P N Mogre Secretary General Indian Merchants Chamber

P N Mogre Secretary General Indian Merchants’ Chamber 8 th HKTDC “World SME Expo & Conference’ 10 th to 12 th December, 2008 Seminar on ‘Exploring the Business Potentials in the India Market’ Venue: Hong Kong Convention & Exhibition Centre Thursday, 11 th December, 2008 at 10. 00 a. m. 1

Good Afternoon to all of you. On behalf of Indian Merchants' Chamber and business community of India, may I extend greetings to all of you at this Seminar on ‘Exploring the Business Potentials in the India Market’ IMC congratulates HKTDC for staging a fantastic ‘World SME Expo’ and organizing Seminars on accessing business potential in various countries. All of you would agree with me that HKTDC deserves appreciation and applause from all of us. 2

About Indian Merchants’ Chamber The Chamber took birth when the country was under the foreign rule. IMC played an important role under the guidance of Indian National Congress to help get Independence in 15 th August 1947. In recognition of IMC’s services to the freedom struggle, Mahatma Gandhi, Father of the Nation accepted Honorary Membership of the Chamber. IMC is the only Chamber in India to enjoy this privilege Its Centenary Year celebrations were inaugurated by then President of India, H. E. Dr. Abdul Kalam and flagged off by Hon’ble Union Finance Minister Mr. P. Chidambaram. On the occasion of its 100 th Foundation Day, the Government of India issued a commemorative Postage 3 Stamp to mark the Centenary of the Chamber.

IMC has over 5000 companies as members which include members of Ladies’ Wing and Young Leaders’ Forum. Today, its brand speaks of its strong association with 230 trade and industry associations. IMC, an ISO 9001 organization has gradually emerged itself as one of the major international chambers from India. In its second century it continues to serve with greater zeal the cause of trade, commerce and industry, especially in terms of global trade and investment and has in place 108 Memorandums of Understanding with leading chambers of commerce in over 50 countries. IMC reaches out internationally through its flagship event ‘India Calling’ annual Conferences. India Calling programme brings investment and trade opportunities in its target countries and in India to the attention of business and political leaders. 4

IMC has organized India Calling Business Conferences in Singapore (2004), Dubai (2005), London (2006), Johannesburg (2007) and Toronto and Vancouver (June 14 -19, 2008) Its current theme is : ‘Turning a new leaf – Education, Innovation and a Green Planet’ . Programmes of the Chamber this year will primarily focus on this theme. IMC would be taking up following major issues of importance in its programmes to deliberate upon solutions to those issues: Agriculture Water Energy Health Care Education Political Reforms Global Warming Innovation Infrastructure Urbanisation Governance & Administrative Reform Repositioning of Planning in a Market Economy 5 Environment (Climate Change)

INDIA – STRENGTHS & ECONOMIC POTENTIAL India – 4 th largest economy in the world, with 2 nd largest GDP (US $ 635 billion) among developing countries based on purchasing power parity. Stable macro-fundamentals – modest inflation, high foreign exchange reserves (US$ 299 billion), Strong GDP growth rate; sustained growth of services sector, selfsufficiency in food grains. Dramatic increase in direct foreign investment (US $ 32. 5 billion); Indian foreign investment abroad – expansion of Indian companies into multinationals; Growing number of acquisitions by Indian companies (US $ 20. 5 billion). Contd… 6

Contd. . India-Strengths & Economic Potential A large pool of skilled workers – Government’s new emphasis on the Knowledge economy will harness the country’s skills and human capital resources. Encouragement for productivity of labour. Demographics – Over 700 million Indians in the younger age group with more than 50% of India’s population under the age of 25 ; and the second largest English speaking population in the world. A rapidly growing middle class with a strong desire to to improve their lifestyle. Well endowed natural resource base. Contd …. 7

Contd. . India-Strengths & Economic Potential Movement towards full convertibility based on fiscal consolidation and improved financial intermediation. Attention to modernization of infrastructure ; improving road connectivity, turn-around time in Ports. Burgeoning IT and software sectors ; Modernization of telecommunications, internet accessibility and the increased pace of private involvement. Major power sector reforms : Strengthening the agroprocessing sector ; Health and education reforms; Deregulation of the Urban and the Construction sector. Contd… 8

Contd. . India-Strengths & Economic Potential Strong democracy – confidence to stakeholders : Cultural diversity, e-governance and on-going reforms. Innovative policy interventions – Focus Implementation of designed growth programs. on Impact of Global Economic Slow Down. The Indian Economy is also feeling the heat of the global economy slowdown. However, Government has recently announced a package of new economic measures which will help maintain 7% in 2008 -09. 9

Sectoral Rate of Growth of GDP at Factor Cost (%) 10

Growth in Per Capita Income and Consumption 11

Trends in FDI – Inward and Outward Flows (US $ bn) 12

Immense Opportunities In India Infrastructure Services Manufacturing Natural Resources Knowledge Economy 13

POWER Over 78, 000 MW of new generation capacity planned for the next five years All India average energy shortfall of 9. 9% and peak demand shortfall of 13. 5% Total investment opportunity of about US$ 200 billion over a five year horizon 14

TELECOMMUNICATIONS § Projected growth of 27% p. a. to reach 485 million subscribers by March 2010 § Over 6 million new users added every month – mostly in wireless § Investment opportunity of over US$76 billion across many areas 15

ROADS Annual growth projected at 12 -15% for passenger traffic and 15 -18% for cargo traffic Over US$90 billion investment is required over the next 5 years to improve road infrastructure A large component of highways is to be developed through public-private partnerships 16

PORTS Cargo handling at all the ports is projected to grow at 7. 7% p. a. till 2013 -14 with Minor ports growing at a faster rate of 8. 5% compared to 7. 4% for the Major ports Level of containerization expected to increase significantly over current levels of 15%. Containerized cargo is expected to grow at 17. 3% over the next 9 years Investment needed of US$12. 4 billion in the major ports under National Maritime Development Expected investments of US$7. 7 billion in Minor Ports Fourth terminal at JNPT likely to involve an investment of US$1 17 billion

URBAN INFRASTRUCTURE Investments of more than US$50 billion would be required in next five years to improve and build urban infrastructure Opportunity for private players to partner with Urban Local Bodies (ULB) in development of urban infrastructure such as Water supply and sanitation Slum redevelopment Urban transportation including roads, highways, expressways, Mass Rapid Transport Systems (MRTS) and metro projects Solid waste management Mumbai is planned to be developed into an international financial center Thrust on development of transportation systems in Mumbai: Estimated cost of development US$40 billion over next 10 years Demand for 1. 1 million low income houses by 2015 18

INSURANCE Indian Insurance market is expected to be around US$40 billion by 2010 Largely untapped market: 17% of the world’s population Nearly 80% of the Indian population is without Life, Health and Non-life insurance Per capita spend on life and non-life insurance is US$33. 2 and US$5. 2 (2006 -07), respectively compared to a world average of US$330 and US$224 19

RETAIL Overall retail market is expected to grow from US$270 billion to about US$660 billion by 2015, with organised retail at US$100 billion India is expected to be among top 5 retail markets in the world in 10 years India identified as the most attractive destination for retail in AT Kearney’s Global Retail Development Index 20

TOURISM Foreign tourist arrivals are targeted to grow to 10 million by 2010 Domestic tourism is expected to increase by 15% to 20% p. a. over the next five years The growth momentum in domestic and international travel expected is to receive a further boost with more budget airlines/lower air-fares, open sky policies and expected improvements in travel infrastructure (roads, airports, railways) Significant requirement of hotel stock and tourist infrastructure for the Common Wealth Games in New Delhi in 2010 21

