India 2020 Strengths

8/3/2019 India 2020 Strengths

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10,000 year old ancient civilization325 languages spoken 1,652 dialects18 official languages29 states, 5 union territories3.28 million sq. kilometers - Area7,516 kilometers - Coastline1.3 Billion population.

5600 dailies, 15000 weeklies and 20000 periodicals in 21languages with a combined circulation of 142 million.

GDP $576 Billion. (GDP rate 8%)

Parliamentary form of GovernmentWorlds largest democracy.Worlds 4th largest economy.

World-class recognition in IT, bio-technology and space.Largest English speaking nation in the world.3rd largest standing army force, over 1.5Million strong.2nd largest pool of scientists and engineers in the World.

(per capita numbers are lower because it is a continental country)


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INDIA

India never invaded any country in her last10,000 years of history.

India was the richest country on Earth until thetime of the British in the early 17th Century

Robert Clive s personal wealth amassed from the blunder of Bengal during 1750 s was estimated at around 401,102

It has been estimated that the total amount of treasure that the British looted fromIndia had already reached 1,000,000,000 (1Billion) by 1901.

Taking into consideration interest rates and inflation this would be worth close to$1,000,000,000,000 ($1Trillion) in real-terms today.


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India India invented the Number System.

Zero was invented by Aryabhatta. The place value system, the decimal

system was developed in India in 100BC.

Aryabhatta was the first to explainspherical shape, size ,diameter,rotation and correct speed of Earth

in 499 AD.

The World's first university wasestablished in Takshila in 700 BC.Students from all over the Worldstudied more than 60 subjects.

The University of Nalanda built inthe 4th century was one of thegreatest achievements of ancientIndia in the field of education .

Ayurveda is the earliest school of medicine known to humans. Charaka,the father of medicine consolidated

Ayurveda 2500 years ago.

Today Ayurveda is fast regaining itsrightful place in civilization.

Christopher Columbus was attractedIndia's wealth and was looking forroute to India when he discovered the

American continent by mistake.

In Siddhanta Siromani(Bhuvanakosam 6) BhaskaracharyaII described about gravity of earthabout 400 years before Sir IsaacNewton. He also had some clearnotions on differential calculus, andthe Theory of Continued Fraction .


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The Ancient Vedic HymnsRig Veda- Knowledge of Hymns, 10,859 verses

There is only one truth, only men describe it in different ways.

Yajur Veda - Knowledge of Liturgy, 3,988 verses Sama Veda - Knowledge of Classical Music, 1,549 verses Ayur Veda - Knowledge of Medicine, over 100,000 verses

Upanishads Jyotisha Astrology and Astronomy.

Kalpa Rituals and Legal matters.Siksha Phonetics.

Aitareya Creation of the Universe, Man and Evolution.Chandogya Reincarnation, Soul.

Kaushitaki Karma.Kena Austerity, Work, and Restraint.Dharnur Veda Science of Archery and War.

Mundaka Discipline, Faith and warning of Ignorance.Sulba Sutra Knowledge of Mathematics

Yoga Sutra - Knowledge of Meditation Kama Sutra- Knowled e of Love and Sex


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Sanskrit ( )

Sanskrit was the classical language of India, older than Hebrew and Latin

It is the oldest, most scientific, systematic language in the world, and may be considered the mother of

all languages.

It became the language of all educated people in India and in the countries that were influenced by

India.


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India Theory of Continued Fraction wasdiscovered by Bhaskaracharya II.

Indians discovered Arithmetic andGeometric progression . Arithmeticprogression is explained in Yajurveda.

Govindaswamin discovered Newton

Gauss Interpolation formula about1800 years before Newton.

Nilakanta discovered Newton sInfinite Geometric Progression convergent series.

Aryabhatta also propounded theHeliocentric theory of gravitation ,thus predating Copernicus by almostone thousand years .

