Transcript India External Scan from 16 Mary 2008 - IEEE-SA

India Scan: External
IEEE Strategic Planning and Research
Providence More,
Manager of Strategic Planning &
Competitive Intelligence
March 2008
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©2008 The Institute of Electrical and Electronics Engineers, Inc.
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Part I
General Information
IEEE Strategic Planning and Research/P. More/April 2008
India at a Glance
Official Name: Republic of India
Capital: New Delhi
Government Type: Federal Republic
Chief of State: Pratibha Patil, President
Population: 1.13 billion
Area: 1.27 million square miles; about one-third the size of the U.S.
Languages: Hindi, national language; 14 other official languages; English, for national, political, and
commercial communication
GDP Per Capita: $3,800
Climate: Mainly tropical in Southern India but temperatures in the north range from sub-zero degrees
to 50 degrees Celsius. There are well defined seasons in the northern region: winter (Dec - Feb),
Spring (Mar - Apr), Summer (May - Jun), monsoons (Jul - Sep) and autumn (Oct - Nov).
Time zone: GMT +5.5 hours.
Currency unit: Indian Rupee (INR), 100 paise=1 INR. Coins in vogue: INR 1, 2 and 5. Currency
notes: INR 5, 10, 20, 50, 100, 500 and 1,000.
Literacy rate: 65.38 per cent (Kerala has the highest literacy rate of 90.92 per cent). Total
Population: [61%] Male: [73%]; Female: [48%]
State Religion: Secular State - there is no state religion
Major religions: Majority are Hindus, though a significant number are Muslims, Christians, Sikhs,
Buddhists and others.
International airports: Ahmedabad, Amritsar, Bangalore, Chennai, Goa, Guwahati, Hyderabad,
Kochi, Kolkata, Mumbai, New Delhi, Thiruvananthapuram.
Major ports of entry: Chennai, Ennore, Haldia, Kolkata, Kandla, Kochi, Mormugao, Mumbai, New
Mangalore, Paradip, Tuticorin and Vishakhapatnam.
Web site: India.gov.in
Source: ibef.org
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India at a Glance (Cont’d)
Independent Judiciary
– Supreme Court - highest judicial authority in India
– High Court - Head of judicial hierarchy in the State
Fundamental Rights
– Guaranteed by the Constitution
Directive principles of State Policy
– Promotion of peoples' welfare in a social order
Union of India
– 28 Federal States and 7 Union Territories
Parliament
– Two Houses:
 Lok Sabha (Lower House)
 Rajya Sabha (Upper House)
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
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Where India Ranks in the World
Population – 2nd
Most populous democracy – 1st
Land area – 7th
Largest economy globally, based on purchasing parity – 5th
Gross domestic product – 10th
Gross Domestic Product in Asia – 3rd
Market among emerging nations – 2nd
Active duty military – 3rd
Muslim population – 3rd
Hindu Population – 1st
Carbon dioxide emissions – 5th
Source: The Atlanta Journal-Constitution/ajc.com, 26 Feb 2006
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Interesting Facts
World's second largest small car market
(Nano to be sold at $2,500 USD)
One of only three countries that makes its
own supercomputers one of six countries
that launches its own satellites
One hundred of the Fortune 500 have R&D
facilities in India
Has the second largest group of software
developers after the U.S.
Lists 5,000 companies on the BSE (only
NYSE has more)
Is the world’s largest producer of milk and
milk products and the second largest
producer of food including fruits and
vegetables
Source: SHRM, ASAE India Study Mission Feb 2008
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Emerging Market Stock Markets
Countries like India have made unprecedented gains in income,
wealth, and modernization.
Nevertheless, a heated debate rages about the fairness and the
costs of recent gains.
The stock market appreciation in the BRIC countries (Brazil,
Russia, India, and China) is based in part on the notion that these
countries are on a fast path to convergence with the industrialized
world.
A collapse in stock market values, which are little understood by
the average citizen, could weigh on the side of the opponents of
reform.
Except possibly in India, there is little sign that the commitment to
fast growth is weakening.
Still, the stock markets in the BRIC countries, which have risen
about 2.5 to 4.5 times their 2005 value, are high risk and bear
watching (Chart 9).
Should these markets come down to earth, the consequences
could be far reaching.
Source: Straight Talk, U.S. and Global Economies, The Conference Board, January 2008
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Indian Trade
Source: SHRM, ASAE India Study Mission Feb 2008
Total Trade: Total bilateral
trade in 2006 was $31.8 billion
U.S. Exports to India in 2006
increased to $10 billion, a 25%
increase from the previous
year
Imports from India in 2006
totaled $21.8 billion, a 16%
increase from the previous
year
FDI to India in 2006 was
roughly $5 Billion it tripled in
2007 to about $15 billion
FDI outflows from India in
2007 estimated at $15 billion
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Border Issues
Pakistan: has fought three wars and disputes
control of Kashmir, also at odds over sharing
of Indus River water
China: shares a militarized border, disputes
ownership of portions of Kashmir and claims
China gave nuclear power technology to
Pakistan
Nepal: has strict border policies to keep out
Maoist insurgents working to overthrow the
Nepalese monarchy
Bhutan and Myanmar: want cooperation to
keep separatists in Nagaland and Assam
from hiding in remove border areas.
Bangladesh: supported Bangladesh when it
broke away from Pakistan but has some
border issues, also objects to easy
movement of people and illegal trade across
the borders
Source: The Atlanta Journal-Constitution/ajc.com, 26 Feb 2006
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Challenges
Need for technological
upgrade
Inadequate
infrastructure: roads,
power, water
Bureaucratic mindset
Regulatory and foreign
investment controls
High fiscal deficits
Slow Judicial &
administrative processes
Source: SHRM, ASAE India Study Mission Feb 2008
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Part II
Demographic Information
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Part II
Part A. Population
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India’s Population Distribution is Typical of Many
Developing Countries, is Changing
India is following the demographic transition pattern of many
developing countries, moving from initial levels of "high birth rate,
high death rate" to its current intermediate transition stage of "high
birth rate, low death rate."
– This “intermediate transition stage” leads to a high population growth
rate, before graduating to levels of "low birth rate, low death rate.“
The age distribution of India’s population is projected to change by
2016.
– The population below 15 years of age will decline to 28 percent by
2016.
– The population between 15 and 59 years will increase to nearly 64
percent by 2016.
– The age group of 60 plus years will increase from 7 percent to nearly
9 percent by 2016.
Source: India Rising Growth, Goldman Sachs Economic Research paper, January 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Key Population Indicators
Population Total (estimate for March 10, 2008): approximately 1.13
billion people
Births per 1,000: 24
Deaths per 1,000: 8
Rate of Natural Increase (Percent): 1.6
Projected Population (2025): 1,391,200,000
Projected Population (2050): 1,747,300,000
Projected Population Change, 2007 to 2050 (%): 54
Infant Deaths per 1,000 Live Births: 58
Literacy Rate: 79.9%
Unemployment Rate: 7.8%
Sources: CIA World Fact book, India Census (2001), US Census
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Key Population Indicators (Cont’d)
Rural Population (2001 Census): male: 381,668,992; female:
360,948,755
Population Under the Poverty Line (%) (2006 estimate): 22%
Net Migration Rate (2007 estimate): -0.05 migrant(s)/1,000 population
Sex ratio (2006 estimate):
– At birth: 1.12 male/female
– Under 15 years: 1.098 male/female
– 5–64 years: 1.061 male/female
– 5 years and over: 0.908 male/female
– Total population: 1.064 male/female
Life Expectancy at Birth (2007 estimate):
– Total population: 68.59 years
– Male: 66.28 years
– Female: 71.17 years
Total Fertility Rate (2007 estimate): 2.81 children/woman
Sources: CIA World Fact book, India Census (2001), US Census
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Population Distribution in 2025
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Part II
Part B. English Speaking Population
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India has a Large English Speaking Population
India has the largest English-speaking population in the
world.
– Ten years ago the United States held that record.
English speakers in India are estimated to be in the range
9% (100 million) to 33% of India’s total population (350
million).
In 1997, a survey conducted by India Today suggested that
about a third of India’s population has the ability to carry on
a conversation in English.
The number of English speakers varies with age. There are
more English speakers among middle-class younger Indians
than any other demographic group.
Source: “Subcontinent Raises Its Voice,” The Guardian, November 30, 2004; “India: World’s Second Largest English Speaking Country,” TESOL-INDIA.
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Part II
Part C. Middle Class Population
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Defining India’s Middle Class
According to the Indian National Council of Applied Economic Research,
the term "middle class" applies to those earning between $4,000 and
$21,000 a year ($20,000-$120,000 in purchasing power parity terms).
– However, this definition suits only about 60 million (under 6%) of India’s
population.
Other studies define India’s middle class much more broadly.
– A recent study by CNN-IBN suggested a "simple consumer-based criterion"
for membership of the middle class: ownership of a telephone, a two or fourwheel (motorized) vehicle, and a color television.
– By this definition, India’s middle class makes up nearly 200 million people
(approximately 20% of the population).
Source: “India’s Middle Class Failure,” Prospect Magazine, September 2007.
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Defining India’s Middle Class (Cont’d)
A May 2007 McKinsey report “The Bird of Gold: The Rise of India's
Consumer Market” classified India’s middle class population into
two groups:
– “Seekers:” earning between 200,000 and 500,000 rupees ($4,376$10,941),
– “Strivers:” with incomes of between 500,000 and 1 million rupees
($10,941-$21,882).
The report believes that these two groups will constitute India's
huge new middle class.
While their incomes would place them below the poverty line in the
United States, things are much cheaper in India. When the local
cost of living is taken into account, the income of the seekers and
strivers looks more like $23,000 to $118,000, which is middle class
by most developed-country standards.
Source: “India’s Middle Class Failure,” Prospect Magazine, September 2007.
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Defining India’s Middle Class (Cont’d)
“Seekers” range from young college graduates to mid-level
government officials, traders, and business people.
– They enjoy a lifestyle that most of the world would recognize as middle
class and typically own a television, a refrigerator, a mobile phone and
perhaps even a scooter or a car.
– Although their budgets are stretched, they scrimp and save for their
children's education and their own retirement.
“Strivers,” the upper end of the middle class, tend to be senior
government officials, managers of large businesses, professionals,
and rich farmers.
– Successful and upwardly mobile, they are highly brand-conscious,
buying the latest foreign-made cars and electronic gadgets.
– They are likely to have air conditioning, and can indulge in an annual
vacation, usually somewhere in India.
Source: “India’s Middle Class Failure,” Prospect Magazine, September 2007.
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India’s Middle Class is Growing
Although definitions of India’s middle class differ, most
sources acknowledge that this population is growing.
– One source believes that by 2025 India’s middle class will
include 583 million people (41 percent of the population).
At the same time, India’s middle class households will
see their incomes collectively balloon to 51.5 trillion
rupees ($1.1 billion).
– This figure is 11 times the level of today and 58 percent of
India’s total income.
Source: “India’s Middle Class Failure,” Prospect Magazine, September 2007.
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Economic Growth Breeds Income Growth and the
Power of India’s Expanded Middle Class
India’s economic growth, increased spending power, and the growth of
India’s middle class reinforce one another.
Because India's economic growth has accelerated significantly over the
past two decades, so too has the spending power of its citizens.
With rising incomes, household consumption has soared and a new
Indian middle class has emerged.
Middle-class Indians will trigger explosive growth in the country’s
consumer market, pushing it to $1.5 trillion (four times the present $380
billion).
Source: “Next Big Spenders: India’s Middle Class,” Business Week, May 19, 2007.
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Income Growth Encourages Choice-Based Spending
and Soaring Consumption
As the income growth rolls across Indian society, a huge shift is under way
from spending on necessities such as food and clothing to choice-based
spending on categories such as household appliances and restaurants.
– Middle-class Indians’ discretionary spending will represent 70% of all
spending by 2025, compared with just 39% now.
– Households that can afford discretionary consumption will grow from 8 million
today to 94 million by 2025.
This soaring consumption will vault India into the premier league among
the world's consumer markets.
– Today its consumer market ranks 12th; by 2025 it will surpass the size of
Germany's consumer market, making it almost as large as Italy's market.
Source: “Next Big Spenders: India’s Middle Class,” Business Week, May 19, 2007.
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Key Income Indicators
Title
2006
2007
2008
Source
GDP per head (US$, mil.)
842.4
1020.0
1230.0
Derived from Central Statistical
Organization, India
Private consumption per head
(US$, mil.)
475.2
578.0
684.0
Derived from Central Statistical
Organization, India
GDP per head ($ at PPP)
2504.5
2730.0
2960.0
EIU calculation
Real GDP growth per head (%
pa)
7.848
6.3
6.0
Derived from Central Statistical
Organization, India
Personal disposable income
32593.3
36374.4
40410.5
CMIE, Centre for Monitoring Indian
Economy, Economic Intelligence Service
Personal disposable income
(US$, mil.)
719400.0
880000.0
1056500.0
CMIE, Centre for Monitoring Indian
Economy, Economic Intelligence Service
Real personal disposable income
(US$ at 2005 prices, mil.)
693390.0
724500.0
763500.0
Derived from CMIE, Centre for Monitoring
Indian Economy, Economic Intelligence
Service
Source: "Country Data, Demographics and income India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
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Key Income Indicators (Cont’d)
Series Title
2006
2007
2008
Source
Real personal disposable income
(% change)
10.7
4.5
5.4
Derived from CMIE, Centre for
Monitoring Indian Economy,
Economic Intelligence
Service
Average real wage index (LCU,
2005=100)
102.7
105.7
107.9
EIU calculation
Average real wages (% change)
2.7
2.9
2.1
Derived from ILO labor statistics
Source: "Country Data, Demographics and income India (February 2008)," Economist Intelligence Unit.
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Part II
Part D. Working Population
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India’s Working Population is Large and Growing
In 2001 the total size of India’s working population was 400
million, or 40% of the country’s population.(1)
For the first time since the country’s independence, employment
has grown at a faster rate than population rate during the fiveyear period between 2000 and 2005.
– According to data from the National Sample Survey Organization,
the workforce participation rate has increased by 2.85% a year
between 2000 and 2005.
– This increase has been more significant in urban areas and among
males.(2)
– This trend is a reversal of the jobless growth witnessed in the
1990s.
The National Sample Survey Organization defines workforce participation rate as “the number of persons working as a percentage of the total population.
(1) Census India (2001)
(2) “Now, jobs grow faster than population in India,” The Times of India, August 11, 2007.
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India’s Working Age Population will Overtake
China’s Working Age Population
According to Sanjeev Sanyal of Deutsche Bank, India’s working
age population will overtake China’s working age population by
the middle of the next decade.
