Spotlight : Auto Components Making Headlines ... The Indian auto-components industry has experienced healthy growth over the last few years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. Click for More Details To remove your name from our mailing list, please click here . Questions or comments? E-mail us or call us. Making Headlines... 1 Bilateral Beat 2-4 Spotlight 5-6 Making News in India 7-8 Indian Economy 9-10 Indian & SL Trade Queries 11-20 Indian & SL Trade Fairs 21-22 Useful Links 23 Economic & Commercial Wing High Commission of India 36-38, Galle Face Road Colombo-3, Sri Lanka Mr. Kartik Pande, First Secretary (E & C) Tel: +94-11-2430560 Fax: +94-11-2399287 [email protected]Mr. Niteen Yeola, Second Secy. Tel: +94-11-2335552 Fax: +94-11-2446403 [email protected]Website: www.hcicolombo.org In this issue….. India—Connects: The Economic and Business Newsletter March - April 2016 High Commission of India, Colombo Contact Us….. Spotlight: Auto Components Signing of Buyer's Credit Agreements on water supply projects Export-Import Bank of India (Exim Bank) on March 08, 2016 signed Buyer's Credit Agreements, under National Export Insurance Account (BC-NEIA) amounting to US$ 403.01 million with National Water Supply and Drainage Board (NWSDB) of Sri Lanka in Colombo, for financing the following three water supply projects: (a) Aluthgama, Mathugama and Agalawatta Integrated Water Supply Project; (b) Polgahawela, Pothuhera and Alawwa Integrated Water Supply Project; and (c) Kundesale, Haragama Water Supply Project The agreements were signed by Mr. Yaduvendra Mathur, Chairman and Managing Director (CMD), on behalf of Exim Bank and Eng. Kuddoos Alahudeen Ansar, Chairman, NWSDB and Mr. Mohamed Shafeek Rajabdeen, Vice Chairman, NWSDB, Sri Lanka in the presence of Minister of City Planning and Water Supply of Sri Lanka, Hon'ble Rauf Hakeem, High Commissioner of India, H.E. Y.K. Sinha and senior officials of the Government of Sri Lanka. Speaking on the occasion, Minister Rauff Hakeem expressed satisfaction at the conclusion of these agreements and thanked the Government of India for financing the three water supply projects, adding that the projects would supply potable water to nearly one million people. CMD, EXIM Bank thanked the High Commission for facilitating the conclusion of these Buyer's Credit agreements and reiterated EXIM Bank's commitment to finance further projects in Sri Lanka. Under the Buyer's Credit portfolio, EXIM Bank has already extended credit amounting to nearly US$ 185 million to Sri Lanka for water supply and other projects. Joint celebration of ITEC & International Students Day 15 March 2016 Next Page
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Spotlight: Auto Components
Making Headlines ...
The Indian auto-components industry has experienced healthy growth over the last few years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. Click for More Details
To remove your name from our mailing list, please click here. Questions or comments? E-mail us or call us.
Making Headlines... 1
Bilateral Beat 2-4
Spotlight 5-6
Making News in India 7-8
Indian Economy 9-10
Indian & SL Trade Queries 11-20
Indian & SL Trade Fairs 21-22
Useful Links 23
Economic & Commercial Wing High Commission of India 36-38, Galle Face Road Colombo-3, Sri Lanka Mr. Kartik Pande, First Secretary (E & C) Tel: +94-11-2430560 Fax: +94-11-2399287 [email protected] Mr. Niteen Yeola, Second Secy. Tel: +94-11-2335552 Fax: +94-11-2446403 [email protected] Website: www.hcicolombo.org
In this issue…..
India—Connects: The Economic and Business Newsletter
March - April 2016
High Commission of India, Colombo
Contact Us…..
Spotlight: Auto Components
Signing of Buyer's Credit Agreements on water supply projects Export-Import Bank of India (Exim Bank) on March 08, 2016 signed Buyer's Credit Agreements, under National Export Insurance Account (BC-NEIA) amounting to US$ 403.01 million with National Water Supply and Drainage Board (NWSDB) of Sri Lanka in Colombo, for financing the following three water supply projects: (a) Aluthgama, Mathugama and Agalawatta Integrated Water Supply Project; (b) Polgahawela, Pothuhera and Alawwa Integrated Water Supply Project; and (c) Kundesale, Haragama Water Supply Project The agreements were signed by Mr. Yaduvendra Mathur, Chairman and Managing Director (CMD), on behalf of Exim Bank and Eng. Kuddoos Alahudeen Ansar, Chairman, NWSDB and Mr. Mohamed Shafeek Rajabdeen, Vice Chairman, NWSDB, Sri Lanka in the presence of Minister of City Planning and Water Supply of Sri Lanka, Hon'ble Rauf Hakeem, High Commissioner of India, H.E. Y.K. Sinha and senior officials of the Government of Sri Lanka.