ELECTRONICS HARDWARE The Electronics Hardware industry is expected to grow rapidly in the coming years Projected US$62 billion in 2010 from about US$12. 61 billion in 2005 -06 Global market opportunities in Electronics Manufacturing Services Contract Manufacturing: US$500 billion outsourcing opportunity by 2010 of which India can tap US$11 billion Design Services: US$7 billion projected by 2010 Component Exports: US$5 billion projected by 2010 India is emerging as the next hub for semiconductor manufacturing, Major international chipmakers are planning to enter India, National Semiconductor policy to provide an impetus Government expects to attract an investment of US$622 10 billion by 2010

AUTOMOBILES The Automobile Mission Plan envisages industry to grow 5 fold to US$145 billion by 2016 Vehicle production expected to increase from 11 million vehicles in 2006 -07 to 17 million by 2011 -12 National Automotive Testing and R&D Infrastructure Project (NATRIP), a US$400 million initiative, aims to create the state-of-art dedicated Testing, Validation and R&D infrastructure across the country 23

AUTO COMPONENTS Auto component industry in India has potential to grow at a CAGR of 13% to reach US$40 billion by 2015 India’s share in world Auto Components could grow from 0. 9% in 2005 -06 to over 2. 5% by 2015 Domestic market projected to grow at around 8 -10% p. a. in the next 10 years Exports projected to grow at over 30% p. a. Potential of over US$5 billion for investment in India 24

HEALTH CARE The industry is expected to grow at 15% p. a. to US$60 billion by 2010 Medical tourism is expected to become a US$2 billion industry by 2010 Significant growth in healthcare BPO: Expected to become a US$4. 5 billion industry by 2008 High growth in medical tourism, Cost of comparable treatment is on average 1/8 th to 1/5 th of those in western countries 25

Education to make India a Global Knowledge Hub The rapid growth of the Indian economy has resulted in a severe shortage of skilled and trained manpower. This has been highlighted as a huge challenge across sectors and most levels. It should be noted that Indian’s spend nearly $ 4 billion annually to send their children abroad for higher studies and technical training. This is largely due to the inability of education institution to improvise with changing trends and keep pace with the rate of growth. The real challenge therefore, is to expand capacities in higher education to keep ahead of the curve of rising domestic and global demand. There are three defining factors that will determine the growth path of high education sector in India: 26

v Entry of foreign University & Privatisation v Internet v Globalisation and WTO Foreign Universities and institutions have been allowed entry into India to establish franchise centers in the country, offering degrees or diplomas. Further, education tourism has emerged as a lucrative and growing business opportunity with India being a key contributor. 27

Mumbai Attack by Terrorists I would like to acquaint you with the recent attack by terrorists on Mumbai city. (26 th November, 2008) Taj Mahal Hotel 28

Chhatrapati Shivaji Terminus Mohammed Ajmal Amir Kasab. Out of the ten terrorists, one of them was caught alive 29

Vile Parle Bomb Blast Nariman House 30

31

About Mumbai City • Mumbai accounts for about • • • 5% of India’s GDP. Contributes 10% of all factory employment, 33% of all income tax collections, 60% of all custom duty collections, 20% of all central excise tax collections and 40% of India's foreign trade 32

Mumbai UPCOMING INFRASTRUCTURE PROJECTS • Mumbai Urban Infrastructure • • Project, Mumbai Urban Transport Project II, Metro Rail-first phase, Mumbai Trans harbour link, Truck terminal, Road widening, Construction of 16 new flyovers, 33 SEZs in Navi Mumbai, New airport at Navi Mumbai 33

Mumbai : Financial & Commercial Capital of India A melting pot of myriad languages and cultures and containing within itself a fascinating diversity of people, the city of Mumbai is not just the ‘Gateway of India’ but also the country’s ‘Financial cum Commercial hub’. Despite constraints and hardships, Mumbai is the ‘City of Opportunities’ – in areas like IT, ITES, Diamond and Jewelery, Commodity Trading, Tourism, Financial Services etc. 34

