1.1 Demographic Profile of the Greece

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1.1 DEMOGRAPHIC PROFILE OF THE GREECE

The Demographics of Greece refer to the demography of the population that inhabits the Greek peninsula. As of January 2008, the population of Greece is estimated at 11,262,000 by Eurostat. Greece was inhabited as early as the Paleolithic period. Prior to the 2nd millennium BC, the Greek peninsula was inhabited by various pre-Hellenic peoples, the most notable of which were the Pelasgians. The Greek language ultimately dominated the peninsula and Greece's mosaic of small city-states became culturally similar. The population estimates on the Greeks during the 4th century BC, is approximately 3.5 million on the Greek peninsula and 4 to 6.5 million in the rest of the entire Mediterranean Basin,[5] including all colonies such as those in Magna Graecia, Asia Minor and the shores of the Black Sea.

Population: 11,329,618

Growth rate: 0.146%

Birth rate: 9.45 births/1,000 population

Death rate: 10.51 deaths/1,000 population

Life expectancy: 79.66 years

–male: 77.11 years

–female: 82.37 years

Fertility rate: 1.50 children born/woman

Age structure: 0-14 years: 14.3%

15-64 years: 66.6%

65-over: 19.1%

Sex ratio:

At birth: 1.06 male(s)/female

Under 15: 1.06 male(s)/female

15-64 years: 1.00 male(s)/female

65-over: 0.78 male(s)/female

Nationality:

Nationality: noun : Greek(s) adjective: Greek

1.2 GEOGRAPHY OF THE GREECE

Continent: Europe

Region: Southern Europe (Balkan Peninsula) Coordinates: 39°00′N 22°00′E / 39°N 22°E Area: Ranked 96th

131,940 km 2 (50,940 sq mi)

99.1% land

0.9% water

Borders: Total land borders:

1,228 km (7 63 miles) Albania: 282 km (175 mi) Bulgaria: 494 km (307 mi) Turkey: 206 km (128 mi) Rep. Mace donia: 228 km (142 mi) Highest point: Mount Olympus: 2,919 m Lowest point: Mediterr anean Sea: 0 m Longest river: Haliacmo n: 322 km (200 mi) Largest lake: Trichonid a: 98.6 km2 (38.1 sq mi)

1.3 ECONOMIC REVIEW OF THE GREECE

The economy of Greece is the 32nd largest in the world by nominal gross domestic product (GDP) and the 37th largest at purchasing power parity (PPP), according to data by the World Bank for the year 2010. Per capita, it is ranked 33rd by nominal GDP and 31st at PPP according to the 2010 data.

A developed country, Greece is a member of the European Union, the euro zone, the OECD, the World Trade Organization and the Black Sea Economic Cooperation Organization.

The service sector contributes 78.8% of GDP, industry 17.9%, and agriculture

3.3%. The public sector accounts for about 40% of total economic output. Greece is the 31st most globalize country in the world and is classified as a high-income economy.

GDP - per capita (purchasing power parity)

$29,600 (2010)

$31,000 (2009)

$31,700 (2008) note: data are in 2010 US dollars

Ran k: 32nd (nominal, 2010)

37th (PPP, 2010) Curren cy: 1 euro = 100 cents

Tr ade organi zations EU, WTO, OECD, BSEC Statistics GD P: $312.042 billion (nominal, 2011)

$309.231 billion (PPP, 2011 GDP gr owth: 5.0% (Q3 2011 compared with Q3

2010, non-seasonally-adjusted) GDP per capit a: $27,875 (nominal, 2011)

$27,624 (PPP, 2011) GDP by sec tor agri cultur e: 3.3%; industry: 17.9%; services: 78.8%

(2010) Infl ation (CPI) 2.9% (November 2011) Unempl oyment : 17.7% (Q3 2011) Main industri es: tourism; shipping; industrial products,

food and tobacco processing, textiles; chemicals, metal products; mining, petroleum Expor ts: €16.3751 billion (2010) Export good s: food and beverages, manufactured

goods, petroleum products, chemicals, textiles Impor ts: €48.1074 billion (2010) Import goods machinery, transport equipment, fuels,

and chemicals

1.4 Monetary Policy

In October 2008, i.e. about a year and a half ago, the Bank of Greece stressed in its Monetary Policy Interim Report that the Greek economy was at a crucial juncture and that, as the global economic situation worsened, the macroeconomic imbalances and structural weaknesses of the domestic economy would become more severe and more difficult to address.

• In the Monetary Policy Report that followed in February 2009, the Bank of Greece warned about everything that is happening today – stressing, in particular, the possibility of a rise in the cost of borrowing. As that Report stated, “a widening of the yield spread would increase the future burden on taxpayers”.

• Lastly, in October 2009, the Monetary Policy Interim Report underlined the need to send a clear message to the markets that Greece is determined to implement a multi-year plan of fiscal consolidation and structural reforms.

Unfortunately, the developments during the past few months have confirmed the Bank’s warnings and undermined confidence in the future of the Greek economy: Since April 2009, Greece has been subject to the Excessive Deficit Procedure, as the deficits of both 2007 and 2008 exceeded the reference value set by the Treaty. In 2009, as the Bank of Greece had warned, the general government deficit reached 12.9% of GDP and public debt stood at 115% of GDP. These developments triggered a series of downgrading of Greece’s credit ratings and led to a large widening in the yield spread between Greek and German government bonds – resulting in increased borrowing and debt-servicing costs for the Greek government. The increase in debt-service expenditures, in turn, increased the country’s budget deficit, made fiscal consolidation more difficult to achieve, and had serious repercussions for the real economy and the banking system. The Greek economy is caught in a vicious circle, with only one way out: the drastic reduction of the fiscal deficit and debt so that there is an immediate reversal of the current trend.

1.5 SOME COMPARISION

S.No Fac tor Greece In dia

1 Population 11 ,329 ,61 8 11 891 728 64

2 GDP real growth rate 5.0 10 .4

3 Per capital income (US Dollar) $29 ,60 0 35 00

4 Inflation rate (%) (CPI) 2.9 11 .7

5 Exports (Billion $) 16 .375 1 225

6 Imports (Billion $) 48 .107 4 357 .7

7 Unemployment, youth ages 15-24 17 .7 9.4

(%)

1.6 India – Greece Trade Data

Year Ind ia’s Ind ia’s To tal Trade

Exports Imports 2006 -07 671.98 209.49 841 .47 2007 -08 530.95 126.81 657.44

2008 -09 878.43 69 .49 947.92

2009 -2010 452.80 154.13 606.93

(Source: Export Import Data Bank, Department of Commerce, Government of India)

The main items of Greece’s exports to India are machinery, rubber and plastic

products, cotton, copper products, iron and steel products and chemicals.

The main items of India’s exports are machinery, automobiles and auto parts,

iron and steel, aluminum, copper, dyes and chemicals, and textiles and garments

1.7 PEOPLE IN GREECE

Nationality: Greek

Population: 11,329,618

Population growth rate: 0.083

Region: Southern Europe (Balkan Peninsula)

Birth rate: 9.21 births/1,000 population

Death rate: 10.7 deaths/1,000 population

Net migration rate: 2.32 migrant(s)/1,000 populations

Urbanization: urban population: 61% of total population rate of urbanization: 0.6% annual rate of change

1.8 INDIA- GREECE RELATIONSHIP

Greek-Indian relations are the relations between Greece and India. Greece has an embassy in New Delhi and 3 honorary consulates in Kolkata, Chennai and Mumbai. India has an embassy in Athens. The first contact between both civilization dates back from Alexander the Great’s and King Porus's Battle of the Hydaspes River . In modern time, diplomatic relations between Greece and India were established in May 1950. The new Greek Embassy building in New Delhi was inaugurated on February 6, 2001. 10

List of recent bilateral visits

• In December 2000, Greek Foreign Minister George Papandreou visited

India.

• In February 2001, Prime Minister of Greece Kostas Simitis visited India.

• In September 2006, Speaker of the Lok Sabha Somnath Chatterjee visited

Greece.

• In April 2007, President of India Avul Pakir Jainulabdeen Abdul Kalam made an unofficial visit to Athens.

Political relations

The most recent high-level visits date from December 2000, when the then Greek Foreign Minister, Mr. Georgios Papandreou, carried out an official visit to India, Nepal, and Bangladesh. In February 2001, the then Prime Minister of Greece, MrKonstantinos Simitis, carried out an official visit to India following an invitation by the then Prime Minister of India H.E. Mr A. Vajpayee. The former Speaker of the Hellenic Parliament Mr. A. Kaklamanis visited India from 15-21 February 2003 and had useful contacts with Indian officials.In 2007, the Minister of Economy and Finance, Mr. G. Alogoskoufis, carried out a visit to India from 7 to 11/2/2007, followed by Deputy Foreign Minister Mr. Petros Doukas (11- 14/11/2007).

Economic and trade relations

Greece and India have traditionally enjoyed close and amicable relations, and in recent years, there has been a trend towards broader bilateral economic and trade relations. Greek imports from India include cotton, synthetic fibers, fabrics, vehicles, iron, steel and fruit, while Greek exports to India include fibers, fertilizers, organic chemicals, pharmaceutical products, leather goods, metal processing machinery, etc. The Greek Embassy’s Office of Economic and Trade Affairs opened in 2000 in New Delhi, in an effort to promote closer economic cooperation between the two countries.

Cultural relations

Cultural relations between Greece and India date back some three thousand years. Within the framework of Greek-Indian cultural cooperation, the Oasis Foundation has awarded prizes and grants to Indian intellectuals. In May 1999, an Indian-Greek Friendship Society was set up in New Delhi, with the support of the Greek Embassy. Its members include distinguished Indian philhellenes, and it is aimed at promoting social and cultural action. In 1988, the Greek Society Kyklos was set up in Calcutta, with a membership of Indian intellectuals who share an interest in, and admiration for, Greek civilization.

Cultural links between the two countries have been celebrated with a host of events, including film festivals, book presentations, concerts, plays, exhibitions, etc., whilst on 9/9/2003 the Programmed of Educational Exchanges was renewed for the years 2003 -2006.

Greek community

There are a very small number of Greek families at various locations around the country.

1.9 PEST ANALYSIS

PEST refers to all political, economic, social and technological factors affecting any industry. The objective of PEST analysis is to objectively study the environmental factors facing a firm, company or an industry. The external environment affects the company in many different manners and unlike internal environment it cannot be influenced much.

Political Factors

The political factors affecting the construction and housing industry mostly consists of documentation and permits that has to be obtained during the various phases of construction of a structure and its sale.

Building Commencement Certificate: Construction of a building or any such structure cannot take place unless and until the builder or the company secures a commencement certificate from the authority; in case of Mumbai it is the BMC who gives IOD&CC- Intimation of Disapproval & Commencement Certificate.

Floor Space Index (FSI): FSI is basically a ratio, which determines how tall buildings or a structure can be constructed on a particular plot. The local authority issues it.

Occupation Certificate: After the completion of construction work of a building, the builder or the company has to secure an Occupation Certificate without which the flats in the building cannot be occupied for residential or commercial purposes.

Economic Factors

Fluctuations in prices of inputs: Many builders tend to stop work when the prices of inputs like cement; iron etc goes up so as to wait for the time when they expect the prices will come down. This result in unnecessary delay in the work and the cost of wasting time would actually be more than the increase in price. Changes in demand: Changes in demand due to factors like changes in disposable income of prospective buyers and inflation. Also with the easy availability of housing loans and tax exemption on loans the demand for houses is rising.

Future Growth & Resale Value: Any project must be located in an area that if not fully developed must at least be on the way. This is because people prefer those areas having high resale value and will fetch them a good amount of gain.

Stamp Duty & Registration: Payments of Stamp duty followed by the registration of the agreement are two important acts when one enters into an agreement with a developer/seller. With the decrease in the stamp duty by 50% it is considered as a good sign for Construction Sector.

Social Factors

Credibility of the company/firm: People don know what kind of materials has been used in the construction of a building or a structure. Credibility of a builder or the company plays an important role in convincing the buyer to buy the house and be sure of the quality of construction work done. A low credibility or image can lead to poor financial performance. A good image is not just built in a day; it takes years of servicing the society through following high standards of work in the process of construction and sale.

Perceived Image of the property developed: A flat in a so-called area may cost much more than a one in an area. This factor can also determine the success of failure of a project. A flat is selected on the basis of infrastructure facilities like water availability, transport facilities, nearness to schools, colleges, hospitals, shopping complexes, leisure centers, etc.

Building Facilities: The builders may offer buildings that have swimming

pools, health-clubs, gyms & parks.

Technical Factors

Due to technical nature of the construction process, the technical environment keeps on changing everyday. There are developments in techniques used, materials used and various other such aspects of the construction business. A few of such developments are as follows

Pre-structured Concrete Blocks: These are blocks of concrete, which are made in the factories according to the dimensions of the building or structure to be built. It is just like a jigsaw puzzle where these blocks are put together using a huge crane and joined together using mortar by workers. This enables quick completion of work and also economies of scale.

Mixture of Cement and Sand: nowadays in order to save time the constructor can order the mixture of sand and cement directly from the suppliers as against the traditional way of ordering cement and sand separately and then filtering them and then mixing it.

Other Equipments: other modern machines that are used in construction are the use of huge drilling type of machines to dig the ground, which was before done by workers.

2.1 INTRODUCTION OF THE PHILEKRAM JOHNSON S.A.

Philkeram-Johnson group consists of the homonymous company, Biomichaniki

Metalleftiki S.A. and Hippocampos S.A.

Philkeram-Johnson S.A. established in 1962 by Philippou family and Christos Constantopoulos in the area of Patriarhiko, Thessaloniki. Philkeram-Johnson was the first ceramic tile producer in Greece, occupying 18 people and producing 80.000 m² yearly. With 43 years of know-how, it seems to be a real model industry. Nowadays, 400 people are working for the production of 4.500.000 m². 30% of its production is being exported to 29 countries and is one of the greatest ceramic tile industries in Europe.

Ph/J S.A. since the beginning of its activity continues to give great consideration to quality in all aspects and fields, e.g. raw materials, production process, research and development, technological evolution, quality control procedures in all phases of production run and packaging, warehousing, customer service, staff administration.

Ph/J holds the ISO 9001:2000 quality certificates but also a wide range of 1200+ products that include:

Wall tiles

Floor tiles for internal and external use

Swimming pool tiles

Tiles for all kinds of industrial uses (heavy duty)

The modern know-how, the advanced technology, the experienced personnel and the continuous control in all production phases that are beyond international specifications, constitute a life time warranty for superior quality product. The great variety of tiles designed according to the most contemporary trends of style, meets the requirements for a higher standard of living. And this because

Philkeram-Johnson S.A. always looks for a better way to offer in every consumer alternatives of a whole life.

The group of companies Philkeram-Johnson S.A. equals quality. Quality is our AIM but first of all is our COMMITMENT.

Philkeram Johnson S.A. was the first and largest ceramic tiles producer in Greece and was established in 1961 by the Philippou family and Christos Constantopoulos. In the 2000s, it occupied 350 people and had an annual production of 4.500.000 m². Almost 30% of the production was exported to more than 20 countries.

Up until 1962 the Greek market covered its needs of ceramic tile by importing from advanced industrial countries. The Philippou family, devoted to the ceramic art for 120 years, studied the market requirements and with the establishment of PHILKERAM in 1962, proceeded to design and produce a high industrial level product: the 'Earthenware' tile. The successful operation of Philkeram during the first two years of its existence drew the attention of international investors. So the English house Richard Tiles Ltd proposed a 50% cooperation with the company, which was accepted and renamed Philkeram - Richards S.A., thus tripling its production and substantially increasing the company's exports.

In 1966 Philkeram - Richards S.A. introduced, for the first time, the relief tile, thereby increasing its exports to the EEC and the Middle East. The increased demand was dealt with investment in new equipment and the quadrupling of staff. In 1969 Richard Tiles Ltd merged with H & R Johnson Ltd, leading the company's title to be changed again to Philkeram - Johnson S.A. The invested capital reached 100,000,000 GRD, while the ownership structure is maintained at previous levels. The staff stood at 350 people and the sheltered company area covered 21,000 m2. In 1979, H & R Johnson was acquired by Nocros Plc, which today still owns 50% of Philkeram - Johnson S.A. In 1982 Industrial Mining S.A. 18 is founded, which produces and markets building materials, with special expertise in tile adhesives and grouts.

At first Philkeram Johnson produced only white square tiles (15x15 cm). Soon, however, the range spread to other colors. Then the company proceeded to install decorative machines that allowed the company to present a wider range of designs and colors, thus beginning the first exports. Development continued with the production of wall tiles of various dimensions as well as experimenting with and studying the production of tiles and flooring.

2.2 INTRODUCTION OF THE BUILDING MATERIAL INDUSTRY

Contents

FABRIC

MUD AND CLAY WOOD ROCK CONCRETE GLASS

PLASTIC

CEMENT COMPOSITES BUILDING PRODUCTS

2.3 Structure of building material industry

There are several types of establishments that fall into the retail lumber and building materials category. The largest categories, by far, are lumberyards, home centers, and warehouse home centers.

Lumberyards, whether as single establishments or parts of a chain, rely heavily on the industry's traditional customer base of contractors, builders, remodelers, and other professionals. Most of their business, anywhere from two-thirds to three-quarters, comes directly from the sale of lumber and building material. Most of these businesses average annual sales of about $3.8 million per unit. Sutherland Lumber, Grossman's, and 84 Lumber fall into this category.

Home centers, which often sell hardware as well as lumber and building materials, generally occupy about 30,000 to 35,000 square feet. Due to their size, they greatly outsell the smaller lumberyards. Many of these sales are to do- it-yourselfers, as well as professionals. Hechinger, Lowe's Companies, and Payless Cashways are home centers.

By contrast, warehouse home centers have an average of more than 100,000 square feet of floor space. They boast a wide selection of merchandise at lower prices, although they offer fewer frills than the smaller stores. Home Depot, Builder's Square, and HQ (Home Quarters) are warehouse home centers. At the end of 1999, annual sales reported by the U.S. Department of Commerce

20 included totals from both home centers and warehouse home centers. The sales per unit averaged almost $13 million annually.

Competition has driven many retailers to find new ways of attracting customers. Many outlets offer custom bath and kitchen design and installation, home decorating merchandise, garden centers, and "how to" classes. Some, such as Lowe's, have moved into even more diverse areas, such as electronics, appliances, home office equipment, accessories, and software.

Establishments in this industry purchase lumber from wholesalers or direct from factories and mills. Most of the lumber and wood products come from the Pacific Northwest and the Southeast. Other building materials, such as paints, cement, hardware, and related supplies, usually were purchased through wholesalers, specialty distributors, or direct from the manufacturer. Some larger chains carried their own labels on products they sold through contractual agreement with manufacturers. Larger stores also worked with manufacturers in training employees about particular product lines.

The industry is represented in federal government policy-making processes by the National Lumber and Building Materials Dealers Association (NLBMDA.) The NLBMDA also provides educational and informational programs to meet industry needs. Some 6,800 retail lumber and building materials dealers, in all 50 states, belong to the association. The NLBMDA also publishes the Building Materials Retailer, a monthly magazine, and maintains a site on the World Wide Web.

2.4 Group's Activities of philekram Johnson S.a.

Using Economically Designed Shewhart and Adaptive X - Charts for Monitoring the Quality of Tiles

This paper presents a detailed study leading to the industrial application of relatively new concepts in control chart design for more effective statistical monitoring of a critical stage of tile manufacturing. The motivation for the study came on one hand from the endeavor of the management of Philkeram - Johnson S.a. (PJ for brevity), a major Greek manufacturer of ceramic tiles, to continuously improve their on-line quality assurance methods and on the other hand from the authors’ observation that such an improvement could be based on the utilization of economically designed control charts.

Current quality monitoring practice in tile formation

The currently used quality monitoring procedure in the tile formation stage is the following. At the beginning of each shift (i.e., every 8 hours) three tiles are collected, one from each stream/pressing position (corresponding to a die of the punching set), and their penetrability is measured at an adjacent working bench.

2.5 COMPARATIVE POSITION OF BUILDING MATERIAL INDUSTRY WITH INDIA

Building material is any material which is used for a construction purpose. Many naturally occurring substances, such as clay, sand, wood and rocks, even twigs and leaves have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use, some more and some less synthetic. The manufacture of building materials is an established industry in many countries and the use of these materials is typically segmented into specific specialty trades, such as carpentry, plumbing, roofing and insulation work. They provide the make-up of habitats and structures including homes. One of the biggest boosts for the building materials sector is the seemingly endless raising of the bar by various national planning departments on “green” building. The green building materials market was worth some US$60 billion in 2009 in the United States alone, with the residential market being a major driver. One of the biggest segments of this market is the green floor-coverings sector, with renewable products such as woven floor coverings, bamboo, or cork being in huge demand.

India Greece keen to enhance trade and economic ties bilateral trade with

Greece up by 84 percent

• India and Greece as emerging economies

While the Greek and euro zone debt crisis is the current preoccupation of policy makers, Indian newspapers and TV channels are virtually silent on the matter. After all, India’s economy is booming – growing at a solid 8%; what can India have to worry about?

At closer inspection, the Greek crisis is more relevant to the Indian economy than one would necessarily imagine. India’s budget deficit is nearly at $50 billion – the highest amongst BRIC countries; a 2009 study indicates that India owed about

$2.5 trillion – 78% of its GDP at the time. And while it’s true that India has traditionally financed its budget deficits domestically, this is where the Greek crisis becomes a pertinent case study. India, like Greece, is plagued by an evasive tax ethos and a large, informal economy.

Let’s describe the Greek crisis in a nutshell: Greece racked up government debt so it had to adopt stringent austerity measures and secure a bailout. And why did Greece get itself into this mess? While the most common answer is excessive public spending, one cannot ignore the role of tax evasion in perpetuating a regressive economic system.

Public spending and tax evasion contributed to the Greek crisis in equal measure, and this is where the relevance and parallels to India are evident. India’s public deficit is three times the average of any emerging economy. India has an even larger informal economy than Greece, with the Indian informal economy making up roughly two-thirds of its GDP as opposed to Greece, where the informal economy is about 27% of the GDP. Further, India, like Greece, has been plagued by corruption scandals, some of the foremost examples being the 3G scam (totaling about $40 billion in losses for the Indian Government) and the

Commonwealth Games.

The two countries are characterized by a peculiar vicious cycle – where tax evasion makes people trust the system less, and inexact enforcement measures and bribery encourage evasion. Both Greece and India have recently dealt with public protests; Greece is trying to improve its enforcement system, and the Indian government has been compelled to commit to introducing an anti- corruption law known as the “Lokpal Bill” following a popular protest led by Gandhi an Anna Hazare.

• Trends in Indian and Greece economies as trading economies

India and Greece are keen to enhance the levels of bilateral trade, which stood at around US $ 620 million in 2005-06. A meeting held here today between Shri Kamal Nath, Union Minister of Commerce and Industry, and the visiting Greek Minister of Finance and Economy, Mr. George Alogoskoufi noted that India’s trade with Greece increased by an impressive 84% to reach US $ 620.46 million in 2005-06 (i.e., comprising US $ 564.09 million worth of exports from India to Greece and US $ 56.37 India and Greece are keen to enhance the levels of bilateral trade, which stood at around US $ 620 million in 2005-06. A meeting held here today between Shri Kamal Nath, Union Minister of Commerce and Industry, and the visiting Greek Minister of Finance and Economy, Mr. George Alogoskoufi noted that India’s trade with Greece increased by an impressive 84% to reach US $ 620.46 million in 2005-06 (i.e., comprising US $ 564.09 million worth of exports from India to Greece and US $ 56.37 worth of imports from Greece to India). However, this was way below the potential, both the Ministers said, while underlining the desire to develop bilateral trade and economic ties especially in view of close and friendly relations between the two countries as ancient civilizations and modern democracies.

Referring to the proposed Agreement on Trade and Investment between India and the European Union (EU), which could open vast opportunities for business on both sides, including Greece, Shri Kamal Nath said that India would like to see early commencement of negotiations for this Agreement and sought Greece’s support in the Council of the European Commission for ensuring an early mandate for the negotiations focused on trade and investment.

medical tourism, agriculture (especially olive oil) and food processing were the other potential areas of growth. He invited Greek companies to participate to India’s infrastructure programmed while conveying that Indian companies could also participate in the infrastructure sector in Greece. The need for easier visa procedures for Indian businessmen and professionals in Greece was also flagged.

Worth of imports from Greece to India). However, this was way below the potential, both the Ministers said, while underlining the desire to develop bilateral trade and economic ties especially in view of close and friendly relations between the two countries as ancient civilizations and modern democracies.

While noting that Indian exports to Greece had diversified beyond traditional commodity items to include machinery, automobiles and engineering goods, Shri Kamal Nath said that auto components, pharmaceuticals, health sector including medical tourism, agriculture (especially olive oil) and food processing were the other potential areas of growth. He invited Greek companies to participate to India’s infrastructure programmed while conveying that Indian companies could also participate in the infrastructure sector in Greece. The need for easier visa procedures for Indian businessmen and professionals in Greece was also flagged.

2.6 PRESENT POSITION AND TREND OF BUSINESS

Traditionally, the balance of Greece trade has been negative. However, ever since Greece joined the EU and gave up restrictive trading measures, things have started to look up, albeit with still a negative balance. The US remains the largest trade partner of the nation outside of EU members.

The global building materials market is expected to grow at more than 6% yearly through 2015 to reach almost $890 billion, according to Market Line. The industry encompasses cement, brick, concrete, sand, aggregates and gravel manufacturers. Cement manufacturing was the most dynamic market segment in 2010, reaching close to $200 billion, or nearly a third of the overall global market. Among the most-used building materials are steel, glass, wood, plastics and cement. The industry supplies related industries, including wiring manufacturers and furniture manufacturers.

The building materials market is fuelled in a large part by green building, with this market segment worth over $60 billion in the US. Green building is particularly popular in the residential market, lead by demand for such products as cork, bamboo and woven flooring. Concrete production from recycled materials is also a dynamic growth area within the industry, along with wood from sustainable forests, energy-efficient lighting fixtures and water-efficient plumbing fixtures.

Market Outlook

Economic growth and rising population impact the construction materials market, and profitability will be curbed by high-energy prices. Economic slowdown is also likely to cut profit as companies absorb input costs they can pass on in a stronger economic climate.

Areas of innovation in the building materials industry include specialty materials, such as those used in storm rooms to provide shelter during extreme weather conditions. Much development is being carried out to limit thermal loss from residential buildings to boost energy efficiency. In addition, environmental regulations pertaining to building requirements and the need to cut energy costs will continue to fuel market growth, with smart buildings and green buildings set to see substantial expansion.

2.7 Policies and Norms of Greece of building material industry for import & export

• Building Licenses Section

The competences of the Building Licenses Section are as follows:

• Receive applications for construction, maintenance, and destruction licenses, and work on issuing them.

• Receive applications for work completion certificates, and work on issuing them.

• Control buildings under construction to ensure that the construction is conducted according to the licenses and designs accredited by the Municipality, and take appropriate measures against violators.

• Import and export restrictions

Duty rates on imports vary according to the type of goods imported. There is no requirement for an import license for non – EU transactions. Agents or customs brokers, who are hired for this reason, upon transfer of goods through customs, usually pay duties and VAT. Terms of payment are usually arranged through a commercial bank. A non‐ resident importer must under certain circumstances, appoint a VAT fiscal representative in Greece.

• Custom’s Export & Import Standard

Greece has established specific certification for certain products. This "homologation" involves cumbersome product testing by approved laboratories. However, a product that meets the standards and certification requirements of any other EU country can be imported and sold in Greece without further testing. Greek homologation requirements remain in force for computer keyboards and screens, dot matrix printers, Teleprompters, medical equipment, electric typewriters, telecommunications equipment, motor vehicles, bicycles, pleasure boats, gas connectors, etc. Greece uses NP EN ISO 9000 Standards, which are equivalent to ISO 9000 standards. Exporters must demonstrate through a certifying entity that the products offered meet equivalent quality standards. Greece allows the entry of used equipment, material and goods. However, they are subject to the same standards concerning safety as apply to any new import. Additionally, there may exist regulations specific to the particular type of equipment, such as computers and peripherals that is being imported.

• Custom’s duties

Following Greece’s entry into the EU, cross border trading is no longer subject to strict controls. Transactions between residents of EU member states are not considered imports or exports and therefore they are not charged any duty. Sales to purchasers registered for VAT in EU member states are not subject to VAT in Greece provided that there are the VAT registration numbers of the supplier and purchaser on the invoice.

• Import Duty Rate

Greece, like most member states of the European Community, bases its Harmonized Tariff Schedule on the TARIC (Integrated Tariff of the European Community) which is issued by the Commission and the Member States for the 30 purpose of applying Community measures relating to import and exports, and- when necessary- to trade between member states. The TARIC also serves as a basis for the working tariffs and tariff file of Greece and other Member States. Greek customs values shipments at C.I.F. prices. Import duty rates are divided into two classifications: Most Favored Nation (MFN) and General. Import duties are calculated on ad valorem basis, i.e. expressed as a percentage of the value of the imported goods. There are three primary entry types for importing into Greece:

1. Standard clearance procedure

2. Simplified clearance procedure

3. Simplified declaration procedure

The first two procedures apply to all shipments regardless of value; the third one applies to shipments of commercial samples valued below 45 EUR or gifts valued below 23 EURO and/or to negligible value shipments below 22 EURO and provides Duty and Tax relief.

Below is a summary of the new rules for EU demonisms value that enter into effect December 1, 2008:

• A commercial shipment below 22 Euros: no duty and no VAT collected.

• A commercial shipment between 22 Euros and 150 Euros: no duty but

VAT is collected.

• A commercial shipment over 150 Euros: duty and VAT are collected.

• Import Licenses

Certain products require special documents: food products need a certificate of

31 health in Greek; electric materials and construction equipment/machinery need a certificate of conformity to EU directives; grapes, alcoholic beverages and tobacco need a certificate of authenticity. Certificates of origin may also be required if the origin can in any way be attributed to a country subject to quantitative.

Importers apply for import licenses at the Ministry of National Economy or the respective agency that controls the commodity. A commercial invoice that includes freight and insurance, the C.I.F. price, net and gross weight, and an invoice number must accompany the license application. Customs accepts commercial invoices by fax. The license, once granted, is normally valid for six months but may be extended if adequate justification is provided.

Goods that are shipped to a Greek customs area without proper import licenses or declarations are usually subject to considerable delay and may run up substantial demurrage charges. Prior to making shipments, exporters should ensure that the importer has obtained the necessary licenses.

• Excise Duties

Excise duty rates may also be applicable on certain items such as alcohol and tobacco. For further information, please contact the Greek Customs Office. Excise taxes are assessed against certain commodities, which are normally identified as "luxury" goods. The excise tax is normally assessed against tobacco products, perfumes and alcohol products but can also be assessed against other goods as deemed by Greek regulations. A 12% admissions tax is applied on all motion pictures

2.8 Policies and Norms of India for Import or export to

the Greece in building material industry

S. HS Code Commodity 2009-2010 %Share 2010-2011 %Share %Growth digit No. Code level option

1. 69 CERAMIC 100,008.68 0.1183 153,725.85 0.1345 53.71 4 6 8

PRODUCTS.

India's Total 84,553,364.38 114,264,897.18 35.14 Export

• Taxation

India has a well developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are:- Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities.

• Excise Duty

Central Excise duty is an indirect tax levied on those automobiles which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the automobiles are manufactured. It is a tax on manufacturing, which is paid by a manufacturer, who passes its incidence on to the customers.

The Central Board of Excise and Customs ruled January 21, 1998, that CKD/SKD kits, which are taxed at the same rates as CBUs, are eligible for a credit for the full additional duty as they are considered inputs for manufacture. However, if the kits contain all of seven essential parts, components or sub- assemblies (engine, gear box, chassis, transmission, body/cab, suspension system, front/rear axles), the kits are treated as a finished motor vehicle for purpose of assessing customs duties

• India import export with Greece

S.No \Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 .

1. EXPORT 304,306.09 213,659.96 406,323.82 214,976.71 163,008.63

2. %Growth -29.79 90.17 -47.09 -24.17

3. India's 57,177,928.52 65,586,352.18 84,075,505.87 84,553,364.38 114,264,897.1

Total 8

Export

4. %Growth 14.71 28.19 0.57 35.14

5. %Share 0.53 0.33 0.48 0.25 0.14

6. IMPORT 94,867.89 51,029.76 31,933.84 73,953.90 42,440.19

7. %Growth -46.21 -37.42 131.58 -42.61

8. India's 84,050,631.33 101,231,169.9 137,443,555.4 136,373,554.7 168,346,695.5

Total 3 5 6 7

Import

9. %Growth 20.44 35.77 -0.78 23.45

10. %Share 0.11 0.05 0.02 0.05 0.03

11. TOTAL 399,173.98 264,689.72 438,257.66 288,930.61 205,448.82

TRADE

12. %Growth -33.69 65.57 -34.07 -28.89

13. India's 141,228,559.8 166,817,522.1 221,519,061.3 220,926,919.1 282,611,592.7

Total 5 0 2 4 5

Trade

14. %Growth 18.12 32.79 -0.27 27.92

15. %Share 0.28 0.16 0.20 0.13 0.07

16. TRADE 209,438.21 162,630.20 374,389.98 141,022.81 120,568.44 BALANC E

17. India's - - - - -

Trade 26,872,702.81 35,644,817.75 53,368,049.58 51,820,190.38 54,081,798.39

Balance

2.9 Present Trade barriers for import & Export of building material industry

Greece Trade (expressed in billions of US$) exports imports

1975 2.294 5.357

1980 5.153 10.548

1985 4.539 10.134

1990 8.105 19.777

1995 10.961 25.944

As seen in the chart, Greece's balance of trade hasn't been very encouraging, due to the fact that Greece's exports are continuously less than its imports. Greece's trade barriers has put it into horrible debt, now over US$400 billion, an overwhelming 125% of Greece's gross domestic product (GDP). Greece is a member of the European Union (EU), which has helped them out a lot. Although, it still has an enormous trade deficit - $42.8 billion for 2009 – an amount 2.5 times higher than its total exports. In 2008, Greece had a higher trade deficit of $64.8 billion, which is somewhat reassuring. It stays grounded with the help of loans from the EU, remittances from Greeks living abroad, tourism, and shopping.

Although the trade deficit might have decreased in 2009, the trade imbalance wasn't as comforting. Greece’s trade imbalance with America was a negative

$1.64 billion for 2009, up by 75.3% from $932.6 million in 2008.

America’s delivery of air combat machinery to Greece accounted for almost half of total Greek imports in 2009 ($1.1 billion). Other top Greek imports from the U.S. include fuel oil, medicinal equipment, and steelmaking materials. Greek imports from America that were the fastest-growing also includes aircraft on the top of the list - as well as animal feeds, railway transportation equipment, coal, and inorganic chemicals. Greece's fastest-growing exports include: textile, sewing and working machinery, food and tobacco processing machinery, pulp and paper machinery, plastic materials, and non-textile apparel and household goods.

Greece's Business Trade Barriers Strengths

• Greek exporters delivered $95.6 million worth of vegetables to the U.S. last year.

• Greece shipped $21.9 million worth of dairy products and eggs to the U.S. while spending only $121,000 on similar food items from America.

• Greece’s industrial sector transports large amounts of fuel around the world.

• A moderately-valued currency, high investment flow potential and average business environment lead to a slightly positive outlook for Greek investments.

Greece's Business Trade Barriers Weaknesses

• America exported $1.1 billion worth of military aircraft to Greek importers versus only $19.3 million in military aircraft and parts that Greece shipped to the U.S.

• Some aspects of Greek legislation on the stocking, transport and distribution of petroleum products violate EC Treaty trade barrier rules.

• The rules forced companies marketing petroleum products to conclude supply contracts with Greek refineries and prevent retailers from importing petroleum products directly from other Member States.

• Greece's exports are almost always less than their imports, which causes massive trade imbalance.

• When it comes to aircraft, U.S. still has a huge competitive advantage over Greece.

The E U has a wide free-trade system which means that there are few legal barriers to discourage any E U company, or individual person, from doing business in Greece.

Inbuilt System disincentives to looking to do business there would be that the potential workforce might prove volatile, especially when working conditions are ungenerous, the relatively weak transport infrastructure, and the high costs of distribution within the country due to its geographical difficulties.

2.10 Business opportunities of building material industry in Greece

1. Its Cheap: Businesses and individuals can get doors, flooring, lighting, cabinets, windows, sinks and much more for half of the original price or lower. Because Build It Green! NYC is a non-profit; there is less incentive to jack up the prices. Of course, it wouldn't matter if everything on sale was unattractive or dated. Luckily...

2. Its Hip: More and more of New York's hippest restaurants and bars, from chic cocktail lounges to fancy boutiques, are using reclaimed materials for a cool vintage aesthetic. Spaces get a nice weathered look with lots of character and building materials are saved from the landfill--a win-win for everyone involved.

3. It Encourages Recycling on a Large Scale: When a building is about to be demolished or remodeled, everything inside is usually thrown away. Build It Green! NYC comes in and takes those materials away to sell to you--cheap, as salvaged materials. Plus, less new materials need to be manufactured to feed the voracious appetite for construction in New York City.

4. It Lessens Waste: Often contractors and business suppliers end a project with surplus materials. Instead of getting rid of them, environmentally conscious businesses donate them to Build It Green! NYC. Consumers and businesses get cheap building materials that are almost as good as new and less waste goes into the already crowded landfills.

5. Its Versatile: Build It Green! NYC has the ability to serve huge clients as well as eco-conscious individuals, meaning everyone from giant corporations to homeowners can benefit from it.

6. It Supports Great Things: Build It Green! NYC's profits go towards supporting the Community Environmental Center's environmental education program at Solar 1, an organization that teaches schoolchildren in all five

39 boroughs about sustainability.

EU investment

Greece, which joined the single currency in 2001, has enjoyed a stable political environment since the mid 1970s. Its growing economy has boosted business confidence over the last decade, leading to considerable foreign investment..

2004 saw Athens host the Olympic Games, which brought yet more investment into the area, and many infrastructure projects have been funded by the EU (€26bn was pledged for between 2000 and 2015) including highways, tunnels and bridges, railways, airports and harbors, water and sewage projects, and health and welfare projects.

With the enhancement of the country’s image, the Greek Government is keen to press on with these structural reforms and privatization in the large state sector, and is generally supportive of foreign investment.

However, dealing with local bureaucracy can be time consuming and it is advisable to appoint a local representative in Greece before you enter the market. Most are available in the Athens area and cover the whole of Greece, but it may be necessary, in some cases, to appoint a separate agent for the Thessalonica region.

Low labor costs

For global companies wishing to penetrate the Balkan market, Greece offers a sound base as it is the EU’s largest investor in this region.

Staff recruitment is not generally a problem in Greece as the labor force is highly educated and most Greek businesspeople speak English. Unemployment levels run at 12% and Greece has the second lowest labor costs in the EU.

Deregulation, modernization and a series of mergers and acquisitions have seen the

Greek banking system expand rapidly in the last few years.

A full range of services are available from both state and private Greek banks, and a number of foreign banks, including venture capital and other finance for start-ups and established businesses.

The Greek government has passed developmental legislation which aims at providing investment incentives to promote regional development, environmental protection and energy saving and increase employment and competitiveness.

Incentives include investment grants, interest rate subsidies, tax allowances and special incentives for significant industrial mining and large tourist projects

1.1 Demographic profile of Greece

1 Demographic profile of Greece:

The demographic profile of Greece is similar to that of other developed countries: a low birth rate and an increase in the proportion of elderly people. Fertility rates per 1,000 inhabitants are continuously falling in Greece: 18.9 in 1960, 16.5 in 1970, 15.4 in 1980, 10.7 in 1988, and 9.5 in 1998 (Statistical Year Book of Greece). According to the United Nations' population projection, Greece has one of the lowest fertility rates in Europe (1990–1995). The average number (fertility rate) of children per woman between the ages of fifteen and forty-four in Greece was 1.32 in 1995. In all European countries, fertility rates in the same year were 1.43 children per woman. The fertility rates in urban and rural areas of Greece are now the same.

The following is a summary of demographic trends in Greece:

• The average life expectancy was 75.3 for men and 80.5 for women in 1998.

• Contraceptives, especially abortion, are used as methods to interrupt unwanted or unplanned pregnancies.

• Marriage and childbirth now occur later. In 1995 the mean age at which women gave birth to their first child was 28.2 years.

• Infant mortality is dramatically lower, due to improved health conditions for mothers and newborns. In 1960, infant mortality per 1,000 live births was as high as 40.1; in 1998, it was 6.6.

• Internal and international migration are significant factors. The majority of

migrants are young people at their most productive age.

1 http://en.wikipedia.org/wiki/Greece

Table-1

10,760,136 (July 2011 est.)

Population Male Female Male Female Male Female

787143 741356 3555447 3567383 923177 1185630 Age structure 0-14 yea rs: 14.2% 15 -64yea rs: 66.2% 65 Yea rs +: 19.6%

Urbaniz ation Urban popul ation: rate of urb aniz atio n:

61% of total population (2010) 0.6% annual rate of change (2010-15 est.)

Sex ratio at birt h: under 15 15 -64 yea rs: 65 yea rs and total pop ulation: 1.064 years: 1.06 1 over: 0.78 0.96

(2011 est.) male(s)/fem male(s)/female male(s)/femal male(s)/femal male(s)/female ale e e

Infant total: 5 deaths/1,000 live male: 5.49 deaths/1,000 live fem ale: 4.48 mortality rate births births deaths/1,000 live births (2011 est.)

