presents
ET SME INTERNATIONAL TRADE FORUM SERIES On Indo - UK Trade
India and UK's trade relations have undergone a massive change from the colonial period. Once perceived as a less developed country, India had transformed itself into the fastest growing economies of the world currently. It is not hidden that India is world's fourth largest economy in purchasing power parity terms and UK is the 4th in GDP dollar terms.
Indian market is growing rapidly in Industry, Service, Retail, IT, and Food Processing
manufacturing sectors and flow of FDI has increased during the last decade. This growing trend creates excellent opportunities and challenges for Indian Companies. In these developments, Micro, Small and Medium Enterprises play an important role as the driving force for growth of national economy through employment generation, investments and exports. Indian SME sector produces 40% of the total industrial output of the country and contributes 34% to the exports.
Exports from the SME sector have experienced excellent growth rates since the turn of new millennium. This has been mostly fuelled by the performance of units in sectors such as garments & knitwear, leather, auto components, drugs & pharmaceuticals, processed foods and gems & jewellery. India exports to UK are textiles and readymade garments, gems and jewellery, footwear, leather and leather goods, engineering goods, metal manufactures, power generating equipment, software services, pharmaceuticals, chemicals, marine products, rice, tea and other agricultural products like nuts and preserved fruits and vegetables. Today, SMEs in India are grappling with fast changes at the market place that is transiting from a controlled economy to a free market setup. The export of gems & jewellery and drugs, chemical and pharmaceuticals have achieved a growth of 0.36% and 10.35% in Apr 2006 - March 07 respectively.
In 1993, in response to opportunities created by the bold and imaginative liberalization programme introduced in India, the then British and Indian Prime Ministers publicly endorsed the creation of the Indo-British Partnership Initiative (IBPI). Its mandate is to increase bilateral trade and investment with particular emphasis on small and medium enterprises and to promote technology and science links between the two countries. The Success of the Partnership Is Reflected by 69% increase in bilateral trade since the Indo-British Partnership was formed in 1993. UK-India bilateral trade of goods and services was nearly £5 billion in 2002, UK is the third largest overseas investor after Mauritius and the US in terms of new investments approved, Excluding investment from Mauritius, UK is the second largest foreign direct investor in India after the US, UK is the largest market for Indian IT services (12% of IT services exports -- nearly $1 billion). India's share in world exports in merchandise goods has increased to 0.8% in 2002 from 0.4% in 1992-93 and 0.7% in 2001. If the present trend is maintained we might even reach 1% share in world exports before the target year of 2007. As per the current cumulative figures, overall exports from India during the period April-February 2007 were $109.1 billion ($1, 09,126 million) against $88.7 billion ($88,760 million) during April-February 2006, showing a growth of 22.95 per cent. The exports to the UK market make up to 17% .of the total exports from India and have increased by 9.64% in 2006-07
The prevailing market situation in the European Union (EU) countries indicates that the Indian SME products have a promising future there. Though the EU Governments have identified SMEs as a major vehicle with focus on innovations, a close observation of the European markets would reveal that very few SMEs are moving on the innovative line, in this market situation Indian SMEs should examine their competitiveness.
ET Intelligence Group (ETIG), the research arm of The Economic Times, the second largest English language business daily in the world, conducts Knowledge Forums to provide a common platform for knowledge dissemination. In its endeavor to "power its readers with knowledge", The Economic Times joins hands with HSBC to bring together eminent persons to discuss and suggest ways of increasing India's trade with UK.
The discussion will focus on the growth in trade, the specific regulations that help or hinder trade, the role of the government and international trade bodies, what kind of changes are required at the policy level, the legal and other related issues.
The panel discussion will feature eminent persons from the government, trade and industry who will discuss the topic of "Indo - UK trade."
The learning's of this discussion will be carried in The Economic Times.
The discussions will broadly focus on:
Trends in Indo - UK trade for SME's
Opportunity Industries and Declining Industries
Regulation, Quotas and Concessions for UK trade
Marketing and Distribution Challenges
Increasing competitiveness and how the SME's are gearing for the same
Financing and banking product usage trends - mitigating forex fluctuation and other risks, raising low cost finance, need for service and speed, etc.
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