WELCOME TO INDIA

Learn us, Join us

WIN(World Ideal

Nation)

INTRODUCTION

With over 1 billion people, India is a country that you cannot ignore if you are kind of business. With a growth rate of 10% India is one of the hottest business destination in the world!!! A number one rich country for investments for those seeking to grow beyond the US borders.

HIGHLIGTHS Population: 1.241 billion(world’s 2nd highest

population) Currency: Rupees National languages: Hindi(22nd languages) Capital: New Delhi Independence day: 15th August 1987 Specialty: 2nd largest film industry Specialized: Software & Agriculture Landmass: World’s 7th largest GDP: World’s top 3rd Religion: Hindu(14% Muslims)

CURRENT STATE

Operating as a mixed economy 9th largest nation by nominal GDP 19th largest exporter 10th largest importer Unemployment 3.8% 487 million workers in labour sector PCI basis India rates 141st by nominal GDP GDP grew by 9.3% in 2011

GDP grew by 4.8% in march 2013 Forecasts a growth of 6.7% for 2014 Labour force:

i. 80% on agriculture ii. 12% on coal, jewellary, car, textile, electronics iii. 20% on services

Democratic nation since 1970 to present $365 billion of FDI inflow in December 2012

POPULAR SECTORS

2nd largest source of employment Employment for 12 million people Currently invested 38 billion Demand for Indian textile in world market is falling Ahmedabad, Mumbai – popular city for textile industry

TEXTILE

Employment to 23% of workforce Shares 55% to GDP Bangalore, Hyderabad, Chennai,

Kolkata, Mumbai - best hub for IT Popular in India because of low wages, educated & fluent English speakers

Services

Agriculture

Employment to 23% of workforce ½ of land used for farming Leading crops - rice, cotton, tea, sugarcane

Contribute 6.5% to national GDP 8.8% of total employment Most tourist from USA & UK

Tourism

Retail

Contributes 14-18% to GDP Spends US $ 450 billion In 2012 government permitted 51% to FDI in multi brand & 100% in single brand

TRADE IN INDIA 2nd highest production of cement i.e. 183

million tones. Average non-agricultural tariffs have fallen

below 15% Quantitative restrictions on imports have

been eliminated Anti-dumping measures used to protect tradeNow more liberal global trade, esp. in services

A leading country among developing nations in global trade negotiations

India – Sri Lanka free trade agreement trade agreement with Bangladesh, Bhutan, Sri Lanka, Maldives, China & South Korea India – Nepal Trade Comprehensive Economic Corporation

Agreement(CECA) with sign Framework Agreements with the Association of

Southeast Asian Nations (ASEAN) Preferential Trade Agreement with Afghanistan,

China & Marcos

The India Growth Story

One of the faster growing economies in the world

Improved efficiency in the economy Adoption of international “best practices” in the

production of range of goods and services Top ten investments destinations since 2007-08,

attracting US $195 bn $US 97 bn FDI over the past 5 years

GDP grown at a 7.9% between 2003-2012 Continue growth next 5 years at 7.7% GDP for 2013, valued at US $ 1.9 trillion Current price is 10th largest in the world 8% targeted (2012-2017) One of the youngest population 2/3 of the population is below 35 years 65% working population is about 15 to 64

years One of the highest English speaking nation

IMPORT

• Major imports: Crude oil, military products, fertilizers, chemicals, gems, antiques and art works.

• Imported goods are divided into: 1.Freely importable 2.Canalised item 3.Prohibited item• Commercial trade rose from $252 bn in 2006 to

$724 bn in 2012• Biggest import in 2012: Crude petroleum with

$155 bn

• Gold and Silver amounted to $62 billion• Electronic goods, pearls and precious

stones are top imports• Top import source is china(12% of total

imports), UAE, Switzerland, Saudi Arabia• UK has 1.4% share of India's import

sources

India’s imports through graph

Top ten importers from India, by value of trade in US $m and share of total

Country 2012-2013 (Apr- Sep)

%Share (2012-2013 (Apr- Sep)

USA 19704.05 13.87

UAE 18601.71 13.09

SINGAPORE 6652.77 4.68

CHINA 6417.32 4.52

EXPORT In 2001-2002 Asia’s share stood at 40.2% In 2011-2012 grew to 51.6% A decline share of in Europe from 24.8% in 2001-

