The Indian scenario

1


The Indian scenario By Prem Behl Chairman
Exhibitions India Group

2

Index

• The Indian Economy An Overview
• History of the Indian exhibitions industry
• Exhibitions Venues in India
• Doing business in India

3

1.
The Indian Economy An Overview

4

The Indian Economy An Overview
The fastest rise in incomes.
rise in per capita income

5

The Indian Economy An Overview
The biggest drop in inflation
decrease in inflation

6

The Indian Economy An Overview
Have prompted a spending boom
growth in consumption expenditure

7

The Indian Economy An Overview
as well as the highest level of savings
Household savings as of GDP

8

The Indian Economy An Overview
The economy is riding high
annual growth in GDP

9

The Indian Economy An Overview
Additional economic indicators

• India is the 4th largest economy in the world
  as measured by purchasing power
• Between 1980 and 2003, Indias economy grew at
  an average rate of 5.7
• During the same period, Indias real income per
  head grew by 125
• Dr. Manmohan Singh, Finance Minister in 1991
  and architect of Indias economic reforms, is
  the current Prime Minister

10

The Indian Economy An Overview

•  
• India has a consumer base of 1.2 billion
  people, and
•  
• The youngest population of the world hence
  sustainable, long term growth is assured
•  
• Modern (organised) retail converging with the
  consumption boom will open up many
  opportunities for small and mid-size consumer
  companies
•  
• With upper income and rich classes growing
  rapidly and deprived classes actually
  falling, Indias income demographics will
  actually be unrecognizable by the end of the
  decade

11

The Indian Economy An Overview
  Home ownership is on the rise with 5 Million
homes added every year, approximately 1.5
Million new homes added in urban areas Mobile
telephone subscriber base has grown from 0.3
Million in 1996 to over 55 Million currently
expected to grow to 200 Million by 2008   13
Million credit card holders currently growing
at 40 p.a.   Passenger car sales of USD 5
Billion in 2004, more than twice the level of
sales five years earlier  

12

The Indian Economy An Overview
Growth at the margin will close the gap between
Indias percapita consumption and Chinas
China India

• Private consumption currently accounts for 64 of
  Indian GDP higher than Europe(58), Japan (55)
  and China (42)
• Emerging consumerism from one of the worlds
  youngest population

Population Dependency Ratio Ratio of Pop aged
65 years or over to the population aged 15-64
(Source Morgan Stanley)

13

The Indian Economy An Overview
Indians are Younger than the World

14

The Indian Economy An Overview
India in 2050
..with the highest growth rate of BRICs
India will be the 3rd largest economy.
BRICs Brazil, Russia, India, China Source
Goldman Sachs, Dreaming with the BRICs

15

The Indian Economy An Overview
Analysts View of the Indian Economy

• India is on the cusp of something big.I am as
  enthusiastic about India as I was about China in
  the late 1990s. What excites me most is the
  potential for an increasingly powerful internal
  consumption dynamic the missing link in most
  development models.
• Stephen S. Roach, Chief Economist, Morgan
  Stanley Equity Research Global, October 31, 2005
• A dynamic and open India would have an important
  impact on the world economy. If India continues
  to embrace globalization and reform, Indian
  imports could increasingly operate as a driver of
  global growth as it is one of a handful of
  economies forecast to have a growing working-age
  population over the next 40 years.
• IMF, World Economic Outlook, September 2005

16

2.
History of the Indian exhibitions industry


17

History of the Indian exhibitions industry

• The history of Indian exhibitions dates back
  hundreds of years
• Take, for example, Indias huge Pushkar Mela
  now a great tourist attraction
• Thousands of camels are traded on the sands of
  Rajasthan annually, even today

18

History of the Indian exhibitions industry

• Soon after independence, in the late 1940s, the
  Government set up the Directorate of Exhibitions
  under the Ministry of Commerce
• An exhibition ground in New Delhi was developed
  to host the Railways exhibition in 1952 to mark
  the centenary of railways in India

19

History of the Indian exhibitions industry

• 1970
• The Trade Development Authority (TDA) was set up
  in 1970 under the Ministry of Commerce
• 1972

• The fair ground was christened Pragati Maidan
• Pragati Maidan hosted Asia72 third Asian
  International Trade Fair coinciding with Indias
  Silver Jubilee Year of Independence

20

History of the Indian exhibitions industry

• 1977
•  
• The Trade Fair Authority of India (TFAI) is
  formed by an Act of Parliament with the aim of
  organising trade shows
•  
• 1992
•  
• The India Trade Promotion Organisation (ITPO) is
  formed by merging the Trade Development
  Authority (TDA) with the Trade Fair Authority
  of India (TFAI)

21

3.
Exhibitions Venues in India

22

Exhibitions Venues in India

• Exhibition Venues
• International Airports

• Exhibition Venues
• International Airports

23

Exhibitions Venues in India
New Delhi

24

Exhibitions Venues in India
New Delhi

• Pragati Maidan is a massive venue of 149 acres
  in the heart of Indias capital city
• The venues 16 exhibition halls and other
  facilities are ageing and far from being
  world class
• The ITPO has proposed to completely modernize
  and revamp the venue by 2010 (subject to
  approval by the Commerce Ministry)

25


26

Exhibitions Venues in India
Greater Noida

27

Exhibitions Venues in India
Mumbai

28

Exhibitions Venues in India
Chennai

29

Exhibitions Venues in India
Bangalore

30

Exhibitions Venues in India
Hyderabad

31

Opportunities Aplenty

• The need for quality trade shows and venues is
  apparent
• If India and China are Asias emerging giants,
  then India is falling terribly behind in its
  trade fair development
• China has approximately 150 exhibition centers
  and 3 million square meters of exhibition space
• India, according to our calculations, has 6
  dedicated exhibition venues and 90,000 square
  meters of indoor exhibition space this is
  estimated to increase by 40 in 3 years

32

4.
Doing business in India

33

Doing business in India

• There exists a myth that doing business in
  India is difficult. With the right Indian
  partners, this is not at all the case
• United Nations World Investment Report 2005
• A TNC (transnational corporations) survey has
  ranked India as the third most attractive
  investment destination
• In the same report, a UN expert opinion group
  ranked India as the second most attractive
  investment destination

34

Doing business in India

• Indian Trade Promotion Organisation (ITPO)
• In order to organise a trade show in India, an
  organiser must gain approval from the ITPO
• For leading trade show organisers, this is a
  straight forward and simple process
• This approval consists of a Customs
  Notification allowing the duty free temporary
  import of goods to be displayed

35

Doing business in India

• Customs
• In line with international practices, there
  exists a well established system allowing
  foreign participants the facility of duty
  free temporary imports for exhibitions
• India is a signatory to the ATA convention. ATA
  Carnets are accepted at all major exhibition
  destinations in India

36

Doing business in India

• Freight Handling
• There are professional and experienced
  exhibition logistics companies that provide a
  full range of services
• The scope of services range from customs
  clearance to on site handling with modern
  mechanical handling equipment and a skilled
  work force
• These logistic service providers have an
  extensive international network

37

Doing business in India

• The following is a brief list of leading freight
  forwarders
• RE Rogers India Pvt. Ltd.
• Translink Express (I) Pvt. Ltd.
• Schenker India Pvt. Ltd.
• Orient Marine Lines Pvt. Ltd.
• The following is a brief list of leading stand
  constructers
• Pavilions Interiors India Pvt. Ltd.
• PICO International Exhibitions Pvt. Ltd.
• Meroform (India) Pvt. Ltd.
• Kingsmen Fairtech International Pvt. Ltd.

38

Doing business in India
Reforms in Exchange Control Taxation

• Exchange Control
• All investments can be on a repatriation basis
• Original investment, profits and dividends can be
  freely repatriated
• Foreign investors can acquire immovable property
  incidental to or required for their activity
• (Source Ministry of Commerce Industry,
  Government of India)

39

Doing business in India
Reforms in Exchange Control Taxation

• Taxation
• Companies incorporated in India are treated as
  Indian companies for taxation
• There exists a Double Taxation Avoidance
  Agreement with 65 countries
• Peak Custom duty has been reduced to 15
• Corporate Tax has been reduced to 30
• Tariff to be aligned with ASEAN levels
• Value Added Tax introduced in some States from
  1st April 2005
• Transparency in Tax Structure Online/ ICT
  Applications
• (Source Ministry of Commerce Industry,
  Government of India)

40


Thank You

41

The Indian Economy An Overview