india's presentation
TRANSCRIPT
Major industries in India
Textile industry
jute, wool, silk, cotton
Chemical industry
plastic, pesticides, beauty products
Cement industry
has 115 cement plants and 300 small cement plants
Steel industry
400 years old (considered to back bone of any nation)
Software industry
massive expansion in the last 10 years
Petroleum industry
one of the most flourishing oil markets in the world
Environment (current issues)
Deforestation
Soil erosion
Overgrazing
Desertification
Air pollution
Water pollution
Tap water is not potable throughout the country
Huge and growing population is overstraining natural resources
Language
There is no national language
Official language: Hindi
Commonly used: English
Over 400 languages
Over 2,000 dialects
It’s illegal to take Indian currency out of India
Breathing the air in Mumbai, for just one day is equivalent to
smoking 100 cigarettes
A man married a dog in India as atonement
India has more mobile phones than toilets
India has the largest slave population in the modern world
with over 14 million slaves
Facts in India
Number of Japanese companies in India
1,072 Japanese companies in India (2013)
Number is doubled in 5 years
Parts manufacturer, health line, service industry
Advantages and Disadvantages
of Doing Business in India
Advantages
-Huge market size and a fast developing economy
-Availability of diversified resources and cheap labor force
-Increasing improvement of infrastructure
-IT revolution and English literacy
Disadvantages
-Lower and middle class person still suffers from budget shortage
-Infrastructure needs to be improved
-heavy regulation
Ease of Doing Business in India
Rank 140th in 2014
Starting a business: 156th
Dealing with construction permits: 183rd
Enforcing contracts: 186th
Paying taxes: 154th
Starting a business in India
13 procedures in India(7.9 in South Asia, 4.8 in OECD)
30 days in India(16 days in South Asia, 9.2 days in OECD )
Starting a business in India1. Obtain director identification number (DIN) online 1 day
2. Obtain a digital signature certificate 1 day
3. Reserve the company name with the Registrar of Companies (ROC) online
2 days
4. Pay stamp duties online, file all incorporation forms and documents online
and obtain the certificate of incorporation 5 days
5. Request and obtain Certificate to Commence Operation 5 days
6. Make a seal 1 day
7. Obtain a Permanent Account Number (PAN) form an authorized franchise
or agent appointed by National Securities Depository Services Limited
(NSDL) or Unit Trust of India (UTI) 7 days
8. Register with Employees’ Provident Fund Organization 12 days
9. Register for VAT online 10 days
10. Register for medical insurance (ESIC) 9 days
11. Obtain a tax account number for income taxes deducted at source from
the Assessing Office in the Mumbai Income Tax Department 7 days
12. Register with Office of Inspector, Mumbai Shops and Establishment Act
2 days
13. Register for profession tax 2 days
Government incentives
No special incentives for foreign affiliated firms except......
Infrastructure sectors
Investing for research and development
investing for generating electricity
Renewable energy
Mineral oil sectors
Hospitals
Food processing industry
etc.
Infrastructure sectors
Deduction of 100% of profits from business
for 10 years
Mineral oil
Deduction of 100% of profits from the Business of
Refining Mineral Oil for 10 years
Hospital
Deduction of 100% of profits from business of
operating and maintaining Hospital for 5 years
Special Economic Zone (SEZ)
referring to economic zone
In these zones, business and trades laws differ from the rest of the country
Offering tax and other incentives to their resident businesses
The objectives of SEZs:
1. Generation of additional economic activity
2. Promotion of exports of goods and services
3. Promotion of investment from domestic and foreign sources
4. Creation of employment opportunities
5. Development of infrastructure facilities
Examples of the advantages setting up a manufacturing platform within a SEZ
Duty free domestic procurement of goods for the development and
maintenance of your company
100% income tax exemption on export income for first five years, 50% for
five years following
Exemption from Minimum Alternate Tax, Central Sales Tax, Service Tax,
state sales Tax, and a number of other taxes usually levied by local
governments
External commercial borrowing allowed up to US $500 million a year
without restriction
Permission to manufacture products directly, as long as the goods you are
producing fall within a sector which allows 100% FDI
Trade agreements
-India- Sri Lanka Comprehensive Economic Partnership Agreement
-India- Thailand Comprehensive Economic Cooperation Agreement
-India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA)
-India-SACU Preferential Trade Agreement (PTA)
-India-Chile Preferential Trade Agreement (PTA)
-MERCOSUR Preferential Trade Agreement (PTA)
-India-Pakistan Trading Arrangement
-Asia Pacific Trade Agreement
-India-New Zealand Free Trade Agreement
-India Canada Comprehensive Economic Partnership Agreement
-India- Australia Comprehensive Economic Cooperation Agreement (CECA)
-India- Indonesia Comprehensive Economic Cooperation Agreement (CECA)
-India-Israel Free Trade Agreement
-Agreement on South Asia Free Trade Area
http://commerce.nic.in/trade/international_ta_current_details.asp
From Kobe port to Chennai port
360,000 x 0.6 = 216,000 (cost)
216,000 x 0.03 = 6,480 (freight)
216,000 x 0.05 = 1,080 (insurance)
216,000 + 6,480 + 1,080 = 223,560 per unit
Chennai port to the place
223,560 x 0.288 = 64,385.28
(Basic custom duty + additional duty + additional duty of customs)
223,560 + 64,385 = 287,945
287,945 x 0.01 = 2,879 (transport cost)
287,945 + 2,879 = 290,824
290,824 x 1000 = 290,824,000
¥290,824,000(Cost that Indian company imports toilet and send it to the place)
India to Japan
Tea set
(Darjeeling, Nilgili, Assam) Premium
Selling at department store or a year end present
Improving India’s image
From Chennai port to Kobe port
2,000 x 0.6 = 1,200 (cost)
1,200 x 0.03 = 36 (freight)
1,200 x 0.005 = 6 (insurance)
1,200 + 36 + 6 = 1,242 per unit
Kobe port to SOGO in Sannomiya
1,242 x 0.1 = 124.2 (tax)
1,242 + 124 = 1,366
1,366 x 0.01 = 13.66 (transport cost)
1,366 + 13 = 1,379
1,379 x 1,000 = 1,379,000
¥1,379,000(Cost that Japanese company imports and bring it to Sogo)