Transcript India

Czech Asian Forum
3 March 2008
Presentation by Indian
Embassy
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Why Invest in India?
India has among the highest
returns on foreign
investment
India is among the two
most attractive FDI
destinations in the world
A T Kearney
FDI Confidence Index 2007
US Department of Commerce
By 2032, India will be among the
three largest economies in the world
BRIC Report
Goldman Sachs, October 2003
“We came to India for the costs,
stayed for the quality and are
now investing for innovation.”
- Dan Scheinman, Cisco System Inc. as
told to Business Week, August 2005
“India is a developed country
as far as intellectual capital is
concerned.”
Jack Welch
General Electric
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India- Fastest Growing Free Market
Democracy
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Indian economy 4th largest in the world as measured by
PPP
12 largest in the world measured in US $ exchange rate
terms with a GDP of US$ 1 trillion (2007)
Exports: US$ 98.3 billion (April-Nov 07) growth of 22 %.
Export growth averaging 25% p.a. over the past three
years.
Imports: US$151 billion (April-Nov 07) growth of 27%
India’s economic engagement with the rest of the world is
slated to exceed US$ 700 billion in 2010.
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India- Fastest Growing Free Market
Democracy
• India's net foreign exchange reserve expected to reach US$
300 billion by end March 2008.
• The total wealth, measured in terms of cumulative market
capitalization of all listed companies on Bombay Stock
Exchange, has exceeded US$ 1.7 trillion marking a ten
fold surge in the total market value in just four and half
years
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India: GDP showing significant growth
• For the past four years, GDP has grown more
than 8%.
• GDP growth for 2007-08 is 8.7%
• Economy grew over 8% over 12 successive
quarters since 2005.
• Growth in sectors in 2006-07:
Manufacturing: 11.3%
Services: 11.2%
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Share of Services Sector has gone up Significantly
60
50
48.9
40.6
40
55
54.02
53.2
52.1
43.9
32.2
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27.2
28 28.1
27.2
23.8
20
22.2 25.7
20.8
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26.08
28.4
19.9
16.6
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0
1990-91 1995-96 2000-01 2003-04 2004-05 2005-06 2006-07
Agriculture
Industry
Services
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High Returns on Investment
India
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about 19%
Compared to some prominent Asian
countries
•The investors’ wealth has grown by US$ 970
billion, since beginning of 2007.
• In 2007 , stock market’s benchmark Senex has
grown 46.6 percent. From 13,786.91 points on Dec
29, 200, it settled at 20,206.95 points on Dec 29,
2007.
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Demographics
A Strong Demand Driver
By 2020
30-40 mn
Working
age
population
to rise
to 65%
Urban
population
people
joining
middle
to rise
to 40%
class
every
year
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Diversified economy
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Pharmaceuticals
Bio-tech
Agri-and food processing
Auto components
R&D
IT
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PHARMACEUTICALS
 India is world's 4th largest pharmaceuticals producer with
8% share of global production by volume
Pharma sector is growing at 20% per year
Exports of generics alone in 2005 were US$ 55 billion
 3 New Molecules discovered by Indian companies - 12 more
in the final stages.
 Over 100 Indian formulations have received United States
FDA approval
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BIOTECH
 More than 900 companies involved in traditional
biotech products
DNA biopharma products – 35 new companies set up
in past 5 years
Opportunities for fresh investment in Indian biotech
sector in next 5-7 years - US$ 1.5 – 2 billion
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Food processing
 Share in the world
trade 1.7%
 5th largest industry in
India
 Industry size is
estimated at US$ 70
billion
 US$ 22 billion of
value added products
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AUTO & AUTO COMPONENTS
 2nd largest small car market in the world.
 Largest motorcycle manufacturer in the world
 2nd largest scooter and tractor manufacturer in the world
 Many international auto majors are manufacturing in India
– Daimler Chrysler, General Motors, Toyota, Ford, Honda,
Hyundai, Volkswagen, Suzuki, Skoda. India is excpected to
move ahead of UK and Canada as a car producing contry bt
2008 with capacity surpassing 2 million units.
 Most of them are also outsourcing their components from
India.
The Indian auto components industry’s revenue double
every four years, salted to touch 18.7 billion US$ in 2009; 1440
billion US$ by 2014.
RESEARCH & DEVELOPMENT
More than 100 global companies outsource R&D
facilities from India
 GE John F Welch Technology Centre – Company’s largest
research outfit outside the US
 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 company’s
Japan centre
IT & IT ENABLED SERVICES
Indian IT-ITeS recorded revenues of about 40 billion US $ in
2006-07, up 30.7%. NASSCOM has projected revenues of US$
50 billion in 2007-08.
 NASSCOM findings indicate software and services exports
are expected to touch USD 40 billion and the domestic market is
expected to touch USD 23 billion in FY 08.
250 Fortune 500 companies have outsourced their software
requirements to India
Major global software companies –Microsoft, Oracle, Adobehave set up operations in India
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Several World leaders have outsourced
Business Processes to India
General Electric British Airways
American Express
Citibank
McKinsey
Accenture
Microsoft
Intel
Hewlett Packard
Dell
Oracle
IBM
Sun
Microsystems
Pfizer
CISCO
Texas Instruments
Dupont
General Motors
Cummins
Honeywell
Monsanto
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OPPORTUNITIES
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POWER
OIL AND GAS
PORTS AND ROADS
AIRPORTS
HEALTHCARE
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POWER
 By 2012
• Peak Demand (Expected) – 1,57,000 MW
• Envisaged Capacity Addition – 1,00,000 MW
 There is a total investment opportunity of about
US$ 200 billion over a 7 year horizon
 Up-to 100% FDI allowed in projects relating to
electricity generation, transmission and distribution
(other than atomic reactor power plants).
 No investment ceilings on project cost and
quantum of Foreign Direct Investment
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Oil & Gas
• World’s 6th largest consumer of Energy
• World’s 8th largest consumer of Oil
• Demand for Petroleum Products expected to be 196
MMT by 2011-12.
• Investments of US$ 150 Billion required to meet
burgeoning demand. More than US$ 12 Billion already
committed for exploration and development work over
next few years
• Liberalized Govt policies on exploration, production,
refining, distribution, marketing and pipelines for
private sector participation
• 100% FDI allowed for exploration, petroleum product
marketing and laying pipelines.
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PORTS & ROADS
Roads
 Investments of US$ 12 Billion envisaged for National Highway
Development Project
 100% FDI under automatic route allowed in projects for
construction and maintenance of roads, highways, vehicular
bridges, toll roads
Sea-Ports
 7517 Km of Coastline dotted by 12 major and 185 minor ports.
 Investments of US$ 22 Billion needed for developing 50 new
ports and upgrading existing ports
 100% FDI permitted in Construction, maintenance and
support services for ports. 100% Tax Holiday for 10 years for
enterprises in developing, maintaining and operating ports,
inland waterways, etc.
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Airports
• Projection 2010: International Passenger
Traffic – 26 Million; Domestic Passenger
Traffic – 40 Million; Cargo Movement –
1.8 Million tonnes
• FDI up-to 74% under Automatic Route
(up-to 100% with Special Permission)
allowed in ventures for airports
• FDI up-to 49% permitted in Domestic
Airport Services
• Tax incentives available
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HEALTHCARE
 Size of the Healthcare industry - over US$
22 billion
 Sector employs over 60 million people
 One of the fastest growing sectors in India expected to grow at 12-13% per annum.
 Over 80% of healthcare spending is in the
private sector.
 Investment Potential : 750,000 extra beds
over the next 10 years at a cost of
approximately US$ 30 billion.
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Bilateral Trade
•With economic liberalisation and reorientation in both
countries economic cooperation between the countries is
witnessing an upward trend.
•The Joint Statement issued during the visit of Czech PM to
India in Jan 2006 envisaged 1 billion bilateral trade by 2010.
The target may be reached very soon.
•Indo-Czech trade has been increasing steadily. Result
encouraging; has increased 4 times in last 4 years
• Balance of trade in favour of Czech Republic
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Bilateral Trade
Year
2003
2004
2005
2006
2007
Indian
Exports
120.420
Indian
Imports
119.973
181.051
241.124
266.625
201.649
262.006
398.066
403.804
555.295
Turnover
(in million USD)
240.393
382.700
503.130
664.691
959.099
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Major Indian Investment in Czech Republic
• Vectra Ltd has invested in Tatra Koprivince (trucks)
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Ashok Leyland has acquired Avia a.s. ( trucks)
Infosys set up a fully owned BPO company in Brno (IT)
Alok Industries has acquired Mileta (textile)
Spentx acquired Schoeller Litivinov (textile)
Mittal Steel Ostrava (steel)
Glenmark Pharmaceuticals acquired Medicamenta
(pharmaceutical)
• Tata Group acquired JEMCA (tea)
• Motherson Auto Ltd invested in FP Formagrau
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Some major Czech companies doing
business with India
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Skoda Export
Skoda Power
Skoda Auto
Tatra
UniControls Electronics
AZD Praha
CKD Praha
Omnipol
Prexim
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Role of the Embassy
• Facilitates in providing information on
Indian market, regulatory framework
• Can provide detailed information on
specific sectors of interest
• Detailed information on investment
opportunities
• Can put Czech companies in touch with
Indian companies
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Useful Websites
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http://www.mea.gov.in
http://commerce.nic.in
http://www.finmin.nic.in
http://indiainbusiness.nic.in
www.ibef.org
www.dipp.nic.in
http://www.ficci.com
http://www.ciionline.org
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Contact information
• Mr. Manish (First Secretary)
• Mr. Dilbag Singh (Second Secretary)
• Ms. Alena Jenikova (Commercial Assistant)
Email: [email protected],
[email protected], [email protected]
Tel: +420-257533490
Fax : +420- 257533285, 257533378
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THANK YOU
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