Bosnia and Herzegovina
(Source : Embassy of India, Budapest)
Significant trend in trade & investment
Trade in Goods BiH importsfrom India
Commodity - 8414 Air or vacuum pumps (excluding gas compound elevators and pneumatic elevators and conveyors);
Analysis - The product group grew by 2.2% in the Jan-Mar period of 2020 over the same period of 2019 to USD 2.8 mln. It represents 14.9% of Imports from India to BiH.
Ethiopia
(Source : Embassy of India, Addis Ababa)
Total trade in goods
According to the Department of Commerce, Government of India trade data, India’s total trade with Ethiopia stood at US$ 207.91 million during April to July 2020, out of which India’s exports to Ethiopia were US$ 196.45 million and imports were US$ 11.46 million. Among India’s top exports to Ethiopia consisted mainly of primary and semi-finished iron and steel products, drugs and pharmaceuticals, machinery and instruments, manufactures of metal, etc. Major imports by India from Ethiopia were: semi-precious stones, pulses, leather, oil seeds and vegetables & seeds.
Details of Significant trends
The major destinations for Ethiopian exports were Asia, Europe and Africa. Asia accounted for 38.9 percent of the total exports with Saudi Arabia being the main destination for Ethiopia’s exports having a 18.8 percent share, followed by United Arab Emirates (16.1 percent), Israel (12.3 percent), Japan (8.6 percent), China (7.9 percent), Singapore (5.6 percent), South Korea (5.4 percent), India (3.8 percent), Indonesia (2.5 percent) and Yemen (2.3 percent).
During the third quarter of 2019/20, Asia accounted for 56.6 percent of the total imports of Ethiopia with the major imports coming from China (43.6 percent), India (14.0 percent), U.A.E (9.4 percent), Kuwait (6.9 percent), Saudi Arabia (5.9 percent), Singapore (5.5 percent), and Indonesia (3.9 percent).
Analysis - The data shown is taken from the National Bank of Ethiopia 2019-20 Third Quarter (January- March 2020) Report which does not reflect data for September 2020. However, India remained its third most important source of imports for Ethiopia, contributing 8% of all of Ethiopia’s imports next to China, Kuwait and USA. Indian contributed 1.6% of Ethiopia’s export to the world.
Greece
(Source : Embassy of India, Athens)
Details of significant trends - According to latest available data on bilateral trade by the Hellenic Statistical Authority, processed by the Export Research Centre (KEEM), in January-June 2020 Greek imports from India was 193.0 million Euro (decreased by 8.0% as compared to January-June 2019 when it was 209.9 million Euro) and Greek exports to India in January-June 2020 was 31.8 million Euro (decreased by 26.3% as compared to January-June 2019 when it was 43.1 million Euro).
Analysis - According to latest available data by the Hellenic Statistical Authority, the total value of Greek imports for the 6-month period from January to June 2020 in comparison with the corresponding period of the year 2019, amounted to Euro 22,979.4 million, decreased by 15.5%. The total value of Greek exports for the 6month period from January to June 2020 as compared to January-June 2019 amounted to Euro 14,609.9 million, decreased by 12.2%. Greek food exports have increased in the first five months of the year, against a downturn in global trade and capitalizing on an image of health and wellness associated with Greece and the Mediterranean Diet. According to the latest official data, Greek food exports in the five-months (Jan-May 2020) increased by 10.2%, as compared to the same period last year, amounting to €2.12 billion, even as overall Greek exports were decreased due to the coronavirus pandemic.
Trade in Services - Greece is launching a new online platform and registry of innovative start-ups– Elevate Greece− amid growing foreign interest in the country’s fast developing tech sector. The platform will serve as a portal to Greece’s start-up ecosystem, helping channel public assistance and investors to eligible companies. Greece is also raising the tax credit for R&D funding to 100% from 30%.
Analysis - In the last two years, global tech and life science giants have been investing both in Greek start-ups and new R&D facilities to tap the country’s software and engineering talent. This year, U.S. tech giants Applied Materials and Microsoft acquired Greek tech companies Think Silicon and Softomotive. In early June, U.S. conglomerate Cisco Systems announced an international innovation and digital skills development centre in Thessaloniki following a similar move by pharmaceutical company Pfizer. In the past two years, multinationals like electric vehicle maker Tesla and consultancy EY have also invested in new Greek R&D facilities. According to an EY survey, 15% of foreign direct investment into Greece over the last three years was directed at the technology sector.
Ambassador presented his Letter of Credence to the President of the Hellenic Republic, H.E. Katerina Sakellaropoulou, on July 29, 2020. Thereafter, Ambassador discussed our traditionally strong bilateral relations, and the further strengthening of our partnership particularly in the fields of economic, commercial and trade with the Hellenic President. Deputy Minister of Economic Diplomacy & Extroversion, Ministry of Foreign Affairs Kostas Fragogiannis was also present.
Ambassador held a meeting with James Mimikos, Board of Director of Public Relations, Greece-India Business Association (GIBA) on July 31, 2020 in the Embassy of India, Athens to discuss the areas of cooperation in the fields of commercial and trade.
The 15th Summit between India and the European Union (EU) was held in virtual format on 15th July 2020. Among others, it was agreed to further develop trade and investment relations to unleash full potential particularly in the context of post-Covid-19 economic recovery and support sustainable growth and jobs on both sides. India and the EU reaffirmed their commitment to work towards balanced, ambitious and mutually-beneficial trade and investment agreements, opening markets and creating a level playing field on both sides. It was also agreed to establish a regular High-Level Dialogue at ministerial level to provide guidance to the bilateral trade and investment relations and to address multilateral issues of mutual interest. The High-Level Dialogue will aim at fostering progress on the trade and investment agreements, addressing trade irritants and improving conditions for traders and investors on both sides as well as discuss supply chain linkages. India and the EU agreed to keep the global trading system open, with the WTO as the bedrock of the rules-based multilateral trading system and to step up cooperation to preserve, strengthen and reform the WTO. Their cooperation should address today’s challenges effectively, including post-COVID19 economic recovery efforts with the objectives of a sustainable, socially just and resource efficient economy. They will work together to make the twelfth WTO Ministerial Conference a success yielding concrete results in this regard. The leaders of both sides welcomed the G20.
Action Plan to support the global economy and underlined the need to assist the most vulnerable countries. India and the EU will enhance coordination on global economic governance, notably in the framework of the G20. They will continue working together to promote debt sustainability, including in the G20. The leaders of both sides adopted the “India-EU Strategic Partnership: A Roadmap to 2025” to guide cooperation between India and the EU over the next five years. They welcomed the signing of the India-EURATOM Agreement on research and development cooperation in the peaceful uses of nuclear energy. They also adopted a Joint Declaration on Resource Efficiency and Circular Economy and welcomed the upcoming renewal of the India-EU Science and Technology Agreement for another five years. They agreed to reconvene for the 16th India –EU Summit in 2021. Full Joint Statement of the 15th India-EU Summit is available with the following link: https://euindiachambers.com/joint-statement-of-the-15th-india-eu-summit-july-15-2020/
In July 2020, works began on the redevelopment of the old Athens airport at Hellenikon marking the start of an enormous construction project that will transform the coastline south of the Greek capital into one of the world’s premier destinations. The 600-hectare site– an area three times the size of Monaco– will be turned into a mixed-use complex of hotels, residences, offices, shopping centres and recreational facilities that will include a giant urban park encompassing roughly two-thirds of the area. The €8 billion project is seen as the largest urban redevelopment project in Europe. Construction is expected to take at least 10 years, create 10,000 jobs during the building phase, 75,000 permanent jobs thereafter, and contribute 2.4% to Greece’s GDP.
Greece will receive €72 billion in financial support under the European Union’s €750 billion recovery fund to help member-states cope with the economic fallout from the coronavirus pandemic.
The Greek government has announced a further €3.5 billion support package through September for workers and businesses affected by the pandemic.
Greece’s privatization program has contributed about €1 billion annually to the country’s GDP over the period 2011-2019, according to a study by the Foundation for Economic and Industrial Research (IOBE). Over the same period, the average impact on employment was close to 20,000 full-time jobs.
Greece’s Tourism Ministry has launched a new campaign and website– “Destination Greece. Health First”– signalling the country’s commitment as a safe holiday destination. The campaign’s accompanying website, Greecehealthfirst.com, includes information on the health protocols Greece has implemented to combat the coronavirus outbreak. More than six in 10 companies say Greece is an investor-friendly place and the country is working hard to attract foreign investment, according to a new survey by business consultancy EY. The survey, released at the Invest GR Forum, also showed that an overwhelming majority of respondents, 69%, expect Greece to improve further as an investment destination over the next three years, far outpacing expectations for the rest of Europe.
Hungary
(Source : Embassy of India, Budapest)
Potential products of imports from India
Commodity - 901920 Ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus Hungary for the month imported this product from the World in the value of USD 245.8 mln,
Rationale - Hungary for the month imported this product from the World in the value of USD 245.8 mln, while imports from India to Hungary were nil.
Commodity - 851770 Parts of telephone sets, telephones for cellular networks or for other wireless networks and of other apparatus for the transmission or reception of voice, images or other data, n.e.s.
Rationale - Hungary for the month imported this product from the World in the value of USD 134.4 mln, while imports from India to Hungary were 0.1 mln.
Commodity - 852990 Parts suitable for use solely or principally with transmission and reception apparatus for radio-broadcasting or television, television cameras,digital cameras, video camera recorders, radar apparatus, radio navigational aid apparatus or radio remote control apparatus, monitors and projectors, n.e.s. (excl. for aerials and aerial reflectors of all kinds).
Rationale - Hungary for the month imported this product from the World in the value of USD 120.1 mln, while imports from India to Hungary were nil.
Overview of General Barriers to FDI in Hungary
Regulatory barriers and administrative burden are affecting all sectors but particularly energy, construction, and banking: The overall administrative burden, including start-ups, negatively affects investment decisions. The instability of the regulatory framework, with frequent and unpredictable regulatory changes, creates uncertainty for investors and is hindering both internal investment and FDIs. The Hungarian government imposes a 100% offset requirement for defined sector investments over HUF 1bln (€2.8 mln). Efficiency of procedures in construction and environmental permitting is insufficient, while corruption raises risk for investors. There is no requirement that investors must purchase from local sources, but the EU Rule of Origin applies.
Ownership restrictions (all non-EU)
According to the 2014 Land Law, only private Hungarian or EU citizens resident in Hungary with a minimum of three years experience of working in agriculture or holding degree in agriculture can purchase farmland, which is limited to 300 hectares. All others may lease farmland. All farmland purchases must be approved by a local land committee and Hungarian authorities, local farmers and young farmers must be offered a chance to purchase the land first. Up to 1200 hectares for a maximum of 20 years may be leased.
Price controls in Consumer facing sectors and others considered to be of strategic importance
The Hungarian government regulates the prices of certain goods, setting the upper and lower limits to which the private sector must adhere. Sectors include energy, pharmaceuticals. Cuts on regulated utilities prices have put considerable pressure on private utilities companies, decreasing profit margins and adding to an increasingly difficult operating environment.
State intervention in Banking, energy, agriculture, media, telecommunications, and retail sectors
Since 2012 government has invested in state-owned enterprises with the objective of lessening the participation of foreign-owned competitors, especially in the energy sector. Recent additions from 1 Jan 2019 include the chemical industry, the telecom sector, vehicle construction, metallurgy, optics and electric equipment production, the defence industry, water and sewage management, the financial sector, food industry and agriculture, production of construction materials, state administration, health care, wage management, transport and tourism sectors. Foreign investors in the targeted sectors have expressed concerns that the tax regime has become unpredictable and the additional levies appear to have been aimed against some industries with a high level of foreign ownership.
Basic Rules of the Protection of Strategic Assets Concerning Foreign Investments
The European Commission has issued Communication 2020/C 99 I/01 in which it has given guidance to the Member States of the EU concerning the protection of Europe’s strategic assets from the foreign direct investment, ahead of the application of Regulation (EU) 2019/452 (FDI Screening Regulation) which is applicable from 11 October 2020. Hungary first adopted FDI screening mechanisms by Act LVII of 2018 for FDIs violating the security interests of the country, then in the economic crisis caused by COVID-19, further screening rules were adopted for FDIs by Government Decree nr. 227/2020. (V.25.). According to the above, certain transactions concerning Hungarian-seated companies operated in strategic sectors by foreign investors shall be reported to the Minister of Finance and the acknowledgement of the Minister of Finance is necessary for the realisation of the acquisition of the shares until 31 December 2020. These transactions include the acquisition of shares, the increase of the registered capital and the transformation of the company. The strategic sectors specified by the Government Decree include energy, communication, finance, agriculture and food industry, healthcare, construction, transport industry, tourism, IT, mechanical engineering, etc. Those foreign investors that have shares in a company registered in the EU, European Economic Community or in Switzerland shall only report the transaction if majority interest will be acquired indirectly. Conversely, the foreign investors wishing to acquire shares in a Hungarian company directly has to report any transactions by which the foreign investor would acquire shares at a ratio of at least 10% and the value of the investment is at least 350 000 000 HUF (appx EUR 1 mln). The Minister of Finance has 45 days or in specific and duly justified cases 60 days to decide on the acknowledgement of the transaction. Should the Minister provide a negative decision, then the exact reason of the prohibition is not required to be mentioned. The review of the prohibiting decision can be initiated at the Metropolitan Court.
Banking, agriculture, defence and energy
The Hungarian government has publicly declared that reducing foreign bank market share in the Hungarian financial sector and tightening regulations governing NGOs are key priority areas. Several state-led initiatives over the past several years targeted the banking sector and reduced foreign participation.
Significant trend and investment
Commodity - 8411 Turbojets, turbopropellers and other gas turbines
Analysis - The product group increased by 60.4% in the Jan-June period of 2020 over the same period of 2019 to USD 9.7 mln. It represents 4.5% of Imports from India to Hungary.
Commodity – 8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472, n.e.s.
Analysis – The product group fell back by 40.1% in the Jan-June period of 2020 over the same period of 2019 to USD 12.6 mln. It represents 5.8% of Imports from India to Hungary.
Commodity – 8708 Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s.
Analysis – The product group increased by 14.6% in the Jan-June period of 2020 over the same period of 2019 to USD 8.5 mln. It represents 3.9% of Imports from India to Hungary.
Information dissemination
India Subcontracting Expo EEPC 29 Sept 02 Oct 2020 subsequently changed to 27-30 October, 2020
Information on the event was circulated on 17th Sept and 28th Sept to the Ministry of Foreign Affairs and Trade (MFAT), the Hungarian Engineering Associations MMK, MAGEOSZ, Hungarian Chambers of Commerce and Industry (HCCI), Budapest Chamber of Commerce and industry (BCCI), Hungarian Investment Promotion Agency (HIPA), Hungarian Export Promotion Agency (HEPA) Information on the event was placed on the website of the Mission.
Republic of Korea
(Source : Embassy of India in Seoul)
Significant trends in trade and investment
Trade - During January-August 2020, Republic of Korea’s exports inched down -10.6 percent to USD $322.98 billion. Imports also inched down -10.3 percent to $303.96 billion. The trade surplus stood at $19.02 billion. In August 2020, South Korea’s export recorded $39.57 billion with -10.1 percent decrease and import stood at $35.74 billion with -15.8 percent decrease. South Korea recorded trade surplus of 3.83 billion alone in August 2020.
