Statistics of India

8/9/2019 Statistics of India

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INDIAINDIA

Talent LandscapeTalent LandscapeSanjay SinghSanjay Singh


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INDIAINDIA

Talent LandscapeTalent Landscape

Today & the Future


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Structure

India Economic Overview

Trends in Key Sectors of Indian Industry

Key Success factors in India

Key Challenges for Search Firms

Conclusion


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5,000 year old ancient civilization5,000 year old ancient civilization 325 languages spoken325 languages spoken1,652 dialects1,652 dialects 18 official languages18 official languages

29 states, 5 union territories29 states, 5 union territories

3.28 million sq. kilometers3.28 million sq. kilometers -- AreaArea 7,516 kilometers7,516 kilometers -- CoastlineCoastline 1.3 Billion population.1.3 Billion population.

5600 dailies, 15000 weeklies and 200005600 dailies, 15000 weeklies and 20000

periodicals in 21 languages with a combinedperiodicals in 21 languages with a combinedcirculation of 142 million.circulation of 142 million.

GDP $576 Billion. (GDP rate 8%)GDP $576 Billion. (GDP rate 8%)

Parliamentary form of GovernmentParliamentary form of Government

Worlds largest democracy.Worlds largest democracy. Worlds 4th largest economy.Worlds 4th largest economy.

Largest English speaking nation in the world.Largest English speaking nation in the world. 33rdrd largest standing army force, over 1.5Millionlargest standing army force, over 1.5Million

strong.strong.


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India Economic Perspective

Last 40 years

1950-1980:

Slow rate of

growth (~2%)

1980-1990:

GDP growth of

~5% (reform

process

launched)

1993-1996: GDP growth of7+%

Increased openness toglobalization - FDIallowed

Import tariffs graduallyreduced

Small scale reservationabolished in severalsectors

Key sectors opened toprivate participation

1997-2002: GDP growth of

~5%Slow down in reforms

Interest ratesprogressively reduced -16% to 7%

1991-2002

2003

GDP growth of 8.2 % (03-04)

Almost complete deregulation

- 100% FDI allowed in several

sectors Forex reserves at all time high

Rupee at a three year high

against dollar

Modest inflation Record investments by FII

Declining External debt

Fiscal deficit declining for the

first time

Investment Grade- Moodys

Indian companies now turning

global through acquisition


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Economy surging ahead

Economy on course for growth of 9.2%

Fastest growth in 18 years

A consumption-driven boom New emerging middle class, IT/BPO spillover

ITES growth in 2006/07 of 25%

Wage gains fuelling buoyant demand

Spending rather than saving

And borrowing heavily

Trade, hotels, transport, comms: up 13% (from 10.4%)

Manufacturing up 11.3% (from 9.1%)

Banking, insnce, business services: up 11.1% (from 10.9%)


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Some sectors showing staggering growth

Source: Pyramid Research

Telephone subscribers in India (millions)

0

50

100

150

200

250

300

350

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Telephone main lines Mobile subscribers

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2001/0

2

2002/0

3

2003/0

4

2004/0

5

2005/0

6

2006/0

7

Source: SIAM

Sales of passenger cars in India

80%

23%


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Confidence surging

Incredible India

Grant Thornton survey: 7,200 firms in 32 countries

Indians most optimistic aboutnational economic prospects

Palpable sense India is on the move

Domestic firms taking on the world:

IT superstars: TCS, Infosys

Tata Steel buying Corus

Hindalco Industries buying Novelis

Stronger profile on international political stage Investment & Consumption, both rising rapidly


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Foreigners getting excited too

Services and IT: By August 07, Indias 35,000 workforce will be largest for

Accenture (US is 32,000)

NYSE and DeutscheBorse buying intostock exchanges

Vodafone buying

Hutchison Essar

But manufacturing too: Flextronics indl park

Suzuki: US$1.7bn by2010 on top of US$800m 0

2

4

6

8

10

12

14

2001

2002

2003

2004

2005

2006

2007

Sources: UNCTAD, EIU

FDI inflows into India (US$bn)

44%


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What is Indias trend growth rate?

