India-Globalization Challenges
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  • India has made very little progress in recent years in improving market access for U.S. goods and services
  • http://monitor.icef.com/2012/07/china-and-india-to-produce-40-of-global-graduates-by-2020/Note: Figures in these graphs are estimates based on available data. Projections presented do not take into account policy measures being pursued in some countries to increase higher education attainmentConclusionsApplied to the overall labour market, these findings suggest that individuals from increasingly better-educated populations will continue to have good employment outcomes, as long as economies continue to become more knowledge-based.These findings also suggest that countries would be well-advised to pursue efforts to build their knowledge economies, in order to avoid skills mismatches and lower private and public returns on education among their higher-educated populations in the future.The global talent pool has never been larger – and will continue to expand, with rapidly-growing G20 nations likely leading the way.Source: OECD
  • China & India --- Match of the Century?......Economist Magazine article explores the rise of China & India & how their relationship will shape world politics & the world economy - "shame they do not get on better"... until 1800 these 2 economies used to make up 1/2 the world economy... "Globally, the rules-based system that the West set up in the second half of the 20th century brought huge benefits to emerging powers. But it reflects an out-of-date world order, not the current global balance, let alone a future one. China and India should be playing a bigger role in shaping the rules that will govern the 21st century. That requires concessions from the West. But it also requires commitment to a rules-based international order from China and India. A serious effort to solve their own disagreements is a good place to
  • http://int-history.blogspot.com/2012/05/hafiz-muhammad-saeed-ignorant-mullahs.htmlIndian exports, mainly driven by cotton and iron ore to China amounted to USD 20.8 billion while Chinese exports to India totalled to USD 40.8 billion, virtually double that of India - Bilateral trade between India and China exceeded the two countries' $60 billion target last year, driven largely by rising Indian imports of Chinese machinery that have left a record trade imbalance of $20 billion in China's favour. Figures released for last year showed that bilateral trade in 2010 reached $61.7 billion, with Chinese exports to India touching $40.8 billion. This marked a 43 per cent jump in trade volume from last year, when the recession reduced two-way trade to $43 billion. In 2008, China became India's largest trade partner with $51.8 billion in bilateral trade. Despite the growth, the figures underscore rising Indian concerns over the fast-widening trade deficit, with Indian exports, largely made up of iron ore, other raw materials and cotton, contributing a little over $20 billion — equalling the size of the deficit.
  • There is enough space in the world for India and China to achieve common development... to have co-operation," Mr Wen said at Friday's meeting with Mr Singh on the sidelines of the of the Asean meeting."We must strive to ensure the sound and steady growth of our relationship," he said.
  • http://indrus.in/articles/2012/06/29/geopolitics_in_asia_russia_india_and_pakistan-china_cooperation_16089.htmlIn 1950, Pakistan was one of the first countries to recognize the People’s Republic of China, while in the 1960s to early 1970s it remained Beijing’s most steadfast ally during a period of a relative international isolation of the latter. China appreciates this support by providing Pakistan with both military, and technical and economic assistance, including the transfer of nuclear technology. Some experts believe that strengthening multilateral connections between India and the U.S. will make strategic alliance relations between Islamabad and Beijing even closer, even more so, because the Pakistani elite considers the partnership with China to be a security guarantee. Military-technical cooperation (MTC) of Islamabad and Beijing is carried out in three main areas: Rockets: Pakistani armed forces have short range and medium range missiles that experts regard as a ‘modification of Chinese ballistic missiles’; Combat aircraft: the Pakistani Air Force has aircraft of Chinese design – JF-17 Thunder and K-8 Karakorum, as well as the co-produced interceptor aircraft. In addition, the Pakistani Air Force uses the early warning radar system made in China (U.S. experts believe that the delay in the transfer of the remains of the stealth helicopter that took part in the elimination of Osama bin Laden on May 2, 2011, was associated with its preliminary study by the Chinese military); Nuclear program: it is believed that China could have transferred to Pakistan the technologies that are critical to the production of nuclear weapons. In addition to MTC, Pakistan and China are actively developing economic relations; their development acceleration was caused by a Comprehensive Free Trade Agreement of 2008. By some estimates, the bilateral trade is approaching $15 billion.
  • http://www.ndtv.com/article/india/india-proposes-norms-for-indian-ocean-anti-piracy-patrols-197341
  • http://www.bbc.co.uk/news/world-asia-india-18406453Setting the tone for the third bilateral strategic dialogue since 2010, US Defence Secretary Leon Panetta declared in Delhi on 6 June that India was the "linchpin" in Washington's "rebalanced" security architecture in the Asia-Pacific region by 2020.
  • She first flew on the Columbia in 1997 as a mission specialist and primary robotic arm operator. Chawla was one of seven crew members killed in the Space Shuttle Columbia disaster.[1]the act allowed Filipino Americans & Indian Americans to naturalize and become United States Citizens.[4India Square in New Jersey
  • http://www.usibc.com/
  • HCL’s engineers are being trusted to develop landing navigation equipment and design mid-air collision prevention software for Boeing’s new 787 Dreamliner jet aircrafthttp://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_SF1_QTP8&prodType=table

Transcript

  • 1. India & GlobalizationColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar
  • 2. Welcome to India!
  • 3. Agenda1. Globalization - Historic2. India3. India and Asia4. India and Africa5. India – Europe & ME6. India and the Americas7. Conclusions
  • 4. Globalization• A process: – through which an increasingly free flow of ideas, people, goods, services and capital would lead to the integration of economies and societies.• It is characterized by: – an accelerated flow of trade, capital, and information, as well as mobility of individuals across geographical borders.• It reflects: – comprehensive level of interaction than that has occurred in the past, suggesting something beyond the word “international”.• It implies: – a diminishing importance of national borders and strengthening of identities, that stretch beyond those rooted in a limited locale in terms of particular country or region.
  • 5. Globalization Common misconception that it is a 20th century phenomenon
  • 6. 1. Globalization - Past Globalization – Phase I India was a prime mover for Globalization Ancient: 326 BC Ancient: 1st century CEAlexander’s invasion Roman and Greek: Ptolemaic period. Trade for gold, silk & spice
  • 7. 1. Globalization - Past Globalization – Phase I Medieval: Silk road & Spice RouteRoutes blocked by Ottoman empire in 1453, spurring the age of exploration
  • 8. 1. Globalization - Past Globalization – Phase I Discovery of much of the world was spurred by search for sea-routes to India• Spice Trade – In the search for India: – 1497: Vasco da Gama [Portugal] - India (Calicut) – 1492: Christopher Columbus [Spain] – America – 1500: Pedro Alvares Cabral [Portugal] – Brazil• European-India companies – 1602: Dutch East India Company – 1664: French East India Company – 1707: British East India Company
  • 9. 2. India India Today – cultural Unity in Diversity• 1.2Bn people, 3270000 sq.km• 28 states, 7 Union territories • 30% of the country’s 1.2 billion inhabitants reside in urban• 22 official languages, 1576 official mother tongues,• 7 major religions, birthplace of 4, – Islam: 2nd largest religion in India; 3rd largest Muslim populace in the world, • Has the most recognized piece of Islamic architecture – Christianity: 3rd largest religion in India • It has the worlds oldest Catholic church, • There are only three Basilicas built over the tomb of an apostle.- St. Peters at Rome, St. James’ at Santiago, St. Thomas’ at Chennai – Buddhism: Born in India; Dalai Lama has his base there – Parsis: 75% of Zoroastrians of the world (original inhabitants of Iran)
  • 10. 2. India 90’s Liberalization• India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch, dragged the economy close to defaulting on loans.• Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included: – scrapping of the industrial licensing regime, – reduction in the number of areas reserved for the public sector, – amendment of the monopolies and the restrictive trade practices act, – start of the privatisation programme, – reduction in tariff rates and change over to market determined exchange rates.
  • 11. 2. India Globalization• A metric frequently used to measure the degree of a country’s global integration is the ratio of Indias global integration Export+Import/GDP Two way(capital+current) flows/GDP external trade to GDP 120% 109% – ratio has gone up over four 100% times, from 8 per cent of GDP in 1972 to 37 per cent in 2011 80%• A more complete measure of a 60% country’s global integration is the 37% two way flow of goods and finance 40% in and out of a country. 20% 14% 8% – ratio has moved up nearly eight times in these four decades, from 0% 14 per cent in 1972 to 109 per 1972-73 2010-2011 1972-73 2010-2011 cent in 2011• This means that India’s trade integration has been deep; but its financial integration has been deeper.
