International marketing

Sinhagad Institute Of Business Management,Mumbai

Presentation on India's Trade Relations with USA & Canada

Presented ByMahesh R Dongaonkar

MMM- V Sem.2011-12

Roll No 02

Contents

• Geographical Location Of Subject Countries On World Map

• PEST Analysis For India, USA & Canada• Trade Relations :• India With USA• India With Canada

Business Envionment Scanning

Country

Business Envionment Scanning

PEST ANALYSIS FOR INDIA

India: Political Enviornment Scanning

• India's Strengh – Democracy,Diversity & Dynamic

Growth

• Political trends -Single Party To Coalition Govt.

• Government Stability -Stable from last 10 Years

• Internal Political issues- Difference In Party Policies

Cont...

• Government Policies- Influnce By Vote Bank

• Strong Lobbying & Pressure Groups Influence

Trade & Related Policies

• Wars and conflict -Terrorisam & Conflict

issueswith Neighbouring Countries

India :Economical Enviornment Scanning

• Introduction Of LPG Model -1991 Onwards

• Liberlisation►Privatisation►Globalisation

• GDP by sector

• Inflation (CPI) 8.66% (April 2011)

• Populationbelow poverty line 37% (2010)

55%

29%

16%

Services

Industry

Aggriculture

Cont......

• Economical Growth is Broad Based

• Pickup In Private Consumption & Investment

• Agriculture is Critical For Macro Economic Stability

& Sustained Growth

• Inflation is Cause Of Concern

• Infrastructure a Mix Bag Of Performance

• Service Sector The Potential Growth Engine

Cont...

• Imports Slowing,Exports Gathering Pace

• Trade Deficit Set To Narrow

• Monetary Policy in Tightening Mode & Supportive Of growth

• Social Sector development with Higher Funds On Flagship Programmes Aam Aadmi

• Developing Market Economy :BRIC Group

• Political Influence On FDI Policies

• Effect Of Global Economy

Key Indicators Of Indian Economy

India :Social Enviornment Scanning• Social Structre- Family Culture

• Different Culture & Religions

• High Percentage Of Educated Work

Force

• Emerging Segments -India & Bharat In

Society

• Depression In People Concern Raised

By WHO

India:Technological Enviornment Scanning

• Shift In Mindset Of C&D To R&D

• Research funding

• Associated/dependent technologies

• Replacement technology/solutions

• Maturity of technology

Cont...

Manufacturing maturity and capacity

Information and communications

Consumer buying mechanisms/technology

Technology legislation

Technology access, licensing, patents

Intellectual property issues

India-Environmental Scanning

Environmental issues

International

National

Local

Environmental regulations

Business Envionment Scanning

PEST ANALYSIS FOR USA

USA:PoliticalEnviornment Scanning

Political trends

Government structures

Acting As World Political Leader

Inter-country relationships/attitudes

Wars With Countries

Terrorist Activities- Cause & Concerns

Strong Market lobbying & Pressure groups

USA– Economical Enviornment Scanning

Home economy situation In Debt Crises

Epicentre Of World Economic Crises

Strong Influence On World Economies & Trades

Low Saving & High Expenditure Attitude

Strong Currency Value- US $

Strong Hold On International FinancialInstitutions

Contd....

Disposable income - High

Job Growth/unemployment-High

Subsidies & Tariffs

Inflation

USA-Social Enviornment Scanning

Mixed Culture

Sensitive On Human Rights

Strong Social Security System

Less Focus & Expensive Education System

Less Saving & High Expenditure Habits

USA Economy Key Indicators

USA:Technological Enviornment Scanning

• Advanced Technological Environment

• Innovation & Implementation Attitude

• Availability Of Good Infrastructure

• High Expenditure On Research

• Attracting Best Talent Pool From World

• High Rate of obsolescence

USA : Enviornment Scanning

Strong Regulators on Environmental regulations

Sensitive On Ecological Environment Issues

Leader In Creating Hazardous Wastes

Business Envionment Scanning

PEST ANALYSIS FOR CANADA

Government Struture : Constitutional Monarchy

Multiparty System But Stable Govenment

Dual Political Culture

Canada:PoliticalEnviornmentScanning

Canada:Economical Enviornment Scanning

One Of The Wealthiest Nation in World

GDP Segmentation

Service Setor 70 %

Industry 28 %

Agriculture 2%

Cont...

Strong Influnce Of USA Economy

Aprox 15 % Population Below Poverty Line

Attractive Destination For Industries

Conservative Banking System

Canada:SocialEnviornmentScanning

Male Dominated Social System

Aprox. 50 % is Middle Class

Literacy Rate is 99 %

Education Plays Vital Role

Low Crime Rate

Aging population

Canada:Enviornment Scanning

Climate Change In Some Regions

Vulnerable to environmental degradation

and Pollution spillover

Strong in Natural Resources.

Canada:Technolical Enviornment Scanning

Robust communication infrastructure

Modernization Program In Process

INDIA'S TRADE RELATIONS

Trdae Relation With USA

In 1991,U.S identified India as one of the 10 major emerging markets.

India-US Bilateral Trade Is Increasing .

US is the destination of one-fifth of India’s exports.

India's percentage share in US imports has remained more or less stable over the last few years.

Bilateral Relationships

Civil Nuclear Cooperation

U.S. Generalized System of Preferences

U.S.-India Economic Dialogue

Verified & Trusted End User Program

U.S.-India Trade Policy Forum To Promote

Trade

Multilateral Relationships:

WTO,IMF,Asian Development Bank

U S and India also oppose each other in

Regional Free Trade Agreements

Major Items Export from India to USA

Diamonds & precious stones 29%

Textiles-25%

Iron & Steel-5.73%

Organic Chemicals-3.46%

Electrical Machinery-3.24%

Major Items Exports from USA to India

India -USA Trade At A Glance

India – USA Trade Barriers US Department of Commerce Imposed

Restrictions On Exports to Indian

Organizations Like BHEL,BARC etc.

Strict Export Licensing With USA

Imposition Of Sanctions After India's

Nuclear Tests.

US Removed GSP Benefits To Large

Number Of Indian Products

Intellectual Property Rights Issue

Opportinities

Communication infrastructure, IT, IT-enabled services

Pharmaceuticals and Biotechnology.

Energy & Retail Sectors

Aggriculure

Service Industries

RecommendationsReview Of US Govt. Clause Of “Buy American”

Relooking Of Tax Breaks To US Companies

Outsorcing Activities Imposed By US Govt.

India's FDI Policies Needs To Review

India Adhering US Norms On Agriculttre & Pharma

Produts

Review Of Subsidy & Tarrif Norms Of Both

Countries

Trdae Relation With Canada

India's Trading With Canda is very Low

India Imports 0.53 % of Total Canda's Export

India Exports 0.54 % Of Total Canda's Import

Bilateral Trade Classifications

% %

Organic chemicals 13.24 20.61

9.5Fertilizers 16.3

6.74 14.72

6.57 8.22

5.5 7.38

Iron or steel articles 5.4 5.66

4.82Iron and steel 4.46

3.8 2.89

3.7Ores, slag and ash 2.59

Mineral fuels, oils 2.4 2.29

Canadian Imports from India

Canadian Exports to India

Merchandise Classification

Merchandise ClassificationEdible vegetables, roots and tubers

Pearls, precious stones or metals

Knitted or crocheted apparel

Paper and paperboard

Woven clothing and apparel articles

Boilers, mechanical appliances, etc.

Boilers, mechanical appliances, etc.

Woodpulp; paper or paperboard scraps

Pearls, precious stones or metals

Electrical machinery and equipmentOther textile articles, etc.

Electrical machinery and equipment

Pharmaceutical products

Aircraft and spacecraft

Opportunities

Opporunity For Canda In India

With its advanced technological base can become India’s natural

partner in agriculture, food processing, education, science and

technology, innovation, environment, cleaner technologies, etc.

Investment in sectors such as infrastructure, energy, mining,

health, education, communication, , information technology, etc.

Opporunity For India In Canda

India would like Canada to make use of India’s skilled and trained

manpower base and establish manufacturing units

Recomendations

India & Canda Both Decided To Increase Trade Upto 15

Billion US $ Till 2015, To Acheive This There Should Be

Efforts From Govt To Increase & Encorage Trade

Review Of Foreign Investment & Promotion Agreement Act

By Both Countries

Canda Should Relook Immigration Norms & Process For

Business Visa Applications Which is Very Slow.

Both Countries Shold Target To Increase Presence In

Economic Hub

Thank You