Roads to be travelled

29
www.pwc.co.uk !"#$%& %()#*+,-+)%, *"%,,.$(.& !"#$% '" () '*#+),,)$ !"#$%&' )*+,

Transcript of Roads to be travelled

Page 1: Roads to be travelled

www.pwc.co.uk

!"#$% &'%()#*+,-+)%,'*"%,,.$(.&'!"#$%&'"&()&'*#+),,)$&

&

!"#$%&'()*+,(

Page 2: Roads to be travelled

&

-'."&/0#&'1$23&4$$5&'3(66-7(+(89%0:;9&:#(-<0"&7(6$:=$:(>4)?(@AB(CD(EFF(G*H()*(I,JK(,***7(LD(EFF(G*H()*(I)+)(F@,)7(///M5/"M"$M2;(

PricewaterhouseCoopers LLP is a limited liability partnership registered in England with registered number OC303525. The registered office of PricewaterhouseCoopers LLP is 1 Embankment Place, London WC2N 6RH.PricewaterhouseCoopers LLP is authorised and regulated by the Financial Conduct Authority for designated investment business.

/0).10)2')-"."/0-&1*"2'34&&

5"2)+)*6&#.&)78#,,9&:#%-0.#'0.1&%'"*9&3#%&()).&8.:",$0.1&'3#'&3",$%&/"*)&;*":"8.$&%01.0:0-#.-)&:"*&

; &

<.$))$6&8.'0,&*)-).',96&+)*9&,0'',)&#'').'0".&"8'%0$)&=30.#&3#%&()).&$)+"')$&'"&8.$)*%'#.$0.1&'3)&

)-"."/0-&/0*#-,)&":&*)-).'&$)-#$)%4&&>'0,,&,)%%&3#%&()).&$)+"')$&'"&'3)&0.-*)#%0.1,9&8*1).'&78)%'0".&":&

3"2&'3)&-"8.'*9&20,,&/))'&0'%&:8'8*)&.8'*0'0".#,&.))$%4&&

*)-"1.0'0".&":&'3)&0/;"*'#.-)&":&'30%&'";0-&2)&3#+)&;*"$8-)$&'30%&;#;)*&'"&3013,013'&'3)&/"%'&

.8'*0'0".#,&.))$%4&&

?)&3";)&0'&20,,&%'0/8,#')&$0%-8%%0".&20'3&*)1#*$&'"&'3)&)-"."/0-6&).+0*"./).'#,&#.$&%"-0#,&

*#/0:0-#'0".%&":&'3)%)&0%%8)%&#.$&0.%;0*)&#-'0".&'"&#$$*)%%&-3#,,).1)%&#.$&-#;0'#,0%)&".&";;"*'8.0'0)%4&

@8*'3)*/"*)6&2)&2"8,$&2),-"/)&'3)&";;"*'8.0'9&'"&$0%-8%%&'3)&0%%8)%&*#0%)$&0.&'30%&;#;)*&20'3&9"8&

#.$&/#9&()&*)#-3)$&+0#&'3)&-".'#-'&0.:"*/#'0".&;*"+0$)$&(),"24&

&

&

A"8*%&%0.-)*),9&

!

& ! !

"#$%&!'&()*! +&,-(./!0%.*#12)3!B2=&B#*'.)*6&=30.#&C8%0.)%%&D*"8;& E1*0-8,'8*)&E$+0%"*&'"&B2=&

&

Page 3: Roads to be travelled

Roads to be travelled PwC Contents

&

!0$-.$-&'

3+44%)5' 6

!"#$%'%$2'%()#*+,-+).7'80%2&'-0'9.'-)%:.,,.2' ;

42)1#567&2)! 8

"#669:! ;

"#669:!,2)17.(&)71! <8

=2>%.)5%)7!()/!7-%!(*.&,#97#.%!1%,72.! ?<

<90+-'=1!' ;>

=92@(9!A*.&@#1&)%11!B%7$2.C! ?D

4-&)(!E#1&)%11!=.2#6! ?D

F$4!42)7(,71! ?D &

&

Page 4: Roads to be travelled

challenges

Roads to be travelled PwC 1

&

F+0$).-)&":&#.&)-"."/0-&%,"2$"2.&0.&=30.#&0%&

$)/".%'*#')$&-,)#*,9&(9&'3)&,)#$0.1&0.$0-#'"*%&":&

:#,,0.1&-"//"$0'0)%&;*0-)%4&>":'&-"//"$0'0)%&;*0-)%&

3#+)&;#*#,,),)$&'3)&$)-,0.)&":&-";;)*6&"0,&#.$&1#%&0.&

*)-).'&/".'3%4&C8'&'3)*)&0%&#&%01.0:0-#.'&$0::)*).-)&

()'2)).&'3)/4&=30.#&0%&,0G),9&'"&%30:'&0'%&)-"."/0-&

)/;3#%0%&:*"/&#&3013H0.+)%'/).'6&)I;"*'H$*0+).&

/"$),&'"2#*$%&".)&%;8**)$&(9&$"/)%'0-&

-".%8/;'0".4&<.&-*8$)6&#,/"%'&%0/;,0%'0-6&')*/%6&

/#.8:#-'8*0.1&#.$&0.:*#%'*8-'8*)&%;).$0.1&%,"2%&

230,)&#&%)*+0-)H,)$&)-"."/9&)/)*1)%&"+)*&'0/)4&J38%6&

230,)&'3)*)&/013'&()&%"/)&%3"*'H')*/&#$K8%'/).'6&

1*"20.1&#::,8).-)&%3"8,$&*)/#0.&'3)&."*/4&<.&%3"*'6&

'3)&.))$&'"&(80,$&(*0$1)%6&30132#9%&#.$&-"//)*-0#,&

;*";)*'9&20,,&()-"/)&,)%%&;*"/0.).'&(8'&$0)'%&20,,&

-".'0.8)&'"&-3#.1)4&J30%&20,,&;,#-)&)."*/"8%&(8*$).%&

".&#.&#,*)#$9&-3#,,).1)$&$"/)%'0-&:""$&%9%')/&#.$&

3#+)&%01.0:0-#.'&*#/0:0-#'0".%&".&0.')*.#'0".#,&'*#$)&

0.&#1*0-8,'8*)4(

J3)&#+)*#1)&=30.)%)&)#'%&%"/)&LMG1&":&/)#'&#&9)#*6&

#.&0.-*)#%)&":&NNG1&:*"/&OPPQ&23).&%"/)&RSG1&;)*&

;)*%".&2#%&-".%8/)$4&<:&=30.)%)&/)#'&-".%8/;'0".&

/0**"*%&"'3)*&$)+),";)$&=30.)%)&%"-0)'0)%&"+)*&'0/)6&

2)&-#.&#%%8/)&J#02#. %&-8**).'&MRG1&-".%8/;'0".&0%&

#&*)#,0%'0-&,".1H')*/&)I'*#;",#'0".4&J"&%#'0%:9&'30%&

0.-*)#%)$&-".%8/;'0".6&=30.#&20,,&*)780*)&#.&

#$$0'0".#,&TR/.&'"..)%&":&-"*.&#.$&%"9()#.%&:"*&

:))$%'"-G4&<.&'8*.6&'30%&20,,&*)780*)&#.&#$$0'0".#,&

NL/.&3)-'#*)%&":&#1*0-8,'8*#,&,#.$& &#.&#*)#&'3)&%0U)&

":&F.1,#.$&#.$&?#,)%& &230-3&=30.#&%0/;,9&$")%&

."'&3#+)4&

<.-*)#%0.1&/)#'&-".%8/;'0".&3#%&/#.0:)%')$&0'%),:&0.&

=30.#&,"%0.1&0'%&.)#*&%),:H%8::0-0).-9&0.&%"9()#.%& &#&

G)9&:))$%'"-G4&?30,)&0'&2#%&(#*),9&%),:H%8::0-0).'&0.&'3)&

NTMP%&#.$&NTVP%6&:*"/&'3)&,#')&NTTP%6&=30.)%)&

0/;"*'%&":&%"9()#.%&3#+)&%')#$0,9&0.-*)#%)$&#.$&."2&

*);*)%).'&VMW&":&-".%8/;'0".4&="*.& &'3)&"'3)*&

/#K"*&:))$%'"-G& &0%&#'&'3)&()10..0.1&":&#&'*#K)-'"*96&

230-3&20,,&,0G),9&;*"+)&%0/0,#*&'"&'3)&)I;)*0).-)&":&

%"9()#.%4&=30.#&."2&0/;"*'%&#&%/#,,&78#.'0'9&":&-"*.&

-"/;#*)$&'"&'3)&;#%'&23).&0'&2#%&%),:H%8::0-0).'4&

>0/8,'#.)"8%,96&23)#'&#.$&*0-)& &'3)&/#0.&:""$&-*";%&

:"*&38/#.&-".%8/;'0".& &#*)&K8%'&%),:H%8::0-0).'4&

J3)%)&$)/#.$&;*)%%8*)%&3#+)&()).&#81/).')$&(9&

%8;;,9H%0$)&-".%'*#0.'%&%8-3&#%&$0/0.0%3)$&:#*/,#.$6&

;",,8')$&*0+)*%6&$);,)')$&#780:)*%6&"+)*8%)&":&

:)*'0,0%)*%6&8.-,)#*&"2.)*%30;&":&:#*/,#.$&#.$&#.&

#*-3#0-&,)1#,&-"$)4&@0I0.1&'3)%)&'#G)%&'0/)6&-#;0'#,&#.$&

)::"*'6&230-3&0%&239&'3)&=30.)%)&1"+)*./).'&0%&

'#-G,0.1&'3)%)&-3#,,).1)%&20'3&#&(*"#$&*#.1)&":&

/)#%8*)%4&!)-).'&;",0-9&%-3)/)%&0.-,8$)&'3)&

,0()*#,0%#'0".&":&,)#%0.1&#-'0+0'96&'3)&;*"/"'0".&":&

,#*1)H%-#,)&/)-3#.0%)$&:#*/%6&'#-G,0.1&,#.$&#.$&2#')*&

;",,8'0".&#.$&'3)&*)%'*8-'8*0.1&":&

#1*0-8,'8*#,&%8(%0$0)%4&

E%&#1*0-8,'8*)&/"$)*.0%)%6&-"/;#.0)%6&230-3&'3*"813&

')-3.","19&-#.&'*#.%:"*/&90),$%6&).3#.-)&"8';8'&"*&

#,,"-#')&*)%"8*-)%&/"*)&)::0-0).',96&20,,&/#G)&

%01.0:0-#.'&1#0.%4&>"&'""&20,,&-"/;#.0)%&'3#'&-#.&

$),0+)*&%)-8*)6&%#:)&#.$&%8%'#0.#(,)&%"8*-)%&":&:""$4&

D,"(#,&:0*/%&'3#'&-#.&;*"+0$)&%)*+0-)%&%8-3&#%&$010'#,&

/#;;0.16&%"0,&#.#,9%0%6&;*)-0%0".&:#*/0.16&2#%')&

/#.#1)/).'6&'*#-)#(0,0'9&#.$&%"&".&20,,&:0.$&

%8(%'#.'0#,&";;"*'8.0'0)%4&

>),:H%8::0-0).-9&0%&."&,".1)*&#&;*#-'0-#,&;",0-9&1"#,&:"*&

=30.#4&J3)&1"+)*./).'&#;;)#*%&'"&*)-"1.0%)&20'3&0'%&

;*0"*0'0)%&%30:'0.1&'"2#*$%&3013H+#,8)&-*";%6&%8-3&#%&

:*80'%&#.$&+)1)'#(,)%6&#.$&#&:"-8%&".&78#,0'9&#.$&:""$&

%#:)'94&>0/8,'#.)"8%,96&=30.#&0%&+).'8*0.1&"+)*%)#%&'"&

(",%')*&0'%&:""$&%)-8*0'9&'3"813&0.+)%'/).'%&0.&:"*)01.&

:#*/,#.$&#.$&'3)&#-780%0'0".&":&-"/;#.0)%&#-*"%%&'3)&

(*"#$)*&:""$&+#,8)&-3#0.4&J30%&0%&23)*)&'3)&1,"(#,&

0/;#-'&":&=30.# %&0.-*)#%0.1&:""$&.))$%&20,,&()&:),'&

/"%'&#-8'),94&E,*)#$96&.8/)*"8%&-"8.'*0)%&3#+)&

)*)-')$&(#**0)*%&'"&:"*)01.&"2.)*%30;&":&:#*/,#.$&#%&#&

*)%;".%)&'"&,#.$&;8*-3#%)&(9&-"8.'*0)%&%8-3&#%&=30.#4&

<.&%"/)&-#%)%&'30%&#,*)#$9&)I').$%&'"&'3)&#-780%0'0".&

":&:""$&-"/;#.0)%4&5"2)+)*6&'3)%)&#-780%0'0".&'*).$%6&

$*0+).&(9&$"/)%'0-&;",0-9&0/;)*#'0+)%6&#*)&,0G),9&

'"&-".'0.8)4&

&

3+44%)5'

Page 5: Roads to be travelled

challenges

Roads to be travelled PwC 2

=30.# %&%0U)6&%-#,)&#.$&0'%&-".%)78).'&0/;#-'&".&#.9&

(8%0.)%%&%)-'"*&1,"(#,,9&3#+)&()-"/)&#,/"%'&#&-,0-3X&

'"&'3)&/#.9&"(%)*+)*%6&#.#,9%'%&#.$&2#'-3)*%&":&'3)&

2"*,$ %&%)-".$&,#*1)%'&)-"."/94&@*"/&'3)&)I;"*'&":&

')I'0,)%6&),)-'*".0-%&#.$&'"9%&'"&'3)&0/;"*'&":&0*".&"*)&

#.$&-";;)*6&#'').'0".&3#%&%20'-3)$&0.&*)-).'&9)#*%&

'"2#*$%&"'3)*&%)-'"*%& &/"%'&."'#(,9&#1*0-8,'8*)4&<'&

3#%&()-"/)&0.-*)#%0.1,9&#;;#*).'&'3#'&#&/"*)&

#::,8).'&#.$&/"*)&8*(#.0%)$&=30.#&0%&)I;)*0).-0.1&#&

$*#/#'0-&0.-*)#%)&0.&'3)&-".%8/;'0".&":&:""$& &

%;)-0:0-#,,9&/)#'& &#.$&'30%&'""&20,,&3#+)&#&1,"(#,&

0/;#-'4&5"2&2)&-#/)&'"&'30%&;"0.'&0%&."'&#&%0/;,)6&

%'*#013':"*2#*$&%'"*9&":&1*"20.1&#::,8).-)4&J"&

8.$)*%'#.$&'3)&.8#.-)6&2)&.))$&'"&,""G&0.&$)'#0,&#'&

3"2&=30.)%)&:""$&-".%8/;'0".&3#%&-3#.1)$&"+)*&

*)-).'&$)-#$)%4&

?30,)&/"%'&#.#,9%0%&#;;*"#-3&'30%&0%%8)&:*"/&#&

.#'0".#,&,)+),6&#&-"/;,)')&;0-'8*)&".,9&)/)*1)%&(9&

-".%0$)*0.1&'3*))&:#-'"*%Y& &NZ&'3)&-3#.1)&0.&;)*&

-#;0'#&-#,"*0)%&-".%8/)$&#.$&0'%&-"/;"%0'0".6&OZ&

-".%8/;'0".&;#'')*.%&":&%;)-0:0-&-"//"$0'9&1*"8;%&

;)*&-#;0'#6&#.$&QZ&'3)&"+)*#,,&$)/#.$&#.$&%8;;,9&":&

-"//"$0'0)%&#'&.#'0".#,&,)+),4&J#G0.1&#,,&'3*))&

'"1)'3)*&;*"+0$)%&-,)#*&0.%013'%&0.'"&=30.)%)&:""$&

-".%8/;'0".&;#'')*.%&#.$&"::)*%&0.$0-#'"*%&:"*&

'3)&:8'8*)4&

&

& (

&

!"#$%'%$2'%()#*+,-+).7'80%2&'-0'9.'-)%:.,,.2'

Page 6: Roads to be travelled

ricultural challenges

Roads to be travelled PwC 3

!0$&+4?-#0$'=".%0$)*&'3)&'#(,)&(),"2 &0'&3013,013'%&$#0,9&-#,"*0)&-".%8/;'0".&;)*&;)*%".&#-*"%%&#&*#.1)&":&-"8.'*0)%&"+)*&

'3)&;#%'&:0+)&$)-#$)%4&<.&NTMN6&'3)&#+)*#1)&=30.)%)&-".%8/)$&K8%'&#("8'&SPW&":&'3#'&":&'3)&#+)*#1)&E/)*0-#.&"*&

C*0'".4&=30.)%)&-".%8/;'0".&,)+),%&2)*)&#,%"&,"2)*&'3#.&'3#'&":&0'%&.)013("8*%&[#,#9%0#6&J3#0,#.$&#.$&

\0)'.#/4&B#*'&":&'3)&*)#%".&:"*&'30%&2#%&'3#'&=30.#&3#$&%8::)*)$&1*)#',9&8.$)*&'3)&D*)#'&])#;&@"*2#*$&#.$&'3)&

3"**"*%&":&'3)&=8,'8*#,&!)+",8'0".&3#$&*)#-3)$&#&;)#G4&5"2)+)*6&:",,"20.1&'3)&,0()*#,0%#'0".&;*"-)%%&0.&NTMV6&

=30.#&-#813'&8;&*#;0$,9&20'3&'3)&*)%'&":&'3)&2"*,$4&C9&OPNN6&'3)&#+)*#1)&=30.)%)&2#%&-".%8/0.1&/"*)&-#,"*0)%&

;)*&$#9&'3#.&'3)&#+)*#1)&[#,#9%0#.6&J3#06&<.$".)%0#.6&@0,0;0."6&\0)'.#/)%)&#.$&)+).&^#;#.)%)4&["*)&

0/;"*'#.',96&-#,"*0)&-".%8/;'0".&2#%&:#%'&#;;*"#-30.1&'3)&,)+),%&":&>"8'3&_"*)#6&'3)&`_&#.$&'3)&`>4&

Consumption (kcal/capita/day)

Total calories 1971 1981 1991 2001 2011

China 1,863 2,178 2,444 2,819 3,074

Indonesia 1,964 2,315 2,356 2,424 2,713

Malaysia 2,527 2,747 2,650 2,822 2,855

South Korea 2,899 2,970 2,950 3,080 3,329

Thailand 2,194 2,198 2,245 2,578 2,757

Philippines 1,837 2,221 2,214 2,374 2,608

Vietnam 1,957 2,004 1,856 2,298 2,703

UK 3,245 3,091 3,210 3,402 3,414

US 3,052 3,218 3,522 3,709 3,639

Japan 2,729 2,750 2,934 2,890 2,719 &

N$2'"&D(LO!(&

E'&:0*%'&1,#.-)6&0'&#;;)#*%&"(+0"8%&'3#'&1*"2'3&0.&=30.)%)&;)*&-#;0'#&-".%8/;'0".&3#%&%,"2)$&$"2.4&E.&)#%9&

-".-,8%0".6&230-3&-"8,$&()&$*#2.6&0%&'3#'&%0.-)&0'&0%&-,"%)&'"&'3)&,)+),%&":&$)+),";)$&-"8.'*0)%6&:8'8*)&1*"2'3&0%&

,0G),9&'"&()&/8')$4&5"2)+)*6&-".%0$)*0.1&'"'#,&-#,"*0)%&-".%8/)$&#,".)&$0%'"*'%&'3)&;0-'8*)4&=".%0$)*&'3)&'#(,)%&

(),"2Y&$#0,9&;)*&-#;0'#&-#,"*0)%&-".%8/)$&:*"/&+)1)'#,&%"8*-)%&#.$&#.0/#,&%"8*-)%&%);#*#'),94&\)1)'#,&;*"$8-'%&

#*)&-30):,9&-)*)#,%6&%'#*-3)%6&+)1)'#(,)%6&"0,%&#.$&:*80'%6&230,)&#.0/#,&;*"$8-'%&#*)&-30):,9&/)#'6&)11%6&/0,G&

#.$&:0%34&

J30%&0%&23)*)&'3)&;*)+0"8%&-".-,8%0".&()-"/)%&,)%%&"(+0"8%4&<.&+)1)'#,&;*"$8-'%6&=30.)%)&;)*&-#;0'#&-#,"*0)&

-".%8/;'0".&3#%&*0%).&(9&#("8'&#&'30*$&"+)*&'3)&;#%'&:0+)&$)-#$)%6&230,)&'3#'&:*"/&#.0/#,&;*"$8-'%&3#%&

0.-*)#%)$&%"/)&:"8*&#.$&#&3#,:&'0/)%4&J30%&0%&0.&,0.)&20'3&23#'&0%&":').&*):)**)$&'"&#%&C)..)'' %&]#24&[)**0,,&_4&

C)..)''&."')$&0.&30%&NTRN&;8(,0-#'0".&>1&0#(.:(?0#.$:0<(P.&#3 6&'3#'&-#,"*0)%&$)*0+)$&:*"/&%'#;,)&:""$%&$)-*)#%)&#%&0.-"/)&0.-*)#%)%&#.$6&#%&#&-".%)78).-)6&-#,"*0)%&:*"/&"'3)*&:""$%&%8-3&#%&/)#'&0.-*)#%)4&

& &

Page 7: Roads to be travelled

challenges

Roads to be travelled PwC 4

Consumption (kcal/capita/day)

Vegetal calories 1971 1981 1991 2001 2011

China 1,738 2,002 2,128 2,296 2,383

Indonesia 1,904 2,238 2,242 2,299 2,536

Malaysia 2,244 2,336 2,134 2,297 2,336

South Korea 2,784 2,730 2,626 2,642 2,775

Thailand 2,007 1,995 1,978 2,284 2,410

Philippines 1,581 1,980 1,925 2,020 2,218

Vietnam 1,829 1,880 1,690 2,004 2,129

UK 2,014 1,965 2,175 2,395 2,425

US 2,056 2,258 2,544 2,697 2,644

Japan 2,284 2,211 2,316 2,287 2,166 &

N$2'"&D(LO!((

Consumption (kcal/capita/day)

Animal calories 1971 1981 1991 2001 2011

China 125 177 317 523 691

Indonesia 60 77 115 126 177

Malaysia 284 411 516 525 519

South Korea 115 240 324 439 554

Thailand 188 203 267 294 347

Philippines 256 241 290 354 390

Vietnam 128 124 166 294 574

UK 1,231 1,126 1,035 1,007 989

US 996 961 978 1,012 995

Japan 445 539 618 603 553

N$2'"&D(LO!(&

="/;#*)$&'"&'3)&`>&#.$&'3)&`_6&=30.)%)&+)1)'#,H$)*0+)$&-#,"*0)%&0.&OPNN&#*)&K8%'&/#*10.#,,9&()30.$6&230,)&

#.0/#,H$)*0+)$&-#,"*0)%&#*)&%'0,,&QPW&,"2)*4&J30%&0/;,0)%&'3#'&0.&'3)&:8'8*)6&1*"2'3&0.&+)1)'#,&-".%8/;'0".&0%&

,0G),9&'"&()&/8')$6&(8'&1*"2'3&0.&#.0/#,&;*"')0.&20,,&,0G),9&*)/#0.&%'*".14&<.&"'3)*&2"*$%6&'3)&"+)*#,,&=30.)%)&

:""$&-".%8/;'0".&;0-'8*)&20,,&*)/#0.&#&1,"(#,,9&;*"/0.).'&'3)/)&0.&'3)&9)#*%&#3)#$& &#'&,)#%'&20'3&*)%;)-'&'"&

#.0/#,&;*"$8-'%4&

C*)#G0.1&$"2.&'3)&-".%8/;'0".&%'#'0%'0-%&:8*'3)*6&'3)&-3#*'&(),"2&%3"2%&'3)&-3#.1)&0.&=30.)%)&;)*&-#;0'#&

-#,"*0)&-".'*0(8'0".&:*"/&$0::)*).'&-"//"$0'0)%&"+)*&'3)&;#%'&:0+)&$)-#$)%4&J3)&/"%'&"(+0"8%&"(%)*+#'0".%&#*)&

'3)&$)-,0.)&0.&-#,"*0)&-".'*0(8'0".&:*"/&-)*)#,%& &:*"/&#;;*"I0/#'),9&'2"H'30*$%&0.&NTMN&'"&,)%%&'3#.&3#,:&0.&

OPNN6&#.$&'3)&0.-*)#%)&0.&-#,"*0)&-".'*0(8'0".&:*"/&#.0/#,&;*"$8-'%&:*"/&MW&'"&OOW&"+)*&'3)&%#/)&;)*0"$4&

>0.-)&-".%8/;'0".&":&#.0/#,&;*"$8-'%&0/;,0)%&'3)&0.$0*)-'&-".%8/;'0".&":&-)*)#,%6&'3)&.)'&-3#.1)&0.&-)*)#,&

$)/#.$&0%&."'&-,)#*&:*"/&'30%4&

! !

Page 8: Roads to be travelled

challenges

Roads to be travelled PwC 5

4-&)(!,(92.&%!,2)1#567&2)!/&17.&@#7&2)&

&

N$2'"&D(LO!(&

J"&#.%2)*&'3#'&78)%'0".&2)&.))$&'"&,""G&#'&-".%8/;'0".&0.&G0,"1*#/%4&<.&OPPQ6&'3)&#+)*#1)&=30.)%)&-".%8/)$&

#*"8.$&RSG1&":&/)#'&;#6&":&230-3&#("8'&MNW&2#%&;"*G4&C9&OPNQ6&@EB!<&)%'0/#')$&'3#'&'30%&3#$&0.-*)#%)$&'"&

#;;*"I0/#'),9&LMG16&#&OQW&0.-*)#%)&0.&#&$)-#$)4&E'&'3)&%#/)&'0/)6&'3)&#+)*#1)&E/)*0-#. %&/)#'&-".%8/;'0".&

2#%&)%'0/#')$&'"&()&#,/"%'&$"8(,)&'3#'&":&'3)&=30.)%)4&5"2)+)*6&0'&-"8,$&()&K8%'0:0#(,9&#*18)$&'3#'&'3)&

E/)*0-#.&.8/()*&*):,)-'%&)I-)%%0+)&,)+),%&":&-".%8/;'0".&#.$&'3#'&=30.#&0%&8.,0G),9&'"&)+)*&*)#-3&'3"%)&;)#G%4&

E&()'')*&().-3/#*G&:"*&=30.#&2"8,$&()&#&$)+),";)$&=30.)%)&%"-0)'9&%8-3&#%&J#02#.4&a"')&'3#'&>0.1#;"*)&"*&

5".1&_".1&2"8,$&."'&()&#;;*";*0#')&:"*&'30%&;8*;"%)&%0.-)&'3)9&3#+)&'""&/#.9& "8',0)*% &#.$&*).$)*&#.9&

/)#.0.1:8,&-"/;#*0%".%&*)$8.$#.'4&

Meat consumption (kg/person/year) Country 2003 2013 2015 2020 2025 China 46 57 60 67 73 European Union 76 77 78 79 80 Hong Kong 104 145 147 151 156 Indonesia 8 9 9 10 11 Japan 43 47 48 49 51 Philippines 25 27 28 30 31 Russia 45 59 61 64 67 South Korea 51 63 65 70 76 Taiwan 74 74 76 82 87 Thailand 25 27 28 30 32 US 115 107 106 107 109 Vietnam 20 29 29 31 32 &

N$2'"&D(LO-AQ(?$#&D(41.:0(.:"<2=&3(#1&(90.:<0:=($:<R(&

62.6% 67.5% 64.7%

55.0% 47.7%

17.1% 11.8%

6.2%

6.2%

4.9%

2.5% 3.1%

5.4%

5.6%

7.1%

2.5% 1.9% 2.7%

4.5%

6.8%

0.4% 0.4% 0.7%

1.7% 2.7%

6.68% 7.63% 11.73% 19.19% 22.86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1969 1979 1989 1999 2009

Cereals Starchy roots Vegetable oils Vegetables Fruits Animal products

Page 9: Roads to be travelled

challenges

Roads to be travelled PwC 6

J3)&#+)*#1)&J#02#.)%)&-".%8/)$&#.&)%'0/#')$&MRG1&

":&/)#'&0.&OPNQ& &QPW&/"*)&'3#.&'3)&#+)*#1)&

=30.)%)4&<:&=30.# %&;)*&-#;0'#&/)#'&-".%8/;'0".&

)78#,,)$&J#02#.)%)&,)+),%&0//)$0#'),96&=30.#&2"8,$&

*)780*)&#.&#$$0'0".#,&TR/.'&":&1*#0.%& &#,/"%'&'3)&

).'0*)&)I;)-')$&-"*.&"8';8'&":&C*#U0,&#.$&E*1).'0.#&0.&

OPNR4&J30%&%3"2%&'3)&0/;#-'&'3#'&/)#'&$)/#.$&3#%&

".&-)*)#,%&0.$0*)-',94&@"*'8.#'),96&;)*3#;%6&@EB!<&

)I;)-'%&=30.#&#.$&J#02#.&'"&)78#,0%)&".,9&#:')*&OPOL4&

J3)&#("+)&#.#,9%0%&0%&#'&'3)&0.$0+0$8#,&,)+),4&J"&1)'&#&

.#'0".#,&+0)26&2)&%0/;,9&3#+)&'"&#11*)1#')&'3)&

.8/()*%&#-*"%%&'3)&;";8,#'0".4&5"2)+)*6&'"&

$)')*/0.)&:8'8*)&'*).$%6&2)&.))$&'"&'#G)&0.'"&#--"8.'&

#."'3)*&+#*0#(,)& &.#/),96&'3)&%;,0'&()'2)).&*8*#,&#.$&

8*(#.&-".%8/)*%4&D0+).&'3)&$0::)*).'&%"-0"H)-"."/0-&

;*":0,)%&":&'3)&'2"6&'3)0*&-".%8/;'0".&;#'')*.%&#*)&

+#%',9&$0::)*).'4&@8*'3)*/"*)6&10+).&=30.# %&

0.-*)#%0.1&,)+),%&":&8*(#.0%#'0".6&'3)&#+)*#1)&-0'0U).&0%&

()-"/0.1&/"*)&8*(#.0%)$4&J38%&'"&)%'#(,0%3&'3)&

"8',""G&:"*&'3)&-"8.'*9&#%&#&23",)6&2)&.))$&'"&

)I#/0.)&("'3&8*(#.&#.$&*8*#,&-".%8/;'0".&

%);#*#'),9&#.$&-"/(0.)&'3#'&230,)&'#G0.1&0.'"&#--"8.'&

0.-*)#%0.1&8*(#.0%#'0".&*#')%4&

J3)&:",,"20.1&-3#*'%&3013,013'&;)*&-#;0'#&-".%8/;'0".&

":&1*#0.%&#.$&/)#'&:"*&*8*#,&#.$&8*(#.&$2),,)*%4&J3)&

;*)/0%)&'3#'&1*#0.&-".%8/;'0".&3#%&$)-,0.)$&230,)&

/)#'&-".%8/;'0".&3#%&*0%).&0%&'*8)&:"*&("'3&8*(#.&

#.$&*8*#,&*)%0$).'%4&

4-&)(!6%.!,(6&7(!*.(&)!,2)1#567&2)!

&

N$2'"&D(?0#.$:0<(S2'&02($T(N#0#.3#."3($T(41.:0(G?SN4H(?$#&D(C1&(UV0U.3(.3(:$#(#$(3"0<&(?$#&D()**J(=0#0(.3(:$#(0W0.<0%<&X(T$'("10'#.:Y(52'5$3&37(/&(10W&(23&=(0:(0W&'0Y&($T()**I(0:=()**Z(&

4-&)(!6%.!,(6&7(!5%(7!,2)1#567&2)!

&

N$2'"&D(?SN4(?$#&D(C1&(UV0U.3(.3(:$#(#$(3"0<&(&

131 97

82 77 76 78 79 81 82 81 79

262 256 250

209 206 199 199 189 181 171 164

0

50

100

150

200

250

300

1990 1995 2000 2005 2006 2007 2008 * 2009 2010 2011 2012

kg/p

erso

n/ye

ar

Urban Rural

25 24 26

33 32 32 31 35 35 35 36

13 13 17

21 21 19 18 20 20 21 21

0

10

20

30

40

1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012

kg/p

erso

n/ye

ar

Urban Rural

Page 10: Roads to be travelled

challenges

Roads to be travelled PwC 7

D0+).&'3#'&/)#'&8,'0/#'),9&*)780*)%&1*#0.%&0.&'3)&:"*/&":&:))$6&'30%&/)#.%&'3#'&$0*)-'&1*#0.&-".%8/;'0".&3#%&

$)-,0.)$&/8-3&/"*)&$*#/#'0-#,,94&5"2)+)*6&0.&'3)&:8'8*)6&'3)&(#,#.-)&":&0.-*)#%0.1&/)#'&-".%8/;'0".&#.$&

$)-*)#%0.1&$0*)-'&1*#0.&-".%8/;'0".%&-"8,$&()&;"%0'0+)&"*&.)1#'0+)4&

C):"*)&2)&'*9&'"&)%'0/#')&'3#'6&#&-#+)#'&0%&0.&"*$)*4&J3)&%'#'0%'0-%&."')$&#("+)&#*)&%"8*-)$&:*"/&a#'0".#,&C8*)#8&

":&>'#'0%'0-%&":&=30.#&baC>=Z&#.$&'3)&;)*&-#;0'#&/)#'&-".%8/;'0".&.8/()*%&#*)&,"2)*&-"/;#*)$&'"&'3"%)&:*"/&

@EB!<&"*&@Ec4&J30%&$0%-*);#.-9&0%&8%8#,,9&#''*0(8')$&'"&'2"&:#-'"*%& &'3)%)&#*)&)%'0/#')%&:*"/&3"8%)3",$&

%8*+)9%6&230-3&$"&."'&)::)-'0+),9&/)#%8*)&-".%8/;'0".&'3#'&"--8*%&"8'%0$)&3"/)%6&230-3&0%&)%;)-0#,,9&*),)+#.'&

:"*&8*(#.&*)%0$).'%d&#.$6&-".%8/;'0".&(9&/01*#.'&2"*G)*%&0%&."'&#--"8.')$&:"*&#--8*#'),94&

<'&'#G)%&#;;*"I0/#'),9&MG1&":&:))$&1*#0.&'"&;*"$8-)&NG1&":&()):6&RG1&:"*&NG1&":&;"*G&#.$&OG1&":&1*#0.%&:"*&NG1&":&

;"8,'*94&?)&8%)&'3)%)&-".+)*%0".&:#-'"*%&'"&)%'0/#')&'"'#,&1*#0.&-".%8/;'0".4&E%&'3)&(),"2&'#(,)&$)/".%'*#')%6&

:"*&("'3&8*(#.&#.$&*8*#,&$2),,)*%6&'3)&;)*&-#;0'#&0.-*)#%)&0.&0.$0*)-'&1*#0.&-".%8/;'0".&'3*"813&/)#'&2#%&,)%%&

'3#.&'3#'&":&'3)&;)*&-#;0'#&$)-*)#%)&0.&$0*)-'&1*#0.&-".%8/;'0".&"+)*&NTTPHOPNO4&

Changing consumption patterns in China (kg/pa)

1990 2012 Net change

Grain to meat

conversion ratio

Net increase in grain

use

Urban per capita consumption of

Grain 130.7 78.8 (52.0) (52.0)

Pork 18.5 21.2 2.8 4.0 11.1

Beef and mutton 3.3 3.7 0.5 7.0 3.2

Poultry 3.4 10.8 7.3 2.0 14.7

Net change in urban per capita demand for grain (23.1)

Rural per capita consumption of

Grain 262.1 164.3 (97.8) (97.8)

Pork 10.5 14.4 3.9 4.0 15.4

Beef and mutton 0.8 2.0 1.2 7.0 8.1

Poultry 1.3 4.5 3.2 2.0 6.5

Net change in rural per capita demand for grain (67.8) &

N$2'"&D(?SN47(-/4(

(

Page 11: Roads to be travelled

C challenges

Roads to be travelled PwC 8

?30,)&".&#&;)*&-#;0'#&,)+),&'3)*)&0%&#&$)-,0.)&0.&'"'#,&

1*#0.&-".%8/;'0".6&".&#.&#11*)1#')&,)+),6&=30.)%)&

1*#0.&-".%8/;'0".&b*0-)6&23)#'6&-"*.&#.$&%"9()#.%Z&

3#%&0.-*)#%)$& &:*"/&#("8'&QNS/.'&0.&NTTP&'"&

LRL/.'&0.&OPNO4&J30%&0%&/#0.,9&#''*0(8'#(,)&'"&#.&

0.-*)#%0.1&;";8,#'0".&#.$&8*(#.0%#'0".4&?)&2"8,$&

)I;)-'&'"'#,&1*#0.&-".%8/;'0".&0.&=30.#&'"&-".'0.8)&

0.-*)#%0.1&:"*&:"8*&*)#%".%4&

%,"20.16&(8'&0'&0%&%'0,,&1*"20.14&

>)-".$6&'3)&$)-,0.)&0.&8*(#.&;)*&-#;0'#&$0*)-'&1*#0.&-".%8/;'0".&0%&%3"20.1&%01.%&":&,)+),,0.1&

"::4&<'&$)-,0.)$&'"&#&,"2&":&ML4TG1&0.&OPPS6&#.$&

'3).&*"%)&0.&,#')*&9)#*%&'"&*)#-3&VN4LG1&0.&OPNP4&

<'&#1#0.&$)-,0.)$&"+)*&'3)&:",,"20.1&'2"&9)#*%&'"&

MV4VG1&0.&OPNO4&="/(0.)$&20'3&#&,0G),9&0.-*)#%)&

0.&0.$0*)-'&8*(#.&1*#0.&-".%8/;'0".6&'30%&

/)#.%&'3#'&'"'#,&;)*&-#;0'#&8*(#.&1*#0.&

-".%8/;'0".&20,,&/"%'&,0G),9&*0%)4&?30,)&*8*#,&

;)*&-#;0'#&1*#0.&-".%8/;'0".&0%&,0G),9&'"&

-".'0.8)&$)-*)#%0.16&0'%&)::)-'&0.&'3)&#11*)1#')&

2"8,$&()&/8')$&#%&/"*)&;)";,)&/01*#')&'"&'3)&

-0'0)%4&

&

& :))$&1*#0.&$)/#.$&20,,&0.-*)#%)& &'3)&#+)*#1)&;01&

*#0%)$&0.&#&=30.)%)&:#-'"*9&:#*/&-".%8/)%&QLPG1&

'"&*)#-3&%,#813')*&2)013'6&230,)&'3#'&*#0%)$&".&#&

:#/0,9&:#*/&-".%8/)%&".,9&NLPG1&b04)46&'3)&*)%'&

-"/)%&:*"/&3"8%)3",$&2#%')&#.$&%"&".Z4&

@0.#,,96&2)&3#+)&*)%'*0-')$&"8*&#.#,9%0%&'"&'3)&8%)&

":&1*#0.%&:"*&:""$4&<.&"'3)*&2"*$%6&2)&3#+)&

"/0'')$&'3)&0/;#-'&":&0.$8%'*0#,&8%)%&":&1*#0.&%8-3&

#%&)'3#.",&"*&(0"$0)%),&;*"$8-'0".6&230-3&/#9&

;"%%0(,9&0.-*)#%)&0.&'3)&:8'8*)&

&

& (

Page 12: Roads to be travelled

challenges

Roads to be travelled PwC 9

3+??,5'>),:H%8::0-0).-9&0.&1*#0.%&3#%&,".1&()).&#&3#,,/#*G&":&

=30.)%)&1"+)*./).'&;",0-94&>0.-)&NTTS6&'3)&)I;,0-0'&

#0/&2#%&'"&;*"$8-)&TLW&":&0'%&1*#0.%&$"/)%'0-#,,94&c*6&

#%&=30.)%)&"::0-0#,%&;8'&0'&%"/)23#'&,)%%&;*"%#0-#,,96&

'3)&=30.)%)&/8%'& 1$<=(#1&('."&(%$/<(T.'9<R(.:($2'(10:=3 4&5"2)+)*6&0'%&/)#.0.1&3#%&)+",+)$&"+)*&'3)&9)#*%4&?30,)&0'&2#%&0.0'0#,,9&8.$)*%'""$&'"&0.-,8$)&*0-)6&

23)#'&#.$&-"*.6&;",0-9&/#G)*%&."2&%))/0.1,9&-"8.'&

".,9&*0-)&#.$&23)#'6&'3#'&0%6&'3)&'2"&1*#0.%&8%)$&

$0*)-',9&:"*&38/#.&-".%8/;'0".4&E.$&%"".6&0'&-"8,$&

).$&8;&#%&#.& &95#R(%$/< & &#%&%),:H%8::0-0).-9&()-"/)%&#.&0.-*)#%0.1,9&8.*)#,0%'0-&0$)#,4&

J3)&*)-).'&$)/#.$H%8;;,9&30%'"*9&":&%"9()#.%6&#&G)9&

"0,%))$6&%3"8,$&()&%)).&#%&#&,)#$0.1&0.$0-#'"*4&

>"9()#.&/)#,&0%&8%)$&#%&'3)&-30):&;*"')0.&%"8*-)&0.&

0.$8%'*0#,&:))$&:"*&;"8,'*9&#.$&;"*G4&E%&'3)&=30.)%)&

-".%8/)&/"*)&/)#'6&#.$&#%&'3)&/)#'&;*"$8-)*%&

0.$8%'*0#,0%)6&$)/#.$&:"*&%"9()#.%&3#%&0.-*)#%)$&

$*#/#'0-#,,94&=30.#&3#%&(#*),9&()).&%),:H%8::0-0).'&0.&

%"9()#.%&%0.-)&'3)&,0()*#,0%#'0".&;*"-)%%&()1#.&0.&

NTMV4&e"/)%'0-&"8';8'&;)#G)$&0.&OPPRfPL&#'&NM4R/.'&

(8'&3#%&$)-,0.)$&)**#'0-#,,9&0.&'3)&%8(%)78).'&$)-#$)4&

<.&OPNRfNL&$"/)%'0-&;*"$8-'0".&0%&)I;)-')$&'"&*)#-3&#&

.)2&,"2&":&8.$)*&NO/.'4&A0),$%&3),$&8;&(8'&#'&'3)&

)I;).%)&":&'3)&3#*+)%')$&#*)#6&230-3&$)-,0.)$&#%&

:#*/)*%&%20'-3)$&'"&-"*.4&[)#.230,)6&#..8#,&

-".%8/;'0".&3#%&/"*)&'3#.&$"8(,)$&:*"/&

#;;*"I0/#'),9&RP/.'&'"&#,/"%'&VL/.'&"+)*&'3)&;#%'&

$)-#$)4&=".%)78).',96&0/;"*'%&3#+)&'*0;,)$&:*"/&

#,/"%'&OS/.'&'"&#.&)%'0/#')$&MR/.'&"+)*&'3)&%#/)&

;)*0"$4&<:&=30.#&*);,#-)$&'30%&#/"8.'&":&0/;"*'%&20'3&

$"/)%'0-&;*"$8-'0".6&'3)&-"8.'*9&2"8,$&*)780*)&

#."'3)*&RO/.&3#&":&,#.$& &.)#*,9&%0I&'0/)%&'3)&

-8**).'&%"9()#.%&#*)#&":&S4M/.&3#4&J3#'&#,".)&

)I;,#0.%&'3)&)I-,8%0".&":&%"9()#.%&:*"/&'3)&

1"+)*./).' %&%),:H%8::0-0).-9&-#,-8,#'0".%

4&

Soybean statistics

Soybean 2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

Area harvested (mn ha)

9.6 9.6 9.3 8.8 9.1 9.2 8.5 7.9 7.2 6.9 6.7

Yield (tonnes/ha) 1.8 1.7 1.6 1.5 1.7 1.6 1.8 1.8 1.8 1.8 1.8

Production (mnt) 17.4 16.4 15.1 12.7 15.5 15.0 15.1 14.5 13.1 12.2 11.8

Imports (mnt) 25.8 28.3 28.7 37.8 41.1 50.3 52.3 59.2 59.9 69.0 74.0

Exports (mnt) 0.4 0.4 0.4 0.5 0.4 0.2 0.2 0.3 0.3 0.2 0.3

Domestic consumption (mnt)

40.2 44.4 46.1 49.4 51.3 59.4 65.9 72.1 76.2 80.1 84.9

Ending stocks (mnt) 4.7 4.6 1.8 2.5 7.5 13.2 14.5 15.9 12.4 13.2 13.8

N$2'"&D([NPO(

Page 13: Roads to be travelled

challenges

Roads to be travelled PwC 10

="*.&#;;)#*%&'"&()&:",,"20.1&#&%0/0,#*&'*#K)-'"*94&<.&OPNO6&=30.# %&[0.0%')*&":&E1*0-8,'8*)&5#.&=3#.1:8&%'#')$&

'3#'&'3)&-"8.'*9&/8%'&;*)+).'&-"*.&:*"/&()-"/0.1&'3)& %)-".$&%"9()#. 4&J30%&/".0G)*&#,".)&0.$0-#')%&'3)&

%'*).1'3&":&$)%0*)&:"*&:""$&%)-8*0'9&0.&=30.#4&5"2)+)*6&0.-*)#%0.1,9&'3)&-"8.'*9&#;;)#*%&'"&()&:013'0.1&#&,"%0.1&

(#'',)&#%&$)/".%'*#')$&(9&'3)&'#(,)&(),"24&

Corn statistics

Corn 2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

Area harvested (mn ha)

25.4 26.4 28.5 29.5 29.9 31.2 32.5 33.5 35.0 36.3 36.8

Yield (tonnes/ha) 5.1 5.3 5.3 5.2 5.6 5.3 5.5 5.7 5.9 6.0 5.9

Production (mnt) 130.3 139.4 151.6 152.3 165.9 164.0 177.2 192.8 205.6 218.5 217.0

Imports (mnt) 0.0 0.1 0.0 0.0 0.0 1.3 1.0 5.2 2.7 3.4 3.0

Exports (mnt) 7.6 3.7 5.3 0.5 0.2 0.2 0.1 0.1 0.1 0.0 0.1

Domestic consumption (mnt)

131.0 137.0 145.0 150.0 153.0 165.0 180.0 188.0 200.0 212.0 220.0

Ending Stocks (mnt) 36.6 35.3 36.6 38.4 51.2 51.3 49.4 59.3 67.6 77.4 77.3

N$2'"&D([NPO(&

`.,0G)&'3)&%"9()#.&%)-'"*6&-"*.&"8';8'&3#%&G);'&;#-)&20'3&-".%8/;'0".4&J3)&3#*+)%')$&#*)#&3#%&0.-*)#%)$&%"/)&

RLW&230,)&90),$%&3#+)&0.-*)#%)$&%"/)&NLW&"+)*&'3)&,#%'&$)-#$)4&5"2)+)*6&#%&0%&'3)&-#%)&20'3&%"9()#.%6&$)/#.$&

1*"2'3&0%&,0G),9&'"&*)/#0.&%'*".1&:"*&/#.9&9)#*%&'"&-"/)4&E.$&'3)&%;)-'#-8,#*&0.-*)#%)%&0.&;,#.')$&#*)#&#.$&

90),$%&%)).&0.&'3)&;#%'&$)-#$)&#*)&3013,9&8.,0G),9&'"&()&*);)#')$&0.&'3)&/)$08/&')*/4&@*"/&#&;"%0'0".&":&%),:H

%8::0-0).-9&0.&*)-).'&9)#*%&0/;"*'%&#*)&,0G),9&'"&*)#-3&Q/.'&0.&OPNRfNL4&="/;#*)&'30%&'"&#&.)'&)I;"*'&;"%0'0".&":&

#,/"%'&V/.'&0.&OPPRfPL6&#.$&0'&#;;)#*%&'3#'&-"*.&0%&2),,&".&0'%&2#9&'"&()-"/0.1&'3)& %)-".$&%"9()#. 4&c.)&

/"$)*#'0.1&:#-'"*&0%&'3#'6&0.&*)-).'&9)#*%6&%"/)&:))$&$)/#.$&3#%&%30:')$&'"&23)#'& &#%&2)&$0%-8%%&(),"24&

5"2)+)*6&'30%&%0/;,9&/)#.%&'3#'&=30.#&20,,&0/;"*'&23)#'&0.%')#$&":&-"*.4&

=".%0$)*&23)#'6&230-3&#,".1&20'3&*0-)6&0%&8%)$&;*0/#*0,9&:"*&38/#.&-".%8/;'0".& #.$&'3)*):"*)&3#%&#&%'*#')10-&

;"%0'0".6&230-3&0%&."'&%3#*)$&(9&-"*.&"*&%"9()#.%4&`.'0,&OPNP6&-".%8/;'0".&0.-*)#%)$&".,9&/#*10.#,,9&#.$&

=30.#&/#.#1)$&'"&:8,:0,&#$$0'0".#,&$)/#.$&'3*"813&#&1*#$8#,&0.-*)#%)&0.&;,#.')$&#*)#&#.$&90),$%4&5"2)+)*6&0.&

OPNNfNO&$)/#.$&K8/;)$&#("8'&NNW&#.$&3#%&*)/#0.)$&#'&'3)%)&,)+),%4&E'&'3)&%#/)&'0/)6&;*"$8-'0".&3#%&

0.-*)#%)$&#'&#&/8-3&%,"2)*&;#-)&230,)&0/;"*'%&3#+)&;,811)$&'3)&%3"*':#,,4&c+)*&'3)&,#%'&:0+)&9)#*%6&'3)&;,#.')$&

#*)#&3#%&*)/#0.)$&-".%'#.'&230,)&90),$%&3#+)&0.-*)#%)$&/#*10.#,,94&J30%&%811)%'%&'3#'&:8'8*)&0.-*)#%)%6&0:&#.96&

#*)&,0G),9&'"&()&/0.0/#,4&

Wheat statistics

Wheat 2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

Area harvested (mn ha)

21.6 22.8 23.6 23.7 23.6 24.3 24.3 24.3 24.3 24.1 24.1

Yield (tonnes/ha) 4.3 4.3 4.6 4.6 4.8 4.7 4.7 4.8 5.0 5.1 5.2

Production (mnt) 92.0 97.4 108.5 109.3 112.5 115.1 115.2 117.4 121.0 121.9 126.0

Imports (mnt) 6.7 1.1 0.4 0.0 0.5 1.4 0.9 2.9 3.0 6.8 2.0

Exports (mnt) 1.2 1.4 2.8 2.8 0.7 0.9 0.9 1.0 1.0 0.9 1.0

Domestic consumption (mnt)

102.0 101.5 102.0 106.0 105.5 107.0 110.5 122.5 125.0 121.5 124.0

Ending Stocks (mnt) 38.8 34.5 38.6 39.1 45.8 54.4 59.1 55.9 54.0 60.3 63.3 &

N$2'"&D([NPO(

Page 14: Roads to be travelled

challenges

Roads to be travelled PwC 11

E&G)9&:)#'8*)&3013,013')$&'3)&'#(,)&#("+)&0%&'3)&%8$$).&K8/;&0.&$)/#.$&:"*&23)#'&0.&*)-).'&9)#*%4&J3)&*)#%".&

:"*&'30%&*0%)&0%&'3)&1*"20.1&8%)&":&23)#'&#%&:))$4&J"'#,&$)/#.$&0%&%;,0'&0.'"&:""$6&%))$6&#.$&0.$8%'*0#,&$)/#.$&

b@><Z&#.$&:))$&$)/#.$4&@><&$)/#.$&3#%&(#*),9&/"+)$&0.&*)-).'&9)#*%&#.$&".,9&*"%)&/#*10.#,,9&"+)*&'3)&,#%'&

'3*))&9)#*%4&5"2)+)*6&:))$&$)/#.$&3#%&*0%).&%')#$0,94&<.&OPNNfOPNO6&0'&.)#*,9&$"8(,)$&#.$&3#%&%'#9)$&#'&'3#'&

,)+),&%0.-)4&?30,)&-"*.&*)/#0.%&'3)&/#0.&-#*("39$*#')&-"/;".).'&":&0.$8%'*0#,&:))$&"'3)*&-)*)#,%&%8-3&#%&23)#'&

#*)&#,%"&8%)$&$);).$0.1&".&*),#'0+)&;*0-)%4&

Wheat consumption split

Wheat 2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

Feed consumption (mnt) 4.0 3.5 4.0 8.0 8.0 10.0 13.0 24.0 25.0 21.0 23.0

Food, seed and industrial consumption (mnt)

98.0 98.0 98.0 98.0 97.5 97.0 97.5 98.5 100.0 100.5 101.0

Total (mnt) 102.0 101.5 102.0 106.0 105.5 107.0 110.5 122.5 125.0 121.5 124.0 &

N$2'"&D([NPO(&

?30,)&2)&-#.&%#:),9&;*)$0-'&#&*0%)&0.&:))$&8%)6&'3)&%;,0'&()'2)).&-"*.&#.$&23)#'&0%&$0::0-8,'&'"&)%'0/#')4&5"2)+)*6&

*)1#*$,)%%&":&'3)&%;,0'6&0'&0%&*)#%".#(,9&-)*'#0.&'3#'&'3)&(8,G&":&'30%&)I-)%%&-".%8/;'0".&20,,&()&%#'0%:0)$&(9&

0/;"*'%4&J3)&*)#%".&:"*&"8*&;)%%0/0%'0-&+0)2&".&=30.)%)&;*"$8-'0".&0%&)I;,#0.)$&,#')*&0.&'30%&*);"*'&23).&2)&

,""G&#'&%8;;,9&-".%'*#0.'%4&

@0.#,,96&'3)&'#(,)&(),"2&3013,013'%&*0-)&%'#'0%'0-%&:"*&'3)&,#%'&$)-#$)4&B*"$8-'0".&*"%)&1*#$8#,,9&#%&-".%8/;'0".&

$)-,0.)$&0.0'0#,,94&5"2)+)*6&0'&0%&."2&0.-*)#%0.14&@"*&'3)&/"%'&;#*'6&=30.#&3#%&/#.#1)$&'"&#+"0$&0/;"*'%4&

5"2)+)*6&0.&'3)&,#%'&'3*))&9)#*%6&3#*+)%')$&#*)#&#.$&90),$%&3#+)&%'#1.#')$&230,)&-".%8/;'0".&3#%&/#0.'#0.)$&#&

%')#$9&*#')&":&1*"2'34&J30%&3#%&,)$&'"&#&*0%)&0.&0/;"*'%&#,'3"813&0'&*)/#0.%&#&:*#-'0".&":&'"'#,&-".%8/;'0".4&

D*"2'3&0.&*0-)&-".%8/;'0".&0%&,0G),9&'"&*)/#0.&/8')$&#%&%,"20.1&;";8,#'0".&1*"2'3&#.$&8*(#.0%#'0".&G));&#&,0$&

".&1*"2'34&J3#'&%#0$6&%0.-)&;*"$8-'0".&0%&#,%"&8.,0G),9&'"&0.-*)#%)&%01.0:0-#.',9&0.&'3)&9)#*%&#3)#$6&%"/)&0/;"*'%&

/#9&-".'0.8)4&

Rice statistics

Rice 2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

Area harvested (mn ha)

28.4 28.8 28.9 28.9 29.2 29.6 29.9 30.1 30.1 30.3 30.6

Paddy yield (tonnes/ha)

6.3 6.3 6.3 6.4 6.6 6.6 6.6 6.7 6.8 6.7 6.7

Production (mnt) 125.4 126.4 127.2 130.2 134.3 136.6 137.0 140.7 143.0 142.5 144.0

Imports (mnt) 0.6 0.7 0.5 0.4 0.2 0.4 0.5 1.8 3.1 3.9 3.7

Exports (mnt) 0.7 1.2 1.3 1.4 0.7 0.7 0.5 0.4 0.3 0.3 0.4

Domestic consumption (mnt)

