india fastest growing free market democracy in a global market

*

FASTEST GROWING FREE MARKET DEMOCRACY IN A GLOBAL ECONOMY INDIAPresentation by: Kamal Meattle, CEO, PBC-STIP, New Delhi, India [email protected]

*

*

THE INDIA STORY

INDIAN SUCCESS STORIES

INTERNATIONAL SUCCESS STORIES

INDIA ADVANTAGE

BUSINESS OPPORTUNITIES

BUSINESS OPPORTUNITES FOR PHILIPPINES

SME : ADDING VALUE

WINNING ATTITUDE

ACKNOWLEDGEMENT

CONTENTS

*

THE INDIA STORY

*1947 : Year of Indian IndependenceTodays India is one of the fastest growing Democratic Market Economy, well on its way to be integrated with the world economy

The famous Goldman Sachs report ( Dreaming with BRICs: The Path to 2050 ) states that, among Brazil, Russia, India and China, India will grow the fastest over the next 30 to 50 years by leveraging its demographic advantages and through continued development

Indias GDP will exceed Italys in 2016, Frances in 2019, Germanys in 2023 and Japans in 2032

INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032

ANDTHE STORY BEGAN IN 1947

*

*

Planned Industrial Development

Industry Licensing and Quotas

Dominance of Public Sector

Restriction on Private Investment

Socialism

Mixed Economy

India Pre - Liberalization

*

Liberalization of

Industrial LicensingDe-licensingDe-controlDe-regulationBroad bandingAbolition of registration

FERA Liberalization

Liberalization of foreign investmentLiberalization of Technology ImportThe New Industrial Policy for liberalization-1991

*

MRTP Liberalization

Abolition of threshold assets limitNo MRTP clearance needed for expansions, mergers

Curtailment of Public

SectorSeveral industries hitherto reserved for public sector opened up to private sector

Only eight core industries remain reserved for the public sector

Purview of Board for Industrial and Financial Reconstruction (BIFR) extended to Public sectorThe New Industrial Policy for liberalization - 1991

*Governments role changed to Regulator from Licensor

All Licenses Rationalized

Active participation of private sector

FDI being Welcomed (100%) - Automatic Route

Barriers Dismantled & Procedures Simplified

Indian Industries Actively Investing Abroad

Bureaucracy - Less Government is Good Governance

Allowing Market Forces to Govern the Efficient Allocation of Resources with Minimum State Intervention

Reducing and rationalising foreign trade barriers

India Liberalization Stage - Strategies Developed

* India - One of the fastest growing economies in the world Average GDP growth (1995 -2005) : 6.2 % per annum Average annual growth (1995 - 2005)

Agriculture & Allied:+ 2.1 % per annumIndustry:+ 6.6 % per annum Services:+ 7.8 % per annum Average Per Capita Income growth (1995 - 2005): 3.8 % per annum Inflation down to a single digit level continuously for the last ten years Foreign exchange reserves increased from US $ 2 b (March 1991)

to US $ 145 b (September 2005)

Merchandise Exports : +20 % average rate of growth in last three years

Booming Services Exports from US $ 4.6 b in 1990-91 to US $ 51.3 b in

2004-05Economic Scenario : Post Liberalisation

* Balance of Payments surplus (US $ 26 b in 2004 - 05)

External Debt Service Ratio down from 26.2 % in 1995 to 6.2 % in 2005

Foreign Direct Investment (FDI) : Average +US $ 5 b pa in the last

five years.

Foreign Portfolio Investment : US $ 11.4 b in 2003-04 and

US $ 8.9 b in 2004-05

Reforms continuing and have unleashed dynamic forces

putting the economy on a trajectory of unparalleled economic growth in the future

The Indian Government is working in close co-operation with

industry and trade to mitigate the remaining problems and constraints

Broad consensus across the political spectrum on the need for

and direction of the reforms. Some issues still need to be resolvedEconomic Scenario : Post Liberalization

*Share Of Services Sector In GDP On The Rise (%)

Chart1

32.227.240.6

2828.143.9

23.827.248.9

20.527.152.4

Agriculture

Industry

Services

Sheet1

1998-991999-002001-022002-032003-04*

Foodgrain stocks (million tons) (end of March)21.8228.9144.9832.822.1

1973-741977-7818831987-881993-941999-00

Poverty ratio (%)54.951.344.538.936.026.1

1970-711980-811990-912000-01

Female literacy (%)22.029.839.354.2

Enrolment ratio for girls in elementary school44.452.170.872.4

1990-911995-962000-012004-05

Agriculture32.228.023.820.5

Industry27.228.127.227.1

Services40.643.948.952.4

Sheet1

0

0

0

0

0

Foodgrain stocks (million tons) (end of March)

Sheet2

0

0

0

0

0

0

Poverty ratio (%)

Sheet3

Female literacy (%)

Enrolment ratio for girls in elementary school

Agriculture

Industry

Services

*India the worlds most irrigated land mass worlds 2nd largest exporter of rice & 5th largest exporter of wheat

Food production: Indias Ranking in the World

1st Tea, Milk 2nd Rice, wheat, sugarAgriculture

*

Rate of growth

2003-047 % 2004-059.2 % Diversified base of world class capabilities State-of-the-art technologies TQM,TPM, Six Sigma & Lean Manufacturing - part of

everyday practice Diversified industrial base with supporting ancillary industries Overseas acquisitions worth US$ 500 m

Manufacturing

* Consistent growth

2003-049.1 % 2004-058.9 % Sectors Driving Growth

- ITES - Healthcare- Financial Services - EducationSource:Economic survey, 2004 - 05Services

*

Average GDP Growth (1990-2001)9.46.25.54.94.73.32.92.92.01.52.53.54.55.56.57.58.59.5ChinaS.KoreaIndiaThailandIndonesiaMexicoPhilippinesUSABrazilGrowth (%)Source: WDI, World Bank, 2003Average GDP growth - India & the World

*

Rising share of Indias external trade in GDPTarget :To double share of exports from 0.7 % to 1.5 % of world trade

Chart28

18.1

23.1

25.5

26.9

30.3

28.9

31.6

32

Trade

in per cent

Share of external trade in GDP

Sheet1

1997-981998-991999-002000-012001-022002-032003-04 E

Size (US$ Billion)5.026.018.3612.4113.7115.8319.62

Share in India's GDP1.221.451.872.712.873.093.82

1996-971997-981998-991999-002000-012001-022002-032003-04 E

Size (US$ Million)110017592600396262177647954512200

Share in India's Exports3.24.97.610.613.8171821.3

1998-991999-20002000-012001-022002-03

Exports (Rs million)3070137089431765035167791

199819992000200120022003

Cumulative FDI inflow (Rs Million)400844221145097848068591888932

1994-951995-961996-971997-981998-991999-20002000-012001-02

Export of Telecom Services5901108145822322376323028824149

1996-97199-981998-991999-20002000-012001-022002-032003-04

Fixed line telephones (incl. WLL + Pvt basic)14.517.821.6326.7932.9739.1341.542.6

Cellular Mobile phones (PSUs + pvt)0.30.91.21.93.66.41333.6

Additions in the year to Fixed line telephone3.33.85.26.26.22.41.1

Additions in the year to Cellular Mobile phones0.50.30.71.72.96.620.6

1998-99

390355

1993-941994-951995-961996-971997-9813872761999-002000-012001-022002-03

Car Production (in nos)207658264468348146407539401002574369517907564052606088

Motorcycles Production (in nos)46195564752180909798870911259581794093218343029063233914626

1998-991999-002000-012001-022002-03

Cars2546823272229905008870547

2/3 Wheelers121140101625127401119645223011

1998-991999-002000-012001-022002-03

Growth of corporate sales (%)8.614.411.22.410.8

Growth of gross corporate profits (%)0.816.69.9-1.116.8

Ratio of gross profits to sales (%)11.41211.610.911.3

2003-04

6064

1998-991999-002000-012001-022002-03

BSE-Sensex (end March)36895262380835813156

1990-911995-962001-022002-032003-04

Foreign exchange reserves ($ billion)2.217.054.175.4119.3

Average for 1991-20032003-0410th Plan Projection (2002-07)

Gross Domestic Product5.458.18

1991Mar-92Mar-02

15011030

Mar-95Mar-97Mar-00Mar-03w.e.f March 2004

Customs Duties504238.52520

2000200120022003

USA3.80.32.23.1

Japan2.4-0.3-0.32.7

Russia954.77.3

Brazil4.41.51.9-0.2

China87.389.1

South Korea9.3373.1

India5.44.14.77.4

28

30

Malaysia35

China35

India27

United States

Korea

Trade

1991-9218.1

1994-9523.1

1997-9825.5

1999-200026.9

2000-0130.3

2001-0228.9

2002-0331.6

2003-0432

2000-012001-022002-03

Growth of corporate sales (%)11.22.410.8

Growth of gross corporate profits (%)9.9-1.116.8

Ratio of gross profits to sales (%)11.610.911.3

May 1997April 1999

27141429

April 2000April 2001

Items with Quantitative Restrictions7150

1991-921994-952002-03

3.523.024.66

3.252.761998-992000-012001-023.732003-04 (Apr - Sept)

Drugs, Pharma & fine chemicals2.782.914.484.294.412.334.8

Machinery & instruments1.481.563.483.63.742.34.19

Transport Equipment2.292.22.162.52

Electronic Goods15.3317.091.512.362.517.532.22

gems & jewellery17.8516.5817.0413.35

1991-921994-952003-04 (Provisional)

