the indian scenario

7/28/2019 The Indian Scenario

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The Indian scenario

ByPrem Behl

Chairman

Exhibitions India Group


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1. The Indian Economy: An Overview

2. History of the Indian exhibitions industry

3. Exhibitions Venues in India

4. Doing business in India

Index


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The Indian Economy: An Overview

1.


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20

13 7

36

70

1950s 1960s 1970s 1980s 1990s

The fastest rise in incomes.

% rise in per capita income


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The biggest drop in inflation

% decrease in inflation

9.5

9.1

7.4

4

1970s 1980s 1990s 2000-4


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Have prompted a spending boom

% growth in consumption expenditure

5.9

9.5

6.5

11.4

2000-01 2001-02 2002-03 2003-04


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as well as the highest level of savings

13.8

19.321.9

26.6

1980-81 1990-91 2000-01 2003-04

Household savings as % of GDP


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The economy is riding high

% annual growth in GDP

4.4

8.5

6.9 7*

2002-03 2003-04 2004-05 2005-06


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India is the 4th largesteconomy in the world as measured by

purchasing power

Between 1980 and 2003, Indias economy grew at an average

rate of5.7%

During the same period, Indias real income per head grew by

125%

Dr. Manmohan Singh, Finance Minister in 1991 and architect of

Indias economic reforms, is the current Prime Minister


Additional economic indicators:


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India has a consumerbase of 1.2 billion people, and

The youngest population of the world hencesustainable,long

term growth is assured

Modern (organised) retail converging with the consumption boom

will open up manyopportunities for small and mid-size consumer

companies

With upper income and rich classes growing rapidly and deprived

classes actually falling, Indias incomedemographics will actually

be unrecognizable by the end of the decade



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Home ownership is on the rise with 5Million homes added every year,

approximately 1.5Million new homes added in urban areas

Mobile telephone subscriber base has grown from 0.3 Million in 1996to over 55 Million currently; expected to grow to 200 Million by 2008

13 Million credit card holders currently & growing at40% p.a.

Passenger car sales of USD 5 Billion in 2004, more thantwice thelevel of sales five years earlier



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0

10

2030

40

50

60

70

Percent

0

1

2

3

4

5

US

$

Thousands

Consumption share of GDP Population Dependency RatioPer Capital Consumption

Population Dependency Ratio = Ratio of Pop aged 65 years or over to the population aged 15-64 (Source: Morgan Stanley)

Growth at the margin

will close the gap

between Indias per

capita consumption

and Chinas

Private consumption currently accounts for 64% of Indian GDPhigher than Europe(58%), Japan (55%) and China (42%)

Emerging consumerism from one of the worldsyoungest population

China India


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36

30

37 3839 39

44 44

USA China Russia UK

24

30

35

40

45

50

Medianagein

years

24

India

31

2000 2025

Indians are Younger than the World


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India in 2050

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,00045,000

50,000

China US In

diaJapan

Brazil

Russia UK

Germany

Fran

ce Italy

US2

003

$

billions

0

1

2

3

4

5

6

7

8

2005-10 2015-20 2025-30 2035-40 2045-50

5-Ye

arPeriodAveragePercentP

er

Annum

Brazil

China

India

Russia

India will be the 3rdlargest economy. ..with the highest growth rate of BRICs

BRICs = Brazil, Russia, India, China

Source: Goldman Sachs, Dreaming with the BRICs


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Analysts View of the Indian Economy India is on the cusp ofsomething big.[I] am as enthusiastic about India

as I was about China in the late 1990s. Whatexcitesme mostis the

potential for an increasinglypowerfulinternal consumption dynamicthe

missing link in most development models.

Stephen S. Roach, Chief Economist, Morgan Stanley Equity Research Global,

October 31, 2005

A dynamic and open India would have an important impact on the world

economy. If India continues to embrace globalization and reform, Indian

imports could increasingly operate as a driver of global growth as it is one

of a handful of economies forecast to have agrowing working-age

populationover the next 40 years.

IMF, World Economic Outlook, September 2005


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History of the Indian exhibitions industry2.


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History of the Indian exhibitions industry

The history of Indian exhibitions dates back hundreds of years

Take, for example, Indias huge Pushkar Mela now a great

tourist attraction

Thousands of camels are traded on the sands of Rajasthan

annually, even today


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Soon after independence, in the late

1940s, the Government set up the

Directorate of Exhibitions under the

Ministry of Commerce

An exhibition ground in New Delhi

was developed to host the Railways

exhibition in 1952 to mark thecentenary of railways in India


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1970

The Trade Development Authority (TDA) was set up in 1970 under

the Ministry of Commerce

1972 The fair ground was christened

Pragati Maidan

Pragati Maidan hosted Asia72:

third Asian International Trade Faircoinciding with Indias Silver Jubilee

Year of Independence


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1977

The Trade Fair Authority of India (TFAI) is formed by an Act of

Parliament with the aim of organising trade shows

1992

The India Trade Promotion Organisation (ITPO) is formed by

merging the Trade Development Authority (TDA) with the Trade

Fair Authority of India (TFAI)


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Exhibitions Venues in India3.


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Exhibitions Venues

in India

Exhibition Venues

International Airports

Exhibition Venues

International Airports


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Exhibitions Venues in India

New DelhiName Area

(in sqm.)

Outdoor Area(in sqm.)

Additional facilities

Pragati Maidan

Owned and managed by the IndianTrade Promotion Organisation (ITPO)

60,000 10,000 2 Conference Halls

(capacity200 each),4 theaters


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New DelhiPragati Maidan is a massive venue of 149 acres in the heart of Indias

capital city

The venues 16 exhibition halls and other facilities are ageing and farfrom being world class

The ITPO has proposed to completely modernize and revamp the

venue by 2010 (subject to approval by the Commerce Ministry)
http://www.epch.com/ihgf/files/picture_gallery.html


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Greater NoidaName Area

(in sqm.)


I ndia Expo Center

Owned by the Export PromotionCouncil for Handicrafts (EPCH)

7,500 1stphase of construction complete.

Another 20,000 sqm., as well as a 5star hotel, to be built by 2008


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MumbaiName Area

(in sqm.)

Outdoor

Area (in sqm.)


Expo Center

Owned by the World Trade Center

2,500 n/a n/a

Bandra Kurla Complex

Owned by the Maharashtra Dev. Co.

n/a 50,000 Organisers typically set up air

conditioned hangars

Bombay Exhibition Center

Owned by Nesco Ltd.

60,000 n/a Non air-conditioned halls


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ChennaiName Area

(in sqm.)

Outdoor

Area (in sqm.)


Chennai Trade Center

Owned by the Indian TradePromotion Organisation (ITPO)

and the Govt. of Tamil Nadu

6,800 3,000 Opened in 2001,

1stphase completeConference Room

(Capacity200 people)


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BangaloreName Area

(in sqm.)



KTPO Exhibition Complex

Owned by the ITPO and theKarnataka Industrial Area

Development Board (KIADB)

5,500 4000 Opened in 2004,

1st

phase completeConference Room

(capacity200)


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Hyderabad

Name Area(in sqm.)



H itex Exhibition Center

Jointly owned by the Govt. of AndhraPradesh and the private sector

10,000 30,000 Opened in 2003

1st

phase complete


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Opportunities Aplenty

The needfor quality trade shows and venues is apparent

If India and China are Asias emerging giants, then India is falling

terribly behindin its trade fair development

China has approximately 150 exhibition centers and 3 million

square meters of exhibition space

India, according to our calculations, has 6 dedicated exhibition

venues and 90,000 square meters of indoor exhibition spacethis

is estimated to increase by 40% in 3 years


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Doing business in India4.


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Doing business in India

There exists a myth that doing business in India is difficult.

With the right Indian partners, this is not at all the case

United Nations World Investment Report 2005

A TNC (transnational corporations) survey has ranked India

as the third mostattractive investment destination

In the same report, a UN expert opinion group ranked India asthesecond mostattractive investment destination


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Indian Trade Promotion Organisation(ITPO)

In order to organise a trade show in India, an organiser must gain

approval from the ITPO

For leading trade show organisers, this is astraight forwardand

simple process

This approval consists of a Customs Notification allowing the

duty free temporary import of goods to be displayed


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Customs

In line with international practices, there exists a well

established system allowing foreign participants the facility of

duty free temporary imports for exhibitions

India is a signatory to the ATA convention.ATA Carnets are

accepted at all major exhibition destinations in India


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Freight Handling

There are professional and experienced exhibition logistics

companies that provide afull range of services

The scope of services range from customs clearance to on site

handlingwith modern mechanical handling equipment and a

skilled work force

These logistic service providers have an extensive internationalnetwork



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The following is a brief list of leading freight forwarders

RE Rogers India Pvt. Ltd.

Translink Express (I) Pvt. Ltd.

Schenker India Pvt. Ltd.

Orient Marine Lines Pvt. Ltd.

The following is a brief list of leading stand constructers

Pavilions & Interiors India Pvt. Ltd.

PICO International Exhibitions Pvt. Ltd. Meroform (India) Pvt. Ltd.

Kingsmen Fairtech International Pvt. Ltd.


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Exchange Control

All investments can be on a repatriation basis

Original investment, profits and dividends can be freelyrepatriated

Foreign investors can acquire immovable property incidental to or

required for their activity

(Source: Ministry of Commerce & Industry, Government of India)


Reforms in Exchange Control & Taxation


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Reforms in Exchange Control & TaxationTaxation

Companies incorporated in India are treated as Indian companiesfortaxation

There exists a Double Taxation Avoidance Agreement with 65countries

Peak Custom duty has been reducedto 15%

Corporate Tax has been reducedto 30%

Tariff to be aligned withASEAN levels

Value Added Tax introducedin some States from 1st April 2005

Transparency in Tax Structure: Online/ ICTApplications

(Source: Ministry of Commerce & Industry, Government of India)



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Thank You


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the indian scenario

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