Czech Asian Forum 3 March 2008 Presentation by Indian Embassy

1. Czech Asian Forum 3 March 2008 Presentation by Indian Embassy

3. Why Invest in India? India has among the highest returns on foreign investment India is among the two most attractive FDI destinations in the world US Department of Commerce A T KearneyFDI Confidence Index 2007 By 2032, India will be among the three largest economies in the world BRIC ReportGoldman Sachs, October 2003 “India is a developed country as far as intellectual capital is concerned.” “We came to India for the costs, stayed for the quality and are now investing for innovation.” Jack WelchGeneral Electric - Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005

4. India- Fastest Growing Free Market Democracy • Indian economy 4th largest in the world as measured by PPP • 12 largest in the world measured in US $ exchange rate terms with a GDP of US$ 1 trillion (2007) • Exports: US$ 98.3 billion (April-Nov 07) growth of 22 %. Export growth averaging 25% p.a. over the past three years. • Imports: US$151 billion (April-Nov 07) growth of 27% • India’s economic engagement with the rest of the world is slated to exceed US$ 700 billion in 2010.

5. India- Fastest Growing Free Market Democracy • India's net foreign exchange reserve expected to reach US$ 300 billion by end March 2008. • The total wealth, measured in terms of cumulative market capitalization of all listed companies on Bombay Stock Exchange, has exceeded US$ 1.7 trillion marking a ten fold surge in the total market value in just four and half years

6. India: GDP showing significantgrowth • For the past four years, GDP has grown more than 8%. • GDP growth for 2007-08 is 8.7% • Economy grew over 8% over 12 successive quarters since 2005. • Growth in sectors in 2006-07: Manufacturing: 11.3% Services: 11.2%

7. Share of Services Sector has gone up Significantly

8. High Returns on Investment • India - about 19% • Compared to some prominent Asian countries • The investors’ wealth has grown by US$ 970 billion, since beginning of 2007. • In 2007 , stock market’s benchmark Senex has grown 46.6 percent. From 13,786.91 points on Dec 29, 200, it settled at 20,206.95 points on Dec 29, 2007.

9. Demographics A Strong Demand Driver By 2020 30-40 mn Working people Urban age joining population population middle to rise class to rise to 40% every to 65% year

10. Diversified economy • Pharmaceuticals • Bio-tech • Agri-and food processing • Auto components • R&D • IT

11. PHARMACEUTICALS • India is world's 4th largest pharmaceuticals producer with 8% share of global production by volume • Pharma sector is growing at 20% per year • Exports of generics alone in 2005 were US$ 55 billion • 3 New Molecules discovered by Indian companies - 12 more in the final stages. • Over 100 Indian formulations have received United States FDA approval

12. BIOTECH • More than 900 companies involved in traditional biotech products • DNA biopharma products – 35 new companies set up in past 5 years • Opportunities for fresh investment in Indian biotech sector in next 5-7 years - US$ 1.5 – 2 billion

13. Food processing • Share in the world trade 1.7% • 5th largest industry in India • Industry size is estimated at US$ 70 billion • US$ 22 billion of value added products

14. AUTO & AUTO COMPONENTS • 2nd largest small car market in the world. • Largest motorcycle manufacturer in the world • 2nd largest scooter and tractor manufacturer in the world • Many international auto majors are manufacturing in India – Daimler Chrysler, General Motors, Toyota, Ford, Honda, Hyundai, Volkswagen, Suzuki, Skoda. India is excpected to move ahead of UK and Canada as a car producing contry bt 2008 with capacity surpassing 2 million units. • Most of them are also outsourcing their components from India. • The Indian auto components industry’s revenue double every four years, salted to touch 18.7 billion US$ in 2009; 40 billion US$ by 2014.

15. RESEARCH & DEVELOPMENT More than 100 global companies outsource R&D facilities from India • GE John F Welch Technology Centre – Company’s largest research outfit outside the US • GE Medical Systems – India as sole sourcing base for its portable ultrasound scanner • Monsanto – First non-US research facility • Eli Lilly – largest research facility in Asia and 3rd largest in the world • Texas Instruments – Digital Signal Processor developed in India – controls 50% of the world market • AVL, Austria – India as base to do R&D for the company’s Japan centre

16. IT & IT ENABLED SERVICES • Indian IT-ITeS recorded revenues of about 40 billion US $ in 2006-07, up 30.7%. NASSCOM has projected revenues of US$ 50 billion in 2007-08. • NASSCOM findings indicate software and services exports are expected to touch USD 40 billion and the domestic market is expected to touch USD 23 billion in FY 08. • 250 Fortune 500 companies have outsourced their software requirements to India • Major global software companies –Microsoft, Oracle, Adobe- have set up operations in India

