Potential of Indian Exports to WACA Countries

International Marketing

Potential for Indian Products in Chad, Niger and Mali

Outline

• Geographic Overview• GDP Growth• PESTEL• Sectors Booming• Focused Market Schemes• Challenges for Indian Exports• Proposal

Geographic Overview• CHAD (currency XAF)

– Landlocked country in north-central Africa with an area of 495,755 sq m, population

of 10,758,945 with the 7th largest lake in the world- Lake Chad

– Niger, Libya, the Sudan, the Central African Republic, Cameroon and Nigeria are

the neighboring countries

– Capital - N’Djamena

– Languages – French (official) Arabic, Sara, etc

– Religions – Muslim, Catholic, Protestant, animist, others

– Government - Republic

– The country is rich and diverse in culture

– The country has 4 bioclimatic zones

– Great range of Tropical Climate most of it tend to be dry

– GDP 6.9% - Agriculture 52.7%, Industry 6.7%, services 40.6%

– Inflation 5.5%

– Major import commodities – machinery and transportation equipment, industrial

goods, foodstuffs, textiles

• NIGER (currency XOF)– Located in West Africa’s Sahara region with an area of 489,189

sq m, population of 15,878,271– Mali, Algeria, Libya, Chad, Nigeria, Benin and Burkina Faso are

the neighboring countries.– Capital – Niamey– Languages – French (official), Hausa, Djerma– Religions – Muslim 80%, other(indigenous– beliefs and Christian) 20%– Government – Republican, emerging from military rule– Climate is seasonally damp and very humid– Has two seasons – the dry and the rainy– GDP 14% - Agriculture 40.7%, Industry 16.1%, Services 46.5%– Inflation 4.5%– Major import commodities – foodstuffs, machinery vehicles and

parts, petroleum, cereals

• MALI (currency XOF)– Most of Mali lies in Sahara with an area of 478,767 sq m, population

13, 796,354

– Guinea, Senegal, Mauriania, Algeria, Niger, Burkina Faso and the

Cote d’lvoire are the neighboring countries

– Capital – Bamako

– Languages – French (official), Bambara

– Religions – Muslim 90%, Christian 1%, indigenous beliefs 9%

– Government – Republic

– Climate ranges from subtropical in the south to arid in the north

– 60% of Mali’s land area is desert or semi-desert

– GDP 6% - Agriculture 38.8%, Industry 21.9%, Services 39.3%

– Inflation 6.1%

– Major import commodities – petroleum, machinery and equipment,

construction materials, foodstuffs, textiles

PESTEL

• CHAD– Many political parties active– Economy largely based on livestock products– One of the poorest and corrupt countries of the world– The population is very young (more than 50% below 15 yrs of

age)– Climate change, particularly the persistent droughts of the past

two or three decades, has depleted and silted up water bodies generally, and natural spawning grounds in particular

– Chad's legal system is based on French civil law and Chadian customary law where the latter does not interfere with public order or constitutional guarantees of equality.

• NIGER– Niger is a democratic country

– Among the poorest countries, with minimal government services and

insufficient funds to develop its resource base

– Agrarian and substitute based economy

– Agriculture adds to 40% of GDP and 80% for livelihood

– Worlds largest uranium deposits

– Exports are expected to grow significantly between 2011 and 1016

– Received 100% multilateral debt relief from IMF

– Various ethnic groups

– Official language is French

– 80% of the population belongs to Muslim community

– 63% population is below poverty line

– Landlocked country (4/5 desert & 1/5 savanna)

– Droughts are very common

– Environmental conditions allows limited agriculture

• MALI– Mali is a democratic country

– Civil law system

– Among 25 poorest countries in the world

– Economy completely depends on gold mining and agricultural

exports

– Invested in tourism

– Economic growth of 5% per year

– Population consists of various ethnic groups ‘Mande’ constituting

to 50%

– 90% are muslims, 1% christian

– Official language is French

– Mali is a landlocked country with 65% desert area

– Deforestation, soil erosion, desertification, poaching are the major

environmental issues

Sectors Booming

CHAD• Oil Sector• Cotton and Live Stock• Agricultural Products• Construction

materials , Machinery, transportation equipment and industrial goods

• Mining : Gold, bauxite, uranium, silver, alluvial diamonds

• Telecommunication• Power Sector

NIGER• Healthcare• Engineering products• Agricultural services• Animal products• Mining - Deposits of

uranium coal, gold, iron, phosphate, gypsum, limestone

• Transportation• Telecom• Infrastructure• Oil exploration

MALI

•Agricultural and livestock products : tobacco, plants for food processing, meat packaging, eatable oils, fruit preserving, sugar distilling, tea•Mining : gold, copper, diamond, phosphate, lithium, tin, uranium•Infrastructure•Textile : Large cotton producer•Handicrafts: Wood Carving, Baskets, Shoes, Pottery•Crude Oil and Gas•Construction: Plants for manufacturing Brick, Ceramics, Cement, Tiles, Furniture

