1

PROJECT REPORT ON
(INTERNATIONAL MARKETING)

M. Com PART II SEMESTER III

Submitted by
(Akash Shah)
ROLL NO. ( 113 )
Under the guidance of
Prof. Sameer Velankar
Submitted to
UNIVERSITY OF MUMBAI
In partial fulfillment of the required for the award of degree
Master of Commerce Business Management

GURU NANAK KHALSA COLLEGE OF ARTS, COMMERCE & SCIENCE
Nathalal Parekh Marg, Matunga (E), Mumbai 400 019

2013-14




2

DECLARATION


I, ( Akash Shah ) of GURU NANAK KHALSA COLLEGE OF ARTS, COMMERCE &
SCIENCE pursuing M. Com Part II specialization in Business Management hereby declare
that I have completed the project on (International Marketing) in the academic year 2014-15
for the Semester - III programme.

The information submitted is true and original to the best of my knowledge.




Signature of the Student,
(Akash Shah)









3

ACKNOWLEDGEMENT

At the outset, I am thankful to the University of Mumbai for offering the project in the
syllabus. I would like to thank the Principal Dr. Ajith Singh of the College for giving me the
opportunity for pursuing M. Com Part II Semester III programme from the esteemed
College.
I would like to thank our M. Com programme Co-ordinator, Prof. Sameer Velankar for
providing us the necessary help and support in carrying out our project work.
I would like to thank my project guide, Prof. Sameer Velankar in giving me the valuable
guidance and suggestions in completion of my project work. It would not have been possible
for me to complete the task without their help and guidance.
I must mention my hearty gratitude towards other faculties, my family, and friends who
supported me to go ahead with the project.

I hereby acknowledge all those who directly or indirectly helped me to draft the
project report.









4

CERTIFICATE


This is to certify that the project titled International Marketing is true and satisfactory
work done by Akash Shah, M. Com Part II, Semester III, Roll no.113. The project report
is submitted to the University of Mumbai in partial fulfilment of the requirements of the
award of the degree of M. Com Part I, for the academic year 2013-14.




__________________________ ____________________________
Signature of the Project Guide Signature of the External
Examiner



__________________________ _____________________________
Signature of the Co-ordinator Signature of the Principal







5

Sr.No Particulars Page
No
1 Introduction 6
2 Features of International Marketing 8
3 History 11
4 Import & Export 13
5 Trade Between India and Singapore 14
6 Trade Between India and Saudi Arabia 17
7 Import and Export Between India and Saudi Arabia 19
8 Statistical Figures 21
9 Future 26
10 Conclusion 31
11 Bibliography 33
















6

INTRODUCTION

International marketing is a process that directs the flow of goods, services and other
resources from one country to another. In other words of American Marketing Association,
international marketing is a process of planning and executing the conception, pricing,
promotion and distribution of idea, goods and services to create exchanges between
nations that satisfy individual and organisational objectives. It refers to marketing carried out
by companies overseas or across national borderlines. This strategy uses an extension of the
techniques used in the home country of a firm. It refers to the firm-level marketing practices across
the border including market identification and targeting, entry mode selection, marketing mix, and
strategic decisions to compete in international markets
There are two main approaches to global segmentation:
1. Macro Approach
Countries can be seen as segments. For example, there will only be a large market for
expensive pharmaceuticals in countries with certain income levels, and entry opportunities
into infant clothing will be significantly greater in countries with large and growing
birthrates. There are, however, significant differences within countries.
For example, although it was thought that the Italian market would demand "no frills"
inexpensive washing machines while German consumers would insist on high quality, very
reliable ones, it was found that more units of the inexpensive kind were sold in Germany
than in Italyalthough many German consumers fit the predicted profile, there were large
segment differences within that country.
2. Micro Approach
This approach caters to segments within countries. This can be approached in two ways:
2.1. Intra-market Segmentation
This involves segmenting each countrys markets. Here the company entering a new market
segments that market to attain greater understanding of it.
For example, an American firm going into the Indian market would research to segment
Indian consumers without incorporating knowledge of U.S. buyers. Here the idea is that
every country's market is different from the others and that it hence demands to be
approached differently. This approach is a long term strategy and involves a lot of research
and investment.
7


2.2. Inter-market Segmentation
This involves the detection of segments that exist across borders. It may be noted that that
not all segments that exist in one country will exist in another and that the sizes of the
segments may differ significantly.
For example, there is a huge small car segment in India; while it is considerably smaller in
the U.S. Inter-market segmentation entails several benefits. The fact that products and
promotional campaigns may be used across markets; introduces economies of scale, and
learning that has been acquired in one market may be used in another
E.G., a firm that caters to a segment of premium quality cell phone buyers in one country
can put its experience to use in another country that features that same segment. (Even
though segments may be similar across the cultures, it should be noted that it is still
necessary to learn about the local market.
For example, for a product, although a segment common across two countries may seek the
same benefits, the cultures of each country may cause people to respond differently to it.

