INDIA

A12149 Maiko Yoshida

3,287,263㎢7th largest

1.27billion

2nd largest

Hinduism

Islam

Sikhism

Christianity

Buddhism

Jainism

Zoroastrianism

Judaism

Religions

GDP: $1,876,797,199,133

GDP per capita: $1,165 (148th in 2013)

GDP growth: 5.0%

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

Japan to India

Toilet High quality of toilet

There are not enough toilets

Fixed price: ¥360,000

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)

Thank you!