1. INDIA FASTEST GROWING FREE MARKET DEMOCRACY IN A GLOBAL ECONOMY
Presentation by:
Kamal Meattle, CEO, PBC-STIP, New Delhi, India

2. CONTENTS THE INDIA STORY INDIAN SUCCESS STORIES
INTERNATIONAL SUCCESS STORIES
INDIA ADVANTAGE
BUSINESS OPPORTUNITIES
BUSINESS OPPORTUNITES FOR PHILIPPINES
SME : ADDING VALUE
WINNING ATTITUDE
ACKNOWLEDGEMENT

3. THE INDIA STORY

4. 1947 : Year of Indian Independence
Today’s India is one of the fastest growing Democratic Market Economy, well on it’s way to be integrated with the world economy
The famous Goldman Sachs report ( Dreaming with BRICs: The Path to 2050 ) states that, among Brazil, Russia, India and China, India will grow the fastest over the next 30 to 50 years by leveraging its demographic advantages and through continued development
India’s GDP will exceed Italy’s in 2016, France’s in 2019, Germany’s in 2023 and Japan’s in 2032
INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032
AND…
THE STORY BEGAN IN 1947

5. India Pre - Liberalization
Planned Industrial Development
Industry Licensing and Quotas
Dominance of Public Sector
Restriction on Private Investment
Socialism
Mixed Economy

6. The New Industrial Policy for liberalization-1991
De-licensing
De-control
De-regulation
Broad banding
Abolition of registration
Liberalization of
Industrial Licensing
FERA Liberalization
Liberalization of foreign investment
Liberalization of Technology Import

7. The New Industrial Policy for liberalization - 1991
MRTP Liberalization
Abolition of threshold assets limit
No MRTP clearance needed for expansions, mergers
Several industries hitherto reserved for public sector opened up to private sector
Only eight core industries remain reserved for the public sector
Purview of Board for Industrial and Financial Reconstruction (BIFR) extended to Public sector
Curtailment of Public
Sector

8. India Liberalization Stage - Strategies Developed
Government’s role changed to Regulator from Licensor
All Licenses Rationalized
Active participation of private sector
FDI being Welcomed (100%) - Automatic Route
Barriers Dismantled & Procedures Simplified
Indian Industries Actively Investing Abroad
Bureaucracy - Less Government is Good Governance
Allowing Market Forces to Govern the Efficient Allocation of Resources with Minimum State Intervention
Reducing and rationalising foreign trade barriers

9. Economic Scenario : Post Liberalisation
India - One of the fastest growing economies in the world
Average GDP growth ( ) : 6.2 % per annum
Average annual growth ( )
Agriculture & Allied : % per annum
Industry : % per annum
Services : % per annum
Average Per Capita Income growth ( ): 3.8 % per annum
Inflation down to a single digit level continuously for the last ten years
Foreign exchange reserves increased from US $ 2 b (March 1991)
to US $ 145 b (September 2005)
Merchandise Exports : +20 % average rate of growth in last three years
Booming Services Exports from US $ 4.6 b in to US $ 51.3 b in

10. Economic Scenario : Post Liberalization
Balance of Payments surplus (US $ 26 b in )
External Debt Service Ratio down from 26.2 % in 1995 to 6.2 % in 2005
Foreign Direct Investment (FDI) : Average +US $ 5 b pa in the last
five years.
Foreign Portfolio Investment : US $ 11.4 b in and
US $ 8.9 b in
Reforms continuing and have unleashed dynamic forces –
putting the economy on a trajectory of unparalleled economic
growth in the future
The Indian Government is working in close co-operation with
industry and trade to mitigate the remaining problems and
constraints
Broad consensus across the political spectrum on the need for
and direction of the reforms. Some issues still need to be resolved

11. Share Of Services Sector In GDP On The Rise (%)

12. Agriculture India the world’s most irrigated land mass
world’s 2nd largest exporter of rice & 5th largest exporter of wheat
Food production: India’s Ranking in the World
1st Tea, Milk
2nd Rice, wheat, sugar

13. Manufacturing Rate of growth 2003-04 7 % 2004-05 9.2 %% %
Diversified base of world class capabilities
State-of-the-art technologies
TQM,TPM, Six Sigma & Lean Manufacturing - part of
everyday practice
Diversified industrial base with supporting ancillary industries
Overseas acquisitions worth US$ 500 m

