Indo American Chamber Of Commerce Of Greater Houston


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  • 56 Top Gallant Road P. O. Box 10212 Stamford, CT 06904-2212 Copyright © 2001 Entire contents © 2001 by Gartner Group, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner Group disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner Group shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. Storage Networks and E-Storage Bob Passmore
  • Indo American Chamber Of Commerce Of Greater Houston

    1. 1. November 16 th 2006 Jagdip Ahluwalia. Executive Director, IACCGH Honorary Executive Director, Alliance of Indo American Chambers of Commerce Indo-American Chamber of Commerce of Greater Houston (IACCGH) We thank Dr Abdul Shaikh, Senior International Economist, US Department of Commerce, and the IBEF ( for generously sharing their material and slides regarding India.
    2. 2. Today’s Discussion <ul><li>Why India? </li></ul><ul><li>Export Opportunities for U.S. Companies </li></ul><ul><li>Individual Indian Cities and Sectors </li></ul><ul><li>Support and Resources Available </li></ul><ul><li>Questions & Answers </li></ul>
    3. 3. About India World’s Largest Democracy Over One billion people 250-300 million middle class 10 th largest global economy 4 th in Purchasing Power Parity Strong Sustained GDP growth Attractive and diverse market for product and services Easier access to capital
    4. 4. $849 billion GDP (2006, current price) 1 4 th largest economy in PPP $3.7 trillion in 2005 2 World’s Fastest Growing Democracy 3 8.9% growth rate in Q2 20064 India – World’s Fastest Growing Free Market Democracy Source: <ul><li>IMF - </li></ul><ul><li>World CIA Fact book Online </li></ul><ul><li>India Resource Center - </li></ul><ul><li>www. </li></ul>
    5. 5. India has among the highest returns on foreign investment - Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005 “ We came to India for the costs, stayed for the quality and are now investing for innovation.” A T Kearney FDI Confidence Index 2005 India is among the three most attractive FDI destinations in the world Jack Welch General Electric “ India is a developed country as far as intellectual capital is concerned.” US Department of Commerce By 2032, India will be among the three largest economies in the world BRIC Report Goldman Sachs, October 2003 Why Invest in India?
    6. 6. <ul><li>India ahead of Brazil, China and Russia in the World Economic Forum’s Global Competitiveness Index rankings for 2006-07 1 </li></ul><ul><ul><li>India : 43 rd Russia: 62 nd </li></ul></ul><ul><ul><li>Brazil: 66 th China: 54 th </li></ul></ul>India: BRIC Ranking <ul><li> </li></ul>Goldman Sachs report on BRIC countries (2003) estimates that among the BRIC countries (Brazil, Russia, India and China) India may have the highest growth rate (5% + over the next 50 years)
    7. 7. U.S. Exports to India (2005) <ul><li>$7.96 Billion Merchandise Exports </li></ul><ul><li>30% increase over 2004 </li></ul><ul><li>$4.16 billion Services Exports </li></ul><ul><li>(travel, education, business services) </li></ul><ul><li>$27 Billion in Bilateral Trade </li></ul>
    8. 8. Drivers of Increased Exports by U.S. Companies <ul><li>Changes in Indian Governmental Policies </li></ul><ul><li>Indian Market and Demographics </li></ul><ul><li>Indian Economic Growth </li></ul><ul><li>U.S. Export Support </li></ul>
    9. 9. Government of India (GOI) Policy Trends <ul><li>Liberalized import policy </li></ul><ul><li>Lower import tariffs, simplified regs </li></ul><ul><li>Removal of quantitative restrictions (QR’s) </li></ul><ul><li>Lower customs duties for projects (from 25% to 10%) </li></ul><ul><li>Duty free imports on certain items </li></ul><ul><li>Major tariff reductions on chemicals, pharma, textiles, packaging machinery </li></ul><ul><li>Strong focus on infrastructure development </li></ul><ul><li>Simplified documentation procedures (e-filing) </li></ul><ul><li>FDI allowances and limits raised </li></ul><ul><li>Opening of FDI in mining, retail, and pensions under review </li></ul><ul><li>Import of second hand capital goods without age restrictions </li></ul><ul><li>Aggressive telecom policies </li></ul>
    10. 10. India: Attractive Demographics Growth in the higher income categories of India’s population, has lead to a burgeoning affluent section of society, which has significant level of purchasing power
    11. 11. GDP Continues Rapid Growth <ul><li>GDP has grown 7% plus for the last 9 quarters (except Q2 2004-05) 1 </li></ul><ul><li>8.9% Growth for Q2 2006 1 </li></ul><ul><li>Growth is Occurring Across Sectors 1 : </li></ul>1. www. -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2003 2004 2005 2006 Service Total Industry Agriculture
    12. 12. Growth is Across Sectors 40 60 Rising consumer demand is manifested in growth of key sectors of capital and consumer goods and services Coal Production 0 100 200 300 400 500 FY81 FY91 FY01 FY05 Steel Production 0 10 20 30 40 50 FY81 FY91 FY01 FY05 Power Transformers 0 20 40 60 80 FY81 FY91 FY01 FY05 Automobiles 0 500 1000 1500 FY81 FY91 FY01 FY05 Life Insurance 15000 22500 30000 FY04 FY05 Rs crore 2.5 2.75 3 Crore (nos) New premium income Number of policies Mobile Subscribers 0 20 2001 2002 2003 2004 2005 2006 Metros Other circles Source: Economic Survey
    13. 13. Key Indian Cities
    14. 14. Karnataka is a Top 5 Industrialized State One global corporation moves in each week India’s ‘Knowledge Capital’ Bangalore (Karnataka) Bangalore ranked 4th by UNDP as ‘Global hub of technological innovation’
    15. 15. Bangalore Information Technology 20% of Indian Electronics production Over 354 units with Revenues over $2 Billion One new IT company is set up in each week India’s IT Capital with Over $8.5 B Software Exports Est $10 Billion by 2008 35% of India’s Software Exports . Over 50% of the worlds SEI CMM level 5 companies
    16. 16. Bangalore Biotechnology No.of Companies 110 (>65% of India’s Biotech companies) Employment 8000 (50% Scientific Personnel) Export Turnover USD 188 Million National Centers of Excellence 2 of 6 are in Bangalore Venture Capital Funding Highest in Karnataka
    17. 17. Chennai or Madras (Tamil Nadu) <ul><li>India’s Eastern Gateway </li></ul><ul><li>to the world </li></ul>
    18. 18. Chennai Business Opportunities <ul><li>Software development & related Services (BPO) </li></ul><ul><li>Automobiles & components </li></ul><ul><li>Textiles, garments and home furnishings </li></ul><ul><li>Leather based products </li></ul><ul><li>Agro / food Processing </li></ul><ul><li>Bio-Technology, Pharma & Herbal based products </li></ul><ul><li>Software & Electronics </li></ul><ul><li>Chemicals & Petrochemicals </li></ul><ul><li>Roads & minor Port development </li></ul>
    19. 19. Chennai Automobile Sector <ul><li>Ford, Hyundai, Mitsubishi </li></ul><ul><li>( Passenger Cars) </li></ul><ul><li>Ashok Leyland </li></ul><ul><li>(Heavy Vehicles, Trucks) </li></ul><ul><li>TAFE (Tractors) </li></ul><ul><li>Eicher (Motor Cycles) </li></ul><ul><li>Over 3 Billions in Sales </li></ul><ul><li>Over 100 Automobile Component (ACMA) Ventures </li></ul><ul><li>Total ACMA 2015 Revenue Projected at $35-40 Billion* </li></ul>
    20. 20. Hyderabad – Key Strength Areas <ul><li>IT/ITES </li></ul><ul><li>Agriculture & Food Processing </li></ul><ul><li>Textiles & Apparel </li></ul><ul><li>Pharma </li></ul><ul><li>Hardware & Manufacturing </li></ul>
    21. 21. Mumbai – India’s Business Capital The fastest growing State in India The only State to achieve a growth rate of over 8% per annum Capital of Maharashtra Commercial, trading, financial and services capital. Hosts most top Indian business houses and many global multinationals. Hosts headquarters of the Reserve Bank of India (RBI) and of most other financial institutions. Home of the Bombay Stock Exchange (BSE). Oldest Stock Exchange in Asia, founded in 1875. Contributes over one-third of India’s income-tax revenues and over 30% customs revenue. Also movie (Bollywood) and e-biz capital.
