India and Pakistan have a bitter relationship since their independence in 1947.

The two countries fought three wars. Including war of 1971 when Bangladesh was separated from Pakistan. Kashmir dispute was the centre of all the wars. Historical review shows that at the time of independence Pakistan and India was heavily dependent on each other Indias share in Pakistan's global exports and imports accounted for 23.6 per cent and 50.6 per cent respectively in 1948-1949 which declined to 1.3 per cent and 0.06 per cent respectively in 1975-1976. India's trade balance with Pakistan which was US $ 94.7 million in 2001 has increased to US $ 948.6 million in 2006 and currently stands at US $ 1987.4 million as of 2010. Statics reveled that trade balance is heavily tilted in the favor of India but there is $ 3 billion dollars of informal trade happening between two countries which can be legalized by creating favorable rules and regulation. Recently Pakistan granted MFN status to India there is great optimism that this would improve increase trade between two countries. Since we are in surgical instrument business our company name is APEX Surgical Instruments, Inc. which is a partnership business of 14 partners. Or main office is in blue area Islamabad within few years our company has become a symbol of quality and excellence. APEX is planning to offer wide range of surgical instrument to diversify our risk and move to different markets. Presently we are targeting Indian market because it has now become one of the biggest markets of surgical instruments for this we are negotiating with various dealers in India. Our objective is to earn a profit of 50% of real investment from business operations within 5 years. In India our objective is to build a reputation of quality products and to contribute towards society to create a favorable image among local community. This is a great opportunity to work explore the Indian market because Pakistan enjoys great skill in this sector currently Pakistan is exporting surgical instruments to America, Germany, china etc. Total world market now stands at 30 billion USD in which Pakistan share is only 260.60. India have become one of the cheapest country or medical treatment people from all over the world visit India for medical treatment

Which is a good sign for all countries who export surgical instruments specially Pakistan which is a neighboring country since Pakistan and India both granted MFN status to each other it is good opportunity for us to explore Indian market. Pakistan is currently exporting to USA, France Germany Italy and India. Market in the developed world is saturated so companies from all over the world are looking at India and History of surgical instruments industry dates back to 19th century when some British doctors got their surgical instruments repaired from skilled workers in Sialkot. The industry was banned in 1994 by USA but now the ban was lifted and now industry also got its ISO certification and material testing laboratory was also established china for their exports. Following are the key reasons for pursuing this project In the coming years Pakistan can become huge market of surgical instruments since it has cheap skilled labour and large number of graduates are still looking for employment Pakistan currently has over 2300 small and medium scale units who are manufacturing surgical instruments whose output is 225-250 million pieces per year this capacity can be doubled if we can explore Indian market. Last year Pakistan exports to India were increased by over 28% this is a good opportunity to cash in to Indian market. We can offer India surgical instruments at cheaper price as demand in India is increasing each year. Since Pakistan is a neighboring country transportation cost will be low. Due to manufacturing unit are installed in Pakistan so we have an advantage to watch and observe the activities and issues related to product we can easily handle. Pakistan produces semi finished products of surgical instruments which are repackaged in Germany USA and Italy which are sold at higher prices worldwide. Time has come when we should also start doing packaging of our product and realize our potential. We also conducted SWOT analysis our strengths are our cheap skilled labour; our industry has good reputation globally in spite of our limited volume. We can also offer wide range of products at affordable prices. We also identified few weaknesses such as absence of regulatory frame work, Pakistan negative global perception especially after 9/11. Absence of research and development. Lack of quality control, inconsistent product quality.

But there are also opportunities such as rising demand of surgical instruments in Africa and Asia, $ 300 billion evolving economy. But there are also few threats against which our industry has to safe guard such as Emergence of new competitors like Poland Malaysia hungry and china competition is increasing with each passing day. New technologies are also being introduced our industry is still relying on conventional techniques to manufacture products. Trade Development Authority of Pakistan (TDAP) has also trying to encourage imports and exports. As far as facilitation for exports is concerned, besides the FBR has always adjusted import tariff to facilitate surgical industry to import its inputs at zero or on a minimal rate of custom duty. Punjab government has also established a centre to facilitate testing and training of man power. Indian medical industry was valued at US 2 billion dollars in 2006 which is expected to increase at 15 % every year. The major reason for this growth is increase investment from government and private sector. Medical instruments and devices have increased doctors ability to diagnose and treat their patients. Medical device market is quite diverse which includes medical and diagnostic equipment; medical implants like heart valve and cardiac stents, pacemakers, canola, knee joints; and lower end plastic disposables, blood bags, IV sets, syringes. Dental and surgical equipment may constitute the largest segment with about 40-50%; plastic and disposables about 25-30%; and the remaining 20-25% may constitute implants and medicated implants. In coming years global market will continue to rise as a result new innovations and technologies will be introduced so in order to compete internationally has to increase R&D budget signicantly. The global medical devices market is estimated to be USD 220 billion in 2008. The market has grown at a compounded annual growth rate of (CAGR) of 4.5% post 2000. All the leading multinational companies such as include Johnson & Johnson, Boston Scientific and Baxter have some type of presence in India. Few years ago very few Indians have access to high quality health care but now the situation is different as there is growing awareness among masses about health care issues. Secondly government has invested heavily in health care

programs as a part of 5 year program to provide better health services to its citizens. Thirdly India has more than 200 million middle class populations and their life style is changing so they are demanding better health care services. Our company is listed as a private limited company in Pakistan under companys ordinance 1984. Company is registered in security and exchange commission of Pakistan we will operate in India through our dealers. I recently got one report titled Building a presence in todays growth markets in which lots of American companies shared their insight view about risk and potential dangers in conducting business in emerging markets such as India china and Brazil. The report concluded that China Brazil and Russia pose less threat to foreign companies than china. I disagree with this view because in last 10 years multinational companies have generated millions of dollars from India and policies of Indian government are stable. Nevertheless, businesses face problems with corruption, red tape, and poor transport infrastructure Following are the challenges of doing business in India 1. India is a diversified country requirements and preference of people change with every state unlike many western country a standard set of products will not work in India. Products have to be customized to suit certain communities. 2. Multinationals companies enters in India assumes that India has large amount of cheap labour however most of the population lives in rural areas and most of the population in urban areas is self-employed so hiring cheap skilled labor may not be as easy as some companies assumed. 3. India is diversified country with lots of casts and religions these people can turn against a foreign firm if they assume that they are pursuing foreign agenda even if that was not the case since our firm is registered in Pakistan this is even more danger. 4. Law enforcement in India is weak there is corruption among lower judiciary. Some of the cases are pending for last 20 years. However some high profile cases have been highlighted where many big inverters are made sacrificial goats

5. Indian democracy is largest in the world but its certainly not the best there is a report that a least 162 members of parliament have some type of charges levied against them ex chief minister of Karnataka Mr. BSY Reddy was investigated for illegal mining and other cases. After all this we have analyze pros and cons of doing business in India advantages include better profits for company, and better international ties disadvantage includes risk of losing your capital because of massive corruption. Pollution in India is a big problem if we set up manufacturing unit in India this would lead to more pollution Lastly I have to conclude that this is the best opportunity to explore Indian market. Since government of Pakistan has granted MFN status to India in response Indian government have also allowed direct investment from Pakistan. India has a huge demand for surgical instruments which is increasing at 15% annually if we dont capture that market somebody else will. So its time to trade with India