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Saurabh Varma

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History Indian subcontinent has been always the center stage in the dramatic history of some of the world`s most famous mesmerizing diamonds. India is one of the earliest known source of diamonds. Today Indian Diamond Industry is pioneer in the gem industry and a world leader in the manufacturing of cut and refined diamonds. Diamonds today nine out of every ten come from India which is used in jewelry worldwide. Indian Diamond industry is mainly involved with cutting, polishing and exporting diamonds. Indian Diamonds cut and polished are universally prized & India has emerged as the largest diamond-cutting center in the world. Today although India pioneered in the cutting of small diamonds, its craftsmen are equally skilled at cutting all shapes and sizes of stones, and are even well-versed at faceting colored diamonds. Mumbai, Surat, Ahmedabad, Bhavnagar and many small towns in Gujarat are the main polishing centres in India. The Indian Diamond Industry employs one million people, accounting for 95 % of the workforce of the world`s diamond industry. Today the Indian diamond industry is a result of perseverance and hard work. As after India became independent in 1947, for next several years the nation`s economy was in the depression. Several views for business and commerce opened up as new policies came into place, journey towards progress and development also began for the Indian diamond industry. Only three decades ago the Indian diamond industry was a scattered cottage industry. Today it has gradually evolved into a modern, mechanized, large-scale operation. As India has the art laser machines, lathes and diamond-impregnated scaives, most of the medium- and large-sized diamond factories are well operational. Indian Diamond is found in one of the earliest references in "Arthashastra" written by Kautilya who mentioned the diamond trade in India. Diamonds were traded to East and West India while they were known to different cultures. India remained the leading diamond producing country till 18th century AD. Then diamond even reached the ancient city of Rome from India. However it is the diamond mine of Golkonda in India that became a legend around the world, which is now a ruined city of south-central India was the capital of the ancient kingdom of Golkonda. It served as the diamond center in earlier days. The diamonds of the Golkonda were the finest white diamonds known for its white color, clarity and transparency. Some of the diamonds which are famous that are extracted from Golkonda are: Darya-e Nur, Nur-Ul-Ain diamond, the koh-i-noor, the hope diamond and the regent diamond. Surat is the Indian City situated 250 km north of Mumbai which is one of the major diamond cutting and polishing centers of the world. Bombay was the diamond trading center but due to problematic trade union politics, the polishers moved to Surat where the wage is lower ($2500-$3500 per year) Brief Introduction Indian Jewellry is made scrupulously by hand and was traditionally crafted by family jewelers skilled in a particular style. India`s artisans with traditional skills dominated contemporary techniques to provide the world with jewelry that conformed to international standards. Today there are new generations of young designers dominating the world market, apart from a host of established houses that design the fashion jewelry. Across India and several jewelry design institutes, encouraging fresh ideas and talent. The zenith body Gem and Jewelry Export Promotion Council (GJEPC) is dazzling and growing industry. The council was set up under the patronage of the Ministry of Commerce in 1966 and has helped to form a better understanding between the diamond industry and the government. The chief function of the council is to develop and promote the export of gems and jewelry from India, to contribute towards establishing a code of ethics to ensure that fair trade practices are followed in the jewelry arena.
Transcript
Page 1: Saurabh Varma

History 

Indian subcontinent has been always the center stage in the dramatic history of some of the world`s most famous

mesmerizing diamonds. India is one of the earliest known source of diamonds. Today Indian Diamond Industry is

pioneer in the gem industry and a world leader in the manufacturing of cut and refined diamonds. Diamonds today nine

out of every ten come from India which is used in jewelry worldwide. Indian Diamond industry is mainly involved with

cutting, polishing and exporting diamonds.

Indian Diamonds cut and polished are universally prized & India has emerged as the largest diamond-cutting center in the world. Today although India pioneered in the cutting of small

diamonds, its craftsmen are equally skilled at cutting all shapes and sizes of stones, and are even well-versed at faceting colored diamonds. Mumbai, Surat, Ahmedabad, Bhavnagar and many

small towns in Gujarat are the main polishing centres in India. The Indian Diamond Industry employs one million people, accounting for 95 % of the workforce of the world`s diamond industry.

Today the Indian diamond industry is a result of perseverance and hard work. As after India became independent in 1947, for next several years the nation`s economy was in the depression.

Several views for business and commerce opened up as new policies came into place, journey towards progress and development also began for the Indian diamond industry.

Only three decades ago the Indian diamond industry was a scattered cottage industry. Today it has gradually evolved into a modern, mechanized, large-scale operation. As India has the art

laser machines, lathes and diamond-impregnated scaives, most of the medium- and large-sized diamond factories are well operational.

Indian Diamond is found in one of the earliest references in "Arthashastra" written by Kautilya who mentioned the diamond trade in India. Diamonds were traded to East and West India while

they were known to different cultures. India remained the leading diamond producing country till 18th century AD. Then diamond even reached the ancient city of Rome from India. However it is

the diamond mine of Golkonda in India that became a legend around the world, which is now a ruined city of south-central India was the capital of the ancient kingdom of Golkonda. It served as

the diamond center in earlier days.

The diamonds of the Golkonda were the finest white diamonds known for its white color, clarity and transparency. Some of the diamonds which are famous that are extracted from Golkonda

are: Darya-e Nur, Nur-Ul-Ain diamond, the koh-i-noor, the hope diamond and the regent diamond. Surat is the Indian City situated 250 km north of Mumbai which is one of the major diamond

cutting and polishing centers of the world. Bombay was the diamond trading center but due to problematic trade union politics, the polishers moved to Surat where the wage is lower ($2500-

$3500 per year)

 Brief Introduction

Indian Jewellry is made scrupulously by hand and was traditionally crafted by family jewelers skilled in a particular style.

India`s artisans with traditional skills dominated contemporary techniques to provide the world with jewelry that conformed to

international standards. Today there are new generations of young designers dominating the world market, apart from a host

of established houses that design the fashion jewelry. Across India and several jewelry design institutes, encouraging fresh

ideas and talent. The zenith body Gem and Jewelry Export Promotion Council (GJEPC) is dazzling and growing industry.

The council was set up under the patronage of the Ministry of Commerce in 1966 and has helped to form a better

understanding between the diamond industry and the government. The chief function of the council is to develop and

promote the export of gems and jewelry from India, to contribute towards establishing a code of ethics to ensure that fair

trade practices are followed in the jewelry arena.

Indian diamond Industry is at the doorstep of expansion today. The Indian government has legitimated the setting up of bonded warehouses in order to enable diamonds to be brought into the

country to be sold. The unsold diamonds could be exported without any duty or tax. Government has been creating the Export Promotion Zones (EPZ) and Special Economic Zones (SEZ) in

order to help and promote the export of gems and jewelry from the country and is undoubtedly a new step for the betterment of the industry.

Page 2: Saurabh Varma

The Indian diamond industry has its origine in the villages, towns and cities of Gujarat, where most of the processing facilities are installed; the corporate operations of marketing and finance for

all the diamond traders takes place from Mumbai, where all the major traders have their registered offices. Majority of the diamantaires procure the rough diamonds from the Diamond Trading

Company which holds the maximum share of rough diamonds in the world.

India's diamond industry is expected to remain stable on gems and jewellery exports, credit rating agency Crisil said. "The credit risk profiles of India's diamond and diamond jewellery players

will remain stable over the medium term, on the back of steady demand expected in key markets, and improved prices of polished diamonds in 2010-11," Crisil said in a study of the 142 players

in the industry.

With the improvement in global demand, the prices of cut and polished diamonds rebounded in the second half of 2009-10 from weak levels in the second half of 2008-09. Looking ahead, Crisil

said, "Demand from the US market, which accounts for more than half of India's gems and jewellery exports, will be steady, backed by a stable economy, and will result in moderate buoyancy

in exports by Indian players over the medium term." However, it cautioned that the prevailing crisis in Europe may affect exports.

 Market Capitalization 

Indian Diamond Industry currently constitutes about 15% of Rs. 900 crores approx. of the market and is growing at a rate of 40%, and this is attributed to many factors such as higher

disposable incomes, changing outlook and attitude of the consumers, aggressive marketing and promotional activities by the branded players.

 Size of the industry

The diamond industry in India today is worth about Rs. 6000 crores and is rated amongst the fastest growing diamond markets in the world. India ranks third in the world in domestic diamond

consumption behind only to USA & Japan. The year 2004 had a 27% nationwide increase in diamond sales. In the year 1994 the Branding of diamond jewellery started with Gili from the house

of Gitanjali Jewels and today the diamond jewellery market has about 50 brands.

 Total contribution to the economy/ sales

Today India exports about 90% of Diamonds to the US. In the year 2008-09, during April-January 2008-09, the exports of cut and polished diamond declined 2.85 % to $11.34 billion, in contrast

to a 6.63 % growth to Rs 11,020 crore during the corresponding year.

 Domestic and Export Share

Today Indian exports of diamonds increased and in turn it reflected greater than before in the export of designed jewelry. The evident fact that the Indian jewelry designs have for centuries spell

bounded everyone, from the Indian maharajas to the monarchs of faraway lands. The Indian diamond trades over 40% of De Beers exports to India, accounting for nearly $400 million, are

composed of Argyle roughs and more than half of India's 5500 diamond manufacturers depend on this business for their livelihood.

 Top leading Companies

Adora is the Diamond brand launched by a Mumbai based Jewelry Corporation. The brand is themed on love and celebration of life and is trusted by many celebraties like 'the

Nightingale of India', Lata Mangeshkar.

Tanishq is one of the most popular diamond jewelry brands in India and is known for its innovative designs. It is promoted by the TATA group and launched in 1995 and boasts

of 84 outlets in 61 cities. Tanishq introduced the 'collections' strategy in Diamond jewelry.

Kiah is another Diamond brand which is deemed stylish, light weight and striking launched by Sheetal manufacturing company in October 2004.

Nirvana Diamonds were launched in 1987 by Fine Jewelry (I) Ltd. Implementing the state of the art technology, the collection is targeted at fashion conscious, modern and

independent women.

D'damas is one of the oldest diamond houses of India found in1966 and forming a part of the Gitanjali Digico Group.

 Employment opportunities

Page 3: Saurabh Varma

The jobs of Gemologists or the Diamond cutter or the manufacturer require high skills as it involves identifying and

grading of diamonds, precious and semi-precious stones and other related aspects. Due to the increase in

jewellery export there is demand for more and the national and international companies in the field are setting up

new centers in India and are recruiting trained professionals to keep the pace with growing international market. A

trained gemologist or Diamond jewelry designer can find attractive jobs in India or a sparkling career abroad.

 Latest developments

 

Today India is the largest diamond cutting and polishing center in the world, it enjoys 60% value share for diamond cutting and polishing. 85% volume share and 92% share of

the world market in terms of number of pieces. India has exported rough diamonds worth US$ 566 million in 2007-08 and polished diamonds of worth US$ 14.18 billion.Exports of

Cut and Polished diamonds form 14% of the total India's foreign exports. Total gem & jewellery exports US$ 15.7 bn (2004-05)World's largest diamond cutting and processing

center with estimated workforce - 800,000 skilled craftsmen is India.

60% global market share by volume and 80% by volume, 94% of global workers in diamond are Indians, 11 out of every 12 diamonds polished pass through Indian hands.

50 banks provide US$ 3 bn credit Manufacturing and sales offices worldwide diversified into jewellery manufacturing since 1990 the Diamond Jewellery market inclusive of

exports: Rs. 13,000 crores approx.

General Overview

A well-knit and co-ordinate system of transport plays an important role in the sustained economic growth of a country. The present transport system of the country comprises several modes of transport including rail, road, coastal shipping, air transport, etc. Transport has recorded a substantial growth over the years both in spread of network and in output of the system. The Ministry of Shipping, Ministry of Road Transport and Highways is responsible for the formation and implementation of policies and programmes for the development of various modes of transport save the railways and the civil aviation.

SECTORAL LIST OF INDUSTRIES

AUTO & ANCILLIARY

Automobile Industry

Indian automobile industry mainly focused on servicing, dealership, financing and maintenance of vehicles. The Indian Automobile industry includes two-wheelers, trucks, cars, buses and three-wheelers which play a crucial role in growth of the Indian economy.

Aviation Industry

Indian Aviation Industry has been one of the fastest-growing aviation industries in the world with private airlines accounting for more than 75 % of the sector of the domestic aviation market.

Tractor Industry

Indian Tractor Industry in 1945 to 1960 because of the War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. Tractors are an integral part of mechanization and have a crucial role to play in increasing agricultural productivity.

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FINANCIAL & BANKING

Banking Industry

Indian Banking Industry’s growth has been more qualitative than quantitative which is expected to remain the same for the coming years. The projections of “India Vision 2020" prepared by the Planning Commission, also the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks would be decelerating.

Insurance Industry

Indian Insurance Industry has got the deep-rooted history. These evidences are from the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra).

Mutual Fund Industry

The Indian Mutual funds Industry had a rapid growth as a result of infrastructural development, increase in personal financial assets, and rise in foreign participation.

Real Estate Industry

The Indian Real Estate Industry in the country is one of great importance and  According to the report of the Technical Group on Estimation of Housing Shortage, an estimated  their was a shortage of 26.53 million houses

CONSUMER DURABLES

Furniture Industry

India is a land of wonderful and marvelous artistic work of wood which is being appreciated world wide. The rich Indian  handicraft and beautiful traditional attributes of art and design have established a reputation of Indian Furniture Industry in the nation and worldwide to be appreciated by people.

Jute IndustryThe Indian Jute Industry is a very old & predominant in the eastern part of India. The Government of India has included the Jute Industry for special attention in its National Common Minimum Programme.

Leather Industry

Indian Leather Industry has developed to a large extent and is the second largest producer next to China. The industry is equipped mostly with a potential for employment generation, growth and exports, with the annual exports touching 2 billion USD.

Paper IndustryIndian Paper industry has created sustainable livelihood in rural areas and has helped generating employment for the local population especially for women to earn their livelihood.

Plastic Industry

The Indian Plastic industry is facing severe demand crunch in the domestic industry for quite some time. Demand for major polymers was 10 % lower in Q2 this financial year as compared to the same period last year

Rubber IndustryIndian rubber industry has been growing in along with the strength and importance, as a part of India's burgeoning role in the global economy.

Silk Industry

India Silk Industry is second largest producer of silk, contributing to about 18 % to the world production. What is however, more noteworthy is the fact that India's requirement of raw silk is much higher than its current production at present

Page 5: Saurabh Varma

Television IndustryIndian Television Industry has been in existence for nearly since four decades. Initially for the first 17 years, it spread haltingly and transmission was mainly in black & white

TEXTILES

Textile IndustryIndian Textile Industry occupies has earned a unique place in our country. It is among one of the industries which were earliest to come into existence in India. 

Garment Industry

India’s Garment Industry is well-organized enterprise is among the best in the world. It constitutes of designers, manufacturers, exporters, suppliers, stockiest, and wholesalers. Indian Garment Industry has carved out a niche in the global markets and earned a reputation for its durability, quality and beauty.

Weaving IndustryIndian Weaving Industry has conventionally been one of the most promising sectors of huge employment. In fact, after agriculture, the Weaving Industry is largest provider of work force.

FMCG - FAST MOVING CONSUMER GOODS

Biscuit Industry

India Biscuits Industry seems to be the largest among all the food industries and has a turn over of around Rs.3000 crores. Indian subcontinent is known to be the second largest manufacturer of biscuits, the first being USA.

Soap Industry

Soaps are categorized into men's soaps, ladies' soaps and common soaps. There are few specialty soaps like the Glycerine soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps.

HEALTH CARE

Bio technology Industry

Government of India set up the Department of Biotechnology (DBT) under the Ministry of Science and Technology in 1986 with the aim of enhancing the Biotech Industry in India. Since then DBT has produced one of the best scientists of the country since its establishment.

Health Care IndustryIndian health care industry growth story is moving ahead neck to neck with the pharmaceutical industry & the software industry of the nation.

Pharamaceutical Industry

Indian pharmaceutical market in 1970’s was almost non-existent. Today, India has gained immense importance and carved a niche for itself in the pharmaceutical domain. In fact, it has emerged as a big mart for the pharmaceutical industry.

INFORMATION TECHNOLOGY & COMMUNICATIION

IT IndustryIndian Information Technology industry is one of the fastest growing industries in the country. The IT industry has built very valuable brand equity for itself in the global markets.

METAL & MINING

Aluminium Industry

Indian Aluminium Industry was first established in the year 1808 and it took almost 46 years to make its production commercially viable. The research work of the country took several years resulted in extracting the Aluminium from the ore.

Page 6: Saurabh Varma

Copper IndustryThe Indian Copper Industry consisted of a single state-owned company and now the copper industry in India takes up about 3 % of the entire world market for copper.

Diamond Industry

Indian Jewellry is made scrupulously by hand and was traditionally crafted by family jewelers skilled in a particular style. India`s artisans with traditional skills dominated contemporary techniques to provide the world with jewelry that conformed to international standards.

Granite Industry

Granite in the form of slabs and tiles has several attractive features, which, inter alia, includes extra-fine mirror-polish, scratch-free glossy surface and durability. Granite can be compared very well with other floor and wall application materials such as ceramics and marble.

Mining Industry

Indian Mining Industry has been a major mineral producer in Asia and globally. Currently it is the global producer of chromite, coal, iron ore and bauxite while enjoying economic growth during the nineties. Mining is over 6000 years old in India.

Pearl IndustryPearls have been seen in history and historical legend since Cleopatra's time, when she supposedly dissolved a large pearl in vinegar and drank the potion to demonstrate her infinite wealth.

Zinc Industry

Indian zinc industry consists primarily of two gaint players in the market, namely Hindustan Zinc and Binani Zinc. Hindustan Zinc is a producer which is integrated having its own mines and has a market share of more than 60%.

Steel Industry

India is on an upswing when speaking about the Steel Industry because of the strong global and domestic demand. The rapid economic growth and progressing demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry on the Global Map.

OIL & GAS

Oil Industry

Indian Oil and Gas Industry have been successful in fuelling the rapid growth of the Indian economy. the Indian Independence Indian Oil Industry was a very small one in size and Oil was produced mainly from Assam and the total amount of Oil production

POWER

Power Industry

The Indian Power Industry plays a critical role in the economic progress of the country and has to be emphasized. Before Independence British controlled the Indian power industry firmly.

RETAILING

Chocolate Industry

Indian Chocolate Industry as today it is dominated by two companies, both multinationals. The market leader is Cadbury with a lion's share of 70%. The company's brands like Five Star, Gems, Eclairs, Perk, Dairy Milk are leaders their segments.

Cosmetic Industry

Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup products is being since olden days and nowadays it appear like an booming economy in India which would be the largest cosmetic consuming country in a next few decades.

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Food Processing Industry

Indian  Food Processing  Industry covers fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing, consumer products groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc

Jewellery Industry

India has a glorious history which affects each and every aspect of Indian lifestyle. Jewelry has always remained an integral part of the Indian lifestyle. The diverse history of India has great influence on the jewelry styles as well.

Music Industry

Indian Music Industry has a rich musical tradition and one is capable of generating sizeable revenue for the country in every genre the music industry. There are log of loopholes in the industry due to the unabated growth of piracy.

Retail Industry

 The first step for the retail system in India was put forward in 1832. Then alteast a decade later in 1844, the then Governor-General of India Lord Hardinge allowed private entrepreneurs to set up a rail system in India.

Toy IndustryIndian Toy industry is large and growing which needs more organized approach to face the challenges of factor distribution & marketing. Many of these toys are usually imported through Dubai & Malaysia.

SERVICE SECTOR

Advertising Industry

Advertising is one of the key activities for potential business and is equally important as producing something using raw material, or as capital, manpower, planning, organizing etc. Publicising the products or services that the business offers to the targeted customers is called Advertising.

Electronic Industry

Indian Electronics industry dates back to the early 1960s. Electronics was one industry initially restricted to the development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defense capabilities.

Hotel Industry

Indian Hotel Industry has set up to grow by 15% a year. In the year 2010 as the Delhi capital city of India would hosting the Commonwealth Games there would more than 50 international budget hotel chains are moving into India.

Railway IndustryThe first step for the rail system in India was put forward in 1832. Then alteast a decade later in 1844, the then Governor-General of India Lord Hardinge allowed private entrepreneurs to set up a rail system in India.

Shipping IndustryThe Indian shipping Industry plays a crucial role in Indian economy. As 90% of the Nations trade by volume is done via sea. India has been the largest merchant shipping fleet among the developing nations

Telecom IndustryIndian Telecom Industry started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power).

Tourism Industry

India's tourism industry is experienced a  strong period of growth which is  drived by the burgeoning Indian middle class and high spending foreign tourists who coordinated government campaigns to promote 'Incredible India'.

AGRICULTURE-BASED

Page 8: Saurabh Varma

Agricultural Industry

Indian ‘agro’ or ‘agriculture’ marks the beginning of 'civilized' or 'sedentary' society. Climate change and increase in population in the country during the Holocene Era (10,000 BC onwards) led to the evolution of agriculture.

Tobacco Industry

In India Tobacco is an important commercial crop grown. Tobacco Production occupies the third position in the world with an annual production of about 725 Million Kgs.

Dairy Industry

India is the highest milk producer in the entire globe. India is well known as the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs globally.

Cotton Industry

The Indian Cotton Industry provides sustenance to million of farmers as also the workers involved are right from processing to trading of cotton. The Indian textile industry consumes a diverse range of fibres and yarn, but is predominantly cotton based.

Sugar IndustrySugar is made from sugarcane, was discovered thousands of years ago in New Guinea. And then the route was traced to India and Southeast Asia.

Tea Industry

Indian Tea Industry is about 172 years old. The industry occupies an important place and plays a very useful part in the national economy. In 1823 Robert Bruce discovered tea plants growing wild in upper Brahmaputra Valley.

Poultry Industry

Poultry Industry in India is constantly on the rise due to the use of modern techniques and changing from live bird to fresh chilled and frozen product market.

OTHER INDUSTRIES

Cement Industry

India Cement Industry is the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT). Government of India has been giving immense boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace.