China’s working age population will rise to a peak of 998 million by
2015 after which it will decline steadily. India’s age profile is over
15 years behind China’s, but its working age population is already
growing rapidly. Between 1990 and 2005, the population in the 1564 year range rose from 501 million to 703 million. UN
projections suggest that India’s potential labor force will keep
growing for several more decades to 918 million by 2020 and
eventually to over 1100 million by 2040.
Source: “India’s working age population fast growing,” New Indian Express, August 2, 2007.
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As Workforce Supply Continues to Overshadow
Demand, Stall in Salaries Will Continue
The Boston Consulting Group foresees a stall in salaries, as
India’s workforce supply continues to be greater than demand.
India's workforce supply will be greater than demand, which will
reduce the rise in Indian salaries and maintain the current gap
between Indian salaries and
salaries
in
other
countries.
Companies working out of India will have the same cost
advantage as they have in the current scenario. Compared to
other countries, India will have the maximum labor cost advantage
by 2020.
Source: “INDIA LIKELY TO EMERGE THE BIGGEST LABOUR POOL BY 2020 (surplus population in the working age group expected to go up
to 47 million by 2020),” Indian Business Insight, May 31, 2006.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part II
Part E. Engineers, IT Professionals,
and “Knowledge-Based” Employees
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Indian IT: Going From Strength to
Maturity
India has emerged as the fastest growing IT hub in the world
The IT industry has grown its revenues ten-fold in the past
decade from US$ 4.8 billion in 1997-98 to US$ 47.8 billion in
2006-07
The IT industry's contribution to GDP rose from 1.2 per cent in
1999-2000 to an estimated 5.2 per cent in FY 06-07
Industry employs over 1.6 million professionals directly and
Indirect employment attributed by the industry is estimated to
be 4x, translating to over 6 million additional jobs
India is fast emerging as a research and development hub for
some of the largest IT companies in the world
Source: NASSCOM
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India Produces Many Engineers and IT
Professionals
There are more than 2.5 million qualified engineers in India.(1)
India currently has 113 universities and 2,088 colleges, many of
which teach various engineering disciplines.
In the 2004-05 academic year, a total of 1,355 engineering colleges
admitted 460,000 students.
– The number of graduates swelled to 520,000 in 2005-06.
– By 2006-07, the number of colleges had increased to 1,503, which
admitted 583000 students in all.(2)
Engineering colleges in the country have been growing at 20
percent a year, while business schools have grown at 60 percent.
Source: Knowledge Professionals in India, NASSCOM report 2007.
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Number of Engineering Graduates and IT
Professionals
Title
2003-2004
2004-2005
2005-2006
20062007
20072008
Number of Engineering
Graduates
316,000
365,000
441,000
501,000
536,000
139,000
170,000
222,000
270,000
290,000
Diploma and MCA (Three
Years)
177,000
195,000
219,000
231,000
246,000
Number of IT Professionals
179,000
201,000
246,000
280,000
303,000
Engineering IT Graduates
(Degree)
84,000
102,000
133,000
162,000
180,000
Engineering IT Graduates
(Diploma)
95,000
99,000
113,000
118,000
123,000
Degree (Four Years)
“IT Professionals” include Comp Science, Electronic, and Telecom professionals.
Source: "INDIAN ITES-BPO INDUSTRY : NASSCOM ANALYSIS & Key Highlights of the IT-BPO sector performance in FY 2007-08."
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Number of Engineering Graduates and IT
Professionals
According to AICTE, approximately 440,000 students were enrolled in firstlevel engineering degree programs in 2004-05: 265,000 at the diploma level
and 33,000 at the master’s level.
– By comparison, the seven IITs had a total of 25,000 students enrolled at all
levels in 2002-03.
Figures that capture the annual number of graduating engineers are harder
to come by.
– A 2005 study by Washington, D.C.-based National Academies estimates that
200,000 students graduate each year from first-level engineering programs
in India (revised from an original estimate of 350,000).
– A study by researchers at Duke University pegs the number slightly higher at
215,000, but notes that almost half are graduating from three-year diploma
programs.
– By comparison, the National Academies estimates that U.S. institutions
graduate 70,000 engineering students annually, while approximately 100,000
students graduate from institutions in the European Union.
Source: “Engineering Education in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
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India’s IT and ITES-BPO Sectors are Growing
NASSCOM anticipates an estimated demand for 850,000 IT
professionals and 1.4 million ITES-BPO professionals by 2010.
– With offshore penetration for both IT as well as ITES-BPO services
estimated at about 10 percent, and offshore adoption rising rapidly,
demand for these services from India is expected to continue on its
high growth trajectory.
The number of technology and knowledge professionals employed
in India has grown from 830,000 in FY 2003-04 to well over one
million in FY 04-05.
Source: "INDIAN ITES-BPO INDUSTRY : NASSCOM ANALYSIS & Key Highlights of the IT-BPO sector performance in FY 2007-08."
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Number of "Knowledge-based" Employees in India
Sector
FY 2004
FY 2005
FY 2006
FY 2007
IT Services
614,000
741,000
878,000
1,072,000
ITES-BPO
253,000
316,000
415,000
553,000
Total number of employees in the Indian
ITES-BPO INDUSTRY
867,000
1,057,000
1,293,000
1,625,000
Source: "INDIAN ITES-BPO INDUSTRY : NASSCOM ANALYSIS & Key Highlights of the IT-BPO sector performance in FY 2007-08."
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ACM in India
Establishing a presence in the major
technology hubs of China and India.
An India Task Force was launched in 2007
Initial meetings were held to build professional
relationships and secure the best methods for
sharing ACM’s publications, services, and
resources.
The task force met in Bangalore to explore how
best to serve this burgeoning audience.
Source: ACM Annual Report for FY07
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Part III
Education
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Part III
Part A. Primary & Secondary
Education
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Education
Education is widely perceived by members of socially
or economically disadvantaged groups as the most
promising means of upward mobility
Education in India from primary to higher education is
administered by the Ministry of Human Resource
Development
It is heavily subsidized by the Indian government,
though there is a move to make higher education
partially self-financing
The Indian Government is considering the option of
allowing hundred percent foreign direct investments
in Higher Education.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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Operation Blackboard
Launched in 1987 to improve quality of
primary schools
Aims to improve:
– educational facilities
– instructional material
– education
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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Non-Formal Education
Introduced to uphold the National Policy on
Education (1986) and the Programme of Action
(1992) goal of providing education of satisfactory
quality to all children up to 14 years.
Main features:
–
–
–
–
Short term courses with a duration of about two years
Part–time instruction at a place and time convenient
to learners in small groups
Flexibility in the mode of delivery
Special emphasis on girl’s education
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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National Council for Teacher Education
(NCTE)
Established as a national level statutory body
by the Government of India
Objectives:
– Receiving planned and coordinated
development of teacher education courses
– Recognition of teacher education institutions
– Developing guidelines for minimum
qualifications for appointment of teachers
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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National Programme of Nutritional
Support to Primary Education
(NP- NSPE)
Mid-Day-Meal plan was launched in August
1995
Increasing enrolment retention and
attendance while simultaneously impacting
nutritional levels of students in primary
classes (I to V)
Cooked food with calorific value equivalent to
100 gms of wheat/ rice is given to every
student per school day
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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Public Education
More Indian children are in school than ever before
However quality of public schools has sunk
Children in public school come from the poorest of families
Survey conducted across 16,000 villages in 2007 found that
while many more children were sitting in class, vast numbers of
them could not read, write or perform basic arithmetic
– Among children in the 5th grade: 4 out of 10 cannot read at
the 2nd grade level
– 7 out of 10 cannot subtract
Public spending on schools has steadily increased in the last
few years
Education is about 4%of the GDP
Source: “Education Push Yields LIttle for India’s Poor (17 January 2008),“ New York Times.
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Secondary Education
National Policy of Education, a
centrally sponsored program of
Vocationalisation of Secondary
Education was introduced in
February 1988
Objective is to enhance individual
employability, reduce the mismatch
demand and supply of skilled
resources and provide an alternative
for those pursuing higher education
without particular interest or purpose.
Courses are selected by the State
Government on the basis of
assessment of resource
requirements through district
vocational surveys
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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Secondary Education: Vocational
Courses
Approx. 150 vocational courses have been
introduced at the +2 level in the following major
areas:
–
–
–
–
–
Agriculture
Business and Commerce
Engineering and Technology
Health and Para-medical Services
Home Science Services
The program emphasises practical training of
students both during the course and after completion.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
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Integrated Education for the Disabled
Children (IEDC)
Focuses special attention on the education of
disabled children to achieve the goal of
‘Education for All’
Advocates the approach of providing
integrated education for the mildly
handicapped and of special education for the
severely handicapped children
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
Science Education
Financial assistance is provided for the
conduct of experimental and innovative
programs including:
– Science Kits for primary schools
– Upgradation and strengthening of science
laboratories in secondary and senior
secondary schools
– Supply of books in science related subjects
– Training of science and mathematics teachers.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
International Mathematical Olympiad
(IMO)
To identify and nurture talent in mathematics
IMO is held yearly
Each participating country is required to send
a team consisting of not more than six
secondary school contestants, a team leader
and a deputy leader
The Ministry of Human Resource
Development generally provides the requisite
financial support
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
National Award for Teachers
Launched in 1958 with the objective of
raising the prestige of teachers
Recognizes the meritorious teachers
working in Primary, Middle and Higher
Secondary Schools.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
Promotion of Yoga in Schools
The National Policy on Education, 1986, lays
down special attention to Yoga, as a system
to promote integrated development of body
and mind
Efforts are in progress to introduce Yoga in all
schools and in teacher training courses
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
National Open School
Established in November 1989
Autonomous organization under the
Department of Education
Provides education to students through
distance education
Has exclusive departments for Vocational
Education and Student Support Services
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
Expenditure on Education in India
Government of India has
highly subsidized higher
education
Nearly 97% of the
Central Government
expenditure on
elementary education
goes towards the
payment of teachers'
salaries.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
Budgetary allocation for 2007-08
Allocation for Education was enhanced by 34.2 per cent, from 17,133
cores to 23,142 cores.
Secondary education allowance was increased from Rs 1,837 cores to
Rs 3,794 cores.
To prevent dropouts, a National Means-cum-Merit Scholarship was
implemented, with an allocation of Rs 6,000 per child.
Allocation for SC/ST scholarships enhanced from Rs 440 cores to Rs
611. crore.
Scholarships programme for minorities students to be of the order of Rs
72 crore for pre-metric, Rs 48 crore for graduate and postgraduate
students.
Rs 50 crore provided to begin work on vocational education mission for
which the task force in the Planning Commission is chalking out a
strategy.
1,396 Indian technical institutes to be upgraded to achieve technical
excellence.
Rs 100 crore for recognising excellence in the field of agricultural
research.
Source: Society and Development: National and International Perspectives, NIEPA, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part III
Part B. India's Government Structure with
Respect to Education and Technology
IEEE Strategic Planning and Research/P. More/gl: March 2008
All India Council for Technical Education
The All India Council for Technical Education (AICTE) plans and
coordinates the development of India’s technical education
system.
AICTE also regulates entry and operation of foreign
universities/institutions in India for imparting technical education.
– In the fields that the AICTE regulates (engineering, technology,
management, architecture, town planning, pharmacy, applied arts
and crafts, hotel management and catering), institutional and
program accreditation is the responsibility of the National Board of
Accreditation (NBA), an autonomous body under the umbrella of the
AICTE.
Source: “Engineering Education in India: A Story of Contrasts,” World Education News and Reviews.
IEEE Strategic Planning and Research/P. More/gl: March 2008
All India Council for Technical Education (Cont’d)
AICTE’s accreditation structure is troubling for those that want
India’s engineering sector improve its international credibility
through membership of the Washington Accord.
– The Washington Accord is multilateral agreement that represents
agencies that accredit engineering programs in 12 member
countries and accept one another’s standards as an equally high
standard.
– The agreement recommends that graduates of accredited programs
be recognized as having met the academic requirements for entry
to the practice of engineering in any member country.
AICTE’s latest bid for membership was rejected in 2005.
– AICTE cut a total of 22,722 seats at more than 300 engineering
colleges in the months following the failed 2005 bid.
– To help meet demand, 16,357 seats were added at approximately
200 other institutions that met AICTE requirements.
Source: “Engineering Education in India: A Story of Contrasts,” World Education News and Reviews.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Ministry of Human Resource Development
India’s Ministry of Human Resource Development includes the Department
of School Education and Literacy and the Department of Higher
Education.
Several of the Ministry of Human Resource Development’s major
technology initiatives include:
– A one stop education portal to showcase the Government’s efforts to offer
open learning resources to students of all grades.
– A common entrance examination for admission to technical and professional
courses.
– Total turnkey IT supports for the execution and effective implementation of
its programs.
Source: India’s Ministry of Human Resource Development.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Council of Scientific & Industrial Research
The Council of Scientific & Industrial Research (CSIR) mission is to
“provide scientific, industrial R&D that maximizes economic,
social, and environmental benefits for the people of India.”
CSIR’s recent initiatives include:
– A Memorandum of Understanding with Alcoa.
 The Memorandum is part of Alcoa's open innovation policy to partner in
collaborative research projects that address critical global issues such
as energy efficiency, alternative and renewable energy sources.
Source: http://www.csir.res.in/External/Utilities/Frames/pressroom/main_page.asp?a=topframe.htm&b=leftcon.htm&c=../../../Heads/pressroom/press_room.htm
IEEE Strategic Planning and Research/P. More/gl: March 2008
Department of Science and Technology
India’s Department of Science & Technology (DST) was
established in May 1971 with the objective of promoting new areas
of Science & Technology and to play a role in the development of
organizing, coordinating and promoting S&T activities in the
country.
DST’s recent initiatives include:
– A gift of approximately $1.1 million to Guru Gobind Singh
Indraprastha University to launch an M.Tech. program in
Nanotechnology from the next academic session in 2008.(1)
– Plans to launch a new program called Innovation in Scientific
Pursuit for Inspired Research (INSPIRE) to attract talented young
people towards a career in science.(2)
(1) “I.P. University to launch new course in Nanotechnology,” The Hindu, January 18, 2008.
(2) “Sibal unveils science plan,” Hindustan Times, January 12, 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
National Informatics Centre, Defense Research and
Development Organization
The National Informatics Centre (NIC) of the Department of Information
Technology provides the network backbone and e-Governance support to
India’s central government, state governments, UT administrations, districts
and other government bodies.
– NIC offers a wide range of services including a Nationwide Communication
Network for decentralized planning, improvement in government services,
and wider transparency of national and local governments.
