EVS Indian Economy Opportunities 1

8/8/2019 EVS Indian Economy Opportunities 1

1/41

The Indian scenarioThe Indian scenario

ByByPrem BehlPrem Behl

ChairmanChairman

Exhibitions India GroupExhibitions India Group


2/41

1.1. The Indian Economy: An OverviewThe Indian Economy: An Overview

2.2. History of the Indian exhibitions industryHistory of the Indian exhibitions industry

3.3. Exhibitions Venues in IndiaExhibitions Venues in India

4.4. Doing business in IndiaDoing business in India

IndexIndex


3/41

The Indian Economy: An OverviewThe Indian Economy: An Overview1.1.


4/41

The Indian Economy: An OverviewThe Indian Economy: An Overview

20

13 7

36

70

1950s 1960s 1970s 1980s 1990s

The fastest rise in incomes.The fastest rise in incomes.

% rise in per capita income


5/41


The biggest drop in inflationThe biggest drop in inflation

% decrease in inflation

9.5

9.1

7.4

4

1970s 1980s 1990s 2000-4


6/41


Have prompted a spending boomHave prompted a spending boom

% growth in consumption expenditure

5.9

9.5

6.5

11.4

2000-01 2001-02 2002-03 2003-04


7/41


as well as the highest level of savingsas well as the highest level of savings

13.8

19.321.9

26.6

1980-81 1990-91 2000-01 2003-04

Household savings as % of GDP


8/41


The economy is riding highThe economy is riding high

% annual growth in GDP

4.4

8.5

6.9 7*

2002-03 2003-04 2004-05 2005-06


9/41

India is theIndia is the 44thth largestlargesteconomy in the world as measured byeconomy in the world as measured by

purchasing powerpurchasing power

Between 1980 and 2003, Indias economy grew at an averageBetween 1980 and 2003, Indias economy grew at an average

rate ofrate of5.7%5.7%

During the same period, Indias real income per headDuring the same period, Indias real income per headgrew bygrew by

125%125%

Dr. Manmohan Singh, Finance Minister in 1991 and architect ofDr. Manmohan Singh, Finance Minister in 1991 and architect of

IndiasIndias economic reformseconomic reforms, is the current Prime Minister, is the current Prime Minister


Additional economic indicators:Additional economic indicators:


10/41

India has aIndia has a consumerconsumerbasebase of 1.2 billion people, andof 1.2 billion people, and

The youngest population of the world henceThe youngest population of the world hencesustainable,sustainable, longlong

termterm growth is assuredgrowth is assured

Modern (organised) retail converging with theModern (organised) retail converging with the consumption boomconsumption boom

will open upwill open up manymany opportunitiesopportunities for small and mid-size consumerfor small and mid-size consumer

companiescompanies

With upper income and rich classes growing rapidly and deprivedWith upper income and rich classes growing rapidly and deprived

classes actually falling, Indiasclasses actually falling, Indias incomeincome demographicsdemographics will actuallywill actually

bebe unrecognizableunrecognizable by the end of the decadeby the end of the decade



11/41

Home ownership is on the rise withHome ownership is on the rise with 55 MillionMillion homes added every year,homes added every year,

approximatelyapproximately 1.51.5 MillionMillion new homes added in urban areasnew homes added in urban areas

Mobile telephone subscriber base has grown from 0.3 Million in 1996Mobile telephone subscriber base has grown from 0.3 Million in 1996

to over 55 Million currently; expected to grow toto over 55 Million currently; expected to grow to 200 Million200 Million by 2008by 2008

13 Million credit card holders currently & growing at13 Million credit card holders currently & growing at40%40% p.a.p.a.

Passenger car sales of USD 5 Billion in 2004,Passenger car sales of USD 5 Billion in 2004, more thanmore than twicetwice thethe

level of sales five years earlierlevel of sales five years earlier



12/41


0

10

20

30

40

50

60

70

Percent

0

1

2

3

4

5

US

$

Thousand

Consumption share of GDP Population Dependency RatioPer Capital Consumption

Population Dependency Ratio = Ratio of Pop aged 65 years or over to the population aged 15-64 (Source: Morgan Stanley)

