India Present 06eng

8/7/2019 India Present 06eng

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India:India:A Partner in the SouthA Partner in the South


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INDIA : A ProfileINDIA : A Profile Population:Population: 1,147,995,898 (1,147,995,898 (JulyJuly 20082008 estest.).)

GDP :GDP : $2.989$2.989 trilliontrillion (2007(2007 estest.).)

GDP per capita:GDP per capita: $2,700 (2007$2,700 (2007 estest.).)

GDP Growth rate:GDP Growth rate:

55--6 % since 19806 % since 1980

8.2 %(2003)8.2 %(2003)

8.5% (2004)8.5% (2004)

8.6% (20058.6% (2005--2006)2006)

9.6% (20069.6% (2006--2007)2007)

A demographic fact:A demographic fact:

Majority i.e. 550 million plus, under 25 years of ageMajority i.e. 550 million plus, under 25 years of age

SourceSource: www.cia.org: www.cia.org


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INDIA : A ProfileINDIA : A Profile Current Account balance:Current Account balance: Positive since 2004Positive since 2004

Low Inflation:Low Inflation: 6.4%6.4% (2007(2007 estest.).)

Foreign Exchange Reserves:Foreign Exchange Reserves: $275$275 billionbillion (31(31 DecemberDecember

20072007 estest.).)

Gross average savings rate:Gross average savings rate: 29.1%29.1%

Gross average investment rate:Gross average investment rate: 34.6% ofGDP34.6% ofGDP (2007 est.)(2007 est.)

External DebtExternal Debt $148.1 billion$148.1 billion (31(31

December 2007)December 2007)

External Debt, GDP ratio:External Debt, GDP ratio: 19921992 39%39%

20032003 20%20%20052005 16%16%


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Indian TradeIndian Trade GloballyGloballyIn US $ BillionIn US $ Billion

19901990--9191 20032003--0404 20042004--0505 20052005--0606 20062006--0707

Exports 18.1 63.8 83.5 102.7Exports 18.1 63.8 83.5 102.7 150.8150.8

ImportsImports 24.1 78.1 111.5 142.424.1 78.1 111.5 142.4 230.2230.2

Total 42.2 141.9 195 245.1Total 42.2 141.9 195 245.1 381.1381.1

SourceSource: www.cia.gov: www.cia.gov


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IndiaIndia--Venezuela TradeVenezuela Trade

(Million US$)(Million US$)20032003 20042004 20052005 20062006 2007

VenezuelanVenezuelanimports fromimports fromIndiaIndia

26.01826.018 50.96150.961 98.27598.275 130.967130.967165.546

VenezuelanVenezuelannonnon--oiloilexports toexports toIndiaIndia

4.3704.370 9.7559.755 34.65134.651 67.20167.201 79.585

VenezuelanVenezuelan

oil exports tooil exports toIndiaIndia

---- ---- ---- 535.514535.514 459.000

COMERCIOCOMERCIOTOTALTOTAL

30.38830.388 60.71660.716 132.926132.926 733.682733.682 704.131

SourceSource:: NationalNational StatisticsStatistics InstituteInstitute (INE)(INE)


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Composition of Indias TradeComposition of Indias Trade

EXPORTSEXPORTS Manufacture:Manufacture: 78 %78 %

TextilesTextiles

Gems & JewelleryGems & Jewellery Leather ProductsLeather Products

PharmaceuticalsPharmaceuticals

ChemicalsChemicals

MachineryMachinery

Iron &SteelIron &Steel

AutoAuto--partsparts

Primary sectors:Primary sectors: 1414--15%15%


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Indias RegionIndias Region--wise Exportswise Exports(Values in US$ Million)(Values in US$ Million)

