APPENDIX B BEST PROSPECT DATA FOR AGRICULTURE AND INDUSTRY SECTORS: A) Rank of Sector: 1 B) Name of Sector: Electronics Components C) Three-Letter ITA Industry Sector Code: ELC 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. D) Total Market Size (U.S.$ Millions): 1020 1206 1440 E) Total Local Production (U.S.$ Millions): 850 977 1124 F) Total Exports (U.S.$ Millions): 110 121 139 G) Total Imports (U.S.$ Millions): 280 350 455 H) Imports from the U.S. (U.S.$ Millions): 145 180 235 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The U.S. is a leading supplier of electronics components to India, and accounts for 52 % of India's total imports. Singapore, Japan, Taiwan, South Korea and EC are the other major suppliers. India's electronic components industry is growing at an estimated annual rate of 30%. Entertainment electronics products, domestic information technology, industrial electronic components, and the telecommunications sector are the major contributors to this growth. The GOI production target for electronic components for the year 1996-97 is set at an estimated value of $1,354 million. This will require an investment of $548 million. If the current demand-supply gap of 35% in electronic components in India is to be reduced to a level below 10%, this will entail a minimum investment of $2 billion by the year 2000. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Entertainment electronics 455 Industrial electronic components 375 Electromechanical components 125 Medical electronic components 275 Passive components 200 FCS/NewDelhi: SM A) Rank of Sector: 2 B) Name of Sector: Computer Software Related Services C) Three-Letter ITA Industry Sector Code: CSF D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 325 455 630 E) Total Local Production (U.S.$ Millions): 340 500 750 F) Total Exports (U.S.$ Millions): 119 195 340 G) Total Imports (U.S.$ Millions): 104 150 220 H) Imports from the U.S. (U.S.$ Millions): 63 90 130 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Indian software firms concentrating on export markets perform subcontracting job work for their foreign principals. Several U.S. firms such as Texas Instruments have their own set up of 100 per cent owned software developmetn centres to meet their corporate inhouse requirements or have set up shops to subcontract job-work to Indian software firms. Indian software and foreign owned firms design, value, add/or customize imported software for specific applications. Since the majority of the software is imported, firms operating in India work in consultation around source codes provided by their foreign principals. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Designing 315 Value addition 180 Cutomizing 135 FCS/Madras:LR A) Rank of sector: 3 B) Name of sector: Port Construction C) Three-Letter ITA Industry Sector Code: CON D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 182 284 536 E) Total Local Production (U.S.$ Millions): 200 290 500 F) Total Exports (U.S.$ Millions): 54 58 64 G) Total Imports (U.S.$ Millions) 36 52 100 H) Imports from the U.S. (U.S.$ Millions): 6 7 15 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief comments: Port construction has got a boost largely because of the large power and petrochemical projects being set up in the private sector and the very recent privatization of major ports by the Government of India. The opening up of port construction and management to the private sector is very much new. Therefore, no historical data is available to provide a trend. Coupled with the fact that such projects have a long gestation period, estimated figures are likely to vary from actuals. Jawaharlal Nehru Port Trust (JNPT), which is a major container port has an import content of U.S.$ 135 million and material handling equipment has been largely supplied by the Korean and Japanese suppliers. Of the 11 major ports recently opened to the private sector, JNPT will be the first to undertake privatization of its operations. There should be scope for American companies to participate actively in a joint venture with a suitable Indian firm to undertake this project. Considering the large bulk imports of fuel for the various power projects, there is tremendous scope for setting up bulk material handling and storage facilities in the new ports planned to be set up along the western coast of India. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Material handling equipment 145 Engineering/construction consultancy 30 FCS:BOMBAY:RKC A) Rank of Sector: 4 B) Name of Sector: Plastic Materials & Resins C) Three-Letter ITA Industry Sector Code: PMR D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 3000 3360 4212 E) Total Local Production (U.S.$ Millions): 1345 1540 1993 F) Total Exports (U.S.$ Millions): 145 250 265 G) Total Imports (U.S.$ Millions): 1800 2070 2484 H) Imports from the U.S. (U.S.$ Millions): 90 108 140 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Pepsi Foods India in collaboration with Indian Organics Ltd. is setting up a plant in Madras for producing 20,000 metric tons of plastics per annum. Pepsi will utilize its production for their packaging and bottling requirements in India. SABIC of Saudi Arabia, Korea, Brazil, Romania and Mexico are the major foreign suppliers of PVC to India. GE Plastics and Dow Chemicals are partial suppliers of polycarbonates and engineering plastics to the domestic market. The U.S. has not been a major supplier of plastic resins to India so far but U.S. exports of these commodities can rise if they are marketed aggressively. The major Indian producers of polymers are already setting up additional facilities. Since engineering plastics is imperative in India, this will be an area of interest to international companies. The present domestic consumption of engineering/performance plastics is relatively low due to high costs. However, the recent reduction in tariff barriers has resulted in lower costs (the present tariff being 85 percent - 65 percent import duty plus 20 percent countervailing duty). With growth accelerating in sectors like automotives, defense, aviation, and domestic plastic industries, performance plastics (ABS, SAN, nylon, PMMA, PET/PBT, PC, Poly Acetal, PPO - Polyphenylene oxide, PPS) are expected to grow at more than 20 percent over the next 5 years. India would need to set up 3/4 world scale PE plants, 2/3 PVC and PP plants, and at least 2 PS plants and a number of other production facilities for performance and engineering polymers. Due to shortage and high cost of polymers, plastics recycling is gaining momentum in India. Proper legislation and better technology is required to increase recycling. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Commodity plastics 3719 Engineering plastics 311 Thermosets 182 FCS:NEW DELHI:VDS A) Rank of Sector: 5 B) Name of Sector: Drugs & Pharmaceuticals C) Three-Letter ITA Industry Sector Code: DRG D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 2066 2580 3428 E) Total Local Production (U.S.$ Millions): 2117 2637 3428 F) Total Exports (U.S.$ Millions): 454 540 702 G) Total Imports (U.S.$ Millions): 403 483 627 H) Imports from the U.S. (U.S.$ Millions): 141 157 181 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief comments: The Indian drugs and pharmaceutical industry is entering a phase of boom. This may sound rather paradoxical in view of the elusive drug policy of the Government of India and the implications on acceptance of the final act of GATT (Dunkel text in 1995). The pharmaceutical industry is one of the major mass consumption goods sector which has been left untouched by the liberalization measures of the Government. With most of the major multinationals uninterested in the Indian market, Indian companies have established a very strong presence in this sector. The recent lowering of the import duties from 85 to 50 percent and the expected new drug policy will be welcome measures for foreign companies wanting to invest in this sector. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Formulations 2910 Bulk drugs 518 FCS:BOMBAY:SI A) Rank of Sector: 6 B) Name of Sector: Hotel and Motel Industry C) Three-Letter ITA Industry Sector Code: HTL/TRA D) Total Sales (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1475 1710 1983 E) Sales by local firms (U.S.$ Millions): 590 684 893 F) Total Export Sales (U.S.$ Millions): NIL NIL NIL G) Sales by foreign firms (U.S.$ Millions): 885 1021 1190 H) Sales by U.S. firms (U.S.$ Millions): 87 103 119 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Tourism is the largest net foreign exchange earner for the country. With increasing foreign business interests and an increasing number of domestic travelers to India, the hotel and motel industry has witnessed an annual growth rate of more than 16% last year. Tourist traffic is expected to reach 2 million arrivals by 1995, which will result in a requirement of 59,000 rooms in the organized hotel industry. The existing demand-supply gap of almost 10,000 rooms will need an investment of over $294 Mil. U.S. companies are facing stiff competition from major Indian and foreign hoteliers for a larger market share. However, many U.S. and foreign companies have already tied-up with prominent Indian companies for setting up new hotels, motels and holiday resorts. Several international chains like the Sheraton, Holiday Inn, Inter-continental, Hyatt, Radisson, Best Western, Days Inn, Quality Inn, Ramada Inn Meridien, Accor, South Pacific Hotel Corp. (Australia) and Leela Penta are expanding their hotel network in India. The guidelines for setting-up and operating hotels, travel agencies, tour operators are set by the Indian Tourism Department. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Deluxe and five star hotels 800 Four star hotels 200 Two and three star hotels/motels 800 Small motels and guest houses 150 FCS:NEWDELHI:OPG A) Rank of Sector: 7 B) Name of Sector: Biotechnology C) Three-Letter ITA Industry Sector Code: BTC D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 229 287 366 E) Total Local Production (U.S.$ Millions): 126 151 188 F) Total Exports (U.S.$ Millions): 7 7 8 G) Total Imports (U.S.$ Millions): 110 143 186 H) Imports from the U.S. (U.S.$ Millions): 44 57 74 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Hybrid seeds, tissue culture, waste management, biofertilizers, genetic engineering and medical diagnostic are the fastest growing segments in India. Although the U.S. is a major exporter of biotechnology and biochemical equipment to India, it has significant scope to expand its market share through joint ventures and technology transfer agreements. The Indian private sector is interested in joint research in biotech products and services with U.S. companies especially in the areas of diagnostics, waste management and genetic engineering. Third country competition is stiff especially from the Netherlands, Sweden, and Japan. Israel too is a major source of technology for India. The Indian Government's acceptance of the Dunkel proposal and the GATT agreement has opened new vistas for U.S. exports. The Government has reduced tariff barriers making U.S. exports much more competitive than before. Tariffs are expected to be reduced even further. The Indian Patents Act will have to be amended to recognize the 20-year product patents for drugs, foods, and chemicals. In the Indian food processing industry for instance, several foreign collaborations have impacted the biotech market for enzymes. Today India's top priorities are to increase food production and upgrade the agro- based industry. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Human and animal health including diagnostics, vaccines, antibiotics by fermentation, bioactive proteins, targeted drugs blood products, etc. 166 Agriculture, including plant tissue culture, hybrid and artificial seeds, biofertilizers, biopesticides, poultry feed additives, aquaculture biotechnology, embryo transfer technology, etc. 60 Industrial products by fermentation including industrial enzymes, organic acids, amino acids 77 Forest biotechnology (tissue culture plants and artificial seeds). 3 Biotechnological methods of effluent treatment including efficient microbial concentrates 3 and methods. Composting technology including 2 vermiculture technology. Microbial leaching/beneficiation of ores 13 Others 40 FCS:NEW DELHI:VDS A) Rank of Sector: 8 B) Name of Sector: Refinery/Petrochemical Equipment C) Three-Letter ITA Industry Sector Code: CHM D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 535 697 906 E) Total Local Production (U.S.$ Millions): 440 572 743 F) Total Exports (U.S.$ Millions): 66 85 110 G) Total Imports (U.S.$ Millions): 161 210 273 H) Imports from the U.S. (U.S.$ Millions): 40.2 52.5 68.2 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Government of India plans to increase significantly the present oil refining capacity of 52 million MTs in 1992-93 to 82 million MTs by 2000 A.D. This substantial increase in the refining capacity requires over $6.913 billion in additional investment; and estimated 40 per cent of this will be in the production equipment. The Government allows the private sector a role in establishing grass-root refineries and over six projects (J.K. Synthetics, Madras Refineries, Gas Authority of India Ltd., Haldia Petrochemicals, Vizag Petrochemical Complex and RPG Enterprises) are in various stages of development. These projects are expected to contribute to the growth of the refinery equipment procurement in India. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Petrochemical refinery equipment 830 Specialty instruments used in refineries 76 FCS:MADRAS:RS A) Rank of Sector: 9 B) Name of Sector: Hazardous Waste-Handling Equipment C) Three-Letter ITA Industry Sector Code: POL D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 62 91 132 E) Total Local Production (U.S.$ Millions): 48 62 83 F) Total Exports (U.S.$ Millions): 4 6.8 12 G) Total Imports (U.S.$ Millions): 18 35 61 H) Imports from the U.S. (U.S.$ Millions): 5 13 28 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Government of India has recently passed the Hazardous Waste Act. This important legislation has developed a new market segment. Major investment in the chemical, fertilizer, pharmaceutical and petrochemical sectors will increase the demand for solid and liquid hazardous waste handling-treatment equipments and technologies. With ISO 14000 to be implemented by 1995-96 the number of companies going in for hazardous waste treatment will increase significantly. An increasing number of Indian pollution control equipment manufacturers are seeking representation, technology transfer and joint venture arrangements with manufacturing base in India from foreign companies for these equipment/technology. U.S. presence is dominating the local market through joint ventures with major Indian companies. U.S. has a leading edge in environmental technologies and has unlimited expertise in solid-liquid hazardous waste treatment technologies/equipments. U.S. Faces stiff competition from the Germans, French and the U.K. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Chemicals, pesticides, agrochemicals pulp and paper, mining industry (solid and liquid) 43 Electroplating/heavy metal industry 12 Petroleum industry 35 Semiconductor/PCB's 7 Domestic solid waste (land fill sites) 35 FCS:BOMBAY:RKC A) Rank of Sector: 10 B) Name of Sector: Security & Safety Equipment C) Three-Letter ITA Industry Sector Code: SEC D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1270 1358 1480 E) Total Local Production (U.S.$ Millions): 850 875 930 F) Total Exports (U.S.$ Millions): 5 7 10 G) Total Imports (U.S.$ Millions): 425 490 560 H) Imports from the U.S. (U.S.$ Millions): 43 50 65 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The market for security and safety equipment is growing due to the increasing security concerns in the country. The government and banking sectors are still the primary users of security and safety equipment. However, in the next 2-3 years a substantial requirement will come from the industrial and manufacturing sectors. A major third country supplier of both equipment and services is now Israel. Germany, Italy, France and the U.S. are the other foreign suppliers. The U.S. share of the import market will vary from 10 to 15 percent as U.S. suppliers are not as active and aggressive in the market as the other listed third countries. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Para-military security equipment 350 Industrial security systems 325 Airport security equipment 300 Bank security systems 100 FCS:NEWDELHI:SKM A) Rank of Sector: 11 B) Name of Sector: Medical Electronics C) Three-Letter ITA Industry Sector Code: MED D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 532 667 835 E) Total Local Production (U.S.