Industry Analysis

Banking
The Indian banking sector comprises 26 state sector banks, besides a number of private as well as co-operative sector players. The banking sector in India has made significant progress in the last five years the growth is well reflected through parameters including profitability, annual credit growth, and decline in nonperforming assets (NPAs). In the last decade, the sector witnessed many positive developments, as policy makers which comprise the Reserve Bank of India (RBI), Ministry of Finance and associated government and financial sector regulatory entities, made several distinguished efforts to improve regulation. Worth noting is the fact that Indias banking sector has been one of the very few ones that have actually been able to maintain resilience without much impacting the growth process. India has the potential to become the third largest banking sector by 2050 after China and US, according to a PricewaterhouseCoopers (PwC) report titled Banking In 2050. The report states that India has particularly strong long-term growth potential. Indian Banking Sector Key Drivers

The countrys economy grew by 8.5 per cent in the last fiscal and the government expects the growth impetus to continue this year as well More than 50 per cent of Indias population is under the age of 30 years, which is a major target group for banks

Penetration of banking services in the country remains low. The government has set targets to provide banking facilities to all areas with a population of over 2,000 by March, 2012.

Key statistics The average tier-1 Capital Adequacy Ratio (CAR) of the Indian banking industry is above 10 per cent. Efficient internal capital generation, fairly active capital markets, and strong support from the government ensured good capitalisation for most banks. The overall CAR reached 14 per cent as on March 31, 2011. High levels of public deposits also ensured a comfortable liquidity profile The total assets size of the banking industry rose by more than five times between March 2000 and March 2010 - from US$ 250 billion to more than US$ 1.3 trillion - a Compound Annual Growth Rate (CAGR) of 18 per cent compared to the average GDP growth of 7.2 per cent during the same period. During the last five years, while the annual rate of credit growth was 23 per cent, profitability was maintained at around 15 per cent. While the Indian banking sector is characterised by the presence of a large number of players, top 10 banks accounted for a significant 57 per cent share of the total credit, With respect to gross bank credit, nationalised banks had the highest share of 51.6 per cent in the total bank credit. They were followed by SBI and its associates at 22.7 per cent and new private sector banks at 13.7 per cent. Foreign banks, old private sector banks and regional rural banks had comparatively lower shares in the total bank credit at 5.1 per cent, 4.5 per cent and 2.5 per cent, respectively. India's foreign exchange reserves were US$ 314.6 billion as on July 8, 2011, according to the data in the weekly statistical supplement (WSS) released by RBI.. Trends& Developments Payments and banking transactions through mobile phones in India are likely to reach US$350 billion by 2015, Around 350,000 villages spanning the entire India would have access to financial services offered by banks in the next two financial years Indias mortgage loan and wealth management business will grow 10 times by 2020, both in terms of number of accounts and number of borrowers, the banking segment in India holds huge potential for the future.

Power
As the Indian economy continues to surge ahead, its power sector has been expanding concurrently to support the growth rate. The demand for power is growing exponentially and the scope of growth of this sector is immense. The total installed capacity of India in 2011 is estimated to be around 1,76,990.40 megawatt (MW).Thermal power in India is responsible for two-third of power generation in India which includes using gas, liquid fuel and coal. This year thermal power in India has provided 115649.48 MW in which 96,743.38 MW was generated from coal, 17,706.35 MW from Gas and 1,199.75 MW from oil. Further, Hydro power in India (Renewable) provided 38,106.40 MW; Nuclear power provided 4,780.00 MW and RES (MNRE) 18,484.52 MW. Power in India: Growth Drivers In terms of power generation, India is the sixth largest in the entire world. Over the past 30 years the demand for power in India has enhanced at 3.6 per cent per annum on the back of economic growth of India. The per capita energy consumption was at 733.54 kilowatt in the year 2008-2009. The Government of India has set the target Power for all by 2012 to meet with the energy requirement of the entire country, by adding 78,000 MW of installed generation capacity by 2012. According to the experts, the total demand for electricity will be above 950,000 MW by 2030. India has taken all the steps needed to provide energy from renewable sources such as wind and solar power. In early 2011 the capacity of wind power in India stood at around 12,000 MW.. Power Sector in India: Recent Trends and Investments The power sector in India has grown rapidly over the years. Considerable growth has been witnessed in all the sectors such as thermal (3.82 per cent), hydroelectric (9.97 per cent) and nuclear (40.94 per cent). As per the 11th Annual Plan, , the overall achievement growth in the year 2010-11 has been around 5.56 per cent.100 per cent FDI is permitted under the automatic route for generation and transmission of electric energy produced in hydro-electric, coal/lignite-based thermal plants, oil-based

thermal plants and gas-based thermal plants; non-conventional energy generation and distribution, distribution of electric energy to households, industrial commercial and other users; and power trading.

Information technology
Poised to become a US$ 225 billion industry by 2020, the Indian information technology (IT) industry has played a key role in putting India on the global map. The IT-BPO sector has become one of the most significant growth catalysts for the Indian economy. In addition to fuelling Indias economy, this industry is also positively influencing the lives of its people through an active direct and indirect contribution to various socioeconomic parameters such as employment, standard of living and diversity. The industry has played a significant role in transforming Indias image from a slow moving bureaucratic economy to a land of innovative entrepreneurs and a global player in providing world class technology solutions and business services, according to National Association of Software and Service Companies (NASSCOM). The sector is estimated to have grown by 19 per cent in the FY2011, clocking revenue of almost US$ 76 billion. Indias outsourcing industry has witnessed a rebound and registered better than expected growth according to NASSCOM. The export revenues are estimated to have aggregated to US$ 59 billion in FY2011 and contributed 26 per cent as its share in total Indian exports (merchandise plus services), according to a research report IT-BPO Sector in India: Strategic Review 2011, published by NASSCOM. The workforce in Indian IT industry will touch 30 million by 2020 and this sunrise industry is expected to continue its mammoth growth, expect various industry experts.. The data centre services market in the country is forecast to grow at a compound annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to research firm IDC India's report. The IDC India report stated that the overall India data centre services market in 2009 was estimated at US$ 1.39 billion.India will see its number of internet users triple to 237 million by 2015, from 81 million registered in September 2010, according to a report

titled 'Internet's New bn. The Growth Story The countrys domestic market for business process outsourcing (BPO) is projected to grow over 23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, the domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPO market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014.

Health care.
The sector offers massive growth potential and a chance to capitalise on its expansion, especially as the country sees a rise in the incidence of lifestyle-related diseases. A growing elderly population paired with a rise in income levels also emphasise the need for better facilities in the country.The sector comprises the hospitals and allied sectors such as diagnostics and pathology, medical equipment and supplies, and medical tourism Healthcare Market Size The US$ 50 billion-a-year health care industry has grown rapidly and is now the second-largest service-sector employer in the country, providing jobs to about 4.5 million people directly or indirectly. The Indian healthcare sector will double its size to US$ 100 billion by 2015, according to ratings agency Fitch.By 2020, the Indian healthcare industry is estimated to be worth US$ 275.6 billion. Currently, 8 per cent of Indias GDP is spent on healthcare. India needs to spend at least US$ 80 billion more in the next five years to meet targets.Indias healthcare industry is estimated to reach US$ 75 billion by 2012 and US$ 150 billion by 2017. The rural healthcare sector is also on an upsurge. The Rural Health Survey Report 2010, released by the Ministry of Health, stated that the number of Sub Centres existing as on March 2010 increased from 146,026 in 2005 to 147,069 in 2010. The report further stated that there is an increase of 437 primary health centres (PHCs) in 2010. Moreover, Number of nurses at PHCs and community health centres (CHCs) has

increased from 28,930 in 2005 to 58,450 in 2010. Medical Tourism The Indian medical tourism industry is presently at a nascent stage, but has an enormous potential for future growth and development on the back of low cost range of treatments provided by the country. Indias share in the global medical tourism industry will reach around 3 per cent by the end of 2013. The report states that medical tourism is expected to generate revenue around US$ 3 billion by 2013, growing at a CAGR of around 26 per cent during 2011 2013. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent during the forecast period to reach 1.3 million by 2013. .