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INDIA IN WORLD ECONOMY SUNDOWN OR SUNRISE

Writers Name Nitish Mhatre Karan Saini

Economic Research Paper

ABSTRACT
(After researching)We have doneonwhere we have seen Indias role in business around the world. As per our studies we have discovered that Indian MNCs exist from past couple of centuries or even more than that and not as per our general view from 1991 when liberalization was done. It only came into a halt for some time. Every country around the world has developed on a certain path and certain sequence step 1 2 3 & so on. However India has developed exactly in the opposite direction. Consumption is the one of the main key factor for Indias Economic growth. In1991, the process of liberalization turned the picture of Indian companies& here we saw India emerging inthe manufacturing sector. The biggest trend that we have as a country is our intellectual prowess. It is this intellectual prowess that has seen us move after 1991 to where we are today, where the world is beginning to recognize India. It started with a revolution in the services sector. It's now moving to the manufacturing sector-pharmaceuticals, automotive industry etc. India is the most preferred place for FDI. As all sectors in India are growing and more FDI are attracted so it is estimated that by 2050 India would have the worlds third largest GDP after Us and China. There are many e.g. where we can say that India is favoring many other countries in their growth like Obama visiting India, South Korean company POSCO coming to Orissa for their steel plant project of Rs.5000cretc. So India is not only boosting its own economy and making it stronger but also indirectly helping in the growth of world economy.

Economic Research Paper

INDIA OF THE PAST


The days of the 1st century, or 12th century, or 16th century were actually when we thought that the earth is flat. If you go beyond the Mediterranean to the Atlantic and beyond the China Sea to the Pacific, you will fall off into space because that's where the flat earth was supposed to end. But in those days of flat earth, Indian multinationals were doing business from Mediterranean to the China Sea. They were doing this business across the seas, over the hills and passes. There used to be a place known as Tamralipta in the Vedas. Today, it is known as Tamluk, fairly close to Nandigram. From Tamralipta and other ports of India on East and West coast, we had thriving business equations with the littoral states on the Mediterranean and the littoral countries (now known as states, but there were no states in those days) on the China Sea, the Bay of Bengal, and the Arabian Sea. It is amazing to think that using those small sailing boats, people actually traveled thousands of kilometers to do business. Similarly, from many of these places, across the passes in the Hindu Kush and the Himalayas, people went to and fro, creating the legend of the Silk Route, among other things. They carried out trade in Silks, Spices, and Gems. They traded in manufactured goods like steel. Indian steel was being used, till even as late as the seventeenth century, for manufacturing the Damascus sword, which had a reputation that if it went through the neck,the head would remain on the neck till the body moved and fell off.It was such fine steel. People went to each other's lands with different cultures, different religions, different languages with different goods and services to offer. Not only did they become friends and partners, they assimilated with each other in culture, in families, and in nationalities. This was a very remarkable feature of these ancient Indian MNCs.This went on for thousands of years and then it came to a halt. It declined, stopped and finally the situation reversed because of fear. They created their own mental and physical barriers. Then it was said that 'traveling across the oceans is like committing a sin'. The fact is that India, and its people grew into a shell. They thought that if they would cut off themselves from the world, the world would forget about them. This didn't happen and we came to - what we call - the Raj MNCs. The Raj MNCs are those that came into India from outside. People came from Central Asia. The Aryans were the first ones to come, and the last ones who came were Mughals. People came across the seas to do business in India. Those were again multinationals who came to India, the situation reversed from multinationals going out to multinationals coming in. These multinationals in the 16th, 17th, 18th and 19th century had very different characteristics. They indulged in ruthless colonization. It was in India; Japan; all the nations of Africa; all the nations in Asia; even Australia; Latin America; and America. The indigenous people of all these continents went under very ruthless, very proactive and very comprehensive colonization, which were the hallmarks of this colonization. Out of this chaos, came the Industrial Revolution, which among other things changed the concept of governance - from feudalism to democracy and socialism in different forms, of course. Economic Research Paper

Industrial revolution brought in the concept of limited liability, which is, how business all over the world are run today - on this single golden concept of limited liability. Industrial revolution began the process of transforming the Raj MNCs to something else altogether. It took a long time but this is the point from where it no longer mattered that the son of a priest should become a priest, and the son of a king should become a king.

INDIA AND THE NEW WORLD ORDER (Present Scenario)


The new world order is reflected in a shift of economic power. Today, there is a power shift and India stands as an equal. Concerns have been raised and rightly so about governance standards in India. Is there a governance deficit? There is no doubt that India needs a significant focus on governance through a combination of actions from the government, society and companies but let not the series of scams cloud our judgment about what India has achieved today and its potential for growth. India has an important role to play in the new world order. There are three trends that we would like to touch upon.

TREND NUMBER ONE: -Every country around the world has developed on a certain
path, and in a certain sequence-step one - step two- step three - step four - step five. India has developed exactly in the opposite direction-step five - step four - step three - step two - step one. As a result, foreigners find it very difficult to understand India; Indians find it even more difficult to understand India. Europe, China, Japan, Korea, Taiwan, Malaysia - most of them began by dealing with agriculture by improving agricultural productivity and land reforms. Then they moved into low value-added labor intensive manufacture like garments and shoes. Then, they built out the infrastructure in their country-roads, sports, electricity. Then, they moved into higher value-added manufacturing-from shaped metals to auto components to assembled engineered products. Then finally, they went into services. What is happening in India is exactly the opposite. We have built out our services sector. Then we seem to be going backwards and claiming that the time for manufacturing has now arrived in India. We are now talking about infrastructure. Textile exports and labor-intensive production like manufacturing is core strength of India has not been touched upon. The whole world is going right side, and India is going the left side. Yet, both are progressing. The implication of this trend is that we will not always have the horse before the cart, but the cart before the horse.

TREND NUMBER TWO: -CONSUMPTION FOR ECONOMIC GROWTH


The world desperately needs consumption for economic growth. Unless the 6.5 billion people in the world have money in their hands and the ability to spend that money, there isn't a market. We can say India to be along with the less developed economies. But when you look at the numbers, Economic Research Paper

you find that India gets 65 per cent of its GDP from consumption expenditure, whereas Brazil is 56 per cent and China is only 39 percent (Current figures).In the mumbo jumbo of economics, what this means is that whatever little money people have, they save and whatever else is left with them, they really spend it on all sorts of needs. So, the per capita consumption of products may be low, but as money increases, the propensity to spend is very high. That makes India an outstandingly stable consumer market. Even as exports decline during the global slowdown, Indias robust domestic consumption helped offset the impact.

Apart from Consumption the Other Main Key Factors Sustaining the Growth momentum are:1. Economic fundamentals:Indias highly regulated financial sectors also kept it from being dealt a body blow by the crisis. Indias total financial assets to nations income ratio stood at 1.1 in 2009 compared to 1.7 for china and 3.4 for U.S.A. additionally, strong domestic demand and the governments employment creation initiatives kept the jobless rate relatively stable during the crisis compared to other countries.

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2. Focus on infrastructure to support growth:The government plans to increase infrastructure spending as a percentage of GDP to 9% under the 11th five year plan. The plan also aims to envisage investments of over USD 500bn during 2007-2012.

3. Growing Rural Market holds Huge Untapped Potential:Indias rural market-home to around 700mn people-could become a significant consumption driver in the coming years. Government focuses on rural markets through special schemes, such as national rural employment schemes (NREGS), has pushed incomes level higher. The confederation of India industries (CII) estimates the rural consumer market to top USD 425bn in 2010-2011 compared to USD 220bn in 20042005.

4. Focus on Education ensures Sustainability of Growth:Highlighting the role of education in the development of nation, the National Common Minimum Programme (NCMP) had set a target of raising its expenditure on education to 6% of the GDP in the 11th five year plan from 3.6%in 2006-2007. In addition Indias vast pool of scientific, technical and managerial work force (available at relative lower cost) provides a strong competitive edge. It also has the second largest English speaking population in the world. In addition, the country is expected to be the largest contributed to the worlds working age population over the next six years.

TREND NUMBER THREE: - INDIA-ALL SECTORS ARE GROWING


The rest of the world has some sectors that are growing and some others that are slowing down. In India, we are in a very unique and fortunate position such that every sector is moving. Whether it is textiles, or low-end manufacturing, or high-end manufacturing or services-all

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sectors are moving. The opportunity in a consumption-oriented market looks better than it probably ever has been in the last 5,000 years of our history. This is a very unique moment for all Indians.

Services Sector Growth Engine of Indian Economy


The Indian service sector, which contributed approximately 62.5% to the GDP in 20092010(in2008-200952%), continues to capitalize on factors such as steady rise in out sourcing, strong technical capability in information technology and IT enabled services (ITES), and growing hospitality sector. Indias cost competitiveness, skilled man power and strategic advantage (in terms of language skills) have helped in emerge as a strong contender to leverage this opportunities. The significant inflow of business process outsourcing (BPO) services has benefited the country and it is going to expand more in coming years. India ranks fifteenth in the services output and it provides employment to around 34 % (23% in 2008-2009) of the total workforce in the country. The various sectors under the Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal services, community, insurance, financing, business services, and real estate.

Economic Research Paper

The Reasons for the growth of the Service Sector contribution to the Indias GDP The contribution of the Services Sector has increased very rapidly in the India GDP for many foreign consumers have shown interest in the country's service exports. This is due to the fact that India has a large pool of highly skilled, low cost, and educated workers in the country. This has made sure that the services that are available in the country are of the best quality. The foreign companies seeing this have started outsourcing their work to India especially in the area of business services which includes business process outsourcing and information technology services. This has given a major boost to the Services Sector in India, which in its turn has made the sector contribute more to the India GDP.

Economic Research Paper

The Indian government must take steps in order to ensure that Services Sector Growth Rate in India GDP continues to rise. For this will ensure the growth and prosperity of the country's economy.

Economic Research Paper

Manufacturing Sector (back on growth trajectory)


India is established itself as a global manufacturing center on the back of cheap and skilled man power. The government policy initiatives such as abolishing of License Raj, Liberalization of the manufacturing sector and removal of cap on foreign ownership, and 100% FDI through the automatic root, fuelled the sectors growth. The industrial sector is made up of manufacturing, mining and quarrying, and electricity, water supply, and gas sectors.
Growth Rates of Real GDP

Growth in GDP at factor cost at 2004 -2005 prices ( % ) 2005-06 Mining & Quarrying Manufacturing Electricity, Gas, Water supply 1.3 10.1 7.1 2006-07 7.5 14.3 9.3 2007-08 3.7 10.3 8.3 2008-09 1.3 4.2 4.9 2009-10 6.9 8.8 6.4 2010-11 6.2 8.8 5.1

Source: - India budget 2010-11

However the manufacturing sector which recorded a growth of 10.3% during 2007-2008, was adversely impacted by global economic slowdown. The sector grew 4.2% in 2008-2009 although the rise in domestic consumption supported production, Indias index of industrial production (IIP) turn negative for the first time in the 15 years December 2008 primarily due to decline in exports. Backed by the government stimulus manufacturing sector is gaining momentum.

Economic Research Paper

Agriculture sector - A long way to go


The Indian economy is an agriculture based economy. It has a very huge potential in agriculture sector but from the beginning we have ignored this sector and has given more importance to service sector and then we gave importance to manufacturing then infrastructure. As a result, the contribution of agriculture to GDP has decreased from 55% in 1990-1951 to 17.5% in 20092010. However, agriculture continues to be a prominent sector as almost 60% of the counties work force either directly or indirectly depends upon the same for their livelihood. 11th five year plan aims to boost the agriculture growth to 4%

India The Mini Globe


India, one of the fastest growing economies in the world, is the 12th largest in terms of the market exchange rate at $1.242 trillion and fourth largest in the world in terms of purchasing power parity.The growth rate has averaged around 7 per cent since 1997, and a resilient India grew at a healthy rate even during the 2007-2009 recessions, managing a 5.35 per cent gross domestic product (GDP) growth rate in 2009. Today, GDP is expanding by more than 8 per cent per year and is set to quadruple over the next 10 years; it is likely to be a $4 trillion economy by 2020. India has been ranked the second most attractive destination for foreign direct investment (FDI) in the world. Indias Forex reserves stood at $277 billion in October 2010, which has almost increased 10-fold in the past 10 years. India has the demographic advantage of one of the youngest population of people in the world and is set to record the highest growth in workingage population in coming years.

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If we go back and look at past 5 years the Mergers and Acquisition has geared up significantly whether it be a as big deal as of Tata And Corus or a small Acquisition of Shurjo Energy Pv and PAE Limited. Through this the Indian Economy is booming to a large extent. The world expects India to be a global partner and to be a part of the solution to the present global crisis.

