India An Overview

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Information about India An Overview

Published on October 10, 2008

Author: FNian

Source: slideshare.net

India – an overview A country of over 1 billion consumers Land area of 3.29 million sq. km. Stable democratic environment for 50 years Independent judiciary and vibrant media Strong and mature private sector accounting for 75% of the GDP

A country of over 1 billion consumers

Land area of 3.29 million sq. km.

Stable democratic environment for 50 years

Independent judiciary and vibrant media

Strong and mature private sector accounting for 75% of the GDP

Macro-Economic Indicators Population : 1.03 billion GDP* : USD 425 billion Rank : 4 th largest economy in terms of PPP GDP share - Agriculture : 24% - Industry : 27% - Services : 49% (* current prices

Population : 1.03 billion

GDP* : USD 425 billion

Rank : 4 th largest economy

in terms of PPP

GDP share

- Agriculture : 24%

- Industry : 27%

- Services : 49%

(* current prices

Economic Scenario GDP growth rate for 2003-2004 : 8.1% (Industry 6.5%, Services 8.4%; Agriculture 9.1%) Foreign exchange reserves : USD 119 bn A 300-350 million-strong consumer base Rapidly growing knowledge and services sectors Mature and Vibrant capital market Strong financial & regulatory institutions A steady domestic reforms process Exports increased by 17.3% in 2003-2004 reaching USD 61.8 billion Imports increased by 25% to USD 75.2 billion

GDP growth rate for 2003-2004 : 8.1%

(Industry 6.5%, Services 8.4%; Agriculture 9.1%)

Foreign exchange reserves : USD 119 bn

A 300-350 million-strong consumer base

Rapidly growing knowledge and services sectors

Mature and Vibrant capital market

Strong financial & regulatory institutions

A steady domestic reforms process

Exports increased by 17.3% in 2003-2004 reaching USD 61.8 billion

Imports increased by 25% to USD 75.2 billion

How does India spend? Indians spend USD 61.20 billion each year of which: - Food / beverages : 33.88 billion - Clothing / footwear : 6.62 billion - Fuel / power : 6.06 billion - Transport / Commn. : 5.85 billion - Others : 8.79 billion

Indians spend USD 61.20 billion each year of which:

- Food / beverages : 33.88 billion

- Clothing / footwear : 6.62 billion

- Fuel / power : 6.06 billion

- Transport / Commn. : 5.85 billion

- Others : 8.79 billion

Economic and Commercial Cooperation Before 1990, trade was conducted based on annual trade protocols and rupee clearing system by state trading organisation. New Trade Agreement came into effect fro 1 January 1990,providing for trade in convertible currency and mutual extension of MFN status Both countries are members of WTO

Before 1990, trade was conducted based on annual trade protocols and rupee clearing system by state trading organisation.

New Trade Agreement came into effect fro 1 January 1990,providing for trade in convertible currency and mutual extension of MFN status

Both countries are members of WTO

Trade Total trade more than doubled between 1992 and 2003 India’s exports to Poland for period Jan-Aug 2004 amounted to USD 199.64 m (+32.12%) and imports reached USD 58.42 m (+10%) (Source: Central Statistical Office (GUS) of Poland) However much below actual potential/opportunities Significant under-reporting of actual exports to Poland Despite fundamental changes in trade relations, Poland retained its status as India’s largest export market and trading partner in CEE after Russia Poland can act as supply base for penetrating markets in Ukraine, Belarus, Slovakia and Baltic States Market needs to be evaluated in the light of emerging opportunities

Total trade more than doubled between 1992 and 2003

India’s exports to Poland for period Jan-Aug 2004 amounted to USD 199.64 m (+32.12%) and imports reached USD 58.42 m (+10%) (Source: Central Statistical Office (GUS) of Poland)

However much below actual potential/opportunities

Significant under-reporting of actual exports to Poland

Despite fundamental changes in trade relations, Poland retained its status as India’s largest export market and trading partner in CEE after Russia

Poland can act as supply base for penetrating markets in Ukraine, Belarus, Slovakia and Baltic States

Market needs to be evaluated in the light of emerging opportunities

Where does India stand in Polish market? India’s share of Polish market remains miniscule In 2003, India accounted for only 0.33% of Poland’s total imports And 0.15% of Polish exports Market share in Polish imports of other countries Brazil: 0.43% China: 4.3% Turkey: 1.1% Indonesia: 0.41% Malaysia: 0.5% Thailand: 0.4% _______________________________________

