france launch - pwc · capability • value growth mind-set • innovation, research & design...
TRANSCRIPT
www.pwc.com
Strictly Private and Confidential
April 2015
France Launch
PricewaterhouseCoopers Private Ltd
Agenda
Slide 2
Future of India The Winning Leap
1
$10 Trillion GDP ambition
for shared prosperity
2 3
Winning Leaps in 10 key sectors
Entrepreneur Innovation & Ease of Doing
Business
4
Corporate sector
capabilities for the
Winning Leap
K
Key features of $10 Trillion
economy
5
PricewaterhouseCoopers Private Ltd
Our research set out to investigate 9% GDP growth leading to a $10.4 Trillion economy by 2034
Future of India The Winning Leap
Slide 3
$5.6 tr
$1.9 Trillion
5.5%
5%
($1,500 per capita)
9%
$10.4 trillion ($6,800 per capita)
$7.4 tr
– 7.0% SCENARIO 2
$6.8 – 6.6% SCENARIO 1
tr
2034 Baseline 2014 2012 2024 ($4.5 tr)
PricewaterhouseCoopers Private Ltd
For balanced growth we also set an ambition for Human Development Index* improvement
Future of India The Winning Leap
Slide 4
HDI – Life expectancy, years of schooling and gross national income per capita
2014 2034
0.59, 1.25 Bn
0.85, 1. 5 Bn 0.70
World Average
0.26
0.11
2000
0.48, 1.01 Bn
PricewaterhouseCoopers Private Ltd
CEOs/Chairmen
Non Executive Directors /Strategy Directors
Policy makers/ Social sector leaders
Academicians
Sector experts
Top-down modelling
• With Oxford Economics financial model for growth
Bottom-up modelling
• With sector experts bottom up view for key sectors
• Workshops in the chosen 10 sectors with sector experts detailing of solutions regarding t0 growth
• Exhaustive secondary research on the chosen 10 sectors
Methodology: Industry interviews, workshops with experts, secondary research and financial modelling
Future of India The Winning Leap
Slide 5
Workshop with sector experts
Financial modelling
Industry interviews
+ +
49%
16%
10%
7%
18%
Secondary Research & Online Survey – 1,500 PwC participants
PricewaterhouseCoopers Private Ltd
Through discussions with sector experts, we arrived at output vectors in the 4 human, 4 institutional and 2 enabling sectors
Future of India The Winning Leap
Slide 6
~70% GDP
Human
Agriculture
Improving
productivity
7 . 4 tonnnes/hectare
4 tonnnes/hectare 2014
2034
Education Keeping children
in school
10 years
7 years 2014
2034
Healthcare Raising life
expectancy
66 years 2014
2034
Financial Services Providing
banking to
more people
90% access
35% access
2014
2034
80 years
Institutional Retail Increasing the
market share
of organised
retail
share
2014
2034
8% share
Power
More and better
power to more
people
r
100 %
access
75% access 2014
2034
Urbanisation
Modernising
urban areas
650 mn p e o p l e
400 mn people 2014
2034
Manufacturing
Increasing
value-added
manufacturing
> 25%
of GDP
12% of GDP 2014
2034
50 %
Enabling
Digital connectivity Broadening
the network
80 % acce s s
15% acce s s
2014
2034
Physical connectivity Reduce logistic cost
8 % of GD P
2014
2034
1 3 % of GD P
PricewaterhouseCoopers Private Ltd
In each of the key vectors, we examined what would drive output and realised the necessity of a non linear approach
Future of India The Winning Leap
Slide 7
2034 Traditional:
• 3.5 million hospital beds
• 3 million doctors
2014
80 years
66 years
1.3
2.5 5.0 3.5
doctors
nurses
beds .65 1.3
doctors
nurses
Hospital beds
Per 1,000 people
Average life expectancy
+
Current Issue Desired Outcome
Winning leap solution
Winning Leap
3.5m bed, 3m Doc
2.2m bed 2m Doc
$90 bn savings
Traditional
Investments
Fierce Catch-up
Investing in hospitals & education
Shifting point of care
Preventative +
Significant Leap
mHealth
Leapfrog
+
PricewaterhouseCoopers Private Ltd
Similar analysis of other key sectors shows that up to 40% of the $10 Trillion economy would consist of new solutions
Future of India The Winning Leap
Slide 8
Source: PwC analysis
$1.9tr* GDP
2014
Fierce catch-up
Significant leap
$10.4 tr* GDP
40%
New solutions
60%
Executing existing methods
Leapfrog
2034
PricewaterhouseCoopers Private Ltd Slide 9
Corporate capability
• Value growth mind-set
• Innovation, research & design
• Unlocking vested structures
• Purposeful brand
• Customer experience focus
• Shift in quality and service
• Tri-entity partnerships
• International know-how
• New human capital skills
• Unconventional channels
• Asset light models
• Technology enabling
• Board and top management alignment
• Integrity DNA from top
