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INDIAS PROMISE Challenges & Opportunities
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Delhi, Capital CityPOP: 13 million
Bangalore Silicon Valley of India
POP: 7 million
BJP+ 189 Seats
Left 61 Seats
Others 70 Seats
Cong+ 219 Seats
Political Uncertainty
COALITIONGOVERNMENTS
TO STAY
ECONOMICREFORMSSECURE
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UNITED PROGRESSIVE ALLIANCE
Sonia Gandhi Pranab Mukherjee
Kamal Nath Praful Patel
Sharad Pawar
Bhattacharyajee Nirpuam Sen
Karunakaran
DMK
13 Constituents Indian National Congress Congress Allies
Prakash Karat
Left Front
UPA COMMON MINIMUM PROGRAM
Agriculture - A New Deal For Rural IndiaInfrastructure - Building World Class Employment - Rozgar BadhaoEducation - Improving Access and Excellence
Health Care - Creating CapabilitiesWater - Better Access, Better UtilizationUrban Renewal - Humane and Modern
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UPCOMING STATE ASSEMBLY ELECTION
Population179,000,000
80 ParliamentaryConstituencies
4 Phase Poll
April / May
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RED TAPISM
1500 KM8 Days
RED TAPE / TAX ANOMALIES / POOR INFRASTRUCTURE
July 2006
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Challenges in Infrastructure
48 new road projects worth $12 bn are presently under construction
Indian Railways require $22 bn investment
Indias port upgrades require a total investment of $22 billion
Domestic aircraft movements have shot up by 40%
Modernization requires upgrading 25 of the countrys national airports
100,000 MW required by 2012
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LAND ACQUISITION-SEZs
NANDIGRAM
WEST BENGAL
5000 POLICE
16 KILLED
68 WOUNDED
TOTAL BANDH
HIGHLY POLITICIZED SEZs ON HOLD
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HUMAN RESOURCE CONSTRAINT
ITES/BPO INDUSTRY GROWING @ 45% Qtr
QUALIFIED HELP IN SHORTAGE
ATTRITION RATES > 30%
FINISHING SCHOOLS REQUIRED
CONTRACT LABOR & LABOR REFORMS A MUST
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INDIAS ECONOMIC LEADERSHIP
Manmohan SinghPrime Minister
Montek Singh AhluwaliaPlanning Commission Deputy Chairman
P. ChidambaramMinister of Finance
Considered the Father of Indias Economic Reforms Economist by training, Strong free-market advocateExcellent rapport with President Bush
Private / Public Sector InterlocutorEconomist by training, OxonianWorld Bank background / Easily accessible
Inclusive Budget Supreme Court Advocate, Harvard MBA
Pragmatic reformer
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SCORECARD ON REFORMSProgress
Insurance FDI up to 26%
Telecom up to 74%
Oil/Gas, Roads, Ports up to 100%
Real estate opened to 100%
Open Skies: Boeing Sales
Patents Act -IPR Protection: Re-entry of Merck
Retail (Single Product): Wal-Mart Entry
Civilian Nuclear Cooperation 123 Agreement
15 Special Economic Zones (SEZs) at present
42 approved for 2007
GDP Growth Rate > 8%
6 Million New Cell PhonesRegistered Last Month!
0
20
40
60
80
100
120
140
160
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200
1995 2000 2006
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More than 300 of the Fortune 500 are in India
IBM : 53,000 employees
Cognizant : 48,000 employees General Electric: : 20,000 employeesOracle : 18,000 employeesHewlett-Packard : 11,000 employeesHoneywell : 7,000 employees
American Express : 4,000 employeesDell : 3,800 employees
IT/ BPO Boom
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MANUFACTURING
Automobile Components - Worth $15 bn20 % Annual Growth in Exports
Ford Producing 30,000 units;Doubling Capacity in 2006-2009 timeframe
General Motors Expecting to sell 30,000units in 2006; output to be doubled
Boeing - $12.1 bn sale of civilian aircraft to Air Indiawith significant co- production; recognition of Indias
manufacturing prowess
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OPPORTUNITIES IN AGRICULTURE
$15 bn investmentopportunity in storage,
transportation,and refrigeration facilities.