14.3317.8236.19

3688731998-992000-012002-035221

Production (in million tonnes)23.8229.733.67

Exports (in '000 tonnes)177028054506

454566214

458257547

P556547789

E69898465

1990-911994-951997-982000-012001-022002-032003-04

Total Foreign Investment1035,1385,3856,7898,1525,63915,872

Portfolio investment

USAJapanIndia

45368300061340

KoreaThailandBrazil

Manufacturing wages per employee14053334410486

1991-92

17.88%

3.50%

Agriculture & Allied Products12%

Drugs & Pharmaceuticals3.25%

Engineering Goods1.48%

Machinery & Instruments8.78%

Electronic Goods

Chemicals & Related Products

2002=03

12.27

4.7

Agriculture & Allied Products16

Drugs & Pharmaceuticals3.5

Engineering Goods2.31

Machinery & Instruments2.2

Transport Equipment9.53

Electronic Goods

Chemicals & Related Products

1951 Census1961 Census2001 Census

18.328.365.3

1971 Census1981 Census1991 Census

Literacy Rates in India34.443.552.2

1973-741977-78Projection for 2007

54.951.319.1

1987-881993-941999-2000

Incidence of Poverty in India38.93626.1

1997-981998-992002-03

9.413.225

1999-20002000-012001-02

All Services15.718.920.3

Sheet1

5.021.22

6.011.45

8.361.87

12.412.71

13.712.87

15.833.09

19.623.82

&A

Page &P

Size (US$ Billion)

Share in India's GDP

Years

Indian IT Market

Sheet2

11003.2

17594.9

26007.6

396210.6

621713.8

764717

954518

1220021.3

&A

Page &P

Size (US$ Million)

Share in India's Exports

Years

Software and Services' Exports

Sheet3

40084

42211

45097

84806

85918

88932

Cumulative FDI inflow (Rs Million)

Years

Rs Million

Cumulative FDI inflow

590

1108

1458

2232

2376

3230

2882

4149

Export of Telecom Services

Rs Crore

207658461955

264468647521

348146809097

407539988709

4010021125958

13872761387276

5743691794093

5179072183430

5640522906323

6060883914626

&A

Page &P

Car Production (in nos)

Motorcycles Production (in nos)

Years

25468121140

23272101625

22990127401

50088119645

70547223011

Cars

2/3 Wheelers

Year

In Nos.

Vehicle Exports

30701

37089

43176

50351

67791

Exports (Rs million)

Rs million

Exports of pharmaceutical products

8.60.811.4

14.416.612

11.29.911.6

2.4-1.110.9

10.816.811.3

Growth of corporate sales (%)

Growth of gross corporate profits (%)

Ratio of gross profits to sales (%)

3689

5262

3808

3581

3156

BSE-Sensex (end March)

2.2

17

54.1

75.4

119.3

Foreign exchange reserves ($ billion)

8.1

8

Stepped up to a record 8.1%

Gross Domestic Product

in per cent

GDP growth rate

50

42

38.5

25

20

Customs Duties

in per cent

Reduction in Customs Duties over time

3.82.494.489.35.4

0.3-0.351.57.334.1

2.2-0.34.71.9874.7

3.12.77.3-0.29.13.17.4

India

USA

Japan

Russia

Brazil

China

South Korea

India

in per cent

Real GDP Growth

28

30

35

35

27

in per cent

Corporate Income Tax Rate

23.11991-92

25.51994-95

26.91997-98

30.31999-2000

28.92000-01

31.62001-02

31.72002-03

Trade

in per cent


715

0

QRs removed altogether

Items with Quantitative Restrictions

Number of Items with Quantitative Restrictions

2.781.483.2515.33

2.911.562.7617.09

4.483.482.291.51

4.293.62.22.36

4.413.742.162.5

2.332.33.7317.53

4.84.192.522.22

Drugs, Pharma & fine chemicals

Machinery & instruments

Transport Equipment

Electronic Goods

in per cent

Changing Commodity composition of India's exports

368368

873873

23.821770

29.72805

33.674506

52215221

&A

Page &P

Production (in million tonnes)

Exports (in '000 tonnes)

Production and Export of Finished Carbon Steel

11.29.911.6

2.4-1.110.9

10.816.811.3




in per cent

103

5138

5385

6789

8152

5639

15872

Total Foreign Investment

US $ million

14053

3344

10486

India - one of the lowest cost producers

Manufacturing wages per employee

US Dollars

Manufacturing wages per employee (Figures for 1999)

14.50.31996-971996-97

17.80.93.30.5

21.631.23.80.3

26.791.95.20.7

32.973.66.21.7

39.136.46.22.9

41.5132.46.6

42.633.61.120.6

&A

Page &P

Fixed line telephones (incl. WLL + Pvt basic)

Cellular Mobile phones (PSUs + pvt)

Additions in the year to Fixed line telephone

Additions in the year to Cellular Mobile phones

Growth in Telecommunications Network

12.27

4.7

16

3.5

2.2

9.53

2002=03

Commodity composition of India's exports (2002-03)

0.1788

0.035

0.12

0.0325

0.0148

0.0878

1991-92

Commodity Composition of India's Exports (1991-92)

5.45

8.1

8

Gross Domestic Product

in per cent

GDP at constant prices

34.4

43.5

52.2

Literacy Rates in India

in per cent

Literacy Rates in India (as a % of total population)

38.9

36

26.1

Incidence of Poverty in India

in per cent

Incidence of Poverty in India (as % of total population)

15.7

18.9

20.3

All Services

US $ Billion

Trends in India's Services Exports (US $ Billion)

0

0

0

0

0

0

0

Trade

in per cent


* Land Area:3.29 m sq. km.

Population: 1.09 b

GDP:US $ 630 b

Real GDP Growth:6.9 %

Gross Domestic Savings: 28.1 % (2003 - 04)

Gross Domestic Investment: 26.3% (2003 - 04)

Per Capita Income:US $ 580

Inflation Rate:6.4 %

Macro Economic Indicators (2004 - 05)

* Exchange Rate:US $ 1 = 43.75

Merchandise Exports:US $ 80b

Merchandise Imports:US $ 106b

Services Exports:US $ 51b

Foreign Direct Investment:US $ 5.5b

Foreign Portfolio Investment: US $ 8.9b

Direct Investment Abroad:US $ 1.5b

Macro Economic Indicators (2004-05)

*

INDIAN SUCCESS STORIES

* Number of foreign firms acquired 120

by Indian companies during 2001 - 03

Total worthUS $ 1.6 b

India - 8th largest investor in the UK

No of investments 440

No of Indian companies with 1,441

operations in Singapore

Indian MNCs - On a global buying spree

*

Hero Honda - Largest producer of motorbikes in the world Moser Baer - Worlds 3rd largest producer of optical media Hero Cycles - Worlds largest bicycle producer Bharat Forge - Amongst the worlds top 3 forgings manufacturers UB Group - Worlds 2nd largest producer of alcoholic beverages Paharpur Cooling Towers - Worlds 2nd largest manufacturer of

Cooling TowersIndia Leading The World

*India Leading The World

Apollo Hospitals - Single largest hospital chain in South Asia TISCO - worlds cheapest producer of steel Reliance Industries - Worlds largest producer of PTA, a chemical

used in textile production Mahindra & Mahindra - Amongst top 3 tractor manufacturers in the

world Telco - Amongst top 3 truck manufacturers in the world Welspun - Worlds largest producer of terry-towels Gujarat Ambuja - Amongst top 5 cement producers in the world

*Some Indian Examples Benchmarked with the Best In The World

*Success Story of RELIANCE

*Success Story of WIPROWipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945

An SME and primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap

It was in the early eighties that Wipro made its foray into the Infotech arena

With this began the Wipro Infotech story

Today, Wipro stands at the firmament, as a trusted and experienced provider of a comprehensive range of IT services, solutions and products, worldwide

*Success Story of BHARTI

*Success Story of DR.REDDYS

*Success Story of BIOCON

*Success Story of Paharpur Cooling Towers

*Success Story of StandipackA successfulSSI unit set up in 1980, in NCR, Delhi

It is the largest lube oil flexible packaging company in India producing

packaging materials, machinery and systems and doing contract packaging

Produces /contract packages over 300 m packages a year, for the oil

majors in Delhi, Kolkata, Chennai and Mumbai

Patents in most countries of the World

*Success Story of Paharpur Business Centre & Software Technology Incubator Park Began operations in 1990 in New Delhi, with an equity capital of Less than

US $ 15,000

Current net worth of US $ 10 m

Provides a suite of 28 services, employing 450 persons

Has Fortune 500 companies, MNC's and corporate, as clients

Has five international certifications, ISO 9001, ISO 14001, SA 8000, OHSAS

18001 and HACCP

Commitment to UN Global Compact

* Publishes its annual Sustainability Report following the GRI system

Reports its triple bottom line - relating to profit, environment and

sustainability

Now providing technical support to setting up of a 1.7 m ft2 Software Park

near Delhi that has been given the SEZ status by the GOI The Haryana Technology Park

Company showcased by CII at the World Summit on Sustainable

Development in Johannesburg in 2002 for its sustainability initiatives

Its USP is the Clean Indoor Air in its Center in Delhi - Certified Mountain

Quality Air using biotechnology developed by NASA, USA to clean airSuccess Story of Paharpur Business Centre & Software Technology Incubator Park

*INTERNATIONAL SUCCESS STORIES

*India attracts second highest privateequity investment in AsiaTotal equity flow to India between 1999 and 2004 doubled from US $ 5.12 b to US $ 11.50 bPreferred Destination For Foreign Equity InvestorsSource: NASSCOM

*MNCs leveraging the India Advantage

8.bin

10.bin

11.wmf

12.bin

13.bin

*

*FDI INFLOWS TO INDIA

Chart4

4029

6125

5036

4674

5526

FDI Inflows ($ million)

Sheet1

FDI Outflow ($ million)

2000-01827

2001-021391

2002-031819

2003-041254

2004-052489

Merchandise ExportsMerchandise ImportsService ExportsService ImportsTotal Merchandise and Service Trade

1991-926.97.91.91.418.1

1996-978.912.71.91.825.2

2001-029.311.83.62.927.6

2004-0511.717.27.45.341.5


2000-014029

2001-026125

2002-035036

2003-044674

2004-055526

Sheet1

0

0

0

0

0

FDI Outflow ($ million)

Sheet2

0000

0000

0000

0000

0000

1991-92

1996-97

2001-02

2004-05

Sheet3

0

0

0

0

0


MBD000BB37B.xls

Chart1

827

1489

1122

1749

Indian investments abroad ($ million)

