INDIA EMERGING ECONOMY & VIBRANT MARKET 印度 新興的經濟和蓬勃的市場

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INDIA EMERGING ECONOMY & VIBRANT MARKET . Amit Narang - 2009 10 16 . Presentation to TAITRA Seminar on Indian Food Processing Industry . Contents . Overview of Indian Economy . The 5 D Framework 5D . - PowerPoint PPT Presentation

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  • INDIAEMERGING ECONOMY & VIBRANT MARKET

    Amit Narang -20091016Presentation to TAITRA Seminar on Indian Food Processing Industry

  • ContentsOverview of Indian EconomyThe 5 D Framework5DThe Why India MatrixIndia-Taiwan Trade & Eco. Relationship The India Deal

  • Area: 3.3 Million Sq. Kms3307th Largest Country28 States 28Coastline: 7500 km 7500: , , , , : : , 21 : (82.6%), (11.4%), (2.4%), (2.0%), (0.7%)

    : (US$1 = INR 49)Chennai

    New Delhi

    Mumbai

    Southern Golden Triangle

  • India: Location

  • Democracy Worlds Largest democracy

    Largest digital elections

    10 major parties 50+state parties1050

    3 MN elected representatives 3DiversityHighly diverse

    23 Official languages23

    6 major religions6

    Diaspora Over 20 MN Indians outsideIndia2

    Indian companies outboundM&A > US$15 BN in 2006

    >2006150Demographics

    Youngest Nation in the world112,

    442 MN population < 20 Yrs Age44220

    6 MN graduates p.a / English Speaking6Demand 5th largest consumer market in the worldby 2025.

    20255

    350 MN growing middle class > 583 MN by 202535> 2025583The 5 D Framework5D

  • Business Friendly

    Emerging Economic Powerhouse Strong Economic Fundamentals

    Human Dividend

    Huge Consumer Market

    Attractive Investment Destination Reliable Trade Partner

    Why India

  • GDP grew at an average annual growth rate of 6% between 1980-2003 198020036%

    2nd Fastest Major Economy in the world2

    GDP growth :2005-06: 9.4%2006-07: 9.6%2007-08: 9.0%2008-09: 6.7%

    Growth of over 8% for 14 successive quarters from 2005-06 to 2007-082005-08148%

    Sustained double digit growth likely2Growth in sectors at Current Prices (2007-08)

    Industry: 10.7%Services: 8.9%Agriculture: 2.6%Emerging Economic Powerhouse

  • INDIA in 2050 | 2050 (Source: Goldman Sachs: BRICs Report) | ::4)India will be the 3rd Largest economy, with the Fastest rate of Growth ..3

    Goldman Sachs Later Revised the Forecast: India to cross US economy before 2050 to become 2nd Largest:2050,2

    Emerging Economic Powerhouse

  • Over 65% of GDP from Private Consumption (Japan:55%, China: 40%):65%(55%,40%)

    Low Export Dependency of 16%,16%

    Steady Reserves of Foreign Exchange: From US$ 5.8 BN in March 1991 to US$ 341 BN in May 2008:199135820072,850200853,410

    Indias Forex Reserves are in excess of the External DebtExternal Debt-to-GDP RatioStrong Economic Fundamentals

  • Market Cap up from US$ 140 BN in 2001 to over US$ 1 TN 20011,400,1

    Domestic Investment rate as a %age of GDP up from 27.6% in 2003-04 to 39% in 2007-082003-0427.6%2007-0839%

    Domestic Savings rate: More than 30%:30%

    As % of GDPIndian Banking & Financial System is healthy and Robust Proportion of poor quality assets is on the decline (%)Capitalization ratios are strong (%)Strong Economic Fundamentals

  • Free-market democracy with a legal and regulatory framework that rewards free enterprise, entrepreneurship and risk taking , Long history of entrepreneurship & private enterprise Bombay Stock Exchange (1875) Oldest Stock Exchange in Asia 1875-Third largest investor base in the world In 2007, there were a total of 676 M&A deals and 405 private equity dealstotal value of over US$ 70 BN > In 2008 = 454 Deals/ US$ 42 BN 2007676405,700.2008454,420

    World Competitiveness Ranking (Lower the better)Business Friendly Environment

  • Youngest Population in the World: More than half of Indiaspopulation is below 25 yrs age:,25

    Over the next 5 years, India alone will account for more than1/4th of the increase in worlds workforce,4,1

    Worlds Largest Pool of English Speaking Scientists and Engineers

    Least Old-Age Dependency rate in Asia,

    Implications: : Strong Consumption pattern to continue

    Long term and Stable Growth

    Availability of Skilled Labor Force Assured over Long Term

    Every year 6 million graduates 6 600,000 Engineers 60 150,000 IT professionals 1512,000 PHDs 12Human Dividend

  • 350 million strong Middle Class35

    Rs. 55 Trillion worth of new market to be created by 2025 -20255.5

    India will become worlds 5th largest consumer economy by 2025,20 ,202 5*Mckinsey

    Fastest Growing Mobile Subscriber base in the worldAdding over 10 million new Mobile Subscribers Each MonthJanuary 09: 15 Million | Feb 09: 13.5 MN :1.20091:15. 20092:1350

    Total No of Mobile Connections = 403MN: 43

    Every Year, India adds: :150 million new mobile phones 7.3 million new Personal Computers 1.6 million Cars 7.4 million Two-wheelers

    2007 Global Retail Development Index (GRDI) India is the top destination in the AT Kearney Global Retail Development Index (2007)AT Kearney 2007Huge Consumer Market

