INDIA CALLING
OPPORTUNITIES IN TELECOM
& ITES SECTOR
DOING BUSINESS IN INDIA
By
N K GOYAL
President,
Communications and Manufacturing Association of India, CMAI
Founder Member, Chairman Emeritus,
Telecom Equipment Manufacturing Association of India, TEMA
Council of Electronic Hardware Association of India
TEMA Export Promotion Council, Government of India
Director, NFL, Government of India
[email protected] 98 111 29879
AGENDA
- India Invites
- India Electronic Potential
- India Telecom
- Electronic & IT Industry
- Entry Strategy for Investors
- Environmental Issues
- Indo-Japan Synergies and R&D
- Leaders Recommend India
Dr Manmohan Singh
Hon’ble Prime Minister of India invites you
India has got off to a good start….
savor the wonderful journey of creativity and
enterprise taking place in the country.
India is a nation on the move, set to regain its
place in the community of nations as a plural,
secular and liberal society with an open
economy.
Address at McKenzie Board Meeting in India
24.10.2007
Dr Manmohan Singh
Hon’ble Prime Minister to Fortune Global Forum
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Be it FDI, investments in India’s stock markets or
investment in knowledge economy, the signals are
all positive. We will work to keep these positive.
Investment is an act of faith. It is shaped by
perceptions, by expectations and by all
uncertainties of life. India assure you that your
faith will not be misplaced.
All those who invest in India, who invest in its
future, who invest in India’s prosperity and who
invest in the capacity of Indian people will be
investing in the future of democracy.
29th October, 2007
India’s super growth rate
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Slowdown in World growth : 5.4% in 2006, 5.2% in 2007
and expected to fall 4.8% in 2008. India : Fell from 11.5%
in 2006 to 9.8% in first five months of 2007 - but yet
much above the world level!
Current GDP : 1 $ Trillion. World Bank report (Oct’07)
foresee India can innovate to $5 Trillion GDP!
Stocks booming : Sensitive Index (Sensex) took 15 years
to sail from 1000-10,000 points & 20 months to reach
20,024 points!
With Market capitalization at $1.58 trillion, India is
Number 9 in global pecking order after US, Japan, UK,
China, France, Hong Kong, Germany, Canada.
India foreign exchange reserves over US$300 Billion. Fifth
largest in world and very soon going to be fourth position!
Diverse and Unique India
Jammu
and
Kashmir
(C)
Himachal
Pradesh (C)
(B)
• 28 States & 6 federal
territories (UTs)
• 37 official languages and
1652 languages &
dialects. Most Indians
speak either English or
Hindi (More Indians
speak English than the
entire population of
USA)
• Largest Democracy in
the world; very strong
legal system
• Federal and provincial
governments elected by
Monetary Unit: Rupee
1.1 Billion People
the
people.
1 US$ ~ 41 Rupees (INR)3.3 million sq. kms area
- NORTH EAST (C)
Punjab
Haryana (B)
Delhi
NEPAL
Uttar
Pradesh(B)
Rajasthan
(B)
BHUTAN
Sikkim
r
Assam (C)
a
Bihar
(C) West
Bengal B)
Madhya
Prades
h(B)
Gujarat
(A)
Maharashtra (A)
Orissa (C)
Bombay
(A)
Andhra
Pradesh
Goa
Karnataka
(A)
Kerala
(B)
MALDIVES
Tamil
Nadu
(A)
m
Madras
Calcutta
BANGLADESH
Andaman and
Nicobar
Islands
(C)
GDP
Fastest Growing Nation
GDP grew at 9.8% during 2007, aiming double
digit growth

Today India is a services superpower in the
making. the 12th largest economy in world.
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Strong investment momentum
Market capitalization up from USD 140 Bn in FY
3000
GDP composition – FY 2007
2500
US$ BB

3228
3500
2000
1229
1500
1000
635
722
FY2005
FY2006
891
500
0
FY2007
FY2010
FY2020
2001 to > USD 1.58 Trn recently

FDI on the rise - USD 7.6 Bn (06) and USD 19.4
Industry
27%
Bn (07)

FII investment - USD 6.5 Bn in 2006-07

140 + public traded companies with market cap
> USD 1 Bn
Services
54%
Agriculture
19%
By 2050, India projected GDP is US$ 70 Trillion
Source: CMIE
India : The 5 Ds
• Democracy
– Largest democracy in
the world
– Largest digital elections
– 9 Prime ministers from 6
major parties, 50 + state
parties, 3 MM elected
representatives
– ONE POLICY
• Diversity
• Diaspora
– Highly diverse
– 23 languages, 30
provinces
– 6 major religions
– Cultural,religious,
& Climatic
• Demographics
– 1.12 Bn population, Remain a
‘young’ nation beyond 2050
– < 20 yrs population
– 442 Mn currently
– 479 Mn by 2050
– ~10 Mn finishing school, 600,000
Engineers and 3 Mn graduates
p.a
– Over 2 Mn Indians
outside India
– Indian companies
outbound M&A >
USD 15 Bn in 2006
• Demand
– 5th largest consumer market in
the world by 2025.
– 300 Mn growing middle class
– Rising incomes to lift 291 Mn
out of poverty to make middle
class 583 Mn by 2025
Ingredients for sustained and consistent economic performance
India advantage
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Local Market
A very rapidly growing domestic
market: CAGR 30%+
Global recognition for back-end
services:

A proven case for IP, embedded
systems and IC design
Profit from Local
Sales
Attractive for Manufacturing
Investments

Skilled employee base

Fast and upcoming modern
infrastructure (SEZs)
Proximity to EU and MEA market

Freight Cost; 20% cheaper than
China - Faster delivery and
lesser pipeline inventory
Advantage
India
Harness low cost
manufacturing
base to service
local, European
and MEA markets
Use India for IP and ITes
Services
-New Product
development
-Engineering services
-BPO
Manufacture
Back-end Services
India is a great Opportunity - –Triple Advantage
India’s Electronics Potential
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Current India market size about US $ 34 Bill. out of
which production $16.1 Bill. 2005-06 and imports
about $ 18.00 Bill. Exports $ 2.2 Bn.
Demand to grow from 4% of GDP to 12% by 2015
i.e.. 320 Bill. Total production may go up to $ 150
Bill. with employment potential of 21 mill.
Indian ICT spending is expected to grow at 19%
from $ 29.5 Bill. During 2004 to $54.8 Bill by 2008.
ICT exports including BPO during 2005 was $ 16.5
Bill.
Indian IT Sector….high growth
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Gartner report states that the top six India-centric offshore
service providers, collectively referred to as SWITCH companies
(TCS, Infosys, Wipro, Cognizant, Satyam and HCL
Technologies), accounted for 1.9 percent of the total $672
billion IT services market in 2006, compared to 0.5 percent of
the $554 billion IT services market in 2001.
At least two companies will be a part of the top ten companies
globally if current growth pace is maintained.
India-centric providers have perfected their respective value
propositions through global delivery models (GDMs), providing
high-quality yet lower-cost labour to buyers globally. These
companies are making inroads in key clients, often beginning
with smaller, project-based or staff augmentation work.
Indian IT Sector……cont.
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The average annual growth rate of the
SWITCH companies was 42.4 percent in
2006, compared with a 4.3 percent growth of
the market leader during the same period.
Gartner says "From being relatively unknown
brands a decade ago, leading India-centric
providers now offer formidable competition to
the global players.”
Indian Telecom
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World’s fastest Growing Telecom Market – 8-10 Mn.
subscriber addition per month
Second largest in the world after China
300.51 Mn. Subscribers, Mobile 261.09 Mn.,
tele-density 26 %
Fastest sale of a million mobile phones – 1 Week
World’s cheapest mobile handset made in India –
US$17.2. Reliance plans web enabled phone at $12.
World’s Most affordable color phone made in India –
US$27.42
Retail Market for Mobile Phones – handsets, accessories etc. is
worth over US$ 15 Billion and growth 15%
Internet Subscribers 9.27 Mn. Internet Mobile 31.30 Mn.
Broadband 3.90 Mn.
Indian Telecom……
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Lowest tariff but highest profitability.
Lowest Call Rates in the World at 2-3 US Cents,
Declining ARPU, even then Rs 275 per month for GSM
India ranks highest in Mobile monthly Minutes of Usages
per subscriber in Asia Pacific Region and second to USA
in the world….500 minutes per month
Innovative approach of doing business at lowest
operation costs.
Innovative value added concepts…missed calls, rural
applications, lowest prepaid charge of 2.5 cents.
Existing Indian Telecom Operators
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Consist of 7 fixed line and 12 mobile operators.
Fixed line dominated by two PSUs- BSNL & MTNL
constituting over 90%. Other 5 with 9-10 % share
are Tata Teleservices, Bharti Airtel, Reliance
Communications, HFCL Infotel, Shyam Telecom
Mobile by
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GSM-Bharti Airtel & Reliance in all 23 circles. BSNL,
Vodafone, MTNL, Idea Cellular, Aircel
CDMA- Reliance, Tata largest, HFCL, Shyam in one of the
States
New Licenses given for CDMA/GSM/Unified Access
3G Auctions likely in near future.
Government initiatives in Telecom
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National Telecom Policy 1994
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Establishment of Telecom Regulatory Authority of India (1997)
New Telecom Policy 1999
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Private sector to Supplement Government
Provide world class telecom service at affordable cost
Transition from Fixed license fee to Revenue Share
Introduction of Free Competition
Technology Neutral Licenses
Establishment of Telecom Dispute Settlement Appellant Tribunal
(2000)
Opening of National & International Long Distance
Establishment of Universal Service Obligation Fund
Govt. initiative in Telecom……
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National Broadband Policy 1994
ISPs permitted to use underground copper
cables for establishing their own last mile
linkages
Setting up of National Internet Exchanges
(2003)
Guidelines issued for intra-circle mergers of
licenses (2004)
Introduction of Unified Access Service License
Untapped Rural Potential