Speaking on the occasion, Minister Rauff Hakeem expressed satisfaction at the conclusion of these agreements and thanked the Government of India for financing the three water supply projects, adding that the projects would supply potable water to nearly one million people. CMD, EXIM Bank thanked the High Commission for facilitating the conclusion of these Buyer's Credit agreements and reiterated EXIM Bank's commitment to finance further projects in Sri Lanka.
Under the Buyer's Credit portfolio, EXIM Bank has already extended credit amounting to nearly US$ 185 million to Sri Lanka for water supply and other projects.
Joint celebration of ITEC & International Students Day
Joint celebration of ITEC & International Students Day The ITEC beneficiaries and Sri Lankan students who studied in India under various scholarship schemes of the Government of India gathered to celebrate Indian Technical & Economic Cooperation Day (ITEC Day) and the 'International Students Day' at Hotel Taj Samudra, Colombo on 15 March 2016. Hon'ble Dr Sarath Amunugama, Minister for Special Assignments, Government of Sri Lanka, graced the occasion as the Chief Guest. High Commissioner of India to Sri Lanka H.E. Mr. Y. K. Sinha was also present. About 300 alumni of Indian educational and training institutions, coming from various parts of Sri Lanka, attended the function. Speaking on the occasion, Hon'ble Dr Sarath Amunugama, appreciated India´s valuable scholarship assistance for Sri Lankan nationals and acknowledged that these educational and technical scholarships helped bridge the gap between demand and supply for such programmes in Sri Lanka, as well as in meeting the increasing aspirations of the people. In his address, High Commissioner Mr. Y. K. Sinha, thanked the Hon'ble Minister for gracing the function as the Chief Guest and appreciated the large turnout of participants who had come from all over Sri Lanka. He noted that India-Sri Lanka cooperation in the field of education had a long history. At present, India offered more than 270 scholarships to Sri Lanka students to study in India and 500 scholarships under the CEWET and the Mahatma Gandhi scheme for students studying in Sri Lanka. The High Commissioner conveyed that ITEC, initiated in 1964 as India's bilateral programme of assistance, was being constantly re-designed and refocused, based on the evolving needs of India's partners, including Sri Lanka. He added that Sri Lanka was the one of topmost partner countries of ITEC, with officials going for training in over 100 courses. High Commissioner also announced that Government of India has increased the slots from 205 to 225 for Sri Lanka, for this year. Government of India awards contract to establish Rabindranath Tagore Memorial Auditorium
in the University of Ruhuna, Matara
As part of its Development Partnership with Sri Lanka in the field of higher education, the Government of India is undertaking a project to set up the Rabindranath Tagore Memorial Auditorium in the University of Ruhuna, Matara at a cost of SLR 265 million. Following a process of competitive bidding, a contract to construct the building complex was signed on March 17, 2016 with M/s. Link Engineering (Pvt.) Ltd in the presence of Mr. Y.K. Sinha, High Commissioner of India; Mr. D.G.M.V. Hapuarachchi, State Secretary, Ministry of Higher Education; Prof. Gamini Senanayake, Vice-Chancellor, University of Ruhuna; Dr. A M N Alagiyawanna, Deputy Vice Chancellor, University of Ruhuna; Mr. T. M. Rihan, Assistant Director, Department of External Resources and other officials of the Government of Sri Lanka. The auditorium will reflect the close cultural links that bind India and Sri Lanka as well as cater to the needs of the students of the University of Ruhuna and the people of the Southern Province. The auditorium will have well equipped theatre facilities with 1500 seating capacity, constructed in an area of about 3000 sqm. The auditorium can also be a venue for hosting international conventions, conferences and symposiums as well as training programmes. The project is being implemented in close consultation with the Ministry of Higher Education of Sri Lanka.
BILATERAL BEAT
INDEE Sri Lanka 2016 INDEE Sri Lanka 2016; a mega three-day exhibition of machinery, industrial supplies and technology was successfully organized during 18-20 March 2016 at BMICH by the Engineering Export Promotion Council of India (EEPC). Hon’ble Nimal Siripala de Silva, Minister of Sri Lanka for Transport and Aviation was the Chief Guest at the inauguration Ceremony. H.E Shri Y K Sinha, High Commissioner of India to Sri Lanka was the Guest of Honor. Three MoUs were signed in the presence of Hon'ble Minister and the High Commissioner between EEPC India and the following organisations: 1. National Chamber of Commerce & Industry of Sri Lanka 2. Ceylon National Chamber of Industries, Colombo 3. Federation of Chambers of Commerce & Industry of Sri Lanka High Commissioner, H.E. Y.K. Sinha noted Trading relationships between India and Sri Lanka go back almost 2500 years. India is Sri Lanka’s largest trading partner at present, and Sri Lanka is India’s largest trade partner in the SAARC region. He stated that as a result of the India Sri Lanka Free Trade Agreement signed in 2000, trade between the two countries touched the volume of US$ 4.7 billion last year (Indian exports account to US$ 4 billion while Sri Lankan exports account to US$ 645 million). There were 90 exhibitors participated in the exhibition including Tata Motors, Mahindra, TAFE, CRI Pumps etc. The event showcased a wide range of sectors such as passenger and commercial vehicles, automotive components, lifting and mining machinery, domestic appliances, pumps, basic metals and products.
India After Market Auto Show
Automotive Component Manufacturers Association (ACMA) in partnership with Sri Lanka Automotive Component Manufacturing Association (SLACMA) with support from High Commission of India, held a buyer-seller meet in Colombo on 29 March in which a large contingent of Indian auto component manufacturers participated. Hon’ble Minister of Finance of Sri Lanka Ravi Karunayake visited the meet and interacted with Indian companies. A seminar on Indian Auto Industry-Opportunities & Challenges was organized by ACMA in collaboration with High Commission of India.
Ground Zero Summit
A cyber security conference ‘Ground Zero Summit’ was organised in Colombo by India Infosec Consortium on 7 April 2016. Minister of Telecommunication & Digital Infrastructure of Sri Lanka, Hon’ble Harin Fernando was the Chief Guest and the H.E. Y.K. Sinha, High Commissioner of India was the Guest of Honour. High Commissioner highlighted the importance of cooperation between Sri Lanka and India in the field of IT and IT enabled services industries.
India’s Hero Cycles Ltd Local media reported that Hero Cycles Ltd has acquired a majority stake in Sri Lanka based bike exporter BSH Ventures Ltd. As per reports, Hero Cycles Ltd was exploring options of exporting their products to EU region from Sri Lanka.
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Bilateral Trade with India Bilateral trade turnover amounted to nearly US$ 1.1 billion during the period January-March 2016. During this period Sri Lanka's exports to India were about US$ 146.37 million, and imports from India were about US$ 953.71 million. During the month of March 2016, Sri Lanka's exports to India were about US$ 68.61 million; and imports from India were about US$ 360.12 million. India’s share in Sri Lanka’s global imports & exports was 22.53% and 7.36% respectively. Source: Sri Lanka Customs, www.customs.gov.lk
Tourist Arrivals from India to Sri Lanka
The total number of tourist arrivals from India to Sri Lanka during January-April 2016 was 111,514 i.e. approximately 15.46% of the total tourist arrival into Sri Lanka. During the month of April 2016, 25,890 Indian tourists visited Sri Lanka as against 23,048 in the corresponding period of the previous year, an increase of 12.3%. Figures from the Sri Lanka Tourism Development Authority indicate that during April 2016 the main sources of tourist arrivals (25,890) were from India followed by China (18,972), UK (12,006) and Germany (8,065). Source: Sri Lanka Tourism Development Board, www.sltda.gov.lk
The auto-components industry accounts for almost seven per cent of India’s Gross Domestic Product (GDP) and employs as many as 19 million people, both directly and indirectly. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in infrastructure have made India a favourable destination for investment.
Market Size
The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the Original Equipment Manufacturers (OEMs) and consists of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category.
Over the last decade, the automotive components industry has scaled three times to US$ 40 billion in 2015 while exports have grown even faster to US$ 11 billion. This has been driven by strong growth in the domestic market and increasing globalisation (including exports) of several Indian suppliers.
According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports ranging between US$ 80- US$ 100 billion by 2026, from the current US$ 11.2 billion.
Investments
The cumulative Foreign Direct Investment (FDI) inflows into the Indian automobile industry during the period April 2000 – December 2015 were recorded at US$ 14.32 billion, as per data by the Department of Industrial Policy and Promotion (DIPP). Some of the major investments made into the Indian auto components sector are as follows:
Auto components maker Bharat Forge Ltd (BFL), the flagship company of the US$ 3 billion Kalyani Group, has formalised agreement with Rolls-Royce Plc which will supply BFL with critical and high integrity forged and machined components
Canada’s Magna International Incorporated has started production at two facilities in Gujarat’s Sanand, which will supply auto parts to Ford Motor Co in India
Everstone Capital, a Singapore-based private equity (PE) firm, has purchased 51 per cent in Indian auto components maker SJS Enterprises for an estimated Rs 350 crore (US$ 51.35 million).