• Sustainability and diversity led
Future of India The Winning Leap
To power India’s winning leap, the corporate sector will need to respond to five winning themes that will help build key capabilities
PricewaterhouseCoopers Private Ltd
The Entrepreneurial sector will have a key role to play in the Winning Leap, enabled both by government and corporates
Future of India The Winning Leap
Slide 10
Government
• Ease of doing business
• Provide tax incentives
• Simplifying regulations
• Infrastructure
Physical
Digital
• Provide access to quality utilities – water, electricity
• Mentoring
• Incubating
• Building entrepreneurial networks
• Access to markets
• Access to capital
VC/ PE
Angel investors
Debt funding
• Providing relevant training
Corporate sector
PricewaterhouseCoopers Private Ltd
The $10 trillion economy will require significantly higher investment, and almost 70% increase in labour productivity
Future of India The Winning Leap
Slide 11
Sources: Oxford Economics, PwC Analysis
468 290
534
2 906
2014 2034
Investment
Private Domestic InvestmentGovernment InvestmentInward FDI
$ 598 bn
$ 3,663 bn
9.4% CAGR
4,32
2,63
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
4,50
5,00
2010 2015 2020 2025 2030
Productivity
Scenario 3 (2010 productivity = 1)
Baseline (2010 productivity = 1)Forecast
65%
PricewaterhouseCoopers Private Ltd
If the $10 Trillion economy gets created, it will lead to an increased manufacturing footprint, and create 240 m jobs
Future of India The Winning Leap
Slide 12
~240 m more jobs
291 811 1 300
7 207
310
2 382
2014 2034
Share of GDP
Agriculture Services Manufacturing
$ 1.9 Tn
$ 10.4 Tn
Sources: Oxford Economics, PwC Analysis
86m
CAGR
11%
9%
5%
Jobs Created
Increase in GDP share
from 16.3 % in 2014 to 22.9%
in 2034
PricewaterhouseCoopers Private Ltd
Key questions
Is your organization ready to participate in the 9% growth ambition and a $10 Trillion economy by 2034?
In your sector what is the Winning Leap approach and can you take it to India to help shape sectoral winning leaps?
Are you building, can you help build corporate capabilities based on the five Winning Themes?
How are you partnering with smaller companies and governments to participate in India’s growth journey?
How are you identifying synergies in the India context to in terms of technology or innovation to enhance productivity?
How can you enable and participate in the Winning Leap dialogue?
Future of India The Winning Leap
Slide 13
Are you ready to take part in the largest democratic Nation Building process in history?
1
2
3
4
5
6
PricewaterhouseCoopers Private Ltd
PwC India’s Emerging Markets CoE is a specialised centre that partners with clients and the PwC network on India entry and expansion
Emerging Markets CoE
• Focussed on the boardroom agenda of entry, growth and capability building in India
• “Accelerator workshops” that provide first hand experience of India followed by tailored sessions to develop hypotheses for India strategy
• Facilitated by industry and functional experts
• Comprehensive proposition combining the consulting, deals, risk , tax and regulatory capabilities
• Solutions driven by the “Emerging/ Growth markets framework”
Emerging / Growth Markets Framework
30
Strategic
Integrated
Immersive
Navigate the business
environment
Enter the right market with
effective value proposition
Build effective
partnerships and teams
Develop operating model
capabilities for growth
PricewaterhouseCoopers Private Ltd
The Emerging Markets CoE supports companies at different stages of their India journey
Entry
• Large companies with limited India exposure
• Business need: Market entry and expansion
Taking advantage of India’s market potential
Growth
• MNCs with presence in India
• Business need: Build
capabilities, penetrate market profitably
Strengthen presence in India by penetrating customer segments beyond urban
centres
Origination
• Companies looking to expand beyond India
• Business need: Use
capabilities and innovations to expand into other markets
Transfer products and capabilities from India to
other global markets
Future of India The Winning Leap
Slide 15
Thank You
Suman Jagdev
Associate Director
Office: +91 22 6669 1486
Mobile: +91 98200 06396
Email: [email protected]
Shashank Tripathi
Partner
Office: +91 22 6669 1002
Mobile:+91 98196 78900
Email: [email protected]
For further information, please contact: