Exhibitions and Business Events Blog

Indian Business services are in the very much in the spotlight. In fact, India’s share in the global trade of services has improved from 2 per cent in 2004 to 2.7 percent in 2006. Foreign players are keenly looking-forward to trade with India on various service fronts be it the Information Technology front, Healthcare, Investments, Tourism/Hospitality, Legal Services, or on the Retail front.

Information Technology Services

As per NASSCOM’S estimations, exports from the Information Technology (IT) and Business Process Outsourcing (BPO) sectors may touch US$ 60 billion in 2010-11.

Foreign companies are finding Banking and Financial Services at its best and the best segment to trade with India. A break up of India’s IT-BPO exports sector shows banking and Financial Services Institutions (BFSI) forming 41 percent of the exports in 2007-08, while telecom and manufacturing accounted 20 percent and 17 percent, respectively.

Tata Consulting Services has signed an agreement worth US$ 100 million to provide IT services to a UK-based telecom company 4U Group.

Healthcare

Experts are of the opinion that outsourcing of healthcare services from US to India would be a continuous process. The US-based healthcare companies are keen to trade with India, in an endeavor to cut down costs of operations, according to a study carried out by Offshoring Research Network (ORN), in alliance with Duke University and research firm PricewaterhouseCoopers.

The medical transcription (MT) industry is also doing well. According to the NASSCOM report global slump has not hit this sector. The MT industry will be worth US$ 798.1 million by 2010 and would be employing around 50,000 people across India.

India is also likely to recapture its tag as the back office of the world, though it faces competition from its neighbours, like China. Currently, India is at the top position as the share of IT and IT-enabled services on the global front are over 26 percent, while China has just over 3 percent. In a globalized world, India for Indians is an obsolete view. Indians are welcoming all big and small foreign companies to Trade with India.

Information Technology Enabled Services

AstraZeneca a US$ 30 billion pharma company has outsourced its maintenance services for a slew of corporate services (such as human relations, finance) to Bangalore-based Infosys.

Global Hyatt Corporation a Chicago based company has outsourced some part of its financial and accounting transaction services to Genpact.

Tourism/Hospitality

India’s towering rise on the world stage, has also beckoned Tourism giants to trade with India. Lulu Group, a company worth US$ 3 billion, having presence in countries like Bahrain, Kuwait, Oman, Qatar, UAE, and Yemen has entered into a contract with Marriot Hotels to run the 20-story 300-room business hotel property coming up in Kochi.

Legal services

Even the legal servicing world is fastening its seats belts to trade with India. The world’s largest law firm UK-based Clifford Chance and AZB & Partners, an Indian law firm, have entered in an in- formal partnership agreement. As per the agreement, both the law firms will involve in client referral arrangements, joint training, consultation and marketing.

Currently, foreign law firms are not allowed to function in India and the Bar Council of India has barred joint ventures between foreign and domestic law firms. Irrespective of this norm, foreign firms are looking-forward to tie-ups with Indian firms, as they keep looking for tie-ups, in an attempt to set up local legal services for foreigners.

Retail

Inditex, a leading fashion retailing company based in Spain has joined hands with Trent, the retail arm of the Tata group. The joint venture will help and develop foreign’s company’s Zara stores in India. The partnership plans to set up its first store in New Delhi, Mumbai and other major cities of India.

Made-from-india.com is an online B2B marketplace, set up with a single-minded mission to connect Indian suppliers with global buyers. Within a short span of time, the company has achieved good alexa rankings of 20,000, thanks to large number of visitors and paid members across the world. 

Made-from-india.com’s B2Bmarketplace deals in 30 different major sectors, namely Agriculture, Apparel & Fashion, Arts Gift And Crafts, Automobile, Business Services, Chemicals, Computer Hardware & Software, Construction & Real Estate, Electronics & Electrical Supplies, Environment & Pollution, Food & Beverage, Health & Beauty, Home Supplies, Industrial Supplies, Jewelry & Gemstones, Logistics & Transportation, Machinery, Mineral & Metals, Office Supplies, Outsourcing, Packaging & Paper, Plastics and Rubber Products, Printing & Publishing, Scientific Instrument And Supplies, Security & Protection, Sports & Entertainment, Telecommunications, Textiles & Leather Products, Tours and Travels and Toys.

Thousands of successful trade transactions ride on our shoulders, given the fact that we offer genuine trade leads and massive branding opportunities to our suppliers. In fact, we try and give a face to thousands of small manufacturers, be it small and medium enterprises (SMEs) or micro small and medium enterprises (MSMEs), spread all across India.

Suppliers can find genuine and verified buy leads here, and prepare business proposals accordingly. While buyers can easily strike profitable deals with suppliers, manufacturers and exporters from all across the globe.

Additionally, suppliers can employ our site as a complete promotional outlet. For instance, we help you in brand promotion/brand creation/brand makeover through blog promotions; email marketing, search engine optimization, renovation of existing company’s site and through verified trade leads. Moreover, Made-from-India.com’s B2Bmarketplace is a complete information hub as both suppliers can get updates on market trends through Informational articles, Whitepapers, Case studies, Articles etc.

“Ahmedabad has changed unbelievably since we met here a decade ago,” said a close friend, as we drove from the modernized airport towards the city centre over the new flyovers, in the midst of dizzying retail construction unfolding all around. Ahmedabad has been growing unhindered. Thanks, to sprawling malls dotting the city landscape like never before.

Now not just Ahmedabad, the whole India is going through a big time image makeover. Thanks to the mall culture spreading like wild fire. Yes, India has finally arrived, from a land of entrepreneurs and shopkeepers to becoming the top retail destination in the world. Just a few days back, Walmart the largest grocery retailer in America made a big bang entry into India. Other global retail giants heading towards the Indian retail landscape include, Tesco, Carrefour SA, Metro AG etc. Trade with India seems to be the new chant for the global retailers.

The Indian Retail Street is set to glow brighter with India recapturing its position as the most attractive destination for global retailers, despite the global slump. According to the Global Retail Development Index (GRDI) released by US-based global management consulting firm, A T Kearney, India has emerged as best country amongst 30 emerging markets. This reinforces the fact that trade with India is a golden opportunity to be capitalized upon. Interestingly, Russia clinched the second position, while China settled for the third spot. The report also stated that India has become the most attractive destination for retail investment for the fourth time in five years.

The report further stated that Wal-Mart, Carrefour and Tesco, are planning to enlarge their trade with India as Indian consumers are becoming increasingly brand-conscience and getting accustomed with global retail formats. EBONY Homes, the home furniture retail arm of the $3 billion DS Constructions, is upbeat about the Indian retail scenario and is gearing up to invest Rs 120 crore. The company plans to set up a chain of 20-25 furniture stores styled Ebony Gautier across the country by March 2012.

As per McKinsey report, ‘The rise of Indian Consumer Market’ Indian consumers are likely to grow four times by 2025. As per Commercial real estate services company, CB Richard Ellis’, the Indian retail market is currently valued at US$ 511 billion. Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil marketing, power, two-wheelers and telecom companies are spurring the growth in this sector. Trade with India continues to be the most attractive option for global retailers. At US$ 511 billion in 2008, its retail market is drawing both global and local retailers.

‘Trade with India’ approach adopted by retailers all across the globe seems to have provided fresh stimulus in the form of Foreign direct investment (FDI). FDI inflows as on January 2009, in single-brand retail trading, was around US$ 25.18 million, according to the Department of Industrial Policy and Promotion (DIPP). India’s overall retail sector will be worth US$ 833 million by 2113 and to US$ 1.3 trillion by 2018. From Nehru’s socialist era to Manmohan’s market economy, consumer spending has come a long way. The consumer spending rose by phenomenal 75 per cent in the past four years. In addition, the organized retail market which today accounts just 5 percent of the market will tentatively grow at a CAGR of 40 percent from US$ 20 billion in 2007 to US$107 billion by 2013.

In terms of apparel retail industry, India has emerged as the third best, as per a new study carried out by global management consulting firm AT Kearney. The report further adds that in India, apparel occupies the second largest retail category, comprising 10 percent of the US$ 37 billion retail market. It is estimated to grow by 12-15 percent per year. Trade with India, in sectors like apparel and food and grocery will be a profitable preposition for global retailers, as these two sectors will reportedly lead the organized retailing in India.

Currently India has one of the largest numbers of retail outlets in the world. According to a report by images Retail estimates the number of operational malls will grow more than two-fold, i.e., it will cross 412, with 205 million square feet getting covered by 2010. Nearly 715 malls will be added by 2015, with major retail developments in tier-II and tier-III cities fuelling further growth.

Many global retailers have given thumps up to trade with India

• Marks & Spencer Reliance India is planning to unveil 35 more stores over the next five years. The 51:49 joint venture between UK’s Marks and Spencer and Reliance Retail Ltd already has 15 stores in India. Marks & Spencer is a leading UK retailer of clothing, food, home-ware and financial services, serving 10 million customers a week.

• Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010. Carrefour, currently exports goods worth, US$ 170 million from India to Europe, UAE, Indonesia, Europe, Thailand, Singapore and Malaysia.

• Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly establishing a chain of retail outlets called Shuddi–Sampurna Vishwas. Around 60 stores will set up across India by end of this year. The stores will be retailing hallmarked gold and diamond jewellery.

• Mahindra Retail, plans to invest US$ 19.8 million by 2010 to enhance its specialty retail concept ‘Mom and Me’.

• Pantaloon Retail, the country’s largest retailer, plans to raise about Rs 1,000 crore by selling shares to investors. The group currently operates about 1,000 stores.

Government Initiatives to boost Trade with India

• 100 per cent FDI is permissible in cash-and-carry wholesale formats. Franchisee arrangements are also acceptable in retail trade.

• 51 per cent FDI is permissible in single-brand retailing.

The future ahead

Industry experts see the rise of the rural sector in the coming years. Currently, rural market comprises nearly half of the domestic retail market of India, i.e., US$ 300 billion. The per capita income of the rural India has reportedly grown by 50 percent over the last 10 years, mainly because of the rising commodity prices and better productivity.

According to E&Y India, basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are ushering in good times for the rural households.

• As per the new market research report by RNCOS, organized retail market is expected to reach US$ 50 billion by 2011.

• The boom in the retail market will fuel the growth of the logistic market. It is estimated the market will reach around US$20 billion by 2011.

• Retailing of mobile handset and accessories is estimated to reach close to US$990 million by 2010.

• Rural market is estimated to lead the Indian retail industry landscape in the future.

• Shopping malls are expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015.

Indian Business services are in the very much in the spotlight. In fact, India’s share in the global trade of services has improved from 2 per cent in 2004 to 2.7 percent in 2006. Foreign players are keenly looking-forward to trade with India on various service fronts be it the Information Technology front, Healthcare, Investments, Tourism/Hospitality, Legal Services, or on the Retail front.

Information Technology Services

As per NASSCOM’S estimations, exports from the Information Technology (IT) and Business Process Outsourcing (BPO) sectors may touch US$ 60 billion in 2010-11.

Foreign companies are finding Banking and Financial Services at its best and the best segment to trade with India. A break up of India’s IT-BPO exports sector shows banking and Financial Services Institutions (BFSI) forming 41 percent of the exports in 2007-08, while telecom and manufacturing accounted 20 percent and 17 percent, respectively.

Tata Consulting Services has signed an agreement worth US$ 100 million to provide IT services to a UK-based telecom company 4U Group.

Healthcare

Experts are of the opinion that outsourcing of healthcare services from US to India would be a continuous process. The US-based healthcare companies are keen to trade with India, in an endeavor to cut down costs of operations, according to a study carried out by Offshoring Research Network (ORN), in alliance with Duke University and research firm PricewaterhouseCoopers.

The medical transcription (MT) industry is also doing well. According to the NASSCOM report global slump has not hit this sector. The MT industry will be worth US$ 798.1 million by 2010 and would be employing around 50,000 people across India.

India is also likely to recapture its tag as the back office of the world, though it faces competition from its neighbours, like China. Currently, India is at the top position as the share of IT and IT-enabled services on the global front are over 26 percent, while China has just over 3 percent. In a globalized world, India for Indians is an obsolete view. Indians are welcoming all big and small foreign companies to trade with India.

Information Technology Enabled Services

AstraZeneca a US$ 30 billion pharma company has outsourced its maintenance services for a slew of corporate services (such as human relations, finance) to Bangalore-based Infosys.

Global Hyatt Corporation a Chicago based company has outsourced some part of its financial and accounting transaction services to Genpact.

Tourism/Hospitality

India’s towering rise on the world stage, has also beckoned Tourism giants to trade with India. Lulu Group, a company worth US$ 3 billion, having presence in countries like Bahrain, Kuwait, Oman, Qatar, UAE, and Yemen has entered into a contract with Marriot Hotels to run the 20-story 300-room business hotel property coming up in Kochi.

Legal services

Even the legal servicing world is fastening its seats belts to trade with India. The world’s largest law firm UK-based Clifford Chance and AZB & Partners, an Indian law firm, have entered in an in- formal partnership agreement. As per the agreement, both the law firms will involve in client referral arrangements, joint training, consultation and marketing.

Currently, foreign law firms are not allowed to function in India and the Bar Council of India has barred joint ventures between foreign and domestic law firms. Irrespective of this norm, foreign firms are looking-forward to tie-ups with Indian firms, as they keep looking for tie-ups, in an attempt to set up local legal services for foreigners.

Retail

Inditex, a leading fashion retailing company based in Spain has joined hands with Trent, the retail arm of the Tata group. The joint venture will help and develop foreign’s company’s Zara stores in India. The partnership plans to set up its first store in New Delhi, Mumbai and other major cities of India.

Cross-over collaborations bring to the table great learning, information and experience-exchange that is truly enriching, say experts. And be rest assured, Trade with India will be an absolute pleasure.

1] Stand on the Shoulders of the Giants

In this time and age, each and every company is trying its best to be different. Innovation seems to be the name of the game and entrepreneurs are literally scratching their heads to be original, creative and off beat in their sales and marketing strategies. And of course, the call of the times is to have a unique selling proposition, out-of-the-box strategies. But I can’t help but wonder why entrepreneurs single-handedly have to do all the spadework. Can’t they take reference from the past? And most importantly, doesn’t this question call for a passing thought at least?

In simple words, the entrepreneurs need not ‘reinvent the wheel’ again and again. Just look out, what your peers and predecessors have done. Examples will be in plenty. If that’s not enough, check out some renowned books written by distinguished sales and marketing gurus. Almost all the marketing strategies will find a mention here.

Have you heard of the phrase ‘standing on the shoulders of the giants’? The dictionary meaning says “Using the understanding gained by major thinkers who have gone before in order to make intellectual progress”. Don’t you think this is the best way out.

Some of the well-known books that entrepreneurs can peruse include,

- The E-Myth by Michael Gerber

- Magnetic Marketing by Dan Kennedy

- Meatball Sundae by Seth Godin

- Duct Tape Marketing by John Jantsch

All of them are great read; hopefully you like them and most importantly help you expand your Business.

2] Bridging the Gap between Actual Offer and Sales Copy

You are all set to open your sales innings on an encouraging note. And you have already crafted a grand sounding sales copy for that purpose. The best thing being you are pretty sure that your copy will strike a chord with the prospects.

But as someone said, Man proposes and God disposes, your sales efforts fall apart like a pack of cards. The buyer has out rightly rejected your offer. But wasn’t your sales copy fool-proof, then why was this red-light shown.

While not disputing for a moment, about the brilliance of your sales copy, however, there may be a combination of factors that may have contributed in this deal going awry.

Flaunt your price-tag- Never, be ashamed about the price of your products. Customers or prospects simply don’t flip through the pages, ignoring the price element, for the simple fact that price has a fundamental role to play, before a sales deal is finally closed. If your sales copy is really good, then be rest assured that you have hit the bull’s eye. However, don’t go about feeling sorry for you have given your product a price tag that it’s worth of.

Clear-Cut Offer- Be sure that you mention the price. Furnish complete details of the products and services you are offering and any additional bonuses you are planning to unfold in the future.

Purchase Options: Give the prospects a variety of ways to order: phone, fax, mail, online. The more diverse you make, there are chances that you will receive more offers.

Payment Options –Present different kinds of payment methods. Purchasers are keenly interested in knowing the various payment options available.

Contact Information: Some brilliant marketing messages have been dumped as the prospects have failed to find the contact details

Don’t miss your sale at the offer point.

3] How to attract Your Prospect to the Sale

Did you ever try to figure out why your customers are not reverting back, when you are sending them some attractive marketing offers? May be he (she) hasn’t even taken the pain to read your offer. But what more can you expect from the customers, who are flooded with more than 3,000 marketing messages. So it is but natural for them to dump each and every marketing offer that comes their way

There are certain marketing filters you need to take into account, before the customers start reading your copies and are ready to communicate with. Here are the steps:

Step 1- Know your customers- This makes the message more targeted and helps you draw his (her) attention. And your customers or prospects will get a feeling that you deeply care for them.

Step 2- Keep a tab on the customers- Make it a habit to take follow-ups with your customers, probably you will be able to strike a better deal.

Step 3- Give value to your customers - Every marketing message that you are putting out should be from the prospects viewpoint. It should bring profits to the prospects first. Moreover the message that you send should do a little more than what you sell. It should educate, engage, entertain and helps your prospects some way or the other.

Step 4- Give customers due importance- Once your prospects fall in to your trap, see that you keep in touch with him(her) on constant basis. New customers and the old customers need the same kind of attention. Shower them with your attention, and see how your fortunes turnaround.

Analysis Paralysis 

Analysis Paralysis, do these two words ring a bell. Analysis Paralysis simply means over-thinking or too much of meaningless brainstorming on a particular topic. But, this is unwarranted and uncalled for. Too much thought process, dilutes the entire process, with zero results at the end of the day.

When a good idea is brought to the table, considerations and reconsiderations are called for. But it should be within the limits. Or else, the idea starts appearing more complex and its institutionalization on the ground even more complicated.

In sports, analysis paralysis prevents an athlete from reacting quickly, in politics; analysis paralysis can lead to long drawn out debates on a particular issue, Business analysis paralysis can keep the business owners from taking risks.

To keep analysis paralysis at bay:

Write down the pros and cons ASAP

Arrive at a decision

Jot down the steps for execution

Delegate those steps

Follow-ups

Entrepreneurs are more known for their risk riddled and not for their hesitant decisions. Take a cursory glance at the above mentioned steps and thereby make well-informed decisions. Undoubtedly, some will work and some won’t. But at least, you will get to explore the big-bang opportunities.

Serving Apricots tactically

A young army personnel in the US army was assigned a kitchen patrol duty. He was particularly responsible for the apricots in the chow line. However, most of the soldiers showed no interest in the apricots.

But this clever man decided to draw the attention of the soldiers by employing an innovative serving tactic.

Instead of asking the soldiers “would you like to have apricots,” he simply said, “One apricot or two?”

This became a successful strategy, as most of the soldiers took at least one apricot.

Just look back and figure out, how many times you gave your prospects/customers a scope to “slip” without a sell. Now do you think a change in your marketing strategy would have helped?

How many times do you give your prospects/customers a chance to "slip" sans any sales? Sometimes, don’t you feel that prospects and customers simply need a push in the right direction?

Tips to draw attention of the prospects/customers

Speak about your products/services with loads of enthusiasm

Take for granted that prospect/customer wants what your offer

Speak off the advantages

Compare competitive products available in the Market and Marketplace.

- Ask for the sale! Later…ask again!

If you practice these tips, you’ll be glad to see the good number of your products and services making its way in the market.

Constant Follow-ups v/s Inconsistent Follow-ups

Follow-up is considered crucial for any sort of business organization. But few entrepreneurs take follow-up quite seriously, while few take it with a pinch of a salt. Most small business owners fit in one of the two categories.

1] Inconsistent and Infrequent follow-ups- Most of the business owners don’t follow-up. So such owners are uselessly coughing up hard-earned money. Your contacts won’t know you and will consider you only an occasional pest.

2] Constant follow-ups. If you constantly bombard your contacts with countless messages, you will be considered as a mass marketer. And most probably, your mails can be directed to trash as spam mails.

So now you know that follow-ups can be a tricky issue. Each group will be reacting differently to your follow-ups. So eventually, you will have to test your group.

Some follow-up principles to keep in mind:

-Consistent follow-up should be done

-Send good number of messages to keep yourself alive in contacts’ memory

-Mail valuable and educational materials along with your marketing messages

-Your messages should help build relationships with your contacts

-Be personal, and somewhat entertaining

By following these principles, you will eventually find the perfect follow-up pace that is perfect for you, and your prospects.

Defining KPO: Knowledge process Outsourcing (KPO), is a kind of outsourcing, in which knowledge-related work is carried out by workers of a different company. The company may be located in the same country or in an offshore territory, basically to cut down cost. Unlike Business Process Outsourcing, KPO entails high-value work dealt by highly-skilled workforce.

Why Trade with India when it comes to SEO services?

If BPOs comes first, then KPOs comes next, or either way around. Nobody is better qualified than India, in providing KPO services. Spurred by country’s proven expertise in the BPO sector, the KPO sector too is gunning for greater glory. In fact, the sector has managed to cultivate a huge fan base in the western world. Trade with India is new buzzword in the modern world, and the KPO sector is apparently driving this buzz to greater heights.

Though India faces stiff competition from few countries like, India, Philippines, Mexico, Ireland, Russia, Canada and China, India undoubtedly has emerged as the frontrunner, if one factors in the comparative costs analyses of various aspects that occupy special significance in the KPO world.

Following factors are taken in to consideration for comparative cost analyzes between various countries like, India, Philippines, Mexico, Ireland, Russia, Canada and China.

• Resource Pool

• Resource Cost

• Government Polices

• Infrastructure

• Knowledge full / Expertise

Resource Pool

• India has some of the finest technical universities and the Indian Institute of Technology stands class apart. Around, 75,000 IT graduates and 20 lac English-speaking graduates pass out annually.

• The Philippines churn out only 380,000 graduates annually, of them only 15,000 are equipped with core technology knowledge.

• Russia may claim to have the third largest population of engineers and scientists but not many speak English.

• China’s basic problem is brain drain. Chinese technical schools churn out 50,000 graduates annually, but majority migrates to west. The ones that stay back are not acquainted with English.

• Canada has good educational system, with a qualified labor force of more than 16 million.

• In Ireland 34,000 graduate annually, only 5,000 belong to the technical field.

• Mexico provides U.S. companies with millions of Spanish-speaking people.

Resource Cost

• In India labor costs have been on the upswing but have been finely balanced by falling telecom rates. Normal salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500.

• Philippines have similar labor costs; technical salaries range from $5,000 to $10,000 annually and back office from $3,000 to $8,000.

• In Russia IT salaries range from $6,000 to $10,000. The country is lagging behind at the back-office front. Telecom structure costs are above average.

• In China, technical salaries range from $3,000 to $8,000 annually. Still a budding BPO market.

• In Canada being a near shore alternative to U.S. has higher IT salaries as opposed to most offshore countries. Technical salaries here range from $25,000 to $50,000.

• In Mexico labor costs is fairly lower; companies can save up to 50% by outsourcing to Mexico. The major bottleneck appears to be unreliable infrastructure.

• In Ireland Tech salaries range from $25,000 to $35,000, making Ireland really expensive in terms of labour.

Government Policies

• Outsourcing is woven into the fabric of the country, so much so that the Indian Government has appointed a national minister exclusively looking after the IT portfolio. Additionally, the government is for IT foreign ownership and imposes no export taxes.

• In Philippines the Government excuses companies from export taxes, fees, dues and licenses if they set up shop in one of the country’s IT parks. Government has appointed a special task force to look after the IT and KPO services.

• Russian Government follows old tax laws and structures that don’t benefit business.

• Chinese government’s trade policies and stifling regulations don’t favour trade. But things may turn for the better when China blends into the World Trade Organization.

• In Canada, there is negligible political risk. Government gives tax breaks on IT exports. NAFTA gives free trade market for IT services.

• Mexican government has so far failed to offer high level of incentives.

• In Ireland Favorable tax laws and technology-education fund provides incentives. Low or no political risk.

Infrastructure:

• Within the IT parks the facilities are excellent. But outside, one can’t be sure of the facilities provided.

• In Philippines in the last 13 years, IT parks have come up. Discarded U.S. military bases are being used as dependable telecom infrastructure.

• Russia’s few IT parks are good, but outside the quality and quantity nosedives.

• In China Infrastructure can be problem outside major cities, but China is enhancing its networks, particularly telecommunications as fast as U.S.

• Canada has excellent telecom infrastructure

• Mexico excellent technology parks

• Ireland also has solid technology parks

All the aforesaid factors have emboldened India’s status as the right KPO destination. Trade with India on the KPO front is a major draw for foreign players, considering India’s ever-growing population of highly educated people who take up high-end knowledge-based work and research with consummate ease. With the burgeoning of engineering and technical institutes in India, skilled manpower will never become an issue with India. As per the study conducted by Confederation of Indian Industry, India’s shift from a BPO destination to a KPO destination is inevitable.

The cost-efficiency factor

India’s unique selling proposition is its quality yet cost-effective workforce. So naturally, trade with India is turning out to be an attractive proposition for foreign companies. For example, drafting and filing of patent application in the US is very expensive. To draft and file an application in the United States and Trademark Office, companies have to fork out almost $10,000 to $15,000. If companies outsource their work to India, they can save up to 50 percent.

KPO services that could be outsourced to India:

• Training & Consultancy

• Research & Development

• Business and Technical Analysis

• Intellectual Property (IP) Research

• Learning Solutions

• Animation & Design

• Network Management

• Business & Market Research

• Pharmaceuticals and Biotechnology

• Medical Services

• Writing & Content Development

• Legal Services

• Data Analytics

More foreign firms heading towards India

To capitalize on the rising opportunities in India, many leading MNCs have come forward to trade with India like, Patent Metrix, Cantor-Colburn and Schwegman, Lundberg, and Woessner & Kluth have set up shop in India. Pharma giants like Astra Zeneca and GlaxoSmithKline have rolled out drug discovery centers at low-cost destinations to propel their research and development activities. Renowned telecom and IT companies, like Motorola, Intel, IBM, Cisco, Texas Instruments, Nokia and Philips have also launched their R&D centers in India.

It is anticipated that India will have higher growth rate in the KPO sector of 45 percent as opposed to 25 percent in the BPO segment. However, BPO will continue to play lead role in revenue generation and job creation, due to the voluminous nature of this industry.

The land of snake charmers has emerged as the El-dorada of techies. The dust bowl of the world has risen to dizzying heights. The world can’t help but wonder; how Indian Manpower has been looked up to as above, and distinct from the rest of the masses.

India’s huge exceptionally talented manpower are working for some top companies in the world, armed with some highly valuable degrees. Headquartered in America and other developed countries of the world, these companies are known to house only the best-of-best high-brow intellectuals. But Indian’s got what it takes (read; brains) and it’s no surprise Indian manpower is making their presence felt in a big way.

The following statistics might leave any American dumbfounded

• 32 % of NASA Scientists are Indians.

• 42 % of doctors abroad are Indians.

• 14 % of XEROX employees in the United States are Indians.

• 17 % of INTEL Scientists are Indians.

• 28 % IBM employees are Indians.

• 34 % of Microsoft employees are Indians.

India’s rich intellectual wealth is not a short term, disposable wealth. Thanks to the IIMs and the IITs. The Indian Institutes of Management graduates are billed equally or higher than the graduates of reputable business schools like Yale and Harvard. Interestingly, Indian Institute of Technology takes in less than 3 percent of their applications- a rate remarkably lower than most competitive American Universities. Additionally, more than 229 universities and 458 engineering colleges have been powering not just India’s but world’s economic growth.

Indian doctors, nurses, engineers, cooks and software developers are in high demand all across the globe. Indian manpower, especially in the Information Technology domain is ruling the roost. Interestingly, India over the years has become a happy hunting ground for developed countries. For instance, Germany has introduced a ‘Green Card’ to attract Indian manpower. Among the best opportunities on India’s plate is UK’s niche highly skilled migrant programme for young professionals.

Previously, however, Indian engineers, doctors and Business managers were in high demand. onetheless, over the years, there has been a basic transformation in the global labour market. Now, there are a growing opportunities for teachers, nurses and chefs in Australia, New Zealand, and other developed markets.

More and more, Indians are being directly hired by companies in the telecom, advertising, hospitality, biotech and financial sector from far of places like Germany, Hungary and Malaysia.

Indian Trade Exports have received a radical boost in the recent years, thanks to the 274 Special Economic Zones (SEZs) operational on the Indian soil, since April 2000. In the fiscal year 2007-2008, India’s exports from the functional SEZs, were up 92 percent at Rs, 66, 638 against Rs. 34, 615 in the previous year.

Exports from the functioning SEZs during the last five years

Clearly, SEZs have emerged as the key that have opened new door of opportunities for foreign players to Trade with India. They have emerged as one of the strongest pillars contributing to India’s Export growth.

SEZ- Overall Scenario

India was one among the foremost Asian countries that toyed with the idea of setting up an Export Processing Zone (EPZ) model to promote Indian exports. The idea translated into realty in 1965, with the first EPZ being launched in Kandla. However, in an attempt to further smoothen the roads for MNCs to trade with India, a need was felt to flaunt something new, precisely a zone that will make up for all the missing elements that came in the way, while promoting Indian exports, be it, stifling controls and clearances, under- rated infrastructure facilities and a oscillating fiscal regime and so forth. All this negative factors influenced the announcement of Special Economic Zones Policy in April 2000.

The principal objective of the policy was to promote SEZs as a prime driver for economic growth, by factoring in aspects such as, quality infrastructure coupled with compelling fiscal packages, and bare minimum regulations.

Broadly speaking, the objectives for launching SEZs in April 2000 are as follows:

• to promote trade with India, especially exports of goods and services

• to create more economic activity

• to attract investment from domestic and foreign sources

• to generate more employment opportunities

• to develop modern infrastructure facilities

Special Economic Zones can be defined as a specific region that has economic laws that are more flexible than a country’s usual economic laws. SEZs are a living roof of the potential of export-led growth strategy in propelling a nation’s into higher growth plane.

The Indian SEZ policies promote establishing of these zones in the government, private or joint sector. This policies offer brilliant opportunities, inviting both Indian and International foreign players to set up operations in India for manufacturing of goods and services. The units set up in the zone, need to be foreign exchange earners but will be free from any value addition or minimum export promotion requirements.

