India – a favored destination for Global firms

Capt. Ramrao Ranadive

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First Mention

Total Mention

Most Attractive Market and investment destination

India

China

Southeast Asia

Brazil

North America

Latin america

Middle East

Western eaurope

Northern Africa

Central Eastern europe

Sub-Saharan Africa

Japan

Russia

Commonwealth of Independent States

Can't Say

India at the top - A leading 32% of the investors ranked India as the most attractive market

this year, while 60% placed the country among the top three investment destinations.

Government Initiatives Favoring India

Flagship government programmes such as Make in

India and Digital India & Skill Development have

also influenced investor choices, although

awareness about them remain low. Around 70 % of

businesses already operating in India and 10 % of

international ones were aware of Make in India.

The country received the most FDI during January-

June 2015, pegging it at $30 billion.

In positively influencing India’s attractiveness as an

investment destination, the smart cities project and

growing expenditure on Infrastructure scored the

highest in investor Interest

Government Initiatives Favoring India….contd

Definitive conclusion to legislation on land acquisition

In the tax reforms space, the government’s decision to

reduce corporate tax rate from the current 30 % to 25 %

in the next four years

The promise of the goods and services tax being

implemented by 2016 and actions already in hand

Manufacturing has regained its place as the most

favoured sector (62%) India would be among the top

three manufacturers in the world by 2020.

The services sector follows next (42%)

Other Factors enabling India Being Preferred Include

• Vast pool of technically qualified, trained and English speaking

population

* Significant cost savings ensuing from evolved and proven models

* Time zone advantages facilitating 24/7 operations (follow-the-sun

schedules)

* Geographical expansion with close proximity to key emerging

Markets, besides being huge emerging market in itself

* Proven project-management experience resulting in better quality and

timely delivery

* Strong intellectual-property management

* Conducive business environment with investor friendly laws and

Stable Government and booming economy

A few barriers that pose a serious road block in India’s ambitions of

becoming the most favored outsourcing destination include:

* Inadequate infrastructure (Capital Intensive/State of Art )

* Increasing costs ( Upward revisions in Minimum Wage and

Settlements of Unions )

* Rising attrition

* Lack of recruitment bandwidth to hire and retain

hard-to-find talent skilled in research

Certain Interesting Comparisons/ factors that favor India include:•China has been 85th in terms of economic transformation where India has been ranked

25th by German Bertelsmann Foundation.

•Indian business leaders - as India is having more number of

entrepreneurs as comparing to China

•Indian products were found to be more preferred than Chinese

products.

•On comparing India, China and Malaysia India has fared better in

providing social security like healthcare, education and child welfare to

its people

•For Sun Microsystems, India has overtaken the US and China to

emerge as the largest developer location.

•Indian IT sector has recorded the fastest growth rate in the world in

2008

•In technology and outsourcing services major, India is all set to

threaten China's position as the world's backyard for manufacturing in

the next 3-5 years.

•Indian millionaires will hold more than double the wealth of their

Chinese counterparts. 411,000 Indian households will be worth US$

1.7 trillion in 2017. In contrast, 409,000 Chinese millionaires will be

worth US$ 795.4 billion.

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Passenger

Vehicles4,44,326 5,08,783 5,59,414 5,96,142 6,21,341 6,53,889

Commercia

l Vehicles74,043 92,258 80,027 77,050 86,939 1,01,689

Three

Wheelers2,69,968 3,61,753 3,03,088 3,53,392 4,07,600 4,04,441

Two

Wheelers15,31,619 19,75,111 19,56,378 20,84,000 24,57,466 24,81,193

Grand

Total23,19,956 29,37,905 28,98,907 31,10,584 35,73,346 36,41,212

Automobile Export Trends

Category 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Passenger

Vehicles

25,01,542 26,29,839 26,65,015 25,03,509 26,01,236 27,89,678

Commercial

Vehicles

6,84,905 8,09,499 7,93,211 6,32,851 6,14,948 6,85,704

Three Wheelers5,26,024 5,13,281 5,38,290 4,80,085 5,32,626 5,38,092

Two Wheelers

1,17,68,910 1,34,09,150 1,37,97,185 1,48,06,778 1,59,75,561 1,64,55,911

Grand Total 1,54,81,381 1,73,61,769 1,77,93,701 1,84,23,223 1,97,24,371 2,04,69,385

Automobile Domestic Sales Trends

Any Questions?

Thank you for your time