Talking About the:1. GDP (Gross Domestic Product)


India Gross Domestic Product is worth 1296 billion dollars or 2.09% of the world economy, according to the World Bank. From 1960 until 2009, India's average Gross Domestic Product was 307.23 billion dollars reaching an historical high of 1296.09 billion dollars in December of 2009 and a record low of 36.61 billion dollars in December of 1960. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labor force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points.

2. GDP Growth Rate


The Gross Domestic Product (GDP) in India expanded 8.90 percent in the third quarter of 2010 over the previous quarter. From 2004 until 2010, India's average quarterly GDP Growth was 8.40 percent reaching an historical high of 10.10 percent in September of 2006 and a record low of 5.50 percent in December of 2004. Economic Research Paper

Indian GDP Trend Of Growth Rate 1960-1980 : 1980-1990 : 1990-2000 : 2000-2009 : 3.5% 5.4% 4.4% 6.4%

Contribution of Various Sectors in GDP


The contributions of various sectors in the Indian GDP for 1990-1991 are as follows: Agriculture: Industry: Service Sector: 32% 27% 41%

The contributions of various sectors in the Indian GDP for 2005-2006 are as follows: Agriculture: Industry: Service Sector: 20% 26% 54%

The contributions of various sectors in the Indian GDP for 2007-2008 are as follows: Agriculture: Industry: Service Sector: 17% 29% 54%

Economic Research Paper

The contributions of various sectors in the Indian GDP for 2009-2010 are as follows: Agriculture: Industry: Service Sector: 17.5% 20% 62.5%

It is great news that today the service sector is contributing more than half of the Indian GDP. It takes India one step closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the Indian GDP. The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and hence the GDP.

3. Purchasing Power Parity India is ranked 4th in terms of purchasing power parity which show that Indian currency is gaining higher value i.e. Rupee is appreciating.
List by the International Monetary Fund (2010)

Rank 1 2 3 4 5 6 7 8 9 10

Country World European Union United States People's Republic of China Japan India Germany Russia Brazil United Kingdom France Italy

GDP (PPP) $Million 74,004,249 15,150,667 14,624,184 10,084,369 4,308,627 4,001,103 2,932,036 2,218,764 2,181,677 2,181,069 2,146,283 1,771,140

Economic Research Paper

4. Foreign Direct Investment FDI has helped the Indianeconomy grow, and the government continues to encourage more investments of this sort. Foreign direct investment (FDI) in India has played an important role in the development of the Indian economy. FDI in India has - in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country. India has continually sought to attract FDI from the worlds major investors. In 1998 and 1999, the Indian national government announced a number of reforms designed to encourage FDI and present a favorable scenario for investors. FDI investments are permitted through financial collaborations, through private equity or preferential allotments, by way of capital markets through Euro issues, and in joint ventures. FDI is not permitted in the arms, nuclear, railway, coal & lignite or mining industries. Sectors Attracting FDI Though the services sector in India constitutes the largest share in the Gross Domestic Product, still it has failed to some extent in attracting more funds in the forms of investments. Important sectors of the Indian Economy attracting more investments into the country are as follows: y y y y y y y y y y Electrical Equipments (Including Computer Software & Electronic) Telecommunications (radio paging, cellular mobile, basic telephone service) Transportation Industry Services Sector (financial & non-financial) Fuels (Power + Oil Refinery) Chemical (other than fertilizers) Food Processing Industries Drugs & Pharmaceuticals Cement and Gypsum Products Metallurgical Industries

Countries encourage the inflow of capital from abroad to supplement the domestic savings for a higher investment and a larger increase in production capacities. Foreign Direct Investment is considered as the most preferred route of supplementing the domestic savings as it brings along with the investment new management practices and technologies. Besides enlarging the productive capacity they also contribute to enhancement of export potential/earning of the country. Over the years, India has emerged as a preferred destination for foreign investment. Besides the sustained GDP growth of economy, which has expanded

