BUSINESS ENVIRONMENT PRESENTATION

Submitted to: Dr. Ranjan Upadhyaya FMS WISDOM Banasthali University

ROLE OF INDIAN INDUSTRIAL POLICY IN INTERNATIONAL BUSINESS

Submitted By : Aayushi Jain (7133) Arnima Agarwal (7154) Himani Chawla (7186) MBA 3rd sem WISDOM

FRAMEWORK
Introduction on industry and industrial policy History of industrial policy Key areas of industrial policy International business Need and type of international business Foreign relation of India Indias bilateral relations with China and USA Trade relations of India with respect to China Trade relations of India with respect to USA

INTRODUCTION
Industry : any type of economic activity producing goods and services.

Industrial policy : government policies that are directly aimed at inducing growth and structural change in the industrial sector.

1980 1977 1973

1956
1948

OBJECTIVES
To provide support Foreign investment and technology To abolish monopoly Encouraging entrepreneurship

KEY AREAS
Industrial licensing policy Foreign investment policy Foreign technology agreements Public sector policy MRTP Act

INDUSTRIAL LICENSING POLICY

3 categories of Industries Moving away from capacity licensing Allowing private sector

Abolish licensing

FOREIGN INVESTMENT POLICY

Relationship between foreign and domestic industry Direct foreign investment up to 51% Promotion of export of Indian products

FOREIGN TECHNOLOGY AGREEMENT

Acquisition of technological capability Avoiding unnecessary governmental interference Independence of absorption of foreign technology

PUBLIC SECTOR POLICY

Public ownership and control Low rate of return

Priority areas for growth

MRTP ACT
Objectives
Concentration of economic power Control of monopolies Prohibition of unfair trade practices

INTERNATIONAL BUSINESS
Definition consists of transactions across national borders

Need Globalization of firms International trade benefits

TYPES OF INTERNATIONAL BUSINESS

Export-import trade Foreign direct investment Licensing

Franchising Management contracts

14

FOREIGN RELATIONS OF INDIA

Formal diplomatic relations Regional & global power Founding member of several international organization

BILATERAL RELATIONS
BETWEEN INDIA & CHINA Single largest trading partner of India Improved relations PRC president visited India

CONTD.
BETWEEN INDIA & USA Pre Independence era Post Independence era US President visited India Agricultural cooperation Indian PM visited USA

IMPACT OF INTERNATIONAL BUSINESS ON INDIA

Growth rate Stock market

High skilled manpower

RECENT CHANGES IN INTERNATIONAL BUSINESS

World trade decline

Rate of globalization

Regionalization
Shifting participation

EXPANSION OF INTERNATIONAL BUSINESS

$200 billion - $7.5 trillion Twice of sales

TRADE RELATIONS BETWEEN INDIA AND CHINA

India considers china as its largest trading partner.
Imports by India from china
Electrical Machinery
Plastic Organic Chemicals and Inorganic Chemicals Iron And Steel, Iron/Steel Products Fertilizers Silk, Fabric Vehicles

CONTD.
Imports by China from India
Iron And Steel Organic Chemicals Salt; Sulphur; Earth, Stone Cotton & Fabric Copper Electrical Machinery Artificial Flowers, Feathers Dye, Paint Precious Stones Fish And Seafood

INDIA CHINA TRADE (2004-2010)

Year
2004
Growth 2006 Growth 2008 Growth 2009 Growth 2010

Indian Imports Indian Exports

5925.58
77.15% 8934.64 50.5% 14588.04 63.23% 24036.44 64.7% 31500 (approx) 31%

Trade Volume
13,598.09
78.99% 18702.98 37.4% 25057.22 33.87% 38695.64 54.42% 51800 (approx) 34%

7672.51
80.41% 9768.34 27.2% 10469.18 7.05% 14658.79 40.02% 20300 (approx) 39%

INDIA USA TRADE RELATIONS

Global and strategic partnership
Growths up to US $ 31.917 billion in 2006

FEATURES
Enhanced hi tech trade between two countries Agricultural alliance

Investment sector
Knowledge work Economic cooperation

EXPORTS FROM INDIA TO USA

Gems and jewels Textiles

Organic chemicals
Agricultural products Growth in exports by 16.07%

USA EXPORTS TO INDIA

Machinery Stones Metals Organic chemicals Aircraft Etc..

IMPEDIMENTS (OBSTACLES)
High tariff High surcharges

High taxes on imports

Non tariff barriers on USA exports to India Etc..

HIGHER EDUCATION IN USA FOR INDIAN STUDENTS

Full bright program Southern California University of taxes Arizona state university Etc..