Presentation byPresentation by

H.E. Mr. Balkrishna ShettyH.E. Mr. Balkrishna Shetty

Ambassador of IndiaAmbassador of India

to Sweden & Latviato Sweden & Latvia

At At

´́`Business Opportunities in India`` `Business Opportunities in India``

Seminar organised by Investment & Seminar organised by Investment &

Development Agency of LatviaDevelopment Agency of Latvia

Riga Riga

10 February 10 February ´́1010

I Introduction to India

II India´s Economic Profile

III Indo-Latvian Economic Interaction

The only generalization that can be made about India is that…

No generalization can be made about India

Introduction to India

Civilisation:From 3000 BC

Population - 1.1 billion

2nd largest in the world

Area - 3,287,263 sq kms

7th largest in the world

Coastline: 7,516 kilometers

North-South:> Riga-Athens

Introduction to India

� Has the world´s largest postal network

� Ranks first in the production of milk, butter, mango, tea, raw sugar, jute,

coconut and cashew as well as of films, fertilzers and tractors

� Ranks first in the cutting, processing and manufacturing of germs and

jewellery as well as in diamond cutting and polishing trade

� Second largest producer of vegetables, fruits, rice, groundnuts, sugarbeet

and wheat

� Second largest producer of cement and two-wheelers

Introduction to India

� Has over 7000 daily newspapers

� Fastest growing telecom market: 506 million mobile phone users as of Nov

´09

� Over 11000 train journeys carrying 16 million passengers daily

� More than 350 universities, 1500 advanced institutes, 18000 colleges

� A network of over 68,000 bank branches and 23 stock exchanges

� Producer of largest number of feature films annually (> 1000)

Introduction to India

� Designs, manufactures and launches its own satellites

� One of the three countries to manufacture supercomputers

� A nuclear power and in the forefront of fast-breeder technology

� Two of the top 10 institutes in Stem Cell research based in India.

� Largest number of CMM Level 5 software companies

�Demmings awards

Introduction to India

469599

701809

9131 068

1 166

0

200

400

600

800

1000

1200

1400

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008-09

US$ Billion

Economic Profile

105 105 135 154 190 195103 125

204245

314 329

564618

191237

398439

0

200

400

600

800

1 000

1 200

1999–00 2002–03 2005–06 2006–07 2007-08 2008-09

US$ Billion

Agriculture Industry Services

Economic profile

Source: RBI, Ministry of Finance

5475

112141 152

199

310

252

286

0

50

100

150

200

250

300

350

2001

–02

2002

–03

2003

–04

2004

–05

2005

–06

2006

–07

2007

–08

2008

--09

2009

--10

US$ Billion

Economic Profile

2009-10 : upto Dec 2009

Source: RBI, Ministry of Finance

21,120,4

17,818,6

17,218,0

19,1

22,0

10

13

16

19

22

2001

–02

2002

–03

2003

–04

2004

–05

2005

–06

2006

–07

2007

–08

2008

--09

Ratio

India’s forex reserves are in excess of external debt.

Economic Profile

Source: Department of Commerce

5364

84

103

126

163

183

118

0

50

100

150

200

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008-09 2009--10

US$ Billion

Economic Profile

2009-10 (Apr-Dec ´09)

15

S. No.

CommodityApr-Sep 2009(P)

Value – US$ Millions

Percentage share in total exports

1. GEMS & JEWELLERY 13,608 17.77

2. PETROLEUM (CRUDE & PRODUCTS)

10,579 13.81

3. TRANSPORT EQUIPMENTS 4,852 6.34

4. MACHINERY AND INSTRUMENTS 4,676 6.11

5. DRUGS,PHRMCUTES & FINE CHEMLS

3,988 5,21

Source: DGFT

Economic Profile

Source: Department of Commerce

6278

112

150

185

252

291

194

0

50

100

150

200

250

300

350

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008-09 2009--10

US$ Billion

Economic Profile

2009-10 (Apr-Dec´09)

17

Sl. No.

Commodity

Apr-Sep 2009(P) Value – US$ Millions

Percentage share in total

exports

1. PETROLEUM, CRUDE & PRODUCTS 37,386 30.10

2. GOLD 11,236 9.05

3. ELECTRONIC GOODS 10,676 8.60

4. MACHRY EXCEPT ELEC & ELECTRONIC 9.408 7.58

5. PEARLS PRECIOUS SEMIPRECIOUS STONES

5,430 4.37Source: DGFT

Economic Profile

0

4 500

9 000

13 500

18 000

22 500

27 000

31 500

36 000

2003–04 2004–05 2005–06 2006–07 2007–08 2008-09 2009--10

US$ Bn

Source: RBI

Economic Profile

4.3 6.19.0

23.0

34.435.2

20.0

2009-10 (Apr-Oct ´09)

11,09,0 10,0

3,2

20,3

-15,0

18,2

-20

-15

-10

-5

0

5

10

15

20

25

2003–04 2004–05 2005–06 2006–07 2007–08 2008- 09 2009--10US$ Billion

Economic Profile

2009-10 (Apr-Oct ´09)

� Liberalisation :

� Competition as driver

� Scope for entrepreneurship, quality and management

� Globalisation:

� Tariffs and Technology

� Investments

� Size : Rise of Indian middle class

� Savings rate: 35%

� Growth : Among the fastest

� Stratification : Urban-rural

� Partners

� Human resources: Managers , engineers, workers

� Ease of doing business: Language, rule of law, etc.

� IT/BPO

� Telecom

� Infrastructure

� Health Sector

� Automobile

� Power

� Training & Education

� Clean technology

Source: Ministry of Commerce

Tata Steel bought Corus Plc in 2007Tata Steel bought Corus Plc in 2007

Hindalco acquired Novelis Inc. in 2007Hindalco acquired Novelis Inc. in 2007

Tata bought Jaguar and Land Rover in 2007

Tata bought Jaguar and Land Rover in 2007

26

Suzlon Energy Ltd. acquired RepowerSuzlon Energy Ltd. acquired Repower

ONGC acquired Imperial Energy PLC ONGC acquired Imperial Energy PLC

Essar Steel acquired Algoma Steel in 2007Essar Steel acquired Algoma Steel in 2007

“India is now truly a land

of opportunity.”

John Redwood

Economic Competitiveness

Policy Group, UK

John Redwood

Economic Competitiveness

Policy Group, UK

“Constraints in India can be a source of

dramatic global innovation, such as Tata

Nano and a host of other low-cost

products.”

Dr.C.K.Prahlad,

Management Guru

Dr.C.K.Prahlad,

Management Guru

“By 2032, India will be among the

three largest economies in the

world.”

BRIC Report,

Goldman Sachs

BRIC Report,

Goldman Sachs

Business opportunities

Value in US$ Mn

Value in US$ Mn

The total Indian exports to Latvia for Jan-

Nov 2009 : US$ 17 million (US$ 25 million

Jan-Nov 2008)

The total Indian imports from Lativa for Jan-

Nov 2009: US$ 10 million (US$ 10 million

Jan-Nov 2008)

Major Latvian export items to India:

� Base metals and articles of base metals

� Machinery and mechanical appliances

� Products of the chemical and allied industries

� Live animals and animal products

� Optical instruments, clocks and watches, musical

instruments

Major Latvian import items from India:

� Products of the Chemical and allied industries

� Textiles and textile articles

� Prepared food stuffs

� Plastics and rubber and articles thereof

� Vegetable Products

Telecommunications

IT

Pharmaceuticals

Metal Working

Machinery

Logistics

Food processing

IT/BPO

Telecom

Infrastructure

Health Sector

Automobile

Power

Training & Education

Clean technology

� The two countries are expected to sign Bilateral

Investment Promotion & Protection Agreement

(BIPA) shortly.

� The Double Taxation Avoidance Agreement

(DTAA) is under negotiations.

For Guiding your Investments - http://www.investindia.gov.in/