600,000 villages with 700 million people

530,000 villages connected

>50% of total GDP from rural India

Nearly 50% of Very rich + Well off
households in rural India
No. of Households (mn)
Demographic Classification
Urban
Rural
Total
Very Rich
4.84
1.32
6.16
Well off
29.45
27.36
56.81
Total
34.29
28.68
62.97
% of Total
54%
46%
100%
India Vision for Broadband
Year ending
Broadband
subscribers
2007
9 million
2010
20 million
2012
140 million
(Wireless 100
Million)
Broadband Deployment Plan - Urban
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Broadband deployment on ADSL
To use more than 25 million existing
copper loops in 1800 Towns/cities
To use existing 100 million Cable TV
network in all major Towns/cities
Broadband for all Secondary Schools &
Public Health care centers
Broadband Deployment Plan - Rural
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Broadband
deployment in 20,000 rural
Telephone Exchanges on ADSL covering more
than 25,000 villages
Broadband on wireless through Wi-Max in 1000
Blocks covering 30,000 villages
To set up 100,000 Common Service Centres
(CSC) in Villages
USO subsidy support scheme
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Universal support obligation (USO) subsidy
for shared wireless infrastructure in rural
areas
Support for 8,000 Towers by 2007
Subsidy for 10,000 additional Towers by 2010
Aim to provide wireless connectivity for
Broadband and Mobile services in rural areas
HUGE MARKET FOR VALUE ADDED
SERVICES
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India has huge market for VAS services
India ranks highest in Mobile monthly Minutes
of Usages per subscriber in Asia Pacific
Region and second to USA in the world.
As on Dec. 2006 Indian average 461 (GSM
454, CDMA 424)
USA 838, China 323, Russia 88, Australia 179,
Singapore 320, Malayasia 159, Korea 315,
Thailand 326, (June, 2006 Merril Lynch)
Electronics & IT industry
The Market: 2006-07

ITES & Software Exports: USD 31.3 bn ; Domestic: USD 8.4 billion

6.3 million PCs sold; Installed base: 22 million
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13 million TVs consumed; Installed base 100 million +
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Cable TV installed base 65 million
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5 million + DVDs sold: growing at 40% annually
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Internet users: 38 million+ including wireless mobile internet users 30+
million Broadband connections: 2.65 million
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Mobile sales: 75 million; Installed base: 209.08 million

Significant R&D and product development
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Sizeable presence of MNCs: Intel, IBM, Cisco, Motorola, Nokia, Samsung,
LG

India is suddenly attractive for hardware/electronics manufacturing
The PC market (Desktop + Notebooks)
7,500,000
Units
6,341,451
6,000,000
5,046,558
4,500,000
3,809,724
3,124,422
3,000,000
2,344,617
1,715,620
1,500,000
0
2001-02
2002-03
2003-04
2004-05
•
CAGR 2001-07: 30%
•
Growth over 2005-06: 26%
2005-06
2006-07
Desktop Market: Share of Indian, MNC
& Assembled
Indian Brands
MNC brands
Assembled
Indian Brands
MNC brands
Assembled
23%
28%
37%
38%
2005-06
2006-07
35%
•
Consumption of Indian brands decreased 2% in absolute terms
•
Sales of MNC Brands grew by 33% and that of Assembled by 22% in absolute
terms
39%
The Set top box market: 2004-07
Million Units
3
2.75
2.5
2
1.5
1.5
1
0.75
0.5
0
2004-05
2005-06
Set-top box
•
Annual growth 84%;
•
2007-08: sales expected to cross 2.5 million
2006-07
The Software & Services market
USD Million
45,000
39,700
40,000
35,000
Industry Size
30,300
31,300
30,000
25,000
22,600
20,000
15,900
15,000
10,000
10,100
7,680
12,450
9,870
Domestic
Exports
Total
23,600
17,700
12,500
5,000
0
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Year