India’s share of Polish market remains miniscule

In 2003, India accounted for only 0.33% of Poland’s total imports

And 0.15% of Polish exports

Market share in Polish imports of other countries

Brazil: 0.43% China: 4.3% Turkey: 1.1%

Indonesia: 0.41% Malaysia: 0.5% Thailand: 0.4%

Trade commodities Profile of India’s export basket to Poland is fairly diversified bulk tea, coffee, unmanufactured tobacco, de-oiled cakes, black pepper, cotton yarn, cotton textiles, made-ups and apparel, jute manufactures, mica and mica products, light engineering products like hand tools and consumer electronics and some machinery items like machine tools and textile machinery _______________________________________

Profile of India’s export basket to Poland is fairly diversified

bulk tea, coffee, unmanufactured tobacco, de-oiled cakes, black pepper, cotton yarn, cotton textiles, made-ups and apparel, jute manufactures, mica and mica products, light engineering products like hand tools and consumer electronics and some machinery items like machine tools and textile machinery

Trade commodities Major imports from Poland have been equipment for power stations, railway equipment such as wheel sets, rails etc., coal mining machinery, ships and ship engines, machine tools, other capital goods and commodities such as coking coal, sulphur, rapeseed oil, chemicals and pharmaceuticals, ferrous and non-ferrous metals. _______________________________________

Major imports from Poland have been

equipment for power stations, railway equipment such as wheel sets, rails etc., coal mining machinery, ships and ship engines, machine tools, other capital goods and commodities such as coking coal, sulphur, rapeseed oil, chemicals and pharmaceuticals, ferrous and non-ferrous metals.

Economic Cooperation Mining sector Cooperation in the coal sector started in the early 1960s Supply of mining machinery, equipment and technical know-how Power sector Elektrim delivered machines, equipment and installations for 11 power plants in India (Kaperkheda, Paras, Bhusava and Koradi in Maharashtra; Barauuni and Bokaro in Bihar; Basin in Bridge in Tamil Nadu; Durgapur in West Bengal; Rourkela in Orissa; and the Talcher power plant) Electrim has additionally supplied a variety of transformers, switchboards and other power transmission equipment and constructed a 75MW power plant in the Kuchch region of Gujarat on a turn-key basis Railways Poland has been a supplier of railway equipment, particularly wheels, axles and rails, as well as turbines and diesel engines to India. _______________________________________

Mining sector

Cooperation in the coal sector started in the early 1960s

Supply of mining machinery, equipment and technical know-how

Power sector

Elektrim delivered machines, equipment and installations for 11 power plants in India (Kaperkheda, Paras, Bhusava and Koradi in Maharashtra; Barauuni and Bokaro in Bihar; Basin in Bridge in Tamil Nadu; Durgapur in West Bengal; Rourkela in Orissa; and the Talcher power plant)

Electrim has additionally supplied a variety of transformers, switchboards and other power transmission equipment and constructed a 75MW power plant in the Kuchch region of Gujarat on a turn-key basis

Railways

Poland has been a supplier of railway equipment, particularly wheels, axles and rails, as well as turbines and diesel engines to India.

Shipping A number of merchant ships have also been delivered by the Gdansk shipyard IT Poland has a large trained pool of IT personnel Citibank sources software requirements and training programmes from India Computer Land, a major IT firm in Poland, has tied up with a company in Pune for its training requirements While major software contracts go to European firms, Indian companies, particularly those doing business with European firms can utilize their contacts to enter this market. According to Polish Agency for foreign Investments and Information, Euros 15 billion expected to be invested during the next five years in services sector in Poland. _______________________________________ Economic Cooperation

Shipping

A number of merchant ships have also been delivered by the Gdansk shipyard

IT

Poland has a large trained pool of IT personnel

Citibank sources software requirements and training programmes from India

Computer Land, a major IT firm in Poland, has tied up with a company in Pune for its training requirements

While major software contracts go to European firms, Indian companies, particularly those doing business with European firms can utilize their contacts to enter this market.

According to Polish Agency for foreign Investments and Information, Euros 15 billion expected to be invested during the next five years in services sector in Poland.

Products identified for export to Poland Tea Coffee Rice Spices Tobacco Cotton yarn Fabric Made-ups Garments of all kinds for men and women as per normal European specifications Computer software and hardware Toys Footwear (leather, casual and sports) Leather and leather products Light engineering products and auto components Electronic, electrical and non-electrical household products (especially those with established brand names) Steel utensils Chemicals (dyes etc) Drugs and pharmaceuticals Hand tools Data processing machinery and equipment Travel goods (suitcases, soft bags) Sports goods and equipment Watches and clocks Floor covering and carpets _______________________________________

Tea

Coffee

Rice

Spices

Tobacco

Cotton yarn

Fabric

Made-ups

Garments of all kinds for men and women as per normal European specifications

Computer software and hardware

Toys

Footwear (leather, casual and sports)

Leather and leather products

Light engineering products and auto components

Electronic, electrical and non-electrical household products (especially those with established brand names)

