India’s Economic Outlook: Prospectfor Luxury Goods

India’s Economic Outlook: Prospectfor Luxury Goods

Ritesh Kumar Singh

India’s Economic Outlook: Prospectfor Luxury Goods

India’s Economic Outlook: Prospectfor Luxury Goods

Ritesh Kumar Singh

Some Questions

• Is India’s growth story intact?

• How dependent is India on troubled EU, USA & Japan?

• What are the Challenges to India’s Growth Story? Is Indian economy

resilient enough to overcome them?

• What are India’s positives? What are the factors that make positive

about India’s growth story?

• How India is different than China and will that difference add to its

resilience?

• Is India’s growth story intact?

• How dependent is India on troubled EU, USA & Japan?

• What are the Challenges to India’s Growth Story? Is Indian economy

resilient enough to overcome them?

• What are India’s positives? What are the factors that make positive

about India’s growth story?

• How India is different than China and will that difference add to its

resilience?

Some Questions

• Is India’s growth story intact?

• How dependent is India on troubled EU, USA & Japan?

• What are the Challenges to India’s Growth Story? Is Indian economy

resilient enough to overcome them?

• What are India’s positives? What are the factors that make positive

about India’s growth story?

• How India is different than China and will that difference add to its

resilience?

• Is India’s growth story intact?

• How dependent is India on troubled EU, USA & Japan?

• What are the Challenges to India’s Growth Story? Is Indian economy

resilient enough to overcome them?

• What are India’s positives? What are the factors that make positive

about India’s growth story?

• How India is different than China and will that difference add to its

resilience?

World Economic Scenario Today

• USA in fiscal mess (public debt/GDP ratio: 99%), this of coursedoesn’t include $ 5 trillion of Fredie Mac & Fannie Mae

• European Union mired in sovereign debt crisis– Greece (140%), Ireland (96%) and now Italy (119%)

– Eurozone as a whole 80% in Dec 2010.

• Japan in post calamity reconstruction

-------------------------------------------------------------------------

• Are there any bright spots?

• USA in fiscal mess (public debt/GDP ratio: 99%), this of coursedoesn’t include $ 5 trillion of Fredie Mac & Fannie Mae

• European Union mired in sovereign debt crisis– Greece (140%), Ireland (96%) and now Italy (119%)

– Eurozone as a whole 80% in Dec 2010.

• Japan in post calamity reconstruction

-------------------------------------------------------------------------

• Are there any bright spots?

World Economic Scenario Today

• USA in fiscal mess (public debt/GDP ratio: 99%), this of coursedoesn’t include $ 5 trillion of Fredie Mac & Fannie Mae

• European Union mired in sovereign debt crisis– Greece (140%), Ireland (96%) and now Italy (119%)

– Eurozone as a whole 80% in Dec 2010.

• Japan in post calamity reconstruction

-------------------------------------------------------------------------

• Are there any bright spots?

• USA in fiscal mess (public debt/GDP ratio: 99%), this of coursedoesn’t include $ 5 trillion of Fredie Mac & Fannie Mae

• European Union mired in sovereign debt crisis– Greece (140%), Ireland (96%) and now Italy (119%)

– Eurozone as a whole 80% in Dec 2010.

• Japan in post calamity reconstruction

-------------------------------------------------------------------------

• Are there any bright spots?

Some Bright Spots

• BRICS (Brazil, Russia, India, China, South Africa) accounted for 15%

of the global trade i.e. US$ 4.6 trillion, population: 3 billion, GDP:

US$ 11 trillion

– Growing interdependence among BRICS a safeguards against impact

of slowdown in developed world

• Relatively stable oil rich Middle East

• Emerging Africa & Latin America

• Turkey – a high growth European but non-EU member country

• BRICS (Brazil, Russia, India, China, South Africa) accounted for 15%

of the global trade i.e. US$ 4.6 trillion, population: 3 billion, GDP:

US$ 11 trillion

– Growing interdependence among BRICS a safeguards against impact

of slowdown in developed world

• Relatively stable oil rich Middle East

• Emerging Africa & Latin America

• Turkey – a high growth European but non-EU member country

Some Bright Spots

• BRICS (Brazil, Russia, India, China, South Africa) accounted for 15%

of the global trade i.e. US$ 4.6 trillion, population: 3 billion, GDP:

US$ 11 trillion

– Growing interdependence among BRICS a safeguards against impact

of slowdown in developed world

• Relatively stable oil rich Middle East

• Emerging Africa & Latin America

• Turkey – a high growth European but non-EU member country

• BRICS (Brazil, Russia, India, China, South Africa) accounted for 15%

of the global trade i.e. US$ 4.6 trillion, population: 3 billion, GDP:

US$ 11 trillion

– Growing interdependence among BRICS a safeguards against impact

of slowdown in developed world

• Relatively stable oil rich Middle East

• Emerging Africa & Latin America

• Turkey – a high growth European but non-EU member country

India: A Factsheet

• GDP : US$ 1732.2 billion (Moody Ratings 2010)

• GDP (PPP): US$ 4,198,609 billion (World bank , 2010)

• Population: 1.21 billion

• Export

– Goods : US$ 246 billion (MOC&I, 2010-11)

– Services: US$ 132 billion (MOC&I, 2010-11)

• Size of Middle Class: 300 million

• Size of HNIs (Rs. 5 crores plus): 0.2 million

• Size of Rs. 1 crore plus income people: 2 millions

• GDP : US$ 1732.2 billion (Moody Ratings 2010)

• GDP (PPP): US$ 4,198,609 billion (World bank , 2010)

• Population: 1.21 billion

• Export

– Goods : US$ 246 billion (MOC&I, 2010-11)

– Services: US$ 132 billion (MOC&I, 2010-11)

• Size of Middle Class: 300 million

• Size of HNIs (Rs. 5 crores plus): 0.2 million

• Size of Rs. 1 crore plus income people: 2 millions

India: A Factsheet

• GDP : US$ 1732.2 billion (Moody Ratings 2010)

• GDP (PPP): US$ 4,198,609 billion (World bank , 2010)

• Population: 1.21 billion

• Export

– Goods : US$ 246 billion (MOC&I, 2010-11)

– Services: US$ 132 billion (MOC&I, 2010-11)

• Size of Middle Class: 300 million

• Size of HNIs (Rs. 5 crores plus): 0.2 million

• Size of Rs. 1 crore plus income people: 2 millions

• GDP : US$ 1732.2 billion (Moody Ratings 2010)

• GDP (PPP): US$ 4,198,609 billion (World bank , 2010)

• Population: 1.21 billion

• Export

– Goods : US$ 246 billion (MOC&I, 2010-11)

– Services: US$ 132 billion (MOC&I, 2010-11)

• Size of Middle Class: 300 million

• Size of HNIs (Rs. 5 crores plus): 0.2 million

• Size of Rs. 1 crore plus income people: 2 millions

World Export of Goods (2010)Source: WTO

Rank

China 1

USA 2USA 2

Germany 3

India 20

World Export of Goods (2010)Source: WTO

Value in US$Billion

% share

1578 10.4

1278 8.41278 8.4

1269 8.3

216 1.4

World Export of Services (2010)Source: WTO

Rank

USA 1

Germany 2Germany 2

UK 3

India 10

World Export of Services (2010)Source: WTO

Value inUS$ billion

% share

515 14.1

230 6.3230 6.3

227 6.2

110 3

World Growth Forecast: IMF (latest)

GDP forecastfor 2011

China 9.5%

India 7.5%India 7.5%

USA 3.0%

Germany 2.7%

Japan -0.5%

World 4.0%

World Growth Forecast: IMF (latest)

GDP forecastfor 2011

Change fromJune Forecast

9.5% -0.5%

7.5% -0.4%7.5% -0.4%

3.0% -1.0%

2.7% -0.5%

-0.5% 0.2%

4.0% -0.3%

India’s GDP Growth Forecast (latest)

FinancialYear

RBI, India FitchRating

2011-12 7.5% -8.7%

7.5%7.5% -8.7%

2012-13 7.7% -8.8%

8.0

India’s GDP Growth Forecast (latest)

FitchRating

IMF(2011)*

ADB

7.5% 7.5% 7.9%

8.0 - 8.3%

India’s GDP Growth: Long Term Forecast (RBI)

Next 5 years(2012-2016)

Next 10 years(2012-2021)

Next 10 years(2012-2021)

India’s GDP Growth: Long Term Forecast (RBI)

