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growing economy in the world (please insert growth rate here. What is the source?). In the year 2007, when India’sn GDP touched the USDa 1one trillion mark, it joined an elite group of just 12 countries to have reached this milestone. occupied a sparkling position in the elite group of 12 countries. India’sThis highly diversified economy has shown witnessed remarkable resilience since with the introduction of the 1991 reforms, which opened the economy to participate more freely in international trade and investment. The Indian economy has not suffered significantly during global economic crises, such as the did not suffer much due to the occurrence of the events like Asian currency crisis of 1998, the dotcom bust of 2001 and rising oil prices in the recent past. Despite these road bumps in the global economy, India and was able to record an average annual GDP growth of over 6.5% in the past decade. Going forward, the country is targeting an average GDP growth rate of over 8% per annum. In fact, the prime minister has exhorted India to target an economic growth rate of 10%. This robust growth is fully in congruence with ourthe macroeconomic stability. Our growth has been marked by and its notable progress in the field of information technology, high end services and knowledge process services. It has consistently showed a growth rate of 8%- 9% before the global financial crisis. Huge inflow of foreign funds, growing reserves in the foreign exchange sector, IT and real estate boom, and a thriving capital market has remained a key feature of Indian economy. The strength of the Indian economy can also be judged from the fact that the global financial crisis had minimal impact on the overall economy. The economy was still able to attain GDP growth rates at of 7.3% in 2008 while other advanced economies like US had a growth of 0.431%. During the year 2009-10, the Indian economy registered a growth of 7.4 per cent according to the estimates by the Ministry of Statistics and Programme Implementation. This It was primarily due to a surge in the manufacturing, mining and agriculture sectors. The manufacturing sector, which accounts for 80 per cent of the index of industrial production (IIP), grew 19.4 per cent in April 2010, as against 0.4 per cent in April 2009. 2 The service sector which accounts for more than half the GDP has remained the backbone of Indian economy. Foreign investments have been growing at a sharp brisk pacerate in India. The total foreign investments were USD 66.5 billion in 2009-10, more than 3 times the level in 2008-09, when it was as compared to USD 21.3 billion during 2008-09. This has also led to increase in the foreign exchange reserves from USD 251.7 billion in April 2009 to USD 279.6 billion in April 2010.3 Increasingly, Iinvestors in advanced economies have shifted from mature European markets towards the more emerging Asian markets Despite the fact that many sectors have allowed 100% FDI, India still needs to tap its full potential as a destination for foreign investment. The government expects to bring more economic and investment reforms to provide more opportunitiesy to foreign investors. It was during this year that the complete liberalization of pricing and payment of technology transfer fee, trademark, brand name and royalty took place. And now these payments are even allowed under automatic route. India is in the midst of major social transformation where the economy is showing signs of returning shows positive signal to return to the 9.0 % growth trajectory. Its vibrant and innovative private sector
1 2 3
IMF World Economic Outlook report, April 2010 The Hindu (Date? Title of article?) FICCI , May 2010 (What is the report name?)
Manufacturing in India accounts for the 80% of the Index of Industrial Production5.3 billion. India's exports dropped 4. Asia's third-largest economy is targeting close to 15 percent export growth this year7. India’s imports rose to 43 percent in April 2010 from a year earlier to $27. An Industrial Revolution India's manufacturing sector expanded at its fastest rate in more than two years in June 2010. The Ccapital goods sector has seen a growth of 15% for the first quarter of 2010. India is also expected to become the third largest economy in the world by purchasing power parity by 2012. In fact.opens up multiple plethora of investment opportunities for the foreign investors. As per the estimates of Asian Development Bank. Brazil and Mexico in 2009 to reach the 9th position from the 12th position it held in 20088. The Index of Industrial Production (IIP) has shown a growth in the first quarter of 2010. 4 5 6 PWC report (What is the title? Please specify) News One India (Date? Title?) Economic Times (Date? Title?) Economic Times (Date? Title?) 7 8 www. This is in sharp contrast to the sector’s performance in the previous three quarters of 2009 when the growth rate averaged less than 3%6.com 2 . Other non-oil imports grew by 34 percent in April to $19. Despite the strong performance and inflation near 10 percent. We believe that it is possible to move soon In fact the Government is hoping to do even better and move up to a double digit growth rate in the near future subsequent years by framing appropriate right policies and programs which promote the inclusive and sustainable growth.7% in 2011-12. respectively. The Finance Ministry has projected the growth rate of 8.7 percent in the fiscal year 2009/10 as the global slowdown dampened demand.5% and 9% for 2010-11 and 2011-12. 4 The development of SEZs and the growth of the manufacturing sector are also likely to become the key drivers for the Indian economy. India emerged as one of the world's top ten countries in industrial production as per UNIDO's new report titled 'Yearbook of Industrial Statistics 2010'. after recovering from the worst of the global economic downturn. we even feel proud to say that India surpassed Canada. Rise of Exports and Imports India has demonstrated a strong performance in its external trade ’s export and import has shown a strong growth in the past 9 months. Manufacturing sector alone has shown a growth of 17. many economists and traders expect worries about the euro zone debt crisis. India’s economic growth is again led by the manufacturing sector.2% in 2010-11 and 8.2 billion. India is projected to grow at 8.unidos.9 % in the first quarter of 2010 as against 1% in the first quarter of 2009.
