1. www.ibef.org Indian Economy Opportunities Unlimited Indian Economy Opportunities Unlimited

2. www.ibef.org 2 GDP GrowthForexFII FlowFDIPer CapitaInflation 19905.8 per cent 1 < US$ 1 billionUS$ 1 million (1993)US$ 97 million 3 US$ 390 4 9 per cent 20087.7 per cent* 7 US$ 254.75 billion as on January 9, 2009 2 US$ 4.7 billion (August 2008) 9 US$ 18.7 billion (April–October 2008–09) 8 US$ 740 4 5.24 per cent as on January 3, 2009 5 Sources: 1. EIU database; 4. Indian Budget 7. Times of IndiaIndian BudgetTimes of India 2. RBI 5. iGovernment 8. DIPP (October Report)RBIiGovernmentDIPP (October Report) 3. DIPP 6. RBI 9. SEBIDIPPRBISEBI * Estimated for financial year 2008–09 8.3 per cent average annual GDP growth rate from 2003–04 to 2007–08

3. www.ibef.org 3 India: Among the Top 15 Countries in Terms of GDP at Constant Prices The Indian economy has witnessed unprecedented growth driven by booming services and industry sectors Contribution of the Services Sector increased from 48 per cent in 1999– 2000 to 53 per cent in 2007– 2008 Growth in Sectors at Constant Prices (2007–08) 2 : Industry: 10.8 per cent Services: 8.5 per cent Agriculture: 4.5 per cent Growth in Sectors at Constant Prices (2007–08) 2 : Industry: 10.8 per cent Services: 8.5 per cent Agriculture: 4.5 per cent Sources: 1. Times of India 4. MOSPITimes of India MOSPI 2. MOSPI Statistics 5. MOSPIMOSPI StatisticsMOSPI 3. RBIRBI India’s GDP is estimated to grow at 7.7 per cent in 2008–09. 1 27 per cent Increase

4. www.ibef.org India: Demographic Dividend Stock Position 2005 South East Asia Southern Asia India Africa China Latin America US Europe Japan World Additions to Working Age Population by 2010 In million 4,168 691 500 934 362 359 132 200 497 85 Growth in Working Age Population (15–64 years) by 2010 (in million) Young population (under 25 years) accounts for about 50 per cent of India’s total population. The country’s urban population accounted for 29 per cent of the total population in 2007 and is the second- largest in the world. It is projected to reach 37.8 per cent by 2025. Population Median Age (in years): 2008E 1 India is expected to register the largest addition to the working age population in the world by 2010. The country is expected to be powered by the largest working age population worldwide by 2050. Its labour costs, as a percentage of value added, are one of the lowest among Asian countries. 4 Sources: 1. CIACIA 2. International Herald TribuneInternational Herald Tribune 3. United Nations StatisticsUnited Nations Statistics 4. India Brand Equity FoundationIndia Brand Equity Foundation

5. www.ibef.org 5 Increased Confidence of Investors in Indian Companies Adequately increasing forex reserves provide security against any possible currency crisis or monetary instability. Increased confidence of investors in Indian companies has led to an increase in cross-border borrowings by corporate houses. In 2007–08, forex reserves grew by approximately 56 per cent over 2006–07. They were recorded at more than US$ 254.75 billion in the third quarter of 2008–09. 1 India’s forex reserves are in excess of external debt The increase in the external debt- to-GDP ratio is attributed to the rise in private external debt during 2007–08 as compared to 2006–07. 2 Sources: 1. RBIRBI 2. Ministry of FinanceMinistry of Finance

6. www.ibef.org 6 India: Exports & Imports Scenario(1/2) The services sector has been a major contributor to exports from India. Imports by India primarily include petroleum products and minerals. The acceptance of Indian products, along with the cost advantage, has provided an edge to Indian companies in the global market. Sources: 1. RBI StatisticsRBI Statistics 2. RBI BulletinRBI Bulletin During April–October 2008, exports amounted to US$ 107.3 billion, a growth of 23.3 per cent as compared with 22.7 per cent during April– October 2007, with exports amounting to US$ 87.0 billion. 1,2 During April–October 2008, imports amounted to US$ 180.4 billion, a 27.4 per cent increase as compared with that in April–October 2007, with imports amounting to US$ 132.7 billion. 1,2

7. www.ibef.org India: Exports & Imports Scenario(2/2) Imports of Top Five Commodities 1 Source: 1. DGFTDGFT S. No. Commodity2007–08* Amount (in US$ mn) Percentage share in total exports 2008–09 (April–June) Amount (in US$ mn) Percentage share in total exports 1.Petroleum (crude and products)29,044.5017.829,493.3719.71 2.Gems and jewellery19,821.3512.164,724.909.81 3.Organic chemicals 7,174.224.402,034.724.22 4.Machinery and instruments 6,797.524.17 2,130.304.42 5.Iron and steel 6,559.944.022,297.604.77 *Data for April–March 2007–08 S. No.Commodity 2007–08* Amount (in US$ mn) Percentage share in total imports 2008–09 (April–June) Amount (in US$ mn) Percentage share in total imports 1.Petroleum (crude and products)86,281.5234.2932,346.6941.67 2.Machinery including electrical and electronics 45,377.8217.9513,515.2517.41 3.Gems and jewellery26,453.6110.517,088.369.13 4.Aircraft, spacecraft and parts13,312.295.29210.530.27 5.Iron and steel 9,093.253.612,637.973.39 *Data for April–March 2007–08 Exports of Top Five Commodities 1 7

