India – Land of Opportunities Second Largest Emerging Market Largest democracy – political stability & consensus on reforms Liberal & transparent investment policies Highest returns on investment; India 19.33%, China 14.25%, Thailand 13.3% Fourth largest Economy (PPP) - A safe place to do business Largest reservoir of skilled/semi- skilled manpower Long-term sustainable Competitive advantage - High growth rate economy

Brand India  R&D base for 100 of Fortune 500 companies;  GE’s largest R&D Center outside US;  Large pool of World class scientific and technical manpower;  Indian Institutes of Technology;  Indian Institutes of Management.  S&T policy aims at R&D investments of 2% of GDP by 2007  Among the only three Asian countries with super computing competence  Strong base for manufacturing;  Bharat Forge world’s largest forging facility  Most major MNC’s like Volvo,GM,GE, Chrysler, Ford,Toyota, Unilever, Cliariant, Cummins, Delphi sourcing high quality components and hardware from India  Hyundai Motors India – Global base for manufacturing small cars;  Indica(100% indigenous car) being exported to Europe as Rover City.  Hero Honda world’s largest manufacturer of motorbikes  Precision Automation & Robotics India (PARI) - 20 Fortune 500 clients

India Economic Advantage  The economy is expected to grow by % during and inflation is likely to be around %.  Agriculture to grow by 3.5 %, industry by 7 and services by 8.5 % next fiscal…Crisil.  India has one of the largest Telecom Networks in Asia with approx. 1,23,000 route kilometers of optic fibre cable network.  Forex Reserves are as high as $120billion, Exports are 20%, Industrial Production is  India ranked 10th among 29 emerging markets in the latest country… Economic Intelligence Unit (EIU)  Full signatory to WTO and committed to integrate completely with the world market by year 2005.

Infrastructure Development  US$ 12 billion Highways Development Programme; Over 13,000 Kms of Highways being developed.  US$ 22 billion ‘Sagar Mala’ programme to develop ports and shipping sector  Modernization of Airports at New Delhi & Mumbai.  World’s Fastest growing telecom market with unified licensing regime and world class international and domestic connectivity;  The Electricity Act, 2003 enables captive generation and trading in electricity;

India: FDI Outlook  Rated as the best BPO destination; AT KEARNEY  Best technology licensing regime - UNCTAD’s Global Competitiveness Report, 2003;  Rated among the most favourite investment destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.)  Major destination for foreign venture capital funds (Far Eastern Economic Review)  Sixth most attractive investment destination – ATKEARNEY Business Confidence Index, 2003  Also among the top 10 Tourist Destinations.

Skilled knowledge Workforce  India’s competitive edge is its manpower  Over 380 universities (11200 colleges)  1500 research institutions  Over 200,000 engineering graduates  Over 300,000 post graduates from non-engineering colleges  2,100,000 other graduates  Around 9,000 PhDs  Knowledge workers in software and service industry increased from 6,800 in to 650,000 in 2003

BPO India Advantage  Highly skilled, English-speaking workforce.  Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as percent when compared to their Western counterparts.  The cost of telecom and network infrastructure getting equivalent to rest of the world.  Dedicated workforce aiming at making a long-term career in the field.  Round-the-clock advantage for Western companies due to the huge time difference.  Lower response time with efficient and effective service.  Developed legal system.

CountryUSPLimitation Philippines Understands the US market; voice work; low attrition More expensive than India; small talent pool Canada, Australia Understands the US market; high- end skills High costs South Africa Time zone similar to Europe; 25% cost saving, good for niche work Skill shortage ChinaLow costs Quality of English not good RussiaTechnology skills Poor infrastructure; corruption; language Czech Rep, Hungary European language skills Small talent pool; high costs Mexico Immediate neighbor of US, 30% cheaper than US; Spanish skills Good only for low-end jobs Competition … Lagging Behind

Competitive Entrepreneurship  Prevalence of foreign technology licensing – Rank 1  Availability of scientist and engineers – Rank 2  Quality of management schools – Rank 9  Firm level innovation – Rank 12  Firm level technology absorption – Rank 16 (Source: Global Competitiveness Report, )  India amongst the leading entrepreneurial hotbeds globally (Red Herring Clubs India with Israel)

Global Business Leaders - Bullish On India ’ s Potential “ India is a developed country as far as intellectual capital is concerned ” “ India can be a major part of Dell ’ s operations and we are looking to capitalize on India ’ s human capital ” “ We are expanding our presence in India to take advantage of the ample R&D talent available ” “ India is handling the most sophisticated projects in the world..I am impressed with the quality of work ” JACK WELCH, GE JOHN CHAMBERS, CISCO MICHAEL DELL, DELL BILL GATES, MICROSOFT