Automobile industryIt has linkages with several key segments of the economy. as per a press release by the Ministry of Commerce and Industry. 153 companies have achieved Total Productive Maintenance (TPM) Excellence Award for their total productivity management practices by the Japan Institute of Plant Maintenance (JIPM) committee. India is fast emerging as a global manufacturing hub with a large number of companies shifting their manufacturing base to the country. This is benefiting the job market as more and more firms are hiring” said Frederic Neumann. as per the press release. By an estimate. Moreover. inviting comments from all stakeholders in this regard.5 billion in 2009-10 as compared to 2008-09. petroleum. As many as 21 companies have received the Deming Excellence awards. that have been recognised for excellence in quality. IT. The Ggovernment is also planning to establish National Manufacturing and Investment Zones (NMIZs) to enhance the share of push the manufacturing share in gross domestic price (GDP). the government is working on launching a National Manufacturing Policy by the end of 2010 and has already circulated a discussion paper. The proposed National Manufacturing Policy for these NMIZs would act as the key enablers in driving the growth of the sector in India. leather and garments are the leading exports from SEZs. outside of Japan. co-head of Asian Economics Research. Government Initiatives The government has issued the new Consolidated Foreign Direct Investment (FDI) policy document. the Indian automobile industry will create another five million direct and indirect jobs by 2012. Being one of the largest industries in India. as it creates multiple positive spin-offs. The Mmain objectives of NMIZs are: • • • • To promote investments in the manufacturing sector and make the country a hub for both domestic and international markets To increase the sectoral share of manufacturing in GDP to 25 per cent by 2022 To double the current employment level in the sector. engineering. India has the largest number of companies. HSBC. Exports from special economic zones (SEZs) grew by over 122 per cent to US$ 49. 2010. Moreover. This is in line with the Automotive Mission Plan to take the employment level to 3 . IT hardware. In any economy a good transportation system plays a very important role for economic and industrial development."The Indian economy is hardly pausing for breath. it has a strong multiplier effect and is capable of being the driver of economic growth. Output growth remains at a robust pace and new orders continue to pour in. the auto industry employs around 13 million people in direct and indirect jobs. which has come into effect from April 1. and To enhance global competitiveness of the sector Auto Industry In the Indian economy. the automotive industry has plays a very important role.
globally competitive auto ancillary industry Established automobile testing and R&D centers Among one of the lowest cost producers of steel in the world World's second largest manufacturer of two wheelers Fifth largest manufacturer of commercial vehicles Largest manufacturers of tractors in the world Fourth largest passenger car market in Asia India is the second largest two-wheeler market in the world 11th largest passenger car market in the world Expected to be the seventh largest auto industry by 2016 In India no industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. co-ordinate and synergisees the efforts of all stakeholders. Automotive Mission Plan (AMP) 2006-2016 has been prepared in order to make India a global automotive hub. including the passenger car segment. 9 SIAM (Anything more specific? A report? Webstie URL? Department of Heavy Industries (provide URL) 10 4 . With the gradual liberalization of the automobile sector since 1991. the number of manufacturing facilities in India has grown progressively10. The norms for Foreign Investment and import of technology have also been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive. Drivers pushing India’s Automobile sector include: • • • • • • • • • Rising industrial and agricultural output Rising per capita income Favourable demographic distribution with rising working population and middle class Urbanisation Increasing disposable incomes in rural agri-sector Availability of a variety of vehicle models meeting diverse needs and preferences Greater affordability of vehicles Easy finance schemes Favourable government policies Robust production Key characteristics of India’s auto industry India's Position in World's Production • • • • • • • • • • Well-developed. The Aautomobile industry has witnessed the impressive growth in the last two decades and has been able to restructure itself with the changing global needs9.around 25 million by 2016. At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under the automatic route in this sector. Automotive Mission Plan 2016 The objective of the Automotive Mission Plan 2016 is Tto accelerate and sustain growth in the automotive sector and to steer.