India’s Defense Research and Development Organization (DRDO) is one
of Asia’ largest defense contractors and a leading aerospace
manufacturer.
– It was formed in 1958 by the merger of Technical Development
Establishment and the Directorate of Technical Development and
Production with the Defense Science Organization.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Central Power Research Institute
India’s Central Power Research Institute (CPRI) is an autonomous society
under India’s Ministry of Power.
– Set up in 1960, CPRI functions as a center for applied research in electrical
power engineering, assisting the electrical industry in product development
and quality assurance.
– CPRI also serves as an independent authority for testing and certification of
power equipment.
– CPRI's governing body includes eminent professionals from industries,
utilities, prestigious academic and research institutions and the
government.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Other Initiatives
The National Botanical Research Institute organized a teacher’s
training and motivation program for teachers of various inter,
graduate and postgraduate colleges.
The National Institute of Oceanography (NIO), Goa, signed a
Memorandum of Understanding with Ecole Nationale Superieure
d’Ingenieurs de Limoges (ENSIL), University of Limoges, France, for
research cooperation in the areas of Environmental Pollution and
Ecotoxicology.
– Under this Memorandum, exchange of students, scientists and
scientific information between these two organizations would take
place.
– The use of facilities and equipment at both laboratories would the also
be made available to the individuals working under the cooperative
research program.
Source: http://www.csir.res.in/External/Utilities/Frames/pressroom/main_page.asp?a=topframe.htm&b=leftcon.htm&c=../../../Heads/pressroom/press_room.htm.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Other Initiatives (Cont’d)
India’s Ministry of Human Resource Development Planning will open an
Indian Institute of Information Technology in each state to improve the
quality and quantity of technical manpower in the country.
– The proposed 20 institutes will be open from July 2007.
– The government's plan has also been endorsed by NASSCOM.(1)
Dr. APJ Abdul Kalam, Former President of India, launched the Total
Proficiency in Satellite and Information Technology and Communicationenabled education program.
– The program is part of Application of Science and Technology in Educational
Reform, a project of the Atomic Energy Education Society.
– The program aims at enhancing the teaching-learning process in the
country.(2)
(1) “India to churn out more techies,” The Economic Times, June 9, 2006.
(2) “KALAM LAUNCHES NEW PROGRAMME,” Indian Business Insight, December 13, 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Other Initiatives (Cont’d)
The Indian government plans to open an Institute of Petroleum
Technology in the Sultanpur district of Uttar Pradesh to train personnel for
the growing requirements of the hydrocarbon sector.
– To be called the Rajiv Gandhi Institute of Petroleum Technology, it will be
incorporated as an "institution of national importance" through an Act of
Parliament.(1)
The European Commission-sponsored EuroIndia project announced the
launch of its Web site.
– Designed to promote stronger collaboration between EU and Indian
scientists and industrialists, the site aims to be the focal point for information
in nanotechnologies and nanosciences.(2)
(1) “Institute of petroleum technology,” Hindustan Times, December 27, 2006.
(2) “India-EU tie-up on nanotechnology,” Business Line (The Hindu), August 18, 2006.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Other Initiatives (Cont’d)
Indian Institute of Technology (IIT), Kanpur has selected the BE (Bentley
Empowered) Careers Network program to introduce engineering students
to the latest software for improving the world's infrastructure.
– The program will support IIT-Kanpur's efforts to provide its students with the
software skills they need to succeed in the field of infrastructure, including
architecture, engineering, construction, and operations.(1)
The Indian Institute of Technology (IIT), Chennai set up a $25 million in
February 2007 to promote innovations in partnership with communication
industry.
– According to Union Minister of Communications and IT Dayanidhi Maran: “The
IIT Research Park will provide space for innovations by the faculty, students and
industry. The park will conform to international standards and will be at par with
such ventures in and the US and Britain.”(2)
(1) “Indian Institute of Technology Kanpur Selects Bentley's BE Careers Network Program,” Business Wire, May 11, 2006.
(2) “IIT Chennai to launch research park,” Hindustan Times, July 23, 2006.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part III
Part C. Quality of Engineering
Education in India
IEEE Strategic Planning and Research/P. More/gl: March 2008
Top Engineering Programs are Government-Funded
Indian Institutes of Technology. The central government administers and funds
India’s central universities and institutions of national importance (INI). The INIs are
well-funded with highly competitive entrance requirements.
– The best known of the 13 INIs are the seven Indian Institutes of Technology (IIT).
– The IITs are considered to offer the highest-quality technology and engineering
programs in India, especially at the undergraduate level.(1)
National Institutes of Technology. In 2003, the central government took over and
fully funded regional engineering institutes and converted them into the National
Institutes of Technology (NIT).
– The government aims to establish an NIT in each state and union territory of the
country.(2)
There are many other “deemed-to-be universities” and central universities that
enjoy reputations as top engineering schools.(3)
(1) “Engineering in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
(2) India’s Department of Higher Education.
(3) “Engineering in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
IITs Retain Highest Rankings; Excluding IITs, NITs
Dominate in All Regions Except West
Source: “India's Top T-Schools,” Dataquest, June 22, 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Government-Funded Programs Have High
Admission Standards and Limited Capacity
The Indian Institutes of Technology have high admission standards and a rigorous
work load.
– Preparation for the IIT Joint Entrance Examination (IIT-JEE) can begin as early as
primary school and often culminates in a final year of secondary school that includes up
to six hours of training and homework at IIT-JEE preparation schools in addition to
regular school classes.
– In 2006, a record 300,000 IIT aspirants took the IIT-JEE; just over 4,000 were offered a
place. The ratio of IIT-JEE takers to IIT places was 74:1.
– IIT students have incredibly heavy workloads. Students must complete 180 credits to
graduate from four-year undergraduate programs.(1)
– Virtually 100% of IIT graduates secure a position before they left school.(2)
The National Institutes of Technology and engineering schools at other deemed and
central universities use the All India Engineering Entrance Examination.
– Taken by more than 400,000 students, the NITs admit approximately 7,000
undergraduate students annually.(3)
(1) “Engineering in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
(2) “Engineering in India,” ARC Advisory Group, November 5, 2007.
(3) “Engineering in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Consequently, Private Technical Institutions Have
Proliferated
The government-supported institutions do not have the capacity to meet
the demand for engineering graduates.
– About 99% of all entrance examination participants in the IITs and Indian
Institutes of Management are rejected due to capacity constraints.
Consequently, private engineering institutions have spawned all over
India.
– In 1970, India had a total of 139 engineering institutions, and only four of
these were private.
– In 2007, there were 1,522 engineering colleges with 80% being private
colleges.
Source: “Engineers: Quantity over quality?,” The Times of India, May 26, 2007; Ministry of Human Resource Development, 2006-2007 Annual Report.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India Has Experienced a Significant Increase in
Engineering Graduates
Total Output of Engineering Graduates 1947-2006
The annual number of Bachelors degrees in engineering has increased at a
compound annual growth rate of 12%.
The number of engineers per million population increased from about 1 in 1947
to 213 in 2006.
Source: Engineering Education In India, Energy Systems Engineering, IIT Bombay, September 14, 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Despite Increase, There is a Shortfall of Hirable Engineers
There appears to be a
mismatch between the skills
students are graduating with
and the skills required.
HR professionals consulted for
a 2003 McKinsey Global
Institute study said only 25% of
all Indian engineering
graduates were suitable for
hire by multinationals.(1)
Only about 5% of engineering
graduates continue to
complete masters degrees; of
these, only 3% go on to do a
doctorate.(2)
(1) “Don’t Be Afraid of Offshoring,” BusinessWeek, March 22, 2006.
(2) “Engineers: Quantity over quality?” The Times of India, May 26, 2007.
Source: McKinsey Global Institute, The Emerging Global Labor Market, June 2005
IEEE Strategic Planning and Research/P. More/gl: March 2008
Engineer Shortfalls (Cont’d)
Craig Mundie, Chief Technology Officer and Senior Vice-President
for Advanced Strategies and Policies of Microsoft Corporation,
said India is yet to emerge as a powerhouse for product
development business.
– Blaming India's engineering education system for this lapse, he said
the country churned out a relatively "small percentage" of engineers
in computer science and called for a "balancing" of the curriculum to
support product development activities.
– According to him, India now produced less than 50 PhDs in
computer science, which was "less than one large computer science
department in the U.S."
Source: “Microsoft official wants India to revamp curriculum,” The Hindu, August 10, 2005.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Major Challenge: Shortage of Qualified Instructors
There is a shortage of instructors at second and third tier
institutions, primarily due to a dearth of PhDs and salaries that
are far below industry standards.
– IITs are currently understaffed by as much as 30%. Various experts
estimate that India’s entire education system has only 10% to 30%
of the qualified instructors it needs.(1)
– In India, a full professor might earn the equivalent of $15,000
annually. That same engineer might earn the equivalent of roughly
$70,000 to $100,000 per year. By way of comparison, a U.S.
engineering professor might take home $90,000 a year, contrasted
with an industry salary of $150,000. (2)
– In 2005, the government slashed the intake capacity of engineering
schools by more than 250,000 seats across India’s private
university system due to a shortage of engineering teachers.(3)
(1) “India eyes fixes for education,” EE Times, December 17, 2007.
(2) “India eyes fixes for education,” EE Times, December 17, 2007.
(3) “India's engineering teachers flee classroom for hot jobs,” The Christian Science Monitor, July 13, 2005.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Other Challenges
Shortage of government funding
– According to the National Institute of Education Planning & Administration,
the share of government expenditure on technical education presently
hovers around 4%.
– In China, the amount spent on research and development, especially in
engineering fields, is 10%.(1)
Geographic inequalities
– More than two-thirds of engineering degree education is concentrated in
four States, while the rest of India must do with 30%.(2)
Accreditation shortfall
– Less than 10% of institutions in the technical sector are accredited.(3)
(1) Engineering education: Can India overtake China?” Rediff News, June 9, 2006.
(2) “70% Engineering Deg Education In 4 States: HRD,” UNI (United News of India), December 17, 2007.
(3) “Engineering in India: A Story of Contrasts,” World Education News and Reviews, January 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India is Taking Steps to Improve the Quality of
Engineering Education
Developing the country’s higher education system. India’s
government is building out the higher-education system, which includes
establishing several tech and research institutes, along with eight more
IITs.(1)
Belonging to the Washington Accord. In 2007, India was inducted
into the Washington Accord as a provisional member.
– The Accord recommends that graduates of programs accredited by
any of the signatory bodies be recognized by the other bodies as
having met the academic requirements for entry to the practice of
engineering.
– As a provisional member, India will be given two years to bring its
academic system to the international level and revise its
accreditation system to make it fully outcome based.(2)
(1) “India eyes fixes for education,” EE Times, December 17, 2007.
(2) International Engineering Alliance.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India is Taking Steps to Improve the Quality
of Engineering Education (Cont’d)
Adding finishing schools to enhance employability. In 2007, the Ministry of
Human Resource and Development proposed a Finishing School program for
engineering graduates who had not secured jobs. The pilot program is designed
to focus on technical and soft skills for a duration of 8 -10 weeks to make
students more employable and bridge the manpower supply-demand gap by at
least thirty to forty percent.(1)
Using technology to close student-teacher gap. Visveswaraya Technical
University uses satellite programs for distance learning to reach 13,000 students
with one professor.(2)
Changing faculty policies. Government providing incentives for intensive
training programs for tutors and raising the retirement age from 58 to 62. Retired
professors can teach until they reach the age of 70.(3)
(1) “Finishing Schools to enhance employability,” The Hindu, April 9, 2007.
(2) “Wanted: Indian EE professors,” Electronic Engineering Times, December 17, 2007.
(3) “Wanted: Indian EE professors,” Electronic Engineering Times, December 17, 2007.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India is Taking Steps to Improve the Quality
of Engineering Education (Cont’d)
Lifting foreign-direct investment restrictions. Atlanta-based Georgia Institute
of Technology will set up its international campus in Hyderabad.
– The university will become operational in 2009 and will offer MS degrees and PhD
programs in engineering, science, management, business and other academic
streams. Among the schools said to be eyeing Indian operations are Harvard
Business School, Purdue and Cornell, in the United States, and Nottingham
University, in the United Kingdom.(1)
Developing American-style universities. Vedanta University, an Americanstyle university, is proposed for the Indian state of Orissa. Indian business tycoon
Anil Agarwal plans to use Stanford University as the template for the $3.5 billion
institution.(2)
– Indian students have been studying abroad: The top 40% rejected from
IIT and Indian Institutes of Management go abroad. Over 150,000 students
every year go overseas for university education which costs India a foreign
exchange outflow of US$ 10 billion per annum.(3)
(1) “Wanted: Indian EE professors,” Electronic Engineering Times, December 17, 2007.
(2) “India takes on the world,” The Independent, October 11, 2007.
(3) The Associated Chambers of Commerce and Industry of India, March 17, 2008.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part IV
How Technology Professionals
Work in India vs. the US
IEEE Strategic Planning and Research/P. More/gl: March 2008
Study conducted for the IEEE by
Tenopir, Levine & Allard, 2006
Study to examine how technical professionals
in innovative high-tech firm in the US and
India communicate to use information within
their daily work activities
Observed technical professionals at US and
India based firms
To understand how engineers work and how
they use existing information products and
services in the unique and dynamic
environment of an innovative technology firm
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Meetings
The duration of meetings in the U.S was slightly longer than
those in India, and the U.S. meetings generally had more
people in attendance.
Meetings in India companies averaged about 47 minutes in
duration and had 5 employees in attendance.
In comparison, meetings in a U.S. company lasted 55 minutes
and had 7.6 employees in attendance.
In the U.S. we also found that the longer the meeting lasted, the
more employees were present. This suggests that corporate
culture in the U.S. encourages the meeting as a means of
communication while it is not as essential to India corporate
culture.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Virtual Meetings
India had fewer virtual meeting members in India
than in the U.S.
In the U.S. more than one-third of all observed
meetings had at least one virtual member on speaker
phone.
In India only 20% of the meetings had at least one
virtual attendee.
Meetings with European and U.S. customers or
partners were generally scheduled during the very
early morning.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Presentations in Meetings
The use of presentation technology in
meetings was less prevalent in India.
Presentation software and digital projectors
were found in about half of the meetings in
the U.S. while it was used in only one in five
meetings in India.
This suggests that India companies may not
be as interested in information products that
are designed to be used during meeting
presentations.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Locations of Meetings
The locations of meetings also varied
between the India and U.S.
In India, just more than a third of the meetings
were held in conference rooms, 40% were
held in workspaces and none were held in
managers’ office.