Coir Industry

Indian coir industry has been fortunate to get boost in the form of the ever increasing awareness about eco-protection. Coir, being a natural fibre which is environment-friendly in the strictest sense of the term, is the fibre of the future today.

Construction Industry

Construction usually is done or coordinated by general contractors, who specialize in one type of construction such as residential or commercial building. Cost structure of the construction industry is dominated by raw material cost and subcontracting cost.

Cottage Industry

Indian Cottage industry is generally unorganized sector and falls under the category of small scale industry. The industry produces consumable products through the use of conventional methods.

Fashion IndustryIndian Fashion Industry India as at its infancy at the moment and has great potential to make the mark on the world stage. Fashion in India has thousands of years of tradition behind it.

Page 9: Saurabh Varma

Fertilizer IndustryFertilizer is defined as any substance which is organic or inorganic, natural or artificial, supplies one or more of the chemical elements required for plant growth. 

Film Industry

Indian Films arrived in less than a year after the Lumieres first exhibited their cinematographie in Paris. In 1913 the first Indian feature film was released was 3700 feet long. It was made by Raja Harishchandra made by Dadasaheb Phalke.

Paint Industry

There is a  phenomenal growth on the housing sector front with  rapid urbanization andavailability of easy to secure housing loans  have become  the prime drivers of growth in the decorative paint segment, which comprises 70%  of the $2 billion Indian Paint industry.

Printing Industry

Indian Printing Industry has undergone many revolutionary changes in the past 15 years. India In the year 1990 initiated a process of reforms which aimed at shedding protectionism and embracing liberalization of the economy.

Solar Industry

 Indian demand for solar products has been rapidly rising for the recent years, especially in rural areas, and is expected to continue growing substantially during the future.

Turbine IndustryIndian Turbine Industry is growing rapidly as wind energy is the fastest growing source of renewable energy in the country.

1. Banks

2. IT - Software

3. Refineries

4. Power Generation & Distribution

5. Crude Oil & Natural Gas

6. Mining & Mineral products

7. Finance

8. Pharmaceuticals

9. Automobile

10. FMCG

11. Tobacco Products

12. Steel

13. Infrastructure Developers & Operators

14. Telecomm-Service

15. Non Ferrous Metals

16. Cement

17. Capital Goods - Electrical Equipment

18. Trading

19. Realty

20. Auto Ancillaries

21. Gas Distribution

22. Textiles

23. Chemicals

24. Entertainment

25. Paints/Varnish

26. Miscellaneous

27. Capital Goods-Non Electrical Equipment

28. Construction

29. Fertilizers

30. Consumer Durables

31. Diamond, Gems and Jewellery

32. Alcoholic Beverages

33. Logistics

34. Agro Chemicals

35. Hotels & Restaurants

36. Plastic products

37. Plantation & Plantation Products

38. Castings, Forgings & Fastners

39. Healthcare

Page 10: Saurabh Varma

40. Sugar

41. Tyres

42. Shipping

43. Media - Print/Television/Radio

44. Diversified

45. Retail

46. Packaging

47. Stock/ Commodity Brokers

48. Computer Education

49. Edible Oil

50. IT - Hardware

51. Leather

52. Ship Building

53. Readymade Garments/ Apparells

54. Paper

55. Telecomm Equipment & Infra Services

56. Air Transport Service

57. Glass & Glass Products

58. Petrochemicals

59. Cables

60. Ceramic Products

61. Refractories

62. Cement - Products

63. Telecom-Handsets/Mobile

64. Sanitaryware

65. Oil Drill/Allied

66. Dry cells

67. Printing & Stationery

68. Online Media

69. ETF

LIST ED IN BSE

1. Banks

2. IT - Software

3. Refineries

4. Power Generation & Distribution

5. Crude Oil & Natural Gas

6. Mining & Mineral products

7. Finance

8. Pharmaceuticals

9. FMCG

10. Automobile

11. Tobacco Products

12. Steel

13. Infrastructure Developers & Operators

14. Telecomm-Service

15. Non Ferrous Metals

16. Cement

17. Capital Goods - Electrical Equipment

18. Trading

19. Realty

20. Auto Ancillaries

21. Textiles

22. Gas Distribution

23. Chemicals

24. Entertainment

25. Capital Goods-Non Electrical Equipment

26. Miscellaneous

27. Paints/Varnish

28. Construction

29. Consumer Durables

30. Fertilizers

31. Diamond, Gems and Jewellery

32. Alcoholic Beverages

33. Logistics

34. Hotels & Restaurants

35. Plastic products

36. Agro Chemicals

37. Plantation & Plantation Products

38. Healthcare

39. Castings, Forgings & Fastners

40. Diversified

41. Sugar

Page 11: Saurabh Varma

42. Tyres

43. Media - Print/Television/Radio

44. Shipping

45. Packaging

46. Retail

47. Stock/ Commodity Brokers

48. Edible Oil

49. IT - Hardware

50. Computer Education

51. Leather

52. Ship Building

53. Readymade Garments/ Apparells

54. Paper

55. Air Transport Service

56. Telecomm Equipment & Infra Services

57. Glass & Glass Products

58. Petrochemicals

59. Cables

60. Ceramic Products

61. Refractories

62. Cement - Products

63. Telecom-Handsets/Mobile

64. Oil Drill/Allied

65. Sanitaryware

66. Dry cells

67. Printing & Stationery

68. Online Media

69. Engineering

70. Electronics

71. Education

72. ETF

What are the various corporate sector

Industry sectors overview

Aeronautic industries

The European aeronautics industry develops and manufactures a broad range of products: civil and military aircraft, aero-engines, helicopters, unmanned aerial

vehicles, as well as systems and equipment. It also comprises maintenance and service companies which carry out repair, training or other activities linked to the

different products.

This website provides information and links to a range of initiatives significantly impacting on the aerospace industry. Aerospace is the widely used international

term to describe companies operating in the aeronautics, space and defence sectors.

More detailed information on the space and defence sectors.

Automotive

The EU is the world's largest producer of motor vehicles. The automotive industry is therefore central to Europe's prosperity. It is a huge employer of skilled

workforce and a key driver of knowledge and innovation. It represents Europe's largest private investor in research and development (R&D). It also makes a major

contribution to EU's Gross Domestic Product (GDP), and exports far more than it imports.

Biotechnology

Life sciences and biotechnology are enabling technologies that are used in a variety of industry sectors such as healthcare/pharmaceuticals, animal health, textiles,

chemicals, plastic, paper, fuel, food and feed processing.

Biotechnology makes a significant contribution to core European Union policy goals including public health, ageing society, economic growth, job creation,

sustainable development, and environmental protection.

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To ensure that policies are implemented consistently in Europe, a broad and detailed strategy and action plan for the development of biotechnology-based products

were adopted in 2002 by the Commission. The mid-term review in 2007 revealed that the implementation had been successful during the first four years, and five

new priorities were defined for the period 2007-2010, inter alia better access to finance and a more efficient technology transfer.

Chemicals

The chemicals, plastics and rubber industries are among the largest and the most dynamic industrial sectors in the EU. Together they generate about 3.2 million

jobs in more than 60 000 companies. In 2007 chemicals sales in the EU amounted to €537 billion which is about 30 % of global chemicals sales. Regulation has a

significant impact on the chemicals industry. This is why the quality of legislation, correct implementation and proper enforcement are not only of high significance

for the achievement of health and environmental objectives, but also for the competitiveness of the chemicals industry.

Construction

The Construction Products Regulation (305/2011/EU - CPR) – replacing the Construction Products Directive (89/106/EEC - CPD) is laying down harmonised conditions

for the marketing of construction products.

Defence industries

The European defence industry makes a major contribution to the security and defence of European citizens. The key objective of the European Commission's

defence industrial policy is to develop an innovative and competitive European Defence Technological and Industrial Base (EDTIB). Such an EDTIB is an important

prerequisite for an effective European Security and Defence Policy (ESDP) which is designed to provide the EU with the capacity for autonomous action in order to

respond to international crises, without prejudice to actions by NATO. A competitive EDTIB is also required to provide Europe with affordability and the ability to

cooperate internationally in the development and production of defence equipment.

Electrical engineering

Electrical Engineering accounts for 3% of the production, value-added and employment of the EU25. 9,615 electrical engineering enterprises with 20 or more

employees produced in 2004 €192,870 m worth of electrical apparatus and equipment, directly employing 1,237 m people.

As a major supplier to other sectors, Electrical Engineering is very cycle sensitive.

The EU electrical engineering market is the world's largest one (€181 bn), followed by the US and Japan (€96 bn and €84 bn).

Food industry

The food and drink industry is one of Europe's most important and dynamic industrial sectors. It is made up of about 310 000 companies, and provides jobs for more

than 4 million people.

With an annual turnover in excess of €900 billion, this diverse sector is a strong exporter and is responsible for countless end products in extremely competitive

domestic and international markets. But room for improvement still exists.

Excess red tape, finance shortages, a lack of R&D opportunities and difficulties to access raw materials are some of the main obstacles which must be cleared if the

EU is to position itself more strongly in world markets.

Footwear

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The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber and leather) and products from different types of men's,

women's and children's footwear to more specialised products like snowboard boots and protective footwear. This diversity of end products corresponds to a

multitude of industrial processes, enterprises and market structures.

EU action aims to promote innovation, competitiveness and competition between companies involved in the sector, combat fraud and counterfeiting, and protect

consumers' health and the environment.

Furniture

The furniture industry is essentially an assembling industry, which employs various raw materials to manufacture its products. They range from wood and wood

based panels to metals, plastics, textile, leather and glass. There are many different types of furniture (e.g. chairs, sofas, tables, wardrobes, kitchens, mattresses)

with very different uses (e.g. households, schools, offices).

Nowadays, the EU furniture industry has a high level of production quality in technical, aesthetic, design and fashion related terms and has a strong image

worldwide.

Healthcare Industries

The pharmaceutical industry makes an important contribution to Europe's and the world's well-being. It is a strategic sector due to its economic as well as its public

health dimension.

Europe needs to preserve a vibrant pharmaceutical sector as an essential precondition to ensure a high level of public health protection and a competitive

knowledge-based economy.

Information and communication technologies

The Information and communication technologies (ICT) sector accounted for a substantial part of EU GDP and employment. However, ICT is a ubiquitous technology

and investments in ICT are also estimated to have been responsible for around half of the EU's productivity growth in recent years.

It is a highly R&D intensive sector, accounting for around a quarter of EU R&D. As general purpose technologies, ICT goods and services are important drivers of

productivity growth and economic performance across all sectors.

ICT enables process and product innovation, and money spent on computing technology delivers gains in worker productivity, which are many times higher than

those of other investments.

Leather

Leather tanning covers the treatment of raw materials, i.e. the conversion of raw hide or skin, a putrescible material, into leather, a stable material, and finishing it

so that it can be used in the manufacture of a wide range of consumer products.

The leather tanning industry uses hides and skins - by-products from the meat and dairy industry - which would otherwise have to be disposed of by other means,

such as landfills and incineration. Leather is the tanning sector's fundamental output. It is an intermediate industrial product, with applications in downstream

sectors of the consumer goods industry. Footwear, garment, furniture, automotive and leather goods industries are the most important outlets for EU tanners'

production.

Legal metrology and pre-packaging

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Measuring instruments are essential to ensure accuracy of measurement, notably for transactions by consumers and industry in every day life: examples include

water meters, taximeters, electricity meters and weighing machines. The EU legislation promotes rapid technological innovation and choice in conformity

assessment procedures.

In 2009 the European Commission has given a mandate   and ETSI in the field of measuring instruments to create European standards that will enable

interoperability of utility meters (water, gas, electricity, heat) and then enhance energy efficiency and user empowerment.

Pre-packages consist of product and packaging materials. The contents of pre-packages must be measured in order to quantify the amount of product inside. That

is where metrology plays a role. It allows producers and authorities to accurately check the sizes and weights of all pre-packed products such as detergents, pet

food, ice cream, frozen food, low alcoholic drinks, soft drinks, cleaning products, paints, shampoo, and toothpaste.

For wine and alcohol the EU prescribes the sizes of pre-packed products allowed.

Units of measurement are essential in everyday life to ensure transactions and to protect health and safety.

Maritime industries

Maritime industries include both shipbuilding and recreational crafts. These two sectors benefit from EU support for trade, the environment, and for the

standardisation of building provisions and administrative procedures.

The difference between these two sectors lies in the purpose of the respective vessels:

Shipbuilding (including ship repair and conversion) is directed at the larger (mainly sea-going) vessels, intended for merchant/commercial purposes, but also

military vessels. It addresses as well products and services supplied for the building, conversion, and maintenance of these ships (seagoing and inland).

The recreational craft sector covers boats of 2.5 to 24m hull length intended for leisure or sport. It addresses mainly the internal market legislation these

products have to comply with for their free circulation on the EU market.

Mechanical engineering

Mechanical Engineering represents one of the largest industrial sectors in the European Union, in terms of number of enterprises (around 169 000 which are mostly

SMEs), employment (3,3 million people), production and generation of added value.

With 36% of the world market, Europe is the world's largest producer and exporter of machineries. The competitiveness of the industry relies inter alia on excellent,

innovative products, know-how and skills and the ability to comply with customers' wishes.

Mining, metals and minerals

Embracing steel, non-ferrous metals, non metallic mineral products (cement, ceramics, glass, and lime) and the non-energy extractive industries (mining and

minerals), the mission of Directorate-General Enterprise and Industry is to ensure that these sectors can operate within a framework which allows them to achieve a

high level of competitiveness, with particular regard to the principles of sustainable development and the practices of fair trade.

Pressure equipment and gas appliances

The industrial sector of pressure equipment covers a wide range of products. From consumer products such as fire extinguishers and pressure cookers up to huge

and complex industrial installations or boilers in power plants. Aerosol dispensers are also covered in this section.

The gas appliances sector concerns mainly common consumer and commercial products burning gaseous fuels used for cooking, heating, hot water production,

refrigeration, lighting and washing. Appliances specifically designed for use in industrial processes carried out on industrial premises are excluded.

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The European Commission promotes the global and sustainable competitiveness of these sectors by analysing the characteristics and challenges and by taking

necessary actions:

to ensure safety and free movement of these products in the enlarged EU internal market through the management, enforcement, simplification and

improvement of applicable legislation;

to actively participate in actions to increase access to third countries markets, to promote regulatory convergence and to expand geographically the Internal

Market;

to intervene in other relevant policies (trade, competition, environment, health and safety) having an impact on the competitiveness of the sector.

Radio and telecommunications terminal equipment (R&TTE)

The sector of Radiocommunications and Telecommunications Terminal Equipment Industriesencompasses all products using the radio frequency spectrum (e.g. car

door openers, mobile communications equipment like cellular telephones, CB radio, broadcast transmitters, etc.) and all equipment attached to public

telecommunications networks (e.g. ADSL modems, telephones, telephone switches). The R&TTE is one of the few high-tech sectors where the EU is a global leader

as in cellular communications.

Textiles and clothing

The textile and clothing (or T&C) industry is a diverse and heterogeneous industry which covers an important number of activities from the transformation of fibres

to yarns and fabrics to the production of a wide variety of products such as hi-tech synthetic yarns, wool, bed-linen, industrial filters, geo-textiles, clothing etc.

The sector is an important part of the European manufacturing industry. It plays a crucial role on the economy and social well-being in numerous regions of the EU-

27. According to the latest structural data available, in 2006 there were 220.000 companies employing 2.5 million people and generated a turnover of €190 billion.

The textile and clothing sector accounts for 3% of total manufacturing value added in Europe.

Tourism

Tourism is a key sector of the European economy. It comprises a wide variety of products and destinations and involves many different stakeholders, both public

and private, with areas of competence very decentralised, often at regional and local levels.

The EU tourism industry generates more than 5% of the EU GDP, with about 1,8 million enterprises employing around 5,2% of the total labour force (approximately

9,7 million jobs). When related sectors are taken into account, the estimated contribution of tourism to GDP creation is much higher: tourism indirectly generates

more than 10% of the European Union's GDP and provides about 12% of the labour force.

The Lisbon Treaty acknowledges the importance of tourism outlining a specific competence for the European Union in this field and allowing for decisions to be

taken by qualified majority. A specific article on tourism specifies that “the Union shall complement the action of the Member States in the tourism sector, in

particular by promoting the competitiveness of Union undertakings in that sector”.

Following its 2010 communication on tourism  the Commission has developed a rolling implementation plan  [87 KB] , outlining major tourism-related initiatives to

be implemented in close cooperation with national, regional and local public authorities  AS WELL AS with tourism associations and other public/private tourism

stakeholders.

The implementation plan will be updated regularly.

Toys

There are around 80 million children under 14 in the EU, and about 2 000 companies employing over 100 000 people directly in the toys and games sector, most are

small and medium-sized enterprises (SMEs).

Toys and games are vital tools for child development. Whilst manufacturers are responsible for the safety of their products, importers, notified bodies   and

national authorities all have a role to play in ensuring toys sold in Europe's shops fulfil all safety requirements.

Wood, Paper, Printing

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Forest-based industries include the woodworking industries, pulp and paper industries and theprinting industries. They use as their main raw materials wood, paper

or recovered paper and wood. They also include specialised sectors such as cork.

EU forest-based industries are competitive, boasting very good technical and commercial performance. The pulp and paper, woodworking and printing sectors are

world leaders in many areas. However, the sector faces a number of challenges, including access to raw materials, climate change, innovation, trade and the

provision of information on forest-based products. For woodworking and printing, the SME dimension is highly relevant. Many parts of these industries play an

essential role in maintaining sustainable employment in rural areas.

To learn about different business sectors of India, there is no better place than a b2bbusiness directory, where these businesses open their doors for the world. Considering the popularity and growth rate of businesses, here is a list of the top 10 business sectors of India.

Foods and BeveragesThe foods and beverage industry of India has gained popularity in the past 3-4 years, mainly due to the changing lifestyle and eating habits of the people. Most of the segments have recorded an increase in revenue from 2005 to 2009, the alcohol segment being on the top. A growth rate of 7.5 percent is expected between 2009 and 2013 to make it a 330 billion dollar industry by 2013.

IT IndustryThe information technology business sector of India is expected to increase by 14.1 percent from 2009 to 2010. The expert analysis predicts the industry to become 67 billion dollar industry in 2010 and to increase by 11 percent by the year 2013. IT services, software as well as hardware segments are making great contributions towards the growth rate of IT industry as a b2b business.

Health IndustryDue to a huge different in the healthcare costs in India and the western countries, the health industry of the country is experiencing a growth in terms of business. The analysis shows that the current 35 billion dollar industry is going to touch the figure of 75 billion dollars in 2012 and 150 billion dollar by the year 2017.

Telecom IndustryThe growth of telecommunication business sector in India can be easily termed as a revolution. The country enjoys the second rank as the telecom network provider. The rise of 3G services and mobile telephony has also contributed significantly towards the growth rate in the sector. The mobile subscribers in the country are expected to grow by 11 percent from 2010 to 2014.

Textile IndustryTextile industry in India is a globally reputed b2b business sector. The total textile exports from India contribute towards 27 percent of the total foreign exchange. Cotton, silk, jute, woolen, hand-crafted and ready made textiles are the main segments one can find in a global Indian b2b business directory.

Auto IndustryThe Indian auto component industry has been growing with a consistent growth rate of about 20 percent since 2000 and the rate is expected to remain consistent till 2015. Engine parts, drive transmission ad steering parts, suspension and braking parts and electrical parts are main contributors towards the growth of this global b2b business sector.

Construction IndustryAccounting towards 11 percent of India’s total GDP, the construction industry is an exporter of various raw materials to the world. For example, China is the biggest consumer of steel exported by India. Besides, the cement industry is a significant contributor in this category. 

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2. various study corporate industry

ollowing are the major functions of the Transport Division:A. Transport

Addressing policy issues concerning railways, roads, road transport, shipping, ports, inland water transport and civil aviation for improving efficiency and making these sectors more responsive to the present and future requirements of the country.

Addressing inter-modal issues for improving coordination among different transport sectors and ensuring that each sector works according to its comparative advantage and efficiency.

Organizing Quarterly Performance Review Meetings for different transport sectors to monitor progress of transport sector projects according to Plan priorities and targets.

Carrying out zero-based budgeting in consultation with various transport sector Ministries to improve efficiency and utilization of resources according to Plan priorities and objectives.

Work relating to Parliamentary Committees for different transport sectors.

Examining Five Year and Annual Plan proposals received from the States, Union Territories and North Eastern Council in respect of transport sectors.

Discussions with the representatives of the State Governments and Union Territories to review physical targets, programmes and outlays of Five Year and Annual Plans of States and Union Territories.

Examining the proposals of State Governments for provision of Additional Central Assistance.

Participation in various workshops and seminars relating to the transport sector.

Formulation, appraisal and monitoring of Five Year and Annual Plans.

Mid-term review of Five Year Plans.

Providing inputs for the Working Group Reports on the various transport sectors; preparing Steering Committee Report on Transport Sector.

Specific sector-wise responsibilities are as under:

I. Railways

Study of Railways Resources position.

Integrating and coordinating development plans for Railway transport with plans in related sectors such as industry, mining and ports.

Examination and appraisal of railway projects relating to new lines, gauge conversions, doubling, metropolitan transport projects, electrification for clearance.

Monitoring of traffic handled by railways

Determination of traffic targets based on inter-sector linkages.

II. Roads

Evaluation of project reports/feasibility studies for consideration of Public Investment Board, Expenditure Finance Committee/Standing Finance Committee.

Examination of schemes received from the Ministry of Road Transport & Highways for clearance of the Planning Commission relating to National Highways, Strategic roads, Roads of Economic and Inter-State importance, road development in sensitive border areas and tribal roads.

Review and Monitoring of National Highway Development Project comprising Golden Quadrilateral and North-South, East-West corridor projects.

Examination of proposals from various States in the North- Eastern region for providing assistance through Non-lapsable Central Pool of Resources.

Examining proposals received for the consideration of High Powered Committee on BOT projects.

Examining proposals relating to National Highway Development Project for consideration of National Highways Authority of India Board.

III. Road Transport

Analytical review of operations and assessment of financial resources of Road Transport Corporations of various States.

Preparation of Review notes of functioning of State Road Transport Undertakings/Corporations for improving efficiency.

IV. Shipping

Analytical review of operations and assessment of financial resources of Public Sector Undertakings.

Coordinating investment programme with a view to ensuring integrated development of ports, shipping and railways.

Reviewing and assessing the performance of Indian shipping industry with regard to traffic carried and productivity improvement. Requirement of the Indian Shipping sector is assessed taking into account traffic mix, technological development and port facilities available.

Assessment of financial performance of shipping industry, role of Government/financial institutions in financing acquisition and suggesting alternative measures of financing and resource mobilisation.

V. Ports

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Evaluation of Project Reports/Feasibility Studies for consideration of Public Investment Board/Expenditure Finance Committee/Standing Finance Committee.

2.Assessing port capacities and the traffic requirements at individual ports.

3.Port productivity indicators such as equipment, cargo-handling system, labour productivity monitored so that norms of productivity laid down should be fulfilled and improved.

Reviewing the working of major ports with particular reference to their development programmes, financial resources, projection of traffic.

VI. Inland Water Transport.

Examination of Project/Reports/Feasibility Studies for consideration of Public Investment Board/Expenditure Finance Committee.

VII. Civil Aviation

Reviewing the Working of Public Sector Corporations like Air India, Indian Airlines, International Airports Authority of India with particular reference to growth of traffic and financial results.

Evaluation of Project Reports/Feasibility Studies for acquisition of aircrafts, development of airports and associated programmes for consideration of Public Investment Boards/EFC/SFC.

Matters relating to restructuring of metro air ports to make them world class.

(B) Construction Sector

Construction Sector is an additional charge with the Transport Division. The main responsibility of the Transport Division is to examine the policy issues relating to the construction sector and preparing Report of the Working Group on Construction Sector set up in connection with the formulation of Five Year Plan; preparing material on construction sector for the Tenth Plan document. Other activities include participation in the seminars, workshops and conferences relating to construction sector, participation in

the meetings of Board of Governors of Construction Industry Developme INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

inventory for the manufacturing sector relatively takes more time to be converted into sales which is on average

72 days. The average Return on Total Assets for manufacturing sector is 15.73%.

Sector-wise Working Capital Management Performance (1998-2007)

S. No Sector CCC NTC RTD ITID PTD ROTA

1 Automobile Assembler 62 56 8 68 14 0.1795

2 Automobile Parts and Accessories 122 105 34 100 11 0.1796

3 Cable and Electric Goods 167 152 96 107 37 0.1296

4 Cement 12 12 12 25 25 0.0996

5 Chemical 59 54 26 74 42 0.1378

6 Engineering 144 127 50 118 23 0.1089

7 Fertilizer 16 17 17 23 24 0.2342

8 Food and Personal care Product 69 52 8 71 10 0.3139

9 Glass and Ceramics 131 113 57 103 29 0.1581

10 Jute 98 90 26 89 16 0.1668

11 Leather and Tanneries 140 123 65 134 60 0.1205

12 Oil and Gas Exploration &Refinery -1 4 49 29 79 0.1601

13 Oil and Gas Marketing 14 18 39 21 46 0.1499

14 Paper and Board 101 88 41 69 9 0.1665

15 Pharmaceutical 134 97 28 124 18 0.2144

16 Synthetic and Rayon 80 73 19 120 59 0.1188

17 Textile Composite 102 9nt Council and other organizations in the field of construction

Framework of corporate sectorshe Ministry of Corporate Affairs (MCA) is the main authority for regulating and promoting efficient, transparent and accountable form of corporate governance in the Indian corporate sector. It is constantly working towards improvement in the legislative framework and administrative set up, so as to enable easy incorporation and exit of the companies, as well as convenient compliance of regulations with transparency and accountability in corporate governance. It is primarily concerned with administration of the Companies Act, 1956 and related legislations.

1. The Companies Act, 1956 is the central legislation in India that empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. It applies to whole of India and to all types of companies, whether registered under this Act or an earlier Act. It provides for the powers and responsibilities of the directors and managers, raising of capital, holding of company meetings, maintenance and audit of company accounts, powers of inspection, etc. That is, it empowers the Central Government to inspect the books of accounts of a company, to direct special audit, to order investigation into the affairs of a company and to launch prosecution for violation of the Act. These inspections are designed to find out whether the companies conduct their affairs in accordance with the provisions of the Act, whether any unfair practices prejudicial to the public interest are being resorted to by any company or a group of companies and to examine whether there is any mismanagement which may adversely affect any interest of the shareholders, creditors, employees and others. 

The main objectives with which this Act has been introduced are to:- (i) help in the development of companies on healthy lines; (ii) maintain a minimum standard of good behaviour and business honesty in company promotion and management; (iii) protect the interests of the shareholders as well as the creditors; (iv) ensure fair and true disclosure of the affairs of companies in their annual published balance sheet and profit and loss accounts; (v) ensure proper standard of accounting and auditing; (vi) provide fair remuneration to management and Board of Directors as well as to company's employees; etc.

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The Companies Act, 1956 has elaborate provisions relating to the Governance of Companies, which deals with management and administration of companies. It contains special provisions with respect to the accounts and audit, directors remuneration, other financial and non-financial disclosures, corporate democracy, prevention of mismanagement, etc.

Every company shall in each year, hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it; and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next. At each annual general meeting, every company shall appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed.

Every auditor of a company shall have a right of access at all times to the books and accounts and vouchers of the company, whether kept at the head office of the company or elsewhere, and shall be entitled to require from the officers of the company such information and explanations as the auditor may think necessary for the performance of his duties as auditor.

The auditor shall inquire:- (i) whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are not prejudicial to the interests of the company or its members; (ii) whether transactions of the company which are represented merely by book entries are not prejudicial to the interests of the company; etc.

In the case of every company, a meeting of its Board of directors shall be held at least once in every three months and at least four such meetings shall be held in every year. Every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement, or proposed contract or arrangement, entered into or to be entered into, by or on behalf of the company, shall disclose the nature of his concern or interest at a meeting of the Board of directors.

No director of a company shall, as a director, take any part in the discussion of, or vote on, any contract or arrangement entered into, or to be entered into, by or on behalf of the company, if he is in any way, whether directly or indirectly, concerned or interested in the contract or arrangement; nor shall his presence count for the purpose of forming a quorum at the time of any such discussion or vote; and if he does vote, his vote shall be void.

Every company shall keep one or more registers in which shall be entered separately particulars of all contracts or arrangements, including the following particulars to the extent they are applicable in each case, namely:- (i) the date of the contract or arrangement; (ii) the names of the parties thereto; (iii) the principal terms and conditions thereof; (iv) in the case of a contract or arrangement to which this Act applies, the date on which it was placed before the Board; (v) the names of the directors voting for and against the contract or arrangement and the names of those remaining neutral. Further, every company shall keep at its registered office a register of its directors, managing director, managing agent, secretaries and treasurers, manager and secretary.

The remuneration payable to the directors of a company, including any managing or whole-time director, shall be determined, either by the articles of the company, or by a resolution or, if the articles so require, by a special resolution, passed by the

Laws governing corporate sectors

Laws relating to Specific Industries

There are several legislations which regulate the conditions of employment, work environment and other welfare requirements of certain specific industries. These enactments deal with factories and workshops; mines and minerals; plantations; shops and establishments as well as transportation. Some of the major legislations are:-

The Factories Act,1948  is the umbrella legislation enacted to regulate the working conditions in factories. According to the Act, a 'factory' means "any premises including the precincts thereof:- (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on; but this does not include a mine subject to the operation of the Mines Act, 1952 , or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place."

The Act is administered by the Ministry of Labour and Employmentthrough its Directorate General Factory Advice Service & Labour Institutes (DGFASLI)   and by the State Governments through their factory inspectorates. DGFASLI serves as a technical arm to assist the Ministry in formulating national policies on occupational safety and health in factories and docks.

The Plantation Labour Act, 1951   provides for the welfare of plantation labour and regulates the conditions of work in plantations. According to the Act, the term 'plantation' means "any plantation to which this Act, whether wholly or in part, applies and includes offices, hospitals, dispensaries, schools, and any other premises used for any purpose connected with such plantation, but does not include any factory on the premises to which the provisions of the Factories Act,1948apply".

The Act is administered by the Ministry of Labour   through its Industrial Relations Division   . The Division is concerned with improving the institutional framework for dispute settlement and amending labour laws relating to industrial relations. It works in close co-ordination with theCentral Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets a stable, dignified and efficient workforce, free from exploitation and capable of generating higher levels of output.

The Mines Act, 1952   contains provisions for measures relating to the health, safety and welfare of workers in the coal, metalliferous and oil mines. According to the Act,the term 'mine' means "any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on and includes all borings, bore holes, oil wells and accessory crude conditioning plants, shafts, opencast workings, conveyors or aerial ropeways, planes, machinery works, railways, tramways, slidings, workshops, power stations, etc. or any premises connected with mining operations and near or in the mining area".

The Act is administered by the Ministry of Labour and Employmentthrough the Directorate General of Mines Safety (DGMS). DGMS is the Indian Government regulatory agency for safety in mines and oil-fields. It conducts inspections and inquiries, issues competency tests for the purpose of appointment to various posts in the mines, organises seminars/conferences on various aspects of safety of workers.

The Contract Labour (Regulation & Abolition) Act, 1970 was enacted to regulate employment of contract labour so as to place it at par with labour employed directly, with regard to the working conditions and certain other benefits. Contract labour refers to "the workers engaged by a contractor for the user enterprises". These workers are generally engaged in agricultural operations, plantation, construction industry, ports & docks, oil fields, factories, railways, shipping, airlines, road transport, etc.

The Act is implemented both by the Centre and the State Governments. The Central Government has jurisdiction over establishments like railways, banks, mines etc. and the State Governments have jurisdiction over units located in that state. In the Central sphere, the Central Industrial Relations Machinery (CIRM) headed by Chief Labour Commissioner

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(Central) and his officers have been entrusted with the responsibility of enforcing the provisions of the Act and the rules made thereunder.

The Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996   was enacted to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures. The Act is applicable to every establishment which employs ten or more workers in any building or other construction work and to the projects costing more than Rs. 10 lakh. The Act contains provision for immediate assistance to the workers in case of accidents; old age pension; loans for construction of house; premia for group insurance; financial assistance for education, medical expenses and maternity benefits, etc.

The Motor Transport Workers Act, 1961 was enacted to provide for the welfare of motor transport workers and to regulate the conditions of their work. It applies to every motor transport undertaking employing five or more motor transport workers. The State Government may, after giving notification in the Official Gazette, apply all or any of the provisions of this Act to any motortransport undertaking employing less than five motor transport workers. According to the Act, 'motor transport undertaking' means "an undertaking engaged in carrying passengers or goods or both by road for hire or reward and includes a private carrier".

Every employer of a motor transport undertaking to which this Act applies shall have the undertaking registered under this Act. No adult motor transport worker shall be required or allowed to work for more than eight hours in any day and forty-eight hours in any week. Also, no adolescent shall be employed or required to work as a motor transport worker in any motor transport undertaking for more than six hours a day including rest interval of half-an-hour; and between the hours of 10 P.M. and 6 A.M.

The Sales Promotion Employees (Conditions of Service) Act, 1976 was enacted to regulate certain conditions of service of sales promotion employees in certain establishments. According to the Act, the term 'sales promotion employees' means, "any person by whatever name called (including an apprentice) employed or engaged in any establishment for hire or reward to do include any such person:- (i) who, being employed or engaged in a supervisory capacity, draws wages exceeding sixteen hundred rupees per mensem; or (ii) who is employed or engaged mainly in a managerial or administrative capacity".

The Act shall apply to every establishment engaged in the pharmaceutical industry. The Central Government may, by notification in the Official Gazette, apply the provisions of this Act, to any other establishment engaged in any notified industry. Every employer in relation to an establishment shall keep and maintain such registers and other documents and in such manner as may be prescribed.

The Shops and Establishments Act,1953 was enacted to provide statutory obligation and rights to employees and employers in the unorganised sector of employment, i.e. shops and establishments. It is applicable to all persons employed in an establishment with or without wages, except the members of the employer's family. It is a State legislation and each State has framed its own rules for the Act. The State Government can exempt, either permanently or for a specified period, any establishments from all or any provisions of this Act. The Act provides for compulsory registration of shop/ establishment within thirty days of commencement of work and all communications of closure of an establishment within 15 days from its closing. It also lays down the hours of work per day and week as well as the guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work, etc.

The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 was enacted to protect the rights and safeguard the interest of migrant workers. The Act intends to regulate the employment of inter-state migrant workmen and to provide their conditions of service. It applies to every establishment and the contractor, who employ five or more inter-state migrant workmen. The Act has provision for issue of Pass-Book to every inter-state migrant workman with full details, payment of displacement allowance, payment of journey allowance including payment of wage during the period of journey, suitable residential accommodation, medical facilities and protective clothing, payment of wages, equal pay for equal work irrespective of sex etc.

The responsibility for enforcement of the Act in establishments where the Central Government is the appropriate Government lies with the office of theChief Labour Commissioner (Central) and for the establishments located under the States sphere lies with the respective State Governments.

Also, to extend a measure of social assistance to workers in the unorganised sector, the concept of 'Labour Welfare Fund' was evolved and five welfare funds were set up under the Ministry of Labour and Employment. These funds are aimed to provide housing, medical care, educational and recreational facilities to workers employed in beedi industry, certain non-coal mines and cine workers. Such funds are financed out of the proceeds of cess levied under respective Cess/Fund Acts. The various legislation so enacted include:- 

The Mica Mines Labour Welfare Fund Act, 1946   - was enacted to provide for constitution of a fund for financing the activities which promote welfare of labour employed in the mica mining industry.

The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972   - was enacted to provide for the levy and collection of a cess on limestone and dolomite for financing the activities which promote the welfare of persons employed in the limestone and dolomite mines. 

The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976   - was enacted to provide for financing the activities which promote the welfare of persons employed in the iron ore mines, manganese ore mines and chrome ore mines. 

The Beedi Workers Welfare Fund Act, 1976   - was enacted to provide for financing the measures which promote the welfare of persons engaged in beedi establishments.; and 

The Cine Workers Welfare Fund Act, 1981   - was enacted to provide for financing the activities which promote the welfare of certain cine-workers.

The above Acts provide that the fund may be applied by the Central Government to meet the expenditure incurred in connection with measures and facilities which are necessary to provide the welfare of the respective workers.

INDUSTRY & SERVICES  AUTO INDUSTRY

On the canvas of the Indian economy, automotive industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. A sound transportation system plays a pivotal role in the country's rapid economic and industrial development. The well-developed Indian automotive industry ably fulfils this catalytic role by producing a wide variety of vehicles:passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters,

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motorcycles, mopeds, three wheelers, tractors etc.

Automotive Industry comprises of automobile and auto component sectors and is one of the key drivers of the national economy as it provides large-scale employment, having a strong multiplier effect. Being one of the largest industries in India, this industry has been witnessing impressive growth during the last two decades. It has been able to restructure itself, absorb newer technology, align itself to the global developments and realize its potential. This has significantly increased automotive industry's contribution to overall industrial growth in the country.

Growth Drivers of Indian Automobile Market

Rising industrial and agricultural output

Rising per capita income

Favourable demographic distribution with rising working population and middle class Urbanisation

Increasing disposable incomes in rural agri-sector

Availability of a variety of vehicle models meeting diverse needs and preferences

Greater affordability of vehicles

Easy finance schemes

Favourable government policies

Robust production

India's Position in World's Production

Well-developed, globally competitive auto ancillary industry 

Established automobile testing and R&D centres 

Among one of the lowest cost producers of steel in the world

World’s second largest manufacturer of two wheelers 

Fifth largest manufacturer of commercial vehicles

Manufactures largest number of tractors in the world 

Ninth largest car manufacturer in world

Automobile Industry

One of the major industrial sectors in India is the automobile sector. Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy as this sector has witnessed tremendous growth.

Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. The norms for Foreign Investment and import of technology have also been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive.

At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of US$ 2 million is also allowed under automatic route in this sector. With the gradual liberalization of the automobile sector since 1991, the number of manufacturing facilities in India has grown progressively.

 

BIOTECHNOLOGY

With its large pool of scientific talent, world-class information technology industry, and vibrant pharmaceutical sector, India is well positioned to emerge as a significant player in the global biotech arena. Biotechnology is perceived as a revolution throughout the world. Scientists, through Research and Development (R&D), have developed and are continuing to develop cures for diseases that have affected people for decades and even centuries.

With its large population of over a billion people there is a huge market for products and services. India 's population has a very interesting demography that creates almost a perfect environment for biotech companies to shift bases here. In addition the Indian sub-continent, which occupies only 2.4% of the total global surface area, has the most varied species of flora and fauna.

Indian Advantage

• Promising potential to be a global player in the arena of biotechnology • Large pool of skilled and cost competitive manpower • Well developed and integrated scientific infrastructure • Advanced chemical synthesis technologies • Manufacturing practices conforming to US and EU norms • Diverse biological resources • Globally recognized as a producer of low cost, high quality bulk drugs and formulations.

Overview of Biotech Industry

The Biotech Industry in India in FY 2010-11 clocked US$ 3927.6 million, excluding life sciences education (with which the biotech industry has crossed US$ 4 billion) , growing 21.5 percent over the last year’s revenue of US$ 3233.2 million.

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The revenue split between exports and domestic sales has also recorded minor shifts ranging between two-to-five percent. The exports across segment made up 51 percent of the overall revenue contributing a total of US$ 2015.7 million. The ratio between exports and domestic sales stands at 51:49, which is a sign of a robust industry.

Indian Biopharma Sector

India BioPharma market comprising primarily of vaccines, therapeutic drugs, insulin, animal biologicals, stations and diagnostics, continued to grab the largest share of the total biotech industry revenue of US$ 3924.4 million in 2010-11. The biopharma market accounted for US$ 2424.8 million , with 61.8 percent of market share in 2010-11.It accounted for US$ 2008.7 million, taking 62 percent market share in 2009-10.

Vaccines: Vaccines sector within biopharma segment witnessed a continued growth of 12 percent during 2010-11. With the revenue of US$ 555.4 million in 2010-11, vaccines sector claimed the largest pie in the biopharma segment. In 2009-10 the vaccines sector had sales of US$ 495.9 million.

Diagnostics: Driven by a rise and investments in the healthcare infrastructure, diagnostics and therapeutics business had a positive impact on the diagnostic sector. The diagnostic market is estimated to be at US$ 555.2 million for 2010-11 registering growth of 22 percent over last year’s market of US$ 455.1 million.

Therapeutics: The total biologics market in India witnessed a growth of over 35 percent and stood at over US$ US$ 455.1 million for year ending 2010 as against US$ 336.8 million for the year ending 2009. For 2010, the human insulin and analogues market stood at over US$ 177.5 million and erythropoietin stood at US$ 23.4 million.

Indian Bioservices Sector

The bioServices sector clocked total revenues of US$ 738.4 million in 2010-11, registering a growth of 23 percent over last year’s (2009-10) total segment revenue of US$ 600.2 million.This constitutes about 19 percent of the total biotech industry revenue for the fiscal.

Looking into the future, the contract research organization (CRO) industry will continue to grow at a rate of 20-30 percent in the next three years. The segment will also see the entry of a number of small-sized homegrown CROs into the market looking at BA/BE studies. Also, being on the growth mode, Indian CROs will look at outbound acquisitions both big and small. Mandatory registration of all clinical trials in India has brought about the much-needed transparency into the system and this in turn will lead to a rise in the number of global companies outsourcing clinical trials to India.

Indian BioAgri Sector

The BioAgri market clocked total revenue sales of US$ 564 million in 2010-2011 as against US$ 440.3 million in 2009-2010. This accounts for 14.4 percent of the total biotech revenues. Bt cotton has been a roaring success with 95 percent of Indian farmers adopting the technology. India today is the fourth largest country in the world under Bt cotton cultivation.

The total land area under Bt cotton in 2010-2011 was 9.5 million hectare, which is over 85 percent of the total land under cotton cultivation in the country. In the fiscal 2009-2010, the total land acreage under Bt cotton cultivation was 8.4 million hectare. Maharashtra with about 3.142 million hectare has the highest area under Bt cotton acreage followed by Gujarat at 2.354 million hectare and Andhra Pradesh at 1.399 million hectare. Punjab, Haryana, Rajasthan and Karnataka are other important states undertaking Bt cotton cultivation.

Indian BioIndustrial Sector

The bioIndustrial market in India clocked US$ 142.3 million in 2010-2011, growing at a rate of 10.9 percent for 2010-2011, as against US$ 128.2 million in 2009-2010. India has a marginal share in the global market for industrial enzymes, which is estimated to be at about US$ 3387.30 million.The segment is forecasted to grow at a CAGR of 15 percent till 2015.

Though there is a prevailing domestic demand, the segment is largely export driven. Major export markets include the US (global share of 40 per cent), Europe (global share 25 percent) China (Global share: 20 percent). Others include Rest of Asia (Global share of 15 percent). Realizing the potential of the opportunities outside India, many Indian companies are expanding their base outside the country even into difficult markets such as China. Advanced Enzymes for instance, will start its European and Chinese subsidiaries for market expansion. And this is how the company expects to achieve its US$ 227.4 million revenue-milestone in the next five years.

Indian BioInformatics Sector

The bioInformatics segment, which is the smallest of industry segments constituting barely two percent of the market share in the overall industry revenue, grew by 4.9 percent in FY 2010-11. The segment clocked US$ 55.1 million in this fiscal as compared to US$ 52.5 million in FY 2009-10. The major players in the segment, Strand Life Sciences and Ocimum Biosolutions collectively contributed US$ 24.3 million to the overall revenue.

The factors contributing to this growth include tracking of discovery activities, data analysis, and pharma research. The different sub verticals covered under it are Informatics, Omics, Lab information, Clinical Data Management and Biostatistics.

Biotech Industry Exports of different sectors during FY 2009-10

Segment 2009-10 2010-11

  ExportsRs Crore

(US$ Million)

Percentage Share (%) ExportsRs Crore

(US$ Million)

Percentage Share (%)

BioPharma 4767.7(1081.7) 

54 5535.4(1255.6)

52

BioServices 2507(569)

95 2986.3(677.4)

92

BioAgri 58.1(13.2)

3 74.4(16.9)

3

BioIndustrial 124.1(28.2)

22 150.2(34.1)

24

Bioinformatics 73.9(16.8)

32 106.02 (24)

42

Total 170.9(38.8) 

53 8852.3( 2008)

51.3

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Source: Association of Biotechnology led Enterprises (Able) CEMENT

An Overview

Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminium oxide and iron oxide. The demand for cement, depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered preferred building material and is used worldwide for all construction works such as housing and industrial construction, as well as for creation of infrastructures like ports, roads, power plants, etc. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology upgradation.

The Indian cement industry is extremely energy intensive and is the third largest user of coal in the country. It is modern and uses latest technology, which is among the best in the world. Also, the industry has tremendous potential for development as limestone of excellent quality is found almost throughout the country.

Current Scenario

The Indian cement industry is the second largest producer of quality cement. Indian Cement Industry is engaged in the production of several varieties of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the best in the world.

The industry occupies an important place in the national economy because of its strong linkages to other sectors such as construction, transportation, coal and power. The cement industry is also one of the major contributors to the exchequer by way of indirect taxes.

Facts of Indian Cement Industry (1982 – 2009) 

The Industry recorded an exponential growth with the introduction of partial decontrol in 1982 culminating in total decontrol in 1989. 

The capacity, which was 29 Mn.t in 1981-82, rose to 219 Mn.t at the end of FY09. 

While it took 8 decades to reach the 1st 100 Mn.t capacity, the 2 nd 100 Mn.t was added in just 10 years. 

India ranks second in world cement producing countries. 

It contributes to environmental cleanliness by consuming hazardous wastes like Fly Ash (around 30 Mn.t) from thermal power plants and the entire 8 Mn.t of slag produced by steel manufacturing units. 

As a part of Corporate Social Responsibility (CSR), the cement Industry employs around 0.1 million people and takes care of the social needs not only of the employees but also adopts several villages around the factories providing free drinking water, electricity, medical and educational facilities. 

The cement Industry produces a variety of cement to suit a host of applications matching the world's best in quality. 

Exports Cement/Clinker to around 30 countries across the globe and earns precious foreign exchange.

Statistics

Figures in Million Tonnes

Description May2012

April2012

May2011

2012-2013 2011-2012

        (April and May)

Cement Production 16.20 16.01 14.27 32.21 28.87

Cement Despatches 16.26 15.50 14.20 31.76 28.58

Source: Cement Manufacturers' Association

Key Drivers of Cement Industry

Buoyant real estate market

Increase in infrastructure spending

Various governmental programmes like National Rural Employment Guarantee

Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana

CHEMICALS

The chemical industry, which includes basic chemicals and its products, petrochemicals, fertilizers, paints & varnishes, gases, soaps, perfumes & toiletries and pharmaceuticals is one of the most diversified of all industrial sectors covering thousands of commercial products. It plays an important role in the overall development of the Indian economy. It contributes about 3 per cent in the GDP of the country.

Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but., which are required in almost all walks of life. Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. With investments in R&D, the industry is registering significant growth in the knowledge sector comprising of specialty chemicals, fine chemicals and pharmaceuticals.Indian chemical industry is expected to grow to US$100 billion by 2015.

Overview of the Chemical Industry

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The chemical and petrochemical sector in India presently constitutes 14 per cent of the industrial domestic activity. It should also be noted that investments in this sector are highly capital intensive with long gestation periods. The growth of petrochemicals and chemicals is projected at 12.6 per cent and 8 per cent respectively in the 11th five year plan (2007-2012). According to the United Nations Industrial Development Organization (UNIDO), in terms of value added at constant 2000 prices, the Indian chemical Industry is 6 th in the world and 3rd in Asia .

Production trends 

Production of Selected Major Chemicals

Sector Production (in �000 Metric Tonne) Growth (%) 

  2007-08 2008-09 2009-10 2010-11 up to Sept.

2009-10/ 2008- 09 CARG 2009-10/05-06

Alkali Chemicals 5443 5442 5602 2890 2.9 0.6

Inorganic chemicals 609 512 518 281 -12.6 -1.2

Organic Chemicals 1552 1254 1280 649 -19.2 -4.6

Pesticides (Tech.) 83 85 82 44 -3.5 0.0

Dyes & Dyestuffs 44 32 42 24 31.2 8.8

Total Major Chemicals 7731 7325 7524 3888 2.70 -0.5

 

Production of Selected Major Petrochemicals

Sub-Group Production (in �000 Metric Tonne) Annual Growth 

  2007-08 2008-09 2009-10 2010-11 up to Sept.

2009-10/ 2008- 09 CARG 2009-10/05-06

Synthetic Fibers 2524 2343 2601 1362 11.01 8.08

Polymers 5304 5060 4791 2486 -5.32 0.12

Elastomers (S. Rubber) 106 96 106 51 10.42 -0.92

Synthetic Detergent Intermediates 585 552 618 302 11.96 2.68

Performance Plastics 157 141 172 78 21.99 7.88

Total Major Petrochemicals 8676 8192 8288 4279 1.15 2.64

Source:Annual Report 2010-11,Ministry of Chemicals and Fertilizers,Government of India

Dyestuff sector

The Dyestuff sector is one of the important segments of the chemicals industry in India, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts for the largest consumption of dyestuffs. From being importers and distributors in the 1950's, it has now emerged as a very strong industry and a major foreign exchange earner. India has emerged as a global supplier of dyestuffs and dye intermediates, particularly for reactives, acid, vat and direct dyes. India accounts for 7 per cent of the world production.

Concessions to Chemical Companies 

Some chemical companies had demanded concessions during the recession period. These included reduction in Central Excise Duty from 14 per cent - 8 per cent, roll back of Import duty of 5 per cent on Naptha, levy of crisis duty (10 per cent) on all chemicals, intermediates, dyes, pigments and pesticides, expeditious disposal of anti dumping/Safeguard Measures, fiscal reliefs to SMEs and provision of low cost credit to them.

The Government has taken the following decisions in this regard:

(i) Reduction of Excise Duty from 14 per cent-10 per cent and then from 10 per cent-8 per cent.

(ii) Anti dumping duty/Safeguards were imposed in respect of following:

Soda Ash Imposition of Safeguard Duty 20 per cent

Caustic Soda Imposition of Safeguard Duty 15 per cent

Carbon Black Anti Dumping duty $78-$195 per MT country specific

(iii) DEPB rates were restored to March, 2008 level.

(iv) 150 per cent weighted deductions of expenditure on R&D for recognized R&D units.

(v) Period of credit for exports was increased from 180 days to 270 days.

Foreign Direct Policy in Chemical Sector

In chemical sector, 100 per cent FDI is permissible. Manufacture of most chemical products inter-alia covering organic/inorganic, dyestuffs & Pesticides is delicensed. The entrepreneurs need to submit only IEM with the Department of Industrial Policy and Promotion, provided no locational angle is applicable. Only the following items are covered in the compulsory licensing list because of their hazardous nature.

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Hydrocyanic acid & its derivatives

Phosgene & its derivatives 

Isocynates & di-isocynates of hydrocarbons

FOOD PROCESSING

Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading, sorting, packaging which enhance shelf life of food products. The food processing industry provides vital linkages and synergies between industry and agriculture. The Food Processing Industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government has accorded it a high priority, with a number of fiscal reliefs and incentives, to encourage commercialization and value addition to agricultural produce, for minimizing pre/post harvest wastage, generating employment and export growth. India's food processing sector covers a wide range of products fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc.

Indian food processing industry is widely recognized as a 'sunrise industry' having huge potential for uplifting agricultural economy, creation of large scale processed food manufacturing and food chain facilities, and the resultant generation of employment and export earnings. The industry is estimated to be worth around US$ 67 billion and employing about 13 million people directly and about 35 million people indirectly. The food processing sector in India is geared to meet the international standards. Food Safety and Standards Authority of India has the mandate to develop standards and also to harmonise the same with International Standards consistent with food hygiene and food safety requirement and to the conditions of India's food industry.

Two nodal agencies, Agricultural & Processed food products Export Development Authority (APEDA) and Marine Products Export Development Authority (MPEDA), were formed for promoting exports from India. MPEDA is responsible for overseeing all fish and fishery product exports; APEDA, on the other hand, holds responsibility for the exports of other processed food products.

Advantage India

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies

India is looking for investment in infrastructure, packaging and marketing

India has huge scientific and research talent pool

Well developed infrastructure and distribution network

Rapid urbanisation, increased literacy,changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new

opportunities in food and beverages sector

50 per cent of household expenditure by Indians is on food items

Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia).

India's Position in World's Production

Largest producer of milk in the world (105 million tonnes per annum)

Largest livestock population(485 million tonnes per annum)

Second largest producer of fruits & vegetables (150 million tonnes per annum)

Third largest producer of food grain (230 million tonnes per annum)

Third largest producer of fish (7 million tonnes per annum)

52% cultivable land compared to 11% world average 

All 15 major climates in the world exist in India

46 out of 60 soil types exist in India

20 agri-climatic regions

Key Growth Drivers of Food Processing Sector in India

Increasing spending on health and nutritional foods.

Increasing number of nuclear families and working women

Changing lifestyle 

Functional foods, fresh or processed foods 

Organised retail and private label penetration

Changing demographics and rising disposable incomes

Key Opportunities in Food processing Sector

Processable varieties of crop

Contract farming

Investments in infrastructure through Public Private partnership (PPP)

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Mega Food parks

Integrated cold chain

Food safety Management Systems

 

GEMS AND JEWELLERY

Gems and Jewellery is an important emerging sector in the Indian Economy. Ranked among the fastest growing sectors, it is also a leading sector for foreign exchange generation.

The gems and jewellery industry is very much fascinating being traditionally glamorous and artistically modern. This business employees and engages millions; cover wide activities such as raw material procurement from far flung Africa, Australia, Canada and Russia, and transforming these into products in demand with the skills available in China, India, Italy and Turkey for the sophisticated markets in the USA, Europe, Far East, Middle East and Asia.

India's Position in Gems and Jewellery Sector

Gems and Jewellery is one of India 's leading foreign exchange earning sectors.

It accounted for 16.7 per cent of India 's total Merchandise Exports.

USA’s import of Gem & Jewellery from India increased by 50.5% in 2010 as compared to 2009.

India Gems & Jewellery exports are expected to grow at a whopping 15 to 20 per cent in FY 2011-2012.

At present India exports 95% of the world’s diamonds.

Advantage India

Gems and Jewellery hub

Rich tradition / heritage of craftsmanship with high level of skills

Low production costs

Effective worldwide distribution network for promotion and marketing.

Diamond polishing capital of the world.

Manufacturing excellence

Key Industry Components

Diamonds:

Diamonds have always enjoyed a special place among precious gemstones. In the past, diamond jewellery was limited to a very small elite segment of the global population. However, over the past 50 years, diamonds have seen increasing democratisation. Diamond jewellery has, therefore, emerged as a segment showing significant growth in some of the emerging markets.

Gold:

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Gold has always been the jewellers' favourite metal given its intrinsic lustre and ease of fabrication Gold jewellery enjoys the leading position in most markets across the world, and in many ways forms the backbone of the precious jewellery industry. Given the fact that gold is also one of the traded metals, gold jewellery consumption is also impacted by gold price movements.

Coloured gemstones:

This segment includes all other forms of jewellery; precious gemstones (emeralds, sapphires, rubies and tanzanite) and semi-precious gemstones; silver, pearls, etc. The industry is highly fragmented making it difficult to track supply, demand and global trade.

Exports

During the Fiscal Year 2010-11, the total exports for gems and jewellery stood at US$ 43139.24 million as compared to US$ 29368.72 million during the fiscal year 2009-10. During the same period, the sector registered a growth of 46.89 per cent over the previous year.

Composition of Exports

Cut and polished diamonds: The export of cut and polished diamonds grew manifold in 2010-11 as compared to 2009-10. In 2010-11, the export of cut and polished

diamonds was US$ 28251.92 million as compared US$ 18237.56 million, recording a growth of 54.91 per cent.

Coloured Gemstones: Export of coloured gemstones was registered at US$ 314.54 million in 2010-11 as compared to US$ 286.78 million in 2009-10, showing a growth of

9.68 per cent.

Gold Jewellery: Export of Gold jewellery also grew in 2010-11, registering US$ 12885.59 million as compared to US$ 9669.10 million in 2009-10. A growth of 33.27 per cent

was recorded.

Net Exports of Gems and Jewellery items during April-May 2012

Summary of provisional figures of Export of gems & jewellery items during April-May 2012

Items April-May2012 April-May 2012(Same ports as current year)

% Growth/decline over previous Year

  US$ in Million US$ in Million US$

Cut & Pol Diamonds 2595.88 4292.02 -39.52

Gold Jewellery-D.T.A 334.33 316.89 5.50

SEZ/EPZ (included Gold Jewellery & Gold Medallions and coins) 2556.32 1957.23 30.61

Total 2890.65 2274.12 27.11

Coloured Gemstones 42.94 43.59 -1.49

Silver Jewellery 78.7 89.85 -12.41

Others * 12.27 4.60 166.74

Net Exports 5620.44 6704.18 -16.17

Exports of Rough Diamonds 232.28 250.42 -7.24

Others 7.23 16.91 -

Total Exports 5859.95 6971.51 -15.94

Source: The Gem & Jewellery Export Promotion Council (GJEPC)

(As per RBI average exchange rate)

* Data of Cut & Pol Diamonds include export of CPD (Bonded W.H) also.

Figures for April - May 2012 are provisional and subject to revision.

Data for April & May 2012 does not include figures from Aircargo Mumbai FPO, Cochin Aircargo& Jaipur FPO May 2012

Above figures does not include data for costume/ fashion jewellery, and sales to foreign tourists

HEAVY INDUSTRY

Heavy Industry in India comprises of the heavy engineering industry, machine tool industry, heavy electrical industry, industrial machinery and auto-industry.These industries provides goods and services for almost all sectors of the economy,including power,rail and road transport.The machine building industry caters the requirements of equipment for basic industries such as steel,non-ferrous metals,fertilizers,refineries, petrochemicals,shipping,paper,cement,sugar,etc.

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Performance of Industry

Industrial sector registered a growth of 5.8per cent for the period April-July 2011-12 as compared to 9.7per cent in the corresponding period of 2010-11.The growth in the manufacturing,mining and electricity sectors during April-July, 2011-12 over the corresponding period of 2010-11 have been 1.1 per cent, 6.0 per cent and 9.4 per cent respectively, which moved the overall growth in the General Index to 5.8 per cent

Capital goods sector has registered a growth of 7.6 per cent during April-July 2011-12 as compared to the growth of 23.1 per cent during corresponding period of 2010-11.Consumer goods, Basic goods and intermediate goods recorded growth of 4.6 per cent, 7.9 per cent and 0.8per cent, respectively during April-July 2011-12 as compared to 10.0 per cent 5.2 per cent and 10.1 in same order.

The consumer durables sector recorded a growth of 4.2per cent in April-July 2011-12 as compared to 18.4 per cent in the corresponding period of the year 2010-11.The Consumer non-durables sector grew at 4.9 per cent dueing 2011-12 as compared to 3.8 per cent in 2010-11.

Sub-Sectors of Heavy Industry

Heavy Industry deals with the following 19 Industrial Sub-sector:

(i) Boilers(ii) Cement Machinery(iii) Dairy Machinery(iv) Electrical Furnace(v) Freight Containers(vi) Material Handling Equipment(vii) Metallurgical Machinery(viii) Mining Machinery(ix) Machine Tools(x) Oil Field Equipment(xi) Printing Machinery(xii) Pulp an Paper Machinery(xiii) Rubber Machinery(xiv) Switchgear and Control Gear(xv) Shunting Locomotive(xvi) Sugar Machinery(xvii) Turbines & Generator Set(xviii) Transformers(xix) Textile Machinery

MINES

Mineral and Metal Scenario

Minerals are valuable natural resources being finite and non-renewable. They constitute the vital raw materials for many basic industries and are a major resource for development. The wide availability of the minerals in the form of abundant rich reserves made it very conducive for the growth and development of the mining sector in India.

The country is endowed with huge resources of many metallic and non-metallic minerals. Mining sector is an important segment of the Indian economy. Since independence, there has been a pronounced growth in the mineral production both in terms of quantity and value. India produces as many as 87 minerals, which include 4 fuel, 10 metallic, 47 non-metallic, 3 atomic and 23 minor minerals (including building and other materials).

 

Contribution and Rank of India in World Production of Principal Minerals and Metals

Commodity Unit of Quantity Production Contribution (per cent) India's Rank in Order of Quantum of Production

  World* India*

Mineral Fuels          

Coal and Lignite million tonnes 6938 566 8.1 3rd

Petroleum (crude) million tonnes 3714 33.6 0.9 25th

Metallic Minerals          

Bauxite '000 tonnes 199000 14048 7.06 6th

Chromites '000 tonnes 18700 3372 18.0 2nd

Iron Ore million tonnes 2248 213 9.5 4th

Manganese Ore '000 tonnes 33400 2396 7.2 5th

Industrial Minerals          

Barytes '000 tonnes 7100 2137 30.1 2nd

Magnesite '000 tonnes 24300 285 1.2 11th

Rock phosphate '000 tonnes 159000 1450 0.9 14th

Talc/Steatite/Pyrophyllite '000 tones 7400 1063 14.3 2nd

Mica tonne 300000 1243 0.34 15th

Metals          

Aluminium '000 tonnes 36900 1302 3.5 7th

Copper (refined) '000 tonnes 18300 500 2.7 10th

Steel (crude) million tonnes 1224 63 5.1 3rd

Lead (refined) '000 tonnes 8900 197 2.2 10th

Zinc (slab) '000 tonnes 11400 658 5.7 3rd

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Source: World Mineral Production 2005-2009, British Geological Survey*- Figures related to 2009.

Mineral Production

The index of mineral production of mining and quarrying sector in the month of October 2011 was higher by 10.54 per cent compared to that of the preceding month. The mineral sector has shown a negative growth of 7.19 per cent during October 2011 as compared to that of the corresponding month of previous year.

The total value of mineral production (excluding atomic & minor minerals) in the country during October 2011 was US$ 2.73 billion . The contribution of petroleum (crude) was the highest at US$ 1.09  billion (40 per cent). Next in the order of importance were: coal US$ 0.70 billion , iron ore US$ 0.43 billion , natural gas (utilized) US$ 0.27 billion, lignite US$ 0.05 billion and limestone US$ 0.05 billion. These six minerals together contributed about 96 per cent of the total value of mineral production in October 2011.

Production level of important minerals in October 2011 were: coal 400 lakh tonnes, lignite 2.7 million tonnes, natural gas (utilized) 3932 million cu. m., petroleum (crude) 3.2 million tonnes, bauxite 958 thousand tonnes, chromite 256 thousand tonnes, copper conc. 10 thousand tonnes, gold 104 kg., iron ore 10.5 million tonnes, lead conc. 13 thousand tonnes, manganese ore 170 thousand tonnes, zinc conc. 111 thousand tonnes, apatite & phosphorite 178 thousand tonnes, dolomite 388 thousand tonnes, limestone 19.9 million tonnes, magnesite 14 thousand tonnes and diamond 1481 carat.

In the month of October 2011 the output of chromite increased by 47.18 per cent, magnetite 34.90 per cent, coal 33.88 per cent, limestone 5.90 per cent, manganese ore 5.20 per cent, petroleum (crude) 3.21 per cent, natural gas (utilized) 1.37 percent. The production of lignite remains at the level of previous month. However the production of iron ore decreased by 1.24 per cent, dolomite 2.17 per cent, copper conc. 2.48 per cent, lead conc. 2.61 per cent, zinc conc. 2.71 per cent, apatite & phosphorite 9.80 per cent, bauxite 11.06 per cent, diamond 28.14 per cent and gold 29.25 percent.

Government in the Mining Sector

Survey and exploration

Geological Survey of India (GSI)

Mineral Exploration Corporation Ltd (MECL)

Regulation and conservation

Indian Bureau of Mines (IBM)

Mining and processing

Hindustan Copper Limited

National Aluminium Company Ltd

OIL AND NATURAL GAS

An Overview

The Indian oil and gas sector is one of the six core industries in India and has very significant forward linkages with the entire economy. India has been growing at a decent rate annually and is committed to accelerate the growth momentum in the years to come. This would translate into India's energy needs growing many times in the years to come. Hence, there is an emphasized need for wider and more intensive exploration for new finds, more efficient and effective recovery, a more rational and optimally balanced global price regime - as against the rather wide upward fluctuations of recent times, and a spirit of equitable common benefit in global energy cooperation.

The Indian oil and gas sector is of strategic importance and plays a predominantly pivotal role in influencing decisions in all other spheres of the economy. The annual growth has been commendable and will accelerate in future consequently encouraging all round growth and development. This has necessitated the need for a wider intensified search for new fields, evolving better methods of extraction, refining and distribution, the constitution of a national price mechanism - keeping in mind the alarming price fluctuation in the recent past and evolving a spirit of equitable global cooperation.  

Oil and Gas Sector: An Overview

Exploration and Production (E&P)

The growing demand for crude oil and gas in the country and policy initiative of Government of India towards increased E&P activity, have given a great impetus to the Indian E&P industry raising hopes of increased exploration.

Oil and Natural Gas Corporation Limited (ONGC) and Oil India Ltd. (OIL), the two National Oil Companies (NOCs) and private and joint-venture companies are engaged in the exploration and production (E&P) of oil and natural gas in the country.

Crude Oil Production Performance

Qty. in MMT

Month / Period Planned Target Actual Production %age achievement Surplus(+) Shortfall(-) Vis-à-vis target (%age)

Surplus(+) Shortfall(-) over last year (%age)

November 2011* 3.1 3.1 98.4 -1.6 -5.7

April-November 2011* 25.4 25.5 100.5 0.5 2.9

April-November 2010   24.8      

*MMT: Million Metric Tonnes

Source:Ministry of Petroleum & Natural Gas

Natural Gas

Natural Gas has emerged as one of the most preferred fuel due to its environmentally benign nature, greater efficiency and cost effectiveness. At present, the main producers of natural gas are Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL) and the Joint Ventures of Panna Mukta & Tapti, and Ravva. Out of the total production of around 96 Million Metric Standard Cubic Meter Per Day (MMSCMD), after internal consumption, LPG extraction and unavoidable flaring, around 73 MMSCMD is available for sale to various consumers. In addition, around 7 MMTPA of re-gasified LNG (about 23 MMSCMD) is also being supplied to domestic consumers.

