their variety & the resultant increase in the visibilityof process

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    GlobalizationGood or bad?

    Top 1% of rich have more wealth than bottom 90%combinedUS Federal Reserve Survey

    < .5 % of households hold > 60% of nations personal wealth

    Glaring inequities between developed 7 developing countries

    on NAMA & agricultural issues.

    India has been battling for service export issues

    INDIA has FTAs with several groups of countries with a focus

    on AfricaIndiaAustralia FTA has come to feasibility study

    Effect on Healthvery seriously. This in turn has been

    creating variety of health fitness businesses.

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    Globalization & unstable economies - Reasons

    In the last 6 years foreigners held $5.7 trillion of USstocks, & bonds.

    Today global economy baffles everyonecorporate

    executives, bankers, economists & ordinary people.

    Countries are growing economically moreinterdependent & politically more nationalistic

    Countries are trying to maximize their own advantagesrather than make the system work for everyone

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    Economic Systems

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    Economic Systems The history of ideological conflict ended in 1989 with the fall of

    soviet union and triumph of free market capitalism - Yoshihiro

    Francis Fukuyama, an American philosopher, political economist,and author.

    Democracy & the free market are rivals, not allies John Gray,conservative political thinker & former political advisor to Margaret

    Thatcher.

    Democracy & capitalism have very different beliefs about theproper distribution of powerLester Turow, Economist

    Democracy believes in a completely equal distribution of power,while the other (capitalism) believes that it is the duty of theeconomically fit to drive the unfit out of business and intoeconomic extinctionsurvival of fittest.

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    Economic Systems

    Moral story:

    60 (30 from Delhis elite schools & the other

    30 were homeless & lived on streets near

    railway station) children were working

    together for couple of weeks.

    The above childrensfacilitator asked each one

    of them to name a child in the room they

    were learning to respect.

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    Economic Systems

    Forbes magazine forecasts that by 2017, India will have most

    billionaires in the world.

    India will be 3rdlargest economy in the world.

    But to realize the democratic dividend India has to take care of

    children, including malnourished & undereducated (who are >

    than the total).

    Two decades ago India thought to move towards capitalism. But

    downtrodden and the poor will not give up the democracy

    Recent surveys show that Indians are happy with the opening of

    markets.

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    Economic Systems

    Which economic system is better?

    It is unfinished task which began 2400 years ago by by anIndian monarch.

    Kautilya, Chandraguptas CM who wrote the Arthasastra

    (science of wealth) in the 4thcentury B.C. is considered theworldsfirst economist.

    He aid down detailed requirements for increasing GDP ofthe state. On this foundation, Chandraguptas grandson,Emperor Ashoka , wish to construct a state that wouldprotect the rights of all living beings, human & animal, andalso protect the forests & rivers.

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    Economic Systems

    In the lifetime of Ashoka did not realize his vision to

    harmonize the science of wealth & power with ethics of

    humanity and nature.

    Communism and free-market capitalism in its present formhave proven their abilities to destroy the earth and corrupt

    democracies.

    So, what is required?

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    Black Market - Economy

    Black market consists of :

    Unaccounted assetsmoney, property etc.

    Grey market has presence across all sectors starting fromIT, FMCG, Pharmaceuticals, liquor, automobile, designerlabeled clothing, sports wear, music, films, vehiclecomponents, books, food products, currency, computersoftware)

    l k k f d

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    Black MarketCounterfeit Products

    5/6thof Yamaha bikes sold in the world

    are fakeMajor Hubs of counterfeit products

    10% of the personal care

    products

    China, S.E. Asia, India, Turkey, middle

    eastern countries like Syria, UAE, Russia,

    Ukraine, Kazakhstan, Poland, Bulgaria

    Paraguay

    10% of auto parts in UKEconomic impact on US companies due to

    counterfeit products is costing between

    US 200 & 300 billion annually.

    10% of global pharma market

    has counterfeit drugs - WHO

    Globally, trade in counterfeit & piratedgoods cost economy $650 billion annually,

    representing about 9% of total world

    tradeAssocham Report.

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    Black MarketIndian Economy

    Estimated annual losses due to piracy is Rs.30,000 cr.

    Random search reveals the following:

    400 companies beginning with word Reliance, 136Tata, 217

    Intel, 60Nike

    FMCG is alone facing losses of Rs.8000 cr. Annually (15% of

    total market size)

    Dabur Indiaseized 70,000 bottles of worth over 90 lakhs &

    over 2 lakh labels in Kolkata.

