“Limitations live only in our minds, but if we use our imagination, our possibilities

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Can India make it to the league of economic superpowers in the next 25 years? - For the motion

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Overview

•Goldman Sach’s Report •GDP •Industrial sector •Services sector •Agricultural sector •Technology sector •Conclusion
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Goldman Sachs Report – “Dreaming with BRICs: The
•India's GDP will reach $ 1 trillion by 2011, $ 2 trillion by 2020, $ 3 trillion by 2025, $ 6 trillion by 2032, $ 10 trillion by 2038 & $ 27 trillion by 2050, becoming the 3rd largest economy after USA and China. •In terms of GDP, India will overtake Italy by the year 2016, France by 2019, UK by 2022, Germany by 2023, and Japan by 2032

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Contd…
•The Asian Development Bank reckons that India will grow at 11.5 per cent (average) over the next 30 years •By 2033, India’s GDP will be $35 trillion •By 2033, India would be the second largest economy in the world, after China. India’s population would have risen to 1.7 billion people, but still, the per capita income would be $20,000

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Gross Domestic Product
•Comprises of 3 sectors: iii. Service v. Industrial 54.7% 26.8% 18.5%

vii. Agriculture

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Patterns of Growth

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India’s Equity Markets
•One of India’s advantages over other countries to thrive to become an economic super power is the strength of India’s equity markets and the world class trading and regulatory infrastructure the country has developed over the past decade

______________________________________________________________ 8 “Where there is a will, there is aNEP Presentation way.”

Industry: Turning minerals potential into Goldmine •Highly endowed with vast mineral resources
•World’s largest producer of mica, iron ore, bauxite •Heritage in mineral and mining processing •Backbone of industrial sector

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•2nd largest two wheeler market in the world

Turning new Automobile Global industry

•4th largest commercial vehicle market in the world •11th largest passenger car market in the world •To become world’s 3rd largest automobile industry by 2030

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Manufacturing Sector
•Preferred destination for manufacturing & sourcing for global markets •Access to foreign markets •New technologies, management expertise •Low labor costs

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Scaling new heights in Construction sector •Abundance of quality manpower
•Indian cement industry ranked second in the world

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Evolution of Oil & Gas Industry
•15% contribution to the country’s GDP •Export of petroleum products touched US$ 20.03 billion in 2007 •Emerging as a global hub for oil refining •Largest gas discovery in the world at K-G basin, Andhra Pradesh

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Role of changing Power sector in Economic Development
•Private sector participation •De-licensing of power generation •Electricity generation and growth potential increasing •Indo-US nuclear deal

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Changing profile of Indian Textile Industry •Technological up-gradation
•Textiles and apparel trade •Investments in textile sector •Government initiatives

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Services: India on Export of Manufactured goods
•India’s share stand at US $40 billion •Future target is estimated to be US $300 billion by 2015 •Labor intensive goods (toys, apparel) •Skill intensive industries (computer hardware)

Cut Barriers to boost Exports
•Reducing indirect taxes and import duties •Provision of well functioning ports with uninterrupted power supply •Establishment of SEZ for balanced production of export goods •Acceleration of labor reforms

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Role of Household sector
•Emergence of new Indian middle class based on study by Mckinsey Global Institute •Increase in the middle class population from 50 Million to 583 Million •Real compound annual growth of 7.3%in GDP •Rise in position from 12th largest consumer market to 5th largest consumer market by 2025 •Acceleration in annual rural income growth from 2.8% to 3.6%

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Scope of Hospitality sector
•In 2003-04, hospitality industry contributed 2% of GDP •It is projected to grow at a rate of 8.8%between 2007-16,which would place India as 2nd fastest growing tourism market •Travel & tourism is the 2nd highest foreign exchange earner •Tourism sector accounts for nearly 5.3%of GDP and 5.4% of total employment

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Health Care sector
•Indian health care sector has been growing at a fast pace •Patients visiting India has increased over 10 fold •Medical tourism has the potential to grow to US$ 2 Billion from the present US$ 350 Million •Health care spending in the country will double over the next 10 years

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Monetary & Fiscal Policy for Growth
•Controls & regulates the flow of money during inflation/deflation by adjusting interest rates •Manage quantum of money in circulation through buy/sell of credit instruments e.g. bonds, foreign currencies or commodities •Fiscal policy entails measures by Government for revenue/expense to attain economic stability

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Research & Development
•R&D relates with knowledge creation •Brings profit to the company •Important part of any organization •India now spends more than 4000 crore annually

Education
•Literacy rate is increasing at a rate of 1.5% per year •Rate of literacy is higher in villages •Govt. has provided full policy support

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Indian Infrastructure Union
Road: Motorway network 3.3 m km- 1448629 Km Goods transport vehicles 1,600,000 Airports: International 5 / National 90 Ports: Large 11 / Small & medium 139 / Merchant fleet 443 ships / Goods traveling through ports 166,610,000 tons Postal Services: Post offices (2001) 155,000 Energy: Production capacity (1991-92) 78,000 Mw Generated(2000) 547.12 Billion kWh Railways: 62,486 Km / Stations 7000 Produce transported (1992-93) 3.5 Crore tons •The MRTP was passed to encourage large industry inroad sector •Calcutta’s Howrah Bridge is the world’s busiest •5-year tax exemptions for new energy projects & 16% return on equity