In the U.S. about two thirds of meetings took
place in meeting or conference rooms, 21%
in other workspaces (cubicles, testing labs),
and 10% in managers’ offices.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Multitasking in Meetings
Multitasking occurs more frequently during U.S.
meetings than during India meetings.
U.S. meeting participants were engaged in
multitasking in 46% of meetings while in India
multitasking was only recorded in 20% of the
meetings.
The kind of activities that engineers engaged in
during multitasking were writing and reading e-mails,
surfing the Internet and the company’s intranets, or
continuing their regular work.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Duration of Meetings
The duration of meetings in the U.S was
slightly longer than those in India, and the
U.S. meetings generally had more people
in attendance.
The average meeting in a U.S. company
lasted 55 minutes and had 7.6 employees in
attendance.
In comparison, meetings in India companies
averaged about 47 minutes in duration and
had 5 employees in attendance.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
“Traditional” Technology in Meetings
The use of “traditional” technology of
whiteboards varied greatly between India
and the U.S.
In India whiteboards were used in 72% of the
meetings while in the U.S. whiteboards were
only used in 19% of the meetings.
Whiteboards were used to enhance and/or
explain the verbal message with graphs,
schemas and formulas.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Multitasking Behavior
Engineers are frequently engaged in multitasking behavior.
In fact, being involved in multiple activities at the workplace can
ostensibly extend the work day by as much as 80 minutes.
On average, the U.S. worker puts in approximately 70 minutes
of work during every 60 minute period and in India about 65
minutes per each hour.
This suggests that the Indian worker is more focused on the task
at hand and that there are fewer interruptions in the Indian
workplace.
Obviously, future research would need to be conducted to
understand this marked difference between the U.S. and India.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Multitasking Activities
Engineers also engage in concurrent or overlapping activities.
We recorded many more combinations of concurrent or overlapping
activities In the U.S. (39 combinations) than in India (21
combinations).
The two most frequent overlapping activities in the U.S. were
software/ email and face-to-face/software.
In India, the two most frequent overlapping activities were face-toface/software and software/software.
What is interesting about the top two overlapping activities in each
country is the focus on communication in the U.S.
In the U.S. the overlapping activities each include a communication
event. In fact, we witnessed many instances of engineers engaging
dual communication channels nearly simultaneously – for example
doing email during a telephone call.
However in India the overlapping activities might not always include
a communication event (software/software). There were also times
when the employees engaged in 3 recorded activities, including
phone – software – email and software – software – IM.
Source: How Technology Professionals Work, Study conducted for the IEEE by Tenopir, Levine & Allard, 2006
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part V
India's Current Economic and
Geopolitical Landscape
IEEE Strategic Planning and Research/P. More/gl: March 2008
India's Geopolitical Landscape: Overview
India’s domestic political scene will be dominated by the next
general election (May 2009).
– The increasing importance of regional parties will ensure that
the next government will again be a coalition, likely to be led by
either the current ruling party, the Indian National Congress, or
by the main opposition Bharatiya Janata Party.
– A governing alliance of regional and left-wing parties is also a
possibility.
The government will remain committed to increased spending
on health, education and rural-welfare projects in a bid to
improve living standards outside the country's fast-growing
urban areas.
Source: “March 2008 Country Data,” The Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India's Geopolitical Landscape: Overview (Cont’d)
Strong economic growth will increase tax revenue,
allowing the government to continue to reduce the
country’s budget deficit.
The Reserve Bank of India will loosen interest rates
modestly and allow the rupee to appreciate.
– Monetary policy will remain neutral in 2010-12.
Source: “March 2008 Country Data,” The Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India's Economic Landscape: Overview
India's economic boom will continue, albeit at a slightly slower pace than
the past several years.
Real GDP growth is forecast to slow from an estimated 8.7% in fiscal year
2007/08 to an annual average of 7.6% in 2008/09-2012/13.
The strength of the rupee against the US dollar will mitigate inflationary
pressures by limiting import-led price rises.
– However, strong domestic demand, together with supply-side bottlenecks, will
keep consumer price inflation at an average of around 5.3% a year in 2008-12.
Through 2050 India’s economy will grow faster than those of Japan, the
United Kingdom, and the United States, but not as fast as China’s
economy.
Source: “March 2008 Country Data,” The Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Key Quarterly Indicators
Title
2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
Source
GDP (% real change)
10.903
8.113
10.729
9.021
9.565
9.218
8.777
Derived from Central Statistical
Organization, India
Exchange rate
LCU:US$ (av.)
44.402
45.471
46.37
44.984
44.172
41.234
40.525
IMF, International Financial
Statistics
Budget balance (% of
GDP)
-3.85
-8.518
-0.915
-0.761
-4.143
-10.599
2.889
Derived from IMF, International
Financial Statistics
Consumer prices (%
change av.)
4.88
6.333
6.605
6.845
7.003
6.319
6.702
Reserve Bank of India
Industrial production
(% change)
8.734
10.451
11.811
11.219
12.509
10.265
8.616
Derived from Central Statistical
Organization of India
Lending interest rate
(%)
10.8
11.133
11.433
11.5
12.333
13.3
13.3
IMF, International Financial
Statistics
Trade balance
-12.063
-10.923
-13.725
-17.165
-14.294
-20.329
-17.341
Asian Development Bank, Key
Indicators of Developing Asian and
Pacific Countries
Source: "Country Data, Quarterly indicators India (February 2008),” Economist Intelligence Unit.
* All units in US dollars and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India’s GDP: Key Indicators
Title
2004
2005
2006
2007
2008
2009
2010
Source
GDP (% real change)
8.325
9.232
9.354
7.8
7.5
7.2
7.3
Derived from Central
Statistical Organization
Nominal GDP (US$ at
PPP)
2161.1
2431.9
2743.3
3031.2
3326.2
3660.7
4033
EIU calculation. Based on
figures from World Bank,
World Development
Indicators.
Source: International Monetary Fund, World Economic Outlook Database (October 2007).
* All units in billions.
IEEE Strategic Planning and Research/P. More/gl: March 2008
GDP and Inflation (2006-2008)
Estimates
Title
Units
Gross domestic product, constant
prices
Annual percent
change
Gross domestic product, current
prices
National currency
Gross domestic product, current
prices
U.S. dollars
Gross domestic product, deflator
Index
Gross domestic product per capita,
constant prices
National currency
Gross domestic product per capita,
current prices
2006
2007
2008
Start After
9.7
8.9
8.4
2006
Billions
39582.3
45294.2
51076.5
2006
Billions
873.659
1,089.94
1,249.44
2006
130.506
137.151
142.737
2006
Units
27250.7
29226.3
31199.3
2005
National currency
Units
35563.8
40084.1
44533
2005
Gross domestic product per capita,
current prices
U.S. dollars
Units
784.962
964.571
1089.37
2005
Gross domestic product based on
purchasing-power-parity (PPP)
valuation of country GDP
Current
international dollar
Billions
4231.58
4726.54
5210.21
2006
Source: International Monetary Fund, World Economic Outlook Database (October 2007).
* All units in US dollars.
Scale
IEEE Strategic Planning and Research/P. More/gl: March 2008
GDP and Inflation (2006-2008) (Cont’d)
Estimates
Title
Units
Scale
2006
2007
2008
Start After
Gross domestic product based on
purchasing-power-parity (PPP) per
capita GDP
Current
international dollar
Units
3801.97
4182.86
4542.72
2005
Gross domestic product based on
purchasing-power-parity (PPP)
share of world total
Percent
6.28
6.433
6.576
2005
Inflation, average consumer prices
Index, 2000=100
129.011
137.06
143.031
2006
Inflation, average consumer prices
Annual percent
change
6.1
6.2
4.4
2006
Inflation, end of period consumer
prices
Index, 2000=100
132.292
138.835
144.419
2006
Inflation, end of period consumer
prices
Annual percent
change
6.7
4.9
4
2006
Current account balance
U.S. dollars
-9.503
-23.131
-32.301
2006
Current account balance
Percent of GDP
-1.1
-2.1
-2.6
2006
Source: International Monetary Fund, World Economic Outlook Database (October 2007).
Billions
IEEE Strategic Planning and Research/P. More/gl: March 2008
India's GDP, in Comparison to Other Major
Economies
Source: International Census Bureau.
IEEE Strategic Planning and Research/P. More/gl: March 2008
India's Economic Landscape: Overview (Cont’d)
Between 2004 and 2010 inward direct investment will
grow significantly, from 5.8 billion (2004) to 40 trillion
(2010).
Between 2006 and 2008, total exports and imports will
increase.
– Total imports will increase more than total exports.
Between 2006 and 2008, the percent change of
consumer prices will decrease slightly, from 6.12 percent
in 2006 to 5.8 percent in 2008.
Source: “March 2008 Country Data,” The Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Key Indicators: Foreign Payments
Title
2004
2005
2006
2007
2008
2009
2010
Source
Currentaccount
balance/GDP
0.113
-1.277
-1.033
-1.3
-2.3
-1.5
-1.6
Derived from Reserve
Bank of India, Central
Statistical Organization
of India
Financing
requirement
-13893.4
-25693.7
-17047.9
-28187
-46976.3
-42238.5
-48043.9
Derived from Reserve
Bank of India
Inward direct
investment
5771.0
7606.0
19662.0
19866.0
25000.0
35000.0
40000.0
Reserve Bank of India
International
reserves
130401.0
136026.0
176105.0
275414.0
311840.0
349152.0
392796.0
Derived from IMF,
International Financial
Statistics
Source: International Monetary Fund, World Economic Outlook Database (October 2007).
* All units in US dollars and millions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Key Indicators: External Debt and External Trade
Title
2006
2007
2008
Source
Total foreign debt
135098.
0
146625.
0
161660.
0
World Bank, Global Development Finance.
Total debt per head
123.3
132.0
144.0
Derived from IMF, International Financial Statistics; World Bank,
Global Development Finance.
Title
2006
2007
2008
Source
Total exports
126331.0
152223.0
176386.0
Derived from Reserve Bank of India
Total imports
190566.0
229060.0
268198.0
Reserve Bank of India.
Source: "Country Data, External debt stock India (February 2008),“ Economist Intelligence Unit.
* All units in US dollars and millions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Key Indicators: Fiscal and Monetary Policy
Title
2006
2007
2008
Source
Budget balance (% of GDP)
-3.461
-3.4
-3.2
Derived from Ministry of Finance, India
Consumer prices (% change)
6.177
6.4
5.8
Labor Bureau of India
Exchange rate LCU:US$ (av.)
45.307
41.333
38.25
IMF, International Financial Statistics
Lending interest rate (%)
11.217
13.1
12.8
IMF, International Financial Statistics
Stock market index
13786.9
Exchange rate LCU:US$ (end-period)
44.245
39.4
37.31
IMF, International Financial Statistics
Secondary exchange rate
47.119
42.99
39.78
Ministry of Finance, Economic Survey
Real effective exchange rate (CPIbased)
106.2
115.6
124.1
EIU calculation
Real effective exchange rate (PPIbased)
99.3
104.2
109.8
EIU calculation
Real effective exchange rate (ULCbased)
54.94
58.74
61.76
EIU calculation
Bombay Stock Exchange
Source: "Country Data, Fiscal and monetary indicators India (February 2008),“ Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/gl: March 2008
Part VI
Legal and Business Issues in India
IEEE Strategic Planning and Research/P. More/gl: March 2008
Options Available to Associations
FORM
Liaison Office
Project Office
Branch Office
Wholly owned
subsidy/JVC
Section 25
Company/Society
Activities
Non income
earning
activities
Execution of a
specific project
Only specified
activities
Any activities,
subject to approval
by the FIPB
Promote commerce,
art, science, religion,
charity, etc.
Restriction
Various
restrictions
Relaxed in the
case of a project
whose approval
has been sought.
Various
Restrictions
Only those imposed
by the FIPB
Must use income for
public purpose. May
not pay dividends.
FCRA approval may
be required.
Direct
Taxation
Not Taxed
Taxed at 40%
plus a 2.5%
surcharge and a
2% education cess
xed at 40%
Taxed at 40%
plus a 2.5%
surcharge and a
2% education
cess
Taxed at 33.66%
May qualify for tax(inclusive of10%
exemption, subject to
surcharge on income certain limitations.
tax, 2% education
cess.)
Approval
Time
3-4 Weeks
3-4 Weeks
4-6 Weeks
4-6 Weeks
3 to 4 months
Regulatory
Authority
RBI
RBI
RBI
FIPB/RBI
RBI, MHA
Source: Jeffrey R. Pankratz, Development Sourcing Advisors LLC, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Foreign Investment Regulatory
Agencies
Foreign Investment Promotion Board
Reserve bank of India
Ministry of Commerce and Industry
Other sector specific agencies
Source: Jeffrey R. Pankratz, Development Sourcing Advisors LLC, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
FDI Regulatory Caps
Private Sector Banking*
Non Banking Financial Companies*
Insurance
Telecommunications**
Petroleum Refining
Housing and Real Estate
Airports
Trading
Power
Drugs and Pharmaceuticals*
Infrastructure
Hotel and Tourism
74%
100%
26%
49%
100%
100%
74%
51%
100%
100%
100%
100%
*subject to restrictions
**may be permitted up to 74% with FIPB approval
Source: Jeffrey R. Pankratz, Development Sourcing Advisors LLC, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Prohibited Sectors
Gambling and betting
Lottery business
Atomic energy
Retail trading (except
single brand)
Approval Required
Defense
Broadcasting
News
Source: Jeffrey R. Pankratz, Development Sourcing Advisors LLC, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Entry Options for Foreign Companies
in India
Operating as an Indian Company (Incorporated
Entity)
– Wholly Owned Subsidiary Company
– Joint Venture with an Indian Partner
Operating as a Foreign Company (Unincorporated
Entity)
– Liaison Office
– Project Office
– Branch Office
Operating through an Agent (Third Party)
– Agent without an Independent Status
– An Independent Agent
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Categories of Company
Main category
– Company limited by guarantee
– Company limited by shares
– Unlimited company
Sub category
–
–
–
–
–
–
–
Union Government Company
State Government Company
Indian Non-Government Company
Subsidiary of Foreign Company
Company licensed under section 25
Guarantee and association Company
Others
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Establishing Liaison/Project/Branch Office
Submit application to:
Chief General Manger
Exchange Control Department
(Foreign Investment Division)
Reserve Bank of India
Central Office
Mumbai
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Incorporating a Section 25 Company
Take RBI approvals, if necessary
Apply for availability of name
Prepare Articles of Association and
Memorandum of Association
Place advertisements in two leading
newspapers
Apply for issue of license under section 25
Apply for incorporation of a company
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Indicative Costs in Mumbai
Monthly (unfurnished) office rent in Mumbai: USD
2/sq. ft. to USD 20/sq. ft.
