Metal

Introduction

metal, chemical element displaying certain properties by which it is normally

distinguished from a non metal, notably its metallic luster, the capacity to lose

electrons and form a positive ion, and the ability to conduct heat and electricity. The

metals comprise about two thirds of the known elements (see periodic table). Some

metals, including copper, tin, iron, lead, gold, silver, and mercury, were known to the

ancients; copper is probably the oldest known metal.

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a. Physical Properties

Metals differ so widely in hardness, ductility (the potentiality of being drawn into

wire), malleability, tensile strength, density, and melting point that a definite line of

distinction between them and the non metals cannot be drawn. The hardest

elemental metal is chromium; the softest, cesium. Copper, gold, platinum, and silver

are especially ductile. Most metals are malleable; gold, silver, copper, tin, and

aluminum are extremely so. Some metals exhibiting great tensile strength are

copper, iron, and platinum. Three metals (lithium, potassium, and sodium) have

densities of less than one gram per cubic centimeter at ordinary temperatures and

are therefore lighter than water. Some heavy metals, beginning with the most

dense, are osmium, iridium, platinum, gold, tungsten, uranium, tantalum, mercury,

hafnium, lead, and silver.

For many industrial uses, the melting points of the metals are important. Tungsten

fuses, or melts, only at extremely high temperatures (3,370°C.), while cesium has a

melting point of 28.5°C. The best metallic conductor of electricity is silver. Copper,

gold, and aluminum follow in the order named. All metals are relatively good

conductors of heat; silver, copper, and aluminum are especially conductive. The

radioactive metal uranium is used in reactor piles to generate steam and electric

power. Plutonium, another radioactive element, is used in nuclear weapons and

nuclear reactors as well as in pacemakers. Some of the radioactive metals not found

in nature, e.g., fermium and sea borgium, are produced by nuclear bombardment.

Some elements, e.g., arsenic and antimony, exhibit both metallic and non metallic

properties and are called metalloids. Furthermore, although all metals form crystals,

this is also characteristic of certain nonmetals, e.g., carbon and sulfur.

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b. Chemical Properties

Chemically, the metals differ from the non metals in that they form positive ions and

basic oxides and hydroxides. Upon exposure to moist air, a great many undergo

corrosion, i.e., enter into a chemical reaction; e.g., iron rusts when exposed to moist

air, the oxygen of the atmosphere uniting with the metal to form the oxide of the

metal. Aluminum and zinc do not appear to be affected, but in fact a thin coating of

the oxide is formed almost at once, stopping further action and appearing

unnoticeable because of its close resemblance to the metal. Tin, lead, and copper

react slowly under ordinary conditions. Silver is affected by compounds such as

sulfur dioxide and becomes tarnished when exposed to air containing them. The

metals are combined with non metals in their salts, as in carbides, carbonates,

chlorides, nitrates, phosphates, silicates, sulfides, and sulfates.

c. The Electromotive Series

On the basis of their ability to be oxidized, i.e., lose electrons, metals can be

arranged in a list called the electromotive series, or replacement series. Metals

toward the beginning of the series, like cesium and lithium, are more readily oxidized

than those toward the end, like silver and gold. In general, a metal will replace any

other metal, or hydrogen, in a compound that it precedes in the series, and under

ordinary circumstances it will be replaced by any metal, or hydrogen, that it follows.

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d. Sources and Uses

Although a few metals occur un combined in nature, the great majority are found

combined in their ores. The separation of metals from their ores is called extractive

metallurgy. Metals are mixed with each other in definite amounts to form alloys; a

mixture of mercury and another metal is called an amalgam. Bronze is an alloy of

copper and tin, and brass contains copper and zinc. Metal is an alloy of iron and

other metals with carbon added for hardness.

Since metals form positive ions readily, i.e., they donate their orbital electrons, they

are used in chemistry as reducing agents (see oxidation and reduction). Finely

divided metals or their oxides are often used as surface catalysts. Iron and iron

oxides catalyze the conversion of hydrogen and nitrogen to ammonia in the Haber

process. Finely divided catalytic platinum or nickel is used in the hydrogenation of

unsaturated oils. Metal ions orient electron-rich groups called ligands around

themselves, forming complex ions. Metal ions are important in many biological

functions, including enzyme and coenzyme action, nucleic acid synthesis, and

transport across membranes.

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A Short History of Metals

Process Metallurgy is one of the oldest applied sciences. Its history can be traced

back to 6000 BC. Admittedly, its form at that time was rudimentary, but, to gain a

perspective in Process Metallurgy, it is worthwhile to spend a little time studying the

initiation of mankind's association with metals. Currently there are 86 known metals.

Before the 19th century only 24 of these metals had been discovered and, of these

24 metals, 12 were discovered in the 18th century. Therefore, from the discovery of

the first metals - gold and copper until the end of the 17th century, some 7700 years,

only 12 metals were known. Four of these metals, arsenic, antimony , zinc and

bismuth , were discovered in the thirteenth and fourteenth centuries, while

platinum was discovered in the 16th century. The other seven metals, known as the

Metals of Antiquity, were the metals upon which civilisation was based. These seven

metals were:

o Gold (ca) 6000BC

o Copper,(ca) 4200BC

o Silver,(ca) 4000BC

o Lead, (ca) 3500BC

o Tin, (ca) 1750BC

o Iron,smelted, (ca) 1500BC

o Mercury, (ca) 750BC

These metals were known to the Mesopotamians, Egyptians, Greeks and the

Romans. Of the seven metals, five can be found in their native states, e.g., gold,

silver, copper, iron (from meteors) and mercury. However, the occurrence of these

metals was not abundant and the first two metals to be used widely were gold and

copper. And, of course, the history of metals is closely linked to that of coins and

gemstones

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a. Gold

Gold articles are found extensively in antiquity mainly as jewelry e.g. Bracelets, rings

etc. Early gold artifacts are rarely pure and most contain significant silver contents.

This led to the ancients naming another metal - electrum, which was an alloy of gold

and silver, pale yellow and similar in color to amber. Therefore, early gold varied

from pure through electrum to white gold. The symbol for gold is Au from the

latinaurum meaning shining dawn.

Stone age man learned to fashion gold into jewelry and ornaments, learning that it

could be formed into sheets and wires easily. However, its malleability, which allows

it to be formed into very thin sheet (0.000005 inches), ensures that it has no

utilitarian value and early uses were only decorative. As gold is a noble metal, being

virtually noncorrosive and tarnish free, it served this purpose admirably.

Gold is widely dispersed through the earth's crust and is found in two types of

deposits : lode deposits, which are found in solid rock and are mined using

conventional mining techniques, and placer deposits which are gravelly deposits

found in stream beds and are the products of eroding lode deposits. Since gold is

found uncombined in nature, early goldsmiths would collect small nuggets of gold

from stream beds etc., and then weld them together by hammering.

Thus we find the first problem in process metallurgy : The metal deposit must be

identified. In the case of the first metals color was the most important factor as it

allowed the metal to be recognized in surrounding rock, stones, gravel and dirt

(gangue) and separated. Clearly, after recognition, separation is next problem

followed by concentration. These three steps are very important and the economics

of these steps usually define whether it is viable to produce the metal from a set

deposit. In the early days all three steps were carried out simultaneously. Gold is

widely dispersed throughout the earths crust (0.005 ppm) at a very small level,

therefore, it is very important to find naturally occurring concentrations. The scarcity

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of gold and its value, due to mankinds fascination with its color, have lead to gold

being the one of the more important metals in daily life.

b. Copper

The use of copper in antiquity is of more significance than gold as the first tools,

implements and weapons were made from copper. From 4,000 to 6,000 BC was the

Chalcolithic period which was when copper came into common use. The symbol for

copper is Cu and comes from the latin cuprum meaning from the island of Cyprus.

Initially copper was chipped into small pieces from the main mass. The small pieces

were hammered and ground in a manner similar to the techniques used for bones

and stones. However, when copper was hammered it became brittle and would

easily break. The solution to this problem was to anneal the copper. This discovery

was probably made when pieces were dropped in camp fires and then hammered.

By 5,000 BC copper sheet was being made.

By 3600 BC the first copper smelted artifacts were found in the Nile valley and

copper rings, bracelets, chisels were found. By 3000 BC weapons, tools etc. were

widely found. Tools and weapons of utilitarian value were now within society,

however, only kings and royalty had such tools; it would take another 500 years

before they reached the peasants.

Malachite, a green friable stone, was the source of copper in the early smelters.

Originally it was thought that the smelting of copper was by chance dropping of

malachite into campfires. However, campfire temperatures are normally in the

region of 600-650 C, whereas, 700-800 C is necessary for reduction. It is more

probable that early copper smelting was discovered by ancient potters whose clay

firing furnaces could reach temperatures of 1100-1200 C. If Malachite was added to

these furnaces copper nodules would easily be found. Although the first smelted

copper was found in the Nile valley, it is thought that this copper was brought to

Egypt by the Gerzeans and copper smelting was produced first in Western Asia

between 4000 and 4300 BC.

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Although copper can be found free in nature the most important sources are the

minerals cuprite, malachite, azurite, chalcopyrite and bornite. Copper is reddish

colored, malleable, ductile and a good conductor of heat and electricity.

Approximately 90% 0f the worlds primary copper originates in sulfide ores.

c. Lead

Lead is not found free in nature but Galena (lead sulfide) was used as an eye paint by

the ancient Egyptians. Galena has a very metallic looking appearance and was,

therefore, likely to attract the attention of early metalworkers. The production of

metallic lead from its ore is relatively easy and could have been produced by

reduction of Galena in a camp fire. The melting point of lead is 327 C, therefore, it

would easily flow to the lowest point in the fireplace and collect. At first lead was not

used widely because it was too ductile and the first uses of lead were around 3500

B.C.. Lead's use as a container and conduit was important and lead pipes bearing the

insignia of Roman emperors can still be found. Lead is highly malleable, ductile and

noncorrosive making it an excellent piping material. Its symbol is Pb from the latin

plumbum.

The ability of lead to flow and collect at the bottom of the campfire is an important

concept in process metallurgy as reduction reactions to be useful must cause a phase

separation between the metal and the gangue. Also, the phase separation should

also enable the metal to be cast into a desired shape once concentrated.

d. Silver

Although silver was found freely in nature, its occurrence was rare. Silver is the most

chemically active of the noble metals, is harder than gold but softer than copper. It

ranks second in ductility and malleability to gold. It is normally stable in pure air and

water but tarnishes when exposed to ozone, hydrogen sulfide or sulfur. Due to its

softness, pure silver was used for ornaments, jewelry and as a measure of wealth. In

a manner similar to gold, native silver can easily be formed. Silver's symbol is Ag

from the latin argentum.

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Galena always contains a small amount of silver and it was found that if the lead was

oxidized into a powdery ash a droplet of silver was left behind. Another development

in this process was the discovery that if bone ash was added to the lead oxide, the

lead oxide would be adsorbed and a large amount of material could be processed. By

2500 BC the cupellation process was the normal mode of silver manufacture.

e. Tin

Smelted copper was rarely pure, in fact, it is clear that by 2500 BC the Sumerians had

recognized that if different ores were blended together in the smelting process, a

different type of copper, which flowed more easily, was stronger after forming and

was easy to cast, could be made. An axe head from 2500 BC revealed that it

contained 11% tin and 89% copper. This was of course the discovery of @b(Bronze).

However, by 2000 BC copper implements contained very little tin as local reserves of

tin had been exhausted. The Sumerians were forced to travel to find the necessary

ores. Bronze was a much more useful alloy than copper as farm implements and

weapons could be made from it, however, it needed the discovery of tin to become

the alloy of choice.

Native Tin is not found in nature. The first tin artifacts date back to 2000 B.C.,

however, it was not until 1800 B.C. that tin smelting became common in western

Asia. Tin was reduced by charcoal and at first was thought to be a form of lead. The

Romans referred to both tin and lead as plumbum where lead was plumbumnigrum

and tin was plumbumcandidum. Tin was rarely used on its own and was most

commonly alloyed to copper to form bronze. The most common form of tin ore is

the oxide casserite. By 1400 BC.bronze was the predominant metal alloy. Tin's

symbol is Sn from the stannum.

Tin is highly malleable and ductile and has two allotropic forms which lead to tin

initially having its own disease (tin pest or blight) which was actually formation of

alpha-tin below 13 C. As alpha-tin is a highly friable cubic structure with a greater

specific volume than beta-tin, during the phase change, which is kinetically limited,

nodules of alpha-tin become visible on the surface of beta-tin giving rise to early

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belief of sickness and the first true doctors of metallurgy. Tin is highly crystalline and

during deformation is subject to mechanical twinning and an audible tin cry. Tin is

also quite resistant to corrosion.

Tin is found as vein tin or stream tin. The tin ore is stannic oxide and is generally

found with quartz, feldspar or mica. The ore is a hard , heavy and inert substance

and is generally found as outcroppings as softer impurities are washed away.

f. Mercury

Mercury was also known to the ancients and has been found in tombs dating back to

1500 and 1600 BC. Pliny, the Roman chronicler, outlined purification techniques by

squeezing it through leather and also noted that it was poisonous. Mercury, also

known as quicksilver, is the only metal which is liquid at room temperature.

Although it can be found in its native state, it is more commonly found in such ores

as calomel, livingstonite, corderite and its sulfide cinnabar. Extraction is most simply

carried out by distillation as mercury compounds decompose at moderate

temperatures and volatilize.

Mercury was widely used because of its ability to dissolve silver and gold

(amalgamation) and was the basis of many plating technologies. There is also

indications that it was prized and perhaps worshipped by the Egyptians. In 315 B.C.,

Dioscorides mentions recovery of quicksilver (which he called hydrargyros, liquid

silver) by distillation, stating " An iron bowl containing cinnabar is put into an

earthenware container and sealed with clay. It is then set on a fire and the soot

which sticks to the cover is quicksilver". Methods changed little until the 18th

century. Mercury's symbol is Hg from hydragyrum, liquid silver.

g. Iron

Iron was available to the ancients in small amounts from meteors. This native iron is

easily distinguishable because it contains 6-8% nickel. There is some indication that

man-made iron was available as early as 2500 B.C., however, ironmaking did not

become an everyday process until 1200 BC. Hematite, an oxide of iron, was widely

used by the ancients for beads and ornaments. It is also readily reduced by carbon.

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However, if reduced at temperatures below 700-800 C it is not suitable for forging

and must be produced at temperatures above 1100 C. Wrought iron was the first

form of iron known to man. The product of reaction was a spongy mass of iron

intermixed with slag. This was then reheated and hammered to expel the slag and

then forged into the desired shape. In the early days iron was 5 times more

expensive then gold and its first uses were as ornaments.

Iron weapons revolutionized warfare and iron implements did the same for farming.

Iron and Metal was the building block for civilization. Interestingly, an iron pillar

dating to 400 A.D., remains standing today in Delhi, India. Corrosion to the pillar has

been minimal a skill lost to current ironworkers. Iron is rarely found in its native state

the only known sources being Greenland where the iron occurs as nodules in basalt

that erupted through beds of coal and two very rare nickel-iron alloys. Iron's symbol

is Fe from the latinferrum.

These seven metals: gold, silver, copper, lead, tin, mercury and iron, and the alloys

bronze and electrum were the starting point of metallurgy and even in this simple,

historic account we find some of the basic problems of process metallurgy. The

problems are:

o The ores must be found, separated and sized before use.

o The ores must be reacted under a controlled temperature and gas

atmosphere.

o The liquid metal must be collected and cast into a desired shape.

o The metal must be worked to achieve desired final properties and shape.

Paraguay:

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History

Indians speaking Guaraní—the most common language in Paraguay today, after

Spanish—were the country's first inhabitants. In 1526 and again in 1529, Sebastian

Cabot explored Paraguay when he sailed up the Paraná and Paraguay rivers. From

1608 until their expulsion from the Spanish dominions in 1767, the Jesuits

maintained an extensive establishment in the south and east of Paraguay. In 1811,

Paraguay revolted against Spanish rule and became a nominal republic under two

consuls.

Paraguay was governed by three dictators during the first 60 years of independence.

The third, Francisco López, waged war against Uruguay, Brazil, and Argentina in

1865–1870, a conflict in which half the male population was killed. A new

constitution in 1870, designed to prevent dictatorships and internal strife, failed to

do so, and not until 1912 did a period of comparative economic and political stability

begin. The Chaco War (1932–1935) with Bolivia won Paraguay more western

territory.

After World War II, politics became particularly unstable. Alfredo Stroessner was

dictator from 1954 until 1989, during which he was accused of the torture and

murder of thousands of political opponents. Despite Paraguay's human rights record,

the U.S. continuously supported Stroessner.

Stroessner was overthrown by army leader Gen. Andres Rodriguez in 1989.

Rodriguez went on to win Paraguay's first multicandidate election in decades.

Paraguay's new constitution went into effect in 1992. In 1993, Juan Carlos Wasmosy,

a wealthy businessman and the candidate of the governing Colorado Party, won a

five-year term in free elections.

Raúl Cubas Grau was elected president in May 1998. In 1999, Cubas was forced from

office for his alleged involvement in the assassination of Vice President Luis María

Argaña. The vice president had criticized Cubas for refusing to jail his mentor, Gen.

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Lino Oviedo, who had been convicted of leading a failed 1996 coup against

Wasmosy. Oviedo was finally arrested in 2004 and jailed.

Luis Ángel González Macchi, appointed caretaker president after Cubas stepped

down, was accused of mishandling $16 million in state funds, and in 2006 he was

sentenced to six years in prison. Former journalist Nicanor Duarte Frutos became

president on Aug. 15, 2003. He has pledged to clean up the pervasive corruption in

his nearly bankrupt country. Paraguay has been in a protracted recession since the

late 1990s.

On April 22, 2008, Fernando Lugo, a former Roman Catholic Bishop, was elected

president of Paraguay beating the Colorado Party's candidate, Blanca Ovelar de

Duarte, by 10 percentage points. Lugo's victory ended the Colorado Party's 61 years

in power—a system of bureaucracy and patronage founded in 1887. Fernando Lugo

was sworn in as president on Aug. 15, 2008.

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Economy Of Paraguay

Paraguay has a market economy characterized by a large informal sector. Agriculture

dominates the economy, but unequal land distribution has resulted in a large class

of peasant farm laborers. A large portion of the population is uninvolved in the

formal economy, instead existing as subsistence farmers. In recent years, the

economy has grown as a result of increased agricultural exports, especially soybeans.

Reforms in fiscal and monetary policy also have improved Paraguay’s

economy. Inflation has dropped, and the currency has appreciated gradually.

Nevertheless, urban unemployment and underemployment have been problems

throughout Paraguay’s history. Paraguay has the economic advantages of a young

population and vast hydroelectric power but has few very bad mineral resources,

and political instability has undercut some of the economic advantages present. The

government welcomes foreign investment.[6] Paraguay is a middle-income country

that changed rapidly in the 1970s and 1980s as a result of hydroelectric

development, agricultural colonization, construction, and cash crop exports.

Nevertheless, the country's gross domestic product (GDP) in 1986 was approximately

US$3.4 billion, or roughly US$1,000 per capita, ranking Paraguay only ahead

of Bolivia among the Spanish-speaking countries of South America. Paraguay was the

most agricultural economy of South America, and that sector influenced the

performance of virtually every other sector of the economy.

Traditionally isolated and under populated, Paraguay was one of the last countries in

Latin America to enjoy the region's rapid growth in the post-World War II period.

Paraguay entered a phase of sustained economic growth in the late 1950s. Its

economy grew at the fastest pace of all the Latin American countries during most of

the 1970s as the Paraguayan-Brazilian project, the Itaipu Dam, the world's largest

hydroelectric plant, was constructed. During that decade, cotton and soybeans came

to dominate agriculture, mostly as a result of high export prices and agricultural

colonization. Paraguay's economy also was characterized by a large underground

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sector, in which smuggling and contraband had become normal features by the

1970s.

The Paraguayan economic miracle of the 1970s came to a halt in 1982 because of

the completion of construction at Itaipú, lower commodity prices for cotton and

soybeans, and world recession. The economy recovered in 1984 and

1985, stagnated in 1986, and continued to expand in 1987 and 1988. Despite its

rapid growth, the Paraguayan economy became increasingly dependent on soybeans

and cotton for exports and overall economic dynamism. These two crops, however,

remained subject to external price fluctuations and local weather conditions, both of

which varied considerably.

Economic growth in the post-World War II period occurred in the context of political

stability characterized by authoritarian rule and patronage politics. Government

economic policies deviated little from 1954 to the late 1980s, consistently favoring a

strong private-enterprise economy with a large role for foreign investment. Unlike

most Latin American economies, in Paraguay import tariffs were generally low, fiscal

deficits manageable, and exchange rates not overvalued. These trends faltered in the

1980s as the government took a more active part in industry, deficits rose, and the

national currency was generally overvalued and devalued numerous times.

Throughout the post-World War II era, Paraguay had no personal income tax, and

government revenues as a percentage of GDP were among the lowest in the world.

Despite the sustained economic growth that marked the post war period, the

distribution of economic benefits was highly inequitable. Although GDP expanded

rapidly in the 1970s, most economists estimated that income distribution worsened

during the decade. Government spending on social services was particularly lacking.

Paraguay's poverty was mostly a rural phenomenon, which increasingly involved

competition for land in the eastern region near the Brazilian border, especially in the

departments (administrative divisions) of Alto Paraná, Can endiyú, and Caaguazú.

Nonetheless, land tenure was not generally the acute social problem it was in many

developing countries.

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Although Paraguay faced significant obstacles to future economic development, it

displayed extraordinary potential. Paraguay contained little oil and no precious

metals or sea coasts, but the country was self-sufficient in many areas and was

endowed with fertile land, dense forests, and swift rivers. The process of opening up

the eastern border region to economic activity and continued agricultural expansion

was expected to effect rapid changes in once-isolated Paraguay. Likewise, the

development of a series of hydroelectric plants along the Río Paraná linked Paraguay

to its neigh bors and provided it access to cherished energy resources and badly

needed export revenues. Finally, road construction united different departments of

Paraguay and provided the country its first access to the Atlantic Ocean via Brazil.

These processes of infrastructure development, hydroelectric expansion, agricultural

colonization, and a cash crop explosion allowed Paraguay by the late 1980s to begin

to tap its potential.

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METAL INDUSTRY IN PARAGUAY

The Mineral Industry

The mineral industry Paraguay includes the production of cement, iron and steel,

and petroleum derivatives. Paraguay has no known natural gas or oil reserves. To

meet its crude oil and petroleum products demand, Paraguay relies completely on

imports of approximately 25,400 barrels per day (4,040 m3/d) (bbl/d) (2006 est.). The

mining sector contributes little to the country’s economy, accounting for only 0.1%

of its gross domestic production (GDP).

Paraguay’s tax exemptions on imports of equipment for natural gas and petroleum

exploration, development, and production are expected to continue in the medium

and long terms. Cement, natural gas, and petroleum investors have shown interest

in the country, which could support continued economic growth and foreign direct

investment (FDI) in new technologies well into the next decade.

Columbia Metal Casting Co., Inc.

Founded in 1901, Columbia Metal is a worldwide leading manufacturer of Metal

alloy and iron alloy impact, wear and heat resistant replacement parts for basic

industry. Industries served include: aggregate, hard rock mining, dragline mining,

metal recycling (shredding), cement manufacturing, coal-fired power, and more.

Columbia Metal employees work closely with customers to provide optimized parts

through improved designs and superior materials. Columbia Metal manufactures

parts in a broad variety of wear and heat resistant alloys, fully heat treated and

machined to the most exacting specifications. Every step from engineering and

pattern making to casting, machining, heat treating and quality assurance all take

place in one integrated manufacturing facility. All parts are made at Columbia

Metal`s 86-acre Portland, Oregon USA facility.

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Trade and Commerce in Paraguay

a. Background

Paraguay achieved its independence from Spain in 1811. In the disastrous War of the

Triple Alliance (1865-70) - between Paraguay and Argentina, Brazil, and Uruguay -

Paraguay lost two-thirds of its adult males and much of its territory. The country

stagnated economically for the next half century. Following the Chaco War of 1932-

35 with Bolivia, Paraguay gained a large part of the Chaco lowland region. The 35-

year military dictatorship of Alfredo STROESSNER ended in 1989, and, despite a

marked increase in political infighting in recent years, Paraguay has held relatively

free and regular presidential elections since the country's return to democracy.

b. System of government

Paraguay is a constitutional republic headed by a directly elected president, with a

bicameral legislature. Paraguay's National Constitution, enacted in 1992, radically

decentralised and democratised the country's system of government, establishing a

clear division of executive, legislative and judicial responsibilities, and vastly

improved protection of civil rights. The executive branch is headed by the President,

elected by popular vote for a five-year term, who appoints a Cabinet of ministers.

The legislative branch consists of a bicameral Congress, with an 80-member

Chamber of Deputies and a 45-member Senate. Members of both houses of

Congress are popularly elected for a five-year term under a system of proportional

representation, based on local electoral districts ("departments") for the Chamber of

Deputies and on nationwide results for the Senate.

c. Recent developments

On 15 August 2008, the successful leftist candidate (and former Catholic priest)

Fernando Lugo was sworn in as President of Paraguay. Prior to President Lugo's

appointment, Paraguay had been ruled by the Colorado party for 61 years, of which

15 years were democratic. Following his impeachment by the Paraguayan Congress

in June 2012, Lugo was replaced by Vice-President Federico Franco. Lugo's removal

was condemned by neighbouring states. Paraguay was subsequently suspended by

regional organisations Mercosur and Unasur. Colorado Party candidate

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HoracioCartes won the April 2013 presidential elections with approximately 46 per

cent of the vote, compared with 40 per cent for the runner up, EfraínAlegre of the

centrist Partido Liberal Radical Autentico (PLRA). President-elect Cartes will be

inaugurated on 15 August 2013. The election paves the way for Paraguay’s possible

return to Mercosur and Unasur.

d. International relations

Paraguay's most important political and economic partners are its immediate

neighbours and fellow members of Mercosur, Argentina and Brazil. Mercosur, the

Southern Cone Common Market, is comprised of Argentina, Brazil, Paraguay,

Uruguay and Venezuela as well as associate members Chile, Colombia, Ecuador,

Guyana, Peru and Suriname. Mexico is an Observer and Bolivia is in the process of

becoming a full member. Membership provides Paraguay, a landlocked country, with

preferential trade access to the markets of Mercosur members and associates.

Paraguay is also a member of several regional organisations, including the Union of

South American Nations (UNASUR), the Community of Latin American and Caribbean

States (CELAC) and the Organization of American States (OAS), which seek to

advance a variety of regional political and economic interests. In June 2013,

Paraguay became an observer to the Pacific Alliance.

Paraguay and the US maintain close ties through areas of mutual interest, including

efforts to combat the trafficking of people and drugs, engagement on sustainable

development and through economic ties. An increasing number of US multinational

companies have established a presence in Paraguay.

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e. Economic Outlook

Landlocked Paraguay has a market economy distinguished by a large informal sector,

eaturing re-export of imported consumer goods to neighbouring countries, as well as

the activities of thousands of microenterprises and urban street vendors. A large

percentage of the population, especially in rural areas, derives its living from

agricultural activity, often on a subsistence basis. Because of the importance of the

informal sector, accurate economic measures are difficult to obtain. On a per capita

basis, real income has stagnated at 1980 levels. The economy grew rapidly between

2003 and 2008 as growing world demand for commodities combined with high

prices and favourable weather to support Paraguay's commodity-based export

expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in

2008, reducing agricultural exports and slowing the economy even before the onset

of the global recession. The economy fell 3.8% in 2009, as lower world demand and

commodity prices caused exports to contract. The government reacted by

introducing fiscal and monetary stimulus packages. Growth resumed at a 13% level

in 2010, the highest in South America, but slowed to about 4% in 2011 as the

stimulus subsided. In 2012, severe drought and outbreaks of foot-and-mouth disease

led to a drop in beef and other agricultural exports and the economy contracted

about 0.5%. Political uncertainty, corruption, limited progress on structural reform,

and deficient infrastructure are the main obstacles to long-term growth.

Paraguay is predominantly an agricultural economy. The country's main export is

soybeans (Paraguay is the world’s 4th largest exporter), which makes it highly

susceptible to climate and world price changes. Paraguay's other main exports

include electricity (from the Itaipú dam) cereals, beef, timber, leather and apparel.

Paraguay's economic outlook is strongly influenced by the economic performance of

its neighbours, particularly Brazil and Argentina. Paraguay, together with Brazil, runs

one of the largest hydroelectric facilities in the world, located in the Paraná River,

the border between Brazil and Paraguay. Hydroelectricity exports are a major

income source for Paraguay.

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China and Brazil are Paraguay’s largest trading partners. In 2012, Brazil was

Paraguay’s principal export destination (39.2 per cent) and China was Paraguay’s

main source of imports (27.6 per cent).

Paraguay's real GDP growth rates have varied widely in recent years, from growth of

6.4 per cent in 2008 to minus 4.0 per cent in 2009, a rebound to 13 per cent in 2010,

4.3 per cent in 2011 and minus 1.2 per cent in 2012. The robust performance of

Paraguay's agricultural sector in 2010, as well as strong performances in construction

and manufacturing drove a positive rebound from the recession in 2009. The

banking system also weathered the recession relatively well. However, there was an

unexpected fall in export volumes in 2011, due to a prolonged drought, a decrease in

construction (owing to cement shortages), difficulties in exporting meat (owing to an

outbreak of foot and mouth disease), and a weaker global economy. A record

harvest in 2013 is expected to provide real GDP growth of 11 per cent for the year.

Foreign direct investment in Paraguay has increased substantially in recent years,

resulting from investments by multinational firms in Paraguay and secondary effects

from capital flows into the region.

Table No: 1

Table Name: Economic analysis of Paraguay

GDP (purchasing power parity) $41.55 billion (2012 est.) $42.05 billion (2011 est.) $40.3 billion (2010 est.) note: data are in 2012 US dollars

GDP (official exchange rate) $26 billion (2012 est.)GDP - real growth rate -1.2% (2012 est.)

4.3% (2011 est.) 13.1% (2010 est.)

GDP - per capita (PPP) $6,200 (2012 est.) $6,400 (2011 est.) $6,300 (2010 est.) note: data are in 2012 US dollars

GDP - composition, by end use Household consumption: 72.8% government consumption: 12.2% investment in fixed capital: 14.6% investment in inventories: 0.3% exports of goods and services: 46.8%

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imports of goods and services: -46.7% (2012 est.)

GDP - composition by sector agriculture: 15.9% industry: 17.3% services: 66.8% (2012 est.)

Population below poverty line 34.7% (2010 est.)Labor force 3.137 million (2012 est.)Labor force - by occupation agriculture: 26.5%

industry: 18.5% services: 55% (2008)

Unemployment rate 6.9% (2012 est.) 6.6% (2011 est.)

Unemployment, youth ages 15-24 total: 17.8% male: 9.7% female: 13% (2011)

Household income or consumption by percentage share

lowest 10%: 1% highest 10%: 41.1% (2010 est.)

Distribution of family income - Gini index

53.2 (2009) 57.7 (1998)

Investment (gross fixed) 14.6% of GDP (2012 est.)Budget revenues: $4.665 billion

expenditures: $5.109 billion (2012 est.)Taxes and other revenues 17.9% of GDP (2012 est.)Budget surplus (+) or deficit (-) -1.7% of GDP (2012 est.)Public debt 14.1% of GDP (2012 est.)

12.37% of GDP (2011 est.)Inflation rate (consumer prices) 3.7% (2012 est.)

8.3% (2011 est.)Central bank discount rate 5.5% (31 December 2012 est.)

6% (31 December 2011 est.)Commercial bank prime lending rate

29.1% (31 December 2012 est.) 28.94% (31 December 2011 est.)

Agriculture - products cotton, sugarcane, soybeans, corn, wheat, tobacco, cassava (tapioca), fruits, vegetables; beef, pork, eggs, milk; timber

Industries sugar, cement, textiles, beverages, wood products, steel, metallurgic, electric power

Industrial production growth rate 4.4% (2012 est.)Current Account Balance -$1.17 billion (2012 est.)

-$549.9 million (2011 est.)Exports $9.743 billion (2012 est.)

$10.39 billion (2011 est.)Exports - commodities soybeans, feed, cotton, meat, edible oils,

wood, leatherExports - partners Uruguay 18.3%, Argentina 16.3%, Brazil

16.2%, Russia 11.8% (2012)

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Imports $11.24 billion (2012 est.) $12.07 billion (2011 est.)

Imports - commodities road vehicles, consumer goods, tobacco, petroleum products, electrical machinery, tractors, chemicals, vehicle parts

Imports - partners Brazil 24.1%, China 19.4%, Argentina 19.2%, US 11.4% (2012)

Reserves of foreign exchange and gold

$4.995 billion (31 December 2012 est.) $4.983 billion (31 December 2011 est.)

Debt - external $5.957 billion (31 December 2012 est.) $6.013 billion (31 December 2011 est.)

Stock of direct foreign investment - at home

$4.425 million (31 December 2012) $3.86 million (31 December 2011)

Stock of direct foreign investment - abroad

$NA

Exchange rates guarani (PYG) per US dollar - 4,424.9 (2012 est.) 4,191.4 (2011 est.) 4,735.5 (2010 est.) 4,965.4 (2009) 4,337.7 (2008)

Fiscal year calendar year

f. Paraguay - Balance of TradeParaguay recorded a trade deficit of 261.67 USD Million in November of 2013. Balance

of Trade in Paraguay is reported by the Banco Central del Paraguay. Balance of Trade in

Paraguay averaged -191.24 USD Million from 1994 until 2013, reaching an all-time high

of 91.21 USD Million in June of 2013 and a record low of -635.35 USD Million in October

of 2011. In recent years, the exports of agricultural commodities have surged in

Paraguay. Shipments of cereals, soy and meat account for 66 percent of total exports.

Main imports are: machinery, appliances and motors (27 percent of total imports); fuels

and lubricants (13 percent) and cargo vehicles and accessories (8 percent). Main trading

partners are: Brazil (14 percent of total exports and 27 percent of imports) and

Argentina (18 percent of exports and 14 percent of imports). Others include: Uruguay,

China and United States.

23

Chart No: 1

Chart Name: Paraguay Balance of Trade

g. Paraguay Current Account to GDP

Paraguay recorded a Current Account surplus of 0.20 percent of the country's Gross

Domestic Product in 2012. Current Account to GDP in Paraguay is reported by the

Banco Central del Paraguay. From 1980 until 2012, Paraguay Current Account to GDP

averaged -1.9 Percent reaching an all-time high of 7.8 Percent in December of 1990

and a record low of -11.6 Percent in December of 1987. The Current account balance

as a percent of GDP provides an indication on the level of international

competitiveness of a country. Usually, countries recording a strong current account

surplus have an economy heavily dependent on exports revenues, with high savings

ratings but weak domestic demand. On the other hand, countries recording a

current account deficit have strong imports, a low saving rates and high personal

consumption rates as a percentage of disposable incomes.

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Chart No: 2

Chart Name: Paraguay Current Account to GDP

h. Paraguay Exports

Exports in Paraguay increased to 660.76 USD Million in November of 2013 from 658.11

USD Million in October of 2013. Exports in Paraguay are reported by the Banco Central

del Paraguay. Exports in Paraguay averaged 206.26 USD Million from 1994 until 2013,

reaching an all-time high of 976.22 USD Million in May of 2013 and a record low of 25.29

USD Million in February of 1999. Paraguay has an export oriented economy. Soy

accounts for 42 percent of total shipments and in recent years, the country has become

the fourth largest exporter and the sixth biggest producer of soybeans. Other exports

include: meat (13 percent), cereals (11 percent) and vegetable oils (6 percent). Main

export partners are: Uruguay (19 percent of total exports), Argentina (18 percent), Brazil

(14 percent) and Chile (9 percent). Others include: Switzerland, United States and

Canada.

25

Chart No: 3

Chart Name: Paraguay Exports

i. Paraguay ImportsImports in Paraguay decreased to 922.43 USD Million in November of 2013 from

991.43 USD Million in October of 2013. Imports in Paraguay are reported by the

Banco Central del Paraguay. Imports in Paraguay averaged 397.17 USD Million from

1994 until 2013, reaching an all-time high of 1095.48 USD Million in August of 2011

and a record low of 104.17 USD Million in February of 2003. Paraguay main imports

are: machinery, appliances and motors (27 percent of total imports); fuels and

lubricants (13 percent); cargo vehicles and accessories (8 percent) and food,

beverages and tobacco (7 percent). Main import partners are: China (30 percent of

total imports), Brazil (27 percent) and Argentina (14 percent). Others include: United

States, Japan, Venezuela, South Korea and Germany.

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Chart No: 4

Chart Name: Paraguay Imports

j. Paraguay RemittancesRemittances in Paraguay increased to 804 in December of 2012 from 789 in

December of 2011. From 2004 until 2012, Paraguay Remittances averaged 679.2 USD

Million reaching an all-time high of 804.0 USD Million in December of 2012 and a

record low of 506.0 USD Million in December of 2004.

Chart No: 5

Chart Name: Paraguay Remittances

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Metal Industry in India

The Government of India has introduced several policy initiatives to

give a boost to the metals sector:

Foreign equity holding allowed up to 100 per cent through automatic route for all

non-fuel, non-atomic minerals except diamond and precious stones.

Thirteen minerals that were reserved for the public sector have been opened out for

private sector investment. These include iron ore, manganese ore, chrome ore,

sulphur, gold, diamond, copper, lead, zinc, molybdenum, tungsten, nickel and

platinum.

Customs duty on primary and secondary metals has been reduced from 15 per cent

to 10 per cent.

The National Steel Policy (NSP) 2005 lays emphasis on improving productivity,

efficiency, cost, quality and product mix for accelerating growth in the domestic

production and consumption of steel.

Import duties on various steel products have been reduced from 15 per cent to10

per cent. Customs duty on alloy and stainless steel has been reduced to five per cent.

Duty on nickel reduced from five per cent to two per cent to help domestic stainless

steel manufacturers tackle increase in global prices for raw materials.

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The Metals Sector In Quite Competitive, But Presents Attractive Growth Opportunities As Well

Threat of New Entrants Supportive policy regime Growing domestic market as well as exports across segments

Customer Power User industries experiencing strong growth Highly demanding customers Wide range of products, specifications to meet different needs

Supplier Power The country has rich reserves of minerals, ores Growing, skilled manpower base

Competitive Rivalry Number of domestic players Highly competitive in secondary and downstream segments

Threat of Substitutes Plastics and other substitutes being tried out in some user segments No viable substitute in a majority of usage areas HighMediumLowMETALS INDUSTRY IN INDIA September 2009

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Many Indian Players Are Looking At Expanding Capacities…

Sterlite and Hindalco (Birla Copper, the copper division of Hindalco) are looking at

adding significant smelting capacities in the coming years. Birla Copper‘s expansion

plan to double capacity from 250000 tonnes per annum (TPA) to 500000 TPA will

make it one of the top 10 copper producers in the world.

Sterlite Industries has made a higher $2.57B bid for Asarco, topping rival Grupo

Mexico's offer.

Tata Steel, through its acquisition of Corus, became the fifth largest steel maker in

the world.

Essar Steel will invest US $ 213 million in setting up steel processing units in India,

the Middle East and North America.

Hindalco Industries, an integrated producer of aluminum and a leading copper

manufacturer, has drawn up a US $ 3.4 billion capex plan for the next two years.

Tata Steel plans to invest US $ 8.5 billion over the next five years to ramp up its

production capacity to 16 million tonnes.

Attractive states for investment

Raw material supplies for key metals is concentrated in some states:

Copper reserves –Bihar, Rajasthan, Madhya Pradesh

Bauxite –Orissa, Chattisgarh, Karnataka

Iron Ore –Orissa

Access to supply of raw materials, labour and energy are key requirements for

setting up operations in this sector.

Based on these factors, Orissa, Chattisgarh, Madhya Pradesh, Andhra Pradesh and

Karnataka could be attractive locations for investment in the sector.

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Profile of key playersTable No: 2

Tata Iron and Steel Company Limited (TISCO) •TISCO has diversified to manufacture welded-steel tubes, cold-rolled

strips, seamless tubes, carbon and alloy steel bearing rings, alloy steel ball bearing rings, bearings, ferromanganese and ferrochrome.•It has become the fifth largest steel producer in the world, after acquiring the Anglo-Dutch steel company, Corus.•It has plants in the states of Jharkhand, Karnataka, Orissa, West Bengal and Maharashtra.

Steel Authority of India Limited (SAIL) •The Government of India has an 86per cent stake in the company and

it is the world‘s 13th largest producer of steel.•Sales –US$ 11 billion in 2007-08•Manufactures steel for domestic construction, engineering, power, railway, automotive and defenceindustries and also for exports.•It has plants at Bhilai, Bokaro, Durgapur, Rourkela, Salem, and Bhadravati.

EssarSteel•It is promoted by the Bombay-based Essargroup which has business interests in power, shipping, oil and gas, construction and telecom.•Sales –US$ 2.9 billion in 2007-08•Offers over 300 customisedgrades of steel and is on the approved list of companies as supplier to some of the world's most renowned automotive companies and oil and gas pipeline projects.•It has plants at Haziraand Vishakapatnamin India and at Indonesia.

JindalSteel & Power Limited•It is a leading company for galvanisedsteel products•Sales –US$ 2.1 billion in 2008-09•It is engaged in hot rolling, cold rolling and galvanizing business•It has plants at Vasindand Tarapurin Maharashtra

Hindustan Copper Limited (HCL) •It is a public sector enterprise under the Ministry of Mines,

Government of India •Sales –US$ 297 million in 2008-09•The company's major activities include exploration, mining beneficiation, smelting, refining and casting of finished copper.•It has plants at Khetri in Rajasthan, Jharkhand, Malanjkhand in Madhya Pradesh and Taloj in Maharashtra.

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HindalcoIndustries Limited•It is a flagship company of the AdityaBirla Group.•Turnover –US$ 4.8 billion in 2006-07•Structured into two strategic businesses —aluminiumand copper—and is an industry leader in both these segments.•It is the largest integrated aluminiummanufacturer in the country.•It has plants in Renukoot, Muri, Belgaum, Hirakud, Alupuram, Belur, Taloja, Silvassa, Kalwaand Dahej.

National AluminiumCompany Limited (NALCO)

•It is a public sector enterprise of the Government of India.

•Net sales –US$ 1.4 billion in 2007-08 •It has Asia's largest integrated aluminiumcomplex, encompassing bauxite mining, alumina refining, aluminiumsmelting and casting, power generation, rail and port operations.•It has captive power plant and aluminiumsmelter and a rolled products unit at Angul, alumina refinery at Damanjodiand Bauxite mines at Panchpatmali.

SterliteIndustries India Limited •It is a part of Vedanta Resources, a London listed metals and mining

major with aluminium, copper and zinc operations in UK, India and Australia. •Net sales-US$ 4.2 billion in 2008-09•The group's principal activity is to manufacture and market cast copper rods, copper cathodes, aluminiumcold rolled products and conductors.•It is a producer of copper with its own captive mines in Australia, and refineries and smelter in India such as the Silvassarefinery and the Tuticorinsmelter .

Hindustan Zinc Limited•A part of Vedanta resources,the London listed metals and mining major with aluminium, copper and zinc operations in UK, India and Australia .•Net sales –US$ 1100 million in 2008•It is the only manufacturer of integrated zinc in India and owns captive zinc mines that supply complete requirement of zinc concentrate for its smelters.•Its mines and smelters are spread across many locations, for example the RajpuraDaribamine, Zawarmining complex, Chanderiyasmelter, Debarismelter, Vizagsmelter and the RampuraAguchamine.

India and Paraguay Relation.

Political

The bilateral relations between India and Paraguay were established in 1950.

The relations can be described as warm and friendly. The Indian Embassy in Buenos

Aires, Argentina, is concurrently accredited to Paraguay. Paraguay opened its

32

resident Mission in India in March 2006.

Recent Visits

Paraguay to India

2002 Mr. Jose Antonio Moreno Ruffinelli, Foreign Minister

2004 Mrs. Leila Rachid, Foreign Minister

2005 Mrs. Leila Rachid, Foreign Minister

2010 (April) Parliamentary delegation

India to Paraguay

2002 Shri Digvijay Singh, MOS, MEA

2003 Shri Satyabrata Mookherjee, MOS (C&I)

2012 (January) Smt. Meira Kumar, Speaker Lok Sabha

Parliamentary contacts

The first ever- Parliamentary delegation from Paraguay visited India from 10-14

April 2010. The 8 member delegation was led by Mr. Miguel Carrizosa, President of

the Senate (Upper House). The delegation met Hon'ble Speaker and Indian

Parliamentarians and called on MOS (PK). Hon’ble Speaker Lok Sabha Smt. Meira

Kumar led a parliamentary delegation to Paraguay from 15-17 January 2012.

Foreign Office Consultations

An MOU on Foreign Office Consultations was signed in 2002. The first bilateral

Foreign Office Consultation between India and Paraguay was held in Asuncion on 7 th

October, 2010. Shri Vivek Katju, Secretary (West) co-chaired the talks along with Mr.

Jorge Lara Castro Vice-Foreign Minister of Paraguay. Both sides reviewed bilateral

relations.

33

Bilateral Agreements

Agreement between India and Paraguay on Exemption of Visa for holders of

Diplomatic and Official passports – 1996.

Agreement on holding Foreign Office Consultations - 2002

Bilateral Trade (US$ in million)

Year 2004 2005 2006 2007 2008 2009 2010 2011

India’s

exports16.83 20.90 24.6 36 59 50.6 65 78

India’s

imports3.47 4.26 2.4 5 38 56.3 72 74

India´s exports to Paraguay:

Chemicals, Metals, tractors, two wheelers, Mahindra vehicles and textiles.

India's imports from Paraguay:

Soya oil (94% of imports) sunflower oil, leather and wood. Indian imports of soya and

sunflower oil are expected to increase in the coming years, given the growing

shortage of edible oil in India.

Business

TATA vehicles (light trucks, pick-ups, TATA Sierra vans) have been introduced in the

Paraguayan market by a local company.

Mahindra and the Indian two-wheeler company, HERO Motors have appointed

distributors in Paraguay.

A consortium of Indian edible oil companies is exploring the possibility of acquisition

of farm land in Paraguay to grow oilseeds and food crops.

34

An Indian IT Company, Flat world Solutions, in collaboration with a local company,

runs a call centre employing around 1300 Paraguayans.

Technical Cooperation

India gives 3 ITEC scholarships to Paraguayan candidates every year.

Paraguayan diplomats attend the PCFD Course run by the Foreign Service Institute

from time to time.

Cultural

The First ever “ Festival of India” in Paraguay was organised by the Indian Embassy in

Argentina, concurrently accreditted to Paraguay from 11-15 November 2009 in two

cities: Ciudad del Este and Asuncion. The Festival which was inaugurated by the

Tourism minister of Paraguay Ms Rosana Cramer Campos. The Third Festival of India

in Asuncion was held from 11-12 Nov 2010. Oddisi and Folk Dance by Goan Dance

group performed in Paraguay.

Indian community

About 300 Indians live in Ciudad del Este, a city on the border with Brazil.

These Indians are in trading, wholesale and retail business. Most of them are of

Sindhi and Gujarati origin.

STEEPLED ANALYSIS OF METAL INDUSTRY IN THE PARAGUAY

Social Analysis

The value for Income share held by second 20% in Paraguay was 7.76 as of 2010. The

value for Income share held by third 20% in Paraguay was 12.77 as of 2010. The

value for Income share held by fourth 20% in Paraguay was 19.78 as of 2010. The

35

value for Income share held by highest 20% in Paraguay was 56.43 as of 2010. The

value for Income share held by highest 10% in Paraguay was 41.11 as of 2010.The

value for Income share held by lowest 10% in Paraguay was 0.98 as of 2010.

According to the 2010 revison of the World Population Prospects the total

population was 6,455,000 in 2010, compared to only 1,473,000 in 1950. The

proportion of children below the age of 15 in 2010 was 33.5%, 61.4% was between

15 and 65 years of age, while 5.1% was 65 years or older.

Social life tends to revolve around the family. Godparents are particularly important;

if parents become unable to provide for their children, godparents are expected to

assume responsibility for them. Paraguayan cuisine reflects traditional Guaraní

cooking styles. Beef dishes and freshwater river fish are popular. Other typical foods

are soups, often with meat, and various breads, especially chipa, which is flavoured

with cheese and egg. Corn (maize) is a staple ingredient in many dishes, including

sopa paraguaya, a pie made from corn, eggs, and milk; avatí mbaipy, a corn soup;

and mbaipy he-é, a dessert made from corn, milk, and molasses. Beer and caña, a

cane sugar spirit, are popular drinks. Yerba maté, the local herbal tea, is consumed

year-round—chilled in summer, hot in winter. A common pastime is drinking tereré

(a bitter tea made from the same type of leaves that are used to brew yerba maté)

from a shared gourd or from a hollowed cow’s horn, or guampa, which often is

beautifully carved.

The Labor force; total in Paraguay was last reported at 3088802.88 in 2010,

according to a World Bank report published in 2012. Total labor force comprises

people ages 15 and older who meet the International Labor Organization definition

of the economically active population: all people who supply labor for the

production of goods and services during a specified period. It includes both the

employed and the unemployed. While national practices vary in the treatment of

such groups as the armed forces and seasonal or part-time workers, in general the

labor force includes the armed forces, the unemployed, and first-time job-seekers,

but excludes homemakers and other unpaid caregivers and workers in the informal

36

sector. This page includes a historical data chart, news and forecasts for Labor force;

total in Paraguay.

U.S. Embassy Asuncion, Paraguay is an equal opportunity employer.

All applicants will receive consideration without regard to race, color, religion,

gender, national origin, disability, age, sexual orientation, social status, or political

ideologies/affiliation.

Paraguay is a developing country and one of the poorest in Latin America. It has

been reported that around 60 % of Paraguayans live in poverty. Over half of the

population are under the age of 25. It has been reported by the United Nations that

over 70 % of people aged 15-29 are unemployed in Paraguay. However many of the

young in Paraguay are eager to change their future but lack the education, guidance

and financial resources to do so. Entrepreneurship is one way to help transform

Paraguay. As Paraguay lacks natural resources, it’s people is its biggest resource.

‘Jovenes Empresarios del Paraguay’ (The Youth Entrepreneurs of Paraguay) have

introduced programs over the previous two years to boost entrepreneurship. It has

been proven over the last years by more than 10 start-ups were made feasible ,

including an organic lettuce growing business, a brick factory, and a clothing store.

All have filled a niche in their markets, created jobs and even improved local

infrastructure.

Paraguay has not valued education highly. During Alfredo Stroessner Mattiauda’s

presidency (1954–89), education initiatives took a backseat to economic concerns and

the task of controlling political adversaries, and teacher salaries fell to extremely low

levels. The constitution of 1992 attempted to remedy the long neglect of education.

Article 85 of the constitution mandates that 20% of the government dibudget be

designated for educational expenditures. This measure, however, has proven to be

impractical and has been largely ignored.

37

Paraguay culture is highly influenced by various European countries, particularly

Spain, which are combined with indigenous culture.

This cultural blend is seen in Paraguay's forms of arts, crafts, music, festivals,

literature, cinema, fashion, languages.

As a Peace Corps Volunteers, you will have to adapt to conditions that may be

dramatically different than you have ever experienced and modify lifestyle practices

that you now take for granted. Even the most basic practices— talking, eating, using

the bathroom, and sleeping — may take significantly different forms in the context

of the host country. If you successfully adapt and integrate, you will in return be

rewarded with a deep understanding of a new culture, the establishment of new and

potentially lifelong relationships, and a profound sense of humanity.

Technology Analysis

Paraguay (104th), Venezuela (108th), Bolivia (119th), and Haiti (141st) close the

regional rankings. These four countries fall behind others in the region because of

important ICT connectivity weaknesses and an innovation-adverse environment that

38

prevents high economic impacts that would result from innovation and the

economic transformation of these countries toward knowledge-intensive activities.

Paraguay 2013 Conectado y Plan Nacional de Telecomunicaciones—PNT

Paraguay is ideally positioned to become the next global boom economy. Built upon

an incredibly stable macro economy and conservative fiscal policies, Paraguay’s new

Government and Business Leaders are in unison with regard to opening up the

country's wealth of opportunities to foreign investors. Utilizing strong government

incentives and structures developed to promote PPP’s, Direct Investments and Local

Partnerships in a manner that will promote a sustainable, transparent economy that

will benefit all Paraguayan's, foreign investors have opportunities rarely present in

Emerging Markets.

The Inter-American Development Bank (IDB) approved a loan to Paraguay for $10

million to finance a program aimed at increasing foreign direct investment and job

creation.

Paraguay relies almost solely on hydroelectric power to meet its energy needs. The

Itaipú Dam, completed in 1984, has the world’s second largest power-generating

capacity: 13.3 gigawatts. The dam is located on the Paraguay River, and Paraguay

and Brazil evenly share the ownership, operation, and electricity generated.

Additionally, Paraguay co-owns another major hydropower plant, Yacyretá, with

Argentina. Paraguay uses only a small portion of the energy it generates through

Itaipú and Yacyretá. In 2002 Paraguay generated more than 48 billion kilowatt-hours

of energy. It consumed only 2.5 billion kilowatt-hours while exporting 45.9 billion

kilowatt-hours. Paraguay will have even more hydroelectricity to export when

planned new turbines are installed at Itaipú and the Yacyretá dam is fully completed.[6] In 2007 electricity production rose to 70 TWh, and exports reached 64 TWh which

put Paraguay in second place worldwide as an exporter of electrical power.

39

Budde Comm’s yearly update of Paraguay - Telecoms, Mobile, Broadband, and

Forecasts provides a comprehensive overview of the trends and developments in the

telecommunications market of Paraguay, including the regulator’s market data for

the first half of 2012, operator and other industry data, and expected market

developments in the coming years.

40

Economy Analysis

The Gross Domestic Product (GDP) in Paraguay expanded 1.40 percent in the third

quarter of 2013 over the previous quarter. GDP Growth Rate in Paraguay is reported

by the Banco Central del Paraguay. GDP Growth Rate in Paraguay averaged 1.32

Percent from 2008 until 2013, reaching an all time high of 9.70 Percent in the first

quarter of 2013 and a record low of -5.10 Percent in the first quarter of 2012. In the

last decade, Paraguay has been one of the fastest growing economies in Latin

America. From 2008 to 2012, the country has been expanding at an average rate of

0.93 percent on a quarter over quarter basis, mostly due to a rise in exports of

agricultural commodities. Shipments of soy, cereals and meat account for more than

65 percent of total exports and for almost a quarter of the output. Yet, high poverty,

inequality rates and corruption, remain the biggest challenges that the country has

to face in order to reach its growth potential. This page contains - Paraguay GDP

Growth Rate - actual values, historical data, forecast, chart, statistics, economic

calendar and news.

The benchmark interest rate in Paraguay was last recorded at 6 percent. Interest

Rate in Paraguay is reported by the Banco Central del Paraguay. Interest Rate in

Paraguay averaged 6.34 Percent from 2010 until 2013, reaching an all time high of

8.50 Percent in August of 2011 and a record low of 3.50 Percent in November of

2010. The benchmark interest rate in Paraguay was last reported at 6.5 percent. In

Paraguay, interest rates decisions are taken by the Central Bank of Paraguay (Banco

Central del Paraguay). The official interest rate is the 14-day interest rate (la tasa de

14 días). This page contains - Paraguay Interest Rate - actual values, historical data,

forecast, chart, statistics, economic calendar and news.

Public expenditure on education consists of current and capital public expenditure

on education includes government spending on educational institutions (both public

and private), education administration as well as subsidies for private entities

(students/households and other privates entities).This page includes a historical data

41

chart, news and forecasts for Public spending on education; total (% of government

expenditure) in Paraguay.

Unemployment Rate in Paraguay decreased to 8 percent in the second quarter of

2013 from 8.40 percent in the first quarter of 2013. From 2010 until 2013, Paraguay

Unemployment Rate averaged 7.6 Percent reaching an all time high of 9.2 Percent in

March of 2010 and a record low of 6.0 Percent in December of 2011. In Paraguay,

the unemployment rate measures the number of people actively looking for a job as

a percentage of the labour force. This page contains - Paraguay Unemployment Rate

- actual values, historical data, forecast, chart, statistics, economic calendar and

news.

araguay’s tax system is insufficient to provide the resource base to eradicate poverty

in the country, and has done little or nothing to achieve a more equal distribution of

income and wealth.

Two major reforms over the last decade have done little to alleviate the fiscal

injustice that is generated partly by the low tax reciprocity of the soy agribusiness –

Paraguay’s main export crop. Meanwhile, programs and projects to support small-

scale farming receive a level of public financing accounting for just 5 per cent of

public expenditure.

he USDPYG spot exchange rate appreciated 168.6304 or 3.81 percent during the last

30 days. From 2003 until 2013, the USDPYG averaged 4882.5500 reaching an all time

high of 6290.0000 in April of 2005 and a record low of 3642.7000 in August of 2011.

The USDPYG spot exchange rate specifies how much one currency, the USD, is

currently worth in terms of the other, the PYG. While the USDPYG spot exchange

rate is quoted and exchanged in the same day, the USDPYG forward rate is quoted

today but for delivery and payment on a specific future date. This page contains -

Paraguayan Guarani - actual values, historical data, forecast, chart, statistics,

economic calendar and news.

42

The inflation rate in Paraguay was recorded at 4.40 percent in November of 2013.

Inflation Rate in Paraguay is reported by the Banco Central del Paraguay. Inflation

Rate in Paraguay averaged 6.32 Percent from 2005 until 2013, reaching an all time

high of 13.40 Percent in July of 2008 and a record low of 0.90 Percent in May of

2013. In Paraguay, the main components of the consumer price index are: Food (32

percent of the total weight); Transports (14.8 percent) and Shelter, Household

Maintenance and Services (8.9 percent). Furniture and Household Equipment

account for 7.7 percent; Miscellaneous Goods and Services for 7.3 percent and

Leisure and Culture for 6.1 percent. Others include: Restaurants and Hotels (5.5

percent); Clothing (4.9 percent); Health Care (4.1 percent); Education (4 percent);

Communications (3.4 percent) and Alcoholic Beverages and Tobacco (1.2 percent).

The national index has a base of 100 as of December 2007. The CPI reflects the prices

and spending patterns registered in the metropolitan area of Asunción, which

includes: Asunción, Luque, Fernando de la Mora, Lambaré, San Lorenzo and Capiatá,

and which accounts for 43.5 percent of the urban population of the country. This

page contains - Paraguay Inflation Rate - actual values, historical data, forecast,

chart, statistics, economic calendar and news.

43

Environment Analysis

hydropower, timber, iron ore, manganese, limestone.

Paraguay’s main contributions to reducing the threat of global warming was the

construction of the Itaipu Dam, which started generating power in 1982. By 2000, it

was supplying hydroelectric power to much of the country, making 93 percent of all

electricity generation in Paraguay; and providing 20 percent of the electricity used by

Brazil, generating significant income for the Paraguayan economy. Subsequently,

work has begun on the Yacyreta Dam, located on the Paraguayan-Argentine border,

which will provide electrical power for sale to Argentina.

In Paraguay, the management of industrial waste needs to be significantly improved.

Although there is a legislative framework for waste management in general, there

are no specific regulations for industrial waste management, and the regulations

that do exist are not practically applicable. Financial resources to support the

recycling of industrial waste and to enforce regulations are lacking. There is some

knowledge and technical capacity for the treatment of industrial waste, and there

are at least some attempts by the industrial sector to treat waste as a resource.

Nevertheless, technical and scientific knowledge at the level of the authorities needs

to be enhanced.

Paraguay improves seven places in the Index, lifted by improving performance on

the energy security dimension and on indicators of economic strength. Paraguay, a

‘Hydro-powered’ country, has an energy trilemma balance that is typical of that

country grouping, with average-to-low energy security and equity rankings balanced

out by excellent marks on the environmental sustainability dimension. Paraguay’s

total energy consumption growth rate is relatively flat considering its strong

economic growth, allowing it to strengthen its favourable energy consumption to

production ratio and free up more energy (most of it excess electricity generated

through hydropower) for export. Energy equity remains the most challenging of the

three dimensions for Paraguay, as gasoline prices increase and energy continues to

44

be very expensive. Environmental sustainability performance is unchanged and

remains exceptional, with the country’s emission-free-electricity generation being of

note. Indicators of contextual political and societal strength remain on the lower

side, but are improving, while increased macroeconomic stability and more plentiful

domestic credit for the private sector help to boost Paraguay’s ranking of economic

strength.

In economic terms, Paraguay has depended heavily on its rivers, especially in the 20th

century. Waterways provide 3,100 kilometers (1,926 miles) of transport paths. Most

international trade flows through the Paraguay and Parana Rivers, which connect

Asunción to the Atlantic

45

Political Analysis

Paraguayan Agricultural Development (DAP) is an agricultural organization based in

Paraguay. It is a large scale project, formed by an important group of Paraguayan

entrepreneurs and Argentineans in conjunction with the Moises Bertoni Foundation

and the Environmental Law and Economics Institute (IDEA).

The organization evaluates economic, social and environmental factors for

companies in Paraguay, ensuring that they comply with social and environmental

regulations for instance, drawing up management plans and granting licenses and

offering expertise on the use of agro chemicals and managing the Paraguayan

environment in coordination with ideologies of sustainable development

The third review of the trade policies and practices of Paraguay takes place on 27

and 29 April 2011. The basis for the review is a report by the WTO Secretariat and a

report by the Government of Paraguay.

Politics of Paraguay takes place in a framework of a presidential representative

democratic republic (whereby the President of Paraguay is both head of state and

head of government) and of a multi-party system. The National Constitution

mandates a separation of powers in three branches. Executive power is exercised

solely by the President. Legislative power is vested in the two chambers of the

National Congress. The Judiciary power is vested on Tribunals and Courts of Civil Law

and a nine-member Supreme Court of Justice, all of them independent of the

executive and the legislature.

Cartels and near-monopolies will now be regulated and punished in Paraguay, after

the country’s first ever competition law brings the country in line with global

standards.

46

The end of his iron-fisted rule did not bring political stability. Factional splits led to

the assassination of a vice-president, the resignation of a president and an

attempted coup.

Stroessner's party, the National Republican Association-Colorado Party, survived his

departure and remained in power until 2008. In elections in April it was defeated by

the centre-left Patriotic Alliance for Change led by Fernando Lugo.

Crime continues to be a serious concern, with levels rising each year since 2008.

According to the Paraguayan National Police (PNP) Department of Statistics, overall

crime increased in 2012 over 2011 levels. In 2012, the PNP reported an increase of

18 percent in overall arrests, most notably including an increase of over 68 percent

for cases of domestic abuse. Arrests involving firearms also increased over their 2011

level. The PNP concedes that many crimes go unreported due to lack of confidence

in the judicial process.

Political party in paraguay Authentic Radical Liberal Party, Beloved Fatherland Party, Boquerón Departmental Alliance, Christian Democratic Party, Colorado Party, Democratic Progressive Party, National Encounter Party, National Union of Ethical Citizens, Paraguayan Communist Party, Paraguayan Humanist Party, Partido Patria LibreParty for a Country of Solidarity, Revolutionary Febrerista Party, Tekojoja People's Movement, Workers' Party.

47

Legal Analysis

Paraguayan law allows unions, strikes, and collective bargaining, and forbids binding

arbitration. In practice, however, employers act with impunity against strikers and

unions. The law also prohibits forced labor, but in practice it is widespread. Labor by

children under 14 is illegal, but it is actually widespread, As of 2010, slightly over half

of Paraguayan children between ages five and 17 are in employment, with the

majority of them working over 14 hours a work. There are known to be slaves in

Paraguay, especially among domestic servants; parents sell children to perform

forced labor, smuggle drugs, and commit other crimes. Enforcement of laws against

these activities is hampered by a lack of resources.

An agreement to be used to distribute and commercialize a product belonging to a

foreign or national company by a local distributor in the territory of Paraguay.

Contract to be used when parties agree to lease a product with an option to buy it

after certain term. Contract to render services subject to the civil code.

The Central Unitaria de Trabajadores (CUT) is a national trade union center in

Paraguay. It was founded in 1989 and is affiliated with the International Trade Union

Confederation.

The National Workers' Central (CNT) is a national trade union center in Paraguay. It

was formed in 1963 as the Christian Workers' Central (CCT) and changed its name in

1978.

The CNT is affiliated with the International Trade Union Confederation.

The Paraguayan Workers Confederation (Spanish: Confederación Paraguaya de

Trabajadores) or CPT is a national trade union center in Paraguay. It was formed in

1951 with close ties to the Colorado Party. In 1958, after a general strike, many

unionists were exiled, and formed the CPT-E, a CPT in exile.

48

CPT again operates in Paraguay. Until 1974 it was affiliated with the International

Trade Union Confederation, but is now a member of the International Trade Union

Confederation.

Paraguayan civil law contemplates some of the key factors of corporate governance

provisions in comparison to common law jurisdiction and while it can be said that

they lack some specific ones, these do not really prevent some of the key functions

of a company to operate as such, and on the contrary it gives the due and necessary

framework to conduct their businesses in the market.

49

ETHICAL ANALYSIS

In Paraguay, ethical metal are known as prescription and non-ethical Importantly that in

this paper no distinction will be made between these two types of metals, but the

analysis will be carried out in general.

In the last five years the metal sector grew annual average of 9.2% and in 2007 and 2008,

revenues reached the 712,000 and 773,000 million, respectively, as IMS5 data.

Divided into two groups: ethical generic, which are those whose patent has expired and

can be made freely and ethical patented that can only be made by the owners of the

original patent laboratories or those who grant them a license (this is applied in countries

that accept the rules in the matter), to which is why the patented product prices are

generally higher. Moreover, unethical metal are those that can be obtained without a

prescription.

Chamber of metal Paraguay established for ethical practices.

50

STEEPLED ANALYSIS OF METAL INDUSTRY IN INDIA/GUJARAT

SOCIO ANALYSIS

India's per capita income (nominal) is $ 1219, ranked 142nd in the world,[1] while its

per capita purchasing power parity (PPP) of US $3,608 is ranked 129th.[2] It is

estimated that India's Per Capita Income will register an average growth rate of 13%

during 2011-2012 so as to reach $ 4,200 by 2020. In the year 2020 India's real GDP is

projected to be at $5 trillion, and per capita Nominal GDP at $ 3,650. India's per

capita purchasing power parity (PPP) will be at $ 12,800 in the year 2020. States of

India have large disparities. One of the critical problems facing India's economy is the

sharp and growing regional variations among India's different states and territories

in terms of per capita income, poverty, availability of infrastructure and socio-

economic development.[3] Although income inequality in India is relatively small (Gini

coefficient: 32.5 in year 1999- 2000);[4] India's nominal Gini index rose to 36.8 in

2005, while real Gini after tax remained nearly flat at 32.6

The demographics of India are inclusive of the second most populous country in the

world, with over 1.21 billion people (2011 census), more than a sixth of the world's

population. Already containing 17.5% of the world's population, India is projected to

be the world's most populous country by 2025, surpassing China, its population

reaching 1.6 billion by 2050. Its population growth rate is 1.41%, ranking 102nd in

the world in 2010. Indian population reached the billion mark in 2000.

India has more than 50% of its population below the age of 25 and more than 65%

below the age of 35. It is expected that, in 2020, the average age of an Indian will be

29 years, compared to 37 for China and 48 for Japan; and, by 2030, India's

dependency ratio should be just over 0.4.

India has more than two thousand ethnic groups, and every major religion is

represented, as are four major families of languages (Indo-European, Dravidian,

Austroasiatic and Tibeto-Burman languages) as well as two language isolates (the

Nihali language spoken in parts of Maharashtra and the Burushaski language spoken

in parts of Jammu and Kashmir).

51

Demographic & Socioeconomic changes influence the living & working habits of

populations. Economic growth, modernization, urbanization & socialization has

changed the life style of Indian families.

The labour sector of the Indian economy consists of roughly 487 million workers, the

second largest after China Of these over 94 percent work in unincorporated,

unorganised enterprises ranging from pushcart vendors to home-based diamond and

gem polishing operations. The organised sector includes workers employed by the

government, state-owned enterprises and private sector enterprises. In 2008, the

organised sector employed 27.5 million workers, of which 17.3 million worked for

government or government owned entities.

Now, a Times of India article cites new research by employer branding company

Universum that reveals a growing entrepreneurial spirit amongst Indian youth. In

fact, the spirit of entrepreneurship is higher in Indian youth than other nationalities.

Figures suggest that in the US 10% business students and 12% IT students chose to

be entrepreneurs or work with new-age companies and 12% German students

belonging to both the categories respectively chose the same. While in India, 26% of

undergraduate business students and 16% of IT and engineering students prefer

working in startups.

As per the Annual Status of Education Report (ASER) 2012, 96.5% of all rural children

between the ages of 6-14 were enrolled in school. This is the fourth annual survey to

report enrollment above 96%. 83% of all rural 15-16 year olds were enrolled in

school. However, going forward, India will need to focus more on quality.

India is a country with an ancient clothing design tradition, yet an emerging fashion

industry. Though a handful of designers existed prior to the 1980s, the late 80s and

the 1990s saw a spurt of growth. This was the result of increasing exposure to global

fashion and the economic boom after the economic liberalization of the Indian

52

economy in 1990. The following decades firmly established fashion as an the

industry, across India.

The management of AAFT deems its primary responsibility to offer a cozy, homely

working environment to all its students, camping here away from their homes for

their short-term foundation to graduating or post graduating courses.

Technology

53

MUMBAI: IT spending in India is expected to reach $ 71.3 billion in 2014, a 5.9 per

cent increase over 2013 forecast, research firm Gartner today said.

IT services will record the strongest revenue growth at 12.1 per cent, while, software

revenue will grow 10 per cent and the telecommunication services segment, that

accounts for 42.1 per cent of the Indian ICT market, is expected to grow by two per

cent in 2014.

Indian manufacturing sector contributes around 16% to the GDP and grows around

9-10% every year, till 2008. Strong automotive sector growth and ever expanding

domestic market helped the sector grow. Though manufacturing had not been a

traditional strength to India, it has made considerable progress in manufacturing,

particularly in auto, computer hardware, engineering products and consumer

durables. Many surveys have indicated India’s manufacturing strength like low

manpower cost also coupled with quality management skills to bring modern

technology and capital. No doubt as India’s education system produces 400,000

engineers every year.

The economic development in India followed socialist-inspired policies for most of its

independent history, including state-ownership of many sectors; India's per capita

income increased at only around 1% annualised rate in the three decades after

Independence. Since the mid-1980s, India has slowly opened up its markets through

economic liberalisation. After more fundamental reforms since 1991 and their

renewal in the 2000s, India has progressed towards a free market economy.

This list of Indian inventions and discoveries details the inventions, scientific

discoveries and contributions of India, including both the ancient and medieval

nations in the subcontinent historically referred to as India and the modern Indian

state. It draws from the whole cultural and technological history of India, during

which architecture, astronomy, cartography, metallurgy, logic, mathematics,

metrology and mineralogy were among the branches of study pursued by its

scholars. During recent times science and technology in the Republic of India has also

54

focused on automobile engineering, information technology, communications as

well as research into space and polar technology.

In a companion paper [Dechezleprêtre, A., Glachant, M., Ménière, Y., 2008. The

Clean Development Mechanism and the international diffusion of technologies: An

empirical study, Energy Policy 36, 1273–1283], we gave a general description of

technology transfers by Clean Development Mechanism (CDM) projects and we

analyzed their drivers. In this paper, we use the same data and similar econometric

models to explain inter-country differences. We focus on 4 countries gathering about

75% of the CDM projects: Brazil, China, India and Mexico. Sixty eight percent of

Mexican projects include an international transfer of technology. The rates are,

respectively, 12%, 40% and 59% for India, Brazil and China. Our results show that

transfers to Mexico and Brazil are mainly related to the strong involvement of

foreign partners and good technological capabilities. Besides a relative advantage

with respect to these factors, the higher rate of international transfers in Mexico

seems to be due to a sector-composition effect. The involvement of foreign partners

is less frequent in India and China, where investment opportunities generated by fast

growing economies seem to play a more important role in facilitating international

technology transfers through the CDM. International transfers are also related to

strong technology capabilities in China. In contrast, the lower rate of international

transfer (12%) in India may be due to a better capability to diffuse domestic

technologies.

