the indian growth story
DESCRIPTION
What is driving growth in India and what will inhibit its potentialTRANSCRIPT
India:10 Insights
into the Indian growth story
Asia 5Bringing you a flavour of businesstrends in Asia...in just 5 minutes
A Futures Coaching initiativewww.futurescoaching.com
India will add 10 million new workers to its population every year til 2025 (i.e. the equivalent to the size of Portugal each year)
Goldman Sachs' says: “India's demographics are astonishing, the most favourable in the World”
more workers
In smaller companies, an Indian manager will typically work
11 hours a day, 6 days a week
hard work culture
India has second largest pool of science and engineering
graduates in the world and churns out 2.3m per year (source: Ernst and Young)
clever workers
12 largest population of Highest Net
Worth individuals in
the World(source: Merrill Lynch, World Wealth Report)
entrepreneurs
The number of middle-class Indians will swell to 267Mn by 2015 – up 67%
from today's levels (source: National Council for Applied Economic Research)
Per capita incomes are $3703 in PPP-adjusted terms
(source: IMF, 2011)
Economically, Goldman Sachs forecast that, by 2050, India could
be 30 times bigger than today making it easily the third biggest
economy in the World
spending power
versus China
India has huge differencessome positive, some negative
- Autonomous regions- Bickering democracy- Antiquated caste system- Competing faiths- Complicated colonial heritage- Poor transport- Credible legal system- English language speaking- Home-grown technology companies
but poverty
In 2010, 37% were below poverty line (source: Economy Watch)
Whilst 82% of the Worlds' population is literate, only
67% are in India
Only 11% have health insurance
but corruptionIndia is ranked 95th in a corruption perception index (source: Transparency
International, 2011)
In 2011, the planned anti-corruption bill failed to
pass into law
Billionaire Ajay Piramal wants to invest but says
“the problem is not opportunity...it's India”
but paralysis
In 2011, Indian Parliament passed just 22 laws – the second fewest since 1952
After a bust up inside Parliament in December
2011, the opposition spoke darkly of “the
murder of democracy”
http://www.youtube.com/watch?v=Fu8uqMEmyRE
but protectionism
Will they, won't they?
After it looked, finally, that India would open up
its retail to FDI, the measure was blocked yet again in December 2011
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