130.3 128.0 127.2 127.5 133.0 134.3 135.0 139.6 144.0 146.3 148.0

Ending Stocks (mnt) 38.9 36.8 35.9 37.8 38.5 40.5 42.6 45.0 46.8 46.7 46.0 &

N$2'"&D([NPO(& &

Page 15: Roads to be travelled

challenges

Roads to be travelled PwC 12

F#*,9&0.&OPNR6&'3)&>'#')&="8.-0,&-#,,)$&:"*&1*#0.&

;*"$8-'0".&'"&%'#(0,0%)&#'&LLP/.'6&,"2)*&'3#.&'3)&

SPO/.'&;*"$8-)$&0.&OPNQ6&%01.#,,0.1&#&%30:'&:*"/&%),:H

%8::0-0).-94&<'&%))G%&'"&%)'&#&;*0"*0'9&".&,#("8*H

0.').%0+)&#.$&3013H+#,8)&-*";%&%8-3&#%&:*80'%&#.$&

+)1)'#(,)%&#'&'3)&)I;).%)&":&,#.$H0.').%0+)6&,"2H+#,8)&

1*#0.%4&@8*'3)*/"*)6&'3)&180$),0.)%&$)/".%'*#')&#.&

0.-*)#%0.1&)/;3#%0%&".&:"*&78#,0'9&#.$&:""$&%#:)'94&

>"/)&":&'30%&.)2:"8.$&%'*)%%&".&78#,0'9&#.$&%#:)'9&

%')/%&:*"/&'3)&/#.9&.)1#'0+)&-#%)%&*);"*')$&0.&

*)-).'&9)#*%&0.&=30.#4&J3)%)&*#.1)&:*"/&-#$/08/&

-".'#/0.#'0".&":&*0-)6&#$8,')*#')$&:"I&/)#'&%",$&#%&

/8''".&#.$&$)#$&;01%&:,"#'0.1&$"2.&'3)&58#.1;8&

!0+)*&'3*"813&>3#.13#04&

B#*'&":&'3)&*)#%".&:"*&'30%&%'*#')10-&%30:'6&0.&"8*&+0)26&

0%&/)*),9&'3)&1"+)*./).'&:#-0.1&8;&'"&*)#,0'94&J"&/))'&

*#;0$,9&*0%0.1&$)/#.$6&%8;;,9&-#.&0.-*)#%)&;*0/#*0,9&

'3*"813&#.&0.-*)#%)&0.&;,#.')$&#*)#&#.$&).3#.-)$&

90),$%4&<.&=30.# %&-#%)6&230,)&90),$%&-#.&0.-*)#%)& &#.&

#*)#&2)&$0%-8%%&,#')*& &#.&0.-*)#%)&0.&;,#.')$&#*)#&0%&

3013,9&8.,0G),94&<.&%3"*'6&=30.#&3#%&()).&%'*811,0.1&'"&

/#0.'#0.&0'%& *)$&,0.) &":&NOP/.&3#&":&:#*/,#.$&$8)&'"&

,#.$&$)1*#$#'0".6&2#')*&%-#*-0'9&#.$&;",,8'0".4&&

J38%6&'3)&".,9&";'0".&0%&'"&%)'&;*0"*0'0)%4&J3#'&0%6&

#--);'&'3#'&%),:H%8::0-0).-9&0%&."'&;"%%0(,)&:"*&#,,&'3)&

/#K"*&1*#0.%&#.$&"0,%))$%6&230-3&0%&23#'&'3)&-"8.'*9&

#;;)#*%&'"&()&$"0.1&0.&;*#-'0-)4&<.0'0#,,96&'3)&

1"+)*./).'&).-"8*#1)$&-"*.&;,#.'0.1&"+)*&%"9()#.%&

"+)*&'3)&,#%'&$)-#$)4&a"26&*0-)&#.$&23)#'&*)/#0.&3013&

;*0"*0'9&1*#0.%&10+).&'3#'&'3)9&#*)&8%)$&:"*&38/#.&

-".%8/;'0".6&230,)&-"*.&#.$&%"9()#.%&#*)&-".%0$)*)$&

,"2)*&;*0"*0'94&&

F+).&20'3&/)#'6&'3)*)&#*)&'2"&";'0".%&#+#0,#(,)Y&

0/;"*'&/)#'&$0*)-',9&"*&0/;"*'&:))$&1*#0.%&#.$&

;*"$8-)&/)#'&$"/)%'0-#,,94&J3)&0/;,0-#'0".%&":&'3)%)&

#,')*.#'0+)%&#*)&780')&$0::)*).'4&<:&=30.#&0/;"*'%&-"*.&

#.$&%"9()#.%&:*"/&'3)&`>&"*&C*#U0,&:"*&0'%&,0+)%'"-G6&0'&

20,,&3#+)&'"&#$$*)%%&'3)&,0+)%'"-GH*),#')$&.)1#'0+)&

)::)-'%&".&'3)&).+0*"./).'&#.$&3)#,'34&c.&'3)&;,8%&

%0$)6&0'&20,,&3#+)&#.&0.$8%'*9&'3#'&;*"+0$)%&3013&,)+),%&

":&)/;,"9/).'4&<:&=30.#&2)*)&'"&0/;"*'&/)#'&:*"/&

'3)&`>&"*&C*#U0,6&0'&2"8,$&'*#.%:)*&).+0*"./).'#,&#.$&

3)#,'3&;*"(,)/%&'"&'3)&`>&"*&C*#U0,&(8'&2"8,$&()&

%8%-);'0(,)&'"&%8;;,9&#.$&;*0-)&+",#'0,0'94&J3)&"'3)*&

/#K"*&().):0'&":&'30%&#;;*"#-3&2"8,$&()&'"&#,,"2&

%-#*-)&,#.$&#.$&2#')*&*)%"8*-)%&'"&()&%30:')$&:*"/&

#.0/#,&38%(#.$*9&'"&;*0"*0'9&-*";%&%8-3&#%&*0-)&

#.$&23)#'4&

F+0$).-)&%811)%'%&'3#'&=30.#&0%&$"0.1&#&(0'&":&("'34&E%&

2)&%#2&)#*,0)*6&0.&'3)&;#%'&$)-#$)6&-"*.&0/;"*'%&3#+)&

1".)&:*"/&()0.1&.".H)I0%').'&'"&#("8'&Q/.'&#.$&

%"9()#.&0/;"*'%&3#+)&'*0;,)$&'"&MR/.'4&

>0/8,'#.)"8%,96&/)#'&0/;"*'%&3#+)&1*"2.&:0+)H:",$&'"&

N4L/.'4&J30%&'*).$&0%&,0G),9&'"&-".'0.8)&20'3&("'3&:))$&

1*#0.%&#.$&/)#'&0/;"*'%&1*"20.14&J3)&;8*-3#%)&":&'3)&

`>E %&,#*1)%'&;"*G&;*"$8-)*&>/0'3:0),$6&(9&'3)&

=30.)%)&-"/;#.9&>38#.1380&<.')*.#'0".#,&b."2&

-#,,)$&'3)&?5&D*"8;Z6&0%&#&$)/".%'*#'0".&":&3"2&

=30.)%)&/)#'&0/;"*'%&#*)&,0G),9&'"&*0%)4&

&

&

& &

Page 16: Roads to be travelled

challenges

Roads to be travelled PwC 13

3+??,5'*0$&-)%#$-&'=30.#&:))$%&OPW&":&'3)&2"*,$ %&;";8,#'0".&20'3&K8%'&

VW&":&'3)&)#*'3 %&#*#(,)&,#.$6&230-3&2"*G%&"8'&#'&

#("8'&P4PT3#&;)*&;)*%".4&J3)& *)$&,0.) &":&NOP/.&3#&

":&:#*/,#.$&#%&#&=30.)%)&;",0-9&1"#,&0%&#.&

#-G."2,)$1)/).'&":&'30%&;*)%%8*)4&J3)&:0*%'&;",0-9&

$"-8/).'&":&OPNR6&*):)**)$&'"&#%& a"4N&e"-8/).' 6&

)/;3#%0%)$&'3#'&'3)& *)$&,0.) &%3"8,$&()&

%'*0-',9&;*"')-')$4&

J3)&*)#%".&:"*&'30%&"(%)%%0".&0%&%0/;,)Y&=30.#&3#%&,"%'&

:#*/,#.$&-".%0%').',9&"+)*&'3)&9)#*%&$8)&'"&

8*(#.0%#'0".6&-".%'*8-'0".6&,#.$&$)1*#$#'0".&#.$&%"&

".4&E--"*$0.1&'"&=30.# %&:0*%'&.#'0".#,&,#.$&%8*+)9&0.&

NTTS6&#*#(,)&,#.$&#/"8.')$&'"&NQP/.&3#4&J30%&2#%&

)%'0/#')$&'"&3#+)&:#,,).&'"&#("8'&NON/.&3#&(9&OPPV4&

5"2)+)*6&#:')*&#&%)-".$&.#'0".#,&,#.$&%8*+)9&230-3&

-".-,8$)$&0.&OPPT6&(8'&23"%)&*)%8,'&2)*)&".,9&

;8(,0%3)$&,#%'&9)#*6&#*#(,)&,#.$&2#%&."2&)%'0/#')$&#'&

#("8'&NQL/.&3#4&5"2)+)*6&#:')*&$)$8-'0.1&,#.$&%)'&

#%0$)&:"*&*)%'"*#'0".&"*&;",,8')$6&#+#0,#(,)&#*#(,)&#*)#&

2#%&)%'0/#')$&'"&()&K8%'&#("+)&NOP/.&3#4&

J3)& a"4N&e"-8/).' &#,%"&*)-"1.0%)%&'3)&0/;"*'#.-)&

":&$)+),";0.1&%8%'#0.#(,)&#1*0-8,'8*)&#.$&'3)&.))$&'"&

*)%'"*)&;",,8')$&#.$&$)1*#$)$&,#.$4&]#.$&0%&$)1*#$)$&

8%8#,,9&$8)&'"&"+)*H-8,'0+#'0".6&"+)*H1*#U0.1&#.$&

$):"*)%'#'0".4&<.&OPPV6&#&'3*))H9)#*&%'8$9&-".$8-')$&

K"0.',9&(9&'3)&[0.0%'*9&":&?#')*&!)%"8*-)%6&'3)&

=30.)%)&E-#$)/9&":&>-0).-)%&#.$&'3)&=30.)%)&

E-#$)/9&":&F.10.))*0.16&:"8.$&'3#'&"+)*&QLP/.&3#&

":&,#.$&2#%&#::)-')$&(9&)*"%0".6&":&230-3&NSP/.&3#&

2#%&$8)&'"&2#')*&#.$&OPP/.&3#&2#%&$8)&'"&20.$4&

="/(0.)$6&#("8'&R4L(.&'"..)%&":&%"0,&2)*)&)*"$)$&

)#-3&9)#*6&#'&#&-"%'&":&![COPP(.&%0.-)&OPPP4&

]#.$&-#.&#,%"&()&$)1*#$)$&(9&;",,8'0".&#.$&'30%&3#%&

()-"/)&#&/#K"*&-".-)*.&0.&*)-).'&9)#*%4&F#*,0)*&'30%&

9)#*6&=30.# %&+0-)H/0.0%')*&":&,#.$&#.$&*)%"8*-)%6&

?#.1&>3098#.6&."')$&'3#'&#&%"0,&%8*+)9&3#$&0$).'0:0)$&

%"/)&Q4QQ/.&3#&":&-".'#/0.#')$&,#.$4&a"'&'3#'&'3)%)&

#*)&.)2&;*"(,)/%4&<.&OPPS6&g3"8&>3).1I0#.6&'3)&

$0*)-'"*&":&'3)&>'#')&F.+0*"./).'#,&B*"')-'0".&

E$/0.0%'*#'0".&b>FBEZ&%#0$&'3#'&=30.#&:#-)$& %)*0"8% &

%"0,&;",,8'0".&'3#'&2"8,$&#::)-'&("'3&;)";,) %&3)#,'3&

#.$&'3)&).+0*"./).'4&5)&:8*'3)*&."')$&'3#'&

#;;*"I0/#'),9&NO/.'&":&1*#0.&#*)&;",,8')$&)#-3&9)#*&

(9&3)#+9&/)'#,%&:*"/&'3)&%"0,6&20'3&)-"."/0-&,"%%)%&":&

"+)*&`>hO4L(.4&

J"&'#-G,)&'30%&0%%8)6&>FBE&#,".1&20'3&'3)&[0.0%'*9&":&

]#.$&#.$&!)%"8*-)%&K"0.',9&,#8.-3)$&#&%"0,&;",,8'0".&

%8*+)9&20'3&#&(8$1)'&":&`>hNOL/6&20'3&'3)&#0/&":&

#%%)%%0.1&,#.$&;",,8'0".&$8)&'"&3)#+9&/)'#,%6&

;)%'0-0$)%6&#.$&"*1#.0-&;",,8'#.'%6&#.$&8%)&'3)&*)%8,'%&

'"&*)3#(0,0'#')&#::)-')$&,#.$4&?30,)&'30%&%"0,&%8*+)9&

2#%&-"/;,)')$&0.&OPNP6&0'%&*)%8,'%&2)*)&.)+)*&

#.."8.-)$4&J3)&F.+0*"./).'&[0.0%'*9&*)K)-')$&

*)78)%'%&:"*&'3)&%8*+)9&$#'#&'"&()&;8(,0%3)$&%#90.1&

'3#'&'3)9&2)*)&#& %'#')&%)-*)' 4&@)#*%&'3#'&'3)&%8*+)9&

*)%8,'%&/013'&;*"+)&$0%780)'0.1&/#9&()&2),,&:"8.$)$4&

E--"*$0.1&'"&C#0&=3).1%3"86&e);8'9&5)#$&":&'3)&

a#'8*)&#.$&F-","19&=".%)*+#'0".&e);#*'/).'&#'&'3)&

[0.0%'*9&":&F.+0*"./).'#,&B*"')-'0".6&'3)&*)%8,'%&":&

'3)&%8*+)9&2"8,$&()&;8(,0%3)$&#:')*&:8*'3)*&%#/;,0.1&

'"&0/;*"+)&#--8*#-94&5)&#,%"&%#0$&'3#'&'3)&

1"+)*./).'&2#%&0.&'3)&;*"-)%%&":&-"/0.1&8;&20'3&#.&

#-'0".&;,#.&'"&-".'*",&%"0,&;",,8'0".4&

!)-).',96&'3)&1"+)*./).'&*),)#%)$&%'#'0%'0-%&:*"/&#&

%"0,&%8*+)9& &0'&0%&."'&-,)#*&0:&0'&0%&'3)&".)&;*)+0"8%,9&

."')$& &230-3&0.$0-#')&'3#'&.)#*,9&#&:0:'3&":&=30.# %&

:#*/,#.$&0%&;",,8')$&/"%',9&(9&38/#.6&0.$8%'*0#,&#.$&

#1*0-8,'8*#,&#-'0+0'0)%4&E1#0.6&'3)*)&2)*)&#%%8*#.-)%&":&

'3)&1"+)*./).'&'#G0.1&#-'0".&'"&%'";&#.$&*)+)*%)&

'30%&;",,8'0".4&

J3)&G)9&;"0.'&3)*)&0%&'3#'&'3)&=30.)%)&1"+)*./).'&0%&

%'*811,0.1&'"&/#0.'#0.&0'%&)I0%'0.1&-8,'0+#')$&,#.$&

(#.G4&`.$)*&'3)%)&-0*-8/%'#.-)%6&0.-*)#%0.1&'3)&

%8;;,9&":&#+#0,#(,)&,#.$&0%&3013,9&8.,0G),94&>"6&#.9&

0.-*)#%)&0.&"8';8'&20,,&3#+)&'"&-"/)&+0#&

).3#.-)$&90),$%4&

E%&2)&;"0.')$&"8'&0.&'3)&;*)+0"8%&%)-'0".6&90),$%&":&

/#K"*&-"//"$0'0)%&3#+)&%'#1.#')$&"*&1*"2.&%,"2,9&0.&

*)-).'&9)#*%4&J3)&-3#*'&(),"2&%3"2%&'3)&90),$&1*"2'3&

"+)*&'3)&;#%'&$)-#$)&:"*&*0-)6&23)#'6&-"*.&#.$&

%"9()#.%4&J3)&90),$&1*"2'3&:"*&("'3&23)#'&#.$&-"*.&

#*)&%3"20.1&#&$)-,0.0.1&'*).$6&230,)&'3#'&:"*&*0-)&0%&

/"*0(8.$&#.$&K8%'&(#*),9&;"%0'0+)4&>"9()#.&90),$&

1*"2'3&3#%&()).&)**#'0-&0.&*)-).'&9)#*%&#.$&".&#&.)'&

(#%0%&3#%&()).&)::)-'0+),9&%'#1.#.'&"+)*&'3)&

;#%'&$)-#$)4&

! !

Page 17: Roads to be travelled

challenges

Roads to be travelled PwC 14

4-&)%1%!())#(9!:&%9/!*.2$7-!

&

&

N$2'"&D([NPO(?$#&D(\.&<=3(0'&("0<"2<0#&=($:(0(KVR&0'(9$W.:Y(0W&'0Y&(%03.3(&

J3)&/"%'&,0G),9&-".-,8%0".&(#%)$&".&'3)&#("+)&30%'"*0-#,&;)*:"*/#.-)&0%&'3#'&:8'8*)&90),$&1#0.%&20,,&()&$0::0-8,'&

'"&#-30)+)4&5"2)+)*6&():"*)&2)&$*#2&"8*&:0.#,&-".-,8%0".&'3)*)&0%&#."'3)*&2#9&'"&-".%0$)*&,".1H')*/&90),$&

;"').'0#,d&,""G&#'&3"2&=30.)%)&90),$%&-"/;#*)&20'3&'3"%)&":&"'3)*&/#K"*&;*"$8-)*%&'"&%))&'3)&;"').'0#,&8;%0$)4&

J3)&-3#*'%&(),"2&%3"2&'3)&OPNRfNL&90),$%&:"*&'3)&'";HNP&;*"$8-)*%&":&)#-3&-"//"$0'94&

F(//:!.&,%!:&%9/1!G2.!5(H2.!6.2/#,%.1!I?J<KL<DM!

&

N$2'"&D([NPO(&

(8.0)%

(6.0)%

(4.0)%

(2.0)%

0.0%

2.0%

4.0%

6.0%

8.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Corn Paddy rice Wheat Soybean

6.7 6.7

5.8

5.0 4.8

4.4 4.0

3.5

2.9 2.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

China Japan Vietnam Brazil Indonesia Bangladesh Philippines India Thailand Burma

tonn

es/h

ecta

re

Page 18: Roads to be travelled

challenges

Roads to be travelled PwC 15

N-%(7!:&%9/1!G2.!5(H2.!6.2/#,%.1!I?J<KL<DM!

&

N$2'"&D([NPO(&

42.)!:&%9/1!G2.!5(H2.!6.2/#,%.1!I?J<KL<DM!

N$2'"&D([NPO(&

! !

5.8

5.2

3.9

3.1 3.0 3.0 2.8 2.5

2.0 1.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

EuropeanUnion

China Ukraine India Canada UnitedStates

Pakistan Russia Turkey Australia

tonn

es/h

ecta

re

10.9

7.4 7.1

5.9 5.4

5.0 4.6

4.2

3.3

2.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

UnitedStates

EuropeanUnion

Argentina China Ukraine Brazil Russia SouthAfrica

Mexico India

tonn

es/h

ecta

re

Page 19: Roads to be travelled

challenges

Roads to be travelled PwC 16

"2:@%()!:&%9/1!G2.!5(H2.!6.2/#,%.1!I?J<KL<DM!

N$2'"&D([NPO(&

<.&*0-)6&=30.#&#,*)#$9&3#%&'3)&3013)%'&90),$&#,".1&20'3&^#;#.4&<.&23)#'6&0'&0%&".,9&()30.$&'3)&F`4&<.&-"*.6&0'&0%&

-".%0$)*#(,9&()30.$&'3)&`>&#.$&'3)&F`6&(8'&0%&%'0,,&0.&:"8*'3&;,#-)&#3)#$&":&C*#U0,4&<.&%"9()#.%6&0'&0%&.)#*&'3)&

("''"/&":&'3)&;#-G4&5"2)+)*6&0'&0%&2"*'3&)/;3#%0%0.1&'3#'&=30.#&0%&#&*),#'0+),9&/0."*&;,#9)*&0.&%"9()#.&

;*"$8-'0".4&?3#'&0'&$")%&$)/".%'*#')&0%&'3#'6&23).&0'&-"/)%&'"&'3)&'3*))&/#0.&1*#0.%6&=30.#&$")%&."'&,#1&

%01.0:0-#.',9&()30.$&'3)&"'3)*&/#K"*&;*"$8-)*%4&["*)&0/;"*'#.',96&23)*)&=30.)%)&90),$%&,#16&0'&-#.."'&()&

#%%8/)$&'3#'&'3)&).'0*)&1#;&-#.&()&(*0$1)$4&B#*'&":&'3)&1#;&-"8,$&()&#''*0(8'#(,)&'"&$0::)*).-)%&0.&#1*"H

)-","10-#,&).+0*"./).'%&)414&.#'8*#,&:#-'"*%&%8-3&#%&%"0,&"*&-,0/#')6&230-3&-#.."'&()&"+)*-"/)4&J3)&*)%'&-"8,$&

()&$8)&'"&:)*'0,0%)*%6&0**01#'0".6&-*";&/#.#1)/).'&:#*/0.1&;*#-'0-)%&#.$&%"&".& &230-3&-"8,$&()&(*0$1)$6&#'&,)#%'&

0.&'3)"*94&5"2)+)*6&0.&;*#-'0-)6&'3)&.#**"20.1&":&'30%&1#;&20,,&()&,0/0')$&(9&'3)&)I').'&'"&230-3&0'&0%&

)-"."/0-#,,9&:)#%0(,)4&

c+)*&'3)&;#%'&'2"&$)-#$)%6&=30.#&3#%&/#$)&%'*).8"8%&)::"*'%&'"&0.-*)#%)&90),$%4&>;)-0:0-#,,9&0'&3#%&$"8(,)$&'3)&

8%)&":&:)*'0,0%)*%&#.$&0.-*)#%)$&0**01#')$&#*)#%&(9&#;;*"I0/#'),9&".)H'30*$4&

4-&)(!&..&*(7%/!(.%(!()/!G%.7&9&1%.!,2)1#567&2)!

N$2'"&D(?SN4(&

3.2 3.0

2.8 2.7 2.7 2.6

2.0 1.8

1.4

1.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

UnitedStates

Brazil Argentina Uruguay Canada Paraguay Ukraine China Russia India

tonn

es/h

ecta

re

29 32 33 36 38 40 41 41 41 43 43 44 46 48 49 51 52 54 56 57 58

49 49 49 49 50 51 52 53 54 54 54 54 54 55 56 57 58 59 60 62 63

0

10

20

30

40

50

60

70

-

10

20

30

40

50

60

70

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

mill

ion

tonn

es

mill

ion

hect

ares

Fertiliser consumption (RHS) Irrigated area

Page 20: Roads to be travelled

challenges

Roads to be travelled PwC 17

?30,)&'3)&*#')&":&1*"2'3&0.&:)*'0,0%)*%&3#%&%,"2)$&0.&

'3)&;#%'&$)-#$)6&0**01#'0".&3#%&0.-*)#%)$4&5"2)+)*6&

'3)&1*"2'3&0.&90),$%&'3#'&=30.#&-#.&)I;)-'&:*"/&'3)%)&

'2"&/)#%8*)%&0.&'3)&:8'8*)&0%&,0/0')$&:"*&*)#%".%&2)&

"8',0.)&(),"24&

?30,)&'3)&8%)&":&:)*'0,0%)*%&3#%&0.-*)#%)$&90),$%6&0'&3#%&

#,%"&-".'*0(8')$&'"&,#.$6&2#')*&#.$&#0*&;",,8'0".4&["%'&

":&=30.# %&-3)/0-#,&0.;8'%&#*)&#;;,0)$&0.)::0-0).',94&

J3)&?"*,$&C#.G&)%'0/#')$&'3#'6&0.&OPNO6&=30.#&

#;;,0)$&%"/)&SLPG1&":&:)*'0,0%)*&;)*&3)-'#*)&":&#*#(,)&

,#.$& &'3)&3013)%'&(9&:#*&#/".1&/#K"*&#1*0-8,'8*#,&

.#'0".%6&)+).&$)+),";)$&".)%4&@"*&-"/;#*0%".6&'3)&

-"**)%;".$0.1&.8/()*%&2)*)&NSQG1&:"*&<.$0#6&NLSG1&

:"*&'3)&F`6&NVNG1&:"*&C*#U0,6&NQNG1&:"*&'3)&`>6&MLG1&:"*&

=#.#$#6&RLG1&:"*&E8%'*#,0#&#.$&QTG1&:"*&E*1).'0.#4&

>"6&)+).&1*)#')*&8%)&":&:)*'0,0%)*&0%&,0G),9&'"&3#+)&#&

,)%%)*&)::)-'&".&90),$%6&#.$&/013'&)+).&3#+)&#&.)1#'0+)&

0.$0*)-'&)::)-'&$8)&'"&,#.$&#.$&2#')*&;",,8'0".4&

g38#.1&D8"'#06&'3)&[0.0%'*9&":&F.+0*"./).'#,&

B*"')-'0". %&e0*)-'"*&":&a#'8*)&#.$&F-","19&

=".%)*+#'0".6&%'#')$&0.&#&;*)%%&-".:)*).-)&0.&E;*0,&

OPNQ6&'3#'&".,9&#("8'&QLW&":&:)*'0,0%)*&8%)$&0.&#&

'9;0-#,&=30.)%)&:#*/&-".'*0(8')$&'"&-*";&1*"2'34&J3)&

*)%'&)+#;"*#')%6&2#%3)%&"::&0.'"&%'*)#/%6&"*&0%&

-".%8/)$&(9&;)";,)&"*&#.0/#,%4&>"6&0'&."'&".,9&

-".'#0.%&#.&)-"."/0-&-"%'&(8'&#.&).+0*"./).'#,&".)&

'""4&J3)&=30.)%)&E-#$)/9&":&E1*0-8,'8*#,&>-0).-)%&

b=EE>Z&;*)$0-')$&,#%'&9)#*&'3#'&#,,&-).'*#,&#.$&>"8'3&

F#%')*.&;*"+0.-)%&(#*&^0#.1I0&#.$&>3#.I0&2)*)&#'&3013&

*0%G&":&%8::)*0.1&1*"8.$2#')*&.0'*#')&;",,8'0".&(9&

OPNL4&

?30,)&0**01#'0".&-#.&,)#$&'"&3013)*&90),$%6&'3)*)&0%&#&

$0::)*).'&-".%'*#0.'&'3)*)& &2#')*d&=30.#&$")%&."'&

3#+)&)."813&":&0'&#.$&23#'&0'&3#%&0%&0.-*)#%0.1,9&

;",,8')$&#.$&."'&23)*)&0'&0%&*)780*)$&'3)&/"%'4&>0/0,#*&

'"&'3)&-#%)&20'3&,#.$6&=30.#&%8;;"*'%&OPW&":&'3)&

2"*,$ %&;";8,#'0".&20'3&K8%'&"+)*&VW&":&'3)&2"*,$ %&

*).)2#(,)&2#')*&*)%"8*-)%4&c.&#&;)*&-#;0'#&(#%0%&'30%&

0%&"+)*&O6PPP&-8(0-&/)'*)%&":&*).)2#(,)&2#')*&;#6&

230,)&'3)&1,"(#,&#+)*#1)&0%&"+)*&'3*))&'0/)%&'3#'&

.8/()*4&5"2)+)*6&)+).&'30%&30$)%&#&%'#*G&*)10".#,&

$0%;#*0'9& &'3)&a"*'3)*.&*)10".%&#--"8.'&:"*&".,9&

#("8'&NVW&":&'3)&'"'#,&2#')*&*)%"8*-)%4&E'&'3)&%#/)&

'0/)6&'3)9&#--"8.'&:"*&OVW&":&'3)&;";8,#'0".&#.$&

#("8'&RRW&":&'3)&-8,'0+#')$&,#.$4&

4-&)(!)2.7-%.)!()/!12#7-%.)!.%*&2)1!/&16(.&7:!

N$2'"&D(?SN4(& &

28%

44%

18%

72%

56%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Population Cultivated area Water resourcesNorth South

Page 21: Roads to be travelled

challenges

Roads to be travelled PwC 18

J3)&-3#*'&(),"2&%3"2%&'3)&*).)2#(,)&2#')*&*)%"8*-)%&#+#0,#(,)&;)*&;)*%".&#-*"%%&;*"+0.-)%4&J3)&*#.1)&)I').$%&

:*"/&NRQ&-8(0-&/)'*)%&0.&>3#.13#0&'"&NQM6QMV&-8(0-&/)'*)%&0.&J0()'4&J0()'&0%&"(+0"8%,9&#.&"8',0)*6&%0.-)&0'&0%&'3)&

%"8*-)&":&/#.9&,#*1)&*0+)*%&#.$&3#%&#&,"2&;";8,#'0".4&5"2)+)*6&>3#.13#0&0%&."'4&J3)&-3#*'&(),"2&%3"2%&'3)&

;*"+0.-)%&20'3&'3)&,"2)%'&2#')*&*)%"8*-)%6&/"%'&":&230-3&#*)&0.&'3)&a"*'34&J"&;8'&'30%&0.'"&;)*%;)-'0+)6&'3)&

1,"(#,&-"/;#*#(,)%&:"*&%0/0,#*&*).)2#(,)&2#')*&*)%"8*-)&,)+),%&#*)&^"*$#.&#.$&<%*#),4&

+%)%$(@9%!$(7%.!.%12#.,%1!

N$2'"&D(?SN4(?$#&D(?$'#1&':('&Y.$:3(0'&(.:(R&<<$/((&

J3)&;*)+0"8%&$0%-8%%0".&:"-8%)$&".&'3)&%8;;,9&":&2#')*&230,)&'3)&:",,"20.1&:"-8%)%&".&2#')*&8%#1)4&J3)&G)9&

/)'*0-&3)*)&0%&'3)&;)*-).'#1)&":&%8;;,9&'3#'&0%&8%)$&#..8#,,94&=".%0$)*&C)0K0.1Y&'3)&#+)*#1)&0.3#(0'#.'&8%)$&

#("8'&NMS&-8(0-&/)'*)%&0.&OPNO6&#("8'&TNW&":&'3)&%8;;,94&J3)&'#(,)&(),"2&3013,013'%&8%#1)&;)*&-#;0'#&#.$&8%#1)&

#%&#&;)*-).'#1)&":&%8;;,9&:"*&'3"%)&:)2&%),)-')$&;*"+0.-)%&23)*)&8%#1)&#,*)#$9&)I-))$%&#+#0,#(0,0'9&"*&-,"%)&'"&0'4&

N(7%.!#1(*%!&)!1%9%,7%/!6.2>&),%1!

&

N$2'"&D(?SN4(?$#&D(?$'#1&':('&Y.$:3(0'&(.:(R&<<$/((

143

168

193

238

145

231

0.0

50.0

100.0

150.0

200.0

250.0

Shanghai Ningxia Beijing Tianjin Jordan Israel

cubi

c m

etre

s/pe

rson

167 176 204 230 254 269 491 698 1,078

70% 91% 69% 81% 90% 83%

342%

148%

642%

0%

100%

200%

300%

400%

500%

600%

700%

0

200

400

600

800

1,000

1,200

Tianjin Beijing Shanxi Shandong Henan Hebei Shanghai Jiangsu Ningxia

cubi

c m

etre

s

Water use per capita Usage / supply (RHS)

Page 22: Roads to be travelled

challenges

Roads to be travelled PwC 19

?30,)&2#')*&#+#0,#(0,0'9&#::)-'%&.)#*,9&)+)*9&#%;)-'&":&'3)&)-"."/96&'3)&0/;#-'&0%&;*"(#(,9&1*)#')%'&0.&

#1*0-8,'8*)6&230-3&#--"8.'%&:"*&#("8'&#&'30*$&":&=30.# %&'"'#,&2#')*&8%#1)4&["%'&-*";%&*)780*)&#("8'&L6PPPH

V6PPP&'"..)%&":&2#')*&;)*&3)-'#*)&0.&#&%0.1,)&1*"20.1&%)#%".4&J38%6&#.9&%-#*-0'9&":&2#')*&20,,&,)#$&'"&;""*&

90),$%4&J"&%))&'3)&%-";)&":&'30%&;*"(,)/&:"*&=30.#6&-".%0$)*&'3)&:",,"20.1&-3#*'Y&0'&%3"2%&'3)&2#')*&

8%#1)f#+#0,#(0,0'9&;)*-).'#1)&:"*&'3)&'";&:0+)&;*"+0.-)%&'3#'&2)*)&*)%;".%0(,)&:"*&QLW&":&=30.# %&#1*0-8,'8*#,&

"8';8'&0.&OPNO4&J30%&0.-,8$)%&:#*/0.16&:"*)%'*96&#.0/#,&38%(#.$*9&#.$&:0%3)*94&?0'3&'3)&)I-);'0".&":&>0-38#.6&

'3)&*)%'&":&'3)&;*"+0.-)%&#*)&#,*)#$9&#'&-*0'0-#,&2#')*&8%#1)&,)+),%4&E.9&:8*'3)*&$)')*0"*#'0".&0.&2#')*&#+#0,#(0,0'9&

20,,&#::)-'&#1*0-8,'8*#,&"8';8'4&E'&'3)&%#/)&'0/)6&0'&#,%"&$)/".%'*#')%&'3#'&'3)*)&0%&+)*9&,0'',)&%-";)&:"*&0.-*)#%0.1&

0**01#'0".&0.&'3)%)&;*"+0.-)%4&

F.2>&),&(9!,2)7.&@#7&2)!72!727(9!2#76#7!()/!$(7%.!#1(*%!

&

N$2'"&D(?SN4(&

J3)&%)-".$&#%;)-'&":&'3)&2#')*&%8;;,9&;*"(,)/&0%&

;",,8'0".4&<.&OPNQ6&#&[0.0%'*9&":&]#.$&#.$&!)%"8*-)%&

%8*+)9&:"8.$&"+)*&3#,:&'3)&1*"8.$2#')*&".&'3)&a"*'3&

=30.#&B,#0.&'"&()&8.%80'#(,)&:"*&0.$8%'*0#,&8%)&#.$&

"+)*&MPW&8.%80'#(,)&:"*&38/#.&-".'#-'4&E--"*$0.1&'"&

'3)&[0.0%'*9&":&F.+0*"./).'#,&B*"')-'0". %&b[FBZ&

OPNO&>'#')&":&F.+0*"./).'&!);"*'6&#("8'&QPW&":&'3)&

2#')*&0.&'3)&').&(011)%'&*0+)*%&2#%& ;",,8')$ &"*& 3013,9&

;",,8')$ 4&<'&#,%"&:"8.$&'3#'&/"*)&'3#.&3#,:&":&'3)&

1*"8.$2#')*&0.&NTV&-0'0)%&2#%& (#$ &"*& +)*9&(#$ 4&J3)&

-30):&;*"(,)/&2#%&'3)&3013&,)+),&":&-3)/0-#,&;",,8'0".&

/"%',9&:*"/&0.$8%'*9&#.$&#.0/#,&38%(#.$*94&&

J"&"+)*-"/)&'3)&;*"(,)/%&":&2#')*&%-#*-0'9&=30.#&3#%&

)/(#*G)$&".&'3)&#/(0'0"8%&>"8'3Ha"*'3&?#')*&

e0+)*%0".&B*"K)-'6&#&/"$)*.&+)*%0".&":&</;)*0#,&

=30.# %&D*#.$&=#.#,6&230-3&20,,&-".%8/)&"+)*&

`>hVP(.&":&0.+)%'/).'&0.&'3)&.)I'&:)2&$)-#$)%&0.&#.&

#'')/;'&'"&$0+)*'&2#')*&:*"/&'3)&A#.1'U)&!0+)*&'"&'3)&

;#*-3)$&*)10".%&":&'3)&a"*'34&J3)&:0*%'&,)1& &'3)&

)#%')*.&*"8')& &()1#.&%8;;,90.1&2#')*&'"&e)U3"8&0.&

>3#.$".1&B*"+0.-)&,#')&,#%'&9)#*4&5"2)+)*6&'3)&2#')*&

0%&;",,8')$&#.$&:"*&."2&0%&".,9&%80'#(,)&".,9&:"*&

0.$8%'*0#,&;8*;"%)%4&

D0+).&'3)&;*"(,)/%&":&2#')*&78#.'0'9&#.$&78#,0'96&0'&0%&

#,/"%'&-)*'#0.&'3#'&=30.#&0%&1"0.1&'"&%'*811,)&'"&

%8;;,9&-,)#.&2#')*&:"*&0'%&#1*0-8,'8*#,&.))$%4&>"6&#.9&

90),$&).3#.-)/).'%&:*"/&1*)#')*&0**01#'0".&#*)&

8.,0G),9&'"&/#')*0#,0%)4&

?)&3#+)&#.#,9%)$&'3)&/#K"*&:#-'"*%&'3#'&-#.&0.-*)#%)&

#1*0-8,'8*#,&"8';8'& &.#/),96&,#.$&#.$&2#')*4&D0+).&

'3)&-".%'*#0.'%&;*)%).'6&=30.#&20,,&:0.$&0'&0.-*)#%0.1,9&

$0::0-8,'&'"&0.-*)#%)&"8';8'&+0#&'3)%)&:#-'"*%4&c8';8'&

1*"2'3&2"8,$&3#+)&'"&-"/)&:*"/&),%)23)*)6&:"*&

)I#/;,)6&,#.$&-".%",0$#'0".6&/)-3#.0%#'0".6&

0/;*"+)$&%))$%&#.$&()'')*&-*";&/#.#1)/).'&

;*#-'0-)%4&

9% 7% 6% 6% 6%

81% 90%

148%

9%

83%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Shandong Henan Jiangsu Sichuan Hebei

Agricultural output contribution Water usage / supply (RHS)

Page 23: Roads to be travelled

challenges

Roads to be travelled PwC 20

J3)&=30.)%)&1"+)*./).'&3#%&0.+)%')$&3)#+0,9&0.&

1).)'0-#,,9&/"$0:0)$&-*";%4&5"2)+)*6&'3)*)&#*)&

-".-)*.%&#/".1&'3)&=30.)%)&"+)*&'3)&%#:)'9&":&D[&

-*";%&%#:)'9& &#.&8.$)*%'#.$#(,)&".)&10+).&#%%"*')$&

:""$&%#:)'9&%-#.$#,%&0.&*)-).'&9)#*%4&J"&#,,#9&:)#*%6&'3)&

1"+)*./).'&,#8.-3)$&#&/)$0#&-#/;#01.&0.&

>);')/()*&OPNR&0.&%8;;"*'&":&D[&-*";%4&<'&3";)%&'"&

)$8-#')&'3)&;8(,0-&#.$&-*)#')&#&:#+"8*#(,)&

#'/"%;3)*)&:"*&'3)&$)+),";/).'&":&'3)&D[&0.$8%'*94&

<.&'3)&%#/)&/".'36&'3)&1"+)*./).'&#,%"&*),)#%)$&

B*)%0$).'&i0&^0.;0.1 %&8.;8(,0%3)$&%;))-3&:*"/&

e)-)/()*&OPNQ6&23)*)0.&3)&).$"*%)$&D[&-*";%4&

B#*#$"I0-#,,96&$)%;0')&#.&#-'0+)&-#/;#01.&'"&;*"/"')&

D[&-*";%6&'3)&=30.)%)&1"+)*./).'&3#%&*)K)-')$&

0/;"*'%&":&`>&-"*.&%0.-)&a"+)/()*&OPNQ&$8)&'"&'3)&

;*)%).-)&":&>9.1).'# %&[<!NSO&1).)'0-#,,9&/"$0:0)$&

-"*.6&/#*G)')$&#%&\0;')*#4&=30.#&3#%&9)'&'"&#;;*"+)&

'3)&[<!NSO&+#*0)'9&:"*&0/;"*'%&#,'3"813&>9.1).'#&

#;;,0)$&0.&OPNP4&J3)&%#/)&%'*#0.&-#.&()&0/;"*')$&0.'"&

'3)&F`& &$)%;0')&0'%&+0*8,).',9&#.'0HD[c&%'#.$4&

J3)*):"*)&'3)&#-'0".%&":&'3)&=30.)%)&1"+)*./).'&

/013'6&#'&:0*%'&1,#.-)6&#;;)#*&0**#'0".#,4&5"2)+)*&

'3)*)&0%&,"10-&'"&'3)0*&;",0-9&*)%;".%)4&!)-#,,&"8*&

)#*,0)*&'#(,)&".&=30.)%)&-"*.&%'#'0%'0-%6&230-3&

3013,013'%&3"2&=30.)%)&;*"$8-'0".&3#%&0.-*)#%)$&(9&

%"/)&MPW&"+)*&'3)&;#%'&$)-#$)4&[8-3&":&'30%&2#%&

#-30)+)$&(9&'3)&1"+)*./).'&8%0.1&3013)*&;*0-)%&'"&

0.-).'0+0%)&#.$&;*"/"')&$"/)%'0-&;*"$8-'0".4&>)).&

:*"/&'30%&;)*%;)-'0+)6&'3)&=30.)%)&#*)&/"%'&,0G),9&

8%0.1&'3)&D[&0%%8)&#%&#&%/"G)&%-*)).&'"&,0/0'&

0/;"*'%4&E."'3)*&;"%%0(,)&)I;,#.#'0".&0%&'3#'&'3)&

=30.)%)&#*)&#'')/;'0.1&'"&$0+)*%0:9&'3)0*&-"*.&0/;"*'&

%"8*-)4&E:')*&#,,6&0.&OPNQ6&.)#*,9&#,,&":&=30.# %&-"*.&

0/;"*'%&"*010.#')$&0.&'3)&`>4&E,'3"813&0/;"*'%&20,,&

,0G),9&-".'0.8)&'"&*0%)6&)78#,,9&,0G),96&'3)&1"+)*./).'&

20,,&-".'0.8)&'"&,0/0'&'3)/4&

E%&#&:""'."')6&."')&'3#'&>9.1).'#&0%&()0.1&%8)$&(9&

=#*10,,&#.$&%"/)&`>H(#%)$&:#*/)*%&:"*&/#*G)'0.1&0'%&

\0;')*#&%))$&():"*)&0'&"('#0.)$&0/;"*'&#;;*"+#,&:*"/&

=30.#4&J30%&$)/".%'*#')%&'3)&0/;#-'&'3#'&=30.)%)&

;",0-0)%&."2&3#+)&"+)*%)#%4&E,'3"813&'3)&-"8.'*9&

-8**).',9&0/;"*'%&#&/)*)&Q/.'&":&-"*.6&9"8&".,9&.))$&

'"&,""G&#&:)2&9)#*%&3).-)&23).&'30%&.)#*&*"8.$0.1&

)**"*&()-"/)%&/#')*0#,4&

c(+0"8%,9&#,,&":&'3)&#("+)&$)/".%'*#')%&'3#'&'3)&

=30.)%)&1"+)*./).'&*)-"1.0%)%&'3#'&'3)&#1*0-8,'8*)&

%)-'"*&.))$%&'"&()&'*#.%:"*/)$4&J3)&:",,"20.1&%)-'0".&

,""G%&#'&3"2&'3)&%'#')&%8;;"*'%&#1*0-8,'8*)4&

&

&

Page 24: Roads to be travelled

challenges

Roads to be travelled PwC 21

@0:.)$4.$-'%$2'-".'%()#*+,-+).'&.*-0)'=30.# %&#1*0-8,'8*#,&%)-'"*&3#%&20'.)%%)$&/#K"*&%'*8-'8*#,&-3#.1)%&%0.-)&'3)&:"8.$#'0".&":&'3)&B)";,) %&!);8(,0-&

0.&NTRT4&<.&0'%&:"*/#'0+)&9)#*%6&'3)&%'#')&'""G&-".'*",&":&#,,&,#.$&#.$&)%'#(,0%3)$&#&/".";",9&".&'3)&;8*-3#%)&

#.$&/#*G)'0.1&":&:#*/&"8';8'4&<.&NTLV6&'3)&-",,)-'0+)&:#*/%&2)*)&/)*1)$&0.'"&,#*1)*& ;)";,) %&-"//8.)% &#.$&

;*0+#')&:""$&;*"$8-'0".&2#%&(#..)$4&@"*&'3)&.)I'&'2).'9&9)#*%&'3)&-"//8.)&%9%')/&*)$8-)$&0.-).'0+)%6&

*)/"+)$&;*0-)&%01.#,%&#.$&;*)+).')$&'3)&)::0-0).'&#,,"-#'0".&":&*)%"8*-)%4&

O>29#7&2)!2G!4-&)%1%!(*.&,#97#.%!

F%.&2/! F29&7&,(9!%>%)71! P56(,7!2)!(*.&,#97#.%!

<;K;! !<;D?!! !)$0%'*0(8'0".&":&,#.$&:*"/&,#.$,"*$%&

'"&;)#%#.'%4&

D*#0.&"8';8'&0.-*)#%)$&'"&NSR/.'&8;&RVW&

:*"/&NTRT&E1*0-8,'8*#,&"8';8'&*)#-3)$&

=aARS(.&0.&NTLO6&.)#*,9&$"8(,0.1&:*"/&NTRT&

<;D8! !<;DQ!! =",,)-'0+0%#'0".&":&,#.$&="H";)*#'0+)&:#*/%& E1*0-8,'8*#,&+#,8)&1*)2&".,9&Q4NW6&230,)&1*#0.&

"8';8'&1*)2&Q4LW& &#&$*#/#'0-&*)$8-'0".&

:*"/&NRW&#.$&NQW&0.&'3)&NTRTHLO&;)*0"$&

<;DR! !<;SJ!! J3)&D*)#'&])#;&@"*2#*$& B)";,) %&-"//8.)% &

2)*)&)%'#(,0%3)$&#.$&;*0+#')&:""$&;*"$8-'0".&

(#..)$&

C)'2)).&NTLV&#.$&NTSP6&#1*0-8,'8*#,&"8';8'&

:),,&(9&#&:0:'36&#.$&1*#0.&"8';8'&(9&"+)*&#&

78#*')*&

<;S<! !<;SD!! J3)&!)H#$K8%'/).'&B)*0"$&J3)&1"+)*./).'&

#$";')$&'3)&;*0.-0;,)&":& *)#$K8%'/).'6&

-".%",0$#'0".6&%8;;,)/).'#'0".&#.$&

0/;*"+)/).' 4&

="/;#*)$&'"&NTSP6&#1*0-8,'8*#,&"8';8'&1*)2&

VOW&#.$&1*#0.&"8';8'&(9&"+)*&#&'30*$&

<;SS! !<;QS!! J3)&=8,'8*#,&!)+",8'0".& E..8#,&1*"2'3&0.&#1*0-8,'8*#,&+#,8)&#.$&

1*#0.%&"8';8'&%,"2)$&$"2.&$*#/#'0-#,,9&'"&

K8%'&"+)*&Q4LW&

&

N$2'"&D(?SN47(C1&(A$%.:3$:(A$]03(O'"1.W&7(4$<<&"#.W.30#.$:(0:=(41.:0 3(0Y'."2<#2'0<("'.3.3(.:(+Z,ZV+Z@+7(41.:&3&(8"$:$9."(A&T$'93(0:=(L&'#.<.#R(S&10W.$2'M(&

<.&NTMV6&e).1&i0#";0.1&0.0'0#')$&*8*#,&*):"*/%6&230-3&

,)$&'"&'3)&#(",0'0".&":&'3)&-"//8.)&%9%')/4&E/".1&

'3)&;",0-9&-3#.1)%&0.'*"$8-)$&'3)*)#:')*6&;)*3#;%&'3)&

/"%'&%01.0:0-#.'&2#%&'3)&5"8%)3",$&!)%;".%0(0,0'9&

>9%')/&b5!>Z4&`.$)*&'30%6&,#.$&2#%&#%%01.)$&'"&

3"8%)3",$%&:"*&NL&9)#*%&b#.$&,#')*&QP&9)#*%Z6&#.$&)#-3&

2#%&10+).&-*";&78"'#%&'"&:8,:0,4&J3)&78"'#%&2)*)&

*),#'0+),9&%/#,,&(8'&#.9'30.1&#("+)&'3#'&-"8,$&()&%",$&

:"*&;*":0'&0.&'3)&";).&/#*G)'4&J30%&/)#.'&'3#'&:#*/)*%&

2)*)&;*"+0$)$&20'3&0.-).'0+)%&'"&0.-*)#%)&"8';8'4&<.&

'3)&0.0'0#,&;)*0"$&":&'3)%)&*):"*/%6&()'2)).&NTMV&#.$&

NTVR6&1*#0.&"8';8'&1*)2&LW&#..8#,,94&5"2)+)*6&".-)&

'3)&)#%9&20.%&2)*)&"+)*6&#..8#,&1*"2'3&$)-),)*#')$&'"&

N4OW&"+)*&'3)&.)I'&$)-#$)4&!0%0.1&;*0-)%&#.$&0/;"*'%&

.)-)%%0'#')$&#."'3)*&*"8.$&":&*):"*/%&%8-3&#%&'3)&

D"+)*."* %&D*#0.&C#1&!)%;".%0(0,0'9&>9%')/ 6&230-3&

/#$)&;*"+0.-0#,&1"+)*."*%&*)%;".%0(,)&:"*&(#,#.-0.1&

1*#0.&%8;;,9&#.$&$)/#.$&#.$&%'#(0,0%0.1&1*#0.&;*0-)%&

0.&'3)0*&;*"+0.-)%4&

?30,)&'3)&5!>&2#%&-)*'#0.,9&#&/#K"*&0/;*"+)/).'&".&

'3)&-"//8.)&%9%')/6&0'&2#%&:#*&:*"/&;)*:)-'4&J3)&G)9&

;*"(,)/&2#%&'3#'6&10+).&'3)&,#*1)&;";8,#'0".&#.$&,0/0')$&

,#.$&#+#0,#(,)6&)#-3&3"8%)3",$&".,9&*)-)0+)$&#&%/#,,&

#/"8.'&'"&:#*/4&J30%&;*"(,)/&2#%&#--).'8#')$&(9&'3)&

:#-'&'3#'6&%0.-)&,#.$&;#*-),%&3#$&$0::)*).'&%"0,&

-3#*#-')*0%'0-%6&%80'#(0,0'9&:"*&0**01#'0".6&,"-#'0".6&#.$&%"&

".6&#.$&%0.-)&)#-3&3"8%)3",$&3#$&'"&1)'&;#*-),%&:"*&#,,&

1*#$)%6&'3)&,#.$&'3#'&'3)9&1"'&2#%&:*#1/).')$&#.$&

%-#'')*)$4&J30%&,0/0')$&'3)&%-";)&:"*&)-"."/0)%&":&%-#,)&

'3*"813&0**01#'0".&#.$&/)-3#.0%#'0".4&@8*'3)*/"*)6&#%&

'30%&2#%&#&-".'0.8"8%&;*"-)%%6&#.&0.-*)#%0.1&;";8,#'0".&

0/;,0)$&:8*'3)*&,#.$&:*#1/).'#'0".4&@0.#,,96&%0.-)&'3)&

;*"-)%%&)/;3#%0%)$&3"8%)3",$&%0U)&#.$&$0%*)1#*$)$&

-#;#(0,0'96&/#.9&3"8%)3",$%&*)-)0+)$&,#*1)&,#.$&;#*-),%&

(8'&20'3&,0/0')$&,#("8*&:"*-)%6&#.$&+0-)&+)*%#& &'38%&

30.$)*0.1&#.&)::0-0).'&#,,"-#'0".&":&#&%-#*)&*)%"8*-)4&J30%&

;*"(,)/&2#%&)I#-)*(#')$&(9&8*(#.&/01*#'0".6&230-3&

:8*'3)*&*)$8-)$&'3)&*8*#,&,#("8*&:"*-)4&&

>"/)&":&'3)%)&;*"(,)/%&2)*)&#$$*)%%)$&20'3&*):"*/%&

'3#'&,0/0')$&*)$0%'*0(8'0".6&)I').$)$&').8*)&#.$&

20$).)$&'3)&%-";)&:"*&*).'0.1&"8'&,#.$4&J30%&,)$&'"&'3)&

$)+),";/).'&":&#&,#.$&*).'#,&/#*G)'6&(8'&'3)&

#1*))/).'%&').$)$&'"&()&0.:"*/#,&#.$&%3"*'H')*/4&

J3)&J30*$&B,).8/&":&'3)&NM'3&B#*'9&=".1*)%%&0.&OPPV&

)/;3#%0%)$&'3)&.))$&'"&).-"8*#1)&'3)&,#.$&*).'#,&

/#*G)'6&#.$&%0.-)&'3).&;",0-9&/#G)*%&3#+)&

)I;)*0/).')$&20'3&+#*0"8%&;0,"'&;*"K)-'%4&E;#*'&:*"/&

*).'0.1&,#.$H8%)&*013'%6&'3)*)&3#+)&#,%"&()).&#'')/;'%&

'"&/"*'1#1)&#%%)'%&'"&*#0%)&:0.#.-0.14&J3)&OPNQ& a"4&N&

e"-8/).' &-#,,)$&:"*&#&'*#.%0'0".&'"&,#*1)H%-#,)&:#*/%&

Page 25: Roads to be travelled

challenges

Roads to be travelled PwC 22

0.&=30.#&#.$&).-"8*#1)$&:#*/)*%&'"&*).'&"8'&'3)0*&

,#.$&'"&,#*1)&:#*/0.1&).'0'0)%6&-"H";)*#'0+)%&#.$&

#1*0-8,'8*#,&).')*;*0%)%4&J3)*)&0%&)+).&#& ,#*1)&:#*/ &

%8(%0$9&()0.1&')%')$&0.&#&:)2&;*"+0.-)%6&10+).&'"&

:#*/)*%&;,#.'0.1&/"*)&'3#.&#&-)*'#0.&;*"+0.-)H

%;)-0:0-&#*)#&":&1*#0.4&E,,&":&'30%&3#%&3#$&#.&)::)-'& &

'3)&[0.0%'*9&":&E1*0-8,'8*)&)%'0/#')$&'3#'&0.&OPNQ6&

#*"8.$&OSW&":&=30.# %&:#*/,#.$&3#$&()).&*).')$6&8;&

:*"/&#;;*"I0/#'),9&TW&0.&OPPV4&

["*)&*):"*/%&#*)&".&'3)&2#94&J3)&J30*$&B,).8/&":&

'3)&NV'3&=B=&=).'*#,&="//0''))6&-".-,8$)$&,#%'&9)#*6&

#0/)$&'"&;*"+0$)&:#/)*%&20'3&1*)#')*&;*";)*'9&*013'%6&

0.-*)#%)&:#*/)*% &;*";)*'9&0.-"/)&#.$&#,,"2&*8*#,&

*)%0$).'%&'"&().):0'&:*"/&/"$)*.0%#'0".4&>;)-0:0-#,,9Y&

b0Z&).$"2&:#*/)*%&20'3&/"*'1#1)&#.$&18#*#.'))&

;"2)*&:"*&-".'*#-'8#,&/#.#1)/).'&*013'%6&b00Z&

;*";"%)&'"&;8%3&:"*2#*$& -#8'0"8%,9&#.$&%')#$0,9 &

-",,#')*#,6&18#*#.'))&#.$&'*#.%:)*&":&:#*/)*% &

*)%0$).'0#,&;*";)*'9&*013'%6&b000Z&).$"2&:#*/)*%&20'3&

*013'%&:"*&;"%%)%%0".6&0.-"/)6&;,)$1)6&18#*#.'))6&

0.3)*0'#.-)&#.$&;#0$&20'3$*#2#,&":&%3#*)%&0.&

-",,)-'0+)&#%%)'%6&#.$&b0+Z&;*";"%)&'"&%8;;"*'&'3)&

$)+),";/).'&":&,#*1)H%-#,)6&;*":)%%0".#,0%)$&#.$&

/"$)*.0%)$&";)*#'0".%4&E&-".-*)')&)I#/;,)&0%&'3#'&0'&

#,,"2%&-",,)-'0+),9H"2.)$& *8*#,&-".%'*8-'0".&,#.$&:"*&

-"//)*-0#,&8%) &'"&()&'*#.%:)**#(,)&#.$&*).'#(,)&#.$&

#0/%&'"&(80,$&#&8.0:0)$&/#*G)'&:"*&("'3&8*(#.&#.$&

*8*#,&-".%'*8-'0".&,#.$4&c'3)*&/#K"*&*):"*/%&0.-,8$)&

'3)&*)$8-'0".&0.&%-";)&":&,#.$&)I;*";*0#'0".&(9&,"-#,&

1"+)*./).'%4&&

@"*&%8*)6&'30%&0%&#&%'#')/).'&":&0.').'&#'&'30%&%'#1)&#.$&

'3)&)I').'&":&0/;,)/).'#'0".&*)/#0.%&'"&()&%)).4&

["%'&*):"*/%&'"&$#')&#*)&#'&'3)&;0,"'H')%'&%'#1)&#.$&

."'&-,"%)&'"&*",,"8'&#.$&)I)-8'0".&#'&.#'0".#,&,)+),4&

["*)"+)*6&%"/)&":&'3)%)&0.0'0#'0+)%&/013'&()&$0::0-8,'&

'"&0/;,)/).'&()-#8%)&,"-#,&1"+)*./).'%6&23"%)&

*)+).8)%&20,,&()&*)$8-)$6&/013'&";;"%)&'3)/4&

E--"*$0.1&'"&?"*,$&C#.G&$#'#6&".&#+)*#1)6&,"-#,&

1"+)*./).'%&*)-)0+)&RPW&":&'3)&'#I&*)+).8)%&:*"/&'3)&

-).'*#,&1"+)*./).'6&(8'&#*)&*)%;".%0(,)&:"*&VPW&":&

'"'#,&1"+)*./).'&%;).$0.14&J3)%)&$):0-0'%&#*)&8%8#,,9&

-"+)*)$&'3*"813&'3)&%#,)&":&-",,)-'0+),9&"2.)$&,#.$&

%)0U)$&:*"/&:#*/)*%4&!8*#,&,#.$&*):"*/&20,,&-8*'#0,&

'3)%)&#-'0+0'0)%&#.$&;8'&/"*)&%'*#0.&".&,"-#,&

1"+)*./).'% &:0%-#,&;"%0'0".%4&<.&%3"*'6&;*"1*)%%&0.&

,#.$&*):"*/&0%&#.&#*$8"8%6&%,"2&;*"-)%%4&

]#.$&*):"*/&2#%&0/;"*'#.'&#.$&,)$&'"&3013)*&"8';8'&

(8'&0'&$0$&."'&0.-*)#%)&*8*#,&0.-"/)%&0.&%3#*;&-".'*#%'&

'"&23#'&3#;;).)$&20'3&8*(#.&0.-"/)%4&=*8-0#,,9&0'&

#,%"&,)$&'"&20$)%;*)#$&0.-"/)&0.)78#,0'9&#-*"%%&'3)&

-"8.'*94&J38%6&#&$)-#$)&(#-G6&=30.)%)&;",0-9/#G)*%&

()1#.&%))G0.1&2#9%&'"&)I').$&$0*)-'&().):0'%&'"&

:#*/)*%4&<.&OPPR6&=30.#&0.'*"$8-)$&'3)&:0*%'&.#'0".#,&

$0*)-'&%8(%0$0)%&'"&:#*/)*%&#.$&()1#.&;3#%0.1&"8'&

#1*0-8,'8*#,&'#I)%4&J3)&$0*)-'&%8(%0$9&2#%&(#%)$&".&

'3)&,#.$&#*)#4&5"2)+)*6&'3)&8.0.').$)$&-".%)78).-)&

":&'30%&#-'0".&2#%&'3#'&,#.$"2.)*%&-"8,$&,)#+)&'3)&

,#.$&:#,,"2&#.$&%'0,,&1)'&%8(%0$0)%6&230,)&:#*/)*%&23"&

-8,'0+#')$&,)#%)$&,#.$&2"8,$&."'4&>0.-)&OPNQ6&'3)&

1"+)*./).'&3#%&/"+)$&'"2#*$%&,0.G0.1&$0*)-'&

%8(%0$0)%&'"&,#.$&;,#.')$&"*&1*#0.&3#*+)%')$4&

<.&>);')/()*&OPNR6&'3)&1"+)*./).'&*),)#%)$&$)'#0,%&

#("8'&'3)&;0,"'& '#*1)'&;*0-) &%8(%0$9&;*"1*#//)&:"*&

-"''".&#.$&%"9()#.%4&J30%&;",0-9&*);*)%).'%&#&.)2&

#;;*"#-3&'"&#1*0-8,'8*#,&%8;;"*'&'3#'&20,,&*)$8-)&

1"+)*./).'&0.')*:)*).-)&0.&;*0-)%&#.$&,)'&'3)&/#*G)'%&

3#+)&#&1*)#')*&*",)4&J3)&%8(%0$9&8.$)*&'30%&

;*"1*#//)&0%&-#,-8,#')$&#%&'3)&$0::)*).-)&()'2)).&#&

'#*1)'&;*0-) &%)'&(9&'3)&1"+)*./).'&():"*)&;,#.'0.1&

#.$&'3)&/#*G)'&;*0-)&0.&)#-3&;*"+0.-)4&

<.&#$$0'0".&'"&*)-"1.0%0.1&'3)&.))$&'"&0.-*)#%)&

;*"$8-'0+0'96&'3)&1"+)*./).'&#,%"&0.'*"$8-)$&

%8(%0$0)%&:"*&%))$%6&:)*'0,0%)*%&#.$&#1*0-8,'8*#,&

/#-30.)*94&>8(%0$0)%&#*)&#+#0,#(,)&:"*&3013H78#,0'9&

%))$%6&%8-3&#%&3013H"0,&%"9()#.6&0.$8%'*0#,H8%)&-"*.&

#.$&3013H;*"')0.&23)#'&+#*0)'0)%4&J3)%)&#*)&8%8#,,9&

;#0$&$0*)-',9&'"&:#*/)*%&(8'6&0.&%"/)&#*)#%6&'3)9&#*)&

;#0$&'"&%))$&%8;;,0)*%6&23"&#*)&'3).&%8;;"%)$&'"&;#%%&

0'&".&'"&:#*/)*%4&@)*'0,0%)*&%8(%0$0)%&#,%"&2"*G&0.&#&

%0/0,#*&2#94&[#-30.)*9&%8(%0$0)%&#*)&;#0$&'"&

/#-30.)*9&$)#,)*%6&23"&#*)&)I;)-')$&'"&;#%%&0'&".4&<.&

'3)&J2),:'3&@0+)HA)#*&B,#.6&'3)&1"+)*./).'&#0/)$&'"&

0.-*)#%)&'"'#,&#1*0-8,'8*#,&/#-30.)*9&;"2)*&'"&N(.&

_?&#.$&'3)&#1*0-8,'8*#,&/)-3#.0%#'0".&*#')&'"&SPW&

(9&OPNL4&5"2)+)*6&'3)&;"2)*&'#*1)'&2#%&#-30)+)$&(9&

OPNO6&#.$&'3)&/)-3#.0%#'0".&*#')&*)#-3)$&LTW&

0.&OPNQ4&

c'3)*&1"+)*./).'&%8;;"*'&/)#%8*)%&0.-,8$)&#&

/0.0/8/&;*0-)&%-3)/)&:"*&*0-)&#.$&23)#'6&\EJ&

*):8.$%&"*&2#0+)*%&#.$&'*#.%;"*'&'#I&2#0+)*%4&J3)&

1"+)*./).'&3#%&#,%"&%"813'&'"&0.-*)#%)&0.+)%'/).'&

'3*"813&'3)&)I').%0".&":&:0.#.-)&+0#&'3)&!8*#,&=*)$0'&

="H";)*#'0+)%&'3#'&;*"+0$)&,"#.%&'"&:#*/)*%&:"*&0.;8'&

;8*-3#%)%6&/#-30.)*9&#.$&"'3)*&0.+)%'/).'%4&

Page 26: Roads to be travelled

challenges

Roads to be travelled PwC 23

E,,&'3)%)&1"+)*./).'&/)#%8*)%&'"&0.-*)#%)&

;*"$8-'0".&#0/&'"&1)'&#*"8.$&'3)&;*"(,)/&":&,0/0')$&

,#.$&#.$&2#')*&*)%"8*-)%4&?0,,&'3)%)&()&%8::0-0).'&'"&

;*)+).'&0/;"*'%j&<.&"8*&+0)26&."4&?30,)&'3)%)&;",0-0)%&

20,,&/"%'&,0G),9&(""%'&90),$%6&0'&20,,&."'&()&#.923)*)&

.)#*&%8::0-0).'&'"&/))'&'3)&%'*".1&1*"2'3&0.&$)/#.$&

0.&'3)&9)#*%&#3)#$4&

J38%&=30.#&3#%&()18.&'"&'8*.&0'%&#'').'0".&"+)*%)#%d&0:&

'3)*)&#*)&-".%'*#0.'%&".&,#.$&#.$&2#')*&#'&3"/)6&239&

."'&(89&,#.$&0.&`G*#0.)&"*&g#/(0#&#.$&1*"2&23)#'&

#.$&-"*.&:"*&)I;"*'&'"&=30.#j&@"*&%8*)6&'30%&$")%&."'&

*);,0-#')& %),:H%8::0-0).-9 &#%&=30.#&2"8,$&%'0,,&()&

+8,.)*#(,)&'"&)I')*.#,&%3"-G%&%8-3&#%&)I;"*'&(#.%&#.$&

,#.$&)I;*";*0#'0".4&5"2)+)*6&0'&$")%&;"%%)%%&/)*0'4&

@0*%',96&0'&;*"+0$)%&#.&#+).8)&:"*&=30.#&'"&$0+)*%0:9&0'%&

-8**).'&#--"8.'&%8*;,8%)%&#2#9&:*"/&:0.#.-0#,&#%%)'%&

%8-3&#%&`>&'*)#%8*0)%&0.'"&*)#,&#%%)'%&%8-3&#%&

:#*/,#.$4&>)-".$,96&0'&:0'%&0.&20'3&'3)&20$)*&'3)/)&":&

:""$&;*"$8-'0".&%30:'0.1&'"&,"2H-"%'&;*"$8-)*%&%8-3&#%&

E:*0-#4&@0.#,,96&0'&20,,&#,%"&3),;&'"&;*"/"')&:*))&'*#$)&

'3*"813&0.')*$);).$).-94&

<.&0'%&NP'3&:0+)H9)#*&;,#.&0.&OPPN6&=30.#&0.0'0#')$&0'%&

D"&c8' &;",0-9&#0/)$&#'&).-"8*#10.1&=30.)%)&

0.+)%'/).'&#(*"#$4&E,'3"813&=30.#&3#%&()).&0.+",+)$&

0.&E:*0-#.&#1*0-8,'8*)&%0.-)&'3)&NTSP%6&0'&2#%&/"%',9&0.&

#&')-3.0-#,&-#;#-0'96&20'3&%"/)&'*#$)&*),#'0".%&#.$&

,0/0')$&:#*/0.1&0.+)%'/).'%4&C8'&%0.-)&'3)& D"&c8' &

;",0-96&0'%&0.+",+)/).'&3#%&%30:')$&'"&0.-,8$)&,#*1)H

%-#,)&:#*/0.16&;*"-)%%0.16&)780;/).'&)I;"*'&#.$&

#1*0-8,'8*#,&0.:*#%'*8-'8*)&$)+),";/).'4&<.&OPPT6&

=30.)%)&0.+)%'/).'&0.&E:*0-#.&#1*0-8,'8*)&2#%&

)%'0/#')$&#'&`>hQP(.4&<.&'3)&OPNR& a"4N&e"-8/).' 6&

'3)&1"+)*./).'&-#,,)$&:"*&'3)& D"&c8' &;",0-9&'"&()&

#--),)*#')$&#.$&0.&#.&E818%'&OPNR&;*)%%&*),)#%)6&'3)&

[0.0%'*9&":&="//)*-)&#.."8.-)$&'3#'&"+)*&QPP&

:#*/0.1&).')*;*0%)%&3#$&0.+)%')$&#-*"%%&RS&-"8.'*0)%4&

5"2)+)*6&/"%'&":&'3)%)&:#*/0.1&$)#,%&#*)&#'&%/#,,&

%-#,)&#.$&/"%',9&,)%%&'3#.&NP6PPP3#4&J3)*)&3#+)&()).&

/)$0#&*);"*'%&":&,#*1)&'*#.%#-'0".%&(8'&#-'8#,&3#*$&

)+0$).-)&0%&3#*$&'"&-"/)&(94&@"*&)I#/;,)6&/)$0#&

*);"*'%&%0.-)&OPPM&3#+)&*)-"*$)$&gJF&E1*0(8%0.)%% %&

-".-)%%0".&'"&-8,'0+#')&;#,/&".&#.&#*)#&*#.10.1&:*"/&

NPP6PPP3#&'"&'3)&%"/)23#'&,#*1)*&Q/&3#&":&,#.$4&

E."'3)*&=30.)%)&1*#.$&;,#.&2#%&'"&-8,'0+#')&K#'*";3#&

:"*&(0"H:8),%&".&"+)*&O/.&3#&0.&g#/(0#4&E1#0.6&."&

;*"1*)%%&2#%&*)10%')*)$&".&)0'3)*&;*"K)-'4&59;)*(",)&

0%&."'&*)%'*0-')$&'"&,#.$&#,".)& &#."'3)*&-"//".&

*):*#0.&0.&*)-).'&9)#*%&2#%&'3#'&=30.#&2"8,$&%).$&N/.&

:#*/)*%&'"&%)'',)&0.&E:*0-#4&

E&%0/0,#*&%-).#*0"&;,#9)$&"8'&0.&`G*#0.)4&J3)*)&2)*)&

*);"*'%&,#%'&9)#*&":&=30.#6&+0#&%'#')H"2.)$&-"/;#.0)%6&

,)#%0.1&NPP6PPP3#&":&,#.$&0.&`G*#0.)&:"*&:#*/0.1&#.$&

'3#'&'3)&#*)#&-"8,$&;"').'0#,,9&)I;#.$&"+)*&LP&9)#*%&'"&

Q/.&3#& &"*&#("8'&NPW&":&`G*#0.) %&#*#(,)&,#.$4&

`G*#0.0#.&#1*0-8,'8*#,&:0*/&_>D&E1*"6&230-3&2#%&

%8;;"%)$&'"&()&'3)&-"8.')*;#*'96&$).0)$&'3"%)&*);"*'%&

%#90.1&'3#'&'3)&#1*))/).'&2#%&20'3&*)1#*$&'"&'3)&

'*#.%:)*&":&0**01#'0".&')-3.","19&:"*&#&/)*)&Q6PPP3#4&

@0.#,,96&'3)*)&0%&]#'0.&E/)*0-#4&?30,)&=30.#&0/;"*'%&

,#*1)&78#.'0'0)%&":&%"9()#.%&:*"/&C*#U0,&#.$&

E*1).'0.#6&0'%&$0*)-'&0.+",+)/).'&*)/#0.%&,0/0')$4&

J3)*)&3#+)&()).&."&#-780%0'0".%&":&:#*/,#.$&#.$&0'&0%&

#,%"&8.,0G),9&-3#.1)&0.&'3)&.)#*&')*/6&10+).&'3)&

*)%'*0-'0".%&0/;"%)$&".&:"*)01.&,#.$&"2.)*%30;&0.&

C*#U0,&#.$&E*1).'0.#& &0'%),:&0%&#&*)%;".%)&'"&1*"20.1&

=30.)%)&0.')*)%'4&

J3)&%#/)&0%&'*8)&),%)23)*)d&23)'3)*&E8%'*#,0#6&a)2&

g)#,#.$6&'3)&B30,0;;0.)%&#.$&%"&".4&J3)&-".-,8%0".&2)&

2"8,$&$*#2&0%&'3#'&=30.#&/#9&;8*%8)&'30%&%'*#')19&(8'&

0'&0%&,0G),9&'"&*)/#0.&%/#,,&%-#,)&0.&'3)&/)$08/&')*/4&

e)#,%&0.+",+0.1&/0,,0".%&":&3)-'#*)%6&"*&)+).&38.$*)$%&

":&3)-'#*)%&0.+#*0#(,9&1).)*#')&3"%'0,0'9&#.$&,"-#,&

*)%).'/).'4&["*)&0/;"*'#.',96&,#*1)H%-#,)&;*"K)-'%&

*)/#0.&$0::0-8,'&'"&)I)-8')&%8--)%%:8,,9& &'3)*)&#*)&

.8/)*"8%&)I#/;,)%&0.&E:*0-#6&23)*)&-"/;#.0)%&3#+)&

3#*$,9&;*"1*)%%)$&()9".$&#-780*0.1&#&,#*1)&;#*-),&

":&,#.$4&

J3#'&$")%. '&.)1#')&#.&#,')*.#'0+)&%'*#')19Y&'3)&

;"%%0(0,0'9&":&=30.#&#-780*0.1&%'*#')10-&#%%)'%&#,".1&

$0::)*).'&;"0.'%&":&'3)&+#,8)&-3#0.4&J3#'&0%6&0.%')#$&":&

#-780*0.1&,#.$6&(89&),)+#'"*%&#.$&;*"-)%%0.1&:#-0,0'0)%6&

"*&;*"+0$)&:0.#.-0.1&#.$&,"10%'0-%&%)*+0-)%4&J3)%)&2)*)&

'3)&0.').'0".%&()30.$&>'#')H"2.)$&=3".170.1&D*#0.&

D*"8; %&;,#.%&0.&OPNN&'"&(80,$&#&%"9()#.H-*8%30.1&

;,#.'6&*#0,2#9&,0.)&#.$&#&%'"*#1)&#.$&'*#.%;"*'#'0".&

38(&'"&)I;"*'&1""$%&(#-G&'"&=30.#& &20'3&#.&

0.+)%'/).'&":&"+)*&`>hO(.4&5"2)+)*6&#%&20'3&"'3)*&

,#*1)&=30.)%)&#1*0-8,'8*#,&;*"K)-'%6&'30%&'""&3#%&9)'&'"&

/#')*0#,0%)4&C8'&'3)&20$)*&%'*#')10-&#*18/).'&

*)/#0.%&+#,0$4&

& &

Page 27: Roads to be travelled

challenges

Roads to be travelled PwC 24

<.&@)(*8#*9&OPNR6&=30.# %&,#*1)%'&1*#0.&'*#$)*6&%'#')H"2.)$&=c@=c6&#-780*)$&#&LNW&%'#G)&0.&e8'-3&1*#0.&'*#$)*&

a0$)*#6&230-3&3#%&#&%'*".1&;*"-8*)/).'&;,#':"*/&0.&C*#U0,6&E*1).'0.#&#.$&=).'*#,&F8*";)4&<.&E;*0,&OPNR6&

=c@=c&#-780*)$&#&LNW&%'#G)&0.&>0.1#;"*)H(#%)$&a"(,)&D*"8;&]'$ %&#1*0(8%0.)%%&8.0'&:"*&`>hN4L(.4&=c@=c&

#0/%&'"&:"*/&#&K"0.'&+).'8*)&'"&,0.G&0'%&1*#0.&;*"-)%%0.1&#.$&$0%'*0(8'0".&(8%0.)%%&0.&=30.#&20'3&a"(,) %&1*#0.&

%"8*-0.1&#.$&'*#$0.1&(8%0.)%%4&a"(,) %&#1*0(8%0.)%%&8.0'&0.-,8$)%&%81#*&/0,,%&0.&C*#U0,6&1*#0.&),)+#'"*%&0.&

E*1).'0.#6&#.$&"0,%))$&-*8%30.1&;,#.'%&0.&=30.#6&`G*#0.)6&>"8'3&E:*0-#6&#.$&>"8'3&E/)*0-#4&="H0.-0$).'#,,96&

=30.#&<.+)%'/).'&="*;"*#'0".& &=30.# %&%"+)*)01.&2)#,'3&:8.$& &#,*)#$9&"2.%&#&NR4NW&0.&'3)&a"(,)&D*"8;4&

?0'3&'3)%)&#-780%0'0".%6&=c@=c&20,,&()&#(,)&'"&;8*-3#%)&%"9()#.%&:*"/&C*#U0,&#.$&"'3)*&;*"$8-)*%&$0*)-',96&

(9;#%%0.1&'3)& EC=e &78#*')'&":&1*#0.&'*#$)*%Y&Ee[6&C8.1)6&=#*10,,&#.$&]"80%&e*)9:8%4&

c'3)*&%0/0,#*&$)#,%&0.-,8$)&'3)&;*)+0"8%,9&/).'0".)$&?5&D*"8; %&;8*-3#%)&":&`>H(#%)$&>/0'3:0),$&@""$%6&

=30.#&@0%3)*9&D*"8; %&;8*-3#%)&":&B)*8+0#.&:0%3&)I;"*')*&=";)0.-#&E>E6&#.$&=c@=c %&;8*-3#%)&":&E8%'*#,0#.&

%81#*&;*"$8-)*&J8,,9&>81#*4&=30.# %&`>hQ(.&,"#.H:"*H1*#0.%&$)#,&20'3&`G*#0.)&2#%&#."'3)*&#,'3"813&=30.#&

*)-).',9&%8)$&`G*#0.)&:"*&'3)&(*)#-3&":&'30%&-".'*#-'&#.$&230-3&20,,&()&-"/;,0-#')$&%'0,,&:8*'3)*&(9&".1"0.1&-0+0,&

8.*)%'&0.&'3)&-"8.'*94&

&

&

&

&

&

&

Page 28: Roads to be travelled

challenges

Roads to be travelled PwC 25

@,09%,'<()#9+&#$.&&'A.-10)B'B2=&3#%&()).&%8;;"*'0.1&'3)&1,"(#,&#1*0-8,'8*#,&%)-'"*&#'&#&-"*;"*#')6&aDc&#.$&1"+)*./).'&,)+),&:"*&/#.9&

9)#*%4&e8*0.1&'30%&'0/)6&2)&3#+)&(80,'&8;&#&$)'#0,)$&#.$&;*#-'0-#,&8.$)*%'#.$0.1&":&3"2&#1*0-8,'8*#,&%9%')/%&

#*"8.$&'3)&2"*,$&2"*G4&!)%"8*-)%&#*"8.$&'3)&2"*,$&0.-,8$)&E1*0(8%0.)%%&%)*+0-)&-).'*)%&0.&C*#U0,&#.$&

E*1).'0.#d&E1*0(8%0.)%%&;*#-'0-)%&0.&<.$0#&#.$&'3)&[FaE&*)10".&#.$&E1*0(8%0.)%%&3)#$%&0.&)+)*9&/#K"*&*)10".4&&

?)&3#+)&3),;)$&#'&,)#%'&:"8*&$0::)*).'&1"+)*./).'%&:"*/8,#')&-"/;*)3).%0+)&:""$&%)-8*0'9&%'*#')10)%4&?)&#,%"&

3#+)&#&$)$0-#')$6&1,"(#,&:""$&%#:)'9&#$+0%"*9&')#/4&<.&=30.#6&:"*&0.%'#.-)6&E%%8*)&k8#,0'9&#.$&B2=&a)2&g)#,#.$&

%01.)$&#&-",,#("*#'0".&:*#/)2"*G&#1*))/).'&20'3&=30.#&[).1.08&e#0*9&="/;#.9&#.$&=c@=c&="*;"*#'0".&'"&

0.+)%'01#')&'3)&$)+),";/).'&":&#&=30.#H&a)2&g)#,#.$&#1*0(8%0.)%%&%)*+0-)&#.$&@""$&>#:)'9&=).'*)&":&FI-),,).-)&

0.&=30.#4&&e"&:)),&:*))&'"&-".'#-'&8%&:"*&:8*'3)*&$)'#0,%4&

!"#$%'C+&#$.&&'@)0+?'&#&$)$0-#')$&')#/&":&(0,0.18#,&%;)-0#,0%'%&23"&-#.&;*"+0$)&0.H$);'3&

G."2,)$1)&":&'3)&/#*G)'%6&-8,'8*)6&,)1#,&%9%')/%6&'#I6&#--"8.'0.16&#8$0'0.1&#.$&*)18,#'"*9&:*#/)2"*G&0.&("'3&

'3)&`_&#.$&=30.#4&

G&#%&

.)-)%%#*96&2)&;*"+0$)&3#.$%H".6&;*#-'0-#,&#%%0%'#.-)&'"&=30.)%)&-"/;#.0)%&,""G0.1&'"&)I;#.$&0.&'"&'3)&`_&"*&

)8*"U".)&#.$&E:*0-#6&#%&2),,&#%&`_&-"/;#.0)%&20%30.1&'"&$)+),";&'3)0*&";)*#'0".&0.&=30.#4&

?)&;*"+0$)&'3"813':8,6&()%;"G)&%)*+0-)%&230-3&%8;;"*'&

2"*,$&'3"%)&#/(0'0".%&/#9&'#G)&'3)/4&

=1!'!0$-%*-&'<:&9"8&2"8,$&,0G)&'"&$0%-8%%&#.9&":&'3)&0%%8)%&*#0%)$&0.&'30%&*);"*'6&;,)#%)&-".'#-'Y&

' ' 8#*"%)2'/.)(+&0$'OY'."2<#2'&(O=W.3$'(#$(-/4'[Y&lRR&bPZ&MVVP&VOMOVO&

FY&*0-3#*$4:)*18%".m8G4;2-4-"/&

' ' ' 3+1.#'D#%$('-/4(-0'#:&'7(41.:0(S23.:&33(^'$25'JY&lRR&bPZ&OP&MVPR&TORV&

[Y&lRR&bPZ&MTQO&PPMNOV&

FY&%82)04K0#.1m8G4;2-4-"/&

&

'

' E%)B'D%4.&'^<$%0<(OY'.%23.:&33(4$$'=.:0#$''

&

[Y&lRRbPZMVPQV&LVMON&

FY&/#*G4$4K#/)%m8G4;2-4-"/'

' ' ' 80&&'D%*B&0$'-/4(N&:.$'(_0:0Y&'7(A.3;(O332'0:"&'JY&lRR&bPZ&OP&MVPR&NVMR&

[Y&lRR&bPZ&MMOL&SQQRSL&

FY&*"%%4)4K#-G%".m8G4;2-4-"/&

&

&

&

&

<90+-'=1!'

Page 29: Roads to be travelled

&

&

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

150925-163846-YF-OS

&