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    Black MarketIndian Economy

    HLL & Coca-Cola also acknowledge the danger of spurious

    drinks (10% drinks are fake)

    Entertainment industry is worst hit: Piracy levels are 60-90%

    Reason for high piracyhigher price difference

    75% of the Rs.800 cr. car audio market is grey.

    Fake medicines account for 25% of total market of Rs.35,000

    cr.

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    Black MarketCounterfeit Products

    10-12% of all global sports wear are counterfeits.

    Europe alone accounts has 11% of the clothing & footwearcounterfeit products

    Over 65% of the watch market is unorganized & consist of majority

    of fake watchesSmuggled cigarette in India worth Rs.1700 cr. Accounting for 5-7%of total market.

    10-30% of cosmetics & packaged foods are counterfeited

    95%Memory cards are in the grey market

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    Cure to Black Economy

    Expansion of organized Retail Market

    Strict regulatory mechanism

    Severe penalty & punishments

    Reasonably pricing of original products

    The total tax package on car stereo, including, VAT, customsduty, excise duty, works out around 66% - too steep to fightgrey market

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    Black MarketIndian Economy

    Lack of security & incentives to policyimplementers

    Lack of adequate personnel to curb the menace

    Lack of political will

    Nexus between politician, bureaucrat & unethicalbusiness person

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    Cure to Black Economy

    1

    Copyright is dealt by Human ResourceMinistry

    2 Trade marks & patents are covered by

    Commerce Ministry

    3 Legal provisions of intellectualproperty fall under Law Ministry

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    Forecasting

    WPI - WHOLESALE PRICE INDEX)

    CPI

    SPI

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    Unit - II

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    Unit-II

    Economic & BusinessDevelopment

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    Growth & Development

    Commission on growth & developmentReport (2008) titledstrategies for sustained growth and inclusive development

    The above commission is supported by World bank, U.K. & theNetherlands

    In 1990s, the development economists from India & few otherdeveloping countries downplayed the concept of growth

    Commissions detailed analysis found 13 countries that maintainedconsistent growth rate of 7% and over for 25 years:

    Brazil, Botswana, China, Hong-Kong, Japan, South Korea, Malaysia,Malta, Oman, Singapore, Indonesia, Taiwan & Thailand.

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    Growth & Development

    India & Vietnam are poised to join this group shortly. Because they form adiverse group.

    They benefitted from Globalization; maintained macro-economic stability;sustained high saving rates & investment, they let markets allocate resourcesto a substantial extent and finally had a committed, credible, & competentgovernment.

    The above points are consistent with so-called Washington consensus of the1990s, which significantly conditioned rich countries advice to thedeveloping world. Privatization, free trade & free markets were its mantra.However, china and India never implemented the above policies in full.

    R d i f i d h

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    Recommendations for sustained growth

    Ingredients for Success

    Invest at least 25% of GDP. Investments to be funded

    predominantly by domestic savings

    5-7% of investment should go to infrastructure & 7-8% in

    education, training & health

    Facilitate inward technology transfer, FDI & exploit opportunities

    for trade

    Accept competition, structural change & urbanization

    Environmental concerns to be addressed right from beginning ofthe projects

    Equality of opportunity esp. for women

    d f d h

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    Recommendations for sustained growth

    Policies to be avoided

    Subsidizing energy

    Using civil service as the employer of the last resort

    Reducing fiscal deficit by cutting down on infrastructure

    Protecting individual sectors indefinitelyUsing price controls to manage inflation

    Banning exports to maintain low domestic prices

    Under-investing in urban infrastructureUnderpaying public servants

    Allowing rapid exchange appreciation in a short time

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    FDI

    Reasons for attracting more FDI:1. Progressive liberalization of FDI policy

    2. Simplification of procedures

    Reasons for Less FDI:

    1. India has many restrictions

    2. Cheaper finance is not available to SSIs

    Di t ib ti f I di t d FDI d i

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    Distribution of Indias outward FDI during

    2007-08

    Singapore, 35.2

    Netherlands, 23

    British Virgin

    Island, 7

    Others, 33.5

    Investments above $5 Million

    Di ti f I di t d FDI d i

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    Direction of Indias outward FDI during

    2007-08

    Singapore, 35.2

    Netherlands, 23

    British Virgin

    Island, 7

    Others, 33.5

    E i t l Ch ll

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    Environmental Challenges

    G8 leaders main agenda was, climate,

    economy & security during their meet on July

    7, 2008.

