1. Exhibitions India Group
The Indian scenario By
Prem Behl
Chairman
Exhibitions India Group

2. Index The Indian Economy: An Overview
History of the Indian exhibitions industry
Exhibitions Venues in India
Doing business in India

3. The Indian Economy: An Overview1.

4. The Indian Economy: An Overview
The fastest rise in incomes….
% rise in per capita income

5. The Indian Economy: An Overview
The biggest drop in inflation…
% decrease in inflation

6. The Indian Economy: An Overview
Have prompted a spending boom…
% growth in consumption expenditure

7. The Indian Economy: An Overview
…as well as the highest level of savings
Household savings as % of GDP

8. The Indian Economy: An Overview
The economy is riding high
% annual growth in GDP

9. Additional economic indicators:
The Indian Economy: An Overview
Additional economic indicators:
India is the 4th largest economy in the world as measured by purchasing power
Between 1980 and 2003, India’s economy grew at an average rate of 5.7%
During the same period, India’s real income per head grew by %
Dr. Manmohan Singh, Finance Minister in 1991 and architect of India’s economic reforms, is the current Prime Minister

10. The Indian Economy: An Overview
• India has a consumer base of 1.2 billion people, and
• The youngest population of the world – hence sustainable, long term growth is assured
• Modern (organised) retail converging with the consumption boom will open up many opportunities for small and mid-size consumer companies
With upper income and rich classes growing rapidly and deprived classes actually falling, India’s income demographics will actually be unrecognizable by the end of the decade

11. The Indian Economy: An Overview
• Home ownership is on the rise with 5 Million homes added every year, approximately 1.5 Million new homes added in urban areas
• Mobile telephone subscriber base has grown from 0.3 Million in to over 55 Million currently; expected to grow to 200 Million by 2008
• 13 Million credit card holders currently & growing at 40% p.a.
• Passenger car sales of USD 5 Billion in 2004, more than twice the level of sales five years earlier

12. The Indian Economy: An Overview
Growth at the margin will close the gap between India’s per capita consumption and China’s
China India
Private consumption currently accounts for 64% of Indian GDP – higher than Europe(58%), Japan (55%) and China (42%)
Emerging consumerism from one of the world’s youngest population
Population Dependency Ratio = Ratio of Pop aged 65 years or over to the population aged (Source: Morgan Stanley)

13. Indians are Younger than the World…
The Indian Economy: An Overview
Indians are Younger than the World… 36 30 37 38 39 44
USA
China
Russia UK 24 35 40 45 50
Median age in years
India 31
2000
2025

14. India in 2050 The Indian Economy: An Overview
India will be the 3rd largest economy….
…..with the highest growth rate of BRICs
BRICs = Brazil, Russia, India, China
Source: Goldman Sachs, “Dreaming with the BRICs”

15. Analysts’ View of the Indian Economy
The Indian Economy: An Overview
Analysts’ View of the Indian Economy
“India is on the cusp of something big….[I] am as enthusiastic about India as I was about China in the late 1990s. What excites me most is the potential for an increasingly powerful internal consumption dynamic – the missing link in most development models.”
Stephen S. Roach, Chief Economist, Morgan Stanley Equity Research Global, October 31, 2005
“A dynamic and open India would have an important impact on the world economy. If India continues to embrace globalization and reform, Indian imports could increasingly operate as a driver of global growth as it is one of a handful of economies forecast to have a growing working-age population over the next 40 years.”
IMF, World Economic Outlook, September 2005

16. History of the Indian exhibitions industry2.

17. History of the Indian exhibitions industry
The history of Indian exhibitions dates back hundreds of years
Take, for example, India’s huge Pushkar Mela – now a great tourist attraction
Thousands of camels are traded on the sands of Rajasthan annually, even today

18. History of the Indian exhibitions industry
Soon after independence, in the late 1940’s, the Government set up the Directorate of Exhibitions under the Ministry of Commerce
An exhibition ground in New Delhi was developed to host the Railways exhibition in 1952 to mark the centenary of railways in India

19. History of the Indian exhibitions industry
1970
The Trade Development Authority (TDA) was set up in 1970 under the Ministry of Commerce
1972
The fair ground was christened “Pragati Maidan”
Pragati Maidan hosted “Asia’72: third Asian International Trade Fair” coinciding with India’s Silver Jubilee Year of Independence

20. History of the Indian exhibitions industry
1977
The Trade Fair Authority of India (TFAI) is formed by an Act of Parliament with the aim of organising trade shows
1992
The India Trade Promotion Organisation (ITPO) is formed by merging the Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI)

21. Exhibitions Venues in India3.

22. Exhibitions Venues in India
Exhibition Venues
International Airports
Exhibition Venues
International Airports

23. Exhibitions Venues in India
New Delhi
Name
Area (in sqm.)
Outdoor Area (in sqm.)
Additional facilities
Pragati Maidan
Owned and managed by the Indian Trade Promotion Organisation (ITPO)
60,000
10,000
2 Conference Halls (capacity – 200 each), 4 theaters

