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india will become superpower in the year 2025.
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There was a time to die for There was a time to die for the nation , now it is the the nation , now it is the
time to live for the nation.time to live for the nation.
“WILL INDIA MAKE IT TO THE LEAGUE OF ECONOMIC
SUPERPOWER IN NEXT 25 YEARS”
Puneet madaanGaurav sadacharSwapnilDevroop panditMohd. AsadShubham Arora
Presented by :
Median Median age by age by 20252025
• USA – 39.3 yearsUSA – 39.3 years• Canada – 42.9 yearsCanada – 42.9 years• Mexico – 32.5 yearsMexico – 32.5 years• Europe – 45.4 yrsEurope – 45.4 yrs• France – 43.3 yrsFrance – 43.3 yrs• Italy – 50.7 yrsItaly – 50.7 yrs• UK 44.5 yrsUK 44.5 yrs• Russia – 43.8 yrsRussia – 43.8 yrs• Japan – 50 yrsJapan – 50 yrs• China -- 39 yrsChina -- 39 yrs
• India -- 31.3 yrs India -- 31.3 yrs
India-youngest country of India-youngest country of the worldthe world
India today is fast changing – India today is fast changing – setting the pace for growth and setting the pace for growth and
stability…stability…
• Slow rate of growthSlow rate of growth
• BureaucraticBureaucratic
• Protected and slowProtected and slow
• Small consumer Small consumer marketsmarkets
• Underdeveloped Underdeveloped infrastructureinfrastructure
•One of the fastest growing One of the fastest growing world economiesworld economies
•Reasonably proactiveReasonably proactive
•Opening up of sectors for Opening up of sectors for investmentinvestment
•Promising consumer Promising consumer marketsmarkets
•Significant investment in Significant investment in infrastructure creation for infrastructure creation for industryindustry
YESTERDAY
TODAY
INDIA ECONOMY –REGIONALDEMOGRAPHICSTOURISM& IT
TOURISM& IT
FINANCIAL &BUSINESSCENTRE
SILICONSTATE
TOURISM& IT
TOURISM& IT
IT & EDUCATON
•GDP $576 Billion. (GDP GDP $576 Billion. (GDP rate 8%)rate 8%)
• Parliamentary form of Parliamentary form of GovernmentGovernment• Worlds largest democracy.Worlds largest democracy.• Worlds 4th largest Worlds 4th largest economy.economy.
• World-class recognition in World-class recognition in IT, bio-technology and IT, bio-technology and space.space.• Largest English speaking Largest English speaking nation in the world.nation in the world.• 3rd largest standing army 3rd largest standing army force, over 1.5Million force, over 1.5Million strong.strong.• 2nd largest pool of 2nd largest pool of scientists and engineers in scientists and engineers in the World.the World.
KEY FACTORS
COND . . . COND . . .
• 5,000 year old ancient 5,000 year old ancient civilizationcivilization
• 325 languages spoken – 325 languages spoken – 1,652 dialects1,652 dialects
• 18 official languages 18 official languages • 29 states, 5 union 29 states, 5 union
territoriesterritories• 3.28 million sq. kilometers 3.28 million sq. kilometers
- Area- Area• 7,516 kilometers - 7,516 kilometers -
Coastline Coastline • 1.3 Billion population.1.3 Billion population.
• 5600 dailies, 15000 5600 dailies, 15000 weeklies and 20000 weeklies and 20000 periodicals in 21 languages periodicals in 21 languages with a combined circulation with a combined circulation of 142 million.of 142 million.
