india economy growth survey 2011-1012: market segmentation - psb

7/28/2019 India Economy Growth Survey 2011-1012: Market Segmentation - PSB

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THE PULSE OF INDIA INC.

India Inc. is confident about theeconomy and has aggressive growthplans. The vast majority of thosesurveyed expect at least the currentgrowth rate 78 to continue, or togrow faster. And Indias business eliteshave global and local expansion plans,with a new investment horizon of 612months, with corresponding aggressive hiring plans to support expansionand growth, even while global recovery continues to move slowly.

Indian managers believe that therevival of the economys agricultureand food sector should be top priorityin the 20112012 budget. Otherpressing issues include industrialgrowth, transparency & publicaccountability, infrastructure & realestate, and fiscal consolidation &monetary discipline.

However, India Inc. is divided whenit comes to the Financial Ministrysability to deliver on reforms promiseddue to coalition politics.

74% of respondents areMORE CONFIDEN

about the growth ofthe Indian economy as

compared to last year.

68%

of Indian managersplan to expand

74%

Indias top managers surveyed on their plans for growth in 2011 -- and the

priorities they believe the Finance Minister should set in his budget

CONFIDENCE IN ECONOMY

FUELS INDIA INC.S AMBITIONS

90%BELIEVE THAT THE ECONOMY

WILL GROW AT A RATE OF 7%OR

MOR

GLOBALLY LOCALLY

of Indian manageplan to expand

A PENN SCHOEN BERLAND - BLOOMBERG UTV POLL

PLAN TO REDUCE THE SCALE

OF THEIR OPERATIONSJUST 2%

127PHONE INTERVIEWS AMONG

CEOS, CFOS, Vice Presidents,

Heads of Business Units, General

Managers and Senior Managers

BASED ON


2/4

0

0

0

0

0

0

4646

KEY CHALLENGES TO INDIAN ECONOMY

YES, IN 12

MONTHS

YES, IN 6

MONTHS

NO, WE

ARE NOT

YES, AFTER

2 YEARS

DONT

KNOW

0

10

20

30

40

50

42% 39%

8%5% 5%

25%

30%

39%

AYBE/MAYBE NOT YES, IT WILL

NO, IT WILL NOT

6%

DONT KNOW

Of managers who plan to expand, 45%plan

o infuse fresh capitallocally, 21% plan to

acquire companies,21% plan to seek FDI.

CORRUPTION

FOOD

INFLATION

INFRA-

STRUCTURE

RISING

SUBSIDIES

49%

35%

30%

24%

15%

POOR

GOVERNANCE

22%

46%

30%

1%

EXPANDING BOTH WAYS

EXPANDING GLOBALL

EXPANDING

LOCALLY

DONT KNOW

Creating jobs and hiring talent in the next yea

67% plan to hire more people,34% will en-hance compensation/increase salaries;

however, 21% will rationalize headcount.

Managers planning

expansion are lookingboth locally and global

WILL COALITION

POLITICS ALLOW THE

FM TO DELIVER HIS

PROMISED REFORMS?

INDIA INC. PLANS FRESH INVESTMENTS


3/4

INDIA INC.S TOP PRIORITIES FOR BUDGET 2011

India Inc. believes that tmanage High Food inflathe Finance Minister muextend easy credit suppofarmers & find ways toreduce wastage of foodsupplies besides providifillip to industrial sectorthrough access to credit

while making tax laws mtransparent, creating refadvisory groups, andevaluating programmeimplementation to manthe governance deficit aimprove transparency.

India Inc. believes that tbest ways to manage theFiscal Deficit are toimplement GST, introduthe Direct Tax Code &allowing FDI in sectors as retail, and raising capsectors such as insuranc

0

0

0

0

0

0

FOODSECTOR

REVIVAL

INDUSTRIAL

GROWTH

TRANSPARENCY

&ACCOUNTABILITY

INFRASTRUCTURE

&REALESTATE

FISCAL&MO

NETARY

DISCIPLINE

CAPITALFORMATION

&FDI

RESOURCEM

OBILIZATION

&BETTERTAXATION

ENSURINGEN

ERGY

SECURITY

SOCIALSECTOR

45%

27% 27%24%

21%21%

14% 13%13% 12%

8%

33% SUPPORT EASY CREDIT SUPPORT FOR FARMERS 59% SUPPORT CREDIT EXPANSION TO INDUSTRIAL SEC

ON INDUSTRIAL GROWTH...

52% SUPPORT GREATER INFRASTRUCTURE INVESTMEN

TO REFORM INFRASTRUCTURE...

32% SUPPORT TAX LAW REFORM

O INCREASE TRANSPARENCY...

N THE AGRICULTURAL SECTOR...


4/4

10 20 30 40 50 0 10 20 30 400 10 20 30 40 50 600 5 10 15 20 25 30

41% SUPPORT A GOODS AND SERVICES TAX

O ENFORCE MONETARY DISCLIPLINE...

50% CALL FOR ALLOWING FOREIGN DIRECT INVESTME

TO SUPPORT CAPITAL FORMATION...

40% SAY RENEWABLE ENERGY MUST BE DECENTRALIZ

ENERGY SECURITY

44% SAY IMPLEMENT A GOODS AND SERVICES TAX

O FURTHER RESOURCE MOBILIZATION...

BREAKING PRIORITIES DOWN BY SECTOR

MANUFACTURING SERVICES ENERGY & INFRASTRUCTURE IT & TELECOM

AGRICULTURE & FOOD SECTOR REVIVAL

PUSHING INDUSTRIAL GROWTH

TRANSPARENCY & PUBLIC ACCOUNTABILITY

FILLIP TO INFRASTRUCTURE & REAL ESTATE SECTORS

FISCAL CONSOLIDATION & MONETARY DISCIPLINE

CAPITAL FORMATION & FOREIGN DIRECT INVESTMENT

RESOURCE MOBILIZATION THROUGH BETTER

ENSURING ENERGY SECURITY

SOCIAL SECTOR & INCLUSIVE GROWTH

43%

35%

27%

27%

22%

30%

27%

27%

27%

27%

60%

33%

17%

33%

17%

50

33%

27%

20%

20%

Penn Schoen Berland

www.psbresearch.in, amember of the Young &Rubican Brands and WPP is alobal researchbased commu

nication advisory thatpecialises in messaging and

strategy for bluechip corporate, entertainment andpolitical clients. Rooted inmarket research, we have over30 years of experience in

generating unique insightsabout public opinion, providing

clients with actionable ideasthat give them a competitiveedge.

We call it .

If you would like to use the

services of Penn Schoen Berlan

please send an email to:

Shefali Khanna

Director Marketing, South [email protected]

india economy growth survey 2011-1012: market segmentation - psb

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