Growth at the margin

will close the gap

between Indias per

capita consumption

and Chinas

Private consumption currently accounts for 64% of Indian GDP Private consumption currently accounts for 64% of Indian GDP higher than Europe(58%), Japan (55%) and China (42%)higher than Europe(58%), Japan (55%) and China (42%)

Emerging consumerism from one of the worldsEmerging consumerism from one of the worlds youngest populationyoungest population

China India


13/41


36

30

37 3839 39

44 44

USA China Russia UK

24

30

35

40

45

50

Medianagein

years

24

India

31

2000 2025

Indians are Younger than the WorldIndians are Younger than the World


14/41


India in 2050India in 2050

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,00045,000

50,000

China US In

diaJapan

Brazil

Russia UK

Germ

any

Fran

ce Italy

US2

003

$

billions

0

1

2

3

4

5

6

7

8

2005-10 2015-20 2025-30 2035-40 2045-50

5-Ye

arPeriodAveragePercentPer

Annum

Brazil

China

India

Russia

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


15/41


Analysts View of the Indian EconomyAnalysts View of the Indian Economy

India is on the cusp ofsomething big.[I] am as enthusiastic about India

as I was about China in the late 1990s. Whatexcitesme mostis the

potential for an increasinglypowerfulinternal 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 agrowing working-age

population over the next 40 years.

IMF, World Economic Outlook, September 2005


16/41

History of the Indian exhibitions industryHistory of the Indian exhibitions industry2.2.


17/41


18/41

History of the Indian exhibitions industryHistory of the Indian exhibitions industry

Soon after independence, in the lateSoon after independence, in the late

1940s, the Government set up the1940s, the Government set up the

Directorate of Exhibitions under theDirectorate of Exhibitions under the

Ministry of CommerceMinistry of Commerce

An exhibition ground in New DelhiAn exhibition ground in New Delhi

was developed to host the Railwayswas developed to host the Railways

exhibition in 1952 to mark theexhibition in 1952 to mark thecentenary of railways in Indiacentenary of railways in India


19/41


19701970

The Trade Development Authority (TDA) was set up in 1970 underThe Trade Development Authority (TDA) was set up in 1970 under

the Ministry of Commercethe Ministry of Commerce

19721972 The fair ground was christenedThe fair ground was christened

Pragati MaidanPragati Maidan

Pragati Maidan hosted Asia72:Pragati Maidan hosted Asia72:

third Asian International Trade Fairthird Asian International Trade Faircoinciding with Indias Silver Jubileecoinciding with Indias Silver Jubilee

Year of IndependenceYear of Independence


20/41


19771977

The Trade Fair Authority of India (TFAI) is formed by an Act ofThe Trade Fair Authority of India (TFAI) is formed by an Act of

Parliament with the aim of organising trade showsParliament with the aim of organising trade shows

19921992

The India Trade Promotion Organisation (ITPO) is formed byThe India Trade Promotion Organisation (ITPO) is formed by

merging the Trade Development Authority (TDA) with the Trademerging the Trade Development Authority (TDA) with the Trade

Fair Authority of India (TFAI)Fair Authority of India (TFAI)


21/41


22/41

Exhibitions VenuesExhibitions Venues

in Indiain India

Exhibition VenuesInternational Airports

Exhibition VenuesExhibition Venues

International AirportsInternational Airports


23/41

Exhibitions Venues in IndiaExhibitions Venues in India

New DelhiNew Delhi

NameName AreaArea(in sqm.)(in sqm.)

Outdoor AreaOutdoor Area (in(insqm.)sqm.)

Additional facilitiesAdditional facilities

Pragati MaidanPragati Maidan

Owned and managed by the IndianOwned and managed by the IndianTrade Promotion Organisation (ITPO)Trade Promotion Organisation (ITPO)

60,00060,000 10,00010,000 2 Conference Halls2 Conference Halls

(capacity 200 each), 4(capacity 200 each), 4

theaterstheaters


24/41


New DelhiNew Delhi

Pragati Maidan is a massive venue of 149 acres in the heart of IndiasPragati Maidan is a massive venue of 149 acres in the heart of Indias

capital citycapital city

The venues 16 exhibition halls and other facilities are ageing and farThe venues 16 exhibition halls and other facilities are ageing and far

from being world classfrom being world class

The ITPO has proposed to completely modernize and revamp theThe ITPO has proposed to completely modernize and revamp the

venue by 2010 (subject to approval by the Commerce Ministry)venue by 2010 (subject to approval by the Commerce Ministry)
http://www.epch.com/ihgf/files/picture_gallery.htmlhttp://www.epch.com/ihgf/files/picture_gallery.htmlhttp://www.epch.com/ihgf/files/picture_gallery.html


25/41


26/41


Greater NoidaGreater Noida

NameName AreaArea (in(insqm.)sqm.)


