logging in or signing up India Presentation Bertrando Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 7325 Category: Education License: All Rights Reserved Like it (6) Dislike it (1) Added: January 24, 2008 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: adiroit (3 month(s) ago) awesome.. thanks zillion for ppt Saving..... Post Reply Close Saving..... Edit Comment Close By: rd1985 (7 month(s) ago) If you do not mind, can u send me this ppt on hricha85@gmail.com ?? Saving..... Post Reply Close Saving..... 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Market Based Economy Slide3: DELHI Namrata Gurung Delhi: Delhi Capital of India Parliament of India, District Administration of Delhi, Financial Institutions situated in Delhi Center of Supervisory Power Urbanization of Delhi: Urbanization of Delhi Four Satellite Suburbs Gurgaon is the most developed Hub for outsourcing and off-shoring business Increase workforce and businesses Increasing middle-class families. Increase in Net domestic Product - Delhi Delhi – Policies: Delhi – Policies India’s economic growth by 10% this year. State Bank of India raised the prime-lending rate from 11.5% to 12.25% 2nd time in two months Central bank raised the interest rate by a quarter-point to 7.5% control the rapid credit expansion Help stem inflation *Tightening the Money supplyDelhi – Politics: Delhi – Politics Decision-making Congress is the largest party in the coalition but other left leaning parties and the Communist party play a vital role The decision of raising the futures price of wheat and rice – primary sustenance of the poor farmers The government was forced to freeze the futures price Affects the farmers as well as the NCDEX Delhi – Politics cont……: Delhi – Politics cont…… Recently Congress Party lost 2 local elections Chances of ruling coalition to become unstable Policies remain undecided E.g. 1999 Parliament electionMUMBAI, Economy, Financial: MUMBAI, Economy, Financial Brian DaltonMumbai: Mumbai Formerly known as Bombay Most populous city in India (over 25 million people) Financial and entertainment capital of India National Stock Exchange of India (NSE) Bombay Stock Exchange (BSE) Reserve Bank of India (RBI) Bollywood Indian Economy: Introduction: Indian Economy: Introduction In terms of PPP, India is the fourth largest economy in the world Economy has been growing at around 8% per year for the past four years 2007 growth is estimated at ~ 9% Total nominal GDP is expected to surpass $1 trillion USD in 2008 Rapid growth has been leading to concerns over inflationIndian Economy: Introduction: Indian Economy: Introduction …But with over a billion people, it is no wonder that the World Bank still classifies India as a “Low Income” country Nevertheless, it is still remarkable how far India has come over the past few decadesIndian Economy: Brief History: Indian Economy: Brief History Pre-1757: India ruled by various warlords, clans, and empires. Rich in “exotic” goods desired by Europeans Extensive world trade In 1700, it is estimated that the amount of world income controlled by India was nearly as great as all of Europe 1757 – 1947: Colonial Era The great wealth and natural resources entices Britain to colonize much of India Britain exploits the country’s resources Britain makes some positive contributions to India, however. The develop roads, institute standard currency, property rights, capital markets, transportation and communication networks. They also emphasize education.Indian Economy: Brief History: Indian Economy: Brief History 1947 – Present: Independence 1947- 1970s: Isolation and Socialism leads to extreme poverty and stagnation Beginning in the 1980s and through the ‘90s India began to liberalize its economy, and start the move towards a more capitalist-type economy Today India is the second fastest growing larger economy and the fourth largest economy in the world.Indian Economy: Industries, Exports and Trading Partners: Indian Economy: Industries, Exports and Trading Partners Most Indians still work in agriculture-related jobs, but services are becoming and increasing important sector Unlike countries like China, India is not so well known for its manufacturing exports. Exports include textiles, natural resources like tea and cotton And of course the cultural exports like food and Bollywood India has recently become associated with its service exports (outsourcing), and this is becoming a very important part of the economy India is a net importer Main trading partners include: US, China, EU, Russia and Japan Banking System: Banking System Reserve Bank of India (RBI): The Central Bank Controls currency (Rupee) Manages foreign exchange Supervises and regulates the financial system