Country Overview - India 1 Introduction 2 Country Trends 3 Infrastructure – Transportation etc 4 Housing Market 5 Education 6 Fun Facts Indian Economy •India’s economy has been one of the stars of global economics in recent years, growing 9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. GDP Growth Rate Growth rate % 10 8 6 4 USA 2 0 -2 UK 2003 2004 2005 2006 -4 -6 -8 Year 2007 2008 2009 India Indian IT sector – A success story Revenues - 2008 ($ US billion) •The Indian IT sector is growing at a growth rate of 11% year on year as of 2008. •Indian IT-BPO sector grew by 12 Sub total per cent in FY 2009 to reach US$ India India (Internation Domestic Total 1998 71.7 billion in aggregate revenue Based Centric al) (including hardware). Of this, the software and services segment IT Services 23 7 30 8.5 38.5 2.1 accounted for US$ 59.6 billion. Software 8 2 10 9.5 19.5 0.6 •IT-BPO exports (including Products hardware exports) grew by 16 per IT-enabled cent from US$ 40.9 billion in FY 15 2 17 2 19 0.4 Service 2007-08 to US$ 47.3 billion in FY 2008-09. E-business 4 1 5 5 10 0.2 •Indian IT services market is estimated to remain the fastest Total 50 12 62 25 3.3 87 growing in the Asia-Pacific region with a CAGR of 18.6 per cent. •According to NASSCOM, domestic IT market (including hardware) reached US$ 24.3 billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 •India's IT sector accounts for 5.5 per cent of gross domestic per cent. product, up from just 1.2 a •India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 decade ago, has shown sustained million units in 2009, aided by a surge in demand for laptops •The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units ability to take out costs. and constitute a third of the total PC market. Infrastructure Transportation Banking Real Estate •The Growth Rate of the Infrastructure Sector in India GDP has grown at the rate of 8.5% between 2006 and 2010. •India’s spending on infrastructure is expected to go up from US $ 24 billion in 2005 to US $ 47 billion in 2009. •The government is targeting an investment of US$ 20.38 billion over the next two years (2010-2011) in the infrastructure sector •Government plans to invest $320 billion for the upgrades of ports, railroads, highways and airports over the next 15 years. Ports •The government has identified 276 projects entailing an investment of US$ 12 billion. •According to the Planning Commission, there is an investment opportunity of US$ 25 billion by 2011-12 in India's shipping and ports sectors •The ports sector would provide a US$ 13.75 billion investment opportunity, shipping and inland waterways are likely to present a US$ 11.25 billion investment opportunity. Airports •The government plans to attract private players through the PPP mode for the development of over 300 airports and airstrips. It would invest US$ 9 billion to modernize existing airports by 2010. •The Civil Aviation Ministry plans to develop 35 Greenfield airports across India by 2010 with an investment of US$ 35 billion for the proposed airports. Railroads •The Indian Railways took up the most ambitious ever annual plan for fiscal 2008-09, entailing an enormous investment of US$ 7.91 billion, registering a 21 per cent increase over the previous year. •The plan includes a total budgetary support of US$ 1.66 billion including US$ 163.33 million to be provided from the Central Road Fund. Indian Infrastructure Roads •During 2007-08, US$ 1.86 billion had been provided for the national highways and for state roads. Of this amount, US$ 1.5 billion is for national highways and US$ 0.36 billion for state roads. An amount of US$ 0.04 billion has also been allocated during 2007-08 for the development of state roads. •According to a consultation paper by the Planning Commission, investment in the roads sector during the Eleventh Plan is projected at US$ 93.11 billion. Electricity •During the Eleventh Plan, the government aims to add power generation capacity of about 70,000 MW and provide electricity to all un-electrified hamlets and all rural households through the Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY). Telecom and IT •The Eleventh Plan envisages reaching a telecom subscriber base of 600 million, with 200 million rural telephone connections and attaining a broadband coverage of 20 million and 40 million Internet connections. These are the major government initiatives which are going to be implemented (some have already started). Electricity Banking • Indian banking sector has been growing at a tremendous pace. •There are around 222 commercial banks in India (of which 133 RRBs). •Indian banking sector is highly vibrant Out of the 222 there are many foreign banks which have set up facilities in India, some of these banks are Deustchebank, Royal Bank of Scotland, Citibank etc. •Government aims to add power generation capacity of about 70,000 MW and provide electricity to all unelectrified hamlets and all rural households through the Rajiv Gandhi Grameen VidyutikaranYojna. •The estimated increase in capacity is 227GW by 2012 from existing 132GW. Infrastructure Telecom & IT •The country is ranked third worldwide in terms of having the largest telecommunication network, after China and USA. •One in every three people in India connect to people using this network. •The Information technology is an ever growing industry with a 11% growth rate year on year. Real Estate Government Initiatives •Government has been taking a lot of initiatives in terms of infrastructure. • Government plans to invest $320 billion for the upgrades of ports, railroads, highways and airports