Escolar Documentos
Profissional Documentos
Cultura Documentos
- An Overview
1
Overview of
the Indian Economy
2
Key Characteristics
3
Economy: Strong Fundamentals
• Sustained GDP growth over the last decade – around 6% - despite significant
obstacles
• Inflation reached all-time low in 2002 and and currently hovers around at 4.5%
• Post 9/11 Foreign Direct Investment (FDI) grew 52% over the previous year –
US$ 6.1 bn (2001-02)
• Based on PPP, India is the fourth largest economy (US $ 2.9 trillion)
5
Electronics & Information Technology
6
Indian Electronics & IT Industry
7
Indian Industry Grew at over 35% CAGR between 1999 and 2003
8
Production - 2002-03
CAGR
Value Growth (5 years)
9
Overview
10
Exports - 2002-03
CAGR
Value Growth (5 years)
11
Strong Performance and Growth Potential
100
CAGR
96-97 to 02-03: 24%
80 02-03 to 08-09: 32%
in US$ billions
60
60
40
US$ 21.25 bn
2.7 40
20 US$ 5.8 bn
10.4
8.15
0
1996-97 2002-03 2008E
Target
Cable TV 4m 13% 70 m
Subscribers
PC Penetration 8m 27% 20 m
Cell Phones
23 m 28% 45 m
44 m 30% 125 m
Telephones
Source: STPI 13
Global Outsourcing – a Key Driver for Exports
12
8
in US$ billions
6
10.4
0.6
4
2 4
0
1999-2000 2002-03
15
IT Industry by the Year 2008
IT Exports
¾ 35% of India’s Total Exports in 2008
¾ from 20.4% during 2002-03
16
The India Advantage
17
Why India?
• R&D Strengths
• Government Incentives
18
Large Talent Pool in India Gives it a Significant Edge
annum 350,000
Workforce Number
300,000
• 675,000 Technical Graduates p.a which 250,000 500,000
include 200,000 385,000
150,000
• 375,000 Engineers
100,000
160,000
• ~ 50,000 Management Graduates 50,000
0
• Large pool of English speaking, computer IT Enabled Software Electronics
Services Hardware
savvy graduates
Significant portion of new graduates are being employed by the Electronics hardware and IT Sector
Source: Department of Education, Ministry of HRD, E&Y Research 8
Source: Ministry of IT, Press Reports 19
Excellent sources for knowledge and human resources
India has successfully developed world-class technical and management institutions over the last 40 years
Source: STPI 20
Significant strengths in R&D
• Profits on exports under EHTP/STP scheme exempt from tax till 2010
• Labour reforms
23
Thank You
24