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Potential Sectors for Expansion of Exports from
India to Colombia
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Introduction Gained independence from Spain on 20thJuly,
1810.
Most populated country in Latin America, afterBrazil & Mexico
Worlds largest producer of Emeralds.
Major industries in Colombia include Coffee, Oil &Gas, Mining, Emeralds, and Consumer goods.
The bilateral trade between India & Colombia isUS$ 1,446.47 million (2011-12 data)
Major industrial areas in Colombia are Bogota,Cali and Medellin.
Importante Colombian Banks are Ban Caf,
BancoPacifico,BancoIndustrial etc.
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Economy of Colombia
Category Colombia India
Population (2012 est.) 45,239,079 1,205,073,612
Area (in squarekilometer) 1,138,910
3,287,263
Total land (in squarekilometer) 1,038,700
2,973,193
Arable land (aspercentage of total land) 2.01%
48.83%
Cultivated land (insquare kilometer) 15,603
622,860
GDP (Purchase PowerParity), 2011 $471.9 billion
$4.421 trillion
GDP (Nominal), 2011 $322.4 billion $1.798 trillion
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Ease of doing Business in Colombia
Doing Business 2013
Rank
Doing Business 2012
Rank
Change in Rank
45 44 -1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business61 65 4
Dealing with Construction
Permits 27 26 -1
Getting Electricity134 129 -5
Registering Property52 53 1
Getting Credit70 67 -3
Protecting Investors 6 6 No change
Paying Taxes99 99 No change
Trading Across Borders91 91 No change
Enforcing Contracts154 151 -3
Resolving Insolvency21 19 -2
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LAC Programme
FOCUS: LAC launched by the Commerce Ministry in November 1997 &extended up to March 2014.
The Programme Aims at:
1. Sensitizing the organizations viz. Export Promotion Councils, Chambers ofCommerce & Industry, EXIM Bank, ECGC, etc.
2. Granting various incentives to Indian exporters and launching of exportpromotion measures
3. Focusing on the Latin American region with added emphasis on major tradingpartners of the region.
4. Focusing on the following major product groups for enhancing Indias exportsto the Latin American region:
o Textiles including ready-made garments carpets and handicrafts
o Engineering products and computer software
o Chemical products including drugs/pharmaceuticals
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Improved Market Access
1. Foreign Trade Policy initiatives:
Double Weight: To exports made to LAC
Focus Market Scheme: To offset high freight cost and other externalities, totalduty credit scrip @4% of FOB value.
2. Market Development Assistance (MDA):
Grant to Individual Exporters : Cost of built up stalls along with international airfare in economy/excursion class shall be reimbursable to the member-exportingcompanies of Export Promotion Councils (EPCs) if eligible under MDA Guidelineswith an upper ceiling of Rs. 180000/- per company per event for participating in
Trade Fairs/Exhibitions in LAC
For EPCs etc. led Trade Delegations, 60% of the rent of the Councils central stalland other organising expenses subject to a limit of Rs. 15 lakh per event.
60% of the total cost of Translation Facilities in foreign languages and vice versa,Product Catalogues in CD Rom will be reimbursable
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EconomicInfrastructureFacilities.
1. ECGC Cover: As perECGC Country Risk andCover Policy on LACregion, Colombia placedin low risk categories ofA1.
2. Lines of Credit: The
EXIM Bank has currentlyextended lines of credit tothe followingbanks/Governments inColombia (as on05.09.2012)
Sr. No.
1.
2.
Borrower
Banco de
ComercioExterior deColombia S.A.
(Bancoldex),Colombia
CorporacionAndina deFomento(AndeanDevelopmentCorporation)(coveringBolivia,Colombia,Ecuador, PeruandVenezuela)
Amount
of
Credit
$10 M
$10 M
Purpose
Generalpurpose
Generalpurpose
Tenure
Up to 5years
TrancheA:
Up to 5years
TrancheB:
Up to 2years
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Opportunities & Challenges
Opportunities
The growth projection for 2012 forColombia is 4.5% (ECLAC)
Colombia in Indias Top 10 tradingPartners in Latin America.
No particular Trade Block likeMERCOSUR(trade bloc of Argentina Brazil Paraguayand Uruguay)
Regional trade arrangements such as
LAIA(Latin American Integration Association)
Challenges
Distance
Language barriers
Inadequacy in the exchange ofinformation
Absence of direct shipping and air
links.
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Top items of Indias exports to Colombia (2011-12)
Petroleum (crude & products)
Transport equipments
Drugs, Pharmaceuticals & finechemicals
Machinery and Instruments
Plastic & Linoleum products
Manmade Yarn, Cotton YarnFabrics
Inorganic/Organic/Agro Chemicals
Manufactures of Metals
Primary & semi-furnished iron& steel
RMG Cotton including accessories
Rubber manufactured products
except foot wares.
Other Ores and Minerals
Electronic Goods
Dyes & Tar chemicals
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Potential Products Identified for Exports to Columbia
1. Cotton.
2. Vehicles other than railways or
tramways rolling stocks and partsand accessories thereof.
3. Organic chemicals.
4. Articles of apparel & clothing
accessories not knitted orcrocheted.
5. Pharmaceutical products.
6. The other made-up textile
articles; sets; worn clothing & worntextile articles; rags.
7. Miscellaneous chemicalproducts.
8. Nuclear reactors, boilers,machiner a liances Parts.
9. Man made filaments.
10. Electrical machinery &
equipments and parts thereof;sound recorders and reproducersTV
11. Wool fine or coarse animal hairhorse hair yarn & woven fabrics.
12. Tanning or dyeing extracts;tannings & their derivatives; dyespigments & other colouring matter;paints & varnishes; putty & othermastics; inks.
13. Articles of apparel and clothingaccessories knitted or crocheted.
14. Plastic and article thereof.
15. Miscellaneous articles of basemetals.
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Potential Products Identified for Exports to Columbia (Cont)
16. Optical photographic cinematographic measuringchecking precision medical or surgical instruments
and apparatus; parts and accessories thereof.
17. Coffee, tea, mate and spices.
18. Carpets and other textile floor covering.
19. Articles of iron and steel.
20. Cereals.
21. Mineral fuels mineral oil & products.
22. Aircraft spacecrafts.
23. Iron & steel.
24. Rubber & articles thereof.
C l bi S i l
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Colombian Social
and BusinessCulture
DO expect to spend a lot oftime getting to know yourColombian businesscounterparts before any
business takes place.
DO translate all your marketingliterature, business cards andany other documents youpresent in your business
dealings into Spanish. Failure todo so may jeopardize yourbusiness potential.
DO accept invitations from yourColombian business
counterparts to social orbusiness occasions. Socialevents are an ideal time todevelop relationships which arean essential part of Colombianbusiness culture. They are alsoa great opportunity to
experience and learn moreabout Colombian culture.
Key Concepts:
Family
Indirect
Communication
Time
Business Etiquette (Dos and Donts)DONT rush business dealingswith your Colombian colleaguesand avoid pressing for finaldecisions.
DONT be overly aggressive whilenegotiating business deals, as it isconsidered rude and oftenperceived as arrogant.
DONT ignore formal Colombiandining etiquette as this will reflectpoorly on you as an individual andwill also negatively impact anybusiness dealings in Colombia
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