Swati Gupta, Swedha Pati, Vishal Mittal & Vishal Thappa

It is no way to run this world, but India must shape this emerging world order, and not be a passive recipient of what happens. But in order to do that I think we need three pillars. Two of them get noticed and debated and discussed in India, but the third does not. First is economic strength. If India is not economically strong, it will not have a voice. Second, we must have technological vitality, not just innovation in a traditional sense, not just science, but a capacity to contribute fundamentally new ideas not only for Indias development but also for the worlds development. These two by themselves are necessary but not sufficient conditions for creating the world of the future. I believe moral leadership is fundamental and critical for India to take its rightful place.

C. K. Prahlad
University Business School, Chandigarh 2

 Financial Inclusion Fiscal Consolidation

What needs to be done ?

University Business School, Chandigarh

Calibrated exit from the

expansionary fiscal stance

University Business School, Chandigarh

Process of access to financial services and timely credit needed by

vulnerable groups at an affordable cost - C Rangarajan

University Business School, Chandigarh

Committee on Financial Inclusion C Rangarajan

A Hundred Small Steps Raghuram G. Rajan

73% of Indian households not indebted to formal financial institutions 14% of agricultural wage laborers have a bank account and 95% of

businessmen

Physical distance

Poor are not bankable

Lack of appropriate products/services Lack of awareness, financial illiteracy

Processes too tedious and complicated

During 1990s During 2000s Share of SSI in total bank credit to industry
25 28 % 20 25 %

Share in total non food credit

14 - 15 %

6 -8 %

University Business School, Chandigarh

National Rural Financial Inclusion Plan

Banks for Rural Banking

LABS

Relationship Banking

University Business School, Chandigarh

District Level Consultative Committees

Advisory services for poor

Vulnerability reducing instruments

Microfinance

University Business School, Chandigarh

Improvements in rural infrastructure

Enhanced productivity and value addition in agriculture

Greater demand for banking

Increase in traditional and emerging ventures

University Business School, Chandigarh

10

The issue raised by these data is whether the

increased access to non-institutional sources is an indicator of the failure of the financial system to serve the needs of the poor, or whether it is really a failure of public services, and of the welfare system.

University Business School, Chandigarh

11

University Business School, Chandigarh

12

Reducing government deficits and debt accumulation.

Capping public debt Curbs on non Plan spending Disinvestment

University Business School, Chandigarh 13

Largely structural nature of fiscal deficits

Sustainability of recovery Public Spending to be geared towards building medium term productivity of the economy

University Business School, Chandigarh

Effective and incentive compatible rules to be set by the government an enabler

Modification of labor laws

14

Capital starvation

A N

Human capital
K IN

Regional Rural Banks

G

Measures for urban micro-finance and separate category of MFIs

University Business School, Chandigarh

15

 Timely implementation of GST

Increasing public investment in infrastructure by unlocking government

wealth in certain PSUs Removal of procedural hurdles for large investment projects to take off Keeping the overall tax rates moderate, as India is one of the highest manufacturing tax paying country in the world

16

Universi ty Business School, Chandig arh

- The Hindu, March 5, 2010

University Business School, Chandigarh

17

Killing role of participatory notes Billion of dollars of hot money

University Business School, Chandigarh

Multilayering
Beyond SEBI, ED, RBI and the CBI

Nullify exemptions available to P - Notes

18

Rapid acceleration of infrastructure projects

University Business School, Chandigarh

Strong support for SMEs by reduction in bureaucratic paperwork Expansion of educational opportunities for low income families.

Inflation Cut on fertilizer subsidies

19

India looks to the future with confidence. We are confident of meeting the domestic and international challenges to fast and inclusive growth. We are also better placed than any time in the recent past to push the reform process forward. I believe we have a bright future if we make use of strengths and the opportunities that we get. Manmohan Singh India Economic Summit 2009

If we skill [our young people] and train them properly, they will be a huge asset. If we do not, they will become a liability Chanda Kochhar, MD and CEO, ICICI Bank, India

[In India] there is a gap between what we say and what we do. We need focus on the say-do gap. Indra Nooyi Chairman and CEO, PepsiCo, USA