India Expo CenterIndia Expo Center

Owned by the Export PromotionOwned by the Export Promotion

Council for Handicrafts (EPCH)Council for Handicrafts (EPCH)

7,5007,500 11stst phase of construction complete.phase of construction complete.

Another 20,000 sqm., as well as a 5Another 20,000 sqm., as well as a 5

star hotel, to be built by 2008star hotel, to be built by 2008


27/41


MumbaiMumbaiNameName AreaArea

(in sqm.)(in sqm.)

Outdoor AreaOutdoor Area(in sqm.)(in sqm.)


Expo CenterExpo Center OwnedOwned

by the World Trade Centerby the World Trade Center2,5002,500 n/an/a n/an/a

Bandra Kurla ComplexBandra Kurla ComplexOwned by the Maharashtra Dev. Co.Owned by the Maharashtra Dev. Co.

n/an/a 50,00050,000 Organisers typically set up airOrganisers typically set up airconditioned hangarsconditioned hangars

Bombay Exhibition CenterBombay Exhibition Center

Owned by Nesco Ltd.Owned by Nesco Ltd.

60,00060,000 n/an/a Non air-conditioned hallsNon air-conditioned halls


28/41


ChennaiChennai


Outdoor AreaOutdoor Area(in sqm.)(in sqm.)


Chennai Trade CenterChennai Trade Center

Owned by the Indian TradeOwned by the Indian TradePromotion Organisation (ITPO)Promotion Organisation (ITPO)

and the Govt. of Tamil Naduand the Govt. of Tamil Nadu

6,8006,800 3,0003,000 Opened in 2001,Opened in 2001,

11stst

phase completephase completeConference Room (CapacityConference Room (Capacity

200 people) 200 people)


29/41


BangaloreBangalore




KTPO Exhibition ComplexKTPO Exhibition Complex

Owned by the ITPO and theOwned by the ITPO and theKarnataka Industrial AreaKarnataka Industrial Area

Development Board (KIADB)Development Board (KIADB)

5,5005,500 40004000 Opened in 2004,Opened in 2004,

11stst

phase completephase completeConference Room (capacityConference Room (capacity

200) 200)


30/41


HyderabadHyderabad




Hitex Exhibition CenterHitex Exhibition Center

Jointly owned by the Govt. of AndhraJointly owned by the Govt. of AndhraPradesh and the private sectorPradesh and the private sector

10,00010,000 30,00030,000 Opened in 2003Opened in 2003

11stst

phase completephase complete


31/41

Opportunities AplentyOpportunities Aplenty

TheThe needneedfor quality trade shows and venues is apparentfor quality trade shows and venues is apparent

If India and China are Asias emerging giants, then India is fallingIf India and China are Asias emerging giants, then India is falling

terribly behindterribly behindin its trade fair developmentin its trade fair development

China has approximatelyChina has approximately 150 exhibition centers150 exhibition centers and 3 millionand 3 million

square meters of exhibition spacesquare meters of exhibition space

India, according to our calculations, hasIndia, according to our calculations, has 6 dedicated exhibition6 dedicated exhibition

venues and 90,000 square meters of indoor exhibition space thisvenues and 90,000 square meters of indoor exhibition space this

is estimated to increase by 40% in 3 yearsis estimated to increase by 40% in 3 years


32/41

Doing business in IndiaDoing business in India4.4.


33/41

Doing business in IndiaDoing business in India

There exists a myth that doing business in India is difficult.There exists a myth that doing business in India is difficult.

