Potential products of exports for India
Rationale - 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 $ 30.3 billion in April-September 2016. The EU and North America recorded the highest shipment of engineering products from India, with a share of 21 per cent and 15 per cent respectively in total engineering exports in April- September 2016. 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 : High Commission of India, Ottawa)
The Government of Peru has issued Supreme Decree No.006-2017-RE exonerating requirement of visa for Indian nationals for tourism and business purposes. This exemption is applicable only for those Indian nationals who have valid visa or are residents of either US, Canada, UK, Australia or any Schengen member country for a period of stay of 180 days in a calendar year. The measure will come into force from March 27, 2017. This opens up the door for visa free entry of Indian businessmen into Peru having a minimum validity of 6 months of any of the above visa.
Renewable Energy: a great opportunity for Peru in 2017
According to the Bloomberg New Energy Finance report, the conditions for investment in clean energy are presented in 58 developing countries in Africa, Asia and Latin America. In the report’s ranking, Chile is at the top followed by China and Brazil, and Peru occupies position 16 in the world ranking, but 4th for South America. Also, Peru ranks 9th as attractive destination in the world for investment on hydroelectric projects and 11th for geothermal energy projects.
The ranking is composed of 4 indicators: i) enabling framework; ii) investment and financing; iii) value chains, and iv) green-house gas management activities. The first refers to the regulations, structure and market conditions (Peru´s position is 20th). The second takes into account innovation in renewable energy, as investors are reluctant to invest in technologies little explored (23rd). The third considers all key elements for value chains (24th). Finally, the fourth indicator refers to the state, risk and potential of compensation projects by carbon emissions, (5th).
Also, Peru is one of the few countries in Latin America that has a mandatory renewable energy objective, which is reviewed every 5 years. On the other hand, the capacity of renewable energy generation has increased significantly in the last decade; however, 70% of this growth was concentrated in small-scale hydroelectric plants. Therefore, Peru needs to build significant value chains for other technologies. Peru’s energy potential is high and the climate for investments is quite good.
Peru’s sources for power are mainly Natural gas (53.1 %), for which the process of extraction is highly contaminated. According to the Ministry of Energy, they are working on projects to boost the investment in other power sources as wind, solar and biomass in order to reduce the pollution and also taking advantages of the reduction in costs of technologies for clean energy.
Mincetur initiates first technical meetings to sign Peru - India Trade Agreement
The Peruvian Ministry of Foreign Trade and Tourism (Mincetur) informed that Peru’s delegation, led by Vice Minister of Foreign Trade, Mr. Edgar Vásquez, has initiated the first technical meetings with Indian authorities in New Delhi until next March 8th. The trade agreement will include, besides trade of goods, issues on trade of services and investments. Minister Vásquez mentioned that India offers important opportunities for Peruvian companies, not only due to reduction on tariffs to Peruvian products, but also the opportunity to access to the Indian market by exporting services from Peru.
Business between Peru and India reached US $ 1.7 billion
The trade balance between Peru and India in 2016 reached USD 1.73 billion, 8% more than in 2015 (USD 1.61 billion). Also, 2016 indicators reported that, for the first time, the trade balance is favorable to Peru by USD 127 million.
The highest demand in the Peruvian market is for automobiles (USD 83.6 million), vehicles assembled for transportation of passengers (USD 53.5 million) and motorcycles with an auxiliary engine (USD 29.7 million). About capital goods, Peru imports iron and steel towers and lattice masts (USD 36.1 million) and machinery for sugar industry (USD 7.4 million). Also, about intermediate goods, the most important imports from India are flat rolled iron or steel products (USD 35.7 million) and plain yarn (USD 32 million). [Similar reports were published in Gestión, La Republica and Andina]
(Source : Embassy of India, Lima)