HICSA 2007

Presentation

SA regional outlook

Dr Daniel Thorniley, Sr VP (Corporate Network), Economist Intelligence Unit, Austria

Citing the example of the India Incredible campaign, Dr Daniel Thorniley commented that India was doing great in almost every sector and countries all over the world need to take inspiration from the country. "India is dancing," he said. He explained that for the development process to gain momentum, business synergies need to be put in place. "More and more multinational companies are giving India a brand new look. As sales and profits in the developed markets became tight in recent years, agile multinationals turned towards the emerging markets and part of this helped the growth process of India," he said, adding that companies in FMCG, F&B, packaging, industrial products, manufacturing, IT and health have realised that there was in fact good business potential in the region. "Others are slow to trot,' he observed. However, he cautioned that with an increase in players, some markets and sectors will be doing better than others and companies must be prepared to manage winners and losers in the region. With wide experience in observing and advising about global business trends, Dr Thorniley has special expertise on BRIC markets (Brazil, Russia, India, China).

According to him, India has been a superpower since the birth of Buddha till 1805 with 50 per cent of global GDP being contributed from the region. "India is once again emerging as a global market and is going to command half of the world's GDP," he believes. He said that there has been a steady rise of emerging market in the region. "The growth rate is over 8.5 per cent with a rise in credit, finance, etc," he explained. Dr Thorniley, who manages the Economist Intelligence Unit's Vienna office, providing client, advisory and research services, explained that in a survey conducted in European countries of over 500 CEOs, 70 per cent of members said that India was very good for business. Comparing the Indian market with that of China, he remarked that around 60 per cent of the CEOs in the West think that India has progressed and will become more productive in the years to come.