Mithilesh Jha, an IITian graduate engineer from Kanpur in computer engineering and working in some high executive position in Cadence India met me during my morning walk today. He was with one of his sons who is in IT-BHU studying computer engineering. I was amazed to hear from him that he has left his job and gone for starting his own chip designing company. Many young Indians are doing this. Even few fresh IIM graduates are preferring to go for doing something of their own leaving the foreign postings with huge salaries that couldn’t be dreamt off even few years ago. As it appears from all the news and reports, Indian economy is booming.
India a trillion-$ economy: Indian GDP at current market prices, according to advance estimates, is Rs 41,00,636 crore in 2006-07. With the rupee below 41 a dollar, India becomes a trillion dollar economy. And it is going to race up.
NRI: According to the report of the high-powered committee on making Mumbai an international financial hub, the 20-million strong NRI community has an estimated financial wealth of over $500 billion. Factor in other assets like real estate, gold and art and the total estimated wealth of the NRI community, the report says, is over $1 trillion.
FDI: India at least its government aims at $30 billion in foreign direct investment this year on the back of huge interest in the country from auto and electronics manufacturers. FDI would constitute 3.3% of GDP, up from 2.5% last fiscal. In 2006-07, FDI inflows touched $19 billion, of which $3.5 billion were reinvested earnings. Interestingly,
FDI inflows in the current year are mainly increasing in manufacturing, auto, semiconductor, electronic hardware and services.
India in 2025: According to a recent study from McKinsey Global Institute, India’s market will be the world’s fifth largest by 2025 from the current ranking at 12 surpassing Germany. And the middle class will have grown almost 12 times, from 50 million today to 583 million. Over 23 million Indians-more than the population of Australia today-will number among the country’s wealthiest citizens. Simultaneously, the deprived segment will drop from 54 per cent of the population in 2005 to 22 per cent by 2025.
Superlative Performing Indian IT players: The top five suppliers of offshore product design services (PDS) are large Indian IT companies and account for more than 60 per cent of the market, according to a newly-released ARC advisory group services report. The offshore PDS market is set to grow by 28 per cent annually, and is estimated to be over $4.1 billion business in 2011.
India becoming outsourcing hub for market research (MR): While most of the global firms like Taylor Nelson Sofres (TNS), MarketTools and Greenfieldonline are operating large captives in India, many Indian companies are gearing up to tap opportunities in market research outsourcing. India today has about 15 MR firms including large ones like Ugam Solutions, Annik Systems, Cross-Tab and Markelytics. Even BPO firms like WNS and knowledge process outsourcing firm like eValueserve are significantly involved in MR.
According to a study released by Evalueserve, India’s top Knowledge Process Outsourcing firm, Indian KPOs will generate nearly 280,000 jobs and up to $11-12 billion as revenues by 2010. India Business Outsourcing sector is moving towards high in many areas, be it legal services, financial analysis and report, publishing, engineering services, product or architectural designs, or R&D.
India IT companies to hire 1 lakh : India’s top five software companies plan to add 1,00,000 this fiscal year on top of a record 76,500 new employees who joined these companies last year. Manufacturing that has an employee base of 41.5 million will double by 2010.
Net profit for the top five outsourcing companies – Tata Consultancy, Infosys, Wipro Ltd., Satyam Computer Services Ltd and HCL Technologies Ltd, ranked in that order – grew to a collective US$3 billion (euro2.2 billion) for the fiscal year through March, up 47 per cent. Sales, meanwhile, jumped 41 per cent to a combined US$13.6 billion
(euro10 billion). And the top four software companies (HCL Technologies figure was not available) won 713 new clients last year.
Indian IT consulting firm Tech Mahindra has been ranked as one of the top five leaders in the overall business support systems (BSS) worldwide. Tech Mahindra focuses on the communications space, leaving behind the global majors like Capgemini, CSG Systems and Comverse, as per the latest Gartner report — ‘Market Share: Business Support Systems for the year 2006’.
Pharmaceutical: A dozen Indian pharmaceutical companies led by Aurobindo Pharma, Wockhardt, Ranbaxy, Dr Reddy’s Lab and Sun Pharma have bagged almost one-fourth of generic drug approvals in the US in the four-and-a-half month from December 2006. Out of the 186 original abbreviated new drug application (ANDA) approvals granted by the US Food and Drug Administration (FDA) during the period, about a dozen Indian companies bagged 43 approvals, which is 23.11 per cent of the total approvals granted.
According to the comparative survey by the Japan External Trade Organisation (JETRO), between 2006 and 2007 India is top of the list with an index of 67.6, followed by Vietnam and China with 51.5 and 39.9, with regard to the business prospects of the subsidiaries of Japanese companies.
Rural spending shows prosperity: According to the 61st round of the National Sample Survey Organisation (NSSO) report, the number of rural households using LPG has increased six-fold between 1993-94 and 2004-05. However, only 12 in 100 households use cooking gas. Rural India is spending a lot more money on education: Between 1999-2000 and 2004-05, the share of rural expenditure on tuition and other educational fees has risen from 29% to 44%.
Private Sector: RIL FY’07 turnover crosses $25 billion mark RIL, India’s most valued firm with a market cap of over $50 billion, has become the first private entity to cross the 25 billion dollar revenue mark.
Corporates have lined up investment worth $400 billion, and are treating human resources as precious commodity. While Tata Motors are having effective alliance with Italian giant Fiat, Mahindra and Mahindra is working with Nissan and Renaults in a facility with an investment of Rs 4,000 crore.
Indian consumers will soon have one of the cheapest mobile phones in the world, priced at Rs 777 ($19), while Tata Motors are trying to produce entry level passenger car at Rs 1 lakh. According to estimates while the number of Indian subscribers for cell phones will go above 250 million, the sales of passenger vehicles will be exceed that in Germany by 2010.
The personal computer market is set to grow by 22 per cent in this financial year and may record sales of 6.5 million units.
The Indian information technology and related services (IT/ITeS) industry is predicted to become a $100 billion plus industry by 2011, growing at a compound annual growth rate (CAGR) of 18 per cent, according to an IDC report.
Thee organized retail sector will triple in size from Rs 35,000 crore in 2004-05 to Rs 1,09,000 crore by 2010. Reliance, Aditya Birla Group, and Bharati with Wal-mart will be major players, reliance retails alone aims to recruit over five lakh employees by 2010.
All village panchayats in Kerala would soon have their own custom-made web portals with all the information relating to the panchayat in Malayalam. Akshaya, a Kerala government initiative for cent percent e-literacy in the state, is all set to implement a pilot project to establish panchayat-level web portals with people’s participation in select panchayats of Kannur district with financial and technical assistance from Unesco.
Indian expressways are getting six-lanes. Aviation industry is booming. Indians are becoming major spenders abroad besides acquiring big companies. Railways are investing in upgradtion of technology.
Is India bubbling or booming?