Implications Of Foreign Trade Policy And Facilitation Of Foreign Trade
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Implications of Foreign Trade Policy and Facilitation of Foreign Trade
A Presentation
S.R.Rao Chief General Manager Export-Import Bank of India
Where Does India Stand Globally? Exim India
International Trade of Select Countries in 2003 Country
Exports
Imports
GDP
(US$ bn.)
(US$ bn.)
(US$ bn.)
Trade as % of G
Korea 197.6 175.5 605.0 61.7 China 438.3 393.6 1446.9 57.5 Mexico 165.4 171.0 626.1 53.7 Russia 135.9 75.4 433.5 48.7 South Africa 38.7 35.0 160.1 46.0 Argentina 29.4 13.1 129.7 32.8 Brazil 73.1 48.3 492.1 24.7 57.0 merchandise 74.3 exports: 588.8 0.8% (2003) 22.3 India India’s share in global Source: Economist Intelligence Unit 2
India’s Export Performance Exim India
India's Export Performance (1999-2000 to 2003-0 70000 52856
60000 US$ million
50000 40000 30000 20000
44147
43976
2000-01
2001-02
36760
29751
10000 0 1999-2000
Source: DGCIS, MOC&I
All Commodities
Years
2002-03
2003
Agricultural & allied pr 3
India’s Import Performance Exim India
India's Import Performance (1999-2000 to 2003-0 90000 80000
7
70000 US$ million
60000 50000
61572 49799
50056
51588
5
40000 30000
37172
20000 10000 0
Source: DGCIS, MOC&I 1999-2000
2000-01
2001-02
2002-03
2003-0 4
Trade Policies in India
Exim Policies
Streamlined trade procedures
Liberalised import regime
Thrust on export orientation
Medium Term Export Strategy, 2002
Exim India
1% share in global exports by 2007
Foreign Trade Policy 2004-2009
To double India’s share in global merchandise trade by 2009 5
Role of Institutions Institutions
dedicated
for
Exim India
promoting
foreign trade have played an important role towards enhancing the process of internationalisation of Indian companies, viz.
Export-Import Bank of India,
Export Credit Guarantee Corporation,
Indian Institute of Foreign Trade 6
Exim Bank
Exim India
Set up
by an act of parliament in September, 1981
Wholly owned by Government of India Commenced
operations in march, 1982
Established “for providing financial assistance
to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…” 7
Foreign Trade Policy 2004-09
Exim India
Quantum Jump in Merchandise Exports Required:
Enhance exports of major export commodities
Identify potential export commodities
Diversify export destinations 8
Foreign Trade Policy 2004-09
Exim India
Exim Bank Study “Strategy for Quantum Jump in Exports: Focus on Africa, Latin America and China” India
could aim to achieve: US$ 18 billion in Africa’s Imports by 2007 from US$ 3.8 bn in 2003-04 US$ 4 bn in China’s imports by 2007 (in 64 identified groups) from US$ 0.86 bn in 2000 US$ 1.8 bn in LAC’s imports by 2007 (in 100 identified groups) from US$ 0.6 bn in 2000
Share in India’s Exports in 2003-04: Africa (6%); Latin America (1.8%); China (4.7) 9
Lines of Credit Exim India
Overseas Governments
Parastatal Organisations/ Govt. Agencies
Commercial Banks
Regional Financial Institutions
Particularly relevant for SMEs
Eligible items – all items permissible under Exim Policy
Engineering Goods
Consumer Durables
Commodities 10
LOCs Extended by Exim Bank Exim India
AFRICA ALGERIA PTA BANK covering GHANA BURUNDI KENYA COMOROS MALAWI DJIBOUTI MAURITIUS ERITREA, EGYPT NAMIBIA ETHIOPIA SEYCHELLES KENYA SOUTH AFRICA MALAWI SUDAN MAURITIUS TANZANIA RWANDA TUNISIA SOMALIA UGANDA SUDAN
ASIA BANGLADESH INDONESIA IRAN , IRAQ SRI LANKA KOREA MALAYSIA THAILAND VIETNAM PHILIPPINES
BOAD covering BENIN BURKINA FASO COTE D’IVOIRE MALI NIGER SENEGAL TOGO
TANZANIA UGANDA ZAMBIA ZIMBABWE EADB covering KENYA TANZANIA UGANDA
KAZAKHSTAN BULGARIA RUSSIA ROMANIA HUNGARY POLAND
LATIN AMERICA &
CARIB. ZAMBIA
EUROPE
BRAZIL JAMAICA
MEXICO COLOMBIA VENEZUELA
CAF covering BOLIVIA COLOMBIA ECUADOR PERU VENEZUELA
BCIE covering COSTA RICA EL SALVADOR GUATEMALA HONDURAS NICARAGUA
11
Foreign Trade Policy 2004-09
Exim India
