business growth model discussed

1. D R . S A N J A Y M O D I
P R O V I C E C H A N C E L L O R
L O V E L Y P R O F E S S I O N A L U N I V E R S I T Y
I N D I A
Growth of Business in India

2. Glorious Past
'India' was the one of the largest economies in the world for
most of the next two and a half millennia, starting around the
end of 1st millennium BC and ending around the beginning of
British rule in India. – Paul Bairoch (1995)
Paul Bairoch (1995).
Economics and World History: Myths and Paradoxes.
University of Chicago Press. p. 95. ISBN 978-0-226-03463-8.

3. India’s GDP Trends
GDP (PPP) in 1990 International Dollars
Year
GDP (PPP)
(in bn)
GDP Per Capita
Average GDP
Growth
(%)
% of world
GDP (PPP)
% of World
Population
Period
1 34 450 — 32 30.03 Classical Era
1000 34 450 0 28 27.15 Early Medieval Era
1500 61 550 0.117 24.35 18 Late Medieval Era
1600 74 701.4 0.205 22.39 17.98
Late Medieval Era
1700 91 652.8 0.201 24.43 27.36
1820 111 548 0.171 16.04 20.06
1870 135 517.8 0.975 12.14 19.83
Colonial Era
1913 204 648.5 0.965 7.47 16.64
1940 265 661 0.976 5.9 16.82
1950 222 596.5 -1.794 4.17 14.11
Republic of India
1990 1,098 1261 4.075 4.05 15.92
Source: Maddison, Angus. Contours of the world economy, 1–2030 AD: Essays in Macro-Economic History. Oxford
University Press. p. 379. ISBN 978-0-19-922720-4. 6 December 2007.

4. India under British Rule (1858-1947)
 "Company official John Sullivan observed in the 1840s: 'The little court disappears - the capital
decays - trade languishes - the capital decays - the people are impoverished - the Englishman
flourishes, and acts like a sponge, drawing up riches from the banks of the Ganges, and squeezing
them down upon the banks of the Thames'. India that the British East India Company conquered was
no primitive or barren land, but the glittering jewel of the medieval world. Its accomplishments and
prosperity - 'the wealth created by vast and varied industries' - were succinctly described by a
Yorkshire-born American Unitarian minister, J. T. Sunderland.
 “At the beginning of eighteenth century, as the British economic historian Angus Maddison has
demonstrated, India's share of world economy was 23 per cent, as large as all of Europe put together.
By the time the British departed India, it had dropped to just over 3 per cent. The reason was simple:
India was governed for the benefit of Britain. Britain's rise for 200 years was financed by its
depredation in India."
— Shashi Tharoor,
The Looting of India, Inglorious Empire:
What the British Did to India (2017)

6. Present India
Fastest Growing Nation in the World
Expected to be among top three economic powers in next 10-15 years
Robust democracy and strong partnerships

7. Market Size
GDP
US $ 2.623 tn
(at current prices)
2020
Fourth Largest
Unicorn base in
the world
Foreign exchange
reserves in India
reached US$ 633.5
billion mark
India is the fourth-largest unicorn base in the world with over 21
unicorns collectively valued at US$ 73.2 billion, as per the Hurun Global
Unicorn List.
India is expected to have ~100 unicorns by 2025 and will create ~1.1
million direct jobs according to the Nasscom-Zinnov report ‘Indian Tech
Start-up’.

8. 2020-21
Primary 21.82%,
Secondary 24.29 %,
Tertiary 53.89 %

9. Advantage India
• 3rd Largest size in GDP (PPP) $ 8
Trillion*
GDP
• 5.8% Fastest growing major economy in
the World (2020-21)
Growth Rate
• 2nd Largest In the world (33 Lakh KM)
Road Network
• 462 mn (33.5%) 2nd largest in the world
Internet Users
• 767 mn (56%)Population between age group
15 – 64
Population Advantage
• 377 mn (27.3%)[30 people move every minute to
urban areas]
Urban Population
• 2nd Largest [23 mn people travel everyday]
Railway Network
*Business Today, 28th October 2021

10. Advantage India
 Burgeoning middle class that’s expected to grow to
89 million households by 2025
 India will be one of the largest consumer markets by
the mid-21st century.
 India has made rapid progress, jumping from 142nd
in 2014 to 63rd in 2019 in the World Bank’s ease of
doing business report.

11. Unprecedented Opportunities
Economic Social Political
Huge Consumer Market
• $ 3.6 Trillion by 2025
(BCG Study)
 Unprecedented GDP
Growth
• $ 5 Trillion by 2025
Youngest Nation
• 29 yrs. avg. age in 2025
 Upward mobility
• 150 mn more added to
middle class by 2025
 Skilled Workforce
• 77.7% Literacy Rate (2020)
•99 % Literacy Rate by 2025
 Inclusion
• 241 mn accounts
opened under “Jan
Dhan”
 Deregulation
• 1000+ archaic laws
repealed

12. World Economic Outlook - Projections
Source: IMF, World Economic Outlook, October 2021

13. Recent Business Developments
 The private equity - venture capital (PE-VC) sector recorded
investments worth US$ 10.7 billion across 137 deals in August 2021,
registering a 5x YoY growth.
 In August 2021, the Manufacturing Purchasing Managers' Index
(PMI) in India stood at 52.3. Reflecting confidence in the economy.
 India attracted the highest ever total FDI inflow of $81.72
billion in the entire financial year 2020-21 (Source: Business Standard)
 India’s Index of Industrial Production (IIP) for July 2021 stood at
131.4 against 122.6 for June 2021.
 Foreign portfolio investors (FPIs) invested US$ 2.5 billion in India
in August 2021.

14. Govt. Activism
 Increased government expenditure is expected to attract private investments, with
production-linked incentive scheme
 Total outlay for PLI Scheme INR 2,30,827 cr.
PLI Scheme Sector (Scheme Outlay)
Auto Components
(INR 57,042 cr.)
Electronic Systems
(INR 7,325 cr.)
Pharmaceuticals
(INR 21,940 cr.)
Automobiles
(INR 57,042 cr.)
Food Processing
(INR 10,900 cr.)
Renewable Energy
(INR 4,500 cr.)
Aviation
(INR 120 cr.)
Medical Devices
(INR 18,420 cr.)
Telecom
(INR 12,195 cr.)
Chemicals
(INR 18,100 cr.)
Metals & Mining
(INR 6,322 cr.)
Textile & Apparel
(INR 10,683 cr.)
White Goods
(INR 6,238 cr.)
Source: Invest India,
https://www.investindia.gov.in/production-linked-incentives-schemes-india

15. Government Activism
 In August 2021, NITI Aayog and Cisco collaborated to encourage women's
entrepreneurship in India.
 In August 2021, Prime Minister Mr. Narendra Modi announced an initiative to start a
national mission to reach the US$ 400 billion merchandise export target by 2022-23
from US$291.8 billion in 2020-21.
 In June 2021, Finance Ministers of G-7 countries, including the US, the UK, Japan,
Italy, Germany, France and Canada, attained a historic contract on taxing multinational
firms as per which the minimum global tax rate would be at least 15%. The move is
expected to benefit India to increase foreign direct investments in the country.

16. Government Activism
 In April 2021, Minister for Railways and Commerce & Industry and
Consumer Affairs, Food & Public Distribution, Mr. Piyush Goyal,
launched ‘DGFT Trade Facilitation’ app to provide instant access to
exporters/importers anytime and anywhere.
 India is expected to attract investment of around US$ 100 billion in
developing the oil and gas infrastructure during 2019-23.
 The Government of India is going to increase public health spending to
2.5% of the GDP by 2025 from 1.3% of the GDP.
 For implementation of Agriculture Export Policy, Government approved
an outlay INR 2.068 billion (US$ 29.59 million) for 2019, aimed at
doubling farmers income by 2022.

17. New India
New Processes
Ease of Doing Business
GST
De-monetization
New Sectors
Major FDI reforms
and inflows
New Approach
Make in India
Digital India
Skill India
New Infrastructure
Key Infrastructure
and Urbanization
India – Design & Innovation
Start Up India
Intellectual Property Rights
New Mind-set
From red tape
to red carpet
New Innovation and R&D

19. Gati Shakti scheme
 Gati Shakti scheme or National Master Plan of US$ 1.3 trillion for coordinated
planning and execution of infrastructure projects to bring down logistics costs.
Goals
 Cutting logistics costs,
 Increasing cargo handling capacity
 Reducing the turnaround time at ports
 11 industrial corridors and two new defence corridors
 Extending 4G connectivity to all villages.
 Adding 17,000 kms to the gas pipeline network is being planned.
 Expanding the length of the national highway network to 2 lakh kms
 Creation of more than 200 new airports, heliports and water aerodromes.

20. India by 2050
Source: The Long View- How will the global economic order change by 2050?, pwc

21. Growth Champions
 The ranking identified the fastest growing 150 companies
among all Indian industries using specific criteria; companies
had to have generated minimum revenue numbers over a
three-year period to register and apply, be independent
entities, and have primarily demonstrated organic growth.
 Revenue CAGR (2015-18) ranges between 21.7% to 311.9%.
Source:
https://economictimes.indiatimes.com/industry/miscellaneous/indias-growth-champions-2020-ranks-indias-fastest-growing-
companies/articleshow/73734995.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst