The Indian scenario

By Prem Behl Chairman Exhibitions India Group

Index
1. The Indian Economy: An Overview 2. History of the Indian exhibitions industry 3. Exhibitions Venues in India 4. Doing business in India

1.

The Indian Economy: An Overview

The Indian Economy: An Overview The fastest rise in incomes.

70

36 20 13
1960s

7
1970s 1980s 1990s

1950s

% rise in per capita income

The Indian Economy: An Overview The biggest drop in inflation

9.5 9.1 7.4

1970s

1980s

1990s

2000-4

% decrease in inflation

The Indian Economy: An Overview Have prompted a spending boom

11.4 9.5 5.9 6.5

2000-01

2001-02

2002-03

2003-04

% growth in consumption expenditure

The Indian Economy: An Overview as well as the highest level of savings

26.6 19.3 13.8 21.9

1980-81

1990-91

2000-01

2003-04

Household savings as % of GDP

The Indian Economy: An Overview The economy is riding high

8.5 6.9 4.4 7*

2002-03

2003-04

2004-05

2005-06

% annual growth in GDP

The Indian Economy: An Overview Additional economic indicators:

India is the 4th largest economy in the world as measured by purchasing power Between 1980 and 2003, Indias economy grew at an average rate of 5.7% 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 reforms,

The Indian Economy: An Overview

India has a consumer base of 1.2 billion people, and The youngest population of the world hence sustainable, long term growth is assured Modern (organised) retail converging with the consumption boom will open up many opportunities for small and mid-size consumer midcompanies With upper income and rich classes growing rapidly and deprived classes actually falling, Indias income demographics will actually be unrecognizable by the end of the decade

The Indian Economy: An Overview

Home ownership is on the rise with 5 Million homes added every year, approximately 1.5 Million new homes added in urban areas Mobile telephone subscriber base has grown from 0.3 Million in 1996 to over 55 Million currently; expected to grow to 200 Million by 2008 13 Million credit card holders currently & growing at 40% p.a. Passenger car sales of USD 5 Billion in 2004, more than twice the level of sales five years earlier

The Indian Economy: An Overview

70 60 50
Percent

Consumption share of GDP Per Capital Consumption

Population Dependency Ratio 5 4 3 2 1 0

US $ Thousands

40 30 20 10 0

Growth at the margin will close the gap between Indias per capita consumption and Chinas

China

India

Private consumption currently accounts for 64% of Indian GDP higher than Europe(58%), Japan (55%) and China (42%) Emerging consumerism from one of the worlds youngest population

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

The Indian Economy: An Overview

50

Indians are Younger than the World

Median age in years

45

44
40

44 38

39 36 31
24 India USA

39 37

35

30

30

24

China

Russia

UK
2000 2025

The Indian Economy: An Overview

India in 2050
India will be the 3rd largest economy.
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 U S 2 0 0 3 $ b illio n s

..with the highest growth rate of BRICs

5-Year Period Average Percent Per Annum 8 7 6 5 4 3 2 1 0 2005-10 2015-20 2025-30 2035-40 2045-50 Brazil China India Russia

il

an

ce an

ia

ia

US

az

In d

ss

UK

an

in

Ja p

Ch

Br

Ru

BRICs = Brazil, Russia, India, China Source: Goldman Sachs, Dreaming with the BRICs

er

Fr

It a

ly

The Indian Economy: An Overview

Analysts View of the Indian Economy
India is on the cusp of something big.[I] am as enthusiastic about India as I was about China in the late 1990s. What excites me most is the potential for an increasingly powerful internal consumption dynamic the 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 a growing working-age population over the next 40 years.
IMF, World Economic Outlook, September 2005

2.

History of the Indian exhibitions industry

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

History of the Indian exhibitions industry

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 the centenary of railways in India

History of the Indian exhibitions industry

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 Fair coinciding with Indias Silver Jubilee Year of Independence

History of the Indian exhibitions industry

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)

3.

