Embassy of India Djordja Radojlovica 7a Belgrade 11040 (Serbia) Tel: +381 11 2666-520 Fax: +381 11 3674 209 Email: [email protected]Com/Bel/205/1/16 Dear Sir / Madam Enclosed herewith is the Commercial Report in respect of the Republic of Serbia for the month of October 2016. 2. We would like to draw your kind attention to the investment opportunities available in Serbia listed on page 10-11 of the report. The information may be disseminated suitably at your end. Regards Yours sincerely (Upendra Singh Negi) Attaché (Economic & Commercial)
Enclosed herewith is the Commercial Report in respect of the Republic of Serbia for the month of October 2016. 2. We would like to draw your kind attention to the investment opportunities available in Serbia listed on page 10-11 of the report. The information may be disseminated suitably at your end.
Foreign trade, in million USD 2015 Up to September 2016
Export of goods 13,365.2 11,087.4
Import of goods 18,216.2 14,239.3
Foreign trade deficit - 4,851.0 - 3,151.9
Total Trade 31,581.4 25,326.7
Balance of Payment, in million USD 2015 In September 2016
Current account deficit (exc. grants) -1.765 -982
Current account deficit (exc. grants), as % of GDP / -
Balance of payments, total 164 -905
Foreign direct investments, net in million USD 1,650.0 1,415
Monetary and Foreign Exchange Indicators 2015 In September 2016
Foreign currency reserves of NBS, in Billion USD 13.0 12.3
Value of USD against Serbian Dinar (1USD) 111.9 109.90
Value of EUR against Serbian Dinar (1EUR) 121.8 123.29
Employment, wages and pension benefits 2015 In September 2016
Unemployment rate, (%) 16.7 % 15.2 %
Net wages, period average, in Serbian Dinars. 51,485.- 46,558.-
Net wages, period average , in USD 460.1 423.6 Source: Statistical Office of the Republic of Serbia, National Bank of Serbia
* Estimate GDP growth for 2016
Quarterly figures→
GDP Growth in 2015 GDP Growth in 2016 1st Q. 2ndQ. 3rd Q. 4th Q. 2015 1st Q. 2ndQ. 3rd Q. 4th Q. 2016
Quarterly GDP Growth
-2.0 % 1.0 % 2.2 % 2.0 % 0.8% 3.8% 2.0 % 2.7*
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Top 5 Imports [January- September 2016]
Products Values in 000
USD
Total 14,239,303
1. Medicaments & chemicals 1,518,789
2. Automotive parts & vehicles 1,463,589
3. Iron, steel, copper, etc. 1,323,034
4. Industrial Machinery 1,058,817
5. Food & agro-products 992,265
Top 5 Countries of Import Values in 000
USD
Total 14,239,303
1. Germany 1,839,291
2. Italy 1,491,612
3. China 1,173,529
4. Russian Federation 1,122,626
5. Hungary 654,836
Top 5 Exports [January - September 2016]
Products Values in 000 USD
Total 11,087,384
1. Food & agro-products 2,337,835
2. Motor vehicle, parts & car tires 1,894,238
3. Products of iron, steel, copper 1,294,129
4. Industrial machinery 955,299
5. Electric appliances 909,291
Top 5 Export Destination Countries Values in 000 USD
Total 11,087,384
1. Italy 1,684,539
2. Germany 1,463,500
3. Rep. of Bosnia and Herzegovina 924,253
4. Romania 604,558
5. Russian Federation 579,313
Countries by Import Countries by Export
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
Germany Italy China Russia Hungary
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Italy Germany Bosnia Romania Russia
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Top Ten Trading Partners [January- September 2016]
Countries Values in 000 USD
Total Trade 25,326,687
1. Germany 3,302,792
2. Italy 3,176,151
3. Russian Federation 1,701,939
4. Bosnia and Herzegovina 1,245,618
5. China 1,192,220
6. Romania 1,010,313
7. Hungary 998,373
8. Poland 887,118
9. Slovenia 794,034
10. France 741,808 Source: Statistical Office of the Republic of Serbia, National Bank of Serbia
1. FOREIGN TRADE WITH INDIA
India-Serbia bilateral trade from January to September 2016 amounted to US$ 106.7 million, a decrease of 6.9% compared to the same period in 2015, with Indian exports to Serbia valued at US$ 99.4 million and Serbian exports to India at US$ 7.3 million.
India’s top 5 Exports to Serbia (Jan-September 2016) India’s top 5 Imports from Serbia (Jan-September 2016)
Product Groups Values in 000, USD
Product Groups
Values in 000, USD
1. Pharmaceutical & chemical products 27,311 1. Pharma / chemical formulation 3,205
2. Textile, yarn, garments & footwear 17,960
2. Tobacco / cigarettes 2,501
3. Products of iron & steel 10,263
3. Industrial machinery 544
4. Coffee, sesame seeds & food prod. 8,130
4. Plastic products 282
5. Plastic products 6,170
5. Telecom equipment 245
Top 10 Products Exported by India (Jan-Sep 2016)
Values in 000, USD
Top 10 Products imported from Serbia (Jan-Sep 2016)
Values in 000, USD
1. Other heterocyclic compounds (nitrogen hetero-atom)
6,571 1. Cigarettes
2,501
2. Medicaments, retail 5,071 2. Acetic acid 2,315
3. Coffee 4,097 3. Derivatives containing nitro and
nitroso group 874
4. Polyethylene in primary forms 3,568 4. Plastic fittings for pipes, tubes 209
10. Parts for pumps, compressors, fans 1,465 10. Printed circuits 53 Source: Statistical Office of the Republic of Serbia
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2. COMMERCIAL DEVELOPMENTS IN SERBIA 2.1 Main Economic Overview
The International Monetary Fund (IMF) delegation visited Serbia from 20th October to 1st November 2016 for the 6th review of Serbia's Stand-by Arrangement worth EUR 1.2 billion signed with the IMF in November 2014. The IMF delegation, led by Senior Resident Representative James Roaf, discussed with the Serbian Government the outlook of the 2017 state budget. Another important issue discussed was the progress and evaluation of key structural reforms of the public sector. The IMF approved a slight increase in state pensions of upto 2% and an increase in state wages of upto 5%. Serbian Prime Minister Aleksandar Vucic stated since the surplus in the 2016 budget is higher than expected there is room for increased of wages and pensions which should further stimulate the growth of the economy. According to PM Vucic despite measures of fiscal consolidation Serbian GDP growth in 2016 is expected to reach 2.8% while in 2017 GDP growth should further accelerate to 3.5%. To support the 2017 budget the Serbian Government has taken a favorable loan of approximately USD 1 billion from Abu Dhabi Development Fund, with an annual interest rate of 2.25%. The loan repayment period will be 10 years, including a five-year grace period. This is the second such loan approved by the Abu Dhabi Development Fund to Serbia. World Bank Chief Officer in Serbia Tony Veheijen stated that since 2013, Serbia has considerably improved the investment environment and is now back on the path of economic growth and development. In 2013 the country was on the verge of bankruptcy, but now has a stable budget, lower inflation and lower debt. However, the Government still needs to finish reforms and restructuring of the public sector and state owned companies, including pharmaceutical company Galenika and the Serbian Petrochemical complex Petrohemija. The Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic lead the Serbian state delegation at the annual assembly of International Monetary Fund (IMF) and World Bank (WB) Governors held in Washington from 7-9 October. The Serbian delegation discussed the latest macroeconomic and fiscal trends, monetary policies and progress in structural reform, in the context of implementation of present three-year precautionary stand-by arrangement. The NBS delegation discussed with World Bank representatives existing projects that are being financed in Serbia and laid out a plan of new projects the 2016-2020 period. Serbian Minister of Mining and Energy Aleksandar Antic stated that Serbia is preparing amendments to the Law on Energy which would harmonize local legislature with laws of the European Union. Due to high dependency on energy imports, the Government is looking to stimulate investments in renewable energy sources and has set a goal of meeting 27% of its energy needs (1,000 MW) from renewable energy sources by 2020, while Serbia currently has capacities of just 80 MW. A very important segment in this strategy is the development of wind energy parks. The Government has adopted Incentives for electricity production from renewable sources which include guaranteed purchases of wind energy as per the feed-in tariff of 9,20 c € / kWh for a 12 year period. In the next 10 years Serbian Electric Power Company (EPS) is also expected to invest close to Euro 800 million in the domain of environmental protection. Serbia’s capital has received B1 credit rating with positive outlook for the first time, which according to Belgrade Mayor Sinisa Mali will further increase the attractiveness of the Serbian capital for foreign investors. Credit rating agency Moody's Public Sector Europe (MPSE) has assigned a B1 issuer rating to the City of Belgrade with a positive outlook. The B1 rating reflects Belgrade’s prudent budgetary management, characterized by sound operating surpluses, continuing comfortable cash reserves, relatively high but declining debt burden and its crucial role in the national economy. 2.2 Inflation in October 2016 amounted to 1.5 %. Annual inflation during 2015 amounted to 1.5%.
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2.3 Industrial production During the period from January to September 2016, industrial production in Serbia increased by 6.5 %. Trends in the main sectors in September 2016 as compared to September 2015, were as follows: • electric power, gas and water supply – growth of 15.2 %, • mining and quarrying– growth of 0.4 % and • manufacturing– growth of 3.7 %, The product-wise data on industrial production in September 2016 was as follows: • Energy- fall of 7.5 %, • Intermediate products -growth of 12.0 %, • Durable consumer goods – growth of 13.3 % • Non – durable consumer goods - growth of 9.6 % and • Capital goods – growth of 5.4 %, The biggest reason for growth of industrial production in September 2016 was the increase of manufacturing of chemicals, food products, metal products, pharmaceuticals and generation of electricity. 2.4 Average Net Wages The average net wages paid in September 2016 in Serbia stood at RSD 46,558.- which reflected an increase of 2.8% in nominal terms and an increase of 3.4 % in real terms when compared to the average net wages paid in August 2016. The average gross wages in September 2016 amounted to RSD 62,150.-. 2.5 Serbia’s Foreign Trade The overall external trade of Serbia from January- September 2016 amounted to USD 25.3 billion, a 7.7% increase compared to the same period in 2015. The value of Serbian exports amounted to USD 11.1 billion, an increase of 10.3 % when compared to the same period in 2015. The value of imports amounted to USD 14.2 billion, an increase of 5.8% relative to the same period in 2015. The trade deficit from January to September 2016 amounted to USD 3.1 billion, a decrease of 7.5 % in comparison to the figure for the same period in 2015. The external trade in the reference period touched the highest level with countries with which Serbia has signed agreements on free trade. EU member countries accounted for 64.7 % of Serbia’s total external trade. Serbia’s second major partners were the CEFTA countries. The surplus in external trade with CEFTA up to September 2016 amounted to USD 1.4 billion, resulting mainly from export of agricultural products (cereals and produces thereof and various types of drinks), steel and various finished products. Major items of import were iron and steel, coal, fruits & vegetables and medicaments. Exports to CEFTA countries valued USD 2.0 billion while imports from CEFTA were to the tune of USD 550 million. Top exports in September 2016 were automotive wires (USD 57 million), diesel cars up to 1500 cm3 (USD 54 million), automotive tyres (USD 28 million), petrol cars up to 1500 cm3 (USD 28 million), sunflower seeds (USD 26 million), diesel cars 1500-2500 cm3 (USD 25 million), refined cooper (USD 23 million), hot-rolled products of iron & non-alloyed steel (USD 22 million), ac generators over 750 KVA (USD 21 million) and cigarettes /tobacco (USD 21 million). Top imports in September 2016 were automotive parts (USD 85 million), retail medicaments (USD 46 million), crude oil (USD 25 million), natural gas (USD 23 million), phosphate chalk (USD 19 million), gaseous oils (USD 18 million), road tractors/trailers (USD 14 million), phones for network stations (USD 14 million), and electric conductors <1000V (USD 14 million). 3. MAJOR INVESTMENTS WITHIN AND OUTSIDE THE COUNTRY FOREIGN INVESTMENTS World Bank allocates USD 350 million for reforms in Serbia: Head of World Bank (WB) Office for Serbia Tony Verheijen stated that USD 350 million of financial support is planned for Serbia for reforms and
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investments in the sector of finance, energy and transport by June 2017. In 2016, the WB Board of Executive Directors have already approved two Serbian projects. The first is a development loan which is intended for support of the state budget, worth Euro 90 million. The second approved project is an investment loan of Euro 35 million for completion of the Corridor X road segment. German firm Kromberg & Schubert plans to invest Euro 29 million: German company Kromberg & Schubert which is manufacturing automotive electric cable systems plans to set up a factory in the city of Krusevac, an investment worth Euro 29 million. The Serbian Government will assist the project with Euro 9.5 million in subsidies for employment of close to 4,000 workers. Japanese Yazaki to invest Euro 10 million in local factory: Japanese company Yazaki which manufacturers electronic and electrical systems for the automotive industry has revealed its plans for setting up a factory in the city of Sabac, an investment worth Euro 10 million. The Sabac Municipality will support the Japanese investor with subsidies worth Euro 2.4 million. Around 1,700 workers are planned to be employed in the factory. MK Fintel Wind invests Euro 10 million in wind farm: An industry pioneer in the field is MK Fintel Wind, a joint venture of the Serbian conglomerate MK Group and Italy's Fintel Energia Group has invested Euro 10 million in a 6.6 MW La Piccolina wind farm in Vrsac. The company had earlier invested Euro 15 million in its first wind farm in Kula. Turkish firm Aster Textile is opening a factory in Serbia: Turkish company Aster Textile announced that it would invest Euro 9 million construction of a textile factory in the city Nis in southern Serbia. The Serbian Government will support the Turkish firm with Euro 2 million of subsidies. French Mecafor to open a factory in Kikinda: The French company Mecafor is planning to open a factory for manufacturing of metal parts for the automobile industry in the town of Kikinda. The French company would invest around Euro 5 million and employ 80 skilled workers. Turkish Tibet Moda to open production line in Cuprija: Turkish textile company Tibet Moda has presented its plans to open a production line in the town of Cuprija and employ close to 1000 workers. SERBIAN INVESTMENTS Telecom Serbia plans to invest Euro 150 million in upgrading of its services: Serbia’s largest telecommunication company Telecom Serbia has signed a contract worth Euro 150 million with the Chinese Huawei Group which includes the purchase of equipment, services and works on the modernization of its network. Telecom Serbia wishes to offer its customers the highest quality service in the field of Internet and multimedia. Serbian Government to invest Euro 11 million in overhaul of Nis Airport: Serbian Minister of Civil Engineering, Traffic and Infrastructure Zorana Mihajlovic stated that the Government has invested Euro 4.5 million so far in the development of the Nis Airport and additional Euro 6.5 million will be invested during the next two years. Serbian Sloboda ordnance factory reconstructs its production facilities: Serbian Ordnance Factory Sloboda located in the city of Cacak invested Euro 10 million in overhaul of its production line damaged during NATO bombing in 1999. 4 OTHER COMMERCIAL ITEMS OF INTEREST
Chinese State Bank to start with operations in Serbia in 2017: According to a statement by the National Bank of Serbia, the Bank of China affiliation from Hungary has started the application procedure for obtaining a permit for registering a commercial bank in Serbia. The Bank of China will finance ongoing bilateral infrastructure projects and would offer loans to both local and foreign companies.
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EU has granted Euro 40 million of aid to Serbia for migrant and refugee matters: The European Union (EU) delegation in Serbia has announced that Euro 40 million in aid and support has been granted to Serbia in the period from September 2015 to September 2016. Serbian Authorities have dealt with the migration crisis in a responsible and humane way. Belgrade and Hong Kong sign air traffic agreement: On 4th October 2016 Serbian Minister of Construction, Transportation and Infrastructure Ms Zorana Mihajlovic and Hong Kong Special Administrative Region Mr Anthony Cheung sign an air traffic agreement. Minister Mihajlovic also presented to the visiting delegation from Hong Kong the development plan of the Belgrade International Airport “Nikola Tesla”. The signed agreement is expected to boost strengthen bilateral economic and cultural ties. Serbia- Poland Business Forum held in Belgrade: On 20th October the Serbian Chamber of Commerce, Polish Chamber of Commerce and the Polish-Balkan Chamber of Commerce organized a business summit which gathered more than 90 companies. At the summit the possibilities for bilateral cooperation and enhancing trade relations were discussed. Poland is Serbia’s eight foreign trade-partner with bilateral trade in 2015 amounting to Euro 940 million. Serbian-Albanian Business Forum: Serbia – Albania Business Forum was held in the city of Nis with participation of approximately 300 businessmen. The summit was inaugurated by Prime Minister Aleksandar Vucic of Serbia and Prime Minister Edi Rama of Albania. The forum organized in the southern Serbian city was the first big summit of Serbian and Albanian businessmen and included companies from the food industry, trade, electric and machine industry, civil engineering, chemistry, metal processing, lumber industry, tourism, hotel and telecommunication sectors. Germany to support development of sustainable energy sources in Serbia: German Ambassador to Serbia Axel Dittmann stated that Germany will continue to support Serbia in development of sustainable energy resources and climate preservation. A focal point in this cooperation will be waste management, waste water facilities, boosting energy efficiency, hydropower and wind power. Ambassador Dittmann also noted that a public campaign was equally important with the aim of changing consciousness and creating a greater sense of responsibility amongst citizens. FIC is lobbying for Serbia in Brussels: Delegation of the Foreign Investors Council (FIC) in Serbia visited Brussels where it met with representatives of the European Commission (EC). The main objective of the visit was for FIC to urge the EC to provide strong support to Serbia also through the accession negotiations and the assistance instruments and to stimulate stronger economic development of Serbia. The FIC brings together around 130 companies in Serbia that have invested more than EUR 23.5 billion in the country and employ more than 97,000 people. Zastava Arms exports to more than 40 countries worldwide: The Kragujevac based Zastava Arms factory has, in the first seven months of 2016, exported more than 35.000 weapon units of different caliber to over 40 countries worldwide. The company is known for its quality automatic and semi-automatic weapons which are sold on the markets of US, Cameroon, Iraq, UAE, Jordan, Algeria, Ghana, Oman etc. Since 2005, Zastava Arms is also an official supplier of weapons to UN peacekeeping missions. FAP, Zastava Trucks and Prva Petoletka are jointly making combat vehicles: A prototype of the new domestic combat vehicle for the Serbian Army is jointly being made by Priboj Car Factory (FAP), Zastava Trucks and Trstenik-based Prva Petoletka – Namenska. The vehicle was presented to the public on October 22 in Novi Sad, during the national military parade. New military combat vehicle FAP 2026 PS/AV 6X6 (six-wheel drive) is being made on FAP truck’s platform, Zastava’s truck factory is in charge of assembling of the armored cabin and Prva Petoletka is mounting the BOFORS system i.e. anti-airplane cannon with 40 mm caliber. FCA to launch a redesigned Fiat 500 L model soon. Fiat Chrysler Automobiles (FCA) is planning to launch a redesigned Fiat 500L model which is being assembled in the Kragujevac based plant. FCA is manufacturing the 500L model since 2011, this is the first redesign the B segment family hatchback is undergoing. FCA is expecting that the fresh looking 500L will boost sales on its main markets in the US and EU.
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5. SPECIAL INITIATIVES BY THE MISSION Vibrant Gujarat 2017: Serbian Prime Minister Aleksandar Vucic has been invited for Vibrant Gujarat during 10-13 January 2017. India-Europe29 Business Forum: Serbian leadership, Chambers and Businesses have been invited to participate in India-Europe29 Business Forum to be held on 8-9 December 2016 in New Delhi.
India – Serbia Joint Economic Committee Meeting: The Serbian Ministry of Tradem tourism & Telecommunications, Prime Minister’s Office, Chambers were invited to 3rd Meeting of India-Serbia Joint Economic Committee proposed to be held in December/January in New Delhi. Visit of Dr. Jitendra Singh, Minister of State (PMO) to the Republic of Serbia: Dr. Jitendra Singh, Minister of State (Independent Charge), Ministry of Development of North Eastern Region, Prime Minister’s Office, Personnel, Public Grievances & Pensions, Department of Atomic Energy and Department of Space of India visited the Republic of Serbia from 12-16 October 2016. During the visit, Dr. Singh had meeting with H.E. Mr. Aleksandar Vucic, Prime Minister of the Republic of Serbia. Dr Singh also met H.E. Ms Maja Gojkovic, Speaker of the National Assembly of the Republic of Serbia. H.E. Mr Ivica Dacic, First Deputy Prime Minister and Minister of Foreign Affairs hosted a dinner in honour of visiting Minister of State in Belgrade. The visiting Minister also met H.E. Mr Branislav Nedimovic, Minister of Agriculture & Environmental Protection and H.E. Mr Rasim Ljajic, Deputy Prime Minister and Minister of Trade, Tourism and Telecommunications of the Republic of Serbia. MOS(PMO) had a Roundtable with professionals and business persons; he also addressed Serbian civil society at Gandhi Jayanti and International Day of Non Violence event at Gandhi Street, Belgrade. Cooperation in the field of IT & Electronics: During the visit of Dr. Jitendra Singh, MOS(PMO), India and Serbia signed Memorandum of Understanding on Cooperation in the field of Information Technology & Electronics which aims to establish inter-institutional co-operation as well as encourage cooperation and exchanges between the private entities, capacity building institutions, Governments and other public and private organizations of the two countries. The two countries will explore cooperation in R&D and Innovation though joint collaborative projects as well as organizing technical exhibitions, workshops, seminars, expert visits & training sessions. India enjoys historical and warm relations with Serbia and both sides have continued with the tradition of supporting each other on issues of core interest. Participation in the 61st International Belgrade Book Fair 2016: The Embassy of India participated at the 61st International Belgrade Book Fair from 23-30 October, 2016. This was the fourth year in a row that the Embassy participated at the Book Fair which attracts thousands of visitors. The India pavilion was inaugurated on October 23, 2016 by Deputy Prime Minister and Minister of Trade, Tourism & Telecommunications H.E. Mr. Rasim Ljajic, Minister of Culture & Information H.E. Mr. Vladan Vukosavljevic and Deputy Mayor of Belgrade H.E. Mr. Andreja Maldenovic. India pavilion showcased books on Indian economy and yoga & Ayurveda. Incredible India promotion at Conference "Check In2016" held at Novi Sad, Serbia, 28th October 2016: Ambassador participated in a panel discussion on “Tourist Superpowers in Unstable World” at the first regional conference on trends in hotel industry called “Check In2016” held at Novi Sad on 28th October 2016. The conference brought together professionals from the Balkans and the whole SEE region and was organized by local Color Press Group and the Novi Sad Fair. The conference was attended by the most prominent leaders in hospitality and tourism industry and tour operators from all around the region. The Ambassadors’ panel included countries with high number of tourists and excellent holiday offers and discussed various issues, experiences, digitization, security challenges and best practices in hospitality and tourism industry as an important economy boosting tool. In cooperation with the Tourism office, Frankfurt, Indian Embassy has been participating for the past three years at the Belgrade International Tourism Fair. The revised text of Air Services Agreement between India and Serbia has recently been finalized to improve air connectivity. There has been a 17% year on growth in the number of Serbian tourists to India in 2015.
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Ambassador awarded Charter of Gratitude by Faculty of Philology, University of Belgrade: On 6th October 2016, Ambassador Mrs. Narinder Chauhan was awarded a Charter of Gratitude by the Faculty of Philology, University of Belgrade. This is in recognition of the strong support extended to the Faculty for the institution of a course on India. A gift of nearly 300 books on India was also made to the University which have now been catalogued for use. It is expected that as a result of these initiatives, the course will become the nucleus of Indian Studies Centre in the University. Bilateral Air Services Agreement: The bilateral negotiation on the revised Air Services Agreement were held in New Delhi on 26-27 October 2016. Shri Arun Kumar, Joint Secretary, Ministry of Civil Aviation led the Indian delegation which included representatives from DGCA, ITP Division of MEA and Air India. Serbian side were led by Mr Vedran Radovic, Adviser- International Relations, Civil Aviation Directorate of Serbia and Mr Andrija Dakovic, Government Affairs Specialist from Air Serbia. Both sides finalized and initialed the text of revised Air Services Agreement and signed an MOU to this effect. Both sides are now in the process of completing the administrative/legislative procedures before the agreement is signed Festival of Indian Film in Novi Sad: On the occasion of Diwali, the Embassy of India in collaboration with the Cultural Center Novi Sad organized the Festival of Indian Films from 30th October to 3rd November 2016 which included Indian movies: The Making of the Mahatma, Queen, 3 Idiots, Bajirao Mastani and Bajrangi Bhaijaan. Commercial & trade visits to India: In October several Serbian companies visited India for commercial & trade purposes mainly from the IT, civil aviation, railways, agricultural, textiles, furniture and steel industry. Some of the companies are Novo Nordisk, NCR doo Belgrade, Blue Bell doo, Hardgate doo, Indicom, Magic fruit Land doo, Ball Packaging Europe, Danieli Systec, IKEA Serbia, Air Serbia, RZD International etc. Ms Ivana Nikolic , Executive Director of Blue Bell visited India to participate in the Indian Handicraft and Gifts Fair held from 14-18 October 2016 in Delhi. Mr Aco Janicijevic, Acting Director and Mr Borislava Jasik, Deputy Director, Accreditation Body of Serbia visited India to attend the Joint Annual Meetings of International Laboratory Accreditation Cooperation and International Accreditation Forum (IAF-ILAC) held in New Delhi on Oct 26 to Nov 04, 2016. IAF-ILAC Meeting was co hosted by National Accreditation Board for Certification Bodies (NABCB) and National Accreditation Board for Technical and Calibration Laboratories (NABL) which is a constituent Board of the Quality Council of India under DIPP, Ministry of Commerce. Mr. Danilo Petrovic participated in ATP Challenger Tournament held in Pune from 22-29 Oct 2016. The Mission has been making several trade promotion efforts to enhance bilateral trade and investment between India and Serbia. The Mission regularly disseminates information on fairs/exhibitions/conferences held by centre and state governments (Vibrant Gujarat, IE29BF, India Stonemart, Global Rajasthan Agri-tech Meet, Tex-Style India 2017, India Steel Expo, India Pharma 2017, India Medical Device 2017, etc being the recent ones) to Serbian companies and to the regional/local Chambers of Commerce. Wide publicity is given to Indian trade events through Mission’s website and social media platforms. Also monthly “India Newsletter” focusing on economic and commercial news are being sent to the Serbian Government Ministries, Agencies, Chambers of Commerce, Municipalities and the local business community. Number of travel visas issued by the Mission: In the month of October 2016, the Embassy issued 103 visas out of which 19 were for business. eTV is gaining popularity and 171 Serbian nationals utilized the facility between March and September 2016. 6. INDIA’S INVESTMENT INTERESTS/FUTURE AUCTIONS AND TENDERS The Serbian Government will look to appoint professional management in the Copper Mining and Smelting Complex RTB Bor: The Serbian Ministry of Economy stated that by the end of 2016 the government plans to publish a public call for engagement of professional management to run the Copper Mining and Smelting Complex RTB Bor. Since RTB Bor is considered a company of strategic importance for the Republic of Serbia, recently a pre packaged reorganization plan was adopted during which USD 1.35 billion of debt is
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intended to be restructured. The Government aims to restructure the company so that with fresh capital of a strategic partner RTB Bor can continue its development of new mines and realize fresh investment projects. The Serbian government has declared 2016 the "Year of Entrepreneurship" and has introduced a new program for support of start-ups and entrepreneurship: Around USD 150 million of funds have been made available for encouraging entrepreneurs out of which 30% will be specifically directed towards women entrepreneurship. The government support for entrepreneurs will not only be financial, but interested parties will receive assistance with preparation of necessary documents, business plans and will undergo training if necessary. The Serbian Chamber of Commerce and Industry as well as the Serbian Development Fund will play an important role in implementation of the new government program. It is worth mentioning that Serbia should be seen both as a local market of about 7.2 million inhabitants and as a regional hub for access to a number of lucrative markets in Europe with which Serbia enjoys preferred trade status because of FTAs with the EU, US, Russia, EFTA, Turkey, Belarus, Azerbaijan, Kazakhstan and CEFTA, etc. Thus, by investing in a Serbian manufacturing facility, Indian companies would gain preferential access to these markets. Serbia is also the only country outside the CIS that enjoys preferential trade access to Russia. This provides an added advantage as the goods produced in Serbia with prevailing value added in Serbia are considered of Serbian origin and can therefore be exported with 1% custom duty to Russia. Serbia offers itself as a low cost manufacturing base with technically qualified manpower to set up manufacturing for local consumption and exports. French firm Lazard chosen as consultant for development of the Belgrade International Airport Nikola Tesla: French consultancy firm Lazard Freres SAS has been chosen as the main expert counselor for the development of Belgrade International Airport Nikola Tesla. Lazard is expected to define a development strategy that will be implemented by January 2018 when the sale of the airport is expected. Director of the Belgrade Airport stated earlier that investments could be expected in a second airport runway, a new passenger and cargo center, business center, hotel and parking garage. The current projected cost of the project is around USD 650 million. Serbian state owned companies up for sale: Serbia's Government has announced plans for sale of several large state companies and their subsidiaries, including Trayal rubber products, Bor Copper Mine and Smelter, PKB Corporation, Car Factory Priboj (FAP), Resavica coal mines, Azotara fertilizer plant, furniture manufacturer Simpo, etc. More information is available at: http://www.privreda.gov.rs/kontakt/
UPCOMING TRADE FAIRS AND EXHIBITIONS IN SERBIA
39th International Fair of Tourism 23-26 February 2017 www.beogradskisajamturizma.rs/en/ 5th Balkan Textile Fair 9-11 March 2017 http://www.balkantekstila.com/ 54th International Automotive Show 23 March- 2 April 2017 International Fair of Horticulture 6-9 April 2017 International Fair of Cosmetics 8-9 April 2017 www.sajamkozmetike.com International Construction Trade Fair 19-23 April 2017 http://sajamgradjevine.rs/en/home/ International Fair of Agriculture 13-19 May 2017 www.sajam.net International Fair of Technical Achievements 15-19 May 2017 www.sajamtehnike.rs International Fair of Medicine 12-14 October 2017 International Fair of Cosmetics 14-15 October 2017 www.sajamkozmetike.com International Energy Fair 4-6 October 2017 http://energetika-ekologija.talkb2b.net/en International Belgrade Book Fair 22-29 October 2017 http://sajamknjiga.rs/en/ International Jewellery Show 2-5 November 2017 International Fair of Furniture, Equipment & Interior Decoration 7-12 November 2017 Ethnic Food & Drinks Fair 22-25 November 2017 More information available at: www.sajam.rs (Belgrade Fair) www.sajam.net (Novi Sad Fair)
Trade Enquiries from India - Indian company Someshwar Metal Pvt Ltd expressed interest in exporting zinc & copper wire products to the Serbian market. List of Serbian importers has been provided to them. - Indian company Bhalala Foods has expressed interest in exporting dehydrated onion & garlic products to the Serbian market. List of Serbian importers has been provided to them. - Indian company Rajkamal Herbs and Aromatics has expressed interest in importing raspberries from the Serbian market. List of Serbian exporters has been provided to them. - Indian company The Himalaya Exports has expressed interest in exporting ceramic tiles, sanitary wares, fittings, construction materials to the Serbian market. List of Serbian importers has been provided to them. - Indian company Textilepeople has expressed interest in exporting garments & home furnishings to the Serbian market. List of Serbian importers has been provided to them. - Indian company Futurelife Pharmaceuticals has expressed interest in exporting nutraceuticals, food supplements
and personal care products to the Serbian market. List of Serbian importers has been provided to them. - Indian company Panoramic Global Impex has expressed interest in exporting fruits & vegetables to the Serbian market. List of Serbian importers has been provided to them. - Indian company Mbellish Stones has expressed interest in exporting granite stones to the Serbian market. List of Serbian importers has been provided to them. - Indian company Alps Export has expressed interest in exporting of granite & natural stones to the Serbian market. List of Serbian importers has been provided to them. Trade Enquiries from Serbia - In October 2016 there were no enquiries from Serbian companies. Useful Links: Serbia Chamber of Commerce and Industry http://www.pks.rs/Default.aspx?idjezik=3 National Bank of Serbia http://www.nbs.rs/internet/english/index.html Federal Statistical Office of Serbia http://webrzs.stat.gov.rs/WebSite/ Government of the Republic of Serbia http://www.srbija.gov.rs/?change_lang=en Ministry of Economy www.privreda.gov.rs Serbian Development Agency http://ras.gov.rs/
