5th Annual India Leadership

Conclave & Indian Affairs

Business Leadership Awards 2014

INDO-CHINA DEBATE
INDO-CHINA: CURRENT ESSENTIALS
INDO-CHINA GDP: 2004-13
16.0 14.2
14.0 12.7
11.3
12.0 10.1 10.410.3
9.3 9.3 9.8 9.6 9.3
9.2
10.0 7.9 8.5
7.7 7.7
8.0 6.6
4.7 5.0
6.0 3.9
4.0
2.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

China India

 GDP Growth Rate over past 10 Years in China is faster than India.
 India’s estimated GDP is around USD 1.537 trillion, while China is far ahead with GDP of USD
5.878 trillion.
 Infrastructure Development in China is better than India.
 China is seen as Manufacturing hub of the world; Manufacturing contributes to ~46% of GDP
compared to India ~15% of India).
 Contribution of India’s manufacturing segment is stagnant over past many years.
 Both China and India accounts for almost 2.5 billion people, and has shown rapid economic
transformation in the past few years.

www.trivitron.com http://www.marketcalls.in/economy/india-vs-chinese-economies-compared.html
 INDO-CHINA
Healthcare Market: Facts & Indicators
India China
Population 1.22 Billion 1.35 Billion

Median Age 26.7 Yrs 36.3 Yrs

Population Growth Rate 1.28% 0.46%

Birth Rate 20.24 births/1,000 12.25 births/1,000

Death Rate 7.39 deaths/1,000 7.31 deaths/1,000

IMR 44.6 deaths/1,000 15.2 deaths/1,000

Life Expectancy 67.8 Yrs 74.99 Yrs

GDP Spent Healthcare 4.1% 5.4%

(July 2013 est.)

 Indian private healthcare market contributes to 70% of healthcare provisioning whereas

Government provides healthcare in China for over 90% of population.
 Per capita healthcare spent in India accounts to USD$ 132 & in China it is USD $ 379
Facts

 Per capita government spends on healthcare in India is USD$ 39, whereas in China it
is USD $ 203
 Government spends only 1.5% of GDP in India whereas in Chinese government
spends over 6% of GDP in Healthcare.
http://www.indexmundi.com/factbook/compare/china.india/demographics
www.trivitron.com http://www.thehealthsite.com/news/pranab-mukherjee-wants-government-to-spend-more-on-healthcare/
http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS
MORE FACTS: CHINA

− By 2050, a third of China’s citizens will be over 60, over twice the
current proportion

− In the early 1980s, about 80% of the population lived in the

countryside. Today only 47% do

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MORE FACTS: INDIA

 India has the ninth-largest economy in the world by

nominal GDP
 India is today one of the world’s fastest growing
economies. By 2030, India will become the world’s third
largest economy with projected GDP at $13,716 bn.
 India is the 19th-largest exporter and the 10th-largest
importer in the world
 Industry accounts for 28 per cent of the country’s GDP
and employs 14 per cent of the total workforce. INDIA
 India is one of the fastest growing retail markets in the
world. One of the top five retail markets in the world by
economic value, the retail industry is estimated to be India ranks second
$450 billion worldwide in farm output.
 India’s healthcare industry is developing at a great pace India is the largest producer
in the world of milk, jute and
and is expected to reach $160 billion by 2017, according
pulses.
to Frost & Sullivan.

http://www.rediff.com/business/slide-show/slide-show-1-special-25-interesting-
www.trivitron.com facts-you-must-know-about-the-indian-economy-/20130808.htm#9
INDO-CHINA
Structural change over four decades

China: “classic” pattern, moving from primary to

manufacturing sector, which has doubled its share of
workforce and tripled its share of output.

India: Move has been mainly from agriculture to

services in share of output, with no substantial
increase in manufacturing, and the structure of
employment has not changed much. Share of the
primary sector in GDP fell from 60 per cent to 25 per
cent in four decades, but share in employment still
more than 60 per cent.

http://www.rediff.com/business/slide-show/slide-show-1-special-25-interesting-
www.trivitron.com facts-you-must-know-about-the-indian-economy-/20130808.htm#9
 WHY IS INDIA NOT GROWING LIKE CHINA?

 Bureaucratic growth model

 Inconsistent policy framework
 Obsolete laws
 No FDI in core sectors like Infrastructure and Manufacturing
 India’s rising demand, global opportunities states a clear need of favorable
policies and tendency to establish low-cost plants. This would lead the
manufacturing sector to achieve newer heights

7 www.trivitron.com
 CHINA’S EDGE OVER INDIA

Infrastructure development Inflation control

Economic growth Yuan is appreciative

INDIA’S EDGE OVER CHINA

Growing Investment Chinese model of political business

Better labour workforce China’s Less Balanced Growth

Average worker age Communism in China

China late on socio-economic reforms

8 www.trivitron.com
INDO-CHINA SYNERGIES

How can India and China see themselves as partner rather

than competitors?

 Chinese Hardware Indian Software for the world

 Pharma/ Biotech/ Diagnostics Products from India and Medical Electronics/
Consumer Electronics/ Infrastructure investment from China.
 Indian Private Healthcare players into China and Chinese Govt with Indian
Govt partnership for Public Healthcare
 Preferential access to each other will allow both countries to reach close to
Half of the World Population

New Outlook

PARTNERS NEW BEGINNING TRUST

Leave the historical Create People-to-People trust
Look at each other as a
unproductive issues like and understanding by
partner rather than a
border disputes behind and promoting cross tourism and
competitor
create a new beginning trust building initiatives

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 WHAT INDIAN GOVERNMENT SHOULD DO?

 Indian Prime Minister has started in a right note by giving China the
priority and establishing personal rapport with Chinese premier in Brazil

 We should create lots of goodwill measures but should take firm steps to
reduce the trade deficit with China by pushing for Most Favored nation
status and bilateral trade agreements

 Work on lean and favorable policies to enhance and welcome

manufacturing industry investments and regulatory frameworks

10 www.trivitron.com
 TRIVITRON:
CURRENT FOCUS & PLANS FOR CHINA MARKET
 Already selling our Finnish subsidiary's ‘New Born Screening’ products
in China and No 2 in China but with Made in Finland brand
 Limited sales success with Made in India label
 In the process of establishing own subsidiary soon to promote stronger
imports/ exports trade with China in the Medical Technology space.
 Exploring options to enter into private health services space

11 www.trivitron.com
 THANK YOU

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