Exhibitions Venues in India

Exhibitions Venues in India

Exhibition Venues Exhibition Venues International Airports International Airports

Exhibitions Venues in India New Delhi

Name Area
(in sqm.)

Outdoor Area
(in sqm.)

Additional facilities

Pragati Maidan Owned and managed by the Indian Trade Promotion Organisation (ITPO)

60,000

10,000

2 Conference Halls (capacity 200 each), 4 theaters

Exhibitions Venues in India New Delhi

Pragati 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 far from being world class The ITPO has proposed to completely modernize and revamp the venue by 2010 (subject to approval by the Commerce Ministry)

Exhibitions Venues in India Greater Noida

Name Area
(in sqm.)

Additional facilities

India Expo Center Owned by the Export Promotion Council for Handicrafts (EPCH)

7,500

1st phase of construction complete. Another 20,000 sqm., as well as a 5 star hotel, to be built by 2008

Exhibitions Venues in India Mumbai

Name Area
(in sqm.)

Outdoor Area (in sqm.)

Additional facilities

Expo Center Owned by the World Trade Center Bandra Kurla Complex Owned by the Maharashtra Dev. Co. Bombay Exhibition Center Owned by Nesco Ltd.

2,500 n/a 60,000

n/a 50,000 n/a

n/a Organisers typically set up air conditioned hangars Non air-conditioned halls air-

Exhibitions Venues in India Chennai

Name Area
(in sqm.)

Outdoor Area (in sqm.)

Additional facilities

Chennai Trade Center Owned by the Indian Trade Promotion Organisation (ITPO) and the Govt. of Tamil Nadu

6,800

3,000

Opened in 2001, 1st phase complete Conference Room (Capacity 200 people)

Exhibitions Venues in India Bangalore

Name Area
(in sqm.)

Outdoor Area
(in sqm.)

Additional facilities

KTPO Exhibition Complex Owned by the ITPO and the Karnataka Industrial Area Development Board (KIADB)

5,500

4000

Opened in 2004, 1st phase complete Conference Room (capacity 200)

Exhibitions Venues in India Hyderabad

Name Area
(in sqm.)

Outdoor Area
(in sqm.)

Additional facilities

Hitex Exhibition Center Jointly owned by the Govt. of Andhra Pradesh and the private sector

10,000

30,000

Opened in 2003 1st phase complete

Opportunities Aplenty
The need for quality trade shows and venues is apparent If India and China are Asias emerging giants, then India is falling terribly behind in 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 space this is estimated to increase by 40% in 3 years

4.

Doing business in India

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 partners,
United Nations World Investment Report 2005 A TNC (transnational corporations) survey has ranked India as the third most attractive investment destination In the same report, a UN expert opinion group ranked India as the second most attractive investment destination

Doing business in India

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 a straight forward and simple process This approval consists of a Customs Notification allowing the duty free temporary import of goods to be displayed

Doing business in India

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

Doing business in India

Freight Handling There are professional and experienced exhibition logistics companies that provide a full range of services The scope of services range from customs clearance to on site handling with modern mechanical handling equipment and a skilled work force These logistic service providers have an extensive international network

Doing business in India

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.

Doing business in India

Reforms in Exchange Control & Taxation
Exchange Control All investments can be on a repatriation basis Original investment, profits and dividends can be freely repatriated Foreign investors can acquire immovable property incidental to or required for their activity
(Source: Ministry of Commerce & Industry, Government of India)

Doing business in India

Reforms in Exchange Control & Taxation
Taxation Companies incorporated in India are treated as Indian companies for taxation There exists a Double Taxation Avoidance Agreement with 65 countries Peak Custom duty has been reduced to 15% 15% Corporate Tax has been reduced to 30% 30% Tariff to be aligned with ASEAN levels Value Added Tax introduced in some States from 1st April 2005 Transparency in Tax Structure: Online/ ICT Applications
(Source: Ministry of Commerce & Industry, Government of India)

Thank You

The Indian Economy: An Overview