2002 to 19% in 2011-2012 Exports in 2012: 1.petroleum products earned $56bn 2.gems and jewelry $47bn UAE: biggest export market in 2012 UK: 8th biggest export market UK held 2.9% of the market share in April-Sep

2012

Rose to 1348.08 INR bn in May of 2013 from 1313.95 INR bn of 2013

India exports averaged 240.9 INR bn Main exports are engineering goods (19% of total

export) 1.Gems engineering(15%) 2.Chemicals(13%) 3.Agricultural products(9%) 4.Textiles(9%) Asia’s largest refined product export with petroleum

earned 18% of total exports. Main exports partners (UAE)-12%, US - 11%

Top ten exporters to India, by value of trade in US$m and share of total

Country 2012-2013 (Apr- Sep) %Share (2012-2013 (Apr- Sep)

CHINA 28025.57 11.92

UAE 19622.81 8.35

SAUDI ARABIA 16094.83 6.85

USA 12208.05 5.19

SWITZERLAND 10779.45 4.59

IRAQ 9803.79 4.17

QATAR 8144.45 3.47

KUWAIT 8134.73 3.46

GERMANY 7154.41 3.04

INDONESIA 6944.86 2.95

HONG KONG 6137.9 4.32

SAUDI ARAB 4636.29 3.26

NETHERLANDS 4458.24 3.14

U K 4112.26 2.89

GERMANY 3491.77 2.46

BRAZIL 3042.64 2.14

BUSINESS OPPORTUNITIES

o Tourismo Automobileo Textileo Social Ventureso Softwareo Engineering Goodso Franchisingo Education and Trainingo Food Processingo Corporate Demand

o Organic Farmingo Traditional medicineo Mediao Packagingo Floricultureo Toyso Healthcare Sectoro Biotechnologyo Energy Solutionso Recycling Business

THE FOREGIN TRADE (DEVELOPMENT & REGULATION) ACT INTRODUCED 1992 5% tariff on imports Prohibited 53 items Export is permitted against license 8% royalty payments of exports 5% royalty payments on domestic product Duty free imported raw materials Liberalization of FDI Removal of entry restriction

15 REASONS TO INVEST IN INDIA Fast economic growth Vibrant democracy Favourable demographics Consumption Valuations offer some comfort Balanced equity market Under represented in global indices Increased investor confidence Growth bias vs. inflation Budget with an eye on reforms Becoming bigger in manufacturing Rapid export growth Attractive foreign direct investment destination Continuing fiscal consolidation Healthy foreign exchange reserves

INDIA & WTO

India is the one of the founder member of WTO, joined in 1st January 1195. Become one of 76 nations of WTO on 1st day of formationBENEFITS for India Increase in foreign trade

Increase in agriculture exportsIncrease inflow of foreign investmentRestricts dumpingImprove in servicesProtection of property rights Enhance competitiveness among trade partnersChallenge policies of developed countries

Under WTO, the greatest agreement made by India is on agriculture. It focuses on three areas: 1.Market access 2.Domestic support 3.Export subsidies

India is second world wide in farm outputIt accounts 16.6% of GDP60% of work force employed in this field

FDI100% F.D.I is permissible in hotel and tourism, construction, medicine & electronics Invested $ 2billion on healthcare by 2012 Allowed particularly for education to: 1. Prevent brain drain 2. Match international standard of studies Prohibited sectors

- Gambling, betting, atomic energy, agriculture, lottery businesses

WHY always INDIA?

Liberal democracy Sufficient natural resources Skilled labor forceRate of return on investment is high2nd largest software developerWorld’s 4th largest economy 2nd largest pharmaceutical industryGrowing with 8% gross domestic productReduced license in requirement

Challenges High corporate tax High corruptions High poverty Limitation to obtain loans for foreign companies Different culture & languages Low per capita income

Still, “SAAREY JAHAASE AHCHAA HINDUSTAAN HAMAARAA”

( Amongst all, India is the best )

Reference

India guide 2010 Wikipediahttp://www.expandinindia.nethttp://www.expandinindia.net/blog/http://www.slideshare.net/expandinindiahttp://www.linkedin.com/groups/Expand-in-India-4075543

Prepared by:Sharaff

JueRifooRiya