Mumbai is a city that values time and a city where multi-tasking and optimizing use of time have become ways of life. It is a city where apart from a few serious communal flare-ups, there has been a fairly harmonious co-existence of communities which have diametrically opposite views. Mumbai is a city that never sleeps. It is a city that provides an online statement of the triumph of human spirit over tremendous and overwhelming odds. To give a recent example the city bounced back and resumed normal life immediately after unprecedented floods caused by rains on 26 th July, 2005 and bomb blasts in suburban trains caused by terrorists on 11 th July, 2006. 35

Global Lifestyle Show & Trade & Investment Forum May 6, 7 & 8, 2009 Nehru Centre, Mumbai Organizer: Indian Merchants’ Chamber 36

Highlights: Global Lifestyle Show Trade & Investment Forum: Trade & Investment Opportunities Unique Opportunity for Networking Pre arranged One-on-One Business meetings Presentations on Business Opportunities in various Countries Showcase the varied lifestyle products from India and abroad on a single platform, with over 100 stalls laid out for the display Showcase the growing & fascinating trends of Indian Lifestyle Major Corporates from India and Multinational brands in the lifestyle segment are being invited to participate Fascinating platform for major lifestyle products namely Fashion Garments / Textiles, Leather Accessories, Jewellery, Cosmetics, Food & Food Processing, Home Appliances / Decoration, Gift Articles, Footwear, Electronics Gadgets, Holiday Package & many more…. Provide Networking opportunities for the participant with prospective buyers ( B to B & B to C Over 50, 000 Visitors expected 37

Visitor Profile Businessmen from India & abroad Owners of Leading Fashion Houses Fashion Designers Export Promotion Councils Product Manufacturers Exporters / Importers Wholesalers / Distributors / Marketing heads of Lifestyle products. Non Resident Indians Representatives of Major Chambers of Commerce, Representatives of Foreign Consulates 38

Supporting Organisations Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) Agricultural and Processed Food Products Export Development Authority (APEDA) Council for Leather Exports (CLE) Maharashtra Industrial Development Corporation (MIDC) Maharashtra Economic Development Council (MEDC) Government of Maharashtra Government of India 39

Attractive Package for Overseas Companies Participating in Expo & Conference Special Package of US$ 2500 includes: 3*3 sq mtrs stall complimentary Complimentary stay for 3 nights (5, 6 & 7 May 2009) in an a centrally located Business Hotel Accommodation inclusive of Taxes & Breakfast Transfers between Airport-Hotel-Airport Transfers between Hotel Exhibition Venue-Hotel One-on-One Business Meetings Opportunity to make presentations on Business Opportunities in your Country Complimentary Pass to attend the Conference -Complimentary Lunch & Gala Dinner 40

Participation in Conference Special Package of US$ 800 includes: Complimentary stay for 3 nights on single occupancy (5, 6 & 7 May 2009) in a centrally located Business Hotel Accommodation inclusive of Taxes & Breakfast Transfers between Airport-Hotel-Airport Transfers between Hotel Exhibition Venue-Hotel One-on-One Business Meetings Opportunity to make presentations on Business Opportunities in your Country Registration fee included Complimentary Lunch & Dinner 41

For details contact Dr. Renu Shome, Jt. Secretary, IMC Tel: 91 22 2281 8352 (D) /22046633 Ext: 123 Fax: 91 -22 -22048508 / 22838281 M: 91 9821016552 E-mail: renu_shome@imcnet. org Mr. P N Mogre, Secretary General, IMC Tel: 91 22 22046633 Ext: 102 M: 91 9820056598 E-mail: pnmogre@imcnet. org Ms Trupti Nirmal, Sr. Asst. Secretary, IMC Tel: 91 22 22046633 Ext: 121 Email: gs 2@imcnet. org 42

43