Source: EIU

Indias average annual GDP growth rate

0%

1%

2%

3%4%

5%

6%

7%

8%

9%

10%

1981-85

1986-90

1991-95

1996-00

2000-05

2006-10

?


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India placing in the world

Among the top 5 economies

One of the fastest growing economies

Source : World Development Indicators 2006


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Red tape continues to slow the

liberalisation process

Poor infrastructure remains a challenge

airports, power, ports & roads require huge

investments.

Labor laws continue to be restrictive.

Legal processes are slow.

Political opposition to privatization still strong.

Tax system is viewed by some as being very

complicated, and bureaucratic, with laws opento interpretation.

Burgeoning population

Source1: NASCOM

Source2: Economist

Red tape & infrastructure

But many hurdles remain


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Indias Value Proposition


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Source: Gartner Research

India and the Global Talent Pool - A Comparison

Cost, Quality & Language advantages

HighMediumLow

Philippines

Overall climate

Educational system

Cost advantage

Quality

Cultural compatibility

India ChinaCanadaIrelandRussiaIsrael

English proficiency

Government support

Labour pool

Infrastructure


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India Demographic advantage

Largest youth population (One quarter of the worlds youth lives in India)

Growing literacy rate.

Large pool of professionals and technocrats

Largest pool of English speaking manpower after US

India

Demographics assure increasing domestic demand

Set to become service provider to the world


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India DemographicProfile (2020)

China DemographicProfile (2020)

France DemographicProfile (2025)

-60 -40 -20 0 20 40 60

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80+

Mn people

Age group

Female MaleFemale Male

-60 -40 -20 0 20 40 60

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80+

Mn people

Age group

-3 -2 -1 0 1 2 3

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80+

Mn people

Age group

204060204060 123

Source: CII Conference 2002; CSFB Report; UN Population Division; BCG Analysis

20 - 35 age group :

325 mn people (~25 %)

20 - 35 age group :

308 mn people (~21 %)

20 - 35 age group :

11 mn people (~17 %)

Future Demographics - 2020

25 % of total population is in the peak Working Age


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Potential surplus population in working age group (2020)

47

Mn

19Mn 7

Mn

3Mn

5Mn

3Mn

India

Bangladesh

PakistanIran

Brazil

Mexico

Philippines

5Mn

4MnVietnam

2Mn

Turkey

-10Mn

China

-6Mn

Russia

5Mn

Indonesia

1Mn

Malaysia

0Mn

Ireland

Israel

0Mn

Iraq

2Mn

-1Mn

Czech

Republic

4Mn

Egypt

-17MnUS

-2 MnUK

-2 Mn

Italy

-3 MnFrance-9 Mn Japan

-0.5Mn

Australia

-3 MnSpain

-3 MnGermany

This results in

India likely to have a 47 Mn Working population Surplus

Source : Hewitt 2006 Study


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Leading to Destination India ?

India has among thehighest returns onforeign investment

Dan Scheinman, Cisco System Inc.Business Week, August 2005

We came to India for thecosts, stayed for the quality

and are now investing forinnovation.

A T Kearney FDI ConfidenceIndex 2005

India is among thethree most attractiveFDI destinations in

the world

Jack WelchGeneral Electric

India is a developedcountry as far as

intellectual capital isconcerned.