Thus international marketing is marketing beyond the national borders. It is a business
activity that directs the flow of goods, services, ideas and other resources from the
producers or suppliers of one nation to the consumers or users of another nation/nations.










8

Features of IM

1. Process: International marketing is a process of developing and distributing goods
and services in overseas markets. The international marketing manager needs to
undertake various marketing activities such as marketing research, product design,
branding, packaging, pricing, promotion, etc. to undertake various marketing
activities, the international marketing manager should collect the right information
from the right source, analyse it properly and then take systematic international
marketing decision.

2. Large scale operations: Unlike domestic marketing which maybe carried on a smaller
scale, international marketing is operated on a larger scale. It is carried in bulk
quantities so as to derive the benefits of large scale selling, in respect of
transportation, handling, etc.

3. Dominance of MNCs: IM is dominated by MNCs or large corporations. At present
MNCs from USA, Europe and Japan play a dominant role in foreign trade. They are in
a position to develop world wide contacts through their network of
branches/offices/subsidiaries.

4. Tariff and non-tariff barriers: International trade is subject to tariff and non-tariff
barriers. These are restrictions imposed mostly by importing countries, so as to
restrict imports. Every international firm should have a clear study of various trade
barriers imposed by different countries, so as to carry on the international trade
more efficiently.


9


5. Presence of trading blocs: Certain nations from trading bloc for their mutual benefit
and economic development. The main purpose of such blocs is to reduce or
eliminate trade barriers among member nations. The international marketers should
have knowledge of the regulations of such trading blocs. The most powerful trading
blocs are NAFTA (North American Free Trade Area), and EU (European Union).

6. Foreign exchange regulations: International trade is subject to foreign exchange
regulations. For instance, in India, international marketers should realise their
international proceeds (in respect of consumer goods) within a period of 180 days
from the date of shipment (units in SEZs and status holders can realise within 360
days).

7. Three faced competition: In international markets, suppliers have to face three
faced competition, ie. Competition from three angles:

A. From the other suppliers of the exporters country.
B. From the local producers of importing country and
C. From the exporters of competing nations.

8. International forums: International trade is regulated by international forums such
as WTO and UNCTAD. International marketers from all over the world should have a
thorough knowledge of the rules and regulations of such forums. Eg: WTO-MFN

9. International marketing research: Knowing more about customers, dealers and
competitors is a must not only in the domestic markets, but also in the international
markets. Marketing research is a must in international business due to various
factors, such as diversities in social, cultural, economic, and political environments of
distant markets. International marketing research helps to design company offerings
as per the needs and expectations of overseas buyers.

10



10. Documentation: Export marketing is subject to various documentation formalities
exporters require various documents to submit them to various authorities including
customs, port trust, etc. the documents include:
Shipping bill
Consular invoice
Certificate of origin
















11

History
India and Singapore
India and Singapore share long-standing cultural, commercial and strategic relations, with
Singapore being a part of the "Greater India" cultural and commercial region. More than
300,000 people of Indian origin live in Singapore. Following its independence in 1965,
Singapore was concerned with China-backed communist threats as well as domination
from Malaysia and Indonesia and sought a close strategic relationship with India, which it
saw as a counterbalance to Chinese influence and a partner in achieving regional security.
Singapore had always been an important strategic trading post, giving India trade access to
the Far East. Although the rival positions of both nations over the Vietnam War and the Cold
War caused consternation between India and Singapore, their relationship expanded
significantly in the 1990s; Singapore was one of the first to respond to India's "Look East"
Policy of expanding its economic, cultural and strategic ties in Southeast Asia to strengthen
its standing as a regional power.
Singapore enjoys excellent bilateral relations with India. Our cooperation covers multiple areas.
Political leaders and officials enjoy a strong rapport, and the frequent interaction through platforms
such as the Joint Ministerial Committee for Bilateral Co-operation, the Ministry of Foreign Affairs-
Ministry of External Affairs Consultations, the India-Singapore National Security Roundtable, the
Defence Policy Dialogue and the Track 1.5 India-Singapore Strategic Dialogue, allows them to
exchange views on many issues of common concern. Economically, our ties have grown
considerably. Singapore is India's largest trading partner amongst the ASEAN countries and serves as
India's gateway to ASEAN and East Asia. Bilateral trade in 2013 stood at S$25.5 billion with Singapore
being India's 6
th
largest trading partner and the largest foreign investor in India.
The scope of bilateral cooperation has broadened in recent years with the conclusion of key
agreements including the landmark Comprehensive Economic Co-operation Agreement (CECA), the
Mutual Legal Assistance Treaty (MLAT) in Criminal Matters, and the Defence Co-operation
Agreement. During Prime Minister Lee Hsien Loongs visit to India in July 2012, co-operation was
stepped up through the signing of a Memorandum of Understanding on Vocational Education and
Skills Development which paved the way for the establishment of a World Class Skills Centre in New
Delhi; renewal of the Air Force Bilateral Agreement; and the enhancement of people-to-people
interactions with the launch of the India-Singapore Parliamentary Friendship Group. The Army
Bilateral Agreement was also renewed in June 2013 between our Defence Ministries.
12