India has emerged as one of the favourite investment destinations for automotive manufacturers. India provides trained manpower at competitive costs making India a favoured global manufacturing hub. is expected to grow as the government is planning to provide incentives for manufacturing and buying these scooters. aims at doubling the contribution of automotive sector in GDP by taking the turnover to USD 145 billion and providing additional employment to 25 million people by 2016 with special emphasis on export of small cars. two and three wheelers and auto components11. Pune-based Automotive Research Association of India (ARAI) and DSM of the Netherlands have entered into an alliance to develop new lighter materials that could substitute metals in the automotive industry. MUVs. Oil & Gas The oil and gas industry is critical to India’s growth as it helps fulfil the demand for energy that is needed to drive growth.02 billion to fund its growth plans • • Road Ahead: By the year 20102 the market for electric vehicles. 2010. Oil and gas industry has been refueling the growth the Indian economy.org 5 . Some key developments include: • • • Japan-based Denso Corp and Subros Ltd formed a joint venture is formed to manufacture products for domestic market. The reason for the rapid growth of the automobile industry can be ascribed to is the growth of the Indian middle class.The Automotive Mission Plan (AMP) 2006-2016. • • During April-May 2010. with the growth of Indian economy and the with the entryance of foreign companies in India. dated June 28. In recent times. Production Provisional data released by the Ministry of Petroleum & Natural Gas. South Korea-based Kia Motors plans to venture into Indian passenger car market Mercedes-Benz is planning to make the India its R&D hub Tata Motors planning to raise USD 1. 26. particularly two-wheelers or e-bikes. an increase of 8 per cent over the corresponding period in 2009 11 12 Automotive Component Manufactures Association of India www.ibef. crude oil production went up to 5.89 MMT of crude oil was refined. which attracted the global auto majors to the Indian market.82 MMT. a 5. In the past few years.5 per cent increase over the corresponding period in 2009 During April-May 2010. and help auto components shed weight12. This industry stops and the entire economy will stop. It is the most important of all the industries. Ceat acquired 100 percent stake in its Sri Lankan investment arm ACHL. the employment has gone up and the spending power of Indians has increased.
for the oil sector which will focus on expanding the marketing network as well as quality of the products and services to customers covering four broad areas of LPG (liquefied petroleum gas). had put 70 blocks for offer in its eighth round of New Exploration Licensing Policy (NELP).13 million tonne year-on-year.36 billion. Under the agreement the company will make a cash payment of USD 263 million for a 45 percent stake in US firm Pioneer's Eagle Ford shale acreage in South Texas. RIL Buys 45 percent in US Shale Gas JV for USD 1. The sale of oil products in the country rose 3.org 6 . According to a press release by the Ministry of Petroleum and Natural Gas inIn 2009. Government’s Vision-2015 approved in 2009. GAIL to invest USD 2141 million in pipeline. State promoted Gas Authority of India Limited (GAIL) plans to invest USD 2141 million to have major presence in South India with a 2. the actual natural gas production was 9. kerosene. • Investments and Acquisitions • India auction of oil.05 billion towards drilling costs over four years.4 MMT (including sales through private imports). gas blocks fetch USD 1. according to the Ministry of Petroleum14. an increase of 3.• During April-May 2010.1 BCM.000 km gas pipeline.95 MMT during 2007-08. • • • Telecom 13 14 Ministry of Petroleum www. The company will also contribute USD 1. an increase of 43.45 per cent over sales of 128.ibef. will provide RNRL access to much needed fuel for its power projects. Government Initiatives • • For exploration of oil and natural gas fields.8 per cent in April 2010 to 12. the government also announced a seven-year tax holiday for companies involved in commercial production of gas under NELP VIII & Coal Bed Methane (CBM) IV. FDI up to 100 per cent under the automatic route is permitted.5 per cent over the corresponding period in 200913 Consumption The sales/consumption of petroleum products during 2008-09 were 133. which imports almost 75 percent of its crude needs. RIL signs gas supply accord with RNRL which subject to approval from Government.1 billion (The country. The acquisition is part of RIL's bid to tap the growing market for non-conventional energy. auto fuels and compressed natural gas/piped natural gas.
