INTERNATIONAL

BUSINESS
INDIA
INDIA ON THE WORLD MAP
 INTRODUCTION

• Population: 1.35 Billion

• GDP: $2.9 Trillion (Estd. 2019)

• GDP Rank: 5th (Nominal, 2019)

• GDP Growth: 5% (Q1 FY20)

• GDP per capita: $ 2199 (Nominal,2019)

• Inflation(CPI): 3.21% (Aug 2019)

• Unempolyement Rate: 6.1% (FY 2018)

• Ease-of-doing-business rank: 77th (2019)

 EMPLOYEMENT & SECTORWISE
CONTRIBUTION TO GDP

% Contribution to GDP Employement

15.87 Agriculture Agriculture

31
Industry Industry
44
Service Service
54.4 29.73

25

Source: Wikipedia
GEOGRAPHICAL IMPORTANCE
TOP FOREIGN COMPANIES OPERATING IN INDIA
01
INTERNATIONAL BUSINESS MACHINES
CORPORATION
IBM is one of the leading companies in the
information technology sector. IBM India Private
Ltd. is headquartered in Bangalore.
Year of Entry: 1992
03
PROCTER & GAMBLE
Procter and Gamble have a decisive presence in
several sectors in India like beauty and grooming,
healthcare, and household care. brand value is
184.5 billion dollars. Year of Entry: 1964
05
PEPSICO
PepsiCo operates in India through its subsidiary,
PepsiCo India Holding Private Limited.
Their brands include Pepsi, Lays Potato Chips,
Seven Up, Mountain Dew, Tropicana, Mirinda etc.
The 2018 valuation of the company is 138.1 billion
dollars. Year of Entry: 1989
MICROSOFT
Microsoft Corporation ventured into the Indian
market in 1990 and is headquartered at
Hyderabad. They work very closely with the
Government of India and IT firms, contributing to
human resource and technological development.
02 Year of Entry: 1990
NESTLE
Nestlé is a transnational food and beverage
company that is globally known for their high-
quality food products. Famous Nestlé products in
India include Maggi, KitKat, Bar One, Nestlé Slim
04 Milk, Milkmaid and Nescafe. the current market
valuation is 237.3 billion dollars.Year of Entry: 1912
COCA-COLA
Coca-Cola’s range of extremely popular, non-
alcoholic beverages include Maaza, Fanta, Coca
Cola, Coca-Cola Zero, Sprite, Limca, Thums Up,
06 Minute Maid juices. It is valued at 179.3 billion
dollars.
Year of Entry: 1993
 IMPORT AND EXPORT

The integration of the domestic economy through the twin

channels of trade and capital flows has accelerated in the past
two decades which in turn led to the India’s GDP reaching Rs
167.73 trillion (US$ 2.30 trillion) in 2017-18*. Simultaneously, the per
capita income also nearly trebled during these years. India’s
trade and external sector had a significant impact on the GDP
growth as well as expansion in per capita income. Provisional
estimates of India’s GDP during the 2018-19 stood at Rs 190.10
trillion (US$ 2.72 trillion).
Monitoring the evolving nature of India’s imports and exports
can help investors understand country’s trade patterns and
identify opportunities in the domestic market.
IMPORT :
• In the fiscal year (FY)2018-19, India’s total imports grew at a
much higher rate at 10.41 percent, amounting to US$514 billion.

• Its top imports are Crude Petroleum ($74.7B), Gold ($39B),

Diamonds ($20.7B), Coal Briquettes ($19.4B) and Petroleum Gas
($12.2B).
EXPORT :
• In the fiscal year (FY)2018-19, India’s total merchandise exports
registered a 9.06 percent growth to hit a new high of US$330
billion, surpassing the earlier peak of US$314 billion clocked in
2013-14 FY.

