Canada
(Source : High Commission of India, Ottawa)
Products with Export Potential for India - Engineering Goods
Comparative advantage vis-à-vis peers in terms of manufacturing costs, market knowledge, technology and creativity has been a driving force for engineering exports from India. Engineering exports from India stood at US$ 65.23 billion in FY 2016-17. The export of engineering goods grew by 11.33 per cent year-on-year. Top ten importers of Indian engineering products during FY 2016-17 were US (US$ 7.06 billion), UAE (US$ 4.03 billion), Singapore (US$ 2.80 billion), UK (US$ 2.48 billion), Mexico (US$ 2.45 billion), Malaysia (US$ 2.39 billion), Germany (US$ 2.21 billion), Nepal (US$ 2.16 billion), Italy (US$ 2.08 billion) and Bangladesh (US$ 1.99 billion). The EU, ASEAN+2 and North America recorded the highest shipment of engineering products from India, with a share of 21 per cent, 16 per cent and 15 per cent respectively in total engineering exports in FY 2016-17. Capacity creation in sectors like infrastructure, power, mining, oil & gas, refinery steel, automotives, and consumer durables has been driving demand in the engineering sector. Separately, the approval of significant number of special economic zones (SEZs) across the country and the development of the Delhi Mumbai Industrial Corridor (DMIC) across seven States is expected to further bolster the engineering sector.
Source: IBEF, EEPC India
Significant Trends in Trade and Investment
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Details of significant trends
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Analysis
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Canadian exports to India have grown 50% over the past year, while imports from India have only grown 10%. Exports of agricultural products (Edible Vegetables and Certain Roots and Tubers, Fertilizers) to India have enjoyed a significant leap, and make up the largest share of exports. Due to Alberta’s oil sands, mineral fuels are the 2nd largest export and witnessed the third highest growth rate. Mineral fuels are also Canada’s largest export to the world. On the other hand, HS 26 - Ores, Slag and Ash, experienced the biggest drop in exports to India with a -54.29% decline. In terms of imports from India, HS 84 - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances, experienced the biggest decline of -25.63% while HS 27 - Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes had the largest increase of 50.25%.
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Canada’s total trade balance with India has historically been very low, and the trend has been continuing this year. The total trade balance, including exports and imports, is less than 1% of Canada’s total global trade balance. This is despite the significant 50% growth in exports over the past year. Canada’s exports to India have grown fivefold over its imports from India from the corresponding period last year. By contrast, its growth in worldwide exports is only double that of the growth in its worldwide imports. Canada clearly enjoys a surplus in trade with India, but India is only a minor trade partner of Canada.
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Peru
(Source : Embassy of India, Lima)
Opportunities and dangers that Peru face in negotiating an FTA with India (El Comercio : 30/06/2017)- In August, the first round of negotiations will be held in New Delhi for the free trade agreement between Peru and India, the first that the Asian giant signs with a Latin American economy. If India seeks to re-export to markets like the United States, it would have to comply with the rules of origin of the agreements already signed by our country. If this is the case, it is possible that India will invest or take advantage of Peru`s manufacturing capacity to move towards new destinations. However, such a strategy may not be as favorable as it would have a lower economic impact on Peru`s industrial development. However, Jessica Luna, General Manager of Cómex-Perú, who is confident that the negotiation will result in a reduction or elimination of tariffs, which in the case of coffee and grapes - main non-traditional export products of Peru – are 56.3% and 30.8%, respectively. Luna also bets that tariffs will be lowered for gold and copper, which today enter India with 7.6% of tariff.
Peru promotes investment, trade and tourism in India (News Report in Andina : 22/06/2017) - As part of investment, trade and tourism promotion efforts, Peru`s Embassy in India recently organized "India-Latin America & Caribbean Partnership Conclave on Trade and Investment," the Foreign Affairs Ministry informed. The activity was developed in coordination with Latin American and Caribbean Diplomatic Missions and Trade Offices in association with the All India Association of Industries (AIAI) and GRULAC-India. The event served to present Peru`s business opportunities in the said fields to Indian Government authorities, business representatives and investors. It must be noted that Peru-India bilateral trade exceeded US$1.7 billion in 2016.
Tunisia
(Source : Embassy of India, Tunis)
Trade Data - Annual (US$ million)
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Year
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2012
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2013
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2014
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2015
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2016
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2017
Jan-June
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India’s Exports
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380.94
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313.11
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283.92
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239,5
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249.06
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141.3
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India’s Imports
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181.70
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85.77
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148.45
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100,75
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121.4
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60.6
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Total
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562.6
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398.9
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432.37
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340.25
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370.46
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201.9
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(Source: National Institute of Statistics, Tunis)
India Tunisia Joint Venture : US$450 million was launched in 2006 in Tunisia for manufacturing Phosphoric Acid. Its production started in 2013. Two Indian companies Coromandel Fertilizers Ltd and the Gujarat State Fertilizers Ltd have 30% shares in the project. In the TIFERT board meeting held in Tunis on 19 July, Indian representatives of Gujarat State Fertilizers and Chemicals and Coromandel International participated and discussed TIFERT’s indebtedness.
Other Projects : Indian companies M/s KEC International Ltd and Jyoti Structures Ltd have a presence in Tunisia for erection of electric transmission lines. An assembly plant of Mahindra pickup trucks is established in Tunisia with a target to produce up to 2500 trucks per year. Indian Auto Company, Mahindra and Mahindra, provides the vehicles as knocked-down kits, to be assembled by the Tunisian company, with full technical support from the Indian company. Mahindra has further diversified its product portfolio by introducing SUV class vehicles. M/s TATA Motors have commenced assembly of pick-up trucks with Tunisian companies ‘Le Moteur’ and ‘Icar’ in June 2015.
Thailand
(Source : Embassy of India, Bangkok)
Indian Ambassador Raises Relations with Asean
Mr. Bhagwant Singh Bishnoi, Indian Ambassador to Thailand, joined the seminar ASEAN-India Expo and Forum to celebrate 25th anniversary of Asean and India and 70th anniversary of Thailand and India’s relation. He said that it is important to focus on cultural cooperation since it is a significant aspect and it will connect people together. At the same time, it is crucial to develop investment. India and Thailand have negotiated in various topics. Furthermore, he discussed about port investment to support international trading.
Venezuela
(Source : Embassy of India, Caracas)
Potential products of exports for India
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S.No.
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HS codes
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Description
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Rationale
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1
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3000000000
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Pharmaceutical products
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Venezuelan pharmaceutical industry is severely affected by the lack of private investment and relies heavily on the imports for drugs and pharmaceuticals. India, is one of the leading manufacturers and exporters of pharmaceuticals in the world, and enjoys acceptance in the Venezuelan market due to its quality and competitive prices.
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2
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8708000000
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Auto- parts
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India is one of the top manufacturers of auto-parts in the world. Venezuela is in dire need of auto-parts for all kind of Vehicles.
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Venezuela replaces Iran as India’s key oil supplier : Venezuela sold 137,000 bpd to Essar in June – up 107 percent from May (66,000 bpd), it was reported. Oil Minister Shri Pradhan, said state oil refiners import oil as per commercial and operational consideration. India`s state refiners have cut oil import plans from Iran by a quarter in the year to March 2018, it was reported earlier.
Venezuela and India to up investment in energy sector : Despite the ongoing crisis in Venezuela, New Delhi and Caracas are continuing their joint investments in the energy sector. PDVSA and ONGC have agreed to further invest in the San Cristobal joint venture over the next few years to increase production. In 2016, the two companies had signed a contract to increase production in the Orinoco Oil Belt worth US$ 318 million and this year the first high pressure water pump was inaugurated. Diplomatic sources said that India continues to be one of the largest buyers of Venezuelan crude. Over, 400,000 bpd continues to be procured by Indian companies. The other Oil JV in Venezuela with participation of Indian firms (OVL, IOCL and Oil India) is expected to do better as infrastructure in the area develops and the economic situation in Venezuela improves, it was reported. In the past, India has refrained from commenting on domestic affairs of other countries that do not directly affect its own geopolitical and economic interests. Responding to a question, Augusto Montiel, the ambassador of Venezuela to India told FE: “Through the legally constituted National Constituent Assembly (NCA), the framework for a more efficient and dynamic climate of direct foreign investment can be consolidated. The number of persons that voted for peace and stability in the NCA in the election can only benefit the India-Venezuela bilateral relationship. There have already been great advances in oil cooperation between Venezuela’s PDVSA and Indian companies.” “The internal stability the NCA will bring to the country is beneficial for India, as Venezuela continues to be a safe and stable provider of oil and other products.”