1. INDIA Redefining progress

3. Has one of the most ancient civilizations, with a history of scientific enquiry.

4. Has never invaded another country ,yet the 3rd largest armed country, and even a nuclear weapon power.

5. Is world’s 4th largest economy

6. Has 29 states; 325 languages; 1652 dialects and many civilisations.

7. Has 2nd largest pool of technical manpower in the world.

9. Even though the world hasjust discovered it, the Indiagrowth story is not new It has been going on for 25 years

10. What is the India story?

11. 28 years of high growth Average annual GDP growth (%) (%) 10 8.9 8 6.0 6 3.5 4 1.0 2 0 1900-1950 1950-1980 1980-2002 2002-2007

12. Literacy is rising (%) 100 80 80 65 52 60 40 17 20 0 1950 1990 2000 2010 P Source: Census of India (2001)

13. (m) 0 The rise of a strong middle class makes it a consumption driven economy 32% 22% 8% 400 368 300 200 220 100 65 2010 1980 2000 Source: The Consuming Class, National Council of Applied Economic Research, 2002

14. India is now the 4th largest economy It will overtake Japan between 2012 and 2014 to become the 3rd largest

15. The India model is unique

16. Drivers of growth India Domestic Services Consumption High tech, capital intensive industry East and S.E. Asia Exports Manufacturing Investment Low tech, labour intensive industry

17. Implications of India model ‘Domestically led’ means: Insulation from global downturns Less volatility Coming out of the global crisis faster

18. 33% 59% 42% 64% India India China China 41% U.S. Europe 58% 45% Brazil Implication of India model – Consumption led People Friendly:Consumption as % of GDP People Friendly, Less inequality: Gini Index Will India become the next big consuming economy after the U.S.?

19. India’s success is market-led whereas China’s is state induced The entrepreneur is at thecentre of the Indian model

20. India has a vibrant private space 100 Indian Companies have market cap of US$ 1bn 1,000 Indian Companies have received foreign institutional investment 125 Fortune 500 companies have R&D bases in India 390 Fortune 500 companies have outsourced software development to India 2% bad loans in Indian banks (v~20% in China) 80% credit goes to private sector (v~10% in China)

21. Understanding India’s economic success Mental revolution among the young “I want to be Bilgay” “Banianisation” of society 300+ TV channels; 65 news channels The rise of Hinglish

22. “By 2010 India will have world’s largest number of English speakers”“When 300 million Indians speak a word in a certain way, that will be the way to speak it.” Professor David CrystalCambridge Encyclopedia of the English Language

23. Key government reforms Opened economy to trade and investment Dismantled controls Lowered tariffs Dropped tax rates Broke public sector monopolies

24. Where the government infrastructure fails….. ….. Innovation kicks in

25. Business in 21st century India Yet Another Point Of View

27. roads

28. ports and airports

29. power

30. Labour productivity issues

31. Some archaic laws -eg. Land ,labour

32. Socialist hangovers –or posturings

34. Stable and sharp economic growth

35. Well established banking and a judicial system

36. Very young population-that means hands ,and demand

37. Developing into a consumption economy

38. Changing bureaucracy

39. Declining trade unionism

41. A few hundred years of subjugation

42. And then by politicos

43. Erosion of self esteem

45. Abundance of knowledge resources- and creation of the arbitrage opportunity

46. Global acceptance of the Indian mind

47. Some visible successes overseas-software , steel , automobiles

48. Indian acquisition of overseas companiesA WORLD OF OPPORTUNITY OPENS UP

50. Liberalized Trade Regime – opening up of India

51. Huge Investment inflows

52. Merging with the world economy

53. Political Scenario

54. Liberal Capitalist Regime- but at gunpoint

55. Psychographic profile

56. Literacy 50-85%

57. Technology exposed-and absorbing fast

58. Demographics-A very young nation- and getting younger

59. Cultural

60. Guiltless Consumers

63. Goes beyond the big cities

64. The creamy layer gets richer and thicker

65. Serious structural shifts happening in the Indian consumer market

66. Shift away from a supply-constrained economy to a demand-driven one

67. The Indian consumer's mindset is dramatically changing

68. Austerity is no longer considered a virtue --and debt no longer taboo

69. “Yehdil mange more” ---the Pepsi generation is hereConsumer India #1

70. Consumer India: The Good News Mn HH Mn HH 4 15 High UM 5 13 M 10 15 LM 16 14 L 12 2 NCAER From a pyramid to a cylinder - The Richer are getting richer and the poor are getting richer. Finally - the ability will match aspiration.

72. Breaking into this market requires innovative thinking and a new strategyTHE BIG QUESTION …. “HOW TO DRILL THIS ROCK” Consumer India #2

73. Mn HH Mn HH 3 8 High UM 4 8 M 11 25 38 64 LM L 63 34 Growth in rural income NCAER

75. Opportunity certainly exists

76. Creation of many market/product Life-cycles

77. Similar aspirations (C & W penetration/telecom explosion)……BUT

78. Very dissimilar purchasing powerAn opportunity………………… in disguise Consumer India #3

80. Intimidated by technology

81. Feudal

82. Reacting and avoiding

83. Self denial

85. Curious about technology

86. Not overawed by power

87. Experience seeking

88. Affordable indulgence

90. Burgeoning middle class – as large as the entire population of the US

91. Market deprived of international goods and services

92. “Pundits” said that it was a market ready for all the global brands Consumer India # 4 But was it? … Will it be??

94. Tyranny of averages

95. Market within markets

96. Speciality local markets

97. Very demanding consumer emerging

98. An amalgam culture happening emerging -new languages and metaphors DELIGHT OF MARKETING PROFESSORS…..AND MARKET SEGMENTERS ….And the bane of marketers “Whatever you say about India, the opposite is also true” Consumer India #5

99. So what’s happening in India now?Some case stories

101. BAT (ITC)

103. LG

104. Samsung

105. GEGlocalisation Is All Very Well But these are the true road warriors Some Success Stories

106. Made for India Strategy And “Made in India’ Multi-pronged strategy to tackle diversity of customer base Leverage world R&D capability for “Value right” products Provided solutions for a highly aspiring low income market Manage the logistics to address market spread Success in India …what made it happen?

108. Ford

109. Kellogg

110. Pepsi

111. Coke

112. Enron

113. Electrolux

114. Whirlpool

115. Reebok/Nike/Adidas…….. and the list goes on. “Failures”

116. Replicating Global Strategy Unified global Strategy replicated in India Tastes for India – Not kept in mind Indian Values and Attitudes ‘Non- value right’ products Failures in India… why ?

118. Not for the faint-hearted

119. Under-investing as bad as over-investing

120. Demands strategy complexity –folks and strokesWhat India means today-Rx

122. Needs international fundamental questions-not solutions

123. Exist on Earth and Mars concurrently in terms of market and technology practicesAn amazing opportunity to Fail….. Or Succeed

124. INCOME ASPIRATION IDEOLOGY Fertile Ground for Market Development THE INDIA SOLUTION

126. Medicare

127. Biotech

129. Two wheelers

130. Cars, yes cars

134. India …….a lesson in humility Dhanyavaad