Life total pop ulation: 79.92 male: 77.36 years fem ale: 82.65 years expectancy at years (2011 est.) birth

Et hnic Greek 93% other (foreign citizens) 7% (2001 groups census) Re ligions Greek 98% Muslim 1.3% other 0.7%

Langu ages Greek (official) 99% other (includes English and French) 1%

Liter ac y Definition: age 15 and over male: 97.8% fem ale: 94.2% can read and write total pop ulatio n: 96% (2001 census)

School life male: 16 years fem ale: 17 years expectancy total: 17 years (pri mary to te rtia ry educ ati on)

1.2 Economic overview of Greece

• The Greek economy grew significantly after World War II, but declined in the

1970s due to poor economic policies implemented by the government. As a result, Greece has spent much of the latter part of the 20th century and the early 21st century trying to rebuild and strengthen the economy. Thus, Greece is one of the least economically developed member countries in the European Union (EU). • The Greek government took measures in the late 1980s and 1990s to reduce the number of state-owned businesses and to revitalize the economy through a plan of privatization. • In 2001, the Greek government fully encouraged foreign investment, particularly in its infrastructure projects such as highways and the Athens Metro subway system.

Greece GDP Growth:

The following comments highlight some of the extreme weaknesses in the

Greek economy:

• Economic sentiment (confidence) has been decimated in the past two years and remains close to its record low

• The rate of unemployment has risen sharply from around 8% in 2008 to over

16% currently

• Retail sales have fallen by an average of 12.5%y/y in the first half of 2011, after declining sharply in 2009 and 2010

• Industrial production has fallen on an annual basis in each of the past 39 month

• The VAT rate has been increased to 23%

• House prices have fallen for the past 2 years and in Q1 2011 recorded an annual decline of 5.7%y/y

• The stock market has lost 84% of its value since peaking in late 2007

• The value of government bonds have plunged dramatically in the past 18 months, with yield on the 2-year government bond over 70%

• The dramatic fall in equity and bond market prices suggest that the value of pension and long-term retirement savings have been decimated

• Greek citizens have withdrawn a significant portion of their deposits from Greek banks, presumably to either transfer to banks outside of Greece or to utilise the funds to supplement their monthly income

• Greek banks have had to dramatically increase their borrowing from the Euro- system

• The deficit on the Greek State Budget for the eight months Jan to Aug 2011 amounted to €18,1 billion. This compares with €14.8 billion during the same period in 2010.

• Net government revenues amounted to €30.7 billion in the period Jan to Aug

2011, falling 5.3%y/y, mainly as a result of the severe recession.Government expenditure has risen by 8.1%y/y during the period Jan to Aug 2011, partly driven by increased unemployment benefits and grants to social security funds. • By January 2001 Greece had successfully reduced its budget deficit, controlled inflation and interest rates, and stabilized exchange rates to gain entrance into the European Monetary Union. Greece met the economic requirements to be eligible to join the program of a single currency unit (the euro) in the EU and to have the economy governed by the European Central Bank's focused monetary policy. The Greek government now faces the challenge of structural reform and to ensure that its economic policies continue to enhance economic growth and increase Greece's standard of living. • Greece is currently facing on-going street riots as so-called anarchists prompt widespread protests against government policy. The situation is sure to get worse if the Greek government actually starts cutting its budget deficit.

Greece Current Account Deficit

• One of the recent successes of Greece's economic policies has been the reduction of inflation rates. For more than 20 years, inflation remained in double digits, but a successful plan of fiscal consolidation, wage restraint, and strong drachma policies has lowered inflation, which fell to 2.0 percent by mid-1999.

2 http://greekeconomy.blogspot.com/

1.3 Overview Different economic sectors of Greece

• Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. • Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. • Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.

• The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. • But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. • The economy contracted by 2% in 2009, and 4.8% in 2010. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15.4% of GDP. Austerity measures reduced the deficit to 9.4% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% in 2010.

3 Greece Retail sales

Contribution of different Industry

3 http://www.investingreece.gov.gr/default.asp?pid=21&la=1

• The concentration of business in these areas favors the establishment of new businesses (Greenfield investments) in Greece, and the investment cooperation of foreign companies with Greek companies to produce end products that meet the needs of domestic and international markets.

Contribution of different services

• Growing investment trends in education and health sectors.

• A low percentage (7%) of foreign investment focused on the least productive class of "real estate", whereas the majority of foreign capital went into productive activities with high value added.

4 http://www.investingreece.gov.gr/default.asp?pid=21&la=1

1.4 Overviews of Business and Trade at International Level

Main Industry Sectors

• Traditionally, the Greek economy is based on agriculture. The sector represents

3% of the GDP and employs around 12% of the active population. The main crops are tobacco (largest European producer) and cotton (fifth largest exporter in the world). Greece also has a significant ovine livestock. A large fishing industry is found in coastal regions and the merchant navy represents 10% of the GDP. • The main sectors are: electronic goods, transport materials, clothing and construction. More specifically, Greece is the largest European ship-owners. Growth in the tertiary sector is booming. It accounts for nearly three-fourths of the GDP. Tourism provides a vital source of income and alone contributes 11% of the GDP. Marine fishing represents 10% of the GDP.

FDI in Figures

The available data on FDIs in Greece should be taken with caution because they do not reflect the real situation. Compared to other countries of the European Union, the level of FDIs is low, and given the difficulties the country is currently facing, this trend should continue.

Country Strong Points:

Greece's main strong points are:

• Its membership to the European Monetary Union (EMU). Today, Greece has become the economic hub of Southeast Europe;

• Its competitiveness within the active population in terms of education, manpower costs and work productivity; • Its geographical location, which makes it a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions; • Its infrastructures, which are improving significantly, mainly due to the 3rd

European Union community support framework.

Country Weak Points

The Greek economy has always been and continues to be subject, to intense governmental regulation. According to Transparency International the country also has to tackle high levels of corruption that affect many aspects of the economic and commercial life. In addition, growth has been financed by private sector loans and the public sector's absorption of EU structural adjustment funds, which has caused a large public deficit.

Foreign Trade Overview

Greece has an export-oriented economy, trade representing more than 50% of the GDP. The trade balance is negative and has worsened as an effect of the fall in exports caused by the recession. However, the Greek Minister of Finance recently stated that the figures for the first quarter of 2011 showed a significant recovery in exports. Greece's main trading partners are the European Union (especially Italy and Germany) and the United States.

1.5 Present Trade Relations and Business Volume of

different products with India

India and Greece established diplomatic relations in May 1950. India opened its resident Embassy in Athens in March 1978. Greece has been consistently supporting of India s core foreign policy objectives.

The existing treaty framework is as follows: Trade agreement, Agreement on avoidance of double taxation currently under review, Agreement on Economic, Scientific and Technological Cooperation, Agreement on Tourism Cooperation, Agreement on the Mutual Protection and Promotion of Investments, Agreement on Scientific and Technological Cooperation, Memorandum of Understanding on Cooperation in the Agricultural Sector. The following agreements have been signed between state agencies in the two countries: Cooperation Agreement between the Athens Chamber of Trade and Industry and the FICCI and ASSOCHAM, Memorandum of Cooperation between the Federation of Greek Industries and the CII, Memorandum of Cooperation between the Hellenic Foreign Trade Board and ITPO.

Table:2 Bilateral trade in US$ Million

Year India s Exports India s Imports Total Trade

2007-08 530.95 126.81 657.44 2008-09 878.43 69.49 947.92 2009-2010 452.80 154.13 606.93

(Source: Export Import Data Bank, Department of Commerce, Government of India)

Greece and India have traditionally enjoyed close and amicable relations, and in recent years, there has been a trend towards broader bilateral economic and trade relations.

• The main items of Greeces exports to India are machinery, rubber and plastic products, cotton, copper products, iron and steel products and chemicals.

• The main items of Indias exports are machinery, automobiles and auto parts, iron and steel, aluminum, copper, dyes and chemicals, and textiles and garments.

1.6 PESTEL Analysis

Political factors:-

• Greece is the birthplace of politics as an art and democracy as a form of government. • The prime minister and cabinet council play the central role in the political process, while the president performs some governmental functions in addition to ceremonial duties. • Greek governmental structure has many similarities with other democratic countries in Europe, while it has been described as a compromise between the French and German models. • Political factor is good for the business in Greece.

Economic factors:-

• The Greek economy adopts the principles of free enterprise and is bound by the regulations of international organizations such as ECOFIN and WTO, of which it is a member. • Greece is a member of the European Monetary Union (EMU) and one of the very well performing economies in the Euro zone. • Greece has become the economic hub of Southeast Europe and offers a stable and healthy economic environment that is supportive to the needs of business and investors. • Unemployment in Greece, up to 2008, was relatively low at 7.6%, approximately the mean value of the Euro zone. During 2009, unemployment rose as a result of the international crisis that also affected Greece and reached 9.5%. In 2010

unemployment showed a further increase, at 12.5%, as a result of the domestic debt crisis. In second quarter of 2011, unemployment rose further to 16,3%, compared with 11,8% of the same quarter of 2010.

• In 2010, fixed capital formation in Greece reached 33.2 billion Euros, showing a decrease of 13% compared with the levels of 2009 (38.2 billion Euros). This decrease is due to the drastic reduction of public expenses and the restrictive fiscal policy resulting from the financial crisis in Greece.

• So Economic condition is very complicated for the business purpose in Greece.

Socio-cultural factors

• Greece has a rich cultural heritage and, without doubt, there are many unique archaeological places and monuments such as the Acropolis of Athens, the Epidaurus Theatre etc.

• cultural life is varied, offering a range of different museums, theatres and cinemas, live music, festivals etc.

• The Greek education system includes preschool education, primary education, secondary education and tertiary education. • So Socio-Cultural factors are excellent for business in Greece.

Technological factors

• A strong policy commitment, notably through the National Digital Strategy (2006-

2013), has led to an improvement of most benchmarking indicators in the Greek

ICT sector.

• Greece boasts one of the highest mobile penetration rates worldwide, with a penetration rate at 170%. • Faster changing development in technology creates a need to react quickly for different businesses in order they want to maintain the competitive environment by providing the same innovative services, which their competitors are offering. • There is headroom for significant growth, as the public and private sectors embrace new technologies throughout the country. • The development of technology is affecting the businesses in Greece and all over the world. Changes in the technology have changed the way businesses operate i.e. Internet booking for tickets and holidays. • Distribution of products by the use of technologies e.g. marketing information systems, customer relationship management are also common practices with different businesses for effective services to their customers. • So technology factor is gives to good impact for the business in Greece.

Environmental factors:-

• Greece is embarking on a long-term plan to overhaul its waste management practices. New technologies are needed to deal with an increasing burden of waste and that meet the demand for disposal, energy generation, recycling, and building new, closed-loop systems that limit

waste generation.

• Greece consciously looking towards environment & recycle 55-80% of packaging material by 2011 and decrease organic urban waste by 25% through composting processes at source by 2010. This should increase to 50% by 2013 and 65% by 2020.

• Greece having a highly promising area is technology to transform waste to energy.

• So Greece have wonderful environment for the business.

2.1 Introduction of the Vodafone and its role in the economy of Greece

• This wireless giant was created in 1984 as a subsidiary of Racal Electronics Plc.

• In September of 1991 Vodafone Group Plc. emerged and became and independent company from Racal Electronics Plc. • On 28 July 2000 in a merged with Air Touch Communications, Inc. In 2001 they introduce instant messaging the networks. • They launch their first 3G service in Europe with their mobile connect 3G/GPRS

data card in 2004.

• in February of 2007 Vodafone, Microsoft and Yahoo! together to bring Instant messaging services to the mobile world which can be accessed from both the PC and mobile handsets. Today they have become a wireless giant. • Vodafone Offered is a variety of voice, messaging, data and fixed broadband services. • Vodafone provides a variety of billing options. Such as: month to month, prepaid and even contract. So this gives you the option to choose what fits your needs. • Vodafone-Panafon is a leading GSM/GPRS/UMTS mobile operator in Greece since the introduction of GSM in the Greek market (1993) and a member of the Vodafone Group with over 200 million customers worldwide. • The company operates a cellular network in GSM 900 and 1800MHz, 2.5G with

GPRS launched in Mar 01 and UMTS launched in October 04 with more than

50% population coverage.

• The group has launched UMTS services in 18 countries and has more than 50 million Vodafone live! subscribers. • The company offers full range of mobile telecom services, operates also as an Internet Service Provider, as a WLAN operator and offers LMDS services for corporate customers. • Vodafone Greece owns the largest private transport network in Greece with

microwave and fibre-optic transmission systems.

• Vodafone Greece has been participating to European Research projects since ACTS (STORMS, ASPECT) and since 2001 it has a specific R&D team which has intensified the relevant activities. The team has focused on internal projects including:

the development of Value Added Services and Internet related applications, the overall improvement of network performance, quality,

the extensive employment of field trials for new products and technologies

(e.g. VoIP, LBS, Multicasting), and

the specification and development of MIS and network related software tools (planning tools. network management tools), and has increased significantly its participation to IST projects (LOVEUS, CREDO, ADAMANT, CONTEXT, SEMOPS, MB-NET, MCAST, MOTIVE) and e- Content projects (M-GUIDE, MUSICAL). In the context of these projects,

• Vodafone Greece has developed certain areas of technical expertise as well as extensive skills on performing prototype system trials. The R&D unit of Vodafone Greece has since 2003 has been integrated to Vodafone Group R&D UK Centre and has taken over the responsibility of Collaborative Research Management. • “Vodafone is proud to be part of Greek economy. Vodafone continue to invest through challenging economic times. They believe that their sector is critical to the economic regeneration both of Greece and of Europe generally. ICT has been a fundamental driver of economic growth for the past 20 years in both developed and developing markets. • World Bank studies suggest that broadband has had the biggest effect of any technology so far: a 10% increase in broadband penetration drives a 1% increase in GDP growth. This is more than internet or mobile. But nobody yet knows what the impact of combining these platforms together will be, what mobile broadband - the combination of mobile, broadband and the internet - can do for growth. But it will clearly be very significant.

• Technology and investment by their sector is not enough. Recent studies by the London School of Economics remind them that ICT investment is a necessary but not a sufficient condition for Regeneration and recovery. • particularly in the use of mobile to improve healthcare delivery, but lets be clear that the overall record in Europe is disappointing. European policymakers should not congratulate Vodafone for providing mobile payment services or innovative. • 34% of Vodafone s European customers are already using data – thats already

10% more than those using fixed broadband services today.

• Peak data rates are moving to 28 Mb/s in many urban areas and to 43 Mb/s in some. This is more than the 30 Mb/s the European Commission wants to see available to every household in ten years from now. • Spectrum reforming and the release of digital dividend spectrum at lower frequencies are allowing us to extend broadband to areas which did not previously make economic sense. • Vodafone already provides 80% 3G coverage in Europe, but this year Vodafone announced plans to cover 90% of the Romanian population –extending broadband to 10% of the population in that country who currently have no access to any kind of broadband. Reforming and the release of digital dividend spectrum are also vital for Greece, and an area where the country currently lags behind. Extending coverage to rural areas will also require much more effective sharing of base station sites between the Greek operators. If this is not to be achieved through commercial.

2.2 Structure, Functions and Business Activities of Vodafone

Vodafone Structure:

Business Activity— Information Technology Services/Shared Services has responsibility for the design, operation, and maintenance of telecommunication services for all Stanford University and Hospital facilities. • Telephone System — Shared Services operates the University-owned telephone system, providing service from the users telephone jack (also called a telecommunication service outlet) up to the public network. Telephone services from any source, including SBC, are provided through the facilities of Shared Services. • Network Systems — Shared Services operates the University backbone network, providing access to the University network (SUNET) and off-campus network services. Shared Services may also provide facilities and installation for local departmental networks through the Net-to-Jack program. • Scope of Service — The University telephone system and network operate 24 hours a day, 7 days a week, providing continuous service for the campus. Shared Services maintains these systems at the highest level of private branch exchange (PBX) service continuity. Departments that require total uninterrupted telephone or data communication services are responsible for working with Shared Services to plan, install, and maintain separate emergency backup services. • Consulting — Shared Services provides consulting service to advise departments about the best use of telecommunication services and on-campus facilities, and to assist departments in ordering new services, changes to current configurations, or moves of existing service.

• System Equipment — The telephone and network and associated peripheral equipment are maintained by Shared Services. All maintenance on the telephone line or switched data line is performed by Shared Services up to the end users jack. Installation of new telephone or switched data lines as well as repairs or extensions to current lines may be performed only by Shared Services authorized personnel.

• Departmental Equipment Ownership — The end users telecommunications equipment from the jack out is the responsibility of end users and their departments. This equipment includes line cords, telephone sets, modems, or other telecommunication terminals. This equipment is selected and owned by the end users department. Shared Services recommends a number of telephones and other telecommunication terminals that work well in the University and Hospital environments. Uniformity in telephone equipment is desirable to provide the end user with ease of use from one telephone to another, quick access to services and easy training in equipment usage. • Departmental Equipment Maintenance — Shared Services provides:

1. Installation service for telephone sets

2. End user training for the sets it recommends

3. Maintenance for its supported telephone sets (on a cost recovery basis) Departments may make arrangements to purchase telephone sets from Shared Services, or may purchase any compatible equipment from other sources. Each department is responsible for securing its own set maintenance, whether from Shared Services for its supported telephone sets, or from other sources. • Conduit and Cable Facilities — The conduit and cable system for all telecommunications on the campus is managed by Shared Services. Shared Services maintains records of all telephone and other telecommunication services on the campus, including outside cable and conduit as well as in- building wiring up to the individual jack. Requests for the use of any of these facilities must be made through Shared Services and associated costs for installation, service activation, and continuing use paid by the requesting department. • Building Wiring Facilities — The University has adopted a standard for

communications wiring to support current and future communication

requirements within its buildings. (Refer to Facilities Design Standards, Facilities Project Management Office, sections 02800, 16700, and 16800.) All new and remodelled structures must use this standard as a minimum. Shared Services reviews all plans for communication wiring and must approve installation of wire (or other communication media) up to the jack. Departments may choose to install their own communication facilities within buildings, but such installation is incremental to the standard inside wiring managed by Shared Services. No department may use the University s inside wire plant without the consent of Shared Services, and payment of appropriate fees for maintaining records of this use, and for any installation or activation charges. • Intended Telephone Usage — Business telephone facilities are provided for conducting the official business of the University. The system is designed for this purpose. All costs are charged to the department authorizing usage. • Personal Telephone Usage — Each department or organization should set guidelines as to personal telephone calls. The department must be reimbursed for the cost of all personal toll calls and long distance calls on the Universitys business telephone lines. Public telephones are generally available for personal calls. • Information About Phone Usage — Any department may, through its appointed contact, request information about billable calls placed on its telephone lines. Information about these calls, including call destination, telephone line used, call duration, and authorization code used, is supplied only to the contact or to the department head. When a department suspects abuse of its telephone lines or authorization codes, it may request that information about such usage be supplied to appropriate Stanford disciplinary and review bodies and persons. • Call Tracing — If a department receives threatening or abusive telephone calls, the contact for that department may request that Shared Services trace the source of incoming calls. Such a trace can provide information about calls placed from other campus telephones. Any trace is reported to the Stanford Public Safety Department and the information from a trace is provided only to the Public

Safety Department. To request a trace of calls placed from off-campus requires a court order delivered to SBC, which must be arranged through the Stanford Public Safety Department. • Monitoring Call Activity — If patterns of telephone usage on any line indicate the possibility of system abuse (such as multiple attempts to discover an active authorization code), Shared Services monitors and reports on the activity of that line, including call destination, in an attempt to discover the individual making such calls. • Recording Conversations — Shared Services does not place a recording on any telephone line conversation, unless under court order. Any department that wishes to record telephone conversations must follow California State law relating to recording conversations. • Order and billing procedures

3.1 Comparative Position of Vodafone with India and Gujarat

We are done the some of comparative position and product between Vodafone Greece and Vodafone India. Vodafone Group is the largest group of telecom industry in all over the world and Vodafone Greece and Vodafone India is the part of Vodafone group of companies.

Vodafone Greece as well Vodafone India both are the best telecom companies of World. They are the largest service providers in World in term of cellular services. Vodafone with its new services and facilities is becoming a threat for other cellular companies. Today what people need is better connectivity and low priced GPRS facility so that they can connect with their loved ones all the time and throughout the globe.

Vodafone Greece provides variety of services like Fixed line Service, Directory service in which Vodafone India lacks. Vodafone is earning large amount of finance due to its broadband services, GPRS service is economical but Vodafone has better range and network as compared to other.

If you travel abroad very frequently than you should switch to Vodafone as it has better international coverage.

Whenever we buy any connection we always want a reasonable and economical calling and messaging service provider. Vodafone new plans and schemes are threat to others in this case as Vodafone try to provide best to its customer at lowest cost. Vodafone provide value based services also as a part of their business.

Customer care as the name suggests it is for the customer satisfaction and convinced. The main aim of it is to provide valuable service to customers as

solve their problems. The people sitting in their customer care office lack in basic ethic sense and mannerism to deal with their customers.

At last the conclusion is that both Vodafone Greece and Vodafone India are the best players of telecom industry and they keep on launching variety of valuable scheme for its customers, so it can be said that whatever the case maybe, the user always has the best of both options and he or she is smart enough to get the best of Vodafone services.

Offering services: Table-3

Vodafo ne India Vodafo ne Greec e Prepaid Prepaid Postpaid Postpaid Broadband services Broadband services - Fixed line service Roaming Roaming - Directory service

Offering Products:

• Handset: Vodafone provide following Branded Handset: HTC Explorer Vodafone Phones

BlackBerry

Nokia

Samsung & etc.

• Sim Card

• Data card

Area/circles of the services:

Vodafone group have large circle all over the world. Vodafone are available in 21 country.

Vodafone Greece cover the all country of United nation.

Vodafone India cover all the state of india.

Vodafone also provide Roaming facilities so every customers of Vodafone are connected across the world.

Business Services:

• Mobile Working

• Integrated Wireline Communication

• Productivity Services

• Voice and Messaging

• Bulk SMS

• Corporate Caller Tunes

• Interactive SMS

• Missed Call Alerts

• Roaming for your Business

• Machine 2 Machine Solutions

• For environment:

Vodafone is playing a significant role in enabling a low carbon future. Vodafone mobile technology can help business customers and consumers make the transition towards lower carbon ways of operating, living and working.

Considerable climate benefits and cost savings can be achieved through applications powered by machine-to-machine (M2M) connections – remote wireless connections that

68 can change the way companies operate. Vodafone aim to roll out 10 million carbon- reducing M2M connections by 2013 through our dedicated M2M business. The initial focus is on smart metering and smart logistics. Vodafone are researching the carbon- reducing potential of other M2M applications.

By adopting mobile flexible working, using video-conferencing and mobile internet access, businesses can reduce emissions from commuting and business travel.

• Eco-efficiency:

Reducing our environmental impacts is a sustainability priority for Vodafone. But this

„eco-efficiency is also a business imperative; helping them cut operating costs and meet the increasingly robust environmental requirements of our business customers and investors.

We have greatest control over the impacts of our own operations and have robust systems in place to manage these (see Environmental management). Key focus areas are reducing energy use and associated carbon emissions, and managing electronic waste from our network.

Our influence also extends beyond our operations and we adopt a holistic approach to manage and reduce environmental impacts across our value chain: from design and manufacturing of products by suppliers through to use and disposal by our customers.

Fundamentally, Vodafone want to do more for their customers with less: less energy, less carbon, less waste and fewer resources.

• Managing electronic waste:

Our business generates electronic waste (e-waste) as vodafone replace network and office IT equipment and our customers upgrade their mobile phones. Some of this waste is potentially hazardous and must be disposed of responsibly.

Vodafone encourage customers to return old handsets for reuse or recycling by offering incentives and raising awareness.

Vodafone resell used network equipment where possible, and equipment that cannot be resold or reused is broken down into separate materials for recycling.

• Managing network e-waste:

Vodafone periodically replace network equipment at our base stations to keep up with advances in technology. This helps them provide the best service for their customers as well as giving them the opportunity to install new, more energy- efficient equipment to reduce the carbon footprint of our operations. However, upgrading our network also generates electronic waste.

Vodafone has a strong record of recycling the vast majority of our network waste. In their mature markets, Vodafone often have a choice of expert e-waste recycling contractors and can rely on them to comply with international regulations on e-waste.

Collaboration is essential to develop effective processes to manage e-waste. Vodafone are engaging with other ICT companies.

3.2Present Position and Trend of Business (import / export)

with India / Gujarat

The conglomerate of 15 European nations with more to join the bloc next year, the European Union has emerged as India's single largest trading partner accounting for more than one-fifth share in both exports and imports of world's fourth largest economy in terms of Purchasing Power Parity. With the accession of another 10 states on May 1, 2004, the EU bloc will become a trade giant in the world. EU-India trade registered an impressive 150 percent growth--from € 9.97 billion in 1991 to € 25.52 bn in 2001. India's major trading partners in EU are UK, accounting for 21.4 percent of the two-way trade, followed by Germany with 20.7 percent, Bel-Lux with 19.3 percent, and Italy with 11.5 percent. Since their first bilateral summit in Lisbon in 2000, the Indo-EU trade relations got added momentum with both sides being committed to exploit the potential and scope of their economic relations. "The corner stone of the EU-India relationship lies in trade and investment. The EU is India's largest trading and investment partner. Our bilateral trade constitutes a quarter of India's total trade. The EU is also India's biggest partner in development cooperation and the second largest source of foreign direct investment", says Mr. Pascal Lamy, the EU Trade Commissioner who was on a visit to India in march 2011. The recent issue of pesticide contamination of mineral water in India only strengthens the sensitiveness of the European consumer to safety standards. To help develop international SPS standards in India which would benefit the Indian exporters, the Euro 15 million Trade and Investment Development Program (TIDP) together with India's ministry of Commerce and Industry is being launched together with the Indian federal Commerce and Industry ministry. One of the major concerns and impediments for European industry to enter

Indian market is the quantitative restrictions.

The EU Trade Commissioner maintains that trade irritants "must not overshadow our agenda and cooperation". EU-India has already signed an agreement on Scientific and Technological Cooperation. EU now wants a negotiated agreement on textiles, customs cooperation and maritime transport as well. EU looks for synergies between India's world class human capital in areas such as IT and biotechnology and EU cutting edge manufacturing technologies. On Trade Related Intellectual Properties (TRIPs) and public health, EU and India maintains the same position. Agriculture has been identified as most propitious area for joint action between India and EU. EU is in the process of elimination of export subsidies for products of interest to the Third World. There is commonality of interests between these two countries on market access issues. Textiles is yet another disputable area that has to be resolved between the two countries. According to the EU Trade Commissioner, both the countries are exercising on a bilateral textile agreement under which India and EU could export more to each other's country for a "win win situation". India's textile items exports to EU have gone up. Besides, both India and EU would be working on a customs cooperation agreement and maritime transport agreement. On lowering of tariffs on industrial goods, Indian government has been undertaking autonomous liberalization on this matter. "Lowering of tariffs has an impact on governmental revenues. In terms of FDI investments into India approved in 2002, UK and France rank among the top five investing countries. In terms of actual FDI inflow into India in 2002, UK and Netherlands figure among the top five countries. During this year actual FDI inflow from UK into India stood at US$ 353.9 million against previous year's US$ 221.5 mn. From 1991 to May 2002 EU's share in India's total FDI approvals stood at 25.27

percent. Indian fuel sector (Power & Oil refinery) attracted maximum investment

proposals amounting to US$ 4.31 bn followed by the Telecommunication sector's

US$ 2.76 bn.

Major products of Indo-EU bilateral trade include agricultural products, energy, machinery, transport material, chemical products and textiles and clothing. EU accounts for 22.46 percent of India's total exports and 20.73 percent of India's total imports during 2001-02. Between 1991 and 2001, Indo-EU trade has increased by about 156 percent-from €9.97 Bio to €25.52 Bio. While imports were up 171.53 percent, exports grew by 141.61 percent. It is significant to note that India's exports to EU in 2001 was up 4.64 percent signifying substantial fall from 23.16 percent in the previous year. India's imports from EU too markedly declined by 5.20 percent from 28.60 percent in 2000. In the first 10 months of fiscal 2002-03 India's exports to the EU grew by 15 percent. The 1991 economic reform process has propelled India to emerge as one of the fastest growing economies in the world but in a globalizing world where "wealth is increasingly generated through trade, India's half percentage point in global trade reflects a continued relatively high degree of protection. Indian economy could grow by 10 percent if fiscal deficits are contained, structural reforms accelerated and public and private investments raised from currently one quarter to at least one third of GDP, the report points out. India's Planning Commission maintains 8.7 percent GDP would double per capita income to close to US$ 1,000 by 2010. The federal government expects 8 percent GDP in 2003 " while a realistic estimate would put it at just above 5 percent.

4.1 Policies and Norms of Greece for vodafone for import / export including licensing / permission, taxation etc

Greece is a full member of the European Union and applies the E.U. tariff schedule. The Ministry of Finance has the authority for Greek customs and for applying the E.U. tariff schedule. Greek mobile telecom services began in 1992 in Greece after the first licenses were granted, and certain GSM licenses in Greece are due to expire in 2012 thus prompting the public consultation. Vodafone Hellas and Wind Hellas currently operate in the 900 MHz band, while

Cosmote operates, for historical reasons, in the 1800 MHz GSM band.

o Mobile Telecommunication in Greece, according to the Greek Association of Mobile Telecom Service Providers, boasts a connectivity level over 168% and is considered one of the most successful mobile communication services in the world. o Since its humble beginnings in 1992, mobile telecommunication services based on the global GSM standard have outgrown most predictions and have covered 100% of the Hellenic terrain and over 100% of the local population implying multiple connectivity per individuals. o The Greek mobile telecom license renewal is expected to be completed within the 2011 timeframe with the goal of raising, most probably through an auction, more than 300 million Euro for the government coffers. The Greek governments ministry of finance has already accounted for the 300 million Euros emanating from the auction in the 2011 Hellenic Ministry of Finance budget.

The auction process will involve five blocks of spectrum in the valuable 900 MHz band, each consisting of 2x5 MHz where licenses pertaining to four blocks expire in 2012, while the fifth block will be managed after consulting with the Hellenic Armed Forces.

Each block of spectrum has an estimated value between 60 and 90 million Euros, bringing the total sum of the five blocks between 300 and 450 million Euros. GSM 900 MHz Reforming:

o The Greek NRA is also expected to solicit from Greek mobile telecom companies that have licenses in the 900 MHz, but which will expire in the 2016-2017, taxes pertaining to the appreciated value of these licenses. The

900 MHz band is expected to be refarmed as per EU directives for Long Term

Evolution.

o The license renewal is expected to cost Greek Mobile operators whose mobile telecom (GSM) licenses have expired about 160 million Euro per operator, an appreciable sum considering that in 1992 the licenses cost about 90 million Euro or 32 billion Greek drachmas.

The license renewal will be for a period of 15 years.

Licensing:

Licensing shall follow the line of further relaxation of the regime of issuance of permits without overlooking the efficiency of supervision and monitoring of the market. The general regulatory framework for the issuance of licences for telecommunications activities in Bulgaria follows the regulatory framework outlined by the EU in Directive 97/13/EC.

4.2Policies and Norms of India for Import or export to the Greece

Before the Telecom Regulatory Authority of India could finalize its plans for reallocation of spectrum, India s Department of Telecom has issued a set of norms regarding telecom licenses in India. The timing of these decisions is critical, given the uncertainty regarding the future of Indian telecom, and will undoubtedly have a bearing on companies decision to participate in the reallocation of 2G spectrum later this year. India s Supreme Court had cancelled 122 telecom licenses and asked the TRAI to fix a process for reallocation of

spectrum. The DoTs new policy:

License & Spectrum

• Delinking license from spectrum: In the 2008 allocation from the DoT, spectrum had been bundled with the license. This means that even if a company has a license to offer telecom services, it may not have the wherewithal in the absence of bundled spectrum. Spectrum will have to be licensed separately, but the DoT doesnt say how, adding that the decision will be taken “after receipt of detailed Guidelines and Terms & Conditions from TRAI for Unified Licence including migration path for all existing licence(s) to Unified Licence.”

• Eventual migration to Unified Licensing Regime: “In the event of any auction of spectrum pending finalisation of the Unified Licensing Regime, UAS licence without spectrum may be issued which could be subject to a requirement to migrate to Unified licence as and when the regime is put in place. Detailed guidelines for such UAS licence without spectrum would be finalised after receipt of recommendations of TRAI in this regard.” Our Take : This is broadly in agreement with the objectives of the New Telecom Policy 2011, which is still in draft stage.

Minimum License Fee:

There will be a uniform license fee across all telecom licenses and service areas which will progressively be made equal to 8% of the Adjusted Gross Revenue (AGR) in two yearly steps starting from 2012-13, and will be on the basis on a “minimum presumptive AGR”, defined by the TRAI every ear. Our Take: In a sense, this is like a minimum rent being charged, irrespective of whether the company is in business or not. This means the company will have to pay a minimum fee even it doesnt have spectrum to launch services, thus guaranteeing the government some revenue.

License Extension :

The validity of existing UAS (& CMTS and Basic services) licences may be extended for another 10 years at one time, but as per the as per the provisions of the existing licensing regime, and not the terms under which the license was originally issued. On extension, the UAS licensee will be required to pay a fee which will be Rs. 2 crore for Metro and „A Circles, Rs. 1 crore for „B circles and Rs. 0.5 crore for „C circles. The cost of spectrum shall be separate.

4.3 Present Trade barriers for import / Export of selected

goods

Greece maintains nationality restrictions on a number of professional and business services, including legal advice. These restrictions do not apply to E.U. citizens, and U.S. companies avoid these barriers when partnering with Greek or E.U. businesses. A special tax (percentage on admission tickets) applies to many motion pictures.

In Athens and Thessaloniki, the tax is 12 percent of the ticket price; in other cities with a population over 10,000 people, the rate is 8 percent. Revenue from this tax is used to provide grants to Greek film companies to support and develop the industry. The European Commission is examining a regulation that will allow member- states to limit or ban the cultivation of GMOs in their territory. Greece supports this regulation. Greece has not been responsive to applications for introduction of bioengineered (genetically modified) seeds for field tests despite support for such tests by Greek farmers and Greeces agricultural science community. Greece has adopted safeguard clauses to prohibit cultivation of MON810 corn in Greece and has not approved field release for any biotech crop, either for research or cultivation. In September 2008, the Greek Ministry of Rural Development and Food announced intensified and strict controls for GMOs, aflatoxins, heavy metals and plant diseases in grain and feed imports originating in third countries including E.U. members Romania and Bulgaria. Greek customs authorities require 100 percent sampling and testing. Importers have protested and characterized the measures as “non tariff barriers” and not in compliance with E.U. free trade regulations.

In implementing the 2002 Food Supplement Directive (2002/46/EC), Greece restricted the sale of protein based meal replacement products. Such products can only be sold in pharmacies and specialized stores, limiting the ability of U.S.

5 companies to sell their products through direct sales.

5 http://www.ustr.gov/sites/default/files/uploads/reports/2009/NTE/asset_upload_file348_1 5473.pdf

5.1 Potential for import / export in India / Gujarat Market

Indian economy has been growing at unprecedented rate backed by cost effective and labor intensive economy. In fact India has been benefiting significantly from outsourcing work from developed countries as well as with a well-built manufacturing and export muscle in place. Notably, India s exports and imports have witnessed a steady growth over the last two years. Even government has introduced stimulus packages to sustain economic growth of the country during the worst economic crises.

India Trade: Exports

• Petroleum products

• Chemicals

• Vehicles

• Apparel

• Machinery

• Iron and steel

India Trade: Imports

• Electronic Goods

• Machinery other than Electrical

• Iron and steel

• Gold & Silver

• Organic & Inorganic Chemicals

• Precious stones

• Fertilizer

• Metalliferous Ores & Products

• Coal

• Transport Equipment

Telecommunication

As a result of Government policy, progress has been achieved in the manufacturing of telecom equipment in the country. There is a significant telecom equipment- manufacturing base in the country and there has been steady growth of the manufacturing sector during the past few years. The figures for production and export of telecom equipment are shown in table given below:

Table-4 Telecom Export equipment (Rs. in crore)

Year Production Export

2002-03 14400 402

2003-04 14000 250

2004-05 16090 400

2005-06 17833 1500

2006-07 23656 1898 2007-08 41270 8131

2008-09 48800 11000

2009-10 50000 13500 (projected

@ 18%) (projected @ 25%)

Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many renowned telecom companies setting up their manufacturing base in India. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens Networks have set up their manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ in Chennai. Other major companies like Foxconn, Aspcom, Solectron etc have decided to set up their manufacturing bases in India.

The Government has already set up Telecom Equipment and Services Export Promotion Council and Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is expected to be a 6 manufacturing hub for the telecom equipment.

6 www.dot.gov.in/osp/Brochure/Brochure.htm

5.2 Business Opportunities in future

India offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. A host of factors are contributing to enlarged opportunities for growth and investment in telecom sector:

• An expanding Indian economy with increased focus on the services sector

• Population mix moving favorably towards a younger age profile

• Urbanization with increasing incomes

Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside developed economies that are marked by saturated telecom markets and lower GDP growth rates.

Targets Set By the Government

1. Network expansion

800 million connections by the year 2013.

2. Rural telephony

200 million rural subscribers by 2013

Reduce urban-rural digital divide from present 25:1 to 5:1 by 2012.

Connected India: telecom vision 2020

The policy initiatives should focus on achieving the vision for connected Indian Telecom

2020: India should have a convergence services enabled network with voice, data, video, media, broadband and internet services delivery to subscribers with high quality of experience. It should be supported by different metrics of quality of services at affordable tariffs meeting the needs of different segments of society, with inclusive participation from rural India to ensure telecom coverage for all

Connected India: telecom mission 2020

Connected India: telecom mission 2020 should aim to achieve the following objectives

To recognize and treat telecom infrastructure as critical infrastructure to accelerate the pace of growth of the sector and increase its contribution to the Indian economy

To connect the unconnected at affordable prices to ensure 100% telecom coverage of the country; achieve rural penetration of 100% and reach overall wireless penetration of 110%

To strengthen broadband penetration to reduce the digital divide; achieve total broadband connections of 150 million

To earn revenues of around US$60 billion

A two-pronged strategy is needed to achieve connected India Telecom Mission 2020. First, the existing challenges faced by various stakeholders need to be addressed. This involves key enablers such as licensing framework, spectrum, USOF, broadband penetration, M&As, equipment manufacturing and infrastructure development. Second, the policy should be able to meet future opportunities. This will, among other things, include the unique identification number (UID) scheme, financial inclusion and m- 7 commerce.

7 www.ey.com/...telecom...in-India/.../.

1.1 Demographic Profile of The Country

Greece is a country located in Southern Europe on the southern end of the Balkan Peninsula possessing an archipelago of about 2,000 islands. Greece has land borders with Albania, Macedonia, Bulgaria, Turkey, the Aegean Sea, the Ionia Sea and the Mediterranean Sea. Greece has a strategic location dominating the Aegean Sea and southern approach to the Turkish Straits. The government system is a parliamentary republic. The chief of state is the President and the head of government is the Prime Minister. Greece has a market economy in which the prices of goods and services are determined in a free price system. Greece is a member of the European Union (EU) and the Black Sea Economic Cooperation (BSEC).

Demographics

The official statistical body of Greece is the Hellenic Statistical Authority (ELSTAT). According to the ELSTAT, Greece's total population in 2001 was 10,964,020. That figure is divided into 5,427,682 males and 5,536,338 females. The preliminary results of the 2011 census show a decrease in the country's population to 10,787,690, a drop of 1.6%.As statistics from 1971, 1981, and 2001 show, the Greek population has been aging the past several decades.

The birth rate in 2003 stood 9.5 per 1,000 inhabitants (14.5 per 1,000 in 1981). At the same time the mortality rate increased slightly from 8.9 per 1,000 inhabitants in 1981 to 9.6 per 1,000 inhabitants in 2003. In 2001, 16.71% of the population were 65 years old and older, 68.12% between the ages of 15 and 64 years old, and 15.18% were 14 years old and younger.

Greek society has also rapidly changed with the passage of time. Marriage rates kept falling from almost 71 per 1,000 inhabitants in 1981 until 2002, only to increase slightly in 2003 to 61 per 1,000 and then fall again to 51 in 2004. Divorce rates on the other hand, have seen an increase – from 191.2 per 1,000 marriages in 1991 to 239.5 per 1,000 marriages in 2004.

Cities

Almost two-thirds of the Greek people live in urban areas. Greece's largest metropolitan centres and most influential urban areas are those of Athens and Thessaloniki, with metropolitan populations of approximately 4 million and 1 million inhabitants respectively. A number of cities that also form influential urban centres around the country include those of Patras, Heraklion, Larissa, Volos, Rhodes, Ioannina, Chania and Chalcis with urban populations above 100,000 inhabitants.

The table below lists the largest cities in Greece, by population contained in their respective contiguous built up urban areas; which are either made up of many municipalities, evident in the cases of Athens and Thessaloniki, or are contained within a larger single municipality, case evident in most of the smaller cities of the country. The results come from the population census that took place in Greece in May 2011.

Central square in Nafplion, the first capital of modern Greece

Throughout the 20th century, millions of Greeks migrated to the United States, United Kingdom, Australia, Canada, and Germany, creating a thriving Greek Diaspora. Net migration started to show positive numbers from the 1970s but until the beginning of the 1990s the main influx was that of return migrants.

In 1986 legal and unauthorized immigrants totaled approximately 90,000. A study from the mmo.gr Mediterranean Migration Observatory maintains that the 2001 census recorded 762,191 persons residing in Greece without Greek citizenship, constituting around 7% of total population. Of the non-citizen residents, 48,560 were EU or European Free Trade Association nationals and 17,426 were Cypriots with privileged status. The majority come from Eastern European countries: Albania (56%), Bulgaria (5%) and Romania (3%), while migrants from the former Soviet Union (Georgia, Russia, Ukraine, Moldova, etc.) comprise 10% of the total. The greatest cluster of non-EU immigrant population are the urban centers, especially the Municipality of Athens with 132,000 immigrants, at 17% of the local population and then Thessaloniki, with

27,000, reaching 7% of the local population. There is also a considerable number of co-ethnics that came from the Greek communities of Albania and the former Soviet Union.

Greece, together with Italy and Spain, faces a flood of illegal immigrants trying to enter the EU. The Cabinet has approved a draft law that would allow children born in Greece to parents who are immigrants, one of whom must have been living in the country legally for at least five consecutive years to apply for Greek citizenship.

Religion

Flag of the Greek Orthodox Church. Holy Trinity monastery, in Meteora, Thessaly.

