Subject: Marketing Products Abroad MPA

Topics: India and Canada trade and investment opportunities

India’s trade and investment opportunities in a country

1. Basic information of the selected country-GDP, Foreign exchange

reserve, GDP, Composition of GDP .Population etc.

Canada vs. India CANADA'S ECONOMY GDP of Canada: $1.74 Trillion

(2012 EST.)
GDP per capita: $41,100 (2011 EST.) Population below the poverty line: 29.8%
(2010 est.)…. 1,210,193,422 Unemployment Rate: 9.8% (2011 est.) Labour
Force: 487.6 million (2011 est.) Inflation Rate: 7.55% (2012) GDP: US$1.676
trillion (2011 est.
GDP per Capita: US$3,700 (2011) India Electricity Production: 604.4 billion
kWh (2009 est.)
Electricity Consumption: 549.5 billion kWh (2008 est.) Others Industries:
transportation equipment, chemicals,
processed and unprocessed minerals, food products, wood and paper products,
fish products, petroleum and natural gas Population Below Poverty Line: 9.4%
(2008 )
/ 34,300,083 (July 2012 est.) GDP of Canada: $1.74 Trillion (2012 EST.)
GDP per capita: $41,100 (2011 EST.) Canada Comparing Economies:
Canada vs. India Inflation Rate: 2.9% (2011 est.) Labour Force: 18.67 million
(2011 EST.)
Unemployment rate: 7.5% (2011 EST.) INDIA'S ECONOMY Agriculture: 52%
Industry: 14% Services: 34%
(2009 est.) OTHER: Also includes: textiles, chemicals, food processing, steel,
transportation equipment, cement, mining, petroleum, machinery, software,
pharmaceuticals Electricity - production: 835.3 billion kWh (2009 est.)
Electricity- Consumption: 600.6 billion kWh (2008 est.)
 2. Economy of the country

ECONOMIC GROWTH OF INDIA AND CANADA INDIA: +7.44%

(2009) CANADA: + 2.21% (2012) Population . . . India: 1,241,491,960
Canada: 34,482,779 . . . So? As you can see, both economies differ greatly.
Comparing their growth rate, India is doing a much better job than Canada
is. But that can also be due to the fact that their population is much larger
than Canada's. India's economy is booming while Canada's is slowing down.
It's rapidly growing because India's employment rate is increasing. And
because India has started becoming a developing nation, and exporting and
importing is now available with India, it has given a lot of opportunities for
jobs and businesses to open and expand. Canada's economy is slowing down
because there wasn't a great change in the GDP from April 2012 to May
2012. To conclude, since Canada is not doing as well as India, due to
specific factors, the best way to meet our economic growth is by staying a
mixed economy or a market economy.

3. Major products produced in the country

a. Major Products and Its Producing States in India

Barley-Bihar, Uttar Pradesh, Haryana.

Coffee-Karnataka, Tamil Nadu (Nilgiri Hills) and Kerala.

Cotton-Maharashtra, Madhya Pradesh, Tamil Nadu, Meghalaya, Andhra

Pradesh and Punjab.

Gram and Pulses-Punjab, U.P., Madhya Pradesh, Haryana, Karnataka,

Maharashtra.

Groundnut-Andhra Pradesh, Gujarat and Madhya Pradesh.

Jute-Assam, Meghalaya, West Bengal, Bihar and Orissa.

Maize-Bihar, Punjab and Uttar Pradesh.

Mustard (Sanson) and Rapeseed-West Bengal, U.P., Punjab, Himachal

Pradesh, J & K.

Potato-U.P., Uttaranchal, Punjab, Himachal Pradesh, Meghalaya and Kashmir.

Rice-West Bengal, Andhra Pradesh, Madhya Pradesh, Bihar, Tamil Nadu,
Punjab and Haryana.

Rubber-Karnataka, Kerala and Tamil Nadu.

Spices-Pepper in Kerala and West Bengal, Chillies in West Bengal, Tamil Nadu
and Maharashtra; Cardamom in Karnataka and Tamil Nadu and Betelnuts in
West Bengal.

Sugarcane-Bihar, Uttar Pradesh, Meghalaya, West Bengal, Maharashtra and

Punjab.

Tea-Assam, Kerala, West Bengal, Nilgiri Hills, Uttar Pradesh and Kangra Hills.

Tobacco-Andhra Pradesh, Bihar, Uttar Pradesh, Maharashtra, West Bengal,

Karnataka and Tamil Nadu.

Wheat-Punjab, Uttar Pradesh, Madhya Pradesh and Haryana.

b. Major products produced in the Canada

Major agricultural products

See also: Agriculture and Agri-Food Canada

Agriculture in Canada comprises five main agricultural production sectors of

commodity production resulting in farm cash receipts from both domestic and
for marketing

Five Largest Agricultural Production Sectors[22]

per cent
Primary
Sector cash
market
receipt
grains and oilseeds (wheat,
durum, oats, barley, rye, flax domestic
34%
seed, canola, soybeans, rice, and and export
corn)
red meats – livestock
domestic
(beef cattle, hogs, veal, and 24%
and export
lamb)
dairy 12% domestic
 horticulture 9% domestic
poultry and eggs 8% domestic

Various factors affect the socio-economic characteristics of Canadian

agriculture.

4. Major products exported from the country

A .Exported from india

1Petroleum products

shares
Value - 61.2 billion dollars
Oil-based products and crude oil giants such as Hindustan Petroleum
Corporation Limited, Bharat Petroleum, Reliance Petroleum, ONGC and
et al have contributed largely to the export sector of India. Although the
country is hugely dependent on oil imports, export of oil-based products
has supported the economy to a large extent.
2Jewellery

shares
Value - 41.2 billion dollars
The term 'jewellery' here includes gold, gemstones and similar materials.
India consumes around 20 per cent of the global gold production and 75
per cent of that amount goes into making jewellery. The jewellery sector
is also supported by banks and government policies so that the industry
does not fall drastically. Around 30 per cent of Indian jewellery gets
exported to the United States alone. Other such countries include Hong
Kong, UAE, Singapore and Belgium.
3Automobile

shares
Value - 14.5 billion dollars
From 2008 to 2013, the Indian automobile export sector has seen a rise 17
per cent, one of the fastest economic growths that has ever taken place in
the sector. Being one of the leading steel producers in the world, India
invests largely on the automobile sector and its export.

4Machinery

shares
Value - 13.6 billion dollars
There has been a 10.5 per cent increase in the export of heavy machinery
from India. These include cars, pumps, heavy machines, building
construction tools, agricultural equipment and so on.

5Bio-chemicals

shares
Value - 12 billion dollars
Manufacturing bio-chemicals is a nationwide business in India. The
sector contributes hugely to the national economy and is an essential part
of it. Manufacturers and exporters are spread all over the country.
Research facilities have also supported this sector to a large extent.

