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Population – 1.23 Billion / Capital – New Delhi / 29 states
Continent - Asia / Region - South Asia / Indian subcontinent
Currency – Indian Rupee (INR)
GDP – $ 1.8 Trillion
GDP (by PPP) - $ 4000 Trillion
GDP Growth – 4.7 %
GDP Per Capita - $ 1500
GDP By Sector – Agriculture ( 13.7%) / Industry – (21.5%) / Services - 64.8%)
Inflation (CPI) – 7.4 % ( WPI being 5.4%)
Unemployment – 8%
Main Industries Agriculture, Petroleum products, Chemicals,
Pharmaceuticals, Software, Textiles, Steel, Transportation Equipment,
Machinery, Cement, Mining, Construction
Ease of Doing Business – 134th
•
1.2 billion people and the world’s fourth-largest economy
•
After 67 years of independence, the country has witnessed huge agricultural
revolution that has transformed the nation from a grain importer into a global
agricultural powerhouse that is now a net exporter of food.
•
Life expectancy has more than doubled, literacy rates have quadrupled.
•
Will soon have the largest and youngest workforce the world.
•
In the middle of a massive wave of urbanization as some 10 million people
move to towns and cities each year in search of jobs and opportunity which
is the largest rural-urban migration of this century.

Till the 90’s India depended on West Asia for oil, South Africa for gold, US
for technology, South east Asia for vegetable oil etc.

To buy these items from the world market, we needed US dollars - the global
currency of trade.

Since 1960s, India depended on the Soviet Union for exports thereby missing
the opportunity to develop good economic relationships with the US and
Western Europe.

However, when Soviet Union cracked and split into multiple nations, India had
a
problem
as
the
exports
went
down
significantly.
Added to this woe, the 1991 war with Iraq led to destruction of India’s oil
imports and the prices shot up substantially.

This had a huge effect on Indian economy as India’s primary buyer was gone
and on the other hand, our primary sellers were in war.

Thus, 1991 was the year of perfect storm, with a domestic political crisis
inside and an economic crisis outside.

This took India to IMF, where the country pledged its gold reserves in return
for an interim loan of $3.9 billion - 67 tons of gold was taken in two aircraft
to London & Switzerland.

In 1991, Under the New Prime Minister, India started its economic reforms of
the 1990s abolishing the oppressive licensing controls on industry and foreign
trade, allowed the market to determine the exchange rate, drastically reduced
protective customs tariffs, opened up to foreign investment, modernised the
stock markets, freed interest rates, strengthened the banking system and
began privatisation of public enterprises.

The new Govt accepts and understands the challenging situation due
to Sub 5% growth + high inflation , continued slow-down in many
emerging economies a threat to sustained global recovery.

Recovery seen with the growth rate of world economy projected at 3.6
per cent in 2014 vis-à-vis in 2013.

The first Union Budget for 2014-15 by the new Govt has various
steps announced which are only the beginning of the journey towards
a sustained growth of 7-8 per cent within the next 3-4 years along
with macro-economic stabilization.

Various economic initiatives as well as focused approach towards the
Industry, Investment and Infrastructure has also been identified in the
recent budget.

India is the only large emerging market (EM) that doesn’t follow the route of
Inflation Targeting.

Other than China, which targets the exchange rate, all large EMs target
inflation.

Inflation targeting: is an economic policy in which a central bank estimates
and makes public a projected, or "target", inflation rate and then attempts to
steer actual inflation towards the target through the use of interest rate
changes and other monetary tools.

This is one of the main reasons why India saw a rise in inflation after the global
financial crisis, while other EMs experienced a downward pressure on prices.

After 1990, inflation targeting was adopted by 34 countries. The OECD
countries were among the first to adopt it and, after 2000, a number of
emerging economies such as Brazil, Chile, Colombia, South Africa, Thailand,
South Korea, Mexico, Peru, the Philippines, Indonesia, Turkey and many east
European countries followed suit.

India had registered over 9 per cent growth for a few years before the global
financial meltdown of 2008 pulled it down.

The economic growth rate slipped to decade's low of 4.5 per cent in 2012-13.
It inched up to 4.9 per cent in 2013-14. In the current fiscal the growth rate is
expected to touch 5.5 per cent.

