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Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
Busi potential in lac
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Busi potential in lac

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  • 1. Business Potential in Latin America
  • 2.  
  • 3.  
  • 4. OVERVIEW
    • Wide geographical area over 30 countries.
    • LAC region is a market of 508 million peoples
    • It accounts for about 5% of world trade
    • Second fastest growing region in the world
    • Rich in natural resources
    • Though LAC has undergone profound and irreversible political and economical transformation becoming more stable now
    • Therefore INDIA establish FOCUS-LAC
  • 5. LAC Countries 1.Argentina 12.Costarica 2.Chile 13.Elsalvador 3.Brazil 14.Guatemala 4.Mexico 15.Honduras 5.Paraguary 16.Nicaragua 6.Urugary 17.Barbados 7.Venenzula 18.Belize 8.Bolivia 19.Guyana 9.Colombia 20.Jamaica 10.Equador 21.Trinidad & Tobago 11.Peru 22.Antigua 23.Dominica 34.Dominican Republic 24.Grenada 35.Falkland Islands 25.Montserrat 36.French Guiana. 26.St.Kitts-Nevis-Anguilla. 37.Guadeloupe 27.St Lucia 38.Haiti 28.St Vincent 39.Martinique 29.Bahamas 40.Netherlands Antilles. 30.Bermuda 41.Panama 31.BritishVirgin Islands. 42.Suriname 32.Cayman Islands 43.US Virgin Islands 33.Cuba 44.Turks &Caicos Islands.
  • 6. LAC at Glance CUUNTRY POPULATION GDP(in Bn) TOTAL IMPORT IMPORT FROM INDIA 1US$=LOCAL CURRENCY ARGENTINA 37.9 177 21.2 154 2.82 PESO BRAZIL 170.0 789 62.8 556 2.38 REAL PARAGUARY 5.7 7 3.27 8 6115.2 GUARANI CHILE 15.2 100.7 23 100 550.76 PESO BOLIVIA 8.7 9.3 1.86 7 BOLIVIANO ECUADOR 13.0 32.1 7.5 21 US DOLLAR PERU 26.0 77.2 9.8 76 3.3 NEW SOL VENEZUELA 25 131 16.02 51 214 6BOLIVAR COSTA RICA 4.0 19.6 7.8 17 456.1COLON GUATEMALA 11.98 27.4 6.85 20 7.7 QUETZAL HONDURAS 6.86 8 3.46 7 18.5 LEMPERA NICARANGUA 5.36 5 1.98 5 16.1 GOLD CORDOBA EL SALVADOR 6.59 16.5 5.73 4.3 8.75 COLON PANAMA 2.96 14.5 7.5 41 1 BALBOA
  • 7. Why LAC TRADE
    • Considering the potential of the market in the LAC region an integrated program FOCUS LAC was launched
    • Export Promotion Councils, Chambers of Commerce & Industry, EXIM Bank, ECGC etc. involved in trade promotion efforts
    • Granting various incentives to Indian exporters and launching export promotion measures  
    • Focussing on the Latin American region, with added emphasis on the eight major trading partners of the region
  • 8. SALIENT FEATURES OF THE LAND OF EL DORADO
    • A vast landscape
    • Fourth largest continent in the world
    • Huge amount of Copper, Tin, Gold, Iron, Lead, Zinc and other Minerals
    • Widened gap between rich & poor
    • Though it is an America not real America
  • 9. SIMILARITIES & DISSIMILARITIES INDIA AND LATIN – SOUTH AMERICA
    • MAJORITY OF THEM AGRARIAN
    • SPEEDY PRIVATISATION
    • STRONG NATURAL RESOURCES
    • MIDDLE CLASS MYSTIQUE
    • MOVEMENTS TOWARDS FREE TRADE.
