Download Item Amount (in US$ million) - Embassy of India, Santiago Chile

Presentation at International Institute of Studies,
University of Chile, Santiago
(Friday, May 16, 2014, 0930-1130 hrs)
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Indian Economy
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Factors for Growth of Indian Economy
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India-Chile Relations
 General Profile
 World's 2nd fastest growing major economy
 2nd & 3rd largest in Asia in term of PPP and Nominal
GDP, respectively
 16th largest exporter and 8th largest importer
 Economy till 1991 based on a mixed economy
 Since 1991, liberalization measures were adopted
GDP (Nominal): US$1.87 trillion (10th largest in the world)
GDP (PPP): US$5.07 trillion (3rd largest in the world)
GDP Growth Rate: 5.0% (2012-13)
GDP Per Capita: US$1,504 (Nominal:130th) & US$4,077(PPP: 127th)
GDP by Sector: agriculture (16.9%), industry (17%), services (66.1%)
Consumer Price Index: 8.79%
Below Poverty Line: 37.2%(2004-05), 11.8%(2013-14)
Labour Force: 487.3 million
Labour Force by Occupation: agriculture (49%), industry (20%),
services (31%)
 Unemployment: 3% Urban, 2% Rural
 Main Industries: textiles, chemicals, food processing, steel,
transportation equipment, cement, mining, petroleum, machinery,
software, pharmaceuticals
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 Exports: US$313.2 billion
 Main Items of Exports: software, petrochemicals,
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pharmaceuticals, precious stones, textiles, machinery, iron ore,
chemicals, automobiles
Main Destinations of Exports: UAE (12.3%), USA (12.2%),
China (5.0%), Singapore (4.9%), Hong Kong (4.1%)
Imports: US$467.5 billion
Main Items of Imports: crude oil, raw precious stones,
machinery, fertilizer, coal, steel, chemicals
Main Sources of Imports: China (10.7%), UAE (7.8%), Saudi
Arabia (6.8%), Switzerland (6.2%), United States (5.1%)
FDI Stock: US$47 billion
Gross External Debt: US$412.2 billion
 Public Debt - 67.59% of GDP
 Budget Deficit - 2% of GDP
 Revenues - US$181.3 billion
 Expenses - US$281.6 billion
 Economic Aid - US$2.107 billion
 Foreign Exchange Reserves – US$311.85 billion
FACTORS
Agriculture & Allied Sectors
 largest economic sector
 accounted for 17% of GDP in 2012
 employed 51% of the total workforce
 2nd worldwide in farm output
 largest producer of milk, jute and pulses
 2nd largest cattle population with 175 million animals.
 2nd largest producer of rice, wheat, sugarcane, cotton and peanuts
 2nd largest fruit and vegetable producer
 2nd largest producer and largest consumer of silk
 3rd largest fishing industry
 accounts for 26% of GDP
 employed 22% of the total workforce
 10th in terms of nominal factory output
 Textiles, chemicals, pharmaceuticals, machineries,
cement, steel, mining, engineering, automobiles,
motorcycles, electrical and electronics
 Micro, Small and Medium Enterprises
 2nd largest source of employment after agriculture
 contributes about 14% to industrial production
 4% to the country’s GDP
 17% to export earnings
 provides direct employment to over 35 million people
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13th in services output
provides employment to 27% of the work force
growth rate of 7.5% in 1991–2000
57%: largest share in GDP in 2012
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7% share in GDP
generates US$118 billion
contributes to 25% of exports
7 Indian firms among top 15 outsourcing
companies in the world
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accounts for 15% of GDP.
estimated to be US$500 billion.
Organised retail supermarkets account for 4% of
the market, as of 2008.
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contributes 6.23% of GDP
8.78% of total employment
presents heritage and cultural tourism along with
medical, business and sports tourism.
producing 79 different minerals (excluding fuel and
atomic resources)
iron ore, coal, manganese, bauxite, zinc, mica, lignite,
copper, gold, lead, gypsum, limestone etc.
25% of GDP contributes 10% of Industrial sector
Largest producer of Mica, largest producer of bauxite
third largest producer of Iron ore, fourth largest
producer of coal,
Estimated to be US$107 billion in 2010
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branches reached at 72,170 in 2007.
bank deposits reached at US$640 billion in 2009.
Gross domestic saving stood at 32.8% of GDP.
public sector banks hold over 75% of total assets
private banks hold 18.2% of assets
foreign banks hold 6.5% of assets
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4th largest producer of electricity and oil products
4th largest importer of coal and crude oil
Coal and oil account for 66% of consumption
oil reserves meet 25% of the country's demand
power generation capacity of 233.929 GW
rich in alternative sources of energy
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3rd largest road network, covering more than 4.3
million kilometers and carrying 60% of freight
and 87% of passenger traffic
4th largest rail network in the world, on track of
with 114,500 kilometers
13 major ports, handling cargo of 850 million
tonnes in 2010
national teledensity rate of 74.15% with 926.53
million telephone subscribers, two-thirds of them
in urban areas
Real Estate and Housing
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Literacy rate grown to 74.04% in 2011.
Right to Education, a Fundamental Right
Scientific and technical education
Vocational training
One of the largest reserves of scientific and
technological talents in the world.
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Poverty eradication
Economic disparities
Employment generation
Education
Women and child development
Health and nutrition
Infrastructure
Housing and Sanitation
Relevance of Chile
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Chile has large reserves of copper, lithium and other minerals.
It has a large coastline with huge ocean resources and port
facilities.
Its central plateau is excellent for cultivation, exports of fruits
and wine.
It has opened up its economy and has become a OECD
member.
Its strategic location provides access to Asia Pacific markets.
It lays emphasis on developing relations with Asia-Pacific
region.
Chile is an active member of regional and international
organizations.
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Both countries enjoy friendly and cooperative
relations, without any irritants.
Both countries share similar perception about
development and democracy.
Both have collaborated in UN and international
organizations.
High level visits have been exchanged between
the two countries.
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Prime Minister Mrs. Indira Gandhi (1968)
President Mr. Shankar Dayal Sharma (1995)
President Mrs. Pratibha Devisingh Patil (April
2008)
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Mr. Jyotiraditya Scindia, Minister of State (C&I) (September
2010)
Mr. Dinsha J. Patel, Minister of State(Mines) (April 2011)
Dr. S.Y. Quraishi, Chief Election Commissioner of India
(July 2011)
Mrs. Meira Kumar, Speaker of the Lok Sabha (January 2012)
Mr. Sachin Pilot, Minister of State (Comm&IT) (April 2012)
Mr. Salman Khurshid, Minister of External Affairs
(February 2013)
Dr. Farooq Abdullah, Minister of New and Renewable
Energy (Sept 2013)
Mr. J. D. Seelam, Minister of State (Revenue) (March 2014).
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President Ricardo Lagos Escobar (2005)
President Dr. Michelle Bachelet (March 2009)
Dr. Michelle Bachelet (as the Head of the UN
Women) (October 2012)
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Mr. Alfredo Moreno Charme, Minister of Foreign
Affairs (August 2012)
Mr. Luis Mayol, Minister of Agriculture (June
2013)
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Agreement for Cooperation in Science &
Technology
MOU on Cooperation in Sports
Air Services Agreement
MOU on Antarctica Cooperation
Renewal of Phytosanitary Agreement
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MOU on Co-operation in the field of New and
Renewable Energy
Agreement on Cooperation in Exploration and
Utilization of Outer Space for Peaceful Purposes
MOU on Co-operation in the field of Geology and
Mineral Resources
Exchange Programme on Cooperation in the field
of Education
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Partnership Framework Agreement between M. S.
Swaminathan Research Foundation, Chennai and La
Fundacion para La Innovacion Agraria
Agreement on Reciprocal Collaboration between
NASSCOM and ACTI (Chilean Association of
Information Technology Companies)
MOU between Confederation of Indian Industry (CII)
and Chile-India Chamber of Commerce (CAMINDIA)
MOU between Avesthagen Limited, Chennai and
Uxmal S.A., Chile for promoting R&D in Heath and
Cosmetics Sector.
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Growth of economies has led to increased economic and
commercial relations.
Indian business companies have been looking at new
markets in Latin America.
Chile has become a platform or gateway for Indian
businesses.
Indian investments have been limited in Chile, but trade is
on the rise.
Chile is the second largest trading partner of India in Latin
America.
In 2012, India was the 10th largest trading partner of Chile.
However, India shares only 2% of Chile’s global trade.
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PHARMEXCIL delegation (March 2012)
Apparels Exports Promotion Council (AEPC)
(March 2012, March 2013 and March 2014)
Export Promotion Council for Handicrafts
(EPCH) (November 2013)
Sports Goods Export Promotion Council
delegation (SGEPC) (November 2013)
Electronics and Computer Software Export
Promotion Council of India (ESC) (March 2014).
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Chilean exports to India have grown steadily from
2009 to 2012.
Indian exports to Chile have also grown by 36.9%,
22.6% and 40.9% respectively over the same
period.
Balance of trade has been in favour of Chile, due
to bulk imports of copper ores and copper
concentrates.
Year
Exports from India (CIF)
Imports by India (FOB)
Total Trade
2009
278.07
908.35
1186.42
2010
380.91
1581.95
1962.86
2011
467.03
1964.99
2432.02
2012
658.45
2636.82
3295.27
2013
693.90
2182.70
2876.60
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Above trade figures do not include India’s exports
to the Free Trade Zone of Iquique.
India’s exports amounted to US$39.2 million in
2010, US$42.9 million in 2011, US$60.8 million in
2012, and US$45.4 million in 2013.
India’s service exports too amount to some US$20
million.
6% of companies working in Zofri Zone in Iquique
are of Indian origin.
Item
Motor Cars (less than 1000 cc)
Motor Cars (exceeding 1500 cc)
Motor Cars (exceeding 1000 cc)
Transport vehicles for goods
Industrial leather gloves
Medicaments
Motorcycles
Generators
Tractors
Yarn & fibres
Amount (in US$ million)
71.76
56.30
55.64
45.59
34.14
31.31
14.54
10.59
9.78
8.14
Item
Copper ores & concentrates
Iodine
Blister copper
Chemical wood pulp (coniferous)
Petroleum coke
Other coal
Molybdenum concentrate
Chemical wood pulp (unbleached)
Chemical wood pulp (eucalyptus)
Fresh apples
Amount (in US$ million)
1909.16
67.14
52.95
46.88
19.91
16.59
7.93
6.98
6.00
5.66
2012
China
USA
Japan
Brazil
South Korea
Argentina
Mexico
Germany
Peru
India (10th)
Amount (in US$ million)
30,242.00
24,631.10
10,535.60
9,564.90
7,091.90
6,488.00
3,820.30
3,814.50
3,631.30
3,295.50
2013
Amount (in US$ million)
China
USA
Brazil
Japan
South Korea
Argentina
Mexico
Peru
Spain
Ecuador
The Netherlands
Italy
Canada
India (14th)
32,968.90
24,716.80
9,628.60
9,438.80
6,852.50
5,305.10
3,749.20
3,393.20
3,211.20
3,071.70
3,062.10
2,919.90
2,903.80
2,876.60
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Re-introduction of 4 slots under ITEC since 2005
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Slots reached at 40 in 2013
ITEC Training Programmes cover diverse subjects
starting from accounting to remote sensing.
 Yoga, meditation, classical and modern dance and
music popular in Chile
 A large number of Chileans follow Indian spiritual and
philosophical traditions.
 In 2013, more than 2,800 visas to Chilean nationals.
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Around 1500 Indians and people of Indian origin
are living here.
About 40% of them have obtained Chilean
nationality.
Half of them live in the northern free port of
Iquique and the rest are in Santiago and Punta
Arenas. Their main occupation is trading.
Number of professionals and expatriates working
in sectors such as ICT, BPO and KPO, has been
increasing, of late.
 Preferential Trade Agreement (PTA): Expansion and
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discussions leading towards a Comprehensive Economic
Partnership Agreement (CEPA).
Double Taxation Avoidance Agreement (DTAA): In February
2012, the Indian side conveyed its readiness to sign the
Agreement. Convenience of the Chilean side has been sought to
sign the DTAA.
Bilateral Investment Protection Agreement (BIPA): A draft
of the Indian Text of BIPA has been forwarded.
Establishment of a Joint Commission: A draft of the Indian
Text of the Agreement has been forwarded.
Foreign Office Consultations: Last round of FOCs took place
in Santiago in October 2010.
 Science & Technology
 Renewable Energy
 Information Technology
 Mining
 Agriculture
 Education
 Healthcare