The electricity sector in India had an installed capacity of 229.251 GW as of October

2013, the world's fifth largest. Captive power plants generate an additional 34.444

GW. Non Renewable Power Plants constitute 87.55% of the installed capacity, and

Renewable Power Plants constitute the remaining 12.45% of total installed Capacity.

India generated 855 BU (855 000 MU i.e. 855 TWh) electricity during 2011–12 fiscal.

About 70% of India's energy generation capacity is from fossil fuels, with coal

accounting for 40% of India's total energy consumption followed by crude oil and

natural gas at 24% and 6% respectively. India is largely dependent on fossil fuel

imports to meet its energy demands — by 2030, India's dependence on energy

55

imports is expected to exceed 53% of the country's total energy consumption. In

2009-10, the country imported 159.26 million tonnes of crude oil which amounts to

80% of its domestic crude oil consumption and 31% of the country's total imports

are oil imports. The growth of electricity generation in India has been hindered by

domestic coal shortages and as a consequence, India's coal imports for electricity

generation increased by 18% in 2010.

Five minutes on a street in India and you will be convinced that you are in the most

connected community in the world. Cutting across socio-economic classifications,

there is a feature common to everyone – a mobile phone! This technology that most

of us have seen develop during our lifetime, has transformed the nation from one

where a telephone was the symbol of dystopian bureaucracy – with trunk calls,

rotary dials, and seven-year waiting periods the accepted norm – to one where a

mobile phone has become a way of life. I manage everything from my bank accounts

to paying bills to booking tickets to following my fitness regime on my mobile phone!

56

Economy

The benchmark interest rate in India was last recorded at 7.75 percent. Interest Rate

in India is reported by the Reserve Bank of India. Interest Rate in India averaged 6.60

Percent from 2000 until 2013, reaching an all time high of 14.50 Percent in August of

2000 and a record low of 4.25 Percent in April of 2009. In India, interest rate

decisions are taken by the Reserve Bank of India's Central Board of Directors. The

official interest rate is the benchmark repurchase rate. This page contains - India

Interest Rate - actual values, historical data, forecast, chart, statistics, economic

calendar and news.

Monetary policy is the process by which monetary authority of a country, generally a

central bank controls the supply of money in the economy by exercising its control

over interest rates in order to maintain price stability and achieve high economic

growth.[1] In India, the central monetary authority is the Reserve Bank of India (RBI).

is so designed as to maintain the price stability in the economy. Other objectives of

the monetary policy of India, as stated by RBI.:

Unemployment Rate in India decreased to 3.80 percent in 2011 from 9.40 percent in

2010. Unemployment Rate in India is reported by the India Ministry of Labour. From

1983 until 2011, India Unemployment Rate averaged 7.6 Percent reaching an all time

high of 9.4 Percent in December of 2010 and a record low of 3.8 Percent in

December of 2011. In India, the unemployment rate measures the number of people

actively looking for a job as a percentage of the labour force. This page contains -

India Unemployment Rate - actual values, historical data, forecast, chart, statistics,

economic calendar and news.

Taxes in India are levied by the Central Government and the state governments.

Some minor taxes are also levied by the local authorities such as the Municipality.

The authority to levy a tax is derived from the Constitution of India which allocates

the power to levy various taxes between the Centre and the State. An important

57

restriction on this power is Article 265 of the Constitution which states that "No tax

shall be levied or collected except by the authority of law. Therefore each tax levied

or collected has to be backed by an accompanying law, passed either by the

Parliament or the State Legislature. In 2010-11, the gross tax collection amounted to

7.92 trillion, with direct tax and indirect tax contributing 56% and 44%

respectively.)

he Official exchange rate (LCU per US dollar; period average) in India was last

reported at 46.67 in 2011, according to a World Bank report published in 2012.

Official exchange rate refers to the exchange rate determined by national authorities

or to the rate determined in the legally sanctioned exchange market. It is calculated

as an annual average based on monthly averages (local currency units relative to the

U.S. dollar).This page includes a historical data chart, news and forecasts for Official

exchange rate (LCU per US dollar; period average) in India.

The inflation rate in India was recorded at 7.52 percent in November of 2013.

Inflation Rate in India is reported by the Ministry of Commerce and Industry, India.

Inflation Rate in India averaged 7.71 Percent from 1969 until 2013, reaching an all

time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent

in May of 1976. In India, the wholesale price index (WPI) is the main measure of

inflation. The WPI measures the price of a representative basket of wholesale goods.

In India, wholesale price index is divided into three groups: Primary Articles (20.1

percent of total weight), Fuel and Power (14.9 percent) and Manufactured Products

(65 percent). Food Articles from the Primary Articles Group account for 14.3 percent

of the total weight. The most important components of the Manufactured Products

Group are Chemicals and Chemical products (12 percent of the total weight); Basic

Metals, Alloys and Metal Products (10.8 percent); Machinery and Machine Tools (8.9

percent); Textiles (7.3 percent) and Transport, Equipment and Parts (5.2 percent).

This page contains - India Inflation Rate - actual values, historical data, forecast,

chart, statistics, economic calendar and news

58

Consumer Confidence in India decreased to 112 in the third quarter of 2013 from 118 in the second quarter of 2013. Consumer Confidence in India is reported by the Nielsen. From 2009 until 2013, India Consumer Confidence averaged 118.5 reaching an all time high of 131.0 in December of 2010 and a record low of 92.0 in March of 2010. The Consumer Confidence Index in India is part of The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005. The survey is conducted by the Internet and tracks consumer confidence, job prospects, personal finances and spending intentions. Consumer confidence levels above 100 indicate optimism and below a 100 indicate pessimism. This page contains - India Consumer Confidence - actual values, historical data, forecast, chart, statistics, economic calendar and news

59

Environment

Natural resources are materials derived from the environment. It may exist as a

separate entity or in an alternate form which must be processed to obtain the

resource. Most of the resources are available in specific area which are called as

localized resources. They satisfy the needs of people. Resources can be classified

based on the Renewability or Basis of origin or Utility. They are classified as Biotic

and Abiotic resources on basis of origin. India has both type of resources and its

economy is dependent on these resources. The resources are extracted in different

ways and some of the ways are agriculture, mining, drilling and forestry. Due to over

consumption or limited availability some of the resources are getting depleted.

India Infrastructure Summit is the largest platform for policy debate relating to

infrastructure sector in India. It brings together Central and State Government

officials, policymakers, regulators, leading infrastructure developers, contractors,

investors & financial institutions and other stakeholders in a dialogue designed to

address key challenges and issues facing infrastructure sector.

60

Political

A good environment is a constitutional right of the Indian Citizens. Environmental

Protection has been given the constitutional status. Directive Principles of State

Policy states that, it is the duty of the state to 'protect and improve the environment

and to safeguard the forests and wildlife of the country'. It imposes Fundamental

duty on every citizen 'to protect and improve the natural environment including

forests, lakes, rivers and wildlife'.

Politics in India takes place within the framework of a constitution. India is a federal

parliamentary democratic republic in which the President of India is head of state

and the Prime Minister of India is the head of government. Nominally, executive

power is exercised by the president and is independent of the legislature. Legislative

power is vested in both the government and the two chambers of the Parliament of

India, the Lok Sabha and the Rajya Sabha. Federal and state elections generally take

place within a multi-party system, although this is not enshrined in law. The judiciary

is independent of the executive and the legislature, the highest national court being

the Supreme Court of India. India is the world's largest democracy in terms of

citizenry

61

Legal

Indian labour law refers to laws regulating employment in India. There are over fifty

national laws and many more state-level laws.

Traditionally Indian governments at federal and state level have sought to ensure a

high degree of protection for workers (allegedly). For instance, a permanent worker

can be terminated only for proven misconduct or for habitual absence.

Indian contract law regulates contract law in India. The main contract law in India is

codified in the Indian Contract Act 1872 which came into effect on September 1,

1872 and is applicable in the whole country. It governs entering into contract,

execution of contract, and the effects of breach of contract.

Corporate governance refers to the system by which corporations are directed and

controlled. The governance structure specifies the distribution of rights and

responsibilities among different participants in the corporation (such as the board of

directors, managers, shareholders, creditors, auditors, regulators, and other

stakeholders) and specifies the rules and procedures for making decisions in

corporate affairs. Governance provides the structure through which corporations set

and pursue their objectives, while reflecting the context of the social, regulatory and

market environment. Governance is a mechanism for monitoring the actions,

policies and decisions of corporations. Governance involves the alignment of

interests among the stakeholders

In India the Trade Union movement is generally divided on political lines. According

to provisional statistics from the Ministry of Labour, trade unions had a combined

membership of 24,601,589 in 2002. As of 2008, there are 12 Central Trade Union

Organisations (CTUO) recognised by the Ministry of Labour.

62

ETHICAL ANALYSIS

The metal industry has in recent years come under attack from an ethical point of view

concerning its patents and the non-accessibility Metals for many of the poor.

The industry has replied with economic and legal justifications for its actions. The result

has been a communication gap between the industry on the one hand and poor nations

and Indian critics on the other.

Attempts to present and evaluate the arguments on all sides and suggests a possible way

out of the current impasse.

Attempts to determine the ethical responsibility of the Metal industry in making Metals

available to the needy, while at the same time developing the parallel responsibilities of

individuals, governments, and NGOs..

63

Bibliography

(http://en.wikipedia.org/wiki/Mineral_industry_of_Paraguay) (http://books.google.co.in/books?

id=kQYtjoEyDJoC&pg=PA56&lpg=PA56&dq=minerals+and+mining+sector+in+paraguay+pdf&source=bl&ots=A1XIqR9scR&sig=MoABoh GzAPFPQy5SP5SqllqoY&hl=en&sa=X&ei=DPG3Uun_DYXkkAX8loCwDg&ved=0CFgQ6AEwBw#v=onepage&q=minerals%20and%20mini)

(http://en.wikipedia.org/wiki/Mineral_industry_of_Paraguay)

64