SNAPSHOT: Exhibition Industry India 2017 Status

Transcript:SNAPSHOT: Exhibition Industry India 2017 Status:
SNAPSHOT: Exhibition Industry India 2017 Status Quo and Outlook The Indian Exhibition Industry - Open Seminar & Expo 2018 HITEX, Hyderabad 10th May 2018 India economic performance – gdp outlook 2020 Source: RBI, EAC research India emerged as the fastest growing major economy during 2015-2016 and is expected to grow at factor 2X of global GDP growth until FY’20 GDP Growth (%) 2014-17 Loss of Momentum FY‘17 - FY‘18 (%) Estd. GDP Growth 2020 (%) Indian GDP expected to outpace global GDP growth by 2X till FY’20 Transitory slowdown: Impact of Demonetization and introduction of GST India emerged as fastest growing major economy during FY 15-16 FY’14 FY’15 FY’16 FY’17 Q2 FY’18 Q3 FY’17 Q1 FY’18 Q4 FY’17 Q3 FY’18 FY’18 FY’19 FY’20 Slow down Revival 2 Macroeconomic indicators – Improving Fundamentals Source: RBI, Central Statistics Office, DIPP, EAC FDI inflows at record high levels, declining CPI and improving industrial production FDI Inflow (bln usd) #24 #43 FDI doubled since 2014 #9.5 #4.7 Nearing Central Bank’s target of 4% #3.3 #4.9 IIP growth ranging between 3 to 5% 2014 2017 2014 2017 2014 2017 Consumer Price Inflation (%) IIP1) Growth (%) 1) Index of Industrial Production 3 Government Initiatives – reviving growth and investment Source: DIPP, RBI, India budget Government priority to boost manufacturing by attracting domestic and foreign investments via reforms and infrastructure spends, internationalization through exports Increase FDI by 2X Most sectors with 100% FDI Automatic route Liberal tax agreements Exports promotion of high value products Reform business environment: GST, rationalize corporate taxes, labor reforms, infrastructure Increasing government spend on infrastructure Cum. Infra. spend of ~500 bln EUR planned Government Focus International Domestic 2020P 2017 2017 2020P 2017 2022P 2020P 2017E FDI (bln EUR) India's export share (%) Manufacturing share in GDP (%) Infrastructure1) spend (bln EUR) E: Estimates; P: Projection 1) Yearly budgetary allocation for roads, railways. Power and oil & gas segment 4 Source: EAC research With direct economic correlation, the exhibition industry is expected to have positive impact driven by increasing infra spending, policy reforms and improving consumption pattern Infrastructure Spending Key Factors Private Consumption Policy Reforms 2X allocation for roads and railways 1.5X for power sector Comments Private spend driven by IT and BFSI segment Strong monsoon driving rural demand Strong reform policies like introduction of GDT, bankruptcy law, liberalization of FDI in railways, aviation, defence and insurance Government initiatives – impact on Indian