Canada
(Source : High Commission of India, Ottawa)
Products with Export Potential for India
Electrical or Electronic Machinery and Equipment (HS-85) - The total market size of electrical machinery in India is anticipated to reach US$ 100 billion by 2022 from US$ 24 billion in 2013. The electrical machinery sector consists of generation, transmission and distribution machinery. In order to become a global force, Indian machinery sector needs to understand these changes and evolve to serve the user industries with the next generation products through integration of equipment with information technology like autonomous haulage or unmanned vehicles equipped with GPS, CCTV cameras, inertial guidance systems, and leverage dispatch route planning and guidance software for functioning.
Optical, Medical, Photographic, Scientific and, Technical Instrumentation (HS-90) - One of the potential items of India’s exports to Canada must include Optical, Medical, Photographic, Scientific and Technical Instrumentation. US, china and Mexico are the top markets for the import of this HS 2 category. India is not in the top ten. India’s has competitive disadvantages in the Optical, Medical, Photographic, Scientific and Technical Instrumentation market, but it also represents key opportunities for India to improve its position in the global economy through focused innovations.
Significant Trends in Trade and Investment
Details of significant trends - Canada’s total trade with India increased by 13.78% viz-a-viz Jan-June 2018. Canadian exports to India and imports from India both decreased in June 2019 viz-a-viz Jan-June 2018.
Analysis - The total trade with India from Jan-June 2018 was $3.5 billion USD. However, for Jan- June 2019, the total trade is $4.0 billion USD.
Globally, Canadian exports retreated in June 2019. The International sales were down in almost every major product category and to nearly all of Canada’s principal export destinations. With the available half yearly data of 2019, the inference is that it is shaping up to be a weak year for Canadian exporters.
Details of significant trends - India is the 12th largest market for Canadian Imports year to date. For Jan- June 2019, Canada’s total imports from India increased by 3.70% in comparison to Jan- June 2018. Imports decreased from India in June 2019 in comparison to June 2018 by 7.70%.
Analysis - The total import figure of Jan-June 2019 is $2.1 billion USD. However, for Jan- June 2018 the figure was $2.0 billion USD. The Top products of import from India are Nuclear Reactors, Boilers, Articles of Iron or Steel, Organic Chemicals (Including Vitamins, Alkaloids and Antibiotics), Pharmaceutical Products, and Motor Vehicles, Trailers, Bicycles, Motorcycles and Other Similar Vehicles.
Details of significant trends - Overall Canadian global imports decreased by 4.3%, in mostly all categories.
Analysis - Total imports were down in all but two major product categories i.e., farm, fishing and unfinished food products; as well as metal and mineral products. The biggest declines were in aerospace and energy. Aerospace imports were $607 million lower than they were in May 2019 – a 25.8% drop – while energy imports were $474 million lower (14.8%). The decline was noticeable in imports of industrial machinery and consumer goods also. For the second consecutive month, Canadians imported fewer goods from the United States. Imports from the United States fell by 3.8% in June – a decline of close to $1.3 billion. Imports from the US are now at their lowest monthly level since January 2018. There were declines in imports from the EU also in June. Led by a sharp decline in purchases of German goods, EU-sourced imports fell by $702 million compared to May – a decline of 12.2%. Meanwhile, June witnessed a modest increase in imports from Asia. Imports from China, Japan and South Korea were all slightly higher than they were in June.
Details of significant trends - India is the 9th largest market for Canadian exports year to date. For Jan- June 2019, Canada’s total exports to India increased by 27.10% in comparison to Jan- June 2018. The total exports decreased by meagre 0.13% in June 2019 viz-a-viz 2018.
Analysis - The total export figure for Jan-June 2019 was $1.9 billion USD. However, for Jan- June 2018 the figure was $1.5 billion USD. The Top products of export from Canada to India were: Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes, Pearls, Precious Stones or Metals, Coins and Jewelry, Fertilizers, Edible Vegetables and Certain Roots and Tubers, Pulp of Wood and The Like; Waste and Scrap of Paper or Paperboard. The exports in the following categories saw remarkable increase: Aircrafts and Spacecrafts and Edible Vegetables and Certain Roots and Tubers.
Details of significant trends - Canada`s global exports fell by 5.3% in June, reaching a total value of $50.3 billion.
Analysis - The largest decline was in energy exports on a dollar value basis, which fell by $804 million (7.4%) compared to May 2019 followed by the aerospace sector, where deliveries were $744 million lower. However, as the value of aerospace exports is a fraction of oil, gas and other energy products, the $744 million leads into a 25% decline.
However, Canada did make export gains in one important market in June: The United Kingdom. Exports to UK were $296 million higher compared, which represents a partial
rebound from a sharp drop in May. The increase was modest in the markets of Algeria, Indonesia, Peru and Spain.
Canada’s Manulife partners with Mahindra Finance to form Indian joint venture
Canadian financial services group Manulife has agreed to take a 49 per cent stake in the asset management arm of India’s Mahindra & Mahindra Financial Services Ltd for USD 35 million. Mahindra & Mahindra Financial Services Ltd, which operates as Mahindra Finance, will retain a 51 per cent stake in the asset management company. The deal will help Mahindra AMC expand its fund offerings and retail fund penetration in India. It will also combine Mahindra’s domestic market strength with Manulife’s global wealth and asset management capabilities. The Canadian company primarily operates as Manulife globally and as John Hancock in the United States. It had assets under management and administration of over USD 849 billion as of March 31, 2019.
(Source : India Canada Biz Digest)
Tech Mahindra to acquire Canada’s Object-wise Consulting
Information technology firm Tech Mahindra said it will acquire Canada-based Objectwise Consulting Group Inc worth USD 2.1 million. “The Investment Committee of the Board of Directors of the company has approved the proposal to acquire 100 per cent equity shares of Objectwise Consulting Group Inc through a new entity to be formed under its wholly-owned subsidiary viz, Tech Mahindra (Americas) Inc,” Tech Mahindra said. It added that Objectwise would bring with it strong capabilities in implementation and support of Pega software. The transaction is expected to close by July 31, 2019. Incorporated in 1996, Object-wise helps its customers implement PEGA software and designs and builds client relationship management, BPM and customer servicing applications. It also provides consultancy services and helps clients staff their offices with IT personnel across the organisational hierarchy.
(Source : India Canada Biz Digest)
Amazon invests USD 65 million in India payments unit
American retail giant Amazon has infused USD 65 million into its payment’s unit in India - Amazon Pay, according to regulatory documents. The funding comes at a time when companies like Paytm, Flipkart-owned PhonePe, Google Pay and others are making significant investments to tap into the booming digital payments market in India. Many of these firms have been offering significant cashbacks to woo customers to use their platforms to make payments for utilities and shopping. Amazon Pay incorporates a variety of products for buyers and merchants to process online payments. The service is built on the Indian government-backed UPI platform, which is regulated by the Reserve Bank of India. Customers can either send or receive P2P payments by choosing a contact from their phone’s address book or by entering their UPI ID or the recipient’s bank account.
(Source : India Canada Biz Digest)
Foreign investors need India if they want high returns: Manulife Canada
Overseas investors chasing higher returns can’t ignore India’s stocks as its economy ranks among the world’s strongest and bears the fruit of government-led reforms, according to Manulife Asset Management. “As China faces uncertainty after the trade war, money now needs to find a market which is large and growing, and India is among them,” Rana Gupta, MD, Indian equities, Manulife Asset Management Singapore said. “India’s adding a few trillion dollars to the economy and that’s how it obviously generates interest. Amid uncertainty about global economic growth, investors are looking for markets that are driven by domestic demand, have room for lower interest rates and are under a stable government that doesn’t indulge in populist spending. Fortunately, India ticks all the four boxes and looks quite good as an investment opportunity,” he added.
(Source : India Canada Biz Digest)
CPPIB backs IndInfravit Trust’s USD 959 million deal to buy Sadbhav Infra road assets in India
IndInfravit Trust has inked a pact to acquire nine operational road projects from Sadbhav Infrastructure Project Ltd at an enterprise value of about USD 959 million through a combination of cash and allotment of its units. IndInfravit, which has a portfolio of five operational toll road concessions, is sponsored by L&T Infrastructure Development Projects Ltd (L&T IDPL). The infrastructure investment trust’s other unit holders include Allianz Capital Partners, Canada Pension Plan Investment Board (CPPIB) and OMERS Infrastructure. CPPIB will commit up to USD 168 million for the proposed deal. The transaction is in line with IndInfravit’s strategy to acquire additional road projects in India and significantly expands its portfolio. After the deal, Sadbhav Infrastructure will hold not more than 10 per cent units in IndInfravit.
(Source : India Canada Biz Digest)
Brookfield set to acquire a majority stake in India’s Suzlon Energy Ltd
Canada’s Brookfield Asset Management Inc. is looking to acquire a majority stake in wind turbine maker Suzlon Energy Ltd, according to a recent media report. Suzlon has prepared a one-time settlement proposal for its lenders, which includes the stake sale to Brookfield and a considerable amount of waiver of debt. Suzlon is a vertically integrated wind power company. It makes and installs wind turbines and manufactures blades, generators, panels and towers in-house. It is integrated downstream and delivers turnkey projects through its project management and installation consultancy along with other maintenance services. For Brookfield, a deal would expand its presence in India where it has invested or has expressed interest in a range of sectors including infrastructure, hospitality, real estate and renewable energy.
Taiwan
(Source : India Taipei Association, Taipei)
India-Taiwan bilateral trade and investment
In the month of June, total Indian export to Taiwan is USD 162.6 million, which is an decrease of 20.91% as compared to the same period of last year; total Indian imports from Taiwan is USD 317.51 million, which is an decrease of 11.84%. The total volume of trade between India and Taiwan in June 2019 was USD 480.11 million.
In the month of June, the total amount of Indian investment coming to Taiwan is USD 41,000; the total amount of Taiwanese investment to India is USD 773,000.
Important India related statements of commercial significance by political leaders, think tanks, chambers, associations etc.
CPC announced its new investment plan in India on 4 June, 2019 and will set up a liaison office soon in August 2019 to facilitate related operations. CPC Vice President Mr. J.Z. Fang pointed out that CPC has signed MOU with IOCL currently, which is expected to lead Taiwanese companies to invest in the downstream of petrochemical industry in India. Furthermore, the new investment plan will focus much more on the establishment of factories for MMA and PDH production by using materials provided by Indian upstream suppliers.
Wistron Chairman Mr. Simon Lin mentioned about Wistron’s global deployment in its annual shareholders’ meeting on 12 June, 2019. Chairman Lin stated that Wistron’s manufacturing plant in India is multi functioning with lots of local partnerships, and it is also expected that India is going to be the next China in ten years with huge domestic market. Therefore, Wistron will continue aiming at Indian market with its deploying plans.
KYMCO, one of the major Taiwanese motorcycle manufacturers, established its new brand- 22KYMCO in Haryana, India on 14 June, 2019 and is targeting on the Tier 1 cities, including New Delhi, Bangalore, Pune, Hyderabad, Kolkata and Ahmedabad, as its major market and starting point. KYMCO Chairman Mr. Allen Ko stated that KYMCO will further focus on expanding in “Make in India”, investing in the Indian electric vehicle ecosystem and facilitating to establish the infrastructure of charging system in India.
Taiwan’s largest bearing manufacturer- Tung Pei Industrial (TPI) President Mr. Wen-Jie Chen stated in the India Machine Tools Show (IMTOS 2019), held in New Delhi during 14-17 June, 2019, that the strong demand of Indian machine tools market is bring business opportunities to Taiwanese companies, even though the development of Indian machine tools industry is still facing some problems in terms of materials, training of professional talents, high cost of machinery equipment and environmental regulations, etc.. President Chen emphasized that TPI already has its market deployment in India and the Southeast Asia, including its production facilities in Taiwan, Shanghai and Indonesia.
Taiwan Association of Machinery Industry (TAMI) Chairman Mr. Alex Ko said that TAMI is planning to lead a business delegation to India in the second half of 2019, due to the huge business opportunities created by the US- China trade dispute, during which lots of companies located in China are relocating or establishing their second production plants in India, and thus the demand for machinery equipment in India is raising. Furthermore, Chairman Ko mentioned that India is a huge market for Taiwanese machinery companies with its large young population and sufficient labour force.
TECO Chairwoman Ms. Sophia Chiu mentioned in TECO annual stakeholders’ meeting that TECO is planning to establish its third manufacturing facility in Bangalore for motor production. Chairwoman Ms. Chiu also pointed out that it is expected to enter and target on the Indian domestic market in the second half of 2019, due to the successful application for the trade license with TECO’s annual production capacity of 50,000 motors in India.