INTERNATIONAL BUSINESSINDIAS FUTURE

1991- Status

Dr. Manmohan Singh(present PM) was the

Finance Minister during 1991 in the then
Prime Minister Mr. Narashima Raos
cabinet presented union budget and sit
together for checking the accounts.
Foreign exchange reserve was only
Rs.2500 Crores.
This balance was sufficient for importing
goods for only one Week at that time.

Present Status

Present Forex reserve in our hands is- Rs.

12 Lakhs Crores.
Development and Growth is concern
Sky is the limit.
Strategy Today :
Key concern to infrastructure building
PPP- Public Private Partnership

Contd.,

During 1991- Indias external debt was

1.82 Lakhs Crores.
Indias Strategy during that time:
Go along with LPG- (adopts Singapore
Model)
India was not afraid of any thing at that
time and concentrated on
Increased its Production and reduced
consumption, Increased Savings and
Investment.

Contd.,

India is part of BRIC yesterday and today it is

expanded BRICS

Current GDP is 8% - 9%

Influence of ICT, IT,ITeS,BPOs,KPOs

Viabrant banking sector- CBS, NEFT,ECS,BT,

RTGS,SWIFT

GDP is expected to touch our target double digit

very soon

Indias Core Competencies

Nearly 50% of our population is below the

age group of 35 Years

Very high rate of Savings on an average

-35%

India is not depending on G7 and China

Increased Consumption etc.,

Sectoral Growth by 2020-an

estimate

Education
- 6. 0 %
Pharmaceuticals
- 6 . 0%
Health Care
- 6 . 0%
Media
- 5. 0%
Entertainment
- 5. 0%
Urban Housing Projects - 4. 0 %
Banking
- 5. 5 %
Automobile
- 5. 0%
Retail
- 6. 0%
Insurance
- 4.5%

Nature of IB Today

Globalization of

Capital, Corporate Mindset, Supply Chain,

and Market Presence.
Recently visited US President request our
PM to open up our markets to US goods
and services.
Recent Chinese Premiers visit to our
country also expressed Chinas willingness
to be a trading partner of india.

Comprehensive index

According to A.K. Kearney, Management Consultancy

and Foreign Magazine,
Political engagement- membership in international
bodies (SAARC, OECD, ASEAN, and other global bodies)
Technological Connectivity No. of internet users,
hosts and secure servers ( Infosys campus at mysore)
Personal Contact - International trade and tourism,
internation telephone traffic, compensation to
employees (RIL received 400 chinese engineers
recently to its jamnagar plant in gujarat)
Economic integration FDI,portfolio capital flows etc

IB environment today

Key Challenges

MNCs, FDI, CSR and Ethics, Intl

Operations Management, PEST, Intl
Strategic Management, WTO, Institutional
Support, Intl strategic alliances, intl trade
blocks - NAFTA, GCC, OPEC etc.,

Viabrant Gujarat Global

Investors Summit

2005 - attracts Rs. 2,00,000 Crores

2011 -

Morethan 100 topnotch business leaders

participated recently a few days back

20,00,000 Crores

Multi Culturalism

Managing MC is essential for intl firms.

Strategy-culture fit
Need for greater awareness of multiculture

Spread cross-cultural literacy

Compatibility between strategy and culture
Culture and competitive advantage
Managing diversity etc

International Strategic Alliances

Partner Selection Many ending failure in

the past.
Managerial and Financial troubles

Economic Consideration for

Strategic Alliances

NPV (A+B) > NPV (A) + NPV (B)

Where NPV (A+B) = NPV of Firm As & Firm

Bs assets combine
NPV (A)
= NPV of Firm As assets
alone
NPV (B)
= NPV of Firm Bs assets
alone

Integration Between Countries

NAFTA Best known example globally

EFTA Europe
AFTA Asia
Trading Groups- EU,APEC-Asia-Pacific
Economic Cooperation.

Cost Quality and Delivery

Detroit, Stuttgart, Tokyo, Shanghai and

Pune

-a high tech manufacturing hub in india

-bangalore fastest growing city in the
world today
-chennai emerging medical hub of the
world

Contd.,

Thinking global
From Muscle power to Brain power
Realising global strategy
Global ramp through acquisitions- Cross
border mergers and acquisitions
India by 2020.

Benefits of Globalization

Liberalization of international trade

Expansion of FDI
Emergence of Cross-border financial flows
Movement of people
Transfer of Technology
Today East become Materialistic and West
is slowly moving towards Spiritualistic

Power of International
Corporates

Year : 2002
64,000 international companies
87,000 foreign subsidiaries
Employed 53 million people
Total sales $ 18 Trillion ( Worlds GDP $40
Trillion)
Out of these about 90% were from North
America, Western Europe,and Japan.

Phases of Globalisation

Globalization 1.0 and Globalization 2.0

were primarily driven by European and
American people.

Globalization 3.0 is powered by nonwestern and non-white group of

individuals

Yesterday EU, today Asian Union and

Tomorrow AU (African Union)

Future Direction

A Commitment by the developed

countries fairly for their natural
resources.
A renewal of commitments already made
by the developed countries.

Guiding Principles

Focus on people
Democratic and effective state
Sustainable development
Productive and equitable market
Fair rules
Globalization with solidarity
Greater accountability to people
Deeper partnerships
An effective United Nations.

World Bank estimate on India

by 2020

India would emerge as FOURTH Largest

economy by 2020 World Bank Report

India sustain its GDP growth with 8.5-9%

upto 2020.

India will overtake US by 2025.

India will be economic Super Power

Contd.,

Year 2000
Average Indian earned $ 500
Whereas an American earned $ 32,000
With 10% annual growth , an Indian will
be more than 10 times richer than today.