ArcelorMittal signed a joint venture agreement with Steel Authority of India Ltd (SAIL) to establish an automotive steel manufacturing facility in India.
German auto components maker Bosch Ltd opened its new factory at Bidadi, near Bengaluru, which is its fifth manufacturing plant in Karnataka. The company has also signed a memorandum of understanding (MoU) with Indian Institute of Science (IISc), Bengaluru with a view to strengthen Bosch’s research and development in areas including mobility and healthcare thereby driving innovation for India-centric requirements.
French tyre manufacturer Michelin announced plans to produce 16,000 tonnes of truck and bus tyres from its Indian facility this year, a 45 per cent rise from last year.
Amtek Auto Ltd acquired Germany-based Scholz Edelstahl GmbH through its 100 per cent Singapore-based subsidiary Amtek Precision Engineering Pte Ltd.
MRF Ltd plans to invest Rs 4,500 crore (US$ 660.231 million) in its two factories in Tamil Nadu as part of its expansion plan.
Spotlight Continues: Auto Components
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German luxury car maker Bayerische Motoren Werke AG’s ( BMW ’s) announced it will start sourcing parts from at least seven India-based auto parts makers in response to promote ‘Make in India’.
Hero MotoCorp is investing Rs 5,000 crore (US$ 733.59 million) in five manufacturing facilities across India, Colombia and Bangladesh, to increase its annual production capacity to 12 million units by 2020.
Government Initiatives
The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring growth for the sector. It is expected that this sector's contribution to the GDP will reach US$ 145 billion in 2016 due to the government’s special focus on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto components. Separately, the deregulation of FDI in this sector has also helped foreign companies to make large investments in India.
Road Ahead
The rapidly globalising world is opening up newer avenues for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt to the change via systematic research and development. The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-component makers are well positioned to benefit from the globalisation of the sector as exports potential could be increased by up to four times to US$ 40 billion by 2020.
India, Bangladesh signs agreement on oil pipeline:
India and Bangladesh have signed a memorandum of understanding to construct a pipeline for supply of high speed diesel, it was announced. “Numaligarh Refinery Limited (NRL) and Bangladesh Petroleum Corporation (BPC) are working on details for the envisaged project of supply of high speed diesel (HSD) from Numaligarh (in Assam) to Parbatipur in Bangladesh for a period of 20 years under a JV project between NRL and BPC,” external affairs ministry spokesman Vikas Swarup said at a media briefing. The product would be transported through a pipeline of approximately 135 km of which 130 km will be in Bangladesh and five km in India,” he said. The pipeline would run from Siliguri in West Bengal to Parbatipur in Bangladesh. The decision to construct the pipeline was taken during Prime Minister Shri Narendra Modi’s visit to Dhaka in June 2015.
Xiaomi's Barra says looking to step up manufacturing in India:
Xiaomi Technology India Pvt. Ltd, the local unit of China’s biggest mobile phone maker, said that the company was ramping up its manufacturing plans rapidly and that 75% of the phones it sells in India are already being made locally. In August, Xiaomi together with Taiwanese contract manufacturer Foxconn Technology Group started assembling phones locally in Chittoor district of Andhra Pradesh. Govt eyes Australia, Africa to boost textile exports:
The Union Textiles ministry was looking at Australia, the Commonwealth of Independent States and Africa to boost exports through bilateral agreements as free trade agreements (FTAs) with the European Union and the US are delayed. The Ministry was chasing a target of doubling textile exports in 10 years and was working on a new textiles policy to promote value-addition. Guidelines had been finalised for a revised Textile Upgradation Fund Scheme and these would be placed before the Cabinet, Textiles Secretary Rashmi Verma said on the sidelines of the India International Handwoven Fair in Chennai. Textile exports are unlikely to reach their 2015-16 target of US$ 47.5 billion (INRs 3.17 lakh crore) because the figure was US$ 32 billion (INRs 2.14 lakh crore) till December. Last year, India’s textile exports were US$ 42 billion (INRs 2.81 lakh crore), which was in large part cotton and yarn. Airbus eyes US$ 2 billion worth procurement from India by 2020:
Global aerospace major Airbus group plans to procure components and sub-systems worth US$ 2 billion per annum by 2020 for its civil and defence projects, up from US$ 500 million in 2015, the French consortium said. “We have set our sight to exceed US$ 2 billion in cumulative procurement annually by 2020 from over US$ 500 million worth aerospace goods in 2015 for civil and defence projects,” the Indian arm of the Airbus said in a statement. Procurement value increased 15 percent in 2015 over that of 2014.