Sheet1

0.066.133.657.619.227.127.1

-4.4-13.319.43.9-4.821.627.8

1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-022002-032003-4

A.Current accountA.Current account

Exports1847718266188692268326855323113413335680342983754244894449155251262952Exports

Imports2791521064243162673935904436704894851187475445538359264576186542279658Imports

1.Merchandise-9438-2798-5447-4056-9049-11359-14815-15507-13246-17841-14370-12703-12910-167061.Merchandise

Exports7464950293341131915554176762140523244257703032434786366904337351939Exports

Imports77067882741384219874122161120913237165621716924006232052632626514Imports

11.Invisibles-2421620192128985680546010196100079208131431078013485170472542511.Invisibles

Credit45515022473052646135735774749429131861570918870206652496327616Credit

Debit35713815360147295533754367488110110211164516392160881819816932Debit

(a) Services98012071129535602-18672613192165406424784577676510684(a) Services

Credit14561977209822222365271328782914299330363168291030293945Credit

Debit39246538549781811678581437174321392874228234673511Debit

I) travel106415121713172515471546202014771250897294628-438434I) travel

Credit98393998214331696201119531836192517071913196925243200Credit

Debit10931289148517651863216923942522268024103170238225472331Debit

ii)Transportation-110-350-503-332-167-158-441-686-755-703-1257-413-23869ii)Transportation

Credit111108158124152179217240224231257267368419Credit

Debit88126146195181143153183112122122254314363Debit

iii) Insurance23-1812-71-29366457112109135135456iii) Insurance

Credit15177530101372276597582657469307243Credit

Debit173119100153165218178160325270341272228212Debit

iv) Gnie-158-102-25-123-155-205-1061162723123161977931iv) Gnie

Credit1986198114171455191224112354416374471015312875150501873519809Credit

Debit18251816148521992506384631653808616167049885108981164210515Debit

v) Miscellaneous161165-503-664-594-1405-811355128634492990415270939294v) Miscellaneous

63417556960012200Credit

591672737550Debit

57506884886311650Software

Credit2545425942885660853388901285812254106491267213211125771558419794Credit

Debits151613272439814562347768367350Debits

(b)Transfers2530424342155633850988511277712209105871263813134125091521719444(b)Transfers

I) Official461460363368416345410379307382336384410559I) Official(net)

12873121921517419235Credit

7567367350Debit

ii) Private2069378338525265809385061236711830102801225612798121251480718885ii) Private (net)

Credit368221376395886142910731561193519312705344828264529Credit

Debit41204051379936654317463443805082547954907537704977619232Debit00

Income-3752-3830-3423-3270-3431-3205-3307-3521-3544-3559-4832-3601-4935-4703 Income

Credit10731561189317832598336227324399Credit

Debit43805020546254787527703777429197Debit

I) Investment income-3307-3459-3569-3695-4929-3675-5010-4798I) Investment income

Credit00421481078694139Credit

Debit062171210121935Debit

ii) Compensation to employees0-622513697747595ii) Compensation to employees

798608160595885114891Credit

832708082391748106172Debit

Current account balance-9680-1178-3526-11583369-5899-4619-5500-4038-4698-359078241378719Current account balance

-12.4-55.3115.2-22.452.2-24.00.3

-44.8-103.7-4547.1-14.4-24.7-51.61102.9

1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-022002-032003-04

B.Capital accountB.Capital account

Credit1131515894611576356327824926658921224015981144501232532814Credit

Debit10183237695610281861391335807123101197758777018322Debit

1.Foreign investment1031335574235480746045963535323125117586266924555144921.Foreign investment (net)

Credit1071473456511351216228633596251821704121623547904888Credit

Debit101830658292234383849149411791751Debit

(i) Direct971293155861343213328413562248021673272474136113137Foreign direct investments (net)

Credit113151589461157535618781691695743121214051613647174677Credit

Debit1018323768318241663377933316930225572Debit

In India10313355742354922479461535390241251914029613146604675FDI in India (net)

2400409527002387Equity (net)

1350164614981800Renivested earnings (net)

279390462488Other capital (net)

709973211Credit2000-012001-022002-032003-04

827148911221749DebitIndian investments abroad ($ million)827148911221749

-757-1390-1049-1538FDI abroad

Credit642443960440234564953557332259951118608215753527926Credit

Debit002311823795164137453293692792706264659116571Debit

(ii)Porfolio6424236493579266133121828-6830242590195194411355(ii)Porfolio investment

118608215753527926Credit

91006195655616549Debit

2760202097911377In India (net)

Credit000010148971491190000Credit

Debit0000125204198134249113170693522Debit

Abroad0000-115-190-190-37-100-74-170-69-35-22Abroad

Credit943194168671997110930113321772017301147711306022797115121379520857Credit

Debit3898543782608159789591311292512502103531145918545128621762023811Debit

2. Loans5533397941118123035220147954799441816014252-1350-3825-29542. Loans

Credit33974366330234763193293330562885272630742942335227733374Credit

Debit11931335144615801675206619552000192721832532223552336035Debit

(a) External Assistance2204303118561896151886711018857998914101117-2460-2651(a) External Assistance

By India-6-6-3-5-8-16-8-22-21-10-17-87-32-10By India (net)

to India2210303718591901152688311099078209014271204-2428-2651to India (net)

Credit42823152117930154249426275797382723132079052269628336253Credit

Debit20281689154523303125297747233372286428745315427251778106Debit

(b) Commercial borrowings(b) Commercial borrowings

By India67-87894108115205393By India (net)

to India22481456-358607103012752848399943623133732-1579-2353-1856to India (net)

Credit1752189841903480348841377085703448146779108035464818911230Credit

Debit67724135269424930954088624771305562640210698635572109670Debit

Short term1075-515-1079-76939349838-96-748377105-8919791560 Short term

Credit10105109581199811500702064538018891088971065912772175261796923210Credit

Debit942310394817292377354569157899803819985321196111934955717013Debit

3.Banking capital68256438262263-3347622229-89369821278115592841261973.Banking capital (net)

(a) Commercial banks90413629301658-6269372225-1260-4482304885538581226671(a) Commercial banks (net)

Assets-3632281073-844-962-384-870-2195-1397790-146822624863-330Assets (net)

Liabilities-269-382-1441297164218-255-190-11-26Liabilities (net)

8989114351008714309Credit

66728681711110681Debit

Non resident deposits15362902001120517211033350112596015402317275429763628Non resident deposits (net)

(b) Others-222428896605292-17543671146-177-74207290-474(b) Others (net)

4.Rupee debt service-1193-1240-878-1053-983-952-727-767-802-711-617-519-474-3764.Rupee debt service (net)

5.Other capital1931474-4016381977-2537-254135218092310-290158344547635.Other capital (net)

55542471085014383030Credit

45524365353803060908Debit

1-5.Total capital acount705639103876889585024078120069844843510444100181057312113221221-5.Total capital acount

C. Errors & omissions132-133-940800654600-594167-175656-572402730580C. Errors & omissions

D. Overall balance-24922599-59085375787-122167934511422264025856117571698031421D. Overall balance

E. Monetary movements2492-2599590-8537-57871221-6793-4511-4222-6402-5856-11757-16980-31421E. Monetary movements

IMF12147861288187-1143-1715-975-618-393-260-26000IMF

Foreign exchange reserves1278-3385-698-8724-46442936-5818-3893-3829-61425830117571698031421Foreign exchange reserves

(- = Increase)(- = Increase)

1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-022002-032003-04Total

Software18133012402363417556960012200Software44545

2069378338525265809385061236711830102801225612798121251480718885NRI remittance136916

FDI10313355742354922479461535390241251914029613146604675FDI53385

FII6424236493579266133121828-6830242590195194411355FII35077

15362902001120517211033350112596015402317275429763628NRI deposits24957

EA2204303118561896151886711018857998914101117-2460-2651EA11464

CB22541463-366685112412852856401043673333737-1576-2344-1853CB15975

1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-02

10987654321

A.Current accountA.Current account

Exports-1.13.320.218.420.35.64.5-3.99.519.60.0Exports9.8

Imports-24.515.410.034.321.612.14.6-7.116.57.0-2.8Imports11.2

1.Merchandise1.Merchandise

Exports27.3-1.821.337.413.621.18.610.917.714.75.5Exports

Imports2.3-6.013.617.323.7-8.218.125.13.739.8-3.3Imports

11.Invisibles11.Invisibles

Credit10.3-5.811.316.519.91.626.239.819.120.19.5Credit15.8

Debit6.8-5.631.317.036.3-10.520.235.95.740.8-1.9Debit16.9

(a) Services(a) Services

Credit35.86.15.96.414.76.11.32.71.44.3-8.1Credit

Debit18.6-17.229.164.642.7-26.567.521.322.734.4-20.6Debit

I) travelI) travel

Credit-4.54.645.918.418.6-2.9-6.04.8-11.312.12.9Credit

Debit17.915.218.95.616.410.45.36.3-10.131.5-24.9Debit

ii)Transportationii)Transportation

Credit-2.746.3-21.522.617.821.210.6-6.73.111.33.9Credit

Debit43.215.933.6-7.2-21.07.019.6-38.88.90.0108.2Debit

iii) Insuranceiii) Insurance

Credit13.3341.2-60.0-66.730.0453.8283.3116.3-2.512.9-28.6Credit

Debit-31.2-16.053.07.832.1-18.3-10.1103.1-16.926.3-20.2Debit

iv) Gnieiv) Gnie

Credit-0.3-28.52.731.426.1-2.476.878.936.326.816.9Credit

Debit-0.5-18.248.114.053.5-17.720.361.88.847.410.2Debit

v) Miscellaneous2.5-404.832.0-10.5136.5-42.3-143.8262.3168.2-13.338.9v) Miscellaneous