The Government of India has converted around eight EPZs into SEZs, to attract foreign players to trade with India. This include, Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra), Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Noida (Uttar Pradesh). Additionally, three new Special Economic Zones have started functioning, this include, Indore (Madhya Pradesh), Manikanchan - Salt Lake (Kolkata) and Jaipur.

SEZ Act 2005

According to the SEZ Act 2005, State Governments have a major role to play in promotion of exports and setting up of relevant infrastructure. A Single Window SEZ approval mechanism has been set up via a 19 member inter-ministerial SEZ Board of Approval (BoA). The applications submitted by different State Governments/UT Administration are perused by BOA periodically. All decisions of the Board of approvals are taken with consensus.

As per the SEZ Rules, different minimum land requirement are considered for different class of SEZs. Every SEZ is segregated into a processing area where only the SEZ units would be set up and the non-processing area where the support infrastructure would be established.

The SEZ Rules provide for:

• Single window clearance for setting up of an SEZ;

• Single Window clearance on matters relating to Central as well as State Governments;

• Single window clearance for setting up a unit in a Special Economic Zone;

• Simplified compliance procedures and documentation with an emphasis on self certification

Administration of SEZs

To effectively ensure the proper functioning of SEZ, a three tier administrative set up has been formularized.

(a) The Board of Approval- the top body in the Department

(b) The Unit Approval Committee at the zonal level- For approval of units in the SEZs and other pertinent issues.

(c) A Development Commissioner- to head each zone.

The Unit Approval Committee scrutinizes the performance of each SEZ units annually. The units are considered liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.

Advantages for SEZ Developers

The advantages that will compel overseas companies to Trade with India, or in each words form joint ventures and attract foreign investment in India include,

• Free import/domestic procurement of goods for development, operation and maintenance of SEZ units

• 100 percent Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50 percent for next 5 years and 50 percent of the ploughed back export profit for next 5 years.

• Free from minimum alternate tax under section 115JB of the Income Tax Act.

• External commercial borrowing by SEZ unit’s up to US $ 500 million in a year sans any maturity restriction via recognized banking channels.

• Free from Central Sales Tax.

• Free from Service Tax.

• Single window clearance for Central and State level approvals.

• Free from State sales tax and other levies as extended by the respective State Governments.

The major advantages available to SEZ developers include:-

• Free from customs/excise duties for development of SEZs for authorized operations approved by the Board of Approval (BOA).

• Income Tax exemption on export income for around 10 years in 15 years under Section 80-IAB of the Income Tax Act.

• Exemption from minimum alternate tax

• Exemption from dividend distribution tax

• Exemption from Central Sales Tax (CST).

• Exemption from Service Tax

Operational Special Economic Zones

Functional SEZs that encourage overseas player’s trade with India include:

1. Cochin Special Economic Zone

2. SEEPZ Special Economic Zone

3. Kandla Special Economic Zone

4. Madras Special Economic Zone

5. Visakhapatnam Special Economic Zone

6. Falta Special Economic Zone

7. Surat Special Economic Zone

8. Noida Export Processing Zone

9. Manikanchan, Salt Lake SEZ (Gems and Jewellery)

10. Indore Special Economic Zone (Multi Product)

11. Jaipur Special Economic Zone (Gems and Jewellery)

12. Mahindra City-SEZ (Information Technology)

13. Salt Lake Electronic City-SEZ (Software Development and IT enabled Services)

14. Mahindra City-SEZ (Apparel and fashion Technology)

Foreign Direct Investment Policy on SEZ

Foreign Direct Investment upto 100% is allowed via automatic route for all manufacturing activities in Special Economic Zones (SEZs), but there are few exceptions which include:

• Manufacturing of arms and ammunition, explosives and allied items of defense equipment, defense aircraft and warships

• Atomic substances

• Distillation and brewing of alcoholic drinks

• Narcotics and psychotropic substances and hazardous chemicals

• Cigarettes/cigars and manufactured tobacco substitutes

• Sectoral norm as informed by Government shall apply to foreign investment in services

New SEZs

SEZs schemes have been inspiring both Indian and foreign players to set SEZs in India. The list of developers who have recently set up fresh SEZs on Indian soil include,

• Nokia SEZ in Tamil Nadu

• Quark City SEZ in Chandigarh

• Flextronics SEZ in Tamil Nadu

• Mahindra World City in Tamil Nadu

• Motorola, DELL and Foxconn

• Apache SEZ (Adidas Group) in Andhra Pradesh

• Divvy’s Laboratories, Andhra Pradesh

• Rajiv Gandhi Technology Park, Chandigarh

• ETL Infrastructure IT SEZ, Chennai

• Hyderabad Gems Limited, Hyderabad

India, a big mart for the mining industry. Coal India Ltd (CIL) and its eight subsidiaries are vigorously looking out for suitable suitors to develop its 18 abandoned coal mines. Arcelor Mittal, Anglo Australian major Rio Tinto, and Essar Mineral Resources are among the top 10 contenders for the post. These mines having estimated reserves, exceeding 1,600 million tonnes, had been abandoned because they were water-logged and CIL apparently lacked resources to develop them.

India literally is a gold mine, in terms of rich mineral resources. India’s unprecedented higher growth trajectory, demands rapid development of the mining sector, on which manufacturing sector largely depends and sustains. India in toto, produces 89 minerals; of which 4 are fuel minerals, 11 metallic, 52-non-metallic and 22 minor minerals. Even the world markets have being heavily banking on the Indian Mining Industry.

Why world can’t undermine India’s mining industry’s potential?

• India is the largest producer of mica blocs and splittings

• Third among global chromite producers.

• Third in the production of coal, lignite, barytes.

• Fourth in the production of iron -ore.

• Sixth in the production of bauxite and manganese ore.

• Tenth in the production of aluminum

• Eleventh in the production of crude steel

Mines: An Overall scenario

India, a big mart of Mineral and Metals Industry

Mineral Production

In the year, 2007-08, the total value of mineral production in the country has been nothing short of spectacular as it was projected at around Rs. 99533.10 core-an increase of 9 percent over the previous year. This projection excludes the revenue generated from atomic minerals. In 2007-08, the provisional value of fuel minerals was around Rs. 68,229.40, metallic minerals Rs. 19,755.66 crore and non-metallic minerals Rs.11, 548 crore.

Exports

The major item of export during 2006-07 was cut diamonds, which comprised 59.2 percent, iron ore’s contribution was 21.8 percent, granite 5.8 percent, alumina 2.3 percent, precious and semi-precious stones 1.0 percent and chromite contribution’s was of 0.98 percent. Building and monumental stones, emerald, coal, marble and bauxite are the other important minerals exported during the year 2006-07.

Government Initiatives

Survey and Exploration initiatives by Govt. of India:

• Geological Survey of India (GSI): An organization that is into earth science studies was established in 1851. It is a subordinate office of the Ministry of Mines; Govt. of India

• Mineral Exploration Corporation Ltd (MECL): Since its incorporation in the year 1972, MECL is into mineral exploration activities and so far has added 129130 million tonnes of mineral reserves to the National Mineral Inventory.

• The Indian Bureau of Mines (IBM): It is a subordinate office under the Ministry of Mines. It is primarily into promotion and conservation of minerals, protection of mines, environment and scientific development of mineral resources of the country.

• Hindustan Copper Limited (HCL): Set up in 1967, it was established to take over all plants, projects, schemes and studies relating to the exploration and exploitation of copper deposits, including smelting and refining from National Mineral Development Corporation Ltd.

• National Aluminium Company Ltd (NALCO): Incorporated in 1981 it is Asia’s largest integrated alumina- aluminium complex, comprising bauxite mining, aluminium smelting and casting, alumina refining, power generation, rail and port facilities.

Performance of Non-Ferrous Minerals/Metals

Aluminium

From April-November 2007, the total world aluminum supply was around 25.614 million tonnes as against the world consumption of 25.387 tonnes, thus showing an excess of around 0.227 million tonnes.

Copper

The copper production in India is on the upswing, from a meager 47,500 tonnes per year in 1997, it has increased to 9,47,500 tonnes in 2007-08, thus transforming India into net exporter of refined copper.

The estimated production, consumption and export of refined copper from India for the year 2007-08 are as follows:

• Refined Copper Production: 7, 20,000 MT

• Refined Copper Consumption: 7, 00,000 MT

• Refined Copper Export: 2, 00,000 MT

Lead & Zinc

Lead & Zinc production is also showing upward spiral. From 2, 53,461 tonnes in 2006, zinc production rose to 2, 89,678 tonnes in 2007. The production of saleable lead increased from 31,952 tonnes in April-December 2006 to 41, 258 tonnes in April-December 2007.

Major Indian Players in the Indian Mining Sector

The prominent players in the Mining sector are segregated on the basis of the minerals manufactured by them namely,

• Exploration and Production of Coal / Lignite: Coal India Ltd, Neyveli Lignite Corporation, IISCO etc.

• Rock - Phoshate and Barytes Mining: Rajasthan State Mines and Minerals Ltd, Andhra Pradesh Mining Development Corporation.

• Exploration of Metals (Copper, Bauxite, Iron Ore, Chromite, Lead- Zinc): NALCO, BALCO, Mineral Exploration Corporation Ltd, Bharat Gold Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd, Hindustan Copper Ltd, Sikkim Mining Corporation.

• Copper - Ore Mining: Hindustan Copper Ltd.

• Bauxite Mining and Aluminium Production: National Aluminium Company.

• Iron Ore Sector: National Mineral Development Corporation, Kudremukh Iron Ore Company, Steel Authority of India Ltd, Orissa Mining Corporation.

Global Companies in Indian Mining Sector

• Transworld Garnet Co., Canada

• Anglo American Exploration (India) BV, Netherlands

• Phelps Dodge Exploration Corpn, USA

• BHP Billiton,Australia

• Pebble creek Resources Ltd., Canada

• Meridian Peak Resources Corpn,Canada

• Rio-Tinto Minerals Development Ltd., UK

• Metdist Group, UK

• De-Beers Consolidated mines ltd., South Africa

Foreign Direct Investment (FDI) in the Indian Mining sector

Cent percent foreign equity holding is allowed on the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones.

International Cooperation in the Mining Sector

India has signed number of MOU in an endeavor to promote the Indian mining industry.

The list is as follows:

• MOU with Uzbekistan

• MOU with China

• India-Australia joint working group on energy and minerals

• Indo-French Working Group on Mineral Exploration and Development

• India-Canada Geoscsiences Working Group