FIEO participates in

Suveniruri - Christmas Fair

View of Romexpo Exhibition Centre

As a prelude to market ing efforts being coordinated for setting up of Indo Roma Trade Centre (IRTC) in Bucharest, FIEO led a delegation of 38 Companies to the Suveniruri - Christmas Fair held at Romexpo Exhibition Centre, Bucharest, Romania from 1 to 9 December. The delegation comprised of several members of IRTC who sought to have first hand knowledge of the Romanian market with respect to the popularity and acceptability of the Indian products.

The FIEO delegation was led by Mr. Sharad Kumar Saraf, Chairman, FIEO, Western Region. Mrs. Tinoo Joshi, Secretary General, & Mr. Rajesh Bhatia, Jt. Director, FIEO, Western Region were also part of the delegation. Most of the participants through FIEO received good response for their exhibits.

Indian Ambassador to Romania Mr. D Chakravarty visited Indian Pavilion on 4th December. He was enthused with the large Indian contingent displaying a range of products including leather, gifts, garments, jewellery, tiles, processed food, handicrafts, etc. He actively interacted with the participants and informed them about various opportunities that existed in the Romanian markets for the Indian products and services.

Over the years, Suveniruri has become the largest Romanian exhibition for gifts and souvenirs. It allows the businessmen and the visiting public alike the chance to make their choice and to buy gifts or souvenirs for their beloved folks before Christmas. Toys, jewellery, glassware, paintings, icons, handicraft and decorative items, cosmetics, clothes, leather items and shoes were the major attraction at the fair. It is the most popular retail-cum-display and has the largest footfalls amongst all the fairs in the country. This year too the popularity of the fair was no exception.

FIEO’s participation in Suveniruri also aimed at promoting Indo Roma Trade Centre (IRTC), which is scheduled to commence operations from the end of April 2008. Indo Roma Trade Centre is the first of the series of India Trade Centres being set up by FIEO across the world. A number of shopping centres including Carrefour are located in the vicinity of the IRTC.

While the Fair was in progress, FIEO participants were taken to the location of IRTC so that they could have a first hand view of the offshore office. The participants had a meeting with the managers of the building who showed them the plans of the building and also discussed with them the progress so far.

H.E. Mr. D Chakravarty, Ambassador of India to Romania (right) discussing with Mrs. Tinoo Joshi, Secretary General, FIEO.

Indo Roma Trade Centre

Indo Roma Trade Centre - Orion Building, Bucharest.

Management Structure

  • India Trade Centre (Romania) - has been registered under Romanian Law as "Indo Roma Trade Centre s.r.l" to promote trade between India & Romania and in the Region.

  • To function on self-financing basis with equity raised from its member-stakeholders & the MAI grant received from the Ministry of Commerce & Industry and also based on service charges levied from time to time.

Functions of IRTC

  1. Display Centre to showcase products and catalogues

  2. Offshore office

  3. Permanent contact point for trade and Retail

  4. Platform for multi-products and services

  5. ‘Market Access Hub’ through various market promotion activities, such as

  • Web-site and other electronic promotion

  • Effective coverage in news print/audio-visual media.

  • Direct Marketing through e-mailers, post, personal visits.

  • Liaisoning with the Indian Embassy and Chambers of Commerce in Romania and other country offices & chambers

  • Participation in trade fairs organized by ROMEXPO, National and local Chambers of Commerce of Romania and similar authorities in the region.

  • Buyers Sellers Meet

  • Investment Meet

  • Other promotion activities

vi.   Co-ordinate visits of Romanian Companies to India and vice versa

vii.  Prepare a data base of Buyers/Traders/Investors/Promoters representing EU, Balkan & CIS countries.

viii. Policy changes and related rules and regulations on international trade in the region.

ix.  Prepare Market Research Reports on international trade in the region periodically

x.   Prepare a Directory on leading trade fairs in Romania and in EU, CIS & Balkan Region.

xi.  Prepare a list of trade magazines, journals, etc in Romania and neighbouring countries in which members can advertise and draw better mileage on promotion of Indian products.

xii. Other Trade Facilitation activities including organizing events, collaboration and networking, documentation, accounts and other secretarial services.

OTHER SERVICES

  • IRTC being a legal entity registered under Romanian Corporate Law can engage itself in a number of other trade facilitation activities. Some of them are illustrated as follows:

  • To do business on behalf of its members with full entitlement to claim refund of VAT (19%).

  • Participation in all Romanian and EU business events, Trade Fairs, etc at differential cost.

  • Membership facilities in Romanian Chamber of Commerce and similar other authorities, Trade Associations in the Region.

  • Provide warehousing facilitation services by outsourcing warehousing services which will enable members for

      Ø Timely delivery of shipments

      Ø Consign goods to IRTC without waiting for L/C to be opened

 

INDO ROMA TRADE CENTRE SRL can effectively function as Offshore Office cum Display Centre, Market Access cum Business Hub & Redistribution Centre.

The below mentioned factors were the main drivers which strengthened our decision to set up the Trade Centre in Romania:

1. Locational Advantage

  1. Southeastern Europe, bordering the Black Sea, between Bulgaria and Ukraine. Coastline - 225 km. Border countries: Bulgaria 608 km, Hungary 443 km, Moldova 450 km, Serbia and Montenegro 476 km, Ukraine (north) 362 km, Ukraine (east) 169 km

  2. Ideal location for shipment of goods – connected through the Danube River, throughout Europe right from Bulgaria upto Antwerp through the Black sea Route [Corridor 7, river corridor (Constanta-Basarabi-Danube –Main-Rhine)].

  3. 6 International airports (Henry Coanda (Otopeni Airport) and Baneasa Airports in Bucharest and the airports in Timisoara, Cluj, Sibiu, Constanta)

  4. Well connected through the land route throughout the Balkan region and the European Countries. [(Corridor 4: for motor vehicles & railways (Berlin-Prague-Budapest-Arad-Bucharest-Constanta-Istanbul-Salonike)] and [Corridor 9: for motor vehicles & railways (Helsinki-Moscow/Kiev-Odesa-Bucharest-Constante-Alexandropolis)]

2. Economic Overview

  • Strong economic growth:

       Total GDP and its growth during the most recent quarter and previous year.

       Total GDP in 2006: 131.48 Latest data (Q2/07): 36.304,63 Data of previous period (Q1/07): 28.667,69

       Growth rate during Q2/07: 27%

Previous Year (2006): 8.4% l Revaluation in 2005, making 10,000 "old" lei equal 1 "new" leu

  • Despite the global slowdown in 2001-02, strong domestic activity in construction, agriculture and consumption have kept GDP growth above 4%.

  • Romania’s recent reform efforts in preparation for EU accession commended by IMF

  • High Domestic demand due to sharp increase in private consumption and investment

3. Infrastructure

  • A wide range of natural resources, including fertile agricultural land, coal, oil and gas and a significant tourist potential

  • A liberal investment legislation, based on free, non-discriminatory access to markets and economic sectors

  • The presence of branch offices and representatives of well-known international banks (Citibank, ABN-AMRO, ING Bank, Chemical Bank, Creditanstallt etc.)

  • A skilled, relatively low priced labour force, well trained particularly in technology and engineering.

4. Potential Market Size (Based on Population figures)

  • A large domestic market, the second largest in Central Europe

  • Access to over 37 crore consumers in & around Romania

Romania 22,276,056 Bulgaria   7,322,858 
Hungary  9,956,108 Moldova 4,320,490
Serbia 10,150,265 Ukraine  46,299,862
Greece 10,706,290 Croatia 4,493,312
Belarus 9,724,723 Austria 8,199,783
Czech Republic 10,228,744 Georgia  4,646,003
Armenia   2,971,650 Azerbaijan 8,120,247
Italy 58,147,733 Switzerland  7,554,661

France

63,713,926

Germany

82,400,996

 TOTAL                                       371,233,707

Source: CIA World Factbook

 

5. India– Romania (Bilateral Trade)

(a) Total trade of Romania and its growth during September and previous year and trade balance

  • Total Trade September 2007-

Import: 5996.1 Export: 3556.6

Growth rate during Sep.2007: Import: 49% Export: 40% Trade growth rate in 2006:

Import: 25% Export: 16% Trade Balance September 2007: -2439.5

(b) Total trade of Romania with ten major partners in January - September 2007

 

IMPORTS

No. Country  Total trade No. Country  Total trade
1 Germany 9073.4 2 Italy  6799.7
3 Hungary  3666.7 4 Russian Fed. 3336.1
5 France 3292.9 6 Turkey 2943.8 
7 Austria  2511.4 8 Holland 1848.5 
9 Poland 1774.1 10 China 1660.1

                                                                                                                                    EXPORTS

No.

Country

Total trade

1

Italy

5424
2 Germany 5274.5
3 France  2345.4
4 Turkey 2243.8
5 Hungary 1710.8
6 UK  1323.3
7 Bulgaria  876.7
8 Austria 796
9 Spain  687.6
Meeting at Orion building. Mrs. Tinoo Joshi(extreme left) in talks with IRTC participants. 10 Poland 681.3

(c) Total trade with India and its growth by top ten commodities (See tables in box)

(d) Total trade and its growth in services

Turnover  for services in September 2007: 2119.8

Turnover for services in September 2006: 4321.1

Growth rate: 104% 

 

(e) The principal five import sources of Romania

 

1. Germany     2. Italy       3. Hungary     4. Russian Federation      5. France

 

(f) The principal five export commodities of Romania for September 2007

 

6.   Electrical and mechanical machines, devices and equipments; sound and image display and recorders

7.   Common metals and such articles

8.   Textiles and such articles

9.   Transport means and materials

10. Mineral products

 

(g) The principal five import items of Romania for September 2007

 

11. Electrical and mechanical machines, devices and equipments; sound and image display and recorders

12. Transport means and materials

13. Mineral products

14. Common metals and such articles

15. Textiles and such articles

 

(h) Top five items of export from India to Romania and top five items of import for September 2007

EXPORTS FROM INDIA TO ROMANIA

1. Chemical and connected industries products

2. Common metals and such articles

3. Textiles and such articles 4. Plastic and rubber materials and such articles

5. Electrical machines, devices and equipments; sound and image display and recorders

 

IMPORTS OF INDIA FROM ROMANIA

 

1. Common metals and such articles

2. Electrical machines, devices and equipments; sound and image display and recorders 
3. Chemical and connected industries products

4. Transport means and materials

5. Plastic and rubber materials and such articles

 

1 GDP in billion US$; all other figures represent million US$

2 in comparison with correspondent period of 2006

3 total exports and total imports refer to the total volume of trade, not only to the top ten commodities

4 without VAT; current prices; turnover for the following services: transport, post, telecommunications, real estate transactions and services mainly rendered to the enterprises.

 

EXPORTED TO ROMANIA

No.	Commodity			       Total Imports    Total Imports        Growth Rate
					  September 2006   September 2007
1.	Chemical and connected industries products	3.91	17.38		345%
2.	Common metals and such articles		0.99	11.98		1110%
3.	Textiles and such articles 			1.48	2.03		37%
4.	Plastic and rubber materials and such articles 	0.31	1.98		539%
5.	Electrical machines, devices and equipments; 	4.02	1.93		-52%
	sound and image display and recorders
6.	Food products, beverages and tobacco		0.61	0.94		54%
7.	Articles made of stone, cement, ceramics, 		0.68	0.54		-21%
	glass and other similar materials 
8.	Vegetal products				0.34	0.31		-9%
9.	Transport means and materials 			0.13	0.26		100%
10.	Footwear, hats, umbrellas and such articles		0.93	0.15		-84%

TOTAL EXPORTS 					23.09	38.01		65%
 
IMPORTED FROM ROMANIA

No.	Commodity			       Total Imports   Total Imports        Growth Rate
					    September 2006	September 2007		
1.	Common metals and such articles		9.63	34.18		255%
2.	Electrical machines, devices and equipments;  	2.87	4.18		46%
	sound and image display and recorders
3.	Chemical and connected industries products 	0.31	2.51		710%
4.	Transport means and materials			1.09	2.1		93%
5.	Plastic and rubber materials and such articles 	0.63	0.32		-49%
6.	Textiles and such articles			0.01	0.11		1000%
7.	Mineral products				0.12	0.1		-17%
8.	Articles made of wood, raft and wattle		-	0.07		-
9.	Vegetal products				-	0.06		-
10.	Footwear, hats, umbrellas and such articles		-	0.02		-

	TOTAL IMPORTS				14.8	43.73		195%

 

Federation of Indian Export Organisations
New Delhi, INDIA.