The Indian scenario By Prem Behl Chairman Exhibitions India Group.

The Indian scenarioThe Indian scenario

By By Prem BehlPrem BehlChairman Chairman

Exhibitions India Group Exhibitions India Group

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 India Exhibitions Venues in India

4.4. Doing business in India Doing business in India

IndexIndex

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

The Indian Economy: An OverviewThe Indian Economy: An Overview

2013

7

36

70

1950s 1960s 1970s 1980s 1990s

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

% rise in per capita income


The biggest drop in inflation…The biggest drop in inflation…

% decrease in inflation

9.59.1

7.4

4

1970s 1980s 1990s 2000-4


Have prompted a spending boom…Have prompted a spending boom…

% growth in consumption expenditure

5.9

9.5

6.5

11.4

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


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

13.819.3

21.926.6

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

Household savings as % of GDP


The economy is riding highThe economy is riding high

% annual growth in GDP

4.4

8.56.9 7*

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

• India is the India is the 44thth largest largest economy in the world as measured by economy in the world as measured by purchasing power purchasing power

• Between 1980 and 2003, India’s economy grew at an average Between 1980 and 2003, India’s economy grew at an average rate of rate of 5.7%5.7%

• During the same period, India’s real income per head During the same period, India’s real income per head grew by grew by 125%125%

• Dr. Manmohan Singh, Finance Minister in 1991 and architect of Dr. Manmohan Singh, Finance Minister in 1991 and architect of India’s India’s economic reformseconomic reforms, is the current Prime Minister , is the current Prime Minister


Additional economic indicators:Additional economic indicators:

• • India has a India has a consumerconsumer basebase of 1.2 billion people, and of 1.2 billion people, and • • The youngest population of the world – hence The youngest population of the world – hence sustainable,sustainable, long long term term growth is assured growth is assured • • Modern (organised) retail converging with the Modern (organised) retail converging with the consumption boomconsumption boom will open up will open up manymany opportunitiesopportunities for small and mid-size consumer for small and mid-size consumer companies companies • With upper income and rich classes growing rapidly and deprived With upper income and rich classes growing rapidly and deprived classes actually falling, India’s classes actually falling, India’s incomeincome demographicsdemographics will actually will actually be be unrecognizableunrecognizable by the end of the decade by the end of the decade


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

approximately approximately 1.51.5 MillionMillion new homes added in urban areas new homes added in urban areas

• • Mobile telephone subscriber base has grown from 0.3 Million in 1996 Mobile telephone subscriber base has grown from 0.3 Million in 1996 to over 55 Million currently; expected to grow to to over 55 Million currently; expected to grow to 200 Million200 Million by 2008 by 2008 • • 13 Million credit card holders currently & growing at 13 Million credit card holders currently & growing at 40%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 the the level of sales five years earlier level of sales five years earlier



0

10

20

30

40

50

60

70

Pe

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nt

0

1

2

3

4

5

US

$ T

ho

usa

nd

s

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 India’s percapita consumption

and China’s

• 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 world’s Emerging consumerism from one of the world’s youngest populationyoungest population

China India


36

30

37 3839 39

44 44

USA China Russia UK

24

30

35

40

45

50

Med

ian

ag

e in

yea

rs

24

India

31

2000 2025

Indians are Younger than the World…Indians are Younger than the World…


India in 2050India in 2050

-5,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

US

200

3 $

billi

ons

0

1

2

3

4

5

6

7

8

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

5-Y

ear

Per

iod

Ave

rag

e P

erce

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Per

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um

Brazil

China

India

Russia

India will be the 3rd largest economy…. …..with the highest growth rate of BRICs

BRICs = Brazil, Russia, India, ChinaSource: Goldman Sachs, “Dreaming with the BRICs”


Analysts’ View of the Indian EconomyAnalysts’ View of the Indian Economy

• “India is on the cusp of something big….[I] am as enthusiastic about India as I was about China in the late 1990s. What excites me most is the potential for an increasingly powerful internal 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 a growing working-age population over the next 40 years.” IMF, World Economic Outlook, September 2005

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

History of the Indian exhibitions industry History of the Indian exhibitions industry

• The history of Indian exhibitions dates back hundreds of yearsThe history of Indian exhibitions dates back hundreds of years