Credit67.30.732.050.84.244.6-4.7-13.119.04.3-4.8Credit

Debit6.7-18.8107.7-11.162.5107.7-44.437.8-45.2126.5-11.7Debit

(b)Transfers67.7-0.733.651.14.044.4-4.4-13.319.43.9-4.8(b)Transfers

I) Official-0.2-21.11.413.0-17.118.8-7.6-19.024.4-12.014.3I) Official

ii) Private82.81.836.753.75.145.4-4.3-13.119.24.4-5.3ii) Private

Credit-39.970.15.1124.361.3-24.945.524.0-0.240.127.5Credit

Debit-1.7-6.2-3.517.87.3-5.516.07.80.237.3-6.5Debit

Income Income

Credit0.00.00.00.00.00.045.521.3-5.845.729.4Credit

Debit0.00.00.00.00.00.014.68.80.337.4-6.5Debit

I) Investment incomeI) Investment income

Credit0.00.00.00.00.00.00.00.0252.4-27.7-19.6Credit

Debit0.00.00.00.00.00.00.0-72.6-29.4-16.720.0Debit

ii) Compensation to employees0.00.00.00.00.00.00.0-140.3444.0-28.7-23.7ii) Compensation to employees

Current account balance-87.8199.3-67.2-390.9-275.1-21.719.1-26.616.3-23.6-121.8Current account balance

1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-20002000-012001-02

B.Capital accountB.Capital account

Credit33.6290.1682.925.0-2.338.918.4-36.4107.730.6-9.6Credit

Debit80.077.81075.0154.37.581.0110.3-8.599.042.1-23.3Debit

1.Foreign investment29.1318.8660.313.5-4.229.5-10.2-56.8121.314.614.21.Foreign investment

Credit33.6290.1682.924.8-2.339.117.3-37.4111.1-66.651.5Credit

Debit80.077.81075.0121.0-0.8101.8127.2-11.9108.0-99.7-77.3Debit

In India29.1318.8660.316.2-2.628.3-12.4-55.3115.2-22.452.2In India

Credit37.4134.788.7107.560.032.425.6-30.0-13.889.951.3Credit

Debit80.066.7116.7-87.7262.5-24.154.511.8-92.128200.076.0Debit

(i) Direct33.0144.286.0129.258.833.225.4-30.4-12.651.044.9(i) Direct

Credit-33.36000.01523.011.2-21.543.312.5-42.1208.619.2-30.7Credit

Debit0.00.015450.0164.6-3.4106.4128.2-12.1110.433.8-32.4Debit

(ii)Porfolio-33.35950.01407.9-1.9-25.624.5-44.8-103.7-4547.1-14.4-24.7(ii)Porfolio

Credit0.00.00.00.040.0-42.91112.553.6-20.1-100.00.0Credit

Debit0.00.00.00.063.2-2.9-32.385.8-54.650.4-59.4Debit

Abroad0.00.00.00.065.20.0-80.5170.3-26.0129.7-59.4Abroad

Credit-0.2-7.915.09.63.756.4-2.4-14.6-11.674.6-49.5Credit

Debit39.551.9-1.2-3.215.741.6-3.3-17.210.761.8-30.6Debit

2. Loans-28.1-89.7340.967.5-27.5117.90.1-7.9-63.8165.6-131.72. Loans

Credit28.5-24.45.3-8.1-8.14.2-5.6-5.512.8-4.313.9Credit

Debit11.98.39.36.023.3-5.42.3-3.713.316.0-11.7Debit

(a) External Assistance37.5-38.82.2-19.9-42.927.0-19.6-9.711.5-54.0172.4(a) External Assistance

By India0.0-50.066.760.0100.0-50.0175.0-4.5-52.470.0411.8By India

to India37.4-38.82.3-19.7-42.125.6-18.2-9.69.9-52.6182.0to India

Credit-26.4-62.6155.740.90.377.8-2.6-2.0-55.6182.3-70.2Credit

Debit-16.7-8.550.834.1-4.758.6-28.6-15.10.384.9-19.6Debit

(b) Commercial borrowings-35.1-125.0-287.264.114.3122.340.48.9-92.41022.2-142.2(b) Commercial borrowings

By India16.7-214.3-1075.020.5-89.4-20.037.5-54.5300.0-75.0-40.0By India

to India-35.2-124.6-269.669.723.8123.440.49.1-92.81092.3-142.3to India

Credit8.3120.8-16.90.218.671.3-0.7-31.640.859.4-49.4Credit

Debit256.4118.4-19.4-27.232.152.814.1-22.015.167.1-40.6Debit

Short term-147.9109.5-28.7-151.1-87.51610.2-111.5679.2-150.4-72.1-948.6 Short term

Credit8.49.5-4.2-39.0-8.124.311.1-0.119.819.837.2Credit

Debit10.3-21.413.0-20.4-22.61.769.3-16.44.140.2-0.2Debit

3.Banking capital-17.3578.4-40.9-114.8-328.1192.5-140.1-178.2204.7-61.9589.53.Banking capital

(a) Commercial banks-85.02054.4-43.4-137.8-249.7137.5-156.6-64.4-614.3-61.6508.5(a) Commercial banks

Assets-162.8370.6-178.714.0-60.1126.6152.3-36.4-156.5-285.8-254.1Assets

Liabilities42.0-62.3-1000.7-87.432.9-217.0-25.5-94.2136.4-100.00.0Liabilities

Non resident deposits-81.1590.0-39.8-85.7541.3203.7-66.4-14.760.450.518.9Non resident deposits

(b) Others-292.8109.3-32.5-51.7-159.9-102.39075.0212.3-115.4-58.2-379.7(b) Others

4.Rupee debt service3.9-29.219.9-6.6-3.2-23.65.54.6-11.3-13.2-15.94.Rupee debt service

5.Other capital-75.5-108.4-4195.020.7-228.3-90.0-632.333.827.7-112.6-154.55.Other capital

1-5.Total capital acount-44.6-0.9129.5-4.4-52.0194.4-18.0-14.323.8-4.15.51-5.Total capital acount

C. Errors & omissions-200.8606.8-185.1-18.3-8.3-199.0-128.1-204.8-474.9-187.2-170.3C. Errors & omissions

D. Overall balance-204.3-122.7-1546.9-32.2-121.1-656.3-33.6-6.451.6-8.5100.8D. Overall balance

E. Monetary movements-204.3-122.7-1546.9-32.2-121.1-656.3-33.6-6.451.6-8.5100.8E. Monetary movements

IMF-35.363.9-85.5-711.250.0-43.1-36.6-36.4-33.8-90.0-100.0IMF

Foreign exchange reserves-364.9-79.41149.9-46.8-163.2-298.2-33.1-1.660.4-194.9101.7Foreign exchange reserves

ERGoodsInvsiblesServicesTravelsTransportatioInsuranceGNIEMiscOfficialtransfersPrivate transfersTotal transfers

ExportsImportsBOTExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalance

1980-817.91657612544-596858901580431023281196113211669010763623557483414884741664670-6439143822691222572708132695

1981-828.97776613887-6121581220083804246615149521064144920398483-85554015131597281878830296329322371722202533202513

1982-839.67913714913-5776610226223480278018159651131185946407699-2925869-1110764431077798279276726925411425272817212796

1983-8410.341016916039-58706893328436093383226011231075242833440715-27511475391391182116151110505263725627851127743048183030

1984-8511.891195918680-6721824343943849409827931305898409489644918-274898451058421236212981064444444031161531013560193541

1985-8612.241157821164-95867875424536304051259914521189412777604816-2127983-4116124-8206311648993201330728351528203155283127

1986-8712.781331522669-935482744751352341142842127216073711236688748-6083102-19133136-316031485118530552529911529763521203501

1987-8812.971639625693-929792786275300346333926707185648813688821128-246106107-1121182-6116682021-353536353335333434994069374032

1988-8914.482064734202-1355510926895119755726466710592054586146813001487-1871369541118212-9421182287-169733972438652438414598334565

1980-9016.652822940642-12413124841145910257071586612052386670171615111857-3461981405852211-15929242988-64902589738242637984726314695

ERGoodsInvsiblesServicesTravelsTransportatioInsuranceGNIEMiscOfficialtransfersPrivate transfersTotal transfersInvestment income

ExportsImportsBOTExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalance

1980-817.918313.515858.4-7544.97446.31997.55448.82943.11512.01431.11474.1113.81360.3457.6448.88.860.743.017.7111.359.451.8839.4847.0-7.6555.01.3553.72868.515.22853.43423.516.43407.11080.9469611.9

1981-828.978657.715481.6-6823.96479.42238.64240.82749.21687.81061.31186.2160.51025.6443.7538.5-94.861.344.616.7146.065.880.3911.9878.533.4330.03.3326.62493.919.02474.92823.922.32801.6742.5529.5213

1982-839.679448.815421.9-5973.16310.22711.53598.82874.91876.9997.91169.6191.3978.3420.9722.9-302.060.071.4-11.4110.766.244.51113.8825.2288.5285.47.2278.22627.714.52613.22913.121.72891.4522.2814.9-292.7

1983-8410.349834.615511.6-5677.06666.33176.03490.33271.82185.71086.11039.7234.0805.6425.5691.5-266.0110.372.537.7134.4114.120.31561.91073.5488.4254.46.8247.62693.410.62682.82947.817.42930.4447.8972.9-525.1

1984-8511.8910058.015710.7-5652.66932.73695.53237.23446.62349.01097.6755.3344.0411.3541.6772.1-230.474.970.64.288.370.617.71986.51091.7894.9373.43.4370.12620.712.62608.12994.116.02978.1492.91330.5-837.6

1985-8612.249459.217290.8-7831.76433.83468.12965.73309.62123.41186.3971.4336.6634.8493.5666.7-173.264.567.8-3.394.8101.3-6.51685.5951.0734.5261.410.6250.82316.212.32303.92577.622.92554.7546.61322.7-776.1

1986-8712.7810418.617737.9-7319.26474.23717.52756.73219.12223.8995.31257.4290.3967.1538.3585.3-46.964.979.8-14.9104.1106.4-2.31254.31162.092.3414.73.9410.82340.411.72328.62755.115.62739.4501.61478.9-977.3

1987-8812.9712641.519809.6-7168.17153.44838.12315.33572.13027.0545.11431.0376.31054.7680.0869.7-189.781.782.5-0.893.3140.3-47.01286.01558.2-272.2413.32.3410.92724.026.22697.83137.228.53108.7446.41782.6-1336.2