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Gas produced by ONGC and OIL from the existing nominated blocks is sold at administered prices fixed by the Government. As against a total allocation of 150 MMSCMD of gas, actual supply under APM is presently around 53 MMSCMD.

Natural Gas Production Performance

Qty. in MCM

Month / Period Planned Target Actual Production %age achievement Surplus(+) Shortfall(-) Vis-à-vis target (%age)

Surplus(+) Shortfall(-) over last year (%age)

November 2011* 4312.2 3847.4 89.2 -10.8 -10.1

April-November 2011* 34163.6 32278.8 94.5 -5.5 -8.5

April-November 2010    35293.0         

MCM:Million Cubic Metres

Source: Ministry of Petroleum & Natural Gas

New Exploration Licensing Policy (NELP)

New Exploration Licensing Policy (NELP) provides an international class fiscal and contract framework for Exploration and Production of Hydrocarbons. In the first seven rounds of NELP spanning 2000-2009, Production Sharing Contracts (PSCs) for 203 exploration blocks have been signed. Under NELP, 70 oil and gas discoveries have been made by private/joint venture (JV) companies in 20 blocks.

With a view to accelerate further the pace of exploration, the eighth round of NELP was launched in April 2009.In the eighth round of NELP,70 exploration blocks comprising of 24 deepwater blocks,28 shallow water blocks and 18 onland blocks will be offered.

Export

Disaggregated data on exports by Principal Commodities, in Rupee terms, available for the period 2008-09 (April-February) as compared with the corresponding period of the previous year. Exports during the period was mainly driven by Engineering Goods, Chemical & related products, Agriculture & allied products, Electronic goods, Plantation and Sports goods. The top five Principal Commodity Groups in India's total exports basket during 2008-09 (April-February) include Engineering Goods (23.9 per cent), Petroleum Products (16.3 per cent), Chemicals (14.1 per cent), Gems & Jewellery (11.2 per cent) and Textiles (11.1 percent).

Export of Principal Commodities (Rs. crore)

Commodities 2007-08 (April-Feb) 2008-09 (April-Feb) Percentage Change

Plantations 3,348 4,343 29.7

Agricultural and allied products 48,542 59,312 22.2

Marine products 6,396 6,552 2.0

Ores and Minerals 31,994 32,965 3.0

Leather and manufactures 12,908 15,011 16.3

Gems and Jewellery 71,868 78,260 8.9

Sports goods 481 596 23.9

Chemical and related products 78,795 98,389 24.9

Engineering goods 1,19,546 1,66,206 39.0

Electronic goods 12,521 18,462 47.5

Project goods 559 595 6.5

Textiles 66,610 77,211 15.9

Handicrafts 1,918 1,273 -33.7

Carpets 3,591 3,302 -8.1

Cotton raw including waste 6,597 2,507 -62.0

Petroleum products 97,803 1,13,270 15.8

Unclassified Exports 14,412 18,272 26.8

Total 5,77,889 6,96,498 20.5

Source: National Portal Content Management Team, Reviewed on: 11-01-2011  Sectors: travel & Tourism

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India holds virtually every kind of landscape imaginable. An abundance of mountain ranges and national parks provide ample opportunity for eco-tourism and trekking, and its sheer size

promises something for everyone. At any part of the year India can offer you a dazzling array of destinations and experiences. In summer, when the subcontinent is sizzling, there are spectacular retreats amidst the heady beauty of the Himalayas or the lush heights of the Western Ghats with cool trekking trails, tall peaks to conqueror stretches of white water for the adventure seekers.

In the cool of an Indian winter, cities come alive with cultural feasts of music and dance. The balmy weather is an ideal time for you to go century hopping in romantic cities studded with

medieval forts and palaces. The sun drenched beaches are inviting and wildlife sanctuaries with their abundance of flora and fauna are a buzz with the nurture of the young.

You can taste the delights of the Indian monsoon anywhere in the country on a camel safari in the Rajasthan desert when nature comes alive and the peacocks dance; along the west coast

where the relentless slanting rain paints the countryside in brilliant greens or even trekking amidst the stark grandeur of mountain valleys lying in the rain shadow of the Himalayas.

Experience exotic India live like a maharaja in the rich ambiance of royal forts and palaces that are now heritage hotels; luxuriate in the serene beauty of a coral island with its turquoise

lagoon; participate in the exuberance of a village fair or a colorful festival; day dream on a house boat drifting down the palm - fringed backwaters; delight in the grace of a dancer or shop till you drop - buying exquisite silks, carved figurines, brass and silver ware, marble inlaid with semi-precious stones, finely crafted jewelry, miniature paintings, carpets....at unbelievable prices

List of Various Sectors & Sub - Sectors

LIST OF VARIOUS MAJOR SECTORS

AUTOMOBILE SECTOR

1. Auto - 2 & 3 Wheelers

2. Auto - Cars & Jeeps

3. Auto - LCVs/HCVs

4. Auto - Tractors

5. Auto Ancillaries

METAL

1. Aluminium

2. Steel - CR/HR Strips

3. Steel - GP/GC Sheets

4. Steel - Large

5. Steel - Medium / Small

6. Steel - Pig Iron

7. Steel - Rolling

8. Steel - Sponge Iron

9. Steel - Tubes/Pipes

10. Metals - Non Ferrous

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FMCG

1. Cigarettes

2. Retail

3. Sugar

4. Consumer Goods - Electronic

5. Consumer Goods - White Goods

6. Printing & Stationery

7. Personal Care

8. Detergents

service

1. Hospitals & Medical Services

2. Hotels

3. Finance - General

4. Finance - Housing

5. Finance - Investments

6. Finance - Leasing & Hire Purchase

7. Finance - Term Lending Institutions

8. Transport

9. Telecommunications

10. Computers - Software+

11. Banks

12. Couriers

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POWER AND ENERGY SECTOR

1. Power - Generation/Distribution

2. Power - Transmission/Equipment

3. Electric Equipment

4. Electricals

5. Electrodes/Graphite

TEXTILE SECTOR

1. Textiles - Composite Mills

2. Textiles - Cotton Blended

3. Textiles - Denim

4. Textiles - General

5. Textiles - Hosiery/Knitwear

6. Textiles - Machinery

7. Textiles - Manmade

8. Textiles - Processing

9. Textiles - Readymade Apparels

10. Textiles - Spinning - Cotton Blended

11. Textiles - Spinning - Synthetic Blended

12. Textiles - Synthetic/Silk

13. Textiles - Terry Towels

14. Textiles - Weaving

Textiles - Woollen/Worsted

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REAL STATE SECTOR

1. Construction & Contracting - Civil

2. Construction & Contracting - Housing

3. Construction & Contracting - Real Estate

OTHERS MAJOR SECTORS

1. Abrasives

2. Aquaculture

3. Bearings

4. Breweries & Distilleries

5. Cables - Power/Others

6. Cables - Telephone

7. Castings & Forgings

8. Cement - Major

9. Cement - Mini

10. Cement - Products/Building Materials

11. Ceramics/Granite

12. Chemicals

13. Compressors

14. Computers - Software - Training

15. Computers - Software Medium/Small

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16. Diamond Cutting/Precious Metals/Jewellery

17. Diversified

18. Domestic Appliances

19. Dry Cells

20. Dyes & Pigments

21. Edible Oils & Solvent Extraction

22. Engineering - Heavy

23. Engines

24. Fasteners

25. Fertilisers

26. Food Processing

27. Glass & Glass Products

28. Leather Products

29. Lubricants

30. Machine Tools

31. Media & Entertainment

32. Mining/Minerals

33. Oil Drilling And Exploration

34. Pharmaceuticals SECTOR

35. Packaging

36. Paints/Varnishes

37. Paper

38. Pesticides/Agro Chemicals

39. Plantations - Tea & Coffee

40. Plastics

41. Pumps

42. Refineries

43. Rubber

44. Shipping

45. Trading

46. Vanaspati/Oils

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List of Various Sectors & Sub - Sectors

LIST OF VARIOUS MAJOR SECTORS

AUTOMOBILE SECTOR

1. Auto - 2 & 3 Wheelers2. Auto - Cars & Jeeps3. Auto - LCVs/HCVs4. Auto - Tractors5. Auto Ancillaries

METAL

1. Aluminium2. Steel - CR/HR Strips3. Steel - GP/GC Sheets4. Steel - Large5. Steel - Medium / Small6. Steel - Pig Iron7. Steel - Rolling8. Steel - Sponge Iron9. Steel - Tubes/Pipes10.Metals - Non Ferrous

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FMCG

1. Cigarettes2. Retail3. Sugar4. Consumer Goods - Electronic5. Consumer Goods - White Goods6. Printing & Stationery7. Personal Care8. Detergents

service1. Hospitals & Medical Services2. Hotels3. Finance - General4. Finance - Housing5. Finance - Investments6. Finance - Leasing & Hire Purchase7. Finance - Term Lending Institutions8. Transport9. Telecommunications10.Computers - Software+11.Banks 12.Couriers

POWER AND ENERGY SECTOR

1. Power - Generation/Distribution2. Power - Transmission/Equipment3. Electric Equipment4. Electricals5. Electrodes/Graphite

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TEXTILE SECTOR

1. Textiles - Composite Mills2. Textiles - Cotton Blended3. Textiles - Denim4. Textiles - General5. Textiles - Hosiery/Knitwear6. Textiles - Machinery7. Textiles - Manmade8. Textiles - Processing9. Textiles - Readymade Apparels10.Textiles - Spinning - Cotton Blended11.Textiles - Spinning - Synthetic Blended12.Textiles - Synthetic/Silk13.Textiles - Terry Towels14.Textiles - Weaving

Textiles - Woollen/Worsted

REAL STATE SECTOR

1. Construction & Contracting - Civil2. Construction & Contracting - Housing3. Construction & Contracting - Real Estate

OTHERS MAJOR SECTORS

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1. Abrasives2. Aquaculture3. Bearings4. Breweries & Distilleries5. Cables - Power/Others6. Cables - Telephone7. Castings & Forgings8. Cement - Major9. Cement - Mini10.Cement - Products/Building Materials11.Ceramics/Granite12.Chemicals13.Compressors14.Computers - Software - Training15.Computers - Software Medium/Small16.Diamond Cutting/Precious Metals/Jewellery17.Diversified18.Domestic Appliances19.Dry Cells20.Dyes & Pigments21.Edible Oils & Solvent Extraction22.Engineering - Heavy23.Engines24.Fasteners25.Fertilisers26.Food Processing27.Glass & Glass Products28.Leather Products29.Lubricants30.Machine Tools31.Media & Entertainment32.Mining/Minerals33.Oil Drilling And Exploration34. Pharmaceuticals SECTOR35.Packaging36.Paints/Varnishes37.Paper38.Pesticides/Agro Chemicals39.Plantations - Tea & Coffee40.Plastics

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41.Pumps42.Refineries43.Rubber44.Shipping 45.Trading46.Vanaspati/Oils

NDUSTRY & SERVICES  INFORMATION TECHNOLOGY AND INFORMATION TECHNOLOGY ENABLED SERVICES (ITES)

The Information Communication Technology and Electronics is the world's largest and fastest growing industry and is increasingly finding applications in all sectors of the economy. Today, India is a large, vibrant and one of the fastest growing economies in the world. As a result of impressive growth of the economy, steadily increasing purchasing power of the people and aspirations of the young, India is one of the fastest growing markets for electronic gadgets. The domestic demand for electronic hardware is estimated at US$ 400 billion by 2020.

High offshore component of delivery and superior execution in multi-location delivery continue to be key differentiators. Broad-based industry structure; IT led by large Indian firms, BPO by a mix of Indian and MNC third-party providers and captives, reflects the depth of the supply-base. While the larger players continue to lead growth, gradually increasing their share in the industry aggregate; several high-performing Small and Medium Enterprises (SMEs) also stand out.

With a large pool of skilled manpower-chartered accountants, doctors, MBAs, lawyers, research analysts-India would be able to add value to the global KPO business and its high-end processes like valuation research, investment research, patent filing, legal and insurance claims processing, online teaching, media content supply, among others. Skilled manpower and multi lingual capabilities combined with the advantages of lower costs can help the country to emerge as a frontrunner in KPO, globally. Increasing adoption of technology in the domestic industries is already beginning to reflect in their enhanced performance and competitiveness.

Indian IT-BPO Industry

According to the National Association of Software and Services Companies (NASSCOMM) data, IT-BPO sector in India aggregated revenues of US$ 88.1 billion in Fiscal Year (FY) 2011, generating direct employment for over 2.5 million people. The industry focused on emerging verticals, markets and customer segments, driving innovation-led transformation in client organisations and transforming its internal operations. The domestic IT-BPO market witnessed the Indian consumers going up the IT maturity curve, return of economic growth, efforts by organisations and the government to increase technology adoption, and

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emergence of new delivery platforms thus driving growth.

Key Highlights during FY2011

As per NASSCOMM,following were the key highlights of Information Technology industry for the Fiscal Year 2011:

The IT-BPO sector in India is estimated to aggregate revenues of US$ 88.1 billion in FY 2011, with the IT software and services sector (excluding hardware) accounting for US$ 76.1 billion of revenues.

During FY 2011 direct employment is expected to reach nearly 2.5 million, an addition of 240,000 employees, while indirect job creation is estimated at 8.3 millio n.

As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY 1998 to an estimated 6.4 per cent in FY 2011.

The share of IT-BPO industry in the total Indian exports (merchandise plus services) increased from less than 4 per cent in FY 1998 to 26 per cent in FY 2011.

Export revenues (including Hardware) estimated to reach US$ 59.4 billion in FY 2011; Domestic revenues (including Hardware) of about US$ 28.8 billion; total industry estimated to reach US$ 88.1 billion.

Software and services revenues (excluding Hardware), comprising over 86 per cent of the total industry revenues, expected to post US$ 76.1 billion in FY 2011; estimated growth of about 19.1 per cent over FY 2010

The upbeat domestic IT-BPO spending trend will continue in FY2012 as the industry is expected to grow at 16 per cent to reach US$ 20 billion.

IT spending expected to significantly increase in verticals like automotive and healthcare while the government, with its focus on e-governance, will continue to be a major spender.

Domestic IT-BPO Industry

NASSCOMM data has revealed that in the Domestic IT-BPO segment revenues excluding hardware are expected to grow at almost 16 per cent to reach US$ 15.75 billion in FY 2011. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organisations, enhanced focus by the Government and emergence of business models that help provide IT to new customer segments are the key drivers for increased technology adoption in India

Key Highlights during 2011

The domestic segment (including Hardware), that accounts for 33 per cent of the industry, grew by 16 per cent (including hardware) in FY 2011, to reach US$ 26.43 billion which in dollars is equivalent to US$ 28.8 billion a growth of 21 per cent

IT services is one of the fastest growing segment in the Indian domestic market, rising by 16.8 per cent to reach US$ 10.03 billion, driven by localised strategies designed by service providers

Hardware and IT Services account for 75 per cent of total revenues

Domestic BPO segment is expected to grow by 16.9 per cent in FY 2011, to reach US$ 2.54 billion, driven by demand from voice based services, in addition to adoption from emerging verticals, new customer segments, and value based transformational outsourcing platforms

Indian software product segment is estimated to grow by 14 per cent to reach US$ 3.14 billion, fuelled by replacement of in-house software applications to standardised products from large organisations and innovative start-ups

Government sector is a key catalyst for increased IT adoption- through sectors reforms that encourage IT acceptance, National eGovernance Programmes (NeGP), and the Unique Identification Development Authority of India (UIDAI) programme that creates large scale IT infrastructure and promotes corporate participation

Continued IT investments by mature verticals along with Greenfield initiatives by emerging verticals are fuelling the growth of IT adoption in India.

Indian service providers are using localised strategies to increase their market share in the domestic IT Services market .

Increased spending capabilities and improved technology acceptance driving growth.

 

INDUSTRY & SERVICES  

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INSURANCE

The insurance industry in India has changed rapidly in the challenging economic environment throughout the world. In the current scenario, Indian insurance companies have become competitive in nature and are providing appropriate distribution channels to get the maximum benefit and serve customers in manifold ways.

Indian Insurance industry has big opportunity to expand, given the large population and untapped potential.The insurance market in India has witnessed dynamic changes including entry of a number of global insurers. Most of the private insurance companies are joint ventures with recognized foreign institutions across the globe. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors.

The Insurance Regulatory and Development Authority (IRDA) regulate and develop the insurance sector in India through calibrated policy initiatives.

Overview of Insurance Sector in India

The Indian Insurance Industry has undergone several changes in trends and policies in the year 2010. The US$ 41 billion industry is considered the fifth largest life insurance market, and is growing at a rapid pace of 32-34% annually, according to the Life Insurance Council.

State-owned Life Insurance Corporation (LIC) of India has recorded about 37% growth in its new business premium to US$ 15.1 billion during April to January FY 2010, the data from IRDA stated. Overall, 23 life insurers in the country collectively mopped US$ 21.35 million as new first year premium during the period, a 26% increase from US$ 17 billion during April-January 2009-2010.

Out of this, the 22 private life insurers together accounted for US$ 6.26 billion worth of new business in April-January 2010-11, compared to US$ 5.91 billion in the year ago period, a growth of about 6%. Among the private life insurance players, SBI Life saw its premium collections from new business grew by 9% to US$ 1.1 billion during the period, while ICICI Life's premium collections from new businesses grew to US$ 1.15 billion April-January 2010-11, from US$ 964 million during the same period last year.

Health Insurance

The health insurance business in India has witnessed increased focus and attention from all stakeholders; not only from insurers and IRDA, but also from healthcare providers and other entities associated with the ecosystem. This increasing attention and awareness was due to rising healthcare costs. Recent detariffing of the general insurance business forced the insurance companies to focus on health insurance and other personal lines of business. Rationalization of premium rates in respect of individual mediclaim policies in 2007 which were unrevised for many years and upward revision of rates in all group health policies have also contributed to growth in premiums. Availability of products for senior citizens and children helped in popularizing health insurance.

The Indian Health insurance market has emerged as a new and lucrative growth avenue for both the existing firms and new entrants. Health Insurance premium collections were US$ 1750 million in 2009-10 as compared to US$ 893.76 million in 2008-09, IRDA said in its annual report 2009-10. It should, however, be noted that figures for 2009-10 include policies served by third party administrators (TPAs) as well as those directly served by insurers whereas figures of 2008-09 include policies by TPAs only.

Bancassurance

Bancassurance, is the simplest way of distribution of insurance products through a bank distribution channel by selling insurance products and services by leveraging the vast customer base of a bank and fulfil the insurance needs. It takes the various forms depending upon the demography, economic and legislative climate of the country. For insurance company it acts as a tool for increasing their market penetration and premium turnover and for customer it acts as a bonanza in terms of reduced price, high quality products and delivery to doorsteps.

According to Towers Watson India , Bancassurance Benchmarking Survey 2009-10, released in May 2010, bancassurance will play a crucial role in the overall development of the Indian insurance sector with the channel expected to generate 40% of private insurers' premium income by 2012, compared to 25-28%. In general insurance, presently 17% of premium income comes from bancassurance.

Opportunities in Insurance sector in India

Insurance sector in India holds vast untapped potentials in-

Life insurance products

Life covers

Household insurance policies

Overseas mediclaim 

Travel insurance policies 

Huge pull of skilled professionals to venture of new product through R&D

Large branch net work facility by Life Insurance Corporation of India (LIC) & General insurance Corporation of India (GIC)

Foreign Direct Policy in Insurance Sector

FDI up to 26% in the Insurance sector is allowed under the automatic route. This will be subject to the condition that Companies bringing in FDI shall obtain necessary license from the Insurance Regulatory & Development Authority (IRDA) for undertaking insurance activities

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INDUSTRY & SERVICES  MEDIA AND ENTERTAINMENT

The Indian Media & Entertainment Industry grew by US$ 12.9 billion in 2009 to US$ 14.4 billion in 2010, a growth of 11 per cent, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The report also states that backed by positive industry sentiment and growing media consumption, the industry is estimated to achieve growth of 13 per cent in 2011 to touch US$ 16.2 billion. As the industry braces for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach US$ 28.1 billion by 2015.

Key Trends and Drivers for Growth

Focus on Profitable Growth: Indian M&E companies implemented cost reduction strategies to weather the economic slowdown of 2008-09. In order to sustain profitable growth, several cost control initiatives implemented during the slowdown have continued to prevail despite the industry resuming its double digit growth rate. Incorporation of technology across key business performance areas such as planning, budgeting, CRM, strategic outsourcing, etc. could enable more consistent and profitable growth given the technological advancement in these areas.

Increasing Media Penetration and Per Capita Consumption: Low media penetration particularly across SEC B, C and D segments offers significant headroom for growth. With increase in per capita consumption, discretionary spends are expected to grow and entertainment and leisure platforms are likely to beneficiaries of this trend. Moreover, as metros and tier 1 markets get saturated, media companies are looking to penetrate the tier 2 - tier 3 towns and rural markets. For e.g. multiplexes have expanded across tier 2 towns, while DTH players have helped achieve greater C&S penetration across rural India.

Power of Digitisation: Digitisation continues to be a key growth driver for the Indian M&E Industry and this trend was even more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical units' sales.

Consumer Understanding: With increasing fragmentation and increase in competition, a deeper understanding of cultural and social references through focused study groups would enable players to target their consumers specifically and build loyalty.

Other factors: Regional media channels gaining popularity, different tastes of the audience and thereby different content, growth of the importance of the media are also few factors due to which the Media and Entertainment Sector is growing.

Broadcasting Scenario in India

The CAGR for television industry is estimated to be 16 per cent and the CAGR for the radio industry is estimated to be 20 per cent from 2010 to 2015.

India has 138 million TV house hold and is behind only China and USA in the world TV market. India had 600 million TV viewers in 2010, adding almost 140 million viewers from 460 million in 2009.

Film Industry

The Indian Film Industry stood US$ 1.9 billion in overall industry revenues in 2010, indicating a decline of 6.7 per cent with respect to 2009. The industry is expected to grow at a CAGR of 9.6 per cent and reach US$ 2.6 billion in 2014. The key growth drivers for the sector would include expansion of multiplex screens resulting in better realisations, an increase in the number of digital screens facilitating wider releases, higher cable and satellite revenues, improving collections from the overseas markets and ancillary revenue streams like DTH, digital downloads, etc, which are expected to emerge in future.

Television Sector in India

Television Industry in India has gained new momentum due to liberalization and enhanced enthusiasm shown by the broadcasters to seize a huge share of the entertainment and media industry. In 2010, the television industry stood at a staggering US$ 6.5 billion, a rise of 15.6 per cent over 2009 estimate of US$ 5.7 billion. The industry is projected to grow at a CAGR of 16 per cent to US$ 13.9 billion by 2015.

Growth of TV channels: The total number of TV channels (both private and government owned) grew from 461 in 2009 to 626 in January 2011. The number of News and Current Affairs channels was 312 and that of Non-News and Current Affairs channels was 314 up till January 2011.

Foreign Broadcasters: A total of 75 channels have been down-linked till January 2011 by a number of foreign broadcasters.

Direct To Home (DTH) Service: DD DIRECT+ is India's first and only FTA Direct-To-Home (DTH) service being provided by Prasar Bharati (a public service broadcaster). Apart from Prasar Bharati, Dish TV India Ltd., Tata Sky Ltd, and Sun Direct TV Pvt. Ltd., Reliance Big TV Pvt. Ltd., Bharti Telemedia Ltd and Bharat Business Channel Ltd have also been granted license for operating DTH services. 

The eligibility conditions provide for total foreign equity holding, including FDI/ NRI/ OCB/ FII, in the applicant company not to exceed 49 per cent, and within the foreign equity, the FDI component not to exceed 20 per cent. It also provides that Applicant Company must have Indian management control with the majority representatives on the board as well as the chief executive of the company being a resident Indian.

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HD Growth Wave: Another trend witnessed in 2010 was the entry of HD channels. Apart from 'Food First', India's first HD food channel, 'Movies Now' was also launched in HD. Doordarshan broadcasted the Commonwealth Games (CWG) in HD format. Sports, Movies and Events are expected to be the key demand drivers for HD content. India currently has channels like NGC HD, Discovery World HD, Star Plus HD, Zee TV HD, and two Tamil HD channels and others are expected. DTH operators like SUN Direct, Tata Sky, Dish TV and Reliance BIG TV are heavily promoting their HD services in India .

Radio Sector

In 2010, the total size of the Radio Sector was estimated to be about US$ 0.22 billion. It is expected to grow at a CAGR of about 20 per cent to US$ 0.44 billion.  

FM radio: In 2010, total 245 Channels are operational including the 25 channels operationalised in the phase I.  

Satellite Radio: At present Worldspace India Private Ltd, a wholly owned subsidiary of Worldspace Asia Pvt. Ltd. Singapore is providing services under Foreign Investment Promotion Board (FIPB) approval. 

Community Radio: The policy on community radio was liberalized during the year 2008 to bring in the civil society and voluntary organizations working on not -for-profit basis under its ambit. Earlier only educational institutions were permitted to set up a community radio. Presently, 29 community radio stations are operational.

 

INDUSTRY & SERVICES  

RETAILING

Overview

The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. India's strong growth fundamentals,high saving and investment rates,fast growth in labour force and,increased consumer spending has made it a very favourable retail destination globally .Indian consumers continue to urbanise,started spending more on non-food purchases and have more exposure to brands,this has resulted in powerful,more discerning consumer class.ndia's nearly 1.2 billion population is also an attractive target for the global brands.

India's retail sector is on its way of modernisation.Traditional markets are making way for new formats such as departmental stores,supermarkets and speciality stores.Westernised malls can be seen fast appearing in metros and tier-II cities,introducing the Indian consumer to an implausible shopping experience.

AT Kearney, the well-known international management consultancy firm, annually ranks emerging market economies based on more than 25 macroeconomic and retail-specific variables through their Global Retail Development Index (GRDI). In its 2011 edition ,it has ranked India fourth indicating that the country is one of the most attractive market for global retailers to enter. It has made India the cause of a good deal of excitement and the cynosure of many foreign eyes.

Organised Vs. Unorganised Sectors

The Indian retail industry is divided into organised and unorganised sectors.The Indian retail sector is highly fragmented, with a major share of its business is being run by unorganised retailers like the traditional family run stores and corner stores.The organised retail however is at a very nascent stage, though attemps are being made to increase its proportion bringing in a huge opportunity for prospective new players.

Unorganised Retail Sector

Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called "unorganized retail" or traditional retail. The last few years have witnessed the entry of a number of organized retailers opening stores in various modern formats in metros and other important cities.

Unorganized retailers normally do not pay taxes and most of them are not even registered for sales tax, VAT, or income tax.

Organised Retail Sector

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Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.

According to AT Kearney report for the year 2011,Organised retail accounts for 7 per cent of India's roughly US$ 435 billion retail market and is expected to reach 20 per cent by 2020.Food accounts for 70 per cent of Indian retail,but it remains under-penetrated by organised retail.Organised retail has a 31 per cent share in clothing and apparel and continues to see growth in this sector.The home segment shows promise ,growing 20 to 30 per cent per year.India's more urban consumer mindset means this sector is poised for growth.

INDUSTRY & SERVICES  STEEL

Steel is vital to the development of any modern economy and is considered to be the backbone of the human civilization. The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and living standard of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flow and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development .

Global Ranking of Indian Steel

Global crude steel production reached 1414 million tonne in the calendar year 2010, a growth of 15 per cent over 2009. China was the largest crude steel producer in the world; with production reaching 626.56 million tone, a growth of 9.2 per cent over 2009. India is the 5 th largest producer of crude steel in the world With 66.80 million tonnes of crude steel production during April-Dec 2010, recording a growth of 11.3 per cent over 2009. India continues to maintain its lead production as the world's largest producer of direct reduced iron (DRI) or sponge iron during January-December 2010, a rank it has held since 2002. If proposed expansion plans are implemented as per schedule, India may become the second largest crude steel producer in the world by 2015-16.

Trends and Developments in Steel Sector

India became the 4th largest producer of crude steel in the world in 2010 as against the 8th position in 2003 and is expected to become the 2nd largest producer of crude steel in the world by 2015. 

India also maintained its lead position as the world’s largest producer of direct reduced iron (DRI) or sponge iron. 

Ministry’s National Steel Policy (NSP) 2005 projection of 110 million tonnes of finished steel production per annum by 2019-20 is likely to be exceeded by 2012. The country is likely to achieve a crude steel production capacity of 112 million tonnes by the year 2011-12.

Going by estimate of Rs.4,000 crore investment per million tonne of additional capacity, intended steel capacity build up in the country is likely to result in an investment of US$ 173.75  billion by 2020.

222 MoUs have been signed with various states for planned capacity of around 276 million tonnes by 2019-20.

Major investment plans are in the states of Orissa, Jharkhand, Karnataka, Chhattisgarh and West Bengal.

The steel sector contributes to nearly 2 per cent of the GDP and employs over 5 lakh people.

The per capita steel consumption during the last six years has risen from 38 kg in 2005-06 to 55 kg in 2010-11.

Projections for the Steel Sector

In the next five years, demand of steel is likely to grow at a higher annual average growth of over 11-12 per cent as compared to the average annual growth of 8 per cent achieved between 1991-92 and 2010-11.

Capacity for crude steel production expanded from 51.17 million tonnes per annum (mtpa) in 2005-06 to 78 mtpa in 2010-11. 

Crude steel production grew at 8 per cent annually (CAGR) from 46.46 million tonnes in 2005-06 to 69.57 million tonnes in 2010-11.

Production for sale of finished steel stood at 66.01 million tonnes during 2010-11 as against 46.57 million tonnes in 2005-06, an average annual (CAGR) growth of 7 per cent.

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Consumption of finished steel has grown at a CAGR of 9.6 per cent during the last six years.

Export of finished steel during 2010-11 stood at 3.36 million tonnes while imports during 2010-11 stood at 6.54 million tonnes.

Production, Consumption and Growth of Steel

Total Finished Steel

The table below shows the trend in production for sale, import, export and consumption of total finished steel (alloy + non-alloy) in the country:

Year Total finished steel (alloy + non-alloy)

  (in '000 tonne)

  Production for sale Import Export Consumption

2005-06 46566 4305 4801 41433

2006-07 52529 4927 5242 46783

2007-08 56075 7029 5077 52125

2008-09 57164 5841 4437 52351

2009-10 60892 7296 3235 57675

Apr-Dec 2010-11 47296 5359 2462 44275

Source: Joint Plant Committee (JPC)

Crude Steel

Crude steel production has shown a sustained rise since 2005-06 along with capacity. Data on crude steel production, capacity and capacity utilization are given in the table below:

Crude Steel

Year Capacity (unit in '000 tonne)

Production (Unit in '000 tonne)

Capacity utilisation (per centage)

2005-06 51171 46460 91

2006-07 56843 50817 89

2007-08 59845 53857 91

2008-09 66343 58437 88

2009-10 72963 64875 89

Apr-Dec 2010-11 56597* 50594 89

Source: Joint Plant Committee (JPC); *2.5 million tonne capacity added during April-December 2010.

The growth was driven by capacity expansion from 47.99 million tonne per annum (MTPA)in 2004-05 to 75.463 MTPA in 2010-11 (up to December

2010).

Crude steel production grew at a CAGR of 8.4 per cent during five years, 2005-06 to 2009-2010.

The above crude steel performance has been contributed largely by the strong trends in growth of the electric route of steel making, particularly

the induction furnace route, which accounted for 31 per cent of the total crude steel production in the country during 2009-10.

The process route-wise production of crude steel in the country during 2005-06, 2009-10 and April-December 2010-11 (provisional) are shown in the table below and indicates the emergence of the electric route of production compared to the oxygen route:

Crude steel production by process route Percentage share

  2009-10 2010-11(April-December)

Basic Oxygen Furnace (BOF) 45 47

Electric Arc Furnace (EAF) 24 26

Induction Furnace (IF) 31 27

Total 100 100

Source: Joint Plant Committee (JPC)

Sponge Iron

India is a leading producer of sponge iron with a host of coal based units, located in the mineral-rich states of the country. Over the years, the coal based route has emerged as a key contributor to overall production; its share has increased from 69 per cent in 2005-06 into 70 per cent in 209-10. Capacity in sponge iron making has increased to 32 million tonne.

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The table below shows the production of sponge iron in the country in the last five years and 2010-11 (April-December 2010) indicating the break-up of the share of coal and gas based route of production:

Production of sponge iron

(in million tonne)

Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(April-December)

Coal based 10.28 13.08 14.53 15.57 14.58 15.52

Gas based 4.54 5.26 5.84 5.52 6.16 4.48

Total 14.82 18.34 20.37 21.09 20.74 20.00

Source: Joint Plant Committee (JPC)

Pig Iron

India is an important producer of pig iron. Post-liberalization, with setting up of several units in the private sector, not only imports have drastically reduced but also India has turned out to be a net exporter of pig iron. The private sector accounts for nearly 90 per cent of total production for sale of pig iron in the country.

The domestic availability situation of pig iron is given the table below:

Pig Iron Domestic Availability Scenario

(in '000 tonne)

Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (April-December 2010)

Production for Sale 4695 4953 5284 6207 5734 4217

Import 3 3 11 8 11 7

Export 440 707 560 350 278 209

Consumption 4136 4336 4621 5870 5465 3937

Source: Joint Plant Committee (JPC)

Trends in production,Private/Public sector

Traditionally, Indian steel industry has been classified into Main Producers (SAIL plants, Tata Steel and Vizag Steel/RINL), Major Producers (plants with crude steel making capacity above 0.5 million tonne-Essar Steel, JSW Steel,Jindal Steel & Power and Ispat Industries) and Other Producers. The latter comprises of numerous steel making plants producing crude steel/finished steel (long product/flat product)/ pig iron/ sponge iron and are spread across the different states of the country.

The following table highlights the total as also the contribution of the private and public sector in crude steel production in the country:

Indian Crude Steel production

(in million tonne)

  2005-06 2006-07 2007-08 2008-09 2009-10* 2010-11 (April-

December)

Public Sector 16.964 17.003 17.091 16.372 16.714 12.579

Private Sector 29.496 33.814 36.766 42.065 48.161 38.015

Total Production 46.460 50.817 53.857 58.437 64.875 50.594

per cent share of Public Sector

36.5 33.5 32 28 26 25

Source: Joint Plant Committee (JPC)

 

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MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 [Act No. 54 of Year 1969] An Act to provide that operation of the economic system does not result in the concentration of economic power to the common detriment, for the control of monopolies, for the prohibition of monopolistic and restrictive trade practices and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Twentieth Year of the Republic of India as follows: - CHAPTER I: PRELIMINARY 1. Short title, extent and commencement (1) This Act may be called the Monopolies and Restrictive Trade Practices Act, 1969. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force on such date1 as the Central Government may, 2[by notification], appoint. 2. Definitions In this Act, unless the context otherwise requires- (a) "agreement" includes any arrangement or understanding, whether or not it is intended that such agreement shall be enforceable (apart from any provision of this Act) by legal proceedings; (b) "Commission" means the Monopolies and Restrictive Trade Practices Commission established under section 5; (c) 3["Director General" means the Director General of Investigation and Registration appointed under section 8, and includes any Additional, joint, Deputy or Assistant Director General of Investigation and Registration appointed under that section;] 4[(d) "dominant undertaking" means- 5[***] (iii) an undertaking which, by itself or along with inter-connected undertakings produces, supplies, distributes or otherwise controls not less than one-fourth of the total goods that are produced, supplied or distributed in India or any substantial part thereof; or

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(iv) an undertaking which provides or otherwise controls not less than one-fourth of any services that are rendered in India or any substantial part thereof.] [Proviso and Explanation I omitted by Act No. 58 of 1991] Explanation II : Where any goods 6[* * *] are the subject of different forms of production, supply, distribution or control, every reference in this Act to such goods shall be construed as reference to any of those forms of production, supply, distribution or control, whether taken separately or together or in such groups as may be prescribed. 4[Explanation III: The question as to whether any undertaking either by itself or along with inter-connected undertakings, produces, supplies, distributes or controls one-fourth of any goods or provides or controls one-fourth of any services may be determined according to any of the following criteria, namely, value, cost, price, quantity or capacity of the goods or services.] 2[Explanation IV : In determining, with reference to the features specified 7[in sub-clause (iii) or sub-clause (iv)] as the case may be, the question as to whether an undertaking is or is not a dominant undertaking, regard shall be had to- (i) the average annual production of the goods, or the average annual value of the services provided, by the undertaking during the relevant period; and (ii) the figures published by such authority as the Central Government may, by notification, specify, with regard to the total production of such goods made, or the total value of such services provided, in India or any substantial part thereof during the relevant period.] 2[Explanation V: In determining the question as to whether an undertaking is or is not a dominant undertaking in relation to any goods supplied, distributed or controlled in India, regard shall be had to the average annual quantity of such goods supplied, distributed or controlled in India by the undertaking during the relevant period. Explanation VI: For the purposes of this clause, "relevant period" means the period of three calendar years immediately preceding that calendar year which immediately precedes the calendar year in which the question arises as to whether an undertaking is or is not a dominant undertaking.] 8[Explanation VII: Where goods 6[***] produced in India by an undertaking have been exported to a country outside India, then the goods so exported shall not be taken into account in computing for the purposes of this clause- (i) the total goods 9[* * *] that are produced in India by that undertaking; or (ii) the total goods 9[* * *] that are produced, supplied or distributed in India or any substantial part thereof;] 10[(da) "financial institution" means- (i) a public financial institution specified in or under section 4A of the Companies Act, 1956 (1 of 1956); (ii) a State Financial, Industrial or Investment Corporation;

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(iii) the State Bank of India or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (iv) a nationalised bank, that is to say, a corresponding new bank as defined in clause (d) of section 2 of- (i) the Banking Companies (Acquisition and Transfer of Undertakings Act, 1970 (5 of 1970); or (ii) the Banking Companies (Acquisition and Transfer of Undertakings Act, 1980; (v) the General Insurance Corporation of India established in pursuance of the provisions of section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972); (vi) the Industrial Reconstruction Corporation of India; or (vii) any other institution which the Central Government may, by notification, specify in this behalf; 2[(e) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930), and includes,- (i) products manufactured, processed or mined in India; 11[(ii) shares and stocks including issue of shares before allotment;] (iii) in relation to goods supplied, distributed or controlled in India, goods imported into India;] [Clause (ee) omitted by Act No. 58 of 1991, w.e.f. 27th. September, 1991.] 10[(ef) "group" means a group of- (i) two or more individuals, associations of individuals, firms, trusts, trustees or bodies corporate (excluding financial institutions), or any combination thereof, which exercises, or is established to be in a position to exercise, control, directly or indirectly, over any body corporate, firm or trust; or (ii) associated persons. Explanation : For the purposes of this clause- (I) a group of persons who are able, directly or indirectly, to control the policy of a body corporate, firm or trust, without having a controlling interest in that body corporate, firm or trust, shall also be deemed to be in a position to exercise control over it; (II) "associated persons"- (a) in relation to a director of a body corporate, means- (i) a relative of such director, and includes a firm in which such director or his relative is a partner; (ii) any trust of which any such director or his relative is a trustee;

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(iii) any company of which such director, whether independently or together with his relatives, constitutes one-fourth of its board of directors; (iv) any other body corporate, at any general meeting of which not less than one-fourth of the total number of directors of such other body corporate are appointed or controlled by the director of the first mentioned body corporate or his relative, whether acting singly or jointly; (b) in relation to the partner of a firm, means a relative of such partner and includes any other partner of such firm; and (c) in relation to the trustee of a trust, means any other trustee of such trust; (III) where any person is an associated person in relation to another, the latter shall also be deemed to be an associated person in relation to the former;] (f) "India" means, for the purposes of this Act, the territories to which this Act extends; [Clauses (ff) and (fff) omitted by Act No. 58 of 1991, w.e.f. 27th. September, 1991] (g) "inter-connected undertakings" means two or more undertakings which are inter-connected with each other in any of the following manner, namely,- (i) if one owns or controls the other; (ii) where the undertakings are owned by firms, if such firms have one or more common partners, 2[(iii) where the undertakings are owned by bodies corporate- (a) if one body corporate manages the other body corporate, or (b) if one body corporate is subsidiary of the other body corporate, or (c) if the bodies corporate are under the same management, or (d) if one body corporate exercises control over the other body corporate in any other manner;] (iv) where one undertaking is owned by a body corporate and the other is owned by a firm, if one or more partners of the firm- (a) hold, directly or indirectly, not less than fifty per cent of the shares, whether preference or equity, of the body corporate, or (b) exercise control, directly or indirectly, whether as director or otherwise, over the body corporate, (v) if one is owned by a body corporate and other is owned by a firm having bodies corporate as its partners, if such bodies corporate are under the same management, 12[* * *] (vi) if the undertakings are owned or controlled by the same person or 13[by the same group], (vii) if one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the meaning of one or more of the foregoing sub-clauses. 14[Explanation I : For the purposes of this Act, 15[two bodies corporate,] shall be deemed to be under the same management- (i) if one such body corporate exercises control over the other or both are under the control of the same group or any of the constituents of the same group; or (ii) if the managing director or manager of one such body corporate is the managing director or manager of the other; or (iii) if one such body corporate holds not less than 16[one fourth] of the equity shares in

Framework of corporate sectors

FDI policy and regulations applicable in various sectors

Summary of the policy on FDI (Foreign Direct Investment) was notified vide Press Note 4 (2006).

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Thereafter, further policy revisions were issued vide Press Note 5(2006) and Press Note 2 (2007) and 3(2007). A comprehensive review of the FDI policy was undertaken in 2007-08 and the policy measures were notified vide Press Note 1-6 (2008).

FDI policy and regulations applicable in various sectors and activities after incorporating the policy changes up to 31-3-2008 is as below:  

POLICY ON FOREIGN DIRECT INVESTMENT (as on 31st March 2008)

I. Sectors prohibited for FDI

i.                     Retail Trading (except single brand product retailing)

ii.                   Atomic Energy

iii.                  Lottery Business

iv.                  Gambling and Betting

v.                    Business of chit fund

vi.                  Nidhi Company

vii.                 Trading in Transferable Development Rights (TDRs).

viii.               Activity/sector not opened to private sector investment

II.                  Sector-specific policy for FDI:

In the following sectors/activities, FDI is allowed up-to the limit indicated below subject to other conditions as indicated.

 

Sr.

No.

Sector/Activity FDI Cap /

Equity

Entry

Route

Other conditions

I AGRICULTURE

1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aqua-culture and

100% Automatic  

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Cultivation of Vegetables & Mushrooms under controlled conditions and services related to agro and allied sectors.

 

Note : Besides the above, FDI is not allowed in any other agricultural sector/activity

2. Tea Sector,

including tea

plantation

Note: Besides the above, FDI is not allowed in any other plantation sector/activity

100% FIPB Subject to divestment of 26% equity in favour of Indian partner/Indian public within 5 years and prior approval of State Government concerned in case of any change in future land use.

II INDUSTRY

II A MINING

3. Mining covering

exploration and

mining of diamonds

& precious stones;

gold, silver and

minerals.

100% Automatic Subject to Mines & Minerals (Development & Regulation) Act, 1957 ww w .mines.nic.in

Press Note 18 (1998) and Press Note 1 (2005) are not applicable for setting up 100% owned subsidiaries in so far as the mining sector is concerned, subject to a declaration from the

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applicant that he has no existing joint venture for the same area and /or the particular mineral.

4. Coal & Lignite

mining for captive

consumption by

power projects,

and iron & steel, cement production and other eligible activities permitted under the Coal Mines

(Nationalisation) Act, 1973.

100% Automatic Subject to provisions of Coal Mines

(Nationalization) Act, 1973

www.coal.nic.in

5. Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities .

Note : FDI will not be allowed in mining of “prescribed substances” listed in Government of India notification No. S.O. 61(E) dt. 18.1.2006

100% FIPB Subject to sectoral regulations and the Mines and Minerals (Development & Regulation) Act, 1957 and the following conditions-

i. value addition facilities are set up within India along with transfer of technology;

ii. disposal of tailing during the mineral separation shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such Atomic Energy (Radiation Protection) Rules 2004 and the

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issued by the Department of Atomic Energy under the Atomic Energy Act, 1962.

Atomic Energy (Safe Disposal of Radioactive Wastes) Rules 1987.

II B MANUFACTURING

6. Alcohol-

Distillation &

Brewing

 

100%

 

Automatic

Subject to license by appropriate authority

7. Cigars &

Cigarettes-

Manufacture

 

100%

 

FIPB

Subject to industrial license under the Industries (Development & Regulation) Act, 1951

8. Coffee& Rubber

processing &

warehousing

 

100%

Automatic  

9. Defence

production

 

26%

FIPB Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition.

10. Hazardous

chemicals, viz.,

hydrocyanic acid

and its derivatives;

phosgene and its

derivatives; and

isocyanates and diisocyantes of hydrocarbon.

100% Automatic Subject to industrial license under the Industries (Development & Regulation) Act, 1951 and other sectoral regulations.

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11. Industrial

explosives -

Manufacture

100% Automatic Subject to industrial license under Industries (Development & Regulation) Act, 1951 and regulations under Explosives Act, 1898

12. Drugs & Pharmaceuticals including those involving use of recombinant DNA technology

100% Automatic  

II C POWER

13. Power including

generation

(except Atomic

energy);

transmission, distribution and

Power Trading.

 

100% Automatic Subject to provisions of the Electricity Act, 2003 ww w. powermin.nic.in

III SERVICES

14. CIVIL AVIATION SECTOR

(i) Airports-

a. Greenfield projects

100% Automatic Subject to sectoral regulations notified by Ministry of Civil Aviation ww w civilaviation.nic . in

 

b. Existing projects 100% FIPB

beyond

Subject to sectoral regulations notified by Ministry of Civil Aviation

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74% ww w .civilaviation.nic . in

 

(ii) Air Transport Services including Domestic Scheduled Passenger Airlines; Non-Schedules Airlines; Chartered Airlines; Cargo Airlines; Helicopter and Seaplane Services

c.

Scheduled Air Transport

Services/ Domestic Scheduled Passenger Airline

49%- FDI;

100%- for

NRI

investment

Automatic Subject to no direct or indirect participation by foreign airlines and sectoral regulations..

d.

Non-Scheduled Air Transport Service/ Non-Scheduled airlines, Chartered airlines, and Cargo airlines

74%- FDI

100%- for NRIs investment

Automatic Subject to no direct or indirect participation by foreign airlines in Non-Scheduled and Chartered airlines. Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines. Also subject to sectoral regulations.

e.

Helicopter Services/Seaplane services requiring DGCA approval

100% Automatic Foreign airlines are allowed to participate in the equity of companies operating Helicopter and seaplane airlines. Also subject to sectoral regulations.

(iii) Other services under Civil Aviation Sector

f.

Ground Handling Services

74%- FDI

100%- for NRIs investment

Automatic

Subject to sectoral regulations and security clearance.

g.

Maintenance and Repair organizations

100% Automatic

 

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; flying training institutes; and technical training institutions

 

15. Asset

Reconstruction

Companies

 

49%

(only

FDI)

 

FIPB

Where any individual investment exceeds 10% of the equity, provisions of Section 3(3)(f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be complied with. ww w .finmin.nic.in

16. Banking -

Private sector

74%

(FDI+FII)

Automatic Subject to guidelines for setting up branches / subsidiaries of foreign banks issued by RBI. ww w .rbi.o r g.in

17. Broadcasting

a. FM Radio FDI +FII

investment

up to 20%

FIPB Subject to Guidelines notified by Ministry of Information & Broadcasting. ww w .mib.nic.in

b. Cable network 49%

(FDI+FII)

FIPB Subject to Cable Television Network Rules (1994) Notified by Ministry of Information & Broadcasting. ww w .mib.nic.in

c. Direct-To-Home 49%

(FDI+FII).

Within this

limit, FDI

component not to exceed

20%

FIPB Subject to guidelines issued by Ministry of Information & Broadcasting. ww w .mib.nic.in

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d. Setting up

hardware facilities

such as up-linking,

HUB, etc

49%

(FDI+FII)

FIPB Subject to Up-linking Policy notified by Ministry of Information & Broadcasting. ww w .mib.nic.in

e. Up-linking a News

& Current Affairs

TV Channel

26%

FDI+FII

FIPB Subject to guidelines issued by Ministry of Information & Broadcasting. ww w .mib.nic.in

f. Up-linking a Non-

news & Current

Affairs TV

Channel

100% FIPB Subject to guidelines issued by Ministry of Information & Broadcasting. ww w .mib.nic.in

18. Commodity Exchanges

49% (FDI+FII)

Investment by Registered FII under PIS will be limited to 23% and

Investment under FDI Scheme limited to 26%.

FIPB FII purchases shall be restricted to secondary market only.

No foreign investor/entity, including persons acting in concert, will hold more than 5% of the equity in these companies.

19. Construction

Development

projects, including

housing,

100% Automatic Subject to conditions notified vide Press Note 2

(2005 Series) including:

a. minimum capitalization of US$ 10 million for

wholly owned subsidiaries

Page 60: Saurabh Varma

commercial

premises, resorts,

educational

institutions,

recreational

facilities, city

and regional

level infrastructure,

townships.

 

Note:: FDI is not allowed in Real Estate Business

and US$ 5 million for joint venture. The funds would have to be brought within six months of commencement of business of the Company.

b. Minimum area to be developed under each project- 10 hectares in case of development of serviced housing plots; and built-up area of 50,000 sq. mts. in case of construction development project; and any of the above in case of a combination project.

[Not e 1 : For investment by NRIs, the conditions mentioned in Press Note 2 / 2005 are not applicable.

Note 2: For investment in SEZs, Hotels & Hospitals, conditions mentioned in Press Note 2(2005) are not applicable]

20. Courier services

for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898.

100% FIPB Subject to existing laws and exclusion of activity relating to distribution of letters, which is exclusively reserved for the State. ww w .indiapost.go v .in

21. Credit Information Companies

49 % (FDI+FII)

Investment by

FIPB

 

Foreign Investment in CIC will be subject to Credit Information Companies (Regulation) Act, 2005.

Page 61: Saurabh Varma

  Registered FII under PIS will be limited to 24% only in the CICs listed at the Stock Exchanges within the overall limit of 49% foreign investment.

 

 

FII investment will be subject to the conditions that:

(a) No single entity should directly or indirectly hold more than 10% equity

(b) Any acquisition in excess of 1% will have to be reported to RBI as a reporting requirement; and

(c) FIIs investing in CICs shall not seek a representation on the Board of Directors based upon their shareholding.

22. Industrial Parks both setting up and in established Industrial Parks

100% Automatic Conditions in Press Note 2(2005) applicable for construction development projects would not apply provided the Industrial Parks meet with the under-mentioned conditions-

i. it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area;

ii. the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area.

23 Insurance 26% Automatic Subject to licensing by the Insurance Regulatory & Development Authority

www.irda.nic.in

24. Investing

companies in

infrastructure /

100% FIPB Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing

Page 62: Saurabh Varma

services sector

(except telecom

sector)

company will not be set off against this cap provided the foreign direct investment in such investing company does not exceed 49% and the management of the investing company is with the Indian owners.

25. Non Banking Finance Companies

i)

 

 

ii)

 

 

 

 

iii)

 

 

 

iv)

 

 

v)

 

vi)

 

 

Merchant

Banking

 

Underwriting

Portfolio

Management

Services

 

Investment

Advisory

Services

 

Financial

Consultancy

 

Stock Broking

 

Asset

Management

 

Venture

100% Automatic Subject to:

a. minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%; US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%.

b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million.

c. foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in US$ 50 million without any restriction on number of operating subsidiaries without bringing additional capital.

d. joint venture operating NBFC’s that have 75% or less than 75% foreign investment will also be

Page 63: Saurabh Varma

vii)

 

viii)

 

ix)

 

x)

 

 

xi)

 

 

xii)

 

 

xiii)

 

 

xiv)

 

xv)

 

 

xvi)

 

 

Capital

 

Custodial

Services

 

Factoring

 

Credit Rating

Agencies

 

Financial Leasing & Hire Purchase

 

Finance

 

Housing

Finance

Forex Broking

 

Credit card

Business

 

Money

changing

business

 

Micro credit

allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow.

e. compliance with the guidelines of the RBI.

f. The minimum capitalization norms would apply would be applicable where the foreign holding in a NBFC(both direct and indirect) exceeds the limits indicated at (a) above

g. The capital for the purpose of minimum capitalization norms shall consist of ordinary shares only.

Page 64: Saurabh Varma

xvii)

 

 

xviii)

 

 

Rural credit

26. Petroleum & Natural Gas sector

 

a. Refining 49% in

case of

PSUs

100% in

case of

Private

companies

 

FIPB

(in case of

PSUs)

 

Automatic

(in case of

private

companies)

Subject to Sectoral policy

www.petroleum.nic.in and no divestment or dilution of domestic equity in the existing PSUs.

b. Other than

Refining and

including market

study and

formulation;

investment/

financing; setting

up infrastructure

for marketing in

Petroleum &

Natural Gas

sector.

100% Automatic Subject to sectoral regulations issued by Ministry of Petroleum & Natural Gas

ww w .petroleum.nic.in

Page 65: Saurabh Varma

27. Print Media

a. Publishing of

newspaper and

periodicals

dealing with

news and current affairs

26% FIPB Subject to Guidelines notified by Ministry of Information & Broadcasting. ww w .mib.nic.in

b. Publishing of

scientific

magazines/

specialty

journals/

periodicals

100% FIPB Subject to guidelines issued by Ministry of Information & Broadcasting. ww w .mib.nic.in

28. Telecommunications

a. Basic and

cellular, Unified

Access Services,

National/

International

Long Distance,

V-Sat, Public

Mobile Radio

Trunked

Services

(PMRTS),

Global Mobile

74%

(Including

FDI, FII,

NRI,

FCCBs,

ADRs,

GDRs,

convertible

preference

shares, and

proportio-

Automatic

up to

49%.

 

 

FIPB

beyond

49%.

Subject to guidelines notified in the PN 3(2007)

Page 66: Saurabh Varma

Personal

Communications

Services

(GMPCS) and

other value

added telecom

services

 

nate

foreign

equity in

Indian

promoters/

Investing

Company)

b. ISP with

gateways, radio-

paging, end-to-

end bandwidth.

74% Automatic

up to 49%.

 

FIPB

beyond

49%.

Subject to licensing and security requirements notified by the Dept. of Telecommunications.

ww w .dotindia.com

c. (a) ISP without

gateway,

(b) infrastructure

provider

providing dark

fibre, right of way,duct space,tower (Category I);

(c) electronic

mail and voice

mail

100% Automatic

up to 49%.

 

 

FIPB

beyond

49%.

Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required.

ww w .dotindia.com

d. Manufacture of

telecom

100% Automatic Subject to sectoral requirements.

Page 67: Saurabh Varma

equipments www.dotindia.com

29. Trading

a.

 

 

 

b.

 

 

c.

 

 

 

 

 

 

d.

 

 

 

 

 

 

e.

Wholesale/cash

& carry trading

 

 

Trading for

exports

 

 

Trading of items

sourced from small scale sector

 

 

 

Test marketing

of such items for which a company has approval for manufacture

 

 

Single Brand

product retailing

 

100%

 

 

 

100%

 

 

100%

 

 

 

 

 

100%

 

 

 

 

 

 

 

51%

Automatic

 

 

 

Automatic

 

 

FIPB

 

 

 

 

 

FIPB

 

 

 

 

 

 

 

FIPB

 

 

 

 

 

 

 

Subject to the condition that the test marketing approval will be for a period of two years and I nvestment in setting up manufacturing facilities comomences simultaneously with test marketing.

 

 

 

 

 

 

 

 

 

 

Subject to guidelines for FDI in trading issued by Department of Industrial Policy & Promotion vide

Press Note 3 (2006 Series).

Page 68: Saurabh Varma

 

30. Satellites -

Establishment

and operation

74% FIPB Subject to Sectoral guidelines issued by Department of Space/ISRO

ww w .isro.o r g

31. Special

Economic Zones

and Free Trade

Warehousing

Zones covering

setting up of these Zones and setting up units in the Zones

100%

 

Automatic Subject to Special Economic Zones Act, 2005 and the Foreign Trade Policy.

ww w .sezindia.nic.in

 II. In Sectors/Activities not listed above, FDI is permitted up to 100% on the automatic route subject to sectoral rules/ regulations applicable.

III.              Prior Government approval for FDI required in the following circumstances:

i)               where provisions of Press Note 1 (2005 Series) issued by the Government of India are attracted;

ii)              where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector

Page 69: Saurabh Varma

INDIAN REAL ESTATE INDUSTRY 

Size of the IndustryThe size of the real estate industry in India is estimated to be around US$ 12 billion.

Geographical distribution

Mumbai, Bangalore, Chennai, Pune, Hyderabad

Market capitalizationIn the year 2004 Indian Real Estate Industry contributed 6.5% to the total GDP growth.

History

The Indian Real Estate Industry in the country is one of great importance and according to the report of the Technical Group on Estimation of Housing Shortage, as estimated there was a shortage of 26.53 million

houses during the Eleventh Five Year Plan (2007-12) which provides a big investment opportunity. In 2010 India has lead the pack of top real estate investment

markets in Asia according to a study by PricewaterhouseCooper (PwC) and Urban Land

Institute, a global non-profit education.The report provides emphasis on Asia-Pacific real estate investment and development trends emphasizes India, in particular Mumbai and Delhi, are good real estate investment destinations. Even the Residential properties are viewed as more promising than other sectors. Today Mumbai, Delhi, Chennai and Bangalore are on top the pack in the 'buy' prospects. Indian Real Estate

Companies are creating various residential and commercial projects to fulfill the demand for residential and office properties in Tier-II and Tier-III cities.

For example, Ansal Properties have several residential projects in cities such as Jodhpur, Ajmer, Jaipur, Panipat, Kundli and Agra. Omaxe has planned around 40 residential and integrated township projects in Tier-II and Tier-III cities, majority of them in Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan and Haryana. According to latest analysis released by the Department of Industrial Policy and Promotion (DIPP), housing and real estate sector including cineplex, multiplex, integrated townships and commercial complexes, etc, attracted a cumulative foreign direct

investment (FDI) worth US$ 8.4 billion from April 2000 to April 2010 and even the sector witnessed FDI amounting US$ 2.8 billion in the fiscal year 2009-10.

Brief introduction

Page 70: Saurabh Varma

Indian Organized Retail Market is accelerating with players like WalMart, Bharti, and Reliance etc. which stepped up the demand for real estate. According to analysts, a price index must be

incorporated for the housing market to track price movement. And even the government must ensure

that there is no shortage of funds.

Recent harbinger, the Securities Exchange Board of India is permitting Real Estate Industry's mutual funds in both private and public sector which would go in a long way in attracting funds from small investors emphasizing certain return. Another impediment that can be eased on the discretion of government is the existing tax laws and other complex regulations relating to

multidimensional real estates such as industrial parks and SEZs.

The success behind the sudden rise of Indian Real Estate Industry is due to the positive outlook of Indian government and which is the second largest employer after agriculture in India. Today this budding sector is witnessing development in all area such as - residential, retail and commercial in metros of India such as Mumbai, Delhi & NCR, Kolkata and Chennai. Easier access to

bank loans and higher earnings are some of the pivotal reasons behind the sudden jump in Indian real estate.

Government of India has proposed to achieve 9.0% GDP growth during the Eleventh Plan period and to achieve growth adequate infrastructure is the most basic requirement. To overcome the current constraints of insufficient modern infrastructure, the government is developing a program for infrastructure investment through both public and private sectors, and expects to more than

double public investments from 1.2% of GDP in FY07 to 2.8% by FY12. Indian Real Estate Industry's favorable demographics, rising purchasing power, availability of cheap finance, professionalism and reforms initiated by the government are some of the major drivers of this spectacular growth.

The burgeoning outsourcing and IT/ITES industry had contributed to the demand for quality office space as with most of the blue-chip MNC's setting shop in the country. Today the estimated demand for IT/ITES Industry alone is expected to be 150 million sq ft of space across the major cities in the year 2010. While in residential segment, availability of easy home finance and rising

purchasing power has driven the growth. Builders today are launching high-end, lifestyle residential products to cater to the growing bunch of high net worth individuals. In residential sector there is housing shortage of 19.4 million units out of which 6.7 million are in urban India.

Market capitalization

In the year 2004 according to government projections for Indian Real Estate Industry contributed 6.5% to the total GDP growth. Indian Government is pushing harder for higher GDP growth targets and so the jobs in India are expected to be on the constant rise. According to industry analysis the estimation of the Real Estate Industry has been growing at 33 % CAGR and could be

a $50 billion industry in the next four years. The improvement has been noticed by all the major sectors of the industry such as commercial, residential, retail, industrial, hospitality and healthcare.

Size of the industry

India today is the second fastest-growing economy in the World. The Indian construction industry is been

playing a major role in overall economic development of the country, growing at over 20% CAGR over the past 5 years and contributing ~8% to GDP. In 2005,

the sector generated around 31 million jobs. The size of the Indian Real Estate Industry is estimated to be around US$ 12 billion and this figure is growing at a

pace of 30% since few years.

Top leading Companies

Page 71: Saurabh Varma

GMR Group is a business house of 2,500 crore focused on infrastructure development as a key growth driver for India

The DLF Group one of the leading company in India's real estate industry

The Salarpuria Group is an ISO 9001:1000 company with offices based in Bangalore, Kolkata and Delhi

The D.S. Kulkarni Group of Companies which enjoys a commanding presence in the housing sector in Pune and Mumbai.

Rishi Ventures with 9 years of market stand has impressive track record.

DHFL (Dewan Housing Finance Corporation Limited) founded in 1984 by Late Shri Rajesh Kumar Wadhawan with a motto to provide financial access to the lower and middle income segment of the society.

Janapriya Engineers Syndicate started in the year 1985.

City Square Enterprises Pvt. Ltd. established in 1969 which is one of the leading realtors and pioneers in development of Urban and Suburban locations across the Nation.

Employment opportunities

Indian Real Estate Industry has opportunities for employment in commercial banks, saving associations, insurance companies, mortgage bankers, consulting firms, real estate developers, property management firms, and residential or commercial and industrial brokerage. Employment opportunities created by the Real Estate Industry makes it the second highest employment

generator in India, only after agriculture. Hundreds of subsidiary industries are dependent on the real estate operations. Graduates can opt for careers such as Entrepreneurs, Asset Managers, Project Managers, etc.

Latest developments

In 2010 the Private equity fund IL&FS Investment Managers (IIML) have planned to invest US$ 300 million in real estate and urban infrastructure projects.

Recently Godrej Group's real estate company, Godrej Properties and Frontier Home Developers has planned to develop a residential project in Gurgaon. It would be a first residential project in the national capital region (NCR) for Godrej

Properties.

Shristi Infrastructure Development Corporation would invest US$ 444.7 million over the next three years in seven small cities in West Bengal, Tripura and Rajasthan.

Ansal Properties & Infrastructure Ltd had planned to invest about US$ 330.8 million over the next three years.

70% of foreign investors in India are making profits as the Real estate investments in India yield huge dividends.

The relaxed FDI rules implemented by Government of India has invited more foreign investors and Indian Real Estate Industry seems to be the most lucrative ground at present. Such friendly revised investor policies allowed foreigners to own

property, and dropped the minimum size for housing estates built with foreign capital to 25 acres (10 hectares) from 100 acres (40 hectares).

Indian real estate sector is on boom and this is the right time to invest in property in India to reap the highest rewards.

Page 72: Saurabh Varma

This unit is directed towards explaining the institutional framework. An exporter needs guidance and assistance at different stages of his export effort. For this purpose the government of India has set up several institutions whose main functions are to help the industry and trade engaged in exports. It would be advisable for an exporter to acquaint himself with these institutions and the nature of help that they can render to him so that he can initially contact them and have a clear picture of what help he can expect from organized sources in his export effort.

There are a number of constraints which are faced by an Indian exporter. They are basically high cost domestic inputs, low productivity of labour, under utilization of capacities, existence of a lucrative domestic market, etc. The other major handicaps faced by Indian manufactures are high cost of capital goods obtained under tied aid and uneconomic size of the plants necessitated by the government policy of avoiding concentration of economic power.

3.2 INSTITUTIONAL SETUP Institutions engaged in export effort fall in six distinct tiers. At the top is the Department of Commerce in the Ministry of Commerce and Industry. This is the main organization that formulates and guides India’s trade policy. At the second tier, there are advisory bodies to ensure that export problems are comprehensively dealt with after mutual discussions between the Government and the Industry. At the third tier are the commodity specific organizations, which deal with problems relating to individual commodities and/or groups of commodities. The fourth tier consists of service institutions, which facilitates and assist the exporters to expand their operations and reach out more effectively to the world markets. The fifth tier consists of Government trading organizations specifically set up to handle 44 Institutional Framework

export/import of specified commodities and to supplement the efforts of the private enterprise in the field of export promotion and import management. Agencies for export promotion at the State level constitute the sixth tier.

Exhibit 3.1

Institutional Framework: An overview

Department of Commerce

The Department of Commerce in the Ministry of Commerce and Industry is the primary government agency responsible for evolving and directing foreign trade policy and programmes, including commercial relations with other countries, state

Page 73: Saurabh Varma

trading, various trade promotional measures and development and regulation of certain export oriented industries. 45

The Department of Commerce consists of nine Principal Functional Divisions as mentioned below:-

i. Administrative and General Division;

Finance Division;

Economic Division;

Trade Policy Division;

v. Foreign Trade Territorial Division;

Export Products Division;

Export Industries Division;

Export Services Division, and

ix. Supply Division

The Economic Division is responsible for export planning, formulating export strategies, periodic appraisal and review of policies. The Economic Division also maintains coordination and constant control with other divisions and various organizations set up by the Ministry of Commerce to facilitate export growth. Besides, tile Economic Divisions monitors work relating to technical assistance, management services for exports and overseas investment by Indian entrepreneurs.

The Trade Policy, Division keeps track of development in the international organizations like World Trade Organization, Economic Commission of Europe, Africa, Latin America and Asia and Far East (ESCAP). The Trade Policy Division is also responsible for India's relationship with regional trading agreements such as EU, NAFTA, SAPTA, Common Wealth etc. It also looks after GSP and Non Tariff Barriers.

The Foreign Trade Territorial Division is responsible for development of trade with different countries and regions of the world. It also looks after state trading and

barter trade, organization of trade fairs and exhibitions, commercial publicity abroad etc. It also maintains contact with trade missions abroad and carries out

related administrative work. 46 International Marketing An Introduction ii. iii. iv. vi. vii. viii. Institutional Framework 47

Page 74: Saurabh Varma

The MRTP Act, 1969 has its genesis in the Directive Principles of State Policy embodiedin the Constitution of India. Clauses (b) and (c) of Article 39 of the Constitution lay down thatthe State shall direct its policy towards ensuring:(i) that the ownership and control of material resources of the community are sodistributed as to best serve the common good; and(ii) that the operation of the economic system does not result in the concentration ofwealth and means of production to the common detriment.Provisions Relating to Monopolistic, Restrictive and Unfair Trade Practices4.2.1 Section 10 of the MRTP Act, 1969 empowers the MRTP Commission to enquire intomonopolistic or restrictive trade practices upon a reference from the Central Government or uponits own knowledge or on information. The MRTP Act, 1969 also provides for appointment of aDirector General of Investigation and Registration for making investigations for the purpose ofenquiries by the MRTP Commission and for maintenarestrictive trade practices.4.2.2 The MRTP Commission receives complaints both from registered consumer and tradeassociations and also from individuals either directly or through various GovernmentDepartments. Complaints regarding Restrictive Trade Practices or Unfair Trade Practices from anassociation are required to be referred to the Director General of Investigation and Registrationfor conducting preliminary investigation in terms of Sections 11 and 36C of the MRTP Act, 1969and Regulation 119 of the MRTP Commission Regulations, 1974. The Commission can alsoorder a preliminary investigation by the Director General of Investigation and Registration when areference on a restrictive trade practice is received from the Central/ State Government, or whenCommission's own knowledge warrants a preliminary investigation. Enquiries are instituted bythe Commission under relevant Sections of the MRTP Act, 1969 after the Director General ofInvestigation and Registration has completed the preliminary investigation and as a result of thefindings, submits an application to the Commission for an enquiry.Monopolistic Trade Practices4.3 Five enquiries under Section 10(b) were pending with the MRTP Commission at thence of register of agreements relating Monopolistic Trade Practices4.3 Five enquiries under Section 10(b) were pending with the MRTP Commission at thebeginning of the year 2005, while no fresh inquiry was instituted during the period April, 2005-December, 2005. All the 5 enquiries were pending as on 31.12.2005

Restrictive Trade PracticesUnder Section 10(a)(i)4.4 293 enquiries, including 267 brought forward from the previous year, were considered

Page 75: Saurabh Varma

during April 2005-December 2005 of which 48 enquiries were disposed of during the said periodand the remaining 245 enquiries were pending with the Commission as on 31st December 2005.Under Section 10(a)(ii)4.5 Neither any enquiry was brought forward from the previous year nor any enquiry wasinstituted under this Section during the year.Under Section 10(a)(iii)4.6 39 enquiries including 37 brought forward from the previous year were taken up by theCommission during April 2005 to December 2005. One enquiry was disposed of during theperiod and the remaining 38 were pending with the Commission as on 31st December 2005.Under Section 10(a)(iv)4.7 58 enquiries were brought forward from the previous year and 3 fresh enquiries wereinstituted by the Commission during the year from April 2005 to December 2005. 6 enquirieswere disposed of during the said period and 55 enquiries were pending with the Commission ason 31stDecember 2005.Unfair Trade Practices4.8 Provisions relating to Unfair Trade Practices were incorporated in the MRTP Act, 1969 in1984. Unfair Trade Practices have been defined in Section 36A as trade practices which for thepurpose of promoting the sale, use or supply of any goods or for provision of any services, adoptone or more of the practices mentioned therein and thereby cause loss or injury to the consumersof such goods or services, whether by eliminating or restricting competition or otherwise.Under Section 36B(a)4.9 491 enquiries including 410 enquiries brought forward from the previous year wereconsidered by the Commission during April, 2005 - December 2005. Of these, 54 enquiries weredisposed of and the remaining 437 enquiries were pending as on 31st December 2005.Under Section 36B(b)4.10 Neither any enquiry under Section 36B (b) of the MRTP Act, 1984 was initiated nor anyenquiry was brought forward during April, 2005- December, 2005.Under Section 36B(c)4.11 1 enquiry brought forward from the previous year before the Commission is still pendingas on 31.12.2005.Under Section 36B(d)474.12 176 enquiries, including 169 brought forward from the previous year, were taken up bythe Commission during April, 2005 - December 2005. Eight enquiries were disposed of and 168enquiries were pending with the Commission as on 31st December 2005.Temporary Injunctions4.13 Besides 143 applications pending under Section 12A with the MRTP Commission as on1st April, 2005, 43 applications were received by the Commission during the period April, 2005 -December 2005. Out of 186 applications, 55 were disposed of and the remaining 131 applicationswere pending under Section 12A with the Commission as on 31st December, 2005.Award of Compensation4.14 During the period April, 2005 - December 2005, 1341 applications under Section 12Bincluding 1264 applications brought forward from the previous year were considered by theCommission. Of these, 126 applications were disposed of by the Commission during the periodand the remaining 1215 applications were pending as on 31st December, 200548

Enquiries considered and disposed of by MRTP Commission as on 31.12.2005Registration of Agreements4.15.1 Section 35 of the MRTP Act, 1969 requires every agreement relating to Restrictive Trade

Page 76: Saurabh Varma

Practices falling within one or more of the categories enumerated in Section 33(1) of the Act to befurnished for registration within 60 days of the making of such agreement.050100150200250300No. of applicationsSectionRestrictive Trade PracticesConsidered 293 0 39 61Disposed of 48 0 1 610(a)(i) 10(a)(ii) 10(a)(iii) 10(a)(iv)050100150200250300350400450500No. of applicationsSectionUnfair Trade PracticesConsidered 491 0 1 176Disposed of 54 0 0 836B(a) 36B(b) 36B(c ) 36B(d)494.15.2 In pursuance of this provision, during the period April, 2005 to December 2005, 7agreements were received for registration. The same were registered and entered in the Registerof Agreements.4.15.3 A total number of 39,993 agreements were filed up to the end of 31st December,2005, by various undertakings. Out of these, particulars of 39,116 agreements were entered in theRegister of Agreements.Investigation by Director General (Investigation & Registration)Investigation4.16 The Director General is required to conduct preliminary investigation in respect ofrestrictive, monopolistic and unfair trade practices as and when an order of preliminaryinvestigation is received from the MRTP Commission. As on 1.4.2005, one investigation was inprogress. During the period from 1.4.2005 to 31.12.2005, 49 fresh orders of preliminaryinvestigations were received. Out of 50 investigations, Preliminary Investigation Report wassubmitted in 11 cases and 39 investigations were pending at the end of the year. Besides, theDirector General has suo motto powers to initiate preliminary investigations into monopolistic,restrictive and unfair trade practices, and in case any of these trade practices are detected duringsuch investigation, the Director General is empowered to file applications under Sections10(a)(iii)/ 10(b)/36B(c) of the Act for initiation of enquiry proceedings by the MRTPCommission. As a result of such suo moto investigations, 5 applications were filed underSection 36B(c) alongwith 4 applications under Section 12A of the Act for interim injunctionduring the period 1.4.2005 to 31.12.2005. In addition, 3 applications were filed under Section10(a)(iii) of the Act for enquiry into restrictive trade practices during the said period. Thus, atotal of 12 applications have been filed during the period 1.4.2005 to 31.12.2005.Consumer Protection4.17 Of late, consumer protection movement has been sweeping across the whole country. Theconsumers have been organising themselves into consumer bodies all over the country to safeguard

Page 77: Saurabh Varma

the public and consumers' interest against unfair trade practices being indulged in by partiesthrough misleading advertisements, bargain-sales, organisation of sale promotion contests,marketing goods which do not conform to standards of safety etc. An independent Chapterregarding unfair trade practices was inserted in the MRTP Act in 1984 and the consumers aretaking full benefit of the provisions contained in this Chapter by filing complaints in this office.Facility of speedy redressal of their grievances is provided by this office. During the periodApril, 2005 to December, 2005, this office has handled as many as 123 complaints received fromconsumers and other parties including 22 brought forward from the previous year. Of these, 64complaints were disposed of during the period and 59 complaints were pending as on 31.12.05.

SECTORS OF THE INDIAN ECONOMYPrimary SectorSecondary SectorInterdependencyTertiary SectorGrowth of Different SectorsEmployment GenerationOther ClassificationsFinish Line & Beyondwww.excellup.com ©2009 send your queries to [email protected] SectorWhen the economic activity depends mainly on exploitation of natural resources thenthat activity comes under the primary sector. Agriculture and agriculture relatedactivities are the primary sectors of economy.Secondary SectorWhen the main activity involves manufacturing then it is the secondary sector. Allindustrial production where physical goods are produced come under the secondarysector.Tertiary SectorWhen the activity involves providing intangible goods like services then this is part ofthe tertiary sector. Financial services, management consultancy, telephony and ITare good examples of service sector.Evolution of an Economy from Primary Sector Based to Tertiary SectorBasedDuring early civilization all economic activity was in primary sector. When the foodproduction became surplus people’s need for other products increased. This led tothe development of secondary sector. The growth of secondary sector spread its

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influence during industrial revolution in nineteenth century.After growth of economic activity a support system was the need to facilitate theindustrial activity. Certain sectors like transport and finance play an important role insupporting the industrial activity. Moreover, more shops were needed to providegoods in people’s neighbourhood.Ultimately, other services like tuition, administrative support developed.Interdependency of Sectors:To understand this interdependency, let us take an example of a cold drink. A colddrink contains water, sugar and artificial flavour. Suppose if there is no sugarcaneproduction then procuring sugar will become difficult and costly for the cold drinkmanufacturer. Now to transport sugarcane to sugar mills and sugar to the cold drinkplant needs the services of a transporter. A person or system of persons is requiredto maintain and monitor all these movements of goods from farm to factory to shopin different locations. That is where role of administrative staffs comes. Let us goback to the farmer. He also needs feritlisers and seeds which is processed in somefactory and which will be delivered to his doorstep by some means of transportation.To top it all at every step of these activities we require the proper monetary andbanking system. So, in a nutshell this describes how interrelated all sectors of aneconomy are.Finish Line & Beyondwww.excellup.com ©2009 send your queries to [email protected] and Status of Different Sectors in India.1973 2003050000100000150000200000250000

Value of Sectors in Indian EconomyRs. CroreTertiarySectorSecondarySectorPrimarySector1973 20030.00%20.00%40.00%60.00%80.00%100.00%120.00%45%25%20%20%35%55%

Share of Sectors in GDPTertiarySectorSecondarySectorPrimarySector

Finish Line & Beyondwww.excellup.com ©2009 send your queries to [email protected] 20000.00%20.00%

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40.00%60.00%80.00%100.00%120.00%75%60%10%18%15%22%

Share of Sectors in EmploymentTertiarySectorSecondarySectorPrimarySectorClosely observe the given graphs. The first graph shows the rupeewise turnover ofvarious sectors in 1973 and 2003. The second graph shows the share of threesectors in the GDP during these 20 years and last graph shows share in providingemployment.The first graph shows a massive increase in turnover for all these sectors during 20years, which shows the way our economy grew. The second graph shows that shareof agriculture decreased substantially and that of industry remained static and shareof services grew. Particularly the growth of share of services sector was phenomenalfrom 35% to 55%.Now the third graph paints a distressing picture. The share in providing employmentwas not in tune with the share in GDP. The agriculture provided employment to 75%workers and this decreased to 60% in 2000, which is not as big a drop asagriculture’s drop in GDP contribution. On the other hand the growth in employmentprovided by other two sectors was substantially low.The meaning of this finding is as follows:1. Majority of people are still employed in agricultural activities. As agricultureprovides seasonal employment during cropping season so chances of hiddenemployment are big. Moreover, as history suggests a developed nation’s dependencyshifts from primary sector towards tertiary sector in all aspects of economicdevelopment, so it can be said that India is still way behind because majority stilldepend on agriculture.2. Secondary and Tertiary Sector have failed to generate enough employmentopportunities making a pressure on primary sector. Although educated and skilledworkforce do get employed in secondary and tertiary sector but for unskilled andsemi-skilled workers there is still shortage of employment avenues.

nues.Finish Line & Beyondwww.excellup.com ©2009 send your queries to [email protected] Classifications of EconomyOrganised SectorThe sector which carries out all activity through a system and follows the law of theland is called organized sector. Moreover, labour rights are given due respect andwages are as per the norms of the country and those of the industry. Labour workingorganized sector get the benefit of social security net as framed by the Government.Certain benefits like provident fund, leave entitlement, medical benefits and

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insurance are provided to workers in the organized sector.These security provisions are necessary to provide source of sustenance in case ofdisability or death of the main breadwinner of the family. Otherwise the dependentswill face a bleak future.Unorganised Sector:The sector which evade most of the laws and don’t follow the system come underunorganized sector. Small shopkeepers, some small scale manufacturing units keepall their attention on profit making and ignore their workers basic rights. Workersdon’t get adequate salary and other benefits like leave, health benefits and insuranceare beyond the imagination of people working in unorganized sectors.Public SectorCompanies which are run and financed by the Government comprise the publicsector. After independence India was a very poor country. India needed hugeamount of money to set up manufacturing plants for basic items like iron and steel,aluminium, fertilizers and cements. Additionally infrastructure like roads, railways,ports and airports also require huge investment. In those days Indian entrepreneurwas not cash rich so government had to start creating big public sector enterpriseslike SAIL (Steel Authority of India Limited), ONGC(Oil & Natural Gas Comission).Private SectorCompanies which are run and financed by private people comprise the private sector.Companies like Hero Honda, Tata are from private sectors.Government Aided Schemes to Fight UnemploymentGovernment, from time to time, announces and implements various employmentscheme to fight unemployment or hidden employment to help the weaker section ofsociety. Shcemes like NREG (National Rural Employment Guarantee) is the latestannounced by the UPA government in 2004. This programme guarantees a minimumof 100 days of employment to at least one person from every rural household. This ispart of government’s effort to ensure the ‘Right to Work’ to the rural poor citizen.s

History 

Indian Electronics industry dates back to the early 1960's. Electronics was one industry initially restricted to the

development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and

telegraphic communication, and augmentation of defense capabilities. Until 1984, the electronics Industry was primarily

government owned and then in 1980s witnessed a rapid growth of the electronics industry due to sweeping economic

changes, resulting in the liberalization and globalization of the economy.

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The economic transformation all over the world was motivated by two compelling factors - the determination to boost economic growth, and to accelerate the development of export-oriented

industries, like the electronics industry. By 1991 in the country private investments - both foreign and domestic were encouraged. The easing of foreign investment norms, allowance of 100%

foreign equity, reduction in custom tariffs, and relicensing of several consumer electronic products had attracted remarkable amount of foreign collaboration and investment.

The domestic Electronic industry also responded favorably to the policies of the government. The initiatives of the electronics field to private sector enabled entrepreneurs to establish the

industries to meet demand in the market. Improvements in the Indian Electronics industry have not been limited to a particular segment, but encompass all its sectors. This pace made in the

areas of commercial software, telecommunications, electronics, instrumentation, positioning and networking systems, and defense. The result therefore has been a significant trade growth that

began in the late 1990's. The Indian Electronics Industry is a text for investors who consider India as a potential investment opportunity.

 Brief introduction

Indian electronics companies had majorly benefited from the economic liberalization policies of the 1980's, including the

loosening of restrictions on technology and component imports, delicensing, foreign investment, and reduction of excise

duties. Output from electronics plants in India grew from Rs1.8 billion in FY 1970 to Rs8.1 billion in FY 1980 and to

Rs123 billion in FY 1992. Most of the expansion took place in the production of computers and consumer electronics.

Indian Production of Computer rose from 7,500 units in 1985 to 60,000 units in 1988 and to an estimated 200,000 units

in 1992. During this period, major advances were made in the domestic computer industry that led to more sales.

Consumer electronics in India account for about 30% of total electronics production of the country.

In 1990 the electronic production included 5 million television sets, 6 million radios, 5 million tape recorders, 5 million electronic watches, and 140,000 video cassette recorders. The Indian

engineering sector is large and varied and provided around 12 % of India's exports in the mid-1990s. Two subsectors, electronics and motor vehicles, are the most dynamic in all the sectors.

Despite the global economic slowdown, growth of Indian electronics industry in 2009 was on par with the previous year at 9.9%, although this was decreased according to the double-digit

growth achieved in 2006 and 2007. In 2010 output grown by 13.6% and in the medium to long-term India will continue to show strong growth driven by a large, fast growing domestic market,

significant foreign investment and an improving regulatory environment. The global electrical and electronics industry has various adjunct sectors. Few of them are Electronic Components,

Computer & Telecommunications, Office Equipments, Consumer Electronics as well as Industrial Electronics.

Market capitalization

The Indian electronics market was at US$11.5 billion in 2004, then the market wgrew worldwide over the next several years. Indian Electronics Industry is expected to grow at a Compound

Annual Growth Rate (CAGR) of 23% by 2010 to reach US$40 billion. Though its total output will be far behind China electronics market, worth US$271.97 billion in 2004, India promises a better

market with the bears watching. Low manufacturing costs in skilled labor and raw materials, availability of engineering skills, and opportunity to meet demand in the populous Indian market, are

driving its electronics market.

Size of the industry

In the year 2005 India's electronic consumption was around 1.8 %. It is likely to touch 5.5 % in 2010. According to a study conducted by ISA and Frost Sullivan, India's semi-conductor market

would grow by 2.5 times. The end-user products of semi-conductor would include mobile handsets, desktop and notebooks, PCs, etc.

Total contribution to the economy/ sales

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Indian electronics industry today stands at US $ 25 billion and is ranked 26th in the world in terms of sales and

29th in the world in terms of production. It is growing at over 25% CAGR and is expected to be worth US $ 158

billion by 2015. Electronic industry is one of the fastest growing industries in the country and is driven by growth in

key sectors such as IT, Consumer Electronics and Telecom.

The demand for electronics is expected to be fuelled by the growth of

Telecommunications (250 million subscribers by the next few years)

PCs and Notebooks (5 million every year)

Broad-Band connectivity reaching rural areas

Top leading Companies

Video Projectors: Phil Systems, Keltron Projectors, Birla 3M, Samrat Video Vision

Colour Television: LG Electronics, Philips, Sony; Sansui, Samsung, BPL, Videocon, Onida, Aiwa, Akai, Thompson, Panasonic.

Cameras/Camcorders: Sony, Canon, Olympus, Fuji film, Nikon

Employment opportunities

According to a recent report presented by Ernst & Young, the Indian domestic demand for electronics products is expected to reach $125 billion by 2014 from the current level of $45 billion

annually. The primary demand drivers for the Indian Electronic Industry are sectors like telecom, defence, IT and e-governance, automotive, consumer electronics, and energy. At these

demand levels, until India creates its own electronics product industry, the imports of these products will create the single largest trade deficit item, which would even be larger than petroleum

products. On the other hand, if this particular unique opportunity is utilized, it can create a large industry catering to domestic consumption, which will help achieve self reliance in strategic

sectors like telecom and defence, while leading to large exports.

Latest developments 

The Indian Electronic industry constitutes less than 1% of the global market. However, demand for these products are growing rapidly and investments are flowing in to augment

manufacturing capacity.

Today India remains a major importer of electronic materials, components and finished equipment amounting worth of $20 billion (Rs84, 000 crore ) in 2007. The country imports

electronic goods mainly from China

In past four years, production of computers has grown at a compounded annual growth rate (CAGR) of 31%, which is highest among the various electronic products in India. And

then the production is followed by communication and broadcast equipment (25%), strategic electronics (20%) and industrial electronics (17%).

The consumer electronics segment has grown at a CAGR of 10% in the last five years includes a wide range of products such as DVD, VCD/MP3 players, television sets and

microwave ovens.

The growth in demand for telecom products has been high, with India adding two million mobile phone users every month, which serves as one of the main reasons for the

growth in production of electronic goods. This growth is expected to continue over the next decade, too.

To attract foreign investment the government has adopted Chinese style Special Economic Zones with the aim to provide islands of excellence where the infrastructure is world

standard. Fifteen-year tax breaks given to foreign investors and SEZs are treated as foreign territories for the purpose of trade operations, duties and tariffs.

India has been a great success story in the IT services industry and the next great opportunity is to create our own electronics product industry, which will help to move up the

value chain and create global technology brands. Today the market is at the threshold of a decisive phase in our growth where, if the government and entrepreneurs take

concrete steps it can create a $100 billion electronics product industry from India in the next 10 years.

Multi national corporations provide growing electronics market to India at lower costs by manufacturing semiconductors in India. India has the potential to come up as the next

electronics and hardware destination in the world. The chip design and other complex components electronic device can be acquired from the Indian companies at low cost.

India is growing up to be one of the biggest markets for electronic instrumentations. The consumption value of electronic equipment in India in 2005 is estimated as US$ 28.2

billion. The main factor pertaining to the success of the Indian Electronics and Hardware Industry is the growth in the market demand. The growth in the manufacturing of

semiconductor serves as the key driver in the emergence of India as one of the leaders. The advantages pertaining to the taxes and duties, the access to technical and

engineering expertise, proper manufacturing facilities, lucrative investment offers, etcs

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