Singapore and India will celebrate the 50th anniversary of the establishment of bilateral relations in
2015, which will see a year-long series of commemorative events in both India and Singapore. The
highlight will be an exchange of State Visits by both Presidents.
India and Saudi Arabia
Trade and cultural links between ancient India and Arabia date back to third millennium BC.
By 1000 AD, the trade relations between southern India and Arabia flourished and became
the backbone of the Arabian economy. Arab traders held a monopoly over the spice
trade between India and Europe until the rise of European imperialist empires. India was
one of the first nations to establish ties with the Third Saudi State. During the 1930s, India
heavily funded Nejd through financial subsidies.
Formal diplomatic relations between contemporary India and Saudi Arabia were established
soon after India gained independence in 1947. Relations between the two countries have
strengthened considerably owing to collaboration in regional affairs and trade. Saudi Arabia
is one of the largest suppliers of oil to India, who is one of the top seven trading partners
and the fifth biggest investor in Saudi Arabia.
In history there have been three visits to Saudi Arabia by an Indian Prime
Minister Jawaharlal Nehru (1955), Indira Gandhi (1982) and Manmohan
Singh (2010/2014). The two countries share similar views on combating terrorism. Since its
independence in 1947, India has sought to maintain strong ties with Saudi Arabia, an
important regional power and trading base in West Asia. In a major visit by King Saud of
Saudi Arabia to India in November 1955, both nations agreed to shape their relationship
based on the Five Principles of Peaceful Co-existence. Saudi Arabia is also home to more
than 1.4 million Indian workers. India was the only South Asian nation to recognise the
Soviet-backed Democratic Republic of Afghanistan, whereas Saudi Arabia was one of the key
supporters of the Afghan mujahedeen, who fought the Soviets and their Afghan allies from
Pakistan.




13

Import and Export

Import:
The word "import" is derived from the word "port," since goods are often shipped via boat
to foreign countries. Countries are most likely to import goods that domestic industries
cannot produce as efficiently or cheaply, but may also import raw materials or commodities
that are not available within its borders. For example, many countries have to import oil
because they either cannot produce it domestically or cannot produce enough of it to meet
demand.
A good or service brought into one country from another. Along with exports, imports form
the backbone of international trade. The higher the value of imports entering a country,
compared to the value of exports, the more negative that country's balance of trade
becomes.

Export:
The term export means shipping the goods and services out of the port of a country. The
seller of such goods and services is referred to as an "exporter" and is based in the country
of export whereas the overseas based buyer is referred to as an "importer". In International
Trade, "exports" refers to selling goods and services produced in the home country to other
markets.
Export of commercial quantities of goods normally requires involvement of the customs
authorities in both the country of export and the country of import. Nonetheless, these
small exports are still subject to legal restrictions applied by the country of export. An
export's counterpart is an import.