India signs loan agreement with the World Bank:
An agreement for IDA Credit of US$ 35 million from World bank for “Madhya Pradesh Citizen Access to Responsive Services Project” was signed by Ministry of Finance and Mr. Onno Ruhl, Country Director, World Bank (India) on behalf of the World Bank. The project size was US$ 50 million, of which US$ 35 million will be financed by the Bank, and the remaining amount will be funded out of State Budget. The project duration was 5 years. The objective of the project was to improve access and quality of public services in Madhya Pradesh.
Easing norms for exim trade The Central Board of Excise and Customs has developed an 'integrated declaration' to incorporate all the information required for import clearance by various government agencies into the electronic format of the bill of entry.
Making News in India
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Foreign direct investment up 29% under Make in India: Foreign direct investment (FDI) in the country increased by 29% for the 15-month period ended December last year after the launch of the Make in India initiative, Parliament was informed. Launched on 25 September 2014, the initiative aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. “FDI inflow has increased 29% during October 2014 to December 2015 (15 months after Make in India was launched) compared to the 15-month period prior to the launch of this initiative,” Commerce and Industry Minister Nirmala Sitharaman said. Saudi Aramco looking to invest in India Saudi Aramco, the world's leading oil producing company with around 10 million barrels per day output, was looking at India as its number one target for investment. This was conveyed to Prime Minister Shri Narendra Modi by Saudi Aramco head Khalid Al Falih during their meeting. The Dhahran-based company, which owns a stake in a refinery in China's Fujian province along with Exxon Mobil Corp. and China Petroleum & Chemical Corp, was reported to be planning to establish a US$ 2 trillion sovereign wealth fund by offloading a stake of less than 5 percent in the company. India ranked 6th in top 10 largest manufacturers list: UN report A UNIDO report ranked India sixth among the world’s 10 largest manufacturing countries, up by three positions. India previously held the 9th rank. The Yearbook, published by the United Nations Industrial Development Organization (UNIDO), found that in India, the Manufacturing Value Added (MVA) grew by 7.6% in 2015 compared to the previous year. It also said that the quarterly index of industrial production (IIP) shows 1% growth of manufacturing output in the fourth quarter of 2015 compared to the same period of the previous year. “India is now the sixth largest manufacturer in the world,” the report said. Export of coconut and coconut products: The export of coconut and coconut products (excluding coir and coir products) have touched a new high of INRs 1450.24 crore in 2015-16. The shipments have shown a rise of around 11 per cent from a year earlier. The past few years have seen significant growth in the exports of coconut and coconut products. The volume and value in the export of coconut oil, desiccated coconut and activated carbon have shown a significant increase. Service sector growing at 10% annually: The service sector contributed about 61% of India's GDP in 2014-15, according to a joint report by CII-KPMG. The services sector was increasingly becoming critical to the development trajectory of a country, especially since the World Bank found that the sector's contribution in poverty alleviation is greater than that of agriculture and manufacturing. The report said the Indian service sector is growing strongly at approximately 10% per annum, making India the second fastest growing services economy in the world. India's share in global services exports was 3.2% in 2014-15, double that of its merchandise exports in global merchandise exports at 1.7%, placing India in the eighth place currently among the top ten exporters of service in the world. MoU signed between Railways and ISRO for remote sensing and GIS Railways have recently signed Memorandum of Understanding (MoU) with Indian Space Research Organisation (ISRO) for developing applications in the field of Remote Sensing and Geographic Information System. The aims and objectives of the MoU was to develop applications and services in tune with the requirements of Indian Railways such as:- i) Develop an advance warning system at Unmanned Railway Crossings for road users. ii) Mapping of Indian Railway assets through Geospatial technology. iii) Develop paperless unreserved ticketing solution based on geofencing of station area. iv) Developing Real Time Train Information System by using Communication Satellite Services.
India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). According to the Economic Survey 2015-16, the Indian economy will continue to grow more than 7 per cent in 2016-17. The improvement in India’s economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms, RBI's inflation focus supported by benign global commodity prices.
India was ranked the highest globally in terms of consumer confidence during October-December
quarter of 2015, continuing its earlier trend of being ranked the highest during first three quarters of 2015, as per the global consumer confidence index.
Market size
According to IMF World Economic Outlook Update (January 2016), Indian economy is expected to grow at 7-7.75 per cent during FY 2016-17, despite the uncertainties in the global market. The Economic Survey 2015-16 had forecasted that the Indian economy will growing by more than seven per cent for the third successive year 2016-17 and can start growing at eight per cent or more in next two years. Foreign direct investment (FDI) in India have increased by 29 per cent during October 2014-December 2015 period post the launch of Make in India campaign, compared to the 15-month period before the launch.
The steps taken by the government in recent times have shown positive results as India's gross
domestic product (GDP) at factor cost at constant (2011-12) prices 2015-16 is INRs 113.5 trillion (US$ 1.668 trillion), as against INRs 105.5 trillion (US$ 1.55 trillion) in 2014-15, registering a growth rate of 7.6 per cent. The economic activities which witnessed significant growth were ‘financing, insurance, real estate and business services’ at 11.5 per cent and ‘trade, hotels, transport, communication services’ at 10.7 per cent. Recent Developments
With the improvement in the economic scenario, there have been various investments leading to
increased Mergers & Acquisitions (M&A) activity. Some of them are as follows: India has emerged as one of the strongest performers with respect to deals across the world in terms
of Mergers and Acquisitions (M&A). The total transaction value of M&A involving Indian companies stood at US$ 26.3 billion with 930 deals in 2015 as against US$ 29.4 billion involving 870 deals in 2014. Also, Private equity (PE) investments increased 86 per cent y-o-y to US$ 1.43 billion.
Total private equity (PE) investments in India for 2015 reached a record high of US$ 19.5 billion
through 159 deals, according to the PwC MoneyTree India report. According to The World Bank, India's per capita income is expected to cross INRs 100,000 (US$ 1,505.4) in FY 2017 from INRs 93,231 (US$ 1,403.5) in FY 2016. Government Initiatives
Numerous foreign companies are setting up their facilities in India on account of various government
initiatives like Make in India and Digital India. Prime Minister of India, Shri Narendra Modi, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy. This initiative is expected to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy.
Currently, the manufacturing sector in India contributes over 15 per cent of the GDP. The Government
of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP. Following the government’s initiatives several plans for investment have been undertaken which are as follows:
INDIAN ECONOMY
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The Union Cabinet has approved the introduction of several short term (within one year) and medium term measures (within two years) to be implemented by government ministries, departments & organisations for promotion of payments through cards & digital means, & to reduce cash transactions.
Government of India has prioritised sustainability as the key aspect of India’s development. To achieve this, the government aims to encourage education, skill development, digital connectivity and entrepreneurship in a sustainable manner.
Prime Minister of India Shri Narendra Modi announced at the International Monetary Fund (IMF) conference on ‘Advancing Asia: Investing for the Future’ in New Delhi that the government will continue to bring in new reforms for transforming economy without resorting to undervaluing its exchange rate to boost trade.
The Government of India plans to build five new railway links with Nepal, which will boost India's economic links with its neighbouring country and promote growth, employment & prosperity in the region.
India has signed a loan agreement worth US$ 35 million with the World Bank for Madhya Pradesh Citizen Access to Responsive Services Project which aims to improve access and quality of public services in Madhya Pradesh through implementation of the 2010 Public Service Delivery Guarantee Act.
Government of India plans to create a National Investment Grid to map business opportunities across the country which will make it easier for investors, especially domestic investors, to access and explore investment opportunities.
Prime Minister of India, Shri Narendra Modi, launched the Start-up India initiative and unveiled the Start-up Action Plan which includes creation of a dedicated Start-up fund worth INRs 10,000 crore (US$ 1.47 billion) apart from other incentives like no tax on profits for first three years and relaxed labour laws.
British telecom giant Vodafone, India's second largest telecom operator, plans to invest over INRs 13,000 crore (US$ 1.91 billion) in India, to upgrade and expand its network and also for its payments bank operations.
Chinese smartphone handset maker, Vivo, has set up an assembly unit in India at Greater Noida which will initially manufacture 150,000 smartphone units a month, to produce three smartphone models, namely Y11, Y21 and Y15S.
Foxconn Technology group, Taiwan’s electronics manufacturer, is planning to manufacture Apple iPhones in India. Besides, Foxconn aims to establish 10-12 facilities in India including data centers and factories by 2020.
Hyderabad is set to become the mobile phone manufacturing hub in India and is expected to create 150,000 – 200,000 jobs. Besides, the Telangana Government aims to double IT exports to INRs 1.2 trillion (US$ 17.61 billion) by 2019.
General Motors plans to invest US$1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
Hyundai Heavy Industries (HHI) and Hindustan Shipyard Ltd have joined hands to build warships in India. Besides, Samsung Heavy Industries and Kochi Shipyard will be making Liquefied Natural Gas (LNG) tankers.
Road Ahead
The International Monetary Fund (IMF) and the Moody’s Investors Service have forecasted that India
will witness a GDP growth rate of 7.5 per cent in 2016, due to improved investor confidence, lower food prices and better policy reforms. Besides, according to mid-year update of United Nations World Economic Situation and Prospects, India is expected to grow at 7.6 per cent in 2015 and at 7.7 per cent in 2016.
