III. Economic trends and outlook KEY ECONOMIC INDICATORS (in millions of dollars unless noted) 1991/92 1992/93 1993/94 1994/95 Est. Proj. Domestic Economy Population (Oct.1) (millions) 857 872 890 908 Population growth rate (%) 2.0 1.9 2.0 2.0 GDP in local currency (billion Rs) 2408.9 2519.6 2615.3 2746.0 Nominal GDP, billion (US$) 251.1 244.1 252.4 285.5 Nominal GDP per capita (US$) 293.4 279.9 283.6 314.4 Real GDP in local currency (% Change) 1.0 4.6 3.8 5.0 Consumer Price Index (% Change) 13.5 9.6 8.0 11.0 Production and Employment Unemployment rate (annual average) 22.0 22.0 22.5 22.5 Agricultural production (% change) -1.9 3.9 1.0 3.0 Industrial production (% Change) 0.0 1.8 2.5 6.0 Govt. fiscal deficit (as % of GDP) 5.9 5.7 7.4 6.1 Balance of Payments Exports (F.O.B.) 18,223 18,789 22,620 26,000 Imports (C.I.F) 20,347 22,895 24,070 27,500 Trade balance -2,124 -4,106 -1,450 -1,500 Current-account balance -2,521 -5,277 -2,178 -1,700 Foreign direct investment (new) 155 261 600 1,000 Foreign debt (year end ) 74,497 79,221 80,000 81,000 Debt service paid 6,770 7,014 7,572 9,400 Debt service as a percent of exports of goods and services 26.1 26.4 24.0 26.4 Foreign-exchange reserves(year end) 5,722 6,749 15,475 18,000 Average exchange rate for year 24.52 28.90 31.25 31.50 (Rs = U.S. $ 1.00) Tourism receipts/expenditure 1330/490 1500/550 1660/600 1750/800 Foreign Investment Total (Stock) 2,700 3,000 3,600 4,600 U.S. (Stock) 533 600 800 1,300 U.S. share (%) 19.7 20.0 22.2 28.3 U.S.-India Trade U.S. exports to India (F.A.S.) 2,003 1,914 2,761 3,200 U.S. imports from India (C.I.F) 3,197 3,781 4,551 5,000 Trade balance -1,194 -1,867 -1,790 -1,800 U.S. share of India's exports (pct.) 17.6 20.1 20.1 20.0 U.S. share of India's imports (pct.) 9.9 8.4 11.5 12.1 U.S. bilateral aid - Economic 131 172 149 155 Military Education (IMET) 0.3 0.3 0.15 0.15 Major U.S. exports (1993): Aircraft and Components (881); Machinery (233); Fertilizers (171). Major U.S. imports (1993): Diamonds (1,243); Textiles (1,067) Note: Indian Fiscal Year is April 1 to March 31; GDP in rupee terms based on 1980 prices; Nominal GDP in US Dollars based on current rupee values converted at annual average exchange rates; external debt excludes debt owed to Russia; U.S. trade and investment data for calendar years. Sources: U.S. Department of Commerce, World Bank, Reserve Bank of India, GOI Economic Survey, and Centre for Monitoring Indian Economy. SUMMARY A strong showing at state-assembly elections in the autumn of 1993 has strengthened the ruling Congress (I), helping it achieve an absolute majority in the Lok Sabha (lower house) for the first time since taking office and instituting radical economic reforms in July 1991. Prime Minister Rao says he will carve out a "middle path" for India's development policies, while implementing sensitive structural reforms. The 1994/95 budget projects an unexpectedly high fiscal deficit, and focusses on tax reform, increased spending for infrastructure development, education and job creation. Record foreign exchange reserves have prompted pre-payment of a portion of outstanding IMF loans. With ten states scheduled for elections in the next nine months, some observers complain political priorities will blunt economic policies in the near future. In 1993/94, real GDP grew by about four percent and is projected to grow by five percent in 1994/95, but businessmen and economists are concerned about the return of double-digit inflation. Steps to moderate prices through imports of sugar, cotton and edible oils have yet to curb overall inflation, but commodity prices are stable. Industrial production is climbing and may reach 6-8%, and crude output that stagnated the last two years is rising. India attracted over $5.0 billion in 1993/94 from portfolio and direct investment that stimulated capital markets and helped refinance Indian industry. Soft international crude prices helped hold India's imports to a modest increase, resulting in a trade deficit of $1.45 billion in 1993/94, down from $4.1 billion the previous year. Exports more than kept pace, growing 20%, and should be able to keep up with anticipated import growth. The U.S. remains India's major trade and investment partner; the Prime Minister visited the United States in May 1994, emphasizing economic ties. Major exports from the U.S. are aircraft, machinery, and high-tech products. Principal Indian exports to the U.S. include diamonds, textiles, software and cashew nuts. Two-way trade in 1994 is projected to exceed usd 8.0 billion, up from usd 7.3 billion in 1993, when India recorded a $1.8 billion trade surplus. The most significant areas for U.S. investors are likely to be in the infrastructure sector, particularly in power generation; petroleum exploration and development; air, land and sea transportation; financial services; and telecommunications. THE CURRENT SITUATION Prime Minister Rao's statement at the World Economic Forum in Davos in December 1993, that India will carve out a "middle path" for its development policies and the reflationary 1994/95 budget mark the conclusion of stabilization in the reform program, and the beginning of