Promotes economic development Bank of the central government Headquarters in Mumbai, and 22 regional branchesThe Rupee: The Rupee The Rupee is relatively confined to India, and is not used extensively in any other country Later years of British colonial rule: Pegged to gold standard b/w of British Pound 1966: de-pegged from the British pound; pegged to the US dollar 1971: de-pegged from US dollar (b/c USD was tanking) Today, the RBI conducts a managed float on the INR/USD exchange rate; INR/EUR and INR/JPY are market determined Financial Markets: Financial Markets The Securities and Exchange Board of India regulates India’s 22 financial exchanges The largest financial exchanges in India are: The National Stock Exchange of India (NSE) The Calcutta Stock Exchange (CSE) The Bombay Stock Exchange (BSE) The Delhi Stock Exchange (DSE) The two most important exchanges to foreign investors are the NSE and BSE, both located in Mumbai SEBI Mumbai OfficesNational Stock Exchange of India (NSE): National Stock Exchange of India (NSE) The third largest stock exchange in the world (number of transactions/day) Traditionally, the first exchange to introduce new technology and trading advancements First to create a clearing corporation First to begin internet trading First to trade ETFsBombay Stock Exchange (BSE): Bombay Stock Exchange (BSE) Oldest stock exchange in Asia Smaller than the NSE, but to foreigners, often the more important exchange BSE Sensex index closely followed by international investors Many of the largest Indian companies list on the BSE (Wipro, Infosys, Tata Group)Forex: Forex Indian forex market tightly regulated by the RBI RBI often directly intervenes in INR/USD trade to stabilize the rupee Forex market is small, but growing rapidly Currency derivatives market is larger than the spot market Most of the trade is in INR/USDBonds: Bonds Government bonds T-bills (91-day and 364-day) sold by RBI Many investors don’t like them because they offer no tax benefits Foreigners are allowed to purchase Government market is growing as a result of increased liquidity in Indian market Corporate bonds Regulated by the SEBI Corporate debt placements have increased by over 40% in the past two years Companies are required to be rated as “investment quality” to issue public debt Debt market primarily limited to wholesale orders No market for junk bonds, but probably will be developed in the near future Bollywood: Bollywood India’s Hollywood Largest film industry in the world Puts out more than 1000 films/year (most are crap, but some are worthwhile… kinda’ like Hollywood) Many films funded by foreign investors, Indian banks, and Mumbai’s criminal underground Important part of the Mumbai economy and Indian culture Bengalūru: Bengalūru Kris Kohtz Basics: Basics Capital of Karnataka Population of 7 million $6460 per capita income Fastest growing marketStrengths: Strengths Business Process Outsourcing (BPO) Comparative Advantages Software exports Information TechnologyChallenges: Challenges Infrastructure Regulations Expansion into China CHENNAI Also known as Madras : CHENNAI Also known as Madras Rachel Oleniacz Demographics: Demographics City of 6,400,000 Fourth largest metropolitan Second largest exporter of IT & services Connected by the Golden Quadrilateral ProjectCulture & Roots: Culture & Roots Tamil Nadu ~ The Province Tamil ~ The Language Bharatanatyam Kalakshetra Carnatic music Music Season Hindu TemplesNomenclature & History: Nomenclature & History The city with two names Madras Patnam by The East India Company Chennaipuri by the locals Foreigners’ role in the then town Port and trade சென்னை Commerce & Trade: Commerce & Trade Chennai port General industrial (containers) Automobiles Shift to green & clean Ennore port Coal Ore Bulk cargoAutomobiles: Automobiles Detroit of South Asia Potential as one of top three automobile giants in the world Ford, Hyundai, Mitsubishi, TVS, Ashok Leyland, & BMW Slide34: CALCUTTA Suresh Lee KrishnamoorthyCALCUTTA: CALCUTTA 14 million inhabitants Manufacturing centered Faced major productivity crisis Political instability RECOVERY ISSUES: RECOVERY ISSUES Strong focus on certain industries Major devaluation of the rupee High associated inflation Currency trading and speculation could not be controlled RECOVERY AVENUES: RECOVERY AVENUES Major growth in the IT sector Calcutta Stock Exchange Slide38: QUESTION? 