Australia
(Source : Consulate General of India Sydney)
This month is no different, the balance of trade was heavily in favour of Australia, with Australia exporting merchandise goods to India worth USD 8.2 billion, while importing goods worth USD 2.5 billion from India for the period Jan-Aug 2017.
(ii) Indian merchandise Exports to Australia was almost stagnant for the period Jan-Aug 2017 over the corresponding period last year, with just 11.4 % increase, whereas the Australian export increased by 91.3 % for the same period. Refined Petroleum, Medicaments, Pearls & precious stones, Made up textile articles, jewellery, railway vehicles, organo-inorganic compounds and floor coverings were dominant commodities of export from India to Australia, in that order. A notable increase in Indian export during Jan-August 2017 is Railway vehicles, attributed to the supply of “Made in India” metro train coaches to Australia at USD 64 m with the growth of 107 % over the corresponding period in 2016. Another noteworthy increase of exports from India to Australia is Organo inorganic compounds, which increased 66 % in Jan-Aug 2017 (value USD 63 m) over the corresponding period last year.
Significant trends
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Details of significant trends
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Analysis
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During the period Jan-Aug 2017, the bilateral trade figures between the two countries were US$ 10.6 billion as compared to US$ 6.5 billion during the same period of last year. This is an increase of approx. 64 percent.
India’s merchandise goods export to Australia (Australian imports from India) was US$ 2.5 billion which is 11.4 percent more compared to the same period during 2016.
India’s merchandise goods import from Australia during Jan-Aug 2017 stood at US$ 8.2 billion with an increase of 91.3 percent as compared to the same period of previous year.
Indian merchandise Exports to Australia was dominated by ‘Refined Petroleum’ which experienced an increase of 7.5 percent as compared to the same period in 2016, followed by the usual items – Medicaments, Pearls and Gems, Made-up textile articles and Jewellery comprising the top 5.
‘Ships, Boats and Floating Structures’ has featured among the top 10 imports of Australia from the world, ranking at No. 3 with a significant increase of 6.4 billion (approx. 1371% increase) compared to the same period of previous year. This can be mainly attributed to the recent closure of major ship building units in South Australia.
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The total bilateral trade has increased by A$ 4.2 billion during this period and India’s export of ‘Refined Petroleum’ to Australia has increased by A$ 49 million during the same period.
The other highlights of bilateral merchandise goods trade have been the significant increase in export of ‘Organo-Inorganic Compounds’ (approx. 66%) from India to Australia and import of ‘Coal’ (Approx. 100%), ’Chick Peas & Vegetables (approx. 392%), Wheat (394%) and Non-monetary gold (120%) from Australia to India during Jan – Aug 2017.
Railway vehicles have been the new entrant in India’s top 10 exports to Australia at US$ 64 million and with a percentage growth of 106.5%. This can be mainly attributed to the Bombardier supplied “Made in India” metro train coaches to Australia.
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Hungary
(Source : Embassy of India, Budapest)
SMR Automotive Mirror Technology Hungary Bt. announced the opening of its new production plant in Túrkeve, Hungary at a press conference held at the Office of Hungarian Investment Promotion Agency, on 25 August 2017. H.E. Mr. Peter Szijjarto, Minister of Foreign Affairs and Trade, H.E. Mr. Sandor Fazekas, Minister of Agriculture, and Ambassador Rahul Chhabra attended the ceremony to announce the new production plant. Mr. Pál Levente Tibori, Executive Vice President of SMR, in his welcome address said that the new rearview mirrors and bumper manufacturing plant would see an investment of Ft 8 billion [appx €26.31 mn] and create 410 new jobs in the region. SMR Hungary and the Hungarian Government has signed a strategic partnership agreement in 2015. Since then SMR has strengthened its presence on the Hungarian market with acquisitions and greenfield investments. Combined with production in nearby Mosonszolnok, the factories produce eight million car mirrors annually. SMR is the global market leader in that segment with a total market share of 25%.
Peru
(Source : Embassy of India, Lima)
The ease of doing business in Peru is increasingly becoming challenging. According to the World Bank Doing Business ranking of 2018, Peru ranked in the 58th position amongst 119 countries compared. The country fell by four positions compared to last year, which added its fourth consecutive fall. The top position reached by Peru was in the year 2015 when it reached 35th position. In the region, Chile is at position 54, Columbia at 59 and Mexico at 49.
The ranking reveals that there are two important factors in which Peru is lagging behind. Among the 10 determinants of the business climate, the country occupies its worst position in terms of tax payments: the 121st position in the world. This is because in Peru nine tax payments have to be made in a year, taking a time of 260 hours and an average rate of 35.6% of the profits, according to the report. The big problem at this point is the low predictability of taxes, according to César Fuentes, ESAN (business school) professor. The problem in Peru, he considered, is not the tax rates, but the unpredictable, flexible and friendly nature of the tax system. For his part, Juan Carlos Odar, Director of Phase Consultores, said that the poor performance of the tax system responds to taxpayers who don’t pay, while there are companies that have exemptions or avoid taxes. The former Minister of Production Piero Ghezzi used to say that Peru is good in the macroeconomic part, but bad in microeconomics, and the Doing Business is a sample of it. This, according to Fuentes, is a call for attention to the urgency of having market reforms with a comprehensive vision.