There was a time to die for

the nation , now it is the

time to live for the nation.
“WILL INDIA MAKE IT TO THE
LEAGUE OF ECONOMIC
SUPERPOWER IN NEXT 25
YEARS”

Presented Puneet
madaan
by : Gaurav
sadachar
Swapnil
Devroop
pandit
India-youngest country of
the world
• USA – 39.3 years
• Canada – 42.9 years
• Mexico – 32.5 years
•
•
Europe –
France –
45.4 yrs
43.3 yrs
Median
•
•
Italy –
UK
50.7 yrs
44.5 yrs
age by
• Russia – 43.8 yrs 2025
• Japan – 50 yrs
• China -- 39 yrs
• India -- 31.3 yrs
 India today is fast changing –
setting the pace for growth and
stability…
TODAY
• One of the fastest growing
world economies
• Reasonably proactive
• Opening up of sectors for
investment
YESTERDAY

• Promising consumer
• Slow rate of growth
markets
• Bureaucratic
• Significant investment in
• Protected and slow
infrastructure creation for
• Small consumer industry
markets
• Underdeveloped
infrastructure
INDIA ECONOMY
–
REGIONAL
DEMOGRAPHICS

TOURISM
& IT

TOURISM
& IT

FINANCIAL &
BUSINESS
CENTRE
IT & EDUCATON

SILICON
STATE

TOURISM TOURISM
& IT & IT
 KEY FACTORS
•GDP $576 Billion. (GDP
rate 8%)

• Parliamentary form of
Government
• Worlds largest democracy.
• Worlds 4th largest
economy.

• World-class recognition in
IT, bio-technology and
space.
• Largest English speaking
nation in the world.
• 3rd largest standing army
 COND . . .
• 5,000 year old ancient civilization
• 325 languages spoken – 1,652
dialects
• 18 official languages
• 29 states, 5 union territories
• 3.28 million sq. kilometers - Area
• 7,516 kilometers - Coastline
• 1.3 Billion population.

• 5600 dailies, 15000 weeklies and

20000 periodicals in 21
languages with a combined
circulation of 142 million.
ed By youth minist
•Foreign direct investment inflows
•Fastest growing GDP
•Sectoral growth
SECTOR WISE FDI INFLOW IN INDIA
 Year 2000 vs. Year 2020
predictions
US
Japan
Germany
UK
France
Italy
Canada
China
Brazil
Mexico
India
Russia
0 5,000 10,000 15,000 20,000 25,000

GDP (US$bn)

India emerging as one of the top global economies

INDIA’S contribution to
world’s GDP growth
SECTOR WISE GDP GROWTH
OF INDIA
 FOREIGN CURRENCY
RESERVE GROWTH OF
INDIA
 Other key sectors
• The government has recently set up a National Manufacturing Competitiveness Council
Manufacturing • Progressive reduction in taxes and tariffs, India emerging as a manufacturing hub
Sector • Manufacturing exports from India likely to grow to USD 300 billion in 2015 from USD 48
billion in 2003

• India is the world’s largest producer of tea, sugarcane and milk

Food • Processing industry is nascent but is growing rapidly
processing • 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

• The second largest textile industry in the world

Textiles • 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
offered to the units in SEZs
• Duty free import/domestic procurement of goods for development,
operation and maintenance of 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% for next
5 years thereafter and 50% of the ploughed back export profit for
next 5 years.
• Exemption from minimum alternate tax under section 115JB of the
Income Tax Act.
• External commercial borrowing by SEZ units upto US $ 500 million
in a year without any maturity restriction through recognized
banking channels.
• Exemption from Central Sales Tax.
• Exemption from Service Tax.
• Single window clearance for Central and State level approvals.
• Exemption from State sales tax and other levies as extended by
the respective State Governments.  
 How will the global
economic slowdown affect
India's innovation
potential?
• INDIA ranks second in the world in terms of
financial attractiveness, people and skills
availability and business environment.
• deepening recession will force Western companies to
outsource even more of their knowledge work to India as
they desperately seek to streamline their cost structure.
• This will give a big boost to India's nascent
Knowledge Process Outsourcing (KPO) market.
• This is exactly what happened after 2000, once the dot-
com bubble burst: IT outsourcing and
Business Process Outsourcing (BPO) to India really took
off.
 India is one of the fastest
growing automotive
markets in Asia Pacific…
16 Sales of passenger cars by country - 2003-2008
14.1
14 13.0
1.4
11.9
12 11.3 1.4 0.9
10.8
10.1 1.3 0.8 1.4
1.2
10 1.1 0.7 1.3
1.0 0.6 1.6
0.6 1.3
Million units

0.4 1.1 1.2 1.5

8 1.3
1.0 1.1 1.2
0.9 4.1
6 2.6 2.9 3.4
2.0 2.3

4
4.5 4.7 4.6 4.5 4.6 4.6 Extra 3 million
2
units expected
0 from China
2003 2004 2005 2006 2007 2008 and India
Japan China
India South Korea
Thailand Others
Note: "Others" includes Malaysia, Indonesia, Philippines, Taiwan and
Vietnam
Source: EIU, "World automotive outlook", 2004
 IT & 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 India seen as High end research,
an outsourcing analytics and design, large
(NASSCOM-KPMG estimates) hub pool of skilled technical
 In India the IT sector employs around personnel available
Huge export
650,000 people currently, which is likely to potential yet to
increase to 2 million by 2010 be tapped Lower cost
 Government backing for the sector
Higher value added
 Infrastructure support through setting up services planned and new
of technology parks and continuing markets aggressively

O
strengthening of communication facilities targeted

pportunities
 100% FDI allowed in the sector through
the automatic route
 India exports IT products and IT enabled
services to 133 countries
IT & ITeS Sectors
 220 of the Fortune 500 companies
outsource their software from india