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INDIA. COMPREHENSIVE MARKET DEVELOPMENT PLAN. CHINA 1.365 bn. INDIA 1.065 bn. POPULATION. UE 380 mn. EEUU 290 mn. INDIA: A PRIORITY MARKET FOR SPAIN. DUE TO STRONG POPULATION GROWTH. In 20 years, India’s population will exceed that of China.
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INDIA COMPREHENSIVE MARKET DEVELOPMENT PLAN
CHINA 1.365 bn. INDIA 1.065 bn. POPULATION UE 380 mn. EEUU 290 mn. INDIA: A PRIORITY MARKET FOR SPAIN DUE TO STRONG POPULATION GROWTH • In 20 years, India’s population will exceed that of China. • By 2016, India’s population will exceed that of all the developed countries. • One in every six persons in the world lives in India. • With a 1.65% growth rate, India contributes most to world population growth.
Annual growth rate in the last 10 years: 6.5% Annual growth forecasts: 6-7% In 10 years the combined GDP of China, India and Japan will be similar to that of the US, Germany, France and the United Kingdom combined A highly dynamic services sector: 60% of GDP growth in the last 12 years. Quality tourism expanding: 5.4 million trips overseas in 2004, a 20% increase on the previous year. INDIA: A PRIORITY MARKET FOR SPAIN DUE TO STRONG ECONOMIC GROWTH
Food and food processing Chemical and pharmaceutical products Electrical materials and machinery Electronics and communications SECTORS OF OPPORTUNITY For Trade For Investment • Sectors being privatised/liberalised: electrical, civil aviation, rail, roads tourism • Automotive components and electrical machinery Services Sector • Engineering, particularly electronics and communications. • Construction • Telecommunications • Tourism • Information technologies
THE AIMS OF THE INDIA CMDP MAIN OBJECTIVE • Spain and India, two great unknowns • In India : • To make known and enhance the image of Spanish products, services and technology. To offer Spain as a tourist destination. In Spain : • Definition and awareness of the Indian market. OTHERS OBJECTIVES • To intensify relations with India, given its growing political role in the international context. • To increase the market share of Spanish exports. • To make the strong Indian demand known in sectors like education, IT, health, energy, the environment and leisure. • To increase the number of Indian tourists visiting Spain.
LINES OF ACTION INSTITUTIONAL BACKING BACKING FOR TRADE Market access Promotion and image Financial backing BACKING FOR INVESTMENT INFORMATION AND TRAINING PROMOTION OF TOURISM
To foment periodic high-level contacts. To promote mixed encounters between companies and authorities. To foment the Spain-India Joint Commission. To open a Spanish Consulate in Mumbai. Formalities for the opening of a new Economic and Commercial Office in Mumbai, and the opening of a Tourist Office in 2008. The opening of the Cervantes Institute in Mumbai. To make use of the forums for EU-India relations (Co-operation, association and development Agreement: Strategic Partnership and its forums, and EU-India Summits). To enhance collaboration with Casa Asia and Casa India, for joint activities. INSTITUTIONAL SUPPORT
India is a member of the WTO Leader of the Developing Countries Great potential for opening up ACCESS TO THE INDIAN MARKET • To secure ambitious commitments in India in the Doha Round, in line with its level of development. • Particular attention to access to markets, services and non-tariff impediments. • The EU-India Partnership:to make the most of existing market access mechanisms. • Dialogues on transport. • Biotechnology. • Space
WORK ON THE OBSTACLES High tariffs Import restrictions Excessive procedures Limitations on access to services and investment in telecommunications, banking, air transport, insurance, energy, construction and engineering. ACCESS TO THE INDIAN MARKET ACTING SIMULTANEOUSLY ON: • WTO, particularly the Doha Round • UE-INDIA • Strategic partnership • Forums for regulatory and industrial policy • Co-operation Agreement Mechanisms • SPAIN-INDIA • Joint Commission and bilateral contacts
COMMERCIAL PROMOTION: STRATEGIES (1) OBJECTIVE To improve awareness of what Spain has to offer, and this country’s level of economic and technological development. STRATEGIES • a) To reinforce the presence of Spanish companies in India • Increased promotion activities. • Improved financing terms for Promotion Activities. • Enhancement of Plans to set up in business.
b) To enhance activities in the sectors of the future Plan for the Promotion of Sectors with High Technological Content. Increased promotion in priority sectors. c) To upgrade on-going promotional activities. d) To foment relations with the large economic groupings. COMMERCIAL PROMOTION: STRATEGIES (2) STRATEGIES
Support was given in 2005 to more than 29 promotional activities, involving more than 120 enterprises: COMMERCIAL PROMOTION: ACTIONS (1) • Attendance at four Fairs. • 12 direct commercial missions. • 2 promotions and Technical Congresses, and • Plans to back more than 10 company programmes Highlights: • Jornadas Automotive-Machine Tool Congress (Mumbai, April 2005) • An Institutional and Entrepreneurial Mission from the automotive sector, with approaches to Large Indian Groups like TATA (Pune, April 2005).
a)Food and agricultural products: Drives aimed at making what Spain has to offer more familiar Promotion of quality products targeting the top end of the market. Grouped Participation in the Delhi IFE Fair (held in 2004 and 2005). COMMERCIAL PROMOTION: ACTIONS (2) Almost 40 actions are planned for 2006. • b) Consumer Goods: • 2 study missions (clothing and fabrics) • 1 direct mission (the weaving sector) • 1 seminar on openings for the tile sector • c) Services: • Publishing: the Calcutta Book Fair (January 2006).
Communication campaigns on Spanish Technology in collaboration with the MIT (Massachusetts Institute of Technology) and the Indian Institute of Technology: Wind power Water treatment and desalination Transport infrastructures Technical Congresses and a Business Encounter in the automotive sector as part of the AUTOEXPO Fair, in collaboration with the Indian Automobile Association. Technical Congresses on the Waters Sector, and monitoring activities (Desalination, Potabilisation). Study of the Potential for Renewable Energies in India. COMMERCIAL PROMOTION: ACTIONS (3) b) Industrial Products and Technology:
COMMERCIAL PROMOTION: ACTIONS (4) c) Industrial Products and Technology: • Reinforcement of Direct Industrial Sector Missions. • Official pavilions, sectors with high technological content: • Promotion of relations with the large economic groups: Monitoring the approach to the TATA Group in all its industrial fields • . • INDIAWOOD (16-20 February), machinery for the wood industry; • HOSPIMEDIC (11-14 March), medical-hospital equipment; • POWERGEN (1-3 October), renewable energies, generation and transmission; • PALA (4-6 October), electronics, audio and professional lighting.
Company programme: on-going support for business startups. Conclusion of a Collaboration Agreement between the CDTI and its Indian counterpart DST-TBD (Department of Science and Technology - Technology Development Board): Bilateral Technology Programme Overseas CTDI Network for technological advice to companies overseas, with new headquarters in India. The representative will collaborate directly with OFECOMES (the Spanish Embassy’s Economic and Commercial Office). To move forward in the hiring of a Head of Department to support activity, in Mumbai. COMMERCIAL PROMOTION:ACTIONS (5) • Other Actions:
FINANCIAL BACKUP FOR EXPORTS • CESCE:(Spanish Export Credit and Insurance Company): Review of country-ceiling in the CESCE Council: unrestricted cover (previous ceiling, 500 mn. euros). • DAF:A fundable country according to OECD rules. Domestic legislation does not permit linked financing. Exploration of the possibilities for non-linked financing. Potential financing programme: 75 mn. euros. • FEV: A possible 10 mn. euro donation line. FOR INVESTMENTS • COFIDES:The strengthening of investment backup instruments and the FIEX and FONPYME lines, to a target figure of 6 mn. euros. • ICO:Strengthening use of the Internationalisation Line.
Detection and publicising of investment and business co-operation opportunities Framework Agreements for Co-operation in Investment Promotion with Institutions seeking investment in India. India a preferential target of the new Programme to Identify and Publicise New Overseas Investment Opportunities (PIDINVER). INVESTMENT-RELATED ACTIONS (1) • India, a priority country of the Overseas Investment Prospecting Programme (PROSPINVER)
The Spain-India Investment and Business Co-operation Forum New Delhi, November 2005, with the participation of 34 Spanish and 180 Indian enterprises, and with 224 interviews. 2006 and 2007: the organisation of further Spain-India Investment and Business Co-operation Forums. INVESTMENT-RELATED ACTIONS (2) • Strengthening of the Investment Project Support Programme,to improve its terms, making them more flexible for investment in India. It is hoped that the number of projects backed in the country will rise significantly in 2006 and 2007.
INFORMATION ACTIVITIES Organisation of information activities on the Indian market Course, Doing Business in India (Madrid and Barcelona). Organised in collaboration with Casa India (Casa Asia), six-monthly, and running for three days. Seminars on various industrial sectors of interest on this market.. Informative Sessions with the participation of Ofecomes and companies with experience in the country. Presence of Ofecomes Nueva Delhi at the International Export Meeting Point. INFORMATION AND TRAINING ACTIONS (1)
INFORMATION ACTIVITIES Updating of existing information on the Indian market. Update, Country File (2005 and 2007) and Indian Business Guide (2006). Launch of a portal for the India CMDP. Details on the country, bilateral trade, sector information, exporting to and investing in India, in-market promotion, actions in the 2005-2007 Plan, etc. www.spainbusiness.com: Portal targeting potential importers or exporters of Spanish products, and investors in Spain. In English, information on Spain, segmented by region, and the economic-commercial characteristics, bilateral statistics, market studies, scouting for Spanish export companies, information activities, and promotion in the country, etc., INFORMATION AND TRAINING ACTIONS (2)
TRAINING ACTIVITIES Enhancement of the ICEX Scholarship Programme in India. A 50% increase in the number of ICEX interns in New Delhi. The total number (ICEX and the Regional Government Communities) is 9 in 2006. A new Programme for the Attraction and Training of Foreign Professionals (PROPEX) India: uno India: one of the three pilot countries chosen in 2005 for the launch. Objective: the training of foreign professionals able to join plans for the internationalisation of Spanish enterprises in India; training in Spanish in India (1 month), on the structure and culture of Spain (1 month) and in-company (3-5 months). INFORMATION AND TRAINING ACTIONS (3)
TOURISM PLAN TO PROMOTE SPAIN IN INDIA • OBJECTIVE: To make Spain known as a tourist destination, to raise the number of Indian tourists visiting Spain. • Result-orientation:increased appearances in catalogues, attracting meetings, and incentive trips. • 2005 Budget: Advertising: 100,000 euros • Promotion: 81,000 euros • Priority segments:incentive tourism and congresses, cultural tourism.
Marketing backup actions Direct marketing in city tourism. Presentations at workshops in various Indian cities. Backing for the development of direct air routes to and from Spain. TOURISM • Image and communication: • Launch of an advertising campaign targeting city tourism. • Media and Internet activities.
THE INDIA CMDP BUDGET CMDP ACTION IN INDIA 2005-2007 TRADE BACKUP 1,000,000 INFORMATION AND TRAINING ICEX-PROMOTION 3,000,000 INVESTMENT BACKUP COFIDES 15,000,000 INVESTMENT BACKUP ICEX 1,100,000 BACKUP FOR TOURISM 600,000 TOTAL 20,700,000