“Limitations live only in our

minds, but if we use our

imagination, our possibilities

NEP Presentation 1
 Can India make it to
the league of economic
superpowers
in the next 25 years?
- For the motion

NEP Presentation 2
 Overview

•Goldman Sach’s Report

•GDP

•Industrial sector

•Services sector

•Agricultural sector

•Technology sector

•Conclusion

NEP Presentation 3
 Goldman Sachs Report –
“Dreaming with BRICs: The

•India's GDP will reach $ 1 trillion by 2011,

$ 2 trillion by 2020,
$ 3 trillion by 2025,
$ 6 trillion by 2032,
$ 10 trillion by 2038 &
$ 27 trillion by 2050,
becoming the 3rd largest economy after USA and China.

•In terms of GDP, India will overtake Italy by the year 2016, France by
2019, UK by 2022, Germany by 2023, and Japan by 2032

NEP Presentation 4
 Contd…

•The Asian Development Bank reckons that India will grow at 11.5 per
cent (average) over the next 30 years

•By 2033, India’s GDP will be $35 trillion

•By 2033, India would be the second largest economy in the world, after
China. India’s population would have risen to 1.7 billion people, but still,
the per capita income would be $20,000

NEP Presentation 5
 Gross Domestic Product

•Comprises of 3 sectors:

iii. Service 54.7%

v. Industrial 26.8%

vii. Agriculture 18.5%

NEP Presentation 6
Patterns of Growth

NEP Presentation 7
 India’s Equity Markets

•One of India’s advantages over other countries to thrive

to become an economic super power is the strength of India’s
equity markets and the world class trading and regulatory
infrastructure the country has developed over the past decade

______________________________________________________________
“Where there is a will, there is aNEP
way.”
Presentation 8
 Industry: Turning minerals
potential into Goldmine
•Highly endowed with vast mineral resources

•World’s largest producer of mica, iron ore, bauxite

•Heritage in mineral and mining processing

•Backbone of industrial sector

NEP Presentation 9
Turning new Automobile Global
industry
•2nd largest two wheeler market in the world

•4th largest commercial vehicle market in the world

•11th largest passenger car market in the world

•To become world’s 3rd largest automobile industry by 2030

NEP Presentation 10
 Manufacturing Sector
•Preferred destination for manufacturing & sourcing for global markets

•Access to foreign markets

•New technologies, management expertise

•Low labor costs

NEP Presentation 11
 Scaling new heights in
Construction
•Abundance of quality manpower
sector
•Indian cement industry ranked second in the world

NEP Presentation 12
Evolution of Oil & Gas Industry
•15% contribution to the country’s GDP

•Export of petroleum products touched US$ 20.03 billion in 2007

•Emerging as a global hub for oil refining

•Largest gas discovery in the world at K-G basin, Andhra Pradesh

NEP Presentation 13
Role of changing Power sector
in Economic Development
•Private sector participation
•De-licensing of power generation
•Electricity generation and growth potential increasing
•Indo-US nuclear deal

NEP Presentation 14
 Changing profile of Indian
Textile
•Technological up-gradation
Industry
•Textiles and apparel trade

•Investments in textile sector

•Government initiatives

NEP Presentation 15
 Services: India on Export of
Manufactured goods
•India’s share stand at US $40 billion
•Future target is estimated to be US $300 billion by 2015
•Labor intensive goods (toys, apparel)
•Skill intensive industries (computer hardware)

Cut Barriers to boost Exports

•Reducing indirect taxes and import duties
•Provision of well functioning ports with uninterrupted power supply
•Establishment of SEZ for balanced production of export goods
•Acceleration of labor reforms

NEP Presentation 16
 Role of Household sector
•Emergence of new Indian middle class based on study by Mckinsey
Global Institute

•Increase in the middle class population from 50 Million to 583 Million

•Real compound annual growth of 7.3%in GDP

•Rise in position from 12th largest consumer market to 5th largest

consumer market by 2025

•Acceleration in annual rural income growth from 2.8% to 3.6%

NEP Presentation 17
 Scope of Hospitality sector
•In 2003-04, hospitality industry contributed 2% of GDP

•It is projected to grow at a rate of 8.8%between 2007-16,which would

place India as 2nd fastest growing tourism market

•Travel & tourism is the 2nd highest foreign exchange earner

•Tourism sector accounts for nearly 5.3%of GDP and 5.4% of total
employment

NEP Presentation 18
 Health Care sector

•Indian health care sector has been growing at a fast pace

•Patients visiting India has increased over 10 fold

•Medical tourism has the potential to grow to US$ 2 Billion from the
present US$ 350 Million

•Health care spending in the country will double over the next 10 years

NEP Presentation 19
 Monetary & Fiscal Policy for
Growth
•Controls & regulates the flow of money during inflation/deflation by
adjusting interest rates

•Manage quantum of money in circulation through buy/sell of credit

instruments e.g. bonds, foreign currencies or commodities

•Fiscal policy entails measures by Government for revenue/expense to

attain economic stability

NEP Presentation 20
 Research & Development

•R&D relates with knowledge creation

•Brings profit to the company
•Important part of any organization
•India now spends more than 4000 crore annually

Education

•Literacy rate is increasing at a rate of 1.5% per year

•Rate of literacy is higher in villages
•Govt. has provided full policy support

NEP Presentation 21
 Indian Infrastructure Union
Road: Motorway network 3.3 m km- 1448629 Km
Goods transport vehicles 1,600,000
Airports: International 5 / National 90
Ports: Large 11 / Small & medium 139 / Merchant
fleet 443 ships / Goods traveling through ports
166,610,000 tons
Postal Services: Post offices (2001) 155,000
Energy: Production capacity (1991-92) 78,000 Mw
Generated(2000) 547.12 Billion kWh
Railways: 62,486 Km / Stations 7000
Produce transported (1992-93) 3.5 Crore tons

•The MRTP was passed to encourage large industry inroad sector

•Calcutta’s Howrah Bridge is the world’s busiest
•5-year tax exemptions for new energy projects & 16% return on equity

NEP Presentation 22
 Outsourcing
•About 4/5th of the world’s largest companies farm out work to India,
where every year 1 Million English speakers & 1.5 Million University
graduates join its low-cost workforce

•As of March 2005, there were nearly 350,000 people employed in 410
outsourcing or back office firms in India. Estimates show the figure will
touch 470,000 by the end of March this year

_______________________________________________________________
It is like a story… a few centuries ago India was world’s wealthiest
nation… No POVERTY, PLENTY TO EAT, TRADE WAS BOOMING… & then
came robbers – Mughals, Europeans & British. They plucked bare the bird
of gold, BUT India will fly again…
NEP Presentation 23
 Agriculture

•Agriculture continues to be the biggest employer in India, with 54% of

the population engaged in farming

Ways to improve Agriculture

•43 % of Indian land is used in agriculture. It contributes 18% of the GDP

•Double the rate of growth of irrigated area

•Reclaim degraded land and focusing on soil quality
•Water management, rain water harvesting & watershed development
•Bridge the knowledge gap through effective extension services
•Diversify into high value outputs-fruits/vegetables/flowers/herbs/spices/
medicinal plants/bamboo/bio-diesel ensuring food security
•Provide easy access to credit at affordable rates

NEP Presentation 24
 PURA Mission

Providing connectivity's to village complexes is an urgent need to bridge

the urban-rural divide, generate employment and enhance rural
prosperity. The integrated method which will bring prosperity to rural
India is through PURA ( Providing Urban Amenities to Rural Area’s)
Objectives
Stem rural-urban migration Increase purchasing power
Improve literacy & healthcare Capacity building
Private public partnership Priority funding
Bridge rural-urban divide Balance socio economic divide
Expand consumer base Employment generation

______________________________________________________________
“The integrated investment in rural infrastructure through Bharat Nirman
will unlock the growth potential of rural India and Provide Urban
Amenities to Rural Areas PURA.”
- Dr. A.P.J. Abdul Kalaam
NEP Presentation 25
 PURA MODELS
•Govt. PURA initiatives: Kerala coastal PURA, Chhattisgarh PURA
•Institutional PURA (Operational PURA: Periyar PURA, Loni PURA,
Chitrakoot PURA
•PURA in location specific industries
•Rural tourism based PURA: Rajasthan, Sikkim
•Bamboo based PURA: Manipur, Nagaland & Mizoram
•Jatropha – Bio-fuel based PURA (5 states)
•Handloom & handicraft based PURA
•Coastal PURA
•HILL PURA
•Terrain PURA
•Desert PURA (Rajasthan)

NEP Presentation 26
“India, China to become Super
Powers in two decades.”

NEP Presentation 27
 Technology: Science &
Technology in India

•Focus on areas of nuclear science, electronics & defense

•IT is now like second skin to sectors of agriculture, industries & services

•S&T infrastructure rose from Rs. 10 million in 1947 to over Rs. 30 billion

•Over 85% of the funds for S&T come directly or indirectly from the Govt.

•S&T infrastructure in the country accounts for more than 1% of the GNP

•India has the 3rd largest scientific & technical manpower in the world:
xii. Over 162 technical universities
xiii. The CSIR runs more than 40NEP research
Presentation
labs 28
xiv. India in top 5 nations in the field of Missile Launch Technology
 Science & Technology Policies
In India

•India's investment in R&D is increasing rapidly

•The Govt. accounts for 85–90% of the country's R&D. Private sector
investments are catching up

•It is in the interest of other countries to maintain good relations with a

Super Power to-be, like India:

vii. The USA , Western Europe, the Soviet Union & Russia

ix. Post independence, India had strong footing with UK

xi. Today, US gains from a relationship with India

_______________________________________________________________
“The only way to predict the future is to have power to shape the future.”
NEP Presentation 29
 India’s presence in the USA

Over 3.22 Million 34% Microsoft employees

38% doctors 28% IBM employees
12% scientists, 36% NASA 17% Xerox employees

•Top 100 Indian owner US companies generate more than $2.2 Billion
providing jobs to over 21000 people

More of India on the soil of the current super power!

•Of the 1.5 Million Indians living in the USA, 1/5th in the Silicon valley
•35% of Silicon valley startups are by Indians
•Indian students are the largest among foreign students in USA
•60-70% of all mid-size motels areNEPowned & operated by Indians
Presentation 30
 We there & They here

US H1-B Visa applicants by country of origin:

• India – 44%
• China – 9%, Britain – 5%, Philippines – 3%, Canada – 3%

Top 5 American employers in India:

ix. GE – 17800 employees iv. AMEX – 4000 employees

x. HP – 11000 employees v. Dell – 3800 employees
xi. IBM – 6000 employees

NEP Presentation 31
 India Rising

“India is the cradle of the human race, the mother of history, the
grandmother of legend, and the great grandmother of tradition. Most
valuable and the most instructive materials in the history of man are
treasured up in India only.”
- Mark Twain

•Largest democracy in the world

•4th largest economy in the world

•Youngest work force comprising over 54% less than 25 years old
NEP Presentation 32
 We are already there

"One of the soundest rules to remember

when making forecasts
in the field of economics
is that whatever is to happen is happening already."
- Sylvia Porter

NEP Presentation 33
The Bharti Advertisement

NEP Presentation 34
THANK YOU…

NEP Presentation 35