14. Services Consistent growth 2003-04 9.1 % 2004-05 8.9 %% %
Sectors Driving Growth
- ITES
- Healthcare
- Financial Services
- Education
Source:Economic survey,

15. Average GDP growth - India & the World
9.4
9.5
8.5
7.5
6.2
6.5
5.5
4.9
Growth (%)
5.5
4.7
4.5
3.3
2.9
2.9
3.5
2.0
2.5
1.5
India
China
USA
Brazil
S.Korea
Thailand
Mexico
Indonesia
Philippines
Source: WDI, World Bank, 2003

16. Rising share of India’s external trade in GDP
Target :
To double share of exports from 0.7 % to 1.5 % of world trade

17. Macro Economic Indicators (2004 - 05)
Land Area: m sq. km.
Population: b
GDP: US $ 630 b
Real GDP Growth: 6.9 %
Gross Domestic Savings: % ( )
Gross Domestic Investment: % ( )
Per Capita Income: US $ 580
Inflation Rate: %

18. Macro Economic Indicators (2004-05)
Exchange Rate: US $ 1 = 43.75
Merchandise Exports: US $ 80b
Merchandise Imports: US $ 106b
Services Exports: US $ 51b
Foreign Direct Investment: US $ 5.5b
Foreign Portfolio Investment: US $ 8.9b
Direct Investment Abroad: US $ 1.5b

19. INDIAN SUCCESS STORIES

20. Indian MNCs - On a global buying spree
Number of foreign firms acquired 120
by Indian companies during
Total worth US $ 1.6 b
India - 8th largest investor in the UK
No of investments
No of Indian companies with 1,441
operations in Singapore

21. India – Leading The World
Hero Honda - Largest producer of motorbikes in the world
Moser Baer - World’s 3rd largest producer of optical media
Hero Cycles - World’s largest bicycle producer
Bharat Forge - Amongst the world’s top 3 forgings manufacturers
UB Group - World’s 2nd largest producer of alcoholic beverages
Paharpur Cooling Towers - World’s 2nd largest manufacturer of
Cooling Towers

22. India – Leading The World
Apollo Hospitals - Single largest hospital chain in South Asia
TISCO - world’s cheapest producer of steel
Reliance Industries - World’s largest producer of PTA, a chemical
used in textile production
Mahindra & Mahindra - Amongst top 3 tractor manufacturers in the
world
Telco - Amongst top 3 truck manufacturers in the world
Welspun - World’s largest producer of terry-towels
Gujarat Ambuja - Amongst top 5 cement producers in the world

23. Some Indian Examples Benchmarked with the Best In The World

24. Success Story of RELIANCE
The Reliance Group founded in 1932, is India's largest business house with total revenues of over US $ 22.6 b and exports of US $ 3.6 b
It began as a an SME The Group's activities span exploration and production of oil and gas, refining and marketing, petrochemicals, textiles, financial services, insurance, power, telecom and infocom initiatives
The Group exports its products to more than 100 countries the world over
Reliance Group revenue is equivalent to about 3.5 % of India's GDP
The Group contributes nearly 10 % of the country's indirect tax revenues and over 6% of India's exports
Today, the Reliance Group has one of the largest family of shareholders in the world

25. Success Story of WIPRO
Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945
An SME and primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap
It was in the early eighties that Wipro made its foray into the Infotech arena
With this began the Wipro Infotech story
Today, Wipro stands at the firmament, as a trusted and experienced provider of a comprehensive range of IT services, solutions and products, worldwide

26. Success Story of BHARTI
Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business
It all began as a Small Industry
Bharti Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across India
Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri- products exclusively to markets in Europe and USA

27. Success Story of DR.REDDY’S
Dr.Reddy’s Laboratories was founded in 1984, with a capital of US $40,000 in cash and US $120,000 in bank loan
In fact, it is this spirit of entrepreneurship that has shaped the company to become what it is today
Today, the company with revenues of US $446 m, in fiscal year 2005, is India’s second largest pharmaceutical company and the youngest among its peer group
Dr. Reddy’s started its drug discovery programme in 1993 and within three years it achieved its first breakthrough by out licensing an anti-diabetes molecule to Novo Nordisk in March 1997
With this very small but significant step, the Indian industry went through a paradigm shift in its image from being known as just ‘copycats’ to ‘innovators’!
Through its success, Dr. Reddy’s pioneered drug discovery in India
Today, the company manufactures and markets API (Bulk Actives), Finished Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising Drug Discovery Pipeline