Annual growth: 31%; Exports growth at over 32% and domestic
at 25%
Source: NASSCOM
Software & Services Exports Markets
2003-04
2004-05
2005-06
Americas
69.4%
68.3%
67.18%
Europe
22.6%
23.10%
25.13%
ROW
8.0%
8.60%
7.69%
Source: NASSCOM
~ 80% of Fortune 500 outsource their IT from India
India Semiconductor Market
40
Revenues $ Billion
35
TM CAGR – 29.8%,
TAM CAGR- 29.4%
TM
TAM
36.3
30
TM in 2015 is expected to grow
by 13 times the TM in 2005
25
TAM in 2015 is expected to
grow by 14 times the TAM in
2005
20
15.52
12.67
15
10
5
5.8
2.82
1.14
0
2005
2010
2015
•
India’s share in the global semiconductor market is expected to increase from 1.2 % in 2005 and is forecast to be 5 %
by 2015
•
Telecommunication, Consumer and IT Hardware are the segments driving the market during the forecast period
•
Wireless handsets, Base Station Transceivers (BTS) are the major sub product categories driving the TAM for
telecommunications segment
•
Set Top Box, DVD players and writers are the emerging product categories in consumer segment
•
Few other emerging product categories are electronic clusters, Capacitive Discharge Units (CDI) and Engine
Management Systems (EMS)
Source: ISA – Frost & Sullivan
The Future…
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Electronic hardware market by 2015 USD 320 billion including production USD
150 billion and exports USD 21 billion.
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Telephone subscribers: 500 million by 2010
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PC sales: 25 million; installed base 65 million by 2010
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ITES & Software exports: USD 60 billion by 2010
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40 million new internet connection; at least 50% broadband by 2010
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Nationwide TV broadcast to be digital by 2015 beginning 2010: significant
opportunity for STB consumption & manufacturing
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Over USD10 bn investment in e-governance and national id card by 2010
2015: Total expected Market USD 320 bn;
Domestic production USD 155 bn
Venture Capital Industry
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An estimated USD 7.5 billion in VC/PE in 2006 across 299 deals
•
Over 250 deals in first half of 2007 with USD 5.6 billion
•
Expected to cross USD 10 bn in 2007
Key Investment Verticals – IT/ITES (23.5%), BFSI (12.1%),
Manufacturing (12%), Real Estate (7.1%); Engg & Construction (7.9%)

India Specific VCs: ChrysCapital, HSBC Pvt Equity, ICICI Ventures,
IL&FS Venture Corporation, Infinity Technology Ventures, SIDBI,
Walden International etc.
Source: IVCA
India emerging Manufacturing
Destination
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Surge in manufacturing confidence led by mobile
players
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Branded players: Nokia, Motorola,Ericsson, Texas, Alcatel, …
EMS companies: Elcoteq, Flextronics, Solectron, Jabil
Circuits, Sanmina, Celestica, Aspcomp etc.
With new Fab policy several Semiconductor firms like AMD
etc. are keen to manufacture in India
Consumer Electronics: LG, Samsung,
IT Companies: CISCO, Dell, IBM, Intel, Microsoft,Lenova
Taiwanese Companies just about coming in