• Take, for example, India’s huge Pushkar Mela – now a great Take, for example, India’s huge Pushkar Mela – now a great tourist attraction tourist attraction

• Thousands of camels are traded on the sands of Rajasthan Thousands of camels are traded on the sands of Rajasthan annually, even today annually, even today


• Soon after independence, in the late Soon after independence, in the late

1940’s, the Government set up the 1940’s, the Government set up the

Directorate of Exhibitions under the Directorate of Exhibitions under the

Ministry of CommerceMinistry of Commerce

• An exhibition ground in New Delhi An exhibition ground in New Delhi

was developed to host the Railways was developed to host the Railways

exhibition in 1952 to mark the exhibition in 1952 to mark the

centenary of railways in India centenary of railways in India


19701970

• The Trade Development Authority (TDA) was set up in 1970 under The Trade Development Authority (TDA) was set up in 1970 under the Ministry of Commerce the Ministry of Commerce

19721972

• The fair ground was christened The fair ground was christened “Pragati Maidan” “Pragati Maidan”

• Pragati Maidan hosted “Asia’72: Pragati Maidan hosted “Asia’72: third Asian International Trade Fair” third Asian International Trade Fair” coinciding with India’s Silver Jubilee coinciding with India’s Silver Jubilee Year of IndependenceYear of Independence


19771977

• The Trade Fair Authority of India (TFAI) is formed by an Act of The Trade Fair Authority of India (TFAI) is formed by an Act of Parliament with the aim of organising trade shows Parliament with the aim of organising trade shows

19921992

• The India Trade Promotion Organisation (ITPO) is formed by The India Trade Promotion Organisation (ITPO) is formed by merging the Trade Development Authority (TDA) with the Trade merging the Trade Development Authority (TDA) with the Trade Fair Authority of India (TFAI) Fair Authority of India (TFAI)

Exhibitions Venues in India Exhibitions Venues in India 3.3.

Exhibitions Venues Exhibitions Venues in India in India

• Exhibition Venues

• International Airports

Exhibition Venues Exhibition Venues

International AirportsInternational Airports

Exhibitions Venues in India Exhibitions Venues in India

New DelhiNew Delhi

Name Name Area Area (in sqm.)(in sqm.)

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

Additional facilities Additional facilities

Pragati Maidan Pragati Maidan

Owned and managed by the Indian Owned and managed by the Indian Trade Promotion Organisation (ITPO)Trade Promotion Organisation (ITPO)

60,00060,000 10,00010,000 2 Conference Halls 2 Conference Halls (capacity – 200 each), (capacity – 200 each),

4 theaters 4 theaters


New DelhiNew Delhi

• Pragati Maidan is a massive venue of 149 acres in the heart of India’s Pragati Maidan is a massive venue of 149 acres in the heart of India’s

capital city capital city

• The venue’s 16 exhibition halls and other facilities are ageing and far The venue’s 16 exhibition halls and other facilities are ageing and far from being world class from being world class

• The ITPO has proposed to completely modernize and revamp the The 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.html


Greater NoidaGreater Noida



India Expo Center India Expo Center

Owned by the Export Promotion Owned 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 5 Another 20,000 sqm., as well as a 5

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


MumbaiMumbaiName Name Area Area

(in (in sqm.)sqm.)

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


Expo Center Expo Center Owned by the World Trade Center Owned by the World Trade Center

2,5002,500 n/an/a n/an/a

Bandra Kurla Complex Bandra Kurla Complex

Owned by the Maharashtra Dev. Co.Owned by the Maharashtra Dev. Co.

n/an/a 50,00050,000 Organisers typically set up air Organisers typically set up air conditioned hangars conditioned hangars

Bombay Exhibition Center Bombay Exhibition Center

Owned by Nesco Ltd.Owned by Nesco Ltd.

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


ChennaiChennai


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


Chennai Trade Center Chennai Trade Center

Owned by the Indian Trade Owned by the Indian Trade Promotion 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 complete phase complete

Conference Room Conference Room (Capacity – 200 people) (Capacity – 200 people)


BangaloreBangalore




KTPO Exhibition Complex KTPO Exhibition Complex

Owned by the ITPO and the Owned by the ITPO and the Karnataka Industrial Area Karnataka Industrial Area Development Board (KIADB)Development Board (KIADB)

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


Conference Room Conference Room (capacity – 200)(capacity – 200)


Hyderabad Hyderabad




Hitex Exhibition Center Hitex Exhibition Center

Jointly owned by the Govt. of Andhra Jointly owned by the Govt. of Andhra Pradesh and the private sector Pradesh and the private sector

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


Opportunities Aplenty Opportunities Aplenty

• The The needneed for quality trade shows and venues is apparent for quality trade shows and venues is apparent

• If India and China are Asia’s emerging giants, then India is falling If India and China are Asia’s emerging giants, then India is falling terribly behindterribly behind in its trade fair development in its trade fair development

• China has approximately China has approximately 150 exhibition centers150 exhibition centers and 3 million and 3 million square meters of exhibition space square meters of exhibition space

• India, according to our calculations, has India, according to our calculations, has 6 dedicated exhibition6 dedicated exhibition venues and 90,000 square meters of indoor exhibition space – this venues and 90,000 square meters of indoor exhibition space – this is estimated to increase by 40% in 3 years is estimated to increase by 40% in 3 years

Doing business in IndiaDoing business in India 4.4.

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 the With 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 2005 United Nations World Investment Report 2005

• A TNC (transnational corporations) survey has ranked India A TNC (transnational corporations) survey has ranked India as the as the third mostthird most attractive investment destination attractive investment destination

• In the same report, a UN expert opinion group ranked India as In the same report, a UN expert opinion group ranked India as the the second mostsecond most attractive investment destination attractive investment destination


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

• In order to organise a trade show in India, an organiser must gain In order to organise a trade show in India, an organiser must gain approval from the ITPO approval from the ITPO

• For leading trade show organisers, this is a For leading trade show organisers, this is a straight forwardstraight forward and and simple process simple process

• This approval consists of a Customs Notification allowing the This approval consists of a Customs Notification allowing the duty free temporaryduty free temporary import of goods to be displayed import of goods to be displayed


CustomsCustoms

• In line with international practices, there exists a well In line with international practices, there exists a well established systemestablished system allowing foreign participants the facility of allowing foreign participants the facility of duty free temporary imports for exhibitions duty free temporary imports for exhibitions

• India is a signatory to the ATA convention. India is a signatory to the ATA convention. ATA CarnetsATA Carnets are are accepted at all major exhibition destinations in India accepted at all major exhibition destinations in India

Freight HandlingFreight Handling

• There are professional and experienced exhibition logistics There are professional and experienced exhibition logistics companies that provide a companies that provide a full rangefull range of services of services • The scope of services range from The scope of services range from customs clearance customs clearance toto on site on site handling handling with modern mechanical handling equipment and a with modern mechanical handling equipment and a skilled work force skilled work force

• These logistic service providers have an extensive These logistic service providers have an extensive international international network network



The following is a brief list of leading freight forwarders The 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 constructers The 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.

Exchange ControlExchange Control

• All investments can be on a All investments can be on a repatriationrepatriation basis basis

• Original investment, profits and dividends can be freely Original investment, profits and dividends can be freely repatriatedrepatriated

• Foreign investors can Foreign investors can acquire immovable propertyacquire immovable property incidental to or incidental 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

Reforms in Exchange Control & TaxationReforms in Exchange Control & Taxation

TaxationTaxation• Companies incorporated in India are treated as Indian companies Companies incorporated in India are treated as Indian companies

forfor taxationtaxation• There exists a Double Taxation Avoidance Agreement There exists a Double Taxation Avoidance Agreement withwith 65 65

countriescountries

• Peak Custom duty has been Peak Custom duty has been reducedreduced to 15% to 15%

• Corporate Tax has been Corporate Tax has been reducedreduced to 30% to 30%

• Tariff to be aligned with Tariff to be aligned with ASEAN levelsASEAN levels

• Value Added Tax Value Added Tax introducedintroduced in some States from 1st April 2005 in some States from 1st April 2005

• Transparency in Tax Structure: Transparency in Tax Structure: Online/ ICTOnline/ ICT Applications Applications

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


Thank YouThank You

The Indian scenario By Prem Behl Chairman Exhibitions India Group.

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Transcript of The Indian scenario By Prem Behl Chairman Exhibitions India Group.