Madhavacharya discovered Taylor series of Sine and Cosinefunction about 250 years before

Taylor.

Bhaskaracharya calculated thetime taken by the earth to orbitthe sun hundreds of years beforethe astronomer Smart. Timetaken by earth to orbit the sun:(5th century) 365.258756484days

Infinity was well known forancient Indians. BhaskaracharyaII in Beejaganitha(stanza-20) hasgiven clear explanation withexamples for infinity


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India The value of " pi" was firstcalculated by Boudhayana , andhe explained the concept of

what is known as thePythagorean Theorem. Hediscovered this in the 6thcentury long before theEuropean mathematicians. This

was validated by Britishscholars in 1999.

Algebra, trigonometry andcalculus came from India.Quadratic equations werepropounded by Sridharacharya in the 11thcentury.

Maharshi Sushruta is thefather of surgery. 2600 years agohe and health scientists of his

time conducted complicatedsurgeries like caesareans,cataract, artificial limbs,fractures, urinary stones andeven plastic surgery.

Usage of anaesthesia was wellknown in ancient India. Over125 surgical equipments wereused.

When many cultures were only nomadic forest dwellers over5000 years ago, Indiansestablished Harappan culture in

the Sindhu Valley Civilization.


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Future


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In India

we had an Italian born Catholic SoniaGandhi, leader of Congress Party of theruling coalition,

a Sikh (Manmohan Singh) Prime Minister,a Hindu president (Pratibha Devi Singh

Patil)

and several Christian and Muslim ChiefMinisters and Governors to lead a secular

diverse continental super state .

There is no other country with such

Secular Tolerance


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Goldman Sachs Report "Dreaming with BRICs: The path to

2050"

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, and$ 27 trillion by 2050,

becoming the 3rd

largest economy after USA and China .


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Dr Abdul Kalam, Former President of India,father of Indias space, missile and satellite programme and

author of India 2020 Vision.

I have three visions for India.

1.my first vision is that of FREEDOM.

I believe that India got its first vision of this in 1857, when we startedthe war of independence. It is this freedom that we must protect and

nurture and build on. If we are not free, no one will respect us.

2.My second vision for India is DEVELOPMENT. For fifty years we

have been a developing nation. It is time we see ourselves as adeveloped nation.

3.I have a THIRD vision. India must stand up to the world. Because

I believe that unless India stands up to the world, no one will respectus. Only strength respects strength.


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What does the Goldman Sachs BRIC Report say?(BRIC=Brazil, Russia, India, China)

2.5%

1.9% 1.8% 2.1% 2.2%

2.9%2.4%

-0.1%

9.5%

5.6%

0.9%1.3% 1.3%

1.8% 2.0%

2.6%

4.2%

5.6%

7.7%

8.5%

-1%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

J a p a n

I t a l y

G e r m a n y

F r a n c e U

K U S

B r a z i l

R u s s i a

C h i n a

I n d i a

Historical (1980-2002) Goldman Sachs (2000-2050)

Goldman Sachs in their BRIC report have higher than historical projections forBrazil and Russia and lower predictions for China


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Leading India to emerge as the 3 rd largesteconomy in 2050 (in US$ billion )!

2185

3297

3816

3919

5367

5596

6092

30209

35067

43926

Italy

France

Germany

UK

Russia

Brazil

Japan

India

US

China

Goldman Sachs: US$ billion

Note the big gap between the first three and the rest


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Under GS assumptions, India would be theworlds 3 rd largest trader in 2050

948

1013

1238

1421

2021

2054

3018

5575

6969

13842

0 2000 4000 6000 8000 10000 12000 14000 16000

Italy

Brazil

Japan

France

Germany

UK

Russia

India

US

China

Goldman Sachs & WDI: US$ billion, projected at historical Trade-to-GDP ratios


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India: TradeRanbaxy, the largest Indianpharmaceutical company, gets 70%of its $1 billion revenue fromoverseas operations and 40% fromUSA.

Tata Tea has bought Tetley of UK for 260M.

India is one of the world's largestdiamond cutting and polishing centres, its exports were worth $6Billion in 1999.

About 9 out of 10 diamond stonessold anywhere in the world, passthrough India.

Garment exports are expected toincrease from the current level of $6billion to $25 billion by 2012.

Mobile phones are growing by about 1.5Million a month. Long distance rates are down by two-thirds in five years and by 80%for data transmission.

Wal-Mart sources $1 Billion worth of goods from India -half its apparel. Wal-Martexpects this to increase to $10Billion in the next couple of

years.

GAP sources about $600 millionand Hilfiger $100 million worthof apparel from India.


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Trade as a % of GDP hasincreased over

the years ...

while tariffs have declinedsignificantly,indicating Indias gradual process of

opening its economy.

weighted average tariff has more


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Current initiatives:

Increasing trade alliances withASEAN, China and withdeveloped countries.

Developing new specialeconomic zones (SEZ)


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Structural drivers of growth

1. Large population and favourabledemographic trends

2. High-skill level in labour force;improvements in overalleducation needed

3. Rising integration into globaltrade and investment

4. Improving macro policies and


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The size of the Indian economy will almosttriple from 2002 and 2020 (in PPP terms) to:

I) 3 times the size of Germany vs. 1.3 timesin 2002

ii) 1.7 times the size of Japan from justbelow unity in 2002

Average income level will increase sharply:

- GDP per capita will more than double toUSD 5,000 from USD 2,300 in 2002


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India 2020: Emergence of a

middle-class Income distribution significantly

improved in the 1990s after reforms

started.

Further economic liberalisation willcreate a large and vibrant middle-class.


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Economic prospects-20201. Indias growth potential over the next 10 -15 years sets

the country at the forefront of the developed anddeveloping world.

2. The implications of its projected growth trajectory aremanifold:

A larger, richer consumer market will emerge Consumption patterns will change, reflecting the rise of a

vibrant middle class Household savings will increase, and unleash demand for

diversified financial products.


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India: Pharmaceuticals The Indian pharmaceutical industry at $6.5 billion and growing at 8-10% annually, is the 4th largest pharmaceutical industry in the world.

Its exports are over $2 billion. India is among the top five bulk drugmakers and at home, the local industry has edged out the Multi-National companies whose share of 75% in the market is down to 35%.

Trade of medicinal plants has crossed $900M already.

There are 170 biotechnology companies in India, involved in the

development and manufacture of genomic drugs, whose business isgrowing exponentially.

Sequencing genes and delivering genomic information for bigPharmaceutical companies is the next boom industry in India.


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India: Foreign Multi-National Companies Top 5 American employers in India:

General ElectricHewlett-PackardIBM

American ExpressDell

General Electric (GE) with $80 Million invested in India employs 16,000staff, 1,600 R&D staff who are qualified with PhD s and Master s degrees.

GE's R&D centre in Bangalore is the company's largest research outfitoutside the United States. The centre also devotes 20% of its resources on 5

to 10 year fundamental research in areas such as nanotechnology, hydrogenenergy, photonics, and advanced propulsion.

It is estimated that there are 150,000 IT professionals in Bangalore asagainst 120,000 in Silicon Valley.

I di


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India: BPO The domestic BPO sector is projected to increase and reach to $65

billion by 2012. (McKinsey & Co.).

The outsourcing includes a wide range of services includingdesign, architecture, management, legal services, accounting anddrug development and the Indian BPOs are moving up in the valuechain.

There are about 200 call centers in India with a turnover of $2billion and a workforce of 150,000.

100 of the Fortune 500 are now present in India compared to 33 inChina.

Business Week of has said "Quietly but with breathtaking speed,India and its millions of world-class engineering, business and medical graduates are becoming enmeshed in America's New

Economy in ways most of us barely imagine".

