1. GB Club Conference, East Lansing, MI November 2011

2.  Michigan in January

3.  India in January

4.   GDP of $ 1.7 trillion (4 th largest economy in the world)  GDP growth rate of 8% ( year ending March 2012)  FDI inflow of $ 48 billion in the last two years Key Statistics

5.  Positive Trend  Population 1.1 billion ( 70% rural)  27% of the population below the poverty line in 2005 vs. 53% in 1978  63% literacy rate in 2006 vs. 53% in 1978

6.  Melting Pot!  29 major languages and more than 2000 ethnic groups

7.   Indus Valley Civilization flourished during the 3 rd and 2 nd millennia B.C.  The Classical Indian culture dates from around 1500 B.C.  Influence spread through seaborne trade  British rule from the 19 th century till 1947  Parliamentary system, based on the Constitution, with power divided between the Center and the States History

8.  The Turning Point  The collapse of the Soviet Union, which was India's major trading partner, and the Gulf War, which caused a spike in oil prices, resulted in a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans  In response the Govt. initiated economic liberalization in 1991  The reforms did away with the “License Raj” reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors.

9.  Results  India has progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased financial liberalization.  This has been accompanied by increases in life expectancy, literacy rates and food security,

10.  Sector% of GDP% of the Labor Force Agriculture18.5%52% Industry26.3%14% Services55.2%34 % The Economy AgricultureIndustry Rice,Wheat,Cotton, Oilseeds,Sugarcane,Tea, Onions,Potatoes, Jute, Dairy,Poultry,Fruit Textiles,Chemicals, Steel,Mining,Cement, Transport,Pharma,Food Processing,Machinery

11.  Globalization’s promise has been fulfilled  High-productivity employment opportunities have expanded and structural change has contributed to overall growth.  Not so much in productivity growth within individual sectors, where performance has been broadly similar across global regions, but in ensuring that the broad pattern of structural change contributes to, rather than detracts from, overall growth

12.  Foreign Trade  Major export commodities include engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewelry, textiles and garments, agricultural products, iron ore and other minerals.  Major import commodities include crude oil and related products, machinery, electronic goods, gold and silver.

13.   Private consumption has reduced from 60% to 50% of GDP while investment has grown from 42 to 50%  India will see further reduction in poverty  Middle class is expected to grow tenfold.  Urban areas will continue to grow-there are already 20 cities with more than 1.6 million inhabitants – potential consumers, entrepreneurs and industrial/service workers Economic Prospects

14.   Citibank since 1902  Colgate since 1937  P&G (predecessor) since 1951  IBM since 1951(left in mid-70’s and came back in 1997)  Cummins since 1962  Bank of America since 1964 American presence in India

15.  Europe’s there too…  Unilever  Nestle  Siemens  HSBC  Bosch  Bayer  BASF  Scandinavian multinationals

16.   US-India Business Council  Silicon Valley and other networks  Five US Consulates in India  Rotary, Lions, Alumni groups  NGO’s: Ford, Rockefeller and Gates Foundations  Cooperation in Defense, Scientific Research, Higher Education Indo-US Groups

17.  US Govt. Presence  The new consulate compound will house all United States Government offices in Mumbai, including the Department of State, the Foreign Commercial Service, the U.S. Food and Drug Administration and the Foreign Agricultural Service.

18.   Ford  GM  Delphi  Flint  Haworth  How about a Michigan in India “team effort”? Michigan in India

19.   Pharmaceuticals/ Health Care  IT  Auto components  Other services  Cut Diamonds  Garments  Engineered products  Chemicals Strengths

20.   Electronics manufacturing  Infrastructure/Transportation/Power/Water  Green technologies  Agriculture/Food Processing Weaknesses

21.  Urgent need for:  Zero Waste/ Landfills  Low Emission  Reduction in water use/ Wastewater recycling  Energy Saving/ Renewable Energy

22.   Improved productivity from small holdings  Soil degradation  Irrigation  Food storage and processing  Low-cost nutrition  Diabetes- from two sources Meeting Food Needs

23.   Liaison office  Through an Agent/Distributor  Assembly or Manufacture in India  Technology licensing  US Exim-Bank support  The Partnership route How to go in

24.   Growing economy and large numbers of wealthy and middle-class people  Diversified economy, with competitive business people looking for new technologies and opportunities Why go to India

25.  Support  Established set-up for doing business: English speaking, Banking & Trade Finance, Law firms, Media ( print, television, social media), CPAs, Insurance  International airports accessible from East and West, international standard hotels, communication and health care.

26.   Automatic approval except for certain sectors  Investment in restricted sectors or where there are sector caps: approval of the Ministry of Finance- Foreign Investment Promotion Board  Inflow and outflow of funds under the authority of the Reserve Bank of India Investment Procedure

27.   Laboratory to adapt products and build up a supply base for developing markets  Export location for Middle East, Africa, Russia/CIS and SE Asia  American systems, procedures and efficiencies can build competitiveness  Large population of educated young people- welcome a chance to work in a professional environment Unique Reasons to go to India

28.   Source of technical and managerial talent-men and women  Indian companies are venturing overseas-deals worth $5.89 billion during the first half of 2011  India is a Democracy More Reasons

29.   National pride and confidence in their education, achievements, background and culture  Awareness of global issues  Interest in discussing political and other current topics  Negative issues CULTURAL FACTORS

30.   80% Hindu, 14% Moslem, 2% Christian, 1.3% Sikh  Close family ties-arranged marriage  Vegetarian  Each State is unique CULTURAL FACTORS

31.   “You’ve got to start with the customer experience and work backwards to the technology. You can’t start with the technology and try to figure out where you’re going to try and sell it…” –Steve Jobs The Wisdom of Jobs

32.  The Wisdom of Hoffman  “ Entrepreneurs, he says, often spend too much time creating products and too little figuring out how to get people to use them.”  Reid Hoffman of LinkedIn (as quoted by the New York Times, which describes him as “Tech’s Go-To Guy”