Focus Chile: India

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INDIA UN MERCADO EMERGENTE PARA CHILE?
May 27, 2009
Universidad Gabriela Mistral
India and Chile
Partners in Progress and Peace
Pradeep K. Kapur Ambassador of India Santiago
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What is India?

• In religion and culture, India is the only
  millionaire! There is only one India, the land
  of dreams and romance. The one land all men
  desire to see, and having seen once, by even a
  glimpse, would not give that glimpse for the
  shows of all the rest of the globe combined.
  India is the cradle of the human race, the
  birthplace of human speech, the mother of
  history, the grandmother of legend, and the great
  grandmother of tradition. Our most valuable and
  most instructive materials in the history of man
  are treasured up in India only.
• - Mark Twain

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Statistics on India

• A Federal Democratic Republic
• Population about 1.2 billion.
• Capital City New Delhi has a population of 17
  million people
• GDP (official exchange rate) US1.2 trillion
  (2008)
• GDP (PPP) US 3.267 trillion (2008)
• GDP per capita (PPP) US2,762 (2008)
• Annual Growth 9.0 (2007-08)
• 7.1 (2008-09)
• Major Industries Textiles, chemicals,
  pharmaceuticals, IT, food processing, steel
• Literacy rate 64.8, with 53.7 of females being
  literate.
• The sex ratio 933 females for every 1000 males.

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India's Economy

• The Indian Economy is the second fastest growing
  economy in the world with 7.1 GDP expansion in
  2008-09 and per capita income growing at 7.4 per
  annum.
• India has an economy ranked as the twelfth
  largest in the world in terms of currency
  conversion.
• India has also emerged as an important regional
  power, possessing one of the world's largest
  military forces and a declared nuclear weapons
  capability.

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Predicted growth

• An average economic growth rate of around 9 for
  three consecutive years.
• Goldman Sachs report, Indias GDP will cross
• 1 trillion mark by the year 2011
• 2 trillion by 2020
• 6 trillion by 2032
• 10 trillion by 2038
• 27 trillion by 2050.

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Demographic Strength

• Billion-plus strong population
• 700 million Indians below the age of 24
• The second largest reservoir of trained manpower
• Over 2 million undergraduates, 300,000
  non-engineering post-graduates, over 290,000
  engineers and some 9000 PhDs every year join the
  work force.
• Diversity regional, cultural, religious, ethnic
  etc

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Market Potential

• The Indian middle class with increasing
  purchasing power is almost over 300-million
  strong
• Largest, varied, and increasingly westernized and
  sophisticated consumer demands in one country

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Major Growth Areas

• Sharp rise in merchandise growth
• International trade in service transactions
• Information and bio-technology
• Two-way flow of educational services
• Educational excellence recognized
• Strong well developed private sector whose growth
  is encouraged
• Increasingly transparent policies for FDI

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Other Strengths

• Independent judiciary and rule of law
• Continuity in Indias foreign, economic and
  political policies
• A reliable partner for long-term economic
  collaboration
• High technology and trained manpower pool
• Supercomputers
• Complete nuclear fuel cycle facilities
• Placing our own satellites in orbit
• English speaking technical work force

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India and Chile
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India and Chile Partnering for Progress and Peace

• A broad convergence of enlightened interests and
  aspirations, strategic objectives and security
  concerns
• Similar approach to development and growth
• Mutual keenness to increase bilateral trade,
  commerce and international interactions

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Areas of Political Convergence

• Both have a role to play in the emergence of a
  rule-based, multi-polar, democratic and equitable
  world order that alone can ensure long term
  peace, stability and equilibrium on our planet.
• The UN system working together for making this
  international body more representative of present
  day realities
• A cooperative and comprehensive approach to
  combating international terrorism.
• Both desire nuclear weapons-free world
  divergence is only in regard to the path leading
  to an identical goal.

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Areas of Economic Convergence

• Key players in global economic management
• Both have a role to play in putting an equitable
  global trading system in place.
• A sound, transparent, equitable and rule-based
  multilateral trading system.
• Need to work together to achieve a balanced
  outcome of the Doha Development Agenda,
  particularly in the area of agricultural reform,
• Need to coordinate positions in G-20, to ensure
  concerns of the developing countries considered

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Reason for Looking at India

• Strong economic player
• Growth and Development Impressive
• Democracy forms resilient base for steady
  economic growth with stability
• Achievements in the economic field
• Green Revolution
• Development without foreign aid
• Foreign exchange reserves stand at a very healthy
  US241.7 billion. (March,2009)
• Size of the economy has doubled
• Poverty and Health indicators improved

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Growth of Indo-Chilean Trade (2004-2008)

• Trade between Chile and India has almost
  quadrupled -going from U 526 million in 2004 to
  U 2221 million in 2008.