8.5%

8.8%8.8%

Conclusion

7.5% to 8.5% in Next 10 Years

This is not a non-impressive growth performance

7.5% to 8.5% in Next 10 Years

This is not a non-impressive growth performance

Conclusion

7.5% to 8.5% in Next 10 Years

This is not a non-impressive growth performance

7.5% to 8.5% in Next 10 Years

This is not a non-impressive growth performance

Challenges to Indian Economy

• High Sovereign Debt: 67.5% of the GDP (2010), though not so high as

compared to Greece (140%),Italy (117.4%), Portugal (93%), Ireland( 96%) but

higher than Brazil (66.8%) and China (19.1%)

• Combined (Centre & States) fiscal deficit: 8% of GDP

• Continuing High Inflation (9.0% plus)

• Global Economic Downturn

• Policy Paralysis

• Corruption and Infrastructural deficiencies identified as two most problematic

factors for doing business in India (IMF’s Global Competitiveness Report, 2010-

11)

• High Sovereign Debt: 67.5% of the GDP (2010), though not so high as

compared to Greece (140%),Italy (117.4%), Portugal (93%), Ireland( 96%) but

higher than Brazil (66.8%) and China (19.1%)

• Combined (Centre & States) fiscal deficit: 8% of GDP

• Continuing High Inflation (9.0% plus)

• Global Economic Downturn

• Policy Paralysis

• Corruption and Infrastructural deficiencies identified as two most problematic

factors for doing business in India (IMF’s Global Competitiveness Report, 2010-

11)

Challenges to Indian Economy

• High Sovereign Debt: 67.5% of the GDP (2010), though not so high as

compared to Greece (140%),Italy (117.4%), Portugal (93%), Ireland( 96%) but

higher than Brazil (66.8%) and China (19.1%)

• Combined (Centre & States) fiscal deficit: 8% of GDP

• Continuing High Inflation (9.0% plus)

• Global Economic Downturn

• Policy Paralysis

• Corruption and Infrastructural deficiencies identified as two most problematic

factors for doing business in India (IMF’s Global Competitiveness Report, 2010-

11)

• High Sovereign Debt: 67.5% of the GDP (2010), though not so high as

compared to Greece (140%),Italy (117.4%), Portugal (93%), Ireland( 96%) but

higher than Brazil (66.8%) and China (19.1%)

• Combined (Centre & States) fiscal deficit: 8% of GDP

• Continuing High Inflation (9.0% plus)

• Global Economic Downturn

• Policy Paralysis

• Corruption and Infrastructural deficiencies identified as two most problematic

factors for doing business in India (IMF’s Global Competitiveness Report, 2010-

11)

The Positives• India is a consumption story rather than export as reflected in its relatively high

proportion of private consumption in GDP

• High export growth rates (and reduced dependency on EU, USA & Japan) especially to

non-traditional export markets e.g. Latin America & Africa

• Intra-trade among BRICS region accounted for US$ 230 billion (out of US$ 4.6 trillion)

i.e. 5% in 2010 but growing at double digit rates -will further reduce dependency on

EU, USA & Japan.

• India’s export growth rates with respect to Brazil, China, Russia and South Africa: 50%-

75%

• Steadily Growing Agriculture: 6.6% in 2010-11; 7.5% in Q4 of 2010-11

• Interest rates have almost picked up and commodity prices have started declining

• India is a consumption story rather than export as reflected in its relatively high

proportion of private consumption in GDP

• High export growth rates (and reduced dependency on EU, USA & Japan) especially to

non-traditional export markets e.g. Latin America & Africa

• Intra-trade among BRICS region accounted for US$ 230 billion (out of US$ 4.6 trillion)

i.e. 5% in 2010 but growing at double digit rates -will further reduce dependency on

EU, USA & Japan.

• India’s export growth rates with respect to Brazil, China, Russia and South Africa: 50%-

75%

• Steadily Growing Agriculture: 6.6% in 2010-11; 7.5% in Q4 of 2010-11

• Interest rates have almost picked up and commodity prices have started declining

The Positives• India is a consumption story rather than export as reflected in its relatively high

proportion of private consumption in GDP

• High export growth rates (and reduced dependency on EU, USA & Japan) especially to

non-traditional export markets e.g. Latin America & Africa

• Intra-trade among BRICS region accounted for US$ 230 billion (out of US$ 4.6 trillion)

i.e. 5% in 2010 but growing at double digit rates -will further reduce dependency on

EU, USA & Japan.