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Outsourcing
•About 4/5th of the world’s largest companies farm out work to India, where every year 1 Million English speakers & 1.5 Million University graduates join its low-cost workforce •As of March 2005, there were nearly 350,000 people employed in 410 outsourcing or back office firms in India. Estimates show the figure will touch 470,000 by the end of March this year

_______________________________________________________________ It is like a story… a few centuries ago India was world’s wealthiest nation… No POVERTY, PLENTY TO EAT, TRADE WAS BOOMING… & then came robbers – Mughals, Europeans & British. They plucked bare the bird of gold, BUT India will fly again…
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Agriculture

•Agriculture continues to be the biggest employer in India, with 54% of the population engaged in farming •43 % of Indian land is used in agriculture. It contributes 18% of the GDP

Ways to improve Agriculture

•Double the rate of growth of irrigated area •Reclaim degraded land and focusing on soil quality •Water management, rain water harvesting & watershed development •Bridge the knowledge gap through effective extension services •Diversify into high value outputs-fruits/vegetables/flowers/herbs/spices/ medicinal plants/bamboo/bio-diesel ensuring food security •Provide easy access to credit at affordable rates
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PURA Mission
Providing connectivity's to village complexes is an urgent need to bridge the urban-rural divide, generate employment and enhance rural prosperity. The integrated method which will bring prosperity to rural India is through PURA ( Providing Urban Amenities to Rural Area’s)

Objectives

Stem rural-urban migration Increase purchasing power Improve literacy & healthcare Capacity building Private public partnership Priority funding Bridge rural-urban divide Balance socio economic divide Expand consumer base Employment generation ______________________________________________________________ “The integrated investment in rural infrastructure through Bharat Nirman will unlock the growth potential of rural India and Provide Urban Amenities to Rural Areas PURA.” - Dr. A.P.J. Abdul Kalaam
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PURA MODELS
•Govt. PURA initiatives: Kerala coastal PURA, Chhattisgarh PURA •Institutional PURA (Operational PURA: Periyar PURA, Loni PURA, Chitrakoot PURA •PURA in location specific industries •Rural tourism based PURA: Rajasthan, Sikkim •Bamboo based PURA: Manipur, Nagaland & Mizoram •Jatropha – Bio-fuel based PURA (5 states) •Handloom & handicraft based PURA •Coastal PURA •HILL PURA •Terrain PURA •Desert PURA (Rajasthan)

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“India, China to become Super Powers in two decades.”

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Technology: Science & Technology in India

•Focus on areas of nuclear science, electronics & defense •IT is now like second skin to sectors of agriculture, industries & services •S&T infrastructure rose from Rs. 10 million in 1947 to over Rs. 30 billion •Over 85% of the funds for S&T come directly or indirectly from the Govt. •S&T infrastructure in the country accounts for more than 1% of the GNP •India has the 3rd largest scientific & technical manpower in the world: xii. Over 162 technical universities xiii. The CSIR runs more than 40 research labs NEP Presentation 28 xiv. India in top 5 nations in the field of Missile Launch Technology

Science & Technology Policies In India
•India's investment in R&D is increasing rapidly •The Govt. accounts for 85–90% of the country's R&D. Private sector investments are catching up •It is in the interest of other countries to maintain good relations with a Super Power to-be, like India: vii. The USA , Western Europe, the Soviet Union & Russia ix. Post independence, India had strong footing with UK xi. Today, US gains from a relationship with India _______________________________________________________________ NEP is to have 29 “The only way to predict the futurePresentation power to shape the future.”

India’s presence in the USA

Over 3.22 Million 34% Microsoft employees 38% doctors 28% IBM employees 12% scientists, 36% NASA 17% Xerox employees •Top 100 Indian owner US companies generate more than $2.2 Billion providing jobs to over 21000 people More of India on the soil of the current super power! •Of the 1.5 Million Indians living in the USA, 1/5th in the Silicon valley •35% of Silicon valley startups are by Indians •Indian students are the largest among foreign students in USA NEP Presentation 30 •60-70% of all mid-size motels are owned & operated by Indians

We there & They here

US H1-B Visa applicants by country of origin: • • India – 44% China – 9%, Britain – 5%, Philippines – 3%, Canada – 3%

Top 5 American employers in India: ix. GE – 17800 employees x. HP – 11000 employees xi. IBM – 6000 employees iv. v. AMEX – 4000 employees Dell – 3800 employees

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India Rising

“India is the cradle of the human race, the mother of history, the grandmother of legend, and the great grandmother of tradition. Most valuable and the most instructive materials in the history of man are treasured up in India only.” - Mark Twain •Largest democracy in the world •4th largest economy in the world •Youngest work force comprising over 54% less than 25 years old
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We are already there
"One of the soundest rules to remember when making forecasts in the field of economics is that whatever is to happen is happening already."
- Sylvia Porter

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The Bharti Advertisement

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THANK YOU…

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