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India Presentation Bertrando Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 7325 Category: Education License: All Rights Reserved Like it (6) Dislike it (1) Added: January 24, 2008 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: adiroit (3 month(s) ago) awesome.. thanks zillion for ppt Saving..... Post Reply Close Saving..... Edit Comment Close By: rd1985 (7 month(s) ago) If you do not mind, can u send me this ppt on hricha85@gmail.com ?? Saving..... Post Reply Close Saving..... Edit Comment Close By: kishorekumarv_mba (10 month(s) ago) may i dwn load this Saving..... Post Reply Close Saving..... Edit Comment Close By: kishorekumarv_mba (10 month(s) ago) awsome Saving..... Post Reply Close Saving..... Edit Comment Close By: manishakaushal.ibs (34 month(s) ago) thanks 4 the informations given by u through this ppt Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Namrata Gurung Brian Dalton Kris Kohtz Rachel Oleniacz Suresh Lee Krishnamoorthy : Namrata Gurung Brian Dalton Kris Kohtz Rachel Oleniacz Suresh Lee Krishnamoorthy FIN 444 Final Presentation April 4, 2007 INDIAIndia - Introduction: India - Introduction History India’s Economic Reform Foreign Direct Investment Centralized v. Market Based Economy Slide3: DELHI Namrata Gurung Delhi: Delhi Capital of India Parliament of India, District Administration of Delhi, Financial Institutions situated in Delhi Center of Supervisory Power Urbanization of Delhi: Urbanization of Delhi Four Satellite Suburbs Gurgaon is the most developed Hub for outsourcing and off-shoring business Increase workforce and businesses Increasing middle-class families. Increase in Net domestic Product - Delhi Delhi – Policies: Delhi – Policies India’s economic growth by 10% this year. State Bank of India raised the prime-lending rate from 11.5% to 12.25% 2nd time in two months Central bank raised the interest rate by a quarter-point to 7.5% control the rapid credit expansion Help stem inflation *Tightening the Money supplyDelhi – Politics: Delhi – Politics Decision-making Congress is the largest party in the coalition but other left leaning parties and the Communist party play a vital role The decision of raising the futures price of wheat and rice – primary sustenance of the poor farmers The government was forced to freeze the futures price Affects the farmers as well as the NCDEX Delhi – Politics cont……: Delhi – Politics cont…… Recently Congress Party lost 2 local elections Chances of ruling coalition to become unstable Policies remain undecided E.g. 1999 Parliament electionMUMBAI, Economy, Financial: MUMBAI, Economy, Financial Brian DaltonMumbai: Mumbai Formerly known as Bombay Most populous city in India (over 25 million people) Financial and entertainment capital of India National Stock Exchange of India (NSE) Bombay Stock Exchange (BSE) Reserve Bank of India (RBI) Bollywood Indian Economy: Introduction: Indian Economy: Introduction In terms of PPP, India is the fourth largest economy in the world Economy has been growing at around 8% per year for the past four years 2007 growth is estimated at ~ 9% Total nominal GDP is expected to surpass $1 trillion USD in 2008 Rapid growth has been leading to concerns over inflationIndian Economy: Introduction: Indian Economy: Introduction …But with over a billion people, it is no wonder that the World Bank still classifies India as a “Low Income” country Nevertheless, it is still remarkable how far India has come over the past few decadesIndian Economy: Brief History: Indian Economy: Brief History Pre-1757: India ruled by various warlords, clans, and empires. Rich in “exotic” goods desired by Europeans Extensive world trade In 1700, it is estimated that the amount of world income controlled by India was nearly as great as all of Europe 1757 – 1947: Colonial Era The great wealth and natural resources entices Britain to colonize much of India Britain exploits the country’s resources Britain makes some positive contributions to India, however. The develop roads, institute standard currency, property rights, capital markets, transportation and communication networks. They also emphasize education.Indian Economy: Brief History: Indian Economy: Brief History 1947 – Present: Independence 1947- 1970s: Isolation and Socialism leads to extreme poverty and stagnation Beginning in the 1980s and through the ‘90s India began to liberalize its economy, and start the move towards a more capitalist-type economy Today India is the second fastest growing larger economy and the fourth largest economy in the world.Indian Economy: Industries, Exports and Trading Partners: Indian Economy: Industries, Exports and Trading Partners Most Indians still work in agriculture-related jobs, but services are becoming and increasing important sector Unlike countries like China, India is not so well known for its manufacturing exports. Exports include textiles, natural resources like tea and cotton And of course the cultural exports like food and Bollywood India has recently become associated with its service