1. Manufacturing Sector inIndian EconomyPresented by EMBA Batch IIFabulous- 5

2. TODAYManufacturing Growth One of the fastest growing world economies Reasonably proactivePredictions Opening up of sectors for investmentContribution to GDP Promising consumer marketsDemand drivers Significant investment in infrastructure creation for industryAutomobile IndustryFMCGInfrastructureSustaining2 3. 11.3% 12%9.2%9.1% MANUFACTURING6.0%7.4%GROWTH2.9%PLAN20062001-2002-2003-2004-2005-Q-1, XI- 02 03 04 05 06Consistently growing GDP (%) National Manufacturing CompetitivenessCouncil Progressive reduction in taxes andtariffs, - Manufacturing Hub Exports from India likely to grow to USD300 billion in 2015 from USD 48 billion in2003Among the top 5 economiesSource : Planning Commission 4. Year 2007 vs. Year 2020 predictions US JapanGermany UKFrance Italy Canada China Brazil MexicoIndiaRussia 05,000 10,000 15,00020,000 25,000Source : KPMGGDP (US$bn)India emerging as one of the top global economies4 5. CONTRIBUTION OF MANUFACTURING IN GDP 15.18 15.1515.00 15.0720.0014.75Percentage of GDP15.00 6.73 6.516.22 6.0910.005.872.34 2.372.20 2.302.292.232.222.202.152.05 5.00 0.00 2001-022002-032003-042004-05 2005-06 ManufacturingConstruction Eelectricity, Gas & Water Supply Mining & Quarrying Average contribution of Industry in GDP (2001-06) ~ 26% Average contribution of Manufacturing in Industry (2001-06) ~ 58%Source : CSO 5 6. Indian manufacturing demand drivers YOUNG DEMOGRAPHY AutomobileFMCGGROWING ECONOMYInfrastructureOthersURBANIZATION 6 7. Indian Automotive IndustryVehicle sales in India in 2005 - 06 ( in mil) Key contributor to the Economy 0.36 Grown at a CAGR of 14% pa(2001-2006)7.05 0.35 Sales of 9 million vehicles in 2005-061.14 2nd largest two wheeler market 4th largest commercial vehicle market 0 246 8 11th largest passenger car ,expected to be the 7th largest market by 2016 Cars CVs Two wheelers Three WheelersSource : SIAM 8. FMCG & Food Processing Worlds largest producer of tea, sugarcane and milk FDI of 100% permitted (except in special cases, capital goods) All profits are free of corporate tax and minimum alternate taxThe company plans to invest around USD 500 Mn in IndiaLargest beverage player. Invested more than USD 1 bn sinceits entry into India 9. The Indian infrastructure industryIndian Engineering and Construction industry recorded a CAGR of 8.4%over the last two decades 04-07 03-04Urban Infrastructure Global Engineering & Construction spending growthRoadsProspects in the longer term remain Positive. Industry projected to further grow by 7-8% annually -faster than the countrys projected GDP growth9 10. Sustaining Manufacturing Growth Product Engineering Role of IPRNow the time to develop a robust, thoughtful and plan to build, maintain and fund a world class 21st CenturyWhat We Need to do ? 11. Thank you!11