Post on 10-Apr-2018
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The India Advantage
after theComprehensive Economic
Partnership Agreement
At KCCI
12 March 2010
H.E. Mr. Skand R. Tayal
Ambassador of India
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President Lee Myung-baks State Visitto India on 24-27 January 2010.
Strategic Partnership. Comprehensive Economic
Partnership Agreement.
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India - FactsArea3.3 million sq. km.
Population1.1 billion
GDP (PPP)$5.16 trillion (2008 est.)
$1.3 trillion (nominal)
{11th (nominal); 3rd (PPP)}
GDP growth6.7% (2009)
7.8% (2010) projected
GDP per capita$1021 (nominal); $4543 (PPP)GDP by sectorAgriculture: 19.9%
Industry: 19.3%
Services: 60.7% (2006 est.)
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The Growth Story
India GDP 2007-08:US $ 1.16 trillion
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Indias Decadal GDP
Growth rate
Source: Handbook of Statistics on Indian Economy, Reserve Bank of India
3.683.29 3.45
5.17
6.05
7.89
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
1950-51 to
1959-60
1960-61 to
1969-70
1970-71 to
1979-80
1980-81 to
1989-90
1990-91 to
1999-00
2000-01 to
2008-09
% GDP Growt
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INDIAN ECONOMYINDIAN ECONOMY
Source : Hindu Business Line, February 13th, 2010
39% jump in capital goods augurs well for investments; GDP growth likely to top 7.2%.
INDUSTRY ROLLS AT 16.8 PER CENT IN DECEMBER 2009
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Macro-economic stability
Forex Reserves (USD bn)
5.8 6.4
20 2232
42
75
141
192
303
0
50
100
150
200
250
FY91
FY92
FY93
FY94
FY95
FY96
FY97
FY
98
FY
99
FY
00
FY
01
FY
02
FY
03
FY
04
FY
05
FY
06
FY
07
FY08(March708
Steady increase
in forex
reserves now
standing at
$ 290 Billion.
13.7
4.45.4
0
2
4
6
8
10
12
14
16
FY91
FY92
FY93
FY94
FY95
FY96
FY97
FY
98
FY
99
FY
00
FY
01
FY
02
FY
03
FY
04
FY
05
FY
06
FY
07
Moderate
inflation
over last few
years
Trends in Inflation- WPI (%YoY)
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Source: Reserve Bank of India
Trend in Peak Custom Duty
ASEAN levels committed to be reached by 2010
(%)
150
110
85
65
5045
4035
30
2012.5 10
0
20
40
60
80
100
120
140
160
FY91
FY92
FY93
FY94
FY95
FY96
FY97
FY
98
FY
99
FY
00
FY
01
FY
02
FY
03
FY
04
FY
05
FY
06
FY
07
Source: FICCI conference, March 14 15 th 2007
Trade liberalization reduction in tariffs
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Increasing FDI trnd
Source: RBI, DIPP
Source: Reserve Bank of India
Svgs & Cap Formation % of GDP ( Current prices)
23.1
26.3
33.8
32.4
0
5
1015
20
25
30
35
40
Goss domestic savingsGross domestic capital formati
FY
91
FY92
FY93
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
In c r e a s in g F D I I
05
1 01 52 02 5
3 0
2 0 0 0 -
0 1
2 0 0 1 -
0 2
2 0 0 2 -
0 3
2 0 0 3 -
0 4
2 0 0 4 -
0 5
2 0 0 5 -
0 6
2 0 0 6 -
0 7
2 0 0 7 -
0 8
2 0 0 8 -
0 9 (t i l l
J a n )
Y e a r
ActualInflowinUS$Bn
Economy high growth ratesleading to increasing FDI
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INDIAN ECONOMYINDIAN ECONOMY
Source : Financial Express, January 17th, 2010
INDIA INC INVESTMENTS RISE BY MORE THAN 50 PER CENT IN 2009
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INDIAN ECONOMYINDIAN ECONOMY
INDIA TO BE USD2 TRILLION ECONOMY BY 2015
As per a report by Enam Securities titled 'India Strategy, India will be a USD2trillion economy in the next five years as its GDP growth is likely to average at 12per cent in nominal terms, powered by a huge consumption demand.
This growth will be led by the huge consumption demand in sectors like FMCG,power, auto (small car hub), IT and pharma.
Insurance companies, financial services and equity markets will flourish as thecountry's annual savings pool grows to USD700 billion from USD400 billion atpresent.
"More than half of this (USD700 billion) could flow into financial savings.
With favourable demographics and average seven per cent real growth, India cansustain more than 30 per cent savings rate akin to the Asian tigers, or China andJapan.
Source : Business Standard, November 16th, 2009
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Drivers of the India Growth Story
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Indias Integration with EastAsia..
India is active participant in the ongoing Asian
economic regionalism. It is the second nation,after Singapore, in Asian region,having/negotiating/proposed maximum number ofFTAs.
Till date, the total number of Indias FTA (bothproposed and concluded) is 32. Out of this , 19
are with the Asian countries. Already concluded FTAs with East Asiancountries:
India-Korea CEPA
India-ASEAN FTA
India-Singapore CECA
India-Thailand FTA
Proposed/under consultation/under negotiation
India-Japan
India-Australia
India-New Zealand
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Why India?
India to be the 5th
largest consumer market by 2025 India is worlds largest functional democracy with apopulation of over One Billion people
India second fastest growing major economy after China. Full National Treatment for Foreign Companies
Incorporated in India
Profits & Dividends can be Freely Repatriated Stable & Well Developed Banking System
India has followed a calibrated globalization process liberalization of FDI regime
reduction in import tariff fully convertible current account moving towards fuller capital account convertibility compliance with WTO norms
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Position India China Relative Difference (%)
HR manager 15,100 32,000 112 %
Marketing manager 14,300 25,800 80%
Project manager 10,000 23,400 134%
Software developer 10,300 13,400 30%
Financial analyst 8,400 13,200 57%
Accountant 5,700 9,000 58%
Sales representative 4,700 5,100 8%Production worker 1,900 2,300 21%
Average annual pay for various jobs in India &China (US$)
Source : FICCI Compilation
Indias labour costs as a percentage of value added
are one of the lowest among Asian countries
Indias CostCompetitiveness
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690000
530000
350000
420000
470000
300000
350000
400000
450000
500000
550000
600000
650000
700000
750000
India China J apan USA European
community
Source Morgan Stanley
Annual additions to the stock of science andengineering graduates
Large Intellectual Capital base
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Untapped Market PotentialFigures for Penetration rate
(per 1000 people)
Market size
(Annual sales in Mn)
Passengercars
10 1.1
Motorcycles 39 5.8
Cellularsubscribers
500 100
Internetsubscribers
6 1.1
Televisions 104 12
While the absolute size of the market is large, penetration rates are still low vastuntapped potential
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Power
Energy shortage at 7.7% / Peak shortage of 12.3%
Ongoing projects: 52000 MW: Investment US$ 60 bn
Private Ultra Mega Power Projects (4000 MW / USD 4 bn each) thr
Competitive Bids
Roads
Annual growth 12 -15% in passenger traffic and 15 -18% for cargo
Investment Opportunities US $ 30 billion till 2012
Ports
960 million tonnes of traffic by 2013-2014
7.7 % p.a. growth expected in cargo handling till 2013-2014
Investment opportunities: US $ 20 bn till 2012
Infrastructure Opportunities: Power / Roads / PortsInfrastructure: US$ 510 bn in investments planned in next five years
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INDIAN POWER INDUSTRYINDIAN POWER INDUSTRYULTRA MEGA POWER PROJECTS IN PROGRESS
UMPP Developer Fuel linkage EPC contract Scheduled date of commissioning
Mundra, Gujarat Tata Power Company Two coal mines of Indonesia's BumiResources, in which TPC has acquired26 per cent stake
Awarded - Doosan HeavyIndustries, ToshibaCorporation
Two units by 2012
Sasan, MadhyaPradesh
Reliance Power Limited Moher, Moher-Amlohri extension andChattrasal coal blocks at Singraulicoalfields. The Chattrasal block is underdevelopment
Awarded - RelianceInfrastructure Limited
Two units by December2011, all six units byApril 2013
Krishnapatnam, AndhraPradesh
Reliance Power Limited Three Indonesian coal mines Talks on with DoosanHeavy Industries, Toshibaand Larsen & Toubro
September 2013 -October 2015
Tilaiya, Jharkhand Reliance Power Limited Kirandhari B and C coal blocks, NorthKaranpura
Talks on with RelianceInfrastructure Limited
By 2015
EPC : Engineeering, procurement and construction
UPCOMING ULTRA MEGA POWER PROJECTSProject State Current status
Kudgi Karnataka Ministry of Power's approval received
Munge Maharashtra Project site finalised
Cheyyur Tamil Nadu Project site finalised
Bedabaha Orissa Land acquisition in process, coal blocks alloted
Source : POWERLINE, February 2009
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INDIAN POWER INDUSTRYINDIAN POWER INDUSTRY
NUCLEAR POWER SECTOR
Source : Indian Infrastructure, September 2009
India has a flourishing and largely indigenous nuclear power programme and expects tohave 20,000 MWe nuclear capacity on line by 2020.
Nuclear Power Corporation of India Limited (NPCIL) has a monopoly in the Indiannuclear power market.
At present India has a nuclear capacity of 4,120 mw from 17 nuclear reactors.
Prime Minister, Dr. Manmohan Singh has referred to the target to provide 20 GWe by2020, as "modest" and capable of being "doubled with the opening up of internationalcooperation."
More recently on 30th September,2009, Dr. Manmohan Singh indicated that usingIndias unique three stage programme, our nuclear industry could potentially yield4,70,000 MW of power by 2050.
In India, we see nuclear energy as a vital component of our energymix Our nuclear industry is poised for a major expansion, and there will behuge opportunities for the global nuclear industry to participate in (this)expansion If we can manage our (nuclear) programme well, our three-stage strategy could yield potentially 4,70,000 MW of power by 2050
Prime Minister, Dr. Manmohan Singh, 30th September 2009
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PORTS IN INDIAPORTS IN INDIA
Consultancy Technical Engineering
Financial
Operatorship
Construction
Dredging Ancillary Services
Towage
Pilotage
Supply of Equipment
Port Connectivity Rail
Road
Water
Warehousing and Distribution
Ship Yards
INVESTMENT OPPORTUNITIES IN THE PORT SECTOR
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ROADS IN INDIA
100 per cent foreign direct investment (FDI) allowed under the automatic route in allroad development projects.
With incentives like 100 per cent income tax exemption for a period of 10 years, theNHAI provides grants/viability gap funding for marginal projects, and formulation of
model concession agreements among others.
Investors in identified highway projects permitted to recover investment by way ofcollection of tolls for specified sections and periods.
The government has also announced an increase in the overseas borrowing amount ofinfrastructure sectors, to USD500 million from USD100 million.
In order to tide over the shortage of funds, the road transport and highways ministry hasproposed priority sector status for road development, allowing private highwaydevelopers more funds from banks.
GOVERNMENT INITIATIVES
Source : Indian Brand Equity Foundation
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RAILWAYS IN INDIA
DEDICATED FREIGHT CORRIDOR PROJECT ROUTE MAP
Source : Ministry of Indian Railways
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RAILWAYS IN INDIA
METRO RAIL SYSTEMS
GOVERNMENT KEEN ON TRANSPORT ALTERNATIVES
As huge upfront capital investmentrequired for every metro project,government is promoting joint venture andpublic private partnership (PPP) routes for
the metro projects.
Bombardier Transportation estimates thatthe Investment opportunities for greenfieldmetro rail projects and related equipment(excluding locomotives) in India will be
around USD3.5 billion by 2014.
Further, it expects the annual demand formetro rail coaches in India to reach 1,000units by 2011.
Source : Indian Infrastructure December 2009
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INDIAN TELECOM INDUSTRYINDIAN TELECOM INDUSTRY
Source : Indian Infrastructure, August and November 2009
A BRIEF OUTLOOK
The Indian telecom industry continues its growth trajectory amidst the economic slowdown
As per the Telecom Regulatory Authority of India (TRAI) during January 2009 :
Total Telephone subscriber base reached 581.81 Million
Wireless subscription reached 545.05 Million
Wireline subscription declined to 36.76
19. 90 Million new additions in wireless
Wireline subscription declined by 0.31 Million
Overall Tele-density reached 49.5
Broadband subscription is 8.03 million
FDI inflows during 2008-2009 touched Rs 117.27 billion (USD 2.56 billion),
during April-November 2009 it reached Rs 108.11 billion (USD 2.22 billion).
Anticipated launch of 3G and Wi-Max services.
New operators launching services.
Rural telephony to witness strong growth.
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INDIAN TELECOM INDUSTRYINDIAN TELECOM INDUSTRY
Source : Confederation of Indian Industry (CII) Ernst & Young report titled India 2012: Telecom Growth Continues
Total telecom subscriber base to reach close to 690 - 700 million by 2012. Wireless subscriber growth to continue, expected to reach 640 - 650 million in
2012.
The fixed line base is estimated to reach approximately 45 - 50 million in 2012.
Indias telecom services industry revenue projected to reach USD54 billion.
Rural telecom will be the new growth constituency with tele-density levelsreaching about 40 per cent.
25 - 30 million 3G subscribers estimated by 2012, WiMax subscribers to reach 8- 10 million.
By 2012, internet and broadband subscribers to reach 45 million and 25 - 30million respectively while 196 million subscribers are expected to access theinternet through the mobile.
FUTURE OUTLOOK
As per the Reliance Equities report, released in September 2009, the number of telecom towers
in India in 2010-2011 is projected to grow to 337,375 from an estimated 282,074 in 2009-2010.
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Chemicals
Indian consumption levels 1/10th of global average
New Petroleum, Chemicals and PetrochemicalsInvestment Region (PCPIR) policy. Each PCPIR tohave 250 sq.km area, refinery/petrochemical feed stock
company. These regions to be in West Bengal, Gujarat andAndhra Pradesh.
6th IndiaChem 2010 (Exhibition and Conference) to beheld in Mumbai 28-30 October at Bombay ExhibitionCentre. It would focus on chemicals, technologies,process plant machinery, control and automationsystems and petrochemicals. Japan was partnercountry in 2004 and Korea is requested for 2010.
www.indiachem.in
Several factors make India a favourite
http://www.ameecastor.com/images/heinz-ketchup-factory.jpg8/8/2019 Amb @ KCCI 12 March 2010
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Several factors make India a favouriteinvestment destination
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Consumer Market in India
1. Low margin high volumes model.
2. 506 million Mobile phones.
3. Consumer looking for a deal.
4. 40 million new consumers cominginto market every year.
5. Single use products shampoo insachets.
6. Appliances designed for power
failures.
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Indian Subsidiaries Outshine Overseas ParentsBetter Financial Performance
Trends visible in many sectors:IT, auto, pharma & consumar durables
Overseas parent SalesGrowth
(%)
Indian Subsidiary SalesGrowth
(%)
Unilever 8.6 Hindustan Unilever 11.6
Siemens 14 Siemens India 56
ABB 2.5 ABB India 32
Colgate 4.5 Colgate India 26
Hyundai Motors 6 India (exported a million cars!) 25
Samsung Global 15 Samsung India 29
LG Global 12.5 LG India 21
http://www.google.com/imgres?imgurl=http://www.stockmarkettipz.info/wp-content/uploads/2009/11/Ranbaxy-logo.jpg&imgrefurl=http://www.stockmarkettipz.info/2009/11/ranbaxy-short-term-investments-target-price.html&h=150&w=200&sz=8&tbnid=na7btfHa8i1E7M:&tbnh=78&tbnw=104&prev=/images%3Fq%3DRanbaxy%2Blogo&hl=en&usg=__c8s0WYcbkIfOTKNzG8WlZTOxs9E=&ei=PBmXS6fpG5TWtgOKkNXCAQ&sa=X&oi=image_result&resnum=3&ct=image&ved=0CAoQ9QEwAg8/8/2019 Amb @ KCCI 12 March 2010
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Bilateral Context
Excellent political relations President Lees landmark State Visit in Jan 10
Growing economic content trade in 2008 was15.6 billion dollars. Bilateral Trade Target for 2014 is US$ 30
Billion
CEPA is operational from January, 2010 Indian market hospitable to Korean business. Leading Korean Companies household names.
http://www.google.com/imgres?imgurl=http://www.stockmarkettipz.info/wp-content/uploads/2009/11/Ranbaxy-logo.jpg&imgrefurl=http://www.stockmarkettipz.info/2009/11/ranbaxy-short-term-investments-target-price.html&h=150&w=200&sz=8&tbnid=na7btfHa8i1E7M:&tbnh=78&tbnw=104&prev=/images%3Fq%3DRanbaxy%2Blogo&hl=en&usg=__c8s0WYcbkIfOTKNzG8WlZTOxs9E=&ei=PBmXS6fpG5TWtgOKkNXCAQ&sa=X&oi=image_result&resnum=3&ct=image&ved=0CAoQ9QEwAg8/8/2019 Amb @ KCCI 12 March 2010
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Attracting FDI Inflows from
South KoreaRank Sector Percentage FDI Inflows
fromSouth Korea
1. Automobile Industry 18.07
2. Metallurgical Industries 15.18
3. Electronics 14.73
4. Housing & Real Estate 9.96
5. Industrial Machinery 7.41
Total Investment from Korea 1.6 Billion
(from January 2000 to May 2009)
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Potential Areas for KoreanInvestments in India
Auto & Auto Ancillary
Defense
Pharmaceutical & Chemical Products
Healthcare
Information Technology
Infrastructure
Shipping & Ports
Textile, Garment & Apparel Industry
Mechanical tools
Machinery
Food Processing Industries
Solar Power
E l
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Example -Hyundai Motor India Ltd.
[HMIL] Fastest Growth in Exports fromIndia - Total of 1 million cars in
2010
No. 1 Exporter of Automobiles
from India
Accounts for 66% of Total
Passenger Car Exports from
India
Exports to over 113 countries
from India (120 by end 2010)
Biggest Operations outside of
Korea in India
Over 50% of production in India
is Exported
Year Exports (Cars)
1999 20
2000 3,823
2001 6,092
2002 8,245
2003 30,416
2004 75,871
2005 96,560
2006 113,339
2007 126,749
2008 243,9192009 210,007
Total 975,041
Source: Business Line
http://images.google.com/imgres?imgurl=http://images.zigwheels.com/uploads/newcar/Hyundai_logo.jpg&imgrefurl=http://www.zigwheels.com/News/Hyundai-unveils-the-i10-Electric/i10_20100106-1-1&usg=__rYOtnDgMwGfmWim3vLiWfgmBBqE=&h=600&w=800&sz=42&hl=en&start=2&itbs=1&tbnid=LYuszheDdmHhpM:&tbnh=107&tbnw=143&prev=/images%3Fq%3DHyundai%2BIndia%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbs%3Disch:1http://images.google.com/imgres?imgurl=http://www.blonnet.com/2004/03/25/images/2004032500730201.jpg&imgrefurl=http://www.blonnet.com/2004/03/25/stories/2004032500730200.htm&usg=__que5L2lbZZ7Vcm_2ZY1eltUUknQ=&h=305&w=351&sz=31&hl=en&start=5&itbs=1&tbnid=ale-nbyXii3jcM:&tbnh=104&tbnw=120&prev=/images%3Fq%3DHyundai%2BIndia%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbs%3Disch:18/8/2019 Amb @ KCCI 12 March 2010
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Information Technology
Indian IT-BPO sector US$ 71 billion
Software and services exportsUS$ 47 billion in 2008
Indian IT companies are experts in: Custom Application Development andMaintenance (CADM)
System Integration IT Consulting Application Management
Computer Aided Designing (CAD) Legal Process Outsourcing Animation Industry
IT Enabled Services
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India Preferred IT Services Supplier to the World
Company Outsourcing for
IT ServicesIT Services
Infosys
Tata Consultancy Services(TCS)
Wipro
Goldman Sachs, Aetna, Northwestern Mutual, Am Ex DHL, Verizon
GE, Honda, UBS, HSBC
Transco, HP Compaq, Nortel, General Motors, CISCO, Sony
IT Enabled Services
Mphasis BFL
Spectramind
Citi Group, Accenture, Auto Zone, Capital One
Dell, American Express, Capital One
Recent IT Contracts for Indian Companies
1. British Petroleum with TCS, Infosys & Wipro
2. Etisalat DB telecom with Tech Mahindra (S161 million)
3. Cardiff City Council with Tata Consultancy Services ($248 million)
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Pharmaceutical Industry in India
1. Medicines at affordable cost
2. Third largest in the world in volume terms3. Over $20 billion in terms of value
4. Exports over $8 billion worth of drugs andpharmaceuticals to US, Europe, Japan,Australia, etc.
5. Advantage in GENERIC DRUGS ($80 billionworth drugs patent expiring by 2012.
6. Ranbaxy majority share bought by Daiichi-Sankyo worth $4.6 Billion.
http://www.google.com/imgres?imgurl=http://www.stockmarkettipz.info/wp-content/uploads/2009/11/Ranbaxy-logo.jpg&imgrefurl=http://www.stockmarkettipz.info/2009/11/ranbaxy-short-term-investments-target-price.html&h=150&w=200&sz=8&tbnid=na7btfHa8i1E7M:&tbnh=78&tbnw=104&prev=/images%3Fq%3DRanbaxy%2Blogo&hl=en&usg=__c8s0WYcbkIfOTKNzG8WlZTOxs9E=&ei=PBmXS6fpG5TWtgOKkNXCAQ&sa=X&oi=image_result&resnum=3&ct=image&ved=0CAoQ9QEwAghttp://images.google.com/imgres?imgurl=http://www.mvaayoo.com/img/LupinLogo.jpg&imgrefurl=http://www.mvaayoo.com/CaseStudies.html&usg=__VZBUtHoEPz3DdAMyhDb0a3qCqYw=&h=106&w=92&sz=8&hl=en&start=16&um=1&itbs=1&tbnid=MqYahUHIV58_dM:&tbnh=84&tbnw=73&prev=/images%3Fq%3DLupin%2Bltd%2Blogo%26um%3D1%26hl%3Den%26safe%3Doff%26sa%3DN%26tbs%3Disch:18/8/2019 Amb @ KCCI 12 March 2010
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Global Reach ofIndian Pharmaceuticals
US FDA ApprovedPharma Plants in India
65
US Pharma Patents
for Indian formulations
>200
Indian Pharma Companies Manufacturing for
CIPLA Ivey, Watson Pharma, Eon Labs
Shashun Chemicals Eli Lily, Glaxo-SmithKline Pharma
Lupin Laboratories Apotex, APP, Watson Pharma
Torrent Pharma Novo Nordisk (26 million vials /
annum of insulin)
http://images.google.com/imgres?imgurl=http://www.mvaayoo.com/img/LupinLogo.jpg&imgrefurl=http://www.mvaayoo.com/CaseStudies.html&usg=__VZBUtHoEPz3DdAMyhDb0a3qCqYw=&h=106&w=92&sz=8&hl=en&start=16&um=1&itbs=1&tbnid=MqYahUHIV58_dM:&tbnh=84&tbnw=73&prev=/images%3Fq%3DLupin%2Bltd%2Blogo%26um%3D1%26hl%3Den%26safe%3Doff%26sa%3DN%26tbs%3Disch:1http://images.google.com/imgres?imgurl=http://www.packshield.com/images/aboutus/clientele/cipla-logo5.gif&imgrefurl=http://www.packshield.com/aboutus/clientele.php&usg=__bS6_kKbck0oSmUnNOaZquCtbrSk=&h=59&w=116&sz=5&hl=en&start=16&itbs=1&tbnid=imoNtZxCBIkeFM:&tbnh=44&tbnw=87&prev=/images%3Fq%3DCIPLA%2Blogo%26hl%3Den%26safe%3Doff%26sa%3DG%26gbv%3D2%26tbs%3Disch:18/8/2019 Amb @ KCCI 12 March 2010
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Partnership in Space,Science & Technology
On 26 May 1999 Indias Polar Satellite Launch Vehicle PSLVC2 successfully launched Korean satellite KITSAT-3 into space.
India has 54 satellites in space.
22 Satellites launched for companies from Germany, Italy,Belgium, Indonesia and Argentina.
Indias capacity to design, fabricate, launch and track satelliteson own Launch Vehicles.
Chandrayaan orbiting the Moon.
$10 Million Common Fund for R&D in S&T.
Comprehensive Economic
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Comprehensive EconomicPartnership Agreement
[CEPA]To deepen co-operation in
Trade in goods
Information Technology
Transfer of Technology
Manufacturing sector
Services sector
Movement of professionals
P hi A
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Partnership Agreement[CEPA]
Complete exemption from Basic Customs
duty (BCD)
to 104 specified items
Main products include - printed books, aircrafts,
aircraft
engines, parts of aircraft engines, helicopters
specified industrial robots, telephone answering
machines, etc.
Benefit of concessional BCD provided to 962
specified items
nuclear reactors, steam or other boilers,
engines, combined refrigerator-freezers, dish
washing machines, hair drying/ hand drying
apparatus, golf cars, motorcycles with specified
cylinder capacity, etc
Benefits/
Concessio
ns
effective
from
January 1,2010
CEPA
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CEPABenefits
Encourage Korean companies to setupmanufacturing in India
Korean Companies can Import RawMaterials, Inputs used in Manufacturing atConcessional Import Duty in India
Export to Korea from India with ExportBenefits & Concessional Import Duty inKorea
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Leverage IndiasHuman Resources
R&D Laboratories in India. Samsung, LG, Hyundai Motors.
Indian Engineers and IT Experts in Korea. Designing & Research (~1000). Scientists and Researchers in Korean Universities (~600).
Indian experts will make Korean companies morecompetitive globally - Middle-East contracts.
CEPA opens new doors 163 categories of professionals from India can work on
contracts in Korea.
LIST OF PROFESSIONALS
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LIST OF PROFESSIONALS(ANNEXURE 8-A OF CEPA)
1 Computer Hardware Design Engineers
2 Computer network products developer
11 Telecommunication Machinery Engineers and Researchers
21 Wireless communication network manager
22 Electrical circuit manager
30 Optical communication products Design developer
33 Wireless phone developer
34 Digital receiver developer
38 Communication network operation Engineers
43 CDMA technology research developer
52 Computer System Supervision Professionals
53 Computer System Designers and Analysts
59 System Software Programmers
65 Application Software Designers and Analysts
66 Network Programmers
68 Data management application programmer
69 Financing management application programmer
72 Database Designers and Analysts
73 Database Programmers
79 LAN Engineers
81 WAN Engineers
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81 WAN Engineers
84 Web Engineers and Programmers
86 General management consultant
87 Financial management consultant
88 Marketing management consultant
89 Human resources management consultant
93 Electrical Measurement and Control Engineers and Researchers
117 Farming machine (design) Engineers
124 Special Engineering Design Service for automobile (automobile designer)
129 Petroleum and Chemical Engineers and Researchers
130 Rubber and Plastic Engineers and Researchers
131 Pesticide and Fertilizer Engineers and Researchers
134 Natural gas Chemical Engineers
140 Electrical Products Development Engineers and Researchers
141 Power Plant Engineers and Researchers
149 Ship Engineers and Researchers
156 Biologist
157 Biochemist
159 Civil Construction Engineers
160 Advertising Professionals
161 Computer Game Programmers
163 Assistant English Teachers6 for primary and secondary schools
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Success of Korean Companies in India
1. Pioneers are Samsung Electronics(1995), Hyundai Motors (1996) and LGElectronics (1997).
2. Now >400 Korean Corporations in Indiawith more than US$1.5 billioninvestment.
3. POSCO proposes US$12 billioninvestment progress slow but steady.
4. 65% Korean companies in profit.24% showing growth but still in deficit11% in deficit.
5. Recent Entrants:Woori Bank, Samsung SDS, Korean ITCorporation.
http://hyundai.co.in/index.asphttp://images.google.com/imgres?imgurl=http://compareindia.in.com/media/images/2009/jul/img_70772_samsung-logo_b.gif&imgrefurl=http://compareindia.in.com/top-stories/computers/samsung-sets-up-its-first-it-brand-shop-in-india/43822/0&usg=__1HlaUd6lcK438aoDscmpHs58XoA=&h=800&w=800&sz=57&hl=en&start=7&itbs=1&tbnid=2raV_ddIIF65XM:&tbnh=143&tbnw=143&prev=/images%3Fq%3DIndia%2BSamsung%2Bshop%26hl%3Den%26safe%3Doff%26sa%3DG%26gbv%3D2%26tbs%3Disch:18/8/2019 Amb @ KCCI 12 March 2010
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Indian Companies in South Korea
http://www.indochamkorea.org
http://www.lntinfotech.com/index.asphttp://images.google.com/imgres?imgurl=http://pulse2.com/wp-content/uploads/2009/04/wipro-logo.jpg&imgrefurl=http://pulse2.com/category/wipro-technologies/&usg=__Iao8Ogd9uZIZ-tx193z4uIJvpsQ=&h=375&w=320&sz=25&hl=en&start=4&um=1&tbnid=-IXsbNPF3WQbSM:&tbnh=122&tbnw=104&prev=/images%3Fq%3DWIPRO%26hl%3Den%26sa%3DN%26um%3D1http://www.tata-daewoo.com/ver3/eng/02_main/main.html8/8/2019 Amb @ KCCI 12 March 2010
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Gujarat Vittal Innovation City FEZ
Support by KOTRA and Korea LandCorporation.
800 Acres Area Reserved forKorean SMEs.
Trilateral MoU between KoreaLand Corporation, GVIC andGovernment of Gujarat.
Korean Ecosystem.
70 Korean companies haveexpressed interest.
Electronics, specialty chemicals,components, light engineering.
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The New BrandMade in INDIA
inPartnership with KOREA
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Thank You.
Ambassador of Indiaamb.seoul@mea.gov.in