28. Success Story of BIOCON
Biocon is India's leading biotechnology enterprise
Over the past 25 years, they have evolved from an small enzyme manufacturing company to a fully integrated biopharmaceutical enterprise, focused on healthcare
At Biocon, success has been their ability to develop innovative technologies and products and to rapidly leverage them to adjacent domains
This unique "integrated innovation" approach has yielded a host of patented products and technologies that have enabled multi-level relationships with their global clientele
As India's first and leading biotechnology company, Biocon extends its support to numerous community outreach and corporate citizenship initiatives with special concentration in the areas of healthcare, education and environment
The Biocon Foundation, set up in 2004 has recently launched Arogya Raksha Yojana, a unique health initiative for rural India

29. Success Story of Paharpur Cooling Towers
In its over four decades of existence, Paharpur has come to be acknowledged as the pioneer in the Indian cooling tower industry
It all began as a small industry with a capital of US $ 11,000
At today's selling prices, Paharpur has sold cooling towers valued at over US$ 1 b
If these cooling towers were all working together, they would be able to cool more than 265 million liters of water every minute or 382 b liters in 24 hours
The Paharpur team consists of highly qualified engineers & professionals with over 1,000 man years of experience in the field of cooling tower application engineering, designing, erection and trouble shooting
Paharpur has pioneered several improvements in cooling tower design and operation and has emerged as one of the largest cooling tower manufacturers in the world, with exports to more than 40 countries

30. Success Story of Standipack
A successful SSI unit set up in 1980, in NCR, Delhi
It is the largest lube oil flexible packaging company in India producing
packaging materials, machinery and systems and doing contract packaging
Produces /contract packages over 300 m packages a year, for the oil
majors in Delhi, Kolkata, Chennai and Mumbai
Patents in most countries of the World

31. Success Story of Paharpur Business Centre & Software Technology Incubator Park
Began operations in 1990 in New Delhi, with an equity capital of Less than
US $ 15,000
Current net worth of US $ 10 m
Provides a suite of 28 services, employing 450 persons
Has Fortune 500 companies, MNC's and corporate, as clients
Has five international certifications, ISO 9001, ISO 14001, SA 8000, OHSAS
18001 and HACCP
Commitment to UN Global Compact

32. Success Story of Paharpur Business Centre & Software Technology Incubator Park
Publishes its annual Sustainability Report following the GRI system
Reports its triple bottom line - relating to profit, environment and
sustainability
Now providing technical support to setting up of a 1.7 m ft2 Software Park
near Delhi that has been given the SEZ status by the GOI –
‘The Haryana Technology Park’
Company showcased by CII at the World Summit on Sustainable
Development in Johannesburg in 2002 for its sustainability initiatives
Its USP is the Clean Indoor Air in its Center in Delhi - Certified Mountain
Quality Air using biotechnology developed by NASA, USA to clean air

33. INTERNATIONAL SUCCESS STORIES

34. India attracts second highest private equity investment in Asia
Preferred Destination For Foreign Equity Investors
India attracts second highest private
equity investment in Asia
Total equity flow to India between 1999 and 2004 doubled
from US $ 5.12 b to US $ b
Source: NASSCOM

35. MNCs leveraging the India Advantage

36. FDI INFLOWS TO INDIA *

37. International Brands Utilizing The Indian Knowledge Base
More than 100 global companies outsource R&D facilities from India
GE John F Welch Technology Centre – Company’s largest research outfit outside the USA
GE Medical Systems – India as sole sourcing base for its portable ultrasound scanner
Monsanto – First non-US research facility
Eli Lilly – largest research facility in Asia and 3rd largest in the world
Texas Instruments – Digital Signal Processor developed in India – controls 50% of the world market
AVL, Austria – India as base to do R&D for the company’s Japan centre

38. Case Study of Selected German Companies in India
Beiersdorf
Problems at beginning:
Existence of rival company (Nivea) in the market (personal hygiene market)
Reason for success:
Relative name recognition
Adaptable Indian staff
Suppliers who are willing to cooperate
Immense support in form of technology and know-how transfer from side of Germans
Great market potential
What is important for business-collaboration with India?
Patience and endurance
Local manager who knows mother company
Collection of experience through business connections

39. Case Study of Selected German Companies in India
Daimler Benz
Decentralized research was quite essential
Achievement of local representation to assess market specified interests
Why India?
Great resources of highly qualified scientists as staff
Availability of human capital with low labor costs
Internationality:
English language and understanding of European culture (due to British history, existence of numerous institutions, administrations, school etc)
Economic Policy