8. www.ibef.org The computer software and hardware sector received 12 per cent of the total FDI inflow between April 2000 and October 2008, followed by the telecom sector (8 per cent). The services sector received the highest FDI inflow (22 per cent) during this period. 1 FII growth slowed down in 2008–09 due to the sub-prime crisis. 2 8 140 per cent increase India: Attractive Investment Destination India ranked second on the 2007 AT Kearney’s FDI Confidence Index. In 2007–08, FDI inflow grew by 56 per cent over that in the previous year. With improved PE ratio and ROE, Indian markets have attracted large investments. Sources: 1. DIPP (October Report)DIPP (October Report) 2. SEBISEBI 3. DIPPDIPP 56 per cent increase

9. www.ibef.org 9 India: Consistent PE Deals and M&As in 2008 Growth Drivers  Globalisation and increased competition  Focus of companies on achieving economies of scale  Focus on emerging markets The private equity deal value was US$ 11 billion. The total value of M&A deals was close to US$ 31 billion. Trends  The volume and value of cross-border deals is greater as compared to domestic deals.  PE houses funded projects as well as made a few acquisitions in India.  Investments were also made in niche sectors, such as microfinance, oil and gas, and automotive. Sources: 1. Deal Tracker Grant ThorntonDeal Tracker Grant Thornton 2. Economic TimesEconomic Times 3. IBEFIBEF 4. RBIRBI In 2008, a total of 454 M&A deals and 312 PE deals worth US$ 41.54 billion were signed. Despite the global financial crisis, India witnessed consistent PE deals and M&As in 2008.  The IT&ITeS sector witnessed maximum M&As (102).  By value, the telecom sector leads the pack with M&As worth US$ 5,783.95 million.

10. www.ibef.org 10 Major Overseas M&A Deals by India Inc. US$ 12.1 billion Tata Steel bought Corus Plc in 2007 US$ 6 billion Hindalco acquired Novelis Inc. in 2007 US$ 1.58 billion Essar Steel acquired Algoma Steel in 2007 US$ 2.3 billion Tata bought Jaguar and Land Rover in 2007

11. www.ibef.org 11 Major Overseas M&A Deals by India Inc. US$ 2.8 billion ONGC acquired Imperial Energy PLC in 2008 US$ 1.6 billion Suzlon Energy Ltd. acquired REpower in 2007 US$ 658 million HCL Technologies acquired Axon Group Plc. in 2008

12. www.ibef.org 12 Major M&A and Investment Announcements in India US$ 0.9 billion Etisalat acquired a 45 per cent stake in Swan Telecom Pvt. Ltd. in 2008 US$ 1.7 billion Microsoft plans to spend on its development operations in India by 2012 US$ 2 billion Signet Solar plans to establish three manufacturing plants to produce photo- voltaic units US$ 12 billion POSCO plans to invest in building steel manufacturing plants and facilities in India by 2016

13. www.ibef.org 13 Major M&A and Investment Announcements in India US$ 185 million CDC plans to invest in six PE funds in the Indian market Maxis plans network expansion in India US$ 4 billion–5 billion Lafarge plans to expand cement capacity in India Over US$ 1 billion Source: 1. The Economic TimesThe Economic Times Deutsche Telekom acquired a 17 per cent stake in Devas Multimedia in 2008 Over US$ 75 million

14. www.ibef.org 14 US$ 0.5 billion Reliance Communications plans to invest in the Ugandan market Indian Companies’ Expansion Plans US$ 0.2 billion Bharti plans to provide services in the Sri Lankan market RIL plans to invest in its recently acquired polyester manufacturing facility in North Carolina US$ 0.21 billion Sources: 1. SifyBroadbandSifyBroadband 2. International Business TimesInternational Business Times 3. IBEFIBEF

15. www.ibef.org 15 India: To Emerge as a Major Economy in the World 2008 Global Retail Development Index (GRDI) AT Kearney lists India as the most preferable destination for the services sector (2007). The services sector continues to attract interest from major global players; large investments are being pumped into it. India is expected to outperform other BRIC countries in terms of GDP growth rate from 2015. 2 Sources: 1. AT KearneyAT Kearney 2. BRIC ReportBRIC Report India ranks second on the 2008 AT Kearney’s Global Retail Development Index. 1 2007 Global Services Location Index Projected GDP Growth Rates for Select Upcoming Economies

16. www.ibef.org 16 BRIC Report, Goldman Sachs “I think it is still an incredible event that the Indian economy is expected to grow at 6.5–7 per cent.” Robert Morrice, Chairman (Asia-Pacific), Barclays Plc “We see India as the most attractive market in the region.” John Redwood Economic Competitiveness Policy Group, UK “India is now truly a land of opportunity.” HS Lheem, MD, Hyundai Motor India “We have proven to the world that global cars can be manufactured in India.” Ravi Venkatesan, Chairman, Microsoft India “By 2032, India will be among the three largest economies in the world.” Why India?—Quote Unquote Travyn Rhall ACNielsen “The Indian market has two core advantages—an increasing presence of multinationals and an upswing in IT exports.” Dr.C.K.Prahlad, Management Guru “Constraints in India can be a source of dramatic global innovation, such as Tata Nano and a host of other low-cost products.” Andrew Moss, CEO, Aviva Global “The growth potential in India will remain strong in the long run compared to many of our other businesses in the world.”

17. www.ibef.org 17 DISCLAIMER This presentation has been prepared jointly by the India Brand Equity Foundation (“IBEF”) and Evalueserve.com Pvt. Ltd., EVALUESERVE (“Authors”). All rights reserved. All copyright in this presentation and related works is owned by IBEF and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of the Author’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. The Author and IBEF neither recommend or endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this presentation. Neither the Author nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.