India An Overview
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  • 1. 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
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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%
    _______________________________________
  • 8. 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
    _______________________________________
  • 9. 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.
    _______________________________________
  • 10. 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.
    _______________________________________
  • 11.
    • 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
  • 12. 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
    _______________________________________
  • 13. 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.
    _______________________________________
  • 14.
    • 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.) _______________________________________
  • 15.
    • 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.) _______________________________________
  • 16. 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.
    _______________________________________
  • 17. Thank you