India Fastes Growing Economy

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FASTEST GROWING FREE MARKET DEMOCRACY IN A GLOBAL ECONOMY

INDIA

SUNEEL GUPTAASSOCIATE PROFESSORGHS-IMR,KANPUR.

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THE INDIA STORY

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1947 : Year of Indian Independence

Today’s India is one of the fastest growing Democratic Market Economy, well on it’s way to be integrated with the world economy

The famous Goldman Sachs report ( Dreaming with BRICs: The Path to 2050 ) states that, among Brazil, Russia, India and China, India will grow the fastest over the next 30 to 50 years by leveraging its demographic advantages and through continued development

India’s GDP will exceed Italy’s in 2016, France’s in 2019, Germany’s in 2023 and Japan’s in 2032

INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032

AND…THE STORY BEGAN IN 1947

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28.023.8 20.5

27.2

40.6 43.948.9 52.4

32.2 28.1 27.2 27.1

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10

20

30

40

50

60

1990-91 1995-96 2000-01 2004-05

Agriculture Industry Services

Share Of Services Sector In GDP On The Rise (%)

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• Land Area: 3.29 m sq. km.

• Population: 1.09 b

• GDP: US $ 630 b

• Real GDP Growth: 6.9%

• Gross Domestic Savings: 28.1% (2003-04)

• Gross Domestic Investment: 26.3% (2003-04)

• Per Capita Income: US $ 580

• Inflation Rate: 6.4%

Macro Economic Indicators (2004-05)

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• Exchange Rate: US $ 1 = 43.75

• Merchandise Exports: US $ 80b

• Merchandise Imports: US $ 106b

• Services Exports: US $ 51b

• Foreign Direct Investment: US $ 5.5b

• Foreign Portfolio Investment: US $ 8.9b

• Direct Investment Abroad: US $ 1.5b

Macro Economic Indicators (2004-05)

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INDIAN SUCCESS STORIES

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• Number of foreign firms acquired 120 by Indian companies during 2001 - 03

• Total worth US $ 1.6 b

• India - 8th largest investor in the UK

• No of investments 440

• No of Indian companies with 1,441 operations in Singapore

Indian MNCs - On a global buying spree

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• Hero Honda - Largest producer of motorbikes in the world

• Moser Baer - World’s 3rd largest producer of optical media

• Hero Cycles - World’s largest bicycle producer

• Bharat Forge - Amongst the world’s top 3 forgings manufacturers

• UB Group - World’s 2nd largest producer of alcoholic beverages

• Paharpur Cooling Towers - World’s 2nd largest manufacturer of

Cooling Towers

India – Leading The World

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India – Leading The World

• Apollo Hospitals - Single largest hospital chain in South Asia

• TISCO - world’s cheapest producer of steel

• Reliance Industries - World’s largest producer of PTA, a chemical

used in textile production

• Mahindra & Mahindra - Amongst top 3 tractor manufacturers in the

world

• Telco - Amongst top 3 truck manufacturers in the world

• Welspun - World’s largest producer of terry-towels

• Gujarat Ambuja - Amongst top 5 cement producers in the world

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Some Indian Examples Benchmarked with the Best In The World

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Success Story of RELIANCE

The Reliance Group founded in 1932, is India's largest business house with total revenues of over US $ 22.6 b and exports of US $ 3.6 b

It began as a an SME

The Group's activities span exploration and production of oil and gas, refining and marketing, petrochemicals, textiles, financial services, insurance, power, telecom and infocom initiatives

The Group exports its products to more than 100 countries the world over

Reliance Group revenue is equivalent to about 3.5 % of India's GDP

The Group contributes nearly 10% of the country's indirect tax revenues and over 6% of India's exports

Today, the Reliance Group has one of the largest family of shareholders in the world

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Success Story of WIPRO

Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945

An SME and primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap

It was in the early eighties that Wipro made its foray into the Infotech arena

With this began the Wipro Infotech story

Today, Wipro stands at the firmament, as a trusted and experienced provider of a comprehensive range of IT services, solutions and products, worldwide

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Success Story of BHARTI

Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business

It all began as a Small Industry

Bharti Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across India

Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri- products exclusively to markets in Europe and USA

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Success Story of DR.REDDY’S

Dr.Reddy’s Laboratories was founded in 1984, with a capital of US $40,000 in cash and US $120,000 in bank loan In fact, it is this spirit of entrepreneurship that has shaped the company to become what it is today

Today, the company with revenues of US $446 m, in fiscal year 2005, is India’s second largest pharmaceutical company and the youngest among its peer group

Dr. Reddy’s started its drug discovery programme in 1993 and within three years it achieved its first breakthrough by out licensing an anti-diabetes molecule to Novo Nordisk in March 1997

With this very small but significant step, the Indian industry went through a paradigm shift in its image from being known as just ‘copycats’ to ‘innovators’! Through its success, Dr. Reddy’s pioneered drug discovery in India Today, the company manufactures and markets API (Bulk Actives), Finished Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising Drug Discovery Pipeline

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Success Story of BIOCON

Biocon is India's leading biotechnology enterprise

Over the past 25 years, they have evolved from an small enzyme manufacturing company to a fully integrated biopharmaceutical enterprise, focused on healthcare

At Biocon, success has been their ability to develop innovative technologies and products and to rapidly leverage them to adjacent domains

This unique "integrated innovation" approach has yielded a host of patented products and technologies that have enabled multi-level relationships with their global clientele

As India's first and leading biotechnology company, Biocon extends its support to numerous community outreach and corporate citizenship initiatives with special concentration in the areas of healthcare, education and environment

The Biocon Foundation, set up in 2004 has recently launched Arogya Raksha Yojana, a unique health initiative for rural India

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Success Story of Paharpur Cooling Towers

In its over four decades of existence, Paharpur has come to be acknowledged as the pioneer in the Indian cooling tower industry

It all began as a small industry with a capital of US $ 11,000

At today's selling prices, Paharpur has sold cooling towers valued at over US$ 1 b

If these cooling towers were all working together, they would be able to cool more than 265 million liters of water every minute or 382 b liters in 24 hours

The Paharpur team consists of highly qualified engineers & professionals with over 1,000 man years of experience in the field of cooling tower application engineering, designing, erection and trouble shooting

Paharpur has pioneered several improvements in cooling tower design and operation and has emerged as one of the largest cooling tower manufacturers in the world, with exports to more than 40 countries

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Success Story of Standipack

 A successful SSI unit set up in 1980, in NCR, Delhi

• It is the largest lube oil flexible packaging company in India producing packaging materials, machinery and systems and doing contract packaging

• Produces /contract packages over 300 m packages a year, for the oil majors in Delhi, Kolkata, Chennai and Mumbai

• Patents in most countries of the World

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MNCs leveraging the India Advantage

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