3 million.554 million. According to the Department of Industrial Policy and Promotion (DIPP). as per the Telecom Equipment and Services Export Promotion Council. its telecom tower business.49 per cent from 638. Number of telephone subscribers in India is 653. With the development of 3G. expansion of the current networks and widening of Broadband Wireless Access (BSA) network. Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for US$ 10. ascending e-auction process. Telenor now has 67. the investment in the sector is likely to increase from the US$ 20 billion witnessed last year.73 billion during April-June 2010.1 million.930. Going Global In March 2010. Other major M&A deals included acquiring of Kuwait-based Zain telecom's African business for US$ 10. The sector had seen M&A deals of around US$ 439. 3G Services The Department of Telecom (DOT) has taken the pioneering decision of launching of 3G services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private operators.Indian telecom industry has seen many fold growth in the past 5 years. which represented 67. driving the Indian player into the league of top ten telecom players globally. The government has approved the foreign direct investment (FDI) proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660.7 billion.61 million.26 million by Reliance Industries. 15 TRAI 7 . 2010. The biggest M&A deal in the sector was made by Anil Ambani's Reliance Communication Ltd that merged GTL infrastructure Ltd. an increase of 2. Telecommunications industry is one of the fastest growing in the world.92 million as on May 31. The cumulative flow of FDI in the sector during April 2000 and March 2010 is US$ 8. Going ahead we are expecting to witness an investment of around US$ 40 billion.7 billion by Bharti Airtel and acquisition of Infotel broadband for US$ 1032.32 billion in Unitech Wireless as agreed on with the latter last year. in the year 2009-10 telecom industry has attracted FDI’s worth t US$ 2. Allocation of spectrum for third-generation (3G) and broadband wireless access (BWA) services was done through a controlled simultaneous.4 million during April-June 2009.25 per cent hold of the company. Telenor has now completed its four-stage stake buy and has invested a total of US$ 1. As per an industry report the telecom industry witnessed merger and acquisition (M&A) deals worth US$ 22.19 per cent of the total valuation of the deals across all the sectors during the period analysed. Major Investments India’s telecom sector has been attracting foreign companies to invest in. Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless for a little over US$ 431.05 million in April 201015. for US$ 11 billion.
436 infrastructure sites spread over 500 districts in 27 states. 100 per cent FDI is permitted No cap on the number of access providers in any service area.2 per cent at the end of December 2009. This growth is poised to continue through the forecast period.5 per cent of the rural phones as on December 31. date)?? 8 . 2009. but it will continue to grow at double-digit rates for next three years as operators focus on rural parts of the country. The Road Ahead According to a report published by Gartner Inc in June 2009. India ranks fourth in manufacturing telecom equipment in the Asia-Pacific (Apac) region.6 million in December 2009. • • • • In the area of telecom equipment manufacturing and provision of IT-enabled services. "The Indian mobile industry has now moved out of its hyper growth mode. which are relevant to both rural and urban markets.7 per cent in 2009 to 63." Mobile market penetration is projected to increase from 38.1 per cent in March 2009 and further to 21. 122 new Unified Access Service (UAS) licences were granted to 17 companies in 22 services areas of the country Revised subscriber based criteria for allocation of Global System of Mobile Communication (GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008 To provide infrastructure support for mobile services a scheme has been launched to provide support for setting up and managing 7. The country has a 5. according to Gartner.956 towers had been set up under the scheme. As on December 31. Rural Telephony In India rural telephony has increased for 1. growing at a CAGR of 14. "Growth will also be triggered by increased adoption of valueadded services.Manufacturing According to a report by technology researcher Gartner Inc. 16 Gartner Research Report (title.5 per cent in 2013. and India is expected to remain the world's second largest wireless market after China in terms of mobile connections. about 6.3 million in March 2004 to 123. Policy Initiatives The Indian Government has taken several initiatives to boost the telecom industry. including:. Rural telephone connections have gone up from 12. In 2008.5 million in March 2009 and further to 174. senior research analyst at Gartner. The private sector has contributed significantly to the growth of rural telephony by providing 81." said Madhusudan Gupta.7 per cent share of the region's total telecom equipment production revenue of US$ 180 billion in 200916. 2009. The India mobile subscriber base is set to exceed 771 million connections by 2013. the total mobile services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 12.2 per cent in March 2002 to 15.3 per cent in the same period from 452 million in 2009.5 per cent from 2009-2013 to exceed US$ 30 billion.
