ETHIOPIA
The Ethiopian Investment Commission stated that Ethiopia has attracted Foreign Direct Investments (FDI) worth US$1.2 billion in the first half of the current financial year (2016-17). FDI inflows in first half of the current financial year showed a slight reduction compared to the same period last year. The country has targetted to attract FDI worth close to US$1.5 billion in the same period. Total FDI in Ethiopia in the 2015-16 fiscal year was US$2.2 billion.
Ethiopian Airlines is opening new cargo routes and passenger services to Ahmedabad and Chennai, as well as increasing the capacity of flghts to Delhi, as part of the Airline’s epansion in India, a growing and strategic market for the company. The Airline carries on flights twice daily to Mumbai and Delhi. It plans to upgrade its flight to Delhi from the existing Boeing 737 to the Boeing 767 and 787 services, adding 100 seats to the route. The Airline flew about 200,000 passengers to and from India and a 30% share of the India-Africa air traffic. The company is expecting a 15% increase in passenger traffic and a 6 to 8 percent growth in cargo traffic from India. Ethiopian Airlines has made a net profit of US$278 million in the 2015-16 fiscal year ending June 2016.
(Source : Embassy of India, Addis Ababa)
LIBYA
Bilateral Trade
Exports by India to Libya during the period 2015-16 stood at US$ 122.58 million and India’s imports from Libya went down to US $ 8.86 million. Thus the trade decreased substantially mainly because of civil strife in Libya and decrease in oil production due to militia fighting and perennial strikes.
(Values in US $ Millions)
|
S.No
|
|
2011-2012
|
2012-2013
|
2013-2014
|
2014-2015
|
2015-2016
|
|
1.
|
EXPORT
|
60.98
|
215.30
|
287.20
|
163.74
|
122.58
|
|
2.
|
IMPORT
|
38.33
|
1,834.80
|
451.54
|
70.14
|
8.86
|
|
|
TOTAL TRADE
|
99.31
|
2,050.10
|
738.74
|
233.88
|
131.44
|
The main items of India’s exports to Libya are transport equipment, processed minerals, machinery & instruments, coffee, drugs & pharmaceuticals, natural silk yarn, fabrics, and other commodities. The main item of India’s imports from Libya is petroleum (crude and products).
(Source : Embassy of India, Tripoli)
MAURITIUS
Potential products of exports for India / Potential sectors for Indian investment
- According to Mauritius Research Council (MRC), promising opportunities exist for exploitation of offshore wind energy in Mauritian waters.
- FDI magazine has selected the Mauritius Freeport as one of the winning Free Zones for its continuous growth and leading initiatives in the following categories:
1. Best Free Zone Overall in Sub-Saharan Africa
2. Highly Commended Free Zone in Africa
Mauritius has been commended for its excellent infrastructure for storage of goods, including cold-room, facilities for the storage of food and vault services for precious commodities, such as gold, silver and platinum. Moreover, investors establishing in the zone retain 100% foreign ownership and are exempted from corporate tax.
Bilateral Investment (Source: Bank of Mauritius)
Foreign Direct Investment from/to India: 2008 to 2015 (Annual) and 1st three Quarters of 2016
(Excluding GBC1s) (US$ Mn.)
|
Year
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
|
Indian FDI in Mauritius
|
67
|
10
|
94
|
17
|
23
|
2.5
|
4.8
|
2.4
|
1.19
|
|
Mauritian FDI in India
|
1
|
0
|
33
|
2
|
10
|
0.1
|
-
|
0.8
|
0.08
|
MoU
A Memorandum of Understanding (MoU) between India and Mauritius on the implementation of projects under Government of India grant assistance of US$ 353 million was signed by the High Commissioner of India H.E. Mr Abhay Thakur and Hon. Pravind Kumar Jugnauth, the then Minister of Finance and Economic Development & now Prime Minister, Minister of Home Affairs, External Communications and National Development Unit, & Minister of Finance and Economic Development, on 14 November 2016 at the Ministry of Finance and Economic Development, Port Louis. The projects being funded under the MoU include the Metro Express project, a new Supreme Court building, Social Housing project, supply of Digital Tablets to primary schoolchildren and an ENT Hospital. On this occasion, both sides reiterated their determination to ensure speedy implementation of these projects.
(Source : High Commission of India, Port Louis, Mauritius)
PERU
FTA with India
India is one of the most important emerging powers in the world, and will represent 15.1% of the world’s GDP by 2050. By signing a FTA, Peru would position itself as one of the first countries in the region to reach that level of trade integration.
Bilateral trade between both countries has grown at an average annual rate of 14.8%. From January to November 2016, Peruvian exports to India amounted USD 772.6 million, growing by 36.3%, a greater growth than the ones reached with China (12.2%) and the USA (20.1%). On the other hand, Peruvian imports from India totaled USD 736 million, 2.2% of total Peruvian imports from the world. Main imports are vehicles, laminated products, textiles and medicines.
The main benefit of the FTA between India and Peru will be the increase of investment flow and reduction or elimination of tariffs, since some products have to pay high tariff rates such as copper and gold (7.8%), coffee (56.3%), and grapes (30.8%).
[Source: COMEX PERU January 23-29, 2017]
From Peru to India
According to the Director of the School of Business and International Business of San Martin de Porres University, India is one of the most important emerging economies in the world. According to the World Bank, India has an annually growth rate of 7.3%. Currently, Peruvian exports to India (2016) were USD 772.6 million. Trade Balance between Peru and India in 2016 was USD 1.6 billion, USD 953 million on imports and USD 678 million on exports. Main products exported to India are agricultural goods, minerals, iron, copper, fertilizers, zinc, fishmeal and furs. And Peru’s main imports from India are electronic equipment, machinery, auto parts, textiles, footwear and plastics.
(Source : Embassy of India, Lima)
Bilateral Trade News
Russia-India
TechnoNICOL co-owner may invest $60 million in Indian plant
Sergei Kolesnikov, co-owner of Russian roofing materials manufacturer TechnoNICOL, has signed a memorandum on construction of a U.S. $60 million plant in India near city of Visakhapatnam.
The memorandum envisages construction of a cluster for production of hydro- and heat insulating materials. Investments will be split into three stages of $5–7 million, to $10–15 million and to $20–40 million. The main parameters of the project are being defined now, the company said. Mr. Kolesnikov will invest his own funds in the plant.
Russia, India prepare 20 priority invest projects
Russia and India have prepared 20 high-priority investment projects which will be supported by the governments of the two states. A workshop choosing the investment priorities was earlier established in the framework of the intergovernmental commission. And 20 priority projects have been chosen, 10 Russian and 10 Indian ones, in such areas as road equipment making, chemicals production, aircraft and pharmaceuticals manufacturing.
Russia, India develop Uranium enrichment cooperation
Russia has started producing components for nuclear power plants in India and the countries are strengthening the technological partnership in Uranium enrichment.
Sistema and Tata to create smart city project in Indian state, Andhra Pradesh
Russian multi-industry holding Sistema and Indian giant Tata Group are designing a draft of a smart city system for a new capital of the Indian state of Andhra Pradesh, which is under construction.
Russian Railways may participate in Indian rail project
Russian Railways can take part in construction of sections of a railroad in India from Delhi to Mumbai. Russian companies will be able to supply tracks for Indian rail projects.
RDIF signs deal on $1 billion joint fund in India
The Russian Direct Investments Fund (RDIF) and the National Indian Infrastructure Fund signed an agreement to establish a U.S. $1 billion fund to invest in Indian projects.
The partners will invest $500 million each in the fund in order to invest in Indian projects together with Russian companies. The focus is on projects of Russian companies in India, including expansion of exports and localization of production of Russia’s major truck maker Kamaz, projects of Russian Railways, and exports of Russian Helicopters. But the fund may also support projects in other BRICS countries. RDIF and the New Development Bank BRICS are discussing construction of hydropower plants in India.
The RDIF is building small hydropower plants in Russia together with the United Arab Emirates, Saudi Arabia, Kuwait, and China with financing from the BRICS bank. The fund now plans to expand construction of the plants to India together with its partners and the bank, he said. He also added that Indian companies and investors are very interested in participation in privatization of Russian state companies.
Russia, India sign trade green corridor setup
Russia and India have signed a protocol on establishment of a green corridor in trade and the pilot project can be launched within several months. This would establish of a so-called green bilateral corridor between India and Russia. The idea is to provide documentation allowing the parties to trade with each other with minimal barriers. Green corridor principle is planned to be applied in all major trade ports of Russia and India. India is ready for a practical cooperation with the Eurasian Economic Union (EEU).
(Source : Embassy of India, Moscow)
SAUDI ARABIA
OVERVIEW
During the current financial year (April-September), the value of India Saudi Arabia bilateral trade dropped to USD 12.01 billion, a decrease of 19.34% over the corresponding period in previous year (USD 14.89 billion). During this period, Indian imports from Saudi Arabia decreased by 18% to 9.34 billion from USD 11.39 billion whereas Indian exports to Saudi Arabia decreased by 23.71% to USD 2.67 billion from USSD 3.50 billion in the corresponding period last year.
In 2015-16, the bilateral trade decreased to USD 26.71 billion registering a 31.98% fall from USD 39.27 billion in 2014-15, as per figures provided by the Directorate General of Foreign Trade. The decline may be attributed mainly to low petroleum and commodity prices and lower global demand. [During 2015-16, despite a 14.79% increase in quantity of India’s crude oil (HS Code 27090000) imports from Saudi Arabia (39.59 MMT against 34.49 MMT in 2014-15), the same in value terms decreased by 38.13% (USD 13.49 billion against USD 21.80 billion in 2014-15)].
(Source : Embassy of India, Riyadh)