France Launch - PwC · capability • Value growth mind-set • Innovation, research & design • Unlocking vested structures • Purposeful brand • Customer experience focus •

www.pwc.com

Strictly Private and Confidential

April 2015

France Launch

PricewaterhouseCoopers Private Ltd

Agenda

Slide 2

Future of India The Winning Leap

1

$10 Trillion GDP ambition

for shared prosperity

2 3

Winning Leaps in 10 key sectors

Entrepreneur Innovation & Ease of Doing

Business

4

Corporate sector

capabilities for the

Winning Leap

K

Key features of $10 Trillion

economy

5


Our research set out to investigate 9% GDP growth leading to a $10.4 Trillion economy by 2034


Slide 3

$5.6 tr

$1.9 Trillion

5.5%

5%

($1,500 per capita)

9%

$10.4 trillion ($6,800 per capita)

$7.4 tr

– 7.0% SCENARIO 2

$6.8 – 6.6% SCENARIO 1

tr

2034 Baseline 2014 2012 2024 ($4.5 tr)


For balanced growth we also set an ambition for Human Development Index* improvement


Slide 4

HDI – Life expectancy, years of schooling and gross national income per capita

2014 2034

0.59, 1.25 Bn

0.85, 1. 5 Bn 0.70

World Average

0.26

0.11

2000

0.48, 1.01 Bn


CEOs/Chairmen

Non Executive Directors /Strategy Directors

Policy makers/ Social sector leaders

Academicians

Sector experts

Top-down modelling

• With Oxford Economics financial model for growth

Bottom-up modelling

• With sector experts bottom up view for key sectors

• Workshops in the chosen 10 sectors with sector experts detailing of solutions regarding t0 growth

• Exhaustive secondary research on the chosen 10 sectors

Methodology: Industry interviews, workshops with experts, secondary research and financial modelling


Slide 5

Workshop with sector experts

Financial modelling

Industry interviews

+ +

49%

16%

10%

7%

18%

Secondary Research & Online Survey – 1,500 PwC participants


Through discussions with sector experts, we arrived at output vectors in the 4 human, 4 institutional and 2 enabling sectors


Slide 6

~70% GDP

Human

Agriculture

Improving

productivity

7 . 4 tonnnes/hectare

4 tonnnes/hectare 2014

2034

Education Keeping children

in school

10 years

7 years 2014

2034

Healthcare Raising life

expectancy

66 years 2014

2034

Financial Services Providing

banking to

more people

90% access

35% access

2014

2034

80 years

Institutional Retail Increasing the

market share

of organised

retail

share

2014

2034

8% share

Power

More and better

power to more

people

r

100 %

access

75% access 2014

2034

Urbanisation

Modernising

urban areas

650 mn p e o p l e

400 mn people 2014

2034

Manufacturing

Increasing

value-added

manufacturing

> 25%

of GDP

12% of GDP 2014

2034

50 %

Enabling

Digital connectivity Broadening

the network

80 % acce s s

15% acce s s

2014

2034

Physical connectivity Reduce logistic cost

8 % of GD P

2014

2034

1 3 % of GD P


In each of the key vectors, we examined what would drive output and realised the necessity of a non linear approach


Slide 7

2034 Traditional:

• 3.5 million hospital beds

• 3 million doctors

2014

80 years

66 years

1.3

2.5 5.0 3.5

doctors

nurses

beds .65 1.3

doctors

nurses

Hospital beds

Per 1,000 people

Average life expectancy

+

Current Issue Desired Outcome

Winning leap solution

Winning Leap

3.5m bed, 3m Doc

2.2m bed 2m Doc

$90 bn savings

Traditional

Investments

Fierce Catch-up

Investing in hospitals & education

Shifting point of care

Preventative +

Significant Leap

mHealth

Leapfrog

+


Similar analysis of other key sectors shows that up to 40% of the $10 Trillion economy would consist of new solutions


