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1 India global power? India Symposium ING, KPMG & NICCT 1 June 2006 Mr. Eric F. Ch. Niehe.

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Presentation on theme: "1 India global power? India Symposium ING, KPMG & NICCT 1 June 2006 Mr. Eric F. Ch. Niehe."— Presentation transcript:

1 1 India global power? India Symposium ING, KPMG & NICCT 1 June 2006 Mr. Eric F. Ch. Niehe

2 2 Introduction A comparison 2004China India Netherlands EU25 Population (in millions) 1,306 1, Population growth 0.58% 1.5% 0.53% 0.2% Land area (in square km)9,596,000 3,300,000 41,530 3,974,000 source: Economist Intelligence Unit

3 3 Political situation India The largest democracy of the world A well functioning judiciary at the highest national level Free press Vibrant, but complex, civil society

4 4 Political risks Jammu & Kashmir Situation in the region North-Eastern areas Religious tension Risk of social unrest

5 5 Factors Indian growth rate Capacity to catch up Large and young labour force Cheap labour Large supply of highly educated English speaking graduates Good work ethics

6 6 Why India? HighLow People strength Productivity/quality Costs English language skills Short fall Surplus Projected workforce in 2020 India Philippines Mexico Israel Ireland Russia China Malaysia Brazil Indonesia Turkey Bron: U.S. Census Bureau; BCG analysis

7 7 Limitations to growth  Bureaucracy  Poor infrastructure  Corruption (Prime Minister Manmohan Singh)

8 8 Indian success sectors IT Medical Pharmaceutical Floricultural Manufacturing

9 9 ‘Indian threat’ India, back office of the world India, doctor of the world India, pharmacist of the world India, florist of the world India, manufacturer of the world

10 10 Opportunities for Dutch companies Agricultural industry Construction and infrastructure / logistics Water ICT Medical sector Biotechnology Financial sector

11 11 Bilateral relations 2005 Indian export to NL (mln.)1, % NL imports2.0% Indian exports Indian import from NL % NL exports0.7% Indian imports Netherlands 5th largest investor in India (1.9 bln. dollar / period August January 2006) NL FDI to India0.17% total NL FDI13.19% FDI into India Netherlands largest recipient of Indian investments abroad (25 % of total of 1 bn.)

12 12 Consequences for the Netherlands High quality Dutch jobs are being transferred to India The Netherlands has to invest in innovation

13 13 Consequences for the Netherlands India can soften the effects of the ageing Dutch population Knowledge immigrants

14 14 Conclusion India global power?India global power? Yes, but….. when? Netherlands: wake up!Netherlands: wake up!


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