$ Millions): 229 286 357 F) Total Exports (U.S.$ Millions): 38 45 54 G) Total Imports (U.S.$ Millions): 341 426 532 H) Imports from the U.S. (U.S.$ Millions): 68.5 85.2 106.4 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Government of India attaches importance to the healthcare system and plans to make available quality health services to all by the year 2000. The GOI allows the private sector a role in the establishment of corporate hospitals. The U.S. trained doctors prefer to import medical instruments from either USA or from the authorized dealers in Singapore. The local firms such as Wipro GE Medical Systems (GE, USA); Siemens India Ltd. (Siemens AG, Germany); Philips India Ltd. (N.V. Philips, Netherlands); Larsen & Toubro Ltd. (Biocardio Electronics, Italy); Indchem ATL Ltd. (ATL, USA); Hewlett Packard India Ltd. (Hewlett Packard, USA); and Blue Star Ltd. (Bayer Technicon, USA) manufacture a range of products and the local capacity is expected to grow to meet the growing demand. These developments are expected to contribute to the expansion of the medical equipment market. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Laboratory instruments/supplies 303 Heartcare equipment 228 Surgery equipment/supplies 152 Imaging products/supplies 152 FCS:MADRAS A) Rank of Sector: 12 B) Name of Sector: Railway Modernization (Locomotive, Railway Maintenance & Telecom Network Modernization) C) Three-Letter ITA Industry Sector Code: RRE D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 2400 2775 3300 E) Total Local Production (U.S.$ Millions): 1920 2220 2640 F) Total Exports (U.S.$ Millions): 192 220 265 G) Total Imports (U.S.$ Millions): 410 470 540 H) Imports from the U.S. (U.S.$ Millions): 83 92 102 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Indian railroad system is poised for major technological upgradation during the next several years. The Indian railways are keen to promote manufacturing facilities in the Indian private sector for their requirements of various products. Canada, France, Germany, U.K. and Japan have made significant inroads in the Indian railroad system. Given the recent restructured and liberalized investment policies (with permissible 51% foreign equity participation), and the World Bank fund support for Indian railway modernization projects, business climate is now more favorable for U.S. firms to enter the market through joint ventures. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Locomotives and rolling stock 900 Signalling and telecom systems 460 High speed tracks 295 Electrification 260 Workshop equipment 130 FCS:CALCUTTA:NC A) Rank of Sector: 13 B) Name of Sector: Pumps, Valves & Compressors C) Three-Letter ITA Industry Sector Code: PVC D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 644 730 785 E) Total Local Production (U.S.$ Millions): 520 590 640 F) Total Exports (U.S.$ Millions): 40 55 75 G) Total Imports (U.S.$ Millions): 164 195 220 H) Imports from the U.S. (U.S.$ Millions): 36 45 55 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The expansion, modernization and new project programs of the chemicals, petrochemicals, oil and gas exploration production and refining, power, steel, other metals, and other priority sectors are estimated to cost over $ 70 billion over the Indian Eighth Five Year Plan (1990-1995). The growth of the import market for special application pumps, valves and compressors, which are imported primarily for the above sectors, will depend on the actual investments on and implementation of the proposed programs. The U.S. share of the import market will vary from 20 to 25 percent over the next few years. Major competitors are Kirloskar Brothers and group companies; Worthington Pump India Ltd.; KSB Pumps Limited; Audco India Limited; Mather & Platt (India) Ltd.; Bharat Heavy Electricals Ltd.; Elgi Equipments Ltd.; Ingersoll-Rand (India) Ltd.; Holman Climax Ltd.; Carrier; Yorks; and K.G. Khosla. All the listed companies have collaborations with U.S., German, U.K., Japanese, or other European companies. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Pumps 325 Valves 250 Compressors 210 FCS:NEW DELHI:SKM A) Rank of Sector: 14 B) Name of Sector: Food Processing & Packaging Equipment C) Three-Letter ITA Industry Sector Code: FPP D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 320 410 527 E) Total Local Production (U.S.$ Millions): 251 313 392 F) Total Exports (U.S.$ Millions): 22 25 29 G) Total Imports (U.S.$ Millions): 91 122 164 H) Imports from the U.S. (U.S.$ Millions): 18.2 24.4 32.8 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The food processing and packaging industry sector is a high priority industry sector receiving incentives and support from both the Government of India and state governments. This industry sector focuses on both domestic and export market and most of the new ventures plan to import processing equipment to meet the international quality standards. The local leading ventures such as Alfa-Laval India Ltd., Britannia Engineering Products & Services Ltd., and Killburn Engineering Ltd. manufacture a range of food processing equipment and some of the medium scale Indian firms have plans to join hands with Indian collaboters to manufacture latest equipment for the Indian market. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Food preservation machinery 150 Fruit/vegetable processing equipment 127 Food processing equipment 125 Food packaging equipment 125 FCS:MADRAS:PV A) Rank of Sector: 15 B) Name of Sector: Mining Technology & Equipment C) Three-Letter ITA Industry Sector Code: MIN D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 663 765 895 E) Total Local Production (U.S.$ Millions): 580 675 780 F) Total Exports (U.S.$ Millions): 28 34 40 G) Total Imports (U.S.$ Millions): 111 124 145 H) Imports from the U.S. (U.S.$ Millions): 28 33 38 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: India has been a small market for U.S. exporters due to its marked preference for procuring mining equipment under bilateral aid programs. The U.K., Germany and France, with supporting funds from their respective governments, have aggressively expanded their respective technical orientation. However, given the recent restructured and liberalized trade and investment policies of the government (with permissible 51% foreign equity participation), the resulting business climate is now more favorable for U.S. firms to enter the market through joint ventures. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Mining locomotives 215 Coal washeries 150 Flotation machinery 175 Hard core crushers 130 Sedimentation machinery 120 Materials handling equipment 110 FCS:CALCUTTA:NC A) Rank of Sector: 16 B) Name of Sector: Instrumentation - Process Controls C) Three-Letter ITA Industry Sector Code: PCI D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 198.30 240.80 294 E) Total Local Production (U.S.$ Millions): 154 187 154 F) Total Exports (U.S.$ Millions): 2.70 3.20 4 G) Total Imports (U.S.$ Millions): 47 57 68 H) Imports from the U.S. (U.S.$ Millions): 18 22 28 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Major investments in power, oil and gas, chemical, fertilizer and petrochemical sectors will increase the demand for process control instrumentation in India. With the present emphasis on process control instrumentation in India, the successful microprocessor based systems are temperature scanners, sequential event recorders, data loggers, programmable controllers, closed loop controllers, and distributed digital controllers. The large scale systems are produced as per specific requirements of the end-users. However, reliance on imports continues for proprietary equipment/systems and spares to meet the modernization and expansion programs in these sectors. Major third country competition is from France, U.K., Japan, German and Italy. U.S. manufacturers have a good presence in the local market with several of them having set up local manufacturing facility. With the U.S. firms investing in several major power projects and U.S. consulting firms active in the Indian market, U.S. Manufacturers have a definite advantage over other third country suppliers. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Flow instruments 74 Pressure instruments 70 Temperature controllers 65 Microprocessor-based instruments 62 FCS:BOMBAY:RKC A) Rank of Sector: 17 B) Name of Sector: Pulp & Paper C) Three-Letter ITA Industry Sector Code: PAP D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 991 1021 1072 E) Total Local Production (U.S.$ Millions): 621 640 672 F) Total Exports (U.S.$ Millions): 35 36 38 G) Total Imports (U.S.$ Millions): 405 417 438 H) Imports from the U.S. (U.S.$ Millions): 39 43 48 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Imports are expected to rise due to India's foreign exchange build-up. Currently, about 40 percent of total market demand is met through imports which are likely to increase at a rate of 3-5 percent annually over the next three years. Pulp accounts for nearly 15-20 percent of total imports which is primarily used by the paper and paperboard industry. Major varieties of pulp imported include mechanical wood pulp, chemical wood pulp, bleached or semi-bleached coniferous pulp, pulps of other cellulosic material, and cotton liner pulp. Major pulp imports are from Canada, Finland and Germany. The Commonwealth of Independent States (CIS), Canada and Finland are the major suppliers of paper. Though U.S. exports have been around 9% of total exports to India, this low share has been due to high prices and incidence of high tariff barriers. The U.S. should now also stand to benefit with the advent of reduced customs duties and expected in further reduction. Government's deforestation program and ban on wood use is going to constrain domestic production creating increasing demand for imported pulp and paper or for waste paper as substitute. The U.S. has to market its products aggressively in this market and be price competitive to develop market niches. Overall, the U.S. has shied away from this market but lower customs duties should assist U.S. companies to be more competitive. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Paper and paperboard 482 Newsprint 550 FCS:NEW DELHI:VDS A) Rank of Sector: 18 B) Name of Sector: Seafood Processing & Preservation Equipment C) Three-Letter ITA Industry Sector Code: CFE, FPP D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 84.5 109.2 145.1 E) Total Local Production (U.S.$ Millions): 30 39 53 F) Total Exports (U.S.$ Millions): 4.5 5.8 7.9 G) Total Imports (U.S.$ Millions): 59 76 100 H) Imports from the U.S. (U.S.$ Millions): 11.8 15.2 20 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Indian seafood processing and preservation industry segment, which is a part of the FPP industry, is growing rapidly. The seafood industry segment with its export focus, receives all the incentives offered by the Government of India. The domestic firms such as Alfa-Laval India Ltd., Blue Star Ltd., Frick India Ltd., APTA Amalgamations Ltd., and Larsen & Toubro Ltd., manufacture a range of equipment although imports of equipment continue to meet the stringent international quality standards. Several new deep sea fishing and on-land aquaculture projects are likely to be implemented in the next three to five years supporting the growth of the equipment market in India. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Seafood processing equipment 96.7 Freezing equipment including IQF Refrigeration equipment 48.4 FCS:MADRAS:PV A) Rank of Sector: 19 B) Name of Sector: Farm Equipment/Machinery C) Three-Letter ITA Industry Sector Code: AGM D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 700 840 950 E) Total Local Production (U.S.$ Millions): 655 795 905 F) Total Exports (U.S.$ Millions): 15 20 30 G) Total Imports (U.S.$ Millions): 60 65 75 H) Imports from the U.S. (U.S.$ Millions): 19 20 25 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Agriculture contributes 35 percent to India's GDP. The market for farm equipment/machinery (FEM) is limited to tractors and its implements. FEM manufactured in India lacks technical superiority since manufacturing was restricted to the small scale sector for a long time. However, India's new policy initiatives to commercialize the agricultural industry is expected to make farm machinery a growth area in the next 3-5 years. Agricultural machinery (tractors, self-propelled harvester combines and rice transplanters) is available for automatic approval and 51 percent foreign equity is permitted. Class OHG of Germany and Escorts (India) have entered into a collaboration for manufacturing large self-propelled harvester combines. Seed drills, planters and drip irrigation systems would be of special interest to Indian farmers. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Tractors 450 Harvester combines 175 Small farm machinery 280 FCS:BOMBAY:RKC A) Rank of Sector: 20 B) Name of Sector: Oil/Gasfield Equipment and Supplies C) Three-Letter ITA Industry Sector Code: OGM D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1388 2508 4834 E) Total Local Production (U.S.$ Millions): 2189 3287 5699 F) Total Exports (U.S.$ Millions): 936 885 1017 G) Total Imports (U.S.$ Millions): 135 106 152 H) Imports from the U.S. (U.S.$ Millions): 40.5 31.8 45.6 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The current oil import bill of $6 billion has committed the Indian government to expand oil exploration activities. The paltry allocation of $7680 million during the Eighth Plan is inadequate to meet the planned production target of 47.08 million tons for 1996-97. To meet this ambitious target the government has offered 72 blocks to domestic and foreign oil companies in the fourth round of bidding for offshore and onshore exploration. Several foreign and Indian firms have formed consortia to bid for these oil wells. Notable U.S. firms who are already in the offshore services include Halliburton and Aban- Lloyds. In addition to this expansion, the government has proposed drastic restructuring of the ONGC. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Drilling machinery and equipment 1650 Production machinery and equipment 1050 Material handling equipment 823 Seismic surveys and oil exploration services 723 Oil/gasfield chemicals and supplies 381 Other services 207 FCS:MADRAS A) Rank of Sector: 21 B) Name of Sector: Energy Conservation C) Three-Letter ITA Industry Sector Code: ENR/PTE D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 997 1095 1293 E) Total Local Production (U.S.$ Millions): 790 870 1035 F) Total Exports (U.S.$ Millions): 3 5 7 G) Total imports (U.S.$ Millions): 210 230 265 H) Imports from the U.S. (U.S.$ Millions): 7 10 12 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: Energy conservation is a major thrust area in the Eighth Plan (1992-97). The conservation potential in various sectors is 20-30 per cent of the total energy consumption. This works out to an estimated 5000 mw per annum. Industrial, transport and domestic sectors account for 90 per cent of the total energy consumption and efforts for saving energy are therefore focussed on these sectors. In the industrial sector, maximum energy is consumed by the steel industry, followed by the chemical and process industries. Energy efficient furnaces for the steel industry and pumps and electrical resistors for the chemical and process industries have excellent market potential. Energy efficient lighting devices and energy demand management techniques will have good scope in this. One of the promising areas for saving energy is keeping the transmission and distribution (t/d) losses to a minimum. The t/d losses currently at 23 per cent are much higher than the international average of 8-10 per cent. The market potential for distribution transformers, capacitors and other energy saving devices is excellent. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Capacitors 350 Incandescent bulbs 150 Energy efficient pumps 375 Power transmission equipment 418 FCS:BOMBAY:RCP A) Rank of Sector: 22 B) Name of Sector: Machine Tools and Metalworking Equipment C) Three-Letter ITA Industry Sector Code: MTL D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 348.5 383 429 E) Total local production (U.S.$ Millions): 207 206 210 F) Total Exports (U.S.$ Millions): 8.5 10 13 G) Total Imports (U.S.$ Millions): 150 187 232 H) Imports from the U.S. (U.S.$ Mllions): 11 13 15.6 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The total turnover of Indian user industries is approximately US$50.8 billion whereas consumption of machine tools is only US$ 350 million. 1994 is expected to be a favorable year for the Indian machine tool industry which has had a high negative growth in the past two years on account of recession. The Government's most recent development in extending Modified Value Added Tax (MODVAT) on all capital goods is intended to boost investment in the industrial sectors and generate demand among the user industries. MODVAT on capital goods is equivalent to excise duty or countervailing duty applicable at a rate of 10%. The ISO 9000 and 14,000 certifications are of growing significance to the industry. Indigenously machine tools are generally more expensive than imported ones. Today the Indian machine tool industry faces stiff competition from not only new machines imported into India but also from second hand machinery imports. There are two distinct demand patterns in India. While one focuses on quality, the other focuses on cost effectiveness. Therefore, quality machine tools are imported from Germany and other European countries and to some extent from the U.S. The import of low cost machine tools are mostly from China, Taiwan, Korea and Japan and other Asian countries. U.S. companies are not fully tapping the quality market. They need to be more aggressive in their outlook or prepare for high visibility of their products through demonstrations of machine capabilities at international engineering trade fairs held in India from time to time. Basic custom tariffs on machine tools have been reduced from 35%-85% to 35%-45%. Basic custom tariffs on project imports have been reduced from 35% to 25%. Tariffs on components for machine tools have been reduced to 25%, although on certain assemblies the tariff is upto 65%. Capital goods may be imported with a license under the Export Promotion Capital Goods (EPCG) scheme. Imported components for capital goods under the EPCG Scheme continue to attract custom tariff at a rate of 15%. Countervailing duty equivalent to excise duty @ 10% imposed on imported machine tools is to provide a ground for equal competition. The duty on general projects has been reduced from 35% ad valorem to 25% ad valorem. However, the existing rate of duty of nil and 20% on fertilizer projects and power projects respectively countries. Additional duty of 10% has been imposed on all projects other than fertilizer projects, power projects, and mining projects and crude refining projects. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Group A - Metalworking 268 Automats, lathes, boring; broaching; drilling; tapping and threading; milling planing; shaping; slotting; gear cutting; grinding; lapping/honing; sawing; bending and straightening; and folding machines, press brakes, presses, punching, shearing and cropping, metal forming, forging, CNCs, Robots, special purpose machines, etc. Group B - Machine tools 161 Welding and gas cutting, injection molding, die-casting, testing, hydraulic equipment, portable electric tools, portable pneumatic tools, CNC systems, digital readout systems and induction heating equipment. FCS:NEW DELHI:VDS A) Rank of Sector: 23 B) Name of Sector: Renewable Energy Equipment C) Three-Letter ITA Industry Sector Code: REQ D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 122 140 161 E) Total Local Production (U.S.$ Millions): 98.5 112 127 F) Total Exports (U.S.$ Millions): 1.5 2 3 G) Total Imports (U.S.$ Millions) : 25 30 37 H) Imports from the U.S. (U.S.$ Millions): 4 4.6 5.3 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The Indian Ministry of Non Conventional Energy has applied an incremental approach, for more than ten years, to develop renewable energy programs through a combination of incentives. Whilst low import duties make imports competitive with Indian equipment, U.S. firms will still have to compete with Danish, British, Italian, Canadian, French and Norwegian suppliers, some of whom have already established joint ventures in India. The barriers to entry, level of indigenization, government incentives, capital investment, life cycles, operating costs and gestation period vary between sub-sectors in this industry. There is also a shortage of finance available for development of increased renewable energy sources. For these reasons, firms that can offer a package of finance, equipment and/or technology to optimize energy development in a particular sub- sector are likely to be more successful than those who offer only equipment. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Biomass/biogas systems 65 Solar photovoltaic systems 23 Solar thermal systems 20 Wind energy systems 16 FCS:NEWDELHI:SXK A) Rank of Sector: 24 B) Name of Sector: Insurance Services C) Three-Letter ITA Industry Sector Code: INS D) Total Sales (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 3552 4565 5873 E) Export Sales by Local Firms (U.S.$ Millions): 3552 4565 5873 F) Sales by Local Firms (U.S.$ Millions): ---- ---- ---- G) Sales by Foreign Owned Firms (U.S.$ Millions): N.A. N.A. N.A. H ) Sales by U.S.- Owned Firms (U.S. $ Millions) N.A. N.A. N.A. I) Exchange Rates Used: 1$ Equals: 1993 1994 1995 31.00 31.25 31.25 Brief Comments: The insurance sector in India is government owned. The Malhotra Committee has put forth a proposal for privatization of the insurance sector. The Finance Minister in his Budget speech for 1994-95 said that the Malhotra Committees recommendations will be discussed in Parliament and a policy decision will be taken in the next financial year. It is expected that the insurance sector will be privatized. They foreign companies will be allowed to operate in India with a local partner. Note: Statistics on sales by foreign/U.S. owned firms are not available, as foreign companies are not in this business in India. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Life insurance 4086 Misc. insurance 1192 Fire insurance 360 Marine insurance 235 FCS:BOMBAY:RKC A) Rank of Sector: 25 B) Name of Sector: Industrial Chemicals C) Three-Letter ITA Industry Sector Code: ICH D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 540 650 767 E) Total Local Production (U.S.$ Millions): 500 600 720 F) Total Exports (U.S.$ Millions): 65 76 103 G) Total Imports (U.S. $ Millions): 105 125 150 H) Imports from the U.S. (U.S.$ Millions): 12 18 12 I) Exchange Rates Used: $1 Equals: 1993 1994 1995 31.00 31.25 31.25 Brief comments: The Indian chemical industry is self sufficient in both skilled manpower and manufacturing technologies. Realizing that the future exists only by globalizing operations, several Indian chemicals manufacturers have either tied up with international giants or are seeking mutually beneficial relationships with international giants. Germany, the strongest third country in this sector, is slowly increasing its presence by relocating several of their units to India to take advantage of the liberalization measures of the Indian Government. Realizing the importance of the Indian market, several U.S. chemical companies have also set up their liaison offices in India. Industry sources expect India to be a major market for international players in future. List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Carbon black 120 Calcium carbide 100 Red phosphorous 60 Potassium 50 FCS:BOMBAY:RKC SECTOR EXPORT PROSPECTS: A) Rank of Sector: 1 B) Name of Sector: Pollution Control Equipment C) Three-Letter ITA Industry Sector Code: POL D) Total Market Size: (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 187 277 400 E) Estimated average annual growth rate of market 1993-1995 (percent): 46 F) Total imports (U.S.$ Millions): 65 85 120 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 30 H) Imports from the U.S. (U.S.$ Millions): 20 35 50 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): 59 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 4 J-2) On a scale of 1 (low competition) to 5 (severe competition), evaluate competition for U.S. Exporters from local and domestic suppliers: 4 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 2 J-4) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 4 K) Comments: The recent economic liberalization has given boost to industrialization in India. Sustainable development is the key word. The regulations for waste water, air and hazardous waste disposal are getting stringent. The potential for pollution control equipment is projected to rise. ISO 14000 is expected in 1995. The Indian industries with export potential are getting geared up for compliance with ISO 14000. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Air pollution control equipment 100 Waste water treatment 180 Hazardous waste treatment-handling (solid and liquid) 120 FCS:BOMBAY:VG A) Rank of Sector: 2 B) Name of Sector: Computer Software C) Three-Letter ITA Industry Sector Code: CSF D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 363 525 745 E) Estimated average annual growth rate of market 1993-1995 (percent): 43 F) Total Imports (U.S.$ Millions): 219 365 484 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 54 H) Imports from the U.S. (U.S.$ Millions): 142 219 314 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): 49 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 5 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 4 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 3 J-4) In a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 4 K) Comments: Because of its export performance the Government of India has provided special incentives to the software industry in its annual budget. Several U.S. firms have established 100 per cent software development centers to develop cost-effective quality products for the global market. Indian agents extensively distribute U.S. software. Systems software, applications software, CAD, CAM, CAE, CIM, OLTP and networking software offer excellent export potential for U.S. firms. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Applications software (business software) 192 Graphic/scientific software including CAD 105 Systems software 58 On-line transaction processing software 54 Specialized application software packages 29 FCS:MADRAS A) Rank of Sector: 3 B) Name of Sector: Telecommunications Equipment C) Three-Letter ITA Industry Sector Code: TEL D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1800 2300 3000 E) Estimated average annual growth rate of market 1993-1995 (percent): 29 F) Total Imports (U.S.$ Millions): 350 425 570 G) Estimated average annual growth rate (1993-95) of total imports (percent): 27 H) Imports from the U.S. (U.S.$ Millions): 95 120 160 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (percent): 29 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 3 J-3) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from third country suppliers: 1 J-4) On a scale of 1 (very severe ) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of Products and Services: 3 K) Comments: The New Telecom Policy announced by the GOI Department of Telecom (DOT) has revised the Eighth Plan (1992-97) telecom targets to ensure: availibility of telephones on demand by 1997; all value added services to be made available at international levels of quality; and all villages to be covered by 1997. Multinational companies with foreign equity participation will be allowed to provide basic services. The demand has been forecasted to aggregate to 15.8 million connectuions by 1997 which would require the release of 10 million new connections during 1992- 97. For providing these enhanced services the resource gap faced by the DOT will exceed USD 7.4 billion. Consequently, the new policy encourages private sector participation to complement DOT efforts to provide additional services by adopting leasing, deferred payments, build operate transfer, build lease transfer, build transfer operate, etc. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Telecom switching equipment 800 Satellite telecom systems 600 Telecom transmission equipment 510 Microwave telecom systems 300 Radiopaging systems 110 Cellular phone systems 85 FCS:NEWDELHI:KXS A) Rank of Sector: 4 B) Name of Sector: Computers & Peripherals C) Three-Letter ITA Industry Sector Code: CPT D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1085 1355 1695 E) Estimated average annual growth rate of market 1993-1995 (percent): 25 F) Total Imports (U.S.$ Millions): 325 390 484 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 22 H) Imports from the U.S. (U.S.$ Millions): 108 138 182 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): 29 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 5 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 2 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 2 J-4) In a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 2 K) Comments: India's computer industry sales grew 28.3 per cent in 1992, grossing over $1 billion. Foreign firms, with appropriate domestic partners, (several of them U.S. firms) manufacture a wide range of personal computers, note book computers, mini computers, and peripheral products such as floppy disk drives, printers, plotters etc. U.S. firms are well represented and are dominant players in the Indian market. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Computers 650 Data Acquisition Systems 190 Peripherals 125 Add-ons 120 FCS:MADRAS A) Rank of Sector: 5 B) Name of Sector: Building Products C) Three-Letter ITA Industry Sector Code: BLD D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 140 145.6 151 E) Estimated average annual growth rate of market 1993-1995 (percent): 4 F) Total Imports (U.S.$ Millions): 26 26.84 27.5 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 3 H) Imports from the U.S. (U.S.$ Millions): 11.5 14.8 18.4 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): 26.5 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 2 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 2 J-4) In a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 3 K) Comments: The housing and infrastructure sectors have been accorded high priority by the Indian Central and State Governments. Substantial budget allocations have been provided during the Eighth Five Year Plan (1992-97) for these sectors. In addition to yearly budget allocations, the public and private sectors have entered the market with new technologies and substantial investments. Investments are also being made in Research and Development projects for indigenously manufacturing building products with locally available low-priced raw materials. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Tiles 24 Plumbing fixtures 18 Flat Glass/Float Glass 12.2 Gypsum products 6 Others 90.8 FCS:MADRAS A) Rank of Sector: 6 B) Name of Sector: Sporting Goods C) Three-Letter ITA Industry Sector Code: SPT D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 75 86 98 E) Estimated average annual growth rate of market 1993-1995 (percent): 15 F) Total Imports (U.S.$ Millions) : 3 4 5 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 25 H) Imports from the U.S. (U.S.$ Millions): 1.25 1.6 2 I) Estimated average annual growth rate of imports from the U.S. (1993-1995) (percent): 25 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. products and services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 3 J-3) On a Scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from third-country suppliers: 3 J-4) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of Products or Services: 2 K) Comments: Several categories of sporting goods are now eligible for importation under special import licenses (entitlements against export earnings) - equipment for health and fitness, air and aviation sports, golf, tennis, squash, billiards and water sports. Import duties have been lowered from approximately 100 percent to a peak rate of 65 percent, with a minimum 20 per cent countervailing duty. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Fitness equipment 60 Inflatable balls 15 Cricket equipment 6 FCS:NEWDELHI:SXK A) Rank of Sector: 7 B) Name of Sector: Electric Power Generation C) Three-Letter ITA Industry Sector Code: ELP D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 2700 3100 3600 E) Estimated average annual growth rate of market 1993-1995 (percent): 15 F) Total Imports (U.S.$ Millions): 660 870 1020 G) Estimated average annual growth rate (1993-95) of total imports (percent): 22-25 H) Imports from the U.S. (U.S.