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7/28/2019 The Indian Scenario
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The Indian scenario
ByPrem Behl
Chairman
Exhibitions India Group
7/28/2019 The Indian Scenario
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1. The Indian Economy: An Overview
2. History of the Indian exhibitions industry
3. Exhibitions Venues in India
4. Doing business in India
Index
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The Indian Economy: An Overview
1.
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The Indian Economy: An Overview
20
13 7
36
70
1950s 1960s 1970s 1980s 1990s
The fastest rise in incomes.
% rise in per capita income
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The Indian Economy: An Overview
The biggest drop in inflation
% decrease in inflation
9.5
9.1
7.4
4
1970s 1980s 1990s 2000-4
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The Indian Economy: An Overview
Have prompted a spending boom
% growth in consumption expenditure
5.9
9.5
6.5
11.4
2000-01 2001-02 2002-03 2003-04
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The Indian Economy: An Overview
as well as the highest level of savings
13.8
19.321.9
26.6
1980-81 1990-91 2000-01 2003-04
Household savings as % of GDP
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The Indian Economy: An Overview
The economy is riding high
% annual growth in GDP
4.4
8.5
6.9 7*
2002-03 2003-04 2004-05 2005-06
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India is the 4th largesteconomy in the world as measured by
purchasing power
Between 1980 and 2003, Indias economy grew at an average
rate of5.7%
During the same period, Indias real income per head grew by
125%
Dr. Manmohan Singh, Finance Minister in 1991 and architect of
Indias economic reforms, is the current Prime Minister
The Indian Economy: An Overview
Additional economic indicators:
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India has a consumerbase of 1.2 billion people, and
The youngest population of the world hencesustainable,long
term growth is assured
Modern (organised) retail converging with the consumption boom
will open up manyopportunities for small and mid-size consumer
companies
With upper income and rich classes growing rapidly and deprived
classes actually falling, Indias incomedemographics will actually
be unrecognizable by the end of the decade
The Indian Economy: An Overview
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Home ownership is on the rise with 5Million homes added every year,
approximately 1.5Million new homes added in urban areas
Mobile telephone subscriber base has grown from 0.3 Million in 1996to over 55 Million currently; expected to grow to 200 Million by 2008
13 Million credit card holders currently & growing at40% p.a.
Passenger car sales of USD 5 Billion in 2004, more thantwice thelevel of sales five years earlier
The Indian Economy: An Overview
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The Indian Economy: An Overview
0
10
2030
40
50
60
70
Percent
0
1
2
3
4
5
US
$
Thousands
Consumption share of GDP Population Dependency RatioPer Capital Consumption
Population Dependency Ratio = Ratio of Pop aged 65 years or over to the population aged 15-64 (Source: Morgan Stanley)
Growth at the margin
will close the gap
between Indias per
capita consumption
and Chinas
Private consumption currently accounts for 64% of Indian GDPhigher than Europe(58%), Japan (55%) and China (42%)
Emerging consumerism from one of the worldsyoungest population
China India
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The Indian Economy: An Overview
36
30
37 3839 39
44 44
USA China Russia UK
24
30
35
40
45
50
Medianagein
years
24
India
31
2000 2025
Indians are Younger than the World
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The Indian Economy: An Overview
India in 2050
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,00045,000
50,000
China US In
diaJapan
Brazil
Russia UK
Germany
Fran
ce Italy
US2
003
$
billions
0
1
2
3
4
5
6
7
8
2005-10 2015-20 2025-30 2035-40 2045-50
5-Ye
arPeriodAveragePercentP
er
Annum
Brazil
China
India
Russia
India will be the 3rdlargest economy. ..with the highest growth rate of BRICs
BRICs = Brazil, Russia, India, China
Source: Goldman Sachs, Dreaming with the BRICs
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The Indian Economy: An Overview
Analysts View of the Indian Economy India is on the cusp ofsomething big.[I] am as enthusiastic about India
as I was about China in the late 1990s. Whatexcitesme mostis the
potential for an increasinglypowerfulinternal consumption dynamicthe
missing link in most development models.
Stephen S. Roach, Chief Economist, Morgan Stanley Equity Research Global,
October 31, 2005
A dynamic and open India would have an important impact on the world
economy. If India continues to embrace globalization and reform, Indian
imports could increasingly operate as a driver of global growth as it is one
of a handful of economies forecast to have agrowing working-age
populationover the next 40 years.
IMF, World Economic Outlook, September 2005
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History of the Indian exhibitions industry2.
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History of the Indian exhibitions industry
The history of Indian exhibitions dates back hundreds of years
Take, for example, Indias huge Pushkar Mela now a great
tourist attraction
Thousands of camels are traded on the sands of Rajasthan
annually, even today
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History of the Indian exhibitions industry
Soon after independence, in the late
1940s, the Government set up the
Directorate of Exhibitions under the
Ministry of Commerce
An exhibition ground in New Delhi
was developed to host the Railways
exhibition in 1952 to mark thecentenary of railways in India
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History of the Indian exhibitions industry
1970
The Trade Development Authority (TDA) was set up in 1970 under
the Ministry of Commerce
1972 The fair ground was christened
Pragati Maidan
Pragati Maidan hosted Asia72:
third Asian International Trade Faircoinciding with Indias Silver Jubilee
Year of Independence
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History of the Indian exhibitions industry
1977
The Trade Fair Authority of India (TFAI) is formed by an Act of
Parliament with the aim of organising trade shows
1992
The India Trade Promotion Organisation (ITPO) is formed by
merging the Trade Development Authority (TDA) with the Trade
Fair Authority of India (TFAI)
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Exhibitions Venues in India3.