24. Exhibitions Venues in India
New Delhi
Pragati Maidan is a massive venue of 149 acres in the heart of India’s capital city
The venue’s 16 exhibition halls and other facilities are ageing and far from being world class
The ITPO has proposed to completely modernize and revamp the venue by 2010 (subject to approval by the Commerce Ministry)

26. Additional facilities
Exhibitions Venues in India
Greater Noida
Name
Area (in sqm.)
Additional facilities
India Expo Center
Owned by the Export Promotion Council for Handicrafts (EPCH)
7,500
1st phase of construction complete. Another 20,000 sqm., as well as a 5 star hotel, to be built by 2008

27. Exhibitions Venues in India
Mumbai
Name
Area (in sqm.)
Outdoor Area (in sqm.)
Additional facilities
Expo Center Owned by the World Trade Center
2,500
n/a
Bandra Kurla Complex
Owned by the Maharashtra Dev. Co.
50,000
Organisers typically set up air conditioned hangars
Bombay Exhibition Center
Owned by Nesco Ltd.
60,000
Non air-conditioned halls

28. Exhibitions Venues in India
Chennai
Name
Area (in sqm.)
Outdoor Area (in sqm.)
Additional facilities
Chennai Trade Center
Owned by the Indian Trade Promotion Organisation (ITPO) and the Govt. of Tamil Nadu
6,800
3,000
Opened in 2001,
1st phase complete
Conference Room (Capacity – 200 people)

29. Exhibitions Venues in India
Bangalore
Name
Area (in sqm.)
Outdoor Area (in sqm.)
Additional facilities
KTPO Exhibition Complex
Owned by the ITPO and the Karnataka Industrial Area Development Board (KIADB)
5,500
4000
Opened in 2004,
1st phase complete
Conference Room (capacity – 200)

30. Additional facilities
Exhibitions Venues in India
Hyderabad
Name
Area (in sqm.)
Outdoor Area (in sqm.)
Additional facilities
Hitex Exhibition Center
Jointly owned by the Govt. of Andhra Pradesh and the private sector
10,000
30,000
Opened in 2003
1st phase complete

31. Opportunities Aplenty
The need for quality trade shows and venues is apparent
If India and China are Asia’s emerging giants, then India is falling terribly behind in its trade fair development
China has approximately 150 exhibition centers and 3 million square meters of exhibition space
India, according to our calculations, has 6 dedicated exhibition venues and 90,000 square meters of indoor exhibition space – this is estimated to increase by 40% in 3 years

32. Doing business in India4.

33. Doing business in India
There exists a myth that doing business in India is difficult With the right Indian partners, this is not at all the case
United Nations World Investment Report 2005
A TNC (transnational corporations) survey has ranked India as the third most attractive investment destination
In the same report, a UN expert opinion group ranked India as the second most attractive investment destination

34. Doing business in India
Indian Trade Promotion Organisation (ITPO)
In order to organise a trade show in India, an organiser must gain approval from the ITPO
For leading trade show organisers, this is a straight forward and simple process
This approval consists of a Customs Notification allowing the duty free temporary import of goods to be displayed

35. Doing business in India
Customs
In line with international practices, there exists a well established system allowing foreign participants the facility of duty free temporary imports for exhibitions
India is a signatory to the ATA convention. ATA Carnets are accepted at all major exhibition destinations in India

36. Doing business in India
Freight Handling
There are professional and experienced exhibition logistics companies that provide a full range of services
The scope of services range from customs clearance to on site handling with modern mechanical handling equipment and a skilled work force
These logistic service providers have an extensive international network

37. Doing business in India
The following is a brief list of leading freight forwarders
RE Rogers India Pvt. Ltd.
Translink Express (I) Pvt. Ltd.
Schenker India Pvt. Ltd.
Orient Marine Lines Pvt. Ltd.
The following is a brief list of leading stand constructers
Pavilions & Interiors India Pvt. Ltd.
PICO International Exhibitions Pvt. Ltd.
Meroform (India) Pvt. Ltd.
Kingsmen Fairtech International Pvt. Ltd.

38. Doing business in India
Reforms in Exchange Control & Taxation
Exchange Control
All investments can be on a repatriation basis
Original investment, profits and dividends can be freely repatriated
Foreign investors can acquire immovable property incidental to or required for their activity
(Source: Ministry of Commerce & Industry, Government of India)

39. Doing business in India
Reforms in Exchange Control & Taxation
Taxation
Companies incorporated in India are treated as Indian companies for taxation
There exists a Double Taxation Avoidance Agreement with 65 countries
Peak Custom duty has been reduced to 15%
Corporate Tax has been reduced to 30%
Tariff to be aligned with ASEAN levels
Value Added Tax introduced in some States from 1st April 2005
Transparency in Tax Structure: Online/ ICT Applications
(Source: Ministry of Commerce & Industry, Government of India)

40. Thank You

41. The Indian Economy: An Overview