RegionRegion 20032003--20042004

%%shareshare

20042004--20052005 %%shareshare

20052005--20062006 % share% share

EU CountriesEU Countries 14,44314,443 22.6222.62 7,8827,882 21.8921.89

Other WE CountriesOther WE Countries 1,1061,106 1.731.73 622622 1.721.72

North AmericaNorth America 12,25312,253 19.1919.19 6,9336,933 19.2619.26

East EuropeEast Europe 116116 0.180.18 6767 0.180.18

East AsiaEast Asia 703703 1.101.10 386386 1.071.07

ASEANASEAN 5,8215,821 9.119.11 3,5923,592 9.989.98

WANAWANA 10,18510,185 15.9515.95 6,1386,138 17.0517.05

NE AsiaNE Asia 9,3879,387 14.7014.70 4,9044,904 13.6213.62

South AsiaSouth Asia 4,2934,293 6.726.72 2,0612,061 5.725.72

Latin AmericaLatin America 1,1381,138 1.781.78 916916 2.542.54 1422.361422.36CARs countriesCARs countries 151151 0.230.23 8787 0.240.24

Other CIS countriesOther CIS countries 884884 1.381.38 425425 1.181.18

Southern AfricaSouthern Africa 791791 1.231.23 590590 1.641.64

West AfricaWest Africa 1,2731,273 1.991.99 625625 1.731.73

Central AfricaCentral Africa 150150 0.230.23 8080 0.220.22

East AfricaEast Africa 860860 1.341.34 474474 1.311.31

UnspecifiedUnspecified 279279 0.430.43 205205 0.560.56

Total ExportsTotal Exports 63,84263,842 35,99535,995 101,000101,000


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Composition of Indias TradeComposition of Indias Trade

IMPORTSIMPORTS Major Imports:Major Imports:

Petroleum, Oil & Lubricants: 25Petroleum, Oil & Lubricants: 25--30 %30 % Edible oilsEdible oils

Electronic goodsElectronic goods

IntermediatesIntermediates

ChemicalsChemicals Capital goodsCapital goods


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Indias RegionIndias Region--wise Importswise Imports(Values in US$ Million)(Values in US$ Million)

RegionRegion 20032003--

20042004

%%

shareshare

20042004--20052005

(Apr(Apr--Sep)Sep)

%%

shareshare

20052005--20062006 % share% share

EU CountriesEU Countries 14,99114,991 19.1819.18 8,0088,008 16.6416.64

Other WE CountriesOther WE Countries 3,6983,698 4.734.73 2,4792,479 5.155.15

North AmericaNorth America 5,7605,760 7.377.37 3,0383,038 6.316.31

East EuropeEast Europe 9696 0.120.12 9595 0.190.19

East AsiaEast Asia 2,7512,751 3.523.52 1,6821,682 3.493.49

ASEANASEAN 7,4337,433 9.519.51 4,0854,085 8.498.49

WANAWANA 4,9264,926 6.306.30 3,6183,618 7.517.51

NE AsiaNE Asia 11,81511,815 15.1115.11 6,9546,954 14.4514.45

Latin AmericaLatin America 1,1921,192 1.521.52 844844 1.751.75 1114.721114.72

South AsiaSouth Asia 709709 0.900.90 396396 0.820.82

CARs countriesCARs countries 5050 0.060.06 2626 0.050.05

Other CIS countriesOther CIS countries 1,2101,210 1.541.54 829829 1.721.72

Southern AfricaSouthern Africa 1,9591,959 2.502.50 861861 1.791.79

West AfricaWest Africa 580580 0.740.74 481481 1.001.00

Central AfricaCentral Africa 1010 0.010.01 77 0.010.01

East AfricaEast Africa 184184 0.230.23 6363 0.130.13

UnspecifiedUnspecified 20,77620,776 26.5826.58 14,65014,650 30.4430.44

Total ExportsTotal Exports 78,14978,149 48,12548,125 140,000140,000


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External AssistanceExternal Assistance

(Million US$)(Million US$)ReceiptsReceipts Repayment ofRepayment ofPrincipalPrincipal

Payment of InterestPayment of Interest

20052005--0606 20062006--0707 20052005--0606 20062006--0707 20052005--0606 20062006--0707

External AssistanceExternal Assistance--Govt. AccountGovt. Account

223.1223.1 315.9315.9 144.5144.5 212.6212.6 59.459.4 69.969.9

External AssistanceExternal Assistance--NonNon--Govt AccountGovt Account

13.913.9 5.35.3 14.514.5 9.29.2 5.35.3 4.94.9

T O T A LT O T A L 237237 321.2321.2 129129 221.8221.8 64.764.7 74.874.8

Develloped banking system with 295 commercial banks and 66.000

branch offices

NPAs under 10%

Foreign private banks

Ceiling on equity of 74%

Opening 12 new branch offices every year


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Taxes and Customs (2006)Taxes and Customs (2006)

Corporate TaxSlab 30%Corporate TaxSlab 30%

Individual income up to Rs.100,000/Individual income up to Rs.100,000/-- (US$(US$2.222.2.222.--) exempt from Income Tax.) exempt from Income Tax.

Double Taxation Avoidance Treaties with mostDouble Taxation Avoidance Treaties with most

major economies.major economies.

Customs Duty on Crude Oil is 5%Customs Duty on Crude Oil is 5%


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Capital MarketCapital Market 23 Stock Exchanges23 Stock Exchanges

9000 Listed Companies9000 Listed Companies

FII * for 2005FII * for 2005--2006: US$ 6 Billion2006: US$ 6 Billion

FDIFDI **: 2004 US$: 5.5 Billion / 2005: US$ 6.6 Billion**: 2004 US$: 5.5 Billion / 2005: US$ 6.6 Billion

FDI up to 100% automatic approval in infrastructureFDI up to 100% automatic approval in infrastructure

projects (2005)projects (2005)

*Foreign Institutional Investments*Foreign Institutional Investments**Foreign Direct Investment**Foreign Direct Investment

Source: UNCTADSource: UNCTAD


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Energy SectorEnergy Sector In hydrocarbons, India is strong in the areas of prospecting, exploration,In hydrocarbons, India is strong in the areas of prospecting, exploration,production and refining.production and refining.

Public and private sector Indian companies in the hydrocarbon sector have thePublic and private sector Indian companies in the hydrocarbon sector have thecapacity to undertake actual commercial activities, such as production, refiningcapacity to undertake actual commercial activities, such as production, refiningand setting up down stream industries.and setting up down stream industries.

India could offer turnkey projects, operation and maintenance of power plants,India could offer turnkey projects, operation and maintenance of power plants,thermal generation and transmission, feasibility and prethermal generation and transmission, feasibility and pre--feasibility studies,feasibility studies,

engineering services, contract management, procurement services, projectengineering services, contract management, procurement services, projectmanagement and site supervision.management and site supervision.

Indian oil companies have huge investments in exploration and exploitationIndian oil companies have huge investments in exploration and exploitationactivities in Vietnam, Russia, Sudan, Angola, Ivory Coast and plans to ventureactivities in Vietnam, Russia, Sudan, Angola, Ivory Coast and plans to ventureinto Iran, Libya, Venezuela and other countries.into Iran, Libya, Venezuela and other countries.

Power sector reforms began in 1991 and culminated in the Electricity Act,Power sector reforms began in 1991 and culminated in the Electricity Act,notified on June 2nd, 2003.notified on June 2nd, 2003.

Private sector participation permitted in all areas of power sector.Private sector participation permitted in all areas of power sector.

131.400 MW additional capacity, envisaging US $ 128 Billion in generation,131.400 MW additional capacity, envisaging US $ 128 Billion in generation,transmission and distribution.transmission and distribution.

Feasibility reports on 50.000 MW of Hydel Power under preparation.Feasibility reports on 50.000 MW of Hydel Power under preparation.

5300 Mw installed capacity of wind energy among other sources of alternative5300 Mw installed capacity of wind energy among other sources of alternative

energyenergy

Other opportunities include renovation & modernization projects.Other opportunities include renovation & modernization projects.


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Science and TechnologyScience and Technology India has the third largest scientific and technical manpower inIndia has the third largest scientific and technical manpower in

the world.the world.

162 universities award 4000 doctorates and 35,000 post162 universities award 4000 doctorates and 35,000 post--graduategraduate

degreesdegrees

Council ofScientific and Industrial Research runs 38 researchCouncil ofScientific and Industrial Research runs 38 research

laboratories and 50 outreach centres.laboratories and 50 outreach centres. More than 100 MNCs have set upR&D centers in India with a totalMore than 100 MNCs have set upR&D centers in India with a total

investment of US$ 1 billion.investment of US$ 1 billion.

In the past four decades, an infrastructure and capability hasIn the past four decades, an infrastructure and capability has

been created.been created.

A range of industries from small to the most sophisticated hasA range of industries from small to the most sophisticated hasbeen established covering a wide range of utilities, services andbeen established covering a wide range of utilities, services and

goods.goods.

There is a reservoir of expertise well acquainted with the mostThere is a reservoir of expertise well acquainted with the most

modern advances in basic and applied areas that is equipped tomodern advances in basic and applied areas that is equipped to

make choices between available technologies.make choices between available technologies.


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Information Technology (IT)Information Technology (IT) A separate Ministry of IT since Oct. 1999 underscores Government support andA separate Ministry of IT since Oct. 1999 underscores Government support and

commitment.commitment.

IT Act 2000 provides a legal framework for electronic contracts, signatures, cyberIT Act 2000 provides a legal framework for electronic contracts, signatures, cybercrime, etc. for facilitating conduct of business in cyber space.crime, etc. for facilitating conduct of business in cyber space.

100% foreign equity permitted in software and electronics (except aerospace and100% foreign equity permitted in software and electronics (except aerospace anddefense).defense).

Export oriented FDI welcomed in Software Technology Parks, Electronic HardwareExport oriented FDI welcomed in Software Technology Parks, Electronic Hardware

Parks.Parks.

Tax holiday up to 2010 for units in STPs.Tax holiday up to 2010 for units in STPs.

A phenomenal growth story: from US$ 1.7 billion in 1993A phenomenal growth story: from US$ 1.7 billion in 1993--94 to US$ 29.5 billion in94 to US$ 29.5 billion in20052005--06; a CAGRof 33%.06; a CAGRof 33%.

IT exports reached US$23 billion mark in 2003IT exports reached US$23 billion mark in 2003--20042004

Target of US$50 billion for IT and ITES exports and US$10 billion of hardwareTarget of US$50 billion for IT and ITES exports and US$10 billion of hardwareexports by 2008.exports by 2008.

Hardware industry employs over 1,300,000 people IN 2006Hardware industry employs over 1,300,000 people IN 2006

India will be the third largest market for semiIndia will be the third largest market for semi--conductor industry by 2050.conductor industry by 2050.

India is already leading in digital design, and is very strong in VLSI design.India is already leading in digital design, and is very strong in VLSI design.

220 Fortune 500 Companies are clients of Indian IT Companies, including GE, Intel,220 Fortune 500 Companies are clients of Indian IT Companies, including GE, Intel,Microsoft, Dell, Sun Micro, Oracle, Ford, American Express and others.Microsoft, Dell, Sun Micro, Oracle, Ford, American Express and others.


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PharmaceuticalsPharmaceuticals

US$ 10 billion Indian pharmaceutical industry for the periodUS$ 10 billion Indian pharmaceutical industry for the period2005/06 has grown to rank FOURTH in the world in terms of2005/06 has grown to rank FOURTH in the world in terms ofvolume.volume.

By 2010, the Indian pharma industry is likely to grow to US$25By 2010, the Indian pharma industry is likely to grow to US$25billion.billion.

Pharma exports reached US$ 4 Billion in 2004/05 and is expectedPharma exports reached US$ 4 Billion in 2004/05 and is expectedto grow to US$ 7 Billion by 2007/08to grow to US$ 7 Billion by 2007/08

It is 40% cheaper to set up a plant in India than any developedIt is 40% cheaper to set up a plant in India than any developedcountry and the cost of bulk drug production is 60 to 70%country and the cost of bulk drug production is 60 to 70%

cheaper.cheaper.