US Department of Commerce

By 2032, India will beamong the three largesteconomies in the world

BRIC Report by Goldman Sachs,October 2003


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Structure





Conclusion


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Whats Going On ?CONSUMER & RETAIL

Overall growth in Consumer Goods @ 7.5% driven by premium, lifestyleproducts

Indian consumer with increasing spending power, resulting in increased

demand for basic and high end consumer goods India the 6th most attractive retail destination among emerging markets

Total market valued at US $ 200 bn (esti)

Presently modern retail commands only 2-3% of total retail sales vs 85% in US

Maturing Financial markets

Significant growth in Retail Banking and Asset Management

RBI gives licenses to new Private Sector Banks - increases direct investment

limit to 74%

Insurance sector open to competition from foreign players

FIIs allowed to invest in Indian capital markets. Indian companies permitted toaccess international capital markets

FINANCIAL SERVICES / INSURANCE


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Whats Going On ?

Indian Pharma industry growing at 9% per year

New, product patent regime to fuel innovation and greaterinvestment in R&D

Low costs and capacity enhancement options make Indiaan attractive destination for major global Pharma Cos

Global Generic companies script India strategy

India to earn $ 1 bn from Clinical Trials

Vast pool of Scientific & Technical personnel ; recognizedexpertise in Healthcare

LIFE SCIENCES


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Whats going on ? Pharmaceuticals

The Indian pharmaceutical industry at $6.5 billion and growing at 8-10%annually, is the 4th largest pharmaceutical industry in the world, and isexpected to be worth $12 billion by 2008.

Its exports are over $2 billion. India is among the top five bulk drug makers andat home, the local industry has edged out the Multi-National companies whoseshare of 75% in the market is down to 35%.

Trade of medicinal plants has crossed $900M already.

There are 170 biotechnology companies in India, involved in thedevelopment and manufacture of genomic drugs, whose business is growingexponentially.

Sequencing genes and delivering genomic information for bigPharmaceutical companies is the next boom industry in India.


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Whats Going On ? Engineering / Mfg

Significant foreign investment with key global players setting

shop- automobiles, steel, energy & process

Auto exports rise 30%+; Commercial Vehicles are hot picks

Private Equity Firms beef up investments in Auto sector

India increasingly being recognized as a low cost production

base - outsourcing of manufactured goods

100% foreign investment allowed for a variety of Oil & Gas

activities


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Bharat Forge has the world's largest single-location forging facility, its clients includeHonda, Toyota and Volvo amongst others.

Hero Honda with 1.7M motorcycles a year

is now the largest motorcycle manufacturerin the world.

India is the 2nd largest tractor manufacturerin the world.

India is the 5th largest commercial vehiclemanufacturer in the world.

Ford has just presented its Gold WorldExcellence Award to India's Cooper Tyres.

Suzuki, which makes Maruti in India hasdecided to make India its manufacturing,

export and research hub outside Japan.

Hyundai India is set to become the globalsmall car hub for the Korean giant and willproduce 25k Santros to start with.

By 2010 it is set to supply half a millioncars to Hyundai Korea. HMI and Ford.

The prestigious UK automaker, MG Roveris marketing 100,000 Indica cars made byTata in Europe, under its own name.

Aston Martin contractedprototyping its latest luxurysports car, AM V8 Vantage,to an Indian-based designerand is set to produce the

cheapest Aston Martin ever.

Whats Going On ? Auto


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Whats Going On ?

India story becoming integral strategy for a number of foreign VentureCapitalists from across the globe

Over $1.1 billion invested in 66 Indian companies in 2004

Most of the funding went to later stage, publicly-listed Cos

Shift in focus from early stage opportunities to growth & expansionopportunities

Media, Airlines, Hospitality, Entertainment & Real Estate are the flavor with PEinvestors

PRIVATE EQUITY

Maintained incredible growth, with new Airlines, Hotels, Transport andCommunications witnessing the highest growth at 20%+ in 2005

Highest contributor to GDP

Significant potential for employment generation - Tourism, Hotels, Airlines

Leading global Airline Cos chart India strategy ; spurt in low cost Airlines 4

SERVICES


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Whats Going On ?HI-TECH / TELECOM

Software and ITeS industry continue to chart double digit growth - revenuesto top $ 28 bn

Software & services exports to reach US % 17 bn in 2005

ITeS / BPO, the fastest growing segment, to reach $ 5.7 bn this year

Telecom sector deregulated - to attract $ 1 bn investments in 2006-07

Direct Investment cap in certain telecom services increased to 74%

Mobile subscriber base expected to touch 155 mn by 2009, teledensity

expected to increase upto 18%


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Whats Going On ? : BPO The domestic BPO sector projected to increase to $6 Bn in 07 and reach $65 Bn by 2015. (McKinsey).