• India’s export growth rates with respect to Brazil, China, Russia and South Africa: 50%-

75%

• Steadily Growing Agriculture: 6.6% in 2010-11; 7.5% in Q4 of 2010-11

• Interest rates have almost picked up and commodity prices have started declining

• India is a consumption story rather than export as reflected in its relatively high

proportion of private consumption in GDP

• High export growth rates (and reduced dependency on EU, USA & Japan) especially to

non-traditional export markets e.g. Latin America & Africa

• Intra-trade among BRICS region accounted for US$ 230 billion (out of US$ 4.6 trillion)

i.e. 5% in 2010 but growing at double digit rates -will further reduce dependency on

EU, USA & Japan.

• India’s export growth rates with respect to Brazil, China, Russia and South Africa: 50%-

75%

• Steadily Growing Agriculture: 6.6% in 2010-11; 7.5% in Q4 of 2010-11

• Interest rates have almost picked up and commodity prices have started declining

% Share of Private Consumption Expenditure in GDP

India

China

% Share of Private Consumption Expenditure in GDP

55

35

India’s Private Consumption Expenditure Growth

2009-10 Q1(2010-11)

Q2(2010-11)

Q3(2010-11)

7.3% 8.9% 8.9% 8.6%

India’s Private Consumption Expenditure Growth

Q3(2010-11)

Q4(2010-11)

Q1(2011-12)

Q2(2011-12)

8.6% 8.1% 8% 6.3%

India’s Monthly Export Growth Rates(2011)

April May June

34.4% 56.9% 46.5%

India’s Monthly Export Growth Rates(2011)

June July August

46.5% 81.7% 44.2%

India’s Export (in %) by Destination

Region 2000-01

Asia 25.2

Europe 28Europe 28

ME 11.4

USA 21

Africa 5.3

Latin America 1.8

India’s Export (in %) by Destination

2010-11 % Growth

32.5 29.0%

21.2 -24.3%21.2 -24.3%

19.8 73.7%

9.8 -53.3%

8.3 56.6%

3.2 77.8%

India’s Agriculture Sector

• India’s agricultural sector – a source of support to Indian economy

when industrial and services sectors are in trouble

• Increasingly, the sector is generating demand for industrial

products (e.g. farm equipments, seeds, fertilizers & chemicals) and

services (banking, transport and communication)

• Supplying food & raw materials to urban industrial & services sector

• India’s agricultural sector – a source of support to Indian economy

when industrial and services sectors are in trouble

• Increasingly, the sector is generating demand for industrial

products (e.g. farm equipments, seeds, fertilizers & chemicals) and

services (banking, transport and communication)

• Supplying food & raw materials to urban industrial & services sector

India’s Agriculture Sector

• India’s agricultural sector – a source of support to Indian economy

when industrial and services sectors are in trouble

• Increasingly, the sector is generating demand for industrial

products (e.g. farm equipments, seeds, fertilizers & chemicals) and

services (banking, transport and communication)

• Supplying food & raw materials to urban industrial & services sector

• India’s agricultural sector – a source of support to Indian economy

when industrial and services sectors are in trouble

• Increasingly, the sector is generating demand for industrial

products (e.g. farm equipments, seeds, fertilizers & chemicals) and

services (banking, transport and communication)

