India & World

 50,000 babies born a day in India, 2100 per minute. 3, 62,000 around the world.
 World 6%, India 6.5%, China 2%, US 0.7%
 Domestic saving of India is 30% of GDP.
 Investment to GDP ratio 34%
 Consumption account for 60% of Indian GDP.
 NSDL have over 1 crore demate and CDSL 68 lakh = 1.7 crore demate in india
 RBI allow Indian national to invest upto $2, 50,00 each year in international market.
 the country's apex bank, allows Indian companies to invest up to four times of net
worth abroad
 In FY10 GDP grown by 7.4%
 1.8 billon Muslim around the world, 52% under the age of 24.
 Muslims estimated to spent $2.1 trillion a year on halal product, the market is growing
at $ 500 b annually
 India have 19% Muslim population

 GDP - composition by sector: agriculture: 16.1%

industry: 28.6%
services: 55.3% (2010 est.)

 SME contribute 45% share in manufacturing output & 40% in overall export from
India.
 In numbers SME constitute 90% of total Industrial Enterprises.
 40 years ago Chinese were as poor as india, now they are 3 times richer than india.
 India will add another trillion $ into GDP in 5-6 years- MOSL wealth creation
study’10.
 Reliance Ind. Biggest wealth creater
 Unitech fastest wealth creater – over 5 years
 HDFC 10 years CAGR of 25%
 Sun Pharma 24%.

 StanChart bank future wealth report says

 57% of wealthy surved around the globe said Income from their business
was NOT an important contributor to their wealth
 61% said income from listed investment & 29% said income from unlisted
investment were important.

 Meril lynch global wealth management & Capegamini’s world wealth report
says
 Total wealth of world’s millionaires grew by 18.9% to $39 trillion in ’09.
 North American millionaire investor slashed their US portfolio by 5% in
’09 to 76%.
 By ’11 it is projected to be 68%, releasing $1.3 trillion to be directed to
asia, latin America and rest of world.
 Wealth of $ 1 million and above are holding cash of more than $ 10 trillion
(Investible money).
 HNWI = minimum disposable wealth of $ 1 million.
 HNWI in Asia pacific region at end of 2009 are in population of 3 million,
which is equal to their Europe counterpart.
 In number term India has 1,27,000 HNWIs.
 In dollar term asia account for $9.7 trillion, a couple of billion more than
that of euope’s HNWI.
 Global HNWI $39 trillion.
 Globally most ultra HNWI and HNWI live in north America.
 Total wealth held by HNWIs in india estimated at Rs.73 lakh crore ($1.6
trillion) expected to double over next 3 years to Rs. 144 lakh crore.
 247 Portfolio Managers registered with SEBI, managing Rs. 2.7 lakh
crore.
 Worldwide market capitalization shot up by 50% from 32.6 trillion to
$47.9 trillion.
 On BSE 1027 manufacturing and services firm account for 56% of market cap.
 Banks, NBFCs and OMC account for 44% market cap.
 India’s equity index has 83% correlation with US equity.

 Indian retail market valued at $400 billion, 5% contributed by organised retail.

 FMCG market is $ 20 billion
 India has around 50 million (5 crore) kirana stores
 Retail space in million sq ft

Retail Space- 35m sq ft

east west
11% 34%
north
21%

south
33%

 South and west account for 67% of total retail space in india

 Retail mix

Retail Mix
Food services PharmaJewellary
5% 1% 1%
Home
5%
Consumer durable
11% Apparel
38%
Footwear
4%
Lifestyle
4%
Food & Groccery
32%

 3.3 crore Indian paid tax

 1.2 crore people invest through NSE
 About 451 clients account for almost 50% of the average daily turnover.
 In derivatives 106 clients account for 50% of the average daily turnover.
 India has 400 million deposit account holder
 250 million household in india
 33% penetration of cable tv.
  Prof. Siddharth Sinha
 Gross Domestic Savings

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 Flow of Fund FOF into 6 sectors

 Six sectors of economy

1. Corporate 5. Residual household

2. Public Proprietary fim,
3. Banking partnership, NGO,
4. Other financial Individual
institution 6. Rest of the world

 Nine investment of Economy

1. Currency 6. Life insurance

2. Deposits fund
3. Loan & 7. Provident Fund
Advances PF
4. Investments 8. Trade Debt
5. Small savings 9. Foreign claims

 World GDP $ 62 trillion

 US – 5% of world population, 14% of world economy.
 20% of world GDp
 US consumes 24% of world energy
 $ 2.5 trillion Health Care expenditure every year (2.5 times Indian GDP)
 Holds 25% of global debt
 $ 33 b toys market.

 China 15.6 % of world economy

 2.3% world debt
 Central bank rate 2.79%. Banking PLR 5.81%.
 India 8.6 % of world economy
 2% of world total debt.

 SKS microfinance, india’s largest microfinance company.

 SKS microfinance 2nd in world to launch IPO.
 Microfinance sector in india covers 30 million poor borrowers, with nearly 25000
crore small loan.
 Indian IT sector valued at $60 b.
 Sudhir Vasudeva, don of Mumbai High
 Mumbai High belongs to ONGC, produces 14-15 lakh ton a moth, it is 160-170 Km
off the cost of Mumbai, life till 2030.

 Globally lenders written-off $1.8 trillion in financial crisis.

 36 years old Basel Committee, a international body central banker and regulator.
 JP morgan net revenue more than $100 b.

%
commercil banking
5%
corporate banking
6% Retail FinSev
Asset Management 30%
7%
Tresury & security
7%

card services
19%

Investment Banking
26%

 Jamie Dimon JP head.

 Lyold Blankfein – Goldman Sach
 John Stumpf – Wells Fargo.

 Indian banking penetration of 1 branch per 14000 people.

 The estimated banking penetration in India is about 45% among middle and high
income groups and less than 5% among low income segment.
 41% of rural savings are held as cash according to NCAER estimates.
 89 % of house hold sector saving is channelled through bank deposit, insurance, mf
and small savings
 Around 12.5% was in cash.
 Four crore farm households out of over 10 crore, have access to the institutional
credit.
 35% of household savings are channelled into physical assets such as property and
gold.
 Over the past five years, Indians bought 3,500 tonnes of gold worth Rs 3-lakh crore
 63% of household’s financial assets are in form of cash and deposits.
 Equity related investment formed only 10% which is in sharp contrast to 22 per cent
in China and 30-40 per cent in developed countries.

 Debit & Credit card account for 3% personal expenditure in India.

 Rs.65,000 crore paid through paid through credit card grown by 10% in a year and
Rs.26,000 crore through debit card.

 Under current regulation ECB should not be raised to pay domestic loan.
 ECB can be securitized against realisation outside India, guarantee of bank etc.
 FDI allowed in bank is capped at 74% (49% automatic route + 25% FIPB)