With theWith the right Indian partnersright Indian partners, this is not at all the case, this is not at all the case

United Nations World Investment Report 2005United Nations World Investment Report 2005

A TNC (transnational corporations) survey has ranked IndiaA TNC (transnational corporations) survey has ranked India

as theas the third mostthird mostattractive investment destinationattractive investment destination

In the same report, a UN expert opinion group ranked India asIn the same report, a UN expert opinion group ranked India asthethesecond mostsecond mostattractive investment destinationattractive investment destination


34/41


Indian Trade Promotion OrganisationIndian Trade Promotion Organisation(ITPO)(ITPO)

In order to organise a trade show in India, an organiser must gainIn order to organise a trade show in India, an organiser must gain

approval from the ITPOapproval from the ITPO

For leading trade show organisers, this is aFor leading trade show organisers, this is astraight forwardstraight forwardandand

simple processsimple process

This approval consists of a Customs Notification allowing theThis approval consists of a Customs Notification allowing the

duty free temporaryduty free temporary import of goods to be displayedimport of goods to be displayed


35/41


CustomsCustoms

In line with international practices, there exists a wellIn line with international practices, there exists a well

established systemestablished system allowing foreign participants the facility ofallowing foreign participants the facility of

duty free temporary imports for exhibitionsduty free temporary imports for exhibitions

India is a signatory to the ATA convention.India is a signatory to the ATA convention.ATA CarnetsATA Carnets areare

accepted at all major exhibition destinations in Indiaaccepted at all major exhibition destinations in India


36/41

Freight HandlingFreight Handling

There are professional and experienced exhibition logisticsThere are professional and experienced exhibition logistics

companies that provide acompanies that provide afull rangefull range of servicesof services

The scope of services range fromThe scope of services range from customs clearancecustoms clearance toto on siteon site

handlinghandlingwith modern mechanical handling equipment and awith modern mechanical handling equipment and a

skilled work forceskilled work force

These logistic service providers have an extensiveThese logistic service providers have an extensive internationalinternationalnetworknetwork



37/41


The following is a brief list of leading freight forwardersThe following is a brief list of leading freight forwarders

RE Rogers India Pvt. Ltd.RE Rogers India Pvt. Ltd.

Translink Express (I) Pvt. Ltd.Translink Express (I) Pvt. Ltd.

Schenker India Pvt. Ltd.Schenker India Pvt. Ltd.

Orient Marine Lines Pvt. Ltd.Orient Marine Lines Pvt. Ltd.

The following is a brief list of leading stand constructersThe following is a brief list of leading stand constructers

Pavilions & Interiors India Pvt. Ltd.Pavilions & Interiors India Pvt. Ltd.

PICO International Exhibitions Pvt. Ltd.PICO International Exhibitions Pvt. Ltd. Meroform (India) Pvt. Ltd.Meroform (India) Pvt. Ltd.

Kingsmen Fairtech International Pvt. Ltd.Kingsmen Fairtech International Pvt. Ltd.


38/41

Exchange ControlExchange Control

All investments can be on aAll investments can be on a repatriationrepatriation basisbasis

Original investment, profits and dividends can be freelyOriginal investment, profits and dividends can be freelyrepatriatedrepatriated

Foreign investors canForeign investors can acquire immovable propertyacquire immovable property incidental to orincidental to or

required for their activityrequired for their activity

(Source: Ministry of Commerce & Industry, Government of India)(Source: Ministry of Commerce & Industry, Government of India)


Reforms in Exchange Control & TaxationReforms in Exchange Control & Taxation


39/41

Reforms in Exchange Control & TaxationReforms in Exchange Control & TaxationTaxationTaxation

Companies incorporated in India are treated as Indian companiesCompanies incorporated in India are treated as Indian companiesforfortaxationtaxation

There exists a Double Taxation Avoidance AgreementThere exists a Double Taxation Avoidance Agreement withwith 6565countriescountries

Peak Custom duty has beenPeak Custom duty has been reducedreducedto 15%to 15%

Corporate Tax has beenCorporate Tax has been reducedreducedto 30%to 30%

Tariff to be aligned withTariff to be aligned withASEAN levelsASEAN levels Value Added TaxValue Added Tax introducedintroducedin some States from 1st April 2005in some States from 1st April 2005

Transparency in Tax Structure:Transparency in Tax Structure: Online/ ICTOnline/ ICTApplicationsApplications

(Source: Ministry of Commerce & Industry, Government of India)(Source: Ministry of Commerce & Industry, Government of India)



40/41

Thank YouThank You


41/41


EVS Indian Economy Opportunities 1

Documents

Transcript of EVS Indian Economy Opportunities 1