  • 12. 2. India Inward FDI • Enjoyed the second highest growth in foreign direct investment (FDI) inflows in the world during 2011 • India stands as the fourth most attractive destination for FDI in E&Ys global ranking (dropped 2 places from year before). Sector Amount (USD) Country Amount (USD) Services 5.05 billion U.S 11.2 billion Pharmaceuticals 3.21 billion Mauritius 9.42 billion Telecom 1.99 billion Singapore 5.07 billion Construction 2.52 billion Japan 2.86 billion Power 1.61 billion UK 2.75 billion Metallurgical ind 1.76 billion Germany 1.54 billion Cyprus 1.42 billionSource: IBEF, DOC
  • 13. Trade agreements in placeAgreement on Economic Cooperation between India and Finland Treaty of Transit between India and NepalAgreement on South Asia Free Trade Area SAFTA Agreement on implementation of India – Malaysia CECAAsia Pacific Trade Agreement APTA Framework Agreement with ASEANCECA between The Republic of India and the Republic of Singapore Framework agreement with ChileComprehensive Economic Cooperation Agreement between India and Framework Agreement with GCC StatesMalysiaGlobal System of Trade Preferences GSTP Framework Agreement with ThailandIndia Africa Trade Agreement India EU Trade and Investment Agrement TIAIndia Chile PTA India US Trade Policy Forum Joint StatementIndia Afghanistan PTA India and Australia Joint Free Trade Agreement Feasibility StudyIndia ASEAN Agreements India Bangladesh Trade AgreementIndia Bhutan Trade Agreement India Ceylon Trade AgreementIndia Japan CEPA PDF India DPR Korea Trade AgreementIndia Korea CEPA PDF India EU Strategic Partnership Joint Action PlanIndia MERCOSUR PTA India Indonesia Joint Study Group ReportIndia Nepal Trade Treaty PDF download India Maldives Trade AgreementIndia Sri Lanka FTA India Mongolia Trade AgreementSAARC Agreement on Trade in Services SATIS India New Zealand Joint Study ReportIndia United States Commercial Dialogue India Pakistan Trading Arrangement
  • 14. Currently Negotiating Agreements Association of South East Asian Nations (ASEAN) and India Free Trade Agreement (FTA) negotiations India-MERCOSUR Preferential Trade Agreenent (PTA) Negotiations India-Sri Lanka Comprehensive Economic Partnership Agreement (CEPA) negotiations India-Pakistan Trading Arrangement India-Thailand Comprehensive Economic Cooperation Agreement (CECA) negotiations India-EU Board Based Trade and Investment Agreement negotiations Bay of Bengal Initiative for Multi-Sectoral Technical and Economic India European Free Trade Association (EFTA) Negotiations on broad Cooperation (BIMSTEC) Free Trade Agreement (FTA) negotiations based Bilateral Trade and Investment Agreement India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) negotiations Global System of Trade Preferences (GSTP) India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) negotiations Asia Pacific Trade Agreement (APTA) India-SACU Preferential Trade Agreement (PTA) negotiations India -New Zealand Free Trade Agreement India-Canada Comprehensive Economic Partnership Agreement India-Singapore Comprehensive Economic Cooperation Agreement (CEPA) India-Australia Comprehensive Economic Cooperation Agreement Expension of India-Chile Preferential Trade Agreement (PTA) (CECA) India-Indonesia Comprehensive Economic Cooperation Agreement (CECA)
  • 15. 2. India GDP Source: IMF WEO Apr 12 Historic GDP (growth %)• Will be the worlds 2nd 12 10.623 fastest growing 10 9.033 9.53 9.991 economy. 8 7.591 7.241 6.852 6.186 6.579• Has had its share of rises 6 5.158 4.558 4 and falls in the last 3.885 decade 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 16. 2. India GDP Source: IMF WEO Apr 12 GDP Growth (%)• Among the top 5 12 10 economies by 2020 8• Healthy in comparison 6 with its BRIC compatriots 4• Will equal or even 2 exceed China by 2020 0 2010 2011 2012 2013 2014 2015 2016 2017 Brazil Russia India China U.S
  • 17. 2. India GDP GDP (Sectorwise)• Services sector Agriculture contributes to a 12% 17% significant part 2% Mining• Manufacturing is going 17% Manufacturing down – area of concern 15% Electricity, Gas, Water 27% 8% 2% Source: Ministry of Statistics and Q3 2011 Programme Implementation, GOI
  • 18. 2. India GDP• Manufacturing is going GDP growth rate (% by sector) 10 9 9.2 9 down – area of concern 8 7.2 7.9• Large natural 6 4 2.7 resources, but most of 2 0.4 mining is done illegal. 0 -2 Rampant corruption in -4 -3.1 this area Q3 2011 from Q32010
  • 19. 2. India Inflation• The rise in inflation expectations is one of the key macro stability challenge.
  • 20. 2. India Inflation• Highest inflation among Inflation (%) and its comparison across BRIC/US Source: IMF WEO Apr 12 14 BRIC, but it goes lower 12 over the next 5 years 10 8 6 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 Brazil Russia India China US
  • 21. 2. India Inflation• Has been fairly stable in Source: Ministry of Statistics and Programme Implementation, GOI Inflation Jan-Jun 12 10 the first half of 2012 9.5 9 8.5 8 7.5 7 6.5 6 5.5 5 January February March April May June
  • 22. 2. India Current Account Balance Source: IMF WEO Apr 12 CAB (%)• India has a CA deficit of 6 5 close to 3.5% of the GDP 4• Deterioration in India’s 3 current account deficit: 2 1 – from $45.9 billion (2.7% 0 of gross domestic product) -1 in FY11 -2 – to estimated $74.3 billion -3 (4% of GDP) in FY12 -4 2010 2011 2012 2013 2014 2015 2016 2017• Because of higher oil and Brazil Russia India China US gold imports
  • 23. 2. India Debt-to-GDP ratio Source: IMF WEO Apr 12 Debt to GDP (%)• India: has the lowest 120 – But last year’s has been pegged at 74% instead of 67% 100• US: has the highest 80 – But last years was 102% 60 instead of estimated 106% 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 France Germany India Spain United States
  • 24. 2. IndiaIndian Currency Movement • The Indian Rupee has depreciated against all the major international currencies since the beginning of the last fiscal year. • The Indian Rupee has depreciated by – 25% against the Dollar, – 18%, against the British Pound – 8% against the Euro and – 32% against the Yen respectively.
  • 25. 2. India Polarity• The wealth of high net worth individuals (HNIs) in India, is set to grow by a compounded annual growth rate (CAGR) of 23 per cent over the next four years and will touch a staggering Rs 249 trillion (US$ 4.69 trillion)• 350 million people below poverty line• Cut-off for poverty line – 29 rupees, or 55 cents, a day in urban areas – 22 rupees or about 40 cents a day in rural areas• Electricity sector in India had an installed capacity of 202.98 GW as of May 2012, the worlds fifth largest – 300 million people have no electricity• Gives $10Bn to Europe, – Has a Balance of Payments problem
  • 26. 2. India Polarity• The wealth of high net worth individuals (HNIs) in India, is set to grow by a compounded annual growth rate (CAGR) of 23 per cent over the next four years and will touch a staggering Rs 249 trillion (US$ 4.69 trillion)• 350 million people below poverty line• Cut-off for poverty line – 29 rupees, or 55 cents, a day in urban areas – 22 rupees or about 40 cents a day in rural areas• Electricity sector in India had an installed capacity of 202.98 GW as of May 2012, the worlds fifth largest – 300 million people have no electricity• Gives $10Bn to Europe, – Has a Balance of Payments problem
  • 27. 2. India Pessimism: The smoke, the fire!• Fire: – GDP growth has touched a 10 year low of 6.1% for FY12• Smoke: – IIP growth of 0.1% for April’12 – consistently high inflation that stands at 7.55% in the latest May’12 data and is higher than 7.23% recorded in April’12• Effect: – in the fight between taming inflation and propelling growth India is losing out on both
  • 28. Hurdles to doing business in India• Difficult business climate (World Bank) – ranks 132 out of 183 economies in 2012 – next to last in enforcing contracts• little progress in recent years in improving market access• Import duties comparatively very high• Non-transparent and unpredictable regulatory and tariff regimes.• A cumbersome bureaucracy• Corruption
  • 29. 2. India Nationalization/National Integration• As important as Globalization• Political and cultural integration within India• The exchange of trade, culture, ideas, ethics, beliefs, etc. between the various states, races, cultures of India – Each unique in its own manner – Brings its own advantages and disadvantages• Cities are a melting pot of cosmopolitanism – Like New York; most cities have large concentrations of other state folk; bigger cities have a growing International ethos
  • 30. EducationShare of 25-34 year-olds with a tertiary degreeacross OECD and G20 countries (2000, 2010, 2020)• 25% of its population is still illiterate; only 15% of Indian students reach high school, and just 7%, of the 15% who make it to high school, graduate• India produced 11% of graduates in 2010, expected produce 12% of the share of graduates by 2020• Education in India is provided by the public sector as well as the private sector, with control and funding coming Source: OECD, from three levels: central, state, and local.
  • 31. India - Asia
  • 32. China & India Politics and World EconomyThe Dragon and the Tiger-- Match of the 21st Century?...• Until 1800 these 2 economies used to make up 1/2 the world economy...• How their relationship will shape world politics & the world economy –• “Shame they do not get on better"...• Lots of expectation by Washington for India to assume a more active role as a regional balancer vis-à-vis China.• New Delhi is far less eager to pursue this position against its northern neighbor•
  • 33. Indian Trade with China• China is India’s 2nd largest trading partner.Indian Exports to China:• Driven by iron oreChinese exports to India• Driven by machineryTotal Trade values:Total Trade values2009-10 $42.4b2010-11 $16.1b
  • 34. India and China’s new bilateral trade in Oct 2010:• Agreed to a new bilateral trade • up from $100b target by 2015 • from $60bn in 2010.• The two sides agreed to take measures to promote greater Indian exports to China• To reduce Indias trade deficit.• Companies signed business deals worth $16bn on the opening day of Chinese PM Wen Jiabaos three-day official visit to India
  • 35. Benefits of India Trade: ASEAN moving towards Asia Union and Monetary FundObjectives of the Union:Asian Monetary Union; modeledafter the European Union• Greater regional integration• An Asian regional economic entity• A greater Asian free trade area.India benefits = Tradestandardization among ASEANcountries
  • 36. India’s Trade with ASEAN Member countries August 2009. - India and the ASEAN sign Trade in Goods Agreement under the broader framework of Comprehensive Economic Cooperation Agreement.Total trade with ASEAN members2008-09 USD $489 b2009-10 USD $466b2010-11Industry Ministry of commerce Source: India and USD $267b
  • 37. Geopolitics in Asia: Russia, India and Pakistan-China CooperationMilitary-technical cooperation (MTC) ofIslamabad and Beijing is carried out in threemain areas:Rockets:• Pakistani armed forces have short range + medium range missiles: ‘modification of Chinese ballistic missiles’;Combat aircraft:• Pakistani Air Force has aircraft of Chinese design – JF-17 Thunder and K-8 Karakorum,• co-produced interceptor aircraft + early warning radar system made in China. Nuclear program:• it is believed that China could have transferred the technologies that are critical to the production of nuclear weapons to Pakistan.
  • 38. Consequences: Tensions: Asias space race• Tensions in Asian politics underlie todays space competition.• Long-festering historical and geopolitical feuds have created hostilities• Asian officials believe that space programmes will bring them status at home and abroad.• Asian nations do not want to be seen as backward or, worse, as falling behind their neighbours in science and technology
  • 39. India - Europe & Middle EastColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar
  • 40. After the WW2
  • 41. The Soviet Period• In 1955, Khrushchev announced that the Soviet Union supported Indian sovereignty over the disputed territory of the Kashmir region and over Portuguese coastal enclaves.• The Soviet relationship with India rankled the Chinese and contributed to Sino-Soviet enmity during the Khrushchev period.• The Soviet Union declared its neutrality during the 1959 border dispute and the Indo-China war of 1962, although the Chinese strongly objected.• Until the late 80s, to counter these efforts by India to diversify its relations, the Soviet Union proffered additional weaponry and economic assistance.
  • 42. The Russian Period• After the USSR collapse, Russia has continued to support technologically and economically India.• Between 1995 (Indian economy liberalization) and 2005, economic relation between Russia and India was frozen, India criticizing Russia about the poor quality of equipment delivered and the exorbitant cost of their maintenance.• But cooperation on strategic domain like civil nuclear, space launcher or energy was never stopped.• Now, a new age of sciences and technologic cooperation is open, supported by ambitious project as the 5th generation of multi-missions combat aircraft.
  • 43. Reduce distance, increase trades North-South Transport Corridor
  • 44. EU-India FTA still negotiated Commission president Jose Manuel Barroso EU president Herman Van Rompuy Indian prime minister Manmohan Singh New Delhi – February 2012
  • 45. but a FTA strongly contested. About CEO | Corporate Europe Observatory 26/ 07/ 12 00:01 CORPORATE EUROPE OBSERVATORY EXPOSING THE POWER OF CORPORATE LOBBYING IN THE EU Home Articles & News Reports Blogs Press releases Open letters About Contact us RIO+20 About CEO CLIMATE AND ENERGY EU ECONOMIC GOVERNANCE GLOBAL EUROPE Corp orate Europ e Observatory (CEO) is a research and campaign group work ing to exp ose and camp aign LOBBYCRACY challen ge th e priv ileg ed access an d influence en joyed by corporation s an d their lobby g rou ps in EU the influ ence roups REVOLVING DOORS policy m akin g. AGRIBUSINESS This corporate capture of EU decision-making leads to EFSA policies that exacerbate social injustice and accelerate Search environmental destruction across the world. Rolling back corporate power and exposing greenwash are crucial in order to truly address global problems including poverty, climate change, social injustice, hunger and environmental degradation. Corporate Europe Observatory works in close alliance with public interest groups and social movements in and outside Europe to develop alternatives to the dominance of corporate power. CEO is registered as not-for-profit foundation under Dutch law at the Amsterdam Chamber of Commerce. CEO’s legal adress in the Netherlands is Vismarkt 15, 6511 VJ Nijmegen. CEO’s main office RECENT BLOGS Subscribe to our In 2009, CEO opened a new office in the Mundo-B, Rue d’Edimbourg 26, 1050 Brussels, Belgium. The CEO team in Better control of EU revolving Newsletter Brussels can be contacted on +32 (0)2 893 0930. door needed When business and politics SUPPORT CORPORATE EUROPE CEO’s work intertwine OBSERVATORY! CEO relies on grants and donations to Read about the highlights of CEO’s work in 2011 and find out more about our work on Lobbycracy, Climate & EU Research funds: a ! 20 carry out our research and campaign billion gift to industry! Energy, EU economic governance, Global Europe (Trade and Investment), Agribusiness and our more specific work. By making a donation campaigns on Revolving Doors and EFSA. DG Enterprise needs to kick becoming a friend of CEO corporate lobbyists out of its support our efforts to expose expert groups CEO’s funding corporate lobbying, increase transparency and urge greater Severin: time for action Corporate Europe Observatory receives grants from a number of trusts and foundations. Currently we receive democratic accountabililty in the EU. funding from the Adessium Foundation, Isvara Foundation, Polden-Puckham Charitable Foundation, RH Southern Trust, Sigrid Rausing Trust, JM Goldsmith foundation, Misereor, Human Earth Foundation and Environmental LATEST TWEETS That Slovak piece on business and Investigation Agency. CEO doesnt receive any EU or member state government funding. politics now in English http://t.co/xF0RH4xA CEO accounts 2005-2011. @erikwesselius see also http://t.co/0aXeupkO CEO staff For Slovak speakers: Corporate Europe Observatory’s team currently consists of: Belén Balanyá, Roel van den Bosch (financial http://t.co/x6E5Pp19 administrator), Helen Burley (media and publications), Vicky Cann, Pia Eberhardt, Kenneth Haar, Olivier Hoedeman, Interesting read from John Harris Read the press release Nina Holland, David Leloup, Bruno Nicostrate (office manager), Martin Pigeon, Stijn Vanhandsaeme (webmaster), @commentisfree Politics must respond to Conference essay series Yiorgos Vassalos and Erik Wesselius. this pile-up of corporate disgrace Speakers biographies and http://t.co/0qdVwiD4 presentations CEO advisory board Large number of #MEPs hold second jobs: @foeeurope calls for review of potential Post-conference blogs Videos CEO has an advisory board. Its members are: Brid Brennan (The Netherlands/Ireland), Pratap Chatterjee (India/US), conflicts of interest http://t.co/T644rNcO Ann Doherty (The Netherlands/US), Susan George (France), Adam Ma’anit (UK/US), America Vera-Zavala (Sweden) Follow us on Twitter and Thomas Wallgren (Finland). http:/ / www.corporateeurope.org/ about- ceo Page 1 sur 2
  • 46. India & Europe
  • 47. India - AfricaColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar
  • 48. Overview• India-Africa partnership rests on three pillars of – capacity building and skill transfer, – trade and – infrastructure development• The impact of India’s globalization efforts in Africa – Access to commodities and natural resources, – Access to land and – Support
  • 49. Indian diaspora in Africa• Indians have been in South Africa 1,160,000 Africa since the 10th Kenya 230,000 century Tanzania 90,000 Uganda 90,000
  • 50. India – Africa PoliticalColonialism and liberation wars – stronger political relationsCold War – African countries joined the non-aligned movement pioneered by India, Egypt, and Former Yugoslavia.Current - UN Security Council Seat Seeking support from SA – The India-Africa Forum Summit in New Delhi, April 8, 2008 • India for the first time, constitutes the basic framework for the relations under the South- South Cooperation platform.
  • 51. India – Africa Business• India-Africa bilateral trade $60 billion in 2011.• India and Africa revise trade target to $90 billion by 2015• Over 250 Indian companies have invested in Africa, mainly in telecommunications and chemical and mining companies.• In June 2008, Bharti Airtel, and Indian telecommunications giant, purchased Zain Africa for US$9 billion.• India-Africa Trade Ministers meeting in New Delhi on March 17, 2012
  • 52. India – Africa Military•Military cooperation, trading armsand joint exercises•Pirates in Indian Ocean –India is spearheading an effort to create a naval standard operating procedure (SOP) –Indian Ocean Naval Symposium (IONS) took place in South Africa 2012
  • 53. India – Africa Energy• Seeks to diversify oil supply – 4th largest consumer – Largest consumer in 15 years – Hopes to import from Africa (Nigeria, Sudan, Angola)• Largest purchaser of coal from South Africa – In 2010, India imported 1.4 million tonnes
  • 54. India Investing In Africa• India-Africa Business Council• $5 billion line of credit for 3 years• $300 million for Ethio-Djibouti rail line• $700 million for new institutions, training programs• India-Africa virtual university 10,000 new scholarships• More than 22,000 scholarships to African students• $2 million for African Union mission in Somalia• India-Africa food processing and textiles clusters
  • 55. India-Nigeria• Trade between India and Nigeria had hit $14.628 billion per annum as at August 2011, more than any other African country• India is also Nigeria’s biggest trading partner.• India, with an investment of $5 billion in the country, was the largest foreign direct investor in Nigeria in 2010• India has committed a $100 million line of credit to Nigeria for improvement in its power sector
  • 56. India – South Africa• Gandhi – Began his political/legal career – Civil disobedience 1890s and 1900s – Improved lives of Indians living in South Africa
  • 57. India – South Africa• Apartheid – era – The Indian government was an outspoken critic – Refused to maintain diplomatic relations – Evoked goodwill in South Africa and other African countries.
  • 58. India – South Africa• The bilateral relations began after apartheid in 1994• BRICS – 2011 – IBSA• SACU – India Preferential Trade Agreement (PTA) Negotiations are in process, includes South Africa, Botswana, Lesotho, Namibia and Swaziland• Gold bullion constitutes one-third of Indias imports from South Africa• India polishes and processes diamonds from South African mines.
  • 59. India – South Africa• India awards South African Nelson Mandela - Mahatma Gandhi Peace Prize
  • 60. India – South Africa/Sports• Cricket – Indian National Cricket Team – South African National Cricket Team – Frequent exchanges and tournaments – Many South African players in Indian Premier League – They are very popular.
  • 61. India - The AmericasColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar
  • 62. India and the Americas
  • 63. India - US
  • 64. US – India Strategic Dialogue• Economics and Trade• Education• Science and Technology• Clean energy• Health• Security
  • 65. India - US• US-India Civil Nuclear Agreement• UN – active member – Seeks permanent Security Council Seat – holds a non-permanent 2011-2012• Indian Navy most capable in region• Indian Air Force is 4th largest
  • 66. India in America• Luce-Celler Act of 1946• 3.1 million people; 1%• 69% growth rate• 2nd largest diaspora• 26% start-ups in Silicon Valley
  • 67. U.S. – India Business Council• Trade and Investment Initiative – US-India BIT (Q4 2013) – New potential disadvantages (Japan, ASEAN, Australia, New Zealand, South Korea, EU, Canada, etc)• Coalition for a Healthy India – raising the standard of care – developing new treatments and cures – ensuring access and affordability – getting medicine to patients – corporate social responsibility• USIBC Education Initiative – Higher Education (additional facilities) – Elementary K-12 (replication) – Vocational Training and Skills Development (human capacity building)
  • 68. India - US• 3rd largest trading partner – 13th largest trading partner of US• Goods and Services trade with India totaled $86b in 2011• U.S. goods and services trade deficit with India $20b in 2011
  • 69. India - US• Principal U.S. exports: From US To India Precious stones & – diagnostic or lab reagents metals 5%5% Machinery – aircraft and parts 6% 24% – 11% Mineral Fuel advanced machinery – cotton 13% 23% Optical instruments & equipment 13% – fertilizers, ferrous waste/scrap metal Electrical machinery – computer hardware• Major U.S. imports: From India to US Textiles – textiles and ready-made garments 6% Precious stones and – Internet-enabled services 8% 8% 24% metals – agricultural and related products 8% Pharma – gems and jewelry 11% 22% Mineral Fuel, Oil – leather products 13% Lac, Gums, Resins – chemicals
  • 70. Best Prospects for US Entrants• Architecture, Construction and Engineering Services• Civil Aviation• Education Services• Environment and Water• Healthcare and Medical Equipment• Infrastructure (Roads, Ports and Railways)• Mining and Mining Equipment• Plastics• Power and Renewable Energy• Travel and Tourism
  • 71. Investing in India• US is India’s largest investment partner – 13%• India attracted USD 19.42b in ‘10-’11• Expected FDI to surpass $40b in Indian ‘11-’12• U.S. investment in India is led by the information, professional, scientific, technical services, manufacturing• New FDI – engineering firms pursuing huge infrastructure projects • Delhi-Mumbai Industrial Corridor • Chennai-Bangalore highway project.• Foreign investment being sought: – power generation, telecommunications, ports, roads, – petroleum exploration/processing, and mining• FDI rules have been liberalized over time, but many restrictions remain, especially in services.
