Jesus Perez Molina kyung Soo Kim
Overview Economy Analysis GDP Infraestructure Business Climate Mains industries and products Exports/Imports Trading partners Invesment Analysis SWOT Conclusion
Nationality: Republic of India Population: billions Ethnic group: Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% Size: 3,287,590 sq km Major Cities: Kolkata, Delhi, Mumbai, Bangalore Religion: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1%
Scenario Confidence More than 300 of the Fortune 500 are in India 2nd fastest growing major economy in the World: 9.2% Growth by domestic demand
GDP (official exchange rate): $1.099 trillion GDP - per capita: $2,700 Origin of GDP
Challenges in Infrastructures Transportation Vast Investment in Railway Extension and Modernization, Vast Investment in Railway Extension and Modernization, Ongoing Enlargement of Anchorage Facility for Hub Port Ongoing Enlargement of Anchorage Facility for Hub PortElectricity Present Electricity Supply (44%) is to be Provided the Entire Households within 5 Years Present Electricity Supply (44%) is to be Provided the Entire Households within 5 Years Telecommunication & IT Ongoing Intensive Development of S/W Technology Complex in the Main Cities like Bangalore Ongoing Intensive Development of S/W Technology Complex in the Main Cities like Bangalore Transportation Vast Investment in Railway Extension and Modernization, Vast Investment in Railway Extension and Modernization, Ongoing Enlargement of Anchorage Facility for Hub Port Ongoing Enlargement of Anchorage Facility for Hub PortElectricity Present Electricity Supply (44%) is to be Provided the Entire Households within 5 Years Present Electricity Supply (44%) is to be Provided the Entire Households within 5 Years Telecommunication & IT Ongoing Intensive Development of S/W Technology Complex in the Main Cities like Bangalore Ongoing Intensive Development of S/W Technology Complex in the Main Cities like Bangalore Infrastructure
Enormous Market - Population: 1.1 Bn / Middle Class: 270 Mn Abundant Natural Resources Abundant Work Force and Low Wages Superiority in Technology Fields and English Skills Enormous Market - Population: 1.1 Bn / Middle Class: 270 Mn Abundant Natural Resources Abundant Work Force and Low Wages Superiority in Technology Fields and English Skills Business Climate
Companies entered SEZ (Special Economic Zone) - Customs-free when Purchasing Raw Materials - No Corporation Tax (Initial 5 yrs: 100%, Next 5 yrs: 50%) 100% EOU (Export Oriented Units) - Approved to be EOU, the company gets benefits to SEZ State Government Regulation - Tax Reduction, sale of newly developed Land, etc. Companies entered SEZ (Special Economic Zone) - Customs-free when Purchasing Raw Materials - No Corporation Tax (Initial 5 yrs: 100%, Next 5 yrs: 50%) 100% EOU (Export Oriented Units) - Approved to be EOU, the company gets benefits to SEZ State Government Regulation - Tax Reduction, sale of newly developed Land, etc. Business Climate
Factory Workers : $75 (High School Graduates) Office Workers : $22 (Univ. Graduates) Engineers : $440 (Univ. Graduates) Factory Workers : $75 (High School Graduates) Office Workers : $22 (Univ. Graduates) Engineers : $440 (Univ. Graduates) Business Climate
Industries: Textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software. Products: rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish.
Petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures Crude oil, machinery, gems, fertilizer, chemicals
Exports - partners: US 15.1%, UAE 8.8%, China 8.4%, UK 4.3% Imports – partners: China 10.5%, US 7.8%, Germany 4.5%, Singapore 4.5% Imports – commodities: crude oil, machinery, gems, fertilizer, chemicals Exports – commodities: petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures
SWOT ◦ Strenght: 12th largest economy at market exchange 3th largest in purchasing power Qualificated Labour force (Tech) Least corrupt state: Kerala ◦ Weaknesses: High levels of poverty, illiteracy, malnutrition,etc Low Economy Development Power outages common Traffic Congestion
SWOT ◦ Opportunities: Economic Reforms Medium age 25 ◦ Threats: Political Debate about privatisation (Comunist Party Kerala) Federal Government breakdown (Alliance) Extremist Increasing (Terrorist Organizations) Pakistan Nuclear Debate Risk
Growing economy Liberalisation & Deregulation Skilled, cheap labor High Tax rate Cash inflow Advantage Political instability Transportation Red tapism Corruption Disadvantage
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