Simplifying procedures and bringing down transaction costs Transaction costs are incurred at the pre and post-production stages, and arise out from several procedural complexities associated with administrative processes, availability of finance and transportation problems. For enhancing the growth of exports it is important to reduce the transaction costs involved. Exim Bank Study on Transaction Costs of Indian Exports 12
Foreign Trade Policy 2004-09 Exim India
Findings of Exim Bank’s Study Sector
No. of Firms
Textile/Garments
23
Transaction costs as % of export revenue (2003 Survey) 3-10
Transaction costs as % of export revenue (1998 Survey) 15
Engineering goods
18
<5
10
Pharmaceuticals
9
≤ 8
10
Chemicals
7
<5
14
Computer software
9
1-5
10
Agro-Industries
2
1-2
7-8.5
Electronic & Electrical machinery
3
5
-
Plastic components
2
5-10
-
Paper Industry
2
5-7
-
Others
7
1-2
13
Foreign Trade Policy 2004-09
Exim India
Transaction Costs: International Experience
Simplified and less stringent bureaucratic procedures like single window clearance and business friendly approach
Better technology due to higher levels of foreign investment, faster loading/unloading methods
Flexible labour laws
Cheap availability of power and raw materials,
Freight incentives by the Government,
Lower ocean freight rates due to greater availability of vessels 14
Foreign Trade Policy 2004-09
Exim India
Special package for agriculture
Duty free imports of capital goods Will lower production cost and hence improve profitability
Exports of medicinal plants & herbal products facilitated Global imports of medicinal plants: US$ 1 bn (2001) India second largest exporter after China Potential to increase export to Rs. 1750 crore by 2006-07 and more than Rs. 2500 crore by 2009-10. Global market for Herbal products: US$ 80 bn India’s exports of Herbal products: US$ 280 mn (2002-03) 15
Foreign Trade Policy 2004-09
Exim India
Textile sector incentives
Duty free entitlement for garments & handicrafts increased from 3% to 5% Will help exporters to move up the value chain However, further incentives required to consolidate India’s position in the post-MFA era Handicraft Special Economic Zone to be established Will contribute to strong growth in handicraft exports Will generate employment opportunities 16
Foreign Trade Policy 2004-09
Exim India
Export Promotion Schemes
Target Plus scheme introduced Will further boost exports from the successful exporters
Vishesh Krishi Upaj Yojana to boost horticulture exports Global trade in horticulture: US$ 79 bn (1999) India’s exports: US$ Rs. 1830 cr (1999-2000) Success of AEZs for horticulture depend on “the ability of the states to overcome existing shortcomings in infrastructure, institutional mechanism and policy and programme support to achieve desired export orientation” 17
Foreign Trade Policy 2004-09
Exim India
Export Promotion Schemes
“Services Export Promotion Council” to be set up
“Served from India” scheme: Service providers who earn forex of at least Rs. 5 lakhs will be eligible for duty credit entitlement Will help small scale service providers Will
enhance
India’s
share
in
global
exports of services (1.4% in 2003) 18
Exim Bank as a Consultant Exim India
Sharing Institutional Building Capabilities World wide
Feasibility study for establishment of an export credit and guarantee facility for Gulf Cooperation Council countries
Regional cooperation in export finance and export credit guarantees for ESCAP Study on promotion of international competitiveness and exports of manufactured goods for ESCAP
Setting up the Afrexim Bank
Designing of Export Financing Programmes - Turkey 19
Exim Bank as a Consultant Exim India
Sharing Institutional Building Capabilities World wide
Setting up an Exim Bank in Malaysia
Design of Export Marketing Seminars for SMEs in Vietnam
Export Development Project : Ukraine
Enterprise Support Fund : Armenia
Establishing an Export Credit Guarantee Company in Zimbabwe
Advisory services to Industrial Development Corporation of South Africa for international finance products
Mauritius – Study on Projecting Mauritius as an Investment Hub for Indian Firms 20
Promoting Indian Consultancy Tie-up with
Exim India
International Finance Corporation, Washington D.C.
Africa Project Development Facility
Africa Enterprise Fund
Mekong Project Development Facility
South-East Europe Enterprise Development Facility
Private Enterprise Partnership (CIS Countries)
China Project Development Facility
South Asia Enterprise Development Facility
Eastern & Southern African Trade & Development Bank (PTA Bank)
African Management Services Company (AMSCO)
Exim sponsors consultants under GoI-AfDB cooperation Agreement 21
Advisory Services
Exim India
Multilateral Agencies Funded Projects Overseas (MFPO) Information and support services to Indian companies to help improve their prospects for securing business in multilateral agencies funded projects. Dissemination of business opportunities in funded projects Providing detailed information on projects of interest Information on Procurement Guidelines, Policies, Practices of Multilateral Agencies Assistance for Registration with Multilateral Agencies Advising Indian companies on preparation of Expression of Interest, Capability Profile Bid Intervention 22
Foreign Trade Policy 2004-09
Exim India
Export Oriented Units
Exemption from service tax
EOUs permitted to retain 100% of export earnings in EEFC accounts
Income tax benefits to DTA units which convert to EOUs All these should considerably increase export growth from the EOUs 23
Exim Bank: Financing of Export-Oriented Companies
Exim India
Term Loans Project Finance
Equipment Finance
EOU Projects & TUFS
Working Capital Short Term < 1 year
Software Training Institutes
Term Loans for 1-2 years
Minor Ports
Long Term upto 5 years
Technology Parks
Overseas Other Investment Finance Programmes Loans to Indian companies for Equity Investment in their ventures overseas Loans to Indian companies to olden to their overseas ventures
Export Marketing Finance Export Product Development Finance for R&D
Direct Equity stake 24
Institutional Linkages Multilateral Agencies
Exim India
World Bank
Asian Development Bank African Development Bank European Bank for Reconstruction & Development Multilateral Investment Guarantee Agency (MIGA) International Finance Corporation (IFC) UNIDO - Industrial Promotion Offices Afrexim Bank Eastern & Southern African Trade & Development Bank (PTA Bank)
25
Institutional Linkages Exim India
Trade & Investment Promotion Agencies
BoardofInvestmentofSri Lanka
HattonNational Bank,Sri Lanka
ChinaNational Technical Import&ExportCorporation
PolishAgencyforForeignInvestment(PAIZ).
HungarianInvestmentandTradeDevelopmentAgency
UNIDOIndustrial Cooperation&InvestmentPromotionService,Poland
EconomicDevelopmentBoard,Bahrain
Investment&TradePromotionCentre,Vietnam CenteroEsteroVineto,Italy
26
Institutional Linkages Exim India
ExportCreditAgencies
TheExport-ImportBankofChina.
CroatianBankforReconstructionandDevelopment.
CzechExportBank.
HungarianExport-ImportBankLtd.
Uzbekinvest–National Export-ImportInsuranceCompany. EximBankofRomania.
27
Institutional Linkages Exim India
Trade & Investment Promotion Agencies
BoardofInvestmentofSri Lanka
HattonNational Bank,Sri Lanka
ChinaNational Technical Import&ExportCorporation
PolishAgencyforForeignInvestment(PAIZ).
HungarianInvestmentandTradeDevelopmentAgency
UNIDOIndustrial Cooperation&InvestmentPromotionService,Poland
EconomicDevelopmentBoard,Bahrain
Investment&TradePromotionCentre,Vietnam CenteroEsteroVineto,Italy
28
Exim Bank : Partner in Globalisation Exim India
Technology Capital (Foreign Investment) Raw Materials Capital Goods M P O R T
EX PO RT
✦
Final Products
✦
Capital Goods
✦
Capital (Overseas Ventures)
I
ON I VALUE DIT AD
✦
Product Development
✦
Production
✦
Marketing
✦
Pre shipment
✦
Post shipment 29
Foreign Trade Policy 2004-09
Exim India
Final Observations
Import of second hand capital goods allowed without age restrictions No outdated imported
technology
should
be
“Special Focus Initiatives” Could be extended to other sectors of high export orientation like chemicals & pharmaceuticals
Export orientation of FDI should be increased 30
FDI and Exports Exim India
Low share of FDI in major export sectors Sector
Share in FDI (%)
Transportation industry
7.50
Computer software industry
6.46
Chemicals & pharmaceuticals
5.70
Textiles
1.20
Leather & leather goods
0.20
Services (incl. Hotels & Tourism)
8.37
Source: SIA, MOC&I 31
Exim India
THANK THANK YOU YOU www.eximbankindia.com
32
A Presentation
S.R.Rao Chief General Manager Export-Import Bank of India
Where Does India Stand Globally? Exim India
International Trade of Select Countries in 2003 Country
Exports
Imports
GDP
(US$ bn.)
(US$ bn.)
(US$ bn.)
Trade as % of G
Korea 197.6 175.5 605.0 61.7 China 438.3 393.6 1446.9 57.5 Mexico 165.4 171.0 626.1 53.7 Russia 135.9 75.4 433.5 48.7 South Africa 38.7 35.0 160.1 46.0 Argentina 29.4 13.1 129.7 32.8 Brazil 73.1 48.3 492.1 24.7 57.0 merchandise 74.3 exports: 588.8 0.8% (2003) 22.3 India India’s share in global Source: Economist Intelligence Unit 2
India’s Export Performance Exim India
India's Export Performance (1999-2000 to 2003-0 70000 52856
60000 US$ million
50000 40000 30000 20000
44147
43976
2000-01
2001-02
36760
29751
10000 0 1999-2000
Source: DGCIS, MOC&I
All Commodities
Years
2002-03
2003
Agricultural & allied pr 3
India’s Import Performance Exim India
India's Import Performance (1999-2000 to 2003-0 90000 80000
7
70000 US$ million
60000 50000
61572 49799
50056
51588
5
40000 30000
37172
20000 10000 0
Source: DGCIS, MOC&I 1999-2000
2000-01
2001-02
2002-03
2003-0 4
Trade Policies in India
Exim Policies
Streamlined trade procedures
Liberalised import regime
Thrust on export orientation
Medium Term Export Strategy, 2002
Exim India
1% share in global exports by 2007
Foreign Trade Policy 2004-2009
To double India’s share in global merchandise trade by 2009 5
Role of Institutions Institutions
dedicated
for
Exim India
promoting
foreign trade have played an important role towards enhancing the process of internationalisation of Indian companies, viz.
Export-Import Bank of India,
Export Credit Guarantee Corporation,
Indian Institute of Foreign Trade 6
Exim Bank
Exim India
Set up
by an act of parliament in September, 1981
Wholly owned by Government of India Commenced
operations in march, 1982
Established “for providing financial assistance
to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…” 7
Foreign Trade Policy 2004-09
Exim India
Quantum Jump in Merchandise Exports Required:
Enhance exports of major export commodities
Identify potential export commodities
Diversify export destinations 8
Foreign Trade Policy 2004-09
Exim India
Exim Bank Study “Strategy for Quantum Jump in Exports: Focus on Africa, Latin America and China” India
could aim to achieve: US$ 18 billion in Africa’s Imports by 2007 from US$ 3.8 bn in 2003-04 US$ 4 bn in China’s imports by 2007 (in 64 identified groups) from US$ 0.86 bn in 2000 US$ 1.8 bn in LAC’s imports by 2007 (in 100 identified groups) from US$ 0.6 bn in 2000
Share in India’s Exports in 2003-04: Africa (6%); Latin America (1.8%); China (4.7) 9
Lines of Credit Exim India
Overseas Governments
Parastatal Organisations/ Govt. Agencies
Commercial Banks
Regional Financial Institutions
Particularly relevant for SMEs
Eligible items – all items permissible under Exim Policy
Engineering Goods
Consumer Durables
Commodities 10
LOCs Extended by Exim Bank Exim India
AFRICA ALGERIA PTA BANK covering GHANA BURUNDI KENYA COMOROS MALAWI DJIBOUTI MAURITIUS ERITREA, EGYPT NAMIBIA ETHIOPIA SEYCHELLES KENYA SOUTH AFRICA MALAWI SUDAN MAURITIUS TANZANIA RWANDA TUNISIA SOMALIA UGANDA SUDAN
ASIA BANGLADESH INDONESIA IRAN , IRAQ SRI LANKA KOREA MALAYSIA THAILAND VIETNAM PHILIPPINES
BOAD covering BENIN BURKINA FASO COTE D’IVOIRE MALI NIGER SENEGAL TOGO
TANZANIA UGANDA ZAMBIA ZIMBABWE EADB covering KENYA TANZANIA UGANDA
KAZAKHSTAN BULGARIA RUSSIA ROMANIA HUNGARY POLAND
LATIN AMERICA &
CARIB. ZAMBIA
EUROPE
BRAZIL JAMAICA
MEXICO COLOMBIA VENEZUELA
CAF covering BOLIVIA COLOMBIA ECUADOR PERU VENEZUELA
BCIE covering COSTA RICA EL SALVADOR GUATEMALA HONDURAS NICARAGUA
11
Foreign Trade Policy 2004-09
Exim India
Simplifying procedures and bringing down transaction costs Transaction costs are incurred at the pre and post-production stages, and arise out from several procedural complexities associated with administrative processes, availability of finance and transportation problems. For enhancing the growth of exports it is important to reduce the transaction costs involved. Exim Bank Study on Transaction Costs of Indian Exports 12
