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INDIAN ECONOMY AND GLOBALISATION IRVING FISHER GROUP
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   WHAT IS GLOBALISATION ?
GLOBALISATION
 Issues Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers.
Shape of the world’s economy is being changed by “globalization” ,[object Object]
 Branding
 AdvertisingNike Dell          ,[object Object]
 Outsourcing,[object Object]
[object Object],people can now offer and trade services globally -- from medical advice to software writing to data processing -- that could never really be traded before. Globalization – what’s really new? New markets W-2, W-4, 1099 bonuses & stock statements Indian accountant US tax payers
[object Object],	ex: BRIC ,[object Object],Globalization – what’s really new? New rules and norms
[object Object]
New multilateral agreements – for services, intellectual property , communications – more binding on national governments than any previous agreements.Globalization – what’s really new? New rules and norms
Growth Customer Survey
* 2010 ,[object Object]
GDP growth rate – 9%
Services contribution – 60-65%
Balance of Trade – Negative balance should increase with surging imports versus exports
Investment goal – USD 370 billion* 2008 ,[object Object]
GDP growth rate – 9.5%
Services contribution – 60%
Balance of Trade – Negative balance should increase with surging imports versus exports
Investment goal – USD 305 billion2006 ,[object Object]
GDP growth rate – 9%
Services contribution – 54%
Balance of Trade – USD (-)46.2  billion
Investment goal – USD 250 billionGrowing Indian Economy *: ProjectedSource: Economic Times & India Brand Equity Foundation (IBEF)
Growing GDP Contribution of Services -   increased from 48% to 62% and is estimated to contribute 60% by 2010 *: ProjectedSource: India Brand Equity Foundation (IBEF)
Growing Exports *: Projected Source: Ministry of Commerce & IBEF
Source: Ministry of Commerce & IBEF Growing Imports
Increasing Forex Reserves 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)
Growing FDI Inflows India is ranked second in AT Kearney’s FDI confidence index (2007) Electronic equipment, manufacturing and telecom have witnessed significant FDI inflow * Provisional   Source: Department of Commerce
Increasing Per Capita Income Source: India Brand Equity Foundation (IBEF) & Economic Survey 2007-08
Major M&A and Investments Announcements in India POSCO to invest in building steel manufacturing plants and facilities in India by 2016 USD 12 billion  Plans to establish three manufacturing plants to produce photo-voltaic units USD 2 billion  Plans to spend on its development operations in India over the next four years USD 1.7 billion Source: India Brand Equity Foundation (IBEF)

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Indian Economy & Globalisation

  • 1. INDIAN ECONOMY AND GLOBALISATION IRVING FISHER GROUP
  • 2. 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 WHAT IS GLOBALISATION ?
  • 4. Issues Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers.
  • 5.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. New multilateral agreements – for services, intellectual property , communications – more binding on national governments than any previous agreements.Globalization – what’s really new? New rules and norms
  • 14.
  • 17. Balance of Trade – Negative balance should increase with surging imports versus exports
  • 18.
  • 19. GDP growth rate – 9.5%
  • 21. Balance of Trade – Negative balance should increase with surging imports versus exports
  • 22.
  • 25. Balance of Trade – USD (-)46.2 billion
  • 26. Investment goal – USD 250 billionGrowing Indian Economy *: ProjectedSource: Economic Times & India Brand Equity Foundation (IBEF)
  • 27. Growing GDP Contribution of Services - increased from 48% to 62% and is estimated to contribute 60% by 2010 *: ProjectedSource: India Brand Equity Foundation (IBEF)
  • 28. Growing Exports *: Projected Source: Ministry of Commerce & IBEF
  • 29. Source: Ministry of Commerce & IBEF Growing Imports
  • 30. Increasing Forex Reserves 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)
  • 31. Growing FDI Inflows India is ranked second in AT Kearney’s FDI confidence index (2007) Electronic equipment, manufacturing and telecom have witnessed significant FDI inflow * Provisional Source: Department of Commerce
  • 32. Increasing Per Capita Income Source: India Brand Equity Foundation (IBEF) & Economic Survey 2007-08
  • 33. Major M&A and Investments Announcements in India POSCO to invest in building steel manufacturing plants and facilities in India by 2016 USD 12 billion Plans to establish three manufacturing plants to produce photo-voltaic units USD 2 billion Plans to spend on its development operations in India over the next four years USD 1.7 billion Source: India Brand Equity Foundation (IBEF)
  • 34. India Inc. Investing Overseas Main sectors: Main Destinations: China, UAE, UKNorth America is emerging as a destination.
  • 35.
  • 36. India is the 4th largest economy in the world when measured by PPP
  • 37. India’s has a growing middle class of over 300 million people - 30% of India’s population – and larger than the population of the US
  • 38. 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.
  • 39. India is likely to add over 200 shopping malls by 2010 and 715 malls by 2015
  • 40.
  • 41. Major Items Exported to USA (2006) Source: US Department of Commerce
  • 42. Major Items Imported from USA (2006) Source: US Department of Commerce
  • 43. India co. going Global "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."
  • 44.
  • 45. 2nd largest two-wheeler market,
  • 46. 4th largest commercial vehicle market
  • 48. Expected to be the 7th largest automobile market by 2016
  • 49. India has become an attractive destination for global American,European,Japanese andKorean OEMs.Source: IBEF, Economic Times
  • 50.
  • 51. 1998-2003 FDI $ 2.5 Billion Per Year
  • 52. Target FDI $ 10 Billion Per Year
  • 53. Over 620 FIIs Compared to 500 in 2003 and Earlier
  • 54. China FDI & FII FDI $ 50 Billion Per Year FII $ 20 Billion Per Year GOI POLICY-FDI AND FII
  • 55.
  • 56. 60% of population still depends on agriculture for their livelihood.
  • 57. Occupied 43% of India’s geographical areas.
  • 58.
  • 59. Education Current Literacy rate is 64.84%
  • 60. What are people talking about India? "India has a fantastic pool of software professionals. The world needs to benefit from this.“ This market (India) is critical to our plans for building a Ford Motor Co. for the 21st century Bill Gates, Microsoft Chairman Bill Ford, Chairman and CEO India on its way to becoming IT, manufacturing kingdom of the world The dynamism shown by India in the last 15 years is phenomenal Mr Yasukuni Enoki, Japanese Ambassador to India Paul Wolfowitz, President, World Bank
  • 61.
  • 62. Need to generate 10 million jobs per year.
  • 63. Multi party rule, hence need to accommodate political ideology with economic reality (reservation, labour law reforms).India’s Problems
  • 64. Conclusion Companies in India That Have Successfully Met Competition by Multinationals & Domestic Companies Had A Spirit Of Innovation Not Only In Their Products And Services But Also With Reference To All Their Resources And Effectively Restructured Them In A Time And Cost Frame And Met Customer Needs And Improved Their Top And Bottom Line.