    22. 22. Maharasthra Sectoral Strengths <ul><li>Sector Maharashtra’s Share </li></ul><ul><li>Financial services/Equities market 95% </li></ul><ul><li>Pharmaceuticals 40% </li></ul><ul><li>Automobiles and auto components 38% </li></ul><ul><li>IT/ITES 30% </li></ul><ul><li>Chemicals, petrochemicals, oil and gas 27% </li></ul><ul><li>Engineering 23% </li></ul><ul><li>Textiles 10% </li></ul>
    23. 23. Mumbai Business Opportunities <ul><li>Education </li></ul><ul><li>Energy </li></ul><ul><li>Entertainment </li></ul><ul><li>Environment </li></ul><ul><li>Financial Services </li></ul><ul><li>Infrastructure </li></ul><ul><li>Machine Tools </li></ul><ul><li>Medical/Healthcare </li></ul><ul><li>Retail </li></ul>
    24. 24. New Delhi – The Capital City 6 th Largest Metropolis in the World All Embassies All Federal Governmental Headquarters All major political/strategic decisions
    25. 25. New Delhi – Key Industries Aerospace/Defense Energy IT/Telecom Health Care Environment Infrastructure
    26. 26. Overall Best Export Prospects <ul><li>Airport and Ground Handling Equipment </li></ul><ul><li>Computers and Peripherals </li></ul><ul><li>Education Services </li></ul><ul><li>Electric Power Generation, Distribution and Transmission Equipment </li></ul><ul><li>Food Processing & Cold Storage Equipment </li></ul><ul><li>Machine Tools </li></ul><ul><li>Medical Equipment </li></ul><ul><li>Mining and Mineral Processing Equipment </li></ul><ul><li>Oil and Gas Field Machinery </li></ul><ul><li>Pollution Control Equipment </li></ul><ul><li>Safety and Security Equipment </li></ul><ul><li>Telecommunications Equipment </li></ul><ul><li>Textile Machinery </li></ul><ul><li>Water Treatment </li></ul>
    27. 27. Keys to Success in India <ul><li>Good local partners knowledgeable regarding the local market and procedural issues. </li></ul><ul><li>Study the Market & Competition. </li></ul><ul><li>Good planning. </li></ul><ul><li>Aggressive due diligence and follow up. </li></ul><ul><li>Patience and commitment. </li></ul><ul><li>Obtain Export Counseling. </li></ul><ul><li>Understand the rules, standards and regulations. </li></ul>
    28. 28. The US Department of Commerce Can Lend a Helping Hand Nov 2006 Trade Delegation Led by Under Secretary for International Trade Franklin L. Lavin In Coordination with the U.S. Commercial Service in the U.S. and India
    29. 29. Intellectual Property Issues Being Resolved <ul><li>India and the United States are working closely to help improve the IPR situation there. </li></ul><ul><li>The two governments have conducted over a dozen intellectual property training programs and exchanges. </li></ul><ul><li>Forums such as the U.S-India Commercial Dialogue and the US-India Trade Policy Forum allow for the continue exchange of ideas which enable India to gain the information needed to make reforms in the IPR sector. </li></ul>
    30. 30. <ul><li>Business Chambers </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>U.S. Government </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>Important Online Resources
    31. 31. <ul><li>We thank </li></ul><ul><li>Consul General S M Gavai, </li></ul><ul><li>Consul General of India in Houston </li></ul><ul><li>& </li></ul><ul><li>The Indian Embassy in Washington DC for their support of IACCGH and the </li></ul><ul><li>Alliance of Indo American Chambers </li></ul>IACCGH
    32. 32. <ul><li>We are here to help your </li></ul><ul><li>Business with India Succeed </li></ul><ul><li>Contact : Jagdip Ahluwalia, Executive Director </li></ul><ul><li>IACCGH 1535 West Loop South, Suite 200 Houston TX 77027 Tel: 832 746 8372 Email: </li></ul><ul><li>100,000+ Indo Americans in the Greater Houston Area Member of the Alliance of Indo American Chambers </li></ul>IACCGH