More than 5000 scientists work on application of biotechnology inMore than 5000 scientists work on application of biotechnology inbroad areas of agriculture, health care, animal sciences,broad areas of agriculture, health care, animal sciences,environment and industry.environment and industry.


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Nuclear Energy & TechnologyNuclear Energy & Technology

The Indian atomic energy programme envisages buildingThe Indian atomic energy programme envisages buildingofpressurized heavy water reactors, fast breederofpressurized heavy water reactors, fast breederreactors, and thoriumreactors, and thorium--based reactors on commercialbased reactors on commercialscale.scale.

Research & development in the field ofFast BreederResearch & development in the field ofFast BreederReactor (FBR).Reactor (FBR).

At the end of 2002, the total generation of nuclearAt the end of 2002, the total generation of nuclearpower plants stood at 185,640 million units. Installedpower plants stood at 185,640 million units. Installedcapacity of almost 4000 MW (2005)capacity of almost 4000 MW (2005)

Technology development relating to operation andTechnology development relating to operation andmaintenance of reactors, waste management, safety andmaintenance of reactors, waste management, safety andenvironment monitoring.environment monitoring.


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SpaceSpace

Agreements with 50 countries on collaboration.Agreements with 50 countries on collaboration.

Department ofSpace has established linkages with moreDepartment ofSpace has established linkages with morethan 500 industries in small, medium and large scalethan 500 industries in small, medium and large scale

sectors, either through procurement of contracts, knowsectors, either through procurement of contracts, know--how transfers or provision of technical consultancy.how transfers or provision of technical consultancy.

India has large constellation ofRemote Sensing SatellitesIndia has large constellation ofRemote Sensing Satellites satellite image mapping; meteorology, telecommunications,satellite image mapping; meteorology, telecommunications,etc.etc.

India has a robust launch vehicle programme and can offerIndia has a robust launch vehicle programme and can offerlaunch services to other countries.launch services to other countries.


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MediaMedia

TelevisionTelevision 112 Million homes have television of which 64 Million are112 Million homes have television of which 64 Million are

color TV.color TV. Cable and satellite services in 68 million homes.Cable and satellite services in 68 million homes.

Print MediaPrint Media

222 Million people read newspapers and magazines every222 Million people read newspapers and magazines everyday.day.

The 2 largest Hindi language newspapers have a readership ofThe 2 largest Hindi language newspapers have a readership ofover 21 million.over 21 million.

The largest English newspaper (times of India) has over 7,4The largest English newspaper (times of India) has over 7,4Million readers.Million readers.

CinemaCinema Film industry generates over US$ 2,8 Billion.Film industry generates over US$ 2,8 Billion. Over 1000 full length films produced every year.Over 1000 full length films produced every year.

RadioRadio: Reaches 27% of the population: Reaches 27% of the population

InternetInternet: 12,6 Million people have access to Internet: 12,6 Million people have access to Internet


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Indias Foreign PolicyIndias Foreign Policy Equitable international economic orderEquitable international economic order

Active member of NAM, Group of 77 and GActive member of NAM, Group of 77 and G--15 nations.15 nations.

Strengthening of regional cooperation as a member of the South Asian AssociationStrengthening of regional cooperation as a member of the South Asian Associationfor Regional Cooperation (SAARC), established in December 1985.for Regional Cooperation (SAARC), established in December 1985.

Sectoral Dialogue Partner of ASEAN in 1992 and full dialogue partner and member ofSectoral Dialogue Partner of ASEAN in 1992 and full dialogue partner and member ofARF (ASEAN Regional Forum) in 1996, India became a Summit Partner in 2002.ARF (ASEAN Regional Forum) in 1996, India became a Summit Partner in 2002.

