prospectsforindiasdevelopment.docVIP

PROSPECTS FOR INDIAS DEVELOPMENT 24 April 2000 Business 487 Professor Marvin Zonis Leonardo Cherman Meredith Persily Debra Strober Tomoko Tanaka Gary Wong ACKNOWLEDGEMENTS The India group would like to thank CNA Financial, Deutsche Bank, Diamond Technology Partners, and Pfizer for making our trips possible. Through their support, we were able to perform primary research in New Delhi, Bangalore, Goa, Jaipur, and Bombay. The additional regional perspective provided tremendous value to us when developing our hypothesis about the Indian market. In addition, we would like to thank the many interview contacts who welcomed us to their country and candidly provided information and perspective to us. Table of Contents ACKNOWLEDGEMENTS 2 Table of Contents 3 I.??????????????????? The Bottom Line 4 II.???????????????? Model and Variables 4 In order to develop a model for India we analyzed the following variables: 4 III.?????????????? Data and Analyses 4 A. The Political Environment 4 Current Status 4 Barriers to Progress 5 B. Labor Policy 7 Snapshot 7 Status and Barriers 7 C. Privatization and Liberalization of Key Industries 9 Snapshot 9 Initiatives 9 Barriers 10 D. Financial Reforms and Foreign Direct Investments (FDI) 11 Snapshot 11 Status 11 Initiatives and Barriers 12 E. Information Technology Sector 13 Snapshot 13 Status 14 Impact on Investment Potential 15 Barriers 15 IV.????????????? Variable Mix 16 V.???????????????? Conclusion 17 VI. Appendix I: Exhibits 19 Exhibit III.A.1: The Lok Sabha Elections -- General Summary 1952-1998 19 Exhibit III.A.2: National Voter Turnout in Federal Elections: 1960-1996 20 Exhibit III.A.3 21 Exhibit III.B.1: Purchase Power Parity 22 Exhibit III.C.1: India Telecoms Regulatory Structure 22 Exhibit III.C.2: Infrastructure and Other Investments, as% of GDP (Private Sector Investment) 23 Infrastructure 23 Other 23 Exhibit III.D.1 24 Exhibit III.D.2 25 Exhibit III.E.1 IT Sector Revenues for 1994-1999 (source: NA