Foreign Trade Policy 2004-09 Exim India
Findings of Exim Bank’s Study Sector
No. of Firms
Textile/Garments
23
Transaction costs as % of export revenue (2003 Survey) 3-10
Transaction costs as % of export revenue (1998 Survey) 15
Engineering goods
18
<5
10
Pharmaceuticals
9
≤ 8
10
Chemicals
7
<5
14
Computer software
9
1-5
10
Agro-Industries
2
1-2
7-8.5
Electronic & Electrical machinery
3
5
-
Plastic components
2
5-10
-
Paper Industry
2
5-7
-
Others
7
1-2
13
Foreign Trade Policy 2004-09
Exim India
Transaction Costs: International Experience
Simplified and less stringent bureaucratic procedures like single window clearance and business friendly approach
Better technology due to higher levels of foreign investment, faster loading/unloading methods
Flexible labour laws
Cheap availability of power and raw materials,
Freight incentives by the Government,
Lower ocean freight rates due to greater availability of vessels 14
Foreign Trade Policy 2004-09
Exim India
Special package for agriculture
Duty free imports of capital goods Will lower production cost and hence improve profitability
Exports of medicinal plants & herbal products facilitated Global imports of medicinal plants: US$ 1 bn (2001) India second largest exporter after China Potential to increase export to Rs. 1750 crore by 2006-07 and more than Rs. 2500 crore by 2009-10. Global market for Herbal products: US$ 80 bn India’s exports of Herbal products: US$ 280 mn (2002-03) 15
Foreign Trade Policy 2004-09
Exim India
Textile sector incentives
Duty free entitlement for garments & handicrafts increased from 3% to 5% Will help exporters to move up the value chain However, further incentives required to consolidate India’s position in the post-MFA era Handicraft Special Economic Zone to be established Will contribute to strong growth in handicraft exports Will generate employment opportunities 16
Foreign Trade Policy 2004-09
Exim India
Export Promotion Schemes
Target Plus scheme introduced Will further boost exports from the successful exporters
Vishesh Krishi Upaj Yojana to boost horticulture exports Global trade in horticulture: US$ 79 bn (1999) India’s exports: US$ Rs. 1830 cr (1999-2000) Success of AEZs for horticulture depend on “the ability of the states to overcome existing shortcomings in infrastructure, institutional mechanism and policy and programme support to achieve desired export orientation” 17
Foreign Trade Policy 2004-09
Exim India
Export Promotion Schemes
“Services Export Promotion Council” to be set up
“Served from India” scheme: Service providers who earn forex of at least Rs. 5 lakhs will be eligible for duty credit entitlement Will help small scale service providers Will
enhance
India’s
share
in
global
exports of services (1.4% in 2003) 18
Exim Bank as a Consultant Exim India
Sharing Institutional Building Capabilities World wide
Feasibility study for establishment of an export credit and guarantee facility for Gulf Cooperation Council countries
Regional cooperation in export finance and export credit guarantees for ESCAP Study on promotion of international competitiveness and exports of manufactured goods for ESCAP
Setting up the Afrexim Bank
Designing of Export Financing Programmes - Turkey 19
Exim Bank as a Consultant Exim India
Sharing Institutional Building Capabilities World wide
Setting up an Exim Bank in Malaysia
Design of Export Marketing Seminars for SMEs in Vietnam
Export Development Project : Ukraine
Enterprise Support Fund : Armenia
Establishing an Export Credit Guarantee Company in Zimbabwe
Advisory services to Industrial Development Corporation of South Africa for international finance products
Mauritius – Study on Projecting Mauritius as an Investment Hub for Indian Firms 20
Promoting Indian Consultancy Tie-up with
Exim India
International Finance Corporation, Washington D.C.