The outsourcing includes a wide range of services including design, architecture, management, legal services, accountingand drug development and the Indian BPOs are moving upin the value chain.

There are about 200 call centers in India with a turnover of

$2 billion and a workforce of 150,000.

100 of the Fortune 500 are now present in India compared to 33 in China.

Cummins of USA uses its R&D Centre in Pune to develop the sophisticated

computer models needed to design upgrades and prototypes electronicallyand introduce 5 or 6 new engine models a year.

Business Week of 8th December 2003 has said "Quietly but with breathtakingspeed, India and its millions of world-class engineering, business and medicalgraduates are becoming enmeshed in America's New Economy in ways most

of us barely imagine".


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Whats Going On ? Foreign MNCs

Top 5 American employers in India:

General Electric: : 17,800 employeesHewlett-Packard : 11,000 employeesIBM : 6,000 employeesAmerican Express : 4,000 employeesDell : 3,800 employees

General Electric (GE) with $80 Million invested in India employs 16,000 staff,1,600 R&D staff who are qualified with PhDs and Masters degrees.

The number of patents filed in USA by the Indian entities of some of the MNCs(upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125,Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.

Staff at Intel (India) has gone up from 10 to 1,000 in 4 years to reach 4000 staffby 07 end

GE's R&D centre in Bangalore is the company's largest research outfit outsidethe United States.


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Addresses of the futureWhats going on ? Global R&D Trends

Emerging markets & Available Talent is shifting R&D Eastward


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Whats going on ? Global R&D Trends

China & India are emerging as Global Research hubs


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Whats going on ? R&D

Established in 2002 with just two people, has scaled up to 20 specialists today. Plans exist to double itsheadcount by the beginning of 2004. Is totally dedicated to high-level research on futuristic

technologies, with special focus on emerging markets.Bangalore.

Established in 1996 with 10 people, has scaled up to 895 people today, and will be further scaled up to1,000 before the end of 2003. Works on developing software for Philips products. Almost all Philipsproducts that use software have some contribution from this centre. It is the largest software centre forPhilips outside Holland.

Innovation Campus, Bangalore.

Established in November 1998 with 100 people, the Lab swill be scaled up to 1500 by the end of 2004.That will double 3000 staff by middle of 2006. It is the largest single-location R&D lab for SAP outside

Walldorf, Germany. Nearly 10 percent of SAP's total R&D work is carried out from the Indian lab.Labs India, Bangalore.

Established in 2001. Works on all IBM software like WebSphere, DB2, Lotus, Tivoli and Rational. Thecentre has added many new areas of activities such as middleware and business intelligence.

Software Lab,Bangalore, Pune.

Established in 1988 with 20 people, has scaled up to 1,000 today. Drives nearly 60 percent of thecompanys global development delivery.

R&D Centre,Bangalore and Mumbai.

Established in mid-1999 with 20 people, has scaled up to 500 people today. Does work mainly onSun's software which includes Solaris and Sun One.

India Engineering Centre,Bangalore

The Bangalore centre was established in 1994; the Hyderabad one in 1999. Oracles largestdevelopment centre outside the US currently has 6,000 staff. Does work on Oracle's databaseproducts, applications, business intelligence products and application development tools, besides otheractivities.

India Development Centre, Bangalore,Hyderabad.

Established in 1984. The centre started with just 20 people, now has 900 people working on VLSI andembedded software, which goes along with a chip or into the chip.