6Pharmaceuticals
 shares
Value - 11.7 billion dollars
Being a research-based industry, the pharmaceuticals sector in India has
seen a huge growth over the past few decades. Major pharma industries
such as J. B. Chemicals and Pharmaceuticals Limited, Suven Life
Sciences Limited, Dr. Reddy's Laboratories, Aurobindo Pharma, Luipin,
Ranbaxy, Sun Pharma, Zydus Cadila, Glowchem and Calyx play a huge
role in promoting the sector to the world market.

7Cereals

shares
Value - 10.1 billion dollars

India is one the leading exporters of cereals and the second largest producer
of rice. Being an agriculture-driven country, India depends largely on its
produce of cereals and so does the importer countries such as Iran, Saudi
Arabia, Indonesia, UAE and Bangladesh.
8Iron and steel

shares
Value - 9 billion dollars
Before Independence, India used to depend on its import of iron and steel.
But now, the country has gone through such an industrial growth that it
has become the fourth largest steel producer in the world. Steel tycoons
such as TISCO, IISCO, Bhilai Iron and Steel Centre, and Visweswaraya
Iron And Steel Limited play a major role in the iron and steel export from
India.

9Textile

shares
Value - 9 billion dollars
 Textile is India's trump card when it comes to exports. India tops the chart in
jute production and also holds 63 per cent of the global market share in
textiles and garments.

10Electronics

shares
Value - 9 billion dollars
When it comes to manufacturing electronic equipment, India is still seen
as an importing country. However, the export part of this sector thrives
silently yet largely. India has the third largest pool of electronic scientists
and engineers and the domestic demand of electronic goods propels the
industry to grow faster and stronger, making export all the more
important.

b. India Exports to Canada

Info drivei ndia presents detailed analysis of India Exports to Canada with
detailed break up at major hs codes, products and ports. These findings are
based on India Export database of infodriveindia and is based on shipping bills
and bills of entry filed at Indian customs. Infodriveindia’s India Export database
is the most up-to-date and authentic information on India’s foreign trade.
(Values in US$ Million)

% % % %
S. Top Products Jan- Exp Jan- Exp YOY Jan- Exp Jan- Exp
Grow
No Exported to Canada Dec- ort Dec- ort Grow Oct- ort Oct- ort
th%
. by India 2014 Sha 2015 Sha th% 2015 Sha 2016 Sha
re re re re

medicaments
(excluding goods of
heading 3002, 3005
or 3006) consisting of
mixed or unmixed
products for
therapeutic or
$110. 6.2 $128. 7.6 15.67 $107. 7.4 $108. 7.9 0.753
1 prophylactic uses,
94M 629 33M 159 51 77M 441 58M 705 2
put up in measured
doses (including
those in the form of
transdermal
administration
systems) or in forms
or packings

crustaceans, whether
in shell or not, live,
fresh, chilled, frozen,
dried, salted or in
brine; smoked - -
$87.9 4.9 $67.5 4.0 $58.0 4.0 $49.5 3.6
2 crustaceans, whether 23.24 14.54
in shell or not, 4M 644 0M 059 3M 083 9M 400
20 82
whether or not
cooked before or
during the smoking
process; crustaceans,
in shell, cooked by
 steaming or by
boiling

flat-rolled products
of iron or non-alloy
- -
steel, of a width of $64.9 3.6 $10.1 0.6 $10.1 0.7 $0.00 0.0
3 84.35 100.0
600 mm or more, 6M 670 6M 030 6M 019 M 000
68 000
hot- rolled, not clad,
plated or coated

vegetable saps and

extracts; pectic
substances,
pectinates and
pectates; agar-agar
- -
and other mucilages $49.2 2.7 $12.5 0.7 $10.9 0.7 $8.71 0.6
4 74.46 20.34
and thickeners, 5M 801 8M 464 3M 553 M 394
10 33
whether or not
modified, derived
from vegetable
products - vegetable
saps and extracts :

heterocycliccompoun
dswithnitrogen
hetero-atom(s) only -
compounds -
$41.5 2.3 $40.1 2.3 $32.6 2.2 $39.2 2.8 20.04
5 containing an 3.432
4M 451 2M 807 9M 580 4M 806 35
unfused pyrazole ring 1
(whether or not
hydrogenated) in the
structure :

other furnishing -
$40.0 2.2 $31.7 1.8 $27.9 1.9 $33.9 2.4 21.72
6 articles, excluding 20.72
8M 627 8M 857 0M 274 6M 933 40
those of heading 40
 9404 - bedspreads :

-
other cast articles of $39.5 2.2 $47.4 2.8 20.24 $41.3 2.8 $34.5 2.5
7 16.39
iron or steel 0M 296 9M 183 39 8M 583 9M 395
60

-
$38.4 2.1 $41.2 2.4 7.153 $37.2 2.5 $30.0 2.2
8 rice 19.37
8M 724 4M 472 5 8M 751 6M 063
71

t-shirts, singlets and - -

$35.1 1.9 $33.3 1.9 $28.3 1.9 $22.8 1.6
9 other vests, knitted 5.038 19.23
6M 849 9M 815 4M 577 9M 802
or crocheted 3 78

bed linen, table linen, -

$34.5 1.9 $28.0 1.6 $22.4 1.5 $35.6 2.6 59.26
10 toilet linen and 18.81
2M 490 3M 634 1M 479 9M 198 08
kitchen linen 51

C. Canada exports to india

The main items exported by Canada to India are:

Peas

Copper

Minerals

Industrial chemicals

Newsprint

Wood pulp

Asbestos

Iron scrap
 The following export product groups represent the highest dollar value in
Canadian global shipments during 2016. Also shown is the percentage share
each export category represents in terms of overall exports from Canada.

At the more granular four-digit Harmonized Tariff System code level,

Canada’s number one export is cars followed by crude oil, gold, automotive
parts or accessories, refined petroleum oils, petroleum gas then sawn or
chipped wood.

1. Vehicles: US$64.3 billion (16.5% of total exports)

2. Mineral fuels including oil: $62.3 billion (16%)
3. Machinery including computers: $30 billion (7.7%)
4. Gems, precious metals: $18.7 billion (4.8%)
5. Wood: $13.2 billion (3.4%)
6. Electrical machinery, equipment: $12.6 billion (3.2%)
7. Plastics, plastic articles: $12.1 billion (3.1%)
8. Aircraft, spacecraft: $10.3 billion (2.6%)
9. Pharmaceuticals: $8.4 billion (2.2%)
10.Aluminum: $8.1 billion (2.1%)
11.Wood was the fastest-grower among Canada’s top 10 export categories,
up 101.8% for the 7-year period starting in 2009.
12.In second place for improving export sales were vehicles which gained
90.6%.
13.Led by gold and silver, the gems and precious metals category posted the
third-fastest gain at 77.1%.
14.Mineral fuels including oil decreased in value by -13.6%. The other top
Canadian export category to decline was electrical machinery and
equipment which posted a -11.1% setback compared to 2009.

What does Canada export to India?

Legumes, fertilizers, and newsprint account for 48% of the total value of
exports to India.
5.Major countries of exportst

Trade between Canada and India is dominated by a few commodities November

4, 2012

Here is a quick snapshot of trade patterns between Canada and India, that may
offer a bit of context given that the Canadian Prime Minister is currently in
India.

Trade between the two countries is only a very small fraction of their overall
exports: in 2009 total Canadian exports amounted to about $308 billion, but
only about $2 billion went to India

A. Where does Canada export to?

Almost three-quarters of the value of all Canadian exports go to the United

States, with India representing 0.67% of the total (the first light green shaded
square running down the right hand edge).
Where does India export to?

Canada is the little sliver below the United States, in red representing 1%
of total Indian exports. Spain accounts for a greater fraction of Indian
exports than Canada.
 You can make your own visualizations of trade between any two
countries at a cool web site called The Observatory, based at MIT, and
from which I have created all of these pictures using data for 2009

6.Major countries of imports

A. How to Import

As for how to go about importing, you will need to inform yourself about a
great many things: how to make contacts abroad, how to assess the
merchandise, how to negotiate delivery and payment contracts, how to make
payments abroad, how to get the freight shipped, how to clear Customs, how to
store the goods, how to distribute them in Canada, how to deal with defective or
sub-standard goods, how to get payments from clients in Canada…

Some of these questions are standard to all small businesses, and the
Entrepreneurship Centre can probably help you. Some exploratory calls to
customs brokers or freight forwarders will amply repay your time and effort.
We expect the Canadian Importers' Association can also help you find your
way.
 Like anyone setting up a new business, you will find that there are quite a
few ropes to be learnt. We hope this material will at least point you in the
right way. We wish you success in your endeavours

B. Imports in canada

Canada was the United States' 3rd largest supplier of goods imports in 2016.

U.S. goods imports from Canada totaled $278.1 billion in 2016, down 6.1%
($18.1 billion) from 2015, and down 8.1% from 2006. U.S. imports from
Canada are up 150% from 1993 (pre-NAFTA).

The top import categories (2-digit HS) in 2016 were: vehicles ($58 billion),
mineral fuels ($54 billion), machinery ($19 billion), special other (returns) ($15
billion), and plastics ($10 billion).

U.S. imports of agricultural products from Canada totaled $22 billion in 2016,
our 2nd largest supplier of agricultural imports. Leading categories include:
snack foods ($4.0 billion), red meats, fr/ch/fr ($2.2 billion), other vegetable oils
($1.8 billion), live animals ($1.5 billion), and processed fruit & vegetables ($1.4
billion).

U.S. imports of services from Canada were an estimated $29.6 billion in 2016,
2.0% ($585million) more than 2015, and 23.6% greater than 2006 levels. It was
up roughly 225% from 1993 (pre-NAFTA). Leading services imports from
Canada to the U.S., in 2015,were in the travel, transportation, and
telecommunications, computer, and information services sectors.

one of the main items imported by Canada from India are:

Textiles

Carpets

Floor spreads
Readymade garments

Jewelry

Cotton yarn

Organic chemicals

Coffee

Spices

Iron and steel articles

Rice, cereals, processed foods

Marine products

Footwear

C. India Imports

Crude petroleum is India's biggest import with $155bn spent on it in 2012.

Imports of gold and silver amounted to $62bn and electronic goods and pearls
and precious stones are also top import items for the country.

India's top import source is China followed by the UAE, Switzerland and Saudi
Arabia. The UK came in at 21st place in 2011-12 with India importing a total of
$7.7bn. In the six months recorded so far for 2012-13, the UK has dropped a
place and has a 1.4% share of the India's import sources.

The table below shows India's imports and exports by country including the
share. The downloadable spreadsheet also has data on the top import and export
products for the country. What can you do with this data?

India imported US$356.7 billion worth of goods from around the globe in 2016,
up by 33.9% since 2009 but down by -8.7% from 2015 to 2016.

India’s top 10 imports accounted for almost three-quarters (74.3%) of the

overall value of its product purchases from other countries.

Indian imports represent 2.2% of total global imports which totaled $16.473
trillion one year earlier in 2015.
From a continental perspective, 58.2% of India’s total imports by value in 2016
were purchased from other Asian countries. European trade partners supplied
17.5% of import sales to India while 7.4% worth originated from North
America with 7.3% coming from suppliers in Africa.

Given India’s population of 1.267 billion people, its total $356.7 billion in 2016
imports translates to roughly $280 in yearly product demand from every person
in the country.

D. India’s Top 10 Imports

The following product groups represent the highest dollar value in India’s
import purchases during 2016. Also shown is the percentage share each
product category represents in terms of overall imports into India. At the
more granular four-digit Harmonized System Tariff code level, India’s
number one import is crude oil, gold, diamonds and mobile phones.

Mineral fuels including oil: US$89.3 billion (25% of total imports)

Gems, precious metals: $48.1 billion (13.5%)

Electrical machinery, equipment: $37 billion (10.4%)

Machinery including computers: $32.5 billion (9.1%)

Organic chemicals: $14.8 billion (4.1%)

Plastics, plastic articles: $11.4 billion (3.2%)

Animal/vegetable fats, oils, waxes: $10.5 billion (2.9%)

Iron, steel: $8.7 billion (2.4%)

Optical, technical, medical apparatus: $7.2 billion (2%)

Ships, boats: $5.5 billion (1.5%)

Imported plastics and plastic articles had the fastest-growing increase in value
among the top 10 import categories, up 121.9% for the 7-year period starting in
2009.

In second place for improving import sales were animal or vegetable fats, oils
and waxes up 112.3%. Then came Indian imports of ships or boats recording the
third-fastest gain at 80.9%.

Iron or steel was the laggard among the top 10 Indian imports, posting a modest
2.9% uptick.

Please note that the results listed above are at the 2-digit Harmonized Tariff
System code level. Information presented under other virtual folder tabs is at the
more granular 4-digit level.

Top ten importers from India, by value of trade in US$m and share of total

Click headings to sort table. Download the data for all countries worldwide

Country 2012-2013 (Apr- Sep) %Share (2012-2013 (Apr- Sep)

USA 19704.05 13.87
UAE 18601.71 13.09
SINGAPORE 6652.77 4.68
CHINA 6417.32 4.52
HONG KONG 6137.9 4.32
SAUDI ARAB 4636.29 3.26
NETHERLANDS 4458.24 3.14
UK 4112.26 2.89
GERMANY 3491.77 2.46
BRAZIL 3042.64 2.14
7. India’s export to the selected country

A.Where does India export to?

Canada is the little sliver below the United States, in red representing 1% of
total Indian exports. Spain accounts for a greater fraction of Indian exports than
Canada.

i.

ii.
Trade statistics for international business development

Monthly, quarterly and yearly trade data. Import & export values,
volumes, growth rates, market shares, etc.

List of importing markets for a product exported by India

Product: TOTAL All products

Unit : US Dollar thousand

123456789

Exported Exported Exported Exported Exported

Importers value in value in value in value in value in
2012 2013 2014 2015 2016

289,564,76 336,611,38 317,544,64 264,381,00 260,326,91

World
9 9 2 4 2

United
States of 37,170,686 41,956,732 42,684,740 40,312,703 41,992,468
America

United
Arab 35,781,394 33,980,431 32,919,602 29,989,560 30,041,758
Emirates

Hong Kong,
11,940,402 13,666,555 13,412,018 12,146,940 13,209,853
China
China 14,729,317 16,416,825 13,434,251 9,576,579 8,916,073

United
8,100,177 10,559,406 9,665,339 8,891,195 8,565,159
Kingdom

Singapore 13,552,711 14,189,022 9,676,616 7,805,084 7,354,855

Germany 7,133,757 8,081,320 7,745,249 7,023,455 7,178,091

Viet Nam 3,658,160 5,987,614 6,526,524 5,357,213 5,957,677

Bangladesh 4,936,672 5,993,950 6,255,235 5,521,518 5,668,793

Belgium 5,558,480 6,855,063 5,894,951 5,005,521 5,356,387

Saudi
8,546,654 12,357,201 13,063,511 6,970,707 5,045,149
Arabia

Netherland
9,466,429 9,170,038 6,762,223 4,876,540 4,868,488
s

France 5,020,327 5,597,194 5,093,449 4,819,482 4,867,883

Nepal 2,587,086 3,176,217 4,193,418 3,195,122 4,526,221

Turkey 3,672,082 4,555,538 5,603,062 4,435,912 4,473,283

Italy 4,294,288 5,617,486 5,445,669 4,228,521 4,464,177

Malaysia 3,791,196 5,496,821 4,642,233 4,892,061 4,188,651

Sri Lanka 3,813,120 4,753,967 6,434,957 5,501,015 4,118,254

Japan 6,415,550 7,325,476 5,756,879 4,529,718 3,827,283

Korea, 4,076,363 4,495,540 4,794,855 3,609,633 3,465,417

Republic of

Mexico 1,597,124 2,151,458 2,920,999 2,768,298 3,375,326

Spain 2,885,980 3,119,754 3,142,284 3,152,258 3,359,493

South
4,973,300 5,742,467 5,722,396 3,814,365 3,243,165
Africa

Indonesia 6,021,918 5,557,939 4,444,760 2,868,880 3,131,503

8. Major products of exports to the country from India

India is exporting many essential products to other countries and the foreign
markets are vibrant with Indian products. Some of the major items exported
from India are listed here by.

1) Leather Goods

Leather goods are one among the major export products of India. India has
become the front-runner in exporting leather goods and accessories to
different parts of the world. The main leather items include leather bags,
belts, leather pouches, handbags. The gift items like key rings, leather
journals and leather covered notebooks have a huge demand in foreign
countries. There are numerous small scale and large scale entities in India
which are constantly engaged in exporting leather goods to foreign countries.

2) Medical Appliances and Its Accessories

Indian made medical appliances are famous for quality and variety in
most of the foreign countries. Some of the common medical appliances
include absorbent gauze, sterile gloves surgical face masks, surgical caps
crepe bandages and other surgical disposables. Special medical
appliances such as baby incubators, air ionizers’ and digital imaging
 software are also having a good market in most of the foreign countries.
There are numerous companies in small scale and large scale which are
devoted in exporting medical appliances and accessories.

3) Frozen Meat
Different kinds of fish, shrimps, frozen meat, rice are other products that
have potential markets overseas. Export of prawns also earned good
revenue to the exchequer in a great way. India is abundant in different
varieties of fish like prawns. Processed meat and prawns are cheap when
compared to other countries and you can expect good revenue by
exporting these natural items.

4) Apparels
Indian T-shirts and vests also have a good market in foreign countries,
especially in the Middle East. Your profit margin will be high if you
export apparels to these countries.

5) Cement Products
Dubai imports capital goods, cement and food products from India. Most
common items from India include precious metals. These products have
good market in the entire Middle East and in countries like Pakistan,
Bangladesh, and Nepal

6) Aircraft and Automobile products

Recently aircraft sales have also shown a good increase. India
manufactures most of the automobiles with a piston engine, these and
other automobile spare parts also collect good amount of foreign money.

7) Handicrafts
In our villages, most people especially ladies earn a living making
handicraft items. They exhibit these products are famous metros. Foreign
tourists who are interested make bulk orders and the country gets chance
to export these items.

8) Agricultural Products
Organically produced agricultural products have good demand in almost
all foreign countries. Organic agricultural export market is also vibrant in
foreign countries. Major export market for Indian producers’ include
China, Australia, Canada, France, Germany, Italy, Sweden, Singapore
and Saudi Arabia

9) Electronic Goods
 Every country has set up special economic zones to enable manufacturing
and trading for export purposes. There are immense opportunities for
electronic good and the Indian hardware sector which always continues to
be dynamic as always. Both hardware and software are sectors have made
significant strides in the past two decades. The Indian IT industry has
made improvements in quality standards in products and services.
Foreign MNC’s can establish their manufacturing facilities in India and
thereby India can export services required for international IT giants.

10) Cereals and Pulses

Cereals such as rice, wheat, corn and barley are the fastest growing export
categories in recent times. India is earning good revenue by exporting
these items nowadays.

11) Pharmaceuticals and Miscellaneous Medicines

The export sales of pharmaceuticals and miscellaneous medicines have
also shot up recently. There are good markets for these items in the
neighbouring countries of India
.
12) Indian Machinery Goods
The Indian machinery goods also posted fantastic export sales in recent
years.
9. Major items of imports of India from the country

List of the largest trading partners of India

From Wikipedia, the free encyclopedia

According to the Ministry of Commerce and Industry, the fifteen largest

trading partners of India represent 59.37% of total trade by India in the
financial year 2015-2016.[1] These figures include trade in goods and
commodities, but do not include services or foreign direct investment.

The two largest goods traded by India are Mineral fuels (refined / unrefined)
and gold (finished gold ware / gold metal). In the year 2013-14, mineral fuels
(HS code 27) were the largest traded item with 181.383 billion US$ worth
imports and 64.685 billion US$ worth re-exports after refining. In the year
2013-14, gold and its finished items (HS code 71) were the second largest
traded items with 58.465 billion US$ worth imports and 41.692 billion US$
worth re-exports after value addition. These two goods are constituting 53%
total imports, 34% total exports and nearly 100% of total trade deficit (136
billion US$) of India in the financial year 2013-14.[2] The services trade (exports
and imports) are not part of commodities trade. The trade surplus in services
trade is US$ 73 billions in the year 2013-14.