Economic Research Paper

market in India, the enabling environment and a transparent open policy regime has significantly contributed to the emergence of India as a preferred location. The outcome of the government initiatives and liberalization measures undertaken have resulted in tremendous response and growth in the FDI equity inflows to India since 2003-04, which have increased nearly thirteen-fold until the last financial year (i.e. 2009-10). In terms of international practices of calculating FDI (i.e. by taking into account re-invested earnings and other capital), the FDI inflows into India were nearly US $ 37.18 billion during 2009-10. FDI inflows have somewhat flattened out over the course of the last three years, the pace of inflows has been stable, including during 2009-10, at the height of the global economic slowdown. India was ranked 32nd in the world on FDI inflows in 2001(as per UNCTAD data), its ranking improved to the 9th position in 2009. Indias ranking, in terms of FDI inflows among developing countries (as per UNCTAD data), has jumped from 13th in 2005 to 4th (in 2009). Its share of world FDI inflows has jumped from 0.78% in 2005 to 3.11 per cent in 2009. India is today rated as one of the most attractive investment destinations across the globe. The UNCTAD World Investment Report (WIR) 2010, in its analysis of the global trends and sustained growth of Foreign Direct Investment (FDI) inflows, has reported India to be the second most attractive location for FDI for 2010-2012.

5. Merger & Accusations


The Indian economy has been growing with a rapid pace and has been emerging at the top, be it IT, R&D, pharmaceutical, infrastructure, energy, consumer retail, telecom, financial services, media, and hospitality etc. It is second fastest growing economy in the world. The practice of mergers and acquisitions has attained considerable significance in the contemporary corporate scenario which is broadly used for reorganizing the business entities. Indian industries were exposed to plethora of challenges both nationally and internationally, since the introduction of Indian economic reform in 1991. The cut-throat competition in international market compelled the Indian firms to opt for mergers and acquisitions strategies, making it a vital premeditated option. The Indian IT and ITES sectors have already proved their potential in the global market. The other Indian sectors are also following the same trend. The increased participation of the Indian companies in the global corporate sector has further facilitated the merger and acquisition activities in India.

Why Mergers and Acquisitions in India?


The factors responsible for making the merger and acquisition deals favorable in India are: y Dynamic government policies Economic Research Paper

y y y

Corporate investments in industry Economic stability Ready to Experiment attitude of Indian industrialists

Sectors like pharmaceuticals, IT, ITES, telecommunications, steel, construction, etc., have proved their worth in the international scenario and the rising participation of Indian firms in signing M&A deals has further triggered the acquisition activities in India. In spite of the massive downturn in 2009, the future of M&A deals in India looks promising. Indian telecom Major BhartiAirtel is all set to merge with its South African counterpart Zain with a deal worth $10.7 billion.

Ten biggest Mergers and Acquisitions deals in India


y y y y Tata Steel acquired 100% stake in Corus Group. It was an all-cash deal which cumulatively amounted to $12.2 billion. Vodafone purchased administering interest of 67% owned by Hutch-Essar for a total worth of $11.1 billion. India Aluminum and copper giant Hindalco Industries purchased Canada-based firm NovelisInc. The total worth of the deal was $6-billion. Indian pharma industry registered its first biggest in 2008 M&A deal through the acquisition of Japanese pharmaceutical company Daiichi Sankyo by Indian major Ranbaxy for $4.5 billion. The Oil and Natural Gas Corp purchased Imperial Energy Plc. in January 2009. The deal amounted to $2.8 billion and was considered as one of the biggest takeovers after 96.8% of London based companies' shareholders acknowledged the buyout proposal. NTT DoCoMo, the Japan based telecom firm acquired 26% stake in Tata Teleservices for USD 2.7 billion. India's financial industry saw the merging of two prominent banks - HDFC Bank and Centurion Bank of Punjab for $2.4 billion. Tata Motors acquired Jaguar and Land Rover brands from Ford Motor. The deal amounted to $2.3 billion. 2009 saw the acquisition Asarco LLC by Sterlite Industries Ltd.s for $1.8 billion making it ninth biggest-ever M&A agreement involving an Indian company. In May 2007, Suzlon Energy obtained the Germany-based wind turbine producer Repower. The 10th largest in India, the M&A deal amounted to $1.7 billion.