R&D Centre, Bangalore

HighlightsR&D Centre


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Structure





Conclusion


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Indians are more aligned to western styles of management command andcontrol is not very effective

Life term employment is no longer seen as desirable, or in the best interest of

the Executive

India is a very diverse and heterogeneous country there is no one right answer

Indian Managers have grown with the freedom to express their viewpoint

should not be viewed as disrespect for the superior or being disloyal

Designation, Titles and career Promotions very important for Indian Managers

Indians pay greater regard to intellectual ability rather than craftsmanship -

Technical staff is typically paid lower than Managerial talent

Indians tend to over-commit and have difficulty in saying No need to have amonitoring and review mechanism in place

Factor #1: Bridging Cultural Gaps

Understanding Cultural issues is critical for Success


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Factor #2 Empowered Organization

High caliber Managers demand inherent trust from their Employers

Within certain global norms, most successful organizations empower their

local management teams to achieve extraordinary results

The diversity and uniqueness of the Indian market requires a customized

approach e.g., value for money culture, limited brand loyalty, etc.

most MNCs in India have resorted to localized advertising as opposed to

global advertising

Opportunity for the Manager to participate and contribute in decision

making is critical to retention


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Factor #3 : Invest in Developing Local management

Career Opportunities

Opportunities for career growth are extremely important at senior managementlevels Indians are very mobile and appreciate global opportunities

Glass ceiling of any kind is seen as a major disincentive western companieshave made major headway in this area almost all Western companies in Indiaare run by local managers

Implement a robust succession planning system

PROFESSIONAL DEVELOPMENT

Training and skills up gradation

Ongoing transfer of knowledge / best practices send Indian Managers for shortassignments, familiarization trips to home country, etc

Provide opportunity to participate in international project teams and to contributeto the Parent organisation


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Factor #4 Broad based Commitment

India strategy must have the backing of the entire senior management team at HO

Significance of India in overall global strategy of the Parent company is extremely

critical in attracting high caliber talent

Size and scale of investment signals the seriousness of the company to commit to India

for the long term

Successful companies have looked to leverage India beyond just the domestic market

opportunity

R&D GE, General Motors, Bell Labs, Monsanto, Daimler Chrysler

Outsourcing Citibank, Ford, Agilent, HSBC, IBM, GE, Nissan

Engineering & Software Development Centers - Philips, Canon, ABB, AllianzCornhill, DuPont, LG, Intel, Cisco, Honeywell

Export Hub Hyundai, Bosch, Suzuki, Whirlpool, Volvo

Sourcing Base - Wal-Mart, GAP, Coca Cola, Pepsi


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Share the vision and direction of the company Employees perform

better if they identify with the organisation and know where it is

headed

Actively cultivate a sense of belonging through regular engagementand communication with Employees

Create an environment of openness and accessibility

Integrate into the local environment and be seen as a responsiblecorporate citizen

Build Pride in the Company

Factor # 5 Build an Employer Brand


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Structure





Conclusion

The Changing Environment


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Booming Indian economy Leading to phenomenal growth of Executive Search firms in India

Clients are looking for trusted business advisors Search firms need to transform themselves

Global shortage of right talent companies need specialist who help themhire..

Increasing Indian Companies are setting up businesses overseas. Indian

talent gaining recognition in the Global Landscape.foreigners looking jobsin India, New MNCs Coming in.

Search market in India estimated around $ 150 million Growing at a healthy clip of 50% every year

Increased competition at higher end of the market More international search firms setting up shop in India. Second round of consolidation expected. MNCs acquiring local firms to get a toe hold in the Hot Indian Market.

Indian Executive Search Industry is at a Crossroad

A few trends in Executive Search



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Hiring challenges have a different texture in India

Hiring challenge that Search Firms & Cos. face

Compensation (usually the number one in most cases)

The canvas / scope available for the Role & Organization

Future growth

Empowerment

Decision-making freedom

The parent company not open to feedback/market realities

Patience! For a market like India to pay you back


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Structure





Conclusion



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Its going to be an exciting ride Are you game ?

Conclusions

Indian economy is growing fast. Presents a variety of

opportunities.

India presents itself as both a source & destination for Talent.

Changing aspirations & environment in India are creating an

exciting but complex Talent needs.

The India story has a compelling present & Future rationale

Intellectually demanding sectors seem to be growing faster

Several challenges exist & can potentially derail India

Sustainable Talent advantage in a politically stable growing

Economy


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Questions


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Backup

?


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Is the economy overheating?

3

4

5

6

7

8

Jul'05

O

ct'05

Jan

'06

A

pr

'06

Jul'06

O

ct'06

Jan

'07

3

4

5

6

7

8

9

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Consumer prices, y-on-y % change RBI monetary policy tools (%)

Source: EIU Source: RBI

Short-term lending rate

Short-term borrowing rate

Cash reserve ratio

I h h i ?


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Source: Jones Lang LaSalle

Delhi grade A office space

0

50

100

150

200

250

1Q

01

1Q

02

1Q

03

1Q

04

1Q

05

1Q

06

0

50

100

150

200

250

1Q

01

1Q

02

1Q

03

1Q

04

1Q

05

1Q

06

Mumbai grade A office space

Rental Value Index Capital Value Index Index base Q101 = 100

I th h ti ?


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Source: Yahoo

Bombay Stock Exchange Sensitive Index

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1/6/20

03

1/6/20

04

1/6/20

05

1/6/20

06

1/6/20

07

I h h i ?


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Capacity utilisation higher than any time in pastdecade

Severe skills shortage sending wages soaring Ave wages to rise 13.8% during 2007

Deteriorating trade balance

-200

-150

-100

-50

0

50

100

150

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Imports

Exports

Trade balance

Merchandise trade, US$ billions

Source: EIU

S i f th


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Scenarios for growth

9% growth is possible, but unlikely

More realistic is growth of around 7.2% Improvements happen, but slowly, hampered by politics (eg

SEZs)

Serious shocks could derail growth to below 6%: Oil price hike

India imports 70% of its oil Oil is 31% of Indias import bill

Global IT bust (or increasing protectionism)

String of poor monsoons

Worst case (unlikely): war with Pakistan

Commercial Activity Centers


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Commercial Activity Centers

2

New Delhi

Bangalore

Mumbai

Pune

Chennai

Hyderabad

ConsumerGoods, ITeSPharma,Telecom,FinancialServices

Banking, FinancialServices,

Consumer Goods,Private Equity,Telecom

Auto,

EngineeringITeS,Pharma

IT, ITeS,LifeSciences,PrivateEquity

Auto,Engineeringand IT

IT, ITeS,LifeSciences

THE POLITICAL & ECONOMIC


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THE POLITICAL & ECONOMIC

LANDSCAPE

1947 Late 70s

ERA OF SELFRELIANCE AND

SOCIALISM

State owned monopolies Industrial LicensingPolicy

High Import TariffsFDI discouragedLocal industry notglobally competitive

Rising inflation

Poor developmentmodel, fails to deliver

growth

1980s

LIBERALISATIONBY STEALTH

Effort to reformReducing barriersto export

Import substitutionpolicy

Limited industrialde-regulation

Some reforms totaxation

Mere tinkering at theedges of the existingdevelopment model.

Realization forstructural reform

1990s

TRANSITION TO AMARKET DRIVEN

ECONOMY

Economy opens upto the rest of theworld

Beginning ofEconomic Reforms

Licensing regimeabolished

Emergence of theIndian Softwareindustry

Macro-economic

stabilization ;template for longterm growth in place

2005

INDIA : AN

INTEGRAL PART OFTHE

INTERNATIONALECONOMY

2000

100% foreignownership allowedin most sectors

Privatization across

sectors India the 3rd most

attractive FDIdestination

Emergence of Indianmultinationals

Economic reformsdeeply rooted,

gradually gettingdivorced from

politics

3.5 %

6%

8%

GDP

4


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WIP

India: Technology Superpower


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India: Technology Superpower

Geneva-based STMicroelectronics is one of thelargest semiconductor companies to developintegrated circuits and software in India.