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Exhibitions Venues
in India
Exhibition Venues
International Airports
Exhibition Venues
International Airports
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Exhibitions Venues in India
New DelhiName Area
(in sqm.)
Outdoor Area(in sqm.)
Additional facilities
Pragati Maidan
Owned and managed by the IndianTrade Promotion Organisation (ITPO)
60,000 10,000 2 Conference Halls
(capacity200 each),4 theaters
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Exhibitions Venues in India
New DelhiPragati Maidan is a massive venue of 149 acres in the heart of Indias
capital city
The venues 16 exhibition halls and other facilities are ageing and farfrom being world class
The ITPO has proposed to completely modernize and revamp the
venue by 2010 (subject to approval by the Commerce Ministry)
http://www.epch.com/ihgf/files/picture_gallery.html7/28/2019 The Indian Scenario
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Exhibitions Venues in India
Greater NoidaName Area
(in sqm.)
Additional facilities
I ndia Expo Center
Owned by the Export PromotionCouncil for Handicrafts (EPCH)
7,500 1stphase of construction complete.
Another 20,000 sqm., as well as a 5star hotel, to be built by 2008
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Exhibitions Venues in India
MumbaiName Area
(in sqm.)
Outdoor
Area (in sqm.)
Additional facilities
Expo Center
Owned by the World Trade Center
2,500 n/a n/a
Bandra Kurla Complex
Owned by the Maharashtra Dev. Co.
n/a 50,000 Organisers typically set up air
conditioned hangars
Bombay Exhibition Center
Owned by Nesco Ltd.
60,000 n/a Non air-conditioned halls
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Exhibitions Venues in India
ChennaiName Area
(in sqm.)
Outdoor
Area (in sqm.)
Additional facilities
Chennai Trade Center
Owned by the Indian TradePromotion Organisation (ITPO)
and the Govt. of Tamil Nadu
6,800 3,000 Opened in 2001,
1stphase completeConference Room
(Capacity200 people)
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Exhibitions Venues in India
BangaloreName Area
(in sqm.)
Outdoor Area(in sqm.)
Additional facilities
KTPO Exhibition Complex
Owned by the ITPO and theKarnataka Industrial Area
Development Board (KIADB)
5,500 4000 Opened in 2004,
1st
phase completeConference Room
(capacity200)
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Exhibitions Venues in India
Hyderabad
Name Area(in sqm.)
Outdoor Area(in sqm.)
Additional facilities
H itex Exhibition Center
Jointly owned by the Govt. of AndhraPradesh and the private sector
10,000 30,000 Opened in 2003
1st
phase complete
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Opportunities Aplenty
The needfor quality trade shows and venues is apparent
If India and China are Asias emerging giants, then India is falling
terribly behindin its trade fair development
China has approximately 150 exhibition centers and 3 million
square meters of exhibition space
India, according to our calculations, has 6 dedicated exhibition
venues and 90,000 square meters of indoor exhibition spacethis
is estimated to increase by 40% in 3 years
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Doing business in India4.
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Doing business in India
There exists a myth that doing business in India is difficult.
With the right Indian partners, this is not at all the case
United Nations World Investment Report 2005
A TNC (transnational corporations) survey has ranked India
as the third mostattractive investment destination
In the same report, a UN expert opinion group ranked India asthesecond mostattractive investment destination
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Doing business in India
Indian Trade Promotion Organisation(ITPO)
In order to organise a trade show in India, an organiser must gain
approval from the ITPO
For leading trade show organisers, this is astraight forwardand
simple process
This approval consists of a Customs Notification allowing the
duty free temporary import of goods to be displayed
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Doing business in India
Customs
In line with international practices, there exists a well
established system allowing foreign participants the facility of
duty free temporary imports for exhibitions
India is a signatory to the ATA convention.ATA Carnets are
accepted at all major exhibition destinations in India
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Freight Handling
There are professional and experienced exhibition logistics
companies that provide afull range of services
The scope of services range from customs clearance to on site
handlingwith modern mechanical handling equipment and a
skilled work force
These logistic service providers have an extensive internationalnetwork
Doing business in India
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Doing business in India
The following is a brief list of leading freight forwarders
RE Rogers India Pvt. Ltd.
Translink Express (I) Pvt. Ltd.
Schenker India Pvt. Ltd.
Orient Marine Lines Pvt. Ltd.
The following is a brief list of leading stand constructers
Pavilions & Interiors India Pvt. Ltd.
PICO International Exhibitions Pvt. Ltd. Meroform (India) Pvt. Ltd.
Kingsmen Fairtech International Pvt. Ltd.
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Exchange Control
All investments can be on a repatriation basis
Original investment, profits and dividends can be freelyrepatriated
Foreign investors can acquire immovable property incidental to or
required for their activity
(Source: Ministry of Commerce & Industry, Government of India)
Doing business in India
Reforms in Exchange Control & Taxation
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Reforms in Exchange Control & TaxationTaxation
Companies incorporated in India are treated as Indian companiesfortaxation
There exists a Double Taxation Avoidance Agreement with 65countries
Peak Custom duty has been reducedto 15%
Corporate Tax has been reducedto 30%
Tariff to be aligned withASEAN levels
Value Added Tax introducedin some States from 1st April 2005
Transparency in Tax Structure: Online/ ICTApplications
(Source: Ministry of Commerce & Industry, Government of India)
Doing business in India
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Thank You
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The Indian Economy: An Overview