110811 India Country and Water Report

WORLD TRADE CENTER- San Diego- India- 2012

of 81

Linking Global Markets

Trade Information Packet and Water Report

India June 2012

Prepared by Monika Bhagat

Preeti Singh

WORLD TRADE CENTER San Diego 2980 Pacific Highway San Diego, CA 92101

T: (619) 615-0868 F: (619) 615-0876

www.wtcsd.org


of 81

SAN DIEGO WORLD TRADE CENTER General Provision This report was developed by the WORLD TRADE CENTER San Diego to provide information on India. The report will not be, and should not be considered as an opinion regarding a recommendation for, or the reasonableness of any specific business action. No representations or warranties are provided with respect to the results obtained from use of the analysis or surveys of this report. In no event shall the WTCSD be liable for consequential, special, or indirect damages arising out of use of this material. To the best of our knowledge and belief, the statements contained in this report are true and correct. Information, estimates and opinions provided to us and contained in the report were obtained from the sources cited, and to the extent analyzed by us are believed to be true and correct. However, no representation, liability or warranty for the accuracy of such items is assumed by or imposed on us.


of 81

TABLE OF CONTENTS

Background 5 Geography 5 Map 8 Demographics 10 Political Framework 12 Communication 16 Military 17 Transportation 17 Trade Overview 25 Water Industry in India 47 Conclusion 68 Contact Details & Projects 70 Abbreviations 77

Sources/ Bibliography 79


of 81

India

Capital: New Delhi

The Flag of India - Description of the Indian Flag

As the above picture of the Indian Flag indicates the overall background is orange (saffron), white and green. The flag of India is also called Tiranga, or Tricolor

The description of the Indian Flag is as follows: There equal horizontal bands of saffron, subdued orange, (top), white,

and green A blue chakra (24-spoked wheel) centered in the white band

According to Ancient and Heraldic traditions much symbolism is associated with colors. The colors on the Indian flag represent the following:

Saffron - a symbol of courage White - peace and honesty Blue - vigilance, truth and loyalty, perseverance & justice Green - hope, joy , fertility and love and in many cultures have a

sacred significance


of 81

Background

Background Summary

The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated onto the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. - which reached its zenith under ASHOKA - united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries A.D.) saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor BABUR established the Mughal Dynasty which ruled India for more than three centuries. European explorers began establishing footholds in India during the 16th century. By the 19th century, Great Britain had become the dominant political power on the subcontinent. The British Indian Army played a vital role in both World Wars. Nonviolent resistance to British rule, led by Mohandas GANDHI and Jawaharlal NEHRU, eventually brought about independence in 1947. Communal violence led to the subcontinent's bloody partition, which resulted in the creation of two separate states, India and Pakistan. The two countries have fought three wars since independence, the last of which in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India's nuclear weapons tests in 1998 caused Pakistan to conduct its own tests that same year. In November 2008, terrorists allegedly originating from Pakistan conducted a series of coordinated attacks in Mumbai, India's financial capital. Despite pressing problems such as significant overpopulation, environmental degradation, extensive poverty, and widespread corruption, rapid economic development is fueling India's rise on the world stage. In January 2011, India assumed a nonpermanent seat in the UN Security Council for the 2011-12 terms. India's economic growth slowed last year, however, dropping from 8.5 percent in 2010 to around 7 percent

Geography Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal,

between Burma and Pakistan Geographic coordinates: 20 00 N, 77 00 E

Map references: Asia Area: total: 3,287,263 sq km land: 2,973,193 sq km water: 314,070 sq km Country comparison to the World: 7


of 81

Area - comparative: slightly more than one-third the size of the US

Land boundaries: total: 14,103 km border countries: Bangladesh 4,053 km, Bhutan 605 km, Burma 1,463 km, China 3,380 km, Nepal 1,690 km, Pakistan 2,912 km

Coastline: 7,000 km

Maritime claims: territorial sea: 12 nm contiguous zone: 24 nm exclusive economic zone: 200 nm continental shelf: 200 nm or to the edge of the continental margin Climate: varies from tropical monsoon in south to temperate in north

Terrain: upland plain (Deccan Plateau) in south, flat to rolling plain along the

Ganges, deserts in west, Himalayas in north

Elevation extremes: Lowest point: Indian Ocean 0 m highest point: Kanchenjunga 8,598 m

Natural resources: coal (fourth-largest reserves in the world), iron ore,

manganese, mica, bauxite, titanium ore, chromites, natural gas, diamonds, petroleum, limestone, arable land Land use: Arable land: 48.83% permanent crops: 2.8% other: 48.37% (2005) Irrigated land: 622,860 sq km (2008) Total renewable water resources: 1,907.8 cu km (1999) Freshwater withdrawal (domestic/industrial/agricultural): Total: 645.84 cu km/yr (8%/5%/86%) per capita: 585 cu m/yr (2000) Natural hazards:

Droughts; f lash floods, as well as widespread and destructive flooding from monsoonal rains; severe thunderstorms; earthquakes Volcanism: Barren Island (elev. 354 m) in the Andaman Sea has been active in recent years


of 81

Environment Current Issues: Deforestation; soil erosion; overgrazing; desertification; air pollution from industrial effluents and vehicle emissions; water pollution from raw sewage and runoff of agricultural pesticides; tap water is not potable throughout the country; huge and growing population is overstraining natural resources Environment - international agreements: party to: Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling Signed, but not ratified: none of the selected agreements Geography - note: dominates South Asian subcontinent; near important Indian Ocean trade routes; Kanchenjunga, third tallest mountain in the world, lies on the border with Nepal


of 81

Map General Location/ Major Cities:


of 81

State Borders:


of 81

Demographics: Population: 1,189,172,906 (July 2011 EST.) Country comparison to the world: 2 Age structure: 0-14 years: 29.7% (male 187,450,635/female 165,415,758) 15-64 years: 64.9% (male 398,757,331/female 372,719,379) 65 years and over: 5.5% (male 30,831,190/female 33,998,613) (2011 est.) Median age: total: 26.2 years male: 25.6 years female: 26.9 years (2011 est.) Population growth rate: 1.344% (2011 EST.) Country comparison to the world: 86

Birth rate: 20.97 births/1,000 population (2011 EST.) Country comparison to the world: 84 Death rate: 7.48 deaths/1,000 population (July 2011 EST.) Country comparison to the world: 117 Net migration rate: -0.05 migrant(s)/1,000 population (2011 EST.) Country comparison to the world: 118 Urban population: 30% of total population (2010) Rate of Urbanization: 2.4% annual rate of change (2010-15 est.)

Major cities - population:

NEW DELHI (capital) 21.72 million; Mumbai 19.695 million; Kolkata 15.294 million; Chennai 7.416 million; Bangalore 7.079 million (2009)

Sex ratio: at birth: 1.12 male(s)/female Under 15 years: 1.13 male(s)/female 15-64 years: 1.07 male(s)/female 65 years and over: 0.91 male(s)/female Total population: 1.08 male(s)/female (2011 est.) Infant mortality rate: total: 47.57 deaths/1,000 live births country comparison to the world: 51

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2119rank.html?countryName=India&countryCode=in&regionCode=sas&rank=2#in





https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2219



of 81

male: 46.18 deaths/1,000 live births female: 49.14 deaths/1,000 live births (2011 est.) Life expectancy at birth: total population: 66.8 years Country comparison to the world: 161 Male: 65.77 years Female: 67.95 years (2011 est.) Total fertility rate: 2.62 children born/woman (2011 est.) Country comparison to the world: 79 HIV/AIDS - adult prevalence rate: 0.3% (2009 est.) Country comparison to the world: 82 HIV/AIDS - people living with HIV/AIDS: 2.4 million (2009 est.) Country comparison to the world: 4 HIV/AIDS - deaths: 170,000 (2009 est.) Country comparison to the world: 3 Major infectious diseases: degree of risk: high food or waterborne diseases: bacterial diarrhea, hepatitis A and E, and typhoid fever vector borne diseases: chikungunya, dengue fever, Japanese encephalitis, and malaria animal contact disease: rabies water contact disease: leptospirosis note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2009)

Drinking water source:

improved: urban: 96% of population rural: 84% of population total: 88% of population unimproved: urban: 4% of population rural: 16% of population total: 12% of population (2008) Sanitation facility access: improved: urban: 54% of population rural: 21% of population









of 81

total: 31% of population unimproved: urban: 46% of population rural: 79% of population total: 69% of population (2008)

Nationality: noun: Indian(s) adjective: Indian Ethnic groups: Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2000) Religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1% (2001 census) Languages: English enjoys associate status but is the most important language for national, political, and commercial communication; Hindi is the national language and primary tongue of 41% of the people; there are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language (2001 census) Literacy: definition: age 15 and over can read and write total population: 61% male: 73.4% female: 47.8% (2001 census) School life expectancy (primary to tertiary education): Total: 10 years Male: 11 years Female: 10 years (2007) Education expenditures: 3.1% of GDP (2006) Country comparison to the world: 130

Political Framework Overview: Religion, caste, and language are major determinants of social and political organization in India today. Hindi, the national language, is the most widely spoken, although English is the common language among the populous. Recognizing India as a key to strategic U.S. interests, the United States has sought to strengthen its relationship with India. The two countries are the world's largest democracies, both committed to political freedom protected by representative government. India is also moving gradually toward greater economic freedom.

https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html?countryName=India&countryCode=in&regionCode=sas#2206



of 81

Differences remain, however, including over India's nuclear weapons programs and the pace of India's economic reforms. In the past, these concerns may have dominated U.S. thinking about India, but today the U.S. views India as a growing world power with which it shares common strategic interests. A strong partnership between the two countries will continue to address differences and shape a dynamic and collaborative future. Country name: conventional long form: Republic of India conventional short form: India local long form: Republic of India/Bharatiya Ganarajya local short form: India/Bharat Government type: federal republic Capital: name: New Delhi geographic coordinates: 28 36 N, 77 12 E time difference: UTC+5.5 (10.5 hours ahead of Washington, DC during Standard Time) Administrative divisions: 28 states and 7 union territories*; Andaman and Nicobar Islands*, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chandigarh*, Chhattisgarh, Dadra and Nagar Haveli*, Daman and Diu*, Delhi*, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Lakshadweep*, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Pondicherry*, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, West Bengal Independence: 15 August 1947 (from UK) National holiday: Republic Day, 26 January (1950) Constitution: 26 January 1950; amended many times Legal system: based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations; separate personal law codes apply to Muslims, Christians, and Hindus Suffrage: 18 years of age; universal Executive branch: Chief of state: President Pratibha Devisingh PATIL (since 25 July 2007); Vice President Mohammad Hamid ANSARI (since 11 August 2007) Head of government: Prime Minister Manmohan SINGH (since 22 May 2004)


of 81

Cabinet: Cabinet appointed by the president on the recommendation of the prime minister. Elections: president elected by an electoral college consisting of elected members of both houses of Parliament and the legislatures of the states for a five-year term (no term limits); election last held in July 2007 (next to be held in July 2012); vice president elected by both houses of Parliament for a five-year term; election last held in August 2007 (next to be held August 2012); prime minister chosen by parliamentary members of the majority party following legislative elections; election last held April - May 2009 (next to be held no later than May 2014) Election results: Pratibha PATIL elected president; percent of vote - Pratibha PATIL 65.8%, Bhairon Singh SHEKHAWAT - 34.2% Legislative branch: bicameral Parliament or Sansad consists of the Council of States or Rajya Sabha (a body consisting of not more than 250 members up to 12 of whom are appointed by the president, the remainder are chosen by the elected members of the state and territorial assemblies; members serve six-year terms) and the People's Assembly or Lok Sabha (545 seats; 543 elected by popular vote, 2 appointed by the president; members serve five-year terms) Elections: People's Assembly - last held in five phases 16, 22-23, 30 April and 7, 13 May 2009 (next must be held by May 2014) election results: People's Assembly - percent of vote by party - NA; seats by party - INC 206, BJP 116, SP 23, BSP 21, JD (U) 20, AITC 19, DMK 18, CPI-M 16, BJD 14, SS 11, AIADMK 9, NCP 9, other 61, vacant 2; note - seats by party as November 2009 - INC 207, BJP 116, SP 22, BSP 21, JD (U) 20, AITC 19, DMK 18, CPI-M 16, BJD 14, SS 11, AIADMK 9, NCP 9, other 61, vacant 2 Judicial branch: Supreme Court (one chief justice and 25 associate justices are appointed by the president and remain in office until they reach the age of 65 or are removed for "proved misbehavior") Political parties and leaders: All India Anna Dravida Munnetra Kazhagam or AIADMK [J. JAYALALITHAA]; All India Trinamool Congress or AITC [Mamata BANERJEE]; Bahujan Samaj Party or BSP [MAYAWATI]; Bharatiya Janata Party or BJP [Nitin GADKARI]; Biju Janata Dal or BJD [Naveen PATNAIK]; Communist Party of India or CPI [B. BARDHAN]; Communist Party of India-Marxist or CPI-M [Prakash KARAT]; Dravida Munnetra Kazhagam or DMK [Kalaignar M.KARUNANIDHI]; Indian National Congress or INC [Sonia GANDHI]; Janata Dal (United) or JD(U) [Sharad YADAV]; Left Front (an alliance of Indian leftist parties); Nationalist Congress Party or NCP [Sharad PAWAR]; Rashtriya Lok Dal or RLD [Ajit SINGH]; Samajwadi Party or SP [Mulayam Singh YADAV]; Shiromani Akali Dal or SAD [Parkash Singh BADAL]; Shiv Sena or SS [Bal THACKERAY]; Telugu Desam Party or TDP [Chandrababu NAIDU]; note - India has dozens of national and regional political parties; only parties or coalitions with four or more seats in the People's Assembly are listed


of 81

Political pressure groups and leaders: All Parties Hurriyat Conference in the Kashmir Valley (separatist group); Bajrang Dal (religious organization); National Socialist Council of Nagaland in the northeast (separatist group); Rashtriya Swayamsevak Sangh [Mohan BHAGWAT] (religious organization); Vishwa Hindu Parishad [Ashok SINGHAL] (religious organization) other: Numerous religious or militant/chauvinistic organizations; various separatist groups seeking greater communal and/or regional autonomy International organization participation: ADB AfDB (no regional member) ARF ASEAN (dialogue partner) BIMSTEC BIS C CERN (observer) CICA CP EAS FAO G-15 G-20 G-24 G-77 IAEA IBRD ICAO ICC ICRM IDA

IFAD IFC IFRCS IHO ILO IMF IMO IMSO Interpol IOC IOM IPU ISO ITSO ITU ITUC LAS (observer) MIGA MONUC NAM OAS (observer) OPCW PCA PIF (partner)

SAARC SACEP SCO (observer) UN UNCTAD UNDOF UNESCO UNHCR UNIDO UNIFIL UNITAR UNMIS UNMIT UNOCI UNWTO UPU WCO WFTU WHO WIPO WMO WTO

Diplomatic representation in the US:

chief of mission: Ambassador Meera SHANKAR chancery: 2107 Massachusetts Avenue NW, Washington, DC 20008; note - Consular Wing located at 2536 Massachusetts Avenue NW, Washington, DC 20008 telephone: [1] (202) 939-7000 FAX: [1] (202) 265-4351 consulate(s) general: Chicago, Houston, New York, San Francisco

Diplomatic representation from the US:

chief of mission: Ambassador (vacant); Charge d'Affaires A. Peter BURLEIGH embassy: Shantipath, Chanakyapuri, New Delhi 110021 mailing address: use embassy street address telephone: [91] (011) 2419-8000 FAX: [91] (11) 2419-0017



WORLD TRADE CENTER- San Diego- India- 2012 of 81

consulate(s) general: Chennai (Madras), Hyderabad; Kolkata (Calcutta), Mumbai (Bombay)

National anthem:

name: "Jana-Gana-Mana" (Thou Art the Ruler of the Minds of All People) lyrics/music: Rabindranath TAGORE note: adopted 1950; Rabindranath TAGORE, a Nobel laureate, also wrote Bangladesh's national anthem

Communication

Telephones - main lines in use: 35.77 million (2010) Country comparison to the world: 8 Telephones - mobile cellular: 670 million (2010) Country comparison to the world: 2 Telephone System: General Assessment: supported by recent deregulation and liberalization of telecommunications laws and policies, India has emerged as one of the fastest growing telecom markets in the world; total telephone subscribership base is approaching 600 million, an overall teledensity of 50%, and subscribership is currently growing nearly 20 million per month; urban teledensity has reached 100% and rural teledensity is about 20% and steadily growing Domestic: mobile cellular service introduced in 1994 and organized nationwide into four metropolitan areas and 19 telecom circles each with multiple private service providers and one or more state-owned service providers; in recent years significant trunk capacity added in the form of fiber-optic cable and one of the world's largest domestic satellite systems, the Indian National Satellite system (INSAT), with 6 satellites supporting 33,000 very small aperture terminals (VSAT) International: country code - 91; a number of major international submarine cable systems, including Sea-Me-We-3 with landing sites at Cochin and Mumbai (Bombay), Sea-Me-We-4 with a landing site at Chennai, Fiber-Optic Link Around the Globe (FLAG) with a landing site at Mumbai (Bombay), South Africa - Far East (SAFE) with a landing site at Cochin, the i2i cable network linking to Singapore with landing sites at Mumbai (Bombay) and Chennai (Madras), and Tata Indicom linking Singapore and Chennai (Madras), provide a significant increase in the bandwidth available for both voice and data traffic; satellite earth stations - 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region); 9 gateway exchanges operating from Mumbai (Bombay), New Delhi, Kolkata (Calcutta), Chennai (Madras), Jalandhar, Kanpur, Gandhinagar, Hyderabad, and Ernakulam (2010) Broadcast media:

Doordarshan, India's public TV network, operates about 20 national, regional, and local services; large number of privately-owned TV stations are distributed by cable and satellite service providers; government controls AM radio with All India Radio operating domestic






and external networks; news broadcasts via radio are limited to the All India Radio Network; since 2000, privately-owned FM stations are permitted but limited to broadcasting entertainment and educational content (2007)

Internet country code:

.in

Internet hosts:

4.536 million (2010) country comparison to the world: 18

Internet users:

61.338 million (2009) country comparison to the world: 6

Military

Military branches: Army, Navy (includes naval air arm), Air Force, Coast Guard (2011) Military service age and obligation: 17 years 6 months of age for voluntary military service; no conscription; women may join as officers, but for noncombat roles only (2010) Manpower available for military service: males age 16-49: 319,129,420

Females age 16-49: 296,071,637 (2010 est.) Manpower fit for military service: Males age 16-49: 249,531,562 Females age 16-49: 240,039,958 (2010 est.) Manpower reaching militarily significant age annually: Male: 12,151,065 Female: 10,745,891 (2010 est.) Military expenditures - percent of GDP: 2.5% (2006) Country comparison to the world: 62

Transportation

Airports:352 (2010) Country comparison to the world: 23 Airports - with paved runways: Total: 249 Over 3,047 m: 21 2,438 to 3,047 m: 57 1,524 to 2,437 m: 75 914 to 1,523 m: 81









Under 914 m: 15 (2010) Airports - with unpaved runways: Total: 103 Over 3,047 m: 1 2,438 to 3,047 m: 3 1,524 to 2,437 m: 8 914 to 1,523 m: 43 Under 914 m: 48 (2010) Heliports: 40 (2010) Pipelines: condensate/gas 2 km; gas 9,596 km; liquid petroleum gas 2,152 km; oil 7,448 km; refined products 10,486 km (2010) Railways: total: 63,974 km

country comparison to the world: 4 broad gauge: 54,257 km 1.676-m gauge (18,927 km electrified) narrow gauge: 7,180 km 1.000-m gauge; 2,537 km 0.762-m gauge and 0.610-m gauge (2010) Roadways: total: 3,320,410 km (includes 200 km of expressways) (2009) Country comparison to the world: 3 Waterways: 14,500 km Country comparison to the world: 9 Note: 5,200 km on major rivers and 485 km on canals suitable for mechanized vessels (2008) Merchant marine: total: 324 Country comparison to the world: 29 By type: bulk carrier 94, cargo 78, chemical tanker 23, container 15, liquefied gas 11, passenger 4, passenger/cargo 12, petroleum tanker 87 Foreign-owned: 8 (China 1, Hong Kong 1, Jersey 1, Malaysia 1, UAE 4) Registered in other countries: 56 (Cyprus 2, Dominica 2, Liberia 1, Malta 4, Marshall Islands 8, Nigeria 1, Panama 17, Singapore 19, unknown 2) (2010) Ports and terminals: Chennai, Haldia, Jawaharal Nehru, Kandla, Kolkata (Calcutta), Mormugao, Mumbai (Bombay), New Mangalore, Vishakhapatnam Economic Environment Overview:

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served






to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global f inancial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. Merchandise exports, which account for about 15% of GDP, returned to pre-financial crisis levels. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon and inefficiencies in the government's food distribution system, fueled inflation which peaked at about 11% in the first half of 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes. In 2010 New Delhi reduced subsidies for fuel and fertilizers, sold a small percentage of its shares in some state-owned enterprises and auctioned off rights to radio bandwidth for 3G telecommunications in part to lower the government's deficit. The Indian Government seeks to reduce its budget deficit to 5.5% of GDP in FY 2010-11, down from 6.8% in the previous fiscal year. India's long term challenges include widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, insufficient access to quality basic and higher education, and accommodating rural-to-urban migration.

Statistics: GDP (purchasing power parity): $4.06 trillion (2010 est.) Country comparison to the world: 5 $3.736 trillion (2009 est.) $3.478 trillion (2008 est.) Note: data are in 2010 US dollars GDP (official exchange rate): $1.538 trillion (2010 est.) GDP - real growth rate: 10.4% (2010 est.) Country comparison to the world: 12 6.8% (2009 est.) 6.2% (2008 est.) GDP - per capita (PPP):




$3,500 (2010 est.)

country comparison to the world: 163 $3,200 (2009 est.) $3,000 (2008 est.) note: data are in 2010 US dollars

GDP - composition by sector:

agriculture: 16.1% industry: 28.6% Services: 55.3% (2010 est.)

Labor force:

478.3 million (2010 est.)

country comparison to the world: 2

Labor force - by occupation:

agriculture: 52% industry: 14% Services: 34% (2009 est.)

Unemployment rate:

10.8% (2010 est.)

country comparison to the world: 118 10.7% (2009 est.)

Population below poverty line:

25% (2007 est.)

Household income or consumption by percentage share:

lowest 10%: 3.6% highest 10%: 31.1% (2005)

Distribution of family income - Gini index:

36.8 (2004)

country comparison to the world: 79 37.8 (1997)

Investment (gross fixed):

32% of GDP (2010 est.)


Budget:

revenues: $170.7 billion Expenditures: $268 billion (2010 est.)
















Public debt:

55.9% of GDP (2010 est.)

country comparison to the world: 45 57.3% of GDP (2009 est.)

Inflation rate (consumer prices):

11.7% (2010 est.)

country comparison to the world: 201 10.9% (2009 est.)

Central bank discount rate:

6% (31 December 2009)

country comparison to the world: 73 6% (31 December 2008)

Commercial bank prime lending rate:

12.19% (31 December 2009 est.)

country comparison to the world: 56 13.31% (31 December 2008 est.)

Stock of narrow money:

$328.4 billion (31 December 2010 est.)

country comparison to the world: 15 $268.4 billion (31 December 2009 est.)

Stock of broad money:

$1.29 trillion (31 December 2010 est.)

country comparison to the world: 14 $1.04 trillion (31 December 2009 est.)

Stock of domestic credit:

$1.164 trillion (31 December 2010 est.)


Market value of publicly traded shares:

$1.179 trillion (31 December 2009)

country comparison to the world: 15 $645.5 billion (31 December 2008) $1.819 trillion (31 December 2007)

Agriculture - products:

rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fish

Industries:




















textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticals

Industrial production growth rate:

9.7% (2010 est.)


Electricity - production:

723.8 billion KWh (2009 est.)


Electricity - consumption:

568 billion kWh (2007 est.)


Electricity - exports:

810 million kWh (2009 est.)

Electricity - imports:

5.27 billion KWh (2009 est.)

Oil - production:

878,700 bbl/day (2009 est.)


Oil - consumption:

2.98 million bbl/day (2009 est.)


Oil - exports:

738,600 bbl/day (2007 est.)


Oil - imports:

2.9 million bbl/day (2007 est.)


Oil - proved reserves:

5.8 billion bbl (1 January 2010 est.)


Natural gas - production:

38.65 billion cu m (2009 est.)























Natural gas - consumption:



Natural gas - exports:

0 cu m (2008 est.)


Natural gas - imports:



Natural gas - proved reserves:

1.075 trillion cu m (1 January 2010 est.)


Current account balance:

$-26.91 billion (2010 est.)

country comparison to the world: 182 $-26.63 billion (2009 est.)

Exports:

$201 billion (2010 est.)

country comparison to the world: 23 $168.2 billion (2009 est.)

Exports - commodities:

petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel

Exports - partners:

UAE 12.5%, US 11.1%, China 6.1%, Hong Kong 4.2%, Singapore 4.1% (2009)

Imports:

$327 billion (2010 est.)

country comparison to the world: 13 $274.3 billion (2009 est.)

Imports - commodities:

crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals

Imports - partners:

China 11.2%, US 6.5%, UAE 6%, Saudi Arabia 5.7%, Australia 4.2%,




















Germany 4.2%, Iran 4.1% (2009)

Reserves of foreign exchange and gold:



Debt - external:



Stock of direct foreign investment - at home:



Stock of direct foreign investment - abroad:



Exchange rates:

Indian rupees (INR) per US dollar – 52.82 – Current 46.163 (2010) 48.405 (2009) 43.319 (2008) 41.487 (2007) 45.3 (2006)

Fiscal year: 1 April - 31 March Taxation:

India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption











within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.

Corporate Income Tax

For domestic companies, this is levied @ 35% plus surcharge of 5%, where as for a foreign company (including branch/project offices), it is @ 40% plus surcharge of 5%. An Indian registered company, which is a subsidiary of a foreign company, is also considered an Indian company for this purpose.

Withholding Tax for NRIs and Foreign Companies:

Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates are:

1.. Interest - 20% of Gross Amount

2. Dividends - 10%

3. Royalties - 20% 4. Technical Services - 20%

5. Any other Services - Individuals - 30% of net income

6. Companies/Corporate - 40% of net income

The above rates are general and in respect of the countries with which India does not have a Double Taxation Avoidance Agreement (DTAA).

Double Taxation Relief:

India has entered into DTAA with 65 countries including countries like U.S.A., U.K., Japan, France, Germany, etc. These agreements provides for relief from the double taxation in respect of incomes by providing exemption and also by providing credits for taxes paid in one of the countries. These treaties are based on the general principles laid down in the model draft of the Organization for Economic Cooperation and Development (OECD) with suitable modifications as agreed to by the other contracting countries.

United States -

Dividends% 20 Interest % 15 Royalties % 15

General Tax Incentives for Industries:

o 100% deduction of profits and gains for ten years is available in respect of the following.


o Any enterprise carrying on the business of developing, maintaining and operating infrastructure facilities viz., roads, highways, bridges, airports, ports, rail systems, industrial towns, inland waterways, water supply projects, water treatment systems, irrigation projects, sanitation and sewage projects, solid waste management systems.

o Undertakings engaged in generation or generation and distribution, transmission or distribution of power, which commence these activities before 31.3.2006.

o Any company engaged in scientific and industrial research and development activities, approved by the prescribed authority, before 31.3.2003.

o Any undertaking, which develops, operates, maintains an Industrial Park or Special Economic Zone before 31.3.2006.

o Notified Industrial Undertakings set up in the North Eastern region including seven north- eastern states and the state of Sikkim.

o Undertakings developing and building housing projects approved by the local authority before 31.3.2001 and which are completed before 31.3.2003.

o 100% deduction for seven years for undertakings producing or refining mineral oil. o 100% deduction from income for first five years and 30% (for persons other than

companies: 25%) in subsequent five years is available in respect of the following: o Company, which starts providing telecommunication services whether basic or

cellular including radio paging, domestic satellite service, network or trucking, broadband network and internet services before 31.3.2003.

o Industrial undertakings located in certain specified industrially backward states and districts.

o Undertakings which begin to operate cold chain facilities for agricultural produce before 31.3.2003.

o Undertakings engaged in the business of handling, storage, transportation of food grains.

o 50% deduction for a period of five years is available to undertakings engaged in the business of building, owning and operating multiplex theatres or convention centers constructed before 31.3.2005.

o Tax exemption of 100% on export profits for ten years up to F.Y. 2009-10, for new industries located in EHTPs and STPs and 100% Export Oriented Units. For units set up in Special Economic Zones (SEZs), 100% deduction of export income for first five years followed by 50% for next two years, even beyond 2009-10.

o Tax exemption of 100% of Export profits for ten years for new industries located in Integrated Infrastructure Development Centers or Industrial Growth Centers of the North Eastern Region.

o Deduction of 50% of export profits from the gross total income. The deduction would be restricted to 30% for financial year 2003-04 and no deduction is allowable subsequently.

o Deduction from the gross total income of 50% of foreign exchange earnings by hotels and tour operators. The deduction would be restricted to 30% for financial year 2003-04 and no deduction is allowable subsequently.

o 50% deduction of export income due to export of computer software or film software, television software, music software, from the gross total income. The deduction would be restricted to 30% for financial year 2003-04 and no deduction is allowable subsequently.

o Deduction in respect of certain inter-corporate dividends to the extent of dividend declared.

o Exemption of any income by way of dividend, interest or long term capital gains of an infrastructure capital fund or an infrastructure capital company from investment made


by way of shares or long term finance in any enterprises carrying on the business of developing, maintaining and operating infrastructure facility.

Forecasts: According to the International Monetary Fund (IMF), India was one of the first countries to emerge from the global crisis, but Asia’s third largest economy is now facing policy trade-offs earlier than other countries and should return to its longer-term reform agenda. Advancing the financial reform agenda is viewed as critical to enable the big infrastructure boost that the government is planning to sustain rapid growth over the medium term. The International Monetary Fund on June 17,2011 projected the Indian will grow by 8.2% in 2011 unchanged from its growth forecast made in April and 7.8% in 2012. .The IMF's latest projection has come at a time when the Indian economy is fighting with high inflation that threatens to slowdown growth of the Asia's third largest economy. Inflation in Indian economy is hovering at elevated level which crossed 9% mark in the month of May According to the CS O (Central Statistical Organization), the economy grew by a lower-than expected 7.8% year on year in the first three month of 2011 (GDP grew by an annual 8.5% in the fiscal year 2010-11 (April-March), up from 8.0% in the previous year). For policymakers this is a disappointment. Given India’s level of domestic demand and fast-growing middle class they consider GDP growth of 7.5-8.0% to be easily attainable. The Planning Commission has just set 9-9.5% as its target for India’s 12th Five-year plan (2013-17). The moderation in January-March was not altogether surprising. First, there was a base effect. GDP surged by 9.4% in the final quarter of fiscal year 2009-10—the fastest quarterly expansion since the global recession (growth for the final quarter of 2009/10 was revised from 8.6% to 9.4%). So annual growth in the January-March quarter was bound to look moderate. Second, the OECD’s leading indicator for India has been pointing towards a slowdown of economic activity since January 2011. Third, interest rates have been rising and industrial activity has moderated. Near double-digit inflation has been eating into people’s real purchasing power and reduced firms’ appetite to step up investment. Pranab Mukherjee, India’s finance minister, has said that GDP growth in fiscal year 2011/12 may slow to 8% (one percentage point lower than assumed in the budget he presented in February). On May 3rd, when the Reserve Bank of India hiked rates by a sharper-than-expected 50 basis points it also cut its growth forecast for fiscal year 2011-12 to 8% (assuming that oil prices average US$110 per barrel). Some private sector economist’s forecast growth for this year at 7.5%.

Trade Overview A. EXPORTS (including re-exports) Exports during November, 2011 were valued at US $ 22321.64 million (Rs. 113519.82 crore)

which was 3.87 per cent higher in Dollar terms (17.34 per cent higher in Rupee terms) than the level of US $ 21489.49 million (Rs.96742.01 crore) during November 2010. Cumulative value of exports for the period April-November 20101-12 was US $ 192694.38 million (Rs 893094 crore) as against US $ 144659.95 million (Rs. 661055.88 crore) registering a growth of 33.21 per cent in Dollar terms and 35.10 per cent in Rupee terms over the same period last year.


Imports: Imports during November, 2011 were valued at US $ 35922.43 million (Rs.182688.55 crore) representing a growth of 24.55 per cent in Dollar terms (40.70 per cent in Rupee terms) over the level of imports valued at US $ 28842.33 million ( Rs. 129843.26 crore) in November, 2010. Cumulative value of imports for the period April-November, 2011-2012 was US $ 309530.45 million (Rs. 1435304.79 crore) as against US $ 237664.08 million (Rs. 1085780.54 crore) registering a growth of 30.24 per cent in Dollar terms and 32.19 per cent in Rupee terms over the same period last year. CRUDE OIL AND NON-OIL IMPORTS: Oil imports during November, 2011 were valued at US $ 10307 million which was 32.28 per cent higher than oil imports valued at US $ 7792.1 million in the corresponding period last year. Oil imports during April-November, 2011-12 were valued at US$ 94116.5 million which was 42.67 per cent higher than the oil imports of US $ 65967.8 million in the corresponding period last year. Non-oil imports during November, 2011 were estimated at US $ 25615.3 million which was 21.69 per cent higher than non-oil imports of US $ 21050.2 million in November, 2010. Non-oil imports during April – November, 2011-12 were valued at US$ 215413.9 million which was 25.46 per cent higher than the level of such imports valued at US$ 171696.3 million in April – November, 2010-11. Trade Balance: The trade deficit for April-November, 2011-12 was estimated at US $ 116836.07 million which was higher than the deficit of US $ 93004.13 million during April –November, 2010 – 11.

DEPARTMENT OF COMMERCE ECONOMIC DIVISION

EXPORTS & IMPORTS : (PROVISIONAL) (US $ Million)

NOVEMBER APRIL-NOVEMBER

EXPORTS (including re-exports)

2010-11 21489.49 144659.95

2011-12 22321.64 192694.38

%Growth 2011-12/ 2010-2011 3.87 33.21

IMPORTS

2010-11 28842.33 237664.08

2011-12 35922.43 309530.45

%Growth 2011-12/2010-2011 24.55 30.24

TRADE BALANCE

2010-11 -7352.84 -93004.13


2011-12 -13600.79 -116836.07

National Trade with the USA

February 2010 Cumulative Year to Date through February 2010

Exports General Imports Exports General Imports

Description F.A.S. Value Basis

Customs Value Basis

C.I.F. Value Basis

F.A.S. Value Basis

Customs Value Basis

C.I.F. Value Basis

Food and live animals

36,312 63,245 66,700 79,788 144,481 151,935

Beverages and tobacco

425 1,531 1,668 680 5,014 5,439

Crude materials, inedible, except fuels

90,354 37,732 41,648 180,148 69,710 76,000

Mineral fuels, lubricants and related materials

44,685 56,875 58,257 136,683 205,619 210,982

Animal and vegetable oils, fats and waxes

52,773 7,999 8,628 133,188 11,161 12,054

Chemicals and related products, n.e.s.

198,325

349,930 360,111

372,326 707,334 727,226

Manufactured goods classified chiefly by material

264,767

708,837 729,238

502,819 1,423,928 1,466,646

Machinery and transport equipment

324,315

250,979 263,072

635,559 528,526 553,023

Miscellaneous manufactured articles

104,059

461,771 484,813

216,771 902,208 945,501

Commodities and transactions not classified elsewhere

119,172

19,174 19,333 272,728 39,456 39,771

Total 1,493,515

1,958,072 2,033,467

2,530,689

4,037,435

4,188,576


Trade Regulations and Standards

Import Tariffs

The Government of India, Ministry of Commerce and Industry announced the New Foreign Trade Policy on 27th August 2009 for the period 2009-2014 (earlier this policy was known as Export Import (Exim) Policy). The EXIM Policy or Foreign Trade Policy is updated every year on the 31st of March and the modifications, improvements, and new schemes become effective in April of each year. To see the most recent updates, visit http://www.infodrive india.com/Exim/DGFT/Exim-Policy/2009-2014/Highlights.aspx. Goods as well as services bought from the foreign countries are subjected to import tax in India. Recently, the special duty exemption scheme has released the importers from the burden of paying import duty for those import items which will facilitate production of export goods. Certain input norms and output norms have been developed for approximately 4,200 items and these norms have been formulated to decide the quantity of duty-free inputs to be imported for the production of a specific export item. The Export Promotion Capital Goods Scheme (EPCG) is the latest addition in the import tax structure which serves to provide deductions in import duty on capital goods. But the deductions under the Export Promotion Capital Goods (EPCG) Scheme are available only after conforming with the export obligations like providing a statement of exports as per Appendix-10 C of the scheme and the statement is required to be certified by a Chartered accountant. Certificates issued by jurisdictional excise authorities as a proof of the import of goods, a statement or certificate from the respective bank of the importer, confirming that the foreign exchange is accepted through a proper banking channel. The importer needs to receive a certificate proving that the export obligation has been discharged from the licensing authorities to carry on import activities. The Export Promotion Capital Goods (EPCG) Scheme facilitates varied sectors like the air cargo sector, the tourism as well as its associated sectors, the hotel industry, the tertiary sector. Under the Export Promotion Capital Goods (EPCG) Scheme, most of the import items related to the above mentioned industries are exempted from the payment of any amount towards import duties. The category of Import tax in India also include basic duty which is zero for certain import items, however, the maximum basic duty imposed on an imported item is 65 %. Countervailing duties, excise duties and regulatory duties in addition to basic duty also form apart of the Import tax in India. The total import tax levied on luxury items may rise as high as 150 %. Import Tax in India also includes tariffs that are applied to foreign goods. Tariffs are charged by customs official to allow the landing of the imported goods in the port. The purpose behind levying tariffs is mainly to protect the domestic industries from foreign competition. Tariffs serve to protect the domestic industries through-the revenue tariffs and the protective tariff. The revenue tariffs contain certain set rates to apply on the imports to increase the revenue earning of the government. Whereas protective tariffs serve to superficially amplify the cost of


the imported goods so that the buyer has to pay more money for the purchase of an imported good which can be purchased at a lesser price from an indigenous manufacturer. Tariffs are of 2 kinds - the ad valorem tariffs and the specific tariffs. The ad valorem tariffs comprise of a pre-decided rate on the price of the imported goods. The ad valorem tariffs offer the advantage of earning more revenues with the increase in the price of the imported goods. The specific tariffs are those which maintain the payment of a fixed sum of money for imported goods. Indian tariffs are categorized as per the Harmonized Commodity Description and Coding System. The Customs Act acts as the guideline for the application of tariffs on imported goods and also for formulating rules for the valuation of customs. The Customs Tariff Act provides guidance as to the rates of tariffs, anti-dumping, as well as countervailing duties. Classification: As there are thousands of goods that are imported into India, it is not possible to prescribe rates of duty for each type of merchandise. The basic applicable legislation is the Indian Customs Act of 1962, and the Customs Tariff Act of 1975. The Customs Act of 1962 was created to control imports and prevent Illegal imports and exports of goods. The Customs Tariff Act specifies the tariffs rates and provides for the imposition of anti-dumping and countervailing duties. The Indian customs classification on tariff items follows the Harmonized Commodity Description and Coding System (Harmonized System or HS). Customs uses six-digit HS codes, the Directorate-General of Commercial Intelligence and Statistics (DGCI&S) uses eight-digit codes for statistical purposes, and the Directorate General of Foreign Trade (DGFT) has broadly extended the eight-digit DGCI&S codes up to 10 digits. It is also worth noting that the excise authorities use HS codes for classifying goods to levy excise duty (manufacturing taxes) on goods produced in India. How Customs Duty is calculated: All goods imported into India are subject to duty. There are several factors that go into calculating customs duty, including: Basic Customs Duty (BCD): This duty is levied either as 1) a specific rate based on the unit of the item (weight, number, etc.), or more commonly, 2) ad-volorem, based on the assessable value of the item. In some cases, a combination of the two is used. Additional Customs Duty (ACD): This duty is typically referred to as Countervailing duty or (CVD) and is levied on the assessed value of goods plus basic customs duty. Goods that fall into this category are imported goods that have similar goods manufactured in India. The objective is to protect domestic industry from imports. Special Additional Customs Duty (known as Special CVD): Earlier known as surcharge, Special CVD tax is applicable on all items. It is levied at the rate of 4 percent of the basic and the excise duty on all imports. Anti-dumping Duty: This is levied on specified goods imported from specified countries, including the United States, to protect indigenous industry from injury. Safeguard Duty: The Indian government may by notification impose a safeguard duty on articles after concluding that increased imported quantities and under current conditions will cause or threaten to cause serious injury to domestic industry.


Customs Education Cess: Effective July 2004, India introduced a new education cess (duty) assessment. The current rate is three percent of Basic Customs Duty (BCD) and Additional Duty of Customs (ACD). Goods bound under international commitments have been exempted from this cess. Customs Handling Fee: The Indian government assesses a one percent customs handling fee on all imports in addition to the applied customs duty. Total Duty: Therefore, for most goods, total duty payable = BCD + ACD + Special CVD + Education Cess + Customs Handling Fee. Tariff rates, excise duties, regulatory duties, and countervailing duties are revised in each annual budget in February, and are published in various sources, including BIGs Easy Reference Customs Tariff edition. A copy of this book is kept at the USA Trade Information Center in Washington DC and more specific information from this guide is available to U.S. Companies by calling 800-USA-TRADE. While the Indian government publishes customs tariffs rates there is no single official publication that has all information on tariffs and tax rates on imports. Moreover, each Indian State levies taxes on interstate trade and commerce, which adds to the confusion. Effective April 2005, the Indian government implemented a Value-Added tax (VAT) system meant to replace the inter-state taxes, but implementation is not yet universal in all the States. Duty exemption plan: The Duty Exemption Plan enables duty free import of inputs required for export production. An advance license is issued under the duty exemption plan. The Duty Remission Plan enables post export replenishment remission of duty on inputs used in the export product. Duty Remission plan consists of (a) DFRC and (b) DEPB. DFRC permits duty free import charges on inputs used in the export product. The government has wide discretionary power to declare full or partial duty exemptions “in the public interest” and to specify conditions such as end-use provisions. Almost half of India’s total inputs enter under concessional tariffs, though the use of exemptions is falling in tandem with the tariff-reduction program.

Trade Barriers

Any restriction imposed on the free flow of trade is a trade barrier. Trade barriers can either be tariff barriers (the levy of ordinary negotiated customs duties in accordance with Article II of the GATT) or non-tariff barriers, which are any trade barriers other than tariff barriers. Import Licensing: One of the most common non-tariff barriers is the prohibition or restrictions on imports maintained through import licensing requirements. Though India has eliminated its import licensing requirements for most consumer goods, certain products face licensing related trade barriers. For example, the Indian government requires a special import license for motorcycles and vehicles that is very restrictive. Import licenses for motorcycles are provided only to foreign nationals permanently residing in India, working in India for foreign firms that hold greater than 30 percent equity or to foreign nations working at embassies and foreign missions. Some domestic importers are allowed to import vehicles without a license provided the imports are counterbalanced by exports attributable to the same importer.


Standards, testing, labeling & certification: The Indian government has identified 109 commodities that must be certified by its National Standards body, the Bureau of Indian Standards (BIS). The idea behind these certifications is to ensure the quality of goods seeking access into the market, but many countries use them as protectionist measures. Anti-dumping and countervailing measures: Anti-dumping and countervailing measures are permitted by the WTO Agreements in specified situations to protect the domestic industry from serious injury arising from dumped or subsidized imports. India imposes these from time-to-time to protect domestic manufacturers from dumping. India’s implementation of its antidumping policy has, in some cases, raised concerns regarding transparency and due process. In recent years, India seems to have aggressively increased its application of the antidumping law. In the first half of the calendar year 2006 India topped the list of countries initiating new anti-dumping investigations with 20 new initiations. Export subsidies and domestic support: Several export subsidies and other domestic support is provided to several industries to make them competitive internationally. Export earnings are exempt from taxes and exporters are not subject to local manufacturing tax. While export subsidies tend to displace exports from other countries into third country markets, the domestic support acts as a direct barrier against access to the domestic market. Procurement: The Indian government allows a price preference for local suppliers in government contracts and generally discriminates against foreign suppliers. In international purchases and International Competitive Bids (ICB’s) domestic companies gets a price preference in government contract and purchases. Service barriers: Services in which there are restrictions include: insurance, banking, securities, motion pictures, accounting, construction, architecture and engineering, retailing, legal services, express delivery services and telecommunication. Other barriers: Equity restrictions and other trade-related investment measures are in place to give an unfair advantage to domestic companies. The GOI continues to limit or prohibit FDI in sensitive sectors such as retail trade and agriculture. Additionally there is an unpublished policy that favors counter trade. Several Indian companies, both government-owned and private, conduct a small amount of counter trade.

Import Requirements and Documentation

Import licensing requirements: In the last decade, India has steadily replaced licensing and discretionary controls over imports with deregulation and simpler import procedures. The majority of import items fall within the scope of India’s EXIM Policy regulation of Open General License (OGL). This means that they are deemed to be freely importable without restrictions and without a license, except to the extent that they are regulated by the provisions of the Policy or any other law. Imports of items not covered by OGL are regulated, and fall into three categories: banned or prohibited items, restricted items requiring an import license, and "canalized" items importable only by government trading monopolies and subject to Cabinet approval regarding timing and quantity. The following are designated import certificate issuing authorities: o The Department of Electronics for import of computer and computer related systems


o The Department of Industrial Policy and Promotion for organized sector firms except for import of computers and computer based systems

o The Ministry of Defense for defense related items o The Director General of Foreign Trade for small-scale industries not covered in the

foregoing. Capital goods can be imported with a license under the Export Promotion Capital Goods plan (EPCG) at reduced rates of duty, subject to the fulfillment of a time-bound export obligation. The EPGC plan now applies to all industry sectors. It is also applicable to all capital goods without any threshold limits, on payment of a 5 percent customs duty. A duty exemption plan is also offered under which imports of raw materials, intermediates, components, consumables, parts, accessories and packing materials required for direct use in products to be exported may be permitted free of duty under various categories of licenses. For the actual user, a non-transferable advance license is one such license. For those who do not wish to go through the advance-licensing route, a post-export duty-free replenishment certificate is available. Advance License: An advance license is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. that are consumed in the course of their use to obtain

the export product, may also be allowed under the plan. Duty free import of mandatory spares up to 10 percent of the CIF value of the license, which are required to be exported/ supplied with the resultant product, may also be allowed under Advance License. Advance license can be issued for: Physical exports: An advance license may be issued for physical exports to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for import of inputs required for the export product. Intermediate supplies: An advance license may be issued for intermediate supply to a manufacturer-exporter for the import of inputs required in the manufacture of goods to be supplied to the ultimate exporter/deemed exporter holding another Advance License. Deemed exports: An advance license can be issued for deemed exports to the main contractor for import of inputs required in the manufacture of goods to be supplied to the categories mentioned in paragraph 8.2 (b), (c), (d) (e) (f), (g), (i) and (j) of the Policy. An advance license for deemed exports can also be availed by the sub-contractor of the main contractor to such project provided the name of the sub contractor(s) appears in the main contract. Such license for deemed export can also be issued for supplies made to United Nations Organizations or under the Aid Program of the United Nations or other multilateral agencies and paid for in foreign exchange. Import Declaration: Importers are required to furnish an import declaration in the prescribed bill of entry format, disclosing full details of the value of imported goods.


Import Licenses (if applicable): All import documents must be accompanied by any import licenses. This will enable the customs to clear the documents and allow the import without delay. Ex-factory invoice, freight and insurance certificates: These must be attached so that the customs can verify the price and decide on the classification under which the import tariff can be calculated. Letter of Credit (L/C): All importers must accompany a copy of the L/C to ensure that payment for the import is made. Normally this document is counter-checked with the issuing bank so that outflow of foreign exchange is checked. Not all consignments are inspected prior to clearance, and inspection may be dispensed with for reputable importers. In the current customs set-up, an appointment with the clearing agents for clearance purposes will avoid delays. In general, documentation requirements, including ex-factory bills of sale, are extensive and delays are frequent. These cost time and money, including additional detention and demurrage charges, making it more expensive to operate and invest in India. For delayed clearances, importers seek release of shipments against a performance bond; furnishing a bank guarantee for this purpose is a more expensive proposition. Customs have recently extended operations to 24 hours a day to ensure timely clearance of export cargo. U.S. Export Controls

The Indian and the U.S. governments formed a High Technology Cooperation Group (HTCG) in November 2002 to facilitate and promote high technology bilateral trade. The Bureau of Industry and Security (BIS) (formerly known as the Bureau of Export Administration, BXA) is the American government agency responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of most commercial items. The BIS often refers to the items that they regulate as "dual-use" items, since these items have both commercial and military or proliferation applications, but purely commercial items without an obvious military use are also subject to the EAR. For further inquiries regarding the list of items requiring U.S. export clearance contact: Director, Office of National Security and Technology Transfer Controls 14th Street and Constitution Avenue, NW U.S. Department of Commerce, Washington DC 20230 Telephone: 202-482-4196 Fax 202-482-4094 Website: http://www.bis.doc.gov/ For questions regarding end-use checks or to speak with enforcement, please contact: Director, Office of Enforcement Analysis 14th Street and Constitution Avenue, NW Room 4065 U.S. Department of Commerce, Washington DC 20230 Telephone: 202-482-4255 Fax 202-482-0971

http://www.bis.doc.gov/


Website: http://www.bis.doc.gov/

Temporary Entry The Indian Customs Act, 1962 allows import of goods on a temporary basis into India. Section 74 of the Act provides for drawback on goods that are imported for a temporary period into India and exported out of the country. As per the Section 74, drawback is allowable on re-export of duty paid goods. When the goods are re-exported out of India, the exporter will be entitled to a drawback of a specified percentage of the duty paid at the time of import. The procedure for claiming duty drawback under Section 74 is governed by provisions of the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995. The rate of drawback available depends upon the time period for which the goods are stored in India or put to use. If goods are re-exported without being put to use in India, 98 percent of the customs duty would be available as duty drawback, provided that the exports have taken place within 24 months from the date of import. However, under section 75 of the Act, where the goods are used in India subsequent to their import, the drawback is determined on the basis of the duration of use of the goods in India (the length of period from the date of clearance for home consumption and the date goods are placed under customs control for export). The procedure for claiming duty drawback under Section 75 is governed by provisions of the Customs and Central Excise Duties Drawback Rules 1995. In addition, General Exemption No 14 of the Customs Tariff allows the import of goods for display or use at fair, exhibition, demonstration, seminar, congress and conferences, subject to specified conditions. The U.S. Commercial Service of the American Embassy assists U.S. companies with temporary entry of their product and other display items for trade events into India duty free for up to 6 months through its Customs Clearance Guarantee service. The products have to be re-exported within six months. Standards Standards setting as a trend are gaining momentum in India. India has generally made efforts to match national standards in line with international norms, and most Indian standards are harmonized with ISO standards. Nonetheless, some Indian standards are not matched with international standards, and several recent standards-related regulations have created barriers to trade and posed challenges to expanding U.S. exports in certain sectors. India has also frequently failed to notify the WTO of new standards and allow time for discussion with its trading partners prior to implementation. Because of pressure from consumer rights groups, NGOs, and environmental activists there is a growing emphasis on product standards in India in various industry sectors. The proactive role of the judiciary in formulating legal framework and regulations for better standards and control in sectors such as the environment have also contributed to an increased awareness and emphasis on product standards in India. But, for instance, while Indian food safety laws are outdated or in some cases more stringent than international norms, enforcement is weak.

http://www.bis.doc.gov/


Standards Organizations In India, voluntary standards are exclusively developed by the national standards body. The Bureau of Indian Standards (BIS), established under the Bureau of Indian Standards Act of 1986, is the national standards body of India responsible for development and formulation of standards. BIS is comprised of representatives of industry, consumer organizations, scientific and research bodies, professional organizations, technical institutions, Indian government ministries, and members of parliament. Besides development and formulation of Indian Standards, BIS is involved with product certification, quality system certifications and testing, and consumer affairs. The Ministry of Commerce, Government of India (GOI) has designated BIS as the National WTO-TBT Enquiry Point in accordance with its obligations to the agreement on Technical Barriers to Trade of the WTO. According to the agreement, BIS in liaison with the Indian Ministry of Commerce, issues notifications on proposed technical regulations and certification systems in India to the WTO. BIS’s Technical Information Services Center responds to domestic and foreign requests for information about Indian standards, technical regulations and conformity assessment rules. U.S. companies that wish to make comments on any notifications can obtain copies of the text from BIS from the WTO-TBT Enquiry Point, Technical Information Services Center, Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi 110 002 (Tel: 91-11-2323 0910/2323 0131; Fax: 91-11-2323 7995; Email: [email protected]; website: http://www.bis.org.in/other/WTOTBTEnquiry Point.htm). Comments received are communicated to the Ministry of Commerce. BIS is the only organization in India authorized to operate quality certification plans under an Act of Parliament. It serves as the official member and sets policy for Indian participation in the International Organization for Standardization (ISO) and International Electro technical Commission (IEC). NIST Notify U.S. Service Member countries of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical regulations that could affect trade with other Member countries. Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity to review and comment on proposed foreign technical regulations that can affect your access to international markets. Register online at Internet URL: http://www.nist.gov/notifyus/ Conformity Assessment A list of testing organizations spread throughout the country providing conformity testing against relevant Indian standards is available from the BIS website at: http://www.bis.org.in/lab/lab.htm In association with technical GOI agencies and NGOs, BIS carries out periodic surveillance inspections of products under mandatory certification. A provision exists for sub-contracting certification surveillance activities to relevant competent agencies in specific areas. Certain types of steel, rubber, and electronic products are presently under such surveillance agreements.

http://www.nist.gov/notifyus/

http://www.bis.org.in/lab/lab.htm


Product Certification BIS’s product standards are basically voluntary in nature, but subsequent to the removal of quantitative restrictions (QRs) on imports by India in 2000, the GOI, in order to provide protection to domestic producers in certain sectors, promulgated regulations dictating that imports of 109 products are subject to mandatory compliance with specified Indian quality standards. For compliance, all exporters/manufacturers of the 109 products are required to register with, and obtain certification from the Bureau of Indian Standards, before exporting such goods to India. The list of 109 products includes various food preservatives and additives, milk powder, infant milk food, certain kinds of cement, household and similar electrical appliances, several types of gas cylinders, and multi-purpose dry batteries. These 109 products generally must be tested and certified by BIS in India. BIS now however, also has a system for foreign companies to receive automatic certification for products not manufactured in India. The system is based on a self-certification basis, under which a foreign manufacturer is permitted to apply the standards mark on the product after ascertaining its conformity to the Indian Standard licensed for. At the foreign manufacturer’s expense, BIS inspectors travel to the manufacture’s country to inspect their production facility to pre-certify the company and its production system, and then authorize subsequent monitoring and compliance by an independent inspector to ensure that the company maintains the specified standards. Information on the application procedure for BIS Product Certification Plan for foreign companies is available through the BIS website at: http://www.bis.org.in Exporters/manufacturers of these products also are required to maintain a presence in India. This requirement does not apply if the foreign manufacturer nominates an authorized representative in India who agrees to be responsible for compliance with the provisions of BIS on behalf of the foreign manufacturer as per an agreement signed between the manufacturer and BIS. Under separate arrangements some products have been placed under special certification plans of lot or batch inspections carried out by BIS inspecting officers. A majority of gas cylinders, deep well hand pumps and valves are certified through such plans. To facilitate international trade and cooperation, India has plans to harmonize its standards with other countries, primarily with its main trading partners. A serious effort is being made by BIS to have mutual recognition of standards with various countries so that other countries provide recognition of the Indian standards on certain products and vice versa. The BIS has expressed interest in having mutual recognition agreements with U.S. organizations. Accreditation The National Accreditation Board for Testing and Calibration Laboratories (NABL) established in 1985 as an autonomous body under the Department of Science & Technology is authorized by the GOI as the sole accreditation body for testing and calibration laboratories. More than 200 testing and calibration laboratories have been accredited to date. A list of accredited laboratories is available from NABL’s website at: http://www.nabl-india.org For international mutual acceptance of test results in order to be compliant with the WTO/Technical Barriers to Trade (TBT) regulations, NABL is a member of international

http://www.bis.org.in/

http://www.nabl-india.org/


organizations such as International Laboratory Accreditation Co-operation (ILAC) and Asia Pacific Laboratory Accreditation Co-operation (APLAC). NABL is a signatory to ILAC as well as APLAC Mutual Recognition Arrangements (MRA), based on mutual evaluation and acceptance of other MRA Partner laboratory accreditation systems. More and more Indian manufacturing companies are investing in standards accreditation. The number of plants in India with ISO 9000 and ISO 14000 accreditation increased from a negligible figure in the early nineties to more than 8000 in 2003. Five Indian companies have won the Deming prize for total quality management in FY 2002-03, while eight more received honors in 2008. Eighteen manufacturing plants of 10 Indian companies have been recognized by the Japanese Institute of Plant Management for excelling in total productive management in 2003.

Trade Agreements India has entered into bilateral and regional trading agreements over the years. These agreements, besides offering preferential tariff rates on the trade of goods among member countries, also provide for wider economic cooperation in the fields of trade in services, investment, and intellectual property. The preferential arrangement/plans under which India is receiving tariff preferences are the Generalized System of Preferences (GSP) and the Global System of Trade Preferences (GSTP). Presently, there are 46 member countries of the GSTP and India has exchanged tariff concessions with 12 countries on a limited number of products. Other such preferential arrangements include the SAARC Preferential Trading Agreement (SAPTA), the Bangkok Agreement and India–Sri Lanka Free Trade Agreement (ISLFTA). These arrangements/ agreements prescribe Rules of Origin that have to be fulfilled for exports to be eligible for tariff preference. India and Singapore have signed a Comprehensive Economic Cooperation Agreement, which is an integrated package of agreements embracing trade in goods, services, investments and economic co-operations in education, science and technology, air services, and intellectual property. The agreement, which came into effect on August 1, 2005, provides wide-ranging exemptions and reductions on basic customs duty on products imported from Singapore into India. The Indian Ministry of Commerce projected recently that 60 percent of India's future trade would be accounted for by free trade agreements (FTAs), with such countries as Paraguay, Argentina, Brazil, Pakistan and even China. The Indian government is in talks with the Mercosor (a trade association comprising Argentina, Brazil, Chile, Paraguay and Uruguay) and the SACU (South African Customs Union) and is looking to increase bilateral engagements with more countries. In a major policy shift, the government has decided to convert all Preferential/Free Trade Agreements (PFA/FTA) into Comprehensive Economic Cooperation Agreements (CECA). This goes beyond the Indian government’s bid in recent months to embrace bilateralism aggressively. The decision seems to be aimed at mollifying the World Trade Organization (WTO), which cautioned India against negotiating exclusively PFAs/FTAs.


PTAs/FTAs usually involve structured reduction in tariffs between two countries. CECAs would cover preferential relaxation of FDI rules vis-à-vis the partner country, tax holidays on investment and income, easing of visa restrictions etc. Trade in services too would come under the purview of CECA. The proposed free trade agreements (FTAs) with Thailand, Mercosur and Asean would now be made CECAs. This has already been done with Sri Lanka. The preferential trade agreement (PTA) with the South Africa Customs Union (SACU) would be merged with new CECA with South Africa. The Minister added that efforts were on to convert the SAARC Preferential Trade Area into a full-fledged FTA to be called SAFTA. This came into effect in January 2006. Other proposed alliances with Russia, China and Israel would also be CECAs, rather than mere FTAs. The proposed agreement with the Gulf Cooperation Council (GCC) is envisaged to be a CECA, as is the India-Singapore agreement. The Indian government has also nominated certain authorized agencies to issue a Non Preferential Certificate of Origin in accordance with Article II of International Convention Relating to Simplification of Customs formalities, 1923. These Certificates of Origin evidence the origin of goods and do not bestow any right to preferential tariffs. India and the U.S. are not part of any specific free trade conglomerate of nations, and this, experts feel, is an imperative to bolster both trade and partnership between the two countries.

Leading Sectors for US Investment

The following Best Prospects for U.S. Exports are arranged alphabetically: Food Industry The Indian food market is estimated at over US$ 182 billion, and accounts for about two thirds of the total Indian retail market. Further, according to consultancy firm McKinsey & Co, the retail food sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which would grow to US$ 400 billion from US$ 175 billion by 2025. Healthcare The healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size of US$ 35 billion, according to a Yes Bank and ASSOCHAM report.

The sector has registered a growth of 9.3 per cent between 2000-2009, comparable to the sect oral growth rate of other emerging economies such as China, Brazil and Mexico. According to the report, the growth in the sector would be driven by healthcare facilities, both private and public sector, medical diagnostic and path labs and the medical insurance sector. Healthcare facilities, inclusive of public and private hospitals, the core sector, around which the healthcare sector is centered, would continue to contribute over 70 per cent of the total sector and touch a figure of US$ 54.7 billion by 2012.


Adds a FICCI-Ernst and Young report, India needs an investment of US$ 14.4 billion in the healthcare sector by 2025, to increase its bed density to at least two per thousand population. According to a latest report by McKinsey, driven by strong local demand, Indian healthcare market is expected to continue growing close to previously projected rates of 10 to 12 per cent. With average household consumption expected to increase by more than seven per cent per annum, the annual healthcare expenditure is projected to grow at 10 per cent and also the number of insured is likely to jump from 100 million to 220 million. IT Enabled Services The National Association of Software and Service Companies (NASSCOM) is the apex body for software services in India. According to its recently released publication-Strategic Review 2010, the IT-BPO sector's revenue as a proportion of the country's gross domestic product (GDP) has grown from 1.2 per cent in FY 1998 to an estimated 6.1 per cent in FY 2010.

As per the Strategic Review 2010, the BPO sector continues to the fastest growing segment of the industry and is expected to reach US$ 12.4 billion in FY 2010, growing at 6 per cent.

As per NASSCOM's findings published in March 2009, Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71.7 billion in aggregate revenue (including hardware). Of this, the software and services segment accounted for US$ 59.6 billion.

As per the Department of Information Technology, the ITeS-BPO segment in the domestic market has witnessed noticeable growth over the past few years. The share of ITeS-BPO industry in the domestic market is estimated to have increased from 3.8 per cent in 2001-02 to 15.3 per cent in 2008-09.

According to a report by research and advisory firm Gartner published in March 2010, the domestic BPO market is expected to grow at 25 per cent in 2010 to touch US$ 1.2 billion by 2011. Further, the BPO market in India is estimated to grow 19 per cent through 2013 and grow to US$ 1.8 billion by 2013.

According to the report, the domestic India BPO services market grew by 7.3 per cent year-on-year in 2009.

Steel India has retained its position as the 5th largest producer in 2010 and recorded a growth of 11.3 per cent as compared to 2009. India has also emerged as the largest sponge iron/direct reduced iron (DRI) producing country in the world in 2010, a rank it has held on since 2002. Sponge iron production grew at a CAGR of 11 per cent to reach a level of 20.74 million tonne (MT) in 2009-10 as compared to 14.83 MT in 2005-06.

India is expected to become the second largest producer of steel in the world by 2015-16, on account of growing steel demand, rich resources base of iron ore, skilled manpower and vast experience of steel making and the huge capacity expansion planned and being executed in the steel sector.

With the expanding consumer market, Indian steel industry is likely to receive huge domestic and foreign investments. Nearly 222 memorandums of understandings (MoUs) for planned capacity of around 276 MT have been signed between the investors and various State


Governments, mostly in Orissa, Jharkhand, Chhattisgarh and West Bengal.

India has recorded a growth of over 8.6 per cent, producing 6.35 MT of steel in March 2011 as against 5.85 MT in the corresponding month in 2010, according to World Steel Association (WSA).

Steel exports has increased by 17.3 per cent as it reached an estimated 2.46 MT, while steel imports were at an estimated 5.36 MT, a growth of 2.8 per cent in 2010

Significantly, state-owned steel maker, Steel Authority of India (SAIL), which reported a net profit of US$ 571 million in January-June 2009, has become the most profitable steel company globally, beating steel majors such as Arcelor Mittal, Posco, Bao Steel and Nippon in the half yearly profits. Steel production reached 28.49 million tonne (MT) in April-September 2009. The National Steel Policy has a target for taking steel production up to 110 MT by 2019–20. Nonetheless, with the current rate of ongoing greenfield and brownfield projects, the Ministry of Steel has projected India's steel capacity is expected to touch 124.06 MT by 2011–12. In fact, based on the status of memoranda of understanding (MoUs) signed by the private producers with the various state governments, India's steel capacity is likely to be 293 MT by 2020. Textiles The Minister said that the Government has included a significant increase in funds allocated to Cotton Technology Mission and to the integrated textile parks, and extension of the interest subvention of 2 per cent until March 31, 2011 for exports covering handicrafts, carpets and handlooms segments of this industry. Mukherjee said that the textile industry is also being supported with an extensive skill development program to train 3 million persons over a 5-year period, by leveraging the strength of existing institutions under the textile ministry. The Indian textile industry accounts for about 14 per cent of India's total industrial production and contributes to nearly 15 per cent of total exports, which amounted to US dollar 50 billion in the year 2009-10. It provides direct employment to about 35 million people and another 56 million are engaged in allied activities. Currently seven textile parks are already in various stages of completion in Maharashtra. India offers cheaper production and marketing costs and enormous opportunities that have tempted Taiwanese companies to work on joint ventures with Indian companies, especially for the manufacture of manmade fabrics. Several European textile and textile machinery manufacturing companies have shown interest in sourcing garments from India. Textile companies were keen to set up base in India due to the cheap labour available here. I ndia offers various incentives like low-cost labour and intellectual right protection to foreign investors. The country allows 100 per cent FDI in the textiles sector.

Tourism and Hospitality


As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019. India has been ranked the "best country brand for value-for-money" in the Country Brand Index (CBI) survey conducted by FutureBrand, a leading global brand consultancy. India also claimed the second place in CBI's "best country brand for history", as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of "rising stars" or the countries that are likely to become major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam.

Business Travel

Business Customs

One of the most striking features about India is the size and diversity of the country. Given its vastness and variety, there is no single way to understand India. That being said, there are a couple of major issues that business visitors should keep in mind: The sense of time is much different for Indians than it is for Americans. If there is a business event such as a cocktail hour at night, it may begin at 7, but expect that people will not show up until an hour or so later. Although many Indians are aware of Americans’ adherence to time, business meetings can also start late, so it’s important to keep your schedule flexible. It is considered polite in India to inquire about dietary preferences, since Hindus abstain from beef, Muslims abstain from pork, and Indians of many religions practice vegetarianism. For your reference, some popular English-language guidebooks include: Lonely Planet India, Fodor's India, and the India Eyewitness Travel Guide. Language Although English is considered to be the official language of business, it’s important to keep in mind that the American accent is very difficult for the Indian ear to understand – likewise, the Indian accent is often difficult for Americans to understand – so at times, we remain divided by a common language. Remember to speak slowly and clearly. India has a diverse list of spoken languages among different groups of people. At least 30 different languages and around 2000 dialects have been identified, sixteen of which can be found on India’s currency. The Constitution of India has stipulated the usage of Hindi as the official language and English as the associate official language for official communication for the national government. Additionally, it contains a list of 22 scheduled languages. Currency


The Indian currency is the Rupee (Rs). The value of the US Dollar to the Rupee is roughly US$1 = Rs 55.40. Exchange rates change often, however, so check the current rate prior to your trip to India. Major hotels, shops, and restaurants in the urban areas commonly accept credit cards. However, for taxis, smaller businesses, and in rural areas, it is a cash-only economy, and it is important to have small bills as making change is usually an issue. While not as abundant as in the US, Automatic Teller Machines (ATMs) can be found in India’s major cities. Business travelers should be aware that the costs to travel in India have become remarkably high, especially in the last year. In the major urban cities, travelers should not be surprised at hotel room quotes of over $400 per night at the 5-star rated hotels. Do be aware that the mid-range hotel category is not well developed in India, and while there are “guest houses” and other “heritage” hotels offering lower prices, business travelers may not find these accommodations suitable. When booking a hotel, be sure to consider location as even relatively small distances can require a lot of road travel time, given the poor traffic infrastructure in India (see the transportation section later in this chapter). Local Time and Business Hours Despite its geographic size, India has adopted one time zone, five and one-half hours ahead of Greenwich Mean Time (GMT). It has not adopted daylight savings time and uses standard time countrywide throughout the year. Therefore, the time difference between India and the United States varies depending on the time of year. India is nine hours thirty minutes ahead of Washington, D.C., during daylight savings time and 10 hours 30 minutes ahead of Washington, D.C., during standard time. The standard six-day working week is Monday through Friday, 9:30 a.m. to 5:30 p.m., with a half-day on Saturday. Normally, lunch is for one hour, between 1:00 p.m. and 2:00 p.m. However, in some large cities, such as Mumbai, some places of business start working earlier to avoid congested traffic while commuting. Central Government offices are closed on Saturdays. Banking hours are 10:00 a.m. and 2:00 p.m. on weekdays and 10:00 a.m. to 12:00 noon on Saturdays. In major metropolitan cities, several foreign and Indian-owned banks are beginning to provide 24-hour banking services.

Telecommunications

While telecommunication service is generally adequate in India, knowing what digits to dial can be a little complicated, especially between landlines and cell phones, and when making international calls. The following dialing instructions are worth keeping handy: Caller in USA to Local Cell Phone……....[011] +91+Local Cell number Caller in USA to Local Landline...............[011] +91+AC+Number Local landline to int’l number……. ……...00+CC+AC+Number Local landline to local long distance…….0+AC+Number Local Landline to Local Cell phone……...Local cell number Local Cell to India Landline………………0+AC+number Local Cell to Local Cell…………………...Local cell number Local Cell to Local Cell (in another city)...0+Cell number Local Cell to Int’l long distance…………..00+CC+AC+Number


Local Cell to World Cell…………………..00+World Cell Number World Cell to Local Cell…………………..00+91+Local Cell number World Cell to Local Landline……………..00+91+AC+Number World Cell to Int’l long distance……….....00+CC+AC+Number World Cell to USA…………………………00+1+AC+Number AC = area code CC = country code *The country code for India is 91 Some Indian area codes include: Delhi 11 Kolkata 33 Chennai 44 Mumbai 22 Bangalore 80 Hyderabad 40 Ahmedabad 79 Pune 20 Transportation

To and From India There are a number of direct flights to India from the U.S. on American carriers. Flight times are 14-16 hours. city to carrier city from New Delhi American Airlines Chicago New Delhi Continental Newark/EWR Mumbai Continental Newark/EWR Mumbai Delta New York/JFK Getting to South or East India from the U.S. requires connecting, with the most and fastest options through Europe. United/Lufthansa has a fight connecting through Frankfurt, Delta/Air France through Paris, and British Airways through London. Travelers from the West Coast might consider going through Bangkok or Singapore. Within India Travel by road in India is dangerous. A number of U.S. citizens have suffered fatal traffic accidents in recent years. Travel at night is particularly hazardous. Buses, patronized by hundreds of millions of Indians, are convenient in that they serve almost every city of every size. However, they are usually driven fast, recklessly, and without consideration for official rules of the road. Trains are somewhat safer than buses, but train accidents still occur more frequently than in developed countries. In order to drive in India, one must have either a valid Indian drivers’ license or a valid international drivers’ license. However, the vast majority of foreign visitors to India hire a car and driver. This is highly recommended. Travelers should remember to use seatbelts in both rear and front seats where available, and to ask their drivers to maintain a safe speed.


Heavy traffic is the norm and includes (but is not limited to) overloaded trucks and buses, scooters, pedestrians, bullock and camel carts, horse or elephant riders en route to weddings, and free-roaming livestock. Traffic in India moves on the left. It is important to be alert while crossing streets and intersections, especially after dark as traffic is coming in the “wrong” direction (i.e., from the left). If a driver hits a pedestrian or a cow, the vehicle and its occupants are at risk of being attacked by pedestrians. Such attacks pose significant risk of injury or death to the vehicle's occupants or at least of incineration of the vehicle. It can thus be unsafe to remain at the scene of an accident of this nature, and drivers may instead wish to seek out the nearest police station.

Visa Information

ENTRY/EXIT REQUIREMENTS: All U.S. citizens need a valid passport and valid Indian visa to enter and exit India for any purpose. Visitors, including those on official U.S. government business, must apply for visas at an Indian Embassy or Consulate abroad prior to entering the country, as there are no provisions for visas upon arrival for U.S. citizens. If you don’t have a valid passport and visa you could be immediately deported. The U.S. Embassy and Consulates in India cannot assist you if you arrive without proper documentation. You should carry photocopies of the bio-data page of your U.S. passport and the pages containing the Indian visa and Indian immigration stamps. These come in handy if you lose your passport or if it is stolen. Having them will also help in obtaining an exit visa from the Indian government. Replacing a lost visa, which is required in order to exit the country, can take three to four business days.

U.S. citizens wishing to visit India are responsible for requesting the correct type of visa from the Indian Embassy or Consulate, as there generally are no provisions for changing your immigration category (e.g., from tourist to work visa) once admitted. Please note that Indian visa regulations have gone through frequent, poorly advertised, and inconsistently enforced changes during the past year. Travelers are urged to check the Indian Government Ministry of Home Affairs website before any travel to India to ensure they have the most current information. If you travel on a tourist visa, you are generally given six months of legal stay upon entering India; the Government of India rarely grants extensions within the country. Indian Embassy and Consulates in the United States outsource their visa application process to Travisa Visa Outsourcing. Diplomatic and Official visa applications, however, are still accepted directly at the Indian Embassy and Consulates. As of October 1, 2007 the Indian Embassy outsourced visa collection and delivery processing to Travisa Outsourcing 1731 21ST. ST. NW, Washington, DC 20009 http://indiavisa.travisaoutsourcing.com/ For current entry and customs requirements for India, travelers may contact the Embassy of India at : 2536 Massachusetts Ave., NW, Washington, DC 20008 (202/ 797-4693) or the nearest Consulate General: Chicago (312/595-0405/0410), Houston (713-626-2148/9), New York (212/774-0600/0610/0662) or San Francisco (415/668-0683/0662). information is also available at: http://www.indianembassy.org/

http://www.mha.nic.in/




Water Industry in India

India has a highly seasonal pattern of rainfall with 50% of precipitation falling in just 15 days over 90 % of river flows in just four months. Throughout history people have adopted to this variability by either living along river banks or by careful husbanding and management of water. until the 19th century most of this management was at the community level, relying on the plethora of imaginative and then effective methods of harvesting rainwater in tanks and small underground storages. Over the past 150 years India has made large investments in large scale water infrastructure, much of which brings water to previously water scarce areas. This has resulted in a dramatic economic shift, with once arid areas becoming the centers of economic growth, while the historically well- watered areas have seen much slower progress. For the most part the results of this “hydraulic infrastructure platform” have been spectacular both nationally and regionally (where such projects have generated large direct and equally large indirect economic benefits). There are regions in India that can benefit greatly from increased investment in water infrastructure, of all scales. India can still store only relatively small quantities of its fickle rainfall whereas rich countries such as the United States and Australia have built over 5,000 cubic meters of water storage per capita and middle- income countries like South Africa, Mexico, morocco and china can store about 1000 cubic meters per capita. India dams can store only 200 cubic meters per person. India can store about 30 days of rainfall as compared to 900 days in major river basins in arid areas of developed countries. A compounding factor is that there is every indication that the need for storage would grow because of the global climate change that will have a major impacts in India. There is quite a possibility of rapid glacial melting in the coming decades in the western Himalayas and increased variability of rainfall in large parts of the subcontinent. A review of India’s hydropower infrastructure reveals a similar picture, whereas industrialized countries harness over 80% of their economically viable hydropower potential, in India the figure is only 20% despite the fact that the Indian electricity system is in desperate need of peaking power and despite the fact that Himalayan hydropower sites are from social and environmental perspective among the most benign in the world, especially in the water rich northeast of the country, water can be transformed from a curse to be blessing only if major investments are made in water infrastructure projects. Recognizing the need, the prime minister has recently called for the establishment of a “Tennessee valley authority” (TVA) for the Brahmaputra river which would combine major water infrastructure with modern management approaches to make water a stimulus for growth. In many parts of the country there are also substantial returns from investments in smaller-scale, community-level water storage infrastructure (such as tanks, check dams and local water recharge systems). There is a massive need for investment in water supply systems for growing cities and for underserved rural populations. The problems of developing India, however, are not limited to providing adequate quantities of water. Growing populations, cities and industries are putting great stress on the quality of the environment. Many river’s even the large one’s have turned into fetid sewers. India’s cities and industries need to use water more effectively and there will have to be massive investments in sewers and waste water treatment plants.


Freshwater situation in India

Traditionally, India has been well endowed with large freshwater reserves, but the

increasing population and overexploitation of surface and groundwater over the past

few decades has resulted in water scarcity in some regions.

Growth of the Indian economy is driving increased water usage across sectors.

wastewater is increasing significantly and in the absence of proper measures for

treatment and management, the existing freshwater reserves are being polluted

Increased urbanization is driving an increase in per capita water consumption in

towns and cities.

Urbanization is also driving a change in consumption patterns and increased demand

for water intensive agricultural crops and industrial products.

India can prevent an impending water stress situation by integrating its regional water

management programs at the national level


Source: www.google.com

Agriculture accounts for the majority of renewable water use in India, and demand from this sector is rising — by more than 20 percent over the past decade. As India’s economy grows, the demand for non-agricultural water uses is expected to increase, placing additional pressure on supply. The availability of renewable water resources, in particular monsoon rains, is a critical determinant of India’s annual crop production. Given the uneven nature of this rainfall and the rising demand for water, the challenge for the government will be to ensure that resources are being optimally utilized. As irrigation is still the largest consumptive water use sector in India. Irrigation contributed to 80% of the total withdrawals of 680 BCM (Billion cubic meters) in 2000. The domestic and industrial sectors contributed 20 %. Groundwater irrigation, which expanded rapidly in the last few decades, forms a major part of the water withdrawals in many river basins. At present, more than 60 % of the total irrigated area is groundwater irrigated. However, with relatively higher project efficiencies than surface irrigation, groundwater contributed to only 45 % of the total irrigation withdrawals. Still, due to over-abstraction, some basins are facing severe regional water table depletions Future Demand Projections: Drivers of Water Usage in Future: Populations: Expected to increase from 1.13 bn in 2005 to 1.66 bn by 2050. Urbanization: Urban population is expected to grow from 29.2% of the total population in 2007 to 55.2% by 2050. Per capita income: It is expected to increase from $468 in 2007 to $17,366 by 2050 Domestic Water Demand: With increasing household income and increasing contributions from the service and industrial sectors, the water demand in the domestic and industrial sectors could increase substantially. We assume that the average domestic water demand would increase from 85 liters per capita per day (lpcd) in 2000, to 125 and 170 lpcd by 2025 and 2050, respectively. The assumed norms where the rural domestic water demand in 2025 and 2050 are assessed at 70 and 150 lpcd, respectively, and the urban water demand at 200 and 220 lpcd, for 2025

http://www.google.com/


and 2050 respectively. They also assumed 100 % coverage of domestic water supply for both the rural and the urban sectors. At this rate, the average per capita water demand in 2025 and 2050 is estimated to be 126 and 191 lpcd, respectively. The domestic water demand includes the livestock water demand as well, which we assume to be 25 liters per head for the cattle and buffalo population. The livestock population is projected at the rate of animal products calorie supply. We estimate the livestock water demand to increase from 2.3 BCM in 2000 to 2.8 and 3.2 BCM by 2025 and 2050, respectively. Table1. Annual Water Statistics:

ANNUAL WATER REQUIREMENT FOR DIFFERENT USES (IN KM3)

YEAR 2010 YEAR 2025

YEAR 2050

USE YEAR 1997-98

LOW HIGH

% LOW HIGH

% LOW HIGH

%

SURFACE WATER

IRRIGATION 318 330 339 48 325 366 43 375 463 39

DOMESTIC 17 23 24 3 30 36 5 48 65 6

INDUSTRIES 21 26 26 4 47 47 6 57 57 5

POWER 7 14 15 2 25 26 3 50 56 5

INLAND NAVIGATION

_ 7 7 1 10 10 1 15 15 1

ENVIRONMENT- ECOLOGY

_ 5 5 1 10 10 1 20 20 2

EVAPORATION LOSSES

36 42 42 6 50 50 6 76 76 6

TOTAL 399 447 458 65 497 545 65 641 752 64

GROUNDWATER

IRRIGATION 206 213 218 31 236 245 29 253 344 29

DOMESTIC 13 19 19 2 25 26 3 42 46 4

INDUSTRIES 9 11 11 1 20 20 2 24 24 2

POWER 2 4 4 1 6 7 1 13 14 1

TOTAL 230 247 247 35 287 298 35 332 428 36

GRAND TOTAL 629 694 694 100

784 843 100

973 1180 100

TOTAL WATER USE

IRRIGATION 524 543 557 78 561 611 72 628 807 68

DOMESTIC 30 42 43 6 55 62 7 90 111 9

INDUSTRIES 30 37 37 5 67 67 8 81 81 7

POWER 9 18 19 3 31 33 4 63 70 6

INLAND NAVIGATION

0 7 7 1 10 10 1 15 15 1


ENVIRONMENT- ECOLOGY

0 5 5 1 10 10 1 20 20 2

EVAPORATION LOSSES

36 42 42 6 50 50 6 76 76 7

TOTAL 629 694 710 100

784 843 100

973 1180 100

State Wise Distribution of Groundwater Monitoring Wells Ground water levels are being measured four times a year during January, April/ May, August and November. The ground water regime monitoring started in the year 1969 by Central Ground Water Board. At present a network of 15640 ground water monitoring wells located all over the country is being monitored. Ground water samples are collected from these observation wells once a year during the month of April/ May to obtain background information of ground water quality changes on regional scale. The database thus generated forms the basis for planning the ground water development and management programme. This data is used for assessment of ground water resources and changes in the ground water regime consequent to various development and management activities.

NO NAME OF STATE NO OF GROUNDWATER WELLS (AS ON 31.03.2010)

1 ANDHRA PRADESH 981

2 ARUNACHAL PRADESH 19

3 ASSAM 381

4 BIHAR 373

5 CHHATTISGARH 516

6 DELHI 87

7 GOA 53

8 GUJARAT 966

9 HARYANA 426

10 HIMACHAL PRADESH 85

11 JAMMU & KASHMIR 206

12 JHARKHAND 208

13 KARNATAKA 1499

14 KERALA 864

15 MADHYA PRADESH 1325

16 MAHARASHTRA 1496

17 MANIPUR 25

18 MEGHALAYA 38

19 NAGALAND 17

20 ORISSA 1214

21 PUNJAB 261

22 RAJASTHAN 1373

23 TAMIL NADU 906

24 TRIPURA 42

25 UTTAR PRADESH 1218

26 UTTARANCHAL 44

27 WEST BENGAL 909


Source:www.cgwb.gov.in

Agriculture: Production of water-intensive crops is expected to grow by 80% between 2000 and 2050. Economic and demographic factors are the driving force

Rise in water consumption: Rice, wheat and sugarcane together constitute ~90% of India’s crop production and are the most water-consuming crops

India has the highest water footprints among the top rice and wheat producing countries (China, US, Indonesia, etc.)

Over-exploitation of groundwater: States with the highest production of rice/wheat are expected to face groundwater depletion of up to 75%, by 2050

Increase in wastewater discharge: Agriculturally based industries such as textiles, sugar and fertilizer are among the top producers of wastewater

Irrigation demand in the major river basins is expected to deplete groundwater levels by 2050:

Major River Basin

Major Agricultural States

Population Density

Water Used as Irrigation as a % of total consumption

Ganges Uttar Pradesh 449 91%

Krishna Maharashtra, Karnataka 253 90%

Kaveri Tamil Nadu, Karnataka 389 95%

Godavari Andhra Pradesh, Karnataka 189 89%

Groundwater depletion has started affecting most of the river basins which support agriculture in these states by 2050…..

Groundwater level in the Ganges basin (which provides water to UP) is projected to deplete by 50-75%

Groundwater levels in the Krishna, Kaveri and Godavari basins (which provide water to Maharashtra, Tamil Nadu, Karnataka and AP) are projected to deplete by 50%

Industrialization: In a rapidly booming economy, we expect the contribution of the industrial sector to increase very much, and the industrial water demand to also increase accordingly. However, the

UNION TERRITORIES

1 ANDAMAN & NICOBAR 63

2 CHANDIGARH 16

3 DADRA & NAGAR HAVELI 10

4 DAMAN & DIU 4

5 PONDICHERRY 15

TOTAL 15,640

http://www.cgwb.gov.in/


dearth of information—the types of industries, their growth, water use and the extent of recycling is a constraint for future projections in the context of increasing economic growth. The NCIWRD commission (National Commission Integrated Water Resource Development), based on a small sample of industries and their water use, projected that industrial water demand would increase from 30 BCM in 2000, to about 101 and 151 BCM by 2025 and 2050, respectively. However, an analysis using the global trends show that, with the present economic growth rates, the per capita industrial water demand could increase from 42 m3 person in 2000, to about 66 and 102 m3 /person by 2025 and 2050, respectively or the total industrial water demand to increase to 92 and 161 BCM by 2025 and 2050, respectively. The estimations of national and international agencies on industrial water use in the country vary significantly. Industrial water use in India stands at about 40 billion cubic meters or nearly 6 per cent of total freshwater abstraction. According to the Central Pollution Control Board (CPCB), in 2000, India’s annual fresh water

withdrawals were about 500 billion cubic meters and the Indian industry consumed about 10

billion cubic meter of water as process water and 30 billion cubic meters as cooling water.

Therefore, according to CPCB data, the water consumption in Indian industry accounts for

about 8 per cent of the total fresh water use in the country.

Category 1990 2010 2025 2050

Irrigation 460 (88.6%) 536 (77.3%) 688 (73%) 1008 (70.9%)

Industries + Energy 34 (6.6%) 41.4 (6%) 80 (8.5%) 121 (8.5%) 143 (10.1%)

Total (including others) 519 693 942 1422

Source: National commission for integrated water resources development plan, Ministry of water resources, 1999

Source: www.mowr.gov.in

According to the World Bank, the water demand for industrial uses and energy production will grow at a rate of 4.2 per cent per year, rising from 67 billion cubic meters in 1999 to 228 billion cubic meter by 2025. Therefore, according to the World Bank the current industrial water use in India is about 13 per cent of the total fresh water withdrawal in the country. Despite differences, the estimates on industrial water use by the three agencies have a point in common. All the three agencies concur that industrial water use is growing at the fastest pace in the country. Industrial contribution to the GDP is expected to increase from 78%2 in 2000 to 92%2 by 2015. Industrialization and infrastructure growth are projected to drive water consumption and lead to increased discharge of untreated wastewater.

Industrial water consumption is expected quadruple between 2000 and 2050; by 2050 industrial water consumption will reach 18% of total annual water consumption, up from just 6% in 2000

Industrial wastewater discharge causes pollution and reduces available Freshwater reserves

6.2 Bn liters of untreated industrial wastewater is generated every day.

http://www.mowr.gov.in/


Thermal power plants and steel plants are the highest contributors to annual industrial wastewater discharge.

Rapid industrialization and unplanned urban growth is resulting in the generation and discharge of large quantities of wastewater into existing water bodies.

Indian Companies Involved in Proactive Implementation of Sustainable Water Management Programs

Companies Water Management Techniques Initiatives

Vishakhapatnam Steel Plant

Rain Harvesting , Sewage water management & recycling

Invested $0.47 MM for water conservation and 4.6 MM for ongoing projects in 2006-2007 & Installed 9 check dams and 18 recharge wells for water harvesting

Hindalco

Watershed management , Rainwater harvesting & community programs

Set up 36 lift irrigation projects, 27 small check dams and 150 tanks for rainwater harvesting at Renukoot Uttar Pradesh in 2004-2007. Provided irrigation water for 16,000 hectares of land increasing agricultural production by 17850 mt and benefiting 20655 farms

ACC LTD Rainwater Harvesting & Water consumption monitoring

Saved 1 MM liters/day at their cement plant at Chaobasa Jharkhand during 2006-2007

Wipro LTD Rainwater Harvesting & Recycling water from cooling towers

Harvested 8.5 MM liters of rainwater through projects at 6 locations across India in 2007-2008

Tata Chemicals LTD

Sewage water management, Desalination and Watershed management

Invested $21,000 in 2006-2007 for water conservation and recycling projects saving 50MM liters of water per year

Ashok Leyland Rainwater harvesting & Optimizing of cooling tower operations

Built rainwater storage capacity of 70 MM liters at Hosur, Karnataka in 2007. Improved Groundwater table in Hosur (e.g. a depleted well started yielding 0.1MM liters of water per day

Bajaj Auto

Drinking water and purification systems, Rainwater harvesting & watershed development

Invested $12,600 in floor and tray cleaning machines in 2007, saving 27.3 MM liters of water per year


Mahindra & Mahindra LTD Wastewater treatment & Recycling

Reduced water consumption per vehicle manufactured from 6380 liters in 2003-2004 to 4620 liters in 2006-2007 at their plant in Nasik, Maharashtra & used water cleaning and recirculation system in the paint section of the plant of the plant to save 3,00,000 liters.

Glaxo Smith Kline Consumer Health care Water conservation equipment

Invested $12,600 in floor and tray cleaning machines in 2007, saving 27.3 MM liters of water per year

ITC LTD

Community water management , Rainwater harvesting & recycling and conservation

Saved 1.1 Bn liters of water in 2006-2007 at Bhadrachalam, Andhra Pradesh

Source:www.grailreseach.com

Status of Water Supply in Class-I Cities and Class-II Towns: Class I Cities: There is an increasing trend in the population of Class-I Cities, due to which demand of water is also increasing and so that sewage generation.

There are 498 Class-I cities, having water supply of 44769 Millions Liter per Day (MLD).

The population of Class-I Cities is projected 22.76 Millions.

Among all the states Maharashtra is most populated and has maximum water supply that is 12482MLD (27 % of total water of all 498 class-I cities)

Next to Maharashtra, Uttar Pradesh has the water supply of 4382 MLD, which is 9.7% of total water supply of all class-I cities.

Among all the States/UTs per capita water supply of Chandigarh is maximum (540 MLD) followed by Maharashtra with 310 MLD.

National average for per capita water supply is 179 considering Chandigarh as outlier. Class II Towns:

There are 410 Class-II Towns (population between 50,000 to 1, 00,000) having water supply of 3324 Million Liter per Day (MLD).

The population of 410 Class-II Towns is projected to 3.0 Crore.

Among all the states/UTs Andhra Pradesh is most populated having water supply of 272 MLD and per capita water supply 78 MLD.

Total water supply of Class-II Towns is reported to 3324 MLD, which is 6.91 percent of total water supply (water supply of class-I cities and class-II towns).

Uttar Pradesh has the maximum water supply i.e. 432 MLD, which is 13 % of total water supply of class-II towns.

Next to Uttar Pradesh, Karnataka state has water supply of 291 MLD (8.71%) and then

Gujarat with 284 MLD (8.54%).

Among all the states Punjab has maximum per capita water supply i.e. 177 MLD.

http://www.grailreseach.com/


National average for per capita water supply is 120 MLD. Total Water Supply of Class I cities & Class II Towns:

Total water supply of Class-I Cities and Class-II Towns in combination is 48093 MLD Maharashtra has the maximum population of 42758250, which is 16% of total population of Class-I cities and class-II towns.

Maharashtra has maximum water supply of 12750, which is 26% of total water supply of Class-I cities and class-II towns.

Water Supply of Class I Cities & Class II Towns

(Aggregate)

NO STATE/ UT TOTAL NO OF CLASS I CITIES & CLASS II TOWNS

TOTAL POPULATION (IN CLASS I CITIES AND CLASS II TOWNS)

TOTAL WATER SUPPLY IN (MLD)

1 ANDAMAN & NICOBAR

1 107200 15

2 ANDHRA PRADESH 99 23591660 2477.03

3 ASSAM 13 1991110 503.28

4 BIHAR 37 6897354 1396.43

5 CHANDIGARH 1 994820 537.2

6 CHHATTISGARH 14 3081180 489.12

7 GOA 3 295180 29.53

8 DELHI 1 14858800 4346

9 GUJARAT 59 16858830 2385.64

10 HARYANA 27 6038150 833.07

11 HIMACHAL PRADESH

1 163490 36.81

12 JAMMU & KASHMIR 6 2155050 302.26

13 JHARKHAND 24 5790471 1135.56

14 KARNATAKA 59 16902631 2529.78

15 KERALA 34 5465176 883.03

16 MADHYA PRADESH 48 12540050 883.03

17 MAHARASHTRA 84 42758250 12750.05

18 MANIPUR 1 249870 43.43

19 MEGHALAYA 2 267780 40.12

20 MIZORAM 1 282550 39.56

21 NAGALAND 2 298330 41.76

22 ORISSA 24 4240440 923.97

23 PONDICHERRY 3 583820 80.56

24 PUNJAB 33 7439530 2033.94

25 RAJASTHAN 45 11210750 1912.72

26 TAMIL NADU 84 20107890 1577.4

27 TRIPURA 1 214327 1577.4

28 UTTAR PRADESH 107 29144800 4814.77

29 UTTRAKHAND 7 1318840 232.55

30 WEST BENGAL 87 21822911 3949.09


Source: www.cpcb.nic.in

Status on Sewage Generation in Metropolitan Cities, Class-I Cities and Class-II Towns: Discharge of untreated sewage in water courses both surface and ground waters is the most important water polluting source in India. Out of about 38000 million liter per day of sewage generated treatment capacity exists for only about 12000 million liter per day. Thus, there is a large gap between generation and treatment of wastewater in India. Even the treatment capacity existing is also not effectively utilized due to operation and maintenance problem. Operation and maintenance of existing plants and sewage pumping stations is not satisfactory, as nearly 39% plants are not conforming to the general standards prescribed under the Environmental (Protection) Rules for discharge into streams as per the CPCB’s survey report.. In a number of cities, the existing treatment capacity remains underutilized while a lot of sewage is discharged without treatment in the same city. Auxiliary power back-up facility is required at all the intermediate (IPS) & main pumping stations (MPS) of all the STPs. In Metropolitan Cities:

There are 35 metropolitan cities (more than 10 Lac Population), 15,644 Millions Liter Per Day (MLD) of sewage is generated from these metropolitan cities. The treatment capacity exists for 8040 MLD i.e. 51% is treatment capacity is created.

Among the Metropolitan cities, Delhi has the maximum treatment capacity that is 2330 MLD (30% of the total treatment capacity of metropolitan cities)

Next to Delhi, Mumbai has the capacity of 2130 MLD, which is 26% of total capacity in metropolitan cities.

Delhi and Mumbai therefore in combination have 55% of treatment capacity of the metropolitan cities.

Some cities such as Hyderabad, Vadodara, Chennai and Ludhiana and Ahmadabad treatment capacity meets the volume of generation.

Cities like Delhi, Dhanbad have more than 50% capacity, rest of the cities have the capacity less than 50%

In Class I Cities (including metropolitan cities):

There are projected 498 Class-I Cities (having more than1 Lac Population)

Nearly 52% cities (260 out of 498) cities are located in Andhra Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh and West Bengal.

The sewage generated in class-I cities estimated 35,558 MLD

93 % of total wastewater is generated in Class-I cities only.

Total Sewage treatment Capacity of class-I cities is reported 11553.68 MLD, which is 32% of the sewage generation.

Out of 11,553 MLD sewage treatment capacities, 8,040 MLD is treated in 35 Metropolitan cities i.e. 69%. This indicates that other than metropolitan cities, the capacity of 462 Class-I cities is only 31%.

Actual sewage treatment due to inadequacy of the sewage collection system shall below compare to capacity.

TOTAL 908 25,77,54,640 48093.88

http://www.cpcb.nic.in/


State wise Sewage generation of Class I & Class II cities:

NO STATE/ UT SEWAGE GENERATION OF CLASS-I CITIES (IN MLD

SEWAGE GENERATION OF CLASS II CITIES (IN MLD)

TOTAL IN MLD

1 ANDAMAN & NICOBAR

12 - 12.0064

2 ANDHRA PRADESH

1760.60 217.59 1978.1996

3 ASSAM 380.14 6.46 386.6

4 BIHAR 1009.7 107.42 1117.12

5 CHANDIGARH 429.76 - 58.2936

6 CHHATTISGARH 350.47 40.82 391.29

7 GOA 9.79 13.89 23.62

8 DELHI 3800 - 3800

9 GUJARAT 1680.92 227.55 1908.47

10 HARYANA 626.69 43.52 670.212

11 HIMACHAL PRADESH

28.94 - 28.94

12 JAMMU & KASHMIR

213.93 27.86 27.86

13 JHARKHAND 830.47 78.21 908.68

14 KARNATAKA 1790.40 233.37 2023.778

15 KERALA 575.17 231.32 806.49

16 MADHYA PRADESH

1248.72 130.9 1379.626

17 MAHARASHTRA 9986.29 213.73 10200.02

18 MANIPUR 26.74 - 26.74

19 MEGHALAYA 20.84 11.25 32.09


Source: www.cpcb.nic.in

Clean Water Act: “World Bank Funds For Ganga Project” The Ganga is the ‘National River” of the Indian subcontinent rising in the Himalaya Mountains and flowing about 2,510 km (1,560 mi) generally eastward through a vast plain to the Bay of Bengal. It flows southeast through the Indian states of Uttar Pradesh, Bihar, and West Bengal. In central Bangladesh it is joined by the Brahmaputra and Meghna rivers. Its plain is one of the most fertile and densely populated regions in the world. The Ganges alone drains an area of over a million square km with a population of over 407 million. Millions depend on water from the holy river for several things: drinking, bathing, agriculture, industry and other household chores. Today, over 29 cities, 70 towns, and thousands of villages extend along the Ganga banks. Nearly all of their sewage - over 1.3 billion liters per day - goes directly into the river, along with thousands of animal carcasses, mainly cattle. Another 260 million liters of industrial waste are added to this by hundreds of factories along the rivers banks. Municipal sewage constitutes 80 per cent by volume of the total waste dumped into the Ganga, and industries contribute about 15 percent. The majority of the Ganga pollution is organic waste, sewage, trash, food, and human and animal remains. Over the past century, city populations along the Ganga have grown at a tremendous rate, while waste-control infrastructure has remained relatively unchanged. Recent water samples collected in Varanasi revealed fecal-coli form counts of about 50,000 bacteria per 100 milliliters of water, 10,000% higher than the government standard for safe river bathing. The result of this pollution is an array of water-borne diseases including cholera, hepatitis, typhoid and amoebic dysentery. An estimated 80% of all health problems and one-third of deaths in India are attributable to water-borne diseases. The industrial pollutants also a major source of contamination in the Ganga. A total of 146 industries are reported to be located along the river Ganga between Rishikesh and Prayagraj. 144 of these are in Uttar Pradesh (U.P.) and 2 in Uttrakhand. The major polluting industries on the Ganga are the leather industries, especially near Kanpur, which use large amounts of Chromium and other toxic chemical waste, and much of it finds its way into the

20 MIZORAM 5.71 - 5.712

21 NAGALAND 13.62 1.36 14.984

22 ORISSA 660.73 78.42 739.15

23 PONDICHERRY 56.46 7.984 64.444

24 PUNJAB 1528.26 157.40 1685.664

25 RAJASTHAN 1382.37 147.79 1530.16

26 TAMIL NADU 1077.21 184.67 1261.88

27 TRIPURA 24 - 24

28 UTTAR PRADESH 3506.01 345.70 3851.71

29 UTTRAKHAND 176.97 9.07 188.31

30 WEST BENGAL 2345.21 180.42 2525.63

TOTAL 35558.12 2696.70 38254.82

http://www.cpcb.nic.in/


meager flow of the Ganga. From the plains to the sea, pharmaceutical companies, electronics plants, textile and paper industries, tanneries, fertilizer manufacturers and oil refineries discharge effluent into the river. This hazardous waste includes hydrochloric acid, mercury and other heavy metals, bleaches and dyes, pesticides, and polychlorinated biphenyls highly toxic compounds that accumulate in animal and human tissue. As the river is getting polluted day by day the government is considering this as a serious issue and thereby plans to undertake extensive efforts to save the river by practicing the Clean up act. The Prime minister has also announced the proposal to set up a separate high powered Ganga River Basin Authority to stop its pollution and degradation. Chaired by the Prime minister, the authority would have as the members the chief ministers of states through which the river flows, besides working closely with ministers of water resources, environment and forests, urban development and others as well as agencies working on river conservation and pollution management. The National Ganga River Basin Authority (NGRBA) in its meeting held on November 1, 2010 also approved discontinuation of 3 hydro projects, Bhaironghati, Pala Maneri and NTPC's loharinag Pala proposed on the river. On April 28, 2011 the Cabinet Committee on Economic Affairs has approved the Project for cleaning of River Ganga to be implemented by the National Ganga River Basin Authority (NGRBA) at an estimated cost of Rs. 7000 Million. The share of Government of India will be Rs 5100 crore and that of the State Governments of Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal will be Rs 1900 crore. The World Bank has agreed in-principle to provide a loan assistance of US $ 1 billion (approx. Rs 4600 crore) to the Government of India for the NGRBA project, including $199 million interest-free credit and $801 million low-interest loan which will form part of the central share of the project. The duration of the project will be eight years. While NGRBA will fund investments (in sewage treatment plants, sewer networks and the like) that are critical for reducing pollution in the Ganga, it is the cities and municipalities that will have to be responsible for managing and maintaining them in the long run. The project will help build the capacity of city-level service providers responsible for running these assets and also modernize their systems for doing so. The project will also help strengthen the Central and State Pollution Control Boards for monitoring the pollution in the Ganga better by modernizing their information systems and providing staff training. The project will also finance the up gradation of the Ganga water quality monitoring system, as well as carry out an inventory of all the sources of pollution that affect water quality in the Ganga. India’s Water Availability Cost Curve: By 2030, India will face a large gap between current water supply and projected demand, mounting to 50 percent of demand or 754 billion m3 of water. The agriculture sector is the biggest user of water, followed by the domestic sector and the industrial sector. The imbalance is driven by a burgeoning population and rapid economic growth, putting significant pressures on water resources. The over extraction of groundwater in about two-thirds of the country has also caused depleting water tables and seawater intrusion in coastal regions. Furthermore, the demand and supply condition is made worse by the lack of water infrastructure in the country


India’s Water Demand: Water demand in India will grow to about 1.5 trillion m3 in 20 years’ time. Currently, agriculture is responsible for 80 percent of India’s water demand and this will still be the dominant sector in 2030. As more than 95 percent of India’s agricultural production is and will continue to be for domestic consumption, the rapid population growth, coupled with rising income supporting the increasing caloric intake and meat consumption, are both key drivers underlying the water resource challenge. Agricultural demand for the precious liquid is estimated to double during this time period. Projected municipal and domestic water demand will also double in 2030, to 108 billion m3, accounting for approximately 7 percent of total water demand. Demand from industry will also double to 196 billion m3, accounting for 13 percent of water demand. This demand, weighed against today’s accessible water supply, would create severe projected deficits for most of India’s river basins. India Water Supply: India’s water supply is expected to reach approximately 740 billion m3 in 2030, significantly short of aggregate demand of approximately 1.5 trillion m3. India is a vast country with many river basins, including two of the world’s largest rivers, the Ganges and the Brahmaputra. Average annual precipitation received by the country is about 4000 km3 and of this, exploitable water resources amount to about 1900 km3. According to the Aqua stat 2010, the current surface and groundwater water resource base is estimated to be about 1880 km3, of which 418.5 km3 is groundwater. The number is highly variable because of the monsoon season, which brings roughly 80 percent of the annual precipitation. With increasing climate variability, Indian monsoons are becoming less predictable and the frequency of extreme events like droughts and floods has increased over the past decades. Due to poor government policies and insufficient infrastructure, surface water is unable to meet India’s total water requirement. Groundwater is virtually free (pumping costs only, with electricity being highly subsidized by the government). This inefficiency results in over extraction of the groundwater. Groundwater supply differs substantially by region. In the western rivers, the truly renewable groundwater supply is much less than what is actually pumped, leading to massive overdraft, declining water tables and elevated pumping costs; while in basins such as the Eastern Ganges additional groundwater supply could be increased sustainably. The availability of groundwater is compounded by rapidly deteriorating water quality in many areas of the country by agriculture and industrial pollution. India has only 200 m3 of water storage capacity per person, compared to 2200 m3 per person in China and 6000 m3 per person in the U.S. The ability of the current infrastructure to buffer that variability is low, making it difficult for accessible water supply to meet projected demand.


Source: www.india-reports.com

As the distribution of water supply is uneven across the subcontinent, a basin such as the Ganga accounts for a large portion of accessible water supply, about 311 million m3 . Yet – at the same time the Ganga basin also has the highest water demand resulting in the largest gap of 350 million m3, followed by the Indus basin and Krishna basin with gaps of 106 million m3 and 90 million m3, respectively. Closing the Gap: A 2009 study published by the 2030 Water Resources Group lists 37 levers to close the water availability gap by 2030, ranked according to the related cost. Using the cheapest solutions will result in an annual investment of USD 5.9 billion, much less than the estimated total annual expenditure of USD 12.3 billion in 2007 for the total water sector. About 80 percent of the cheapest solutions to close the base case demand-supply gap lie in improving agriculture’s water efficiency and productivity. The remaining 20 percent of solutions to close the gap lie in additional supply solutions such as desalination plants, rehabilitation of existing infrastructure and last-mile canals. Chart 4: Sector Wise Demand for Water:

http://www.india-reports.com/


Source: www.mckinsey.com

To meet the implied demand for food and feed in the country (only 4 percent of India’s agricultural production is exported), about 31 million hectares of additional irrigated land would be needed. As such, measures that increase the yields of fields, offsetting the need for additional land and additional irrigation are necessary. Agricultural yield can also be improved by making land more productive, including no-till farming, improved drainage, optimized fertilizer use or innovative crop protection technologies. Other major agricultural opportunities are further investment in genetic crop development, improved irrigation control and drip irrigation. To the right side of the lever bar, we note that desalination projects, the National River-Linking Project and even the repair of municipal leakage are significantly more expensive than the solutions available in agriculture. However, for political reasons they may still rank higher on the governmental agenda. In conclusion, the cost-effective solutions to address India’s water challenge will require support from the national agricultural policy as well as technological innovation. Water Governance Issues: Multiplicity of Organizations Multiple government agencies have responsibility for water management, which hinders effective policy development and implementation.

State governments and local bodies in urban areas are mainly responsible for offering drinking water and sanitation facilities

http://www.mckinsey.com/


The Central Water Commission (CWC) is responsible for regulating the use of surface water for irrigation, industry, drinking, and for mediating inter-state water allocation disputes.

There are multiple government bodies that manage water resources in India. However, there is a lack of coordination between them. E.g. the CPCB2 (which monitors pollution) and CWC conduct separate, uncoordinated water quality monitoring exercises in 507 and 300 locations respectively.

Inadequacy in Generation of Revenue to Meet Costs:

Water tariffs and policies differ across states. Water is available for free or is highly subsidized in some states.

More than 40% of India’s water does not generate any revenue

13.8 MM people living in the national capital Delhi, pay for less than 50% of the water they consume.

Outdated Policies:

India has inadequate legislation on the exploitation of groundwater

There are very few legal restrictions on who can pump groundwater, how much and for what purpose.

Historical government subsidies for the use of water for the irrigation and domestic purposes have led to the undervaluation of water as a resource.

Management and supply of water resources is perceived to be a public sector monopoly.

In the absence of an independent regulator, the very few pockets of water privatization have resulted in government sanctioned monopolies.

In an attempt to conserve water, India has launched numerous programs, but lacks an independent regulator to control and coordinate implementation efforts related to water scarcity. Taking into consideration India’s water scarcity could have been largely avoided with better water management practices. There has been a distinct lack of attention to water legislation, water conservation, efficiency in water use, water recycling, and infrastructure. Historically water has been viewed as an unlimited resource that did not need to be managed as a scarce commodity or provided as a basic human right. These attitudes are changing in India; there is a growing desire for decentralized management developing, which would allow local municipalities to control water as best needed for their particular region. An immediate solution to India’s water crisis is to change water management practices by regulating usage with effective legislation. Another proposed solution to the water crisis is the privatization of water. Proponents claim that a privatized water supply would prevent waste, improve efficiency and encourage innovation. India is also now considering large scale engineering projects similar to those adopted in China, such as the South-to-North Water Diversion Project. The most talked about project is the $112 billion Interlinking of Rivers project. The ILR was approved by the president in 2002 and is due to be completed in 2016. This project will link all 37 rivers by thousands of miles of canals and dozens of large dams. This project is intended to increase the amount of water available for irrigation and would add 34,000mw of hydropower to the national pool. The Indian government is already trying to get states to start rainwater harvesting in order to more efficiently tap into the huge quantity of monsoon rain.


Strategies that can be implemented for efficient Water Management Techniques in India: In view of the existing status of water resources and increasing demands of water for meeting the requirements of the rapidly growing population of the country as well as the problems that are likely to arise in future, a holistic, well planned long-term strategy is needed for sustainable water resources management in India. The water resources management practices like flood management, drought management, groundwater management, water conservation, watershed management etc needs to be implemented that may help on increasing the water supply and managing the water demand under the stressed water availability conditions. Data monitoring, processing, storage, retrieval and dissemination also constitute the very important aspects of the water resources management. These data may be utilized not only for management but also for the planning and design of the water resources structures. To prevent future water scarcity, India needs to implement programs based on established water management techniques Sustainable Water Management Techniques & Companies involved in each sector

TECHNIQUES

DESCRIPTION AGRICULTURE DOMESTIC INDUSTRY

WATERSHED MANAGEMENT

INVOLVES IMPLEMENTING PLANS TO ENHANCE MANAGEMENT OF WATER SUPPLY, DRAINAGE AND WATERSHED INVENTORY ACROSS LAKES AND OTHER NATURAL AND

IN 2001, THE KARNATAKA WATERSHED DEVELOPMENT PROJECT’ RESULTED IN AN INCREASE OF 24%IN TOTAL CROP YIELD

RELIANCE ENERGY COMMUNITY-BASED WATERSHED MANAGEMENT PLANT HAS RESULTED IN AN INCREASE IN THE GROUNDWATER TABLE IN DAHANU, MAHARASHTRA

HINDALCO INDUSTRIES’ PLANT AT RENUKOOT, UP, INCLUDES A WATERSHED MANAGEMENT PROJECT BENEFITING FARMERS ACROSS 30 VILLAGES


MANMADE RESERVOIRS

RAIN WATER HARVESTING

INCLUDES BUILDING RECHARGE WELLS, ROOF CATCHMENTS, GUTTERS, DOWNPIPES, CASCADE CAPTURES, ETC. TO STORE RAINWATER

GOVERNMENT HAS IMPLEMENTED SOIL AND WATER CONSERVATION SCHEME IN MANY STATES FOR RAINWATER HARVESTING THROUGH FARM PONDS AND REJUVENATION OF FAILED OR UNUSED WELLS

IN CHENNAI, RAINWATER IS HARVESTED IN NEARLY 29,000 DOMESTIC HOUSEHOLDS AND 2,000 GOVERNMENT BUILDINGS

COCA-COLA INDIA’S MEHANDIGANJ PLANT, AT VARANASI, UP, USED RAINWATER HARVESTING TO REDUCE WATER USAGE RATIO BY 23% BETWEEN 2003-2007

DESALINATION

INVOLVES THE USE OF THERMAL MEMBRANE TECHNOLOGY TO REDUCE SALT CONTENT IN WATER

INDIA IS BUILDING A NEW SEA WATER REVERSE OSMOSIS PLANT IN CHENNAI, TAMIL NADU; BY EARLY 2009, IT WILL PRODUCE 100 MM LITERS OF WATER PER DAY FOR DOMESTIC CONSUMPTION

THE BHABHA ATOMIC RESEARCH CENTRE, MUMBAI HAS BUILT A BARGE-MOUNTED DESALINATION PLANT THAT CAN PRODUCE 50,000 LITERS OF DRINKING WATER PER DAY


OTHER TECHNIQUES

INVOLVES THE REUSE OF WATER CONDENSED FROM BOILERS THOUGH MEMBRANE FILTRATION, SIDE STEAM TREATMENT , ETC. FOR COOLING TOWERS

MAHINDRA & MAHINDRA LTD. REDUCED ITS PER VEHICLE WATER CONSUMPTION FROM 6,380 LITERS IN 2003-2004 TO 4,620 LITERS IN 2006-2007, THROUGH REUSE OF WASTEWATER

Source: www.grailresearch.com

With only a few states implementing water management techniques, India still lacks a national initiative to tackle the impending water crisis. Therefore to fight the scarcity of water India needs to invest in large scale initiatives for managing water resources. Subsidized Micro-Irrigation: Government subsidies of up to 50% on Micro-Irrigation equipment are being utilized, but only by 8 states. Mandatory Rainwater Harvesting: Laws have been enacted for rainwater harvesting on the roofs of all new buildings, but in only 10 states. Community-Based Watershed Management: Local communities are implementing several techniques of watershed development, to increase water levels and enhance productivity of crops across 5 states. System of Rice Intensification: Between 1997 and 2007 innovative cultivation programs (e.g. spacing between plants, transplanting younger seedlings) were implemented to reduce the need for flood irrigation in water intensive crops, but only across 6 states. Examples of techniques:

Recycling: This technique includes Deep pond system, Forward Osmosis Desalination, Metal-mediated Aeration and Ostara Reactor.

Conservation: This technique includes Eco Tech Digital and Micro Irrigation Sprinkler. Political Solutions for implementing efficient water management:

Regional Cooperation:

http://www.grailresearch.com/


India shares a number of rivers with its South Asian neighbors. The management and control of many of these rivers is already governed by treaties signed between some of these countries. South Asia is faced with a very dire water outlook and solutions within each country should work within a framework that optimizes benefits across the countries. This requires political foresight and the South Asia Association for Regional Cooperation (SAARC) will play a critical role in achieving this.

Interstate Dispute Resolution: Water scarcity has been the source of conflict between Indian states. Downstream riparian states claim that too much water is harvested by upper riparian states and many of these disputes are under trial. This is also a source of conflict between people of Individual states and can impact trade and development. The just resolution of these inter-state conflicts will be vital in ensuring an equitable Indian water future.

Trade Considerations: An earlier section has already discussed the implications of virtual water trade. While a policy that taxes or incentivizes net positive virtual water trade may be considered in future should the virtual water trade scenario remain unfavorable, it would be useful to develop a strategy outlining the features of such a policy and the ramifications that this might have in relation to World Trade Organization (WTO) rules.

Re-aligning Responsibilities for Water: In the current scenario, multiple organizations are responsible for various aspects of water management. There is also a conflict of union government control and state control on water resources. Since the controls of the various water agencies overlap, this often results in conflict or inaction on a particular area. Therefore, there is a need for clarifying and streamlining water management across the various bodies.

Empowering Local communities: The depleting water conditions, in many areas, are caused by situations that can be related to the tragedy of the commons. However, the encouragement of innovative and traditional practices that place a sense of ownership and accountability of the water resources in the hands of local communities can go a long way in rehabilitating and optimally managing a water resource.

Enforcing Regulations and Reducing Corruption: India is known to have some of the best environmental and water regulations. However, this is often undone by lax enforcement further complicated by poorly staffed, trained and equipped enforcement agencies. Further, the propensity to turn a blind eye to illegal water abstraction or untreated effluent discharge also compounds the challenge. Therefore, appropriate allocation of staff, training facilities and adequate compensation are important ingredients in combating weak enforcement of regulations.

Enhancing Existing Regulations: Many urban areas in India have witnessed a growth in population and size that has often exceeded the capacity of existing infrastructure. Water and wastewater treatment infrastructures are badly stretched. While the infrastructure can be scaled up, there are other simple regulations related to the user that can lighten the burden of water utilities.


Some local corporations have already stepped up efforts in mandating rainwater harvesting and wastewater recycling facilities in buildings.

Efficient Use and Maintenance of Existing Infrastructure: The existing water infrastructure is not efficiently used. Many traditional water systems have been neglected and laid waste following the advent of hand pumps and electrified tube wells. Frequently these systems served dual purposes of storing water and improving the groundwater table. These need to be rejuvenated and put to use to increase the available water storage of the country. In addition to this, the modern water infrastructure suffers from very high water losses, significant quantities of which are on account of theft. Steps taken towards addressing this will not only improve the efficiency of water utilities but also improve their financial health and attractiveness to private investors.

National Rivers Linking Project (NRLP):

India plans to undertake the NRLP that will transfer excess floodwaters from the rivers in

the north and the east to the drier western and southern regions. If undertaken, it will be

one of the largest inter-basin water transfer projects in the world. However, there are

some serious concerns regarding the ecological impacts and the economic efficiency of

this program. If undertaken, the NRLP can have significant long-term strategic

ramifications related to siting of industries and basin level water availability.

Conclusion: A New Investment Opportunity in the Water Sector: The water demand and supply, the projected scenario is as follows:

The total water demand to increase from 680 BCM to 833 BCM by 2025, and to 900 BCM by 2050;

The total water withdrawals as a % of PUWR to increase from 37 % in 2000, to 81 % and 87 % by 2025 and 2050, respectively;

The degree of development, primary water withdrawals as a % of potentially utilizable water resource (PUWR), to increase from 37 % to 52 % and 61 % by 2025 and 2050, respectively;

The industrial and the domestic sectors to account for 54 % and 85 % of the additional Demand by 2025 and 2050, respectively;

Groundwater withdrawal to increase from 303 BCM in 2000 to 365 BCM and 423 BCM by 2025 and 2050, respectively, and the groundwater abstraction ratio to increase from 60 % to 74 % and 84 %, respectively. The importance of water as a life-sustaining resource will steadily increase over the next few years. As the global population continues to boom, pressure will mount on water resources that are already under enormous strain, and in many regions the traditionally careless use of water will have visible negative consequences


Consumers are therefore becoming increasingly aware that water is a precious resource that needs to be managed in a sustainable way. Technologies that promote more efficient use of water are already available: Water-saving domestic appliances, efficient industrial plants or low-cost methods for repairing pipes are just some of the practical ways of reducing water consumption. Enormous efforts are also being made in agriculture to try and improve the frequently wasteful use of water.

These major challenges open up interesting opportunities for investors: Companies that grasp the increasing need for sustainable solutions as an opportunity and respond by offering innovative solutions can look forward to a sharp increase in demand in the years ahead.

If we are to ensure sustainable management of water resources and avert a global water crisis, water must be given a price tag that accurately reflects its vital role in our lives. It is therefore the duty of politicians and lawmakers to lay down the relevant rules and to push through measures that promote more sustainable use of water. This change of mind-set has already occurred in those countries confronted with urgent water problems, whether in terms of quality or quantity, encouraging them to adopt the necessary laws, ordinances or budget allocations. But action is still needed at the political level, combined with a greater awareness by the general public of the importance of using water resources efficiently.

To make successful investments in the water sector, investors therefore not only need to be informed about the latest technical advances and industry solutions, but must also closely follow developments and decisions on the political and legislative front. The introduction of new environmental standards, tougher demands on water quality, more public spending on infrastructure construction and maintenance as well as the fixing of tariffs and fees will have a significant impact on the growth of individual segments of the Water market and consequently on the attractiveness of companies doing business in these segments.

In the years to come, water will develop into a dynamic market of the future. Given the global trends that are shaping the water market, demand is unlikely to drop off in the long term. While due account needs to be taken of company valuations, investors with a long-term horizon can therefore expect to find numerous worthwhile and attractive investment opportunities.


Project Opportunities

INDUSTRY SEGMENTS

OPPORTUNITY NAME COMPANY / PROJECT STATUS


IMPROVING THE PRODUCTIVE POTENTIAL OF SELECTED WATERSHEDS, AND THEIR ASSOCIATED NATURAL RESOURCE BASE, AND, STRENGTHEN COMMUNITY, AND INSTITUTIONAL ARRANGEMENTS FOR NATURAL RESOURCE MANAGEMENT

KARNATAKA WATERSHED DEVELOPMENT PROJECTS

OPEN


TO ASSIST GOVERNMENT OF INDIA (GOI) IN BUILDING NATIONAL CAPACITY FOR IMPLEMENTATION OF COMPREHENSIVE COASTAL MANAGEMENT APPROACH IN THE COUNTRY, AND PILOTING THE INTEGRATED COASTAL ZONE MANAGEMENT APPROACH IN STATES OF GUJARAT, ORISSA AND WEST BENGAL

INTEGRATED COASTAL ZONE MANAGEMENT

OPEN


TO UNDERTAKE RATIONALIZE APPROACH AND DELIVER MECHANISM OF VARIOUS WATERSHED DEVELOPMENT PROGRAMS AND EMPHASIS ON INVOLVING LOCAL PEOPLE AND PROVIDING THEM WITH THE NECESSARY AUTONOMY TO DEVELOP WATERSHEDS.

KARNATAKA PANCHAYATS STRENGTHENING PROJECT

OPEN


TO IMPROVE THE PRODUCTIVE POTENTIAL OF NATURAL RESOURCES AND INCREASE INCOMES OF RURAL INHABITANTS IN SELECTED WATERSHEDS THROUGH SOCIALLY INCLUSIVE, INSTITUTIONALLY AND ENVIRONMENTALLY SUSTAINABLE APPROACH

SUSTAINABLE LAND, WATER AND BIODIVERSITY CONSERVATION AND MANAGEMENT FOR IMPROVED LIVELIHOODS IN UTTARAKHAND WATERSHED SECTOR

OPEN



AIMS TO REVERSE THE PROCESS OF DEGRADATION OF THE NATURAL RESOURCE BASE AND IMPROVE THE PRODUCTIVE POTENTIAL OF NATURAL RESOURCES AND INCOMES OF THE RURAL HOUSEHOLDS IN THE PROJECT AREA

HIMACHAL PRADESH MID-HIMALAYAN WATERSHED DEVELOPMENT PROJECT

OPEN


TO EXPAND THE GEOGRAPHICAL COVERAGE OF SOME 20 SUB-WATERSHEDS IN THE MIDDLE HIMALAYAN HILLS OF UTTARANCHAL,

UTTARANCHAL DECENTRALIZED WATERSHED DEVELOPMENT PROJECT

OPEN

WASTEWATER TO ASSIST GOVERNMENT OF INDIA (GOI) IN BUILDING NATIONAL CAPACITY FOR IMPLEMENTATION OF COMPREHENSIVE COASTAL MANAGEMENT APPROACH IN THE COUNTRY, AND PILOTING THE INTEGRATED COASTAL ZONE MANAGEMENT APPROACH IN STATES OF GUJARAT, ORISSA AND WEST BENGAL

INTEGRATED COASTAL ZONE MANAGEMENT

OPEN

WASTEWATER STRENGTHEN THE CAPACITY FOR STRATEGIC PLANNING AND SUSTAINABLE DEVELOPMENT AND MANAGEMENT OF SURFACE AND GROUNDWATER RESOURCES; AND INCREASE THE PRODUCTIVITY OF IRRIGATED AGRICULTURE THROUGH IMPROVED SURFACE IRRIGATION SYSTEM PERFORMANCE AND STRENGTHEN THE AGRICULTURAL SUPPORT SERVICE

RAJASTHAN WATER SECTOR RESTRUCTURING PROJECT

OPEN

WATER DISTRIBUTION

TO IMPROVE THE WATER DISTRIBUTION IN MUMBAI. THIS PILOT PROJECT AIMED AT EXPLORING PUBLIC PRIVATE PARTICIPATION (PPP) IN WATER DISTRIBUTION IN MUMBAI. THE PROPOSALS INCLUDE LONG TERM AND SHORT TERM MANAGEMENT CONTRACTS TO PRIVATE COMPANIES FOR WATER

WATER DISTRIBUTION IMPROVEMENT PROJECT- MUMBAI

OPEN


DISTRIBUTION.

PURIFICATION PROVISION OF PROVIDING OF RAIN WATER HARVESTING STRUCTURES AT BANGALORE

BRUHAT BANGALORE MAHANAGARA PALIKE

OPEN

WATER CONSERVATION

OBJECTIVES OF THE NATIONAL GANGA RIVER BASIN PROJECT FOR INDIA ARE TO SUPPORT THE NATIONAL GANGA RIVER BASIN AUTHORITY (NGRBA) IN: (A) BUILDING CAPACITY OF ITS NASCENT OPERATIONAL-LEVEL INSTITUTIONS, SO THAT THEY CAN MANAGE THE LONG-TERM GANGA CLEAN-UP AND CONSERVATION PROGRAM; AND (B) IMPLEMENTING A DIVERSE SET OF DEMONSTRATIVE INVESTMENTS FOR REDUCING POINT-SOURCE POLLUTION LOADS IN A SUSTAINABLE MANNER, AT PRIORITY LOCATIONS ON THE GANGA.

NATIONAL GANGA RIVER BASIN

OPEN

Contacts: ACC LTD Ulhas Parlikar Waste Management ACC Concrete Ltd ACC Thane Complex Lal Bahadur Shastri Marg, Teen Haath Naka Thane (West) - 400 604, India Tel: 91-22-33024321


Fax: +91-22-2583 8415 Email: [email protected] Ashok Leyland No 1 Sardar Patel Road,

Guindy, Chennai-600032,

India

Tel: 0091-44-2220

Hindalco Dr. Pragnya Ram Group Executive President Corporate Communications & CSR Aditya Birla Management Corporation Private Limited Aditya Birla Centre, 1st Floor, 'C' Wing S.K. Ahire Marg, Worli Mumbai 400 030 Tel: 91-22-6652 5000 / 2499 5000, Fax: 91-22-6652 5741 / 42 Email: [email protected] ITC LTD T.V Ramaswamy R&D, Projects & EH&s 37 J.L Nehru Road, Kolkata- 700071, India Tel: 91-033-22889371 Fax: 91-033-22882260 Email: www.itc.com Mahindra & Mahindra Ltd Mahindra India & World Headquarters Mahindra Towers GM Bhosale Marg, Worli Mumbai-400018, India Tel: +91 22 66483018 Email: www.mahindra.com Reliance Industries Ltd Maker Chambers- IV, Nariman Point, Mumbai- 400021, India Tel: 91-22-2278 5000 Tata Chemicals Bombay House 24 Homi Mody Street Fort, Mumbai 400 001 Tel: (022) 6665 8282 Fax: (022) 6665 8143 / 44 Email: [email protected]

mailto:[email protected]


http://www.itc.com/

http://www.mahindra.com/



Vishakhapatnam Steel Plant Dr. V. Phaneendrudu Dy. General Manager Email: [email protected] Tel: 91 - 891 - 2515854 (Off) 91 - 891 – 251801 Wipro LTD Doddakannelli Sarjapur Road Bangalore- 560035, India Tel: +9180-28440011 Fax: +91-80-28440256 Email: www.wipro.com Unicare Technologies Pvt. Ltd. Mr. Anand Raval Gate No. 1327, Vrindavan Park Oppo: Kamal Motors Pune- Nager Road, Pune – 412 207 Cell no. +91 - 098230 09394, +91 - 020-65100000

E-mail: [email protected]


http://www.wipro.com/



The U.S. Commercial Service India Senior Commercial Officer is: Carmine D’Aloisio: [email protected]

U.S. Commercial Service New Delhi U.S. Embassy The American Center 24, Kasturba Gandhi Marg Connaught Place New Delhi 110 0001 Tel: 91-11-2331-6841-49; 2419-8000 Fax: 91-11-2331-5172 Deputy Senior Commercial Officer: Dale Tasharski [email protected] Commercial Officer: Marianne Drain [email protected] U.S. Patent and Trade Office (USPTO) IPR Officer: Dominic Keating [email protected] Bureau of Industry and Security (BIS) Export Control Officer: Paul Cushman [email protected] U.S. Commercial Service Mumbai American Consulate General American Center 4 New Marine Lines Mumbai 400 020 Tel: 91-22-2265-2511 Fax: 91-22-2262-3850 Principal Commercial Officer: Jim Cunningham [email protected] U.S. Commercial Service Chennai American Consulate General 220 Mount Road, Chennai 600 006 Tel: 91-44-2857 4191/4477 Fax: 91-44-2857 4212 Principal Commercial Officer: Mark Russell [email protected]

U.S. Commercial Service Kolkata American Consulate General American Center 38-A, Jawaharlal Nehru Road Calcutta 700071 Tel: 91-33- 3984 6300 Fax: 91-33- 2288 1207 Principal Commercial Officer: Aileen Crowe Nandi [email protected] U.S. Commercial Service Bangalore The Commercial Service S2, II Floor, Red Cross Bhawan No. 26, Racecourse Road Bangalore 560001 Tel: 91-80-220-6404; Fax: 91-80-220-6405 Commercial Specialist: Leonard Roberts [email protected] U.S. Commercial Service Ahmedabad The Commercial Service 401/402, JMC House Ambawadi, Near Parimal Garden Ahmedabad 380 006 Tel: 91-79-2656 5210/16 Fax: 91-79-2656 0763 Commercial Specialist: Sangeeta Taneja [email protected] U.S. Commercial Service Hyderabad The Commercial Service Taj Residency Hotel #555, E Level, Road No. 1, Banjara Hills, Hyderabad 500 034 Tel: 91-40-23305000, 23393939 Fax: 91-40-23300130 Commercial Specialist: Radhakishore Pandrangi [email protected]












Other Useful Department of Commerce Contacts: Trade Information Center Trade Information center integrated with Export.gov U.S. Department of Commerce 14th and Constitution Avenue, NW Washington, D.C. 20230 Tel: 1-800-872-8723 or 202-482-0543 Fax: 202-482-4473 Website: http://www.export.gov/exportbasics/ticredirect.asp

Bureau of Industry & Security Exporter Counseling Division Tel (202) 482-4811 http://www.bis.doc.gov/entities More contacts can be found at http://www.buyusa.gov/india/en/ccg2008.html

http://www.export.gov/exportbasics/ticredirect.asp

http://www.export.gov/exportbasics/ticredirect.asp

http://www.bis.doc.gov/entities

http://www.buyusa.gov/india/en/ccg2008.html

http://www.buyusa.gov/india/en/ccg2008.html


of 81

World Trade Center Locations

World Trade Center Chennai 8th Level, Aryston Centre Juhu Road Juhu, Mumbai 400049 India Phone: 91-22-5502-5500 Fax: 91-22-5502-4400 Primary Contact: Mr. Prakash J. Bhojwani Other, President and CEO Phone: 91-22-5502-5500

World Trade Center - Delhi & Gurgaon C-8/1A Vasant Vihar New Delhi -110 057 India Phone: 91-11-26143282 Fax: 91-11-26141759 Internet: http://www.wtcdelhi.com Primary Contact: Mr. Pradeep Jain Director, Phone: 91-11-26143282

World Trade Center Goa 8th Level Aryston Centre Juhu Road Juhu, Mumbai 400049 India Phone: 91-22-5502 5500 Fax: 91-22-5502 4400 Primary Contact: Mr. Prakash J. Bhojwani Other, President & CEO Phone: 91-22-5502 5500

World Trade Center Hyderabad/Bangalore Mas Buildings, Mather Square Town Railway Station Road Cochin 682 018 India Phone: 91-484-2352074 Fax: 91-484-2352488 Primary Contact: Mr. N ASOKAN Director, Phone: 91-484-2352074

World Trade Centre Mumbai Centre 1 Building, 31st Floor WTC Complex Cuffe Parade Mumbai 400 005 India Phone: 91-22-66387272 Fax: 91-22-22188385 Internet: http://www.wtcmumbai.org Primary Contact: Mr. Vijay Kalantri Vice President, WTC Mumbai Phone: 91-22-66387272

World Trade Center Cochin World Trade Centers (India) Limited XLI/2163, Mather Square Town Railway Station Road Ernakulam North Cochin, 682018 Primary Contact: Phone : 91-484-2352074 Fax : 91-484-235-2488 Email : [email protected]

http://www.wtcdelhi.com/

http://www.wtcmumbai.org/



of 81

ABBREVIATIONS

ADB Asian Development Bank AFDB African Development Bank APEC Asia Pacific Economic Cooperation ARF ASEAN Regional Forum ASEAN Association of Southeast Asian Nations BIMSTEC Bay of Bengal Initiative for MultiSectoral Technical and Economic

Cooperation BIS Bank for International Settlements C Commonwealth CERN Conseil European pour la Recherch-Nucleaire CICA Conference on Interaction and Confidence-Building Measures in Asia EAS East Asia Summit FAO Food and Agriculture Organization (United Nations) G-15 Group of 15; Current 15 leading economies G-20 Group of 20; Current 20 leading economies G-24 Group of 24; Current 24 leading economies G-77 Group of 77; Current 77 leading economies IBRD International Bank for Reconstruction And Development ICAO International Civil Aviation Organization ICC International Chamber of Commerce ICRM International Committee for Radionuclide Metrology IDA Industrial Development Agency IFAD International Fund for Agricultural Development IFC International Finance Corporation IFRCS International Federation of Red Cross and Red Crescent Societies IHO International Hydrographic Organization ILO International Labor Organization IMF International Monetary Fund IMO International Maritime Organization IMSO International Mobile Satellite Organization INTERPOL International Police Organization IOC International Olympic Committee IPU Inter-parliamentary Union ISO [not an acronym] common name for International Organization for

Standardization ITSO International Telecommunications Satellites Organization ITU International Telecommunication Union ITUC International Trade Union Confederation LAS League of Arab States MIGA Multilateral Investment Geographic Agency MONUC United Nations Organization Mission in the Democratic Republic of

the Congo NAM Nonaligned Movement OAS Organization of American States OPCW Organization for the Prohibition of Chemical Weapons PCA Permanent Court of Arbitration

http://en.wikipedia.org/wiki/Asean#Regional_Forum

http://en.wikipedia.org/wiki/Conference_on_Interaction_and_Confidence-Building_Measures_in_Asia

http://en.wikipedia.org/wiki/East_Asia_Summit


of 81

PIF Pacific Islands Forum SAARC South Asian Association for Regional Cooperation SCO Shanghai Cooperation Organization UN United Nations UNCTAD United Nations Conference on Trade & Development UNDOF United Nations Disengagement Observer Force UNESCO United Nations Educational, Scientific & Cultural Organization UNHCR United Nations High Commissioner for Refugees UNIDO United Nations Industrial Development Organization UNIFIL United Nations Interim Force in Lebanon UNITAR United Nations Institute for Training and Research UNMIS United Nations Mission in the Sudan UNMIT United Nations Integrated Mission in Timor-Leste UNOC I United Nations Operation in Cote d'Ivoire UNWTO World Tourism Organization UPU Universal Postal Union WCO World Customs Organization WFTU World Federation of Trade Unions WHO World Health Organization WIPO World Intellectual Property Organization WMO World Meteorological Organization WTO World Trade Organization


of 81

SOURCES

Business Maps of India

http://business.mapsofindia.com/india-tax/corporate-rate.html (Last accessed June 15, 2011) http://business.mapsofindia.com/india-tax/import.html (Last accessed May 18, 2010)

CIA World Fact Book

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html (last accessed January 9, 2012)

Export.gov

http://www.buyusainfo.net/docs/x_5005650.pdf (Last accessed April 22, 2010)

India Briefing http://www.india-briefing.com/news/india-forecasts-72-percent-growth-capita-income-increases-1906.html/ (Last accessed April 27, 2010)

Indian Government Department of Commerce

http://commerce.nic.in/tradestats/indiatrade_press.asp (Last accessed January 9, 2011)

Info Drive India

http://www.infodriveindia.com/Exim/DGFT/Exim-Policy/2009-2014/Default.aspx (Last accessed May 18, 2010) http://www.infodriveindia.com/Exim/DGFT/Exim-Policy/2009-2014/Highlights.aspx (Last accessed May 18, 2010)

International Monetary Fund

http://www.imf.org/external/pubs/ft/wp/2010/wp1007.pdf http://www.imf.org/external/pubs/ft/survey/so/2010/CAR020810A.htm (Last accessed April 27, 2010)

U.S. Census Bureau http://censtats.census.gov/cgi-bin/sitc/sitcCty.pl (Last accessed April 22, 2010)

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html


of 81

World Trade Centers Association http://world.wtca.org/portal/site/wtcaonline/menuitem.16e10d57d69934b4cb8d9d6331208a0c/

(Last accessed April 22, 2010)

Government of India http://india.gov.in/sectors/water_resources/water_resources_overview.php

Central Groundwater Board, Ministry of Water Resource (Gov of India)

http://www.cgwb.gov.in/documents/Ground%20Water%20Regime%20Monitoring%20in%20India%20-%202010.pdf

Grail Research

http://www.grailresearch.com/pdf/ContenPodsPdf/Water-The_India_Story.pdf

Central Water Commission (Gov of India)

http://www.cwc.gov.in/main/downloads/JS_Pricing%20of%20Water%20in%20Public%20System-%20Final-RN_.29.10.pdf

World Bank


Potash Corp & Its Market http://www.potashcorp.com/industry_overview/2010/markets/india/11/

International Water Management Institute http://www.iwmi.cgiar.org/publications/Other/PDF/NRLP%20Proceeding-

2%20Paper%202.pdf

Indian Academy of Sciences

http:// http://www.ias.ac.in/currsci/sep102005/794.pdf

http://india.gov.in/sectors/water_resources/water_resources_overview.php



http://www.grailresearch.com/pdf/ContenPodsPdf/Water-The_India_Story.pdf





http://www.potashcorp.com/industry_overview/2010/markets/india/11/

http://www.iwmi.cgiar.org/publications/Other/PDF/NRLP%20Proceeding-%202%20Paper%202.pdf

http://www.iwmi.cgiar.org/publications/Other/PDF/NRLP%20Proceeding-%202%20Paper%202.pdf

http://www.ias.ac.in/currsci/sep102005/794.pdf


of 81

Central Pollution Control Board- Ministry of Environment & Forest ( Gov of India) http://www.cpcb.nic.in/upload/NewItems/NewItem_153_Foreword.pdf

Sam Group—Sustainability Investing http://www.sam-

group.com/htmle/yearbook/downloads/2010_Water_study_EN.pdf?CFID=3265430&CF TOKEN=15a40f5d5fdc9ec5-947C6BFE-EA38-A23B-3C87EF7DA97D116E

http://www.cpcb.nic.in/upload/NewItems/NewItem_153_Foreword.pdf

110811 India Country and Water Report

Documents

Transcript of 110811 India Country and Water Report