• Supplying food & raw materials to urban industrial & services sector

Conclusion

• India’s Dependence on EU & USA has gone down

• Now 70% of India’s exports are going to non-EU and non-USA regions

• Increasing intra-trade among non- EU and non-USA countries/regions

provide cushion from adverse impact of downturn in developed

countries

• So, it makes economic sense to expand into these fast growing regions

in particular BRICS nations

• India’s a key BRICS nation to be in

• India’s Dependence on EU & USA has gone down

• Now 70% of India’s exports are going to non-EU and non-USA regions

• Increasing intra-trade among non- EU and non-USA countries/regions

provide cushion from adverse impact of downturn in developed

countries

• So, it makes economic sense to expand into these fast growing regions

in particular BRICS nations

• India’s a key BRICS nation to be in

Conclusion

• India’s Dependence on EU & USA has gone down

• Now 70% of India’s exports are going to non-EU and non-USA regions

• Increasing intra-trade among non- EU and non-USA countries/regions

provide cushion from adverse impact of downturn in developed

countries

• So, it makes economic sense to expand into these fast growing regions

in particular BRICS nations

• India’s a key BRICS nation to be in

• India’s Dependence on EU & USA has gone down

• Now 70% of India’s exports are going to non-EU and non-USA regions

• Increasing intra-trade among non- EU and non-USA countries/regions

provide cushion from adverse impact of downturn in developed

countries

• So, it makes economic sense to expand into these fast growing regions

in particular BRICS nations

• India’s a key BRICS nation to be in

Conclusion

• Not so bleak situation even in bleakest of time

• India – a place to be in

What about Prospect for Luxury Goods Demand in India?

• Not so bleak situation even in bleakest of time

• India – a place to be in

What about Prospect for Luxury Goods Demand in India?

Conclusion

• Not so bleak situation even in bleakest of time

• India – a place to be in

What about Prospect for Luxury Goods Demand in India?

• Not so bleak situation even in bleakest of time

• India – a place to be in

What about Prospect for Luxury Goods Demand in India?

Luxury Goods

• Luxury goods are goods with very high income elasticity i.e. a

50% income increase may lead to 100%-150% spend increase

on Luxuries depending upon the elasticity

• Implication: a country with fast-rising income will faster-

spend-increase on luxuries and vice versa i.e. if the

income becomes double (100% up) and spend on luxuries will

go up by 200-300%

• Luxury goods are goods with very high income elasticity i.e. a

50% income increase may lead to 100%-150% spend increase

on Luxuries depending upon the elasticity

• Implication: a country with fast-rising income will faster-

spend-increase on luxuries and vice versa i.e. if the

income becomes double (100% up) and spend on luxuries will

go up by 200-300%

Luxury Goods

• Luxury goods are goods with very high income elasticity i.e. a

50% income increase may lead to 100%-150% spend increase

on Luxuries depending upon the elasticity

• Implication: a country with fast-rising income will faster-

spend-increase on luxuries and vice versa i.e. if the

income becomes double (100% up) and spend on luxuries will

go up by 200-300%

• Luxury goods are goods with very high income elasticity i.e. a

50% income increase may lead to 100%-150% spend increase

on Luxuries depending upon the elasticity

• Implication: a country with fast-rising income will faster-

spend-increase on luxuries and vice versa i.e. if the

income becomes double (100% up) and spend on luxuries will

go up by 200-300%

India and Luxury Goods Demand

• Very few studies have been done to estimate the size and nature of

Luxury goods demand in India

• One such study was done by CII-A.T. Kearney

India and Luxury Goods Demand

• Very few studies have been done to estimate the size and nature of

Luxury goods demand in India

• One such study was done by CII-A.T. Kearney

CII-AT Kearney Study: Main Points

• Size of the Luxury Market in India

• Types of Luxury

– Products

– Services

– Assets

• Nature of India’s High Net worth Individuals (HNIs) – target

customers of Luxuries

• Problems

• Prospects

• Size of the Luxury Market in India

• Types of Luxury

– Products

– Services

– Assets

• Nature of India’s High Net worth Individuals (HNIs) – target

customers of Luxuries

• Problems

• Prospects

CII-AT Kearney Study: Main Points

• Size of the Luxury Market in India

• Types of Luxury

– Products

– Services

– Assets

• Nature of India’s High Net worth Individuals (HNIs) – target

customers of Luxuries

• Problems

• Prospects

• Size of the Luxury Market in India

• Types of Luxury

– Products

– Services

– Assets

• Nature of India’s High Net worth Individuals (HNIs) – target

customers of Luxuries

• Problems

• Prospects

Size of Luxury Market

Year 2009

US$billion

4.76US$billion

Size of Luxury Market

2012 F 2015F

8.22 14.72

Nature of Indian HNIs

• Consumer Classes

– Traditional wealthy

– Medium size entrepreneurs

– High Income Corporate Executives (Rs. 1 cores plus)

– Others: politicians, bureaucrats and expatriates

• Indian luxury demand - a largely untapped sector because of

limited access to luxury items – mainly available in metropolitan

cities

• Consumer Classes

– Traditional wealthy

– Medium size entrepreneurs

– High Income Corporate Executives (Rs. 1 cores plus)