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Trade Figures (USD Millions)
Years Chilean Exports Chilean Imports Bilateral Trade
Jan-Apr09 217.10 85.90 303.00
2008 1743.61 477.78 2221.39
2007 2211.45 207.73 2419.18
2006 1489.16 164.16 1653.32
2005 493.02 134.53 627.55
2004 426.03 100.69 560.56
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India's Adverse Trade Balance

• Diversification needed

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Copper Dominates Indian Imports

• 92 Copper
• 8 Wines, iodine, fish meals, paper pulp, apples,
  etc.

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Opportunities

•  
• Telecommunication
• IT
• Mining
• Transport
• Plastics
• Garments
• Defense
• Satellite
• Pharmaceuticals

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Focus Segments

• Pharmaceuticals- Serum Institute, Wockhardt,
  Biocon, Aurobindo, etc.
• Mining machinery BEML
• Automobiles Tata Motors, Maruti, Mahindra
• IT and IT enabled services- TCS, iFlex, Polaris,
  etc.
• Space research and Satellite- ISRO
• Textiles
• Traditional Medicine- Ayurveda

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Defense Cooperation

• HAL appoints ENAER service/ sales
• ENAER awarded US 1 million contract
• HAL test flies ALH in Chile
• Joint Agreed statement on defence co-operation
• Two NDC study teams visit Chile (2005 2009)
• India/Chile joint research on Antarctica
• Expedition of Indian Navy team to South pole from
  Chile Antarctic base (2007)
• First Defence Attaché to Latin America
• Chief of Indian Army Staff visits Chile (May 2006)

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• One Indian Army officer attached to
  Mountaineering School, Chile (2007)
• First ever visit of Indian Chief of Naval Staff
  to Chile (Nov, 2007)
• Two Chilean Army officers attached to
  Mountaineering School in India (2008 2009)
• One Chilean Navy officer attached to Defence
  Services Staff College, Wellington India for
  Staff course (2008-09)
• First ever goodwill visit of Chilean Navy Ship
  Esmeralda to India (Sep08)
• Two Indian Naval officers specialized in Staff
  duty from Naval War College, Chile (2006 2008)
• Visiting Professor from Indian Army attached to
  Chilean Army War College (2008)
• Indian Chief of Army Staff to visit Chile in
  June, 2009.

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Commercial Cooperation

• TCS wins Trans-Santiago order for bus management
  and back office operations support to a Spanish
  bank in Chile (USD 30 million)
• TCS buys back office operation US 23 million
• Thermax India obtains order for biomass fired
  boiler (USD 400,000)
• CSAV, US 2.7 billion conglomerate, sets up 13
  offices in India for direct shipping
• Indian KPO service provider Evalueserve opens
  centre in Chile
• Polaris formally launched in Chile in May, 2009
• IRM Offshore and Marine Engineers Pvt. Ltd. India
  obtains order for marine fenders (US 530,000)

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Agreements

• Cooperation in the field of New and Renewable
  Energy
• Exchange Programme on cooperation in the field of
  Education
• Cooperation in the Exploration and Utilization of
  Outer Space for Peaceful Purposes
• Cooperation in the field of Geology and Mineral
  resources
• Sanitary Phytosanitary
• Cooperation in Science and Technology
• Cooperation in Sports
• Air Service Agreement

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• Antarctic co-operation
• Preferential Trade Agreement
• Defence Cooperation
• Cooperation in Agriculture
• Economic cooperation
• Visa exemption for holders of official and
  Diplomatic passports
• Animal Health (Zoo sanitary Agreement)
• Cultural Exchange Programme
• Cooperation between Foreign Service Institute of
  India and Andres Bello Diplomatic Academy of
  Chile

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Showcasing India

• Cultural troupe to Chile, November 2008
• India Show2009 (ITPO)
• Increase of ITEC Scholarships for study
• in India

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Future Prospects

• BEML Mining equipment
• Technical Education
• Copper Mining Investment
• Automobiles
• Satellites and commercial applications
• Defense Ordnance Sales
• Proposed trade delegations from Chemexcil,
  Capexil and Council for Leather Exports.

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Conclusion

• The most dynamic and fastest growing economy
• Constitutes a vast and growing market
• A competitive source of technologies and
  knowledge-based services
• Willing to cooperate for mutual benefit
• Time to further partnership for global peace,
  development, and progress

India an indispensable economic partner for Chile
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THANK YOU