INDIA IN THE NEW KNOWLEDGE ECONOMY


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Transition from BPO to KPO Destination

Growth of Services sector

Contribution to Indias GDP

8 + %

51 + %

Knowledge Process Outsourcing - To grow 46% to $ 17 Billion by 2011

Emerging Trends in the last two years:Silicon Valley VCs setting shopUS companies relocating up to 95% of R&D work in next generation technologies especially in the wireless space & optical networking systems.Intel, Cisco doing core development work on chip design.Texas Instrument has its global centre for wireless LAN & semi-conductors R&D based in India

Tech Multinationals have filed 1, 700 global patents for product developed out of IndiaAutomotive engineering design services (AEDS) projects already executed $ 500 million worth ofGlobal Contacts Boschs Indian team does major chunk of Diesel systems development in India

PRODUCT DEVELOPMENT REQUIRES ONE FOURTH THE INVESTMENT IN INDIA


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India: Technology SuperpowerGeneva-basedSTMicroelectronics is one of thelargest semiconductor companiesto develop integrated circuits andsoftware in India.

Texas Instruments was the firstto open operations in Bangalore,

followed by Motorola, Intel,Cadence Design Systems andseveral others.

80 of the World s 117 SEI CMMLevel-5 companies are based in

India.

5 Indian companies received theglobally acclaimed Deming prize.

This prize is given to anorganization for rigorous total

quality management (TQM) practices.

15 of the world's major Automobilemakers are obtaining componentsfrom Indian companies.

New emerging industries areasinclude, Bio-Informatics, Bio-

Technology, Genomics, ClinicalResearch and Trials.

World-renowned TQM expert Yasutoshi Washio predicts that Indianmanufacturing quality will overtakethat of Japan in 2013.

Flextronics, the $14 billionglobal major in ElectronicManufacturing Services, hasannounced that it will make India aglobal competence centre for telecomsoftware development.


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India: Technology SuperpowerOver 100 MNCs have set up R&D facilities in India in the past years.

These include GE, Bell Labs, Du Pont, Daimler Chrysler, Eli Lilly,Intel, Monsanto, Texas Instruments, Caterpillar, Cummins, GM,Microsoft and IBM.

Indias telecom infrastructure between Chennai, Mumbai and Singapore,provides the largest bandwidth capacity in the world , with well over8.5 Terabits (8.5Tbs) per second.

With more than 250 universities, 1,500 research institutions and 10,428higher-education institutes, India produces 200,000 engineeringgraduates and another 300,000 technically trained graduates every year.

Besides, another 2 million graduate in other areas in India annually.

The Indian Institute of Technology (IIT) is among the top threeuniversities from which McKinsey & Company , the world's biggestconsulting firm, hires most.


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IIT = Harvard + MIT + Princeton IIT = Harvard + MIT + Princeton , says CBS 60 Minutes .

CBS' highly- regarded 60 Minutes , the most widely watched news programme in the US,told its audience of more than 10 Million viewers that IIT may be the most important

university you've never heard of."

"The United States imports oil from Saudi Arabia, cars from Japan, TVs from Korea andWhiskey from Scotland. So what do we import from India? We import people, really smart

people," co-host Leslie Stahl began while introducing the segment on IIT.

the smartest, the most successful, most influential Indians who've migrated to the USseem to share a common credential: They are graduates of the IIT.

in science and technology, IIT undergraduates leave their American counterparts in

the dust.

Think about that for a minute: A kid from India using an Ivy League university as asafety school. That's how smart these guys are.

There are cases where students who couldn't get into computer science at IIT, they

have gotten scholarships at MIT, at Princeton, at Caltech.


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India: Moving up the Value Chain


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India: Moving up the Value Chain

Source: SSB, Fall

1960 Client / Server InternetMainframe

Facilitiesmanagement

Unix-basedcoding Maintenance

Migration & Re-engineering

PackageImplementation

Applicationdevelopment

Web Enablinglegacy

Consulting

Maintenance

PackageImplementation

E-businessapplications

Embeddedsoftware

Network Management

Network Security

Aligned to Technology Needs

William H Gates Chairman and Chief


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William H. Gates, Chairman and Chief Software Architect Microsoft Corporation

(b-1955):Gates emphasized that India had emerged as a majorglobal IT hub not because of the availability of low-costskills, as many believe. Rather, it had more to do withthe ''quality'' and ''world-class skills'' to be found in India,he said. ''The key is the quality of the human talenthere. When people do software projects in India, theydo so because this is the place they can find peoplewith the latest skills. It is not on the (cheap) price (oflabor),'' he was quoted as saying by The Times of Indianewspaper. Gates had high praise for the ''quality ofeducational institutions which could make India into anIT superpower.'http://www.atimes.com/ind-pak/BI19Df01.html

T l M k


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Telecom Market

7th

largest telecom network in the world

Telecom network growth rate 30%

Size (2003) US$ 9 billion2012 (projected) US$ 23 billion

Ri i T l d i & T l h S b ib


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Rising Teledensity & Telephone Subscribers

Sot

India needs $30 billion to meet a target of one phone for every five people by 2011

Indian Healthcare : The Changing Scenario


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d a ea t ca e : e C a g g Sce a o

Current Healthcare Landscape



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g g

INDIA SPENDS US $ 22.7 BILLION ON HEALTHCARE

3.7 19

22.75.2% of GDP

TotalHealthcare

Market

Pharmamarket*

Healthcaredeliverymarket



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g g

IN TERMS OF DELIVERY, PRIVATE PROVIDERS CAPTURE 63%0F THE US $ 19 BILLION SPEND

6337

Government and publicemployers*

Healthcare provision

Per cent of total spending

Private providers(individual, charitable andfor-profit)

100% = US $ 19 billion

* Including government spend (20%), public employers spend (11%) and out -of-pocket spend at government providers (6%)Source: McKinsey analysis



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g g

INDIA: AN EMERGING HEALTHCARE HUB

INDIAN HEALTHCARE CAPABILITY


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Over 60,000 cardiac surgeries done peryear with out comes at par withinternational standards

Multi organ transplants like Renal,Liver, Heart, Bone Marrow Transplants,are successfully performed at one tenththe cost.

Patients from over 55 countries treatedat Indian Hospitals.

INDIAN HEALTHCARE CAPABILITY FACT#1: Proven Indian healthcare system

HEALTHCARE .THE SUNRISE INDUSTRY


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Physicians, Nurses, Medical Technicians and Other ScientificOccupations will Become Growth Industries to Rival the IT Sector withinthe Next Decade

- India Vision 2020 Report



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PROCEDURE COST (US$)

THAILAND THAILAND INDIA

Heart Surgery

Bone Marrow Transplant

Liver Transplant

Knee Replacement

Cosmetic Surgery

7,500

-------

-------

8,000

3,500

6,000

26,000

69,000

6,000

2,000

US US

40,000

2,50,000

3,00,000

20,000

20,000

UK

23,000

1,50,000

2,00,000

12,000

10,000


Cost Advantage


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Indias Growth Sectors -Pharmaceuticals & Biotech



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The Indian Pharmaceutical Industry has practically achieved

Self sufficiency &

Global recognition as a

Low cost producer

of High-quality bulk drugs & formulations

KEY ACHIEVEMENTS


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India has the 2nd highest

number of qualifieddoctors in the world. Ofevery six medical doctorsin the US, one is Indian

700,000 science andengineering graduates &

1500 PhDs qualify annually.Over 15,000 scientists

Investigational New Drugstage costs about $100 to150 million in US, but

costs only around $10 to15 million in India

Indian companies are offeringcustom synthesis services at

30-50% cost savings comparedto global costs

While clinical trials cost

approximately $300 to350 million in US, they

cost only about $25million in India

Indias huge population

and the prevalence of awide spectrum of diseaseconditions offer a wide

patient-resource for clinicaltrials

CHANGING FACE OF INDIAN PHARMA


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Players thinking local Players thinking global

