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India that is Bharat!Dr. Nimit Chowdhary

ProfessorIndian Institute of Tourism and Travel

Management

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Agenda!

• Geography• People• Government• Economy• Sectors• Trade• India: Economic

powerhouse

• Some facts• Competitive

advantage• Best prospects

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Geography

Area 3.29 million sq. km. (1.27 million sq. mi.); about one-third the size of the U.S.

Cities Capital--New Delhi (pop. 12.8 million, 2001 census). Other major cities--Mumbai, formerly Bombay (16.4 million); Kolkata, formerly Calcutta (13.2 million); Chennai, formerly Madras (6.4 million); Bangalore (5.7 million); Hyderabad (5.5 million); Ahmedabad (5 million); Pune (4 million)

Terrain Varies from Himalayas to flat river valleys

Climate Alpine to temperate to subtropical monsoon

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Population (2004) 1.1 billion; urban 27.8%.

Annual growth rate 1.3%; Density: 324/sq. km.

Ethnic groups Indo-Aryan 72%, Dravidian 25%, Mongoloid 2%, others 1%.

Religions Hindu 82.41%, Muslim 12%, Christian 2.3%, Sikh 1.9%, other groups including Buddhist, Jain, Parsi 2.5%.

Languages Hindi, English, and 16 other official languages ; 3500+ dialects

Literacy 65.42 %

Health Infant mortality rate—54.6/1,000. Life expectancy—64.7 years

People

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Type Federal republic

Independence August 15, 1947 Constitution January 26, 1950 Branches Executive--president (chief of state), prime minister

(head of government), Council of Ministers (cabinet). Legislative--bicameral parliament (Rajya Sabha or Council of States, and Lok Sabha or House of the People). Judicial --Supreme Court.

Divisions 28 states,* 7 union territories Suffrage Universal over 18. Political parties

BJP, Indian National Congress (INC), Janata Dal (United), Communist Party of India, Communist Party of India-Marxist, and numerous regional and small national parties.

Government

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GDP (FY2005-06) $939 billion

Real growth rate (FY2006-07)

9.4%

Per capita GDP (FY2006-07)

$730

Natural resources Coal, iron ore, manganese, mica, bauxite, chromite, thorium, limestone, barite, titanium ore, diamonds, crude oil.

Work force 450 million

Agriculture 60%

Industry 12%

Services 28%

Economy

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Agriculture 18% of GDP. Products--wheat, rice, coarse grains, oilseeds, sugar, cotton, jute, tea

Industry 27% of GDP. Products--textiles, jute, processed food, steel, machinery, transport equipment, cement, aluminum, fertilizers, mining, petroleum, chemicals, and computer software.

Services and transportation

55% of GDP.

Sectors

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Exports (FY2005-06)

$105 billion; agricultural products, engineering goods, precious stones, cotton apparel and fabrics, gems and jewelry, handicrafts, tea

Software exports $22 billion

Imports (FY2005-06)

$156 billion; petroleum, machinery and transport equipment, electronic goods, edible oils, fertilizers, chemicals, gold, textiles, iron and steel

Major trade partners

U.S., China, EU, Russia, Japan

Trade

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Growth Estimated 9.6 percent in 2007-08; 8.6 percent in last quarter

Economy 10th largest economy in the world and one of its fastest growing; fourth largest in purchasing-power parity terms

Purchasing power

In 2005, approximately 170-300 million people had growing purchasing power, thus creating a growing middle-class consumer population

Youth Power

Over 58 percent of the Indian population is under the age of 20. That is over 564 million people, nearly twice the total population of the United States

Retail Mkt. $286 billion (only 3.9 percent is organized retail).

Growth of Malls

375 shopping malls by 2007 from 25 in 2003; Estimated space: 90 million sq.ft.

Middle-class

300 million and estimated to be growing at 5 percent annually

Economic Powerhouse!!Tour Guiding Series

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Did you know that India…

• Is the world's second largest small car market• Is one of only three countries that makes its own

supercomputers• Is one of six countries that launches its own satellites;

one hundred of the Fortune 500 have R & D facilities in India

• Has the second largest group of software developers after the U.S.

• Lists 5,000 companies on the Bombay Stock Exchange; only the NYSE has more

• Is the world's largest producer of milk, and second largest producer of food, including fruits and vegetables

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India: Competitive advantage

• Stable democratic environment in over 60 years of independence.

• One of the fastest growing economies in the world, with annual GDP growth averaging over 6% over the last 15 years. Government target is to increase growth rate to 8% in the Tenth Five Year Plan period (2002-07). (We got 9 percent plus)

• Industrial production growth averaging around 6% over the last five years. Services sector growth averaging 8%. Inflation under control at less than 3 - 5%. Stable local currency. Foreign exchange reserves of over US$ 300 billion and still growing.

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India: Competitive advantage

• Large market size with a middle class population of 250-350 million with increasing purchasing power reflected by remarkable increase in purchase of consumer durables in recent years.

• Access to regional international markets through membership of regional integration frameworks such as SAARC. Proximity to affluent West Asian and ASEAN markets.

• Foreign investment welcome in almost all sectors barring some of strategic concern like atomic energy. Even defence production is now open to the private sector and foreign investors.

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India: Competitive advantage• Conducive foreign investment environment that

provides rapid approvals, freedom of entry, investment, location, choice of technology, import and export.

• Large and diversified infrastructure spread across the country. Large resources of untapped natural wealth.

• Thrust on technology, innovation and knowledge base. Home to premier world-renowned educational, technical and management institutions. Developing as one of the largest cost - competitive technical workforce nations.

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India: Competitive advantage

• Large manufacturing capability, spanning almost all area of manufacturing activities Well developed R&D infrastructure and technical and marketing services.

• Special investment and tax incentives given for exports and certain sectors such as power, electronics, telecom, software, oil & gas, and research and development activities.

• Well-developed banking system, with a commercial banking network of over 70,000 branches, supported by a number of national and State level financial institutions.

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India: Competitive advantage

• Vibrant capital market comprising 23 stock exchanges with over 10,000 listed companies.

• Acceleration of the privatisation process, restructuring of public enterprises, and reform of the tax structure.

• Uniform VAT since 1 April 2003. • Established, independent judiciary with a

hierarchy of courts. • Legal protection for Intellectual Property Rights

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Best prospects

• Airport & Ground Handling

• Computer and Peripherals

• Education Services • Electrical Power

Generation, Transmission & Distribution Equipment

• Food Processing & Cold Storage Equipment

• Machine Tools • Medical equipment

• Mining & Mineral Processing Equipment

• Oil & Gas Field Machinery

• Pollution Control Equipment

• Safety and security equipment

• Telecommunication Equipment

• Textile Machinery • Hospitality

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