Largest trading House

India's largest trade partners with their total trade (sum of imports and exports)
in billions of US dollars for the financial year 2014–15 were as follows:

Rank Country Exports Imports Total Trade Trade Balance

1 China 9.01 61.71 70.72 -52.70

2 United States 40.34 21.78 62.12 18.55

3 United Arab Emirates 30.29 19.45 49.74 10.84

4 Saudi Arabia 6.39 20.32 26.72 -13.93

5 Switzerland 0.98 19.30 20.28 -18.32

6 Germany 7.09 12.09 20.33 -5.25

Rank Country Exports Imports Total Trade Trade Balance

7 Hong Kong 12.09 6.05 19.17 8.03

8 Indonesia 2.82 13.13 19.05 -10.96

9 South Korea 3.52 13.05 18.13 -8.93

10 Malaysia 3.71 9.08 16.93 -5.30

11 Singapore 7.72 7.31 16.93 2.68

12 Nigeria 2.22 9.95 16.36 -11.00

13 Belgium 5.03 8.26 16.33 -5.29

14 Qatar 0.90 9.02 15.66 -13.55

15 Japan 4.66 9.85 15.52 -4.75

16 Iraq 1.00 10.84 15.08 -13.42

17 Kuwait 1.25 4.97 14.58 -12.18

18 United Kingdom 8.83 5.19 14.34 4.30

19 Iran 2.78 6.28 13.13 -4.78

20 Australia 3.26 8.90 13.03 -7.47

21 Venezuela 0.13 5.70 11.99 -11.47

22 South Africa 3.59 5.95 11.72 -3.40

- Remaining Countries 126.78 104.92 231.70 21.86

India's Total 262.29 381.01 758.30 -137.63

Countries of which India is the largest trading partner

India is the primary export or import partner of several countries. The

percentages on these tables are based on 2016 data as shown on the CIA World
Factbook.

Exports[5] Imports[6]

Region Percentage Region Percentage

95.7% Bhutan 91.1%

Bhutan
Nepal 70.1%
Guinea- 64.6%
Bissau Somalia 26.3%

56.6% Sri Lanka 21.7%

Nepal
Benin 14.9%
Nigeria 34.0%

Equatorial 19.4%
Guinea

Benin 14.3%

United
Arab 9.9%
Emirates

Import partners

India imports around 6000 commodities from 140 countries.[9] India imported
$390.7 billion worth of commodities in 2015, down by 15% from the previous
year.[10] The following table shows India's 11 largest sources of imports:

Rank Country Value (US$ billion) Share of overall imports

1 China 61.5 15.8%

2 Saudi Arabia 21.4 5.5%

3 Switzerland 21.1 5.4%

4 United States 20.5 5.2%

5 United Arab Emirates 20.3 5.2%

6 Indonesia 13.9 3.5%

7 South Korea 13.1 3.4%

8 Germany 11.8 3%

9 Iraq 11.3 2.9%

10 Nigeria 10.2 2.6%

11 Qatar 9.7 2.5%

10 Investment of the country to India

India: Foreign investment

A.FDI in Figures

Despite the slight increase in FDI inlux in 2016 compared to a year before,
India is not ranked anymore among the top 10 host economies for FDI,
according to the United Nations Conference on Trade and Development
(UNCTAD) 2017 World Investment Report. Inflows to India reached USD 44.4
billion in 2016 (as opposed to USD 44 billion in 2015). However, in terms of
greenfield investments, India continued to outrank both China and the U.S. as
the world’s top destination for capital investment in 2016, with USD 62.8
billion-worth of FDI projects announced, according to the same report.

The growth of FDI in India is thanks to its many assets, especially its high
degree of specialisation in services, with a skilled, English-speaking and
inexpensive labour force and a potential market of one billion inhabitants.
Investment into India fell due to the debt crisis in the Eurozone, corruption
scandals and political paralysis that had eroded investor trust. A number of
reforms have since been introduced, such as the opening of the single brand
retail sector to foreign investment. The country still ranks 130th out of 190
countries in the 2017 Doing Business report published by the World Bank. The
sectors attracting the greatest amounts of FDI in India include the services
sector, followed by IT services and software, the trading business, the
automobile industry and energy. The greatest FDI equity inflows come from
Mauritius, Singapore, Japan, the UK, the U.S. and the Netherlands, with the top
two (Singapore and Mauritius) jointly accounting for 50% of total FDI.

Foreign Direct Investment 2014 2015 2016

FDI Inward Flow (million USD) 34,582 44,064 44,486

FDI Stock (million USD) 253,120 282,609 318,502

Number of Greenfield Investments*** 713 723 847

FDI Inwards (in % of GFCF****) 5.6 7.2 7.0

FDI Stock (in % of GDP) 12.4 13.5 14.1

Source: UNCTAD, Latest available data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of

the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The
UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural
Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D,
Education, Country Risk. *** Green Field Investments Are a Form of Foreign
Direct Investment Where a Parent Company Starts a New Venture in a Foreign
Country By Constructing New Operational Facilities From the Ground Up.
**** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions
to Fixed Assets Purchased By Business, Government and Households Less
Disposals of Fixed Assets Sold Off or Scrapped.
FDI EQUITY INFLOWS BY COUNTRY AND INDUSTRY
Main Investing Countries 2016, in %

Mauritius 34.0

Singapore 16.0

Japan 8.0

United Kingdom 8.0

USA 6.0

The Netherlands 6.0

Germany 3.0

Cyprus 3.0

France 2.0

UAE 1.0

Main Invested Sectors 2016, in %

Service sector 18.0

Construction 8.0

Telecommunications 7.0

IT and software 7.0

Car industry 5.0

Drugs and pharmaceutical products 4.0

Trade 4.0

Chemical products (except for fertilisers) 4.0

Main Invested Sectors 2016, in %

Energy 4.0

Metallurgy 3.0

Source: Department of Industrial Policy and Promotion, Ministry of Commerce

and Industry - Latest available data.

Form of Company Preferred By Foreign Investors

Partnership or Private Limited.

Form of Establishment Preferred By Foreign Investors

Joint Venture company

Sources of Statistics

Investment Commission
Ministry of Finance
Department of Industrial Policy and Promotion
India Brand Equity Foundation

B. Why You Should Choose to Invest in India

Strong Points

India has a three-tiered democratic system that ensures a stable political

environment. It has a well-developed administration and an
independent judicial system, along with a vast geography, making the
country a repository of resources. There is an unparalleled pool of
educated, hard-working and skilled workers, which includes engineers,
management personnel, accountants and lawyers. India also hosts an
ever-growing consumer base, making it one of the world's largest
markets for manufactured goods and services. Moreover, India offers
proximity to key manufacturing sites, key suppliers and low
 development costs. These factors make it an effective base from which
multi-national companies can export to other high-growth emerging
markets. Finally, Transparency International gave Indian companies the
top ranking among emerging market multinationals in terms of
transparency and compliance.

Weak Points

India faces problems in relation to corruption (particularly at the federal

level) and political pressure, depending on the party in power both
regionally and nationally. FDI is restricted in certain sectors, and there is
a weakness of infrastructure along with inadequate security & safety in
certain areas. Labour regulations are among the world’s most stringent
and complex.

Government Measures to Motivate or Restrict FDI

The Government of India provides tax and non-tax investment incentives

in specific sectors (e.g. electronics) and regions (Northeast region,
Jammu & Kashmir, Himachal Pradesh and Uttarakhand). It has also
created incentives for manufacturing companies to set-up in Special
Economic Zones (SEZ), National Investment & Manufacturing Zones
(NIMZ) and Export Oriented Units (EOUs). In addition, each state
government has its own policy, providing additional investment
incentives, including subsidised land prices, attractive interest rates on
loans, reduced tariffs on electric power supply, tax concessions, etc. The
central government development banks and state industrial
development banks offer medium to long-term loans for new projects.

The Government has recently relaxed FDI policy in a variety of sectors

by such measures as raising the foreign investment limit, easing
conditions for investment and putting many sectors on the ‘automatic
route’ (as opposed to the ‘Government route’, which requires approval
from the Foreign Investment Promotion Board). The sectors that
benefited from the relaxation include real estate, private banking,
defence, civil aviation, single brand retail and news broadcasting.
Moreover, the Indian Cabinet recently cleared a proposal that would
allow foreign firms to invest in creating railway networks and supplying
 bullet trains (although foreign firms are still prohibited from operating
trains).

For more information, consult the website of Invest India, the official
Investment Promotion and Facilitation Agency of the Government of
India.

C. Protection of Foreign Investment

Bilateral investment conventions signed by India

India has bilateral investment treaties with the United Kingdom, France,
Germany, Canada, Malaysia, and Mauritius. UNCTAD has an updated list
of conventions signed by India.

International Controversies Registered By UNCTAD

Foreign investors frequently complain about a lack of "sanctity of

contracts." UNCTAD offers a database listing disagreements and the
countries involved.

Organizations Offering Their Assistance in Case of Disagreement

ICCWBO , International court of arbitration, International chamber of

commerce
ICSID , International Center for settlement of Investment Disputes
United States Council for international Business

Member of the Multilateral Investment Guarantee Agency

Yes.

Country Comparison For the Protection of Investors

India South Asia United States Germany

Index of Transaction Transparency* 7.0 5.0 7.0 5.0

Index of Manager’s Responsibility** 6.0 5.0 9.0 5.0

 India South Asia United States Germany

Index of Shareholders’ Power*** 10.0 6.0 4.0 8.0

Index of Investor Protection**** 7.3 5.3 6.5 6.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of
Transactions. **The Greater the Index, the More the Manager is Personally
Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders
to Take Legal Action. **** The Greater the Index, the Higher the Level of
Investor Protection.

D. Procedures Relative to Foreign Investment

Freedom of Establishment

Various approvals and clearances are required such as permission for

land use in case the factory is located outside an industrial area. An
environmental site approval might also be required along with
registration under State Sales Tax Act and Central and State Excise Acts
and consent under Water and Air Pollution Control Acts.

Acquisition of Holdings

Acquisitions by private arrangement are considered contractual

agreements between the parties and would take the form of share
acquisitions, asset transfers, or slump sale.

Obligation to Declare

Mergers and acquisitions are generally governed by the Companies Act,

1956 and the sector-specific law.
In the case of listed companies, provisions of Listing Agreements with
the stock exchange SEBI (Disclosure & Investor Protection Guidelines)-
2000, SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations- 1997 must be complied with. If a merger has cross-border
 aspects, the parties must comply with among others the foreign direct
investment policy of the Government - the Foreign Exchange
Management.

Competent Organisation For the Declaration

Department of Industrial Policy and Promotion

Requests For Specific Authorisations

Environment clearance from the Ministry of Environment and Forest for

investment of foreign capital in fields like petrochemicals complexes,
petroleum refineries, cement thermal power plants and bulk drugs is
required.

Learn more about Foreign Investment in India on Globaltrade.net, the Directory

for International Trade Service Providers.

E. Office Real Estate and Land Ownership

Possible Temporary Solutions

Offices, showrooms, warehouses, industrial premises. Visit the website

Offices Mumbai for further information.

The Possibility of Buying Land and Industrial and Commercial Buildings

Foreign companies can buy land and building space for business
purpose.

Risk of Expropriation

There have been few instances of direct expropriation since the 1970s
(Coca Cola in seventies and Dabhol Power).

F. Investment Aid

Forms of Aid
 Several measures and incentives, to attract investments into the
country: Tax holiday, tax concessions, and import of capital goods at
concessional customs duty, Special Economic Zones (SEZs), bilateral
investment protection agreements with investing countries; etc.

Privileged Domains

Power, ports, highways, electronics and software, scientific R&D,

manufacturing of energy-saving, environmental-protection and
pollution-control equipment.

Privileged Geographical Zones

Consult the list of the Special Economic Zones (SEZ) in India.

Free Zones

None

Organizations Which Finance

Industrial Development Bank of India (IDBI)

Industrial Investment Bank of India Limited (IIBI)
Power Finance Corporation Limited
Credit Guarantee Fund Trust for Small Industries (CGTSI)
Export-Import Bank of India
Indian Renewable Energy Development Agency Ltd.
Asian Development Bank
The World Bank
Multilateral Investment Guarantee Agency
International finance Corporation

G. Investment Opportunities

The Key Sectors of the National Economy

 India is the world's fourth agricultural power. Agriculture contributes
14% to the GDP and employs almost two-third of the active population.

India is the fourth largest producer of coal in the world. In the

manufacturing industry, textile plays a predominant role. Chemical
industry is the second largest industrial sector (12% of the GDP).

New technologies (software) sector is also expanding. The

telecommunication sector is also in full bloom.

High Potential Sectors

Airport & Ground Handling, Computer and Peripherals, Education

Services, Electric Power & Transmission Equipment, Food Processing,
Machine Tools, Medical Equipment, Mining & Mineral Processing
Equipment, Oil & Gas Field Machinery, Pollution Control Equipment,
Safety & Security, Telecommunications Equipment, Textile Machinery,
Water and Sustainable energies.

Privatization Programmes

India has been privatizing its large, mostly non-profitable public sector:
telecommunications, public infrastructure, airways, ports, etc.

The Department of Disinvestments looks after the disinvestment

privatization program in the country.

Tenders, Projects and Public Procurement

Tenders Info, Tenders in India

Asian Development Bank, Procurement Plans in Asia
DgMarket, Tenders Worldwide

H. Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors

Railways, power generation & distribution (though it is being slowly

privatized now), life and medical insurance (though it is also slowly
 opening up), manufacturing of arms, explosives, atomic energy and
aerospace.

Sectors in Decline

Agriculture.

I. Finding Assistance For Further Information

Investment Aid Agency

Foreign Investment Promotion Board (FIPB)

Foreign Investment Implementation Authority (FIIA)
Department of Industrial Policy & Promotion
India Brand Equity Foundation (IBEF)

Other Useful Resources

Investment Commission of India

Ministry of Finance
Ministry of Commerce
National Center for Trade Information

Doing Business Guides

11 India’s investment to selected country

About Indian Economy Growth Rate & Statistics

Last updated: Jan, 2018

Introduction

India has emerged as the fastest growing major economy in the world as per the
Central Statistics Organisation (CSO) and International Monetary Fund (IMF)
and it is expected to be one of the top three economic powers of the world over
the next 10-15 years, backed by its strong democracy and partnerships. India’s
GDP increased 7.1 per cent in 2016-17 and is expected to reach a growth rate of
7 per cent by September 2018
Market size

India's gross domestic product (GDP) grew by 6.3 per cent in July-September
2017 quarter as per the Central Statistics Organisation (CSO). Corporate
earnings in India are expected to grow by over 20 per cent in FY 2017-18
supported by normalisation of profits, especially in sectors like automobiles and
banks, according to Bloomberg consensus.

The tax collection figures between April-June 2017 Quarter show an increase in
Net Indirect taxes by 30.8 per cent and an increase in Net Direct Taxes by 24.79
per cent year-on-year, indicating a steady trend of healthy growth. The total
number of e-filed Income Tax Returns rose 21 per cent year-on-year to 42.1
million in 2016-17 (till 28.02.17), whereas the number of e-returns processed
during the same period stood at 43 million.

India has retained its position as the third largest startup base in the world with
over 4,750 technology startups, with about 1,400 new start-ups being founded in
2016, according to a report by NASSCOM.

India's labour force is expected to touch 160-170 million by 2020, based on rate
of population growth, increased labour force participation, and higher education
enrolment, among other factors, according to a study by ASSOCHAM and
Thought Arbitrage Research Institute.

India's foreign exchange reserves were US$ 404.92 billion in the week up to
December 22, 2017, according to data from the RBI.

Recent Developments

With the improvement in the economic scenario, there have been various
investments in various sectors of the economy. The M&A activity in India
increased 53.3 per cent to US$ 77.6 billion in 2017 while private equity (PE)
deals reached US$ 24.4 billion. Some of the important recent developments in
Indian economy are as follows:

Indian companies raised Rs 1.6 trillion (US$ 24.96 billion) through primary
market in 2017.

Moody’s upgraded India’s sovereign rating after 14 years to Baa2 with a stable
economic outlook.
India received net investments of US$ 17.412 million from FIIs between April-
October 2017.

The top 100 companies in India are leading in the world in terms of disclosing
their spending on corporate social responsibility (CSR), according to a 49-
country study by global consultancy giant, KPMG.

The bank recapitalisation plan by Government of India is expected to push

credit growth in the country to 15 per cent, according to a report by Ambit
Capital.

India has improved its ranking in the World Bank's Doing Business Report by
30 spots over its 2017 ranking and is ranked 100 among 190 countries in 2018
edition of the report.

India's ranking in the world has improved to 126 in terms of its per capita GDP,
based on purchasing power parity (PPP) as it increased to US$ 7,170 in 2017, as
per data from the International Monetary Fund (IMF).

The Government of India has saved US$ 10 billion in subsidies through direct
benefit transfers with the use of technology, Aadhaar and bank accounts, as per
a statement by Mr Narendra Modi, Prime Minister of India.

India is expected to have 100,000 startups by 2025, which will create

employment for 3.25 million people and US$ 500 billion in value, as per Mr T
V Mohan Das Pai, Chairman, Manipal Global Education.

The total projected expenditure of Union Budget 2018-19 is Rs 23.4 lakh crore
(US$ 371.81 billion), 9 per cent higher than previous year's budget, as laid out
in the Medium Term Expenditure Framework (MTEF).

India received the highest ever inflow of equity in the form of foreign direct
investments (FDI) worth US$ 43.4 billion in 2016-17 and has become one of
the most open global economies by ushering in liberalisation measures, as per
the mid-year economic survey of India.

The World Bank has stated that private investments in India is expected to grow
by 8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4
per cent, and thereby drive the growth in India's gross domestic product (GDP)
in FY 2018-19.

The Niti Aayog has predicted that rapid adoption of green mobility solutions
like public transport, electric vehicles and car-pooling could likely help India
save around Rs 3.9 trillion (US$ 60 billion) in 2030.
Indian impact investments may grow 25 per cent annually to US$ 40 billion
from US$ 4 billion by 2025, as per Mr Anil Sinha, Global Impact Investing
Network's (GIIN’s) advisor for South Asia.

The Union Cabinet, Government of India, has approved the Central Goods and
Services Tax (CGST), Integrated GST (IGST), Union Territory GST (UTGST),
and Compensation Bill.

Indian merchandise exports in dollar terms registered a growth of 30.55 per cent
year-on-year in November 2017 at US$ 26.19 billion, according to the data
from Ministry of Commerce & Industry

The Nikkei India manufacturing Purchasing Managers’ Index increased at the

fastest pace in December 2017 to reach 54.7, signaling a recovery in the
economy.

Government Initiatives

In the Union Budget 2017-18, the Finance Minister, Mr Arun Jaitley, verified
that the major push of the budget proposals is on growth stimulation, providing
relief to the middle class, providing affordable housing, curbing black money,
digitalisation of the economy, enhancing transparency in political funding and
simplifying the tax administration in the country.

India's unemployment rate has declined to 4.8 per cent in February 2017
compared to 9.5 per cent in August 2016, as a result of the Government's
increased focus towards rural jobs and the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) scheme.

The Government of Maharashtra has set a target to double farm income by 2022
through measures like large scale micro irrigation, water conservation,
expansion of formal cash credit coverage, crop insurance and agriculture
diversification, as per Mr Vidyasagar Rao, Governor of Maharashtra.

Numerous foreign companies are setting up their facilities in India on account

of various government initiatives like Make in India and Digital India. Mr.
Narendra Modi, Prime Minister of India, has launched the Make in India
initiative with an aim to boost the manufacturing sector of Indian economy, to
increase the purchasing power of an average Indian consumer, which would
further boost demand, and hence spur development, in addition to benefiting
investors. The Government of India, under the Make in India initiative, is trying
to give boost to the contribution made by the manufacturing sector and aims to
take it up to 25 per cent of the GDP from the current 17 per cent. Besides, the
Government has also come up with Digital India initiative, which focuses on
three core components: creation of digital infrastructure, delivering services
digitally and to increase the digital literacy.