1988-8914.4814259.023620.2-9361.27545.66181.61364.03954.43223.1731.41418.5404.71013.8897.81026.9-129.193.965.628.381.5146.4-64.91462.71579.4-116.7506.26.2500.02669.216.62652.63175.422.83152.6416.42935.8-2519.4

1980-9016.6516954.424409.6-7455.37497.96882.3615.64246.83523.1723.71433.0402.41030.6907.51115.3-207.8118.984.134.831.2126.7-95.51756.21794.6-38.4541.73.0538.72296.715.62281.12838.418.62819.8413.23340.5-2927.3

11004.518085.2-7080.76894.03890.73003.33358.82373.2985.61213.6285.4928.2580.7743.8-163.179.168.210.999.699.7-0.21385.81176.1209.7393.64.8388.72565.115.42549.62958.620.22938.4561.11497.7-936.7

GoodsInvsiblesServicesTravelsTransportatioInsuranceGNIEMiscOfficialtransfersPrivate transfersTotal transfers

ExportsImportsBOTExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalanceExportsImportsBalance

1981-824.1-2.4-9.6-13.012.1-22.2-6.611.6-25.8-19.541.1-24.6-3.020.0-1170.81.03.7-5.531.310.754.98.63.7-540.9-40.5164.5-41.0-13.124.9-13.3-17.535.7-17.8

1982-839.1-0.4-12.5-2.621.1-15.14.611.2-6.0-1.419.2-4.6-5.134.2218.7-2.260.0-168.0-24.20.6-44.622.1-6.1762.7-13.5116.4-14.85.4-23.65.63.2-2.63.2

1983-844.10.6-5.05.617.1-3.013.816.48.8-11.122.3-17.71.1-4.3-11.983.81.7-431.621.572.4-54.340.230.169.3-10.9-6.5-11.02.5-26.52.71.2-19.81.3

1984-852.31.3-0.44.016.4-7.35.37.51.1-27.447.0-48.927.311.7-13.4-32.1-2.6-88.9-34.3-38.1-13.027.21.783.246.8-50.349.5-2.718.6-2.81.6-8.21.6

1985-86-6.010.138.5-7.2-6.2-8.4-4.0-9.68.128.6-2.154.4-8.9-13.7-24.8-13.8-4.0-177.77.343.4-137.0-15.2-12.9-17.9-30.0215.7-32.2-11.6-2.9-11.7-13.943.2-14.2

1986-8710.12.6-6.50.67.2-7.0-2.74.7-16.129.4-13.852.49.1-12.2-72.90.617.7354.99.85.0-64.1-25.622.2-87.458.6-63.263.81.0-4.21.16.9-31.67.2

1987-8821.311.7-2.110.530.1-16.011.036.1-45.213.829.69.126.348.6304.025.83.4-94.8-10.431.91903.52.534.1-394.8-0.3-40.90.016.4123.315.913.982.313.5

1988-8912.819.230.65.527.8-41.110.76.534.2-0.97.6-3.932.018.1-31.914.9-20.5-3772.4-12.64.338.013.71.4-57.122.5168.721.7-2.0-36.8-1.71.2-20.11.4

1980-9018.93.3-20.4-0.611.3-54.97.49.3-1.01.0-0.61.71.18.660.926.628.223.0-61.7-13.447.120.113.6-67.17.0-51.77.7-14.0-5.8-14.0-10.6-18.3-10.6

Average8.55.11.40.315.2-19.44.410.4-4.71.416.72.08.912.3-82.511.69.7-484.6-8.113.0192.310.49.8-27.84.450.34.8-2.07.5-2.0-1.66.7-1.6

Sheet1

0

0

0

0

Indian investments abroad ($ million)

Sheet2

Sheet3

*More than 100 global companies outsource R&D facilities from India

GE John F Welch Technology Centre Companys largest research outfit outside the USA

GE Medical Systems India as sole sourcing base for its portable ultrasound scanner

Monsanto First non-US research facility

Eli Lilly largest research facility in Asia and 3rd largest in the world

Texas Instruments Digital Signal Processor developed in India controls 50% of the world market

AVL, Austria India as base to do R&D for the companys Japan centre

International Brands Utilizing The Indian Knowledge Base

*BeiersdorfProblems at beginning:Existence of rival company (Nivea) in the market (personal hygiene market)

Reason for success:Relative name recognition Adaptable Indian staffSuppliers who are willing to cooperateImmense support in form of technology and know-how transfer from side of GermansGreat market potential

What is important for business-collaboration with India?

Patience and enduranceLocal manager who knows mother companyCollection of experience through business connections

Case Study of Selected German Companies in India

*Daimler BenzDecentralized research was quite essential Achievement of local representation to assess market specified interests

Why India? Great resources of highly qualified scientists as staffAvailability of human capital with low labor costsInternationality:

English language and understanding of European culture (due to British history, existence of numerous institutions, administrations, school etc)Economic Policy

Case Study of Selected German Companies in India

*Quite simply, I was blown away by what I saw on my first trip to India Stephen Roach, Managing Director & Global Chief Economist, Morgan Stanley 2004India's highly educated workforce, management talent, rule of law, transparency, cultural affinity and regulator environment are more favorable than China's.A T Kearney, FDI Index 2004 "We want to bring to the world various facets of this extraordinary country, its people and progress" Chris Cramer, International Managing Director, CNN 2004"India has the potential to deliver the fastest growth over the next 50 years with an average rate of more than 5 per cent a year for the entire period Dominic Wilson, Senior Global Economist and Vice President, Goldman Sachs 2005India A Preferred Destination

*INDIA ADVANTAGE

*Trained manpower and knowledge baseRich biodiversityExtensive clinical trial opportunitiesExcellent network of research laboratoriesWell-developed base industriesPro active policy frameworkProficiency in EnglishLow manpower costsThe India Advantage

*Demographics: A strong demand driver

Working

age

population

to rise

to 65%

Urban

population

to rise

to 40%

30-40 mn

people

joining

middle

class

every

year

By 2020

India has several demographic advantages:

- The working age population (15 - 64years) of India is set to increase from a current 59% to about 65% translating into 882 million by 2020.

- The urban population of India is expected to rise to 40% from the current 28%. by 2020.

- Future growth is likely to concentrate in and around 60 to 70 large cities having a population of one million or more.

- On an average, 30-40 million people are joining the middle class every year, representing huge consumption spending in terms of demand for mobile phones and a consumption pattern associated with rising income.

India has several demographic advantages:

- The working age population (15 - 64years) of India is set to increase from a current 59% to about 65% translating into 882 million by 2020.

- The urban population of India is expected to rise to 40% from the current 28%. by 2020.

- Future growth is likely to concentrate in and around 60 to 70 large cities having a population of one million or more.

- On an average, 30-40 million people are joining the middle class every year, representing huge consumption spending in terms of demand for mobile phones and a consumption pattern associated with rising income.

*Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley

Growing Knowledge Pool

ISO:9001:2000

Partnership Driver - Skilled Manpower

Global Growth in Working-Age Population (15~64) Over the Next Six Years (Mln)

Availability of Skilled Manpower, 2003

Availability of Qualified Engineers, 2003

10 = High

1 = Low

World

India

Africa

China

S E Asia

L America

W Asia

USA

W Europe

Japan

4,087

675

477

921

355

352

127

197

123

85

Stock Position 2004

Addl working age population by 2010

Singapore

USA

India

Germany

Hong Kong

Japan

Taiwan

Korea

Mexico

China

10 = High

1 = Low

India

Singapore

USA

Hong Kong

Germany

Taiwan

Mexico

Korea

China

*Costs for offshore work 30 - 50 % lower than in USA / EuropeThe Cost Advantage

Source: NASSCOM

_1138874059.xls

Chart15

2.4

5.88

6.4

6.5

7.2

7.2

8

8.9

25

28

6

Average wage / year (in thousand US dollars)

Sheet1

1997-981998-991999-20002000-20012001-02

IT Hardware2210025250281003070032750

Software Exports650010940171502835036500

Domestic Software347049507200940011634

Total3207041140524506845080884

Sheet1

0

0

0

Sheet2

Programmers/Engineers/Analysts/Computer Scientists41

Internet & E-Commerce Apps (Web Developers/ Design)19

Database Administrator/Developers11

Network Specialists/Developer/Communication Engrs14

Digital Media & Technical Writing5

IT-Enabled Services10

Total sales

ProductsApr 02 Sep 02Apr 03 Sep 03% Growth

Computers999,1001,311,89031.31

Desk Top PCs950,8551,258,15832.32

Notebooks20,19928,82242.69

Servers28,04624,910-11.18

0.00

Printers403,621482,61619.57

Dotmatrix144,330175,90621.88

Inkjet214,611258,76120.57

Laser42,92646,6788.74

Line #1,7541,271-27.54

0.00

Other peripherals2,173,6822,754,54426.72

Key boards975,3101,262,40229.44

Monitors977,1451,252,05928.13

UPS Systems221,227240,0838.52

0.00

Networking products1,230,3911,580,99728.50

Network Interface Card751,074920,70923

Hub301,046318,0976

Modem178,271342,19167

1997-19981864112055

1998-19992530714227

1999-20003617918837

2000-20015659228330

2001-20026578829181

2002-2003E7933731737

1999-2000560

2000-2001900

2001-20021425

2002-2003E

SEI Quality AssessmentNo. of Companies

SEI CMMI2

SEI CMM Level 548

SEI CMM Level 423

SEI CMM Level 322

SEI CMM Level 21

PCMM Level 55

PCMM Level 41

PCMM Level 35

PCMM Level 23

India's Exports

$ bn

Outsourcing services2.9

Application management23

Network and desktop outsourcing19.7


Romania2.4

India5.88

Czech Republic6.4

Philippines6.5

Malaysia7.2

Vietnam7.2

Ukraine8

China8.9

Israel25

Ireland28

Russia6

Sheet2

0

0

0

0

0

0

Sheet3

0

0

0

0

0

0

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003E

Rs. in Crores

Domestic IT Market

0

0

Outsourcing services

0

0

0

0

Revenues (in million $)

0

0

0

0

0

0

0

0

0

0

0


_1150784187.xls

Chart15

2.4

5.88

6.4

6.5

7.2

7.2

8

8.9

25

28

6


Sheet1

1997-981998-991999-20002000-20012001-02

IT Hardware2210025250281003070032750

Software Exports650010940171502835036500

Domestic Software347049507200940011634

Total3207041140524506845080884

Sheet1

Sheet2

Programmers/Engineers/Analysts/Computer Scientists41

Internet & E-Commerce Apps (Web Developers/ Design)19

Database Administrator/Developers11

Network Specialists/Developer/Communication Engrs14

Digital Media & Technical Writing5

IT-Enabled Services10

Total sales

ProductsApr 02 Sep 02Apr 03 Sep 03% Growth

Computers999,1001,311,89031.31

Desk Top PCs950,8551,258,15832.32

Notebooks20,19928,82242.69

Servers28,04624,910-11.18

0.00

Printers403,621482,61619.57

Dotmatrix144,330175,90621.88

Inkjet214,611258,76120.57

Laser42,92646,6788.74

Line #1,7541,271-27.54

0.00

Other peripherals2,173,6822,754,54426.72

Key boards975,3101,262,40229.44

Monitors977,1451,252,05928.13

UPS Systems221,227240,0838.52

0.00

Networking products1,230,3911,580,99728.50

Network Interface Card751,074920,70923

Hub301,046318,0976

Modem178,271342,19167

1997-19981864112055

1998-19992530714227

1999-20003617918837

2000-20015659228330

2001-20026578829181

2002-2003E7933731737

1999-2000560

2000-2001900

2001-20021425

2002-2003E

SEI Quality AssessmentNo. of Companies

SEI CMMI2

SEI CMM Level 548

SEI CMM Level 423

SEI CMM Level 322

SEI CMM Level 21

PCMM Level 55

PCMM Level 41

PCMM Level 35

PCMM Level 23

India's Exports

$ bn

Outsourcing services2.9

Application management23

Network and desktop outsourcing19.7


Romania2.4

India5.88

Czech Republic6.4

Philippines6.5

Malaysia7.2

Vietnam7.2

Ukraine8

China8.9

Israel25

Ireland28

Russia6

Sheet2

Sheet3

1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003E

Rs. in Crores

Domestic IT Market

Outsourcing services

Revenues (in million $)


*Source: IMD Competitiveness yearbook, 2003Low Wages

*

Import duty Reductions

Chart8

150

110

50

42

38.5

30

25

20

Customs Duties

in per cent

Reduction in Peak Customs Duties on Manufactured items

Sheet1

1997-981998-991999-002000-012001-022002-032003-04 E

Size (US$ Billion)5.026.018.3612.4113.7115.8319.62

Share in India's GDP1.221.451.872.712.873.093.82

1996-971997-981998-991999-002000-012001-022002-032003-04 E

Size (US$ Million)110017592600396262177647954512200

Share in India's Exports3.24.97.610.613.8171821.3

1998-991999-20002000-012001-022002-03

Exports (Rs million)3070137089431765035167791

19981999200020012002Dec-02

Cumulative FDI inflow (Rs Million)400844221145097848068591895621

1994-951995-961996-971997-981998-991999-20002000-012001-02

Export of Telecom Services5901108145822322376323028824149

199719981999200020012002Dec 31st 2002

Fixed line telephones (incl. WLL + Pvt basic)14.5417.821.6326.7932.9739.1341.42

Cellular Mobile phones (PSUs + pvt)0.340.881.21.883.586.4310.48

1993-941994-951995-961996-971997-981998-991999-002000-012001-022002-03

Car Production (in nos)207658264468348146407539401002390355574369517907564052606088

Motorcycles Production (in nos)461955647521809097988709112595813872761794093218343029063233914626

1998-991999-002000-012001-022002-03

Cars2546823272229905008870547

2/3 Wheelers121140101625127401119645223011

1998-991999-002000-012001-022002-03

Growth of corporate sales (%)8.614.411.22.410.8

Growth of gross corporate profits (%)0.816.69.9-1.116.8

Ratio of gross profits to sales (%)11.41211.610.911.3

1998-991999-002000-012001-022002-032003-04

BSE-Sensex (end March)368952623808358131566064

1990-911995-962001-022002-032003-04

Foreign exchange reserves ($ billion)2.217.054.175.4119.3

1991-921996-972001-022002-032003-04

GDP1.37.85.848.1

1991Mar-92Mar-95Mar-97Mar-00Mar-02Mar-03w.e.f March 2004

Customs Duties150110504238.5302520

2000200120022003

USA3.80.32.23.1

Japan2.4-0.3-0.32.7

Russia954.77.3

Brazil4.41.51.9-0.2

China87.389.1

South Korea9.3373.1

India5.44.14.77.4

Brazil15

China30

India35

United Kingdom30

Korea27

ExportsImports

1991-928.89.3

1994-9510.212.8

1997-981114.5

1999-200011.915

2000-0113.916.5

2001-0213.615.3

2002-0315.216.4

May 1997April 1999April 2000April 2001

Items with Quantitative Restrictions271414297150

1991-921994-951998-992000-012001-022002-032003-04 (Apr - Sept)

Raw cotton including waste0.690.170.150.110.110.020.02

Tea2.751.181.620.970.780.620.53

Iron ore3.261.581.160.80.881.411.12

Drugs, Pharma & fine chemicals3.523.024.484.294.414.664.8

Machinery & instruments3.252.763.483.63.743.734.19

Transport Equipment2.782.912.292.22.162.332.52

Electronic Goods1.481.561.512.362.52.32.22

gems & jewellery15.3317.0917.8516.5817.0417.5313.35

1991-921994-951998-992000-012002-032003-04 (Provisional)

Production (in million tonnes)14.3317.8223.8229.733.6736.19

Exports (in '000 tonnes)3688731770280545065221

P454566556547789214

E45825769898465547

Sheet1

5.021.22

6.011.45

8.361.87

12.412.71

13.712.87

15.833.09

19.623.82

&A

Page &P

Size (US$ Billion)

Share in India's GDP

Years

Indian IT Market

Sheet2

11003.2

17594.9

26007.6

396210.6

621713.8

764717

954518

1220021.3

&A

Page &P

Size (US$ Million)

Share in India's Exports

Years

Software and Services' Exports

Sheet3

40084

42211

45097

84806

85918

95621

Cumulative FDI inflow (Rs Million)

Years

Rs Million

Cumulative FDI inflow

590

1108

1458

2232

2376

3230

2882

4149

Export of Telecom Services

Rs Crore

14.540.34

17.80.88

21.631.2

26.791.88

32.973.58

39.136.43

41.4210.48

Fixed line telephones (incl. WLL + Pvt basic)

Cellular Mobile phones (PSUs + pvt)

Year

in million

Fixed Line and Cellular Mobile Phones (PSUs & Pvt)

207658461955

264468647521

348146809097

407539988709

4010021125958

3903551387276

5743691794093

5179072183430

5640522906323

6060883914626

&A

Page &P

Car Production (in nos)

Motorcycles Production (in nos)

Years

25468121140

23272101625

22990127401

50088119645

70547223011

Cars

2/3 Wheelers

Year

In Nos.

Vehicle Exports

30701

37089

43176

50351

67791

Exports (Rs million)

Rs million

Exports of pharmaceutical products

000

000

000

000

000




0

0

0

0

0

0

BSE-Sensex (end March)

0

0

0

0

0

Foreign exchange reserves ($ billion)

0

0

0

0

0

Although GDP growth slowed down

It steeped up to a record 8.1%

GDP

in per cent

GDP growth rate

0

0

0

0

0

0

0

0

Customs Duties

in per cent

Reduction in Customs Duties over time

0000000

0000000

0000000

0000000

India

USA

Japan

Russia

Brazil

China

South Korea

India

in per cent

Real GDP Growth

0

0

0

0

0

in per cent

Corporate Income Tax Rate

00

00

00

00

00

00

00

Exports

Imports

in per cent


0

0

0

0

Items with Quantitative Restrictions

0000000

0000000

0000000

0000000

0000000

0000000

0000000

Raw cotton including waste

Tea

Iron ore

Drugs, Pharma & fine chemicals

Machinery & instruments

Transport Equipment

Electronic Goods

in per cent

Changing Commodity composition of India's exports

00

00

00

00

00

00

&A

Page &P

Production (in million tonnes)

Exports (in '000 tonnes)

Production and Export of Finished Carbon Steel

00

00

00

00

00

00

P

E

years

per cent

Production and export

India

* 10th largest economy in the world - 4th in terms of PPP

Will overtake Japan in PPP terms by 2010, to be 3rd largest in the world

Large entrepreneurial base and diversified manufacturing structure

Large reservoir of skilled labour at internationally competitive cost

Vast pool of scientifically and technically qualified manpower of 20m

A large domestic market - 300 m + strong middle class population having substantial purchasing power

Largest democratic set - up

A broad based and transparent legal framework including arbitration

India - Economic Enablers

* Vast network of bank branches, financial institutions and well-organized capital and money markets

A network of technical and management institutes of highest international standards for development of human resources

India has a record of meeting its international financial obligations as per schedule and has never been a defaulter

No communication barrier, as English is the most prevalent business language

Strong and vibrant small scale sector that is keen to establish strategic alliances with their foreign counterpartsIndia - Economic Enablers

*

Supportive infrastructure base

Strategic location for third country markets, particularly in the rapidly growing south and south-east Asian countries

The strategic location of India and its easy and efficient access to the Middle East, East European countries, CIS countries, Africa, South East Asia and Asia-Pacific countries places it in a unique position as a sourcing ground for entering into strategic alliances in export-oriented industries

Foreign companies can take advantage of Indias strategic location and tap the markets of these countries. India is slowly but surely emerging as an attractive destination for foreign investment

Liberalized industrial and foreign investment policiesIndia - Economic Enablers

*Recognising the need and the potential in certain areas, the Government has also come out with specialised packages of incentives for setting up projects in the fields of power, roads and highways, telecommunications, mining, drugs and pharmaceuticals,hydrocarbons, shipping and ports, tourism, electronics, food processing, etc