y y y y y

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Conclusion
As we have seen that Indian MNCs exist from past many centuries(have existed for centuries) and they were doing an EXCELLENT business in those days too. This statement can be proved by a nick name given to IndiaSONE KI CHIDIYA which means GOLDEN BIRD. But Indians have cut them self from the trade in those ancient days and were thinking that world have forgotten them but this was not the case. It was remembered by many i.e. Aryans then Mughals and then British people came to India to do business. Let it be any era a company will do business with those countries only in which they see profit and not only profit rather HUGE PROFIT. Now,( however looking back) looking forward in our 1st five year plan we have no doubt that government have(had) given emphasis on agriculture but after that they have neglected that area and started going in other directions and it took long time to India to come to this position in which we are today. But still it was going good (in a slower pace). India is a country that is turning One billion people into one billion consumers, and being in India becomes a competitive necessity for any global corporation. So there is huge potential in India to do business and also to generate business for other countries and grow the WORLD ECONOMY. This indirectly will generate employment, proper utilization of available resources, and reduction in poverty, generate revenue to government etc.(which will result in reduced government BUDGET DEFICITand many more problems). As more and more people are getting employed there will be an increase in disposable income which in turn will increase the consumption expenditure of population which will contribute in the growth of GDP As we know there is still a huge untapped rural future consumer in India when covered our economy will be a SUPER POWER. How can we know that there is huge potential in India??? The answer to this simple Question is Foreign Direct Investment (FDI) and Mergers and Acquisition which is increasing on a good rate. Studies shows that in world India is the second most preferred destination for foreign direct investment. Which shows that India has a huge potential to help grow others too. As said by Mr. B.N. Kalyani(CMD BharatForgeLtd) in one of the business conference that the potential in India is to grow the economy by 12% a year in spite of current situation of 8 to 8.5%. If we look at the past couple of years when recession hit the world badly, India was still doing well with not much of effect on our economy. This was possible due to quick intervention of government and also due the excellent domestic consumption which up hold our economy. What is happening in India Currently? To understand it let us take an example. There is a Mangalore-based small scale company manufacturing watch movements for a Swiss company. The movements go from Bangalore to

Economic Research Paper

Geneva for assembling; from Geneva, they go to Bangkok for packaging; and then they are marketed in New York. If you are selling that watch for 100 dollars, and making a profit of 25 dollars; the guy in Bangalore is making three dollars and making a profit of one dollar, he is very happy in making that 50 per cent profit. But on 25 dollars, India gets only one dollar. India has a potential to manufacture, assemble, packing and even marketing any product but it not being properly utilized. To overcome from this situation we should encourage our entrepreneur and entrepreneurship. It is estimated that by 2050 India would have the World's third largest GDP after the US & China. According to the analysis we are sure that India will be a super power by 2050.(Estimated
Figures)

Gross Domestic Product [2050-2010] (in US2006$ billions)


Rank 2050 1 Country 2050 2045 2040 2035 2030 2025 2020 2015 2010

China

70,710

57,310

45,02 2 29,82 3

34,34 8 26,09 7

25,61 0 22,81 7

18,437

12,630

8,133

4,667

United States India

38,514

33,904

20,087

17,978

16,19 4 1,900

14,535

37,668

25,278

16,51 10,51 6,683 0 4 6,631 5,471 6,320 3,286 4,963 4,102 5,265 2,192 3,720 3,068 4,265 1,479

4,316

2,848

1,256

4 5 6 7

Brazil Mexico Russia

11,366 9,340 8,580 7,010

8,740 7,204 7,420 4,846

2,831 2,303 3,341 1,033

2,194 1,742 2,554 752

1,720 1,327 1,900 562

1,346 1,009 1,371 419

Indonesia 8 9 Japan United Kingdom 6,677 5,133 6,300 4,744 6,042 4,344 5,886 3,937 5,814 3,595 5,570 3,333 5,224 3,101 4,861 2,835 4,604 2,546

10 Germany

5,024

4,714

4,388

4,048

3,761

3,631

3,519

3,326

3,083

So there is a huge potential which India can utilize in near future to become super power.

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OUR INTELLECTUAL PROWESS


The biggest trend that we have as a country is our intellectual prowess. It is this intellectual prowess that has seen us move after 1991 to where we are today, where the world is beginning to recognize India. It started with a revolution in the services sector. It's now moving to the manufacturing sector-pharmaceuticals, automotive industry, for example. Very soon, it's going to move even into the agro sector. As long as we, as a nation, learn to do two things-one is, respect our entrepreneurs and our entrepreneurship, and nurture it-whether it's small or big. Second, respect our intellectual capacity and capability. Create space for innovation; create space for creating technology, and using it freely to create the next revolution that we are about to see.

We have no doubt in our mind that India is on a march. We have no doubt in our mind that in coming years, India will be a major economic superpower. Thank you.

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