– Others: politicians, bureaucrats and expatriates

• Indian luxury demand - a largely untapped sector because of

limited access to luxury items – mainly available in metropolitan

cities

Nature of Indian HNIs

• Consumer Classes

– Traditional wealthy

– Medium size entrepreneurs

– High Income Corporate Executives (Rs. 1 cores plus)

– Others: politicians, bureaucrats and expatriates

• Indian luxury demand - a largely untapped sector because of

limited access to luxury items – mainly available in metropolitan

cities

• Consumer Classes

– Traditional wealthy

– Medium size entrepreneurs

– High Income Corporate Executives (Rs. 1 cores plus)

– Others: politicians, bureaucrats and expatriates

• Indian luxury demand - a largely untapped sector because of

limited access to luxury items – mainly available in metropolitan

cities

Key Challenges

• Lack of quality real estate options

• Lack of underdeveloped back end infrastructure e.g. logistics &

warehouse

• Regulatory restrictions: FDI in Multi-brand Retail Sector

• Relatively high import duties on luxury items e.g. wines & alcoholic

beverages (150%), 10% on wrist watches, perfumes, shampoos & beauty

preparations

• Lack of skilled/talented manpower

• Lack of quality real estate options

• Lack of underdeveloped back end infrastructure e.g. logistics &

warehouse

• Regulatory restrictions: FDI in Multi-brand Retail Sector

• Relatively high import duties on luxury items e.g. wines & alcoholic

beverages (150%), 10% on wrist watches, perfumes, shampoos & beauty

preparations

• Lack of skilled/talented manpower

Key Challenges

• Lack of quality real estate options

• Lack of underdeveloped back end infrastructure e.g. logistics &

warehouse

• Regulatory restrictions: FDI in Multi-brand Retail Sector

• Relatively high import duties on luxury items e.g. wines & alcoholic

beverages (150%), 10% on wrist watches, perfumes, shampoos & beauty

preparations

• Lack of skilled/talented manpower

• Lack of quality real estate options

• Lack of underdeveloped back end infrastructure e.g. logistics &

warehouse

• Regulatory restrictions: FDI in Multi-brand Retail Sector

• Relatively high import duties on luxury items e.g. wines & alcoholic

beverages (150%), 10% on wrist watches, perfumes, shampoos & beauty

preparations

• Lack of skilled/talented manpower

Prospects

• Size of HNIs

– 0.2 million people with income of $ 1 million plus (i.e. Rs. 5 crores plus)

– People with income of Rs. 1 crores plus: roughly 10 times the above i.e. 2million

• The size of HNIs is expected to double every 5 years

• Increasing proportion of new rich i.e. young & rich entrepreneurswith Rs. 50 crores plus revenue and high salary corporate executiveswill provide impetus to Luxury goods prospect

• Tremendous potential for mass luxury goods from growing uppermiddle class

• Size of HNIs

– 0.2 million people with income of $ 1 million plus (i.e. Rs. 5 crores plus)

– People with income of Rs. 1 crores plus: roughly 10 times the above i.e. 2million

• The size of HNIs is expected to double every 5 years

• Increasing proportion of new rich i.e. young & rich entrepreneurswith Rs. 50 crores plus revenue and high salary corporate executiveswill provide impetus to Luxury goods prospect

• Tremendous potential for mass luxury goods from growing uppermiddle class

Prospects

• Size of HNIs

– 0.2 million people with income of $ 1 million plus (i.e. Rs. 5 crores plus)

– People with income of Rs. 1 crores plus: roughly 10 times the above i.e. 2million

• The size of HNIs is expected to double every 5 years

• Increasing proportion of new rich i.e. young & rich entrepreneurswith Rs. 50 crores plus revenue and high salary corporate executiveswill provide impetus to Luxury goods prospect

• Tremendous potential for mass luxury goods from growing uppermiddle class

• Size of HNIs

– 0.2 million people with income of $ 1 million plus (i.e. Rs. 5 crores plus)

– People with income of Rs. 1 crores plus: roughly 10 times the above i.e. 2million

• The size of HNIs is expected to double every 5 years

• Increasing proportion of new rich i.e. young & rich entrepreneurswith Rs. 50 crores plus revenue and high salary corporate executiveswill provide impetus to Luxury goods prospect

• Tremendous potential for mass luxury goods from growing uppermiddle class

To Summrise

• India’s a consumption driven economy, hence retail has a brightfuture

• High economic growth will lead to increase in the no. high incomepeople – who’ll generate demand for luxuries

