IndiaDestination

KPMG.com/in

The global environment is witnessing a rapid change

De-globalisationRise and

Stagnation of China

Subdued Global Economic

GrowthIndustry 4.0

Regulatory Reforms

Demographic Dynamics

While the India opportunity is still real

Investor confidence

1.603

33%

Urba

niza

tion

2010

-15 FDI inflow

$68B

Growing consumption demand

60%.5%73-year average growth forecast

Financial Market stability

(Global competitiveness ranking 2016)

.5%7Growth

3.1%World India

Pace of digitization

Annual Internet user growth in

2015-16

30.5%

Notes: FDI data for April 2015 – October 2016

The quantum leap from an INR2 to INR5 trillion economy will depend on the interplay of various factors

Hybrid Logistics Hub

Radical Reforms

Dynamic Demographics

Technology-led Disruption

Rapid Urbanization

#2Second largest and continually growing

consumer base

Population of over 1.29 billion, growing annually by 1.2%

1200basis points (bps) rise

Rising urbanization

27.7 30.9 34.839.8

2000 2010 2020(e) 2030(e)

Share of urban population in the country's total population (%)

0.92.0

3.7

11.5

2009 2015 2020 2030

12.7XRise in gross

annual income over 2009-2030

Annual gross income – US$ trillion

Note: US$ 1 = INR 62.31 (as of 31 March 2015)Source - KPMG –FICCI Thought leadership report - SELL SMART – Moving towards a SMARTer Consumer Market, August 2015

Increasing urbanization Higher household incomeGrowing population

Young urban Indian consumers will drive domestic consumption

Flagship programs and regulatory changes unlock opportunities for the global community

05 03

02

01

04

06

Make in IndiaEnhancing manufacturing through investments, innovation, and infrastructure

Digital IndiaProvides digital infrastructure and governance services to all citizens

Skill India400 million youth to be

skilled by 2022

Ease of doing businessTo enhance business conduciveness,

through investor-friendly measures

Start-up IndiaTo build a strong eco-system for nurturing innovation and entrepreneurship

Competitive federalismA system to rank states based on the

98-point action plan launched to enhance business conditions

900+ million mobile phone users

271 million bank accounts with deposits worth ~USD10

billion

1 billion+ Aadhar (ID) registrations

Digital Banking

Last Mile Connectivity e-Commerce Revolution

Tier II and III boom

INDIA’S CONNECTED FUTURE POTENTIAL

Internet of Things Extreme Automation

The technological revolution provides insights about the Indian consumer treasure chest

Target of 138,000 km track length

Annual freight capacity of 1.5 billion tonnes

Roads and Highways5 Industrial Corridors

Building 30km road stretch per day

Coasts12 major ports to be developed in Sagarmala

10 Coastal Economic Zones to be established

RailwaysAviationUSD120 billion investment in development of airport infrastructure

India aims to be third largest aviation market by 2020

India needs over USD1.5 trillion in investment in the next 10 years to bridge infrastructure gap

Connectivity will drive growth and investments

Urban population expected to contribute 70% to

India’s GDP, in the next 15 years

Increase predictability and quality of service delivery

Address gap in infrastructure

Augment inclusivity of a cityProvide new and innovative

technology solutions

Urban India has a new paradigm encompassing modern, digital and sustainable living

Collectively propelling India to become the 3rd largest economy in the next decade…

583Million urban population

$ 7.5 trillion contribution of Urban GDP

77 cities, population >1 Mn

23%Global middle class from India

$ 10,073Indian median income

$850Billion retail market

730Million internet subscribers

$ 228Billion e-commerce Market

$ 500Billion Digital payments market

So the question is not ‘Why’

anymore….it is ‘When’ and ‘How’

Thank you