India and Chile:

1. 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

2. 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

3. 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) : US$1.2 trillion (2008) • GDP (PPP) : US$ 3.267 trillion (2008) • GDP per capita (PPP): US$2,762 (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.

4. 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.

5. Predicted growth • An average economic growth rate of around 9% for three consecutive years. • Goldman Sachs’ report, India’s 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.

6. 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

7. 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

8. 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

9. Other Strengths • Independent judiciary and rule of law • Continuity in India’s 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

10. India and Chile

11. 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

12. 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.

13. 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

14. 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 US$241.7 billion. (March,2009) • Size of the economy has doubled • Poverty and Health indicators improved

15. 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.

16. Trade Figures (USD Millions)

17. Diversification needed India's Adverse Trade Balance

18. Copper Dominates Indian Imports • 92% Copper • 8% Wines, iodine, fish meals, paper pulp, apples, etc.

19. Opportunities • Telecommunication • IT • Mining • Transport • Plastics • Garments • Defense • Satellite • Pharmaceuticals

20. 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

21. 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)

22. 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 (Sep’08) • 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.

23. 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)

24. 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

25. 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

26. Showcasing India • Cultural troupe to Chile, November 2008 • India Show’2009 (ITPO) • Increase of ITEC Scholarships for study in India

27. 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.

28. 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

29. THANK YOU