Unemployment Rate in India decreased to 5.20 % in 2012 from 6.30 % in 2011.

Unemployment Rate in India averaged 7.58 % from 1983 until 2012 and reached
the all time high of 9.40 % in 2009.

As of June’14, it is 8.8%
INDIA’S INWARD INVESTMENT SCENARIO
FDI INFLOWS
35.8
(US$ bn)
32
27
26.7
22
22.8
24.2
16.4
2.4
4
2.6
2.1
3.7
6
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Rich demographic dividend
Huge domestic market
• India has a very young
population - Over 62% of
India’s population is in the
age-group of 15-59 years
• India 2nd largest populated
country
India to be fifth largest
consumer market by 2025
2005
5%
population middle class
2025
41%
population
middle class
Emerging knowledge hub

India has third largest
technical and scientific
manpower pool in the
world

Prowess in Information
technology
is
well
acknowledged
DEFENCE
Composite cap in manufacturing
increased to 49% from 26%, with
full Indian management and control
through the FIPB route; FDI beyond
49% allowed under approval route
on case to case basis
INSURANCE
Composite cap in insurance sector
increased to 49% from current level
of
26%,
with
full
Indian
management and control through
the FIPB route.
eBiz
CONSTRUCTION
Requirement of the minimum built
up area and capital conditions for
FDI reduced; Projects which commit
30% the total project cost for low
cost affordable housing exempted
MANUFACTURING
Manufacturing units with FDI under
the automatic route allowed to sell
their products through retail,
including e-commerce platforms,
without any additional approval.
Vision is to transform the business environment by enabling
fast and efficient access to G2B services through an online
portal. All Central Government Departments and Ministries will
integrate their services with eBiz by December 31, 2014
TAIWANESE INVESTMENTS IN INDIA
As per fdiMarkets (Financial Times), Taiwanese outward investments
third highest in India after China & Vietnam, in terms of number of
projects and number of jobs created
No of FDI projects
81
Total jobs created
27,129
Average project size
(jobs)
334
FDI Projects from Taiwan into India
Period – January 2003 – June 2014
Top Sectors
Electronics
- Communications
- Business Machines & Equipment
- Electronic Components
- Semiconductors
Industrial Machinery, Equipment &
Tools
Software & IT services
Transportation
Others
- Metals
- Chemicals
- Food & Tobacco
- Textiles
- Rubber
Success Stories - Many Taiwanese brands
have become household names in India
TAIWANESE INVESTMENTS IN INDIA
Destination
state
Projects
companies
Total
Average
Maharashtra
16
12
2,426
151
Tamil Nadu
10
8
12,636
1,263
Karnataka
9
8
838
93
Delhi
8
8
707
88
Gujarat
5
3
2,732
546
Andhra
Pradesh
3
3
1,392
464
Haryana
2
2
1,042
521
NCR
GUJARAT
MAHARASHT
RA
ANDHRA
PRADESH
KARNATA
KA
TAMIL
NADU
No of Jobs

India never invaded any country in her last 100000 years of history.

When many cultures were only nomadic forest dwellers over 5000 years ago, Indians
established Harappan culture in Sindhu Valley (Indus Valley Civilization)

The name 'India' is derived from the River Indus, the valleys around which were the
home of the early settlers.

Chess was invented in India.

Algebra, Trigonometry and Calculus are studies, which originated in India.

The 'Place Value System' and the 'Decimal System' were developed in India in 100
B.C.

India is the largest democracy in the world, the 7th largest Country in the world, and
one of the most ancient civilizations.

India has the largest number of Post Offices in the world.

The world's first university was established in Takshila in 700 BC. More than
10,500 students from all over the world studied more than 60 subjects.

Ayurveda is the earliest school of medicine known to mankind. The Father of
Medicine, Charaka, consolidated Ayurveda 2500 years ago.

India was one of the richest countries till the time of British rule in the early
17th Century. Christopher Columbus, attracted by India's wealth, had come
looking for a sea route to India when he discovered America by mistake.

The value of "pi" was first calculated by the Indian Mathematician Budhayana,
and he explained the concept of what is known as the Pythagorean Theorem. He
discovered this in the 6th century.