India and ASEAN signed a Framework Agreement on Comprehensive EconomicIndia and ASEAN signed a Framework Agreement on Comprehensive Economic

Cooperation in October 2003.Cooperation in October 2003.

1212thth Dialogue Partner of the Pacific Islands Forum (PIF) during the Suva Summit inDialogue Partner of the Pacific Islands Forum (PIF) during the Suva Summit inAugust 2002.August 2002.

Central Asian CountriesCentral Asian Countries Indias Silk Route Initiative.Indias Silk Route Initiative.

India and the Gulf regionIndia and the Gulf region sizeable Indian community; one of the main sources forsizeable Indian community; one of the main sources forIndias energy imports and amongst our most important trade, investment and jointIndias energy imports and amongst our most important trade, investment and joint

venture partners.venture partners. Relations with 14 countries ofWest Asia & North Africa (WANA)Relations with 14 countries ofWest Asia & North Africa (WANA) upgraded trade andupgraded trade and

economic relations,economic relations, -- investments in upstream and hydrocarbon sectors in Sudan andinvestments in upstream and hydrocarbon sectors in Sudan andLibya.Libya.

Annual strategic summit meetings with European Union.Annual strategic summit meetings with European Union.

Focus LAC Programme since 1997. Bilateral visits and agreements.Focus LAC Programme since 1997. Bilateral visits and agreements.

Has Preferential Tariff Agreement with MercosurHas Preferential Tariff Agreement with Mercosur


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United NationsUnited Nations

India is a founder member of the United Nations.India is a founder member of the United Nations.

India seeks to promote multiIndia seeks to promote multi--polarity in worldpolarity in worldrelations.relations.

India currently participates in several UN peaceIndia currently participates in several UN peacemissions.missions.

Indias candidature for Membership of the UNIndias candidature for Membership of the UNSecurity Council.Security Council.

India is a member of the Council for HumanIndia is a member of the Council for HumanRights, the Disarmament Commission and theRights, the Disarmament Commission and theAEIE (Atomic Energy International Agency)AEIE (Atomic Energy International Agency)


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Indian DiasporaIndian Diaspora

Separate Ministry of the NonSeparate Ministry of the Non--Resident IndianResident Indian(NRI) Affairs.(NRI) Affairs.

Main NRI communities in Sri Lanka, Malaysia,Main NRI communities in Sri Lanka, Malaysia,

Mauritius, South Africa, Persian Gulf, CaribbeanMauritius, South Africa, Persian Gulf, Caribbeanand Fiji.and Fiji.

Revised OCI Card Scheme was implemented fromRevised OCI Card Scheme was implemented fromDecember 2005.December 2005.

The Pravasi Bharatiya Divas (PBD) first organizedThe Pravasi Bharatiya Divas (PBD) first organizedby Government of India in Delhi in January 2003,by Government of India in Delhi in January 2003,is an annual event.is an annual event.


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Economic DiplomacyEconomic Diplomacy

Promotion ofSouthPromotion ofSouth--South cooperation.South cooperation.

Indian Technical &Economic Cooperation (ITEC)Indian Technical &Economic Cooperation (ITEC)

programme, established in 1964, reaches out to otherprogramme, established in 1964, reaches out to other

developing countries in sharing our developmentaldeveloping countries in sharing our developmental

experience.experience.

ITEC programme extends to 155 countries in Asia, EastITEC programme extends to 155 countries in Asia, East

Europe, Africa and Latin America.Europe, Africa and Latin America.

Nearly 3000 candidates in Indian institutions each year.Nearly 3000 candidates in Indian institutions each year.

Experts, equipment & machinery to foreign countries of theExperts, equipment & machinery to foreign countries of theSouth to meet their developmental needs.South to meet their developmental needs.

Foreign Aid in Grants and Loans to several developingForeign Aid in Grants and Loans to several developing

countries. 10 scholarships granted to Venezuelan nationalscountries. 10 scholarships granted to Venezuelan nationals

in 2005 and 15 more are available for 2006in 2005 and 15 more are available for 2006


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Thank youThank you

India Present 06eng

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