exports (outsourcing), and this is becoming a very important part of the economy India is a net importer Main trading partners include: US, China, EU, Russia and Japan Banking System: Banking System Reserve Bank of India (RBI): The Central Bank Controls currency (Rupee) Manages foreign exchange Supervises and regulates the financial system Promotes economic development Bank of the central government Headquarters in Mumbai, and 22 regional branchesThe Rupee: The Rupee The Rupee is relatively confined to India, and is not used extensively in any other country Later years of British colonial rule: Pegged to gold standard b/w of British Pound 1966: de-pegged from the British pound; pegged to the US dollar 1971: de-pegged from US dollar (b/c USD was tanking) Today, the RBI conducts a managed float on the INR/USD exchange rate; INR/EUR and INR/JPY are market determined Financial Markets: Financial Markets The Securities and Exchange Board of India regulates India’s 22 financial exchanges The largest financial exchanges in India are: The National Stock Exchange of India (NSE) The Calcutta Stock Exchange (CSE) The Bombay Stock Exchange (BSE) The Delhi Stock Exchange (DSE) The two most important exchanges to foreign investors are the NSE and BSE, both located in Mumbai SEBI Mumbai OfficesNational Stock Exchange of India (NSE): National Stock Exchange of India (NSE) The third largest stock exchange in the world (number of transactions/day) Traditionally, the first exchange to introduce new technology and trading advancements First to create a clearing corporation First to begin internet trading First to trade ETFsBombay Stock Exchange (BSE): Bombay Stock Exchange (BSE) Oldest stock exchange in Asia Smaller than the NSE, but to foreigners, often the more important exchange BSE Sensex index closely followed by international investors Many of the largest Indian companies list on the BSE (Wipro, Infosys, Tata Group)Forex: Forex Indian forex market tightly regulated by the RBI RBI often directly intervenes in INR/USD trade to stabilize the rupee Forex market is small, but growing rapidly Currency derivatives market is larger than the spot market Most of the trade is in INR/USDBonds: Bonds Government bonds T-bills (91-day and 364-day) sold by RBI Many investors don’t like them because they offer no tax benefits Foreigners are allowed to purchase Government market is growing as a result of increased liquidity in Indian market Corporate bonds Regulated by the SEBI Corporate debt placements have increased by over 40% in the past two years Companies are required to be rated as “investment quality” to issue public debt Debt market primarily limited to wholesale orders No market for junk bonds, but probably will be developed in the near future Bollywood: Bollywood India’s Hollywood Largest film industry in the world Puts out more than 1000 films/year (most are crap, but some are worthwhile… kinda’ like Hollywood) Many films funded by foreign investors, Indian banks, and Mumbai’s criminal underground Important part of the Mumbai economy and Indian culture Bengalūru: Bengalūru Kris Kohtz Basics: Basics Capital of Karnataka Population of 7 million $6460 per capita income Fastest growing marketStrengths: Strengths Business Process Outsourcing (BPO) Comparative Advantages Software exports Information TechnologyChallenges: Challenges Infrastructure Regulations Expansion into China CHENNAI Also known as Madras : CHENNAI Also known as Madras Rachel Oleniacz Demographics: Demographics City of 6,400,000 Fourth largest metropolitan Second largest exporter of IT & services Connected by the Golden Quadrilateral ProjectCulture & Roots: Culture & Roots Tamil Nadu ~ The Province Tamil ~ The Language Bharatanatyam Kalakshetra Carnatic music Music Season Hindu TemplesNomenclature & History: Nomenclature & History The city with two names Madras Patnam by The East India Company Chennaipuri by the locals Foreigners’ role in the then town Port and trade சென்னை Commerce & Trade: Commerce & Trade Chennai port General industrial (containers) Automobiles Shift to green & clean Ennore port Coal Ore Bulk cargoAutomobiles: Automobiles Detroit of South Asia Potential as one of top three automobile giants in the world Ford, Hyundai, Mitsubishi, TVS, Ashok Leyland, & BMW Slide34: CALCUTTA Suresh Lee KrishnamoorthyCALCUTTA: CALCUTTA 14 million inhabitants Manufacturing centered Faced major productivity crisis Political instability RECOVERY ISSUES: RECOVERY ISSUES Strong focus on certain industries Major devaluation of the rupee High associated inflation Currency trading and speculation could not be controlled RECOVERY AVENUES: RECOVERY AVENUES Major growth in the IT sector Calcutta Stock Exchange Slide38: QUESTION?