The document analyzes foreign and domestic market conditions for Indian herbal products and software industries, highlighting the growth and export potential of these sectors. It notes the importance of traditional medicinal plants in India, with significant market expansion projected for both herbal products and auto components by 2021. Additionally, government initiatives are fostering the automotive industry's development, including investments in electric vehicles and safety technologies.

1. ANALYSIS OF FOREIGN MARKET CONDITIONS
OF FEW PRODUCTS

2. Part of a nation's internal market, representing
the mechanisms for issuing and trading securities of
entities domiciled outside that nation. Compare
external market and domestic market.
FOREIGN MARKET

3. HERBAL PRODUCTS IN FOREIGN MARKET
Traditional systems of medicine have recognized and used over 7500
species of medicinal plants out of which Ayurveda uses about 1769 species.
Export of our valuable resources to foreign countries, particularly the
western countries, is supposed to be a major means through which globalization
or the global trend can affect us.
On the other hand, there are other means also for exercising control
over our resources by the western corporate sector. It may so happen that some
of our own resources lose importance in the market by some propaganda against
their efficacy.
Similarly, it may also happen that we ignore our resources and give
priority to those from outside but promoted by market forces. Hence, the adverse
impact may either cause overexploitation, or under exploitation.

4. Ginseng and Viagra, drugs(crude/synthetic) from other countries, seem to
have accelerated the marketing of aswagandha and safed musli; and the local
equivalent satavari remained ignored under this fog of glamorous marketing, for
several years in Orissa.
Medicinal raw materials are exported from India under two categories:
specified and unspecified.
In 1947 the Indian herbal industries had an annual turnover of over 50
crores which has increased to about 4200 crores in 2004. Out of 4200 crores, 880
crores i.e., 20.95% come from export (Darshan Sankar in ICMHHP) and hence about
79% of the turnover is confined to the
domestic market.
The domestic market being the largest consumer of Indian herbs, the status
of top 20 herbs in demand seems to reflect basically the increasing trend in the
demand/production of traditional products or products based on traditional
formulations. For instance, amla is the key ingredient in chyavanprash and several
other important formulations. Similarly, the demand of satavari is not
of recent origin

5. Demand status verses growth rate of select Indian medicinal plant products by
2004-05

6. Indian herbal market is registering an extremely significant growth and is
likely to reach Rs.14,500 crore (Rs 145,000 million) by 2012 and exports to Rs.9,000
crore (Rs 90,000 million) with a CAGR of 20% and 25% respectively, according to
findings of the Associated Chambers of Commerce and Industry of India (Assocham).
In a Chamber Study on `Herbal Industry Biz Potential' has revealed that
currently, the Indian herbal market size is estimated at Rs.7000 crore (Rs 70000 mn) and
over Rs.3600 crore (Rs 36000 mn ) of herbal raw materials and medicines are exported
by India.
The study also revealed that out of 700 plant species commonly used in
India, only 20% were earlier being cultivated on commercial scale and 90% of
medicinal plant used by the industries are collected from the wild.

7. SOFTWARE PACKAGES IN FOREIGN MARKETS
In a global economy fraught with the difficulties of recession, Thai software
companies are continuing to expand their export markets.
Local companies have successfully entered two markets - Japan and the
Philippines - this year and in 2010 their sights will be set on Indonesia and Turkey.
Their strategy, planned by the association and called "global niche cluster", groups
software companies and some of their leading products into industry-based clusters, so
that comprehensive packages can be offered to overseas industries.
Even though the Thai software industry has been established for decades, a
tangible presence in overseas markets has been established only over the past few
years, under TSEP's brand.
Association president Chalermpon Punnotok said TSEP aimed to become a
regional player in the global software market, as a brand offering Thai software
clusters. After two years of operations, it has succeeded in exporting Thai software to
three markets: Vietnam, Japan, and the Philippines. From these markets it is now
earning Bt400 million per year.

8. India's software and services exports are seen rising 16-18% in the year to
March 2012, an industry body said on Wednesday, as demand for outsourcing services by
Western clients is expected to remain strong.
The National Association of Software & Services Cos (NASSCOM) forecast
export revenue of USD 68 billion to USD 70 billion for India's showpiece outsourcing
sector in fiscal 2012.
India's IT sector, whose clients include General Electric and Citigroup, would
see export revenue rise 18.7% to USD 59 billion in fiscal 2011, NASSCOM said.
It had estimated export revenue of USD 56- USD 57 billion last February.
"Pent-up demand for IT-BPO services, return of discretionary spending, new
business models that encouraged first time buyers, and re-invented value proposition for
existing ones, were the key drivers for the industry performance," Som Mittal, president
of NASSCOM said in a statement.
Last month, India's top two software services exporters Tata Consultancy
Services and Infosys Technologies said business remains good in 2011 but were worried
Europe's debt crisis and rising domestic inflation could weigh on growth.

