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INDIA – A PREFERRED DESTINATION

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INDIA – A PREFERRED DESTINATION Powered By Docstoc
					India's unique and vast geography, endowed with diverse topography, has
made it one of the most attractive investment destinations in the world. It is the
world's largest democracy with stable policy environment, law and order as well
as responsive administrative set up. It has become a global resource for various
manufacturing and services industry.

The diverse economy of India encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries and a multitude of
services. With the largest area of arable land, India is one of the world’s biggest
food producers. It is the largest producer of milk, sugarcane and tea as well as
the second largest producer of rice, fruit and vegetables.

India's pool of technical manpower base with an increasing disposable income
and its burgeoning market have all combined to enable India emerge as a
viable partner to global industry. It is the preferred hotspot for organizations keen
to outsource their R & D activities, software development work, customer contact
centers or IT enabled business processes.
     INVESTMENT OPPORTUNITIES
• The top sectors attracting highest Foreign Direct Investment
  (FDI) inflows into the country are:- electrical equipments,
  services     sector    (financial  and      non      financial),
  telecommunications, transportation industry, fuels, chemicals,
  construction activities, drugs and pharmaceuticals, food
  processing, cement and gypsum products. Huge investment
  potential exists in the upcoming Knowledge Process
  Outsourcing (KPO) sector and the real estate industry.

• India is poised to become a large commercial and defence
  aircraft market. With rising passenger traffic and increasing
  military and defence expenditures, the demand for aircrafts is
  expected to increase. Boeing expects a demand of between
  900 to 1,000 commercial aircraft worth USD100 billion
  approximately in the next 20 years. This also suggests that a
  significant portion of business opportunity could accrue to
  India, due to the associated offsets.
          INVESTMENT OPPORTUNITIES
•   The competitive advantages that Indian agriculture processes are (a)
    Favourable agro-climatic zones (b) Large irrigated lands (c) Gap between
    present productivity and potential productivity and (d) Availability of skilled,
    educated, technical and scientific manpower.

•   Total food production of India is estimated to double in the next ten years.
    Hence there is an opportunity for large investments in food and food processing
    technologies, skills and equipment. The major interventions in this context are,
    for example, Canning, Dairy and Food Processing, Specialty Processing,
    Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits and
    Vegetables, Fisheries, Milk and Milk Products, Meat and Poultry, Packaged /
    Convenience Foods, Alcoholic Beverages and Soft Drinks and Grains. Health
    food and health food supplements are other rapidly rising segments of this
    industry. The Food Processing Industry sector in India has been accorded high
    priority by the Government of India, with a number of fiscal relief and
    incentives, to encourage commercialisation and value addition.

•   Biotechnology has vast potential to grow in India. Indian biotech sector stands
    3rd in the Asia pacific region in terms of number of companies, about 40% of
    these are in Biopharma segment and the rest are in Agri Biotech, Bioinformatics,
    industrial Biotechnology and Bioservices. These companies provide high-level
    services in the drug discovery, validation, genomics, proteomics and other
    allied areas.
        INVESTMENT OPPORTUNITIES
•   India is also emerging as the world's largest trading centre for
    gold targeting US$ 17 billion by 2011. The industry has the best
    skilled manpower for designing and producing high volumes of
    exquisite jewellery at low labour costs. India is the largest
    diamond cutting and polishing centre in the world—the industry
    enjoys 60 per cent value share, 82 per cent carat share and 95
    per cent share of the world market in terms of number of pieces.
    In other words, nearly 9 out of 10 diamonds sold worldwide are
    cut and polished in India.

•   India Textile Industry is one of the largest textile industries in the
    world. Today, Indian economy is largely dependent on textile
    manufacturing and exports. India earns around 27% of the foreign
    exchange from exports of textiles. Further, India Textile Industry
    contributes about 14% of the total industrial production of India.
    The Indian Textile Industry contributes approximately 12 percent
    to industrial production, 15 per cent to the manufacturing sector,
    4 percent to the GDP and 12 per cent to the country's total
    export earnings.
         INVESTMENT OPPORTUNITIES
•   The services sector has come to play an increasingly dominant role in the
    economy accounting for 59.6 per cent of the overall average growth in GDP
    in the last eight years between 2000-01 and 2007-08.

•   Travel and tourism industry is the second highest foreign exchange earner for
    India.

•   Key drivers for Indian Healthcare sector are: Medical Value Travel or Medical
    Tourism World class treatment and benefits at a fraction of the Cost (almost
    1/10th) with no waiting time for surgeries as compared to advanced nations
    like UK and US where waiting period is substantially longer.

•   India is considered as a pioneer in software development and a favorite
    destination for IT-enabled services. Today, Indian IT companies such as Tata
    Consultancy Services (TCS), Wipro, Infosys, HCL are some of the renowned
    names in the global market for their IT prowess. Global giants like IBM,
    Motorola, Microsoft, General Electric and many others are using the successful
    outsourcing strategy and keeping ahead of their rivals - thanks to the
    competitive advantage gained by investing in India. With only a fraction of
    the US$ 300 billion market potential addressed so far, a significant space for
    growth is available.

•   India is referred to as the back office of the world owing mainly to the
    Information Technology-enabled Services (ITeS) sector.
        INVESTMENT OPPORTUNITIES
•   Manufacturing sector contributes about 15% of India’s GDP and 50%
    to the country’s exports. Micro, small and medium enterprises
    (MSMEs) both in manufacturing and service enterprises account for
    nearly 45 % of India’s manufacturing output.

•   The development of adequate infrastructure has been identified as
    the most critical prerequisite for sustaining the current growth
    momentum of the economy and to ensure inclusiveness of the
    growth process.

•   India’s government has set in place policies and special economic
    zones to promote investment in its industrial sector, and several key
    domestic companies have unveiled ambitious expansion plans for
    the next few years.

•   The annual sales of the capital goods industry was about Rs.110,000
    crores during 2008-09 though the market is more than Rs 300,000
    crores.

•   India is now a supplier of a range of high-value and critical
    automobile components to global auto makers such as General
    Motors, Toyota, Ford and Volkswagen amongst others.
          COMPOSITION OF TRADE

          Commodity      %Share

AGRI & ALLIED PRDTS       9.30
MARINE PRODUCTS           0.95
ORES & MINERALS           4.27
LEATHER & MNFRS           2.09
GEMS & JEWELLERY          11.55
SPORTS GOODS              0.09
CHEMICALS & PRDTS         13.98
       COMPOSITION OF TRADE

      Commodity        %Share
ENGINEERING GOODS       23.15
ELECTRONIC GOODS         2.61
TEXTILES                10.46
HANDICRAFTS &CARPETS     0.64
PETROLEUM PRODUCTS      18.27
UNCLASSIFIED EXPORTS     2.16
        INDIA HOLDS THE FUTURE
•   Domestic manufacturing becoming competitive
•   Interest Rates Moving southward
•   Manufacturing meeting international standards
•   Huge investment in R&D
•   Infrastructure development to cut logistic cost
•   Strategic access to markets



                          AS
                ABOUT FIEO
• Apex body of all export promotion organizations
  in Indian
• ISO 9001:2000 certified organisation
• Represents directly and indirectly 1,00,000
  exporters from India covering 60% of India’s
  exports
• Pan India presence having offices at New Delhi,
  Kolkata, Mumbai, Chennai, Bhubaneshwar,
  Bangalore, Hyderabad, Kanpur, Shilong and
  Ahmedabad
            ABOUT FIEO (Contd.)
• Promoting Exports
  – Provides e-platform to Buyers/ Sellers through huge network
    of members & non-members
  – Organises exchange of business delegations
  – Organises Made in India Show, Trade Fairs and exhibitions
    across the globe, particularly in untapped countries.
  – Empowers new entrepreneurs, particularly from micro, mini
    and small and medium enterprises with various facets of
    international trade.
  – Conducts Market Surveys Data Analysis and Dissemination of
    Information
       FIEO Marketing platform
• Please visit FIEO website - http://www.fieo.org
• Type the name of the product/service you
  want to source from the exporters and click on
  the "Search" button on the right hand side of
  the home page available in the section titled
  "Search, Select & Send Business Queries to
  Indian Exporters".
• List of exporters dealing in the desired product
  / service gets listed.

                        AS
    FIEO Marketing platform(Contd)

• Select the companies whom you would like to
  send your business query and click on "Submit"
  button.
• Then type in the particulars of the co. desiring to
  source products/services and the business query
  the co. would like to forward to the exporters.
  Thereafter click on "Submit" button.
• The business query will get forwarded to the
  selected exporting companies.
                         AS