Monthly (unfurnished) apartment rent in Mumbai:
USD 1/sq. ft. to USD 10/sq. ft.
Commercial electricity rate: USD 0.20/kWh
Monthly salaries of educated clerical staff: ~ USD
500
Display ad rate in newspapers: USD 40 to USD
800 per sq. inch
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Legal System
Multi-level system of courts and administrative
tribunals
Jurisdiction based on territory, size of dispute, other
statutory requirements
Litigation is a lengthy process
Foreign judgments rarely directly executed
Arbitration and conciliation primary dispute
mechanism for foreign business
Source: Jeffrey R. Pankratz, Development Sourcing Advisors LLC, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Arbitration and Reconciliation Act, 1996
– Law relating to alternate redressal of disputes amongst
parties.
Central Excise Act, 1944
– Governs duty levied on manufacture.
Companies Act, 1956
– Governs all Corporate bodies.
Competition Act, 2002
– Law to ensure free and fair competition in the market.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Consumer Protection Act, 1986
– Law relating to protection of consumers from
unscrupulous traders/manufacturers.
Customs Act, 1962
– Deals with import regulations.
Customs Tariff Act, 1975
– The Act puts in place a uniform commodity
classification code based on globally adopted
Harmonized System of Nomenclature (HSN) for use in
all trade-related transactions.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Environment Protection Act, 1986
– Provides framework for seeking environmental
clearances.
Factories Act, 1948
– Law regulating labor in factories.
Foreign Exchange Management Act, 1999
– Regulates foreign exchange transactions
including foreign investment.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Income Tax Act, 1961
– Governs direct taxes on income of all persons, both
corporate and non-corporate as well as residents and
non-residents.
Industrial Disputes Act & Workmen Compensation
Act, 1951
– Labor laws dealing with disputes.
Industries (Development & Regulation) Act, 1951
– An Act to provide for the development and regulation of
certain industries.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Information Technology Act, 1999
– Law governing E-commerce transactions.
Money Laundering Act
– Prevents money laundering and provides for
confiscation of property derived from, or
involved in, money laundering.
Patents Act, Copyright Act, Trade Marks Act
– Protects intellectual property rights.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Central Sales Tax Act, 1956
– Governs the levy of tax on all inter-state sales
in India.
Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest
Act, 2002
– Puts in place securitization and asset
foreclosure laws creating a legal framework for
establishment of Asset Reconstruction
Companies.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Special Economic Zones Act, 2005
– A comprehensive Act :
 Provides for the establishment, development and
management of the Special Economic Zones for the
promotion of Exports and for matters connected
therewith or incidental thereto.
 Provides for fiscal and economic incentives for
developer of / units in SEZ.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Right to Information Act, 2005
– The Act sets out right of every citizen to
access information under the control of public
authorities and to promote transparency and
accountability in the working of every public
authority.
 Provides for constitution of a Central Information
Commission and State Information Commission.
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Societies Registration Act, 1860
– Charitable societies
– Military orphan funds or societies
– Societies established for promotion of science, literature, or
for fine arts
– Societies established for instruction and diffusion of useful
knowledge, diffusion of political education
– Societies established for maintenance of libraries or reading
rooms for general public
– Societies established for Public museums and galleries for
paintings or other works of art, collections of natural history,
mechanical and philosophical inventions, instruments or
designs
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Indian Trusts Act, 1882
–
–
–
–
Relief of poverty or distress
Education
Medical relief
Provision for facilities for recreation or other leisuretime occupation (including assistance for such
provision), if the facilities are provided in the interest of
social welfare and public benefit
– The advancement of any other object of general public
utility, excluding purposes which relate exclusively to
religious teaching or worship
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Laws Governing Business
Societies: A State Subject
– Societies registration is a state subject
– Registered with “Registrar of Societies”
– In Maharashtra, a society must also be
registered as a trust
Trusts: A State Subject
– Trust registration is a state subject
– Registered with “Charity Commissioner”
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Regulatory Authorities
Secretariat for Industrial Assistance (SIA)
Foreign Investment Promotion Board (FIPB)
Project Approval Board (PAB)
Reserve Bank of India (RBI)
Registrar of Companies (ROC)
Securities and Exchange Board of India (SEBI)
Central Board of Excise and Customs (CBEC)
Central Board of Direct Taxes (CBDT)
Authority for Advance Rulings (AAR)
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Corporate Tax In India
Domestic
company
Foreign
company
Where taxable
income exceeds
INR 10 Million
33.99%
42.23%
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
Other cases
30.9%
41.20%
IEEE Strategic Planning and Research/P. More/April 2008
Other Direct Taxes
Individual Residents / Not Ordinary Residents and
Non-Residents
– Maximum rate of 33.99% where taxable income
exceeds INR 1 million
– Maximum rate of 30.9% otherwise
Effective Tax Rates for USA
–
–
–
–
Interest: 10.5575% or 15.83625%
Dividend: 0% (DTAA: 15% or 25%)
Royalty: 10.5575% (DTAA: 10% or 15%)
Fee for Technical Services: 10.5575% (DTAA: 10% or
15%)
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Part VII
Corporate Philanthropy in India
IEEE Strategic Planning and Research/P. More/April 2008
Corporate Philanthropy in India
In India, as in many parts of the world, ethics and philanthropy
In India, as in many parts of the world, ethics and philanthropy in
the nineteenth century took the form of informal, benevolent
actions on the part of merchants and businessmen/industrialists.
The 20th century saw the emergence of the industrial class and
business conglomerates that generated wealth on an
unprecedented scale and created business dynasties.
The favored method of philanthropy for such business houses
led to the establishment of trusts and charitable funds.
The 21st century has now seen the emergence of a new
generation of young entrepreneurs who want to invest in
philanthropy and see the fruit of that investment in their lifetime.
Source: The Conference Board: Going Global: Challenges for Indian Businesses
IEEE Strategic Planning and Research/P. More/April 2008
Correlation Between Ethics and
Philanthropy
The Gandhian perspective of ethics that emerges
from the socio-cultural context of Indian business
defines unethical behavior as:
– politics without principle;
– wealth without work; and
– commerce without morality.
To take the metaphor of the Indian organization as a
human being, organizational identity is derived also
from the urges of the soul (atma), according to R.
Goplalkrishnan, Executive Director, Tata Sons, a
leading conglomerate of diversified businesses
deeply committed to ethically and socially responsible
ways of doing business.
Source: The Conference Board: Going Global: Challenges for Indian Businesses
IEEE Strategic Planning and Research/P. More/April 2008
Business is like a human being: The
body dies and the soul lives on
The mission of the company is to purify the atma
(soul) and not only to beautify the body.
Organizations are thus driven to not only meet
business goals but also live as responsible and
ethical members of a complex social web.
The call of the atma is to a higher purpose of
existence and creation of sustainable value systems
that endure with time.
Organizations naturally evolve to looking beyond
business bottom lines and living as responsible and
ethical citizens of society.
Source: The Conference Board: Going Global: Challenges for Indian Businesses
IEEE Strategic Planning and Research/P. More/April 2008
Part VIII
Entertainment Industry
IEEE Strategic Planning and Research/P. More/April 2008
Emerging Segments: Entertainment
The PC/Console gaming market in India is estimated to grow at
156% from INR 0.85 billion in 2006 to INR 7.5 billion in 2010.
The mobile gaming market in India is expected to grow from INR
1 billion in 2006 to INR 8.5 billion by 2010, a CAGR of 150%.
The internet advertising industry is expected to grow from INR
1.6 billion in 2006 to INR 9.5 billion in 2011, a CAGR of 98%.
The Live Entertainment market is expected to grow at 19%
CAGR from INR 9.4 billion in 2006 to INR 22 billion in 2011.
The out-of-home-media segment is set for exponential growth –
from INR 10 billion in 2006 to INR 22 billion in 2011, a CAGR of
23%.
Rising incomes, the recognition of India as a potential market by
global events and a growing number of television and sports
awards have fuelled this segment.
However, issues like high entertainment tax, lack of world class
infrastructure and unorganized company structures will check
this industry.
Source: Mukta Arts Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Key Developments: Entertainment
Consumer media needs are increasing qualitatively
Digital Cinema emerging powerfully – approx 10% (1,200)
cinemas have gone digital now and the number of digital
cinemas are expected to overtake film by 2011
Emergence of IPTV and Mobile TV platforms for distribution
CAS implementation on the rise
Direct-to-home market commences with a bang with 2 leading
players offering DTH services
Ancillary revenues – Revenues of all digital rights of Cinema up
by 20%
Private Equity companies have acquired over INR 8.8 billion
worth of ownership in Media companies in 2006 ONLY.
Source: Mukta Arts Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Issues facing the Entertainment
Industry
Piracy
– The sheer size of a country like India makes the piracy problem
assume different proportions.
– There remains a lack of government initiative to fight this problem and
the anti-piracy and copyright laws are out of date. Furthermore, a
lengthy legal and arbitration process is also a problem.
Addressability in TV
– The governments inability to enforce addressability means that the
distribution system continues to be analog and fails to give consumers
much choice.
– Subscription revenues to broadcasters and operators for this reason
remain ‘foggy’.
Content Regulation
– How will content be regulated in India? Who will regulate it? Will the
regulations be applied uniformly across mediums? These questions do
not have appropriate answers as yet.
Source: Mukta Arts Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Part IX
Infrastructure
IEEE Strategic Planning and Research/P. More/April 2008
Infrastructure
Investments in Infrastructure have scaled up
substantially over the last four years in India
Investments in Infrastructure to increase from
4.6% of GDP to 8% of GDP
All arms of India’s Infrastructure expected to
grow rapidly due to:
– Huge demand from escalated activities
– Increased private sector participation
– Innovative sources of funding
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Investment Outlay
Sectors
Anticipated investment in 10th Plan
(FY02-FY07)
Projected investment in 11th Plan
(FY07-FY12)
US $bn
Growth
% y-o-y
Electricity
70.5
150.4
113
Roads & Bridges
31.7
76.1
140
Telecom
22.5
65.1
190
Railways
20.3
62.2
207
Irrigation
32.1
53.1
65
Water & Sanitation
15.6
48.6
212
Ports
1.3
18
1266
Airports
2.1
8.5
295
Storage
2.3
5.5
137
Gas
2.1
5
135
Total
201
492
146
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Construction GDP of India
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Transport
Road:
–
–
–
–
Total Length 331,5231 Kms
National Highways 58,112 Kms
1.7 % of the road network carries 40 % of all road traffic
25 % of highway network suffers from congestion
Sea/Waterways:
– Major Ports: 12
– Minor Ports: 184
Air:
– Total Number of airports: 124, International: 12
– Demand for domestic air freight is growing by 7.8 % a year
– Demand for international air freight is growing by 8.1 % a year
Rail:
– Route Length 81000 Kms plus
– Railways carry 30 % of the total freight
IEEE Strategic Planning and Research/P. More/April 2008
Roads
India has the second largest road network in the world
National Highways (NH) with a total of 65,569 km in
length, functions as the arterial network across the nation
Roads carry about 61% of freight and 85% of passenger
traffic
Highways/ Expressways constitute about 66000 kms and
carry 40% of road traffic
India’s road network consists of:
Source- National Highways Authority of India (NHAI)
IEEE Strategic Planning and Research/P. More/April 2008
Roads
PPP in construction and
operation of highways is on the
rise.
About 20 BOT projects, involving
an investment of over 250 mn
USD have been undertaken and
toll is already being collected on
12 such projects.
More than 80 % of the
investment is expected to come
from private sector.
Contractors and Consultants
from around 27 countries are
already in India implementing the
large highway projects
Source: NHAI
IEEE Strategic Planning and Research/P. More/April 2008
Ports
India has a coastline of
7,517 km having 12 major
ports and 181 minor ports,
out of which 139 are
operational.
Major ports are under the
jurisdiction of the Central
Government through the
Port Trust of India and
account for 3/4th of the total
traffic
During 2006- 2007 463.84 MMT of total traffic was
channeled through Major Ports
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Ports
India has a coastline of 7,517 km having 12
major ports and 181 minor ports, out of
which 139 are operational.
Major ports are under the jurisdiction of the
Central Government through the Port Trust
of India and account for 3/4th of the total
traffic
During 2006- 2007 463.84 MMT of total
traffic was channeled through Major Ports
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
World Trade – Asia Rising
Momentum of growth in Developing Asia has shown an uptrend
with Indian economy at No. 2 position after China
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Air Travel
Air Travel is the preferred mode of transport for millions of
people
Domestic traffic has gone up by 48% in the current financial year
Indian Aviation Industry is expected to grow by 25% per annum
Airline Industry is facing tremendous growth in air traffic and AAI
plans to invest 3.75mn USD to modernize non metro airports in
the country
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Airports
There are 449 airports in India. Among these the Airports
Authority of India (AAI) owns and manages 5 international
airports,87 domestic airports and 28 defense airfields
Major four airports at Mumbai, Delhi, Kolkatta & Chennai
account for 63% of India’s passenger traffic & 78% of its freight
traffic.
Privatization of Delhi and Mumbai airports has been one of the
significant reforms in the infrastructure sector
Ministry of Civil Aviation has proposed to develop non metro
airports, state owned airports, Greenfield airports and Private
airports
Estimated investment of about USD 100 mn for airport
development over the next 5 years.
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Rail
IEEE Strategic Planning and Research/P. More/April 2008
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
Rail
Railways in India contribute 2.3% of GDP.
Railways is characterized by an expansive network, spread
across 1,09,221 km encompassing about 6,947 stations and
17.7 million passengers
Railways in India have witnessed a rise of 14% in gross
earnings.
Passenger earnings and freight earnings have grown 13.8% and
15% respectively.
Upgrading the railway sector requires an investment of US $ 56
billion over the next 5 years
At least US $ 15 bn is anticipated to be sourced from debt and
public private partnership
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Rail
Government has identified areas
where private investments
would be considered:
– Dedicated Freight Corridor
– Railway Station modernization
– Manufacturing facilities for
locomotives
– High speed passenger corridors
– Container services
The planned eastern and western
dedicated freight corridor
project is expected to have a budget of
US $ 7.3 billion
Over the next two years rail container
operations sector is projected to
witness an inflow of around US $ 2.43
billion for wagons, logistic parks and
Inland Container Depots (ICD)
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Railway Terminals
Railways preparing a
blueprint to set up Greenfield
railway terminals across the
country
Railways would acquire and
lease out the land to the
private concessionaire and
repossess the assets after
the concession period
Modernization of railway
stations world class
passenger terminals
Modernization will also
include setting up shopping
and food plazas, budget
hotels
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Metro Rails in India
Government Funded
– Kolkata Metro Rail
– Delhi Metro Rail
– Bangalore Metro Rail
On PPP Format
– Hyderabad Metro Rail (Line I,
II & III)
– Kochi Metro Rail
– Mumbai Metro Rail (Phase I, II
& III)
– Delhi Airport Metro Rail Link
– Chandigarh monorail
(planned)
– Chennai monorail (planned)
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Airport Link
Mass Rapid Transit Systems
Delhi International
Airport Link
Bangalore International
Airport Link
Hyderabad International
Airport Link
Cochin International
Airport Link
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Power
India is the sixth largest energy
consumer, accountable for about
3% of the world’s total energy per
year. Electricity consumption in
India amounts to 587.9 billion Kw
and is expected to increase by
approximately 4.5 % up to 2020.
