Singapore, 3 April 2009 - Singapore and Indian SMEs in the engineering services and products field were apprised of opportunities for business collaboration at a Buyer-Seller Meet and business matching session organized by the Singapore Business Federation's (SBF) India Business Group, the Singapore Manufacturers' Federation (SMa) and the Engineering Export Promotion Council of India (EEPC).
79 participants from the financial, import and export, real estate, chemicals, offshore oil rig, ship repair, defence technologies, precision engineering and filtration technologies sectors were given an update by industry experts on how they can partner Indian SMES to tap into burgeoning opportunities in the manufacturing sector.
Mr. K. V. Kartha, Managing Director, M.E. Energy Private Limited and the leader of the EEPC delegation expressed his appreciation for the organized efforts of SBF, SMa and EEPC for a good turnout in the event and highlighted that Singapore's strategic location makes it an ideal re-export hub for Indian companies.
Key facts on India's economy and manufacturing sector
Mr. Terence Khi, Manager, South Asia International Operations Group, IE Singapore, provided an analysis on the different sectors of the manufacturing industry and the different manufacturing regions of India and shared the following pointers:
- The investment in infrastructure is estimated to reach US$125 billion between 2005 and 2010.
- Foreign Direct Investments (FDI) into India in 2008 was US$33 billion, with US$3.7 billion from Singapore, the second largest investor.
- Manufacturing growth averaged 9% in the last 4 years (2004 to 2008), with a record of 12.3% in 2006-2007
- According to a study by the Confederation of Indian industry and the Boston Consulting Group, the manufacturing sector is estimated to command a market capitalization of US$520 billion by 2014-2015 as opposed to US$272 billion as of September 30, 2007
- India's manufacturing sector is expected to grow at 12% to 14% over the next decade, while India's economy is expected to grow at 8% to 10% over the next decade.
- India has investment friendly policies - relaxed FDI norms, low tax rates and reduced import duties. For example, the Government of India offers a five-year tax holiday for power projects, firms engaged in exports, new industries in notified states, units in Electronic hardware-software parks, the Export Oriented Units (EOUs)and Free Trade Zones, as well as tax deductions of 100% on export profits. For the state governments, each offers its unique industrial and sectoral policy and incentives.
- The quality of the Indian work force is one of India's key competitive advantages.
- India is ranked 43 in the latest Global Competitiveness Index ahead of other BRIC (Brazil, Russia, India and China) economies.
SBF CEO, Mr. Teng Theng Dar, noted that "Not only has bilateral trade soared between the two nations since the signing of the Comprehensive Economic Cooperation Agreement in 2005, Singapore companies have become increasingly involved in infrastructure and real estate projects in India and have ventured profitability into trading of commodities and consumers goods. India's reform program has borne fruit, with growth averaging at 6 percent a year since the reforms started in 1991. One remarkable development has been the phenomenal growth of Indian engineering exports to Singapore since the conclusion of CECA. Indian engineering exports to Singapore grew tremendously in the last few months - from $348 million in April-July 2007-08 to $1,164 million in April-July 2008-09, posting a growth of 234.41 percent (Statistics from EEPC India). One thing is now certain - there is no turning back. As Dr Manmohan Singh (India Prime Minister) has said, "No power on earth can stop an idea whose time has come."
"Today's Buyer - Seller Meet here in SBF signals our intent to organize platforms such as these to help create and generate new business to business and business for business deals for both Singapore and Indian enterprises. It is our sincere hope that through this enterprise exchange between Singapore and India, we can make the successful difference for our companies to survive and prosper in these current difficult and challenging economic times," Mr. Teng added.
Mr Gwee Seng Kwong, Secretary General, SMa, gave participants a glimpse of future opportunities they can expect from India with the likely signing of Free Trade Agreement in goods between India and ASEAN come April 2009. This agreement may boost India-ASEAN trade and it may surpass US$ 50 billion by 2010. He also quoted a report by Federation of Indian Chambers of Commerce and Industry that stated India's potential to be the global manufacturing hub for luxury brands over the next five years with the manufacturing of luxury items becoming a US$ 500 million industry during this period.
Deputy High Commissioner of India Mr. Tsewang Namgyal told participants, "For India, Singapore constitutes a bridge into the ASEAN as well as Asia Pacific. Combined with a positive business environment, strong air connectivity and the presence of a large Indian community, Singapore has emerged as the key offshore hub for many Indian corporations. The global financial crisis and economic downturn has led to drastic contraction in industrial production and international trade. Both the countries should explore all opportunities for early recovery of our respective economies." Participants also benefited from an insightful presentation on India's financial framework by Mr. Pradip Kumar Tagore, Chief Executive of UCO Bank, formally formerly United Commercial Bank.
Mr. Tan Kia Oh, a regional consultant with Tractors Singapore Limited, who participated in this event, said, "Some of the plus points of this event were the useful industry brochures and good networking opportunities with overseas contacts, whom we can have potential collaboration with for future projects."
The SBF Global Business Division South Asia Division (GBD-SA)
Over the last year, the GBD-SA has actively organized business matching events with various Indian industry partners, enabling local SMEs to establish contacts and explore business deals with their South Asian counterparts. These include a networking event with the Chemicals and Allied Products Export Promotion Council of India (CAPEXIL), a Trade & Investment Seminar On Bangladesh and "Franchising Opportunities in India" seminar in February 2009 The GBD-SA has also organised market seminars on the Indian Trading sector, F & B sector, and trade & investment opportunities in Sri Lanka in 2008.
For more information on GBD-SA events, please contact:
Teo Chi Howe
Senior Executive, South Asia
Singapore Business Federation
Email: market.sa@sbf.org.sg
Tel: 6827 6855
About Singapore Business Federation
For media enquiries please contact:
Gerald De Cotta, Tel: 6827 6896
Genette Koh, Tel: 6827 6874
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