TRADEWINDS
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COLOMBIA
Auto parts dominate India’s export to Colombia |
Total bilateral trade between India and Colombia in 2006 reached US$ 410 million. Colombia’s total imports from India amounted to US$ 346.41 million. Main items exported from India were auto parts (89.75 million), vehicles (52.56 million), organic chemicals (49 million), cotton yarn and manmade filaments & fibres (41.3 million), pharmaceutical products (28.29 million), iron and steel (22.5 million), machinery and equipment (15.8 million), plastics (7.09 million), etc.
Colombia’s exports to India in 2006 were US$ 62.85 million. Colombia’s export to India was dominated by iron and steel (57.73 million), followed by wood and articles of wood, mineral oils and fuels, copper and articles thereof.
Colombia offers huge market for Indian medicines
In 2006, 14 Indian pharmaceutical companies were registered with the Colombian Drug Regulatory Authority, INVIMA for supply of pharma products. Claris Life Sciences has a full-fledged presence in Colombia while others like Ranbaxy, Ipca, Cipla, and Strides are working through local agents. Colombian total imports of pharma products during 2006 stood at US$ 731 million to which Indian contribution was worth US$ 28.29 million.
Colombian steel major to import machinery from India
One of the largest steel companies in Colombia, CORPACERO signed a USD 20.75 million contract with Flat Products Equipments of Mumbai for supply of machinery and equipment. Indian Company will supply these items to the Colombian company for raising its production capacity.
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ETHIOIPIA
Indian companies bag major infrastructure contracts in Ethiopia |
In 2006, Indian companies won various government contracts in Ethiopia in power and road sectors. Mumbai-based KEC International was awarded a World Bank funded power project worth US$ 57 million. BHEL was awarded a contract for two sub-stations of 230 kv of power distribution worth US$ 10 million. Overseas Infrastructure Alliance Pvt. Ltd. secured a contract worth US$ 65 million to provide equipment to be used for Hagremariam-Mega-Boku-Loguma Power Transmission for which Exim Bank has provided the Line of Credit. SMS Infrastructure Ltd. has signed over US$ 13.4 million contract with Ethiopian Roads Authority for construction of 80 km Keyafer-Turmi Road Project. Indian companies like ICT, CES and TCIL secured contracts in consultancy work for roads and water resources, and for supply of equipment and other works in telecommunications.
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SRI LANKA
Colombo seeks early conclusion of CEPA |
During a two-day official trip to India, Sri Lankan Foreign Minister said that Colombo was looking for conclusion of the Comprehensive Economic Partnership Agreement (CEPA) by the middle of 2007. Sharing Sri Lanka’s optimism, Indian leaders reaffirmed their commitment for an early conclusion of the CEPA process in a manner that would be mutually beneficial to both sides.
Indian leaders expressed satisfaction that barring certain implementation issues pertaining to the Free Trade Agreement, including the export of Vanaspati, bilateral trade relations between the two countries were by and large free-flowing. Since the signing of the FTA, bilateral trade between India and Sri Lanka has quadrupled to over US$ 2 billion.
Sri Lankan Minister also referred to the important new area of bilateral economic engagement that would shortly open up with the commencement of exploration for oil & gas in the Mannar Basin. The Indian side appreciated Sri Lanka’s offer of a block to India for such exploration and stated that his country was looking forward to commencing practical measures in this regard. According to sources, Sri Lanka will float tenders for oil exploration in this basin in about six months.
Sri Lanka is currently the third-largest importer of Indian goods. The Minister pointed out that the process was being encouraged through several concessions designed to facilitate the sale of Indian goods in the Sri Lankan market.
Sri Lanka to ban import of two-stroke three wheelers
The Sri Lankan Cabinet has approved a memorandum submitted by the Minister of Environment to regulate the use of two-stroke three wheelers in order to improve the urban air quality. The prohibition on import and registration of three wheelers powered by two-stroke petrol engines will come in force from January 1, 2008. The ban on import of engine spare parts will come into effect from 2011.
Studies conducted in Sri Lanka have revealed that the levels of hydrocarbons and particulate matter emitted by the two-stroke three wheelers are higher than the amounts stipulated by the national vehicular emission standards. According to the Central Environmental Authority, about 280,000 two-stroke three wheelers are already in operation and about 40,000 are being added annually.
Trincomalee SEZ expected to attract huge foreign investment
The site at Kappalthurai is considered to be the most attractive location to establish a special economic zone in Sri Lanka with the Trincomalee harbor recognized internationally as one of the best ports in the world. This is one of the 12 special economic zones approved by Sri Lanka. Substantial foreign investment is expected in this SEZ.
Sri Lanka eyes at 40% of its total FDI from India
Sri Lanka expects some 40 percent of its total foreign direct investments from India in 2007. Sri Lanka targets a US$ 1,000 million total FDI for the year 2007.
Sri Lanka is eyeing at Indian investments primarily in agricultural sector and chemical manufacturing. At the Partnership Summit held recently in Bangalore, a business delegation headed by the Sri Lankan Minister of Investment Promotion and Enterprise Development, Rohitha Bogollagama made a strong pitch for Indian investments in Sri Lanka.
Madura Garments enters Sri Lankan retail market
Madura Garments, textile and apparel division of Aditya Birla Nuvo, is foraying into retail in Sri Lanka. The company has opened an outlet in the upmarket Crescat Boulevard in Colombo to retail its fashion brand – SF Jeans. It plans to have four SF Jeans outlets in association with a local partner. SF Jeans is the first fashion brand under Madura Garments umbrella to have set up its own single brand retail store beyond Indian boundaries.
The firm will target international tourists and cosmopolitan crowd of Colombo with products ranging from basic apparel, handcrafted jeans and cargos to accessories like belts, chains, caps and wallets.
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POLAND
Poland received 15 billion dollar FDI last year |
According to estimates made by the National Bank of Poland (NBP), in the
year 2006 foreign direct investment reached $14.7 billion, which represented
the greatest ever inflow of FDI in Poland. Although there was a great deal
of interest in Poland from EU companies, last year belonged to investors
from the Far East. The largest investments were made by Japanese companies.
It is estimated that the Japanese investment in 2006 amounted to over $ 1
billion.
According to European Commission’s report on economic forecast, Polish economy is growing the fastest of all the large EU economies. Poland’s GDP growth rate is expected to touch 6% and the inflation rate 2% for the last fiscal.
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ECUADOR
India-Ecuador Trade up by over 42% |
Total trade between Ecuador and India in 2006 was worth US$ 99.25 million recording a growth of 42.85% over 2005. India’s exports to Ecuador amounted to US$ 49.69 million (up by 48.05% over 2005) and imports were US$ 49.63 million (up by 37.49% over 2005). Principal Indian exports were zinc alloys (7.4 million), pneumatic tyres (3.6 million), motorcycles (2.6 million), polycarbonates (2.06 million), motor cars (1.8 million), products of iron and steel (1.07 million). India’s main imports from Ecuador were of petroleum (45.11 million) and wood and wood blocks (3.5 million).