The Greek Constitution recognizes the Orthodox faith as the "prevailing" faith of the country, while guaranteeing freedom of religious belief for all. The Greek government does not keep statistics on religious groups and censuses do not ask for religious affiliation. According to the U.S. State Department, an estimated 97% of Greek citizens identify themselves as Orthodox Christians, belonging to the Greek Orthodox Church.[92] In a Euro stat – Euro barometer 2005 poll, 81% of Greek citizens responded that they "believe there is a God”, which was the third highest percentage among EU members behind only Malta and Cyprus. According to other sources, 15.8% of Greeks describe themselves as "very religious", which is the highest among all European countries. The survey also found that just 3.5% never attend a church, compared to 4.9% in Poland and 59.1% in the Czech Republic.

Estimates of the recognized Greek Muslim minority, which is mostly located in Thrace, range from 98,000 to 140,000, (between 0.9% and 1.2%) while the immigrant Muslim community numbers between 200,000 and 300,000. Albanian immigrants to Greece are usually associated with the Muslim religion, although most are secular in orientation. Following the 1919–1922 Greco-Turkish War and the 1923 Treaty of Lausanne, Greece and Turkey agreed to a population transfer based on cultural and religious identity. About 500,000 Muslims from Greece, predominantly Turks, but also other Muslims, were exchanged with approximately 1,500,000 Greeks from Asia Minor (now Turkey).

Athens is the only EU capital without a purpose-built place of worship for its Muslim population.

Judaism has existed in Greece for more than 2,000 years. Sephardic Jews used to have a large presence in the city of Thessaloniki (by 1900, some 80,000, or more than half of the population,

88 were Jews), but nowadays the Greek-Jewish community who survived German occupation and the Holocaust, during World War II, is estimated to number around 5,500 people.

Greek members of Roman Catholic faith are estimated at 50,000 with the Roman Catholic immigrant community approximating 200,000. Old Calendarists account for 500,000 followers. Protestants, including Greek Evangelical Church and Free Evangelical Churches, stand at about 30,000. Assemblies of God, International Church of the Foursquare Gospel and other Pentecostal churches of the Greek Synod of Apostolic Church has 12,000 members. Independent Free Apostolic Church of Pentecost is the biggest Protestant denomination in Greece with 120 churches. There are not official statistics about Free Apostolic Church of Pentecost, but the Orthodox Church estimates the followers as 20,000. The Jehovah's Witnesses report having 28,859 active members.

Languages

Ancient Greek Ostracon bearing the name of Cimon. Museum of the Ancient Agora, Athens.

The first concrete evidence of the Greek language dates back to 15th century BC and the Linear B script which is associated with the Mycenaean Civilization. Greek was a widely spoken lingua franca in the Mediterranean world and beyond during Classical Antiquity, and would eventually become the official parlance of the Byzantine Empire. During the 19th and 20th centuries there was a major dispute known as Greek language question, on whether the official language of Greece should be the archaic Katharevousa, created in the 19th century and used as the state and scholarly language, or the Dimotiki, the form of the Greek language which evolved naturally from Byzantine Greek and was the language of the people. The dispute was finally resolved in 1976, when Dimotiki was made the only official variation of the Greek language, and Katharevousa fell to disuse.

Greece is today relatively homogeneous in linguistic terms, with a large majority of the native population using Greek as their first or only language. Among the Greek-speaking population, speakers of the distinctive Pontic dialect came to Greece from Asia Minor after the Greek genocide and constitute a sizable group.

Education

The Academy of Athens is Greece's national academy and the highest research establishment in the country.

Compulsory education in Greece comprises primary schools (∆ηµοτικό Σχολείο, Dimotikó Scholeio) and gymnasium (Γυµνάσιο). Nursery schools (Παιδικός σταθµός, Paidikós Stathmós) are popular but not compulsory. Kindergartens (Νηπιαγωγείο, Nipiagogeío) are now compulsory for any child above 4 years of age. Children start primary school aged 6 and remain there for six years. Attendance at gymnasia starts at age 12 and last for three years.

Greece's post-compulsory secondary education consists of two school types: unified upper secondary schools (Ενιαίο Λύκειο, Eniaia Lykeia) and technical–vocational educational schools (Τεχνικά και Επαγγελµατικά Εκπαιδευτήρια, "TEE"). Post-compulsory secondary education also includes vocational training institutes (Ινστιτούτα Επαγγελµατικής Κατάρτισης, "IEK") which provide a formal but unclassified level of education. As they can accept both Gymnasio (lower secondary school) and Lykeio (upper secondary school) graduates, these institutes are not classified as offering a particular level of education.

Public higher education is divided into universities, "Highest Educational Institutions" (Ανώτατα Εκπαιδευτικά Ιδρύµατα, Anótata Ekpaideytiká Idrýmata, "ΑΕΙ") and "Highest Technological Educational Institutions" (Ανώτατα Τεχνολογικά Εκπαιδευτικά Ιδρύµατα, Anótata Technological Ekpaideytiká Idrýmata, "ATEI"). Students are admitted to these Institutes according to their performance at national level examinations taking place after completion of the third grade of Lykeio. Additionally, students over twenty-two years old may be admitted to the Hellenic Open University through a form of lottery. The Capodistrian university of Athens is the oldest university in the eastern Mediterranean.

The Greek education system also provides special kindergartens, primary and secondary schools for people with special needs or difficulties in learning. Specialist gymnasia and high schools offering musical, theological and physical education also exist.

Population

10,760,136 (July 2011 est.)

Median age

Total: 42.5 years Male: 414years Female: 43.6 years (2011 est.)

Population growth rate

0.083% (2011 est.)

Birth rate

9.21 births/1,000 population (2011 est.)

Death rate

10.7 deaths/1,000 population (July 2011 est.)

Net migration rate

2.32 migrant(s)/1,000 population (2011 est.)

Urbanization

Urban population: 61% of total population (2010) rate of urbanization: 0.6% annual rate of change (2010-15 est.)

Total fertility rate

1.38 children born/woman (2011 est.)

HIV/AIDS - adult prevalence rate

0.1% (2009 est.)

HIV/AIDS - people living with HIV/AIDS

8,800 (2009 est.)

HIV/AIDS - deaths

Fewer than 500 (2009 est.)

Ethnic groups

Population: Greek 93%, other (foreign citizens) 7% (2001 census)

Religions

Greek Orthodox (official) 98%, Muslim 1.3%, other 0.7%

Languages

Greek (official) 99%, other (includes English and French) 1%

Education expenditures

4% of GDP (2010)

Maternal mortality rate

2 deaths/100,000 live births (2010)

Health expenditures

7.4% of GDP (2010)

Physicians density

6.043 physicians/1,000 population (2010)

Hospital bed density

4.77 beds/1,000 population (2010)

Obesity - adult prevalence rate

22.5% (2010)

1.2 Economic Overview of The Country

Economy - overview

Austerity measures reduced the deficit to 10.5% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% in 2010. Eroding public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, and has led the country into a financial crisis. Under intense pressure by the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming the health care and pension systems, and improving competitiveness through structural reforms to the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition from the country's powerful labor unions and the general public. Greek labor unions are striking over new austerity measures, but the strikes so far have had a limited impact on the government's will to adopt reforms. An uptick in widespread unrest, however, could challenge the government's ability to implement reforms and meet budget targets, and could also lead to rioting or violence.

In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May, the International Monetary Fund and Eurozone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to boost revenues and cut spending to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. Greece's lenders are calling on Athens to step up efforts in 2011 to increase tax collection, shore up public enterprises, and rein in health spending, and are planning to give Greece more time to repay its

EU-IMF loan. Greece responded by introducing major structural reforms, but investors still question whether Greece can sustain fiscal efforts in the face of a bleak economic outlook and public discontent.

Economy

The main building of the Bank of Greece in Athens.

The Greek economy (that is gross domestic product, GDP) expanded at an average annual rate of 4% from 2004–2007 and 2% during 2008 (at constant prices of 2000), one of the highest rates in the Eurozone. However, in 2009 GDP decreased by −1.9%. In 2010, a decrease of GDP by −2.5% to −4% is estimated, due to the current economic crisis.

The tourism industry is a major source of foreign exchange earnings and revenue accounting for 15% of Greece's total GDP and employing, directly or indirectly, 16.5% of the total workforce.

The Greek labour force totals 4.9 million, and it is the second-most-industrious among OECD countries, after South Korea. The Groningen Growth & Development Centre published a poll revealing that between 1995 and 2005, Greece ranked third in the "working hours per year ranking" among European nations; Greeks worked an average of 1,811 hours per year. In 2007, the average worker produced around 20 dollars per hour, similar to Spain and slightly more than half of average U.S. worker's hourly output. Immigrants make up nearly one-fifth of the work force, occupied in mainly agricultural and construction work.

Greece's purchasing power-adjusted GDP per capita is the world's 25th highest. According to the International Monetary Fund (IMF), it had an estimated average per capita income of $29,882 for the year 2009, a figure slightly higher than that of Italy and Spain. According to Eurostat data, Greek PPS GDP per capita stood at 95 per cent of the EU average in 2009. According to a survey by The Economist , the cost of living in Athens is close to 90% of the costs in New York City; in rural regions it is lower.

Greece introduced the Euro in 2002.

In Greece, the euro was introduced in 2002. As a preparation for this date, the minting of the new euro coins started as early as 2001. However, all Greek euro coins introduced in 2002 have this year on it, unlike some other countries of the Eurozone where mint year is minted in the coin. Eight different designs, one per face value, were selected for the Greek coins. In 2007, in order to adopt the new common map like the rest of the Eurozone countries, Gr eece changed the common side of their coins. Before adopting the euro in 2002, Greece had maintained use of the Greek drachma from 1832.

In 2009, Greece had the EU's secon d-lowest Index of Economic Freedom (after Polan d), ranking 81st in the world. The country suffers from high levels of political and economic corruption and low global competitiveness relative to its EU partners. The Greek economy faces significant problems, including rising unemployment levels and an inefficient government bureaucra cy.

Greece's economic growth between 1961 and 2010, compared with Eurozone average from 1996.

Although remaining above the euro area average, economic growth turned negative in 2009 for the first time since 1993. An indication of the trend of over-lending in recent years is the fact that the ratio of loans to savings exceeded 100% during the first half of the year.

Recent Economic Data Of 2010–2011

(Graph: 2010-2011 Economic Crises)

History of the Greek debt between 1999 and 2010.

By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced its most-severe crisis since the restoration of democracy in 1974 as the Greek government revised its deficit from an estimated 6% to 12.7% of gross domestic product (GDP).

In early 2010, it was revealed that successive Greek governments had been found to have consistently and deliberately misreported the country's official economic statistics to keep within the monetary union guidelines. This had enabled Greek governments to spend beyond their means, while hiding the actual deficit from the EU overseers. In May 2010, the Greek government deficit was again revi sed and estimated to be 13.6% which was one of the highest in the world relative to GDP and publ ic debt was forecast, according to some estimates, to hit 120% of GDP during 2010, one of the highest rates in the world.

As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the IMF, agreed to a rescue package which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion. In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit un der control. Their implementation will be monitored and evaluated by the European Commissio n, the European Central Bank and the IMF.

On 15 November 2010 the EU's statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission in Athens, and put Greece's 2009 government deficit at 15.4% of GDP and public debt at 126.8% of GDP

making it the biggest deficit (as a percentage of GDP) amongst the EU member nations (although some have speculated that Ireland's in 2010 may prove to be worse).

The financial crisis – particularly the austerity package put forth by the EU and the IMF – has been met with anger by the Greek public, leading to riots and social unrest.

Economy of Greece

[1] 32nd (nominal, 2010) Rank [2] 37th (PPP, 2010)

Currency 1 euro (ευρώ) = 100 cents (λεπτά)

Fiscal year Calendar year Trade organisations EU, WTO, OECD, BSEC

Statistics

$312.042 billion (nominal, 2011 est.) [3] [3] GDP $309.231 billion (PPP, 2011 est.)

−5.0% (Q3 2011 compared with Q3 2010, non-seasonally- GDP growth [4] adjusted) $27,875 (nominal, 2011 est.) [3] GDP per capita $27,624 (PPP, 2011 est.) [3] GDP by sector agriculture: 3.3%; industry: 17.9%; services: 78.8% (2010 est.) [5] Inflation (CPI) 2.9% (November 2011)

Population 20% live below the annual €6,000 threshold (2008) [6] below poverty line Gini index 33 (2005) Labour force 5.013 million (2010 est.) Labour force agriculture: 12.4%; industry: 22.4%; services: 65.1% (2005 est.) by occupation [7] Unemployment 17.7% (Q3 2011) $2,238 monthly; [8] Average gross salary $31,345 yearly (2006) [8] $1,693 monthly; [8] Average net salary $23,704 yearly (2006) [8]

tourism; shipping; industrial products, food and tobacco Main industries processing, textiles; chemicals, metal products; mining, petroleum [9] Ease of Doing Business Rank 100th (2012) External [10] Exports €16.3751 billion (2010 est.)

food and beverages, manufactured goods, petroleum products, Export goods chemicals, textiles

Germany 11.11%, Italy 11.05%, Cyprus 7.28%, Bulgaria 6.74%, Main export partners US 4.95%, UK 4.4%, Turkey 4.23% (2009) [10] Imports €48.1074 billion (2010 est.) Import goods machinery, transport equipment, fuels, chemicals Germany 13.73%, Italy 12.71%, China 7.08%, France 6.1%, Main import partners Netherlands 6.02%, South Korea 5.68%, Belgium 4.34%, Spain 4.08% (2009) Gross external debt $532.9 billion (30 June 2010) Public finances [11] Public debt €329.351 billion (144.9% of GDP; 2010 est.) Budget deficit €24.125 billion (10.6% of GDP; 2010 est.)[11] Revenues €89.750 billion (39.5% of GDP; 2010 est.)[11] [11] Expenses €114.213 billion (50.2% of GDP; 2010 est.) [12] • Fitch: CCC

Outlook: – [13] • Moody's: Credit rating Ca Outlook: Developing

1.3 Overview Different Economic Sectors of Greece History

The evolution of the Greek economy during the 19th century (a period that transformed a large part of the world due to the Industrial revolution) has been little researched. Recent research examines the gradual development of industry and further development of shipping in a predominantly agricultural economy, calculating an average rate of per capita GDP growth between 1833 and 1911 that was only slightly lower than that of the other Western European nations. Nonetheless, Greece faced economic hardships and defaulted on its loans in 1826, 1843, 1860 and 1893.

Other studies support the above view on the general trends in the economy, providing comparative measures of standard of living. The per capita income (in purchasing power terms) of Greece was 65% that of France in 1850, 56% in 1890, 62% in 1938, 75% in 1980, 90% in 2007, 96.4% in 2008, 97.9% in 2009 and larger than countries such as South Korea, Italy, and Israel. The country's post-World War II development has largely been connected with the so- called Greek economic miracle.

Greece enjoys a high standard of living and "very high" Human Development Index, ranking 29th in the world in 2011, and 22nd on The Economist's 2005 worldwide quality-of-life index. According to Eurostat data, GDP per inhabitant in purchasing power standards (PPS) stood at 94 per cent of the EU average in 2008.

Greece's main industries are tourism, shipping, industrial products, food and tobacco processing, textiles, chemicals, metal products, mining and petroleum. Greece's GDP growth has also, as an average, since the early 1990s been higher than the EU average. However, the Greek economy also faces significant problems, including rapidly rising unemployment levels, an inefficient public sector bureaucracy, tax evasion, corruption and low global competitiveness.

Greece has the EU's second worst Corruption Perceptions Index after Bulgaria, ranking 80th in the world, and lowest Index of Economic Freedom and Global Competitiveness Index, ranking 88th and 90th respectively.

By the end of 2009, the Greek economy (based on data revised on 15 November 2010 in part due to reclassification of expenses) faced the highest budget deficit and government debt to GDP ratios in the EU. The 2009 budget deficit stood at 15.4% of GDP. This, and rising debt levels (127% of GDP in 2009) led to rising borrowing costs, resulting in a severe economic crisis.

Greece was accused of trying to cover up the extent of its massive budget deficit in the wake of the global financial crisis. This resulted from the massive revision of the 2009 budget deficit forecast by the new Socialist government elected in October 2009, from "6–8%" (estimated by the previous government) to 12.7% (later revised to 15.4%).

As a result of the on-going economic crisis, industrial production in the country went down by 8% between March 2010 and March 2011, One of the sectors hardest hit has been the garment industry, a traditional mainstay of the economy. while the volume of building activity saw a

99 reduction of 73.1% between January 2010 and January 2011. Additionally, the turnover in retail sales saw a decline of 9% between February 2010 and February 2011.

Between 2008 and 2011 unemployment skyrocketed, from a generational low of 7.2% in the second and third quarters of 2008 to a high of 18.4% in August 2011, leaving more than 900,000 without a job. In the final quarter of 2010, youth unemployment reached 36.1%.

Currency

Between 1832 and 2002 the currency of Greece was the Drachma. Upon signing the Maastricht Treaty, Greece vowed to join the Eurozone, which occurred on 1 January 2002. At the time of the adoption of the Euro the exchange rate was ₯340.75 to €1.

Prior to the adoption of the Euro, the majority of Greek people had a positive view of the new currency (64%).[119] In February and June 2005 however this number fell considerably, to only 26% and 20% respectively.[119] Since 2010 the number has risen again, and a survey in [119] September 2011 showed that 63% of Greeks had a positive view of the Euro.

Primary sector

Agriculture and fishery

Olive trees in Thasos, Greece.

In 2010, Greece was the European Union's largest producer of cotton (183.8 thousand tons)and ranked second in the production of rice (229.5 thousand tons) and olives (147.5 thousand tons), third in the production of figs (11 thousand tons), tomatoes (1.4 million tons) and water melons (578.4 thousand tons) and fourth in the production of tobacco (22 thousand tons) Agriculture contributes 3.3% of the country's GDP and employs 12% of the country's labor force.

Greece is a major beneficiary of the Common Agricultural Policy of the European Union. As a result of the country's entry to the European Community, much of its agricultural infrastructure

100 has been upgraded and agricultural output increased. Between 2000 and 2007 organic farming in Greece increased by 885%, the highest change percentage in the EU.

Service sector

Maritime industry

Piraeus is the largest container port in Greece and one of the largest in the Mediterranean Sea.

Shipping has traditionally been a key sector in the Greek economy since ancient times. In 1813, the Greek merchant navy was made up of 615 ships. Its total tonnage was 153,580 tons and was manned with 37,526 crewmembers and 5,878 cannons. During the 1960s, the size of the Greek fleet nearly doubled, primarily through the investment undertaken by the shipping magnates Onassis and Niarchos. The basis of the modern Greek maritime industry was formed after World War II when Greek shipping businessmen were able to amass surplus ships sold to them by the United States Government through the Ship Sales Act of the 1940s

Currently Greece has the largest merchant navy in the world as a percentage of the world's total dwt, at 15.96% according to a United Nations Conference on Trade and Development 2010 report Although a drop from the capacity of 18.2% of the world's total that the country's merchant fleet controlled in 2006 the Greek Merchant Navy is still the largest] but followed [ closely by that of Japan, at 15.73%

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Telecommunications

OTE headquarters in Athens.

Between 1949 and the 1980s, telephone communications in Greece were a state monopoly by the Hellenic Telecommunications Organization, better known by its acronym, OTE. Despite the liberalization of telephone communications in the country in the 1980s, OTE still dominates the Greek market in its field and has emerged as one of the largest telecommunications companies in South-eastern Europe. Since 2011, the majority share holder at OTE is Deutsche Telekom, with 40% while the Greek state has 10% of the company's shares OTE owns a total of 13 subsidiaries in four countries across the Balkans, including Greece's top mobile telecommunications provider, Cosmote.

Tourism

Tourism in the modern sense has only started to flourish in Greece in the years post-1950, although in ancient times, following the annexation of Greece by the Roman Empire, a great deal of wealthy Romans visited the country's centers of learning to further educate themselves. Since the 1960s and 1970s, the tourism sector saw a boost, which was further renewed when Greece hosted the 2004 Summer Olympics.

Greece attracts more than 16 million tourists each year, thus contributing between 18.2% to the nation's GDP in 2008 according to an OECD report The same survey showed that the average tourist expenditure while in Greece was $1,073, ranking Greece 10th in the world. The number of jobs directly or indirectly related to the tourism sector were 840,000 in 2008 and represented

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19% of the country's total labor force In 2009, Greece welcomed over 19.3 million tourists,[ a [ major increase from the 17.7 million tourists the country welcomed in 2008.

The ministry responsible for tourism is the Ministry of Culture and Tourism, while Greece also owns the Greek National Tourism Organization which aims in promoting tourism in Greece.

Taxation and tax evasion

Revenues of Greece between 1999 and 2010 as a percentage of GDP, compared to the EU average.

The Greek tax system is a tiered one, as Greece employs the system of progressive taxation. Greek law recognizes six categories of taxable income: immovable property, movable property (investment), income from agriculture, business, employment, and income from professional activities. Greece's personal income tax rate currently ranges from 0% for incomes below €12,000 and 45% for incomes over €100,000. Under the new 2010 tax reform, tax exemptions have been abolished.