14

Trade between India and Singapore

Bilateral relations between the Republic of India and the Republic of Singapore have
traditionally been strong and friendly, with the two nations enjoying extensive cultural and
commercial relations. India and Singapore have signed the Comprehensive Economic
Cooperation Agreement (CECA) in order to increase trade, investments and economic
cooperation, and expanded bilateral cooperation on maritime security, training forces, joint
naval exercises, developing military technology and fighting terrorism.
According to a 2010 poll, 40% of Singaporeans approve of India's leadership, with 23%
disapproving and 37% uncertain.
Singapore is India's largest trading and investment partners in ASEAN. The increasingly close
relations between India and Singapore in recent years have been underpinned by a dramatic
growth in bilateral trade and investment linkages. India is looking for infrastructure
investments, critical technologies and export markets. Singapore has surplus capital and
could be a useful partner in infrastructure development in India as well as investment in
Indian companies.
Prime Minister Atal Bihari Vajpayee visited Singapore in 2002. One major outcome of the
visit was the setting up of a India-Singapore Joint Study Group (JSG) to look into the
possibility of concluding a Comprehensive Economic Cooperation Agreement (CECA)
between the two countries. The JSG, submitted its report in April 2003 during the visit to
India by Prime Minister Goh Chok Tong. It identified areas of increased economic
engagement between the two countries and also recommended measures to be taken.
Keeping the report of the JSG as a basis, negotiations between the two governments have
commenced. A negotiating team headed by the Commerce Secretaries of the two countries
has been set up to finalize the CECA. The team has held Fifteen rounds of discussion till Jan
13.

15

Import and Export between India and Singapore
Indias main imports from Singapore include electronic goods, non-electrical machinery,
organic chemicals, project goods, transport equipment, artificial resins and professional
instruments (non-electronic).
Electronic items are Indias largest imports from Singapore. The value of such imports has
increased from US$1.31 billion in 2011-12 to US$1.65 billion in 20012-13. Out of around 440
different electronic products imported by India from Singapore, some of the leading ones
are photosensitive transistor diodes, electronic integrated circuits, telephones for cellular
and wireless networks, apparatus for control and distribution of electricity, electrical
machinery parts, laser and magnetic discs for reproducing purpose, optical fibre cables,
remote control apparatus (excluding radio), apparatus for switching, static convertors,
generating sets with spark ignition, fixed capacitors, transmission apparatus, digital
cameras, smart cards, video recorders and parts for line telephone apparatus.
Non-electrical machinery is another key import for India from Singapore. The value of such
imports increased from US$265.6 million in 2012-13 to US$404.5 million in 20012-13. India
imports more than 500 different items figuring in this product category. Among these, the
relatively higher imports in value terms include parts and accessories of machines and
mechanical appliances, hard disk drives, automatic data processing machines and automatic
teller machines, processing units, plotters, personal computers, laptops (including
notebooks and sub-notebooks), portable digital computers, ink-filled printer cartridges,
combination printers, printer copies printing by laser and ink-jet processes, optical disk
drives, valves, taps and cocks, circular knitting machines, bearings, rubber or plastic moulds,
pneumatic elevators and passenger lifts, bucket and shovels for bulldozers, electron beam
microscopes, control and adaptor units, coal cutters, assembled printed circuit boards and
industrial robots.
Organic chemicals are another important product group among Indias imports from
Singapore. Value of organic chemical imports increased to US$543.8 million in 20012-13
from US$411.08 million in 20012-13. Some important organic chemicals imported by India
from Singapore are styrene, p-xylene, toluene, benzene, propan-1-ol, propylene glycol,
16

phenols and monophenols, acetic acid, acetone, vinyl acetate, esters of acrylic acid,
aromatic polycarboxylic acids and isocyanates.
Petroleum (including mineral oils, crude and refined products) is Indias main export to
Singapore. In 20012-13, Indias petroleum exports to Singapore were worth US$3.4 billion.
This was an almost three-fold increase from US$1.24 billion of such exports in 20012-13.
Singapore has emerged as Indias second largest export market for petroleum products after
the United Arab Emirates. Currently, around 18 percent of Indias petroleum exports are
being absorbed by Singapore. Within petroleum, refined products occupy significant shares
with refined unleaded motor spirit (both regular and premium), high-speed diesel and
aviation turbine fuel being the leading exports. Otherwise, fuel oils and naphtha reformate
or preparations for preparing spirits are among Indias largest petroleum exports (in value
terms) to Singapore. Other leading Indian exports to Singapore include gems and jewellery,
machinery instruments, transport equipment, electronic goods and non-ferrous metals.
Articles of jewellery and other precious metals made in India enjoy strong demand in
Singapore. Non- industrial diamonds and semi-manufactured gold also figure among leading
gems and jewellery exports. Such exports, however, are declining in recent years. While in
20011-12, India exported US$1.24 billion of gems and jewellery to Singapore, which was
around eight percent of its total jewellery exports, in 20012-13, such exports have come
down to US$149.97 million representing only 1 percent of Indian jewellery exports.
Singapore accounts for around three percent of Indias machinery and instrument exports.
India exports a diverse array of machines and instruments to Singapore.
These include : printing machinery (parts and accessories), compression ignition engines,
aircraft engines, tool holders and machine die heads, boring or sinking machinery,
electrically operated textile spinning machines, different categories of valves, taps and
similar appliances, window and wall air-conditioners, roller bearings, machine parts and
mechanical appliances, accessories, compressors, printed circuit boards, water and
filtering/purifying machinery and centrifugal electrically operated pumps.


