The Current Decade will be a promising one for the Indian Economy: Zinnov

Top Quote Indian Economy poised to overcome the current sentiment of a downturn. End Quote
    Quote 61 Indian companies feature in the Forbes list of top 2,000 global companies. Quote
  • (1888PressRelease) June 27, 2012 - New Delhi, Zinnov Management Consulting, a leading Market Expansion and Globalization Advisory firm, today presented a positive& robust outlook on the Indian economy as opposed to the sentiments that are doing rounds in the industry. Close on the heels of, and in striking contrast to Fitch's recent downgrade of India's credit rating outlook to negative, Zinnov believes this to be a momentary phase and showcased reasons for it to be a promising decade.

    Commenting on the market situation, Mr. Praveen Bhadada, Director- Market Expansion, Zinnov, said "India is no longer an emerging market but a happening one, where such market ups & downs should be acceptable. Both multinationals as well as Indian companies aspiring for growth should continue to take focus on the long-term view, with which they established their presence in country.

    "While quarterly numbers are important, it is also equally essential to focus on market creation activities and opportunity realization to reap benefits in the next five-year horizon. With the rapidly growing internet and mobile user base and increasing demand for services through new technology challenges, investors should not be deterred by a temporary phase when the fundamentals continue to remain strong", he added.

    Showcasing and listing some of the strong reasons why various spokes of the ecosystem need to keep faith in these turbulent times, Zinnov brought to light some of the factors on which, we should be betting high on:

    1. India technology consumption is exploding: India currently has over 123 million internet users, over 600 million people use mobile phones, 15 million people do online transactions and over 51 million people log on to Facebook. Over 170 million UID numbers have already been allocated to Indian residents. The $30 B+ domestic IT market is growing at a much faster rate than the exports market. India is already seeing $B+ start-ups emerging. Ecommerce market is expected to reach $23 B+ in the next 4 years. Cloud computing is expected to see revenues of the order of $5 B in the next 5 years.

    2. GST implementation will accelerate economic growth: While GST implementation has been long delayed, but once implemented, GST is expected to increase India's GDP by 0.9% to 1.7% as per NCAER. This will also result in export gains of 3.2-6.3% and import gains of 2.4-4.7%. GST along with FDI in retail segment will increase the FMCG industry size by $50 Billion.

    3. Indian MNCs and vast base of SMBs will be impossible to ignore: 61 Indian companies feature in the Forbes list of top 2,000 global companies. Over 175 companies can potentially feature in the list by 2020. India also has 45 million SMBs, making India the second-largest country in terms of SMB potential, next only to China.

    4. Large states in India are already booming: India's top 5 most populous states can hold the combined population of Brazil, Mexico, Philippines, Vietnam and Egypt. Maharashtra's GDP is equivalent to that of Singapore. GDP of states such as Delhi, Bihar, Chattisgarh, and Goa has grown over 10% in FY12. Over 2,700 investor MOUs were signed in Gujarat in just one day as part of the global investors' summit in 2012.

    5. Indian non-metro markets hold tremendous untapped potential: In the last 10 years, IIT-JEE has been topped by a non-metro individual 9 times. 5 out of 6 Indian Olympic medal winners since 1990s have come from non-metro cities. 60% of the 80 cricketers playing in India's national team since 2001 have come from non-metro cities.

    6. Infrastructure improvements are on the rise: Construction and real estate accounts for over 25% of the total Indian GDP. Projected infrastructure investments in the 11th five year plan were nearly 2.5 times that of anticipated investments in the 10th five year plan. The total projected investment in the 11th Five Year Plan was $78 B+ for road infrastructure and $64 B+ for railways. MNERGA scheme had a total outlay of $30 B for the period 2006-11. In FY11 alone 41 million people were employed under this scheme.

    7. Indian Media & Entertainment industry will outpace major global markets: IPL (Indian Premier League) already has a valuation close to that of NBA (National Basketball Association). 160 million people watched IPL on televisions world over. India is already the largest movie making industry with more than 1,100 movies per year as opposed to just 700 in Hollywood. Over 20 million people go for movies every day. India also has more than 600 TV channels and 70,000 newspapers across the country.

    8. Rising education level is making large base of Indians employable: India's literacy level has increased by 9.21% in the past 10 years to reach 74.04% in 2011. The number of Universities in India increased from 364 in the year 2004-05 to 654 in 2010-11. The number of students enrolling for higher education increased by 103% in the last decade. The number of graduates from Technical Colleges increased by 27% in just one year from 550,000 in 2010 to 700,000 in 2011. The government has decided to set up 6,000 model schools at the block level to benchmark excellence. GOI has framed a National Skill Development Policy to cater to the needs of the Industry for skilled workers.

    Last but not the least, it read that while India is certainly going through a difficult phase, aggravated by political uncertainty, but the fundamentals remain strong. While quarter results paint a challenging picture, the long-term potential in the Indian domestic market cannot be ignored.

    Zinnov additionally identified strong sales leadership, vertical specific solution capability, India specific customer success stories, strong training programs and effective partner ecosystem as some of the key Success Factors for the Indian Market, for times to come.

    To download the report, please visit the following link:

    About Zinnov

    Founded in 2002, Zinnov - meaning Zeal in Innovation - is a leading Market Expansion and Globalization Advisory firm, with specialization in areas like Global Sourcing, Emerging Markets Expansion, Human Capital Optimization, Small & Medium Businesses, Innovation, Cloud Computing and Enterprise Mobility. Zinnov provides advice to global leaders in business and technology and works collectively with them to tackle prevailing organizational challenges by analyzing changing dynamics, improving performance, and building institutional capability. The services delivered to its clients through advanced reasoning and analytical techniques, provides solutions that help in integrating organizational vision, business definition and processes

    For further details, please contact:

    Kinjal Chhetri or Kailash Pandiyan
    Email: Media ( @ ) zinnov dot com

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