India Market Snapshot

1. India:
Market Snapshot
“Doing ICT Business with India”
Nicola Watkinson
Senior Trade & Investment Commissioner
23 September 2015

2. INDIA – a major global economy
US$ 2.01
Trillion
economy
11th largest
global
economy,
poised to be
the 3rd largest
by 2030
Australia’s
7th largest
export
market
Home to a
number of the
world’s
leading
corporates
Outbound
Foreign Direct
Investment
has grown
from A$5.1
billion in
2003-04 to
A$43 billion in
2013-14

3. Australia Unlimited
Australia and India - Economic Relationship
• Two-way goods & services increased from $6.8 - $14.8 bn (FY03-14)
• Indian investment in Australia approx. A$11 bn
• Over 100 Indian companies in Australia
• Free Trade Agreement could result in increase in Australia's GDP by up to
US$32 billion (A$45.5 billion) and India's GDP by up to US$34 billion (A$48.3
billion) over a period of 20 years (Independent modelling conducted in 2008
on the Australia–India CECA)
• Approx. 450,000 people of Indian descent live in Australia
• Around 150 Australian companies with representation in India

4. Australia Unlimited
Australian ICT companies in India

5. Australia Unlimited
Australia – India Partnerships in Research
• Max Healthcare - Deakin
• IIT - Monash Centre in Mumbai
• TERI - Deakin Nanobiotechnology Centre
• Thermax, CSIRO Australia & University of New South Wales
• Department of Biotechnology, Govt. of India & Queensland University of Technology
• Australian Cochlear Ear Implant by Defense Research Development Organisation
• Australian solar manufacturer Dyesol partnership with Tata Steel
• ABB’s joint research initiative between its Indian and Australian operations and RMIT
• AgTechnix’s technology by Hyderabad based SeedWorks India
• Rio Tinto and iGATE Patni – dedicated R&D centre in India

6. Australia Unlimited
Indian IT companies in Australia
• More than 25 Indian IT firms in Australia
• Big 6 already represented in Australia providing over 8,000 knowledge-
based jobs
• Positive revenue growth compared to other OECD markets is generating
interest
• Seeking to move up value chain, presenting opportunity to
commercialise Australian research and integrate start-ups into their
supply chain
• Offer investment funds through corporate VC arms and a path to global
markets as 80% to 90% revenues from Fortune 500 customers in the US
and Europe

7. Australia Unlimited
The Big 6 India IT companies – reach & capacity to invest
• Tata Consultancy Services (TCS) - US$ 15 billion revenue, 45 countries, Co-Innovation
Network – partner with international academic & research institutions, start-up companies.
• Cognizant Technology Solutions - US$ 10.26 billion, 40 countries, Global Technology
Office tracks technology trends, invested in Melbourne mobile solutions company, Odecee
• Infosys - US$ 8.7 billion revenue, 50 countries, Centre of Emerging Technologies
partners for new technology development, created Infosys Innovation Fund worth US$500
million and is partner in Australia's Smart Services CRC.
• Wipro - 8 billion revenue, presence in 57 countries, 55+ dedicated emerging technologies
‘Centres of Excellence’ & Innovation centre in Bangalore, created a $100-million venture
capital fund, Wipro Ventures , invested in NSW analytics company, Promax Applications
• Tech Mahindra - US$3.7 billion revenue, 52 countries, created US$150-million Growth
Factories fund.
• HCL Technologies - $6.7 billion revenue, 31 counties, parent HCL has recently floated
$500M health tech fund to evaluate US based health technologies.

8. Australia Unlimited
Indian IT industry - strong contribution to India
GDP Share Highest relative share in national GDP 9.5%
3.5 mnEmployees Largest private sector employer
Diversity Ardent promoter of diversity
>1.2 mn
Women
Exports Largest share in total services exports >38%
55%Leading global sourcing destination
Market
Share
Magnet for PE/VC investments 53%
USD 6 billion
Investments
Source: NASSCOM

9. Australia Unlimited
NOTABLE
TRENDS
IN
INDIAN IT
SECTOR
INTERNATIONALIZED -
580 global deliverycentres,75
countries, 92% revenues US,
UK & Europe
SMAC TECHNOLOGIES -
expected to grow to USD
225 bn (2020)
INCREASED R&D
FOCUS - TCS US$ 35
mn investment in
Carnegie Mellon Uni
LARGE PLAYERS
GAINING ADVANTAGE
top 6 =50% of the
market
DIGITAL REVENUES
& INVESTMENTS -
quadrupled in 5 yrs
& 110+ M&A’s
CONSUMERISATION
OF IT -
moved up value chain
beyond outsourcing
UPTICK IN HIGH
VALUE ADDED
SERVICES - ER&D
revenue US$20 bn
Source: Booz and Company, NASSCOM

10. Australia Unlimited
Opportunities - Indian government’s digital push
Government Investments in
Technology-2014-15
Digitisation
Infrastructural
improvements
Push for
Manufacturing
Technology in
healthcare &
agriculture
Source: McKinsey, Zinnov
NASSCOM Initiatives
Healthcare IT Platform
Partnership with NATHEALTH and Ministry of Health to
build centralised Healthcare IT Platform
Smart Cities
NASSCOM and Industry helping to define IT
Architecture for 100 Smart Cities Initiative
Digital India
Catalyse Digital Literacy and partner for Digital India
Defence R&D
Industry collaboration for Defence R&D Technology
Make in India
Software Products leading Make in India; IOT Lab

11. Australia Unlimited
Opportunities for Australian companies
• Food
Drivers
1. Improper handling - 40% losses at farm gate
2. Yield fluctuation - lack of precision farming methods, supply chain management & infrastructure
3. Agriculture, livestock, forestry and fishery 16.1 % of the Gross Value Added (2014-15)
4. Focus - canned, dairy, processed, frozen food to fisheries, meat, poultry, and food grains
5. Food grain production - 251.12 million tonnes
6. Largest milk producer (138MT annual) & largest bovine population.
Technologies - Cloud, sensor, GPS for resource allocation, decision making to improve productivity, yield,
reduce operational costs and emerging opportunity for automation technologies in production.
Drivers
1. Improper utilisation of natural reserves – coal, LNG, solar
2. Mining sector challenge to re-boot operations after recent ban for increasing production, productivity &
improve the environmental footprint
3. 4th largest energy consumer after US, China, Russia & 300 million people have no access to electricity
Technologies - supporting reduction in mining operational costs (cloud, systems integration, mobility),
remote automation, monitoring & visualisation of activities (reducing wage/ FIFO mine costs, supporting
decision making), resource monitoring (via sensor networks and visualisation) and simulation (worker training
and decision making)
MINING,
OIL & GAS
AGRI
FOOD
Source: IBEF

12. Australia Unlimited
Opportunities for Australian companies
• Food
• Food
Drivers
1. “Make in India” initiative – aim to increase manufacturing output from 16- 25% GDP (2025)
2. Manufacturing Industry presents USD 8 billion opportunity for ICT sector (2017)
3. Indian automotive sector – current value US$ 90 billion, 3 million passenger cars per year
4. Civil aviation sector growth of over 41% in passenger traffic in 2 years
5. Ranks 8th globally in military spending & US$ 4 bn to be invested in defence over 7-8 years
6. 3rd largest armed forces globally(budget US$ 37.3 billion in 2014), focus on Armed Forces
Modernization and Defense Offsets
Technologies - Air & ground traffic management, security systems, cyber security, optimization, big
data, mobility, cloud computing, The Internet of Things, simulation.
Drivers
1. Shortfall in electricity generation, energy cost is driver for energy efficiency solutions
2. Ambitious target to increase capacity to generate 55 GW RE by 2022
3. Government action mandating reduction targets in high energy industries, trading mechanism
4. National Smart Grid Mission -130 mn Smart Meters(2021).14 Smart Grid Pilot Projects underway
5. National Mission for Clean Ganga - US$ 400 mn programme to clean 10 river front towns/cities
6. 16% of worl’d population & 4% water resources – demand to rise by 20% in 2020
7. Environment technologies market valued at US$ 14.29 bn
Technologies - successful integration of intermittent renewable energy into grid, smart systems
for energy generation, management, transmission and usage, monitoring, simulation, water
utilization & treatment, waste management, capture and reuse solutions.
MANUFACTURING
RENEWABLES,
& ENERGY
EFFICIENCY
WATER
Source: IBEF

13. Australia Unlimited
Opportunities for Australian companies
• Food
• Food
Drivers
1. Health expenditure only 4 per cent of GDP (2012)
2. Capacity constraints - 700,000+ beds required in 6 years, investment opportunity of US$ 25-30 bn
3. Increase in lifestyle diseases
4. Industry growth around 14 % pa rising from US$70 billion to US$280 billion (2020).
5. Aged care - 320 million citizens over 60 yrs, 48 million people over 80 yrs (2050)
6. Reach - 70% of India’s population lives in rural areas
Technologies - Commercialise Australian research, med technologies & collaborate on data
analytics, and bio-informatics, remote locations services - e-health, tele-medicine, remote monitoring,
and remote diagnostics.
Drivers
1. Services sector accounts for 57% GDP
2. Banking assets US$ 1.8 trillion (FY14) & to be US$ 28.5 trillion (FY25)
3. Mutual fund industry on all-time high of US$ 189.83 billion
4. Equity funds had inflows of US$ 825.49 million
5. Life insurance sector biggest in the world & 15th largest insurance market in terms of volume
Technologies - systems integration & optimisation across the financial services, banking & insurance
sectors, cyber security and privacy systems, payment technology, multi-channel customer support
platforms and software to support regulatory reporting.
HEALTH
FINANCIAL
SERVICES
Source: IBEF

14. Australia Unlimited
• Food
Opportunities for Australian companies
Source: Ernst and Young 2015; PWC 2015, IBEF
Drivers
1. Cities - 100 Smart cities program - US$ 10bn per city
2. Road Safety - loss of >150,000 lives & >500,000 road accident every year, considerable budget
allocated by State governments & international agencies for safety technologies
3. Rail - modernisation of rail network including safety, operational and energy efficiency, investment of
US$93 billion in capacity addition (12th Five-Year Plan - 2012-17)
4. Ports - modernization of port infrastructure, transformation in to world class ports & improvement of
hinterland (port connectivity highway project US$ 310 million)
Technologies - support operational efficiencies, remote resource monitoring (visualisation, simulation
to maximise efficiency of loads and handling) systems integration mobility (cloud) technologies,
intelligent transport systems and technology, predictive analytics, sensor technologies, smart grids,
smart meters, simulation systems, safety

15. Australia Unlimited
Pathways to market
Australian ICT exporters
 Niche applications for Indian domestic market
 Strategic alliances with India’s IT majors to support international customers
and markets
Australian research institutions and technology
Attract Indian investment into Australia’s innovation development - R&D
strengths and commercialisation potential
Australian research and innovation hubs / centres
Create linkages with Indian business, universities, research bodies &
government.
VET providers
Participate in digital upskilling of Indian IT sector

16. Australia Unlimited
Profiling Australian capability to India

17. MEETING WITH INDIAN SYSTEMS
INTEGRATOR
AUS COMPANIES IDENTIFICATION
&
OPPORTUNITY COMMUNICATION
INDIA VISIT BY
AUSTRALIAN COMPANY
VIDEO CONFERENCE CONNECTION
AND
DISCUSSION OF BOTH PARTIES
RE-SELLER AGREEMENT SIGNED
+
FIRST CONTRACT AWARDED
Australian Hospital Mgt software for Indian market
INFORMATION ON MARKET
&
CUSTOMER PROVIDED
LEVERAGED STATE GOVT
AND
INDUSTRY ASSOCIATION NETWORKS
FREQUENT MARKET VISITS TO
DEMONSTRATE COMMITMENT
INDIAN COMPANY SITE VISIT TO
AUSTRALIA
VISIT BY AUS TECHNICAL PERSON TO
INDIA FOR 6 WEEKS

18. LARGEST INDIAN IT COMPANY CONTACTED
AUSTRADE TO IDENTIFY TECHNOLOGY
PROVIDERS FOR GLOBAL CUSTOMERS
LINED UP > 50 AUS IT START-UPS
INDIAN COMPANY TECHNICAL TEAM
REVIEW AND SHORTLIST
State Govts, ICN, Enterprise
Connect, Commercialisation
Australia, NICTA
Opportunity for IT Start Ups to be a part of global supply chains
AUSTRALIA SITE VSIIT BY INDIAN
COMPANY DECISION MAKERS FOR
DETAILED DISCUSSIONS
OUTCOME: Agreement between Australian
start-ups and Indian IT major for the US and
European markets

19. Australia Unlimited
How Austrade can help you
Our strength is in our NETWORK
Austrade has 10 offices in
India & strong industry contacts in
major centres and Tier II cities
Our network provides market insights
to Australian companies entering the
market to help them select the:
• projects
• partners
• locations
to give them the greatest chance of
success

20. Austrade India IT team
Amanda Hodges
Trade and Investment Commissioner, Mumbai
Amanda.hodges@austrade.gov.au
Malini Dutt
Investment Manager, Mumbai
malini.dutt@austrade.gov.au
Grace Ann Lobo
Investment Manager, Mumbai
Graceann.lobo@austrade.gov.au
Nicola Watkinson
Senior Trade and Investment Commissioner
Nicola.watkinson@austrade.gov.au

21. Australia Unlimited
Key IT events/activities - FY 2015/16..don’t miss the
opportunity!
• October - November 2015: Australian IT Innovation and Technology
Virtual Showcase to India 2015 - Applications close on 15 Oct 2015
• February 2016: Australian ICT CoE Mission to India - Presenting
Australian IT centres of excellence to Indian multinational corporations
• Marketing & Media campaign - Austrade India innovation website
• Independent market visits by Australian organisations
• Indian companies (Customer and Investor) Targeting and Profiling
followed by Australia site visits

22. Thank you