  • 72. Investing in America• $4.4 billion in 2009• $3.3 billion in 2010• $4.4 billion in 2011• Primarily concentrated in the professional, scientific, and technical services sector• Contributed to creation and retention of more than 30k good American jobs
  • 73. Investing in America• The Essar Group: $1.6 billion in the declining Minnesota Steel Industries now employs 7,200 jobs• The Tata Group: more than $3 billion and 19,000 jobs• Jubliant Organsys: $246 million and 900 jobs• Wockhardt: a pharmaceutical company, acquired Morton Grove for $37 million preserving 200 jobs• Crompton Greaves: $20 million to launch a Center for Intelligent Power with University of Albany 100 high-tech jobs
  • 74. India and Canada– Shared history; Second in immigration– Leaders set CDN $15 billion trade target by 2015– $2.6b exports to India– $2.5b imports to Canada– $4,396million FDI to Canada– $587 million FDI to India
  • 75. India and Mexico• 10-year bilateral investment promotion and protection agreement (BIPPA)• $2.8b two way trade 2010• Exports from India: transportation equipment, pharmaceuticals, ready made garments, inorganic/organic/agro chemicals, etc• Imports to India: electronic goods, metal scrap, iron and steel, plastic material, etc.
  • 76. India and Brazil• BRIC• $9.28 billion two way trade in 2011• India’s exports $6.08 billion• India’s imports $3.2 billion• Focused on LAC• Agreement with MERCOSUR (Brazil, Argentina, Uruguay and Paraguay)• China
  • 77. ConclusionsColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar
  • 78. Challenges of globalization• Uneven distribution of benefits to the different sections of the society.• Its role in creating greater social stratification and inequality; widening the gaps between the “haves” and “have not’s”• Its role in destabilizing and distorting indigenous culture, tradition and values.• Its role in alienating the youth from their own place by uprooting them and at the same time not sure of providing them a landing space.• Its role in facilitating the rich to grow richer by drawing the resources from the poor.
  • 79. Costs and benefits of the spread of trade, investment, and technology for each Team’s region? Who are the winners and losers?Costs Winners• Butterfly effect • Gen X,Y & youth• Keep up with competition.• Critical view from a global perspective • Indian consumer• Loss of cultural purity • Indian companies• Can undermine the sovereignty of the • Certain industries- Services, Handicrafts nation state sector, Rural artisansBenefits People Losers• More access to information and knowledge & • Not all-inclusive globalization advances in technology • Segments of the under-served• Acquisition by Indian companies – Tata-Corus/Tata JLR/Infosys/Wipro • Certain industries – Manufacturing, mining• Availability of overseas funds • Uncompetitive public sector - Loss of jobs – Silicon Valley Bank and VCs in Bangalore to more competitive/private industries
  • 80. implications for governments, businesses, and the corporate social responsibility community?• Improve the business climate• Managing a leveled playing field in a global economy• Implement frameworks for better education, healthcare and social security• Regulate and fair ensure implementation of subsidies• Eliminate all forms of & discrimination – racial, caste, gender, sex• Environmental conservation• Enforce fair labor standards and human rights• More open and transparent tax laws
  • 81. Consequences from the spread of trade, investment, and technology in your region/countries that are of particular salience?• Costlier foreign education! (thanks to currency fluctuation)• Better access to education• Fewer poor people, net net• Better access to healthcare and social security• Increased consumer aspirations• Indian MNC’s
  • 82. Thank YouColleen Litkenhaus, Horochi Ogan, Phil Njowusi, Hugues Regal, Bipin Kumar