INDIA Inc.

1. INDIA Inc. Opportunities Unlimited Information Communication and Technology Presented By : Dr. Ajay Data

2. Key Messages • As a rapidly growing market and a key sourcing destination, India is increasingly becoming the center of global commercial interest and economic activity • IT-ITES, a poster-child for the new Indian economy, has grown by 25% (CAGR) over the past decade; exports alone have grown by over 36% (CAGR) over the same period • Sector growth driven by sustained demand, and increasing service line depth and supply-side maturity based on strong fundamentals of abundant talent/skill, quality and service delivery expertise at a sustained cost-value proposition - reflecting India’s growing importance in the new world IT order • The future holds significant opportunity for India – much larger than the aggressive targets set by the industry for itself; key stakeholders are undertaking several initiatives to ensure that Indian IT-ITES achieves its full potential

3. India is not just a land of mystics and wonders… • India’s GDP has grown at nearly twice the global rate over past 20 years • Steady annual growth in real GDP, industrial production and domestic demand of 5-6% • Sustained real growth in foreign investment inflows (FDI and FII) since economic liberalization (1991) • Cumulative forex reserves of ~USD 140bn Source: JM Morgan Stanley FY06 GDP Growth in India is Amongst the Fastest in the Region Source: Citigroup

4. …but a growing economic superpower Organisation for Economic Co-operation and Development

5. A maturing economy led by high growth in services… • Over the last decade the Indian economy has transitioned from an agrarian economy to a predominantly services based economy • Key services sectors – Personal services, trade, hotels, banking, communications and business services

6. Progressive liberalization and increasing investor confidence… * Automatic approval Source: Websites of Rating Agencies

7. Indian IT-ITES sector estimated to grow by 28% and account for 4.6-4.8%* of GDP in FY06 • Indian IT-ITES sector revenue to exceed USD 36bn in FY06 – growing at a CAGR of over 25 percent over the past decade • Exports account for nearly two-thirds of the total – growing at a CAGR of over 36 percent over the past decade • Industry employment to reach 1,287,000 – a net addition of over 1 million employees over the past six years alone USD Billion Share of GDP 4.6-4.8% 4.1% 3.5% 3.2% 2.9% 2.7% 1.9% 1.5% 1.2% Source: NASSCOM * Proportion of GDP denoted as a range after FY06 GDP revised upwards by CSO

8. Growth driven by service line depth,… • Demand for traditional services remained strong • Emerging service lines such as infrastructure outsourcing, software testing, etc., in IT outsourcing • Analytics, research and functional outsourcing (F&A, CIS and HR) in ITES-BPO gained greater visibility • Engineering and R&D services emerged as an independent segment USD Billion Source: NASSCOM

9. …increasing supply-side maturity…

10. IT services exports lead, accounting for 35% of the total, growing at 32-33% (FY06E) Source: NASSCOM

11. ITES-BPO exports* to grow by 37%, estimated to reach USD 6.3bn (FY06E) * Reclassified to exclude services now included under engineering and R&D Source: NASSCOM

12. Engineering and R&D, software products hold significant opportunity for India – growing at 43% and 25% (CAGR FY 2003-06E), respectively Leading prodoucts : Tally, Ebiz, Spamjadoo, Xgen,Finacle Source: NASSCOM

13. Positive outlook for Indian IT-ITES; industry set to achieve targets for 2010 60+ USD Billion CAGR 26-27% CAGR 24-25% 14-15 * Estimates for software and services only. Does not include estimates for hardware. Source: NASSCOM

14. As global delivery matures, newer locations are emerging; however India remains the undisputed leader • India maintains its distinctive lead amongst offshore destinations • Strong fundamentals will help sustain India’s value proposition • 28% of the suitable talent available across all offshore locations (outranks the next destination by a factor of 2.5) • Keen emphasis on security and quality • Sustained cost competitiveness, gains from increased productivity, utilization and scale expansion • Key initiatives underway to strengthen India’s value proposition

15. India’s pillars of success – You can use this opportunity. • Access to a large, growing pool of highly qualified talent • A high degree of quality orientation and demonstrated service delivery expertise • Keen emphasis on information security reflected in the comprehensive legal framework and elaborate security practices supplemented by enabling intervention • World class telecommunication infrastructure • International standards in real estate and office facilities • Enabling (and progressively improving) business environment through strong government support; incentives, favorable regulations and policy …delivered at a sustained and compelling cost-value proposition

16. Five key areas that India is focused on, to sustain its lead • Enhancing the talent pool advantage – focus on skill development to better leverage the worlds largest working population • Strengthening urban infrastructure in existing and emerging cities and emphasis on proactive regulatory reform to facilitate greater ease of doing business • Driving a philosophy of operational excellence amongst industry players to ensure that India based delivery sustains world leading benchmarks in performance • Catalyzing domestic market development • Actively promoting an uncompromised agenda towards global free trade

17. Jai Hind Welcome to India Dr. Ajay Data, CEO, Data Infocom Limited , INDIA akd.ibsa@dil.in