Foreign Trade Policy (2009 -14): India• Announced on 27th August, 2009 in the backdrop of a fall in India’s exports due to

global slowdown• Objective:

– Reverse the declining trend of exports– Support to sectors hit severely by recession– The long term policy objective for the Government is to double India’s share in

global trade by 2020• Measures undertaken

– Mix of fiscal incentives, institutional changes procedural rationalization, and efforts for enhanced market access across the world and diversification of export markets

• Steps taken to achieve the measures– Addition of new markets under Focused Market Schemes coverage of Africa,

Latin America and large part of Oceania under Focus Market Scheme (FMS) and the Market Linked Focus Product Scheme (MLFPS)

– Increase in incentives available under the Focus Market Scheme from 2.5% to 3% and for Focus Product Scheme (FPS) and MLFPS from 1.25% to 2%

– Introduction of EPCG Scheme at zero duty for specified sectors– Grant of additional duty credit scrip to status holders

Focused Market Schemes

• Objective:– Offset high freight cost and other externalities to select

international markets with a view to enhance our export competitiveness in these countries

• MALI, NIGER & CHAD are present in the Indian FMS• Appendix ( Please find attached PDF on “Focused Market

Schemes”)

Challenges for Indian Exports

• Create need for Indian handicrafts and engineering products and/or services

• Textile, food, infrastructure is already being imported from EU, US and China, so challenge lies in providing these products at lower costs

• Communication (language) is a barrier• 1.00 INR = 9.04 XOF so deciding the selling price is a challenge• Since, export from India is duty free the challenge lies in developing

market for Indian products

TOPIC RANKINGS DB 2013 Rank DB 2012 Rank Change in Rank

Starting a Business 173 169 -4

Dealing with Construction Permits

182 183 1

Getting Electricity 105 99 -6

Registering Property 94 97 3

Getting Credit 23 23 No change

Protecting Investors 49 46 -3

Paying Taxes 152 149 -3

Trading Across Borders 127 125 -2

Enforcing Contracts 184 184 No change

Resolving Insolvency 116 109 -7

India’s Doing Business Ranking-132

http://www.doingbusiness.org/data/exploreeconomies/india











Chad’s Doing Business Ranking-184TOPIC RANKINGS DB 2013 Rank DB 2012 Rank Change in Rank

Starting a Business 181 185 4


127 126 -1


Registering Property 140 144 4

Getting Credit 104 97 -7




Enforcing Contracts 167 166 -1

Resolving Insolvency 185 185 No change

http://www.doingbusiness.org/data/exploreeconomies/chad











Niger’s Doing Business Ranking- 176TOPIC RANKINGS DB 2013 Rank DB 2012 Rank Change in Rank



160 156 -4


Registering Property 87 86 -1




Trading Across Borders 176 176 No change



http://www.doingbusiness.org/data/exploreeconomies/niger











Mali’s Doing Business Ranking- 151TOPIC RANKINGS DB 2013 Rank DB 2012 Rank Change in Rank



99 93 -6


Registering Property 91 91 No change



Paying Taxes 166 167 1




http://www.doingbusiness.org/data/exploreeconomies/mali











How to do Business in

Mali, Chad and Niger

• Rank of Ease of starting a business– Chad - 181– Niger - 167– Mali – 118

• India’s rank 173!• Only Mali has a balance between different sectors of the

economy.• Other two countries are mainly based on services and

agriculture.

• So there can be a two away approach to this : – Exporting Service/Agricultural related technology and

expertise – Exporting engineering technology and know how for

example • Infrastructure projects• Manufacturing facilities etc.

• The main trading partners are US, UK, EU, Japan so in general the population can be quality minded. So Indian goods should be priced 30-40% lower than existing product or should be new market itself.

Thank You!!!

Presentation By-

Mani Nafde 11BSP1801Pratham Tiwari 11BSP1543Punit Sharma 11BSP1555Rashmi Khatri 11BSP2107Sakshi Rastogi 11BSP1858Tushar Shah 11BSP1872

Potential of Indian Exports to WACA Countries

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