Until 1896, India was the only source of diamonds in the world

India exports software to 90 countries.
The Natural Resource Curse
The Economic
Growth
2010
2011
2012
2013
The Economic Growth of
the World
5.1
3.9
3.2
3.5
ASEAN 5 (Indonesia,
Malaysia,
Philippines,
Thailand and Vietnam)
7.0
4.5
5.7
5.5
The Economic Growth of
the Indonesia
6.2
6.5
6.3
5.8
18
Factors
 Fuel subsidy
 Growing middle class
 Commodity boom
Problems
 Current account deficit
 Fiscal deficit
 Middle income trap
Creating value added industries by increasing the
share of manufacturing in the GDP
Increase the Investment (I) in
Y=C+I+G+NX

Indonesia is one of the 25 largest
90
exporting
countries
80
(UNCTAD, Global Value Chains and
70
Development 2010)
60
developing
82
68
56
52
50

Indonesia’s level of participation in
40
the GVC is 44% lower compared to
30
the other South East Asian countries.
As
a
results,
Indonesia
as
an
exporting countries for natural and
raw resources has a lower value
44
Singapore
Malaysia
Philippines
Thailand
Indonesia
20
10
0
added relative to the other ASEAN-5
countries.
Sumber: Global Value Chains and Development 2010
Insufficient Capacity to
Innovate, 2%
Tax Regulation, 5%
Foreign Currency
Regulations , 5%
Corruption, 14%
Crime and Thieft, 4%
Poor Public Health , 2%
Inadequate Educated
Workforce, 4%
Inefficient Government
Bureaucracy, 15%
Government Instability, 5%
Tax Rates, 3%
Inadequate supply of
Infrastructure, 9%
Inflation, 6%
Restrictive Labor
Regulations, 7%
Poor Work Ethic in National
Labor Force, 7%
Access to Financing, 5%
Policy Instability, 5%
Source: Global Competitiveness Report 2013-2014
New mining law and labor law: wrong signal?
Fiscal
 Decrease the cost of fuel subsidy, increase
budget for infrastructure
Monetary
 There is no pressure for Indonesia to raise the
interest rate at 7.5%; the inflation are
maintained at steady levels on 4.82% in May
2014



Investment expansion in Automotive
Industries.
By end of June, the country’s foreign exchange
reserves have expanded marginally to USD
107.7 billion from USD 107 billion in May 2014.
Demographic bonus
Total Population
based on 2010 census
is 237.5 million
people. The
population in
Indonesia is
dominated by people
in the age of 0 – 19
years old. This
condition represents
high level of birth
- The India-Taipei Association (ITA) has been
established in Taipei since 1995 to promote nongovernmental interactions between India and
Taiwan.
- In 2002, Taiwan and India signed the Bilateral
Investment Promotion & Protection Agreement.
- In 2003, the Ministry of Economy Affair set India
as the 10 major target market.
- India was Taiwan’s 16th largest trading partner
as of 2013. It was Taiwan’s 14th largest export
market and 16th largest supplier of imports.
- More than 70 Taiwanese enterprises have
invested or set up factories in India, mostly in
computer industry and shoes industry. The
accumulated amount of investment was more than
USD 1.4 billion.
- Major Taiwanese
exports to
India include
IT products,
machinery and
other electronic
products.
- The top 5 items
India exports
to Taiwan are
oil, iron and
steel, organic
chemical,
cereal and
cotton.
- Indonesia was Taiwan’s 11th largest trading
partner. It was Taiwan’s 13th largest export
market and 11th largest supplier of imports.
For Indonesia, Taiwan is its third largest
trading partner behind Japan and China.
- Indonesia enjoyed USD 2 billion trade surplus
with Taiwan in 2013. The number is increasing
significantly every year from 2003, when the
surplus was only USD 1.1 billion. On average,
Indonesian trade surplus with Taiwan grew by
37% annually in the last 10 years.
- Taiwan's exports to Indonesia are mainly in
form of gasoline, diesel, steel, textiles, IT
products such as computers and mobile
phones.
- Indonesian exports to Taiwan are mainly in form
of gas, coal, rubber, tin, wood products,
electronic equipment and paper industry
material. It is also one of Taiwan’s most
important supply sources of oil, gas and coal.