Blue Diamond Growers India is 4thlargest and fastest growing market
Coca Cola has major presencethroughout the country
Pepsi is a major playerwith sales $700 mn
McDonalds has introduced the McVeggieburger and Veg Pizza McPuff
Domino Pizza, Pizza Hut and Kentucky Fried Chickenhave all established restaurants in India.
http://images.google.com/imgres?imgurl=http://www.kfc-ab.de/cms1/images/logo.gif&imgrefurl=http://www.kfc-ab.de/cms1/link.php%3Flink%3Dde_start&h=323&w=250&sz=15&tbnid=yuMrvn5VksUJ:&tbnh=114&tbnw=88&hl=en&start=4&prev=/images%3Fq%3Dkfc%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%26rls%3DGGLD,GGLD:2005-21,GGLD:enhttp://images.google.com/imgres?imgurl=http://www.kiddieland.com/ContentImages/Pepsi%2520Logo2.jpg&imgrefurl=http://www.kiddieland.com/foodandfun.asp&h=64&w=90&sz=3&tbnid=N0Ge6zTN8EMJ:&tbnh=52&tbnw=74&hl=en&start=3&prev=/images%3Fq%3Dpepsi%2Bfoods%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%26rls%3DGGLD,GGLD:2005-21,GGLD:en%26sa%3DNhttp://images.google.com/imgres?imgurl=http://users2.ev1.net/%7Edisneyelvis/Images/CocaCola/CocaColaLogo3.jpg&imgrefurl=http://users2.ev1.net/%7Edisneyelvis/CocaCola/CocaColaScrapbook.htm&h=243&w=350&sz=69&tbnid=RjxTaB4J-fMJ:&tbnh=80&tbnw=115&prev=/images%3Fq%3Dcoca%2Bcola%2Blogo%26hl%3Den%26lr%3D&oi=imagesr&start=1http://graphics.fansonly.com/schools/ncst/graphics/ncst-dominoes-logo-150x151.gifhttp://www.dupont.com/corp/news/daily/images/dn_logo_mcdonaldslogo192x146.jpg8/10/2019 FDI and Real Estate India
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U.S. DEFENSE COMPANIES
remont Group
http://www.boeing.com/http://www.lockheedmartin.com/wmshttp://www.ge.com/http://www.honeywell.com/8/10/2019 FDI and Real Estate India
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DEFENSE TRADE
F-18 SuperHornet
FireFinder& PAC III
P-3 Orion
F-16 FightingFalcon
GE-404Engine
Bell 407Helicopter
C-131Transport
Boeing 737Countermeasure
Equipment
Pac-3 Antimissile
System
Next Steps in U.S.-India Strategic Partnership:
Major Opportunities in Defense Cooperation - $30 billion
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Indian Space Program 5 th largest after U.S., Russia,Europe, China
$450 mn annual budget, but due to lower wages isequivalent to multi-billion dollar program in U.S.
Space Exploration Chandrayan I: India plans to launchits first unmanned mission to the moon by 2008
NASA agreement with ISRO to send scientific instrumentsinto space aboard Indias Chandrayan I
Export Control Regimes; Strategic Partnership Challenges
US-INDIA SPACE PARTNERSHIP An Important Component of Strategic Partnership
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NEXT WAVE: PHARMACEUTICALS
$6.5 bn and growing at 8-10%
4th largest pharmaceutical
industry in the world
Expected by 2008 to beworth $12 billion
Private Hospitals firmly entrenched: Apollo,Manipal, Escorts, Max Healthcare
Medical Tourism
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R&D Centre, Bangalore
India Development Centre,Bangalore, Hyderabad
India Engineering Centre, Bangalore
Software Lab, Bangalore, Pune
Labs India, Bangalore
Innovation Campus, Bangalore
Bangalore
R&D Centre, Bangalore and Mumbai
INNOVATION FRONTIER
R&D Centre, Bangalore
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INDIA LOOKS OUTWARD
Tata Group - $12 BNReliance - $22 BNEssar - $9 BNBirla - $6 BN
Videocon Daewoo Electronics-$650
Dr. Reddys Lab Betapharm - $570Ranbaxy Terpia - $324 VSNL Tyco Global-$130
http://www.tatatea.com/images/tata_logo.gifhttp://images.google.co.in/imgres?imgurl=http://www.cyberautocop.com/gifs/mahindra-logo.gif&imgrefurl=http://www.cyberautocop.com/automobile-manufacturers.html&h=43&w=90&sz=2&hl=en&sig2=s0YmMG7A3pSfpBnt-BcLmg&start=6&tbnid=4URN1fv7QmIWCM:&tbnh=37&tbnw=78&ei=xCr8RbKSEIbAiwGl04SdDA&prev=/images%3Fq%3Dmahindra%2Blogo%26svnum%3D10%26hl%3Denhttp://www.danriver.com/default.aspxhttp://images.google.com/imgres?imgurl=http://www.diinfotech.com/images/clients/ghcl.gif&imgrefurl=http://www.diinfotech.com/clients.html&h=41&w=46&sz=2&hl=en&start=33&tbnid=qbIOpY2X1J_9HM:&tbnh=41&tbnw=46&prev=/images%3Fq%3Dghcl%26start%3D20%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26rls%3DGGLD,GGLD:2005-21,GGLD:en%26sa%3DNhttp://www.itintegrated.com/About_us/images/sk_logo.jpghttp://www.tnreginet.net/bimage/vsnl.gifhttp://www.ranbaxy.com/images/ranbaxy_logo.gifhttp://www.domain-b.com/companies/companies_v/videocon_international/videocon_logo.jpg8/10/2019 FDI and Real Estate India
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Coherent democracy; Pluralist/Secular1/5th Worlds Population; 2 nd largest military in the world
Common Values: Against Terrorism, Trafficking, NarcoticsIdeological Partner re: Nepal, Sri Lanka, Bangladesh, ChinaCommon Law Judicial System2nd largest number of Doctors, Engineers, PhDs in the world100,000 Students to U.S. Each Year
1.8 mil Americans of Indian OriginPolitically significant; Politically integrated54% of Indian Population is under the Age of 25
ECONOMIC, IDEOLOGICAL &STRATEGIC PARTNERS
India is Rising, Becoming Vital to U.S. Interests
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Accenture Adobe Systems, Inc. Akin Gump LLP Altria Group, Inc. AM General LLC Amas Investment &Project Services
Amway Corporation Andrews Kurth LLPBaker & McKenzie LLPBank of AmericaBloombergBoeing Company
CargillCaterpillar, Inc.CBay Systems
ChevronCMS EnergyThe Coca-Cola CompanyComputer AssociatesCovanta EnergyDell Computer Corp.Deloitte & ToucheDiscovery CommunicationsDow AgroSciencesDow JonesDuPont, Inc.eBay Inc.
Estee LauderFord Motor CompanyFremont Group Limited
General DynamicsGeneral MotorsGerson Lehrman GroupGuardian Life InsuranceGerson LehrmanGuardian Life InsuranceHughes Network SystemsIBM, CorporationIDFC Ltd.Johnson & JohnsonJ.P. Morgan ChaseK. Raheja Universal
Kotak MahindraL-3 CommunicationsLockheed Martin
McGraw-HillMerck & Co.Microsoft CorporationMonsantoMotorola, IncNews Corporation Ltd.Northrop GrummanOracle CorporationPanAmSatPaul Weiss LLPPfizer Inc.Pratt & Whitney/United
TechnologiesSony Pictures EntertainmentStandard Chartered Bank
Target CorporationTata, Inc.Texas InstrumentsTextron Inc.Time Warner Inc.Thomson FinancialUnited Parcel Service
Vickery InternationalWal-Mart Inc.Watson Wyatt Worldwide
Xerox Corporation
Griffith & Rogers
BARBOURGRIFFITH &
ROGERS
eMRTechnology Ventures
Steptoe &
Johnson LLP U.S.-INDIA BUSINESS COUNCIL32 YEARS of GROWING ENTERPRISE
http://www.boeing.com/8/10/2019 FDI and Real Estate India
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INDIAS ENERGY SECURITY CHALLENGE
Gas pipeline fromIran, discouraged
by U.S.
Coal supplies for 200 years, but high/ash,
low calorie value
Oil discovery byCairn Energy in
2004; Indias
demand willoutstrip supply
Gas discovery byReliance in 2003
but will service onlyfraction of Indias
power needs
Tarapur- Indias civilian nuclear
reactor requiresrefueling
Kakrapar- Worldsfirst thorium-based
nuclear reactor
Gas pipeline from
Turkmenistan, throughPakistan, butquestionable reserves
Gas pipeline fromMyanmar through
Bangladesh discouragedby U.S.
Hydro-Electric Dam atNarmada constrained by
problems with
environment