Professional Documents
Culture Documents
In India
Business Environment
Suneel Gupta
Attracting long-term foreign capital to supplement domestic investment efforts, particularly in infrastructure and export competitive sectors
Creating skilled employment Opportunities and Import of world Class managerial practices
FDI
Developing attractive Configurations of locational advantages at global level Promoting technology and other linkages to enhance domestic industry competitiveness
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The Time is now..to be in India. This is perhaps the most optimistic Ive felt about India in the last 10-15 years that I ve been coming here. Jeffrey Immelt
India can be the test bed for developing solutions for the poorest nations.
GERARD KLEISTERLEE , PHILIPS
India is handling the most sophisticated projects in the world. I am impressed with the quality of work
Economy The 4th largest & 2nd fastest growing economy in the world (based on PPP adjusted GDP ~ USD 3.3 tri) Estimated GDP growth (2005-06) is 8,1 % GDP composition is well diversified across sectors with robust growth. Agriculture 22.1%, Industry 21.7% & Services 56.2%
Singapore
Indonesia
Malaysia
Phillipines
Thailand
China
Taiwan
Korea
Hong
India
Kong
1 0 9 8 7 6 5 4 3 2 1 0
8 .6 6 .2
1 y a GD g whCA R % 0 er P ro t G
5 .0
5 .0
4 .8
4 .6
4 .2
3 .5
3 .1
2 .8
Growth of Economy
2nd most attractive investment destination AT Kearney Business Confidence Index, 2005
Up from 3rd place in 2004, 6th place in 2003 and 15th place in 2002 UNCTAD & Corporate Location April 2004
Among the top 3 investment hot spots for 2004-07 Most preferred destination for services - AT Kearneys 2005 Global Services Location Index (previously Offshore Location Attractiveness Index)
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Real Estate
Roads Civil Aviation Dis-investment Total
0.2
0.2 0.2 0.5 8.9
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Worlds largest refinery plant Amongst top 3 truck manufacturers in the world
World leader in viscose staple fibre and 3rd largest producer of insulator
Worlds 2nd largest forging company with outsourcing to major car manufacturers
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INDIA: TRACING FIRST GENERATION REFORMS Industrial delicensing Liberal FDI regime Freedom to invest & expand Simplification of investment procedures Tax rationalisation Current Account convertibility Public sector divestment WTO compatibility Patents, etc.
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Some Independent Studies JBIC Survey 2002 ranks India as the 5th most promising investment destination EIUs World Investment Prospects 2002 projects steep growth in FDI inflows to India
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INVESTMENT OPPORTUNITIES
INFRASTRUCTURE 10 year tax holiday for developers of SEZs/ Industrial Parks 100% tax Exemption for 5 Years and 50% thereafter for two years for SEZ Units 100% Tax holiday for 10 years for infrastructure undertakings 100% tax deduction for 10 consecutive assessment years to undertakings providing Telecom services
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INVESTMENT OPPORTUNITIES
INFRASTRUCTURE
INVESTMENT REQUIREMENT: US $ 347 Bn
Sector Present Capacity
h M W . Lak M Lines M T , K m s , K m s ,
Capacity Addition By
, M W , M Lines M T , Kms , Kms K m s ,
P ow er Telecom P orts R oads a. National Highw ays b. State Highw ays c. Super N . H. Urban I nfrastructure Service
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FDI policy 100% FDI for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure facilities such as roads and bridges, mass rapid transit systems and manufacture of building materials Incentives Ten years tax holiday to undertaking developing or operating and maintaining or developing, operating and maintaining infrastructure facilities such as; water supply project, water treatment system, sanitation and sewerage system or solid waste management system
Integrated Townships
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up to 74/51/50% in 112 sectors under Automatic Route 100% in some sectors Up to 51% under Automatic Route for 35 Priority Sectors Allowed selectively up to 40%
Pre 1991
1991
1997
2000
2000-05
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Automatic Route
General Rule No prior permission required Inform Reserve Bank within 30 days of inflow/issue of shares
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RBI
FIPB
No permission required, only to notify RBI within 30 days of issue of shares to foreign investors
US $ billion
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Advertising and films Computer related services Research and development services Construction and related engineering services Pollution control and Management services Urban Planning and Landscape services Architectural services Health related and social services Travel related services Road transport services Maritime transport services Internal waterways transport services
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Bulletin Board facility for Seeking Clarifications on Complicated Matters ( Replies sent just after one day)
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India has potential to growth rate higher than 5% over the next 30 years and close to 5% as late as 2050;
Only India among BRICs to have growth rates significantly above 3% by 2050;
Indian economy can overtake Italy by around 2017, Germany by around 2027 and Japan by 2032; India has the potential to raise its per capita income in US$ terms by 35 times by 2050.
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Telecom %
Chem ica ls (Other tha n Fert.) % Services Sect or % Food P rocessing I ndustries % Tra nsporta tion I ndust ry %
Others %
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Telecom AT&T Swiss Telecom Deutsche Telekom AG Motorola STET International Telesystem International Telstra Corp SIET International Consumer Goods Fosters AB Electrolux Kellogg Nestle SA Perfetti Coca Cola Pepsi
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