Overview of Business in India

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• Overview of Business in India
• March 12 2009

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• Presented and facilitated by
• Suhas Kulkarni
• 1 502 298 8710
• suhas_at_induscommercial.com
• www.induscommercial.com

• Joint Ventures and technology transfers
• Marketing, Sales and distribution channels
• Export and Import facilitation
• Cultural awareness training

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• History
• Geography
• Culture
• Religion/s

• Laws, rules regulations
• Variations / interpretations
• How business is conducted
• Stability

• Motivations
• Economic Policies
• Political policies
• Future directions

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Springboard to Asia
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Some Relevant Facts
Socialistic pattern of society Secular country
but with all the major religions in the world
practiced Education is paramount Respect for
knowledge, elders, position Family influential
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Springboard to Asia
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DRIVERS OF GROWTH

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China
India
Roads ? Power ? Phones ? Legal
System ? Intellectual Property ? Risk
Capital ? CEO Market ? Tailored
to MNCs Indigenous
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Positives

• English spoken everywhere
• Food is quite familiar
• Robust Legal system protects investors (33)
• Stable Democracy
• Inviting and Encouraging environment
• Educated work force
• Established and open Stock Exchange
• Access to cross border trade (79)

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Challenges

• Bureaucracy (120th among 178 countries)
• Starting and closing a business, bankruptcy
• Governmental dealings e.g. Registering property
• Weather
• Rising wages / Attrition
• Infrastructure (Roads, Electricity,
  Transportation)
• Overburdened legal system e.g. enforcing
  contracts

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IT Value Chain
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Outsourcing boom
Source - Ministry of Commerce, GOI
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Growth Q2 06/07 07/08

• Mining quarrying at 7.7
• Manufacturing at 8.6
• Electricity, gas water supply at 7.3
• Construction at 11.1
• Trade, hotels, transport and communication at
  11.4
• Financing, insurance, real estate and business
  services at 10.6 per cent
• Community, social and personal services at 7.8
• Agriculture, forestry fishing at 3.6

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Foreign Direct Investment increase by 185

• Electrical equipments (including computer
  software electronics)
• Services sector (financial non-financial)
• Telecommunications (radio paging, cellular
  mobile, Basic telephone)
• Transportation industry
• Fuels (power plus oil refinery)
• Chemicals (other than fertilizers)
• Construction activities
• Drugs pharmaceuticals
• Food processing industries
• Housing and real estate

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Potential Areas
Insurance Pensions Luxury Goods Logistics
Manufacturing Non-conventional Energy
Pharmaceuticals Power Real Estate Resource
Conservation Management Group Retail Rural
Development Small and Medium Enterprises (SME)
Sports Taxation Telecom Tourism Urban
Development Water Resources

• Agriculture
• Banking Financial Institutions
• Biotechnology
• Capital Market
• Chemicals
• Corporate Laws Governance
• Defense
• E-Business
• Education
• Electronics Hardware
• E-Entertainment Alliance
• Entertainment
• Environment
• Food Processing
• Foreign Trade Health
• HRD
• Hydrocarbons
• Information Technology
• Infrastructure

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Potential Areas

• Airport and Ground Handling Equipment
• Computers and Peripherals
• Education Services
• Electric Power Generation, Distribution and
  Transmission Equipment
• Food Processing Cold Storage Equipment
• Machine Tools
• Medical Equipment

• Mining and Mineral Processing Equipment
• Oil and Gas Field Machinery
• Pollution Control Equipment
• Safety and Security Equipment
• Telecommunications Equipment
• Textile Machinery
• Water Treatment

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Healthcare

• Spending increase projected from 20b to 60b in
  5 years
• of beds 1.5/1000 as compared to 7.4/1000 in USA
• of physicians 0.5 compared to 1.5

• Medical education training
• Medical, Nursing paramedical training
  institutes
• Trans-border movement of trained manpower
• Health tourism 22 /yr
• E-enabled healthcare
• Telemedicine
• Health related outsourcing
• Medical transcription
• Clinical Trials
• Medical Equipment
• Health Insurance 0.9 of the population

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• How do I engage?

Exports Market Penetration Strategic
Engagement .. Market Share / Expansion
Global Sourcing Costs / Access to markets
Outsourcing . Cost / labor arbitrage
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• Exports

Shipping per sale / Sales agent / Stock and
Sell Partner / Master Distributor / Sub
Distributor
US export laws / Documentation /
Shipping/Customs Import duties / Logistics /
Payment (LOCTerms)
IP protection / Contracts Market Control
http//www.unzco.com/basicguide/toc.html http//ww
w.exportmichigan.com/cg_ap_india_exporting.htm
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Strategic engagement

• Joint Ventures
• Wholly Owned Subsidiaries

• IP Protection / Market Control
• Access to domestic export markets
• Stable alternative base Tax benefits

• Site Location Facilities
• HR Operations Quality
• Market expansion

• Licensing agreements
• Ownership Company formation (legal entity)
• Investment Repatriation (RBI regs.)