    • HIGHER V/S LOWER PRODUCTIVITY
    • HIGHER PER CAPITA INCOME V/S LOWER PER CAPITA INCOME LEVELS
    • HIGHER LITERACY V/S LOWER LITERACY RATES
  • 10. India trade with LAC in 2007 COUNTRY INDIA IMPORT in million $ INDIA EXPORT in million $ TOTAL TRADE in million $ BRAZIL 2200 958 3158 MEXICO 1127 868 1995 ARGENTINA 328 1002 1330 CHILE 208 2211 2419 VENEZUELA 95 489 584 COLOMBIA 476 80 556 PERU 252 210 462 ECUADOR 61 102 163 PANAMA 50 306 356 URAGUARY 49 5 54 COSTA RICA 30 40 70 HONDURAS 36 2 38 CUBA 27 1 28 DOMINICAN REPUBLIC 26 2 28 EL SALVADOR 18 2 20 NICARAGUA 34 - -
  • 11. LANDS OF UNKNOWN LANGUAGE BUT KNOWN BUSINESS PROSPERITY
  • 12. Agreements PTA AGREEMENT WITH INDIA MERCOSUR Brazil,Argentina,Paraguary,Uraguary, Venezuela Andean community Colambia,Bolivia,Ecuador,Peru. NAFTA Mexico. SICA Panama, Costa Rica,Nicaragua,Honduras,El Salvador, Dominican Republic,Belizi,Guatemala CARICOM Trinidad & Tobago,Jamaica,Haiti,Guyana,Suriname,Bahamas,Barbados,Dominica,Grenada,Antigua & Barbuda,St Lucia,St Kittis & Nevis's Vincent & Granadines,Montserrat Others Chile, Netherlands Antilles
  • 13. Exports to LAC - Drugs & Pharmaceuticals - Chemicals - Textiles - Transport equipment - vehicles - Dyes and intermediaries - Machinery & instruments -Plastics Potential Items of Trade with LAC Import from LAC -Minerals (lead, copper, Zinc) - Agro-products - Vegetable oils - Pearls & semi-precious stones -Fruits & vegetable extracts
  • 14. ARGENTINA CHILE MEXICO COLUMBIA BRAZIL
  • 15. SELECTION CRITERIA
    • HIGH POTENTIAL FOR GROWTH
    • POSITIVE ATTITUDE TOWARDS INDIA
    • HIGHLY RESOURCEFUL
    • FAST DEVELOPMENT OF BASIC c OMMERCIAL INFRASTRUCTURE
    • COMFORTABLE FOR BUSINESS DEALINGS
  • 16. EXPORTING TO ARGENTINA
    • TARIFFS
      • Maximum 22% for finished products for items of local consumption
      • 11% tariff for raw materials, capital goods and medicines
      • 35% duty applicable to electronic items and luxury items
      • 6% tax on imported consumer goods
      • 3% statistical tax
      • 35% profits tax while they are directly sold in the market
  • 17. FOCUS PRODUCTS OF ARGENTINA
    • HIGH
    • Apparels & Clothing
    • Vehicles & Spares
    • Dyes / Intermediates
    • Pharmaceutical
    • Chemicals
    • MEDIUM
    • Essential oil & Toiletries
    • Electrical Machineries
    • Carpets & Floor Coverings
    • Ships / boats / floats
    • Cutleries
    • LOW
    • Fertilizers
    • Oilseeds
    • Rubber & Rubber Products
    • Plastics & Articles
    • Spacecrafts / Aircrafts
  • 18. BRAZIL’S ECONOMIC OVERVIEW
    • Well developed agricultural, mining, manufacturing & service sector
    • Floating exchange rate, an inflation targeting regime,& tight fiscal policy
    • In 2003-2005 records its first trade surplus since 1992
    • To maintain economic growth & make the govt debt burden more manageable
  • 19. BRAZIL
    • Land with Iron Ore, Nickel, Gold, Uranium, Crude Oil and Timber
    • Soya meal, Orange, Coffee – Highest productivity
    • Per capita income crossed $4300
    • Main Trade Partners - EC, US, L.A. Japan
    • Surplus balance of payment
  • 20. BRAZIL
    • People love Indians/Indian products too
    • Sao Paulo or Rio De Janeiro – Twin glamorous cities
    • Most populous country in Latin America and ranks 6 th in the world
    • Literacy level crossed 90%
    • Transportation, communication and banking on the fast track development
  • 21. FOCUS PRODUCTS OF BRAZIL
    • HIGH
    • Vehicles and Parts
    • Miscellaneous Chemicals
    • Apparels / Fabrics
    • Pharmaceuticals
    • Handicraft and Kitchen Articles
    • MEDIUM
    • Sound recorders/equipment
    • Yarn / Fiber
    • Plastics
    • Optical, Photographic & Cinematographic Equipments
    • Paper Products
    • LOW
    • Iron & Steel.
    • Fish, crust and moll.
    • Spirit & Beverages.
    • Edible fruits and nuts.
    • Furniture and Bedding.
  • 22. CHILE
    • Strategic location demarcating Atlantic and Pacific Ocean
    • Subject to frequent earthquakes and active volcanism
    • Literacy level 95%
    • Per capita income $4000
    • Resources: copper, timber, iron ore, nitrates, precious metals
  • 23. CHILE
    • Exports: Copper, Bleached Pulp, Fish meal, Fruits (grapes), Timber, Seafood, Canned Fruits, Sugar beets & Beans
    • Major Partners : US, Japan, EC, Brazil, Germany , S. Korea, U.K.
    • Imports: Vehicles, Computers, Oil, Machinery, Electronic Equipments, Chemicals & Pharmaceuticals
    • Others: Ports – Antofagasta, Charnol, Pueto – Inland Waterways, Highways, Railroads and communication through intelsat
  • 24. FOCUS PRODUCTS OF CH ILE
    • HIGH
    • Apparel & Clothing
    • Vehicles & parts thereof
    • Pharmaceutical
    • Organic Chemicals
    • Leather Goods.
