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Sinhagad Institute Of Business Management,Mumbai
Presentation on India's Trade Relations with USA & Canada
Presented ByMahesh R Dongaonkar
MMM- V Sem.2011-12
Roll No 02
Contents
• Geographical Location Of Subject Countries On World Map
• PEST Analysis For India, USA & Canada• Trade Relations :• India With USA• India With Canada
Business Envionment Scanning
Country
Business Envionment Scanning
PEST ANALYSIS FOR INDIA
India: Political Enviornment Scanning
• India's Strengh – Democracy,Diversity & Dynamic
Growth
• Political trends -Single Party To Coalition Govt.
• Government Stability -Stable from last 10 Years
• Internal Political issues- Difference In Party Policies
Cont...
• Government Policies- Influnce By Vote Bank
• Strong Lobbying & Pressure Groups Influence
Trade & Related Policies
• Wars and conflict -Terrorisam & Conflict
issueswith Neighbouring Countries
India :Economical Enviornment Scanning
• Introduction Of LPG Model -1991 Onwards
• Liberlisation►Privatisation►Globalisation
• GDP by sector
• Inflation (CPI) 8.66% (April 2011)
• Populationbelow poverty line 37% (2010)
55%
29%
16%
Services
Industry
Aggriculture
Cont......
• Economical Growth is Broad Based
• Pickup In Private Consumption & Investment
• Agriculture is Critical For Macro Economic Stability
& Sustained Growth
• Inflation is Cause Of Concern
• Infrastructure a Mix Bag Of Performance
• Service Sector The Potential Growth Engine
Cont...
• Imports Slowing,Exports Gathering Pace
• Trade Deficit Set To Narrow
• Monetary Policy in Tightening Mode & Supportive Of growth
• Social Sector development with Higher Funds On Flagship Programmes Aam Aadmi
• Developing Market Economy :BRIC Group
• Political Influence On FDI Policies
• Effect Of Global Economy
Key Indicators Of Indian Economy
India :Social Enviornment Scanning• Social Structre- Family Culture
• Different Culture & Religions
• High Percentage Of Educated Work
Force
• Emerging Segments -India & Bharat In
Society
• Depression In People Concern Raised
By WHO
India:Technological Enviornment Scanning
• Shift In Mindset Of C&D To R&D
• Research funding
• Associated/dependent technologies
• Replacement technology/solutions
• Maturity of technology
Cont...
Manufacturing maturity and capacity
Information and communications
Consumer buying mechanisms/technology
Technology legislation
Technology access, licensing, patents
Intellectual property issues
India-Environmental Scanning
Environmental issues
International
National
Local
Environmental regulations
Business Envionment Scanning
PEST ANALYSIS FOR USA
USA:PoliticalEnviornment Scanning
Political trends
Government structures
Acting As World Political Leader
Inter-country relationships/attitudes
Wars With Countries
Terrorist Activities- Cause & Concerns
Strong Market lobbying & Pressure groups
USA– Economical Enviornment Scanning
Home economy situation In Debt Crises
Epicentre Of World Economic Crises
Strong Influence On World Economies & Trades
Low Saving & High Expenditure Attitude
Strong Currency Value- US $
Strong Hold On International FinancialInstitutions
Contd....
Disposable income - High
Job Growth/unemployment-High
Subsidies & Tariffs
Inflation
USA-Social Enviornment Scanning
Mixed Culture
Sensitive On Human Rights
Strong Social Security System
Less Focus & Expensive Education System
Less Saving & High Expenditure Habits
USA Economy Key Indicators
USA:Technological Enviornment Scanning
• Advanced Technological Environment
• Innovation & Implementation Attitude
• Availability Of Good Infrastructure
• High Expenditure On Research
• Attracting Best Talent Pool From World
• High Rate of obsolescence
USA : Enviornment Scanning
Strong Regulators on Environmental regulations
Sensitive On Ecological Environment Issues
Leader In Creating Hazardous Wastes
Business Envionment Scanning
PEST ANALYSIS FOR CANADA
Government Struture : Constitutional Monarchy
Multiparty System But Stable Govenment
Dual Political Culture
Canada:PoliticalEnviornmentScanning
Canada:Economical Enviornment Scanning
One Of The Wealthiest Nation in World
GDP Segmentation
Service Setor 70 %
Industry 28 %
Agriculture 2%
Cont...
Strong Influnce Of USA Economy
Aprox 15 % Population Below Poverty Line
Attractive Destination For Industries
Conservative Banking System
Canada:SocialEnviornmentScanning
Male Dominated Social System
Aprox. 50 % is Middle Class
Literacy Rate is 99 %
Education Plays Vital Role
Low Crime Rate
Aging population
Canada:Enviornment Scanning
Climate Change In Some Regions
Vulnerable to environmental degradation
and Pollution spillover
Strong in Natural Resources.
Canada:Technolical Enviornment Scanning
Robust communication infrastructure
Modernization Program In Process
INDIA'S TRADE RELATIONS
Trdae Relation With USA
In 1991,U.S identified India as one of the 10 major emerging markets.
India-US Bilateral Trade Is Increasing .
US is the destination of one-fifth of India’s exports.
India's percentage share in US imports has remained more or less stable over the last few years.
Bilateral Relationships
Civil Nuclear Cooperation
U.S. Generalized System of Preferences
U.S.-India Economic Dialogue
Verified & Trusted End User Program
U.S.-India Trade Policy Forum To Promote
Trade
Multilateral Relationships:
WTO,IMF,Asian Development Bank
U S and India also oppose each other in
Regional Free Trade Agreements
Major Items Export from India to USA
Diamonds & precious stones 29%
Textiles-25%
Iron & Steel-5.73%
Organic Chemicals-3.46%
Electrical Machinery-3.24%
Major Items Exports from USA to India
India -USA Trade At A Glance
India – USA Trade Barriers US Department of Commerce Imposed
Restrictions On Exports to Indian
Organizations Like BHEL,BARC etc.
Strict Export Licensing With USA
Imposition Of Sanctions After India's
Nuclear Tests.
US Removed GSP Benefits To Large
Number Of Indian Products
Intellectual Property Rights Issue
Opportinities
Communication infrastructure, IT, IT-enabled services
Pharmaceuticals and Biotechnology.
Energy & Retail Sectors
Aggriculure
Service Industries
RecommendationsReview Of US Govt. Clause Of “Buy American”
Relooking Of Tax Breaks To US Companies
Outsorcing Activities Imposed By US Govt.
India's FDI Policies Needs To Review
India Adhering US Norms On Agriculttre & Pharma
Produts
Review Of Subsidy & Tarrif Norms Of Both
Countries
Trdae Relation With Canada
India's Trading With Canda is very Low
India Imports 0.53 % of Total Canda's Export
India Exports 0.54 % Of Total Canda's Import
Bilateral Trade Classifications
% %
Organic chemicals 13.24 20.61
9.5Fertilizers 16.3
6.74 14.72
6.57 8.22
5.5 7.38
Iron or steel articles 5.4 5.66
4.82Iron and steel 4.46
3.8 2.89
3.7Ores, slag and ash 2.59
Mineral fuels, oils 2.4 2.29
Canadian Imports from India
Canadian Exports to India
Merchandise Classification
Merchandise ClassificationEdible vegetables, roots and tubers
Pearls, precious stones or metals
Knitted or crocheted apparel
Paper and paperboard
Woven clothing and apparel articles
Boilers, mechanical appliances, etc.
Boilers, mechanical appliances, etc.
Woodpulp; paper or paperboard scraps
Pearls, precious stones or metals
Electrical machinery and equipmentOther textile articles, etc.
Electrical machinery and equipment
Pharmaceutical products
Aircraft and spacecraft
Opportunities
Opporunity For Canda In India
With its advanced technological base can become India’s natural
partner in agriculture, food processing, education, science and
technology, innovation, environment, cleaner technologies, etc.
Investment in sectors such as infrastructure, energy, mining,
health, education, communication, , information technology, etc.
Opporunity For India In Canda
India would like Canada to make use of India’s skilled and trained
manpower base and establish manufacturing units
Recomendations
India & Canda Both Decided To Increase Trade Upto 15
Billion US $ Till 2015, To Acheive This There Should Be
Efforts From Govt To Increase & Encorage Trade
Review Of Foreign Investment & Promotion Agreement Act
By Both Countries
Canda Should Relook Immigration Norms & Process For
Business Visa Applications Which is Very Slow.
Both Countries Shold Target To Increase Presence In
Economic Hub
Thank You