India:

A Partner in the South

 INDIA : A Profile
 Population: 1,147,995,898 (July 2008 est.)
 GDP : $2.989 trillion (2007 est.)
 GDP per capita: $2,700 (2007 est.)
 GDP Growth rate:
5-6 % since 1980
8.2 %(2003)
8.5% (2004)
8.6% (2005-2006)
9.6% (2006-2007)

 A demographic fact:
Majority i.e. 550 million plus, under 25 years of age

Source: www.cia.org
 INDIA : A Profile
 Current Account balance: Positive since 2004
 Low Inflation: 6.4% (2007 est.)
 Foreign Exchange Reserves: $275 billion (31 December
2007 est.)
 Gross average savings rate: 29.1%

 Gross average investment rate: 34.6% of GDP (2007 est.)

 External Debt $148.1 billion (31

December 2007)

 External Debt, GDP ratio: 1992 – 39%

2003 – 20%
2005 – 16%
 Indian Trade – Globally
In US $ Billion

1990-91 2003-04 2004-05 2005-06 2006-07

 Exports 18.1 63.8 83.5 102.7 150.8

 Imports 24.1 78.1 111.5 142.4 230.2

 Total 42.2 141.9 195 245.1 381.1

Source: www.cia.gov
 India-Venezuela Trade
(Million US$)
2003 2004 2005 2006 2007

Venezuelan
165.546
imports from 26.018 50.961 98.275 130.967
India

Venezuelan
non-oil
exports to
4.370 9.755 34.651 67.201 79.585
India

Venezuelan
oil exports to -- -- -- 535.514 459.000
India

COMERCIO
TOTAL
30.388 60.716 132.926 733.682 704.131

Source: National Statistics Institute (INE)

 Composition of India’s Trade
EXPORTS
 Manufacture: 78 %
• Textiles
• Gems & Jewellery
• Leather Products
• Pharmaceuticals
• Chemicals
• Machinery
• Iron & Steel
• Auto-parts

 Primary sectors: 14-15%

 India’s Region-wise Exports
(Values in US$ Million)
Region 2003- % 2004-2005 % 2005-2006 % share
2004 share share
EU Countries 14,443 22.62 7,882 21.89
Other WE Countries 1,106 1.73 622 1.72
North America 12,253 19.19 6,933 19.26
East Europe 116 0.18 67 0.18
East Asia 703 1.10 386 1.07
ASEAN 5,821 9.11 3,592 9.98
WANA 10,185 15.95 6,138 17.05
NE Asia 9,387 14.70 4,904 13.62
South Asia 4,293 6.72 2,061 5.72
Latin America 1,138 1.78 916 2.54 1422.36
CARs countries 151 0.23 87 0.24
Other CIS countries 884 1.38 425 1.18
Southern Africa 791 1.23 590 1.64
West Africa 1,273 1.99 625 1.73
Central Africa 150 0.23 80 0.22
East Africa 860 1.34 474 1.31
Unspecified 279 0.43 205 0.56
Total Exports 63,842 35,995 101,000
 Composition of India’s Trade
IMPORTS
 Major Imports:

• Petroleum, Oil & Lubricants: 25-30 %

• Edible oils
• Electronic goods
• Intermediates
• Chemicals
• Capital goods
 India’s Region-wise Imports
(Values in US$ Million)
Region 2003- % 2004-2005 % 2005-2006 % share
2004 share (Apr-Sep) share

EU Countries 14,991 19.18 8,008 16.64

Other WE Countries 3,698 4.73 2,479 5.15
North America 5,760 7.37 3,038 6.31
East Europe 96 0.12 95 0.19
East Asia 2,751 3.52 1,682 3.49
ASEAN 7,433 9.51 4,085 8.49
WANA 4,926 6.30 3,618 7.51
NE Asia 11,815 15.11 6,954 14.45

Latin America 1,192 1.52 844 1.75 1114.72

South Asia 709 0.90 396 0.82
CARs countries 50 0.06 26 0.05
Other CIS countries 1,210 1.54 829 1.72
Southern Africa 1,959 2.50 861 1.79
West Africa 580 0.74 481 1.00
Central Africa 10 0.01 7 0.01
East Africa 184 0.23 63 0.13
Unspecified 20,776 26.58 14,650 30.44
Total Exports 78,149 48,125 140,000
 External Assistance
(Million US$)
Repayment of
Receipts Payment of Interest
Principal
2005-06 2006-07 2005-06 2006-07 2005-06 2006-07

External Assistance-
223.1 315.9 144.5 212.6 59.4 69.9
Govt. Account
External Assistance-
13.9 5.3 14.5 9.2 5.3 4.9
Non-Govt Account

TOTAL 237 321.2 129 221.8 64.7 74.8

•Develloped banking system with 295 commercial banks and 66.000

branch offices
•NPAs under 10%
•Foreign private banks
•Ceiling on equity of 74%
•Opening 12 new branch offices every year
 Taxes and Customs (2006)

 Corporate Tax Slab 30%

 Individual income up to Rs.100,000/- (US$

2.222.-) exempt from Income Tax.

 Double Taxation Avoidance Treaties with most

major economies.

 Customs Duty on Crude Oil is 5%

 Capital Market
 23 Stock Exchanges
 9000 Listed Companies
 FII * for 2005-2006: US$ 6 Billion
 FDI **: 2004 US$: 5.5 Billion / 2005: US$ 6.6 Billion
 FDI up to 100% automatic approval in infrastructure
projects (2005)

*Foreign Institutional Investments

** Foreign Direct Investment

Source: UNCTAD
 Agriculture
 Tea, Milk, Butter, Sugar, Jute

- World’s largest producer

 Rice, Wheat, Silk

- World’s second largest producer

 Fruits & Vegetables

- 100 Million Tons

 Food grains production

- Over 209 Million Tons

 Infra-structure
 Second largest road network in the world - 3.5 million kms.

 64,000 route kms of railways carrying over 500 million tones of

freight and over 500 billion passengers annually.

 12 major, 184 minor seaports and 9 shipyards.

 2 national airlines and 5 private airlines.

 ‘Open Skies’ policy.

 5th largest telecom network in the world – 20% growth annually.

 8th largest steel producing country in the world

 More than 2500 engineering firms with ISO:9000 accreditation.

 Energy Sector
 In hydrocarbons, India is strong in the areas of prospecting, exploration,
production and refining.

 Public and private sector Indian companies in the hydrocarbon sector have the
capacity to undertake actual commercial activities, such as production, refining
and setting up down stream industries.

 India could offer turnkey projects, operation and maintenance of power plants,
thermal generation and transmission, feasibility and pre-feasibility studies,
engineering services, contract management, procurement services, project
management and site supervision.

 Indian oil companies have huge investments in exploration and exploitation

activities in Vietnam, Russia, Sudan, Angola, Ivory Coast and plans to venture
into Iran, Libya, Venezuela and other countries.

 Power sector reforms began in 1991 and culminated in the Electricity Act,
notified on June 2nd, 2003.
 Private sector participation permitted in all areas of power sector.
 131.400 MW additional capacity, envisaging US $ 128 Billion in generation,
transmission and distribution.
 Feasibility reports on 50.000 MW of Hydel Power under preparation.
 5300 Mw installed capacity of wind energy among other sources of alternative
energy
 Other opportunities include renovation & modernization projects.
 Science and Technology
 India has the third largest scientific and technical manpower in the
world.
 162 universities award 4000 doctorates and 35,000 post-graduate
degrees
 Council of Scientific and Industrial Research runs 38 research
laboratories and 50 outreach centres.
 More than 100 MNCs have set up R&D centers in India with a total
investment of US$ 1 billion.
 In the past four decades, an infrastructure and capability has been
created.
 A range of industries from small to the most sophisticated has
been established covering a wide range of utilities, services and
goods.
 There is a reservoir of expertise well acquainted with the most
modern advances in basic and applied areas that is equipped to
make choices between available technologies.
 Information Technology (IT)
 A separate Ministry of IT since Oct. 1999 underscores Government support and
commitment.
 IT Act 2000 provides a legal framework for electronic contracts, signatures, cyber
crime, etc. for facilitating conduct of business in cyber space.
 100% foreign equity permitted in software and electronics (except aerospace and
defense).
 Export oriented FDI welcomed in Software Technology Parks, Electronic Hardware
Parks.
 Tax holiday up to 2010 for units in STPs.
 A phenomenal growth story: from US $ 1.7 billion in 1993-94 to US $ 29.5 billion in
2005-06; a CAGR of 33%.
 IT exports reached US$23 billion mark in 2003-2004
 Target of US$50 billion for IT and ITES exports and US$10 billion of hardware
exports by 2008.
 Hardware industry employs over 1,300,000 people IN 2006
 India will be the third largest market for semi-conductor industry by 2050.
 India is already leading in digital design, and is very strong in VLSI design.
 220 Fortune 500 Companies are clients of Indian IT Companies, including GE, Intel,
Microsoft, Dell, Sun Micro, Oracle, Ford, American Express and others.
 Pharmaceuticals
 US$ 10 billion Indian pharmaceutical industry for the period
2005/06 has grown to rank FOURTH in the world in terms of
volume.

 By 2010, the Indian pharma industry is likely to grow to US$25

billion.

 Pharma exports reached US$ 4 Billion in 2004/05 and is expected

to grow to US$ 7 Billion by 2007/08

 It is 40% cheaper to set up a plant in India than any developed

country and the cost of bulk drug production is 60 to 70%
cheaper.

 More than 5000 scientists work on application of biotechnology in

broad areas of agriculture, health care, animal sciences,
environment and industry.
 Nuclear Energy & Technology
 The Indian atomic energy programme envisages building
of pressurized heavy water reactors, fast breeder
reactors, and thorium-based reactors on commercial
scale.

 Research & development in the field of Fast Breeder

Reactor (FBR).

 At the end of 2002, the total generation of nuclear

power plants stood at 185,640 million units. Installed
capacity of almost 4000 MW (2005)

 Technology development relating to operation and

maintenance of reactors, waste management, safety and
environment monitoring.
 Space
 Agreements with 50 countries on collaboration.

 Department of Space has established linkages with more

than 500 industries in small, medium and large scale
sectors, either through procurement of contracts, know-
how transfers or provision of technical consultancy.

 India has large constellation of Remote Sensing Satellites –

satellite image mapping; meteorology, telecommunications,
etc.

 India has a robust launch vehicle programme and can offer

launch services to other countries.
 Media
 Television
 112 Million homes have television of which 64 Million are
color TV.
 Cable and satellite services in 68 million homes.

 Print Media
 222 Million people read newspapers and magazines every
day.
 The 2 largest Hindi language newspapers have a readership of
over 21 million.
 The largest English newspaper (times of India) has over 7,4
Million readers.

 Cinema
 Film industry generates over US $ 2,8 Billion.
 Over 1000 full length films produced every year.

 Radio: Reaches 27% of the population

 Internet: 12,6 Million people have access to Internet
 India’s Foreign Policy
 Equitable international economic order
 Active member of NAM, Group of 77 and G-15 nations.
 Strengthening of regional cooperation as a member of the South Asian Association
for Regional Cooperation (SAARC), established in December 1985.
 Sectoral Dialogue Partner of ASEAN in 1992 and full dialogue partner and member of
ARF (ASEAN Regional Forum) in 1996, India became a Summit Partner in 2002.
 India and ASEAN signed a Framework Agreement on Comprehensive Economic
Cooperation in October 2003.

 12th Dialogue Partner of the Pacific Islands Forum (PIF) during the Suva Summit in
August 2002.
 Central Asian Countries – India’s Silk Route Initiative.
 India and the Gulf region – sizeable Indian community; one of the main sources for
India’s energy imports and amongst our most important trade, investment and joint
venture partners.
 Relations with 14 countries of West Asia & North Africa (WANA) – upgraded trade
and economic relations, - investments in upstream and hydrocarbon sectors in Sudan
and Libya.
 Annual strategic summit meetings with European Union.
 Focus LAC Programme since 1997. Bilateral visits and agreements.
 Has Preferential Tariff Agreement with Mercosur
 United Nations
 India is a founder member of the United Nations.
 India seeks to promote multi-polarity in world
relations.
 India currently participates in several UN peace
missions.
 India’s candidature for Membership of the UN
Security Council.
 India is a member of the Council for Human
Rights, the Disarmament Commission and the
AEIE (Atomic Energy International Agency)
 Indian Diaspora
 Separate Ministry of the Non-Resident Indian
(NRI) Affairs.

 Main NRI communities in Sri Lanka, Malaysia,

Mauritius, South Africa, Persian Gulf, Caribbean
and Fiji.

 Revised OCI Card Scheme was implemented from

December 2005.

 The Pravasi Bharatiya Divas (PBD) first organized

by Government of India in Delhi in January 2003,
is an annual event.
 Economic Diplomacy
 Promotion of South-South cooperation.
 Indian Technical & Economic Cooperation (ITEC) programme,
established in 1964, reaches out to other developing
countries in sharing our developmental experience.
 ITEC programme extends to 155 countries in Asia, East
Europe, Africa and Latin America.
 Nearly 3000 candidates in Indian institutions each year.
 Experts, equipment & machinery to foreign countries of the
South to meet their developmental needs.
 Foreign Aid in Grants and Loans to several developing
countries. 10 scholarships granted to Venezuelan nationals in
2005 and 15 more are available for 2006
Thank you