9. A straightforward application of this model may seem to explain the recent rise
of the Indian software industry. Simply put, the Indian government has devoted many
resources to university technical education which produced a large amount of technical
talent.
This drove down the equilibrium wage in India, and foreign companies took
advantage of this differential to increase profits. Although this may explain the industry
on a superficial level, it does not help us understand deeper questions regarding the
evolution of the industry.
We still need to examine how the current industry structure evolved and why
some companies grew and gained large degrees of market power while others did not.
To understand these questions, one must explicitly reexamine the
fundamental assumptions of these models.
These traditional economic models assume zero transaction costs when
trading internationally. However, transaction costs seem to play a large role in the
success of firms in the industry. These costs involve asymmetric information between the
foreign customers and the Indian firms. Asymmetric information

10. AUTO COMPONENTS MARKET IN FOREIGN COUNTRIES
The Indian auto component industry is expected to reach a turnover worth US$
113 billion by 2020-21 from US$ 43.4 billion in 2011-12, according to a Automotive
Component Manufactures Association (ACMA) report titled, 'Auto Component Industry
in India: Growing Capabilities & Strengths'.
The exports from the industry are expected to grow at a compound annual
growth rate (CAGR) of 17 per cent during 2012-21, the ACMA report highlighted.
India has emerged as one of the world's most competitive tyre markets due to
vast availability of raw material (natural rubber) and ultramodern production facilities.
The radial tyre market is expected to reach Rs 393 billion (US$ 7.33 billion) by FY 2015
growing at a CAGR of more than 21 per cent during FY 2011-FY 2015.
The automotive plants of global automakers in India rank among the top across
the world in terms of their productivity and quality. Top auto multinational companies
(MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on
top of their global pecking order.

11. The Indian automobile and auto components industry can be expected to surpass
China's growth path by 2021, according to a research report by Espirito Santo
Securities.

12. Market Structure
The tyre production in India is anticipated to reach 191 million units
by the end of FY 2016, according to a RNCOS research report titled, 'Indian
Tyre Industry Forecast to 2015'. The manufacturers are expected to invest huge
amount into the industry over the next few years, with a major proportion of
this investment directed towards the radial tyre capacity expansion.
In addition, with a significant increase in the number of CNG
vehicles, the CNG vehicle market is witnessing a strong growth pattern.
According to a RNCOS report titled, "India CNG Vehicle Market
Analysis", the CNG kit market is expected to reach around INR 30 Billion in
FY 2014, growing at a CAGR of around 22 per cent during FY 2011-2014.

13. India: The Global Auto Hub
The amount of cumulative foreign direct investment (FDI) inflow into the
automobile industry during April 2000 to January 2013 was worth US$ 8,061
million, accounting to 4 per cent of the total FDI inflows (in terms of US$), as per data
published by Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce.
A delegation of Japanese auto component companies visited Tamil Nadu (TN)
to explore investment opportunities and scout for partnerships with Indian auto
component makers. The State houses over 300 Japanese companies and these tier 1
companies would need support from tier 2 component makers and other micro, small and
medium enterprise (MSME) suppliers.
Apollo Tyres plans to expand its reach in Association for South East Asian
Nations (ASEAN). The company will set up a subsidiary to explore market opportunities
in the region.
Honda Cars India Ltd (HCIL) plans to export diesel engine components to
Asian and European markets from India.

14. Key Developments and Investments
Supportive government policies, positive business environment, availability
of reasonably priced talented workforce and stable outlook for the industry has made
India a global hub for the international manufacturers to set up their facilities in the
country. The auto components manufacturers are also reaping the benefits.
• Federal-Mogul has announced the launch of Ferodo commercial-vehicle
(CV) brake lining in the Indian market. The product is being
manufactured at the company's spanking new plant in Chennai
• Alten will set up an automotive testing facility at its labs in Chennai, Tamil
Nadu. The facility will help automobile manufacturers in and around Chennai to
outsource testing of components such as diesel engines and suspension system
• Toyota Kirloskar Auto Parts has commenced production at a new engine and
transmission plant for the Etios range of sedans and hatchback cars in India. Production
at the new plant involves an investment of about Rs 500 crore (US$ 92.59 million)

15. Government Initiatives
The Government of India plans to introduce fuel-efficiency ratings for
automobiles to encourage sale of cars that consume less petrol or diesel, as per Mr
Veerappa Moily, Union Minister for Petroleum and Natural Gas.
The Government's electric vehicle (EV) policy calls for a plan worth Rs
23,000 crore (US$ 4.26 billion), to promote the production of electric and hybrid
vehicles over the next eight years, and set a sales target of 6 million units by 2020.
In a bid to improve safety features of vehicles, the Government has asked
automobile manufacturers to develop a gadget which would be similar to the 'black
box' installed in planes. The owner would not be able to turn the instrument off or on
and the snapshot could be viewed by legal bodies, insurance companies and
automakers.
Moreover, Mr C P Joshi, Minister of Road Transport and
Highways, Government of India, has also asked manufacturers to contemplate on the
option of fixing such IT-enabled instrument to improve safety and security of the
vehicles.