The Indian economy continues to be one of the fastest growing economies in the world. India world's 2nd largest wireless network with 525.1 million mobile users India 10th largest gold holding nation at 557.7 tonnes

INDUSTRIAL SECTOR
Government is targeting a growth rate of 8% in the next fiscal with the objective of achieving 9% growth in 2011-12. Pratibha Patil

 Shortcomings

in areas like health, education, infrastructure, fiscal management, and labour market efficiency. Huge deficit in key sectors power, roads, ports, airports, irrigation , and urban infrastructure. Existence of Poverty (Indias Global Hunger Index (GHI) score is 23.7, which gives it a rank of 65 out of 84 countries by International Food policy Research Institute (IFPRI).

7.1 million children among (15-29)yrs are out of school and, only 2% have received formal vocational training.
Gender Gap which, according to the Forums Global Gender Gap Report 2009, ranked India 114th out of 134 countries measured.

RECOMMENDATIONS

Indias manufacturers must lead by innovation, tapping the inherent creativity and entrepreneurial spirit of its people. GOI must invest in education and training to resolve the growth prospects. Almost two-thirds of its population is younger than 35, Of the 22 million children who attend school, only 12.4% pursue further education.

Manufacturing sector has recorded growth despite infrastructure deficiencies. MSMEs contribute about 8 per cent of the GDP of the country, about 45 per cent of manufactured output and about 40 per cent of exports.

MSE sector assumes importance in the economy owing to its employment potential and regional dispersal. This sector also mobilises capital from the lowermiddle class sections to invest in productive economic activity. Thus, it encourages the development of entrepreneurial skills and enhances export earnings through the production of a wide range of products.

Inadequate availability of modern infrastructure. Roads, Ports and Power to provide enabling environment for industry to prosper. Reviewing of labor laws and market regulations. Collaboration of Research and Industry for making innovation as a key driver of growth.

Cost recovery is another concern to be improved by public-private partnership.

Elimination of subsidies that are inappropriate and are not targeted to the poor.

Conscious effort to deliver products that give value for money in a cost effective way. Dumping by the foreign Industries should be monitored. Improving Manufacturing Employment trends.

Exit policy needs to be designed in a way that it removes exit barriers and at the same time protects the necessary internal order of the firm.

A lot is happening on the manufacturing side. The key impediment to becoming a global hub is not infrastructure bottlenecks, but entrepreneurship and leadership capability. Any country that has these two elements can overcome the hurdles. Jyotiraditya Scindia

India needs to invest in higher education and research as it lacks world class universities. Lord Patten
To eradicate poverty it has to industrialize at a growth rate of 11-12 % and provide proper framework to develop large scale industries. Desai

It is usually called governance, but I am an oldtimer so I like to call it corruption. Corruption is an issue. No country that is corrupt is rich; no country that does not build up its human resources is rich; and no country that is corrupt builds up its human resources. You can run the regressions yourself. It is public data. CK Prahlad Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy, University of Michigan, USA

India must develop energy resources, with alternative energy Building a low-carbon economy and innovate in the pursuit of environmentally sustainable growth and inclusive development.
Acquisition of land.

Inclusive Growth will provide productive employment to Indias young population and raise living standards in rural areas across the country. Investment in vocational education and training is needed to bridge the skills gap. Boost rural markets. India has a large domestic market and the government needs to do more to mobilize domestic savings.

AGRICULTURE

Agricultural production has largely been stagnating for the past decade. Costs of inputs like fertilizers and power have gone up more than the produce. More vulnerable to international price volatility. Per capita food grain availability has shrunk to what it was three decades ago. More than 67 % of cultivated area is held in holdings less than 4 hectares in size, compared to just 35 % in 1953.

AGRICULTURE

Agriculture continues to be involve the 60% of the workforce. Contribution to GDP has drastically dropped from over 53% in 1950 to 20 % in 2009. For the country to achieve 9-10 % growth, agriculture has to grow at least by 4 %. Adverse impact of the deficient monsoon.

Supply side yielding of most crops has not improved. Net Sown area of the farm size has been shrinking over the years.

To boost agricultural production and ensure food security Management of water resources Farmers, corporations and government must work in harmony. Innovation in farming inputs and practices. Compounding problems of groundwater depletion and contamination Diversification of Crops by farmers.

Leveraging public and private-sector investment for agricultural growth Boosting good stewardship practices of natural resources and preservation of biodiversity Developing agricultural markets through improved infrastructure and policies Driving economic growth through agriculture, including opportunities for small-scale farmers

Renewed focus on increasing the productivity. Step up the growth of allied activities and nonfarm activities Rural infrastructure for movement of agricultural produce. Agricultural subsidies, which drain public coffers and distort markets, must be reduced Micro Irrigation system and Water sheds and participatory approach for achieving.

A new Green Revolution is needed to boost Indias agricultural production in a sustainable way. Improve harvests while weaning the system away from the unsustainable application of chemicals and excessive water and energy use. Narrowing gap between producer prices and consumer prices through marketing support.

We should experiment genetically modified crops to raise productivity Regressive subsidies such as those of water, electricity, fertilizers, food procurements must be replaced by Cash Transfers and medical insurances to cover hospitalization on at least a linked scale for those below poverty line.

(Pic)

49

There is no single definition of infrastructure that seems to be accepted, but the term is usually associated with a diverse collection of public assets that underpins the economy. Infrastructure includes the basic physical and organizational structures needed for the operation of a society or enterprise. General Categories

Rural infrastructure Urban infrastructure Physical infrastructure Social infrastructure

50

A countrys Infrastructure development is very intimately connected to the process of its economic growth. High transactions costs arising from inadequate and inefficient infrastructure can prevent the economy from realizing its full growth potential regardless of the progress on other fronts. It is indicative of the economic development and the standard of living of the citizens of a nation.

51

If our infrastructure gets delayed, our economic development, job creation, and foreign investment get delayed. Our economic agenda gets delayedif not derailed. Says Infosys Chairman N.R. Narayana Murthy

"India has underinvested in infrastructure for 60 years, and we're behind what we need by 10 to 12 years," says T.V. Mohandas Pai, director of human resources for Infosys.

52

Power Irrigation Rural housing Roads Healthcare Education Telecommunication Drinking water

Power Urban transport Water Telecommunication Sewerage Ports, Airports Railways Roads, Bridges Tourism Infra Health care Solid waste management
53

Physical Infrastructure(They facilitate growth) Transportation Energy Communication Social Infrastructure ( Improves standard of life) Water supply Sanitation Sewage disposal Education Health

54

Overview
We know the relation and importance of infrastructure with regard to the growth of the economy. India in spite of having great potential for double digit growth rate is not being able to do so, and one of the main reasons for it is the weak infrastructure available in India. We are going to have a look at some important components of infrastructure

55

India 6th largest consumer and consumes 3.4% of world output India is hugely deficient in the energy production because of which it has to vastly rely on imports, mainly expensive oil. Power failures ,even in the most developed areas very frequent. Requirement for diesel generators for contingencies Increased demand with increased incomes. There is a increase in demand at an avg rate of 3.6% per annum over 30 years
56

Acc to CEA the total installed capacity as at end of Dec 09 was 156092 MW. But the demand is far more than the supply increasing at about 810% per annum. The need for increased use of renewable sources of energy. The deficit in power supply in terms of peak availability and total energy availability rose continuously from 2003-04 to 2007-08, a period characterized by high growth in peak demand and total energy requirement.

57

Percentage

2.6

9.8

23.6
64

Thermal Hydal

Nuclear
Renewable sources

58

The Eleventh Five Year Plan envisaged a capacity addition of 78,700 MW, of which 19.9 per cent was hydel, 75.8 per cent thermal and the rest nuclear. The actual capacity addition during AprilDecember 2009 was only 43.9 per cent of the target of 14,507 mega watt (MW) for the current fiscal. The power sector as a major coal consumer felt acute shortage of domestic availability, raised questions about the required growth in coal production.

59

Electricity generation by power utilities during 2009-10 has been targeted to go up by 9.1 per cent to 789.5 billion KWh. The bulk of the potential for hydel power which is in the Himalayan region is yet to be tapped. Private-sector participation in hydel power projects has been staedily increasing Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), 69,963 villages have been electrified and connections have been released to 88.8 lakh BPL households up to January 15, 2010.
60

61

62

Broadly includes

Roads & Highways networks Railways Ports & canals Airports Mass transit systems

63

Condition very poor, undergoing much needed improvements Ageing infrastructure, long planning delays and serious capacity constraints E.g. New Delhis Indira Gandhi Airport is built to accommodate 12.5 million passengers annually, but it has to deal with around 23. Hampers Tourism growth, discourages foreign tourists
64

The major ports in india are Kolkata, Paradip, Vishakhapatnam, Channai, Tuticorin, Cochin, New, Mangalore port, Mormugao, Mumbai, J.N.P.T., Ennore & Kandla Roads to the port are not properly maintained Very slow movement of goods Red Tapism, excess formalities during clearance of goods Some ports rely on armies of laborers to unload cargo from trucks and lug it onto ships
65

66

Shortage of trains. Overcrowding Inadequate communication system causing derailment, accident etc Inability to maintain timings for whatsoever the reason. Security Theft, Terror attacks etc. Repair & Restoration of old tracks.
67

68

Indian Railways is the third largest rail network in the world under a single management. Indian Railways has launched a new class of passenger-carrying Duronto trains in September 2009. The first-ever Yuva trains which are targeted mainly at unemployed youth have been introduced between Howrah and Delhi and Hazrat Nizamuddin and Bandra.
69

Increased traffic demands more roads, wider roads, better roads A quarter of all Indian roads are congested Road maintenance very poor in most parts Around 40 % Indian village dont have access to all weather roads Long delays with projects because of Bureaucracy, Red tapism Encroachments alongside roads
70

As against the target of developing about 3,165 km length of national highways under the NHDP in 2009-10, the achievement till November 2009 has been about 1,490 km. Against the target of awarding projects for a length of about 9,800 km under the NHDP during 200910, projects have been awarded for about 1,285 km up to November 2009.

71

72

73

Taking population into consideration, there is a big need for good, efficient mass transport systems Overcrowding in the Delhi Metro The Mumbai local trains Has highest passenger density of any urban railway in the world Overcrowding is a big problem Yearly more than 3,500 people die on the Mumbai suburban railway track due to overcrowding during peak hours. Problems in Local buses Very frequent delays Overcrowding Poor bus conditions
74

Includes Telephones, wireless phones, internet, television cables, communication satellites etc. The Indian telecom sector is contributing 5.6% to the gross domestic product of the nation There have been some contentious issues surrounding the 3G spectrum auction such as base reserve price, the number of operators in a particular circle and the reluctance of the defence forces to vacate spectrum was resolved among various ministries. (Third generation telecom services allow faster connectivity than what is available now, and will enable applications such as Internet TV, video-on-demand, audio-video calls and high-speed data exchange.)

75

76

"Our rural teledensity is 20% as compared to over 100% for our towns and cities. We must therefore double our rural teledensity in the next three years. said Dr. Manmohan Singh on 4 Jan10. Dr Singh also pointed out the slow growth in the telecom manufacturing sector, and announced an ambitious project of connecting 2.5 lakh villages with high-speed broadband across the country by 2012.
77

THE DELHI METRO

78

THE BANDRA-WORLI SEA LINK

79

IGI AIRPORT UPGRADATION

80

 India still lives in its villages

Basic amenities Need for Health and education facilities One reason for the lagging rural development is the gap

between the actual allocation and the proposed spending in the 11th five year plan. An additional irrigation potential of 2,400,000 hectares to be created, including 900,000 hectares under the Accelerated Irrigation Benefit Programme. Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), 69,963 villages have been electrified and connections have been released to 88.8 lakh BPL households up to January 15, 2010.
81

The corpus of the Rural Infrastructure Development Fund, to be raised to Rs 12,000 crore from Rs 10,000 crore. A separate window for rural roads will continue, with a corpus of Rs 4,000 crore.

25% of the planned allocation is towards rural infrastructure. In a pioneering initiative, the water-short state of Tamil Nadu will be automating the operation of its canal system, irrigation assets and water bodies by using the latest technologies and developing an Enterprises Information Management System (EIMS). Mr.P.Chidambaram, in his budget speech 2008-09 quoted Dr. Muhammad Yunus, the Nobel Laureate,Faster growth rate is essential for faster reduction in poverty. There is no other trick to it. But he might want to consider an environmental acivists wordsGrowth for growths sake is the ideology of the cancer cell
82

As China is to manufacturing, India is to services. China has plowed its huge reservoir of domestic saving about 40% of GDP into some of the best infrastructure you will see anywhere in the world. India comparatively is very low on generating investment through savings Indias strength is elsewhere namely, in an extraordinary stock of human capital. And it has deployed that strength into the creation of world class IT-enabled service companies such as Infosys and Wipro and the service subsidiaries of large conglomerates such as Reliance and Tata.
83

Access to modern water supply and urban sanitation facilities in India is better than that in China and improving at a faster rate. Despite the much heralded information technology boom in India the rate of growth of computer infrastructure and computer literacy has lagged behind the Chinese rate of growth 55% of the world cement was used in China in 2009 China's early steps to liberalize its economy and invest heavily to modernize its physical infrastructure gave it a substantial edge over India in terms of income per capita levels. They also made China a more attractive destination to foreign investors.
84

According to a recent news report, when India completed 6000 km of her Expressways in six years, China had done 40,000 km within that time. And because of its authoritarian government, China gets faster results. If you have to build a road in China, just a handful of people need to make a decision

85

The Budget 2010-11 has addressed the Infrastructure problems with number of allocations as per the various aspects of the sector. Rs 1,73,552 crore provided for infrastructure development which accounts for over 46 per cent of the total plan allocation. Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore to Rs 19,894 crore. Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last year.
86

Allocation for renewable energy has been increased to Rs 1,000 crore. A separate sum of Rs 500 crore has been allotted for the setting up of solar and small hydro power units. The Finance Minister has announced a Rs 10,000 crores allocation towards Indira Awaas Yojna and Rs 48000 crores towards Bharat Nirman. The govt has introduced long term infrastructure bonds investment upto Rs 20000/- u.s. 80 CCF of the income tax act.

87

88

Public sector/Government Debt from Private sector Equity financing External Commercial Borrowings FDI

89

90

91

 The government needs to take the rural focus as

the rural India still largely remains underdeveloped. Capacity building at local level will help improve rural infrastructure. Interestingly the highest speed clocked by an Indian train so far is 150 km/hour by Shatabadi Express between Delhi and Agra, and in neighboring China, it is 275 km/hr. The way ahead would be to partner with countries like Japan, China and seek their superior understanding of technology in order to affect improvements
92

 Under the 11th Five-Year Plan (2007-2012), the

government estimates that the country needs to increase infrastructure spending to 8% of GDP from 4.6% to accelerate average GDP growth from 7% to the targeted 9% over the next five years. Deregulation and privatization to encourage investment in infrastructure especially since public financing is not sufficient to generate the levels of investment needed to improve infrastructure. A related challenge is to ensure that development is sustainable, meaning that the environment is cared for in the process. Transparency
93

 The CII survey expressed the need for the

Government to direct the suggested increased spending into Roads & highways, Low cost housing, Power and Ports. Lower interest rates for Infrastructure projects, especially PPP Infrastructure projects. Simplification of rules, regulations and procedures of according clearances for infrastructure projects. Allow large private infrastructure companies to float tax free bonds. Facilitate implementation of infrastructure by setting up a high power implementation and facilitation agency.
94

Economic Growth

Trade

Employme nt & skill levels

Technology diffusion

Knowled ge transfer

India has been ranked at the third place in global foreign direct investments this year, following the economic meltdown, and will continue to remain among the top five attractive destinations for international investors during the next two years, according to United Nations Conference on Trade and Development (UNCTAD) in a new report on world investment prospects titled, World Investment Prospects Survey 2009-2011'.

Source : AT. Kearney Analysis, 2010

India
Region: South Asia Income category: Lower middle income Population: 1,139,964,931

Source: World bank, Doing Business Report 2010

Ease of...
Doing Business

Doing Business rank

2010

Doing Business 2009 rank

Change in rank

Starting a Business Dealing with Construction Permits Employing Workers Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Closing a Business

133 169
175 104 93 30 41 169 94

132 166
174 102 92 27 38 171 97

-1 -3
-1 -2 -1 -3 -3 +2 +3

182 138

182 142

0 +4

FDI Statistics

According to Union Commerce Minister Anand Sharma,

2008 $ 1.36 b $ 1.08 b $ 1.47 b 2009 $ 1.5 b $ 1.74 b $2.3 b Net increase 10% 60% 56%

Month December November October

India is targeting annual foreign direct investments worth $50 billion by 2012. It would double the inflows by 2017.
The government has given its nod to 14 FDI proposals in January 2010 alone to bring in foreign investment totalling US$ 157.89 million.