40. India – A Preferred Destination
"India has the potential to deliver the fastest growth over the next 50 years with an average rate of more than 5 per cent a year for the entire period”
Dominic Wilson, Senior Global Economist and Vice President, Goldman Sachs 2005
“India's highly educated workforce, management talent, rule of law, transparency, cultural affinity and regulator environment are more favorable than China's.” 
A T Kearney, FDI Index 2004
"We want to bring to the world various facets of this extraordinary country, its people and progress" 
Chris Cramer, International Managing Director, CNN 2004
“Quite simply, I was blown away by what I saw on my first trip to India”
Stephen Roach, Managing Director & Global Chief Economist, Morgan Stanley 2004

41. INDIA ADVANTAGE

42. of research laboratories Extensive clinical trial
The India Advantage
Excellent network
of research laboratories
Well-developed
base industries
Pro active
policy framework
Proficiency in
English
Extensive clinical trial
opportunities
Rich biodiversity
Low manpower
costs
Trained manpower
and knowledge base

43. Demographics: A strong demand driver

44. Growing Knowledge Pool
Source: UN, Morgan Stanley
Source: IMD Competitiveness Yearbook 2003

45. Costs for offshore work 30 - 50 % lower than in USA / Europe
The Cost Advantage
Costs for offshore work
% lower than in USA / Europe

46. Low Wages
Source: IMD Competitiveness yearbook, 2003

47. Import duty Reductions

48. India - Economic Enablers
10th largest economy in the world - 4th in terms of PPP
Will overtake Japan in PPP terms by 2010, to be 3rd largest in the world
Large entrepreneurial base and diversified manufacturing structure
Large reservoir of skilled labour at internationally competitive cost
Vast pool of scientifically and technically qualified manpower of 20m
A large domestic market m + strong middle class population
having substantial purchasing power
Largest democratic set - up
A broad based and transparent legal framework including arbitration

49. India - Economic Enablers
Vast network of bank branches, financial institutions and well-organized
capital and money markets
A network of technical and management institutes of highest
international standards for development of human resources
India has a record of meeting its international financial obligations as
per schedule and has never been a defaulter
No communication barrier, as English is the most prevalent business
language
Strong and vibrant small scale sector that is keen to establish
strategic alliances with their foreign counterparts

50. India - Economic Enablers
Supportive infrastructure base
Strategic location for third country markets, particularly in the rapidly
growing south and south-east Asian countries
The strategic location of India and its easy and efficient access to the Middle East, East European countries, CIS countries, Africa, South East Asia and Asia-Pacific countries places it in a unique position as a sourcing ground for entering into strategic alliances in export-oriented industries
Foreign companies can take advantage of India’s strategic location and tap the markets of these countries.
India is slowly but surely emerging as an attractive destination for foreign investment
Liberalized industrial and foreign investment policies

51. India - Economic Enablers
Recognising the need and the potential in certain areas, the Government has also come out with specialised packages of incentives for setting up projects in the fields of power, roads and highways, telecommunications, mining, drugs and pharmaceuticals,hydrocarbons, shipping and ports, tourism, electronics, food processing, etc
The Government is vigorously promoting and approving foreign direct investment keeping in view the objective of attracting at least US $ 10 b per annum
The Government is very keen to attract sizeable foreign investment into infrastructural projects like roads, power, ports, telecommunications, etc. as the demand for infrastructural services is expected to rise several times to match the projected economic growth of around 8 % per annum in the next ten years

52. India - Economic Enablers
Sector FDI Limits
Defence up to 26 %
Telecom up to 74 %
Civil Aviation up to 49 %
Real estate & construction sector up to 100 %
Integrated township development up to 100 %
Tea plantation up to 100 %

53. The India Advantage: Infrastructure
Road length m km
Second largest road network in the world
Railway routes 63,000 km
Cargo handled m tonnes
Electricity installed capacity 126,000 MW
Sixth in world electricity generation
Telephone Connections 77 m lines
Fixed lines (Dec, 2004) m
8th largest telecom network in the world
Source: Department of Economics & Statistics, Tata Services Ltd

54. Indian Brains Abroad
Though foreign multinational have dominated the research agenda in India
to date, a growing number of Indians who have worked abroad are
returning home with cash, contacts and confidence to set up companies
of their own
These are people who have the experience and exposure to best practices
abroad
For the first time, Indians who have been exposed to the world, realize they
can do something just as good and they can be world-class
They have an attitude to meet challenges and succeed and also give back
something to their country
35 % of Doctors in USA
36 % of NASA Scientists in USA
35 % of Silicon Valley Start-Ups are by Indians
India emerging as outsourcing hub

55. BUSINESS OPPORTUNITIES

56. Opportunity in various Industry Sectors
Software
Biotechnology
Outsourcing
Retailing
Real Estate
Auto Components
Telecommunication
Media & Entertainment

57. Opportunities in Software
The Software industry in India is witnessing an explosive growth and expects
to generate US $ 87 b including US $ 50 b from exports by 2008
More than 150 global business giants have set up research and development
facilities in India
Some of these firms are GE, Microsoft, TI, HP, IBM, Daimler Chrysler and
Motorola
Bangalore has over 150,000 software engineers and a concentration of
hi-tech companies
Delhi and NCR is the 3rd largest exporter of Software services from India
More than 70,000 software professionals enter the Indian market each year

58. Opportunities in Software – The China Connection
China has a worker base equal to India's in terms of cost, quality
and scale
In future, the Indian software Industry will use China as a base to
cater to the local markets including Japan
Indian firms such as HCL, TCS, Infosys and Wipro have already
opened centers in China to outsource technology talent

59. Growing IT Market
Size ( ) US $ 24 b
Growth rate %
CAGR (since 1999) 46 %
Share of IT and BPO 1.4 % of GDP
2008 projection 7 %
Exports ( ) + US $ 12 b
Growing at % pa
Employment Over 650,000
Second largest employer in IT services sector

60. Opportunities in Biotechnology
Biotechnology is a fast emerging sector in India
The consumption of biotech products in India was US $ 1.8 b
in 1999 and is expected to cross US $ 4.2 b by 2010
It is estimated that 10 % of the researchers and 15% of the
scientists in pharmaceuticals and biotech R&D in USA are of
Indian origin
India is churning out 2 m graduates, 300,000 post
graduates and 1,500 PhD's, every year
Biocon, the first biotech company was launched in 1978
Indian Firms such as Shantha Biotech, Bharat Biotech,
Dr. Reddy's Lab and Biocon are all very successful firms  

61. Biotech Market - A consistent Uptrend
25 % growth in investment
70 % growth in employment
74 % growth in R&D
manpower
Size US $ 705 m
US $ 5 b annual
revenues
2010
1 m skilled jobs
10 % of global industry
Source: Confederation of Indian Industry (CII)

62. Pharma Market Size (2002- 03) US$ 7 b Size 2010 (estimated) US$ 25 b
CAGR ( ) %
Exports %
CAGR( )
Volume – wise 8 % of global market
4th largest in the world
Share of formulations 80 %

63. Opportunities in Outsourcing
The Indian Outsourcing industry is moving up the value chain
It is BPO today but the future is for Knowledge Process Outsourcing
(KPO), Financial Process Outsourcing (FPO) and Legal Process
Outsourcing (LPO)
It is providing value through domain expertise rather than process
expertise
India, in the new knowledge economy, is all set to emerge as a global
KPO,FPO and the LPO hub
It is estimated to capture 71 % of the world market by 2010 against
56 % today giving it a market of US $12 b
There are new opportunities, given that there is a serious shortage of
quality teachers, in the USA

64. Opportunities in Outsourcing
The remote education market is expected to be US $ 15 b by 2008
The current leaders are Engineering design – US $ 400 m, basic
data search, integration and management – US $300 m and Biotech and
Pharma – US $ 280 m
The Compounded estimated annual growth of KPO for India is 50 %
whereas BPO will grow at about 30 %
KPO is expected to engage 250,000 people by 2010
It will be in areas such as biotechnology,animation and graphics,design
in aerospace & automotive, health care, pharma research, learning
solutions, data management, customer analytics and entertainment
FPO will include insurance underwriting, risk assessment, equity
research and corporate market research

65. ITES - BPO Sector - ITES exports projected to touch US$ 24 b by 2008
- India offers combination of cost-quality-scale advantage