17

Trade between India and Saudi Arabia
India and Saudi Arabia are developing countries and need two-sided flow of investment in
infrastructure and development. Progressive growth has been observed between the
countries in bilateral investment after the liberalisation policy of India in 1991 and little bit
faster increase in new millennium. Saudi Arabia is ranked at 15th position in country-wise
FDI joint venture in India and it is second in Arab countries followed by UAE.
Investment is observed in diverse fields such as paper manufacture, chemicals, computer
software, granite processing, industrial products and machinery, cement, metallurgical
industries, etc. Indian firms also has shown the interest in Saudi market after new Saudi laws
and established joint venture projects or wholly owned subsidiaries in the Kingdom.
According to Saudi investment authority survey, India has 56 FDI projects having worth of
304 million SAR during 2005 in Saudi Arabia. These licenses are for projects in different
sectors such as management and consultancy services, construction projects,
telecommunications, information technology, pharmaceuticals, etc.
Moreover, several Indian companies have established collaborations with Saudi companies
and working in the Kingdom in the areas of designing, consultancy, financial services and
software development.
Indian Prime Minister Manmohan Singh undertook a three-day visit to Saudi Arabia
beginning 27 February 2010. He was accompanied by his wife Gursharan Kaur, Health
Minister Ghulam Nabi Azad, Commerce and Industry Minister Anand Sharma, Petroleum
Minister Murli Deora and Minister of State for External Affairs Shashi Tharoor. It was the
first visit to the kingdom by an Indian Prime Minister since 1982 and the third to date.
In a rare diplomatic gesture symbolising the strong cultural and socio-economic ties
between the two nations, Dr Singh and his official delegation were received at the royal
terminal of the King Khalid International Airport by Crown Prince Sultan bin Abdul
Aziz accompanied by his entire cabinet. In departure from the protocol norms, a red carpet
was rolled out to the Prime Minister, instead of the traditional green carpet. The nearly 40-
km route from the airport to the city centre was lined with Indian and Saudi Arabian flags.
18

On the second day a formal reception was held in honour of the state guests. Singh was
scheduled to address the Majlis-e-Shura, a privilege that has been described as "a singular
honour". Female diplomat Latha Reddy was permitted not to wear the abaya or the hijab.
This special gesture was described as "largely symbolic in nature, but it is a sign of the
changing times".
During his visit Dr Singh received an honorary doctorate from Saudi Arabia's prestigious King
Saud University. An MoU for co-operation was signed between Indian Institute of Science,
Bangalore and the King Saud University in the presence of the Prime Minister. Later,
speaking at a community event at the Indian Embassy hosted by Indian Ambassador
Talmeez Ahmed, the Prime Minister praised the contributions made by the over 1.8 million
Indian citizens. "India is proud of you and proud of your achievements in this country," he
said.
An extradition treaty was signed by Indian Health and Family Welfare Minister Ghulam Nabi
Azad and Prince Naif bin Abdul Aziz the Saudi Arabian Second Deputy Prime Minister and
Interior Minister. Four agreements pertaining to transfer of sentenced persons, cultural co-
operation, Memorandum of Understanding between Indian Space Research
Organisation and King Abdulaziz City for Science and Technology for co-operation in
peaceful use of outer space and joint research and information technology were also signed
in presence of the two leaders. Four other agreements were also signed the day before,
including one by Tata Motors to supply school buses worth US$80 million.
Dr Singh returned home on 1 March 2010 concluding this 3-day visit. This visit is considered
as India's attempt to increase the depth of relationships between the two countries and
make a pitch for investments from Saudi Arabia.





19

Import and Export between India and Saudi Arabia
India and Saudi Arabia enjoy cordial and friendly relations reflecting centuries old economic
and socio-cultural ties. In the beginning of second millennium, the trade relations between
southern India and Arabia flourished and became the backbone of the Arabian economy.
Arab traders held a monopoly over the spice trade between India and Europe until the rise
of European imperialist empires. In modern times India was one of the first nations to
establish ties with the Third Saudi State. These ties increased many folds following the visit
of the Custodian of Two Holy Mosques King Abdullah to India in 2006, and the visit of HE
Prime Minister of India to the Kingdom in 2010. There is huge scope for expansion of
economic and commercial ties between India and Saudi Arabia. India is third largest
economy in the world on GDP (PPP) basis. India is leading country in sectors such as
Information Technology, Telecommunications, Pharmaceuticals, Gems & Jewellery,
Engineering goods, Nuclear Reactors and boilers, Iron & Steel, leather products,
infrastructure development, apparels and cotton textiles. Saudi Arabia, with the goal of
diversifying its economy, can get benefit from this huge consumer market lying across the
Arabian Sea.