China and India are the new economic powerhouses. Singapore. to strengthen the relationship between the two countries in the area of space technology. the commercial satellite launch business is estimated at around $2. ISRO has estimated a market potential of 50 satellites over the next decade.5 billion. worth around $1. During the last few years ISRO has built its reputation as a reliable satellite launch agency. Vikram Sarabhai. The rapid growth of both the economies is grabbing center stage globally. This robust growth in the bilateral trade and economic cooperation is all possible because of the concerted efforts of our honorable leaders. 2010). PSLV and GSLV. ISRO till date has launched 57 satellites (2 satellites will be launched on Aug. television broadcasting and meteorological services. High level exchanges 17 18 ISRO India Today 9 . The future of technology lies in small satellites. and Indian Remote Sensing Satellites (IRS) system for resources monitoring and management. Netherlands. Globally. The ten foreign satellites that ISRO will launch come from Algeria. 12. India launched its Chandrayan-1 with payloads from different countries. For both the economies. It is obvious that ISRO is making great strides in the space business. under the Bangkok agreement. Almost a year ago India and the US signed what is known asa Technology Safeguards Agreement (TSA). ISRO has earned more than Rs 100 crore by undertaking commercial satellite launches.India in Space India has made remarkable growth in space industry ISRO (Indian Space Research Organisation) started its operations in 1960 under the guidance of Dr. Japan. ISRO has established two major space systems. During the last three years. Space analysts feel that India will become a major player in the emerging small satellite manufacturing industry. The India China relationship These two ancient civilizations . In October 2008 too.has attracted the world’s attention towards them especially in the past decade. Both the nations accorded most favored nation (MFN) status to each other in the year 1984.China and India accounts for more than 40% of the total world population. abundant resources and huge domestic markets. it has launched more than 20 satellites—mostly small satellites— for other countries and currently has orders for approximately ten more such launches18. seriously looking at launching satellites from other countries. the bilateral relations are the top most priority in their foreign policies. Small satellites are being continuously launched by ISRO both for India as well as for overseas clients in the last few years. INSAT for communication. In the current Of this wave of globalization. ISRO has developed two satellite launch vehicles.5 billion and growing rapidly over the next couple of years. opening a new source of income for the country in the international space market. and two from Indonesia. Till date. both the countries provide tariff preference to each other. to place INSAT and IRS satellites in the required orbits17. Further. Canada. They play a significant role in the global arena because of their vast pool of talented people.
Hence the Indian embassy has made plans to organize various business events in the main cities of China. The Indian Prime minster visit to China in 2003 and 2008 and Chinese Premier and President Visit to India in 2005 and 2006 have set the stage for both the nations to convert this century into Asian Century. the first business event took place in Xian organized by CII and CCPIT Shaanxi where Chinese companies were encouraged to leverage on the competitive advantages of Indian companies in sectors like IT. The leading Chinese player in construction machinery industry i.3 bn in 2001-02 to USD 37. 9 bn in 2007-08.e. human rights and South-South Co-operation. This year we are celebrating 60 years of the establishment of diplomatic relations. Presidents and Prime Ministers. Economic and Trade Relations India and China possess the world’s largest bilateral trading relationship which acts as a stabilizing force in Indian-Chinese relations. Many Chinese and Indian companies across sectors have established their offices in each other countries. Shandong Electric Power Construction Corporation. India is looking forward to build its partnership with China in order to construct world class infrastructure. India and China signed an agreement to establish a hotline between the Prime Ministers of the two countries. 2010 in which a MoU was signed on Expansion of Trade and Economic Cooperation. Indian IT can help Chinese companies to go global where as Indian pharmaceuticals will help the Chinese health care system to meet the increasing requirements. a unit of the State Grid Corp. arms control and disarmament. 2010. the trade between cChina and India has increased reached from USD2. On 9th April. WTO. The main Chinese exports to India are electric machinery. On April 7. 2010.5 billion deal to build and operate three 660-MW generators in Orissa. registering a CAGR of 53. cheap electronic items. The 8th Ministerial level meeting of the India-China Joint Economic Group was held in Beijing on 19th January. The Indian Prime Minister Dr Manmohan SinghM and Premier Wen Jiabao signed a joint document on “A Shared Vision for the 21st Century between the Republic of India and the People’s Republic of China” in 2008 which signifies that Sino-Indian ties have gone beyond the bilateral context and acquired a global character. climate change.India and China have maintained a healthy momentum in high level exchanges which includes frequent visits by the Foreign ministers. It is seeking help in its road and rail projects. China has emerged as the largest trading partner of India and India occupied the 10 th position in the list of trading partners of China. In November 2006. Around three fourth of Indian exports to China comprises of commodities and raw materials like iron ore. non-traditional security threats. and toys because of its low manufacturing costs. The delegations are seeking access for Indian pharmaceuticals companies. engineering goods. Pharmaceuticals and specialized engineering. In few years. 10 . As per the statistics of Directorate General of Foreign Trade (DGFT). (Refer Annexure 1 for more details) The numerous meetings are being held between the nations to take its business and trade relations to the next higher level. Around 100 participants from both Chinese and Indian companies participated for the business networking session. There exists congruence of interest between the two countries and both are willing to work together on regional and international issues related to the diversification of global energy mix. inked $1. garments. counter-terrorism. IT-enabled services and agricultural products to the huge Chinese market. The trade targets set up by both the ministers in 2005 to touch bilateral USD 20 bn and USD 30 bn by 2008 and 2010 respectively have been met much ahead of the deadline.58%. the two countries developed a multiten --pronged strategy to strengthen their relationship. SANY group has set up its manufacturing facility in Pune. its relation. Recently.