India has a power shortage of 12%
at peak level.
Govt. of India has set up a target of
100,000 MW capacity addition over
2002-2012 to contain power
shortage.
Ongoing huge Investments in
Transmission & Distribution
required to augment the planned
generation capacity and
overhauling the outdated &
inefficient infrastructure
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Power
Hydro power opportunity being given renewed thrust.
More than 35% of the planned capacity addition
during the tenth plan is in hydro power.
Investors are active in this industry from 1991 when
the Industry was opened to private participation
Generation and distribution of power projects of all
types and sizes are permitted.
Foreign equity participation of 100% is permitted
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Total Installed Capacity
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Power
Out of total power generation, State and Central
Government account for 58% and 32%
respectively, whereas private sector accounts for
only 10%
Power generation capacity is anticipated to
increase by about 60,000 MW during 2007-12
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
All India Generating Installed Capacity
(MW) as of 31 July 2007
Source: Ministry of Power, CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Huge power investments led by increased focus on
power reforms
Source: IDFC-SSKI Research; Plan Documents, CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Water Supply and Sanitation Facilities
Increased urbanization in the country has led to a
focus on addressing the backlog in investment in
water and sanitation facilities
Projected Investment in water supply and sanitation
in the Eleventh Plan (INR Bn)
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Urban WSS Investment required for
meeting the MDG
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Infrastructure Finance in India
No longer solely a prerogative of the government
Public Private Partnerships have rolled out projects
successfully
Some of the private investment takes the form of
equity, debt accounts for most of the total
Lending by banks to infrastructure projects grew from
2 % to 15.5 % in the past seven years up to 2005
Corporate bonds have also been the most common
form of infrastructure finance. Foreign investment in
the domestic corporate-bond market is restricted to a
total ceiling of $1.5 billion.
The recent phenomenon of globalizing financial
flows, which has integrated the financial markets all
over the world, has often been seen as a solution
towards financing long-term capital investments in
infrastructure projects.
Multilateral agencies like World Bank and Asian
Development Bank are also funding various
infrastructure projects in India
Private Equity investors are also keen to invest in
infrastructure projects looking at the luring returns
Source: CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Bank Lending to Infrastructure on the Rise
Source: RBI, CII Initiative for the U.S. Delegates, Kshitiz Bhasker, Gammon, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
Part X
Megacities
IEEE Strategic Planning and Research/P. More/April 2008
Wealth
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Air Pollution
Particulate matter smaller
than 10 micrometers in
diameter (pm10) is the most
dangerous to human health,
because it can pass through
the nose and throat and enter
the lungs—leading to asthma,
lung cancer, cardiovascular
problems, and premature
death.
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Services
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
A tangle of wires bring electricity to shops in
Mumbai’s bustling Crawford Market –
Photograph by Elton Iron
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Local power failures - such as this one in June 2006,
when an entire neighborhood was plunged into
darkness – might be a harbinger of things to come –
Photograph by Michael Kohli
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Birds on wires,
attracted to
garbage, in slums
like Dharavi, often
cause shorts that
knock out power in
entire
neighborhoods.
Photograph by
Adrian Fisk
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Engineers at Tata Power Co.’s Trombay thermal power
plant monitor generators and the grid from the control
room - Photograph by Harry Goldstein
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
This simple model at Tata Powers Co.’s load dispatch center was created to
help visitors understand Tata’s islanding scheme. In this picture, the
Maharashtra state grid and the Mumbai grid are in perfect harmony, at the
specified frequency of 50 hertz, a situation that never exists in reality. Photograph by Harry Goldstein
Source: June 2007 IEEE Spectrum ‘Megacities’
IEEE Strategic Planning and Research/P. More/April 2008
Part XI
Appendices
IEEE Strategic Planning and Research/P. More/April 2008
Part XI
Part A. Demographic Appendices
IEEE Strategic Planning and Research/P. More/April 2008
I. Distribution of Workers by Population (States 1-19)
Total Worker
S.No.
State / UT
Person
Male
Main Worker
Female
Person
Male
Female
Person
Male
Female
72,857,170
89,229,741
34,866,663
54,363,078
1
India
2
Andaman & Nicobar
Islands
136,254
109,162
27,092
113,607
97,349
16,258
22,647
11,813
10,834
3
Andhra Pradesh
34,893,859
21,662,192
13,231,667
29,040,873
19,455,492
9,585,381
5,852,986
2,206,700
3,646,286
4
Arunachal Pradesh
482,902
293,612
189,290
415,007
267,384
147,623
67,895
26,228
41,667
5
Assam
9,538,591
6,870,960
2,667,631
7,114,097
5,849,032
1,265,065
2,424,494
1,021,928
1,402,566
6
Bihar
27,974,606
20,483,003
7,491,603
21,052,875
17,511,018
3,541,857
6,921,731
2,971,985
3,949,746
7
Chandigarh
340,422
284,419
56,003
328,989
277,050
51,939
11,433
7,369
4,064
8
Chhattisgarh
9,679,871
5,531,859
4,148,012
7,054,595
4,742,935
2,311,660
2,625,276
788,924
1,836,352
9
Dadra & Nagar Haveli
114,122
75,835
38,287
96,184
71,156
25,028
17,938
4,679
13,259
10
Daman & Diu
72,791
60,569
12,222
67,522
58,874
8,648
5,269
1,695
3,574
11
Delhi
4,545,234
3,960,101
585,133
4,317,516
3,794,345
523,171
227,718
165,756
61,962
12
Goa
522,855
375,218
147,637
425,305
326,993
98,312
97,550
48,225
49,325
13
Gujarat
21,255,521
14,477,286
6,778,235
17,025,074
13,480,566
3,544,508
4,230,447
996,720
3,233,727
14
Haryana
8,377,466
5,715,526
2,661,940
6,241,324
4,933,004
1,308,320
2,136,142
782,522
1,353,620
15
Himachal Pradesh
2,992,461
1,686,658
1,305,803
1,963,882
1,333,361
630,521
1,028,579
353,297
675,282
16
Jammu & Kashmir
3,753,815
2,679,941
1,073,874
2,608,668
2,226,958
381,710
1,145,147
452,983
692,164
17
Jharkhand
10,109,030
6,659,856
3,449,174
6,446,782
5,134,067
1,312,715
3,662,248
1,525,789
2,136,459
18
Karnataka
23,534,791
15,235,355
8,299,436
19,364,759
13,896,845
5,467,914
4,170,032
1,338,510
2,831,522
19
Kerala
10,283,887
7,765,645
2,518,242
8,236,973
6,460,693
1,776,280
2,046,914
1,304,952
741,962
Source: Indian Census 2001.
402,234,724 275,014,476 127,220,248 313,004,983 240,147,813
Marginal Worker
IEEE Strategic Planning and Research/P. More/April 2008
II. Distribution of Workers by Population (States 20-36)
Total Worker
S.No.
Main Worker
Marginal Worker
State / UT
Person
Male
Female
Person
Male
Female
Person
Male
Female
20
Lakshadweep
15,354
13,204
2,150
11,710
10,288
1,422
3,644
2,916
728
21
Madhya Pradesh
25,793,519
16,194,368
9,599,151
19,102,572
14,056,279
5,046,293
6,690,947
2,138,089
4,552,858
22
Maharashtra
41,173,351
26,852,095
14,321,256
34,748,053
24,416,295
10,331,758
6,425,298
2,435,800
3,989,498
23
Manipur
945,213
527,216
417,997
659,364
430,227
229,137
285,849
96,989
188,860
24
Meghalaya
970,146
568,491
401,655
757,011
485,694
271,317
213,135
82,797
130,338
25
Mizoram
467,159
263,008
204,151
362,450
225,428
137,022
104,709
37,580
67,129
26
Nagaland
847,796
488,968
358,828
703,977
424,811
279,166
143,819
64,157
79,662
27
Orissa
14,276,488
9,802,006
4,474,482
9,589,269
8,004,740
1,584,529
4,687,219
1,797,266
2,889,953
28
Pondicherry
342,655
258,670
83,985
317,367
245,205
72,162
25,288
13,465
11,823
29
Punjab
9,127,474
6,960,213
2,167,261
7,835,732
6,426,028
1,409,704
1,291,742
534,185
757,557
30
Rajasthan
23,766,655
14,695,802
9,070,853
17,436,888
12,841,318
4,595,570
6,329,767
1,854,484
4,475,283
31
Sikkim
263,043
165,716
97,327
212,904
146,541
66,363
50,139
19,175
30,964
32
Tamil Nadu
27,878,282
18,100,397
9,777,885
23,757,783
16,303,310
7,454,473
4,120,499
1,797,087
2,323,412
33
Tripura
1,159,561
831,346
328,215
912,292
742,054
170,238
247,269
89,292
157,977
34
Uttar Pradesh
53,983,824
40,981,558
13,002,266
39,337,649
34,338,260
4,999,389
14,646,175
6,643,298
8,002,877
35
Uttaranchal
3,134,036
1,996,177
1,137,859
2,322,347
1,639,242
683,105
811,689
356,935
454,754
36
West Bengal
29,481,690
22,388,044
7,093,646
23,023,583
19,494,971
3,528,612
6,458,107
2,893,073
3,565,034
Source: India Census 2001.
IEEE Strategic Planning and Research/P. More/April 2008
Part XI
Part B. Economic and Financial
Appendices
IEEE Strategic Planning and Research/P. More/April 2008
I. Real Expenditure on GDP
Title
2004
2005
2006
2007
2008
2009
2010
Source
Real GDP
26022.4
28424.8
31083.6
33494.2
35993.4
38568.3
41399.4
Central Statistical Organization
Real private
consumption
15691.3
16750.3
17787
18786
19849.4
21117
22440.9
Central Statistical Organization
Real government
consumption
2787.6
3060.9
3337.1
3696.59
4066.25
4350.89
4742.47
Central Statistical Organization
Real gross fixed
investment
6573.2
7578.1
8686.2
9940.04
11144.2
12370.1
13730.8
Central Statistical Organization
Real stock building
466.3
788.2
868.4
899.54
900
900
900
Central Statistical Organization
Real exports of G&S
4699
4976.8
5407.2
5706.16
6128.9
6664.96
7289.99
Central Statistical Organization
Real imports of G&S
4115.4
4539.2
5058.7
5534.11
6095.33
6834.64
7704.72
Central Statistical Organization
Real domestic demand
25518.4
28177.5
30678.7
33322.2
35959.9
38738
41814.1
Derived from Central Statistical
Organization
Real GDP (PPP US$ at
2005 prices)
2226.32
2431.85
2659.32
2865.56
3079.38
3299.67
3541.88
EIU calculation
Real GDP (US$ at
2005 prices)
737.492
805.577
880.93
949.248
1020.08
1093.05
1173.29
EIU calculation
Real private
consumption (US$ at
2005 prices)
436.78
466.258
495.116
522.924
552.524
587.809
624.66
EIU calculation
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
II. Real Government Consumption, Real
Expenditures on GDP
Title
2004
2005
2006
2007
2008
2009
2010
Source
Real government consumption
(US$ at 2005 prices)
83.194
91.351
99.594
110.322
121.355
129.849
141.536
EIU calculation
Real gross fixed investment (US$
at 2005 prices)
209.93
249.497
284.934
323.255
359.18
395.738
436.316
EIU calculation
Real exports of G&S (US$ at 2005
prices)
154.614
163.754
177.916
187.752
201.662
219.301
239.866
EIU calculation
Real imports of G&S (US$ at 2005
prices)
170.078
187.593
209.062
228.71
251.903
282.457
318.415
EIU calculation
Real domestic demand (US$ at
2005 prices)
729.904
807.106
879.644
956.501
1033.06
1113.4
1202.51
EIU calculation
Rebasing residual (US$ at 2005
prices)
23.052
22.31
32.432
33.704
37.261
42.812
49.324
EIU calculation
GDP (% real change)
8.325
9.232
9.354
7.8
7.5
7.2
7.3
Derived from Central
Statistical Organization
Private consumption (% real
change)
5.379
6.749
6.189
5.6
5.7
6.4
6.3
Derived from Central
Statistical Organization
Government consumption (% real
change)
5.407
9.804
9.023
10.8
10
7
9
Derived from Central
Statistical Organization
Gross fixed investment (% real
change)
11.772
15.288
14.622
14.4
12.1
11
11
Derived from Central
Statistical Organization
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
III. Real Expenditures on GDP (Cont’d), Contribution
to Real GDP Growth
Title
2004
2005
2006
2007
2008
2009
2010
Exports of G&S (% real change)
28.132
5.912
8.648
5.5
7.4
8.7
9.4
Imports of G&S (% real change)
12.305
10.298
11.445
9.4
10.1
12.1
12.7
Domestic demand (% real change)
8.283
10.42
8.877
8.6
7.9
7.7
7.9
Private consumption, contribution to real
GDP growth (% points)
3.334
4.07
3.647
3.2
3.2
3.5
3.4
Government consumption, contribution to
real GDP growth (% points)
0.595
1.05
0.972
1.2
1.1
0.8
1.0
Gross fixed investment, contribution to real
GDP growth (% points)
2.882
3.862
3.898
4.0
3.6
3.4
3.5
Stock building, contribution to real GDP
growth (% points)
1.315
1.237
0.282
0.1
359.18
395.738
436.316
External balance, contribution to real GDP
growth (% points)
2.418
-0.561
-0.313
-0.6
-0.4
-0.6
-0.6
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
* All data derived from India’s Central Statistical Organization.
IEEE Strategic Planning and Research/P. More/April 2008
IV. Nominal Expenditure on GDP
Title
2004
2005
2006
2007
2008
2009
2010
Source
Nominal GDP
31266.0
35671.8
41257.3
46240.0
52413.5
59785.1
67827.6
Central Statistical Organization
Nominal private
consumption
18656.5
20646.4
23273.3
26252.3
29245.0
32579.0
36162.7
Central Statistical Organization
Nominal government
consumption
3425.4
4045.1
4677.0
5512.33
6417.23
7244.52
8310.63
Central Statistical Organization
Nominal gross fixed
investment
8227.9
10007.6
12165.5
14617.6
17208
20055.9
23375.1
Central Statistical Organization
Nominal GDP (US$
at PPP)
2161.13
2431.85
2743.28
3031.18
3326.18
3660.72
4032.7
EIU calculation. Based on
figures from World Bank,
World Development Indicators.