gradual structural reform measures that reduce the role of the public sector and open the economy to international competition. The Prime Minister said in the "new found enthusiasm for change, governments should not go overboard and plunge large chunks of their people into mass misery." The new budget emphasized the focus on social (and political) issues by acknowledging an unexpectedly high fiscal deficit of 7.4% for 1993/94 and projecting a 6-percent deficit for 1994/95, while significantly boosting spending for education, employment and rural development. India's external sector has dramatically improved since the payments crisis of 1991; record foreign exchange reserves now exceed $15 billion. The inflow of funds has given policy makers breathing space not previously available, but has also sharply increased liquidity, leading to inflationary expectations. Many observers expect reforms will focus on implementing policy changes announced earlier, rather than new initiatives. We expect progress in the medium term will be in financial-sector reforms; restructuring the public sector; revising legislation and regulation to promote efficiency; opening the economy to global competition through trade and investment; and expanding opportunities for the private sector. With ten states scheduled for elections in the next nine months, the Government has come under fire for concentrating on political issues to the detriment of the reform program. Indian business also complains that foreign investors receive preferential terms. Macroeconomic Developments: The sixth successive year of normal monsoon rains in 1993 contributed to real GDP growth of 3.8% in 1993/94, down from 4.6% the previous year. Annual GDP growth during the 1980's averaged 5.4%. Industrial production, though, has been stagnant since measures to reduce aggregate demand were imposed in 1991 to combat the balance of payments crisis. A favorable monsoon in 1994, in tandem with recent signs of a recovery in industrial output, could produce five percent growth in 1994/95. India's gross domestic savings rate remains firm at 22-23% of the GDP. Although this rate is high by many developing-country standards, it is well below the 30% and higher rates prevailing in Southeast Asia and China. In addition, low rates of productivity retard overall growth. Despite a low per capita GDP (usd 300), India offers a significant market for consumer products with a middle class estimated to be about 40 million households in urban and rural areas with disposable income. In terms of purchasing power parity, the Centre for the Advanced Study of India says the economy is the world's seventh largest. Population Profile: Although fertility rates in several states have declined, India's population -- now estimated at 891 million and growing 2% per year -- will reach the billion mark by the end of the decade and could overtake China as the world's most populous country during the next century. It may not stabilize until it reaches between 1.8 to 2.1 billion by the year 2050. There are over 25 million births annually, with a net population increase of approximately 18 million people. The two fastest growing segments of Indian society are the under-15 and the over-60 age groups. Together they account for 42% of the population, and represent a large and growing burden on the country's wage earners. Recent estimates suggest roughly 350 million people are food insecure. This highlights the need for the economy to generate substantial employment to spread the benefits of development while raising living standards for all Indians. Public Enterprise Disinvestment: To restructure its public sector and to generate revenue, the Rao Government has been selling minority stakes in selected public enterprises (known in India as PSU's or public sector undertakings) since IFY 1991/92, when it raised Rs 30.4 billion (USD 1 billion). In 1993/94, such sales yielded Rs 23 billion, short of the Rs 25 billion target. The 1994/95 budget projects an income of Rs 40 billion from continued sales. The Indian business press speculates that future sales of selected public-sector firms may allow the government's share to fall below 51%. Maruti Udyog, a state-owned joint venture with Suzuki, already is 51-percent owned by the Japanese partner. Fiscal Deficit Up: Following stabilization efforts in 1991, the fiscal deficit, which averaged 8.2% annually during 1985-90, was held under six percent in 1991/92 and 1992/93. The 1993/94 fiscal deficit shot to 7.4%, well over the 4.7% target. The 1994/95 budget projects the fiscal deficit to be 6%, but counts heavily on sharply increased industrial production, steady agricultural output, and increased revenues from a rationalized tax system. Key tax changes include the first ever tax on some services (five percent on telephones, non-life insurance premiums, stock commissions). The corporate tax rate is unified and reduced to 40% on domestic firms (45 and 50% previously); the rate for foreign firms is down 10 percentage points to 55%. The maximum import tariff is 65% (from 85%), tariffs on project imports and general capital goods are under 30%. Breaking new ground, the budget limits the amount the government can borrow from the central bank, forcing it to borrow at market rates starting in 1997/98. Monetary Policy: As foreign exchange reserves rose sharply in 1993, money supply grew 17.8%, compared to 15.7% in 1992/93. This, along with sharp increases of administered prices, has contributed to inflation. The monetary-policy response has been to raise the Cash Reserve Ratio (CRR) from 14 to 15%, and banks have been asked to tighten loan procedures. In addition, the RBI will sterilize some of the inflow of foreign exchange to counter the expansionary effect on the money supply. On March 1, the floor for commercial lending was modestly reduced from 15% to 14% on loans of over three years. Including bank charges, effective interest rates start at 18% per annum. Interest rates for bank deposits have been simplified and the current ceiling for one-year certificates of deposit is 10%. Private banks have made a comeback after two decades of nationalization, as Finance Minister Manmohan Singh presided at the opening of two new private banks in April. Following an administrative ordinance in October, the State Bank of India (SBI), the largest public-sector bank, took on private equity, diluting its government ownership to 70%. Parliament passed legislation on May 10 permitting all other nationalized banks to seek private equity capital, but officials said there was no intention to denationalize any banks. The Government set up tribunals to hasten settlement of bad debts held by banks. Upsurge in Inflation: The 1994/95 fiscal year began with double-digit inflation (10.5%), fueled by higher administered prices for foodgrains, sugar, petroleum products and freight rates, and excess liquidity. As a counter, the government allowed imports of palm oil (at 65% tariff rate for private firms and 20% for state firms) and duty-free imports of sugar and cotton. It is also expected to have over 30 million tons of stored food grains following wheat procurement in early June, which can be used to help dampen prices. Accelerating prices were apparent from August 1993, as the annual point-to-point inflation rate passed eight%. Inflation stood at 11.2% on April 23. On May 13, the RBI Governor said "the paramount objective of monetary policy in 1994/95" is to reduce inflation by four percentage points. Capital Markets Surge: Nominal capital raised on stock exchanges by private-sector firms increased from Rs 2 billion in 1980/81 to over Rs 200 billion in 1993/94. Equity (and debt) capital are important sources of financing for domestic firms, drastically reducing the previously dominant role of commercial banks and state-owned financial institutions. Foreign Institutional Investors (FII) -- many of them American -- poured in an estimated usd 1.6 billion of portfolio funds in 1993/94. Nevertheless, lack of transparency, inadequate custodial services, and delays in delivering shares have been major bottlenecks. The Securities and Exchange Board of India (SEBI) has introduced several reforms, notably banning the "badla" (forward) trading system. This single step has curbed turnover at the 19 stock exchanges, but SEBI has asked the stock exchanges to formulate an alternative forward-trading system. Planning: The 1994/95 plan increases spending for social sectors, concentrating on rural development, education, health and family welfare, but three-fourths of government investment funds (Rs 517.9 billion in 1994/95) go to basic industries like power, transport and communications. Spending on social services is projected at Rs 73.8 billion (10.5% of central plan) in 1994/95, up 15% over the previous year. A sharp increase of 40% to Rs 60.4 billion in 1994/95 is allocated for rural development, largely to alleviate rural poverty and to create jobs. Most infrastructure industries are now open to private investment, both domestic and foreign. Foodgrain Output: Nurtured by normal monsoon rains for the sixth straight year, India produced 180.5 million MT of foodgrains, almost unchanged from record levels in 1992/93. Bulging state-owned food stocks (22 million MT on April 1, 1994) pose a serious storage problem. While the Government is considering wheat exports, low international prices are likely to limit the volume of exports, forcing the Government to sell its stock on the saturated domestic market. Sugar production has declined and India is expected to import 500,000 tons between May and November 1994. Cotton output also declined, leading to imports for domestic use. Despite a record oilseeds crop in 1993/94, the government permitted palm-oil imports for the second successive year to dampen prices. A favorable monsoon this year would improve the agricultural prospects in 1994/95 and could spur industrial growth, particularly of food processing industries. Industrial Growth Picks Up: Following almost two years of stagnation, industrial growth began to recover in the last half of 1993, producing growth of 2.6% from April to December 1993. Capital-goods production, though, fell 14% in the same period, due to cuts in government expenditure and increased competition from abroad. On the positive