17. Several World leaders have outsourced Business Processes to India

18. OPPORTUNITIES • POWER • OIL AND GAS • PORTS AND ROADS • AIRPORTS • HEALTHCARE

19. POWER • By 2012 • Peak Demand (Expected) – 1,57,000 MW • Envisaged Capacity Addition – 1,00,000 MW • There is a total investment opportunity of about US$ 200 billion over a 7 year horizon • Up-to 100% FDI allowed in projects relating to electricity generation, transmission and distribution (other than atomic reactor power plants). • No investment ceilings on project cost and quantum of Foreign Direct Investment

20. Oil & Gas • World’s 6th largest consumer of Energy • World’s 8th largest consumer of Oil • Demand for Petroleum Products expected to be 196 MMT by 2011-12. • Investments of US$ 150Billion required to meet burgeoning demand. More than US$ 12 Billion already committed for exploration and development work over next few years • Liberalized Govt policies on exploration, production, refining, distribution, marketing and pipelines for private sector participation • 100% FDI allowed for exploration, petroleum product marketing and laying pipelines.

21. PORTS & ROADS Roads • Investments of US$ 12 Billion envisaged for National Highway Development Project • 100% FDI under automatic route allowed in projects for construction and maintenance of roads, highways, vehicular bridges, toll roads Sea-Ports • 7517 Km of Coastline dotted by 12 major and 185 minor ports. • Investments of US$ 22 Billion needed for developing 50 new ports and upgrading existing ports • 100% FDI permitted in Construction, maintenance and support services for ports. 100% Tax Holiday for 10 years for enterprises in developing, maintaining and operating ports, inland waterways, etc.

22. Airports • Projection 2010: International Passenger Traffic – 26 Million; Domestic Passenger Traffic – 40 Million; Cargo Movement – 1.8 Million tonnes • FDI up-to 74% under Automatic Route (up-to 100% with Special Permission) allowed in ventures for airports • FDI up-to 49% permitted in Domestic Airport Services • Tax incentives available

23. HEALTHCARE Size of the Healthcare industry - overUS$ 22 billion Sector employs over60 million people One of the fastest growing sectors in India - expected to grow at12-13%per annum. Over80%of healthcare spending is in the private sector. Investment Potential : 750,000 extra beds over the next 10 years at a cost of approximatelyUS$ 30 billion.

24. Bilateral Trade • With economic liberalisation and reorientation in both countries economic cooperation between the countries is witnessing an upward trend. • The Joint Statement issued during the visit of Czech PM to India in Jan 2006 envisaged 1 billion bilateral trade by 2010. The target may be reached very soon. • Indo-Czech trade has been increasing steadily. Result encouraging;has increased 4 times in last 4 years • Balance of trade in favour of Czech Republic

25. Bilateral Trade

26. Major Indian Investment in Czech Republic • Vectra Ltd has invested in Tatra Koprivince (trucks) • Ashok Leyland has acquired Avia a.s. ( trucks) • Infosys set up a fully owned BPO company in Brno (IT) • Alok Industries has acquired Mileta (textile) • Spentx acquired Schoeller Litivinov (textile) • Mittal Steel Ostrava (steel) • Glenmark Pharmaceuticals acquired Medicamenta (pharmaceutical) • Tata Group acquired JEMCA (tea) • Motherson Auto Ltd invested in FP Formagrau

27. Some major Czech companies doing business with India • Skoda Export • Skoda Power • Skoda Auto • Tatra • UniControls Electronics • AZD Praha • CKD Praha • Omnipol • Prexim \

28. Role of the Embassy • Facilitates in providing information on Indian market, regulatory framework • Can provide detailed information on specific sectors of interest • Detailed information on investment opportunities • Can put Czech companies in touch with Indian companies

29. Useful Websites • http://www.mea.gov.in • http://commerce.nic.in • http://www.finmin.nic.in • http://indiainbusiness.nic.in • www.ibef.org • www.dipp.nic.in • http://www.ficci.com • http://www.ciionline.org

30. Contact information • Mr. Manish (First Secretary) • Mr. Dilbag Singh (Second Secretary) • Ms. Alena Jenikova (Commercial Assistant) Email: firstsecretary@india.cz, sscom@india.cz, commerce@india.cz Tel: +420-257533490 Fax : +420- 257533285, 257533378

31. THANK YOU