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K.E.S SHROFF COLLEGE OF ARTS AND COMMERCE.

TOPIC: BOOM PERIOD OF

INDIA INC.

SUB:EQUITY MARKETS.

CLASS: S.Y.Bcom(FM)

SEM: 3RD SEMESTER

YEAR: 2011-12

GUIDED BY : MISS PRIYA SHROFF.

GROUP MEMBERS

• KALPESH GUPTA 10• PAWAN MAMANIYA 21

• SONU PETHANI 34• SAGAR SHAH 42• VIRAL SHAH 45• MAHESH TRIPATHI 47• DARSHAN UDESHI 49

 The boom period for India Inc Boom time for India's Economy

• India's economy has joined the ranks of the world's fastest growing economies, official figures show

•The economy expanded at a scorching 8.6% between July and September.

•Experts put the surge down to the best monsoon in a decade - India is heavily dependent on agriculture which accounts for 25% of its gross domestic product.

Growth In Retail sector

• Is said to be the fastest growing sector in the Indian economy.

•  India’s retail sector is the ninth largest retail market in the world, where the huge middle class population is attracting the global players to enter in to the country, and a 25% growth is expected in the organized sector annually.  

• There is been a growth of about 50-60% in small town and 35-40% in the large cities inorganized sector. 

• The rising income levels, a rise in retailing through online shopping and global exposure has helped the leading industrial houses to enter into this market to serve the needs of the consumer.

Limitations in Retail sector

• Some shopkeepers are against big foreign stores moving to India.

• The demolition has released India's remarkable entrepreneurial talent. America has coined a new word - "Bangalored" - to describe the fate of the large number of IT employees who lose their jobs to India's IT capital, Bangalore.

• The big international names in the motor industry now have plants here and they are all being given a good run for their money by cars designed as well as made in India.

• Indian companies are now taking over foreign companies like the Anglo-Dutch steel manufacturer Corus.

• India argues its specific political and economic problems mean that it must retain freedom to direct its economy, and to control the market.

Big players - plans and investments

Economic boom invites more retail players into the sector

Out of the companies that responded to this survey, 23% were established before 1990. Players like Tribhovandas Bhimji Zaveri, Nilgiris, and Bombay Swadeshi Stores, to name a few, have been successfully operating in the sector for decades. Over the past five decades many of today’s retail majors like Vijay Sales, Khadim’s, Fabindia, Rhythm House and Apollo Pharmacy made headway for the sector and mostly operated only in the metros; however, the scenario changed dramatically post-liberalisation.

Expansion plans continue in next two years.

As mentioned earlier, the retailers in India are optimist about growth of the industry in spite of global slowdown. A majority of the respondent companies (49.1%) feel that the industry will achieve an annual growth rate of 15-25% in the next two years while 36.1% companies feel that the industry will grow annually by 5-15% during the same period. India has achieved moderate growth during the time when most of the countries across the globe are falling prey to slowdown and recession and this is one of the key reasons why an average Indian retailer is confident about the growth of the industry.

Growth In industry Sector In India

The different industry sectors of India witnessed astronomical growth over the last 15 years. This growth of the different industry sectors of India is attributed to the Government of Indian liberal economic policy.

Growth of financial sector in India

• The growth of financial sector in India at present is nearly 8.5% per year.

• The rise in the growth rate suggests the growth of the economy.

• The financial policies and the monetary policies are able to sustain a stable growth rate.

The growth of financial sector in India was due to the development in sectors.

•Growth of the Capital Market in India.

•Growth in the Insurance sector in India.

•Growth of the Venture Capital market in India.

•Growth of Derivatives.

Banking Sector Developments in India

Introduction

The banking system is central to a nation’s economy.

Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation.

In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas.

Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980.

Conclusion

 The domestic demand-driven growth momentum is likely to continue with sectors like automobile, cement, capital

goods and fast moving consumer goods (FMCG) companies leading from the front. Analysts expect 25%

growth in bottomline following the strong economic growth, rise in infrastructure spending and pick-up in

many sectors to drive corporates this fiscal. In the March quarter, India Inc showed a 43% rise in profits and 10%

growth in sales over the December quarter.

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