    E i t l Ch ll

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    Environmental Challenges

    5k/6k satellites out of are dead in the space

    150 k debris of soccer ball size are lying waste Climate change may cost Indian economy by 9 to 13% of

    GDP by 2100according to Carbon Disclosure Project, U.K.

    (UNIDO)

    Greenhouse gas emissions will soar if India sustains 8%growth of its GDP

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    Environmental Issues

    World-wide > 3.5 million mothers & children under 5 die avoidabledeaths due to under nutrition.

    178 million children under 5 are stuntedvast majority fromAfrica & south central Asia

    Millions of children are disabled permanently by the physical &mental effects of poor dietary intake in the earliest months of life.

    51% of children in India under 5 are stunted. This is third (34%) of

    the global.

    Anemia affects to 79% of the children in the lowest economicstrata & 64% in the better off families.

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    SEZ

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    SEZ

    About 453 SEZs will come up by 2009.

    IT, ITES, electronic hardware, semiconductor havetaken lions share of 283/453 SEZsIssues:

    -Land acquisition is contentious issue

    -Development of external Infrastructure-Lack of townships with all facilitieshealth,

    education, etc.

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    Regional share of SEZs

    North, 19

    South, 44

    East, 6

    West, 31

    Of total approved SEZs

    North

    South

    East

    West

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    Regional share of SEZs

    AP, 72

    Tamilnadu,

    59

    Karnataka,41

    of 182 approved SEZs within southern region

    AP

    Tamilnadu

    Karnataka

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    DEFINITION

    Sustainable development is a pattern of

    resources use that aim to meet human needs

    while preserving the environment so that the

    needs can be met not only in the present , butalso in the indefinite future.

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    Unit - III

    LPG

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    LPG

    INDIAS political freedom is 60 years old & economic freedom from1991.

    Growing at about 8-9% annually from earlier HINDU growth rate of3.5%.

    It has more than $300 b forex reserves.

    It has talented people from literature and art, to science andengineering, to business and finance.

    it has produced new enterprises & entrepreneurs such as MittalSteel, DLF, Reliance, Bharti, Dr. Reddys, Ranbaxy, Infosys, andmore

    Indias 2nd Independence status by 2035

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    India s 2 Independencestatus by 2035

    1. Some of the worlds largest enterprises will be of Indian origin

    esp. in basic industries such as steel, copper, aluminum etc.

    2. India will have the 2nd(1stin some cases) consumer market in the

    world.

    3. India will partner with strange countries in search of industrial,

    agricultural, energy and talent resource around the world.

    business partners will include, Bolivia, Venezuela, Malaysia, Iran,

    Egypt, African countries.

    It will gain significant political clout by 2035. it will become part ofG8 along with China. It will be given permanent seat in UN Security

    Council & will be asked to provide leadership level talent to world

    bodies such as World Bank, ILO, WHO & IMF.

    Indias 2nd Independence status by 2035

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    India s 2 Independence status by 2035

    INDIA has 4 distinctive advantages:

    1. India's demographics

    2. Indian Diaspora of more than 20 million NRIs

    who wish to contribute to motherland.

    3. Diversity (more than EU)

    4. Democracy (subject to two party system)

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    Present Chindia comparison

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    Present Chindia comparison

    Factor India China Reason

    Quality of Human

    ResourcesTough Yes

    Inadequate

    capacity to pay

    more to get

    skilled

    manpower

    Type of Govt. policyfor SS Units

    Reactive

    After

    several

    represent

    ations

    Proactive Often Inactive

    Competition

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    Competition

    Competition Act came into existence in2002

    Competition Commission of India (CCI)coming up with different code ofcompliance for industry associations tocheck price manipulation & cartelization

    CCI is expecting to get enforcement rightsby the year(2008) end

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    Unit - 4

    I f

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    Infrastructure

    Definition: All facilities &services that are required inthe production of goods &services.

    f

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    Infrastructure

    Energy, Power, Transport, Communication,

    Science & TechnologyEconomic

    Education, Training & Development

    Demographic IssuesPopulation - its density & distribution, Awareness & workethics

    Family structures & changes in themSocial

    Constitution, Electoral Issues, Democracy & its cost Regulatory Issues

    LegislatureLaw making body

    ExecutiveImplementing body

    Judiciaryto ensure L & E are within constitutional law

    Political

    Social Infrastructure

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    Social Infrastructure

    Definition: US still tops the world in Science & Technology

    largely contributed by foreign born scientists

    from China 7 IndiaUS Think-tank, RAND

    Corp.