Greece's corporate tax has dropped from 40% in 2000 to 20% in 2010. For 2011 only, corporate tax will be at 24%. Value added tax (VAT) has gone up in 2010 compared to 2009: 23% as opposed to 19%.

The lowest VAT possible is 6.5% (previously 4.5%) for newspapers, periodicals and cultural event tickets, while a tax rate of 13% (from 9%) applies to certain service sector professions. Additionally, both employers and employees have to pay social contribution taxes, which apply at a rate of 16% for white collar jobs and 19.5% for blue collar jobs, and are used for social insurance.

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Overview of Business and Trade at International Level

Economic Overview of business at international level

Although the crisis hit Greece later than its European neighbors, it nevertheless plunged the country into a deep recession. Greece had to be saved from bankruptcy by the International Monetary Fund (IMF) and the European Commission (EC), however the budgetary restriction measures adopted to restore public finances have taken their toll on growth. The latter was estimated at -4% in 2010. The country recently announced that its deficit would be "very likely " higher than its forecast of 9.5% of GDP. This will have a worsening impact on the debt, currently estimated at 142.5% of GDP. For the foreign observers the Greek economy should not recover before 2012 and only if the country fully implements the restructuring program of its economy.

The government is making an effort to pursue the measures planned in the structural reforms program to which it is bound by the loans it has received from the IMF and the EC. The priority is to reduce the fiscal deficit by increasing taxation, privatizing public companies and reforming. The country is facing growing unemployment (which is higher than 10%) and a proliferation of social protest movements against the austerity measures.

FDI in Figures

The high level of corruption and lack of transparency are the two main obstacles to the growth of FDIs.

FDI Government Measures

The Legislative Decree number 2687 of 1953 as well as Article 112 of the Constitution, give approved foreign "productive investments" property rights, preferential tax treatment and work permits for foreign managerial and technical staff.

Country Strong Points

Greece's main strong points are: - Its membership to the European Monetary Union (EMU). Today, Greece has become the economic hub of Southeast Europe; - Its competitiveness within the active population in terms of education, manpower costs and work productivity; - Its geographical location, which makes it a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions; and

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- Its infrastructures, which are improving significantly, mainly due to the 3rd European Union community support framework.

Country Weak Points

Foreign Trade Overview

Greece's main trading partners are the European Union (especially Italy and Germany) and the United States.

International Trade in Greece

Although the crisis hit Greece later than its European neighbors, it nevertheless plunged the country into a deep recession. Greece had to be saved from bankrupcy by the International Monetary Fund (IMF) and the European Commission (EC).

Main Industry Sectors

Traditionally, the Greek economy is based on agriculture. The sector represents 3% of the GDP and employs around 12% of the active population. The main crops are tobacco (largest European producer) and cotton (fifth largest exporter in the world). Greece also has a significant ovine livestock. A large fishing industry is found in coastal regions and the merchant navy represents

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10%oftheGDP.

economic diversification led by the country, industry has replaced agriculture as a second source of income, behind services, and accounts for around 20% of the GDP. The main sectors are: electronic goos, transport materials, clothing and construction. More specifically, Greece is the largest European shipowner.

Growth in the tertiary sector is booming. It accounts for nearly three-fourths of the GDP. Tourism provides a vital source of income and alone contributes 11% of the GDP. Marine fishing represents 10% of the GDP.

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1.5 Present Trade Relations and Business Volume of Different Products With INDIA/ GUJARAT

Overview of Historical Relation

India's relations with the world have evolved since the British Raj (1857–1947), when the British Empire monopolized external and defense relations. When India gained independence in 1947, few Indians had experience in making or conducting foreign policy. However, the country's oldest political party, the Indian National Congress, had established a small foreign department in 1925 to make overseas contacts and to publicize its freedom struggle. From the late 1920s on, Jawaharlal Nehru, who had a long-standing interest in world affairs among independence leaders, formulated the Congress stance on international issues. As a member of the interim government in 1946, Nehru articulated India's approach to the world.

India's international influence varied over the years after independence. Indian prestige and moral authority were high in the 1950s and facilitated the acquisition of developmental assistance from both East and West. Although the prestige stemmed from India's nonaligned stance, the nation was unable to prevent Cold War politics from becoming intertwined with interstate relations in South Asia.

Sardar Swaran Singh was India's foreign minister from 1964 to 1966. In the 1960s and 1970s, India's international position among developed and developing countries faded in the course of wars with China and Pakistan, disputes with other countries in South Asia, and India's attempt to balance Pakistan's support from the United States and China by signing the Indo-Soviet Treaty of Friendship and Cooperation in August 1971.

Since the dissolution of the Soviet Union, India has forged a closer partnership with Western powers. Shown here are Prime Minister Manmohan Singh with US President Barack Obama in 2009.

In the 1990s, India's economic problems and the demise of the bipolar world political system forced India to reassess its foreign policy and adjust its foreign relations. Previous policies proved inadequate to cope with the serious domestic and international problems facing India. The end of the Cold War gutted the core meaning of nonalignment and left Indian foreign policy without significant direction. The hard, pragmatic considerations of the early 1990s were still viewed within the nonaligned framework of the past, but the disintegration of the Soviet Union removed much of India's international leverage, for which relations with Russia and the other post-Soviet states could not compensate.

In the mid-1990s, India attracted the world attention towards the alleged Pakistan-backed terrorism in Kashmir. The Kargil War resulted in a major diplomatic victory for India. The United States and European Union recognized the fact that Pakistani military had illegally infiltrated into Indian territory and pressurized Pakistan to withdraw from Kargil. Several anti-

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India militant groups based in Pakistan were labeled as terrorist groups by the United States and European Union.

India has often represented the interests of developing countries at various international platforms. Shown here are Prime Minister Manmohan Singh with Dmitry Medvedev, Hu Jintao and Luiz Inácio Lula da Silva during BRIC summit in June, 2009.

In 1998, India tested nuclear weapons for the second time (see Pokhran-II) which resulted in several U.S., Japanese and European sanctions on India. India's then defense minister, George Fernandes, said that India's nuclear program was necessary as it provided a deterrence to potential Chinese nuclear threat. Most of the sanctions imposed on India were removed by 2001.

India has been pushing for reforms in the UN and WTO with mixed results. India's candidature for a permanent seat at the UN Security Council is currently backed by several countries including France, Russia,[52] the United Kingdom, Germany, Japan, Brazil, Australiaand UAE. In 2004, the United States signed a nuclear co-operation agreement with India even though the latter is not a part of the Nuclear Non-Proliferation Treaty. The US argued that India's strong nuclear non-proliferation record made it an exception, however this has not persuaded other Nuclear Suppliers Group members to sign similar deals with India. During a state visit to India in November 2010, US president Barack Obama announced US support for India's bid for permanent membership to UN Security Council as well as India's entry to Nuclear Suppliers Group, Wassenaar Arrangement, Australia Group and Missile Technology Control Regime.

Historical relations

The first contact between both civilization dates back from Alexander the Great’s and King Porus's Battle of the Hydaspes River . In modern time, diplomatic relations between Greece and India were established in May 1950. The new Greek Embassy building in New Delhi was inaugurated on February 6, 2001.

List of recent bilateral visites

• In December 2000, Greek Foreign Minister George Papandreou visited India. • In February 2001, Prime Minister of Greece Kostas Simitis visited India. • In September 2006, Speaker of the Lok Sabha Somnath Chatterjee visited Greece. • In April 2007, President of India Avul Pakir Jainulabdeen Abdul Kalam made an unofficial visit to Athens.

List of bilateral treaties

• Agreement on Cultural Exchange, 1961 • Agreement on Avoidance of Double Taxation, 1967 • Agreement for Joint Commission for Economic, Scientific and Technical Cooperation, 1983.

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• Joint Business Council of FICCI and ASSOCHAM and the Athens Chamber of Commerce, 1996. • Agreement of Cooperation between Hellenic Foreign Trade Board and India *Trade Promotion Organisation, 1996. • Agreement on Tourism Cooperation, 1998. • MOU on Defence Cooperation, 1998. • MOU for Cooperation in Agriculture, 2001. • Agreement on Promotion and Reciprocal Protection of Investments (BIPA), 2007. • Agreement on Cooperation in Science & Technology, 2007. • MOU between CII and Federation of Greek Industries, 2007. • MOU for Cooperation between Institute of Science, Bangalore and *National Technical University of Athens (NTUA), 2007

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2.1 Introduction of Greece automobile Sector

Greece Automobile Industry

Since I was a kid I've been concerned with the Automobile industry of Greece, unfortunately back in those days my only sources of information were the people, actually pessimistic stubborn people who used to tell me that Greece wasn't a car manufacturer country, and despite I grew watching buses and even cars sometimes with some Greek brand names on them (like ELBO or Sarakakis among others) all the answers I got from the adults were, no Grigori, we don't manufacture cars in Greece, those names are importers even answers like it's all fake buddy, Greece doesn't have any industry...... our only incomes are from tourism....well the feedback to all those answers is BS!!!! as in bull. Though my disappointment vanished at once 10 years ago being a pubescent when an automobiles magazine reached my hands, it was dedicated entirely to the ELBO vehicles manufacturing industry located in Thessaloniki, where most of the buses we have nowadays in Athens or Thessaloniki (as well as in many Balkan countries, parts of Italy eastern Europe and even distant markets as Singapore Latin America and the middle east with older models) are built in a 100% not just assembled but made in Greece by Greek companies. After that and so far with the help of Internet my research on the issue continued and I can tell you guys and everyone, Greece indeed manufactures automobile vehicles.

Though our share in the international automobiles market is not that big and even in Greece the competition with foreign brands is hard some of our brands are still alive and some of them holding big promises. Though currently the main productions are focused on buses, jeeps, trucks or rural vehicles there are some plans to start making again cars, no foreign designed cars, but greek ones, as in the past. There is even a great sport car designed and made in 1992 that you won't believe your eyes, when some lines below, you'll be watching its picture.

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Finally before finishing this, maybe for some people, boring introduction (that I needed to express, believe me now I feel better) I have to point out that this large guide is divided into brands (and there are many of them by the way) and beginning from its first days, since Greece believe it or not has been involved in this product industry from 1918!!!! Even before some of the nowadays leading countries. Well enough for now, let's get down to brass tacks. The funny part, enjoy it.

Theologou

Theologou (full name appearing on vehicle badges was "N. Theologou") was one of the first vehicle manufaturers in Greece. It was created by Nikos Theologou, a Greek mechanic who had previously lived and worked in the US, and founded this company after he returned to Athens, Greece. Between 1918 and 1920 he designed and constructed a light passenger car with a Pierce 750 cc motorcycle engine (only one built). His company, nonetheless, produced a variety of bus and truck bodies, mostly on Ford chassis in the 1920s.

Biamax

BIAMAX has perhaps been the best known Greek vehicle manufacturer, being, at the same time one of the biggest Greek companies at its time with three factories (in Athens, where its headquarters, Thessaloniki and Larissa, employing more than 2000) and several other auxilliary facilities throughout the country. Except for a large Greek company, BIAMAX became a leading industry in that country, in areas including Quality Assurance, technical training, process documentation and Research&Development.

Sfakianakis

Sfakianakis group of companies is a Greek conglomerate with a wide range of activities

111 employing (in 2005) over 1600 in three countries; its origins were based on vehicle manufacture. It was founded in 1961 succeeding earlier trading companies founded by the same family. Initially building bodies on imported chassis, it soon developed its own chassis family. The company's SS500 chassis ('SS' standing for 'Stratis Sfakianakis') was subsequently further developed, and a great variety of bus types was designed and built over it in the following years, with limited exports to Eastern Europe and the Middle East. Other industrial activities included construction of truck bodies and Japanese Hino chassis assembly. The company was renamed Sfakianakis S.A. in 1993 and among the last types it designed and produced were the SS400 and SS380 minibuses and a new series of SS500 inter-city and coach variants.

Saracakis

Saracakis Brothers group of companies is a major Greek Commercial and Industrial group, for two decades a traditional competitor to Biamax (between themselves the two companies virtually dominated the bus market in Greece). Two of the most talented Greek vehicle engineers who had worked for Biamax, A. Rizos and I. Dracoulis also worked for Saracakis, Dracoulis having designed the company's characteristic 'Σ' logo, recognizable anywhere in the country.

Saracakis survived the storm of the early 1980s (opening of the market to used imports) that almost wiped out the Greek Commercial Vehicle industry, but its import and trading sectors became predominant. Construction of complete vehicles has stopped, but production of bodies continues to date, on a limited scale.

Namco

Namco (National Motor Company of Greece) is a Greek vehicle manufacturer, a creation of the Kontogouris Brothers who have been in the automotive industry business since the 1950s.

The first efforts of the Kontogouris Brothers involved building light trucks called 'Hellas'

112 in Germany. In 1957 Petros Kontogouris acquired rights to a production technology of a multi-purpose vehicle developed by Dr. Wilfried Fahr, who founded an engineering company in Switzerland. In 1961 Kontogouris created their first company called FARCO in Thessaloniki, Greece to produce the vehicle, called FARMOBIL. Ironically, this smart vehicle was not certified for the Greek market and all production was exported to several countries around the world. In 1963 the company was acquired by Chrysler who renamed it Chrysler Hellas S.A. In 1967 production in Greece was stopped by the U.S. company, and was transferred to other countries. Meanwhile, in 1961 ambitious plans were made by the Kontogouris Brothers for a new company (to be called Namco) with a big factory in Patras, Greece to produce under licence a German-designed (Neckar) three-wheeler truck and other vehicles, but were not materialized.

Namco would resurface in 1972, when a light passenger-utility vehicle called the 'Pony' was introduced in the Thessaloniki Trade Fair. The car, of rather basic technology, had been designed by Citroen on an 2CV platform as part of 'basic world car' project. Indeed, cars on the same basis were produced around the world from Iran to Portugal, but the Pony became by far the most successful. In 1974 Namco started business officially and production started in a new plant in Thessaloniki. The Pony, helped by a law giving tax breaks for light utility-passenger vehicles became an instant success, being the cheapest car in the market and, at the same time, an incredibly robust and practical automobile (about half a dozen Greek companies would follow Namco's example, with similar contraptions, none of which, though, came close to Pony's success). A large number of versions and facelifts followed, keeping the car up to standards. Almost 30,000 Pony's were produced, while exports to many countries around the world were made through Citroen network, as the car also bear the Citroen logo.

Namco Milicar 6x6 (1978)In 1978 Namco decided to move into other fields, introducing a series of very advanced 4x4 and 6x6 multi-purpose trucks featuring a novel Swiss- designed suspension system. A complete lineup was made for many uses, consisting of the 'Agricar', 'Milicar', 'Pyrcar' and 'Multi-trac' vehicles. It is somewhat of a mystery why

113 those advanced vehicles had limited success, only small numbers having been ordered by Greek state authorities. Similarly Namco designed a number of military vehicles including the 'Tiger' and 'Aquilles' armored vehicles and 4x4's, none of which reached even the stage of complete prototype. It has been argued that it was simply the wrong time, since the Greek state favored a state company (ELBO) for its supplies in that period.

Namco Pony Super (1990 model)The first generation Pony was produced until 1983, after the law concerning taxation of similar vehicles had been changed. Plans to manufacture other cars under licence were not realized and for a moment it seemed that Namco would once more be out of business. But the company would resurface again with a completely new model, Pony Super, introduced in 1985. The second generation Pony had no connection with Citroen technology and was a much more modern car with Ford engines, coming in a large number of versions (950cc 45hp, 1100cc 55hp, 1300cc 69hp and 1600cc 54 hp Diesel, in two- and four-door arrangements). It was essentially developed by Namco, since Inthelco, a German company also involved in its development was majority-owned by Namco at the time. An ambitious plan was made to export the car to the U.S. with a 1900cc engine via Inthelco as the 'Desta' at a rate of 20.000 per year. However, the costs and prospects proved to be grossly miscalculated and the plan was abandoned. No matter how improved the new Pony was, it was still a far cry from the needs of the contemporary Greek market made of progressively more affluent and demanding consumers. Only a few hundred Pony Super's were built until 1992.

Once more, when it seemed that Namco would vanish, the company created one more chance for rebirth, as its founders were stubbornly attached to the car-making business. So, although they also diversified into imports and trade of vehicles keeping Namco alive, they transformed the company into a technology exporter, offering design and construction of vehicle producing miniplants (as an antidote, they argued, to the giant conglomerates created by globalism) together with the Pony and their 4x4 truck

114 technology. In 1994, the first Pony Super's produced under licence in Bulgaria came out of the assembly plant in that country.

Namco is still alive today, indeed representing the stubbornness and vision of its creators. It is characteristic that production of the Pony Super and the trucks never "officially" ended, as the company maintains a factory ready to resume production. Actually, a "third-generation" Pony (in reality a Pony Super with minor improvements) was introduced in 2003. One who knows Namco's history, can only wait until the next dynamic resurfacing of the company.

Neorion

Neorion is one of the most historic Greek engineering companies, located in Ermoupolis, on the Greek island of Syros. Today, it is one of the few remaining major industrial corporations in that picturesque and nostalgic island town that used to be the industrial and commercial heart of Greece, before eclipsed by Piraeus in the late 19th century.

Neorion roots go back to a traditional shipyard on that island, known for the construction of ships and boats for use during the Greek revolution of the 1820s, as well as design and building of “modern battleships” for the new Greek kingdom in the decades that followed. The company that survives to date was legally founded in 1861 to technically support the “Greek Steamship lines Company”, initially employing, in addition to Greek technical staff, several mechanics from W. Europe. In the 1860s, in addition to ship building it already produced steam engines, boilers, pumps, heavy cannons, as well as its first steamship. A heavy steam engine of its own design and construction received attention when exhibited in an International Exhibition in Paris in 1878, while since 1892 the company produced all-metal steamships. In 1898 the name ‘Neorion’ (an ancient Greek word indicating a port facility for ship repair and construction) was adopted. Already during the second half of the 19th century it was the second most important

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Greek engineering company after the famous Basileiades machine and steam engine manufacturer in Piraeus. Other products of Neorion included a variety of machinery (some of it exported), engine parts and other specialized metal constructions for the Greek industry. ELBO

ELBO (standing for “Elliniki Biomihania Ohimaton”, or Hellenic Vehicle Industry), is a Greek vehicle manufacturer. This company is one that managed to survive the evolutions that basically wiped out the Greek motor industry in the 1980s and 1990s, as it was the only state-owned company in its field.

Attica(automobiles)

Attica was the first brand name of vehicles produced by Bioplastic S.A., a company created in Moschato, Athens by Georgios Dimitriadis, an important figure in Greek automotive history. Attica started producing a light three-wheeler passenger car (model 200) in 1963.

The model became very popular in Greece and is fondly remembered to this date. Another Greek company, Alta, soon claimed some market share in the same category, introducing a similar vehicle in 1968.

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2.2 Introduction of NAMCO in Greece

NAMCO International AG, P. O. Box 482, Thermi 57001, Thessaloniki, Greece tel. +30231/0461513, fax. +30231/0461140, http://www.namco- euro.com

The first efforts of the Kontogouris Brothers involved building light trucks called Hellas in Germany. In 1957 Petros Kontogouris acquired rights to a production technology of a multi-purpose vehicle developed by Dr. Wilfried Fahr, who founded an engineering company in Switzerland. In 1961 Kontogouris created their first company (FARCO) in Thessaloniki, Greece to produce the vehicle, called FARMOBIL, with BMW 700 flat-2 engine. Ironically, this smart vehicle was not certified for the Greek market and all production was exported, to several countries around the world. In 1963 the company was acquired by Chrysler who renamed it Chrysler Hellas S.A. In 1967 production in Greece was stopped by the U.S. Company, and was transferred to other countries. Meanwhile, in 1961 ambitious plans were made by the Kontogouris Brothers for a new company (to be called NAMCO) with a new factory in Patras, Greece to produce under licence a German-designed (Neckar) three-wheeler truck and other vehicles, but were not materialized.

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NAMCO would resurface in 1972, when a light passenger-utility vehicle called the Pony was introduced in the Thessaloniki Trade Fair, after an agreement was signed with Citroën. The car, whose original design (Baby-Brousse) was created by a team of French engineers in the Ivory Coast on a 2CV platform, had been adopted by Citroën itself as part of "basic world car" project that eventually led to the Citroën FAF (the Pony and other similar cars preceded the FAF and were not derived from it, as is often erroneously reported). Indeed, cars on the same basis were produced around the world from Vietnam to Portugal, but the Pony became by far the most successful. In 1974 NAMCO started business officially and production started in a new plant in Thessaloniki. In 1978 NAMCO decided to move into other fields, introducing a series of very advanced 4x4 and 6x6 (3 to 6.5 tonne) multi-purpose trucks featuring a novel Swiss- designed, patented axle/suspension system. A complete lineup was made for many uses, consisting of the Agricar, Milicar, Pyrcar and Multi-trac vehicles. It is somewhat of a mystery why those advanced vehicles had limited success, with only small numbers ordered by Greek state authorities.

Similarly, NAMCO designed a number of military vehicles including the Panther (of which only 2 were produced), as well as the Tiger and Aquilles armored vehicles and 4x4's, some of which did not even reach the stage of complete prototype. It has been argued that it was simply the wrong time, since the Greek state favored a state company (ELBO) for its supplies in that period.

