FDI and Real Estate India

8/10/2019 FDI and Real Estate India

1/24

INDIAS PROMISE Challenges & Opportunities


2/24

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


3/24

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


4/24

UPCOMING STATE ASSEMBLY ELECTION

Population179,000,000

80 ParliamentaryConstituencies

4 Phase Poll

April / May


5/24


6/24

RED TAPISM

1500 KM8 Days

RED TAPE / TAX ANOMALIES / POOR INFRASTRUCTURE

July 2006


7/24

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


8/24

LAND ACQUISITION-SEZs

NANDIGRAM

WEST BENGAL

5000 POLICE

16 KILLED

68 WOUNDED

TOTAL BANDH

HIGHLY POLITICIZED SEZs ON HOLD


9/24

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


10/24

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


11/24

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

180

200

1995 2000 2006


12/24

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


13/24

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
http://www.boeing.com/


14/24

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.jpg


15/24

U.S. DEFENSE COMPANIES

remont Group
http://www.boeing.com/http://www.lockheedmartin.com/wmshttp://www.ge.com/http://www.honeywell.com/


16/24

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


17/24

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


18/24

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
http://www.gsk.com/http://www.jnj.com/home.htm


19/24

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
http://welcome.hp.com/country/us/en/welcome.html


20/24

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.jpg


21/24


22/24

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


23/24

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/


24/24

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

FDI and Real Estate India

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