Some of the recent initiatives and developments undertaken by the government

are listed below:

The Government of India has succeeded in providing road connectivity to 85

per cent of the 178,184 eligible rural habitations in the country under its
Pradhan Mantri Gram Sadak Yojana (PMGSY) since its launch in 2014.

A total of 15,183 villages have been electrified in India between April 2015-
November 2017 and complete electrification of all villages is expected by May
2018, according to Mr Raj Kumar Singh, Minister of State (IC) for Power and
New & Renewable Energy, Government of India.

The Government of India has decided to invest Rs 2.11 trillion (US$ 32.9
billion) to recapitalise public sector banks over the next two years and Rs 7
trillion (US$ 109.31billion) for construction of new roads and highways over
the next five years.

The mid-term review of India's Foreign Trade Policy (FTP) 2015-20 has been
released by Ministry of Commerce & Industry, Government of India, under
which annual incentives for labour intensive MSME sectors have been
increased by 2 per cent.

The India-Japan Act East Forum, under which India and Japan will work on
development projects in the North-East Region of India will be a milestone for
bilateral relations between the two countries, according to Mr Kenji Hiramatsu,
Ambassador of Japan to India.

The Government of India will spend around Rs 1 lakh crore (US$ 15.62 billion)
during FY 18-20 to build roads in the country under Pradhan Mantri Gram
Sadak Yojana (PMGSY).

The Government of India plans to facilitate partnerships between gram

panchayats, private companies and other social organisations, to push for rural
development under its 'Mission Antyodaya' and has already selected 50,000
panchayats across the country for the same.

The fiscal deficit of the Government of India, which was 4.5 per cent of the
gross domestic product (GDP) in 2013-14, has steadily reduced to 3.5 per cent
in 2016-17 and is expected to further decrease to 3.2 per cent of the GDP in
2017-18, according to the Reserve Bank of India (RBI).
The Government of India plans to implement a new scheme, named 'Sasti Bijli
Har Ghar Yojana' with an outlay of Rs 17,000 crore (US$ 2.64 billion), to
provide electricity to around 40 million un-electrified households in the country.

The Government of India and the Government of Portugal have signed 11

bilateral agreements in areas of outer space, double taxation, and nano
technology, among others, which will help in strengthening the economic ties
between the two countries.

India's revenue receipts are estimated to touch Rs 28-30 trillion (US$ 436- 467
billion) by 2019, owing to Government of India's measures to strengthen
infrastructure and reforms like demonetisation and Goods and Services Tax
(GST).

Road Ahead

India's gross domestic product (GDP) is expected to reach US$ 6 trillion by

FY27 and achieve upper-middle income status on the back of digitisation,
globalisation, favourable demographics, and reforms.

India is also focusing on renewable sources to generate energy. It is planning to

achieve 40 per cent of its energy from non-fossil sources by 2030 which is
currently 30 per cent and also have plans to increase its renewable energy
capacity from 57 GW to 175 GW by 2022.

India is expected to be the third largest consumer economy as its consumption

may triple to US$ 4 trillion by 2025, owing to shift in consumer behaviour and
expenditure pattern, according to a Boston Consulting Group (BCG) report; and
is estimated to surpass USA to become the second largest economy in terms of
purchasing power parity (PPP) by the year 2040, according to a report by
PricewaterhouseCoopers.

Exchange Rate Used: INR 1 = US$ 0.0156 as on December 29, 2017

12.Suggestions for increasing India’s exports and investment to the country

India’s exports contracted in recent months due to sluggish demand in western

markets. India’s exports declined for the eighth straight month by 10.3 per cent
in July to $23.13 billion, pushing the trade deficit to $12.81 billion. In July
2014, the merchandise exports was at $25.79 billion. Last time exports
registered a positive growth was in November 2014 when shipments expanded
at the rate of 7.27 per cent. To push export growth, exporters can take help of
the government schemes. Here are top export schemes of the Indian
Government.

1. Market Development Assistance Scheme

Description: Entrepreneurs get funding for participating in trade fairs. It assists

exporters for export promotion activities.

Nature of assistance: The scheme offers funding up to 90 per cent in respect of

to and fro air fare for the participation by MSME entrepreneurs in overseas
fairs/trade delegations. The scheme also provides funding for producing
publicity material (up to 25 per cent of costs) sector specific studies (up to Rs 2
lakh) and for contesting anti-dumping cases (50 per cent up to Rs 1 lakh).

Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of

Commerce

2. Export Oriented Unit (EOU) Scheme

Description: EOU Scheme provides an internationally competitive duty-free

environment coupled with better infrastructural facilities for export production.

Nature of assistance: The units are allowed to import or procure locally

without the payment of duty all types of goods including capital goods, raw
materials, components, packing materials, consumables, spares and various
other specified categories of equipment.

Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of

Commerce

3. Market Access Initiative (MAI) Scheme

Description: MAI Scheme is an Export Promotion Scheme, envisaged to act as

a catalyst to promote India’s exports on a sustained basis.

Nature of assistance: The scheme is formulated on focus productfocus country

approach to evolve specific market and specific product. These activities are
eligible for financial assistance - marketing projects abroad, capacity building,
support for statutory compliances, studies, project development, etc.
Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council

4. Software Technology Park (STP) Scheme

Description: STP Scheme is a 100 per cent export-oriented scheme for

undertaking software development for export using.

Nature of assistance: The approvals are given under single window clearance
mechanism. All imports of hardware and software in STP units are completely
duty free, and import of second-hand capital goods and re-export of capital
goods are also permitted.

Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of

Commerce

5. Services Exports from India Scheme (SEIS)

Description: The SEIS has been introduced to increase exports of notified

services.

Nature of assistance: The rewards under SEIS shall be admissible for exports
made/services rendered on or after the date of notification of this policy. The
duty credit scrips shall be granted as rewards under SEIS. The duty credit scrips
and goods imported/domestically procured against them shall be freely
transferable.

Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of

Commerce

6. The Merchandise Exports from India Scheme (MEIS)

Description: The MEIS has been introduced for the export of specific goods to
specified markets.

Nature of assistance: Rewards for the export of notified goods to notified

markets under MEIS shall be payable as percentage of realised FOB value.

Who can apply: Exporters, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of
Commerce

7. Export Promotional Capital Goods (EPCG) Scheme

Description: The objective of the EPCG Scheme is to facilitate import of

capital goods for producing quality goods and services to enhance India’s
export competitiveness.

Nature of assistance: EPCG Scheme allows import of capital goods for

preproduction, production and post-production at zero customs duty.

Who can apply: Importers, entrepreneurs, etc.

From where to apply: FIEO, Export Promotion Council and Ministry of

Commerce

SUBMITED BY:

VANKISH KHOSLA

PGDM(IB) –ROLL NO 60

2016-2018 BATCH

TRISEMESTER :VII

JIMS KALKAJI