agriculture. Christian. the last being held in 2009. and Sikh architecture. the two countries are organizing a ‘Festival of India’ in China and a ‘Festival of China’ in India in 2010 as well. with its theme of “Cities of Harmony”. To promote greater awareness of each others’ culture. Hindu. youths and Ministry of External Affairs. meetings. Frequent visits by high level delegations of the Navy and Air force often take place between the nations. Defence Cooperation The close ties are even maintained in the field of defence. This is the fifteenth in an ongoing series that will look at the upcoming expo. Hidden behind its veneer of an ancient temple are the tools of a technologically advanced sustainable future. thereby maintaining a healthy relationship for their economies to flourish. Better Life" gives a platform for a vast range of interpretations by the 189 countries and 57 international organizations which are participating.However special focus on the trade and investment of knowledge based services is still required and the increasing bilateral investments can make substantive difference in their relationship.” meaning it produces safe runoff containing no effluents. It is worthy to note that efforts to build trust and confidence between the militaries of both the nations are proceeding satisfactorily. Regular exchange programmes are conducted for students. environment. The Expo's theme of "Better City. energy. 11 . water resources. This was demonstrated can be proved by the fact thatwhen both the Prime Ministers held bilateral consultations with respect to the Copenhagen summit to ensure that the goal of developing countries are met while dealing with challenges of climate change. the third defence dialogue was also conducted in China. Cooperation in other areas The two countries are co-operating each other in various areas like finance. especially relevant to India as the country experiences the natural growing pains of greater influence in Asia and abroad. Expo Shanghai 2010 The 2010 World Exposition in Shanghai will be the first registered one in a developing country. India’s Pavilion at the 2010 World Expo in Shanghai.” which will last 184 days will provide China an opportunity to show off its remarkable economic growth. effectively symbolizing the harmony of all diverse religions and cultures. The dome links Indian and Chinese cultures through its Buddhist foundation. and tourism and information technology by signing mutual agreements and MOUs. The pavilion is designed to be a “zero-chemicals zone. climate change and energy security. but also major religions as a recurring architectural theme in Islamic. by extension also projects an international message of global unity. “Expo Shanghai 2010. agreements and high level exchanges both the countries are making continuous attempts to reignite their diplomatic and economic ties. They both extend hands assistance to each other when the cooperation is required on the global issues such as world trade negotiations. Thus with regular conferences . from country pavilions to trade development. There are regular joint military exercises in order to combat terrorism. The expo will also give foreign nations and companies an opportunity to build up business partnerships with China and Chinese companies. In the beginning of this year.