Slide 8

Source: PwC analysis

$1.9tr* GDP

2014

Fierce catch-up

Significant leap

$10.4 tr* GDP

40%

New solutions

60%

Executing existing methods

Leapfrog

2034

PricewaterhouseCoopers Private Ltd Slide 9

Corporate capability

• Value growth mind-set

• Innovation, research & design

• Unlocking vested structures

• Purposeful brand

• Customer experience focus

• Shift in quality and service

• Tri-entity partnerships

• International know-how

• New human capital skills

• Unconventional channels

• Asset light models

• Technology enabling

• Board and top management alignment

• Integrity DNA from top

• Sustainability and diversity led


To power India’s winning leap, the corporate sector will need to respond to five winning themes that will help build key capabilities


The Entrepreneurial sector will have a key role to play in the Winning Leap, enabled both by government and corporates


Slide 10

Government

• Ease of doing business

• Provide tax incentives

• Simplifying regulations

• Infrastructure

Physical

Digital

• Provide access to quality utilities – water, electricity

• Mentoring

• Incubating

• Building entrepreneurial networks

• Access to markets

• Access to capital

VC/ PE

Angel investors

Debt funding

• Providing relevant training

Corporate sector


The $10 trillion economy will require significantly higher investment, and almost 70% increase in labour productivity


Slide 11

Sources: Oxford Economics, PwC Analysis

468 290

534

2 906

2014 2034

Investment

Private Domestic InvestmentGovernment InvestmentInward FDI

$ 598 bn

$ 3,663 bn

9.4% CAGR

4,32

2,63

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

2010 2015 2020 2025 2030

Productivity

Scenario 3 (2010 productivity = 1)

Baseline (2010 productivity = 1)Forecast

65%


If the $10 Trillion economy gets created, it will lead to an increased manufacturing footprint, and create 240 m jobs


Slide 12

~240 m more jobs

291 811 1 300

7 207

310

2 382

2014 2034

Share of GDP

Agriculture Services Manufacturing

$ 1.9 Tn

$ 10.4 Tn

Sources: Oxford Economics, PwC Analysis

86m

CAGR

11%

9%

5%

Jobs Created

Increase in GDP share

from 16.3 % in 2014 to 22.9%

in 2034


Key questions

Is your organization ready to participate in the 9% growth ambition and a $10 Trillion economy by 2034?

In your sector what is the Winning Leap approach and can you take it to India to help shape sectoral winning leaps?

Are you building, can you help build corporate capabilities based on the five Winning Themes?

How are you partnering with smaller companies and governments to participate in India’s growth journey?

How are you identifying synergies in the India context to in terms of technology or innovation to enhance productivity?

How can you enable and participate in the Winning Leap dialogue?


Slide 13

Are you ready to take part in the largest democratic Nation Building process in history?

1

2

3

4

5

6


PwC India’s Emerging Markets CoE is a specialised centre that partners with clients and the PwC network on India entry and expansion

Emerging Markets CoE

• Focussed on the boardroom agenda of entry, growth and capability building in India

• “Accelerator workshops” that provide first hand experience of India followed by tailored sessions to develop hypotheses for India strategy

• Facilitated by industry and functional experts

• Comprehensive proposition combining the consulting, deals, risk , tax and regulatory capabilities

• Solutions driven by the “Emerging/ Growth markets framework”

Emerging / Growth Markets Framework

30

Strategic

Integrated

Immersive

Navigate the business

environment

Enter the right market with

effective value proposition

Build effective

partnerships and teams

Develop operating model

capabilities for growth


The Emerging Markets CoE supports companies at different stages of their India journey

Entry

• Large companies with limited India exposure

• Business need: Market entry and expansion

Taking advantage of India’s market potential

Growth

• MNCs with presence in India

• Business need: Build

capabilities, penetrate market profitably

Strengthen presence in India by penetrating customer segments beyond urban

centres

Origination

• Companies looking to expand beyond India

• Business need: Use

capabilities and innovations to expand into other markets

Transfer products and capabilities from India to

other global markets


Slide 15

Thank You

Suman Jagdev

Associate Director

Office: +91 22 6669 1486

Mobile: +91 98200 06396

Email: [email protected]

Shashank Tripathi

Partner

Office: +91 22 6669 1002

Mobile:+91 98196 78900

Email: [email protected]

For further information, please contact:

France Launch - PwC · capability • Value growth mind-set • Innovation, research & design • Unlocking vested structures • Purposeful brand • Customer experience focus •

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