Foxconn/Honhai; Compal (Reliance), Delta Electronics,
Liteon
India Growing Services Sector
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Today India is a services superpower in the making.
the 12th largest economy in world.
Indian growth can be attributed to traditional drivers
like growing urbanization, significant development of
small towns and rural India,
Increased focus on infrastructure and education.
Services sector that witnessed three waves
1990s the software services
2002s telecom services witnessing 80% growth
2005 financial services wave
Indian Media & Entertainment (M&E)
Industry
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Global M&E industry $2 Tr. By 2011
Domestic entertainment industry estimated USD 10 Bn. Employing 8
Mn. People.
Indian M&E will grow double the rate of Country’s GDP over next few
years driven by emergence of regional players, technology and
digitization (Ernst & Young Dec. 07)
Indian film industry $ 1.8 bn. in 2006 expected to be $ 4.4-5.1 bn. by
2011. Producing over 800 films p.a.
Cable and satellite market third largest in world growing at 38% CAGR
for last 17 years.
TV advertising to grow 14% over next three years and continue to
constitute 43% of total spend.
350 TV channels in India, 3rd largest in world.
Out of 200 Mn. homes, TV spread to 60% i.e.. Over 120 Mn. Homes.
India M&E……..cont
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56 Mn. households are expected to be digitally connected by 2010, out
of which 27 Mn. would be on DTH. The DTH industry expected to be Rs
100 Bn. by 2010.
Around 28% of 100 Mn. pay TV households by 2010 would be going
digital. IPTV would be close to 1Mn. By 2010.
Indian animation industry nascent at $ 285 Mn.
Gaming industry currently $ 50 Mn. expected $ 300 Mn. By 2009
Over 60,000 newspapers registered, print media reach around 220 Mn.
This is 30% of literate population (which in turn is 65% of India’s
population)
Music & radio industry shrunk $ 250 Mn. during 2000 to $ 155 Mn.
during 2004. Film music contributes more than 70% of music industry
content. Digital music expected to be 88% of total music market.
Incentives provided by Indian
Government
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Custom duty on ITA-I products zero w.e.f. 01.03.2005.
No industrial licence for manufacturing of telecom equipment.
100% Foreign Direct Investment (FDI) through automatic route
permitted for Manufacturing and 74% for services
Fully repartriable dividend income and capital invested
Payment of technical know-how fee of up to US$ 2 million and
royalty up to 5% on domestic sales and 8% on export sales, net
of taxes, through automatic route.
Promotion of telecom product specific SEZs.
Incentives by Govt… ...contd.
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Import of all capital goods for manufacturing telecom
equipment does not require any license.
10 year income tax holiday for EOU/EPZ/STP/EHTP units.
Export income is exempt from income tax for all exporters.
Tax holiday 100% for five years and 30% for next five years in a
block of 15 years.
Infrastructure Telecom equipment exempted from customs duty.
Exemption from Excise duty on Cellular Phones and it
components, Pagers, Radio Trunking Terminals and Parts.
Telecom services sector allowed the benefit of carry forward of
losses on mergers.
Entry Strategies for Foreign Investors
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STARTING OPERATIONS IN INDIA
Incorporation of Company
For registration and incorporation, an application has
to be filed with Registrar of Companies (ROC). Once
a company has been duly registered and
incorporated as an Indian company, it is subject to
Indian laws and regulations as applicable to other
domestic Indian companies.
A foreign company planning to set up business
operations in India has the following options
Indian Company
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A foreign company can commence operations
in India by incorporating a company under
the Companies Act,1956 through
Joint Ventures; or
Wholly Owned Subsidiaries
Foreign equity in such Indian companies can
be up to 100% depending on the
requirements of the investor, subject to
equity caps in respect of the area of activities
under the Foreign Direct Investment (FDI)
policy.
Joint Venture
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Joint Venture With An Indian Partner
Foreign Companies can set up their operations in
India by forging strategic alliances with Indian
partners.
Joint Venture may entail the following advantages for
a foreign investor:
Established distribution/ marketing set up of the
Indian partner
Available financial resource of the Indian partners
Established contacts of the Indian partners which
help smoothen the process of setting up of
operations
Subsidiary Company


Wholly Owned Subsidiary Company
Foreign companies can also to set up
wholly-owned subsidiary in sectors
where 100% foreign direct investment
is permitted under the FDI policy.
Foreign Company

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Foreign Companies can set up their
operations in India through
Liaison Office/Representative Office
Project Office
Branch Office
Such offices can undertake any permitted
activities. Companies have to register
themselves with Registrar of Companies
(ROC) within 30 days of setting up a place of
business in India.
Liaison Office

Liaison office acts as a channel of communication
between the principal place of business or head office
and entities in India. Liaison office can not
undertake any commercial activity directly or
indirectly and can not, therefore, earn any income
in India. Its role is limited to collecting information
about possible market opportunities and providing
information about the company and its products to
prospective Indian customers. It can promote
export/import from/to India and also facilitate
technical/financial collaboration between parent
company and companies in India.
Project office

