How Emerging Markets Emerge: An Indian Perspective A Presentation to Perchstone & Graey’s 6 th Annual Law Series by Indian High Commissioner Mahesh Sachdev (Lagos, May 24, 2012)

A Snapshot of India Population: 1.21 Billion (2 nd Largest) on Area: 3.2 mn sq kms (7 th Largest) Polity: Parliamentary Democracy under 1950 Constitution with electoral college of over 714 mn; 15 General Elections in 60 years. Media: ~70,000 Publications, 1,400 TV Stations, 100 m on Internet GDP: PPP: $4.46 Tn (World’s 3rd Largest); Nominal: $2.0 Tn (10 th ) Composition: Services:58%, Ind.:28%, Agric.:14% GDP Growth: 10.4% in 2010; 6.9% in ; 6.9% in 2012 (proj.) Trade/GDP: 40%; Exports: $303 bn; Imports $489 bn ( ) Fixed Investment/GDP: 32.2% Market Cap/GDP: 100% Approx. Fiscal Deficit:5.9% of GDP Cumulative Foreign Investments on : $198 bn (FDI); $172 Bn (FII); $ 92 bn (Investments Abroad) Mixed Economy under Independent Regulators 3

Nigeria-India: Current Picture Nigeria’s 2 nd Largest Trading Partner ($16.4 bn in 2011; N2I: $ bn; I2N:2.648 bn) Largest Investor in Nigeria in 2010 ($ 5 bn) Indian Cos are Nigeria’s 2 nd Largest Employer Pole Spot in IT, Health, Steel, Power X-mission Growing Medical Tourism, Education & Training Incoming Projects: Power, Petro-Chem, Health Growing P2P Contacts: 33,000 Visas in 2011 ~35,000 Indians in Nigeria (<0.2% of Population) 4

Nigeria-India Business Ties Indians Began Arriving in Lagos 1890s Initially in Trade & Textiles; Expanded to IT, Telecom, Pharma, Agric., E&P, Mfr-ing, Steel, Transport, Services, Distribution & Retailing, etc Role of Indian Business Professionals Growing Nigerian Business Presence in India Indian Businesses in Nigeria Have Their Sub-Sets: Nigerian-Indian Groups India-Based Groups Third Country Based Indian Groups Indian Professionals 5

India’s Economic Re-Emergence India was World’s Top 2 Economy till 1815 Decline due to Colonisation & Missed Industrial Revolution Resuscitation since Independence in 1947 with 5-Year Plans since 1951; 12th FYP Recently Launched Phases: ; ,

India’s Economic Transformation From Typical Primary Sector Economy to Services Sector Driven From Insular Self Sufficient to Globalised From Public Sector Led to Private Sector Dominated From Licence Raj to Opportunity Driven From Govt Controlled to Self-Regulated

Drivers for Indian Economic Growth Incremental & Careful Economic Planning Creating Macro-Economic Conditions Cohesion & Continuity Thru Consensus Leveraging Size, HR & Frugal Innovation Improving Regulation and Oversight Govt as Mediator among Stake-Holders Globalisation & Reforms at Indian Pace Monitoring Data and Trade Policy Aspects

India & Global Context 20 Years of Liberalisation & Globalisation India’s Rising Share of Global Economy Knowledge-Based Economic Interface Rise of Indian MNCs & Professionals Innovation & Rise of New Economy Downside of Globalisation: Jobs, Decline of Old Economy, Inclusion, Urbanisation, Regulatory Challenge & Corruption

Current Economic Agenda Launch of 12 th Five Year Plan Global: High Commodity Prices; Falling Demand; Macro-Economic Instability; EU; Protectionism; Terror & Piracy Domestic: Coalition Politics, Subsidies; Infrastructure; Agric Challenges: Boost Growth & Confidence, Curb Inflation &CAD, Reforms, Impart Skill Austerity or Stimulus?

Post-Emergence India? Long Way to Go in Creating Modern & Prosperous India Sustaining Inclusive Growth & Equity Infrastructure: Physical & Human KBE, Skill-Acquisition Mainstreaming Rural Economy Energy Security Manage Credibility thru Transition

12 Thank You and Wishing You All Productive Ties with India! Comments & Questions are Welcome: