INDIA

1
INDIA Commercial Overview

• Presentation by
• Jim Cunningham
• Foreign Service Officer
• U.S. Foreign Commercial Service

2
Synopsis of presentation

• India commercial and economic overview
• Marketing your products and services
• Top 10 business obstacles
• CS India- overview and services

3
INDIA

• GDP reached 1.3 trillion (2008)
• GDP over 3 trillion when adjusted for purchasing
  power parity
• GDP growth rate projected at 5.6 per cent for
  2009
• Worlds 12th largest economy in terms of GDP
• GDP composition by sectors
• Agriculture 17
• Industry 29
• Services 54

4
INDIA

• Tariffs are still among the worlds highest
• External trade over 465 billion in 2008
• Vibrant stock market with a listing of over 6000
  companies
• Since 1990s, growth of middle class poverty
  reduction
• Two-way U.S.-India trade exceeded 30 billion in
  2006,
• up from 10 billion in 1997

5
INDIA

• The makers of supercomputers
• Companies listed on NYSE and NASDAQ
• Worlds second largest pharmaceutical industry
• Second largest community of software developers
• 100 Fortune 500 companies have RD facilities

6
U.S. IndiaBusiness Partnerships

• U.S. is Indias 2nd largest trading partner
• Two-way trade in merchandise in 2007 exceeded 41
  billion
• U.S. exports to India 17 billion in 2007 25
  billion 2008
• U.S. imports from India 24 billion 2007 26
  billion 2008

7
U.S. IndiaBusiness Partnerships

• India U.S. Civil Nuclear Cooperation
• Over 1000 U.S. companies in India
• FDI inflow increased from 11.3 million
• over the last 15 years to 6 billion
• as of 2005
• Indian direct investments in the U.S.
• exceeded 1.5 billion as of 2005

8
Marketing your Products/Service

• All Customary Import channels exist Agents,
  Distributors, Importers etc.
• Define your terms query your Indian counterpart
• Better understanding of business culture
• Better understanding of Indian Business Law

9
Marketing your Products/Service(continued)

• Marketing Strategy
• Build personal relationships
• US goods and services are regarded as
  high-quality
• Protecting your Intellectual Property
• Price, Placing, Product and Promotion

10
India - Best Prospects

• Airport Ground Handling equipment
• Computers Peripherals
• Education Services
• Electric Power Generation, Transmission
  Distribution Equipment
• Food Processing Equipment

11
India - Best Prospects(Continued)

• Medical Equipment
• Mining Mineral Processing Equipment
• Oil and Gas Field Equipment
• Pollution Control Equipment
• Telecommunication Equipment
• Textile Machinery

12
Top 10 U.S. Business Obstacles

• Substandard infrastructure
• Excessive government involvement/bureaucracy
• High tariffs and excessive indirect taxes
• Slow Reform Process
• Restrictions on foreign investment differential
  tax rates for foreign companies

13
Top 10 U.S. Business Obstacles
(Continued)

• Companies question sanctity of contract
• Weak enforcement of intellectual property rights
• Mid-govt. rule revisions
• Lack of transparency
• Regional decisions contradict Govt. of India
  policy

14
USFCS Services

• Counseling
• Matchmaking/GKS
• Due Diligence
• Market Research Reports/Country Commercial Guides
• Trade missions
• Advocacy Support

15
CS India

• Seven Offices
• Mumbai (Bombay)
• New Delhi
• Chennai (Madras)
• Hyderabad
• Bengaluru (Bangalore)
• Kolkata (Calcutta)
• Ahmedabad (State of Gujarat, satellite of Mumbai)

16
Contact Information

• Internet www.buyusa.gov/india
• Or
• www.export.gov/cs
• Jim Cunningham
• jim.cunningham_at_mail.doc.gov
• or
• [phone]