ed By youth ministry
•Foreign direct investment inflows•Fastest growing GDP•Sectoral growth
SECTOR WISE FDI INFLOW IN INDIA
0 5,000 10,000 15,000 20,000 25,000
RussiaIndia
MexicoBrazilChina
CanadaItaly
FranceUK
Germany
JapanUS
GDP (US$bn)
Year 2000 vs. Year 2020 Year 2000 vs. Year 2020 predictionspredictions
India emerging as one of the top global economies
INDIA’S contribution to INDIA’S contribution to world’s GDP growthworld’s GDP growth
SECTOR WISE GDP SECTOR WISE GDP GROWTH OF INDIAGROWTH OF INDIA
FOREIGN CURRENCY FOREIGN CURRENCY RESERVE GROWTH OF RESERVE GROWTH OF
INDIAINDIA
Other key sectors Other key sectors Manufacturing
Sector
• The government has recently set up a National Manufacturing Competitiveness Council• Progressive reduction in taxes and tariffs, India emerging as a manufacturing hub• Manufacturing exports from India likely to grow to USD 300 billion in 2015 from USD 48
billion in 2003
Food processing
• India is the world’s largest producer of tea, sugarcane and milk • Processing industry is nascent but is growing rapidly• FDI of 100% permitted except in special cases, capital goods can be imported freely• All profits from exports are free of corporate tax and minimum alternate tax
Textiles
• The second largest textile industry in the world• Textiles account for 14% of India’s industrial production and 27% of export earnings• National Textile Policy aims to take up the textile and apparel exports from USD 11 billion in
2004 to USD 50 billion in 2010
Other key growth sectors in India include: Telecom, Financial Sector, Insurance, Healthcare, Tourism, Entertainment, etc
The incentives and facilities The incentives and facilities offered to the units in SEZs offered to the units in SEZs
• Duty free import/domestic procurement of goods for Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units development, operation and maintenance of SEZ units
• 100% Income Tax exemption on export income for SEZ units 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years. profit for next 5 years.
• Exemption from minimum alternate tax under section 115JB of Exemption from minimum alternate tax under section 115JB of the Income Tax Act. the Income Tax Act.
• External commercial borrowing by SEZ units upto US $ 500 External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through million in a year without any maturity restriction through recognized banking channels. recognized banking channels.
• Exemption from Central Sales Tax. Exemption from Central Sales Tax. • Exemption from Service Tax. Exemption from Service Tax. • Single window clearance for Central and State level approvals. Single window clearance for Central and State level approvals. • Exemption from State sales tax and other levies as extended by Exemption from State sales tax and other levies as extended by
the respective State Governments. the respective State Governments.
How will the global How will the global economic slowdown affect economic slowdown affect
India's innovation India's innovation potential?potential?
• INDIAINDIA ranks second in the world in terms of ranks second in the world in terms of financial attractiveness, people and skills financial attractiveness, people and skills availability and business environment.availability and business environment.
• deepening recession will force Western companies deepening recession will force Western companies to outsource even more of their knowledge work to to outsource even more of their knowledge work to India as they desperately seek to streamline their India as they desperately seek to streamline their cost structure. cost structure.
• This will give a big boost to India's nascent This will give a big boost to India's nascent Knowledge Process Outsourcing (KPO) market. market.
• This is exactly what happened after 2000, once the This is exactly what happened after 2000, once the dot-com bubble burst: IT outsourcing and dot-com bubble burst: IT outsourcing and Business Process Outsourcing (BPO) to India really to India really took off. took off.
India is one of the fastest India is one of the fastest growing automotive growing automotive
markets in Asia Pacific…markets in Asia Pacific…Sales of passenger cars by country - 2003-2008
4.5 4.7 4.6 4.5 4.6 4.6
2.0 2.3 2.6 2.9 3.4 4.10.91.0 1.1 1.2
1.51.6
1.31.1 1.2 1.3
1.31.4
0.40.6 0.6 0.7
0.80.9
1.01.1
1.21.3
1.41.4
10.110.8
11.311.9
13.014.1
0
2
4
6
8
10
12
14
16
2003 2004 2005 2006 2007 2008
Mil
lio
n u
nit
s
Japan ChinaIndia South KoreaThailand Others
Note: "Others" includes Malaysia, Indonesia, Philippines, Taiwan and Vietnam
Source: EIU, "World automotive outlook", 2004
Extra 3 million units expected
from China and India
IT & IT-enabled sectorsIT & IT-enabled sectors IT industry is one of the fastest growing industries in India – grown at a CAGR of 29% over the last 5 years
Industry like to maintain high growth and is expected to generate revenues of USD 62 bn by 2008 and USD 148 bn by 2012 (NASSCOM-KPMG estimates)
In India the IT sector employs around 650,000 people currently, which is likely to increase to 2 million by 2010
Government backing for the sector
Infrastructure support through setting up of technology parks and continuing strengthening of communication facilities
100% FDI allowed in the sector through the automatic route
India exports IT products and IT enabled services to 133 countries
220 of the Fortune 500 companies outsource their software from india
Huge export potential yet to
be tapped Lower cost
High end research, analytics and design, large pool of skilled technical personnel available
O pportunitiesIT & ITeS Sectors
India seen as an outsourcing
hub
Higher value added services planned and new
markets aggressively targeted