Title: Eastern Europe and Poland new opportunities for Indian Business INDIA EU BUSINESS SUMMIT EUIndia Tra
1Eastern Europe and Poland new opportunities for
Indian BusinessINDIA EU BUSINESS
SUMMITEU-India Trade Relations and Beyond
Dynamics of Mergers Acquisitions and the Role
of Corporate Governance
- Dr. Malgorzata BonikowskaIndia EU Council
2EU NEW MEMBER STATES
- EU Enlargement
- 1 May 2004 accession of 10 new member states, 8
from Eastern Europe (Poland, Check Republic,
Slovakia, Hungary, Lithuania, Latvia, Estonia,
Slovenia). - 1 Jan 2007 Bulgaria and Romania
- Full participation in the Single Market and EU
common trade policy - Relatively cheap labour force
- High interest in attracting foreign investors
- Dynamic economic growth (bigger than in old
member states) - Good contacts with India in the past (60-ties,
70-ties) - Presence of several Indian companies already.
3EU FUNDS FOR EASTERN EUROPE
- Considerable amount of EU funds for Eastern
European countries for the next - 7 years 2007-13.
- EU funds for Poland (2007-13)
- 68 billion Eur - structural funds for
infrastructure, companies investments, human
capital, environment etc.) - 20 billion Eur funds for agriculture and
fisheries - EU funds for Bulgaria (2007-13)
- 8 billion Eur
4WHY POLAND?
- GDP growth twice than of Western Europe
- 6,3 in 2007
- 5,0 in 2008 (forecast)
- The highest foreign investments inflow 16.2
billion USD - 2nd place Hungary, 6.2 billion USD.
- 80 companies that have invested already in
Poland are satisfied and ready to invest again. - Source KPMG, report 2006
5(No Transcript)
6POLAND AS INVESTMENT LOCATION
- 7th position in top 10
- global investment destination
- China 48
- USA 33
- India 26
- Germany 18
- Russia 12
- United Kingdom 11
- Poland 11
- Source European Attractiveness Survey 2007,
- ErnstYoung
7POLAND AS INVESTMENTS LOCATION - sectors
- First place as most preferred location for
investment in the communication sector. - Second place as most preferred location for
investment in the electricity and gas sector. - Third place as most preferred location for
investments in agricultural, forestry and fishing
sectors. - Growing potential as a location for service
centers such as financial or call centers. - Source AT Kearney report 2006
8EASTERN EUROPE HUMAN CAPITAL
- Percentage of population in higher education
- in the 20-29 age group
- Country Percent of the students
- Poland 30,2
- Germany 27,9
- Netherlands 25,5
- Hungary 23,7
- USA 23,4
- Ireland 22,6
- Czech Republic 18,9
- Slovakia 14,5
- Source Education at a glance, OECD 2006
9POLAND HUMAN CAPITAL
- 20 million young, highly educated, multilingual
people. - The youngest population in Europe
- around 47 under the age of 35 years
- 32 under 25 years of age.
-
- The young generation of Poles is one of the best
educated in Europe - over 55 citizens between the ages of 20-24
attend higher education courses. - 2 million citizens attend higher education
courses
10EASTERN EUROPELABOUR FORCE
- Country Average number of hours actually
worked per person annually - South Korea 2351
- Poland 1970
- Czech Republic 1923
- Mexico 1920
- Japan 1829
- Greece 1811
- USA 1809
- Hungary 1802
- Slovakia 1791
- Source OECD Employment Outlook 2006
11POLAND - LABOUR FORCE
- The largest working population in Central Europe
- 24 million people in working age group (61 of
the population). - The hardest working people after Koreans.
- Poles work 600 hours more than employees in
France and Germany. - Source OECD Employment Outlook 2006
- In the same time - Europe is getting older. By
2030, the number of working-age Europeans will
decline by 7, while those over 65 will increase
by 50.
12POLAND - EDUCATION
- Over two million young people currently study at
the higher education institutions (half of the
student age population). - About 390.000 students graduate every year
- about 240.000 in social sciences, business and
law, - almost 44.000 in engineering, manufacturing and
construction, - 20.000 in science, maths and computing
- over 3.000 in specialized language studies.
- A nationwide network of 448 centres of higher
education. - 130 state higher education academies including 17
universities and 18 universities of technology, - 318 private schools of tertiary education.
- They employ over 100 000 academics half of them
hold - a Ph.D. degree.
13POLAND FOREIGN LANGUAGES
- 44 of Polish society is able to communicate in a
foreign language. - 33 speak two foreign languages.
- 96.3 of students speak English.
- The most popular foreign language is English,
followed by German and Russian.
14POLAND AND ICT
- Polish Information and Communication Technologies
(ICT) education centers and specialists are
highly recognized worldwide. - Poles are winning in the prestigious Top Coder
ranking and also achieving high positions in the
worldwide Google Code Jam Competition and the IBM
Linux Scholars Challenge. - Polish IT specialists are employed by the largest
IT companies in the world - They constitute an important share of managers
responsible for research and development (RD)
activities in multinational corporations such as
Microsoft and Nokia. - In Sillicon Valley there are 300 Polish computer
scientists. - There are 20 information and telecommunications
(ICT) academic centers with more than 2500
students each and 150 000 IT, computer science
and - telecommunication students overall.
15EASTERN EUROPE BEST CITIES RE QUALIFIED STAFF
- Place City Score
- 1 London 1,44
- 17 Warsaw 0,21
- 23 Prague 0,15
- 25 Budapest 0,13
- Source European Cities Monitor 2006, Cushman
Wakefield
16EASTERN EUROPE LABOUR COSTS
- Labour costs per hour in EUR
- Country Private sector Production sector
- Poland 5,9 5,2
- Hungary 6,7 6,1
- Czech Republic 7,4 6,7
- Slovenia 11,9 10,8
- UK 26,5 26,6
- Germany 28,7 32,0
- Denmark 33,8 32,3
- source Eurostat, 2007
17EASTERN EUROPE - MARKET
18POLAND - MARKET
- Population of 38,16 mln
- the largest market in Central Europe
- the eighth largest on the Continent,
- 30th in the world.
- Polands market is larger than the combined
markets of all the other nine accession countries
that entered the EU together with Poland in May
2004.
19POLAND SPECIAL ECONOMIC ZONES
- 14 Special Economic Zones created until 2015-17.
- designated areas in which investment activities
can be conducted on preferential terms. - Investors permitted to operate in the SEZ can
benefit from the following - income tax exemption a form of regional aid
- land at competitive prices
- free assistance in dealing with formalities
relating to the investment project - exemption from real estate tax
- grants for employee training programmes
- grants for the creation of new jobs
20INDIA AND EASTERN EUROPE
- Economic growth transforms India into one of
Asia's star economies. - The new member states are slowly waking up to the
vast business and cultural potential of India. - However, India is still seen by most people in
Eeastern Europe as an underdeveloped country
source of cheap and non educated labour force.
21INDIAN INVESTMENTS
- Over 90 of the funds of Indian companies are
invested in other parts of Asia and the
developing world. - The rest is invested in Europe the United States.
- Eeastern Europe has started to be popular after
2004 (the EU enlargement).
22EASTERN EUROPE - PROBLEMS FOR INDIAN COMPANIES
- Not stable political system
- Unclear law environment
- Restricted domestic policy towards Asians
- Visa problems
- Crossing borders
- Public opinion against cheaper labour force from
Asia. - Stereotyped perception of Indians in business.
23INDIA EU COUNCIL
- The India EU Council was established to
facilitate contacts between India and Eastern
Europe, also in the field of business
cooperation. - It is registered under the European law, as an
NGO in Poland. - It operates from Warsaw but has representatives
in Sofia, Vilnius as well as in New Delhi. - It acts through its partner companies.
24OFFER FOR INDIAN BUSINESS
- business and investment assistance (legal, taxes,
social dialog etc.). - Representation offices management.
- Public affairs (central and local government)
- Training and coaching programs re cross-cultural
relations and human resources management in a
different cultural background. - business trips and workshops.
- Feasibility studies and business plans.
- Financial consultancy (EU funds included).
- Research, analysis and sector dossiers on request
(environment, energy, tourism etc.) - Business news and features e-services delivered
by email - Business press and internet monitoring.
25LODZ CHAMBER OF COMMERCE
- Reactivated in 1990.
- Its the biggest organisation of economic
government, associating more than 400 enterprises
in Lodz region. - Its associates companies of all trades
- Mainly textiles, construction and farmaceutical
companies - 85 SME
- It is a member of Polish Chamber of Commerce.
26OFFER FOR INDIAN BUSINESS
- Representation of business interests in front of
the governmental and local administration, - Participation in governmental and EU programs
supporting business development, - Contribution to the member companies development
and support to their activities, - Assistance in court cases,
- Organisation of trade missions for companies.
- Information services.
27IMPORTANT EVENTS FOR INDIAN BUSINESS IN POLAND
2008
- INDIA EU business workshops in Lodz, spring 2008
(Lodz Chamber) - India EU business workshops in Gdansk, May 2008
(India EU Council) - India Days (Indian Embassy to Poland).
28INDIA EU COUNCILoffices inWarsaw (Central
Eastern Europe) Sofia (South-Eastern
Europe)Vilnius (Nord-Eastern Europe)www.indiae
u.euemail info_at_indiaeu.eu
29LODZ CHAMBER OF INDUSTRY AND COMMERCE30
Tuwima str.90002 Lódzphone 48 42 250
5450fax 48 42 630 3979email
liph_at_liph.com.plwww.izba.lodz.pl