Incredible India
An overview of the market by Ken Hunt, OBE, UK Trade & Investment business adviser South Asia Unit.
Key points from a presentation delivered by Ken Hunt at Venturefest Yorkshire in February 2007
India today:
- One of the fastest growing world economies
- A market in transformation
- import licensing abolished
- opening up sectors for investment
- promising consumer market
- India is going global
- Stable political system
- Western business environment
- English widely used in commerce
The new India:
- There are 300 million people with consumer spending power
- Retails credit growth is at 40% per annum
- The number of shopping malls have increased from three to 300 in just five years
- There are seven million new mobile phone subscribers per month
- There are 1.3 million cars produced per year
- 111 power stations are to be built over the next five years
- 170 new aircraft are to be purchased over the next five years
- Over 100 Fortune 500 companies have Indian R&D centres
- India has three million graduates per year
- 150,000 software engineers work in Bangalore alone
Roads:
- India has a road network of 3.3 million km
- There are 18,000 km of highways being developed under the National Highway Development Programme
Labour comparisons:
- The annual average wage for a production worker in India is $1,900. In China the average wage for the same job is $2,300.
- The annual average wage for a HR manager in India is $15,100. The same job in China would come with an average wage of $32,000. (Source: FICCI Compilation)
India tomorrow:
- India is expected to be the world’s 3rd largest economy by 2032 (Source G: Sachs)
- India is expected to have a larger population than China
- India’s workforce (20-59 age group) will grow by around 263 million by 2050, while China’s will grow by 94 million and USA’s by 11 million
- India’s exports of automotive components are expected to increase 10 fold by 2015
Key sectors:
- Aerospace
- Agri-food
- Airports
- Automotive
- Biotech
- Business & consumer services
- Construction
- Creative & media
- Education & skills
- Engineering
- Environment
- Financial services
- Fire, police & security
- Healthcare & medical equipment
- Telecomms/ ICT
- Metallurgical process plant
- Mining
- Oil & Gas
- Pharmaceuticals
- Ports & logistics
- Power
- Sports & leisure
- Water & waste water