over the next 15 years •The real estate market is estimated to grow to US $ 1400 billion •The Indian real estate sector is highly vibrant with a lot of real estate opportunities. •It is the right time to invest in the Indian real estate market as the real estate market is ever growing. Education System •The Indian schooling system is considered to be the best in the world •The total no of schools in India are close to 1.2 million. •The focus in India is shifting towards the ICSE standards and most of the schools in cities are providing this form of education. •1% of the total schools are internationally acclaimed. •Each year 5 new schools are started in different locations in the country City Schools Avg Fees (USD) (At the Time of Admission Incl. of Reg , Appl. Charges and Security Deposit) Delhi American Embassy School, DPS International, Pathways World School, The British School, G.D. Goenka World School 12000-25000 Mumbai American School of Bombay, Dhirubhai Ambani International School, Ecole Mondiale World School, Fazlani L'Academie Globale, Oberoi International School, Pranjali International School, RBK International Academy,RIMS International School and Junior College, Ryan International School, Witty International School 14000-42000 Chennai American International School, The Velammal International School, APL Global, 12000-20000 Kolkata Calcutta International School, The Cambridge School, 2000-12000 Bangalore Bangalore International School, Canadian International School, Indus International School, Mallya Aditi International School, Stonehill International School, The International school, TREAMIS World School, Trio world school,, 12000-25000 Health and Medical Facilities India has a very good healthcare system. Healthcare is easy and affordable. Each city has at least 4-5 good hospitals comparable to international standards City Leading Private Hospitals (Top 5) Delhi Apollo Hospital, Batra Hospital, Escorts Heart Institute & Research Centre, Fortis Hospital, Ganga Ram Hospital, Mumbai Jaslok Hospital, Wockhardt Hospital, Fortis Hiranandani Hospital, St George Hospital, Tata Memorial Hospital Chennai Apollo Hospital, Stanley Hospital, Vijaya Hospital, Malar Hospital, Madras Medical Mission Kolkata Apollo Gleneagles Hospital Ltd., Columbia Asia Hospital, Westbank Hospital, Rabindranath Tagore International Institute of Cardiac Sciences, Advanced Medicare & Research Institue Ltd (AMRI) Bangalore Apollo Hospital, Wockhardt Hospital, St. Johns Medical College, Columbia Asia Hospital, Victoria Hospital Health Insurance Health insurance industry in India is still growing. The cost of health insurance is cheap in comparison to other developed countries. The major health insurance companies in India are: National Insurance Company New India Assurance United India Insurance ICICI Lombard Tata AIG Royal Sundaram Star Allied Health Insurance Cholamandalam DBS Bajaj Allianz Apollo AG Health Insurance Company These service providers have a presence in all major cities and a tie-up with most leading hospitals in India. For a family of 4, the insurance premiums range from USD 400-500/annum for insurance cover of up to USD 10000 for each member. For a single person age between 25-40 years, the premium is USD 20-30/month per USD 2000 insurance cover and for age 40 years it is between USD 40-50/annum per USD 2000 cover Car Buying/Leasing Purchasing of a car non residents can only be done if they have a work permit Car can only be rented with a driver. (Taxi) Driving in India is not easy ! A driver is recommended. Most of the popular cars are available in India. Utilities Furnishings Real Estate Lease Terms Deposits / Customs •Facilities are very good in major cities of India. •Cost of obtaining facilities is cheap. •Quality is comparable with international standards • It is recommended to go through a professional house for utility hook-ups as the Utilities process is very cumbersome and it more people dependent and not process dependent Lease Terms •Easy to get in/out of lease. •Standard lease terms across India with slight variations. •Sublets are allowed •International brands are available very easily •Excellent domestic products are also available. •Total cost of ownership is low • The complete home furnishings are also available Furnishings for rent for short term assignees Real Estate Deposits / Customs •Deposit amounts vary by city. •Best practice is to pay by cheque, obtain receipts and also inform the landlord early. •Rent is paid by the 5th of the month. Real Estate Trends City Apt 1-Bd (USD) Apt 2-Bd (USD) Security (number of months of rent) Commission Maintenan ce (USD/sq .ft.) Delhi 3500 5400 2 2 months rent 1.2-1.8 Mumbai 3500 5400 6 2 months rent 1.2-1.8 Chennai 1800 2800 10 1 month rent Kolkata 1400 2400 6 1 month rent Bangalore 2500 3900 10 1 month rent 0.4-0.6 0.30-0.45 0.8-1.2 Fun Facts The Indian film industry makes more films each year than the United States, France, Italy, and the People`s Republic of China. Yoga has its origins in India and has existed for over 5,000 years. There are more than 1700 languages in India. Over 29 languages are spoken by a million people or more. More than 350 million Indians speak English. The mobile users of India grows every month with about 2.5 million people There are over 1500 software companies in Bangalore India The number of births that occur in India each year is higher than the entire population of Australia About 50% of the residents in India are under 25 years old India is home to about 200 million cows. You will have a chance to see a few when you drive on Indian roads !!!