    • Residues / wastes of food Industry
    • MEDIUM
    • Textile & Yarn
    • Electrical Machinery
    • Plastics and articles thereof
    • Paper & paper products
    • Fish and fish preparation
    • LOW
    • Carpets & Floor covering
    • Raw hide & skin
    • Iron & Steel
    • Mineral fuels, oil & products
    • Household articles
  • 25. TRADE PERFORMANCE & REGULATIONS IN CHILE
    • Relatively low customs duty at Chile – Flat rate of 11% CIF
    • In addition VAT @ 18% on all Imports except Capital Goods
    • Straight forward deal with parties but license for imports prevails
    • FTZ established in Northern Iquique and South Punta Arenas
    • 100% Foreign ownership is permissible if Chile is benefited
  • 26. TWO STAGES TAXATION Stage 1: Flat rate 15% Stage II: Progressive Scale individual Taxation From 5% - 50%
    • Exports are exempted from tax.
    • Indirect tax 0.1% stamp duty on credits and
    • transactions.
    • 50% on luxury items like Gold, Silver, Ivory and Furs
    • 1 – 25% on gifts and antiques
  • 27. COLUMBIA
    • Highlands subject to volcanic eruption. Periodic drought
    • Crude oil, Natural gas, Coal, Iron ore, Nickel, Gold, Copper & Emeralds
    • Exports – Petroleum, Coffee & Coal
    • Per capita income crossed $5000
    • Imports – Industrial equipment, Transport Equipment, Foodstuffs, Paper Products, Telecom Equipments & Chemicals
  • 28. COLUMBIA
    • Import Duty – flat rate 11% + vat 18%
    • Documents – Import License + usual documents
    • Good railways, Highways, ports for frequent movements of cargo
  • 29. FOCUS PRODUCTS OF COLUMBIA
    • HIGH
    • Cotton
    • Vehicles
    • Organic Chemicals
    • Apparel &Clothing
    • Pharmaceuticals
    • MEDIUM
    • Miscellaneous Chemicals
    • Manmade filaments
    • Wool and woolen items
    • Plastics
    • Optical, photographic &
    • cinematographic requirements.
    • LOW
    • Coffee and Tea
    • Carpets
    • Iron and Steel
    • Cereals
    • Rubber
  • 30. MEXICO
    • Highest Per capita Nation amongst all
    • NAFTA membership elevated its position & status
    • Main partners: US, EC & Japan
    • Becoming Modern suddenly
    • Crude oil, Copper, Silver, Gold, Lead, Zinc, Timber and Natural Gas – major sources
  • 31. TRADE - MEXICO
    • Merchandise not meeting minimum quality – not imported
    • Items such as explosives, pollutants, inflammables, radio, active products require permits
    • Import License: Valid for 9 months
    • Advalorem Tariff from 0% - 20% and vat 15%
  • 32. FOCUS PRODUCTS OF MEXICO
    • HIGH
    • Apparel & Clothing.
    • Organic Chemicals
    • Pharmaceuticals
    • Tanning & Dying Extracts
    • Cotton
    • MEDIUM
    • Coffee & Tea
    • Spices
    • Clothing Accessories
    • Perfumery Cosmetics
    • Wool / Woolens products
    • LOW
    • Raw Hides
    • Paper and paper products.
    • Cereals.
    • Furniture & Bedding.
    • Rubber Produces
    • Wood & Wood Articles
  • 33. FOCUS PRODUCTS OF VENEZUELA
    • HIGH
    • Apparels & clothing Accessories
    • Vehicles & components.
    • Cotton
    • Pharmaceuticals
    • MEDIUM
    • Organic chemicals
    • Iron & Steel
    • Leather & Leather Goods
    • Plastics
    • Tanning / Dying and Inks
    • LOW
    • Fish
    • Electrical Machineries
    • Miscellaneous Chemicals
    • Rubber Products
  • 34. FOCUS PRODUCTS OF PERU
    • HIGH
    • Vehicles & Components
    • Iron & Steel
    • Pharmaceutical
    • Electrical Machinery
    • Apparels & Fabrics
    • MEDIUM
    • Rubber & Rubber Products
    • Tools & Implements
    • Coffee, Tea and Spices
    • Tanning & Dying Extracts
    • Yarn
    • LOW
    • Medical & Surgical
    • Tobacco Products
    • Cereals
    • Plastics
    • Cinematographic Equipments.