As per the latest Global Economic Prospects (GEP) report by World Bank, India is leading The World
Bank’s growth chart for major economies. The Bank believes India to become the fastest growing major economy by 2015, growing at 7.5 per cent. According to Hon’ble Jayant Sinha, Minister of State for Finance, Indian economy would continue to grow at 7 to 9 per cent and would double in size to US$ 4–5 trillion in a decade, becoming the third largest economy in absolute terms. Furthermore, initiatives like Make in India and Digital India will play a vital role in the driving the Indian economy. Source: www.ibef.org
1 “Professional Educational Fair” is being organized from 28-29 May 2016 at Pragati Maidan, New Delhi
M/s SS Exhibitions & Media Pvt. Ltd. 130, 1st Floor, Charmwood Plaza, Charmwood, Eros Garden Surajkund Road, Faridabad- 121009, Haryana E-mail: [email protected] Website: www.professionaleducationfair.com
2 “4th Oil Spill India 2016” is being organ-ized from 11-12 August 2016 at JW Marriott, Sahar, Mumbai
Mr. Manoj Kumar Project Head Oil Spill India 2016 Tel: +91-9871238544 E-mail: [email protected]
3 “Source India/RBSM (Buyer-Seller Meets)” is being organized from 13-14 August 2016 in Hotel Grand Bhagwati, Surat
Mr. V. Anil Kumar Executive Director The Synthetic & Rayon Textiles Export Promotion Council Resham Bhavan, 78, Veer Nariman Road, Mumbai-400020 Tel: +91-22-22048797/ 22048690 Fax: +91-22-22048358/ 22810091 E-mail: [email protected] Website: www.srtepc.org
4 “10th India International Fashion Jewel-lery & Accessories Show (IIFJAS)” is be-ing organized from 20-23 August 2016 at Bombay Exhibition Centre, Goregaon, Mum-bai
5 “Advantage Healthcare India 2016” is be-ing organized from 3-5 October 2016 at India Expo Centre & Mart, Greater Noida
Mr. Praveen Kumar Mittal Additional Director Federation of Indian Chambers of Commerce and Industry (FICCI), Federation House, Tansen Marg, New Delhi-110001 Tel: +91-11-23738760 Mobile: +91-9873311557 (Mr. Sudhanshu Gupta) E-mail: [email protected] Website: www.ficci.com
6 “Broadcast India Show 2016” is being or-ganized from 20-22 October 2016 at the Bombay Exhibition Center, Goregaon (E) Mumbai by Saicom Trade Fairs and Exhibi-tion Pvt. Ltd
Mr. Ramesh Meer Managing Director Saicom Trade Fairs & Exhibitions Pvt. Ltd. 148, Admiralty House, Mumbai-400005 Tel: +91-22-22151396/ 22152721 E-mail: [email protected][email protected] Website: www.broadcastindiashow.com
UPCOMING SRI LANKAN TRADE FAIRS AND BUSINESS EVENTS
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S. No Events Contact Details
1 “Build SL - Construction & Regenerating Expo 2016” is being organized from 27-29 May 2016 at The Bandaranaike Memorial International Conference Hall (BMICH), Co-lombo
Mr. Prasad Perera Chamber of Construction Industry of Sri Lanka 129/6A, Nawala Road, Colombo-05 Tel: +94-11-2368314/ 2369544/ 3050810 Mobile: +94-722122709 Fax: +94-11-2368314 E-mail: [email protected] Website: www.buildSL.com
2 “Kedella Exhibition” is being organized from 3-5 June 2016 at The Bandaranaike Memorial International Conference Hall (BMICH), Colombo
Mr. Amila De Silva CEC Events (Pvt) Ltd 252 A, Galle Road, Colombo-04 Tel: +94-11-4380380 Mobile: +94-773124605
3 “AISEX - Apparel Industry Suppliers Exhi-bition” is being organized from 9-11 June 2016 at The Bandaranaike Memorial Interna-tional Conference Hall (BMICH), Colombo
Mr. Rex Jayawardena Asst. Manager Sales MP Events Lanka 12, D R. Wijewardena Mawatha, Colombo-10 Tel: +94-11-2343240 Mobile: +94-773070401 Fax: +94-11-2343237 E-mail: [email protected] Website: www.pico.lk
4 “INCO 2016” is being organized from 24-26 June 2016 at The Bandaranaike Memorial International Conference Hall (BMICH), Co-lombo by Incorporated Engineers of Sri Lanka
Mr. Tilakaratne Incorporated Engineers of Sri Lanka INCO Secretariat, Oceanica Tower, No. 490, Galle Road, Colombo-03 Tel: +94-11-4736708 Mobile: +94-777741073/ 727741073 Fax: +94-11-4734298 E-mail: [email protected] Website: www.inco.lk
5 “Home & You Lifestyle Fair 2016” is being organized from 1-3 July 2016 at The Banda-ranaike Memorial International Conference Hall (BMICH), Colombo