Bilateral trade between January-August 2020, Korea exported $7,012 million to India with -34.3% decrease and imported $3,303 million with -9.6% decrease. Bilateral trade amounted to $10,315 million and South Korea recorded trade surplus of $3,220 during the period. In August 2020, Korea’s export to India marked $860 million with -33.1% downturn and import from India amounted to $370 million with -20.4% downturn.
Analysis - Korea’s August exports recorded single-digit decline for the second consecutive month despite having fewer working days (down 1.5 days). Daily exports decreased by 3.8 percent, the smallest decline since the outbreak of COVID-19.
Trade, Industry and Energy Minister Mr. Sung has stressed the second wave of the virus, the US-China trade dispute and the low oil prices Six out of 20 major export items saw growth, which are semiconductors, computers, bio-health products, cosmetics, home appliances, and robots.
Although Korea’s export to all major regions saw decreases, it continued a trend of recovery. Decrease in Korea’s export to India was on weak petrochemicals, steels, general machinery, and auto parts.
Investment - Total investment made by Korea to India amounted to $362 million during January-June 2020, latest data as of September 2020. Majority of the investment came from manufacturing and real-estate activities, followed by electricity, gas, steam and air conditioning supply. Cumulative investment since 1980 stands at $6.79 billion.
S. Korea, India agree on closer cooperation on int`l security issues
South Korea and India agreed to strengthen cooperation on international affairs, including disarmament and nonproliferation, during a virtual meeting between senior diplomats. The two sides agreed to hold related consultations on a regular basis and strengthen "communication" on multilateral diplomacy, including the Conference on Disarmament the First Committee of the UN General Assembly.
Samsung, LG target India`s surging online market
Samsung Electronics and LG Electronics have been expanding into India`s fast-growing online market to diversify their sales channels amid the prolonging COVID-19 pandemic. They are beefing up their e-commerce sales channels at a time when India`s online market has been experiencing an explosive growth in the wake of the virus pandemic, prompting consumers to purchase their goods online.
(Source : The Korea Times, Yonhap)
Any other issue of importance
Advantage Pharma: Creating India-ROK Synergies in the Post COVID-19 Era
In furthering India-ROK’s bilateral cooperation under the pharmaceutical and bio-pharma sector, the Mission has hosted online interaction “Advantage Pharma: Creating India-ROK Synergies in the Post-COVID19 Era”. Mission worked with both countries’ major pharmaceutical association in creating more meaningful cooperation platform, with India’s Pharmaceutical Export Promotion Council of India (Pharmexcil) and Korea’s Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA). International Vaccine Institute (IVI) Director General has been also invited to give remarks and shared the importance of India-ROK cooperation under the sector. Presentations have been made from four of India’s major pharmaceutical companies on the following pharma sectors; Vaccine, Bio-pharma &CRO/CDMO, API, and Generics. From Korean side, GC Cell, one of top pharma companies in Korea, shared their experience with Indian market. After the presentation session, Mission had arranged B2B meetings with India-ROK companies in furthering the cooperation. Total of 14 B2B meetings have been made with around 140 participants attending the presentation session.
Hanwha Defense exported to around the world
More than 600 units of the K9 artillery gun have been sold to nations around the world. Amid favorable reviews from buyers, Hanwha Defense is expected to receive additional and new orders for the K9. India is highly likely to import more K9 artillery guns. In India, the K9 is produced locally. India’s additional demand is expected after 100 units are delivered by the end of 2020.
Daewoong Pharmaceutical to Test COVID-19 Drug with India
Daewoong Pharmaceutical signed licensing and joint development agreements with Mankind Pharma, the third-largest pharmaceutical company in India, so that the trials can be expedited and the substance can be supplied without delay. Daewoong Pharmaceutical India and Mankind Pharma will be in charge of the first phase. The second and third will be carried out by Mankind Pharma.
(Source: Korea Herald, Business Korea)