TOP INVESTING COUNTRIES IN INDIA 09-10

(Amount Rs in crores) RANKS COUNTRIES INFLOWS 2009-10 (Upto December) 42924 8188 7577 %AGE TO TOTAL INFLOWS 44 9 8

1. 2. 3.

Mauritius Singapore U.S.A

4.
5. 6. 7. 8. 9. 10.

U.K
Netherlands Cyprus Japan Germany U.A.E France

1841
3687 6419 5197 2581 2824 1158

5
4 4 4 3 1 1

Evolution of FDI Policy

Budget 2010

Initiative for clear, transparent and consolidated FDI policy document, liberalization of pricing & payment of technology transfer fee, trademark, brand name etc. simplified

2005-09 More sectors opened ; Equity caps raised in many other sectors Procedures

2000

Up to 100% under Automatic Route in all sectors except a small negative list

1997

Up to 74/51/50% in 112 sectors under the Automatic Route 100% in some sectors
FDI up to 51% allowed under the Automatic route in 35 Priority sectors Allowed selectively up to 40% FDI Policy Liberalization
103

1991 Pre 1991

Pointing out that the North East Industrial Investment Promotion Policy lead to investment commitment of Rs 15,000 crore in Meghalaya, chief minister of the hill state DD Lapang said frequent changes in the policy has put potential investors in a dilemma. There has been significant drop in the new investment proposals and projects cleared earlier appear to have met a dead end as the entrepreneurs are refraining from making investments due to the aura of uncertainty, Lapang added.

Source : The Financial Express. 18/Nov/09

LNM slams unprepared government

In a rare display of frustration at the tardy progress in his projects in India, the billionaire businessman pinned the blame on the countrys inability to move things. The entire country is to be blamed for the delay in execution of the projects, said Mr. Mittal.

And in venting his ire, he joins a long list of business groups, notably the Tatas, Sterlite and South Koreas Posco, that have all seen their projects get mired in problems related to land acquisition, environmental clearances, red tape and lack of infrastructure. After years of waiting, Mr. Mittal rationalises that the problems may be due to the countrys inability to handle a surge of big-ticket investment proposals, fuelled by an unprecedented interest in investing in India.

Source : The Economic Times. 08/Jan/10

1
Market India by building a credible, unique positioning for India Inc. brand

Several actions are required to develop Indias image as a reliable and risk-free source for valuable services. These are: o Define a powerful positioning of the India Inc. brand, for example: Talented resource pool, easy scalability, can offer complete solutions Service culture, value-for-money destination Attractive, safe, and friendly tourist destination o Improve coordination between the government and industry associations and between several government ministries (tourism, external affairs, commerce & industry): Alignment on initiatives; ensure consistent messages Exchange learnings o Promote India via multiple mediums Hire a professional PR agency to ensure that the perception of India equals Reality Identify champions in the administration in key countries such as the U.S. and U.K. to support India Specific marketing campaigns, road shows, use of web-sites, etc.

2
While the government has lifted sectoral caps for FDI over the last decade, Particular attention should also be paid to the removal of restrictions on FDI in the service sectors .(Telecom, Aviation, cable n/w )

EDUCATION SECTOR

The services sector comprising financial and non-financial services attracted FDI worth US$ 3.54 billion during April-December 2009-10 Source: IBEF (updated February, 2010)
The opening of the telecom sector led to rapid growth in subscriber base. From only 54.6 million telephone subscribers in 2003, the number increased to 429.7 million at the end of March 2009 and further to 562 million as of October 31, 2009 showing an addition of 96 million subscribers during the period from March to December 2009. Source: Economic Survey 2009-10

Education sector holds US$ 100 bn investment potential, say experts Source: IBEF, January 11, 2010

ADVANTAGES

DISADVANTAGES

The best universities in the world like Harvard, Oxford and MIT will come to India, facilitating environment of world class research, labs and libraries. India will become a potential education destination. Competition would force the local institutions to change their curricula and respond to the immediate needs of the students Create new institutions and infrastructure and generate employment.

Culture and society Commercialization

Foreign Educational Institutional bill passed in Cabinet Source: The Economic Times, 16 march 2010
With 160,000 Indians studying abroad, spending $4 billion a year in fees, Bill should help reverse both Source: Business standard, 16 March 2010

3
It may be advisable for government to eschew selective policy intervention and focus on clearcut and transparent policies and procedures and reducing procedural and bureaucratic hurdles.

4
Over and above the creation of a businessfriendly environment, it may be important for a potential host country like India to actively undertake investment-promotion policies to fill in information gaps or correct perception gaps that may hinder FDI inflows.

5
There needs to be greater coordination between the centre and states to ensure that the substantial foreign interest in investing in India gets translated into actual investment flows to the state.
Gujarat, Orissa and Andhra Pradesh have received maximum investment proposals among the states with 15.4 per cent, 12.6 per cent and 8.1 per cent respectively of the total proposed investments US$ 345.3 billion in 2009 Source: IBEF January 22, 2010

POSCO CASE
Proposed $12 billion investment Indias single largest FDI investment by South Korean steel giant, Posco.
Posco signed an agreement in June 2005 to set up a steel plant in Orissa but is entangled in a community led struggle against the forcible take over of lands and resources, which continues till today is

Problems: Political Environmental Allegations of land grabbing This clearly has impacted credibility of many state governments.

Posco plans Rs 4000 cr. Investment in Maharashtra.

15 March, 2010, Business Standard

6
India should continue to work towards developing a deep and liquid corporate debt market.

7
Strengthen relevant infrastructure (IT, Railways, Airports, Roads, Power)

Dear Government,
Junk the myraid sectoral caps and opt for a small negative list where FDI is either banned or allowed to a limited extent with all other sectors open to the foreign investment without an upper limit. Make the policies clear, consolidated and user friendly. Promote India Inc. as a brand Invest on improving Infrastructure and developing a deep talent pool

 Create a Technology Advisory Group for

unique projects.
Create an Independent evaluation office,

which will evaluate the impact of flagship programmes.

Create a new apex body that oversees social

sector schemes and has as its mandate the creation of implementation oraganisations.

Chief Information Officer

Technology Advisory Group Independent Evaluation Office Social Sector Supervisory Body

1
The technology advisory group will handle technological and systematic issues connected with various IT projects of the country.

2
Independent evaluation office will evaluate the impact of flagship programmes.

3
It is time for a new apex body to oversee social sector schemes with a mandate to create implementation structures that bring together expertise from the government, private sector and NGOs

DELINK WiMax AUCTIONS FROM 3G

The Indian retail market, fifth largest retail destination globally, - ranked the most attractive emerging market for investment in the retail sector . Source : A T Kearney's annual Global Retail Development Index (GRDI), in 2009.

Retail Sector In India

Total retail market in India currently stands at $350 billion and is estimated to attain $573 billion by 2012-13. Source: rediff Business News, February 23, 2010

Retail industry can be recognized as an industry Policy Clarifications to allow investments by financial investors Permission to operate 24*7 and Revision of labour laws Open FDI in Retail Create a Single Window clearance Retail and Entertainment Zones can be created

IT Industry In India

Entrepreneurship in thought and action, alignment amongst actors, and speedy execution are the keys to success. The implications are many, and the rewards are significant. The only immediate investment required is the will.

References:
http://www.ibef.org Website of Ministry of Commerce and Industry, http://dipp.nic.in/. World bank- Doing Business report 2010 AT. Kearney Analysis, 2010 World Investment Report, 2009; United Nations Conference on Trade and Development. Attracting Foreign Direct Investment (FDI) to India, by Ramkishen S. Rajana, Sunil Rongalab and Ramya Ghosh (April 2008) New India Opportunity- A report by AIMA 2010.

The Financial Express The Economic Times Business Standard rediffBusiness News

THANK YOU!!!!