side, basic industries, along with export-oriented industries such as jute, tobacco, and textiles performed well and the financial performance of the corporate sector was excellent during 1993/94. Industrial output for 1993/94 is estimated to be around three percent, compared to 1.8% in the previous year. The annual growth rate averaged around eight percent during the 1980's. Prospects for growth during 1994/95 are promising, estimates run from six to eight percent. Power Generation Accelerates: Electricity generation grew 7.3% to 323 billion kilowatt hours in 1993/94. Capacity utilization in 1993/94 reached a record 61%, compared with 57.1% the previous year. Poor quality coal and deficiencies in the generating equipment are largely responsible for low capacity utilization. Despite improved generation, power shortages range between 7-8% with severe shortages of up to 50% in some states. To promote private investment in power generation, India offers a range of incentives from higher than normal debt/equity ratios, to a guaranteed minimum return of 16% on foreign equity investment. The government has received 75 proposals from foreign and Indian firms to install additional capacity of 32,000 MW at an estimated cost of Rs 1.0 trillion, and to modernize several existing plants. Improved operating performance by the state electricity boards (which are solely responsible for transmission and distribution, and collection of revenue from end-users) will be a key factor in improving financial returns. Oil Output Stagnates: Crude production stagnated at around 27 million MT for the second year. It peaked at 34.1 million MT in 1989/90. The decline over the last four years is attributed to reservoir constraints in the Bombay High fields, and civil unrest in Assam. Crude output in 1994/95 is projected at 32 million MT; most of the increase is anticipated from the three major offshore projects at Bombay High. To augment crude production, the government introduced year-round bidding for exploration by private firms, and received bids for 22 blocks out of 35 for exploration in September 1993. It also received a positive response to its first offer of speculative surveys for new blocks. The Oil and Natural Gas Commission (ONGC), India's premier petroleum company, has now become a public limited company with greater financial autonomy. Its main goals are to increase refining capacity from 53 million MT to 65 million MT by 1996/97, and to 119 million MT by the turn of the century. Private firms are now allowed to compete with public-sector firms to sell kerosene and cooking gas. International oil firms have also been invited to establish retail outlets to sell gasoline and diesel to consumers; some commentators believe this policy change is a precursor to further decontrol of the oil sector. Rising Coal output: Coal production grew 3.3% to 246 million MT in 1993/94 and is projected to be 253.6 million MT in 1994/95. Quality remains a problem, with mines supplying "dirty" and oversized coal. Coal stocks amounted to 45.1 million MT in February 1994, up from 44.6 million MT a year ago. The 1994/95 budget has reduced the import duty on coke from 85% to 25% to reduce the cost of steel, while also injecting some competition in the coal industry. To modernize this vital sector, private-sector participation is being encouraged. The Ministry of Coal has shortlisted about 20 private firms for establishing coal washeries, and has also offered 13 coal blocks for captive use by private-sector firms (Indian and foreign) for production of power, and iron and steel. Efforts also continue to promote mechanization in coal mines. Foreign firms may hold 50% of ventures for commercial production of minerals. 13 minerals, including iron ore, gold, and diamonds -- previously reserved for the public sector -- are now open to private firms. Transportation: Indian Railways moved 362.1 million MT freight traffic during 1993/94, up from 350 million MT the previous year. Most industrial inputs (iron ore, coal, cement, iron, steel), as well as foodgrains, move by rail, while trucks carry perishable and high-value goods. The rail-traffic goal for 1994/95 is 380 million MT, with plans to introduce fast freight trains to meet the target. Truck transport is almost entirely operated by the private sector, while passenger traffic is handled both by the public and private sectors. Cargo handled at major ports reached 179.5 million MT in 1993/94, an increase of 7.8% over the previous year. Outdated equipment and poor management continue to affect productivity. EXTERNAL SECTOR On April 15, India was among 125 countries that signed the Uruguay Round Agreement of the General Agreement on Tariffs and Trade (GATT). Opposition parties have vigorously opposed the Agreement, claiming that it will restrict India's sovereignty. India plans to ratify the treaty in 1994. Emphasis on Trade: The annual trade-policy statement on March 31, introduced a number of modest regulatory and procedural changes. It expanded the list of items for import under special import licenses (SIL); reduced the minimum value addition under the advance customs clearance permit from 15% to 10%; and permitted imports of second-hand machinery with a minimum residual life of five years under simplified customs clearance procedures. Foreign Investment Up: Foreign-investment approvals totaled Rs 88.6 billion (usd 2.84 billion) in 1993, compared to Rs 38.9 billion the previous year. The U.S. share of approvals was 39%, followed by the U.K. (7.0), the UAE (4.6), Thailand (4.2) and the Netherlands (3.6). According to a Government survey, The inflow of foreign direct investment in 1993 reached usd 571.5 million, up sharply from usd 261 million in 1992, and usd 155 million in 1991. The US accounted for 26.8% followed by the U.K (13%), the Netherlands (6.3%), and Switzerland (6%). Non-Resident Indians (NRI) -- mostly from the U.S. -- accounted for 32.5% of the total. Exchange Rate Developments: India unified its exchange rate on March 1, 1993, and has seen the rate remain extremely stable. The RBI purchased $13.75 billion during 1993/94 to maintain the rate at a very steady rupee-dollar rate of 31.3675 through May 1994. One year ago, the rate was 31.2110. Given this history, on March 1, 1994, the government liberalized foreign exchange access for travel, education, and medical expenses, though limits still exist. The stable exchange rate and relaxed rules on foreign exchange transactions, are expected to minimize illegal transactions. Exports Up: Indian exports, which stagnated around usd 18 billion between 1990/91 and 1992/93, grew by 20.4% to usd 22.6 billion in 1993/94. Diamonds and jewelry (a function of entrepot trade) were the leading exports at usd 4.13 billion, accounting for 18.3% of the total. Other significant exports included ready-made garments, fabrics, engineering products, and marine products. A favorable and stable exchange rate plus tax-free export incomes helped push up exports. The government estimates export growth will rise to 25% in 1994/95; some commentators believe a 25-percent growth rate is too optimistic, but most projections range from no less than 15-percent growth to 30%. Imports Also Up: The growth rate for imports was flat until December 1993, when it started accelerating to reach an estimated 5.1% during 1993/94; total imports were usd 24.1 billion. Of this, petroleum and oil product imports accounted for about 25%. With industrial growth picking up in 1994/95, non-oil imports have begun to climb, but are unlikely to increase the trade deficit significantly beyond the usd 1.5 billion recorded in 1993/94. The current-account deficit in 1993/94 was only one percent of GDP and may be lower this year. India's international reserves, excluding gold, reached a record usd 15.5 billion at the end of 1993/94, up from usd 6.7 billion the previous year. Inflows from portfolio investors, direct investment, and global depository receipts (GDRs) amounted to nearly usd 5 billion. Encouraged by record foreign-exchange reserves, the government pre-paid usd 1.13 billion to the IMF in April 1994 and encouraged private firms to prepay their overseas commercial loans. Although the government is comfortable with a reserve level of usd 15 billion, many observers believe the reserve level in 1994/95 could exceed usd 20 billion. The government continues to favor limiting external commercial borrowings at usd 3.0 billion annually and discourages loans with a maturity of less than five years. India's credit rating has been upgraded from BBB to BBB+ by the Japan Bond Research Institute, although U.S. rating agencies have not changed their assessments. IMPLICATIONS FOR THE UNITED STATES Prime Minister Rao visited the United States in May 1994, spending a considerable amount of his time meeting with U.S. business leaders. He said India's economic reforms are "irreversible." He invited American firms to participate in India's economic development. Also in May, a long-awaited telecommunications policy liberalizing access to India's potentially huge market was announced, and stronger copyright legislation was passed by Parliament. Economic liberalization thus continues to expand opportunities for U.S. firms. By signing the Final Draft Act of the GATT Uruguay Round on April 15, 1994, India signalled future opportunities for boosting trade and investment will not be prevented by inadequate protection of intellectual property rights. Of particular interest to U.S. research-based businesses, India has committed itself to enact stronger patent legislation by 2005. The Rao Administration's 1994-95 budget again lowered tariffs and also reduced certain corporate and individual taxes. The GOI will approve U.S. direct investment in infrastructure development, including electric power generation, oil and gas exploration and development, and telecommunications services. U.S. investors will find a welcome change in attitude in many GOI agencies and state government offices. Policy changes and licensing requirements are made through public announcements, which have increased the transparency of the process and the availability of information, though uncertainties remain. Most U.S. firms still require a local representative to keep up with local press reports, announcements, and competitors' activities. Fears