Foreign Companies planning to execute
specific projects in India can set up
temporary project/site offices in India. Such
offices can not undertake or carry on any
activity other than the activity relating and
incidental to execution of the project. Project
Offices may remit outside India the surplus of
the project on its completion, general
permission for which has been granted by the
RBI.
Branch Office
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Foreign companies engaged in manufacturing and trading
activities abroad are allowed to set up Branch Offices in India for the
following purposes:
Export/Import of goods
Rendering professional or consultancy services
Carrying out research work, in which the parent company is engaged.
Promoting technical or financial collaborations between Indian
companies and parent or overseas group company.
Representing the parent company in India and acting as buying/selling
agents in India.
Rendering services in Information Technology and development of
software in India.
Rendering technical support to the products supplied by the parent/
group companies.
Foreign airline/shipping company.
Branch Office….contd.

A branch office is not allowed to carry out
manufacturing activities on its own but is
permitted to subcontract these to an Indian
manufacturer. Branch Offices established
with the approval of RBI, may remit outside
India profit of the branch, net of applicable
Indian taxes and subject to RBI guidelines
Permission for setting up branch offices is
granted by the Reserve Bank of India (RBI).
Branch Office on “Standalone Basis”

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Such Branch Offices would be isolated and
restricted to the Special Economic zone (SEZ)
alone and no business activity/transaction will
be allowed outside the SEZs in India, which
include branches/subsidiaries of its parent
office in India.
No approval shall be necessary from RBI for a
company to establish a branch/unit in SEZs to
undertake manufacturing and service
activities subject to specified conditions.
ENVIRONMENTAL ISSUES
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Environmental issues have been rising up throughout
the world during last several years.
Climate change is already with us. Scientific evidence
shows that past emissions of greenhouse gases
(GHG) are already affecting the Earth’s climate. If
current trends and policies continue, the result will be
a rapidly warming world.
Most of the observed warming in the past 50 years
has been caused by human activities, particularly
producing and consuming fossil fuels, increasing
agriculture and changing land use.
Cont………
WORLD IS SERIOUS ON
ENVIRONMENTAL & HAZARDOUS
ISSUES
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Kyoto Protocol (2005):It caps the quotas on maximum amount
of greenhouse gases for developed & developing Nations.
Countries made commitments to individual, legally binding
targets to limit or reduce their greenhouse gas emissions by
2008-2012.
UN Convention: Stabilization of greenhouse gas concentrations
in the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system.
Rotterdam Convention: Under this expert body recommends
whether a hazardous product should be placed on special list
which requires countries to obtain prior consent before they can
export product.
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All countries have taken precautions for Air, Water, Sound
Pollution.
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Basel Convention for E waste and Hazardous Waste
Management Amendment Rules 2003 List A & B Schedule 3
Concern - Health & Environment
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E Waste….becoming more and more
Radiation… can’t touch it, feel it, smell it, taste it.
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Use of Bio gradable materials
Hazardous growth of telecom towers in unsafe way
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Problems :
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Do we wait for evidence or lack of it to act
Do we wait for Policy and regulations
Mindset & resistance to amend and changes, alternatives
Solution :
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Awareness and willingness to Act immediately
Anti EMR Products and Solutions, E waste
management
E WASTE
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Electronic Waste “E-waste” or “Waste Electrical and
Electronic Equipment (“WEEE”) is a waste consisting
of any broken or unwanted electrical or electronic
appliance or E-waste comprises of waste electronic
goods which are not fit for their originally intended
use.
E-Waste contains Toxic Substances and chemicals,
which have adverse effect on environment and
health, if not handled properly, e-waste is hazardous
as it contains hazardous constituents.
E waste is source of carcinogenic ( cancer causing)
substances and release most harmful elements in
atmosphere.
WORLD IS CONCERNED FOR E-WASTE
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Covered under Hazardous Waste Management
Amendment Rules 2003 List A & B Schedule 3
Covered under Basel Convention Annexure VII
The restriction of hazardous substances--known
simply as RoHS--bans six substances, including lead
and mercury, from consumer electronics.
Eco-Design Requirements for Energy Using Products
directive (EuP) requires that the physical inputs and
outputs of certain products throughout their entire
life cycle be measured and minimized; and this
includes materials, packaging, distribution, emissions
and waste.
World concern….contd.
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The European Union's WEEE (Waste Electronics and
Electrical Equipment) directive stipulates that
discarded electronic items must be kept separate
from regular trash, and that the makers must take
them back for recycling and proper disposal, or pay
others to do this.
Countries like Switzerland, Norway, Japan, Belgium,
South Korea, Taiwan etc. have legislation and fees
levied on consumers and producers for tackling e
waste.
Companies that do not comply with the directives
face exclusion from European markets.
Global Electromagnetic Radiation
(EMR)
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For millions of years, life evolved on earth where the natural
frequency/radiation background level has been very low.
The Earth's natural geomagnetic resonating frequency is normally
7.8Hz. Then starting only 100 years ago, a literal explosion of EM
frequencies in the form of television, radio and microwave radiation
has increased our everyday exposure level by at least 10,000
times.
Clearly, global EMR is a major human health threat. Immediate
efforts needed now to limit, manage and control exposure to
all levels of harmful EMFs and frequencies in our environment.
The threat is invisible, insidious and increasing exponentially in
scale and in magnitude as the Mankind enters the 21st century.
Global Electromagnetic Field (EMF)
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EMF is everywhere. It is generated by cosmic, solar, every electrical device and
man made sources. EMF not composed of atoms but can be measured. They
are forms of energy, not matter, having their own properties.
EMFs can be a health risk and steps ought to be taken to avoid exposure.
Researchers have found scientific evidence EMF radiation damages cells and
other affects on health.
“I have no doubt in my mind that, at the present time, the greatest polluting
element in the earth's environment... more serious even than global climate
change and chemical pollution... is the proliferation of electromagnetic fields”
Dr. Robert O. Becker, M.D.
Still another view is No evidence of established health effects at levels below the
existing standards
(MMF)
Some seriousness attached to Radiations
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In Airplanes, passengers advised to keep mobile phones in
switch off mode to avoid interference with the sensitive
operating machinery of the aircraft.
At ISRO, small rockets took off due to radiations’ interference
with the operations of the rocket launching system.
People with Pacemakers advised not to carry mobile phones as
the radiations emitted from mobile can interfere with the
functioning of pacemaker. Mobile Phones not permitted in ICUs.
Recorded cases of Birth disorders and untimely abortions due to
excessive exposure of pregnant ladies to microwaves.
Butterflies, Sparrows, pigeons, vultures, parrots etc increasingly
vanishing from skies due to onslaught of, power transmissions,
mobile telephony and satellite communications.
Sweden Govt. giving radiation affected disability allowance.
State Governments of India banning towers in Residential areas.
Some Researches
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Recent research project by Spanish Scientists discovered that
wireless radiation penetrates deeply into the skulls of users and
that a single 2 minute usage disrupted normal brain waves for
up to one full hour afterwards.
Several medical research studies have concluded that the
microwave frequencies entering into the heads of wireless users
are enough to cause neurological damage.
Research by University of Washington professor Dr. Henry Lai
shows brain cells are clearly damaged by microwave and that
even tiny doses of radio frequency can cumulate over time and
lead to harmful effects.
Governments across the world like US and UK are taking
precautionary approach and adopting safety guidelines IEEE,
ICNIRP etc.
World Standards coming up
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EU Radio & Telecom Terminal Equipment Directive (R&TTE Directive
5/1999/EC) managed by DG Consumer Protection and Health,
Generally accepted as the reference for exposure values
ICNIRP, IEEE recommendations & guidelines
US National Academy of Sciences (2008): a great deal of research has
been carried out to investigate possible biological or human health
effects resulting from the use of these devices
WHO Fact Sheets: FS 183: Effects of Radiofrequency Fields, FS 184:
Public Perception of EMF Risk, FS 296: Electromagnetic Hyper
sensitivity, FS 304: Base Stations & Wireless Technologies
ITU-T K.52 “Guidance on complying with limits for human exposure to
electromagnetic fields” states/recommends: In many cases, local or
national regulatory agencies or standards bodies promulgate the EMF
safety limits. If such limits do not exist, or if they do not cover the
frequencies of interest, then ICNIRP limits should be used.
SAR value prescribed by Australia, Malayasia, Thailand, Singapore &
Philippines, China, USA, UK etc. 2W/kg averaged over 10g
Environmental Issues – Way Forward
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India offers expertise and technology for
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Policy regulations, public policy for radiations
Technology to control and make radiation safe the
towers and other gadgets
Products for Anti Radiation Measures
Coordinated efforts for Research &
Development in this field.
Summary
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India is one of the strongest and fastest growing
economies in World
Indian Telecom sector growing at an explosive pace
with the highest growth in wireless users
India will lead to massive opportunities for broadband
wireless & VAS
Government of India fully supports growth of all
