A Brief Understanding of India

INDIA : A Brief Understanding

Introducing a country with over 1.23 billion people

Second most populated country in the world and the largest democracy.

Hosts 640 districts, 5767 tehsils, 7933

towns and more than 600,000 villages

Divided into 28 states and 7

union territories

Diversity in Diversity

India speaks a 152 languages and 1652 mother

tongues , is also home to 6 major religions and

many more faiths

The 6rd largest economy in the world with a GDP of over 1.84 Trillion at

PPP

Between 1991-2013 the economy has grown close to 5x up from 310

billion

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

0

2

4

6

8

10

12

India GDP Growth Rate 1991-2012

% Growth

Drivers for growth

1. India is one of the youngest populations in the world with over

799 million (65%) under the age of 35 years

2. Literacy rate has been on the constant rise and presently

stands at 74%

Presently 210 million households

Total consuming households set to grow to65 million by 2015

3. Disposable income of consumer base on constant rise,

reaching an all time high in 2011

4. Rapid increase in the flow of FDI towards growth

sectors ; Infrastructure, Construction, Automobiles and Real Estate

Agriculture Manufacturing Services

58.9

10.3

32.827.4

39.8

16

27

57

Contribution to GDP by Industry

% GDP 1950 % GDP 1991 % GDP 2013

India has been moving from a primarily agrarian

economy since towards a manufacturing and service

industry

23%

Retail & Wholesale

15.7%

Agriculture

13.5%

RealEstate

10%

Banking& Insurance

9%

IT & ITES

Top Sectors by contribution to GDP - 2013

The top 5 sectors contribute to more than 70% of the

economies products

Industries in Focus

Transport Infrastructure : Roads & Rail

India has a very low per capita consumption of steel compared to

most developing nations, especially China. However with planned

investments in infrastructure and a growing constructions & real

estate market this scenario is poised to change

China India World Average

460

60

216.9

Per capita consumption of steel

Kgs

Heavy investments are being made by public and private

entities into improving the existing networks as well as

building more roads.

Golden Quadrilateral – 5846 kms of 4 lane highways connecting 4 metros

India currently has the second largest road

network in the world at 3.3 million kms

One of the worlds largest and comprehensive railroad

networks with 115,000 kms of rail tracks, connects

majority of cities and towns in India; facilitating

business and commute for millions of people daily.

Automobile Industry

6th largest manufacturing industry globally

17.3 million units sold domestically (2011-12)

Asia’s third largest exporter of passenger cars

2011 there were 3,965 factories producing automotive parts across the country

India’s automobile industry is set

to reach US$ 12 billion in 2014

Although the automobile market has shown a slight slowdown, there has been a positive growth y.o.y

There are positive signs for increased growth rates

Brazil Russia India China USA World

249293

14885

439

136.7

Automobile Market Overview

Cars/1000 people

Real Estate & Construction

India is expected to emerge as the

world’s third largest construction

market by 2020

To aggregate approximately US$ 380 billion

between 2012-16

Current FDI in Real Estate

(RE) at $4 Billion projected to

be at $25 Billion in 10 years

The Planning Commission of

India has budgeted an

investment of $320 billion in

the latest five year plan

Projected to become a

$1 Trillion construction

market by 2025

RE is a $180 Billion

industry growing at

CAGR of 11%

Fierce Competitive Framework

Across categories there are numerous players

looking to tap into the large consumer base in

India

Automobiles : 53 companies – multiple brands

Insurance : 14 companies

Media : Over 150 media companies

Real Estate : Over 100 Real Estate companies in

the organised sector

With multiplicity of choice, across

categories both in B2B & B2C ensuring the

market in India has shifted long ago from a

sellers market to a buyers market

While the pie itself is growing, there is fierce

competition across industries and sectors to

get a bigger share

Therefore Customer centricity will be the

fulcrum on which businesses need to be built