Global Expansion of Indian Banking
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A GLOBAL / COUNTRY STUDY AND REPORT ON ―ASSESSMENT AND SCOPE OF BUSINESS OPPORTUNITY IN EGYPT‖ Submitted to:- Late.Smt. Shardaben Ghanshayambhai Patel Institute of Management Studies, Dharmaj. IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Mr. Divyang Joshi Dr. Deepak H. Tekwani Mr. Pratik Bhavsar Mrs. Shweta Patel Mr. Sarfaraz Pathan Ms. Zarna Patel Ms. Darshita Mirani Ms. Priyanka Patel SUBMITTED BY Group:1 (Enrollment no:10733592001-10733592060) BATCH: 2010-2012 MBA SEMESTER III/V TABLE OF CONTENT Sr. No. Particulars Page No. PART-1(SEM:III) Overview of Egypt & India 1 2 Demographic Details 3 SWOT Analysis 4 PESTAL Analysis 5 Commerce 6 Summary of Exim Policy PART-2 (SEM:IV) 1 Retail Sector 2 Banking Sector 3 Insurance Sector 4 Engineering Sector 5 Construction Sector 6 Power Sector 7 Shipping Sector 8 Telecom Sector 9 Aviation Sector 10 Hotel Sector 1.Country Introduction Egypt Egypt is located in the northeast corner of Africa and has a strategic geographic position that connects the Mediterranean Sea with the Indian Ocean. It is bordered by the Mediterranean Sea to the north, the Red Sea to the east, Sudan to the south and Libya to the west. Egypt is the world‘s 38th largest country; it covers an area of about 1,001,450 square kilometers. It is divided into 29 governorates, with governors appointed by the president. In terms of land area, it is approximately the same size as all of Central America, twice the size of France and four times the size of the United Kingdom. Over 95 per cent of Egypt‘s land is desert, with the remaining land comprising the Nile Valley and Delta. The majority of the population lives near the banks of the Nile River, in an area of about 40 000 square kilometers, meaning that approximately 99 per cent of the population uses only about 5.5 per cent of the total land area. Egypt is famous for its ancient civilization and some of the world‘s most famous monuments, including the Giza pyramid complex and its Great Sphinx. The southern city of Luxor contains numerous ancient artifacts, such as the Karnak Temple and the Valley of the Kings. Egypt is widely regarded as an important political and cultural nation of the Middle East. The regularity and richness of the annual Nile River flood, coupled with semi- isolation provided by deserts to the east and west, allowed for the development of one of the world's great civilizations. A unified kingdom arose circa 3200 B.C., and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub, but also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt's government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty with the overthrow of the British-backed monarchy in 1952. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time- honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to meet the demands of Egypt's growing population through economic reform and massive investment in communications and physical infrastructure. 2.India India forms a natural sub-continent with the Himalayas to the north. The Arabian Sea and the Bay of Bengal, which are sections of the Indian Ocean, lie to the west and east respectively. India has 28 states with constitutionally defined powers of government. The states vary greatly in size, population and development. Each state has a Governor appointed by the President for five years, a legislature elected for five years, and a Council of Ministers headed by a Chief Minister. Each state has its own legislative, executive and judicial machinery, corresponding to that of the Indian Union. There are seven Union Territories including the National Capital Territory of Delhi, administered by Lieutenant Governors or Administrators, all of whom are appointed by the President. The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated onto the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. - which reached its zenith under ASHOKA - united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries A.D.) saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor BABUR established the Mughal Dynasty which ruled India for more than three centuries. European explorers began establishing footholds in India during the 16th century. By the 19th century, Great Britain had become the dominant political power on the subcontinent. The British Indian Army played a vital role in both World Wars. Nonviolent resistance to British rule, led by Mohandas GANDHI and Jawaharlal NEHRU, eventually brought about independence in 1947. Communal violence led to the subcontinent's bloody partition, which resulted in the creation of two separate states, India and Pakistan. The two countries have fought three wars since independence, the last of which in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India's nuclear weapons tests in 1998 caused Pakistan to conduct its own tests that same year. In November 2008, terrorists allegedly originating from Pakistan conducted a series of coordinated attacks in Mumbai, India's financial capital. Despite pressing problems such as significant overpopulation, environmental degradation, extensive poverty, and widespread corruption, rapid economic development is fueling India's rise on the world stage. In January 2011, India assumed a nonpermanent seat in the UN Security Council for the 2011-12 terms. 2.DEMOGRAPHIC DETAILS: [TABLE-1] Factors INDIA EGYPT Age 0-14 years: 31.1% (male 0-14 years: 31.8% no(male structure 190,075,426/female 172,799,553) (2009 13,292,961/female 12,690,711) est.) 15-64 years: 63.5% (male 15-64 years: 63.6% (male 26,257,440/female 25,627,390) 381,446,079/female 359,802,209) (2009 est.) 65 years and over: 4.7% (male 65 years & over: 5.3% (male 1,636,560/female 2,208,455) (2008 est.) 29,364,920/female 32,591,030) (2009 0-14 years: 33% (male est.) 13,308,407/female 12,711,900) Populatio 1,210,193,422 (2011 est.) 82,079,636 (July 2011 est.) n Major Sugar Industry, textiles, Cement, paper, food processing, textiles, chemicals, Industries iron & steel, leather, aluminum, photo & petrochemicals, construction, light film, glass, chemical, locomotive, manufacturing, iron and steel products, automobile, fertilizer, plastic, petro- aluminum, cement, military equipment. chemical. Natural Iron ore, bauxite, and copper ore. India petroleum, natural gas, iron ore, resources is one of the major producers of iron in phosphates, manganese, limestone, : the world. Iron ore is found all over India, gypsum, talc, asbestos, lead, rare earth the major contributors being the states of elements, zinc. Bihar and Orissa. A quarter of all mining is carried out in the southern part of Orissa. Gold, silver, and diamonds make up a small part of other natural resources available in India. The gemstones are found in Rajasthan. Per Capita Per capita Income: 54527Rs. Per capita GDP (PPP, FY 2009 est.): Income: $5,650 GDP Annual growth rate (FY 2010 est.): 8.6% Annual growth rate (FY 2010 est.): 4.7%. Education Currently, there are 17000 plus colleges, Year’s compulsory--ages 6-15. Literacy- around 20 universities (central), 217 -total adult 58%. universities (state), and many deemed There are approx. 200,000 primary and universities as well as national secondary schools with some 10 million institutions. The national institutions of students, 13 major universities with international fame are the IIT's and the more than 500,000 students, and 67 IIM's. The Indian School of Business teacher colleges. (ISB) in Hyderabad holds a global rank of 15 in the field of management education. 3.SWOT Analysis of Egypt : [TABLE-2] STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Lack of education and Comparative support systems to Lack of value The Egyptian Advantages in the support the ascribed to software population is young International development of (for local market and highly educated Marketplace. competitive IT development) companies Internet access is Already recognized Lack of growth in the Piracy rates. provided by only about as the IT and domestic marketplace. Limited distribution 50 companies currently software center for Current Telecom Egypt skills in international and the subscriber base the Gulf region pricing structure software marketplace only numbers about 80,000.