During the financial year 2011-12, bilateral trade between India and Saudi Arabia reached
more than US$ 36 billion. India is the 5th largest market for Saudi exports, while Saudi
Arabia is the 7th largest market for Indian exports. Saudi Arabia is one of the fastest growing
economy in the Middle East offering investment opportunities. 486 Indian companies
working under SAGIA license have established joint ventures with Saudi partners in different
sectors and have invested more than US$ 1.06 billion in Saudi Arabia. 46 Saudi companies
with investment of US$ 228.8 million are functioning in India.





20



The import of crude oil by India forms a major component of bilateral trade with Saudi
Arabia being Indias largest supplier of crude oil, accounting for almost one-fifth of its needs.
Energy cooperation is an important aspect of bilateral economic ties and both sides are
working towards the strategic energy partnership including long term supply of
uninterrupted supply of crude oil by Saudi Arabia to India to meet its growing energy needs;
cooperation and joint ventures in upstream and downstream oil and gas sectors in India and
Saudi Arabia.


Major Imports from Saudi Arabia: Mineral Fuel (crude & products), Organic Chemicals,
Plastics & materials thereof, Inorganic Chemicals and fertilizers

Major exports from India: Mineral Fuels & products; Cereals; Nuclear Reactors, boilers and
parts; Electrical machinery & equipment, Sound recorders, Television Image and Sound
Recorders, and parts; Iron & Steel and products thereof; organic chemicals; and apparels.











21

Statistical Figures
India Imports from Singapore
Imports from Singapore in India increased to 38.25 INR BIL in March of 2014 from 32.04 INR
BIL in February of 2014. Imports from Singapore in India averaged 13.56 INR BIL from 1991
until 2014, reaching an all time high of 60.46 INR BIL in December of 2012 and a record low
of 0.14 INR BIL in April of 1991. Imports from Singapore in India is reported by the Reserve
Bank Of India.










22

India Exports to Singapore
Exports in India decreased to 26958.22 USD Million in August of 2014 from 27727.60 USD
Million in July of 2014. Exports in India averaged 4041.34 USD Million from 1957 until 2014,
reaching an all time high of 30541.44 USD Million in March of 2013 and a record low of
59.01 USD Million in June of 1958. Exports in India is reported by the Ministry of Commerce
and Industry, India.












23



Trade figures for the last four years are as follows:
India-Saudi Trade (in million USD)
Details of significant trend Analysis
Year
( April - March)
Imports from
Saudi Arabia
Exports to Saudi
Arabia
Total trade
Increase in
bilateral trade
Increase in
Indian imports
Increase in
Indian
exports
2010-2011 20,385.28 4,684.40 25,069.68 19.35% 19.23% 19.90%
2011-2012 31,817.70 5,683.29 37,501.00 49.59% 56.08% 21.32%
2012-2013 33,998.11 9,785.78 43,783.89 16.75% 6.85% 72.18%
2013-2014 36,535.82 12,214.58 48,750.40 11.34% 7.46% 24.82%
2014-2015
(April- July)
11,802.06 4,575.54 16377.60 5.57% 4.37% 8.80%
Source: Department of Commerce & Industry, GOI. ; www.dgft.gov.in











24

India Imports from Saudi Arabia
Imports in India decreased to 37796.82 USD Million in August of 2014 from 39956.20 USD
Million in July of 2014. Imports in India averaged 5918.18 USD Million from 1957 until 2014,
reaching an all time high of 45281.90 USD Million in May of 2011 and a record low of 117.40
USD Million in August of 1958. Imports in India is reported by the Ministry of Commerce and
Industry, India.











25


India Exports to Saudi Arabia
Exports in India decreased to 26958.22 USD Million in August of 2014 from 27727.60 USD
Million in July of 2014. Exports in India averaged 4041.34 USD Million from 1957 until 2014,
reaching an all time high of 30541.44 USD Million in March of 2013 and a record low of
59.01 USD Million in June of 1958. Exports in India is reported by the Ministry of Commerce
and Industry, India.