  • India is ranked second in AT Kearneys FDI confidence index (2007) AT Kearney20072

    India has the highest returns on Foreign Capital (-US Department of Commerce)()

    FDI on the up: Year 2006: US$ 11.1 BN ; 2007-08: US$ 32.4 BN | April-Nov 2008: US$ 16.58 BN (Up 90%): 2006: 111 ; 2007-08: 324, 2008 4-11 165 (90%)

    100% FDI permitted in manufacturing (except atomicenergy) ,100%

    Investments, dividends, fees are freely repatriable,,

    Foreign investments allowed in capital markets

    State Government compete for Investor Friendly ImageRank Country 1 China 2 India 3 US 4 UK 5 Hong Kong 6 Brazil 7 Singapore 8 The UAE 9 Russia10 Germany

    Top 10 FDI Investment Destinations 10 Investment Friendly Destination

  • Exports growth at over 23%23%

    Total trade in 2006-07: US$ 330 Billion /2007-08: US$ 390 BN2006-07: 3300 / 2007-08: 3900

    2007-08: Exports Growth: 23%/ ImportsGrowth: 27%2007-08 :: 23%/ : 27%

    Manufactured Goods Exports growing at 38%38%

    Main Exporting Destinations: EU, US, Gulfand China:,,

    Open Trade Regime: Between 2001 and 2007,Avg MFN Tariff down from 32.3% to 15.8%: 2001 2007: 32.3%15.8%

    Reliable Trade Partner

  • Economic Powerhouse of the Future

    Strong Economic Fundamentals

    Vibrant Financial Market

    Solid Framework for Business: Democracy, Independent Judiciary, Global Outlook: ,,

    Strong Entrepreneurial Spirit

    Demographic Advantage: Long term growth prospects:

    Strong Domestic Consumption Market

    Valuable Manufacturing Destination: Favorable Policies, Skilled & Abundant labor:,

    Rapidly Improving Infrastructure

    Why INDIA: In Sum :

  • Taiwanese Investment in India: Over US$ 1 Billion: 10

    Promising Sectors for Taiwan

    Infrastructure Auto-Components Food Processing IT/ Electronics Manufacturing Leather/ Footwear Textiles Machinery/ Machine Tools ..etcIT = India + Taiwan IT

  • Bilateral Investment Protection Agreement signed

    Double Taxation Avoidance Agreement & ATA Carnet expected this year

    TAITRA Offices in Mumbai & Chennai

    III Office in Chennai

    TAITRONICS in Chennai

    Regular Dialogue

    Exchange of Delegations

    MOUs between Industry Organizations

    India-Taiwan: Institutional Framework -:

  • 2002 = US$ 1.19 BN 2007 = US$ 4.8 BN2008 = US$ 5.3 BN200211.9200748200853

    In 2008, Indian Exports to Taiwan Declined, Taiwanese Exports to India grew 29%2007165%

    India-Taiwan Trade

    INDIAN EXPORTS TAIWANESE EXPORTS Mineral Fuel, Oil EtcMineral fuels, Oils etc.CerealsElectrical MachineryOrganic chemicalsMachineriesCottonPlastics and its articlesIron and steelOrganic ChemicalsCopper and its articlesIron and SteelAluminium and its articlesMan-made FilamentsFood residuesImpregnated Text FabricsSalt,sulphur, earth,stone Articles of Iron and SteelElectrical MachineriesTanning / dyeing extracts

    Chart2

    1.206

    1.401

    1.945

    2.442

    2.716

    4.879

    5.346

    India-Taiwan Trade (US$ Billions)

    Sheet1

    YearTotal

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2002200320042005200620072008

    Total1.2061.4011.9452.4422.7164.8795.346

    Sheet1

    India-Taiwan Trade (US$ Billions)

    Sheet2

    Sheet3

  • Branding and Brand Positioning Key to Long term Success

    Market Highly Price and Quality Sensitive

    Focus on Innovation and New Products

    Strategic Partners & Local Management can add Value

    Act Local but Think Global: Urban Indian highly In-tune with Global Trends:

    India One Market for Branding; Multiple Markets for sourcing/ manufacturing,;,

    Made in Taiwan Enjoys Prestigean advantage ,

    Be Future Oriented, but Build NOW,The India Deal

  • Elections 20092009 More than 700 million Voting Population | 7

    Elections spread over 1 month | Fully electronic Results out in One Day1 | 1

    Elections 2009: Congress led Coalition gets comfortable majority2009:

    A Vote for Stability: Continued Economic Reform expected:

    And a Vote for Investor Confidence:

    Net Inflows of Foreign Institutional Investors (FIIs) increased from US$ 100 MN in March 09 to US$ 1.3 BN in April 09 | 200931413

    Mumbai Stock Index has gained 46.3% this year | 46.3%

    Indian Rupee has strengthened 5% in May 09 | 55%

    India ranked as the most promising country to survive the Economic Crisis by Servcorp International Business Confidence Survey in April 09 | Servcorp4

  • Elections 20092009IMPLICATIONS

    Strong fundamentals + +

    Dynamic Growth in the last few years + +

    Stable and Reform Oriented Government in place

    = Sustained and Strong Growth Assured=

  • India-Taipei Association-Suite 2010, International Trade Buidling, TWTC,2010333, Keelung Road Section 1, Taipei1333Tel: (02) 2757 6112Fax: (02) 2757 6117

    Email: ddg@india.org.tw / comm@india.org.tw www.india.org.tw For more information or assistance, please contact:,:Thank You

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