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Punjab - Africa Trade Conference - 2014

Indian – Africa Trade to be $100 billion (Rs 6,00,000 Cr)in 2015

We all know, India – Africa trade, which was barely

at US$ 5 billion a decade ago has reached to US$

70 billion in 2012 and is being projected to reach

US$ 100 billion by 2015.

India is currently 4th Largest trading partner of

Africa and is the largest trade partner to Nigeria,

Angola, South Africa and Egypt

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2.4

23

54.5

3

39.8

121.5

0

20

40

60

80

100

120

140

2001 2005 2008 2009 2010 2011 2 0 1 2 F 2013F 2014F 2015F

IN U

S$ B

ILLI

ON

Indian Export to Africa African Exports to India

• India's economic diplomacy towards Africa took a new direction when the "Focus Africa”program was launched along with the five year Foreign Trade Policy 2002-2007.

• India and Africa’s partnership is has entered into a new era. Close political relationship beinginvigorated by flourishing trade and investment.

• Africa and India trade has followed upward trend in trade and investment over last decade. Bilateral trade has grown at a robust 31.8% annually between 2005 – 2011.

• There has been surge in Indian private investmentin Africa with “Big Ticket” investment intelecommunication, IT, energy and automobilesectors.

Indian – Africa Trade

Punjab

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Our presence in World

India

Some Facts about Punjab (at a Glance)

Area 50362 Sq. Km.

District 22

Capital Chandigarh

No. Of Towns 143

Population 277.04 Lacs

Literacy 76.7%

Per Capita Consumption of Electricity 1102 KWH

Per Capita State Income 78594 INR

Large & Medium Industries 400

Small Scale Units (Registered) 2,43,000

Road Length in Punjab 67.26 (‘000KM)

Export In Million USD 3642.496 M USD

(22580 INR Crores)

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2012-13

About Punjab

The state has emerged as a key hub for textile-based industries, including yarn, readymade garments

and hosiery. With the development of apparel parks, favorable textile policy and other incentives for

the creation of textile infrastructure, the state offers tremendous opportunities for investment.

The state is ranked first in India in terms of the infrastructure facilities it offers. Punjab’s road, rail and

air transport network, connectivity, construction of bridges and infrastructure facilities are amongst

the best.

The average gross state domestic product (GSDP) growth rate for the state of Punjab was about 14.1

per cent between 2004–05 and 2012–13. The state provides investment opportunities in sectors such

as textiles, agro-based industries, IT, automotive and auto components, sports goods and light

engineering goods.

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Economic GSDP & NSDP

o Punjab’s gross state domestic product (GSDP) was US$54.1 billion at current prices in 2012-13.

o The state’s GSDP increased at a compound annualgrowth rate (CAGR) of 14.9* per cent between 2004-05 and 2012-13.

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oPunjab’s net state domestic product (NSDP) at current priceswas US$ 48.7 billion in 2012-13.

oBetween 2004-05 and 2012-13, NSDP increased at a CAGR of15.1* per cent.

21.524.5

28.1

37.8 37.941.7

49.653.8 54.1

GSDP of Punjab at current price (In US$ Billion)

19.2 21.725

33.7 33.737.2

44.348.5 48.7

NSDP of Punjab at current price (In US$ Billion)

CAGR14.9%

CAGR15.1%

2.73

3.33.8

4.4

00.5

11.5

22.5

33.5

44.5

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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Punjab’s exports (US$ billion)

Economic Snapshot Export Trend

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o Total exports of industrial goods from Punjab were valued atUS$4.4 billion in 2011-12 as compared to US$ 3.8 billion in 2010-11. Exports during 2012-13 are further anticipated to be at US$4.4 billion.

o In 2011-12, the state’s principal export items were yams andtextiles, hosiery and readymade garments, rice, sports goods,bicycles and bicycle parts.

o Ludhiana, Jalandhar and Patiala accounted for around 92 percent of Punjab’s total exports of industrial goods in 2011-12

Principal Items Exports 2011-12 (US$ million)

Yarn and Textile 1360.0

Hosiery and readymadegarments

655.6

Rice 450.7

Sports goods 345.4

Bicycle and parts 267.6

Engineering goods 183.0

Electrical switch gears and electrical accessories

136.0

Auto parts 135.6

Food products 63.3

Machine tools/hand tools 48.3

Commodity Wise Export Performance from Punjab Industries

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11%

16%

6%

1%7%

22%

0%0%

1%

6%

2%

2%

1% 0%1%

5%

18%

Rice

Readymade Garments & Hosiery

Cycle & Cycle Parts

Food Products

Sports Goods

Yarn & Textile

Handicrafts

Carpets

Leather Goods

Hand Tools

Machine Tools

Auto Spares

Diesel Engine

Sewing Machine

Electrical Accessories

Drugs

Others

About Ludhiana

• Ludhiana - "Manchester of East" is ranked as the best place to dobusiness in India according to a World Bank study, 2009. Many partsused in BMW and Mercedes are exclusively produced in Ludhiana. Italso produces 60% of India’s tractor parts.

• GDP - $4.4 billion (2009-10)

• Per Capita Income - Rs. 78,171

• Growth Rate - 5.79%

• Hero Cycles Limited entered the Guinness Books of World Recordsas the largest bicycle manufacturer in the world.

• Investment proposals of Rs.55,000 crore were signed at"Progressive Punjab" investors summit in Dec 2013

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Industry at a glance

No. of Industrial areas (2011) 6

Micro and small enterprises• Registered units (2010)• Turnover (2011)• Employment (2011)

39,091INR 24,428 crore (US$ 4.8 bn)335,741

Large and medium enterprises• Registered units (2010)• Turnover (2011)• Employment (2011)

116INR 8,634 crore (US$ 1.7bn)79,832

Chamber Of Industrial & Commercial Undertakings

Established in the year 1968.

Registered body under the Trade Unions Act 1926.

A regional Organization, autonomous & controlled byits members.

Completely non-profit making organization

Managed by the executive committee nominated bythe President who is elected by its members.

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Auditorium Covered Area 6000 Sq Feet

Seating Capacity of more than 700

Chamber Of Industrial & Commercial Undertakings

World level recognition being members of the Leading World Chamber's

About 1000 direct and 10000 indirect members representing various trade & industrial houses inPunjab & 28 different industrial associations are the strength of this apex organization.

CICU provides common point of contact & representative forum for exchange of views concerningindustrial & business operations specially on matters of local & national importance

Its role is well recognized by the Central & State Governments of INDIA

It has representations on a large number of advisory & consultative committees set by StateGovernment, where it has been instrumental in policy making.

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CICU –National Activities

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• Interactive discussions / seminars / workshops / training programs on important issues conducive to growth &development of Industrial sector.

• Organizing B2B exhibitions for exposure of Industries

• Interface between industry and institutes.

• Enabling Skill Development/ Cluster Development.- Training at Skill development center

• Expert Advice on sources and availability of credit, capital investment, financial appraisal of projects and clusterdevelopment

• Providing Sound and correct advice / guidance:- Expert advice on:- Export promotion- State / Central Govt. Taxation and Excise Duty Policies.

• Young Business Leaders (YBL) Forum

• Calibration, Testing and Training Center

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Interaction with foreign delegation from various countries on

doing business.

Delegation to foreign countries to promote export business.

Match making for Joint Ventures

Trade data exchange

Issuing certificate of origin in respect of exports.

CICU – Globalization Approach

Affiliated Associations with CICU

All India Cycle Trade Travelers Association

Auto Parts Mfgs. Association (India)

Builders Hardware Mfgs. Association of Ldh.

Fasteners Mfgs. Association of India

Focal Point Indl. Sheds Association

Federation of Dyeing Factories Association

Focal Point Development Association

Hargobindpura Indl. Welfare Association

Janta Nagar Small Scale Mfgs. Association

Knitwear Club

Ludhiana Machine Tool Mfgs. Association

Focal Point Industries Welfare Association

Ludhiana Dyes & Chemical Dealers Association

Ldh. Electroplating Materials Dealers Asson. (Regd.)

Ludhiana Sewing Machine Inds. Asson. (Regd.)

Oil Mill Machinery Mfgs. Association

Punjab Forging Industries Association

Punjab Scooter Parts Traders & Mfgs. Asson.

Small Scale Inds. Association

Small Industrial Association of Ludhiana

Focal Point Entrepreneurs Association Mangli

All India Steel Re -Rollers Association

Sewing Machine Development Club

Focal Point Phase-VIII Industrial Association

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Along with initiatives from the private sector, has had a positive impact on exports from India to Africa. Between2005 and 2011, Indian exports have grown annually at over 23%, even as Africa's share in India's total exportsincreased from 6.7% to 7.7%.

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Indian exports to African regions (in US$ million)

2005 2008 2009 2010 2011

North Africa 1577 3286 3236 3901 4328

West Africa 1762 2898 2883 3567 5421

Central Africa 275 687 905 985 1168

East Africa 1657 5861 4177 5640 7889

Southern Africa 1450 2651 2093 3793 4540

African LDCs 1949 4620 4308 5023 7521

Africa 6721 15383 13294 17887 23346

North Africa, 4328, 14%

West Africa, 5421, 18%

Central Africa, 1168, 4%

East Africa, 7889, 25%

Southern Africa, 4540, 15%

African LDCs, 7521, 24%

India’s Exports to Africa by region

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Indian – Africa Trade

Africa Import Punjab Exports

Product 2001 Share in TTE (%) 2011 Share in TTE (%)

High Technology (pharmaceuticals, office machinery, electronics and communication equipment, aircrafts)

278 10.9 3153 13.8

Medium High Tech (chemicals, machinery and equipment, electrical machinery, automobiles)

616 24.1 5809 25.5

Medium Low Technology (refined petroleum products, rubber and plastic glass and ceramic basic metals)

499 19.5 8426 37.0

Low Technology (food products, textiles and apparel, leather and footwear, paper products)

1067 41.7 4894 21.5

Total Technology exports (TTE) 2460 96.1 22283 97.8

Agriculture and related products 84 3.3 462 2.0

Mining and quarrying, incl. Crude Oil 15 0.6 45 0.2

Total Exports 2560 100 22791 100

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India's exports to Africa, by technology

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Top Categories Indian export to Africa countries (in ‘000 US$) CAGR (%) Product specialization (%)

Name 2005 2008 2011 2005-11 2011

Mineral Fuels 770 4457 5180 37.4 22.2

Vehicles 695 1246 2302 22.1 9.9

Pharmaceuticals 490 1184 1999 26.4 8.6

Electrical machinery 190 486 1614 42.8 6.9

Industrial machinery 526 1067 1383 17.5 5.9

Iron & Steel 371 713 885 15.6 3.8

Cotton 375 521 783 13.1 3.4

Articles of Iron & Steel 395 538 773 11.8 3.3

Plastic products 259 438 744 19.2 3.2

Cereals 583 191 633 1.4 2.7

India's exports to Africa, by Categories

The total market size of the Indian autocomponents industry is estimated at over $ 14.1bn.

The sector comprises 500 medium and largeplayers, and also includes 5,000 units (Tier 2 & Tier3) in the small scale sector.

The Indian prices are estimated broadly to be 10to 25% less than the world market prices but aremuch higher when related to some specific items,where better material inputs and technology areinvolved.

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3.8 4 3.45.2

12.3

29

0

5

10

15

20

25

30

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2007-08 2008-09 2009-10 2010-11 2015-16 2020-21

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Auto Component Exports

CAGR (2007-11) 11%CAGR (2011-21) 18.8%

Auto Ancillary Industry (Africa)

Mechanical engineering industry in India is showing rapidadvancements in every sphere of the economy with Indiancompanies forging ahead in making of defense equipment's,aircrafts, sleekly designed cars, vehicles and variousindustrial devices.

India's engineering exports are likely to cross the USD 50billion mark by the end of this fiscal on the back of increasingdemand in markets like North America, Africa and MiddleEast countries.

India is a major exporter of light and heavy engineeringgoods and has a well-developed and diversified industrialmachinery and capital base

Most of the Mechanical machinery is being produced inPunjab, and could be best option for export to Africancountries

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174 198 213289

419524

670

819

1063 10641166

0

200

400

600

800

1000

1200

1400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

MIL

LIO

N U

S$

India’s Mechanical Machinery Exports to Africa

Mechanical Machinery

India – African countries – Export – Import trends

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15.83

171.72147.65

132.78

14.046.89 1.71 0

0

50

100

150

200

2003 2012 2013 2014

MIL

LIO

N U

S$

ZIMBABWE – INDIA

Export Import

159.93

220.52

0.99 0.240

50

100

150

200

250

2 0 1 2 2013

MIL

LIO

N U

S$

RWANDA – INDIA

Export Import

36.99 41.7

64.2155.49

28.94 14.93

40.1330.31

0

20

40

60

80

2010 2011 2012 2013

Mill

ion

US$

GAMBIA – INDIA

Export Import

431.15597.49

716.81840.33

1231.76

444.12

12.36 16.98 18.73 16.47 16.06 9.920

500

1000

1500

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 (Jan –

April-14)

Mill

ion

US$

UGANDA – INDIA

Export Import

Items of Trade

Petroleum products,

Cars

Delivery trucks,

Corn

Raw tobacco

Items of Trade

Food productsPharmaceutical products

Machinery and equipment Books

Construction materials Textiles

Petroleum products Electrical goods

Fertilizers Cars

Items of Trade

Light Pure Woven cotton

Rice,

Raw Sugar

Cars

Palm Oil

Poultry Meat

Items of Trade

Refined petroleum

Cars

Broadcasting equipments

Palm Oil &

Packaged medicaments

India – African countries – Export – Import trends

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34.49

14.4418.64 21.2

18.1

31.01

0.29 0.6 1.13 3.15 4.26 2.51

0

10

20

30

40

Mill

ion

US$

Lesotho and India

Export Import

37.947.08

88.07

56.1368.53

0.2510.47

0.1569.05

0.510

20406080

100

Mill

ion

US$

Niger and India

Export Import

221.81 264.43

655479

763.98

123.83 153.43

286 253167.61

0

200

400

600

800

1000

Mill

ion

US$

Benin and India

Export Import

79.35

96.4

131.94206.07

206.24

320.24

103.22

262.23

527.83

199.01

0

100

200

300

400

500

600

2009-10 2010-11 2011-12 2012-13 2013-14

Mill

ion

US$

Guinea and India

Export Import

Items of Trade

Food

Vehicle

Machines

Petroleum products

Items of Trade

Refined petroleum

Rice

Wheat

Cars

Telephones)

Items of Trade

Light Pure Woven cotton

Rice

Cars

Palm Oil

Poultry Meat

Items of Trade

Refined petroleum

Rice

Rubber Footwears

Motorcycle

Packaged medicaments

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Some Glimpse of Punjab Industry

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Industries in PUNJABAgriculture Implement & Machinery

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Industries in PUNJABHand Tools & Garden Tools , Electric Power Tools , Cutting Tools

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Industries in PUNJABMachine Tools, Diesel Engines

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Industries in PUNJABEnergy , Boilers, Power Transmission, Telecommunication

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Industries in PUNJABSewing Machine & Parts , Measuring Instrument & Office Stationery

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Industries in PUNJABE.T.O. Cranes & Pick & Move Cranes, Tyres

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Industries in PUNJABSteel ,Heavy Sheet metal parts, Paints

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Industries in PUNJABWoolen, Garments, Food Products

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Industries in PUNJABBicycle and Parts, Fasteners & Hardware Products

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Industries in PUNJABTractor Parts

Doing Business with Africa-Punjab Offers

Export of Product to African Country Products &Projects

Import of product/commodity from African Country

Providing Technologies Joint ventures and technical assistant.

Sharing of Best Practices in terms of skill development, productivity improvement etc.

We welcome delegation from African country During IETSS-15

We can provide industrial trainings to African student

Providing support in farm mechanization

Cluster Development & Planning

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Sharing Information regarding tender and Govt. Purchase

Purchasing of Machines and equipment's for various aided projects

Delegations visiting India must visit Ludhiana Industry. Special Delegations During IETSS-15

Detail about Africans products with competitive prices.

Signing M.O.U. with Trade bodies

Facilitation in Visa.

.CICU wants a WIN – WIN Situation India and Africa

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Doing Business with Africa

CICU

always look forward towards your Valuable Suggestions,

Sincere Guidance & Support

for the betterment of the Industry

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THANK YOU