Australia
(Source : Consulate General of India, Sydney)
During Jan-Sept 2020 the total bilateral trade in merchandise goods between the two countries was US$ 7.8 billion approx. as compared to US$ 9.8 billion approx. during the same period of last year. This is a decrease of approx. 20.4 percent.
India’s merchandise goods export to Australia (Australian imports from India) was US$ 2.7 billion which is an increase of 13.6 percent as compared to the same period during 2019.
India’s merchandise goods import from Australia during Jan-Sept 2020 stood at approx. US$ 5.1 billion with a decrease of approx. 31.5 percent as compared to the same period of previous year.
Indian merchandise exports to Australia was led by Refined Petroleum, followed by the usual items – Medicaments, Pearls and Precious Stones, Made-up textile articles and Jewellery comprising the top five.
The total bilateral trade has decreased by approx. US$ 2 billion during Jan-Sept 2020.
The other highlights of bilateral merchandise goods trade have been the significant increase in export of ‘Refined Petroleum’ (259%) and was the largest Indian exports to Australia, followed by significant increase in export of Rice (48%) from India to Australia.
Major increase in India’s import from Australia consisted of Silver, platinum, and other metals (633%) Fresh & Frozen vegetables (140%) & Lead (113%) during Jan-Sept 2020 from Australia.
In FY 2018-19 (July-June), the total bilateral trade in services between India and Australia was US$ 6.4 billion approx. (A$ 9.2 billion).
During FY 2018-19 the total services export from India to Australia was around US$ 1.8 bn. The top three services export from India are 1. Personal travel (excl education-related) 2. Other Business Services 3. Telecom. computer & information services.
During FY 2018-19 the total services import from Australia to India was around US$ 4.6 bn. Australia’s top three services export to India were 1) Education related travel 2) Personal travel (excl. education) and 3) business related travel.
During the reporting period, the top 10 commodities of export from India to Australia included Refined Petroleum Oils, Medicaments, Pearls & Precious Stones, Made up Articles of textile materials, Jewellery, Rice, Manufactures of base metals, Articles of Apparel of Textile fabrics, Floor Coverings, and Organo-inorganic compounds.
Export of ‘Coal’ from Australia to India was the main contributor for the volume of bilateral trade between the countries during the reporting period, with a value of USD 3.7 billion, amounting to 73.2% of Australia’s total exports to India and 47.8% of total bilateral merchandise trade.
Confidential Items (SITC: 988) was the 2nd largest Australian export to India with a value of USD 500 million which is understood to include ‘Natural Gas’ as the major contributor with defence items and strategic minerals as other items of the item group.
Chile
(Source : Embassy of India, Santiago)
Potential products of imports from India
Commodity – 85372090
Rationale - Chile is importing small quantities of “Other apparatus for electric control or distribution of electricity, including boards, panels (with digital controller included)” from India. From Jan to Sep 2020, Chile has imported a quantity worth US$ 1.34 million from India (2.40% share). India is the top 6 supplying country after Germany, France, China, Brazil and Italy. Business opportunities are worth exploring.
Alerts on customs tariff changes –
Chile levies a 6% custom duty on most items being imported from India. However, Chile offers a margin of preference ranging from 60-100% on some items under the Expanded Preferential Trade Agreement between India and Chile.
Significant trends in trade and investment
Trade in Goods - Bilateral trade shows a -2.92% fall in September as compared to August, 2020. Exports to India dropped by 85.52% from US$ 174.33 million in August to US$ 25.25 million in September, 2020. Imports from India grew by 23.89% from US$ 51.36 million in August to US$ 63.63 million in September, 2020.
Analysis - Imports from India are showing signs of recovery, climbing from US$ 32.03 million in June to US$ 63.63 million in September. However, export of copper to India has again declined, hence the fall in bilateral trade.
Investment - As per RBI, during September 2020, an amount of US$0.32 mn outward FDI from India was made for activities such as manufacturing, wholesale retail, trade and restaurant.
Analysis - In order to boost Chilean economy, the Pinera government has unveiled an investment initiative in infrastructure, transport, ports, mining.
In a webinar organized by Universidad Católica, Chile’s the then foreign minister has talked about the priorities Teatinos 180 should focus on. He highlighted that global power relations were shifting and Chile must find a place in this emerging order and said that given that the global power center would shift toward the Indo-Pacific region, Chile would increasingly focus on India and Indonesia. And Brazil would remain a key partner in the region. Allamand called the countries “the three giants.”
The then Foreign Minister Allamand during a meeting with union representatives of different economic sectors, for boosting exports, highlighted the need to continue strengthening Chile’s position in Asia especially in India, and, within the region, in Brazil. "I have spoken metaphorically of the three giants; India, Brazil and Indonesia, and I am certain that in the coming years India will be what China was in the last 25 years. India is going to be absolutely our priority," added the Foreign Minister.
During another meeting with the presidents of the Confederation of Production and Commerce (CPC), Juan Sutil, and of Sofofa, Bernardo Larraín, to determine how foreign policy can serve to the economic reactivation of Chile, the then Foreign Minister assured that the Foreign Ministry, in conjunction with trade union organizations, is working to open space for Chile in markets of great projection, such as Indonesia and India, and also in the deepening of various free trade agreements, such as the existing one between Chile and Brazil.
During a webinar ‘Namaste Pacific Alliance’ organised by FICCI in collaboration with Santiago Chamber of Commerce and Industry and the Embassy, CEO of ProChile Jorge O’Ryan commented that “Chile is well positioned to increase its share of exports to India, targeting in particular the growing middle class who demand a diversified portfolio of goods. While we have logistical difficulties to deal with, we believe that the growth potential in dried fruits, fresh fruits, seafood and processed foods is impressive, considering that as of 2019 we export close to 50 million dollars in food and beverages, while India imports more than 8.3 billion dollars in food and beverages,”.
Senegal
(Source : Embassy of India, Dakar)
As per press release, ONGC, the Indian state hydrocarbon company, has agreed to buy the property, which includes FAR’s entire interest in the Production Sharing Contract for the Rufisque, Sangomar, and Sangomar Deep Offshore Blocks offshore Senegal and the relevant Joint Operating Agreement (the RSSD Project). The Sangomar exploitation project, located in these blocks, is the largest offshore crude oil development currently under construction in Africa. Phase 1 development of the project, which will develop some 250Million barrels of oil, remains on track for targeted delivery of first oil in 2023. Production from this phase is expected to be around 100,000 barrels of oil per day (BOPD).
Switzerland
(Source : Embassy of India, Berne)
Potential products of imports from India
Commodity - Telephones for cellular networks "mobile telephones" or for other wireless networks [HS Code 8517.12]
India’s Export to World in Sept. 2020 – USD 219.87 Million
India’s Export to Switzerland in Sept. 2020 – USD 0 Million
Switzerland’s Import from World in Sept. 2020 – USD 102 Million
Rationale - Comparison between India’s exports to the world (September 2020), India’s export to Switzerland (September 2020) and Switzerland’s imports from the world (September 2020) at 6 digit HS Code.
Commodity - Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston engine of a cylinder capacity > 1.500 cm3 but <= 3.000 cm3 (excl. bus of heading 8702 and special motor vehicles of heading 8703.10) [HS Code 8703.23].
India’s Export to World in Sept. 2020 – USD 161.92 Million
India’s Export to Switzerland in Sept. 2020 – USD 0 Million
Switzerland’s Import from World in Sept. 2020 – USD 210 Million
Rationale - Comparison between India’s exports to the world (September 2020), India’s export to Switzerland (September 2020) and Switzerland’s imports from the world (September 2020) at 6 digit HS Code.
Significant trends in trade and investment
Trade in Goods - In Sept. 2020, total export products to Switzerland (USD 166 million) from India registered an increase of 7.79%, as compared to Aug. 2020 (USD 154 million).
India’s increase in exports in Sept. 2020 was particularly seen in the field of Rubies, sapphires and emeralds, worked, whether or not graded, but not strung, mounted or set, rubies, sapphires and emeralds, worked, ungraded, temporarily strung for convenience of transport (excl. rubies, sapphires and emeralds, simply sawn or roughly shaped, imitation precious stones and semi-precious stones) [HS Code 7103.91]; Heterocyclic compounds with nitrogen hetero-atom[s] only, containing an unfused pyrazole ring, whether or not hydrogenated, in the structure (excl. phenazone "antipyrin" and its derivatives) [HS Code 2933.19]; Heterocyclic compounds with nitrogen hetero-atom[s] only, n.e.s. [HS Code 2933.99]; and Organic derivatives of hydrazine or of hydroxylamine [HS Code 2928.00].
In Sept. 2020, the total import products from Switzerland to India registered a huge decrease of -71.18%, as compared to Aug. 2020 (USD 1499 million).
India’s registered increase in imports was particularly seen in the field of Dryers (excl. dryers for agricultural products, paper pulp, paper or paperboard, yarns, fabrics and other textile products, dryers for bottles or other containers, hairdryers, hand dryers and domestic appliances) [HS Code 8419.39]; Parts of gas turbines, n.e.s. [HS Code 8411.99]; Ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus [HS Code 9019.20]; and Parts of : air or vacuum pumps, air or other gas compressors, fans and ventilating or recycling hoods incorporating a fan, n.e.s. [HS Code 8414.90].
Analysis - Due to the ongoing COVID-19 pandemic, both Export and Imports between India and Switzerland was affected with India’s trade with Switzerland for Sept. 2020, accounted for 1.11% of Switzerland’s total trade.
In Sept. 2020, the total import products from Switzerland to India (USD 432 million) registered a huge decrease of -71.18%, as compared to Aug. 2020 (USD 1499 million).
Trade in Services - quarterly basis. In comparison to the 1st Quarter of 2020, in the 2nd Quarter of 2020, the Services exports from India to Switzerland saw increase in Insurance & Pension Services (13.7%); followed by Financial Services (12.8%) and Technical, trade-related, and other business services (0.9%).
The Services imports from Switzerland saw increase in, Insurance & Pension Services (45.2%); followed by Consulting Services (10.3%).
Analysis - Overall the trade in Services is in favor of India. License Fees [IPR related] expectedly is in favour of Switzerland.
Investment - As per DIPP, the FDI from Switzerland to India from April 2000 to June 2020 stood at USD 4879.01 million, making 1.03% of the total FDI Equity inflow. As per Department of Economic Affairs, Government of India, the ODI from India to Switzerland from Jan. – May* 2020 stood at USD 0.28 million.
As per RBI figures, the total ODI from India to Switzerland during Aug 2020 was USD 1.03 million compared to USD 109.04 million in July 2020.
Analysis - The investments from India to Switzerland are largely in field of Manufacturing, Financial, Insurance, and Business services, and Wholesale, Retail Trade, Restaurants and Hotel.
Joint Venture
Swiss based Cleanfix Reinigungssysteme AG (Cleanfix) announced manufacturing-led joint venture with Mysore-based Schevaran Laboratories Pvt. Ltd. (Schevaran): On 01 Oct. 2020, Swiss based Cleanfix Reinigungssysteme AG (Cleanfix), the global leader in robotic hygiene and cleaning machines announced its manufacturing-led joint venture with Mysore-based Schevaran Laboratories Pvt. Ltd. (Schevaran). The partnership will form a new entity CleanfixSchevaran Systems Pvt. Ltd., which will manufacture Swiss-technology backed worldclass robotic cleaning machines and solutions designed for the modern Indian needs.
Swiss based Mobile Health AG partnered with Infosys: On 07 Oct. 2020, Infosys, the global leader in nextgeneration digital services and consulting, Swiss based Health Tech startup Mobile Health AG, partnered with Infosys to enhance the go-to-market (GTM) strategy for its electronically patient-reported outcomes (ePRO) platform, Consilium Care™. Infosys would help Mobile Health AG to refine the quality of care for cancer patients and enable a value-based digital healthcare system through high-quality patient data and value-based pricing.
Aviation & Transportation
Zurich Airport signed the concession agreement for the capital airport Delhi Noida in India: On 07 Oct. 2020, Flughafen Zurich AG announced that it signed a corresponding concession agreement for a period of 40 years with the responsible Indian Government authority for the capital airport Delhi Noida. Construction is expected to start in 2021 and the investments associated with the first construction phase would amount to around CHF 650 million. Flughafen Zürich AG holds 100% of the project.