26

Future
India and Singapore
Terming Singapore as the gateway to India's Look East Policy, New Delhi has evinced a keen
interest to further deepen its bilateral relations with the South-East Asian nation in multiple
areas.
Swaraj launched the year-long 'Year of India' with her Singapore counterpart K Shanmugam,
to commemorate the 50th anniversary of the establishment of diplomatic relations between
the two nations.
Describing the bilateral relationship with Singapore as unique, the External Affairs
Minister also stressed on recreating the strong relationship that existed between the two
countries from the past to the present.
Swaraj was glad over the fact that Singapore being not only the largest trading and
investment partner in the ASEAN group but also shared similar thoughts on many global and
regional issues.
She added that there was scope to scale up investments in India by Singapore and also
sought for attention on the scope into venture capital for innovations and for cooperative
projects in third countries.
She said that the bilateral relationship between the two nations holds great potential and
sought for building India-Singapore ties on 5 S plank.
"The future holds even greater potential. We would like to share a vision to build India-
Singapore ties on a 5 S plank Scale up trade and investments, Speed up connectivity, Smart
cities with focus on urban development & water management, Skill development and State
focus to promote engagement with Indian States," she said.
27

Swaraj also invited Singapore companies to speed up connectivity and infrastructure
projects in India, particularly, along the Delhi-Mumbai Industrial Corridor (DMIC), the
Chennai-Bangalore Industrial Corridor and the North-East.
She also stated that Singapore could develop a virtual city or a "little Singapore" somewhere
along the corridor.
Swaraj called for further connecting the two countries to newer areas in India particularly
stressing on the North-East and increase people-to-people contacts.
"Connectivity in all its dimensions- physical, institutional and people-to-people is a priority
for us. There has been impressive growth of air connectivity between our countries. It would
be mutually beneficial to launch direct air-connectivity between Singapore and North East,
particularly Guwahati.
North-East is our gateway to the ASEAN hinterland. Education, tourism and business are key
links. I wish to see greater flows between peoples and institutions to enrich this
relationship," she said.
Swaraj sought for Singapore's expertise in areas of building Smart Cities, urban planning and
water management strategies which she termed could offer a valuable learning experience
for India.
She termed that Singapore's experience in skill development can be invaluable for India
given there is existence of its large requirement. She was all praise for the World Class Skill
Development Centre in Delhi, set up by Singapore, which she stated could act as a model for
mushrooming of similar centres in the rest of the country, including the North-East.
Swaraj hoped that the 50th anniversary celebrations would turn out to be a great success
and also expressed her hope to have an even stronger partnership with Singapore and its
wonderful people.


28

India and Saudi Arabia
Saudi-India economic relations have shown remarkable growth in the last few years. In fact
since King Abdullah's visit to New Delhi in 2006 and the reciprocal visit by the Indian Prime
Minister Manmohan Singh to Saudi Arabia in 2010, the trade between them has doubled
more than 3 times. If this trend remained prevalent, the trade between the two countries
could double again in the near future and move on to new levels.
Indeed, Riyadh and New Delhi are expected to expand trade and cooperation and joint
ventures in energy, information technology, telecommunications, pharmaceuticals, health
services, biotechnology, agriculture, infrastructure projects, financial services and
educational training opportunities.
In 2012, Saudi Arabia was the 4th largest trade partner (excluding the EU) of India and the
bilateral trade reached almost $ 42 billion, and hit over $ 36 billion in the first 9 months
(January-September) of 2013 according to IMF data. For Saudi Arabia, India is the 5th largest
market for its exports, accounting for nearly 6.3% of its global exports.
In terms of imports by Saudi Arabia, India ranks 6th and is the source of around 8.2% of
Saudi Arabia's total imports. Consequently, the trade between the two countries are on the
verge of a strong surge over the next few years, thus it makes sense for Riyadh to
strengthen its ties with New Delhi.
Booming oil trade
Acknowledging India's importance as one of the largest and fastest growing economies in
the world, Riyadh expressed its readiness to engage New Delhi and fulfil its oil requirements
on a long-term basis. In this regard, cooperation in the oil sector is a driving force in Saudi-
Indian ties. Saudi Arabia is the world's largest oil exporter, whereas India has become the
world's fourth-largest oil consumer (after US, China and Japan).
India imported between 60% and 70% of its oil from the Middle East and Saudi Arabia
currently is India's largest oil supplier, at about 19 percent of oil imports (about 735,000
barrels per day).
29