• India’s key exports in FY2018-19 were petroleum products,

followed by pearls, precious, semiprecious stones, drug
formulations and biologicals, gold and other precious metal
jewelry, iron and steel, as well as organic chemicals. Together,
these top ten commodities accounted for about 46 percent of
India’s total export.
 MAJOR EXPORT DESTINATIONS

The data from the Export Import (EXIM)

Bank of India highlights that the exports
to North American and European
countries have increased.
Although the majority of India’s exports
continue to go to Asian countries, it has
declined in the last five years.
Asia’s share in India’s overall exports fell
from 48.52 % in 2014-15 to 47.62 % in
FY2018-19.
While North America’s share increased
from 18.16 % to 19.49 %, and Europe’s
from 15.31 % to 17.9 % in the same
period.
INDIA’S BALANCE OF TRADE
 INDIA’S BALANCE OF TRADE
• India's trade deficit narrowed to USD 13.45 billion in August 2019 from USD 17.92 billion in the
same month last year and below market expectations of USD 13.60 billion.

• Merchandise exports fell 6.05 % to USD 26.13 billion, due mainly to a 12.29 % slump in sales
of gems and jewellery.

• Meanwhile, major commodity groups posted positive growth: iron ore (356.66 %); electronic
goods (45.89 %); spices (35.35 %); marine products (5.28 %); and mica, coal & other ores,
minerals (2.24 %).

• Meanwhile, imports tumbled 13.45 % to USD 39.58 billion as purchases fell for coal, coke &
briquettes (-23.75 %), organic & inorganic chemicals (-14.95 %), petroleum, crude &
products (-8.90 %), machinery, electrical & non-electrical (-8.80 %) and electronic goods (-
4.12 %).

• Considering April-August 2019-20, the trade deficit narrowed to USD 72.85 billion from USD
83.19 billion in the same period of the previous fiscal year.

• Balance of Trade in India averaged -2645.81 USD Million from 1957 until 2019, reaching an
all time high of 258.90 USD Million in March of 1977 and a record low of -20210.90 USD
Million in October of 2012.
 INDIA’S TRADE DEFICIT

• India's trade deficit narrowed in

the month of August 2019 to
$13.45 billion.
• Exports fell by 6.05% year-on-year
to $26.13 billion while imports
declined by 13.45% to $39.58
billion dollars in August 2019.
 FOREIGN DIRECT INVESTMENT

• India’s FDI inflow

2014-15: $189 billion
2018-19: $286 billion
• Largest FDI investor in India
Singapore: $16.2 billion
Mauritius: $8 billion
• The government allowed 100 per cent foreign investment in coal mining and contract
manufacturing via automatic route,
• Eased sourcing norms for single-brand retaile
• Approved 26 % overseas investment in digital media
FREE TRADE AGREEMENT (FTA)
 REGIONAL COMPREHENSIVE ECONOMIC
PARTNERSHIP (RCEP)

• Mega regional trade agreement of 16

East Asian countries
• Indo-Pacific trading bloc
• The rising trade deficit with ASEAN
• The deal will be concluded by Nov
2019 in Bangkok
 ADVANTAGE OF INDIA

• Population of 1.3bn,with avg. age 27

• Labour availability

• Coastline of 7517km,Road network,Inland water ways (14500km)

• Stable government

• IBC Process
 CHALLENGES

• Draft E-Comm policy

• Data localisation norm

 CONCLUSION
• India is presently known as one of the most important players in the global
economic landscape. Its trade policies, government reforms and inherent
economic strengths have attributed to its standing as one of the most sought-
after destinations for foreign investments in the world.
• Also, technological and infrastructural developments being carried out
throughout the country augur well for the trade and economic sector in the years
to come.
• Boosted by the forthcoming FTP, India's exports are expected reach US$ 750
billion by 2018-2019 according to Federation of India Export Organisation (FIEO).
• Also, with the Government of India striking important deals with the governments
of Japan, Australia and China, the external sector is increasing its contribution to
the economic development of the country and growth in the global markets.
Moreover, by implementing the FTP 2014-19, by 2020, India's share in world trade is
expected to double from the present level of three per cent.
 THANKYOU
MADE BY –

Baseeruddin Ansari
Dhananjay Chavan
Faiz Ali Naik
Jafar Ali Shaikh
Kunjal Rambhia