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 August 2016. May we draw your kind attention to the investment opportunities available in Serbia listed on page 11/12 of the enclosed report. The information may be disseminated suitably at your end. Regards Yours sincerely (Upendra Singh Negi) Attaché (Economic & Commercial) Distribution: As per list suggested by ITP Division
Enclosed herewith is the Commercial Report in respect of the Republic of Serbia for the month of August 2016.
May we draw your kind attention to the investment opportunities available in Serbia listed on page 11/12 of the enclosed report. The information may be disseminated suitably at your end.
Foreign trade, in million USD 2015 Up to July 2016
Export of goods 13,365.2 8,583.7
Import of goods 18,216.2 11,051.7
Foreign trade deficit - 4,851.0 - 2,468.0
Total Trade 31,581.4 19,635.4
Balance of Payment, in million USD 2015 In June 2016
Current account deficit (exc. grants) -1.765 -739
Current account deficit (exc. grants), as % of GDP / -
Balance of payments, total 164 259
Foreign direct investments, net in million USD 1,650.0 932
Monetary and Foreign Exchange Indicators 2015 In July 2016
Foreign currency reserves of NBS, in Billion USD 13.0 12.4
Value of USD against Serbian Dinar (1USD) 111.9 111.22
Value of EUR against Serbian Dinar (1EUR) 121.8 123.27
Employment, wages and pension benefits 2015 In July 2016
Unemployment rate, (%) 16.7 % 15.2 %
Net wages, period average, in Serbian Dinars. 51,485.- 45,286.-
Net wages, period average , in USD 460.1 407.2 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-July 2016]
Products Values in 000
USD
Total 11,051,695
1. Automotive parts & vehicles 1,117,976
2. Medicaments & chemicals 1,154,607
3. Iron, steel, copper, etc. 999,656
4. Industrial Machinery 821,233
5. Food & agro-products 780,876
Top 5 Countries of Import Values in 000
USD
Total 11,051,695
1. Germany 1,424,028
2. Italy 1,199,528
3. Russian Federation 895,411
4. China 893,674
5. Hungary 514,949
Top 5 Exports [January - July 2016]
Products Values in 000 USD
Total 8,583,677
1. Food & agro-products 1,803,428
2. Motor vehicle, parts & car tires 1,523,994
3. Products of iron, steel, copper 977,566
4. Industrial machinery 722,752
5. Electric appliances 685,410
Top 5 Export Destination Countries Values in 000 USD
Total 8,583,677
1. Italy 1,382,813
2. Germany 1,133,741
3. Rep. of Bosnia and Herzegovina 696,433
4. Romania 471,030
5. Russian Federation 451,487
Countries by Import Countries by Export
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
Germany Italy Russia China Hungary
0
200000
400000
600000
800000
1000000
1200000
1400000
Italy Germany Bosnia Romania Russia
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Top Ten Trading Partners [January-July 2016]
Countries Values in 000 USD
Total Trade 19,635,372
1. Italy 2,582,341
2. Germany 2,557,768
3. Russian Federation 1,346,898
4. Bosnia and Herzegovina 928,264
5. China 908,227
6. Romania 782,116
7. Hungary 768,128
8. Poland 696,770
9. Slovenia 614,618
10. France 593,069 Source: Statistical Office of the Republic of Serbia, National Bank of Serbia
1. FOREIGN TRADE WITH INDIA
India-Serbia bilateral trade from January to July 2016 amounted to US$ 79.9 million, a decrease of 12 % compared to the same period in 2015, with Indian exports to Serbia valued at US$ 73.6 million and Serbian exports to India at US$ 6.3 million.
India’s top 5 Exports to Serbia (Jan-July 2016) India’s top 5 Imports from Serbia (Jan-July 2016)
Product Groups Values in 000, USD
Product Groups
Values in 000, USD
1. Pharmaceutical & chemical products 19,707 1. Pharma / chemical formulation 2,801
2. Textile, yarn, garments & footwear 13,187
2. Tobacco / cigarettes 2,293
3. Products of iron & steel 8,794
3. Industrial machinery 402
4. Coffee, sesame seeds & food prod. 6,262
4. Plastic products 223
5. Industrial machinery 3,471
5. Telecom equipment 198
Top 10 Products Exported by India (Jan-July 2016)
Values in 000, USD
Top 10 Products imported from Serbia (Jan-July 2016)
Values in 000, USD
1. Other heterocyclic compounds (nitrogen hetero-atom)
4,993 1. Acetic acid
2,315
2. Medicaments, retail 3,656 2. Cigarettes 2,293
3. Aluminium, unwrought 3,556 3. Derivatives containing nitro and
nitroso group 482
4. Coffee 2,971 4. Plastic fittings for pipes, tubes 193
6. Shirts and vests, knitted 1,994 6. Other air conditioning machines 154
7. Ferro-silico-manganese 1,414 7. Parts, n.e.s., articles of group 748 82
8. Parts for pumps, compressors, fans 1,234 8. Printed circuits 54
9. Polystyrene in primary forms 1,176 9. Textile machinery 45
10. Heterocyclic compounds,n.e.s. 1,165 10. Other cartridges 39 Source: Statistical Office of the Republic of Serbia
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2. COMMERCIAL DEVELOPMENTS IN SERBIA 2.1 Main Economic Overview
On 11th August 2016, The Serbian Parliament voted in a new government with 163 positive votes out of the total 250 seats. The new government led by Prime Minister Aleksandar Vucic have 19 Ministers, eight of them new namely Defence Minister Zoran Djordjevic, Justice Minister Nela Kuburovic, Education Minister Mladen Sarcevic, Minister of public Administration & Local Government Ana Brnabic, Economy Minister Goran Knezevic, Minister of Agriculture Branislav Nedimovic, Minister of Education, Science & Technological Development Mladen Sarcevic and Minister of Culture and Information Vladan Vukosavljevic. Reappointed officials include Deputy Prime Ministers & Foreign Minister Ivica Dacic, Interior Minister Nebojsa Stefanovic, Minister of Construction, Transportation and Infrastructure Zorana Mihajlovic, Minister of Trade, Tourism and Telecommunication Rasim Ljajic, Minister of Finance Dusan Vujovic, Minister of Mining and Energy Aleksandar Antic, Health Minister Zlatibor Loncar, Minister of Labor, Employment, Veterans & Social Issues Aleksandar Vulin, Minister of Youth & Sports Vanja Udovicic and Ministers without portfolio Jadranka Joksimovic, Slavica Djukic-Dejanovic and Milan Krkobabic. The Serbian government adopted a letter of intent in which it agreed on revised goals and measures of economic policy for the 2016-2017 period earlier agreed with the International Monetary Fund (IMF) as part of the fourth and fifth revision of a precautionary arrangement and a memorandum on economic and fiscal policy. Public sector reform and privatization of state owned companies will remain the priority of the Government along with raising of the living standard of citizens. Regional stability should ensure a steady inflow of foreign direct investments. Besides the economic reforms other priorities of the Government will be reform of the healthcare and education system, the fight against crime & corruption, increase of the rule of law in all spheres of society. Serbian Prime Minister Aleksandar Vucic stated that during talks with the IMF in October 2016, the Serbian Government will discuss the issue of increase of wages in the public sector and state pension. According to PM Vucic, better than expected fiscal conditions and a low budget deficit have made it possible for the issue to be evaluated. Serbian Minister of Mining and Energy Aleksandar Antic stated that in negotiations with the World Bank (WB) a plan for restructuring of the Electric Power Industry of Serbia has been agreed which should be adopted by the end of March 2017. The plan envisages the financial consolidation of the power company by reducing technical losses, increasing of debt collection and more efficient internal organization of the company by defining redundancies and gaps. Serbian Minister of Transportation, Construction and Infrastructure Zorana Mihajlovic stated that due to large state infrastructure project the construction industry’s share in the gross domestic product (GDP) jumped from 4% in 2013 to 5.5% in 2015. In the next two years with ongoing infrastructure project on Corridor 11, overhaul of the Belgrade-Budapest railroad, construction a new motorway Nis-Merdare-Pristina and overhauling of existing road and rail infrastructure, the share of the construction industry in GDP is expected to reach 7%. The National Bank of Serbia (NBS) stated that the second quarter GDP growth was 1.8% and it expects GDP growth to reach 2.5% in 2016 up from just 0.8% in 2015. In 2017 GDP growth is expected to expand to 3%. NBS will stay committed to its goals of maintaining low inflation and stability of the financial system. Executive Board of NBS decided to maintain the key policy rate at the existing level of 4% as inflation in July amounted to 1.2 % and remained within its annual target limits. 2.2 Inflation in August 2016 amounted to 1.2 %. Annual inflation during 2015 amounted to 1.5%.
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2.3 Industrial production In the period from January to July 2016, industrial production in Serbia increased by 5.4 %. Trends in the main sectors in July 2016 as compared to July 2015, were as follows: • electric power, gas and water supply – fall of 16.4 %, • mining and quarrying– growth of 3.7 % and • manufacturing– growth of 5.2 %, The product-wise data on industrial production in July 2016 was as follows: • Energy- fall of 16.8 %, • Intermediate products -growth of 4.9 %, • Durable consumer goods – growth of 7.8 % • Non – durable consumer goods - growth of 3.1 % and • Capital goods – fall of 7.3 %, The biggest reason for growth of industrial production in July 2016 was the increase of manufacturing of metal products, refined petroleum, tobacco, food and chemical products. 2.4 Average Net Wages The average net wages paid in August 2016 in Serbia stood at RSD 45,286.- which reflected a decrease of 1.9% in nominal terms and a decrease of 2.8 % in real terms when compared to the average net wages paid in July 2016. The average gross wages in August 2016 amounted to RSD 62,474.-.
2.5 Serbia’s Foreign Trade
The overall external trade of Serbia from January-July 2016 amounted to USD 19.6 billion, a 6.9% increase compared to the same period in 2015. The value of Serbian exports amounted to USD 8.6 billion, an increase of 9.0 % when compared to the same period in 2015. The value of imports amounted to USD 11.0 billion, an increase of 5.2 % relative to the same period in 2015. The trade deficit from January to July 2016 amounted to USD 2.5 billion, a decrease of 6.1% 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 65.2% of Serbia’s total external trade. Serbia’s second major partners were the CEFTA countries. The surplus in external trade with CEFTA up to July 2016 amounted to USD 1.1 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 1.5 billion while imports from CEFTA were to the tune of USD 407.1 million. Top exports in July 2016: diesel cars up to 1500 cm3 (USD 48 million), automotive wires (USD 34 million), maize (USD 39 million), cigarettes /tobacco (USD 25 million), automotive tyres (USD 25 million), maize (USD 25 million), hot-rolled products of iron & non-alloyed steel (USD 22 million), petrol cars up to 1500 cm3 (USD 20 million), frozen raspberries (USD 19 million), ac generators over 750 KVA (USD 16 million), and refined cooper (USD 16 million). Top imports in July 2016: automotive parts (USD 66 million), crude oil (USD 53 million), retail medicaments (USD 40 million), diesel cars 1500cc-2500cc (USD 22 million), phones for network stations (USD 19 million), coke and hard coal (USD 17 million), gaseous oils (USD 15 million), railway /tramway wagons (USD 14 million), natural gas (USD 13 million) and iron ore (USD 11 million).
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3. MAJOR INVESTMENTS WITHIN AND OUTSIDE THE COUNTRY FOREIGN INVESTMENTS Teva pharmaceuticals becomes majority owner of Zdravlje/Actavis Serbia: Israeli Pharmaceutical company Teva has completed the acquisition of the generic business of Allergan, who in part owns Zdravlje/Actavis Serbia. Teva pharmaceuticals has taken over Allergan in a deal worth USD 33.43 billion in cash and about 100 million shares of Teva. Dutch Cooperatief IMI Europe to invest Euro 30 million: The Ministry of Economy, The city of Nis and the Dutch automobile parts manufacturer Cooperatief IMI Europe signed a MOU regarding development of a manufacturing plant in Nis. The Dutch company plans to invest over Euro 30 million in the plant for manufacturing automotive electronic parts. The factory in Nis will be the company’s production hub for Central Europe. German company Leoni plans opening two more factories in Serbia: German company Leoni which manufactures cables and wiring systems for the automotive industry has announced plans to invest Euro 22 million and open two more production plants - one in the town of Prokuplje and the other in Doljevac. Leoni is supplying its cable systems to automotive companies such as BMW, Jaguar and Land Rover. Aster textile plans to open a factory in Serbia: The Turkish company Aster Textile famous for manufacturing apparel for many global fashion brands is opening a textile factory in the town of Nis. The company plans to invest Euro 6.5 million in the state of the art textile factory and employ close to 2,000 workers. The plant Manager expects the factory to generate an annual turnover of close to Euro 60 million. JOGMEC and Mundoro to invest USD 4 million in gold mining exploration in the vicinity of Bor : Japan Oil, Gas and Metals National Corporation (JOGMEC) and the Canadian firm Mundoro have jointly obtained a license exploration of 46 hectares in the Bor area for deposits of gold, copper and molybdenum. The two companies will initially invest USD 4 million in the exploration. If the exploration proves fruitful the companies will look to set up a mine in the coming years. EU & Switzerland are grating development aid for infrastructure projects in southern Serbia : The European Union (EU) and the Government of Switzerland, through a development program, are financing 14 projects worth Euro 1.8 million for improvement of infrastructure in the municipalities Southeastern and Southwestern Serbia. EU & Switzerland have set aside Euro 24.5 million for projects related to strengthen of local administration, creating a more favorable business environment, development of infrastructure and policies of social inclusion. Hemofarm takes over Ivancic & Sons: Pharmaceutical company Hemofarm part of the German Stada Group has taken over Serbian pharmaceutical company Ivancic & Sons. The Serbian company will continue producing products under its own brand while Hemofarm will look to push development and production of new products. Magna Seating expanding its manufacturing capacities in Serbia: The Canadian company Magna Seating which has an automobile seating factory in the Serbian town of Odzaci has announced plans to increase current production capabilities and employ an additional 500 workers. Lidl to build supermarket in Jagodina: The German retail company Lidl started construction of its first supermarket in the town of Jagodina. Lidl, one of the largest German supermarket chains, has picked 15 locations across Serbia for its stores.
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SERBIAN INVESTMENTS Government plans to invest Euro 200 million in the overhaul of the Belgrade-Nis railways: Ms Zorana Mihajlovic, Minister of Construction, Infrastructure and Transportation has said that at least Euro 200 million will be invested in the modernization and overhaul of the railway line from Belgrade to Nis. The government is currently evaluating the models of financing the project. Univereksport supermarket chain invests in new distribution centre in Novi Sad: Serbian Supermarket chain Univeksport started construction of a new distribution centre in the city of Novi Sad with an investment of Euro 16 million. The company plans to finish the 30,000 square meters distribution center by May 2017. AIK Bank looking to take over Alpha Bank Serbia: AIK Bank, owned by the Serbian MK Group, has laid out an offer for taking over 100% of operations of the Greek Alpha Bank branch in Serbia. Merger of the two banks would make AIK Bank the fourth largest bank in Serbia with 8.4% of market share. The deal is waiting for the approval of AIK Bank shareholders.
4 OTHER COMMERCIAL ITEMS OF INTEREST US Vice President visits Serbia: Vice President of the United States Joseph Biden visited Serbia on 16 August to hold meetings with Serbian Prime Minister Aleksandar Vucic, President Tomislav Nikolic and Minister of Foreign Affairs Ivica Dacic. During the visit several crucial topics where discussed including improvement of bilateral relations, the Belgrade-Pristina dialogue and the process of Serbia’s EU accession. US companies are among the largest investors in Serbia with investments estimated at USD 3.8 billion. Bilateral trade in 2015 amounted to around USD 540 million out of which USD 250 million were Serbian exports. Swedish Prime Minister visits Serbia: Swedish Prime Minister Stefan Lofven visited Serbia on 16 August and held meetings with Serbian President Tomislav Nikolic and Prime Minister Aleksandar Vucic. The aim of the visit was to voice support for Serbia’s EU integration process and work on expanding trade and investment ties between the two countries. Bilateral trade currently stands at around USD 230 million out of which USD 160 million are Swedish exports to Serbia. Swedish companies have so far invested close to USD 40 million in Serbia and Swedish IKEA is planning to realize a USD 70 million investment in 2016. Kazakh President visits Serbia: President of Kazakhstan Nursultan Nazarbayev arrived on 23 August on a three-day visit to Serbia to discuss possibilities of increasing bilateral cooperation with Serbian President Tomislav Nikolic and Prime Minister Aleksandar Vucic. During the visit several agreements were signed in the field of judiciary and agriculture. Serbia also confirmed participation at the EXPO 2017 in Astana. Kazakhstan as a member country of the Euroasian Economic Union (EEU) has agreed to expand the current free trade agreement with Serbia and include new products such as Fiat 500L cars, sugar, wine, poultry, tobacco, some dairy products. Serbia is expecting to finalize the draft free trade agreement with the EEU by October 2016. Negotiations held with Turkey on further liberalization of the free trade regime: Serbian Deputy Prime Minister and Minister of Trade, Tourism and Telecommunications Rasim Ljajic met with Turkish Minister of Economy Nihat Zeybekci in Istanbul and discussed further improvement of bilateral economic cooperation, as well as further liberalization of free trade regime between the two countries. Ljajic especially explained the need to put sunflower oil among the products that Serbia was exporting to Turkey in a non-customs regime, since the certain countries of the region had a privileged position in that regard. German companies have invested in Serbia over Euro 1.6 billion: According to Mr Axel Dittmann, German Ambassador to Serbia so far German companies have invested more than Euro 1.6 billion in Serbia. Around 350 German companies are doing business in Serbia and these companies employ more than 31,000 workers. The largest single investment is the German Stada Group taking over Hemofarm pharmaceuticals in which USD 200 million has been invested.
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Serbia lowers its trade deficit with Russia: In the first half of 2016 Serbia has witnessed dynamic growth of its exports to the Russian market and a decrease of the trade deficit. In the period from January to June 2016 Serbian exports amounted to USD 379.8 million which is an increase of 17.9%. Exports of agriculture & food products, which amount to 40% of total Serbian exports, increased by 25% and amounted to USD 155 million. The stabilization of the Russian ruble exchange rate has had a positive impact on Serbian exports. In
the same period Russian export to Serbia reached USD 779.4 million ‒ which is a decrease of 17.4% compared to same period in 2015. Iran plans to open regional economic and trade center in Serbia: Iranian Ambassador to Serbia Majid Fahimpour stated that in the next couple of months Iran plans to open a regional economic and trade center in Belgrade which will cover entire region of the Balkans and Southeast Europe. Iran's financial sector has expressed interest to purchase and invest some of the banks in Serbia with the aim of establishing payment operations and to facilitate trade and investments between the two countries. Swiss investment fund presents an offer for Belgrade Agricultural Corporation (PKB): Swiss investment fund Castor is interested to become a strategic partnership of the Belgrade Agricultural Corporation (PKB) which is in the process of privatization. The Swiss fund had sent a letter of intention to the Serbian Government in which it has presented a plan for investments and upgrade of production in the agricultural combine. Serbia is looking for Russian investors for its state petro-chemical complex: Serbian Minister of Economy Goran Knezevic during his recent visit to Moscow presented to Russian companies the possibilities of investing in the three state companies Petrohemija and Azotara located in Pancevo and the Methanol-Vinegar combine (MSK) plant in Kikinda. The Serbian Oil Industry (NIS) in which Russian Gazpromneft is the majority shareholder is the largest creditor to the state petrochemical complex. Chinese companies interested to invest in Budimka fruit processing company: Serbian fruit processing company Budimka from Pozega which is currently in bankruptcy proceedings may be purchased by a Chinese company. During the recent visit of Chinese President Xi Jinping to Belgrade, an agreement was signed in which a Chinese company from the Hebei province has shown interest to become owner of the Serbian factory which produces jams, juices and other processed fruit products. In first five months Serbian Diaspora sent Euro 1.1 billion in remittances: According to a report by the National Bank of Serbia (NBS), in the period from January to May 2016 the Serbian Diaspora had sent Euro 1.1 billion of remittances. The largest inflow came from Germany, Switzerland, Austria and France, which are countries with Serbian communities. The NBS report states that in 2015 remittances amounted to Euro 2.86 billion which was an increase of 9.7% compared to 2014. In the first half of 2016 Serbia exports of honey reach 943 tons: According to the Serbian Chamber of Commerce Serbia will produce less Honey in 2016 than the year before due to unfavorable weather conditions and rainfall at the time of acacia blooming. In 2015 Serbia recorded a record high production of 12,263 tons of honey. In the period from January to June 2016, close to 943 tons of honey worth USD 4.3 million was exported to countries such as Italy, Norway, Austria and Germany. Annual Serbian IT exports amount to Euro 455 million: Exports of IT services from Serbia in 2016 amounted to Euro 455 million, while IT imports reached USD 167 million. With a trade surplus of Euro 288 million the IT industry has higher net exports than Fiat Chrysler Serbia or the Smederevo steelworks. Web solutions and programming account for about 50 % of exports while mobile platforms have a 40 % share in exports. In 2016 Serbian farmers expect sunflower yield of over 700.000 tons: In Serbia approximately 210.000 hectares of land are planted with sunflower, which bring on average 650.000 tons of sunflower seeds annually. Due to favorable weather conditions Serbian farmers expect to produce over 700.000 tons of sunflower seeds in 2016.
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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 scheduled for December 2016: The 3rd Session of India-Serbia Joint Economic Committee is scheduled to be held on 7th December in New Delhi, a day prior to IE29BF.. Ambassador’s calls on Serbian Minister of Agriculture & Environmental Protection: Ambassador called on Mr Branislav Nedimovic, Minister of Agriculture and Environmental Protection of the Republic of Serbia on 23 August, 2016 to congratulate him on his recent appointment and to discuss wide range of issues as outlined in the extant MOU on Cooperation in Agriculture and Allied Sectors. Both sides agreed that there exists considerable potential to improve cooperation in food & agro-industries as well as in the exchange of experience and practices in agricultural science and technology. It was underlined that efforts should be made to learn about the market demands, food quality and necessary safety standards, which would make it easier for businesses to launch their products in both the markets. Ambassador also pointed out the steady rise in the living standard in India and outlined the potential of the Indian market and its demand for high quality products such as Serbian berries & fruits. Ambassador emphasized the importance of attending trade fairs and invited attention to Global Rajasthan Agritech Meet (GRAM 2016) being organized by the Government of state of Rajasthan in association with FICCI, from November 9-11, 2016 at Jaipur. Ambassador also used this opportunity to invite the Hon’ble Minister to lead a delegation from Serbia to the India-Europe29 Business Forum 2016 to be held in December 8-9, 2016 in New Delhi. The Serbian side was briefed on the ongoing cooperation including the presence of Indian agro-machinery companies (TAFE, Mahindra & Sonalika) and reiterated India’s desire to enhance ties in all spheres. Ambassador invited attention to the recently launched India-Serbia Business Forum aimed at redressing trade hurdles. Emphasis was laid on early meeting of India Serbia Joint Commission on Agriculture. Hon’ble Minister sought information about Indian demand of agricultural and food products which could be produced by Serbia. Agriculture & food processing and agricultural machinery are crucial industry segments in India-Serbia trade relations with good potential for trade and investment growth. Celebration of India@70: On 15 August, Ambassador hosted a dinner at her residence to mark the celebration of the 70th Independence Day of India. The event was graced by more than 50 persons including Mr Nabojsa Stefanovic, Serbian Internal Affairs Minister, other senior government functionaries, members of the diplomatic corps and cultural & business personalities. Special supplement on India@70: On the occasion of the 70th Independence Day of India, the Embassy of India in Belgrade brought out a 16 page special supplement "India – The Country of Prosperity" in English language, in collaboration with monthly business magazine CorD. Electronic version of the special edition is available at: http://cordmagazine.com/special-editions/india-2016/ The Embassy brought out a 40 page special supplement “India@70 - A Rising Power” in the monthly magazine Diplomacy & Commerce. Electronic version of the special edition is available at: https://issuu.com/cmcpresentation/docs/india_2016_web?e=23862942/37683488The Embassy also published a special supplement in the renowned daily newspaper Danas Electronic version of the special edition is available at: http://www.danas.rs/upload/documents/Dodaci/2016/Indija_2016_novinarnica.pdf. Special article were published in the weekly magazine Vreme. Ambassador gave an Interview for the Novi Sad newspaper Dnevnik which was also carried by several internet portals such as EuroAsia and House of Good News. Launch of Serbian language website on India: In response to popular demand, the Embassy has launched a new website in Serbian language www.indija.rs . The new mobile friendly website in Serbian language will regularly cover the latest news about India and will not only create awareness of India especially among the youth and the business, it will also assist in the Embassy’s trade promotion efforts.
Serbian capital glitters in the latest Indian blockbuster “Oopiri“: The recently released Indian blockbuster ''Oopiri'', a remake of the French movie 'The Untouchables' was shot on the streets of Belgrade last year. Cooperation in the field of Defence: Major Dragisa Cvijovic of Serbian Army visited India to attend UN Military Observers Course (UNMOC) scheduled from 22 Aug to 09 Sept 2016 at CUNPK, India. At invitation of National Initiative for Safe Sound of Indian Medical Association, Prof Goran Belojevic of Institute of Hygiene and Medical Ecology, Faculty of Medicine, University of Belgrade visited India to deliver a detailed talk on "Cardiovascular effects of noise" and also participate in the deliberations of the Noise and Health International Conference to be held on 27th Aug 2016 in Kolkata. The conference is organised by National Initiative of Safe Sound of IMA jointly with IAOHNS (Indian Academy of Otolaryngology and Head and Neck Surgery) Cooperation in Sports: Mr Velimir Ivic and Ms Teodora Injac of Serbia participated in World Junior Chess Championship held in Bhubaneswar in August 2016. Commercial & trade visits to India: In August several Serbian companies visited India for commercial & trade purposes mainly from the mobile communications, IT, pharmaceutical, medical, steel, engineering, architectural and music industry. Some of the companies are Ceragon Networks doo, Carvel doo, SAP West Balkans d.o.o, Stilles d.o.o, Danieli Systec Engineering d.o.o, Clinical Center of Serbia, IKEA Serbia, etc. 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, 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 August 2016, the Embassy issued 68 visas out of which 13 were for business. eTV is gaining popularity and 125 Serbian nationals utilized the facility between March and August 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 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
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trade status because of FTAs with the EU, US, Russia, EFTA, Turkey, Belarus, 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 Government looking to resolve the status of state owned chemical manufacturing companies: Serbian Ministry of Economy announced formation of a working group to find suitable solutions for state-owned chemical companies of strategic importance. Serbian Government is looking for foreign investors or strategic partners for the Kikinda-based Methanol & Acetic Acid (MSK) Complex, Pancevo based Azotara fertilizer manufacturing and the HIP Petrochemical Complex. 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/
7. UPCOMING TRADE FAIRS AND EXHIBITIONS IN SERBIA
International Fair of Medicine 6-8 October 2016 International Energy Fair 12-14 October 2016 http://energetika-ekologija.talkb2b.net/en International Fair of Cosmetics 8-9 October 2016 www.sajamkozmetike.com International Belgrade Book Fair 23-30 October 2016 http://sajamknjiga.rs/en/ International Jewellery Show November 2016 www.sajam.net/live/?languageId=1 International Fair of Furniture, Equipment & Interior Decoration 8-13 November 2016 Ethnic Food & Drinks Fair 23-26 November 2016 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 March 2017 International Fair of Horticulture April 2017 International Construction Trade Fair 19-23 April 2017 http://sajamgradjevine.rs/en/home/ International Fair of Agriculture May 2017 www.sajam.net International Fair of Technical Achievements May 2017 www.sajamtehnike.rs More information available at: www.sajam.rs (Belgrade Fair) www.sajam.net (Novi Sad Fair)
8. TRADE ENQUIRIES DURING AUGUST 2016 Trade Enquiries from India
- Indian company Khoday Group of Industries has expressed interest in exporting liqour products to the Serbian market. List of Serbian importers has been provided to them. The Southern Gujarat Chamber of Commerce & Industry has expressed interest in details of Serbian companies dealing with synthetic fabrics, diamonds & jewellery, dyes chemicals & intermediates. List of Serbian importers has been provided to them. - Indian company NavigoExports Pvt Ltd has expressed interest in exporting minerals, chemicals, oil seeds,
vegetables, sports supplements to the Serbian market. List of Serbian importers has been provided to them. - Indian company Natwarlal Shamaldas & Co has expressed interest in exporting fruit & vegetables to the Serbian market. List of Serbian importers has been provided to them. - Indian company Als Exports has expressed interest in exporting hosiery, knitted and woven garments to the Serbian market. List of Serbian importers has been provided to them. - Indian company Purva Exports has expressed interest in exporting raw/roasted peanuts, maize & onions to the Serbian market. List of Serbian importers has been provided to them. - Indian company Baroque Designs has expressed interest in exporting hand –crafted furnishing products to the Serbian market. List of Serbian importers has been provided to them. - Indian company Bona Dea Exports has expressed interest in exporting silver, brass, pearl, metal and terracotta
jewellery to the Serbian market. List of Serbian importers has been provided to them. - Indian company Apex International has expressed interest in exporting medical herbs to the Serbian market. List of Serbian importers has been provided to them. - Indian company CMI Energy India Pvt Ltd has expressed interest in exporting of electro power cables & wires to the Serbian market. List of Serbian importers has been provided to them. Trade Enquiries from Serbia - Serbian company Magic Fruits Land has expressed interest in exporting fresh & frozen fruits to the Indian market. List of Indian importers has been provided to them. - Serbian company IMR has expressed interest in importing tractor seats from India. List of Indian manufacturers has been provided to them. 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/