66. Opportunities in Retail Sector
The ongoing buoyancy in India’s spending, arising from the changing demographics and the resultant rise in income levels, has resulted in a distinct consumer preference for value-added products across the retail spectrum, providing a platform for the rapid growth of the retailing sector which could emerge as one of the fastest growing sector in coming years
Organized retailing industry to rise from US $ 4b to US $ 15b by 2010
The total retailing industry, estimated at US $ 200b is largely in the unorganized sector with organized retailing accounting for less than 2 % (US $ 4b)
The organized retailing segment to grow fourfold in 5 years
According to NCAER, the Indian middle class (household income between US $ 4,500 – 23,000) currently at 92m, is expected to cross 153m by 2010
Substantial mall construction:
The number of malls is expected to rise from the current 40 to around 250 by 2010
Close to 50m sq. ft. of retail space is expected to be developed over the next 5 years

67. Opportunities in Real Estate
The US $ 50 b Indian real estate market is booming and expected to grow at
25 per cent annually
The boom owing to the consumption powered growth of the country's
economy has seen investors planning nearly 250 new shopping malls
by 2008, as against just three that existed till 2002
The central government adopted a regulation in allowing
foreigners to bid for Indian construction projects with local partners
and also reducing their minimum land - holding limit from 100 acres to
25 acres
Enthused by the liberalized investment guidelines, a slew of foreign
builders are rushing to launch projects in Asia's third largest economy
Expected annual shortfall of 20 m housing units by 2011
Mumbai alone would need more than 180,000 housing units
An opportunity – for developing large- scale commercial and residential
townships in six cities – Kolkata, Bangalore, Mumbai, Chennai, Hyderabad
and New Delhi

68. Opportunities in Auto Components
The Indian automotive industry has grown at a staggering pace over the last few years
The US$ 6.8 b industry has registered a CAGR of 17 % between and is projected by ACMA to grow at a 15 % CAGR till fiscal 2012
The opening up of the sector over the last decade has caught the attention of global auto majors
In the 1990’s, economic liberalization allowed foreign automakers such as Hyundai, Ford, Toyota and GM set up base in India
They also persuaded their overseas components suppliers to set up local manufacturing bases in India
For example, Delphi followed General Motors and opened their plant in the state of Gujarat in 1995 and Visteon followed Ford in 1998

69. Opportunities in Auto Components
Present Industry size US $ 6.8b
By US $ 17b
Total Exports By US $ 5b
Key Features
- Suitability as a low cost manufacturing base for MNCs
- Costs % lower, compared to USA
- High product quality, superior design & engineering
capabilities
* Source: ACMA

70. Opportunities in Telecommunication
Until 1995, during the more than forty years of government monopoly, there
were 9.4 m telephone connections
There are 46.2 m fixed line subscribers and 52.2 m mobile phones
The mobile phone market is growing at 2 m per month
Estimated rise in Cellular by 100 m subscribers by 2007
Basic telephone connections 175 m by 2010
100 % FDI in telecom equipment manufacturing
Almost 2 m wireless subscribers getting added every month
Unlike many developed countries, the GSM and CDMA technologies co - exist
The outsourcing boom would not have occurred without the private telecom
sector

71. Opportunities in Media & Entertainment
The Indian media and entertainment industry, with the prominent
segments being films, television, and music has grown in recent times
The entertainment industry is currently generating revenue of US $ 7.2b
The average growth budget for films has been increasing by 15 % p.a
Another high growth segment of the entertainment industry is television
broadcasting
The present size of this segment is estimated to be US $ 1b
The penetration of cable TV, in the rural segment is expected to
grow by 12 % pa
The music industry in India is expected grow at 20 % pa
FM radio broadcasting has been privatized

72. BUSINESS OPPORTUNITIES
FOR PHILIPPINES

73. Bilateral Trade Value in US $ m Year Export Import Total Trade
Balance of Trade
239.01
27.77
266.78
211.24
118.71
37.25
155.96
81.46
143.68
56.31
199.99
87.37
201.63
62.97
264.60
138.66
248.63
95.17
343.80
153.46
473.23
123.98
597.21
349.25
321.54
122.11
443.65
199.43
393.90
181.87
575.77
212.03
Source: Ministry of Commerce, India

74. Major Indian Exports To Philippines
  • Meat & preparation
• Drugs, Pharmaceuticals & fine Chemicals
• Rubber manufactured products except footwear
• Plastic & Linoleum Products
• Primary & semi finished iron steel
Major Indian Imports From Philippines
  • Metal ores & scrap
• News print
• Non - ferrous metals
• Gold
• Electronic goods

75. Potential for Business
• IT & ITES
Sharing information & technology for clean environment
• Gems and Jewelry
• Natural and Herbal Products
• Renewable Energy Sources
• Dairy
• Drugs and Pharmaceuticals
• Construction and Material and services
• Mining
• Oil and Gas