6 “Arogya 2016 – International Ayurvedic Exhibition” is being organized from 8-10 July 2016 at The Bandaranaike Memorial International Conference Hall (BMICH), Co-lombo
Mr. Bandula Dissanayake Secretary General/ CEO The National Chamber of Commerce of Sri Lanka 450, D. R. Wijewardena Mawatha, Colombo-10 Tel: +94-11-4741788/ 4741984 Fax: +94-11-2689596/ 2689603 E-mail: [email protected] (Mr. Devi Emmanuel - Event Co-ordinator ) Mobile: +94-773678728/ 719070700
National Portal of India http://www.india.gov.in Confederation of Indian Industry (CII) http://www.cii.in Federation of Indian Chambers of Commerce & Industry (FICCI) http://www.ficci.com Associated Chambers of Commerce and Industry of India (ASSOCHAM) http://www.assocham.org National Association of Software & Service Companies http://www.nasscom.in Department of Industrial Policy & Promotion http://dipp.nic.in India Brand Equity Foundation http://www.ibef.org Ministry of Overseas Indian Affairs http://moia.gov.in Overseas Indian Facilitation Centre (OIFC) http://www.oifc.in Invest India http://www.investindia.gov.in/ Reserve Bank of India (RBI) http://www.rbi.org.in Ministry of Commerce & Industry (Deptt of Commerce) http://commerce.gov.in/ Ministry of Corporate Affairs (to register and check status of a company) http://www.mca.gov.in/ Ministry of Finance www.finmin.nic.in Central Board of Excise & Customs (Customs tariffs) www.cbec.gov.in Income Tax Department http://www.incometaxindia.gov.in Directorate General of Foreign Trade (Trade Complaints) http://dgft.delhi.nic.in India Trade Promotion Organisation (ITPO) http://www.indiatradefair.com/ Federation of Indian Export Organisations (FIEO) https://www.fieo.org/ National Centre for Trade Information (NCTI) http://www.ncti.gov.in/ Indian Council of Arbitration http://www.icaindia.co.in/ Export Credit Guarantee Corporation (ECGC) http://www.ecgcindia.in/ Export Import Bank of India http://www.eximbankindia.in/ Export Inspection Council of India http://www.eicindia.gov.in/ The State Trading Corporation of India Ltd. http://www.stc.gov.in/ India Credit Rating Agency Ltd (ICRA) http://www.icra.in/ Credit Rating & Information Services India Limited (CRISIL) http://www.crisil.com/ Engineering Export Promotion Council of India http://www.eepcindia.org Project Exports Promotion Council of India http://www.projectexports.com/ Agricultural and Processed Food Products Exports Developments Authority (APEDA) http://apeda.gov.in/ Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) https://chemexcil.in/ Pharmaceuticals Export Promotion Council of India (Pharmexcil) http://www.pharmexcil.com/ Pesticides Manufacturers & Formulators Association of India http://www.pmfai.org Chemicals and Allied Products Export Promotion Council (CAPEXIL) http://www.capexil.com The Plastics Export Promotion Council http://www.plexconcil.co.in/ Council for Leather Exports http://www.leatherindia.org Gem and Jewellery Export Promotion Council http://www.gjepc.org Cashew Export Promotion Council of India http://www.cashewindia.org Electronics & Computer Software Export Promotion Council http://www.escindia.com Apparel Export Promotion Council http://www.aepcindia.com Carpet Export Promotion Council http://www.indiancarpets.com The Cotton Textile Export Promotion Council http://www.texprocil.org Export Promotion Council for Handicrafts http://www.epch.in/ Handloom Export Promotion Council http://www.hepcindia.com/ The Indian Silk Export Promotion Council http://www.theindiansilkexportpromotioncouncil.com/ The Synthetic & Rayon Textiles Export Promotion Council www.synthetictextiles.org The Marine Products Export Development Authority (MPEDA) http://www.mpeda.com/ Rubber Board http://rubberboard.org.in/ Tea Board http://www.teaboard.gov.in/ Spices Board http://www.spicesboard.in/ or http://www.indianspices.com/ Coir Board http://coirboard.gov.in/ Indian Institute of Packaging http://iip-in.com Indian Diamond Institute http://www.diamondinstitute.net GSI India (formerly EAN-India) http://www.gs1india.org Doing Business in Sri Lanka (Handbook for Indian Business) http://www.hcicolombo.org/pdf/