Georgia

International Business 2012 1

GeorgiaBY:

Mrugank ShethAnkit ModiVivek Sahay


Presentation Agenda

Introduction

Current Situation

Potential Industries


Latest War with Russia August, 2008

228 Civilians and 160 Militaries killed, 110 000 persons displaced

Civil damage 1 billion USD (8% of GDP)


US Support for War


Business Scenario

• Economic Positions• Incentive• India

Sectors• Hydro Power• Tourism• Logistic and Shipping• Banking and Finance• Infrastructure


RussiaUkraine

AzerbaijanKazakhstan

TurkeyRomania

ItalyBulgaria

FranceHungary

LatviaGEORGIA

EstoniaUK

USA

134133

10776

7468

6459

4843

3832

1210

5

Economic Freedom Index

Source: The Heritage Foundation

Bertelsmann Transformation Index

TurkmenistanUzbekistan

BelarusAzerbaijan

RussiaTajikistanMoldova

KyrgyzstanKazakhstan

ArmeniaUkraineGeorgia

LithuaniaLatvia

Estonia

121117

1109998

8887

7776

5655

2317

102

Source: ForbesSource: Bertelsmann Stiftung , 2008 (Rank out of 125 countries)

Economic Position

Source: UNCTAD

Hong Kong, ChinaBulgaria

IcelandMalta

BahamasJordan

SingaporeEstoniaGeorgia

LebanonGuyanaBahrein

BelgiumGambiaPanama

MongoliaTajikistan

CyprusMoldova

Egypt

1234567891011

1314151617181920

2345

876

915

1320

121011

161918

2427

31

2006

2007

Inward FDI Performance Index

The Best Countries for Business

Hong KongIrelandEstoniaTurkey

LithuaniaPoland

LitvaGeorgia

AzerbaijanArmenia

Russia

91417

41424345

6487

94103

210

3233

3068

8263

86

2007 2009


Achievements

Lowest corruption for developed nation

29th rank in economic freedom

Upgraded rating from S&P and Flitch

4th least tax miserable industry

Best clearance system 16th rank

6.7% - 6.8% y-o-y GDP growth rate

Geopolitical importance


GDP

Source: Department of Statistics of Georgia, Ministry of Finance of Georgia

Nominal GDP (US$bn) Real GDP growth, y-o-y (%)

ALL RESULTED Rapid Growth

Source: National Bank of Georgia, International Monetary Fund

Net FDI as % of GDP

• Business and tax registration merged into one simple process

• Time requirements reduced (30 days 1 hour)

• Paper work reduced (documents 7 2 documents)

• Costs reduced (costs 2160 GEL 160 GEL)


Recent Trade Relations

Intergovernmental Commission on Trade and Collabration 2010

Cooperation in the fields of Socioculture 2010

Cooperation in the fields of Science and Technology 2010

Avoidance of Double Taxation and the Prevention of Fiscal Evasion 2011

Bilateral trade increase from US $ 42.41 million during 2004-05 to US $ 115.39 million in 2006- 07

2011, bilateral trade stood at US$ 74.62 million, Favouring India


Hydro Power

• Georgia has 26,000 rivers and a potential for 15,000 megawatts of hydroelectricity.

• UNDP & German Development Bank provided 5 million euro Georgia Renewable Energy Fund

• 10 existing and 10 in making (worth $3.5billion valuation)


Tourism• Some countries attract one

instantly. Georgia seduces you the moment you set foot on its soil—Kalpana Sahni,

• Diverse Nature.• Numerous Historic Monuments

and Rich Ethnographic Resources

• Resorts and mineral springs.• Folklore and Ancient customs• Undisturbed Endemic Flora and

Fauna.


Hospitality & Infrastructure• Travel & Tourism Competitiveness

Index (TTCI) – Rank 50• Tourism growth 3.6 times in last 5

years• Boom in hotels due to tax breaks –

Prices increased by 18% last 2 years• Heavy infrastructure investment

agenda: Roads, hospitals, education, municipal infrastructure,airports, master planning, public security, tourism infrastructure, farming etc


Logistics and Shipping• Location Advantage - Old silk

route• Gateway to various landlock

country• Major Destination of DHL, FedEx• Gazproms’ Pipeline passes

through• Hub to transfer power and

resources to neighbours