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NAMCO PONY

Program: Pony (cabrio, station wagon, pick-up).

Production volume in 2003 - 6,825 vehicles. The company began in 1973 production of recreational Pony vehicles, designed on the basis of the Citroën 2CV. The new model with an original chas-sis and Ford engines was introduced in 1982. The vehicle is currently offered in various body versions and with the following Ford power plants: 1.0- liter 45 hp, 1.1-liter 50 hp, 1.3-liter 69 hp or 1.6-liter 54 hp diese.

Namco product profile

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3.1 Greece Present Position and Trend of Business import & Export

Greece trade imbalance has been managed with loans from the EU, remittances from expatriates, shipping and tourism. Tourism has, in fact, helped the nation collect foreign exchange and contributes to the GDP on an increasing trend. Currently Greece has traditionally exporter of food, beverages, manufacturing items, transportation vehicles and textiles most of the exported partner are located in EU with the only notable external trade partner being USAS 2009. The economy suffered due to dip in export as the figure dropped from $ 29.14 billion (2008) to $18.64 billion (2009). The country in terms of export volume ranked 65 th in the world the Greece mainly export and import regularly for Germany, Italy, R ussia, Netherlands, France, India and Chin a. In 2009, the imports volume was $61.47 billion. At the same time previous year, the volume had been $93.91 billion. In terms of imports volume, the country ranked 37th in the world. The main imported commodities are machinery, transport equipment, fuels and chemicals. Not only was fuel oil the number one U.S. export to Greece last year, American fuel oil shipments of fuel oil to Hellas (informal nickname for Greece) was up by an amount 100 times greater than in 2007.grees exported in military aircraft parts $ 20.5 million up 22.2% Last year, Greek exports to India to $998.9 million. Over that 120 same period, Greece bought $1.9 billion worth of India imports – a milder decrease of 8.5%.

CHIEF EXPORTS:

Manufactured goods, foodstuffs and beverages, fuels.

CHIEF IMPORTS:

Manufactured goods, foodstuffs, fuels, chemicals.

GROSS DOMESTIC PRODUCT:

$149.2 billion (1999 EST.)

BALANCE OF TRADE:

Exports: US$12.4 billion (1998 EST.). Imports: US$27.7 billion (1998 est.).

• Germany 12.1%

• Italy 11.7%

• Russia 7.4%

• India 3.2%

• China 5.6%

• France 5.1%

• Netherlands 4.7%

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India’s Exports to India’s Imports Year Total Trade Greece from Greece 2006-07 671.98 209.49 881.47 2007-08 530.95 126.81 657.44 2008-09 878.43 69.49 947.92 2009-2010* 452.80 154.13 606.93

3.1.1 Comparative Trade and Advantages

During 2008, Greece exported $22.4 million worth of toiletries and cosmetics to the U.S. while importing only $12.3 million worth of American toiletries and cosmetics.These Greek-American trade statistics show that Greece has comparative advantages over the U.S. in the toiletries and cosmetics trade between the two nations.On the other hand, America exported $192.3 million worth of civilian aircraft to Greece in 2008 contrasted with U.S. imports of Greek civilian aircraft engines and parts worth $1.3 million.That the U.S. exported almost 200 times the value of Greek civilian aircraft products clearly shows that America has a comparative advantage in exporting civilian aircraft to Greece.

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3.2 Present Position and Trend of Business (import / export) with India / Gujarat

Top 20 Export destinations in 2009-2010 and growth from previous year

2009-2010 (in USD 2009-2010 (in USD Percentage Rank Country Millions) Millions) Growth United States of 1 593.64 525.24 -11.52 America 2 Italy 332.35 359.68 8.22 3 Sri Lanka 249.14 216.11 -13.26 4 South Africa 224.93 188.57 -15.79 5 United Kingdom 165.57 246.32 48.77 United Arab 6 164.44 192.74 17.21 Emirates 7 Algeria 147.34 265.63 80.28 8 Bangladesh 137.26 164.86 20.11 9 Egypt 134.43 143.54 5.99 10 Germany 133.52 409.63 206.8 11 Colombia 118.88 120.71 1.54 12 Nepal 111.33 98.13 -11.86 13 Mexico 93.80 94.10 0.32 14 Turkey 83.53 73.82 -11.63 15 Spain 81.01 56.96 -29.69 16 France 76.77 134.21 74.83 17 Nigeria 66.01 148.74 125.03 18 Greece 65.75 127.63 94.1 19 Netherland 65.19 163.66 151.05 20 Ghana 59.91 38.30 -36.07

India's position as an importing country with respect to GREECE in 2010 Value in US $ Mill

Total India's Share Sr No. Product Exports Share %age Edible parts of plants, prepd./presvd., whether 1 9.40 0.04 0.42 or not cont. added sugar/ot ...(200899) Chocolate & oth. food preps. cont. cocoa (excl. 2 9.18 0.04 0.41 of 1806.20-1806.32)(180690) 3 Plums & sloes, fresh(080940) 5.74 0.03 0.53

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Olives, presvd./presvd. othw. than by 4 288.16 0.02 0.01 vinegar/acetic acid, not frozen, othe ...(200570) Sugar confectionery other than chewing gum 5 31.76 0.02 0.08 (incl. white chocolate), not con ...(170490 ) Bread, pastry, cakes, biscuits & oth. bakers' 6 48.51 0.02 0.05 wares n.e.s. in Ch.19, whethe ...(190590 ) 7 Food preps., n.e.s.(210690 ) 91.38 0.02 0.02 8 Waffles & wafers(190532) 12.24 0.02 0.15 Sauces & preps. therefor, n.e.s.; mixed 9 condiments & mixed seasonings, n.e. 4.25 0.01 0.24 ...(210390) Peaches, incl. nectarines, prepd./presvd., 10 223.98 0.01 0.00 whether or not cont. added sugar ...(200870) Page Total 724.61 0.24

KOLKATA - Not long ago, India's auto industry was a laughing stock. Its two best-known cars were a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. But that was then. Today, for instance, the Mumbai-based Dilip Chhabria Design Pvt Ltd (DC Design) is seeking to take on Pininfarina and Bertone, the Italian standard in international car design, by designing and building concept cars, prototypes and limited-production runs. Nor is DC Design alone."There can be few more improbable automotive stories than the yarn about the Indian designers creating bespoke concept and prototype cars," said the United Kingdom's auto magazine

Passenger car exports have nearly trebled in four years, from 28,122 units in 1998-99 to

71,653 vehicles in 2002-3. The industry expects this to gather steam further ahead because car exports in the first quarter of 2003-4 leapt by 87 percent over the same period in 2002-3. The two-wheeler segment is booming, too, with exports zooming from 100,004 units last year to 179,000 units in 2002-3. By 2005, the industry expects

400,000 two-wheelers on foreign shores.

The Indian-made sports utility vehicle Scorpio received a singular response in Detroit early this year, not just for its design but also because of its cheaper price tag. Tata

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Motors, the country's second-largest car maker's small Indica convinced MG Rover of the UK to sell it to the UK market as the City Rover. Others like Ford's mid-sized car model Ikon, Maruti's Altos and Toyota's Indian-made multi-utility vehicle have found ready buyers in a number of American, European and neighboring countries. India overtook China as the fastest-growing market, with an estimated 29-per-cent jump to about 900,000, the report says.

Nevertheless, according to managing director Jagdish Khattar of Maruti Udyog Ltd. India's largest car maker and a Suzuki joint venture, India still has a long way to go to become a global force. "Indian companies need to first grow the Indian market to acquire economies of scale," he says. China, for instance, consumes four times India's 700,000 annual car sales. Moreover, if Indian companies hope to corner a big chunk of the global market they need to ramp up global presence considerably, say others

PRODUCTION RANKINGS IN INDIA IS 2003 IS 13 AND 2002 IS 15

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4.1 Policies and Norms of Greece Automobile industry for import & export including licensing /permission, taxation etc

4.1.1 Licensing & permissions

Export Permits - Specific export permits are for commodities subject to export controls. The Ministry of National Economy is the government office for dual use exports (commercial items that may have military applications). The export of hunting weapons is subject to a license by the Ministry of Public Order. Other departments and agencies have regulatory jurisdiction and issue licenses for controlled substances and precursor chemicals, for endangered fish and wildlife species, for defense services and articles, for arms and munitions, for nuclear material, equipment and technology, for fuels, for drugs and medical devices and military vehicles Before exporting these items, special licenses must be obtained from customs office to insure that the items are not part of the national heritage of Greece. License requirements are dependent upon an item's technical characteristics, the destination, the end-use, end-user and other activities of the end-user. Specific questions pertaining to commodity licensing requirements should be directed to the lead agency. Agency information, telephone number and basic commodities that might require export permits could be identified by accessing the Department and agency web sites listed in the profile.

Certain products require special documents: food products need a certificate of health in Greek; electric materials and construction equipment/machinery need a certificate of conformity to EU directives; grapes, alcoholic beverages and tobacco need a certificate of authenticity. Certificates of origin may also be required if the origin can in any way be attributed to a country subject to quantitative or other restrictions.

126 accompany the license application. Customs accepts commercial invoices by fax. The license, once granted, is normally valid for six months but may be extended if adequate justification is provided

4.1.2 Export & Import Standard

Greece has established specific certification for certain products. This "homologation" involves cumbersome product testing by approved laboratories. However, a product that meets the standards and certification requirements of any other EU country can be imported and sold in Greece without further testing. Greek homologation requirements remain in force for computer keyboards and screens, dot matrix printers, Teleprompters, medical equipment, electric typewriters, telecommunications equipment, motor vehicles, bicycles, pleasure boats, gas connectors, etc.Greece uses NP EN ISO 9000 Standards, which are equivalent to ISO 9000 standards. Exporters must demonstrate through a certifying entity that the products offered meet equivalent quality standards. Greece allows the entry of used equipment, material and goods. However, they are subject to the same standards concerning safety as apply to any new import. Additionally, there may exist regulations specific to the particular type of equipment, such as computers and peripherals, that is being imported.

4.1.3 Taxation structure

Customs Valuation

All goods categorized, as non-document commercial goods shipped to Greece must have a proper value declared and proper description provided which should convey the shipper's intent related to the goods as well as any special processing requirements that exist for the goods shipped. Everything has a value, whether or not a transaction took place. Failure to properly document value of any goods will result in delays and or additional fees as deemed necessary in addition to warehouse fees.

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Import Duty Rate

Greece, like most member states of the European Community, bases its Harmonized Tariff Schedule on the TARIC (Integrated Tariff of the European Community) which is issued by the Commission and the Member States for the purpose of applying Community measures relating to import and exports, and-when necessary- to trade between member sates. The TARIC also serves as a basis for the working tariffs and tariff file of Greece and other Member States.Greek customs values shipments at C.I.F. prices. Import duty rates are divided into two classifications: Most Favored Nation (MFN) and General. Import duties are calculated on ad valorem basis, i.e. expressed as a percentage of the value of the imported goods. There are three primary entry types for importing into Greece:

1. Standard clearance procedure

2. Simplified clearance procedure

3. Simplified declaration procedure

Below is a summary of the new rules for EU demonisms value that enter into effect

December 1, 2008:

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• A commercial shipment below 22 Euros: no duty and no VAT collected.

• A commercial shipment between 22 Euros and 150 Euros: no duty but VAT is collected.

• A commercial shipment over 150 Euros: duty and VAT are collected.

Antidumping

Under strict enforcement of unfair trade laws, Customs will assess antidumping duties or countervailing duties. Antidumping duties are assessed on imported merchandise sold in Greece (EU) at less than the normal price of goods in the manufacturer's home market (also called fair market value).

Excise Duties

Excise duty rates may also be applicable on certain items such as alcohol and tobacco. For further information, please contact the Greek Customs Office.Excise taxes are assessed against certain commodities, which are normally identified as "luxury" goods. The excise tax is normally assessed against tobacco products, perfumes and alcohol products but can also be assessed against other goods as deemed by Greek regulations. A 12% admissions tax is applied on all motion pictures

Additional Duties

Countervailing

Countervailing duties are assessed to counter the effects of subsidies provided by a foreign government for merchandise exported to Greece resulting in artificially low prices that are detrimental to Greece and other European Union member states industries.

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Watch Duty Rate

Watches imported into Greece are subject to classification and duty assessment based on a per item basis. The actual duty and the final rate of duty are determined based on the classification of the watch at the time of entry processing with customs.

Import Taxes

In addition to duties, goods imported into Greece are also subject to a value-added Tax

(VAT) which is generally charged at one of three rates:

1. The rate of 18% applicable to certain pharmaceutical products, movie pictures, hotel and restaurant services, transportation services, agricultural services, street cleaning services, entertainment services, building and construction services, medical services and funeral services.

2. The standard rate of 19%, applicable mostly to the sale and imports of human or animal foodstuffs, water, agricultural chemicals, pharmaceuticals for animal use, medical and health products, mopeds, vehicles, personal dwellings.

3. The reduce rate of 4% applicable to books and newspapers.

4.1.4 Customs Fees

Invoice Fee

Customs in some situations will assess additional fees based on the invoices provided for a shipment. The fee is usually levied if they deem them necessary as part of the terms of entry due to the size of the shipment and the related large number of invoices provided by the shipper for his goods.

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Examination Fees

Additional fees can be assessed on some commodities to cover the expense of performing the examinations and or testing required as a condition of the goods entry into the commerce of Greece. Commodities affected: cosmetics, drugs and medicines, artwork Vat Rate is applicable in Greece 18% of vehicle industry

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4.2 Present Trade barriers for import & Export of Automobile industry

4.2.1 Technical Barriers to Trade (TBT's)

Technical barriers or non-tariff barriers to trade, as they are sometimes known, can cause many problems for exporters looking for new markets for their products. These barriers can be in the form of regulations, standards, testing and certification procedures. The World Trade Organization (WTO) Agreement on Technical Barriers to Trade tries to ensure that these barriers do not create unnecessary obstacles. To obtain further information on Technical Barriers to Trade as well as Notifications on Technical Regulation and Conformity Assessment Procedures

Barriers to entry in this industry is high These barriers are study

• The cost of developing high volume production facilities.

• The ability to gain access to technology of major global operators.

• The relatively high competition between established domestic companies and foreign companies.

The automobile manufacturing sector is characterized by a high cyclical growth patterns, high fixed cost and break-even point levels, and an excessive number of participants. Barriers to entry into automobile manufacturing activity are formidable. Some of the barriers that need to be overcome by a new entrant include: the cost of developing high volume production facilities, in order to benefit from economies of scale;

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4.3 Policies and Norms of India for Import or export to the Greece in Vehicle industry

India exports automobiles in about 203 countries. The total revenues from exports of automobiles, in the year 2008-2009 were USD 6,001.81 million with a growth of 33.85% from the previous year. The total exports from India in the year 2008-2009 were USD 185,295.36 million and in the year 2007-2008 were USD 163,132.18 million. The automobile industry in India contributes 3.24% of total exports in the year 2008-2009 compared to 2.75% in the year 2007-2008. Total revenue earn from Greece value in usd million 65.75 in 2007-08 and 127.63 in 2008-09

4.3.1 Vehicle registration

India had over 100 million vehicles registered on its roads in the year 2008. This is a growth of about 100% in the past 9 years. Over 77% and about 77 million of these vehicles are two wheelers, about 14% and over 14 million are cars, jeeps and taxis. Over 5 million and over 1 million vehicles registered are goods vehicles and buses respectively. Two wheelers account a significant market share. No of vehicle registration are following.

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Year Cars, Jeeps Goods Other All Vehicles Two Wheelers Buses Units and Taxis Vehicles Vehicles¹

2001 54,991 38,556 70,58 634 2,948 5,795 Thousands

2002 58,924 41,581 76,13 635 2,974 6,121 Thousands

2003 67,007 47,519 85,99 721 3,492 6,676 Thousands

2004 72,718 51,922 94,51 768 3,749 6,828 Thousands

2005* 80,045 57,417 10,460 822 4,053 7,337 Thousands

2006* 88,068 63,487 11,571 879 4,345 7,891 Thousands

2007* 96,808 70,141 12,810 936 4,652 8,464 Thousands

2008* 106,591 77,588 14,222 1,003 5,018 9,065 Thousands

4.3.2 Taxation

India has a well developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are:- Sales Tax (tax on intra- State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non- agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on

134 entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities.

4.3.3 Excise Duty

The Central Board of Excise and Customs ruled January 21, 1998, that CKD/SKD kits, which are taxed at the same rates as CBUs, are eligible for a credit for the full additional duty as they are considered inputs for manufacture. However, if the kits contain all of seven essential parts, components or sub-assemblies (engine, gear box, chassis, transmission, body/cab, suspension system, front/rear axles), the kits are treated as a finished motor vehicle for purpose of assessing customs duties

4.3.4 Types of Excise Duties

Basic Excise Duty: This is the duty livable under First Schedule to the Central Excise

Tariff Act, 1985 at the rates mentioned in the said Schedule

Special Excise Duty: This is the duty livable under Second Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule. At present this is leviable on very few items.

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Additional Duty:

An additional duty of 24 percent, also known as the countervailing duty, is also applicable. Additional duty or CVD is equivalent to the excise duty on similar articles produced locally, and is levied on the C.I.F. value of the vehicle plus all other duties of custom other than antidumping duties. The Government of India prescribes the requirements and conditions under which the eligible importers listed above may bring vehicles into India.

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5.1 Business Opportunities in future

The Greece Autos Report features the latest data and forecasts to end-2016 covering production, sales, imports and exports. Business Monitor International (BMI)'s Greece Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Greece. So in the following is benefit to the automobile industry.

• Benchmark BMI's independent automotives industry forecasts to end-2016 on Greece to test other views - a key input for successful budgetary and planning in the Greek automotives market.

• Target business opportunities and risks in the Greek automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Greece.

• Assess the activities and market position of your competitors, partners and

clients via our Competitive Landscape Analysis.

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Bibliography

Source; use internet Websites; www.namco.com www.namcoGreece.com www.worldcountry,com www.import.com www.export.com www.namcocorp.com

Links;

http://en.wikipedia.org/wiki/Namco http://en.wikipedia.org/wiki/Namco#History http://en.wikipedia.org/wiki/Namco#International_arcade_operations

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PART – 1

ECONOMIC OVERVIEW OF THE GREECE

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1. DEMOGRAPHIC PROFILE OF THE GREECE

Population

10,760,136 (July 2011 est.)

Age structure

0-14 years: 14.2% (male 787,143/ female 741,356)

15-64 years: 66.2% (male 3,555,447/ female 3,567,383)

65 years and over: 19.6% (male 923,177/female 1,185,630) (2011 est.)

Median age

total: 42.5 years

male: 41.4 years

female: 43.6 years (2011 est.)

Population growth rate

0.083% (2011 est.)

Birth rate

9.21 births/1,000 population (2011 EST.)

Death rate

10.7 deaths/1,000 population (July 2011 EST.)

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Net migration rate

2.32 migrant(s)/1,000 population (2011 est.)

Urbanization

Urban population: 61% of total population (2010)

rate of urbanization: 0.6% annual rate of change (2010-15 est.)

Sex ratio

At birth: 1.064 male(s)/female

under 15years: 1.06 male(s)/female

15-64 years: 1 male(s)/female

65yearsandover: 0.78male(s)/female

total population: 0.96 male(s)/female (2011 est.)

Infant mortality rate

total: 5 deaths/1,000 live births

male: 5.49 deaths/1,000 live births

female: 4.48 deaths/1,000 live births (2011 est.)

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Life expectancy at birth

Total population: 79.92 years

male: 77.36 years

female: 82.65 years (2011 est.)

Total fertility rate

1.38 children born/woman (2011 est.)

HIV/AIDS - adult prevalence rate

0.1% (2009 est.)

HIV/AIDS - people living with HIV/AIDS

8,800 (2009 est.)

HIV/AIDS - deaths

fewer than 500 (2009 est.)

Nationality

noun: Greek(s) adjective: Greek

Ethnic groups

Population: Greek 93%, other (foreign citizens) 7% (2001 census) note: percents represent citizenship, since Greece does not collect data on ethnicity

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Religions

Greek Orthodox (official) 98%, Muslim 1.3%, other 0.7%

Languages

Greek (official) 99%, other (includes English and French) 1%

Literacy

Definition: age15 and over can read and write

total population: 96%

Male: 97.8%

Female: 94.2% (2001 census)

School life expectancy (primary to tertiary education)

total: 17years

male: 16years

Female: 17 years (2007)

Education expenditures

4% of GDP (2005)

Maternal mortality rate

2 deaths/100,000 live births (2008)

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Health expenditures

7.4% of GDP (2009)

Physicians density

6.043 physicians/1,000 population (2008)

Hospital bed density

4.77 beds/1,000 population (2008)

Obesity - adult prevalence rate

22.5% (2003)

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2. ECONOMIC OVERVIEW OF THE GREECE

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. The economy contracted by 2% in 2009, and 4.8% in 2010. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15.4% of GDP. Austerity measures reduced the deficit to 10.5% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% in 2010. Eroding public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, and has led the country into a financial crisis. Under intense pressure by the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming the health care and pension systems, and improving

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Competitiveness through structural reforms to the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition from the country's powerful labor unions and the general public. Greek labor unions are striking over new austerity measures, but the strikes so far have had a limited impact on the government's will to adopt reforms. An uptick in widespread unrest, however, could challenge the government's ability to implement reforms and meet budget targets, and could also lead to rioting or violence. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May, the International Monetary Fund and Eurozone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to boost revenues and cut spending to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. Greece's lenders are calling on Athens to step up efforts in 2011 to increase tax collection, shore up public enterprises, and rein in health spending, and are planning to give Greece more time to repay its EU-IMF loan. Greece responded by introducing major structural reforms, but investors still question whether Greece can sustain fiscal efforts in the face of a bleak economic outlook and public discontent.