The Government is vigorously promoting and approving foreign direct investment keeping in view the objective of attracting at least US $ 10 b per annum

The Government is very keen to attract sizeable foreign investment into infrastructural projects like roads, power, ports, telecommunications, etc. as the demand for infrastructural services is expected to rise several times to match the projected economic growth of around 8 % per annum in the next ten yearsIndia - Economic Enablers

*

Sector FDI Limits

Defence up to 26 %

Telecom up to 74 %

Civil Aviation up to 49 %

Real estate & construction sector up to 100 %

Integrated township development up to 100 %

Tea plantation up to 100 %

India - Economic Enablers

* Road length2.5 m km

Second largest road network in the world

Railway routes63,000 km

Cargo handled 298 m tonnes

Electricity installed capacity126,000 MW

Sixth in world electricity generation

Telephone Connections77 m lines

Fixed lines (Dec, 2004)44.76 m

8th largest telecom network in the worldSource: Department of Economics & Statistics, Tata Services LtdThe India Advantage: Infrastructure

*Indian Brains Abroad Though foreign multinational have dominated the research agenda in India

to date, a growing number of Indians who have worked abroad are returning home with cash, contacts and confidence to set up companies of their own These are people who have the experience and exposure to best practices

abroad For the first time, Indians who have been exposed to the world, realize they

can do something just as good and they can be world-class They have an attitude to meet challenges and succeed and also give back

something to their country

35 % of Doctors in USA 36 % of NASA Scientists in USA 35 % of Silicon Valley Start-Ups are by Indians India emerging as outsourcing hub

*BUSINESS OPPORTUNITIES

*Opportunity in various Industry Sectors

Software

Biotechnology

Outsourcing

Retailing

Real Estate

Auto Components

Telecommunication

Media & Entertainment

* The Software industry in India is witnessing an explosive growth and expects

to generate US $ 87 b including US $ 50 b from exports by 2008

More than 150 global business giants have set up research and development

facilities in India

Some of these firms are GE, Microsoft, TI, HP, IBM, Daimler Chrysler and Motorola

Bangalore has over 150,000 software engineers and a concentration of

hi-tech companies

Delhi and NCR is the 3rd largest exporter of Software services from India

More than 70,000 software professionals enter the Indian market each year

Opportunities in Software

*Opportunities in Software The China Connection

China has a worker base equal to India's in terms of cost, quality

and scale

In future, the Indian software Industry will use China as a base to

cater to the local markets including Japan

Indian firms such as HCL, TCS, Infosys and Wipro have already

opened centers in China to outsource technology talent

*Size (2002 - 03) US $ 24 bGrowth rate 28 %Share of IT and BPO1.4 % of GDP2008 projection7 %Exports (2003 - 04) + US $ 12 bGrowing at+ 30 % paCAGR (since 1999)46 %EmploymentOver 650,000Second largest employer in IT services sectorGrowing IT Market

*Opportunities in Biotechnology Biotechnology is a fast emerging sector in India

The consumption of biotech products in India was US $ 1.8 b

in 1999 and is expected to cross US $ 4.2 b by 2010 It is estimated that 10 % of the researchers and 15% of the

scientists in pharmaceuticals and biotech R&D in USA are of Indian origin India is churning out 2 m graduates, 300,000 post

graduates and 1,500 PhD's, every year

Biocon, the first biotech company was launched in 1978

Indian Firms such as Shantha Biotech, Bharat Biotech,

Dr. Reddy's Lab and Biocon are all very successful firms

*

2002- 03201025 % growth in investment70 % growth in employment74 % growth in R&D manpower10 % of global industry1 m skilled jobsUS $ 5 b annual revenuesSource: Confederation of Indian Industry (CII)

Size 2003 - 04 US $ 705 mBiotech Market - A consistent Uptrend

*Volume wise8 % of global market4th largest in the worldCAGR(1995 - 2002)16.6 %Exports 23 %CAGR(1995 - 2002)Size (2002- 03)US$ 7 bShare of formulations80 %Size 2010 (estimated)US$ 25 bPharma Market

*

The Indian Outsourcing industry is moving up the value chain

It is BPO today but the future is for Knowledge Process Outsourcing

(KPO), Financial Process Outsourcing (FPO)and Legal Process Outsourcing (LPO)

It is providing value through domain expertise rather than process

expertise

India, in the new knowledge economy,is all set to emerge as a global

KPO,FPO and the LPOhub

It is estimated to capture 71 % of the world market by 2010 against

56 % today giving it a market of US $12 b

There are new opportunities, given that there is a serious shortage of

quality teachers, in the USAOpportunities in Outsourcing

* The remote education market is expected to be US $ 15 b by 2008 The current leaders are Engineering design US $ 400 m, basic

data search, integration and management US $300 m and Biotech and Pharma US $ 280 m The Compounded estimated annual growth of KPO for India is 50 %

whereas BPO will grow at about 30 % KPO is expected to engage 250,000 people by 2010 It will be in areas such as biotechnology,animation and graphics,design

in aerospace & automotive, health care, pharma research, learning solutions, datamanagement, customer analyticsand entertainment FPO will include insurance underwriting, risk assessment, equity

research and corporate market research

Opportunities in Outsourcing

*

- ITES exports projected to touch US$ 24 b by 2008 - India offers combination of cost-quality-scale advantage ITES - BPO Sector

_1151139844.doc

Contribution of IT Enabled Services in total IT exports

1999-2000

20%

2000-2001

20%

2002-2003

33%

2001-2002

27%

*The ongoing buoyancy in Indias spending, arising from the changing demographics and the resultant rise in income levels, has resulted in a distinct consumer preference for value-added products across the retail spectrum, providing a platform for the rapid growth of the retailing sector which could emerge as one of the fastest growing sector in coming years

Organized retailing industry to rise from US $ 4b to US $ 15b by 2010

The total retailing industry, estimated at US $ 200b is largely in the unorganized sector with organized retailing accounting for less than 2 % (US $ 4b)

The organized retailing segment to grow fourfold in 5 years

According to NCAER, the Indian middle class (household income between US $ 4,500 23,000) currently at 92m, is expected to cross 153m by 2010

Substantial mall construction:

The number of malls is expected to rise from the current 40 to around 250 by 2010

Close to 50m sq. ft. of retail space is expected to be developed over the next 5 years

Opportunities in Retail Sector

*Opportunities in Real Estate

The US $ 50 b Indian real estate market is booming and expected to grow at

25 per cent annually

The boom owing to the consumption powered growth of the country's

economy has seen investors planning nearly 250 new shopping malls by 2008, as against just three that existed till 2002

The central government adopted a regulation in 2005 allowing

foreigners to bid for Indian construction projects with local partners and also reducing their minimum land - holding limit from 100 acres to 25 acres

Enthused by the liberalized investment guidelines, a slew of foreign

builders are rushing to launch projects in Asia's third largest economy

Expected annual shortfall of 20 m housing units by 2011

Mumbai alone would need more than 180,000 housing units

An opportunity for developing large- scale commercial and residential

townships in six cities Kolkata, Bangalore, Mumbai, Chennai, Hyderabad and New Delhi

*

Opportunities in Auto Components

*Opportunities in Auto Components Present Industry size US $ 6.8b

By 2012US $ 17b Total Exports By 2010US $ 5b

Key Features

- Suitability as a low cost manufacturing base for MNCs - Costs 20 - 30 % lower, compared to USA - High product quality, superior design & engineering capabilities* Source: ACMA

*Opportunities in Telecommunication Until 1995, during the more than forty years of government monopoly, there

were 9.4 m telephone connections

There are 46.2 m fixed line subscribers and 52.2 m mobile phones

The mobile phone market is growing at 2 m per month

Estimated rise in Cellular by 100 m subscribers by 2007

Basic telephone connections 175 m by 2010

100 % FDI in telecom equipment manufacturing

Almost 2 m wireless subscribers getting added every month

Unlike many developed countries, the GSM and CDMA technologies co - exist

The outsourcing boom would not have occurred without the private telecom

sector

* The Indian media and entertainment industry, with the prominent

segments being films, television, and music has grown in recent times

The entertainment industry is currently generating revenue of US $ 7.2b

The average growth budget for films has been increasing by 15 % p.a

Another high growth segment of the entertainment industry is television

broadcasting

The present size of this segment is estimated to be US $ 1b

The penetration of cable TV, in the rural segment is expected to

grow by 12 % pa

The music industry in India is expected grow at 20 % pa

FM radio broadcasting has been privatized

Opportunities in Media & Entertainment

*FOR PHILIPPINES

BUSINESS OPPORTUNITIES

*Bilateral TradeValue in US $ m

Source: Ministry of Commerce, India

Year Export Import Total Trade Balance of Trade1997- 98 239.0127.77 266.78 211.24 1998 - 99 118.71 37.25 155.96 81.46 1999 - 00 143.6856.31199.99 87.37 2000 - 01 201.6362.97264.60 138.66 2001- 02248.63 95.17 343.80 153.46 2002 - 03 473.23123.98597.21349.252003 - 04321.54122.11443.65199.432004 - 05393.90181.87575.77212.03

* Meat & preparation Drugs, Pharmaceuticals & fine Chemicals Rubber manufactured products except footwear

Plastic & Linoleum Products

Primary & semi finished iron steelMajor Indian Exports To PhilippinesMajor Indian Imports From Philippines Metal ores & scrap

News print Non - ferrous metals Gold Electronic goods

* IT & ITES

Sharing information & technology for clean environment

Gems and Jewelry

Natural and Herbal Products

Renewable Energy Sources

Dairy

Drugs and Pharmaceuticals

Construction and Material and services

Mining

Oil and Gas

Potential for Business

*The major sources of air pollutants

Motor vehicles

Industrial plants

Burning and construction work

The continuing increase in motor vehicles and population, the inadequate mass transit system, worsening traffic conditions, the establishment of pollutive industries, the widespread practice of open burning, and inadequate enforcement, if not adequately addressed, are bound to contribute to increasing air pollution in the surrounding areasThe most effective approach in improving air quality is to stop the generation of pollutants at their source

This involves replacing a highly pollutive technology or energy source with a non-polluting or a less polluting one, including shifting to cleaner fuelsDeteriorating Air Quality

* The worlds best practices in preventing air pollution and maintaining ambient air quality reflect the creative use of technology and fuel options, which range from

Use of cleaner vehicle fuels - CNG, Gasohol, Biodiesel, Fuel cell, Electricity

Solar energy

Wind energy

Mass transportation systems Underground, Monorail

Usage of Appropriate technologies for Green Buildings

Innovative urban planning incorporating walkways and bike lanes

Air Quality Management

** American Society for Heating, Refrigeration, Air Conditioning Engineers 62-1999 (revised)** American Society for Heating , Refrigeration, Air Conditioning Engineers 62-2001 (revised)# Below Detectable Level Any presence of Benzene is carcinogenic

^ Data validated to August 2005Improvement Of Ambient Air - Nehru Place Greens, New Delhi 1996 - 2005

Sheet1

ParameterASHRAE* Standard199619992001ASHRAE** Standard200220042005^

(maximum)(maximum)

CO21000 PPM455350339300-500 ppm331341345

Carbon monoxide0.055 ug / m3BDL#BDL#BDL#10 mg / m3BDL#BDL#BDL#

Ozone100 ug / m3BDL#BDL#BDL#0.005 mg / m3BDL#N.A.N.A.

Formaldehyde0.4 mg / m30.278BDL#BDL#0.012 mg / m3BDL#N.A.N.A.

Lead1.5 mg / m320.003BDL#1.5 ug / m3BDL#N.A.N.A.

Nitrogen dioxide100 ug / m3673834100 ug / m3323335

Sulphur dioxide365 ug / m3694032365 ug / m3313232

SPM260 ug / m31047593390260 ug / m3389399404

RSP75 ug / m3672502355-349356354

Benzene10 ug / m34518.510Carcinogenic10N.A.N.A.

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Sheet3

* American Society for Heating, Refrigeration, Air Conditioning Engineers 62-1999 (revised) American Society for Heating , Refrigeration, Air Conditioning Engineers 62-2001 (revised) Below Detectable Level any presence of Benzene is carcinogenic

IAQ Results After IAQ Program At PBCTM - STIP 1996 - 2005

Sheet1

ParameterASHRAE* Standard199619992001ASHRAE** Standard200220042005^

(maximum)(maximum)

CO21000 PPM818369358700 ppm excess of ambient351357362

Carbon monoxide0.055 ug / m3BDL#BDL#BDL#10 mg / m3BDL#0.0720.070

Ozone100 ug / m3BDL#BDL#BDL#100 ug / m3BDL#N.A.N.A.

Formaldehyde0.4 mg / m30.1560.013BDL#0.5 mg / m3BDL#N.A.N.A.

Lead1.5 mg / m30.087BDL#BDL#1.5 ug / m3BDL#N.A.N.A.

Nitrogen dioxide100 ug / m3302222100 ug / m3202122

Sulphur dioxide365 ug / m3202823365 ug / m3231919

SPM260 ug / m360611894260 ug / m3929082

RSP75 ug / m32185547-463937

Benzene10 ug / m318.5BDL#BDL#CarcinogenicBDL#N.A.N.A.

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*Areca Palm(Living Room Plant)Sansevieria Trifasciata(Bed Room Plant) Using toxin removing plants to clean the air Biotechnology originally developed by NASA, USA and research done by PBC - STIP on plants suitable for the Delhi climate Air Quality Management Grow Fresh Air

*SME: ADDING VALUE

*SMEs IN EUWef. January 2005

CategoryMax.# EmployeesMax. Turnover Euro mMedium24950Small4910Smallest92

*The definition of small-scale industries (SSI), is given below Norms for Definition of SSI in India Maximum Limit of Investment in plant and machinery in INR m

YearSSIAncillary1985 3.5 4.51991 6 7.5 1997 3030 1999 10 10 Source: Ministry of SSI, Govt. of IndiaSMEs IN INDIA INR 10 m = US $ 227,000

*Contribution Of SMEs Across Diverse Economies

* To say it in Sam Pitrodas words

Technology is for problem solving at personal, community and national levels It is about doing things differently It is about change in mindset, processes, products and preferences Technology is about opportunities and experiences

This is where the SSI is creating a successful niche for itself.

Technology is empowering people at all levels cutting across sectors

This has helped India graduate from being a promising economy to one of the

fastest growing economies Technology & SSI

*Textiles, Knitwear, Garments, Woolen and HosieryLeather and Leather products including footwear and garmentsFood ProcessingDrugs, Pharmaceuticals and BiotechAuto parts and componentsChemicals, Dyes and intermediariesHand ToolsElectronic Industry particularly relating to design and measuring

SSI Dominant Sectors In India Glass and Ceramic items including tilesInformation Technology and ITESRubber and Plastic Products, Parts & ComponentsBicycle and Bicycle partsFoundries Ferrous and Cast Iron Lubricant ManufacturingGems and JewelryPaper and Paper products, Corrugated Boxes

*350 SSI and 2,000 artisans clusters

Panipat (Haryana) accounts for 75 % of the total blankets produced in India

Tirupur (Tamilnadu) contributes 80 % of the countrys hosiery exports

Agra (Uttar Pradesh) produces 150,000 shoes per day valued at US $ 1.3 m

Ludhiana (Punjab) produces 95 % of the countrys woolen knitwear, 85 per cent of countrys sewing machines and 60 per cent of bicycle and bicycle parts

SSI Enablers - CLUSTERS

*

Dedicated Ministry and allied organisations offerPolicy Support - Reservation, Priority Sector Lending, SEZ, Labor Institutional support - Through testing centres, tool rooms, entrepreneurship development institutes, training, warehousingPartnership support - Sub-contracting, ancillarisation & vendor developmentMarketing Support - Through Trading Houses, Subsidizing the participation at international Trade Fairs, sales promotion and business travel

SUPPORT FOR SSI

*

Credit Guarantee Fund Trust Scheme

Collateral free loans of lenders to SSIs up to US $ 58,000

Payment to SSI suppliers should be made within 120 days

Reimbursement scheme in respect of ISO 9000 Quality Certification

Instituting marketing development assistance scheme

Additional Government Initiatives

*

Reservation of items for exclusive purchase from SSI

358 items reserved for preferential purchase from SSI

Price preference up to 15 % on Government purchase

Development of Industrial Estates In selected towns

Technology : Adoption of new technology

Technology up gradation of existing units

POLICY FRAMEWORK: Important Features

*Networking of SSI for Globalization The promotion of inter-firm linkages

Use of Internet: Web Portals like eBay have opened a

new avenue, which the SSI are using as a tool, for marketing

The increasing presence of Multinational corporations have

opened new opportunities for subcontracting

*SSI Sector Facilitating Institutions SSI Sector Technical Training SIDO, SISIs, EDIs, TCOs , PPDCs, DICss, CFTIsIndustrial Infrastructure SIDCs, SSIDCs, HUDCO Entrepreneurship Development SIDO, EDI, NIESBUD, SISIsSpecialized InstitutionsTechnology SupportNSIC, SIDO, SISIs,RTCs,PPDCs, TBSE Funding Institutions Banks, SIDBI, SFCs, SIDCs, NSIC Marketing SIDO, NSIC,SSIDCs, EPCs

*An Engine of Growth95% of Industrial Units7% of GDP35% of NationalExports> 8,000 ProductsOver 11 m UnitsOver 27 m EmployedSSIContribution Of SSI In India

*Source: Ministry of SSIGrowing Competitiveness of SSI The Average Export per unit is US $ 2,000

YearTotal SSI Units (million)Registered SSI Units (million)Unregistered SSI Units(million)Employment (million)Employment per UnitExportsUS $ (billion)

1998- 999.31.28.1222.4112002- 03111.59.5262.4202004- 05 (P)12210282.324

*Growing Productivity & Quality Controls

Source: Second Census & Sample Survey of 1999-2000 by DC(SSI)50 % of the total number of ISO 9001 / 14001 certified units are from the SSI Sector

YearAverage CapitalUS $Employment Per UnitProductionUS $1993-942,1006.317,000

1999-003,7003.671,000

*WINNING ATTITUDE

* Differentiating themselves through the products and services they provide

Standing out by creating special interfaces with their customers and building

unique ways by which they can be held accountable by them

Building a very strong quality story

Benchmarking innovations against well set, globally accepted standards and

aim for targets, creating an environment and culture of innovation within the organization

Developing systems to nurture innovation making full use of the availability of

information and by rightful dissemination of knowledge to foster goal driven innovation

Building efficient processes to cut time - to- market

Providing opportunities to their people to do roles that go beyond their

existing work profiles

Providing continuing education

It IsAll About Attitude - Management

* Need to honetheir skills

More adaptive thinking

Greater entrepreneurial drive to find new horizons of growth with a competitive

spirit

Foresight with a fierce unrelenting passion to execute and act today to improve the

future

Bring change more aggressively and lead the organization to implement

sustainable changes

Energizing their team and inspiring them for excellent team performance

Delegating authority to allow people to perform

It IsAll About Attitude Business Person

* Ability to reach out to a wide international network for ideas and problem

solving

Understanding on how things get decided and done

Using customized strategies to influence specific stakeholders

Executive maturity andemotional wisdom to respond to others and

embody the aspirations of ones organization

Inner strength to do the right thing at the right time

Courageous dedication to super ordinate goals, doing what is right and

what will make India great

To keep learning and be abreast of new technology

It IsAll About Attitude Business Person

*Acknow ledgementPHDCCI PHD Chamber of Commerce and Industry

CII Confederation of Indian Industry

FICCI Federation of Indian Chamber of Commerce and Industry

Assocham Associated Chamber of Commerce and Industry of India

IGCC Indo German Chamber of Commerce

IACC Indo American Chamber of Commerce

ICRIER Indian Council for Research in International Economic Relations

NASSCOM National Association of Software and Service Companies

USCAN Uniting Services Consulting Advocacy and Networking

Paharpur Business Centre The International Division

*

THANK YOU

*

*

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