of hostile takeovers and domination of the economy by foreign firms are still prevalent, but much less so than in the recent past. Local industries have legitimate concerns about losing their previously protected domestic markets to foreign competition. Businesses which have been sheltered behind high tariff walls and a centrally-planned industrial-licensing regime are increasingly exposed to price, quality, and service competition. The outcome will expand availability of goods and give Indian firms incentives to look for foreign investment and technology. On balance, we remain cautiously optimistic about prospects for increased U.S. exports and investment. Investment: The Reserve Bank of India, operating under transparent rules, will approve foreign investments of up to 51 percent in 34 broadly-defined industries. In general, consumer goods and defense industries are excluded from this list. Dividends paid in hard currency to foreign investors must be balanced by exports which earn foreign exchange in 22 specified consumer industries. India's industrial policy changes have limited license requirements to 15 sectors, but these continue to limit investments in consumer goods. Private firms may now bottle and sell natural gas and kerosene. During 1993, U.S. firms obtained USD 1.1 billion worth of investment approvals, the largest share. The U.S. remains the leading source of technology and finance in international joint venture businesses. Foreign Institutional Investors (FII) can invest in securities traded in primary and secondary markets, without limits on investment volumes or minimum holding periods. FII's collectively are limited to a total of 24 percent of issued capital in any single firm; further, a single FII may hold no more than 5 percent of a firm's issued shares. FII's are not permitted to loan securities or sell short; short-term capital gains are taxed at 30 percent. Trade: The U.S. is India's largest trading partner. Total U.S.-India trade in 1993 reached usd 7.3 billion, with India enjoying a trade surplus of USD 1.7 billion. In 1993, India's imports from the U.S. accounted for 11.5% of its global imports and the U.S. purchased 19% of India's total exports. Two-way trade is expected to cross usd 8 billion in 1994. Main U.S. exports are high-tech products and sophisticated machinery, aircraft parts and avionics, fertilizers and metal scrap. Indian exports to the U.S. include diamonds, textiles, cashew nuts, and iron and steel products. Intellectual Property Rights: Inadequate protection of intellectual property rights, particularly for pharmaceuticals, trademarks, and copyrighted material, has been a source of controversy between India and the United States. In 1991, India was designated a "priority foreign country" under the Special-301 provision of the 1988 Trade Act. In 1992, following unsuccessful attempts to resolve these differences, the U.S. Trade Representative (USTR) withdrew India's eligibility for Generalized System of Preferences (GSP) benefits on usd 80 million in Indian pharmaceutical and chemical exports to the U.S. India was again designated a "priority foreign country" in 1993. However, India's bid to become globally competitive is leading to significant shifts in legislation and enforcement efforts. The Indian Parliament passed new copyright legislation in May 1994, and is expected to approve amendments to current trademark legislation later in the year. Furthermore, India's commitment to the Uruguay Round of GATT trade negotiations will require stronger patent laws not later than 2005. Best Prospects for U.S. Exports: India's market offers commercial opportunities for U.S. exports of aircraft and parts; oil and gas-field machinery; electronic and scientific equipment; telecommunications equipment and services; medical equipment; chemical-production machinery; machine tools and metal-working equipment; computer software and services; mining equipment; computers; peripherals, and specialized CAD, CAM, and CAE systems; biotechnology; port and shipbuilding equipment; printing and graphic-arts equipment; hotel and restaurant equipment; railroad equipment; industrial process controls; environmental technologies; and general industrial equipment; and financial services. Commercial And Trade Promotion Assistance: U.S. firms considering entering or increasing their sales in the Indian market find participation in events sponsored by the U.S. Department of Commerce and the U.S. and Foreign Commercial Service (US&FCS) in India to be excellent vehicles for promoting business in India. Interested firms should contact the Office of South Asia (telephone: (202) 482-2954 or fax: (202) 482-5330) at the U.S. Department of Commerce, International Trade Administration, Washington, D.C.; the nearest district office of the U.S. International Trade Administration (located in major cities and listed in the U.S. Government pages of the telephone directory); or the US&FCS offices at the U.S. Embassy in New Delhi (telephone: +91-11- 600-651 or fax: +91-11-687-2391), one of the U.S. Consulates General in Bombay, Calcutta, or Madras, or the US&FCS field office in Bangalore.