    Immigration allows the US draw brightest

    talents from the world-pool rather than

    domestic citizens

    HI-B visa cap can be counterproductive to US

    Social Infrastructure Current & Future

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    Social InfrastructureCurrent & Future

    Emergence of multi-polar world of sciencecentersIndia, China, Japan, Western Europe

    & Korea will significantly enhance their ST

    Currently the US, Japan & Europe are the

    dominant players in Science & Technology

    Social Infrastructure in US

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    Social Infrastructure in US

    US accounts for 40% of worlds total spending on R&D

    It had 37% of the researchers in wealthy nations & produced 38%

    of new technologies patented by those countries.

    US employs over 70% of worlds Nobel laureates

    US has 66% of worldsmost cited scientists & Engineers

    US is home for 75% of the worlds top 20 & 40 universities

    Foreigners working in US has increased from 6% in 1994 to 12% in2006

    Foreigners getting bachelor degree in US is 4%

    Social Infrastructure in US

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    Social Infrastructure in US

    Foreigners getting PG degrees in US has increased

    from 18% in 1985 to 28% in 2002

    S&E Ph.D. degrees awarded by US universities to

    foreigners rose from 32% in 1985 to 52% in 1994 &now at constant 40%

    Non-US workforce is 1/5thin the age group of (21-

    35)Source: www.rand.org

    S i l I f t t i I di

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    Social Infrastructure in India

    60 Lakh techers from primary to pre-degree

    70% of the above (42 lakh) work in

    elementary education

    Drop out rates: for every 100 enrolled in class-

    1, high school is completed by only 7 children.

    S i l I f t t i I di

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    Social Infrastructure in India

    The content & nature of bulk of pre-service &in-service training provided to teachers across

    the country is antiquated, irrelevant & ill-

    equipped.

    How to Improve Social Infrastructure

  • 8/13/2019 BE Economic Position

    87/112

    How to Improve Social Infrastructure

    Develop by collaborating & exchangingscholars

    E i I f t t

  • 8/13/2019 BE Economic Position

    88/112

    Economic Infrastructure

    India has 16% of worlds population

    2ndlargest road network in the world with a 3.3. million

    km of roads.

    National highways is 66,590 km

    Indian rail is one of the biggest networks in the world63,221 km.

    T d I f t t D i

  • 8/13/2019 BE Economic Position

    89/112

    Todays Infrastructure Drivers

    What was Wrong What has Changed

    Political Will Lack of political will to

    develop infrastructure

    political will to develop

    infrastructure

    Funding Limited funding by

    Government

    Innovative government

    funding through cess andmultilateral borrowings

    Private Investments Disincentivised due to govt

    regulations

    Govt. regulations

    encourage private

    investments

    User Charges High resistance to pay forinfrastructure facilities

    Lower resistance to pay forinfrastructure facilities

    Interest Rates High interest rates led to

    higher benchmark IRRs

    Lower interest rates led to

    lower benchmark IRRs

    Source:17 Dec. 2007 ET

    E t l D bt

  • 8/13/2019 BE Economic Position

    90/112

    External Debt

    External debt is $221.22 Bin 2007-08

    Short term debt20% ($ 44.31 b)of total debt

    ECB is 28% of the external debt - $62.02 B AS

    ON March 31, 2008.

  • 8/13/2019 BE Economic Position

    91/112

    Auto component Industry

  • 8/13/2019 BE Economic Position

    92/112

    Auto component Industry

    Revenues from Auto ComponentManufacturing industry is going to increase

    from $9.8b in 2005-06 to at least $15b by

    2015. This industry employs 12 lakh (3.8 lakh are

    direct) people & it will require at least 25 lakhs

    over the next 1 decade.(7.5 lakh direct)

    Problems of Auto component Industry

  • 8/13/2019 BE Economic Position

    93/112

    Problems of Auto component Industry

    Auto component manufacturing is a highly-skilled job, which is not taught at engineering

    schools.

    IITs produce the best engineers & most ofthese take up managerial jobs.

