Doing Business in IndiaCIBER Conference, East Lansing, MI - November 2011

Key Statistics

GDP of $ 1.7 trillion (4th largest economy in the world)

GDP growth rate of 8% ( year ending March 2012)

Population 1.1 billion ( 70% rural)

27% of the population below the poverty line in 2005 vs. 53% in 1978

63% literacy rate in 2006 vs. 53% in 1978

29 major languages and more than 2000 ethnic groups

History

Indus Valley Civilization flourished during the 3rd and 2nd millennia B.C.

The Classical Indian culture dates from around 1500 B.C.

British rule from the 19th century till 1947

Parliamentary system, based on the Constitution, with power divided between the Center and the States

Economic Liberalization began in the early 1990’s and has served to accelerate the country’s growth and spread the benefits

The Economy

Sector % of GDP % of the Labor Force

Agriculture 18.5% 52%

Industry 26.3% 14%

Services 55.2% 34 %

Agriculture Industry

Rice,Wheat,Cotton, LentilsSugarcane,Tea,Onions,Potatoes, Dairy,Poultry,Fruit

Textiles,Chemicals, Steel,Mining,Cement,Transport,Pharma,Machinery

Economic Prospects

Private consumption as a % of GDP is closer to that of Japan and the United States than it is to China

India will see further reduction in poverty

Middle class is expected to grow tenfold-merit based achievement

Urban areas will continue to grow-there are already 20 cities with more than 1.6 million inhabitants –potential consumers, entrepreneurs and industrial/service workers

American presence in India

Citibank since 1902

Colgate since 1937

P&G (predecessor) since 1951

IBM since 1951(left in mid-70’s and came back in 1997)

Bank of America since 1964

Unilever, Nestle, Siemens, HSBC, Bosch

Indo-US ties

US-India Business Council

Silicon Valley and other networks

Five US Consulates in India

Rotary, Lions, Alumni groups

NGO’s: Ford, Rockefeller and Gates Foundations

Cooperation in defense, scientific research, education

Michigan in India

Ford

GM

Delphi

Flint

Haworth

How about a Michigan in India “team effort”?

Strengths

Pharmaceuticals/ Health Care

IT

Auto components

Other services

Weaknesses

Electronics manufacturing

Infrastructure/Transportation/Power/Water

Green technologies

Education

How to go in

Liaison office

Through an Agent/Distributor

Assembly or Manufacture in India

Technology licensing

Why go to India

Growing economy and large numbers of wealthy and middle-class people

Diversified economy, with educated business people looking for new technologies and opportunities

Established set-up for doing business: English speaking, Banking & Trade Finance, Law firms, Media ( print, television, social media), Insurance

International airports accessible from East and West, international standard hotels, communication and health care.

Unique Reasons to go to India

Laboratory to develop products for developing markets and a supply base

Export location for Middle East, Africa, Russia and SE Asia

Americans can provide systems, procedures and efficiencies

Large population of educated young people- welcome a chance to work in a professional environment

India is a Democracy!

CULTURAL FACTORS

National pride and confidence in their education, background and culture

Awareness of global issues

Interest in discussing political and other current issues