Africa Project Development Facility
Africa Enterprise Fund
Mekong Project Development Facility
South-East Europe Enterprise Development Facility
Private Enterprise Partnership (CIS Countries)
China Project Development Facility
South Asia Enterprise Development Facility
Eastern & Southern African Trade & Development Bank (PTA Bank)
African Management Services Company (AMSCO)
Exim sponsors consultants under GoI-AfDB cooperation Agreement 21
Advisory Services
Exim India
Multilateral Agencies Funded Projects Overseas (MFPO) Information and support services to Indian companies to help improve their prospects for securing business in multilateral agencies funded projects. Dissemination of business opportunities in funded projects Providing detailed information on projects of interest Information on Procurement Guidelines, Policies, Practices of Multilateral Agencies Assistance for Registration with Multilateral Agencies Advising Indian companies on preparation of Expression of Interest, Capability Profile Bid Intervention 22
Foreign Trade Policy 2004-09
Exim India
Export Oriented Units
Exemption from service tax
EOUs permitted to retain 100% of export earnings in EEFC accounts
Income tax benefits to DTA units which convert to EOUs All these should considerably increase export growth from the EOUs 23
Exim Bank: Financing of Export-Oriented Companies
Exim India
Term Loans Project Finance
Equipment Finance
EOU Projects & TUFS
Working Capital Short Term < 1 year
Software Training Institutes
Term Loans for 1-2 years
Minor Ports
Long Term upto 5 years
Technology Parks
Overseas Other Investment Finance Programmes Loans to Indian companies for Equity Investment in their ventures overseas Loans to Indian companies to olden to their overseas ventures
Export Marketing Finance Export Product Development Finance for R&D
Direct Equity stake 24
Institutional Linkages Multilateral Agencies
Exim India
World Bank
Asian Development Bank African Development Bank European Bank for Reconstruction & Development Multilateral Investment Guarantee Agency (MIGA) International Finance Corporation (IFC) UNIDO - Industrial Promotion Offices Afrexim Bank Eastern & Southern African Trade & Development Bank (PTA Bank)
25
Institutional Linkages Exim India
Trade & Investment Promotion Agencies
BoardofInvestmentofSri Lanka
HattonNational Bank,Sri Lanka
ChinaNational Technical Import&ExportCorporation
PolishAgencyforForeignInvestment(PAIZ).
HungarianInvestmentandTradeDevelopmentAgency
UNIDOIndustrial Cooperation&InvestmentPromotionService,Poland
EconomicDevelopmentBoard,Bahrain
Investment&TradePromotionCentre,Vietnam CenteroEsteroVineto,Italy
26
Institutional Linkages Exim India
ExportCreditAgencies
TheExport-ImportBankofChina.
CroatianBankforReconstructionandDevelopment.
CzechExportBank.
HungarianExport-ImportBankLtd.
Uzbekinvest–National Export-ImportInsuranceCompany. EximBankofRomania.
27
Institutional Linkages Exim India
Trade & Investment Promotion Agencies
BoardofInvestmentofSri Lanka
HattonNational Bank,Sri Lanka
ChinaNational Technical Import&ExportCorporation
PolishAgencyforForeignInvestment(PAIZ).
HungarianInvestmentandTradeDevelopmentAgency
UNIDOIndustrial Cooperation&InvestmentPromotionService,Poland
EconomicDevelopmentBoard,Bahrain
Investment&TradePromotionCentre,Vietnam CenteroEsteroVineto,Italy
28
Exim Bank : Partner in Globalisation Exim India
Technology Capital (Foreign Investment) Raw Materials Capital Goods M P O R T
EX PO RT
✦
Final Products
✦
Capital Goods
✦
Capital (Overseas Ventures)
I
ON I VALUE DIT AD
✦
Product Development
✦
Production
✦
Marketing
✦
Pre shipment
✦
Post shipment 29
Foreign Trade Policy 2004-09
Exim India
Final Observations
Import of second hand capital goods allowed without age restrictions No outdated imported
technology
should
be
“Special Focus Initiatives” Could be extended to other sectors of high export orientation like chemicals & pharmaceuticals
Export orientation of FDI should be increased 30
FDI and Exports Exim India
Low share of FDI in major export sectors Sector
Share in FDI (%)
Transportation industry
7.50
Computer software industry
6.46
Chemicals & pharmaceuticals
5.70
Textiles
1.20
Leather & leather goods
0.20
Services (incl. Hotels & Tourism)
8.37
Source: SIA, MOC&I 31
Exim India
THANK THANK YOU YOU www.eximbankindia.com
32
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