Nominal GDP (US$)
692.737
805.578
922.757
1131.38
1380.44
1649.53
1914.68
Derived from Central Statistical
Organization
Nominal private
consumption (US$)
413.358
466.258
520.529
642.329
770.24
898.885
1020.82
Derived from Central Statistical
Organization
Nominal government
consumption (US$)
75.894
91.351
104.605
134.873
169.014
199.883
234.598
Derived from Central Statistical
Organization
Nominal gross fixed
investment (US$)
182.299
226.002
272.092
357.658
453.214
553.361
659.848
Derived from Central Statistical
Organization
Nominal stock
building (US$)
14.134
23.495
26.978
31.808
34.239
35.868
36.697
Derived from Central Statistical
Organization
Source: "Country Data, Gross Domestic Product India (February 2008),“ Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
V. Nominal Expenditure on GDP, Structure of GDP
Title
2004
2005
2006
2007
2008
2009
2010
Nominal exports of G&S (US$)
126.08
163.754
212.0
250.007
295.267
338.3
385.59
Nominal imports of G&S (US$)
138.687
187.593
238.11
285.296
341.536
376.771
422.876
Nominal domestic demand (US$)
685.685
807.106
924.204
1166.67
1426.71
1688.0
1951.97
Private consumption (% of GDP)
59.67
57.879
56.41
56.8
55.8
54.5
53.3
Government consumption (% of
GDP)
10.956
11.34
11.336
11.9
12.2
12.1
12.3
Gross fixed investment (% of GDP)
26.316
28.055
29.487
31.6
32.8
33.5
34.5
Stock building (% of GDP)
2.04
2.917
2.924
2.8
2.5
2.2
1.9
Exports of G&S (% of GDP)
18.2
20.328
22.975
22.1
21.4
20.5
20.1
Imports of G&S (% of GDP)
20.02
23.287
25.804
25.2
24.7
22.8
22.1
Domestic demand (% of GDP)
98.982
100.19
100.157
103.1
103.4
102.3
101.9
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
* All data derived from India’s Central Statistical Organization.
IEEE Strategic Planning and Research/P. More/April 2008
VI. GDP Deflators
Title
2004
2005
2006
2007
2008
2009
2010
GDP deflator (2005=100; av.)
95.741
100.0
105.765
110.0
116.0
123.5
130.6
GDP deflator (% change; av.)
4.369
4.449
5.765
4.0
5.5
6.4
5.7
Private consumption deflator
(2005=100; av.)
96.46
100.0
106.153
113.4
119.5
125.2
130.7
Private consumption deflator (%
change; av.)
3.571
3.669
6.153
6.8
5.4
4.7
4.5
Government consumption deflator
(2005=100; av.)
92.982
100.0
106.052
112.8
119.4
126
132.6
Government consumption deflator
(% change; av.)
4.612
7.547
6.052
6.4
5.8
5.5
5.2
Fixed investment deflator
(2005=100; av.)
94.786
100.0
106.055
111.4
116.9
122.8
128.9
Fixed investment deflator (%
change; av.)
7.128
5.501
6.055
5.0
5.0
5.0
5.0
Export deflator (2005=100; av.)
83.116
100.0
120.314
122.9
125.5
126.3
128.6
Export deflator (% change; av.)
8.904
20.314
20.314
2.2
2.2
0.6
1.9
Import deflator (2005=100; av.)
83.114
100.0
115
115.1
116.3
109.2
106.2
Import deflator (% change; av.)
25.703
20.317
15
0.1
1.0
-6.1
-2.7
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All data derived from India Central Statistical Organization.
IEEE Strategic Planning and Research/P. More/April 2008
VII. Origin of GDP, National Savings
Title
2004
2005
2006
2007
2008
2009
2010
Source
Real GDP at factor
cost
23896.6
26045.3
28481.6
30745.7
33117.3
35510.1
38125.1
Central Statistical
Organization
Real agriculture
4830.8
5121.47
5258.75
5395.48
5519.57
5629.96
5742.56
Central Statistical
Organization
Real industry
6233.27
6830.28
7576.41
8311.32
9059.34
9765.97
10498.4
Central Statistical
Organization
Real manufacturing
3611.15
3939.56
4425.03
4880.81
5334.72
5777.5
6239.71
Central Statistical
Organization
Real services
12832.5
14093.6
15646.4
17038.9
18538.4
20114.1
21884.2
Central Statistical
Organization
Agriculture (% real
change)
-0.04
6.017
2.68
2.6
2.3
2.0
2.0
Derived from Central
Statistical Organization
Industry (% real
change)
9.751
9.578
10.924
9.7
9.0
7.8
7.5
Derived from Central
Statistical Organization
Manufacturing (%
real change)
8.651
9.094
12.323
10.3
9.3
8.3
8.0
Derived from Central
Statistical Organization
Services (% real
change)
9.552
9.827
11.018
8.9
8.8
8.5
8.8
Derived from Central
Statistical Organization
Gross national
savings rate (%)
28.355
29.822
30.951
32.7
32.8
34.1
34.7
Derived from IMF,
International Financial
Statistics
Gross national
savings/investment
100.399
95.895
96.771
96.1
93.5
95.7
95.6
Derived from Central
Statistical Organization
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
VIII. Ratios, Growth and Productivity, Production
Indicators
Title
2004
2005
2006
2007
2008
2009
2010
Source
Agriculture/GDP
18.79
18.304
17.525
16.7
15.9
15.1
14.4
Derived from Central Statistical
Organization
Industry/GDP
27.464
27.633
27.891
28.4
28.8
29.0
29.0
Derived from Central Statistical
Organization
Services/GDP
53.746
54.063
54.583
54.9
55.3
55.9
56.6
Derived from Central Statistical
Organization
Labor productivity
growth (%)
6.4
6.8
6.7
5.3
5.0
4.7
5.0
EIU calculation
Total factor productivity
growth (%)
4.8
5.2
4.9
3.0
2.6
2.3
2.6
EIU calculation
Growth of real capital
stock (%)
7.8
8.8
9.6
10.4
10.6
10.7
10.7
EIU calculation
Growth of real potential
output (%)
8.5
9.7
9.5
7.9
7.6
7.2
7.7
EIU calculation
Industrial production
(2005=100; av.)
92.671
100.0
110.548
121.9
133.5
144.2
155.0
EIU calculation
Industrial production (%
change pa)
8.471
7.909
10.548
10.2
9.5
8.0
7.5
Central Statistical Organization of
India
Petroleum production
(b/d)
780.0
798.0
800.0
820.0
840.0
850.0
870.0
International Energy Agency
(IEA)
Petroleum reserves
(barrels)
5700.0
5900.0
5700.0
5700.0
5700.0
5700.0
5800.0
OPEC Annual Statistical Bulletin
Source: "Country Data, Gross Domestic Product India (February 2008)," Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
IX. Current Account of Foreign Payments
Title
2004
2005
2006
2007
2008
2009
2010
Current-account balance
781.0
-10285.0
-9529.0
-15151.0
-31557.0
-25125.0
-30410.0
Goods: exports
77939.0
102175.0
122963.0
148165.0
171684.0
192739.0
217404.0
Goods: imports
-105975.0
-149430.0
-185041.0
-222419.0
-260423.0
-284644.0
-318274.0
Trade balance
-28036.0
-47255.0
-62078.0
-74254.0
-88739.0
-91905.0
-100869.0
Services: credit
38282.0
525270
71200.0
78758.0
92714.3
111743.0
131643.0
Services: debit
-25206.0
-32549.0
-40160.0
-51500.0
-67208.0
-81316.0
-101942.0
Services: balance
13076.0
19978.0
31040.0
27258.0
25506.3
30427.2
29700.9
Income: credit
4690.0
5646.0
8223.0
13666.0
16034.6
18650.7
24133.5
Income: debit
-8742.0
-12296.0
-13769.0
-17029.0
-21106.0
-26208
-34345.0
Income: balance
-4052.0
-6650.0
-5546.0
-3363.0
-5071.4
-7557.1
-10212.0
Current transfers: credit
20615.0
24512.0
28377.0
36829.0
38724.6
46273.2
53711.4
Current transfers: debit
-822.0
-870.0
-1322.0
-1621.0
-1977.7
-2363.2
-2741.2
Current transfers:
balance
19793.0
23642.0
27055.0
35208.0
36746.9
43910.0
50970.2
Source: "Country Data, Foreign payments India (February 2008)," Economist Intelligence Unit.
•* All units in $US and millions, unless otherwise noted.
•All data from the Reserve Bank of India.
IEEE Strategic Planning and Research/P. More/April 2008
X. Financing of Foreign Payments
Title
2004
2005
2006
2007
2008
2009
2010
Source
Financing requirement
-13893.4
-25693.7
-17047.9
-28187.0
-46976.3
-42238.5
-48043.9
Derived from Reserve Bank of
India
Principal repayments due
-14674.4
-15408.7
-7518.9
-13036.0
-15419.2
-17113.7
-17633.8
World Bank, Global Development
Finance.
M & LT debt inflows
21563.2
19613.8
20324.7
24500.0
23400.0
23300.0
23700.0
World Bank, Global Development
Finance.
Commercial bank loans
6149.5
7903.5
10200.0
9000.0
7000.0
6000.0
6000.0
World Bank, Global Development
Finance.
Officially guaranteed
loans
8884.1
6641.4
5270.7
10000.0
10900.0
11800.0
12200.0
World Bank, Global Development
Finance.
International bond issues
6529.5
5069.0
4854.0
5500.0
5500.0
5500.0
5500.0
World Bank, Global Development
Finance.
Inward direct investment
5771.0
7606.0
19662.0
19866.0
25000.0
35000.0
40000.0
Reserve Bank of India
Outward direct investment
-2179.0
-2978.0
-12842.0
-12997.0
-15000.0
-20000.0
-25000.0
Reserve Bank of India
Net direct investment
flows
3592.0
4628.0
6820.0
6869.0
10000.0
15000.0
15000.0
Reserve Bank of India
Inward portfolio
investment)
5342.2
16110.4
6303.3
23494.0
24992.7
25291.0
30406.8
Reserve Bank of India
Net portfolio investment
flows
5342.2
16110.4
6303.3
23494.0
24992.7
25291.0
30406.8
Reserve Bank of India
Source: "Country Data, Foreign payments India (February 2008)," Economist Intelligence Unit.
* All figures in US dollars and millions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XI. Financing of Foreign Payments (Cont’d),
International Reserve, Current Account Ratios
Title
2004
2005
2006
2007
2008
2009
2010
Source
Change in
international reserves
-28140.0
-5625.0
-40079.0
-99309.0
-36426.2
-37311.6
-43644.3
Derived from IMF, International
Financial Statistics
Stock of inward
foreign direct
investment
44495.0
51136.0
72334.0
92200.0
117200.0
152200.0
192200.0
IMF, International Financial
Statistics
Stock of outward
foreign direct
investment
10033.0
12965.0
23969.0
36966.0
51966.0
71966.0
96966.0
IMF, International Financial
Statistics
International reserves
130401.0
136026.0
176105.0
275414.
0
311840.0
349152.0
392796.0
Derived from IMF, International
Financial Statistics
Foreign-exchange
reserves
126593.0
131924.0
170738.0
267414.
0
304840.0
342152.0
385796.0
IMF, International Financial
Statistics
Gold, national
valuation
3808.0
4102.0
5367.0
8000.0
7000.0
7000.0
7000.0
IMF, International Financial
Statistics
Import cover (months)
11.929
8.97
9.384
12.1
11.4
11.4
11.2
Derived from IMF, International
Financial Statistics
Current-account
balance/GDP
0.113
-1.277
-1.033
-1.3
-2.3
-1.5
-1.6
Derived from Reserve Bank of
India, Central Statistical
Organization of India
Trade balance/GDP
-4.047
-5.866
-6.727
-6.6
-6.4
-5.6
-5.3
Derived from Reserve Bank of
India, Central Statistical
Organization of India
Source: "Country Data, Foreign payments India (February 2008),“ Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/April 2008
XII. Current Account Ratios (Cont’d), Foreign Direct
Investment Ratios
Title
2004
2005
2006
2007
2008
2009
2010
Source
Services balance/GDP
1.888
2.48
3.364
2.4
1.8
1.8
1.6
Derived from Reserve Bank of India,
Central Statistical Organization of India
Income balance/GDP
-0.585
-0.825
-0.601
-0.3
-0.4
-0.5
-0.5
Derived from Reserve Bank of India,
Central Statistical Organization of India
Current-transfers
balance/GDP
2.857
2.935
2.932
3.1
2.7
2.7
2.7
Derived from Reserve Bank of India,
Central Statistical Organization of India
Inward foreign direct
investment/GDP
0.833
0.944
2.131
1.8
1.8
2.1
2.1
Derived from IMF International Financial
Statistics, Central Statistical
Organization of India
Inward foreign direct
investment/gross fixed
investment
3.166
3.365
7.226
5.6
5.5
6.3
6.1
Derived from IMF International Financial
Statistics, Central Statistical
Organization of India
Stock of inward foreign direct
investment per head
41.777
47.337
66.037
83
104.1
133.5
166.4
Derived from IMF International Financial
Statistics, Central Statistical
Organization of India
Stock of inward foreign direct
investment/GDP
6.423
6.348
7.839
8.1
8.5
9.2
10.0
Derived from IMF International Financial
Statistics, Central Statistical
Organization of India
Stock of outward foreign
direct investment/GDP
1.448
1.609
2.598
3.3
3.8
4.4
5.1
Derived from IMF International Financial
Statistics, Central Statistical
Organization of India
Source: "Country Data, Foreign payments India (February 2008)," Economist Intelligence Unit.
IEEE Strategic Planning and Research/P. More/April 2008
XIII. Foreign Debt Stock and Ratios
Title
2006
2007
2008
Source
Total foreign debt
135098.0
146625.0
161660.0
World Bank, Global Development Finance.
Public medium & long term
84477.0
91120.0
98948.8
World Bank, Global Development Finance.
Private medium & long term
38649.5
44129.0
47491.5
World Bank, Global Development Finance.
Short term
11971.0
11376.0
15219.3
World Bank, Global Development Finance.
Total debt per head
123.3
132.0
144.0
Derived from IMF, International Financial
Statistics; World Bank, Global Development
Finance.
