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The term globalization means International Integration. It is a process through which the diverse world is unified into a single society. Opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas
1. Shifting of Agriculture worker to industry sector. 2. Urbanization: People are shifting from rural to urban areas. 3. Opening up of trade market export import boom. 4. Big open saturated market for products. 5. A growing market for high quality and low price product. 6. Gradual increase of organized retail chain. 7. Growing number of Merger and Acquisitions. 8. Lucid license policies for overseas Multinational Corporation. 9. High growth rate is showing economic prosperity in India. 10. Indian Market leaders going global.
Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers.
Nike
Dell
New
don't just have to trade their raw materials to the West and get finished products in return; can become big-time producers as well.
New
companies can locate different parts of their production, research and marketing in different countries
US tax payers
Indian accountant
Market economic policies spreading around the world, with greater privatization and liberalization than in earlier decades. Widespread adoption of democracy as the choice of political regime.
Multilateral agreements in trade, taking on such new agendas as environmental and social conditions. New multilateral agreements for services, intellectual property , communications more binding on national governments than any previous agreements.
Growth
Customer Survey
2010
2008
GDP USD 1.16 trillion GDP growth rate 9.5% Services contribution 60% Balance of Trade Negative balance should increase with surging imports versus exports Investment goal USD 305 billion 2006 GDP USD 590 billion GDP growth rate 9% Services contribution 54% Balance of Trade USD (-)46.2 billion Investment goal USD 250 billion
*: Projected
Source: Economic Times & India Brand Equity Foundation (IBEF)
Growing GDP
1,200 1,000
Contribution of Services increased from 48% to 62% and is estimated to contribute 60% by 2010
USD Billion
682
Growing Exports
210 170 126.3 103.1 83.5 90 50 2004-05 2005-06 2006-07 2007-08* 130 155
200
USD Billion
2008-09*
Growing Imports
250
210.8 185.7
200
USD Billion
149.1
150
111.5
100
USD Billion
250 200 150 100 50 0 2001-02 2002-03 2003-04 2004-05 2005-06 54 75 141 112 152
199
2006-07
Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability
Source: Reserve Bank of India & India Brand Equity Foundation (IBEF)
30 22
8.9 4.3 6
2006-07* 2007-08*
Electronic equipment, manufacturing and telecom have witnessed significant FDI inflow
2000
2000 1500 1000 500 0 2000-01 2006-07 2007-08 2016-17 2025 797 460 1021
Source: India Brand Equity Foundation (IBEF) & Economic Survey 2007-08
USD 12 billion
USD 2 billion
Plans to spend on its development operations in India over the next four years
Energy
Financial Services Industrial Goods
Pharmaceuticals
Software
Main Destinations:
India has a consumer base of 1.14 billion people India is the 4th largest economy in the world when measured by PPP Indias has a growing middle class of over 300 million people - 30% of Indias population and larger than the population of the US India is the 3rd largest global telecom market. The mobile subscriber base has grown from 0.3 Million in 1996 to over 250 million currently. India is likely to add over 200 shopping malls by 2010 and 715 malls by 2015 The number of billionaires in the country were 3 in 1999; 23 in 2006; and are 48 currently.
USD Billion
15.0
Exports to US
Imports from US
Textiles 36%
Buyer
Acquisition
Price
Reliance Industries
Tata Motors
US$ 212m
US$ 118m
Infosys Technologies
US$ 3.1m
N/A N/A US$ 18m US$ 5.7m US$ 56.4m US$ 18.5m US$ 8.5m US$ 21.3m
"Toyota Motor has chosen to source from India due to its competitive cost of manufacture, availability of abundant engineering talent, and strong indigenous machine tool."
Bharat Forge Ranbaxy Wockhardt Cadila Health Hindalco Wipro Aditya Birla United Phosphorus
1990 FDI $ 234 Million 1998-2003 FDI $ 2.5 Billion Per Year Target FDI $ 10 Billion Per Year Over 620 FIIs Compared to 500 in 2003 and Earlier China FDI & FII FDI $ 50 Billion Per Year FII $ 20 Billion Per Year
Agriculture acquired 17% of Indias GDP in 2008. 60% of population still depends on agriculture for their livelihood. Occupied 43% of Indias geographical areas. All other sectors are growing at much faster.
Year
1991 2007
Industry(%)
25 28
Service(%)
31 55
Agriculture(%)
44 17
Person
1981 1991 2001 43.6 52.2 65.4
Male
56.4 64.1 75.8
Gap
26.6 24.8 21.6
This market (India) is critical to our plans for building a Ford Motor Co. for the 21st century
Bill Ford, Chairman and CEO The dynamism shown by India in the last 15 years is phenomenal
High growth but problem of unemployment. Need to generate 10 million jobs per year. Multi party rule, hence need to accommodate political ideology with economic reality (reservation, labour law reforms).
Thank You