• Proactive efforts are needed to remove regulatory hurdles in way ofgrowth of luxuries

• Very few macro-economic studies have been done for developinginsights into the economics of luxury market in India

• India’s a consumption driven economy, hence retail has a brightfuture

• High economic growth will lead to increase in the no. high incomepeople – who’ll generate demand for luxuries

• Proactive efforts are needed to remove regulatory hurdles in way ofgrowth of luxuries

• Very few macro-economic studies have been done for developinginsights into the economics of luxury market in India

To Summrise

• India’s a consumption driven economy, hence retail has a brightfuture

• High economic growth will lead to increase in the no. high incomepeople – who’ll generate demand for luxuries

• Proactive efforts are needed to remove regulatory hurdles in way ofgrowth of luxuries

• Very few macro-economic studies have been done for developinginsights into the economics of luxury market in India

• India’s a consumption driven economy, hence retail has a brightfuture

• High economic growth will lead to increase in the no. high incomepeople – who’ll generate demand for luxuries

• Proactive efforts are needed to remove regulatory hurdles in way ofgrowth of luxuries

• Very few macro-economic studies have been done for developinginsights into the economics of luxury market in India

Pro-active Engagement with Governments in Countries ofExport/Import

• If you are importing luxury items from any GCC countries say, UAE,tap Proposed India-GCC FTA for getting duty reduced

• If you are importing any luxury items from EU, tap India-EU FTA forgetting duties reduced/removed in medium to long term

• If you are importing luxury items from any GCC countries say, UAE,tap Proposed India-GCC FTA for getting duty reduced

• If you are importing any luxury items from EU, tap India-EU FTA forgetting duties reduced/removed in medium to long term

Pro-active Engagement with Governments in Countries ofExport/Import

• If you are importing luxury items from any GCC countries say, UAE,tap Proposed India-GCC FTA for getting duty reduced

• If you are importing any luxury items from EU, tap India-EU FTA forgetting duties reduced/removed in medium to long term

• If you are importing luxury items from any GCC countries say, UAE,tap Proposed India-GCC FTA for getting duty reduced

• If you are importing any luxury items from EU, tap India-EU FTA forgetting duties reduced/removed in medium to long term

Quote

“Europe will find a way out, America willgrow and orderly default of Greece can be

less scary than what the world thinks.”

Jamie Dimon,

CEO & Chairman, JP Morgan

“Europe will find a way out, America willgrow and orderly default of Greece can be

less scary than what the world thinks.”

Jamie Dimon,

CEO & Chairman, JP Morgan

Quote

“Europe will find a way out, America willgrow and orderly default of Greece can be

less scary than what the world thinks.”

Jamie Dimon,

CEO & Chairman, JP Morgan

“Europe will find a way out, America willgrow and orderly default of Greece can be

less scary than what the world thinks.”

Jamie Dimon,

CEO & Chairman, JP Morgan

Thank You

If you have any query on any economic or international trade

related issues including FTAs/WTO, please feel free to contact me at

rk1234.singh@gmail.com /9702998668

If you have any query on any economic or international trade

related issues including FTAs/WTO, please feel free to contact me at

rk1234.singh@gmail.com /9702998668

Thank You

If you have any query on any economic or international trade

related issues including FTAs/WTO, please feel free to contact me at

rk1234.singh@gmail.com /9702998668

If you have any query on any economic or international trade

related issues including FTAs/WTO, please feel free to contact me at

rk1234.singh@gmail.com /9702998668

Import of Goods (2010)Source: WTO

Country Rank Value in US$Billion

USA 1

China 2

Germany 3

India 13

Import of Goods (2010)Source: WTO

Value in US$Billion

% share

1968 12.8

1395 9.1

1067 6.9

323 2.1

Import of Services (2010)Source: WTO

Country Rank

USA 1

Germany 2Germany 2

China 3

India 7

Import of Services (2010)Source: WTO

Rank Value inUS$ billion

% share

358 10.2

256 7.3256 7.3

192 5.5

117 3.3

India’s GDP Growth Rates (Actual)

2006-072007-08

2008-09

2009-102009-10

2010-11

India’s GDP Growth Rates (Actual)

9.6 %

9.3%

6.8%

8%8%

8.5%