Total debt/exports of G&S
59.231
53.2
50.8
Derived from IMF, International Financial
Statistics; World Bank, Global Development
Finance.
Total debt/GDP
14.641
13.0
11.7
Derived from IMF, International Financial
Statistics; World Bank, Global Development
Finance.
International reserves/total debt
130.354
187.8
192.9
Derived from IMF, International Financial
Statistics; World Bank, Global Development
Finance.
Source: "Country Data, External debt stock India (February 2008),“ Economist Intelligence Unit.
* All units in US dollars and millions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XIV. Volume and Prices
Title
Units
2006
2007
2008
Source
Export volume of goods (% change)
million
14.8
8.9
9.2
Reserve Bank of India
Import volume of goods (% change)
million
21.3
9.2
10.1
Reserve Bank of India
114.8
125
136.5
EIU calculation
121.3
132.4
145.7
EIU calculation
102.1
112.3
122.3
EIU calculation
Export volume of goods (2005=100)
Import volume of goods (1996=100)
million
Export prices (US$, 2005=100)
Import prices (US$, 2005=100)
billion
108.7
117.9
127.5
EIU calculation
Export prices (% change pa; US$)
billion
2.1
10.0
8.9
Reserve Bank of India
Import prices (% change pa; US$)
billion
8.7
8.5
8.1
Reserve Bank of India
Terms of trade (1990=100)
billion
115.9
117.5
118.4
Derived from Reserve
Bank of India
Source: "Country Data, External trade India (February 2008)," Economist Intelligence Unit.
* All units in US dollars, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XV. Budgetary Indicators
Title
2006
2007
2008
Source
Budget balance (% of GDP)
-3.461
-3.4
-3.2
Derived from Ministry of Finance, India
Budget revenue
4401.99
5844.14
7116.84
Ministry of Finance, India
Budget expenditure
5829.92
7400.83
8809.83
Ministry of Finance, India
Budget balance
-1427.93
-1556.68
-1692.99
Ministry of Finance, India
Debt interest payments
1495.53
1531.81
1711.06
Ministry of Finance, India
Primary balance
67.6
-24.874
18.073
Ministry of Finance, India
Public debt
24735.6
27292.3
29985.3
Derived from IMF, Government Finance Statistics
Yearbook
Budget revenue (% of GDP)
10.67
12.6
13.6
Derived from Ministry of Finance, India
Budget expenditure (% of GDP)
14.131
16.0
16.8
Derived from Ministry of Finance, India
Debt interest payments (% of
GDP)
3.625
3.3
3.3
Derived from Ministry of Finance, India
Primary balance (% of GDP)
0.164
-0.1
109.8
Derived from Ministry of Finance, India
Public debt (% of GDP)
59.955
59.0
57.2
Derived from IMF, International Financial
Statistics
Source: "Country Data, Fiscal and monetary indicators India (February 2008),“ Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XVI. Money Supply and Interest Rates
Title
2006
2007
2008
Source
Stock of domestic credit
26143.0
32934.0
38286.0
IMF, International Financial Statistics
Domestic credit growth (%)
21.284
26.0
16.3
IMF, International Financial Statistics
Stock of money M1
8600.5
9939.2
11516
IMF, International Financial Statistics
Stock of quasi money
20361.0
26546.0
30898.0
IMF, International Financial Statistics
Stock of money M2
28962.0
36485.0
42414.0
Derived from IMF, International Financial
Statistics
M1 (%)
19.237
15.6
15.9
Derived from IMF, International Financial
Statistics
M2 (%)
21.647
26.0
16.3
Derived from IMF, International Financial
Statistics
Lending interest rate (%)
11.217
13.1
12.8
IMF, International Financial Statistics
Deposit interest rate (%)
7.213
7.5
7.1
Reserve Bank of India
Money market interest rate (%)
6.0
6.0
5.8
Reserve Bank of India
Long-term bond yield (%)
7.6
7.9
7.5
Bloomberg
Consumer prices (% change; av.)
6.177
6.4
5.8
Labor Bureau of India
Consumer price index (av.)
122.92
130.8
138.4
Labor Bureau of India
Consumer price index (2005=100; av.)
106.18
113.0
119.6
EIU calculation
Source: "Country Data, Fiscal and monetary indicators India (February 2008)," Economist Intelligence Unit.
8 All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XVII. Money Supply and Interest Rates
(Cont’d)
Title
2006
2007
2008
Source
Consumer price index (end-period)
126.968
133.8
141.4
Labor Bureau of India
Consumer prices (% change pa; end-period)
6.884
5.4
5.7
Labor Bureau of India
Producer prices (% change; av.)
4.819
4.864
4.7
Ministry of Commerce and
Industry
Producer price index (av.)
203.017
212.892
222.9
Ministry of Commerce and
Industry
Producer price index (2005=100; av.)
104.819
109.917
115.1
EIU calculation
Average nominal wage index (LCU, 2005=100)
109.0
119.4
129.0
EIU calculation
Average nominal wages (% change)
9
9.5
8.1
ILO Yearbook of Labor statistics
Average real wage index (LCU, 2005=100)
102.7
105.7
107.9
EIU calculation
Average real wages (% change)
2.7
2.9
2.1
Derived from ILO labor statistics
Unit labor cost index (US$, 2005=100)
100.2
114.7
128.2
EIU calculation
Unit labor costs (% change pa)
0.2
14.5
11.7
EIU calculation
Labor costs per hour
0.6
0.75
0.92
Derived from ILO labor statistics
Source: "Country Data, Fiscal and monetary indicators India (February 2008),“ Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XVIII. Quarterly Indicators: GDP
Title
2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
Source
Real GDP
7879.53
7044.08
7189.65
8216.66
8633.2
7693.42
7820.69
Central Statistical
Organization, India
Real GDP (US$
at 1996 prices)
221.716
198.208
202.304
231.203
242.923
216.48
220.061
EIU calculation
GDP (% real
change)
10.903
8.113
10.729
9.021
9.565
9.218
8.777
Derived from Central
Statistical Organization, India
GDP (% real
change periodon-period)
4.547
-10.603
2.067
14.285
5.069
-10.886
1.654
Derived from Central
Statistical Organization, India
Nominal GDP
9896.54
9126.93
9532.03
11026.8
11571.5
10605.1
10801.7
Central Statistical
Organization, India
Nominal GDP
(US$)
222.883
200.721
205.563
245.125
261.962
257.191
266.545
Derived from Central
Statistical Organization, India
Source: "Country Data, Quarterly indicators India (February 2008),“ Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XIX. Quarterly Indicators: Output and Demand,
Exchange Rate, Budget
Title
2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
Source
Industrial production
index
239.033
232.5
237.933
248.833
268.933
256.367
258.433
Central Statistical Organization of
India
Industrial production
(1996=100; av.)
110.298
107.283
109.79
114.82
124.094
118.296
119.249
EIU calculation
Industrial production (%
change)
8.734
10.451
11.811
11.219
12.509
10.265
8.616
Derived from Central Statistical
Organization of India
Petroleum production
(b/d)
770.0
790.0
770.0
820.0
820.0
855.652
798.609
OPEC, Annual Statistical Bulletin;
Oil and Gas Journal; IEA
Budget balance (% of
GDP)
-3.85
-8.518
-0.915
-0.761
-4.143
-10.599
2.889
Derived from IMF, International
Financial Statistics
Budget revenue
1355.23
537.3
1117.53
1233.84
1513.32
674.96
1691.96
IMF, International Financial
Statistics
Budget expenditure
1736.24
1314.7
1204.74
1317.77
1992.71
1799.0
1379.92
Derived from IMF, International
Financial Statistics
Budget balance (mil.)
-381.01
-777.4
-87.21
-83.93
-479.39
-1124.04
312.04
Derived from IMF, International
Financial Statistics
Budget revenue (% of
GDP)
13.694
5.887
11.724
11.19
13.078
6.364
15.664
Derived from IMF, International
Financial Statistics
Budget expenditure (%
of GDP)
17.544
14.405
12.639
11.951
17.221
16.964
12.775
Derived from IMF, International
Financial Statistics
Source: "Country Data, Quarterly indicators India (February 2008),“ Economist Intelligence Unit.
* All units in LCU and billions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XX. Quarterly Indicators: Money Supply and
Interest Rate
Title
2006Q1
2006Q2
2006Q3
2006Q4
Stock of domestic
credit
23470.3
23864.7
25389.9
26143
Lending interest
rate (%)
10.8
11.133
11.433
11.5
12.333
13.3
13.3
11.5
IMF, International
Financial Statistics
Deposit interest
rate (%)
5.833
5.833
5.833
5.833
5.833
5.833
5.833
5.833
Reserve Bank of
India
Money market
interest rate (%)
5.5
5.75
6.0
6.0
6.0
6.0
6.0
6.0
MMkt Rate:
Bombay Interbank
(%)
Consumer prices
(% change; av.)
4.88
6.333
6.605
6.845
7.003
6.319
6.702
Reserve Bank of
India
Consumer price
index (av.)
119
121.333
124.333
127
127.333
129
132.667
Reserve Bank of
India
Consumer price
index (1996=100;
av.)
102.794
104.809
107.401
109.704
109.992
111.432
114.599
EIU calculation
Producer prices
(% change; av.)
3.987
4.575
5.11
5.563
6.446
5.519
4.262
Source: "Country Data, Quarterly indicators India (February 2008),“ Economist Intelligence Unit.
* Blank cells denote unavailability of information.
* All units in LCU and billions, unless otherwise noted.
2007Q1
2007Q2
2007Q3
2007Q
4
Source
IMF, International
Financial Statistics
3.338
Reserve Bank of
India
IEEE Strategic Planning and Research/P. More/April 2008
XXI. Quarterly Indicators: Financial Indicators
Title
2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
Source
Stock market index
11280.0
10609.3
12454.4
13786.9
13072.1
14650.5
17291.1
BSE Sensex 30 Share Price
Index (1978/79=100) LCU
Change in $ value of
stock market index (%
pa)
70.419
42.341
38.073
49.42
18.573
52.763
60.568
Derived from BSE Sensex 30
Share Price Index
(1978/79=100) LCU
Change in $ value of
stock market index (%
period-on-period)
21.264
-6.947
15.17
14.977
-3.771
19.884
21.054
Derived from BSE Sensex 30
Share Price Index
(1978/79=100) LCU
Assets with BISreporting banks
71566.0
68407.0
74680.0
84147.0
BIS, International Banking and
Financial Market Developments
Liabilities with BISreporting banks
63416.0
59599.0
66755.0
73741.0
BIS, International Banking and
Financial Market Developments
Current-account balance
2.756
-4.567
-4.83
-2.775
IMF, International Financial
Statistics
Source: "Country Data, Quarterly indicators India (February 2008),“ Economist Intelligence Unit.
* Blank cells denote unavailability of information.
* All units in US dollars and millions, unless otherwise noted.
IEEE Strategic Planning and Research/P. More/April 2008
XXII. Quarterly Indicators: International Reserve and
External Trade
Title
2006Q1
2006Q2
2006Q3
2006Q4
International
reserves
150.56
162.63
164.17
176.11
Foreignexchange
reserves
145.85
156.73
159.1
170.74
Gold, national
valuation
4.702
5.898
5.068
5.367
Trade balance
-12.06
-10.92
-13.73
-17.17
-14.29
-20.33
-17.34
Asian Development
Bank, Key Indicators of
Developing Asian and
Pacific Countries
Total exports
27.621
30
32.525
30.668
31.855
36.343
38.22
Derived from Reserve
Bank of India
Total imports
39.684
40.923
46.25
47.833
46.149
56.672
55.561
Derived from Reserve
Bank of India
Source: "Country Data, Quarterly indicators India (February 2008),“ Economist Intelligence Unit.
* Blank cells denote unavailability of information.
* All units in US dollars and millions, unless otherwise noted.
2007Q1
2007Q2
2007Q3
Source
Derived from IMF,
International Financial
Statistics
192.4
206.58
240.4
IMF, International
Financial Statistics
IMF, International
Financial Statistics
IEEE Strategic Planning and Research/P. More/April 2008
Part XI
Part C. Legal and Business Issues in India
Appendices
IEEE Strategic Planning and Research/P. More/April 2008
Legal and Business Issues
Additional Reference
http://www.pwc.com/Extweb/pwcpublications.nsf/do
cid/CF885179A4044DA3CA257181006A141E
http://www.usig.org/countryinfo/india.asp
http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/
dta/A1_USA.htm
http://aar.gov.in/
http://mca.gov.in
http://www.rbi.org.in
Source: KnoWerX Education (India) Private Limited, ASAE India Study Mission Feb 2008
IEEE Strategic Planning and Research/P. More/April 2008
NEW SLIDES
IEEE Strategic Planning and Research/P. More/April 2008
New Outsourcing
The global economy has been their jobs to India
Rising wages, stronger currency, demands for workers who
speak languages other than English and competition from
countries emulating India’s ‘back office’ are challenging the
model
Indian companies are opening offices in developing countries
before their competitors do
Examples:
– Infosys: Mexico, Czech Republic, Thailand, China
– Tata: Brazil, Chile, Uruguay
– Cognizant Technology Solutions: Phoenix, Shanghai
– Wipro: Canada, China, Portugal, Romania, Saudi Arabia
Source: “Outsourcing Works, So India is Exporting Jobs (25 September 2007),“ New York Times.
IEEE Strategic Planning and Research/P. More/April 2008
New Outsourcing
India continues to be the No. 1 location for
outsourcing
Though work that bypasses India remains smail, it is
growing
Infosys Example:
– American band wanted a computer system to handle a
loan program for Hispanic customers
– A0 company in the US paid Infosys who is 7,000 miles
away to supply it with Mexican engineers working 150
miles south of the US border
Source: “Outsourcing Works, So India is Exporting Jobs (25 September 2007),“ New York Times.
IEEE Strategic Planning and Research/P. More/April 2008
Thirsting for Energy
Energy consumption in this country of 1.1 billion is expected to
quadruple over the next 25 years
Almost half of India’s population has no access ot the electricity grid,
others go hours without power
Approx 700M rely on animal waste and firewood for fuel for cooking
– As a result India’s per capita carbon footprint remains a small fraction
of that of the industrialized world – the average American produces 16
times the emissions of the average Indian
India’s total emissions are the fourth largest in the world, after the
United States, China and Russia
The Indian Government has yet to unveil its long-awaited climate
change policy
In India’s growth, many environmentalists see opportunity for energy
efficiency
Source: “Thirsting for Energy in India’s Boomtowns and Beyond (2 March 2008),“ New York
Times.
IEEE Strategic Planning and Research/P. More/April 2008