From the Saudi point of view it makes sense to look to India as a major market for its energy
products. First, India could become the second-largest oil consumer over the next two
decades. Subsequently, crude oil imports from the Saudi kingdom are expected to double
over the next decade or two. Apart from seeking enhanced energy supplies to India, Saudi
companies (Aramco and Sabic in particular) are looking for major investment opportunities
in India.
Energy for the future
During the 1990s India then began to pursue a policy of openness to the outside world. As a
result of this and other gradual reforms, India has become one of the fastest-growing
economies in world, with annual GDP growth averaging over 6 percent between 1990 and
2012.
A rate that the country is expected to sustain over the next two decade. Ultimately, the
Centre for Economics and Business Research in London predicts that India overtakes Japan
in 2028 to become the world's third largest economy.
In this context, India's growing appetite for oil is the product of the country's 20-year-long
economic boom, which has seen expanding external trade, rising incomes, a growing
population, industrialisation and increasing urbanization. The International Energy Agency
(IEA) forecasts that India could import 2.6 million barrels per day (mb / d) of crude oil in
2014.
While, the U.S. Energy Information Administration (EIA) in its recent annual report projects
that India may add another 2 mb / d over the next decade. In the long term, BP's analysis of
projected trends, India will eventually be importing around 6-7 mb / d, roughly 85-90
percent of its future petroleum needs by 2035. In this context, Saudi-India relations are
promising and may develop steadily over the coming years
Taking growth seriously
Given the structure of its economy, Saudi Arabian exports are geared very much to the
major oil consumers in the industrialised world, India and China. Japan was the largest
export market in 2012, but China is expected to overtake it in the next few years, with India
30

becoming the second largest market and the US and Korea being the third and fourth
largest export destinations respectively according to an HSBC forecast report. Thus, Riyadh
must seriously take into account its growing ties with India.
Against this backdrop, from the perspective of Saudi investors, accelerating additional
structural reforms remain essential over the longer term to maintain the high growth rates
in India.
Business Monitor International (BMI) noted that Indias energy sector still dominated by
state-controlled enterprises, although the government has taken steps in recent years to
deregulate the industry and encourage greater foreign participation. Regulated prices also
have impeded production growth and remain a deterrent to foreign investors.
Furthermore, a drawn-out bureaucratic process and favouring of national oil companies is
hindering opportunities for private and international companies. Additionally, India's low
scores for corruption and physical infrastructure undermine its overall performance.












31

Conclusion
India and Singapore
India and Singapore will make special friends because there would be an alliance of two
nations that respect each other and deeply value what the other has to offer to them. The
existence of political will, complimentary comparative advantages and appreciation for each
others national interests enable a sustainable relationship between the two countries. The
CECA has converted cooperation possibilities in many areas into a reality. Singapore is keen
on facilitating a closer relationship between ASEAN and India. Thus, an alliance with
Singapore can be treated as a huge step towards building a stronger economic and political
presence in ASEAN nations for India.

GIF has a vital role to play in this process through Track II diplomacy. The Foundation must
utilize the opportunity of establishing its presence and actively participating in the processes
occurring at both ends. This would allow GIF to address the concerns of stakeholders from
all the three sides India, Singapore and ASEAN nations as well as enable it to treat
perception gaps and to bring mutual benefits to everyones recognition. Collaborating with
other NGOs in the region would help GIF to promote a relationship of trust and confidence
with strong economic and political benefits as the basis for a close and durable friendship
between India and Singapore.







32


India and Saudi Arabia
In the long run, India will continue to remain an important partner for Saudi Arabia and vice
versa. The present level of cooperation between the two countries is beyond the actual
potential. There are huge scope for improvement in every sectors including economic and
trade ties, defence and security ties, etc. Both sides will need to work hard if they are to
strengthen the present level of ties which is not comprehensive in nature, so as to gain
strategic character. This partnership will enable both countries to harness the vast potential
of bilateral relations, drawing upon complementarities and each other's intrinsic strengths,
and work together to address regional and global challenges.
However, the author suggests that the following steps must be taken to express their desire
for a comprehensive strategic partnership:-
The frequency of high-level official exchange must be improved so that the political
understanding improves.
High-level military exchanges, joint training of troops and use of training courses must be
encouraged.
Both sides should refrain from taking any steps that would harm the interests of the other
sides.
Both sides must show the eagerness to open and more and more areas for cooperation.
Create a climate conducive for investments from both sides which are mutually beneficial.





33

Bibliography
www.dgft.gov.in
www.economywatch.com
www.investopedia.com
www.tradingeconomics.com
www.indianexpress.com
www.globalindiafoundation.com