Texas Instrumentswas the first to openoperations in Bangalore, followed by Motorola,Intel, Cadence Design Systems and several others.

80 of the Worlds 117 SEI CMM Level-5 companiesare based in India.

5 Indian companies recently received the globallyacclaimed Deming prize. This prize is given to anorganization for rigorous total quality management(TQM) practices.

15 of the world's major Automobile makers areobtaining components from Indian companies.

This business fetched India $1.5 Billion in 2003, andwill reach $15 Billion by 2007.

New emerging industries areas include, Bio-Informatics, Bio-Technology, Genomics, ClinicalResearch and Trials.

World-renowned TQM expert Yasutoshi Washiopredicts that Indian manufacturing quality will overtakethat of Japan in 2013.

McKinsey believes India's revenues fromthe IT industry will reach $87Billion by 2008.

Flextronics, the $14 billion globalmajor in Electronic Manufacturing Services, hasannounced that it will make India a global competencecentre for telecom software development.

India: Trade


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Tata Motors paid $ 118 million to buy Daewoocommercial vehicle Company of Korea.

Ranbaxy, the largest Indian pharmaceutical company,gets 70% of its $1 billion revenue from overseasoperations and 40% from USA.

Tata Tea has bought Tetley of UK for 260M.

India is one of the world's largest diamond cuttingand polishing centres, its exports were worth $6Billion in 1999.

About 9 out of 10 diamond stones sold anywhere in

the world, pass through India.

Garment exports are expected to increase from thecurrent level of $6 billion to $25 billion by 2010.

The country's foreign exchange reserves stand atan all-time high of$120 Billion.

India's trade with China grew by by 104% in 2002 andin the first 5 months of 2003, India has amassed asurplus in trade close to $0.5M.

Mobile phones are growing by about 1.5Million amonth. Long distance rates are down by two-thirds in

five years and by 80% for data transmission.

Wal-Mart sources $1 Billion worth of goods fromIndia - half its apparel. Wal-Mart expects this toincrease to $10 Billion in the next couple of years.

GAP sources about $600 million and Hilfiger $100million worth of apparel from India.

Indians in the USA


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Indians in the USA.

Of the 1.5M Indians living in the USA, 1/5th of them live in the Silicon Valley.

35% of Silicon Valley start-ups are by Indians.

Indian students are the largest in number among foreign students in USA.

Statistics that show:

38% of doctors in the USA,

12% of scientists in the USA,36% of NASA scientists,

34% of Microsoft employees,

28% of IBM employees,

17% of INTEL scientists,

13% of XEROX employees,

are Indians.

1. India 44%

2. China 9%3. Britain 5%

4. Philippines 3%5. Canada 3%6. Taiwan 2%7. Japan 2%8. Germany 2%9. Pakistan 2%

10. France 2%

US H1-B Visa

applicants country

of origin

Some Economic IndicatorsConclusions


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56

Some Economic Indicators

4Indian Economy poised for sustained growth of 8% over the next 10 years ;GDP growth pegged at 8%

450% of Indias population is under 25 years of age and 80% under 45 years

4 Increasing urbanization has led to changing consumption and spending patterns

4India, the third most attractive Foreign Direct Investment destination, next to

China and US

4FDI inflows in 2005 were more than double last year

4Strong emphasis on English as the means of education, with a specialistthrust on science and maths

4One million new English speaking graduates pass out every year

4High quality technical skills driving India towards becoming the global R&D

hub

4More than 120 MNCs have already set up R&D labs in the country

4India increasingly being recognised as a low-cost production base -

outsourcing of manufactured goods is the new trend

Conclusions

Documents

Statistics of India