  • 35. TRINIDAD & TOBACO
    • HIGH
    • Cereals
    • Pharmaceuticals
    • Vehicles
    • Apparels & Fabrics
    • Cotton
    • MEDIUM
    • Coffee & Tea
    • Spices
    • Cultured Pearls, Semi – Precious Stones, imitation Jewellery
    • Man made Filaments
    • Toys and Games
    • LOW
    • Edible Fruits & Nuts
    • Essential oil
    • Plastics
    • Tobacco
    • Fish & Fish preparation
  • 36. SUCCESS OF INDIAN BUSINES S
    • Mexico City Exhibition of ITPO-135 participants
    • Visits of Indian President in 1998 to Peru & Brazil; PM’s visit to Trinidad & Tobago in 199 created unprecedented awareness about India
    • Uruguay Vice President’s visit to India with a large delegation and MOU with CII in Dec 1999
    • Quick response to all the efforts reached Indian business to touch
  • 37. MEASURES BY THE GOVERNMENT OF INDIA
    • Joint Commissions
    • Commercial attached in 13 countries.Trade analysis center – ITPO
    • EXIM Policy Initiative
    • Textile Quota – Double Weight age
    • Double Weight age for status
    • Publicity – Dept. Store – BSM – catalogue show
    • Top Export Performer Award
  • 38. Market Development Assistance Economic Class AIR – India @ 90% to SSI Units @ 75% - Non SSI Units Subject to Rs. 90,000 per event (For study Tour) Rs. 81,000 by Non – AIR India
  • 39. Market Development Assistance
    • Rs. 1,40,000 – participation in fair & BSM
    • Minimum stay 4 days in a single country.
    • Minimum 3 activities eligible in a year subject 5 % growth
    • Status holders / consortium of SSI maintain warehouse : 75% 50% 25% in three years – Rental
    • Corpus Rs. 2 cr. For promotion from 2000 - 01
  • 40. COMMON TO ALL THE NATIONS
    • Political & Economic
    • Debt & inflation became overwhelming
    • Private sector became overcrowded and at remarkable speed
    • Foreign exchange controls & import barriers
    • Ineffective legal system
    • Trust is only with close friends & Relatives
  • 41. India – South America
    • Low priority trading destination for Indian Business so far
    • Imports growth in 1996 – 1999
    • Average growth per annum
    • India’s trade with Latin America 6 times in 6 years
    • Total imports of Latin America is $250 b . But India’s share
    • is only 0.2%.
    Panama 23% Mexico 30% Argentina 90% Chile 35% Venezuela 50%
  • 42. Key factors in adverse impact on India’s trade Language Lack of Information Inflation Tariffs Absence of Shipping Lines Distance
  • 43. SCOPE FOR FUTURE
    • India has good relations with 17 countries including Caribbean
    • Balance of Trade is Favorable
    • Bahamas, Haiti, St. Kitts, Guinea, Virgin Islands, Uruguay – can not be ignored
    • Presence of local Indian community
    • Good potential for Indian business in Future
  • 44. Indian Business in LAC
    • Nalco – Investment in Chilean bauxite mine
    • Suzlon – setting up wind turbine plant in Brazil
    • TATA consultancy service – opened office in Lima (Peru)
    • TCS already has office in Mexico, Uruguay, Argentina,
    • Chili, Brazil, Ecuador, and Colombia
    • IFFCO ( Indian Farmers Fertilizers cooperation ) invested
    • $ 25 mio in American Petro gas ( Canadian company)
    • Godrej – acquired Argentinean hair care company-
    • Argencos
  • 45. India / LAC - FDI & Export ,import
    • Country FDI $ billion Expt $ mio Impt $ mio
    • Brazil 25.95 2191 3415
    • Chili 12.90 278 908
    • Mexico 11.42 1140 1085
    • Colombia 7.20 504 449
    • Argentina 4.90 342 876
    • Peru 4.76 307 72
    • Panama 1.77 25 5
    • Costa Rica 1.32 47 29
    • Uruguay 1.14 48 11
  • 46. Indian Business in LAC
    • Five year multi entry visa for Indian
    • businessmen visiting Argentina free of cost
    • for 5 years.
    • Stay during e ach visit- 90 days extended
    • by another 90 days
  • 47. Major items Textile & Garments Drugs & Pharma Sea Foods Jute Items Leather Goods Spices Engineering Goods Tyres & Tubes
  • 48. MAJOR ITEMS FOR IMPORTS FROM LAC Iron & Steel Non – Ferrous Metal Crude Minerals Sugar PVC Paper & Pulp
  • 49. Major International Ports Buenos Aires Barran Quilla Santos Salvador Africa Iquique - Chile Colon Manzanillo Panama City Acapulco Mexico City Port of Spain Trinidad Tabago Puerto Cabello La Guaira - Venezuela Callao Curacao - Peru
  • 50. MARKET APPROACH Participate in Trade Fairs And Exhibitio ns Buyer – Seller Meet / Sales Tou r s Indian Mission Catalog Show Build a strong Relationship oriented Business

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