$ Millions): 190 245 290 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (percent): 20-23 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 4 J-3) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from third country suppliers: 3 J-4) On a scale of 1 (very severe ) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of Products and Services: 2 K) Comments: Due to inadequate investments earlier India faced an energy shortage of 10 percent and peaking shortage of about 20 percent in 1990. The GOI has planned on massive expansion of generation capacity (30,538 MW) in the Eighth Plan (1992-97) and more in the following Ninth Plan. The GOI, faced with inadequate resources of its own, has offered a host of incentives to private sector power generation including a higher debt equity ratio at 4:1, capitalization of interest during construction period, 100 percent equity particpation by foreign companies, a rate of return of 16 percent, etc. The GOI has so far shortlisted 42 proposals from the private sector for new projects involving an investment of USD 17 billion. The private companies coming from USA include Spectrum Technologies, International Equity Partners, AES Corporation, North East Energy Services Inc., International Contracting and Marketing Corp., Makowski Associates, Enron, Hok Intercontinental and GVK Industries. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Power generation equipment 2250 Power transmission equipment 750 Power distribution equipment 600 FCS:NEWDELHI:KXS A) Rank of Sector: 8 B) Name of Sector: Medical Equipment C) Three-Letter ITA Industry Sector Code: MED D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 530 630 750 E) Estimated average annual growth rate of market 1993-1995 (percent): 19 F) Total Imports (U.S.$ Millions): 340 405 480 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 19 H) Imports from the U.S. (U.S.$ Millions): 65 77 90 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (percent): 18 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic suppliers: 3 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of Products and Services: 3 K) Comments: As the Indian medical equipment industry has yet to reach a high level of precision in sophisticated equipment, imports of medical electronic and other high technology equipment will continue to expand significantly. This trend is likely to continue through the year 2000. The U.S. is one of the major suppliers of medical equipment to India. Domestic hospitals, including several recently established, privately- owned corporate specialty hospitals, are favorably inclined to U.S. equipment. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Diagnostic equipment 130 Reconstructive surgery equipment 105 Imaging products & equipment 100 Electronic treatment devices 80 Medical testing & lab equipment 75 Radiological equipment 65 FCS:CALCUTTA:NC A) Rank of Sector: 9 B) Name of Sector: Automotive Parts and Service Equipment C) Three-Letter ITA Industry Sector Code: APS D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 1425 1700 2210 E) Estimated average annual growth rate of market 1993-1995 (percent): 25 F) Total Imports (U.S.$ Millions): 165 190 228 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 17.5 H) Imports from the U.S. (U.S.$ Millions): 11 12.7 14.8 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): 16 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 2 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 1 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 2 J-4) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 3 K) Comments: Inspite of the recession in the automobile industry the auto components industry in India showed a growth of more than 15 per cent over the previous year, largely because of it's success on the export front. With the automobile industry having performed very well in the first half of 1994 (growth of 25 percent in two wheelers and 42 percent in (LCVS), the auto components industry is expected to show a significant growth this year. The two wheeler segment continues to dominate the industry with the highest sales volume of sales. In the six auto components groups, share of the value of engine parts was 39.6 percent; transmission, steering parts 23 percent; suspension, braking parts 16.5 percent; electric parts 8 percent, other equipment 4.2 percent; miscellaneous 8.7 percent. A number of foreign companies, including General Motors, are using and planning to use India as a base to source some of their auto component requirements. India's thrust on exports, UNDP's proposed grant of $4 million for setting up an auto parts technology Institute in Ludhiana and the large export potential is likely to see increasing imports of parts and components for value addition and subsequent exports from India. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Transmission steering parts 500 Electronic and electrical equipment 200 Engine diagnostic equipment 90 FCS:BOMBAY:RM A) Rank of Sector: 10 B) Name of Sector: Laboratory Scientific Instruments C) Three-Letter ITA Industry Sector Code: LAB D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 350 410 475 E) Estimated average annual growth rate of market 1993-1995 (percent): 16 F) Total Imports (U.S.$ Millions): 220 246 295 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 15 H) Imports from the U.S. (U.S.$ Millions): 66 72 88 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (percent): 15 J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. Products and Services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic suppliers: 3 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of products and services: 3 K) Comments: The Indian laboratory and scientific instruments industry is poised for substantial growth. Analytical instruments play an important role in petroleum and petrochemical industries, energy savings and alternate energy sources, biotechnology, industrial environment safety and pollution control. Envisaged higher investments in the steel, fertilizer and cement industries, accelerated growth in several other core industries, and greater research and development in high technology areas are some of the vital factors that will support increased market demand for laboratory scientific instruments. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Analytical instruments 100 Process control instruments 100 Test & measuring instruments 75 Biomedical equipment 50 Optical/survey instruments 40 Special application groups 40 FCS:CALCUTTA:NC A) Rank of Sector: 11 B) Name of Sector: Aircraft and Parts C) Three-letter ITA industry sector code: AIR D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 950 625 700 E) Estimated average annual growth rate of market 1993-1995 (percent): Although the figures show that the market has declined, significant procurement has been done by private air taxi operators (ATOs) through leasing. However, some of these ATOs now have plans to buy aircraft. Further the main Indian Civil Aviation carriers i.e., Air India and Indain Airlines, have major modernization and expansion plans for the period 1995-2010. F) Total Imports (U.S.$ Millions): 900 560 600 G) Estimated average annual growth rate of total imports (1993-95) (percent): Same remarks as in (E) above. H) Imports from the U.S. (U.S.$ Millions): 575 200 350 I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (percent): Same remarks as (E) above. J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to U.S. products and services: 4 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. exporters from local domestic suppliers: 5 J-3) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from third country suppliers: 2 J-4) On a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. exports of products and services: 3 K) Comments: Growth rates of 8 percent have been conservatively forecasted for the period 1994-96. Both Air India and Indian Airlines have plans for fleet modernization and developing additional capacity and are in the process of evaluating suitable aircraft. In addition the entry of private air operators/taxis has changed the domestic aviation scene and the ATOs have been doing extremely well which will boost demand for small and medium aircraft. Also with modernization of Bombay and Delhi airport ATCs underway, similar development is planned for Calcutta, Madras and three major regional airports which will require ATC and ground support equipment. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Passenger and cargo aircraft 400 Aircraft engines 125 ATC and allied equipment 70 Leasing of aircraft 60 FCS:NEWDELHI:KXS A) Rank of Sector: 12 B) Name of Sector: Apparel C) Three-Letter ITA Industry Sector Code: APP D) Total Market Size (U.S.$ Millions): 1993 1994 1995 Past Year Current Year Est. Forecast Year Est. 4340 4570 4900 E) Estimated average annual growth rate of market 1993-1995 (percent): 6 F) Total Imports (U.S.$ Millions): 2.0 2.5 3.0 G) Estimated average annual growth rate (1993-1995) of total imports (percent): 22.5 H) Imports from the U.S. (U.S.$ Millions): N.A. N.A. N.A. I) Estimated average annual growth rate (1993-1995) of imports from the U.S. (Percent): N.A. J-1) On a scale of 1 (lowest) to 5 (highest), evaluate country's receptivity to u.S. Products and Services: 2 J-2) On a scale of 1 (very heavy) to 5 (very little), evaluate competition for U.S. Exporters from local domestic suppliers: 1 J-3) On a scale of 1 (very severe) to 5 (very few), evaluate competition for U.S. Exports from third country suppliers: 3 J-4) In a scale of 1 (very severe) to 5 (very few), evaluate overall effect of trade barriers on U.S. Exports of Products and Services: 2 K) Comments: Textile, India's major industry, accounts for about 20 per cent of the industrial output and 30 per cent of the total value of exports. There is a vast domestic market considering India's population of over 850 million people. The per capita consumption of fabrics in India is estimated at 16.5 meters compared to the world average of 56 meters. Hence Indian market has immense potential for growth. India is a major exporter of apparels. In the world market, India's share is about 2.5 per cent. About 60 per cent of the exports go to quota countries and 40 per cent to non-quota countries. The bulk of the exports are still to the U.S. and EEC. India imports a limited quantity of apparels such as suits/jackets and personal protective garments. Its total import of apparels/made-ups in 1993 was as little as U.S. $ 2 million. The U.S. share is negligible and comprises of some shipments of protective garments. This low volume indicates an extremely poor potential for imported apparel in India. In the last two years leading international brands including Louis Phillipe, Van Heusen, Flying Machine, Wrangler, Benneton, Pierre Cardin have established their manufacturing base in India. As the Indian economy grows, there is possibility of better market access for U.S. apparel. A real turnaround may be only in the next 5-10 years by the time the multi fibre arrangement is finally phased out and import duty is reduced further. L) List of most promising subsectors, with 1995 estimated market size of each subsector: 1995 Est. (Millions $) Bullet proof/bomb disposal jackets 1.5 Apparel/accessories 1.0 Sportswear 0.5 FCS:BOMBAY:RCP THE FOLLOWING IS A LIST OF ISAS SCHEDULED FOR FY-95 CCG: A) Name of Industry Subsector: Mining Equipment & Technology B) Three-letter ITA Industry Sector Code: MIN C) Due date: September 1994 D) Country: India E) Reseacher: FCSN Ashok Kanjilal F) Post: FCS/Calcutta G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Hotel and Motel Industry B) Three-letter ITA Industry Sector Code: HTL/TRA C) Due date: October, 1994 D) Country: India E) Researcher: FCSN O.P. Gupta F) Post: FCS/New Delhi G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Railway Modernization (Locomotive, Railway Maintenance & Telecom Network Modernization) B) Three-letter ITA Industry Sector Code: RRE C) Due date: October 1994 D) Country: India E) Researcher: FCSN Ashok Kanjilal F) Post: FCS/Calcutta G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Petroleum Refinery Equipment B) Three-letter ITA Industry Sector Code: CHM C) Due date: October '94 D) Country: India E) Researcher: FCSN R. Swaminathan F) Post: FCS/Madras G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Energy Conservation Devices B) Three-letter ITA Industry Sector Code: ENR/PTE C) Due date: November 1994 D) Country: India E) Researcher: FCSN R.C. Purohit F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Port Construction B) Three-letter ITA Industry Sector Code: CON C) Due date: December 1994 D) Country: India E) Researcher: FCSN Ram Mankame F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Industrial Chemicals B) Three-letter ITA Industry Sector Code: ICH C) Due date: January 1995 D) Country: India E) Researcher: FCSN P. Srinivas F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Hospital Waste- Treatment and Disposal B) Three-letter ITA Industry Sector Code: POL C) Due date: February 1995 D) Country: India E) Researcher: FCSN Vinay Gadkari F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: LPG Bottling Plants B) Three-letter ITA Industry Sector Code: OGM C) Due date: March 1995 D) Country: India E) Researcher: FCSN Ram Mankame F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Aircraft & Parts B) Three-letter ITA Industry Sector Code: AIR C) Due date: March '95 D) Country: India E) Researcher: FCSN Kapil Saha F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Packaging for Food Processing Industry B) Three-letter ITA Industry Sector Code: FPP C) Due date: March '95 D) Country: India E) Researcher: FCSN P. Vaidyanathan F) Post: FCS/Madras G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Computer Software Related Services B) Three-letter ITA Industry Sector Code: CSF C) Due date: April '95 D) Country: India E) Researcher: FCSN Leonard B. Roberts F) Post: FCS/Bangalore G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Pollution Control in Paper Industry B) Three-letter ITA Industry Sector Code: POL C) Due date: April 1995 D) Country: India E) Researcher: FCSN R.C. Purohit F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: VSATs & Personal Satellite Communications Network B) Three-letter ITA Industry Sector Code: TEL C) Due date: April 1995 D) Country: India E) Researcher: FCSN Victor D'Souza F) Post: FCS/New Delhi G) Estimate of time required to complete the research: 45 working days A) Name of Industry Subsector: Renewable Energy Equipment B) Three-letter ITA Industry Sector Code: REQ C) Due date: May '95 D) Country: India E) Researcher: FCSN R. Swaminathan F) Post: FCS/Madras G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Value-Added Services B) Three-letter ITA Industry Sector Code: TEL C) Due date: May '95 D) Country: India E) Researcher: FCSN Kapil Saha F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Process Control Instrumentation B) Three-letter ITA Industry Sector Code: PCI C) Due date: May 1995 D) Country: India E) Researcher: FCSN Shantanu Mitra F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Plastic Materials and Resins B) Three-letter ITA Industry Sector Code: PMR C) Due date: May, 1995 D) Country: India E) Researcher: FCSN Sandeep Maini F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Small Hydel Power Plants B) Three-letter ITA Industry Sector Code: ELP C) Due date: June 1995 D) Country: India E) Researcher: FCSN Prem Narayan F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Electronics Components B) Three-letter ITA Industry Sector Code: ELC C) Due date: June 1995 D) Country: India E) Researcher: FCSN Sanjiv Khanna F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Insurance Services B) Three-letter ITA Industry Sector Code: INS C) Due date: June 1995 D) Country: India E) Researcher: FCSN R.K. Chopra F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Drugs and Pharmaceuticals B) Three-letter ITA Industry Sector Code: DRG C) Due date: July 1995 D) Country: India E) Researcher: FCSN P. Srinivas F) Post: FCS/Bombay G) Estimate of time required to complete the research: 45 days A) Name of Industry Subsector: Electric Power Generation B) Three-letter ITA Industry Sector Code: ELP C) Due date: July '95 D) Country: India E) Researcher: FCSN Kapil Saha F) Post: FCS/New Delhi G) Estimate of time required to complete the research: A) Name of Industry Subsector: Electronic Connectors Services B) Three-letter ITA Industry Sector Code: ELC C) Due date: August '95 D) Country: India E) Researcher: FCSN Leonard B. Roberts F) Post: FCS/Bangalore G) Estimate of time required to complete the research: 30 days A) Name of Industry Subsector: Pulp and Paper B) Three-letter ITA Industry Sector Code: PAP C) Due date: August 1995 D) Country: India E) Researcher: FCSN Victor D'Souza F) Post: FCS/New Delhi G) Estimate of time required to complete the research: 45 working days