Driven by the demands of a humongous large population the market. between two of the world’s oldest civilizations date back thousands of years to at least the second century B. India is a fast-growing economy with a vibrant and robust financial system.C. Our Indeed.54 percent during the impact period of global financial crisis in 2009.china-briefing. rapidly growing disposable incomes are enhancing harmonize the enthusiasm of the average Indian to adopt the latest adapt to and learn global trends. and they peacefully coexisted for most of that time. India makes sure a stable policy environment and its independent institutions guarantee the rule of law.000 by 2015 (over US$30.termed Foreign Institutional Investment (FII) and Foreign Direct Investment (FDI). diversity can live in harmony. the competition for more commodities and markets is certain to create diplomatic rowschallenges. the most gripping compelling reason for investors to be in India is that it provides a high return on investment. services and manufacturing continues at about 10-12% per annum. Total China-India trade grew 34 percent in 2008 to US$51.both through the Equity markets . While its size and growth potential make India attractive as a market.investmentcommission.8 billion before falling 16. cultural ties.a.Indian officials stress that India’s participation in the Shanghai Expo a total cost of US$50 million is purely rooted in a desire to broaden cultural and economic exchange. Other products markets are equally enormous and growing quickly. Growth in key sectors like infrastructure.html 20 http://www.000 in PPP* terms). Despite the drop. for basic goods such as groceries and textiles is already huge. thriving bilateral trade has been the driving force improving relations as India and China cooperate on key issues like climate change and global trade. To overcome greater conflict. As a democratic nation. The economic reforms since the early nineties have unleashed a new entrepreneurial spirit creating a vibrant economy supported by rising per capita income. China remains India’s largest trading partner and a key economic ally. India is in the global arena for increased foreign investment . the two countries will have to continue to concentrate on the greater mutual interests that bind them together in the face of difference and diverse thought. Over 300 million Indians (63 million households) are expected to have a household income of over US$6. growing at over approximately 75 million per annum. In the past 10 years. For instance as per Investment Commission of India: • • 19 Over 225 million telephone subscribers.20 Increased availability and use of consumer finance and credit cards and.in 12 . This has led to the creation of a swiftly growing consumer base and one of the world’s largest markets for manufactured goods and services. India’s Potential and Growth Story India’s is becoming the destination of choice for investors through its competitiveness from a natural and human resources standpoint. Over 8 million TV sets and 4 million refrigerators are sold annually and expected to growth at 20% p. By unifying on these issues. indicating a long history of shared relations and cooperation..19 As the world’s two fastest growing economies extend their geopolitical power.com/news/2010/04/30/shanghai-expo-2010-the-indianpavilion. India is experiencing a rapid growth in consumer spending. http://www.
leather goods.2 million.During 2009. India’s Demographic Advantage . jewellery. India will see 70 million new entrants to its workforce over the next 5 years. Further. This will take India's GDP growth to 10% by 2020. ivory and brass work are the main shopping items of foreign tourists. One of the highlights of India’s financial sector is that it has the largest number of listed companies across 23 Stock Exchanges and the third largest investor base in the world. India is ranked 11th in the Asia Pacific region and 62ndoverall. Russia.• Total production of vehicles has crossed 11 million in 2006-07. mutual funds. In fact. the government. can be attributed to thisis its workforce which is the world’s youngest. Marketing efforts to promote the India brand to international markets also increased during 2009. carpets.the largest among in the world of the BRIC (Brazil. India’s New Opportunity – 2020 13 . One of the factors making that enhance India’s attractiveness as an investment destination. river and mountain peaks for adventure tourism. India has been ranked 1st by AT Kearney in a Global Retail Development Index of 30 developing countries and is seen as a potential gold mine. the number of Indians who know English is more than the population of the USA.India’s human capital is hallmarked by an unmatched resource of an educated. technological parks and science museums for science tourism. India and China) countries. snow. centers of pilgrimage for spiritual tourism. India’s diverse cultural heritage puts its citizens at ease with people from other cultures and vice versa. regardless of where they come from.21 The poorer Indian states will start catching up with the richer ones. Initiatives by the government support tourism in turbulent times. In 1998-99. Its visitor-friendly traditions.India’s financial sector has been one of the fastest growing and soundly insulated sectors in the economy. skilled and ambitious workforce. The other attractions include beautiful beaches.22 Tourism in India As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum. India is projected to stay the youngest with its working-age population estimated to rise to 70% of the total demographic by 2030 . India’s healthy and vibrant financial sector. the Reserve Bank of India reduced interest rates and cash reserve ratios considerably and also launched stimulus packages to sustain growth.6 million in 2004-05. It has also observed increased private sector activity including an explosion of foreign banks. forests and wild life and landscapes for eco-tourism. English is the language of business in India and the large English-speaking workforce is a benefit to investors and employers. ayurveda and natural health resorts also attract tourists. India is a state known for its generous hospitable conduct to all visitors. Yoga. To counterbalance the stress of the economic downturn.investmentcommission. heritage trains and hotels for heritage tourism. with the year being 21 22 http://www. hard-working. this was only 4. moving up three places on the list of the world's attractive destinations. together with Ministry of Tourism assumed numerous programs to help the country’s ailing tourism industry. varied life styles and cultural heritage and colourful fairs and festivals hoeld abiding attractions for allthe tourists. The Indian handicrafts above all. and venture capital and investment institutions.in Report Of The High Level Strategic Group (Consulting Partner The Boston Consulting Group). insurance companies. up from 8.
The key component of government’s ‘strategy of inclusive growth’ is inclusive governance as the means of empowering the disadvantaged. the demand for travel and tourism in India is expected to grow by 8.3 billion by 2019. with the aim of enabling them to overcome their poverty.2 per cent between 2010 and 2019 and will place India at the third position in the world. the government made security checks in the country even more stringent. It also exemplifies our country’s resolve to bridge fast the infrastructure deficit. Commonwealth Games to be held in the Capital in October. 23 Be it agriculture. 2010 Honourable Prime Minister Mr.designated “Visit India” year. high-performance air-conditioning. The report also states that real GDP growth for travel and tourism economy is expected to achieve an average of 7.000 crore. with tourist security a major concern. there are many more still to participate in the country’s growth. resulting in strong value and volume growth. a huge success. 23 Commonwealth Journal of Local Governance Issue 2: January 2009 14 . and formulated policies to ensure the safety of tourists in India. released by WTTC and its strategic partner Oxford Economics in March 2009. the government is optimistic that all the deadlines for the games will be met. and that the city will be equipped with world class facilities. Though the development process is running behind schedule. The New Terminal 3 at Delhi Airport. However. Commonwealth Games at the top of the agenda The government is highly focused on making the 2010 Commonwealth Games.7 per cent per annum over the next 10 years. which are being held in Delhi. built by the GMR-led consortium Delhi International Airport (DIAL) in a record 37 months. India’s Inclusive Growth ‘Inclusive Growth’ is both the title and the overarching goal of the Eleventh Five Year Plan of India. T3 will be one of the few green airports in the world. The Road Ahead for Tourism According to the Travel & Tourism Competitiveness Report 2009 brought out by the World Economic Forum. The games are expected to give a boost to Indian tourism. the contribution of travel and tourism to gross domestic product (GDP) is expected to be at US$ 187. waste-water treatment and reuse of treated water. This airport terminal establishes new global standards. tThe Terminal 3 or T3. India already is one of the largest economies in the world with a high GDP growth rate and is poised to overtake the world’s largest economies in the next 25-30 years. having eco-friendly features like energy-efficient buildings. Further according to the Tourism Satellite Accounting (TSA) research.Putting India on Runway to Future On 3 July. Furthermore. and is the world’s sixth-largest terminal built at a cost of Rs 9. It has made efforts to boost tourism in the country and formulated specific policies to aid developments related to the Commonwealth Games. and use of municipal waste to generate electricity. Manmohan Singh dedicated to the nation an ultra-modern airport terminal at the Indira Gandhi International airport in Delhi. rain water harvesting. is a swanky steel-and-glass structure. finance or education it is important to seek solutions for a social change and engage all the growth factors to increase social inclusion.
domestic enterprises. employment and income which will help stabilize its internal security and social environment. entrepreneurs. with its young population there will be no looking back for India. Last but not the least. Reserve Bank of India has taken several measures for promoting financial inclusion such as advising banks to open ‘no frills’ accounts. In area of Financial inclusion. other indicators like the capital markets. technology and investment.For inclusive growth it is imperative that both public and private sectors come forward and contribute. foreign exchange reserves. The players to be included in this enormous task – and who need to be included in all major national programmes – are national governments. for instance in area of Digital inclusion. promotion of financial literacy. 15 . NGOs. international organizations. To successfully address the challenge of achieving inclusive growth. rising levels of education. There have been efforts in various areas both by public and private sector players. academia and the media. multinational corporations. setting up of Kiosks in rural areas for farmers which contain PCs that help deliver information and connectivity to villages where Microsoft India has been a major contributor. local governments. In the times to come India will be emerge as a more integrated economy with the global economy and will be a major player in terms of trade. and adoption of Information and Communication Technology solutions for achieving greater outreach. It would not be incorrect to say that public-private-partnerships are the future. will require mobilization of all possible stakeholders. Conclusion India’s economy is at the fulcrum of an ever increasing growth curve. With both the industry and the services sector growing at a rapid speed than ever before. introduction of Business Correspondent (BC) /Business Facilitator (BF) model. foreign trade and FDI – too underline India’s growth story.
Annexure 1 16 .
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