    Trends in electronic Gadgets

  • 8/13/2019 BE Economic Position

    94/112

    Trends in electronic Gadgets

    Entry level mobile phones will decline by 2010

  • 8/13/2019 BE Economic Position

    95/112

    Trends in HR

    Corporate Coaching

  • 8/13/2019 BE Economic Position

    96/112

    Corporate Coaching

    Coaching is different from mentoring, it is notprescriptive & allows individuals to know andharness their strengths themselves

    Executive coaches assist in handling underlyingpersonality-related challenges while businesscoaches provide the focus for growth.

    The market for corporate coaching in India isestimated at $2.5 m with a potential to reach$100 m in 5 years.

    HR Trends

  • 8/13/2019 BE Economic Position

    97/112

    HR Trends

    Internal referral in hiring new employees has beengrowing substantially.

    Xansa, Sapient, Honeywell technologies, KPMG, Maruti,Motorola, Subhiksha Trading & Haier are hiring 40-60%through internal referral programme.

    Refer & Earnhow much?

    HR Trends

  • 8/13/2019 BE Economic Position

    98/112

    HR Trends

    Rs.1.12 LakhsJuniper

    Networks

    20,0001.25 LakhsKPMG

    Up to 1.5 lakh + prize offord fiesta

    Spient

    HR Trends - % hired through internal referrals

  • 8/13/2019 BE Economic Position

    99/112

    HR Trends % hired through internal referrals

    42% in IT

    58% in BPOXansa

    Over 40Honeywell,

    Adobe

    Over 50%KPMG

    Trends in Retail Sector

  • 8/13/2019 BE Economic Position

    100/112

    Trends in Retail Sector

    97% is unorganized

    Will reach $21.5 bby 2010

    20 lakh jobs will be

    generated

    Trends in IT & ITES

  • 8/13/2019 BE Economic Position

    101/112

    Trends in - IT & ITES

    50 lakhprofessionals willfall short by 2010

    In LPO79,000jobe

    will be createdby 2015

    $9.5 b BPOindustry willhire 23, lakh

    people by2010

    Trends in KPO

  • 8/13/2019 BE Economic Position

    102/112

    Trends in KPO

    $3 b is current size

    $12 b by 2010

    2.5 lakh will be employed by 2010

  • 8/13/2019 BE Economic Position

    103/112

    Trends in Aviation sector

  • 8/13/2019 BE Economic Position

    104/112

    Trends in Aviation sector

    Aviation sector is growing at 25% pa

    20 lakh jobe will be added by 2017

    Trends in Animation

  • 8/13/2019 BE Economic Position

    105/112

    Trends in Animation

    For the last 3 years it has been growing at

    30% pa

    3 lakh professionals required by 2009

    Trends in Entertainment Industry

  • 8/13/2019 BE Economic Position

    106/112

    Trends in Entertainment Industry

    DTH war hots up with several newplayers including,

    Airtel Digital Reliance Big Entertainment (RBE)Tie up with

    LCD manufacturers, 700 distributors, 500service partners.

    Tata Sky

    Dish TV

    Trends in SEZ Investments

  • 8/13/2019 BE Economic Position

    107/112

    Trends in SEZ Investments

    Investments in SEZs across the country willincrease to 2.84 lakh crores by Dec. 2009.

    The new SEZs will create 21 lakh jobs

    Indian Capital MarketStatus in 2020

  • 8/13/2019 BE Economic Position

    108/112

    Indias over 60 years population will be 166

    million (11.5% of all)

    Population Support Ration PSRa ration of

    the working age population (15-64) to retired

    people, will be almost 9:1.

    As per KPMG Investments ReportIndia will

    have only 7% of its population above 65 in

    2025.

    Indian Capital MarketStatus in 2020

  • 8/13/2019 BE Economic Position

    109/112

    p

    India is well paced compared to

    Japan with 30% population with over 65 years in

    2025

    Singapore23%

    Korea & Taiwan18%

    China13%

    Indian Capital Market Status in 2020

  • 8/13/2019 BE Economic Position

    110/112

    Indian Capital Market Status in 2020

    What is the relationship of capitalmarket with the age profile of countrys

    population

    ?

  • 8/13/2019 BE Economic Position

    111/112

    Challenges to Indian Capital Market in 2020

  • 8/13/2019 BE Economic Position

    112/112

    g p

    Malnutrition

    Illiteracy

    Unskilled labour force

    Gender Gap (Men & Women)

    Jobs for rural folks

    These could pose serious challenges, if not addressed at presenttimes