76. Deteriorating Air Quality
The major sources of air pollutants
Motor vehicles
Industrial plants
Burning and construction work
The continuing increase in motor vehicles and population, the inadequate mass transit system, worsening traffic conditions, the establishment of pollutive industries, the widespread practice of open burning, and inadequate enforcement, if not adequately addressed, are bound to contribute to increasing air pollution in the surrounding areas
The most effective approach in improving air quality is to stop the generation of pollutants at their source
This involves replacing a highly pollutive technology or energy source with a non-polluting or a less polluting one, including shifting to cleaner fuels

77. Air Quality Management
The world’s best practices in preventing air pollution and maintaining ambient air
quality reflect the creative use of technology and fuel options, which range from
Use of cleaner vehicle fuels - CNG, Gasohol, Biodiesel, Fuel cell, Electricity
Solar energy
Wind energy
Mass transportation systems – Underground, Monorail
Usage of Appropriate technologies for ‘Green Buildings’
Innovative urban planning incorporating walkways and bike lanes

78. Improvement Of Ambient Air - Nehru Place Greens,
New Delhi  
* American Society for Heating, Refrigeration, Air Conditioning Engineers (revised)
** American Society for Heating , Refrigeration, Air Conditioning Engineers (revised)
# Below Detectable Level
Any presence of Benzene is carcinogenic
^ Data validated to August 2005

79. IAQ Results After IAQ Program At PBCTM - STIP
American Society for Heating, Refrigeration, Air Conditioning Engineers (revised)
American Society for Heating , Refrigeration, Air Conditioning Engineers (revised)
Below Detectable Level
any presence of Benzene is carcinogenic

80. Sansevieria Trifasciata
Air Quality Management – Grow Fresh Air
Sansevieria Trifasciata
(Bed Room Plant)
Areca Palm
(Living Room Plant)
Using toxin removing plants to clean the air
Biotechnology originally developed by NASA, USA and research done by
PBC - STIP on plants suitable for the Delhi climate

81. SME: ADDING VALUE

82. SME’s IN EU Category Max.# Employees Max. Turnover Euro m Medium 24950
Small 49 10
Smallest 9 2
Wef. January 2005

83. SME’s IN INDIA
The definition of small-scale industries (SSI), is given below
Norms for Definition of SSI in India
Maximum Limit of Investment in plant and machinery in INR m
Year SSI Ancillary
Source: Ministry of SSI, Govt. of India
INR 10 m =
US $ 227,000

84. Contribution Of SME’s Across Diverse Economies

85. Technology & SSI To say it in Sam Pitroda’s words
“ Technology is for problem solving at personal, community and national levels
It is about doing things differently
It is about change in mindset, processes, products and preferences
Technology is about opportunities and experiences”
This is where the SSI is creating a successful niche for itself.
Technology is empowering people at all levels cutting across sectors
This has helped India graduate from being a promising economy to one of the
fastest growing economies

86. SSI Dominant Sectors In India
Textiles, Knitwear, Garments, Woolen and Hosiery
Leather and Leather products including footwear and garments
Food Processing
Drugs, Pharmaceuticals and Biotech
Auto parts and components
Chemicals, Dyes and intermediaries
Hand Tools
Electronic Industry particularly relating to design and measuring
Glass and Ceramic items including tiles
Information Technology and ITES
Rubber and Plastic Products, Parts & Components
Bicycle and Bicycle parts
Foundries – Ferrous and Cast Iron
Lubricant Manufacturing
Gems and Jewelry
Paper and Paper products, Corrugated Boxes

87. SSI Enablers - CLUSTERS
350 SSI and 2,000 artisans clusters
Panipat (Haryana) accounts for 75 % of the total blankets produced in India
Tirupur (Tamilnadu) contributes 80 % of the country’s hosiery exports
Agra (Uttar Pradesh) produces 150,000 shoes per day valued at US $ 1.3 m
Ludhiana (Punjab) produces 95 % of the country’s woolen knitwear, 85 per cent of country’s sewing machines and 60 per cent of bicycle and bicycle parts

88. SUPPORT FOR SSI Dedicated Ministry and allied organisations offer
Policy Support - Reservation, Priority Sector Lending, SEZ, Labor
Institutional support - Through testing centres, tool rooms, entrepreneurship development institutes, training, warehousing
Partnership support - Sub-contracting, ancillarisation & vendor development
Marketing Support - Through Trading Houses, Subsidizing the participation at international Trade Fairs, sales promotion and business travel

89. Additional Government Initiatives
Credit Guarantee Fund Trust Scheme
Collateral free loans of lenders to SSIs up to US $ 58,000
Payment to SSI suppliers should be made within 120 days
Reimbursement scheme in respect of ISO 9000 Quality Certification
Instituting marketing development assistance scheme

90. POLICY FRAMEWORK: Important Features
Reservation of items for exclusive purchase from SSI
358 items reserved for preferential purchase from SSI
Price preference up to 15 % on Government purchase
Development of Industrial Estates In selected towns
Technology : Adoption of new technology
Technology up gradation of existing units

91. Networking of SSI for Globalization
The promotion of inter-firm linkages
Use of Internet: Web Portals like eBay have opened a
new avenue, which the SSI are using as a tool, for marketing
The increasing presence of Multinational corporations have
opened new opportunities for subcontracting

92. SSI Sector Facilitating Institutions
Technology Support
NSIC, SIDO, SISIs,RTCs,PPDCs, TBSE
Funding Institutions Banks, SIDBI, SFCs, SIDCs, NSIC
Technical Training SIDO, SISIs, EDIs, TCOs , PPDCs, DICss, CFTIs
SSI Sector
Industrial Infrastructure SIDCs, SSIDCs, HUDCO
Marketing SIDO, NSIC,SSIDCs, EPCs
Entrepreneurship Development
SIDO, EDI, NIESBUD, SISIs
Specialized Institutions

93. Contribution Of SSI In India
95% of Industrial Units
> 8,000 Products
35% of National
Exports
SSI
Over 11 m
Units
An Engine of Growth
7% of GDP
Over 27 m
Employed

94. Growing Competitiveness of SSI
Year
Total
SSI Units (million)
Registered SSI Units (million)
Unregistered SSI Units
(million)
Employment (million)
Employment per Unit
Exports
US $ (billion)
9.3
1.2
8.1 22
2.4 11
1.5
9.5 26 20
(P) 12 2 10 28
2.3 24
Source: Ministry of SSI
The Average Export per unit is US $ 2,000

95. Growing Productivity & Quality Controls
Year
Average Capital
US $
Employment Per Unit
Production
2,100
6.3
17,000
3,700
3.6
71,000
Source: Second Census & Sample Survey of by DC(SSI)
50 % of the total number of ISO 9001 / certified units are from the SSI Sector

96. WINNING ATTITUDE

97. It Is All About Attitude - Management
  Differentiating themselves through the products and services they provide
Standing out by creating special interfaces with their customers and building
unique ways by which they can be held accountable by them
Building a very strong quality story
Benchmarking innovations against well set, globally accepted standards and
aim for targets, creating an environment and culture of innovation within the
organization
Developing systems to nurture innovation making full use of the availability of
information and by rightful dissemination of knowledge to foster goal driven
innovation
Building efficient processes to cut time - to- market
Providing opportunities to their people to do roles that go beyond their
existing work profiles
Providing continuing education

98. It Is All About Attitude – Business Person
Need to hone their skills
More adaptive thinking
Greater entrepreneurial drive to find new horizons of growth with a competitive
spirit
Foresight with a fierce unrelenting passion to execute and act today to improve the
future
Bring change more aggressively and lead the organization to implement
sustainable changes
Energizing their team and inspiring them for excellent team performance
Delegating authority to allow people to perform

99. It Is All About Attitude – Business Person
Ability to reach out to a wide international network for ideas and problem
solving
Understanding on how things get decided and done
Using customized strategies to influence specific stakeholders
Executive maturity and emotional wisdom to respond to others and
embody the aspirations of ones organization
Inner strength to do the right thing at the right time
Courageous dedication to super ordinate goals, doing what is right and
what will make India great
To keep learning and be abreast of new technology

100. Acknow ledgement PHDCCI – PHD Chamber of Commerce and Industry
CII – Confederation of Indian Industry
FICCI – Federation of Indian Chamber of Commerce and Industry
Assocham – Associated Chamber of Commerce and Industry of India
IGCC – Indo German Chamber of Commerce
IACC – Indo American Chamber of Commerce
ICRIER – Indian Council for Research in International Economic Relations
NASSCOM – National Association of Software and Service Companies
USCAN – Uniting Services Consulting Advocacy and Networking
Paharpur Business Centre – The International Division

101. THANK YOU