The Indian economy has grown at an average rate of 6.5% from 2001 onwards and has achieved 7.5% GDP growth in 2005. Despite India’s slowness in improving infrastructure and introducing socio-economic reforms, the country has seen an upsurge in foreign direct investment (FDI) and institutional investments.
IT services continues to be the most promising business sector in India, and has shown rapid growth in the last few years. According to Nasscom-McKinsey reports, the IT services exports are estimated to generate US$57 billion in 2008. Indian companies operating in this segment face a lot of competition from multinational companies including IBM, Accenture, EDS and CSC. The key Indian software companies include TCS, Wipro, Infosys, HCL and Satyam. The profits from these top 5 Indian IT companies grew about 20-30% in 2004-2005. Further, BusinessWeek Info Tech 100 quotes TCS, Wipro, Infosys, Satyam and Bharti Airtel among the global top performers in the industry. The list can be found here.
The Indian pharmaceutical market is the world's fourth largest by volume of drugs (8 percent of the global market). The top global players in this market are GlaxoSmithKline, Aventis, Abbott Labs and Pfizer. The top Indian pharmaceutical companies are Cipla, Ranbaxy Labs, Dr. Reddy’s and Nicholas Piramal. Estimates by the Organisation of Pharmaceutical Producers of India (OPPI) forecast the Indian pharmaceutical market to grow to US$ 25 billion by 2010 from US$ 8.8 billion currently.
The Indian companies are reworking their strategy against the global competition with increased headcount, global presence, and NASDAQ and NYSE listings. India’s GDP is expected to grow more than 8% during 2006-2007. With a strong GDP growth, purchasing-power parity and armed with the a larger group of software developers in the world, we can expect more Indian companies from sectors other than IT and pharmaceuticals to feature on Asia’s Hot Growth Companies list in 2007.