technologies and will provide necessary regulatory
framework to promote and facilitate such growth.
All assistance and cooperation assured.
Why is India & Japan worth Attention?
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India as an Emerging Economy
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Growing middle class market
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Indian stock boom
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Indian economy featured in business magazines
and newspapers
Japan known world over for high tec high quality
products with well known brands.
Excellent Ties between the Governments.
Government Level INDO ICT Japan Forum
Cultural affinity
Source:JETRO
Japanese Global Share
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Japan’s global market share and exports share
declined in almost all ICT-related products between
1997 and 2005.
Regardless of the decrease of the weight of the
Japanese market in the global market, the ICT
vendors of Japan tend to be domestic marketoriented compared to those of the US and Europe.
There is reported shortage of domestic software
engineers. One of the major purposes of off shoring
is offset the shortage.
Source: The Foundation for Multi Media
Communications (FMMC), Japan
Japanese ICT Vendors
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ICT vendors of Japan tend to develop their business in a wider
product range than those of the US and Europe. This makes it
possible to spread business risk and build up a wide variety of
technologies
Japanese ICT vendors are competitive in product areas where
material technologies, optical/electronic device technologies,
equipment technologies, and technologies for metal dies are
important.
As the demand for high-end products is expected to increase,
Japan, as the most advanced country in terms of broadband
infrastructure, will become a test bed for products with the
highest technology, which will create important opportunities for
Japanese ICT vendors.
Source: The Foundation for Multi Media
Communications (FMMC), Japan
Research & Development
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Japan very strong in 4G, gaming, animation,
media contents.
Japan I Burst, PHS very good technologies
suitable for India and Asian countries.
India has good demand for above.
There can be collaborative efforts for joint
R&D and marketing of telecom ICT products.
Way Ahead
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Let us move ahead
Joint venture
Joint R&D
Joint Marketing in third world countries
Collaboration in exchange of business
delegations, trade exhibitions.
All assistance assured from India
Leaders Recommend India
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Arun Sarin, Vodafone says….
I am getting a taste of how they do business in India.
My team studying secret of low cost business model
In UK average call costs 15 cents and in India only 2
cents. Margin remains 40%. Low cost labour is hardly
one third. The other two third is just how they do
business.
India has innovative approach to delivery, services
and distribution systems.
India more open in telecom. In China they own just
3% & balance Govt., but in India up to 74% and
balance with private parties.
Leaders recommend India
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We see in India telecom companies doing 30% plus
margin on $8 monthly revenue. There is no place in
the world where wireless fetch these kinds of
numbers.
What India has shown on the wireless side is
significant to the whole world.
India is platform for Asia. It’s a billion people under
one regulatory environment, you can come here and
scale and then leverage that grow into Asia.
Randall Stephenson, Chairman & CEO,
AT&T at New Delhi Press 1 July, 2007(Mint)
Leaders Recommend India…
India has a fantastic pool of software professionals. The world needs to
benefit from this
Bill Gates, Microsoft Chairman
Not only are there brilliant engineers here [in India], I've been seeing that
the entrepreneurial spirit of the businesses is second to none
Mike S. Zafirovski President and Chief Operating Officer Motorola
Through the wisdom of its government leaders and the entrepreneurship
of its private sector, India has risen to become a major force in the global
economy
John Chambers, President and CEO, Cisco Systems Inc
India has evolved into one of the world's leading technology centres
Craig Barrett, Chairman, Intel Corporation
I put India on the top priority market among emerging markets
Yuanquing Yang, Chairman, Lenovo
World View
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There is keen awareness of the need to continue to strengthen India's fiscal position, open
the economy more fully to the world and remove the remaining domestic constraints on
growth
Rodrigo de Rato, ManagingDirector, IMF
Because of the dynamism of the economy, there is a very optimistic view of the direction of
the country.
Lee Howell, World Economic Forum
India has the potential to deliver the fastest growth over the next 50 years with an average
rate of more than 5 per cent a year for the entire period
Dominic Wilson, Senior Global Economist Goldman Sachs
India has displaced US as the second-most favoured destination for foreign direct
investment (FDI) in the world after China
`
]A T Kearney, FDI index report
If you put one dollar in the US, you may get two dollars in three years. But if you put the
same dollar in India, there is a high chance of getting three dollars
Wayne W Tosu, Managing Director, Carlyle Group
GIO Factor
In Hindi – GIO means Live Long
Come…..explore….and be a part of the….
Great Indian Opportunity
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