Report on Indian Telecom Sector

REPORT ON INDIAN TELECOM SECTOR

India Demographic Overview

Capital: New Delhi

Located in South Asia, India is the seventh largest, and the second most populous country in the world. Home to the Indus Valley civilization and known for its historic trade routes and vast empires, India is recognised for its commercial and cultural wealth. It is the centre of amalgamation of many religions and ethnicities which have shaped the country's diverse culture. Colonised by the United Kingdom from early eighteenth century, India became a modern nation state in 1947, after a struggle for independence that was remarkable for its largely non-violent resistance and is the most populous democracy in the world today.

Location: South Asia, bordering the Arabian Sea and the Bay of Bengal, between Mynamar and Pakistan.

Geographic Coordinates: 20 00 N, 77 00 E

Population: 1,166,079,217 (July 2009 est.)

Population Growth Rate: 1.548 per cent (2009 est.)

Ethnic Groups: Indo-Aryan 72 per cent, Dravidian 25 per cent, Mongoloid and other 3 per cent (2000)

Religions: Hindu 80.5 per cent, Muslim 13.4 per cent, Christian 2.3 per cent, Sikh 1.9 per cent, other 1.8 per cent, unspecified 0.1 per cent (2001 census)

Languages: Apart from Hindi, which is the Official Union Language and mother tongue of 30 per cent of the people, there are 21 other official languages. English is the preferred language for national, political, and commercial communication.

Literacy: Total population: 64.8 per cent (2001 census)

Male: 75.3 per cent

Female: 53.7 per cent

Suffrage: 18 years of age; universal

Source: http://ibef.org/artdispview.aspx?in=35&art_id=23378&cat_id=584&page=2

Socio-Economic Overview

Indian Economy

India's diverse economy comprises conventional village farming as well as modern agriculture, a wide range of modern industries and a large number of services and handicrafts. Services are the chief source of economic growth, accounting for more than half of India's output with less than one third of its labour force.

The economy of India is the fourth largest in the world by GDP measured on purchasing power parity (PPP) basis. Source: http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP_PPP.pdf

The overall growth of GDP at factor cost at constant prices in 2008-09, as per revised estimates released by the Central Statistical Organisation (CSO)(May 29, 2009) was 6.7 per cent. This is lower than the 7 per cent projection in the Mid-Year Review 2008-09 (Economic Division, Department of Economic Affairs (DEA), December 2008) and the advance estimate of 7.1 per cent, released subsequently by CSO in February 2009.

Per capita GDP growth, a proxy for per capita income, which broadly reflects the improvement in the income of the average person, grew by an estimated 4.6 per cent in 2008-09. Though this represents a substantial slowdown from the average growth of 7.3 per cent per annum during the previous five years, it is still significantly higher than the average 3.3 per cent per annum income growth during 1998-99 to 2002-03.

Source: http://finmin.nic.in/stats_data/monthly_economic_report/2009/indmar09.pdf

According to the Economic Survey 2008-09, following are the key indicators:

GDP at Factor Cost (constant prices-1999-2000) in 2008-09: 753.61 billion

GDP at Factor Cost (current prices) in 2008-09: US$ 111,112 (revised est.)

Per Capita Income (constant prices) in 2008-09: US$ 653.13

Source: http://ibef.org/artdispview.aspx?in=35&art_id=23378&cat_id=584&page=3

Source: http://finmin.nic.in/stats_data/monthly_economic_report/2009/indmar09.pdf

Cumulative FDI Inflows: US$ 108,863 million (August 1991 to April 2009)

Top Investing Countries: Mauritius, Singapore, U.S.A, U.K, Netherlands, Japan, Germany, Cyprus, France and U.A.E.

Top Sectors Attracting Highest FDI Inflows: