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Breakfast Meeting at the Danish Thai Chamber of Commerce Sheraton Grande Sukhumvit 21st of October,


Breakfast Meeting at the. Danish Thai Chamber of Commerce ... Vegetarians. Preference for fresh rather. than processed products. Retail sector is the key. ... – PowerPoint PPT presentation

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Title: Breakfast Meeting at the Danish Thai Chamber of Commerce Sheraton Grande Sukhumvit 21st of October,

Breakfast Meeting at theDanish Thai Chamber of
CommerceSheraton Grande Sukhumvit21st of
October, 2009.Presentation of Market
Opportunities in India byCommercial
Counsellor Peter Sand


Denmark vs. India
Brief on India and Political Outlook
Political Overview
  • Political system
  • Parliamentary democracy (26-28 parties)
  • Head of State
  • President Pratibha Patil (since July 2007)
  • Prime Minister
  • Manmohan Singh (since 2004)
  • The Congress Party is leading the United
  • Alliance (UPA)

Pratibha Patil
Manmohan Singh
Brief on India and Political Outlook
The New Government
  • Elections in April-May, 2009
  • Clear mandate to the Congress Party.
  • New government is expected to be cohesive and
  • Scope for further progress on economic reforms.
  • Revival of the economy on top of the UPA's
    100-day plan.
  • .

Brief on India and Political Outlook
Towards a Proactive Role?
  • India has shown positive signs of active
    involvement in
  • WTO
  • Initiated a constructive discussion session in
    Delhi prior to the Pittsburgh summit.
  • G20
  • Achieved global recognition.
  • Climate negotiations
  • Active participant in the ongoing discussions and
    one of the main players.

Brief on India and Political Outlook
India and USA Important Allies
  • Traditionally a strained relationship
  • This changed with the economic reforms
  • India has its focus on three issues
  • American investments
  • Access to technology
  • The U.S.-India Nuclear Agreement
  • Non-resident Indians in USA

  • Defined threats against the
  • security of the nation
  • India Pakistan conflict
  • India China border dispute
  • Naxalites

Brief on India and Political Outlook



Liberalisation of the Economy
  • A large part of the bright prospects in terms of
    the economy can be
  • attributed to the liberalisation.
  • Transition to market economy since 1991.
  • Ongoing privatisation.
  • Member of WTO since 1st of January, 1995.
  • At the same time increased focus on bi- and
    multilateral trade agreements.
  • 2001 India Sri Lanka FTA
  • 2005 India Singapore FTA
  • 2006 SAFTA

India Emerging Economic Outlook

India Emerging

India Emerging Economic Outlook
What to Expect...
  • In 7 years Higher sustaining
  • growth than China.
  • In 25 years 3rd largest economy
  • in the world (next to China
  • and USA).
  • In 35 years 2nd largest economy
  • in the world (next to China)
  • Expected yearly growth at 8 until 2020.

India Emerging Economic Outlook
Economic Structure
  • So-called two-tier economy
  • Cutting edge globally competitive service
  • Rain-fed agricultural sector employing the
  • vast and poorly educated majority

India Emerging Economic Outlook
FDI in India
  • Dramatic rise in foreign direct investment (FDI)
    in recent years.
  • 2008 FDI US 42 bn (3,4 of GDP)
  • 2007 FDI US 23.6bn (2.1 of GDP)
  • 2006 FDI US 17.5bn (1.9 of GDP)
  • 2005 FDI US 6.6bn (0,8 of GDP)
  • 2004 FDI US 5 bn (0,7 of GDP)
  • Source Economist Intelligence Unit
  • The service sector continues to be the biggest
    recipient of FDI.
  • Denmark is the 25th biggest investor
  • in India. Source Business Standard

India Emerging Economic Outlook
Last Months News on FDI
  • Western companies are eager to get a piece of the
    Indian market.
  • Random news picks from September 2009
  • Ford Motor said it would build and sell a new
    hatchback in India. Source New York Times
  • McDonalds announced that it would open 120 more
    restaurants. Source New York Times
  • (In terms of FDI flowing into India), Q3, 2009
    is expected to be the biggest quarter ever
  • Source EconomyWatch

India Emerging Economic Outlook
  • If growth rates are to be sustained, some hurdles
    must be
  • overcome
  • Bureaucracy
  • Corruption
  • Remainings of protectionism
  • Infrastructure
  • Public budget deficit
  • Poverty
  • Restrictive labour market laws

India Emerging Economic Outlook


What Danish Companies Do in India?
  • Sale
  • Sourcing
  • Production
  • RD

India as a Business Destination

More than 100 Danish Companies..

Indo-Danish Bilateral Trade
  • 2008 Exports of goods to India DKK 2,8 bn
  • Not impressive but nonetheless a 39,8 increase
    from 2007
  • 3 largest group of exported goods
  • Other means of transport DKK 386 m
  • Medical and pharma products DKK 361 m
  • Machinery and ancillary equipment DKK 283 m
  • 2008 Export of services to India DKK 4,7 bn
  • Out of which shipping accounted for DKK 4,4 bn
  • 2008 On bottomline a trade deficit of DKK 0,8 bn
    as Denmark imported goods worth DKK 3,6 bn
    (mainly textiles).
  • Current trend Latest year-to-date figure shows
    that exports to India has dropped 22,3

India as a Business Destination
  • Advantages when doing business in India includes
  • Large and growing pool of well-educated
  • Comprehensive educational system
  • English is the primary business language
  • Low factor costs
  • Young population
  • Extensive RD environment
  • Democracy
  • Legislation based on English Common Law

India as a Business Destination
Challenges When Conducting Business
  • Naturally, those are a subset of the challenges
    to sustained growth
  • Bureaucracy
  • Corruption
  • Remainings of protectionism
  • Infrastructure
  • Restrictive labour market laws

India as a Business Destination
Why Choose India?
  • Fast growing economy Second highest growth rate
    in the world.
  • Unexploited opportunities
  • Large and growing middle and upper class
  • Has been hit by the financial crisis but not
  • Low export dependence
  • Future driver of the world economy

India as a Business Destination


  • Bio Mass/Gas/Fuel
  • Huge potential to be found in agricultural waste
  • Wind energy
  • 4th largest consumer of wind energy in the world
  • Oil Gas
  • The industry is on estimated 110 bn.
  • Power
  • Chronic power cuts. Stated objective on power for
    everyone in 2012.

Industry Focus
Danish Possibilities Within Energy
  • Bio Mass/Gas/Fuel
  • Suppliers of sub-components. High demand on
    Danish knowledge and capabilities within
    extraction of ethanol.
  • Wind
  • Good prospects for subcontractors in a fast
    growing market
  • Oil Gas
  • Danish possibilities within areas of exploring
    and production.
  • Power
  • Danish possibilities especially within
    technology and controllling systems.

Industry Focus
Food and Agriculture
Retail sector is the key. Opening for FDI in the
retail sector inevitable political sensitive
issue Market access is increasing but somewhat
slowly. FDI ? Organisation of the home market ?
Need for a processing industry etc.
  • Great potential
  • Urbanisation
  • Growth in private expenditure
  • Obstacles
  • Limited market access
  • Price sensitivity.
  • Culture
  • Vegetarians
  • Preference for fresh rather
  • than processed products

  • Conclusion
  • Timing is right
  • Indian market for food is moving
  • Be there and be ready when the party starts

Industry Focus
Danish Possibilities Within Food and Agriculture
  • Participation in the development of agriculture,
    aquaculture and
  • processing industries
  • E.g. by offering machinery, know-how, breeding
    material etc.
  • Non-perishable processed products
  • Snacks, biscuits, beverages, ingredients etc.
  • Bacon
  • By gradually building up a market

Industry Focus
ICT in India The Quantitative Perspective
  • Size
  • 2006 07 1,63 m. people employed within IT
    Software and Service.
  • 2007 08 2 m. people employed ? An increase of
    375,000 professionals
  • Performance
  • Est. revenue in the IT-BPO industry FY2009 US
    71.7 bn
  • With IT software and services industry accounting
    for US 60 bn
  • Exports are est. to make up US 47.3 bn
    (equalling to 66)
  • USA (60), UK (18) exports to Continental
    Europe growing at a CAGR on more than 55 from
    FY2004 07

ICT The Qualitative Perspective
  • Competitive advantages
  • Quality
  • Leader in terms of quality certifications
    achieved by centres in any single country
  • Costs
  • India enjoys a cost average of around 60 70 as
    compared to source markets
  • Enhanced value delivery capability
  • Clients are now seeking more than just cost
    savings ? Adjustment process
  • on also being innovative is taking place
  • The sector caters for
  • Banking, Financial Services and Insurance (41)
  • Hi-tech/Telecom, Manufacturing and Retail
  • are increasingly gaining share.

We came to India for the costs, we stayed for
the quality, were now investing for the
innovation. Dan Scheinman, Senior VP of Cisco
Systems, 2005.
  • Development and expectations of the Indian demand
    for healthcare services (US bn)
  • 2001 US 20,6 bn
  • 2007 US 35 bn
  • 2012 US 75 bn (Est.)
  • 2017 US 150 bn (Est.)
  • Estimated growth for 2009 12 14

Industry Focus
  • Investments in health sector made attractive due
    to a gov. declared ambition to make India a
    leading country within pharma and biotech.
  • Growing proportion of elderly people creates a
    need for investments
  • US 50 bn. yearly during the next 20 years
  • CII Need for 3,1 m. extra beds until 2018 and
    instant investments on US 82 bn.
  • Industry for medical devices US 2,17 bn. And
    growing at 15-20 per year.
  • Expected to reach US 4.97 bn. in 2012
  • McKinsey and CII Medical tourism to India can
    reach US 2 bn. i 2012 (US 350 m. in 2006).

Industry Focus
Other Sectors
  • Infrastructure
  • Machinery
  • Retail
  • CDM

Industry Focus


India Thailand Free Trade Agreement
  • 2004 Limited free trade agreement including 82
    (agricultural and industrial)
  • items.
  • 2007 Supposed to be followed by full fledged FTA
    ? Disagreements on rules of origin ?
  • Delay
  • Autumn 2009 ASEAN India FTA Elimination of
    duties on more than 4,000
  • items in the next eight years. Entry into force
    (1 Jan., 2010)
  • New Delhi 7 Oct. Intensions were formulated to
    extend the FTA to iclude services and
  • investments.

Indo Thai bilateral trade 2006-07 US 3,18
bn. 2007-08 US 4,11 bn. 2008-09 US 6
bn. 2010 US 10 bn. (target)



What Can Trade Council of Denmark do for Your
TCD helps within four areas of business

International growth through increased
exports Increased competitiveness through
outsourcing, sourcing and innovation Internation
al influence through access to public and
private decision makers Global strategy -
through advice on tendencies in globalisation
and sales opportunities

What Can TCD India do for Your Company? II
  • Representations in Delhi, Bangalore and Ahmadabad
  • Primary assignments
  • Customized market reports and analyses
  • Partner searches (suppliers, distributers, JV
    partners, acquisitions)
  • Establishment of subsidiaries
  • Incubation
  • Visits to India for companies, delegations,
    industrial organisations, boards etc.
  • Recruitment for hiring in Denmark.
  • Royal Danish Embassy, New Delhi, India
  • Trade Commission of Denmark, Bangalore, India
  • Trade Commission of Denmark, Ahmedabad, India
  • Peter Sand,
  • Website