Steel utensils

Chemicals (dyes etc)

Drugs and pharmaceuticals

Hand tools

Data processing machinery and equipment

Travel goods (suitcases, soft bags)

Sports goods and equipment

Watches and clocks

Floor covering and carpets

Bilateral Investments / Joint Ventures India and Poland are both seeking foreign direct investment and are thus not yet major capital exporting countries Polish investments in India from 1991 to Nov 2003 amounted to USD 4.19 million, while Indian investments in Poland up to February 2000 amounted to USD 1.12 million (Source: Secretariat for Industrial Assistance, New Delhi) Indian investments in Poland mainly involve trade offices/warehousing facilities M/s Ranbaxy Ltd. Has set up a representative office in Poland. _______________________________________

India and Poland are both seeking foreign direct investment and are thus not yet major capital exporting countries

Polish investments in India from 1991 to Nov 2003 amounted to USD 4.19 million, while Indian investments in Poland up to February 2000 amounted to USD 1.12 million (Source: Secretariat for Industrial Assistance, New Delhi)

Indian investments in Poland mainly involve trade offices/warehousing facilities

M/s Ranbaxy Ltd. Has set up a representative office in Poland.

In Poland : There are three Indo-Polish joint ventures (a) between M/s Escorts and Pol-Mot for import and assembly of tractors in Mragowo, Poland. (b) TZMO S.A. Manufacturer of hygiene products and Premier Enterprises in Tamil Nadu, India have formed a joint venture company called Bella Premier Hygiene Care Pvt Ltd to produce health care & hygienic products (c) LNM Holdings has acquired Polska Huta Stali on 5 th March 2004 and renamed it Ispat Polska Stal – capacity to produce 6 million tons of Steel every year. In India : between Bobkay Engineers Pvt Ltd, Mumbai and Enko SA, Gliwice, Poland for manufacture of high quality electro-magnetic flow meters for food processing industry, especially for dairy sector. Bilateral Investments / Joint Ventures (contd.) _______________________________________

In Poland : There are three Indo-Polish joint ventures

(a) between M/s Escorts and Pol-Mot for import and assembly of tractors in Mragowo, Poland.

(b) TZMO S.A. Manufacturer of hygiene products and Premier Enterprises in Tamil Nadu, India have formed a joint venture company called Bella Premier Hygiene Care Pvt Ltd to produce health care & hygienic products

(c) LNM Holdings has acquired Polska Huta Stali on 5 th March 2004 and renamed it Ispat Polska Stal – capacity to produce 6 million tons of Steel every year.

In India : between Bobkay Engineers Pvt Ltd, Mumbai and Enko SA, Gliwice, Poland for manufacture of high quality electro-magnetic flow meters for food processing industry, especially for dairy sector.

Possibilities exist for two sides to forge joint ventures or cooperate through technology transfer agreements in: Automobile Chemical and pharmaceuticals Earth moving and construction machinery Electronics Exploration of oil and natural gas Environmental friendly technology for power stations and food processing sectors Alcoholic drinks, particularly Vodka Bilateral Investments / Joint Ventures (contd.) _______________________________________

Possibilities exist for two sides to forge joint ventures or cooperate through technology transfer agreements in:

Automobile

Chemical and pharmaceuticals

Earth moving and construction machinery

Electronics

Exploration of oil and natural gas

Environmental friendly technology for power stations and food processing sectors

Alcoholic drinks, particularly Vodka

CONCLUSIONS Joint ventures, industrial collaborations and tie-ups at a right time India figures in a shortlist of countries meriting special attention Extensive inter-banking arrangements, including setting up of JOINT VENTURE BANK Promotion of trade and economic linkages involves: frequent visits Participation in general and specialized trade fairs and exhibitions Creating warehousing facilities and display centres Direct air and shipping links Reciprocal credit and insurance facilities A week long ‘Incredible India’ show which will include a business seminar in March 2005. A BSM in February by Indo-EU Chamber of Commerce An India Show for 3 days in June 2005 in the Palace of Science & Culture in which representatives from the Indian industry and trade will participate. _______________________________________

Joint ventures, industrial collaborations and tie-ups at a right time

India figures in a shortlist of countries meriting special attention

Extensive inter-banking arrangements, including setting up of JOINT VENTURE BANK

Promotion of trade and economic linkages involves:

frequent visits

Participation in general and specialized trade fairs and exhibitions

Creating warehousing facilities and display centres

Direct air and shipping links

Reciprocal credit and insurance facilities

A week long ‘Incredible India’ show which will include a business seminar in March 2005.

A BSM in February by Indo-EU Chamber of Commerce

An India Show for 3 days in June 2005 in the Palace of Science & Culture in which representatives from the Indian industry and trade will participate.

Thank you

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