Top 5 Companies Sales & Export Revenues

Source: Company reports

Rank Company Sales ($ mn) Exports ($ mn) Exports %1 Ranbaxy 969 736 76%2 Cipla 400 163 41%3 Dr.Reddy's Lab 336 212 63%4 Aurobindo Pharma 264 128 48%5 Lupin 210 92 44%

Pharmaceutical exports increased at aCAGR of 23%

Indian pharma companies filed the largestnumber of Drug Master Files (DMFs) forAPIs and 23% of ANDAs with the USFDAduring 2003

Ranbaxy acquired RPG Aventis, France;Wockhardt acquired CP Pharmaceuticals,UK; Zydus Cadila acquired Alpharma,France

Export revenues now contribute overhalf the total revenues for the Indian

pharma majors



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BIOTECHNOLOGY


Market A Consistent Uptrend


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Market - A Consistent Uptrend

2002-03

2010

25% growth in investment

70% growth in employment

74% growth in R&Dmanpower

10% of global industry

1 million skilled jobs

USD 5 billion annual

revenues

Source: Confederation of Indian Industry (CII)

The India Advantage


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The India Advantage

Trained manpowerand knowledge base

Rich biodiversity Extensive clinical trialsopportunities

Excellent networkof research laboratories

Well-developedbase industries


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Indian Energy Sector Some facts

Indias Energy Consumption is 12.6 million btu.India energy intensity is higher compared to Japan, USA

and Asia as a whole by 3.7, 1.55 and 1.47 times respectively (energy consumption compared to GDP). This indicatesinefficient use of energy but also substantial scope of energy savings.Long term energy plan for India therefore should aim at

a) Projecting the energy demandb) Projecting the energy mixc) Exploring the possibilities for alternative sources andd) Suggesting measures for energy efficient uses


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India - Primary Energy Sources in India(%)

53%

31%

9% 6% 1% Coal

Oil

Gas

Hydro

Nuclear

Source :BP Statistical Review of World Energy, June 2009


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India - Estimated Fuel Mix by 2020 (%)

2516

8

5

1630 Coal

Oil

Gas

Renewable

NuclearTraditional

Source : World Ener Statistics 2009


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ENERGY for the future - Some

Options

Clean Coal TechnologiesUsage of renewable energy resourceModernization of power transmission & distribution system

Alternative fuels for surface transportation- bio-fuels,electric vehicles, hydrogen and fuel cell vehicles.Hydrogen has significant potential as a clean energy source


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WORKFORCE SHORTAGES AND


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47Mn

19Mn 7

Mn

3Mn

5Mn

3Mn

India

Bangladesh

PakistanIran

Brazil

Mexico

Philippines

5Mn

4MnVietnam

2Mn

Turkey

Potential surplus population in working age group (2020)

-10Mn

China

-6Mn

Russia

5Mn

Indonesia

1MnMalaysia

0Mn

Ireland

Israel0Mn

Iraq

2Mn

-1Mn

CzechRepublic

Note: Potential surplus is calculated keeping the ratio of working population (age group 15 59) to total population constant;Source: U.S. Census Bureau; BCG Analysis

4Mn

Egypt

-17MnUS

-2 MnUK

-2 Mn

Italy

-3 MnFrance-9 Mn Japan

-0.5Mn

Australia

-3 MnSpain

-3 MnGermany

AVENUES OF SUPPLY

C l i


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Conclusion

India is on the way of becoming asuperpower very soon but the pace ofthe countrys transformation willultimately depend on the will of theIndian population and the vision of its

leadership and the trust on ourselvesthatWE CAN &WE WILL

India 2020 Strengths

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