While the Greek government encourages free enterprise and a capitalistic system, in some areas it still operates as a socialist country. For instance, in 2001 the government still controlled many sectors of the economy through state- owned banks and industries, and its public sector accounted for approximately half of Greece's gross domestic product (GDP). Limited natural resources, high debt payments, and a low level of industrialization have proved problematic for

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The Greek economy and have prevented high economic growth in the 1990s. Certain economic sectors are stronger and more established than others, such as shipping and tourism, which are growing and have shown promise since the 1990s.

GDP per Capita (US$)

Country 1975 1980 1985 1990 1998

Greece 8,302 9,645 10,005 10,735 12,069

United States 19,364 21,529 23,200 25,363 29,683

Germany N/A N/A N/A N/A 31,141

Italy 11,969 14,621 15,707 18,141 19,574

After many years of high inflation, the Greek economy appears to have settled since 2000. Inflation is above the EU average but is under control and expected to remain that way in the near future. Reducing inflation rates has been a success of Greece's recent reformist economic measures.

Inflation, consistently above 10 percent in the past, has fallen due to government fiscal policies, wage restraints, strong monetary policies, and debt consolidation. By mid-1999 inflation fell to 2.0 percent but later rose again because of a sharp easing of Greece's monetary policy when it joined the EU's Economic and Monetary Union (EMU). Fortunately, this did not cause a huge inflation increase as had been feared.

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3. VARIOUS SECTORS IN GREECE

PRIMARY SECTOR

Agriculture and fishery

In 2010, Greece was the European Union's largest producer of cotton (183.8 thousand tons) and pistachios (8 thousand tons) and ranked second in the production of rice (229.5 thousand tons)http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐eurostat_agriculture_1‐73 and olives (147.5 thousand tons), third in the production of figs (11 thousand tons) and almonds (44 thousand tons) , tomatoes (1.4 million tons) and water melons (578.4 thousand tons)http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐eurostat_agriculture_2‐74 and fourth in the production of tobacco (22 thousand tons). Agriculture contributes 3.3% of the country's GDP and employs 12% of the country's labor force.

Greece is a major beneficiary of the Common Agricultural Policy of the European Union. As a result of the country's entry to the European Community, much of its agricultural infrastructure has been upgraded and agricultural output increased. Between 2000 and 2007 organic farming in Greece increased by 885%, the highest change percentage in the EU.

In 2007, Greece accounted for 19% of the EU's fishing haul in the Mediterranean sea, ranked third with 85,493 tons, and ranked first in the number of fishing vessels in the Mediterranean between European Union members.http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐eurostat_fishery‐77 Additionally, the country ranked 11th in the EU in total quantity of fish caught, with 87,461 tons.

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MANUFACTURING SECTOR

Manufacturing accounts for about 14 percent of the GDP. In 2000 the manufacturing sector increased modestly. During the 1990s, the most important and profitable sectors have been (in order) foodstuffs, textiles, chemicals, and nonmetallic minerals.

The economic crisis of the 1970s and 1980s, in which the Greek economy experienced declines in its GDP growth rate, rising labor and oil costs, and high inflation, hurt many manufacturing companies. The government bought many of these companies to prevent them from going out of business and help them earn a profit. Eventually, the PASOK government in the 1990s decided to embark on a continuing privatization policy in an effort to encourage foreign investment.

Foreign investment in manufacturing has not been strong, despite incentives from the Greek government as early as 1953, but it has grown since 2000. Investment by foreign companies is important, as it helps a struggling economy grow. It expands an economic sector, brings new technology into a country, increases tourism, creates new job opportunities, and accelerates growth in other sectors of the economy. Greece's EU membership helped lure some investors with the promise of working in a unified European market.

MINING SECTOR

The mining industry is small but significant because of Greece's vast mineral resources. Lignite, which is used for making energy in Greece, and bauxite, the raw material needed for aluminum production, are 2 minerals that are found abundantly in Greece. Other mineral deposits include ferronickel ores, 149

magnesite, mixed sulfurous ores, ferrochrome ores, kaolin, asbestos, and marble. Mining accounts for only 1% of the GDP. Mining of metallic ores is concentrated in the hands of a few private companies.

Quarry production is divided among many small companies. In 2000 mining output rose significantly, in contrast to its negative performance of the previous 2 years.

CONSTRUCTION SECTOR

Housing and building construction have always played a key role in Greece's industrial sector and have long been a major source of income. Today, construction activity accounts for approximately 7.5 percent of the GDP and is expected to rise due to new infrastructure projects financed by EU funds.

The government traditionally has seen the construction sector as a way to boost employment, income, and domestic demand. Accordingly, the housing construction industry has historically enjoyed tax advantages. However, with the fiscally conservative policies of the 1990s, increased taxation was considered.

The construction of large public works has also played a significant role in this subsector of the economy. The new international airport in Athens was a major construction project planned by the government. The first passenger flights took off in March 2001 and the government hopes the airport will become a regional hub for routes to Europe, Africa, and Asia. With its state-ofthe-art facilities, the new airport is expected to boost the tourism sector and handle the tourist traffic demands of the 2004 Olympic Games, which will be held in Athens. The $1 billion construction project involved both Greek and foreign private companies and the Greek public sector. Attiki Odos, a conglomerate of Greek construction companies, constructed a high-speed toll roadway, and plans are underway to build new hotels near the airport.

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SERVICE SECTOR

Tourism

Greece attracts more than 16 million tourists each year, thus contributing between 18.2% to the nation's GDP in 2008 according to an OECD report. The same survey showed that the average tourist expenditure while in Greece was $1,073, ranking Greece 10th in the world. The number of jobs directly or indirectly related to the tourism sector were 840,000 in 2008 and represented 19% of the country's total labor force In 2009, Greece welcomed over 19.3 million tourists,] a major increase from the 17.7 million tourists the country welcomed in 2008.

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Transport

As of 2010, Greece has a total of 81 airports, of which 67 are paved and six have runways longer than 3,047 meters. http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐CIA_World_Factbook‐75 Of these airports, two are classified as "international" by the Hellenic Civil Aviation Authority, but 15 offer international services. Additionally Greece has 9 heliports. Greece does not have a flag carrier, but the country's airline industry is dominated by Olympic Air , the largest airline by number of destinations served, and Aegean Airlines , the largest airline by number of passengers carried.

Between 1975 and 2009 Olympic Airlines was the country's flag carrier, but financial problems lead to its privatization in 2009. Both Olympic Air and Aegean have won awards for their services; in 2009 and 2011 Aegean Airlines was awarded the "Best regional airline in Europe"

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Maritime industry

Shipping has traditionally been a key sector in the Greek economy since ancient times, In 1813, the Greek merchant navy was made up of 615 ships Its total tonnage was 153,580 tons and was manned with 37,526 crewmembers and 5,878 cannons. During the 1960s, the size of the Greek fleet nearly doubled, primarily through the investment undertaken by the shipping magnates Onassis and Niarchos. The basis of the Modern Greek maritime industry was formed after World War II when Greek shipping businessmen were able to amass surplus ships sold to them by the United States Government through the Ship Sales Act of the 1940s

Greece is also ranked in the top 5 country merchant fleets by number of ships. In the same 2010 United Nations report, the Greek merchant navy came fourth with 3,150 ships, after Japan, China and Germany. There is a significant gap between

Greece and Russia, which came fifth with 1,987 ships.

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Telecommunications

Between 1949 and the 1980s, telephone communications in Greece were a state monopoly by the Hellenic Telecommunications Organization, better known by its acronym, OTE. Despite the liberalization of telephone communications in the country in the 1980s, OTE still dominates the Greek market in its field and has emerged as one of the largest telecommunications companies in South-eastern Europe. Since 2011, the majority share holder at OTE is Deutsche Telekom, with 40%, while the Greek state has 10% of the company's shares. OTE owns a total of 13 subsidiaries in four countries across the Balkans, including Greece's top mobile telecommunications provider, Cosmote.

Other mobile telecommunications companies active in Greece are Wind Hellas and Vodafone Greece. The total number of active cellular phone accounts in the country in 2009 based on statistics from the country's mobline phone providers was over 20 million, a penetration of 180%. Additionally, there are 5.93 million active landlines in the country.

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ENERGY SECTOR

Energy production in Greece is dominated by the Public Power Corporation

(known mostly by its acronym ∆ΕΗ, or in English DEI). In 2009 DEI supplied for

85.6% of all energy demand in Greece,[102] while the number fell to 77.3% in

2010. Almost half (48%) of DEI's power output is generated using lignite, a drop from the 51.6% in 2009. Another 12% comes from Hydroelectric power plantsand another 20% from natural gas.[103] Between 2009 and 2010, independent companies' energy production increased by 168%, from 2,709 Gigawatt hour in 2009 to 4,232 GWh in 2010.

In 2008 renewable energy accounted for 8% of the country's total energy consumption, a rise from the 7.2% it accounted for in 2006,http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐ Eurostat_renewable_energy‐103 but still below the EU average of 10% in 2008. 10% of the country's renewable energy comes from solar power, while most comes from biomass and waste recycling.http://en.wikipedia.org/wiki/Economy_of_Greece ‐ cite_note‐Eurostat_Sustainable‐76 In line with the European Commission's Directive on Renewable Energy, Greece aims to get 18% of its energy from renewable sources by 2020. Greece currently does not have any nuclear power plants in operation, however in 2009 the Academy of Athens suggested that research in the possibility of Greek nuclear power plants [106] begin.

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4. INTERNATIONAL TRADE OF THE GREECE

Greece, a member of the EU exports aluminum, cement, cotton, fruit, marble, edible oils, petroleum products, steel, textiles and knitwear and tobaccos, while the main imports include mineral products, miscellaneous manufactured goods, petroleum products and steel.

The last of Greece’s traditional foreign exchange restrictions were abolished during 1994 and the Bank of Greece (Central Bank) is responsible for exchange control and this is administered by authorised banks in most cases.

There are no currency restrictions for transfer of funds with the European Union member-states, as well as with the third countries and automatic approval for imports is granted by the commercial banks before or after shipment of the goods. This implies that the required amount of foreign exchange will be made available.

No import licence is required for textile products of South Africa origin, however, an import licence is required for the importation of textile products originating in certain third countries according to the EU Regulation 3030/93.

Greece has 3 free trade zones located at the Piraeus, Thessaloniki and Heraklion port areas and the Greek tariff is based on the Harmonised Commodity Description and Coding System.

The Greek trade industry consists of both imports and exports. In 2005 imports outnumbered exports as there was a current account deficit of $17.86 billion. Greece’s import commodities include machinery, transport equipment, fuels and

156 chemicals. The value of imports in 2005 was estimated at $48.2 billion. The main import partners of Greece are Germany, Italy, Russia, France, Netherlands and Saudi Arabia.

Greece’s export commodities include food and beverages, manufactured goods, petroleum products, chemicals and textiles. The value of exports in 2005 was estimated at $18.54 billion. The main export partners of Greece are Germany, Italy, United Kingdom, Bulgaria, United States, Cyprus, Turkey and France.

Trade (expressed in billions of US$): Greece

exports Imports

1975 2.294 5.357

1980 5.153 10.548

1985 4.539 10.134

1990 8.105 19.777

1995 10.961 25.944

1998 N/A N/A

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

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5. Trade and Culture Relationship Between Greece & India

INDIA-GREECE RELATIONS

India and Greece established diplomatic relations in May 1950. India opened its resident Embassy in Athens in March 1978. Interaction between India and Greece goes back to antiquity. In modern times, the two countries have developed a warm relationship based on a common commitment to democracy, peace and development in the world and to a social system imbued with principles of justice and equality. India and Greece also share common approaches to many international issues, such as UN reforms and Cyprus.

Greece has been consistently supporting of India’s core foreign policy objectives.

Bilateral Trade

US$ million

India’s Exports India’s Imports Year Total Trade to Greece from Greece

2006-07 671.98 209.49 881.47

2007-08 530.95 126.81 657.44

2008-09 878.43 69.49 947.92

2009-2010* 452.80 154.13 606.93

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(Source: Export Import Data Bank, Department of Commerce, Government of India)

CHIEF EXPORTS:

Manufactured goods, foodstuffs and beverages, fuels.

CHIEF IMPORTS:

Manufactured goods, foodstuffs, fuels, chemicals.

GROSS DOMESTIC PRODUCT:

$149.2 billion (1999 est.).

BALANCE OF TRADE:

Exports: US$12.4 billion (1998 est.). Imports: US$27.7 billion (1998 est.).

The main items of Greece’s exports to India are machinery, rubber and plastic products, cotton, copper products, iron and steel products, wood products and chemicals.

The main items of India’s exports are machinery, automobiles and auto parts, iron and steel, aluminium, copper, dyes and chemicals, and textiles and garments.

50 Companies under overall supervision of ITPO participated in Thessaloniki International Trade Fair in September 2010 and 46 companies participated in September 2011.

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A “buyer-seller” meet was organized on 14 April 2011 in Athens which was attended by Director, Tea Board, London.

Investment

There are no major investments in Greece or in India from either side, but some companies in the field of IT and construction are leading the way. The following Greek companies are operating in India - (i) The Pisani Group, (ii) M.J. Mallis & Co., (iii) European Dynamics and (iv) Frigoglass. The following Indian companies are operating in Greece: Infosys, TCS, I-flex, Jain Irrigation Systems, Quoprro Global Services, and Tata Steel. Indian Register of Shipping has also opened an office in Piraeus in Greece.

Cultural Relations

India's cultural relations with Greece are based on a bilateral Cultural Agreement which was signed in 1961 and revived in 1995. The current Cultural Exchange Programme for the period 2003-2006 expired in 2006. However, it will continue to be in force till a new agreement is signed. There are several private cultural organisations in promoting cultural contact between two countries. In India, the Greek centres are in Calcutta and Varanasi, while in Athens there are several Indophile organisations such as the Hellenic Indian Society, Yoga Institute, Bharatanatyam school, and the Brahmakumari Ashram.

Indian Council for Cultural Relations (ICCR) has agreed with the Athens University of Economics & Business (AUEB) to establish a short term ‘Chair’ in the field of Innovation and Entrepreneurship. Prof. K. Kumar, Professor, IIM, Bangalore, who was deputed by ICCR as Professor of Innovation and

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Entrepreneurship for a period of three months, joined AUEB on 9th March 2010. Prof. Jai Prakash Sharma of Delhi School of Economics visited Athens University of Economics and Business from 14-29 October 2010 under the Indo-Greece Cultural Exchange Programme.

In January 2002, President Shri K.R. Narayanan presented the “Padma Shri” to Ambassador Dimitris Velissaropoulos, who had written several books on India. Ambassador Velissaropoulos passed away in September 2002. The award was

the first given to a distinguished Greek citizen. In October 2002, The Sahitya Academy elected Dr. Vassilis Vitsaxis, a distinguished Greek diplomat and well- known scholar, as its Honorary Fellow in recognition of his contribution to promoting understanding of Indian culture.

Dr Dimitrios Vassiliadis, Professor of Hindi & Sanskrit, School of Foreign Languages, University of Athens, completed research at the BHU under ICCR Fellowship, spread over different periods during December 2009 – April 2011.

Every year a scholarship is offered to a Greek national under the ICCR’s General

Cultural Scholarship Scheme.

Greek city of Thessaloniki was twinned with Kolkata in January 2005.

The following cultural events have been organised by the Embassy in Greece since 2010

• A folk dance troupe from Orissa sponsored by ICCR participated in the

International Folklore Festival in Lefkas in August 2010.

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Air links

There is no direct air link between India and Greece. Athens can be reached via

Dubai, Abu Dhabi, Istanbul, Doha, Bahrain, Amman and several cities in Europe.

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6. PESTAL ANALYSIS

• Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation

• Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

• Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes

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and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

• Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

• Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

• Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

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PART – 2

Company & industry

Information

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(1) INTRODUCTION OF HELLENIC VEHICLE INDUSTRY

ELVO S.A. was founded in 1972 as STEYR HELLAS S.A., to manufacture and distribute trucks and agricultural tractors.

In 1986, after the transfer of the shares to the Greek State, the company was renamed to “HELLENIC VEHICLE INDUSTRY S.A.” (ELVO S.A.).

In August 2000 MYTILINEOS GROUP acquired 43% of the shares of ELBO and undertook the management of the company. In June 2010 MYTILINEOS GROUP withdrawal from the company’s management which was taken over by the Greek State.

It was founded in Thessaloniki with the name Steyr Hellas S.A. and until the early

1980s the Austrian company owned a significant part of its capital. The Greek state acquired a majority of the company in 1986, when it was renamed ELBO.

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Its original activity in the 1970s was assembly, with progressively increasing local content, of trucks, motorbikes and farm tractors.

It started business as Steyr Hellas S.A. assembling and manufacturing trucks, motorbikes and farm tractors (Steyr and Puch models). Significant orders for trucks and buses by the Greek Army and state authorities soon gave momentum to the company (some say, at the expense of other manufacturers). The tractor division declined in the 1980s, as the company focused on military vehicles; in 1986 it changed its name to ELBO.

The Greek company's first original designs were a 3-tonne truck in 1980 (not industrially produced) and a military bus (chassis and body) in 1981. In the same year it undertook the construction of "its own" Leonidas Armored Personnel Carrier (in fact Steyr’s 4K 7FA model built with minor modifications, again with progressively increasing local content). In 1987 ELBO introduced this time with significant modifications of its own. Hundreds were built, while a number of different versions were proposed.

(1.1) Vision & mission

ELVO S.A., being the only military and armored vehicles industry in Greece, has as primary mission the satisfaction of the Hellenic Armed Forces needs in vehicles and spare parts of Greek manufacturing, thus ensuring the self-reliance and the effectiveness of the Armed Forces, with multiple benefits for the Greek Economy. It is obvious that the unimpeded operation of ELVO S.A., as well as its further development, should be a basic strategic option for our country, given that ELVO S.A. can already demonstrate a thirty-year long experience in the field of military vehicles.

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(1.2) Company Managing Body

Board of Director

Papakostas Demetrios Chairman of B.O.D. and CEO Zahariadis Nikolaos Vice President Zafirakis Asterios Deputy Vice President Samaras Nikolaos Member Petridis Panagiotis Member Liakopoulos Stylianos Member Mylopoulos Konstantinos Member

Executives

General Director: Gagalis Demetrios

Financial Director: Mylopoulos Konstantinos

General Technical Director: Papadopoulos Ioannis

Department of Project Management Director of Military Sector : Katertzis

Demetrios

Department of Project Management Director of Civil Sector: Kiskinis Andreas

Purchase Dept Manager : Karakatsanis Ioannis

Research and Development Director : Mellos Ioannis

Production Planning Manager: Chatzigeorgiou Georgios

Production Manager: Gogos Vasileios

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Quality Control Manager: Zikos Georgios

Maintenance Manager : Skarlatakis Petros

IT Manager : Deligiannis Ioannis

Administrative Manager: Reizopoulos Georgios

Spare Parts Manager: Dimitriadis Demetrios

Athens Complex Manager: Ligas Konstantinos

(1.3) Types of product

o Cross country military jeeps 4x4, (1/4 &11/4 tones).

o Civil and military trucks (tippers, cargo, etc.)

o Special purpose trucks (truck with snow cutter etc.)

o Tank transporters.

o Truck and trailers.

o Armored Personnel Carrier (APC) "LEONIDAS".

o Armored Infantry Fighting Vehicle (AIFV) “KENTAURUS".

o Armed forces Special vehicles.

o Trolley, Buses (personnel carrier, urban, intercity, coaches).

o Fire fighting trucks

o Mobile Hospitals.

o Public utility vehicles (Refuse collectors, Water tanks, etc.)

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Civil and military trucks (tippers, cargo, etc.)

Cross country military jeeps 4x4, (1/4 &11/4 tones).

Special purpose trucks (truck with snowcutter etc.)

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Tank transporters & Truck and trailers.

Armoured Personnel Carrier (APC) "LEONIDAS ".

Mobile Hospitals.

Public utility vehicles (Refuse collectors, Water tanks, etc.)

Spare Parts and major components for all the above vehicles

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(1.4) Quality Control Department

The organization and the entire production process is supported by ELBO's Quality Control Department under the quality assurance system ISO 9001:2000 standards. The quality control department is equipped among others with:

• Complete materials testing laboratory

• Complete chemical laboratory

• Metrologies laboratory

• Prototype Engine Testing Facilities

(1.5) Installations

ELBO is Greece's largest vehicle manufacturer with installations expanding over an area of 270,000 sq. meters, of which 60,000 sq. meters are covered by plant facilities and office space, including:

Machining plant 6,250m2

Assembly shop 25,500m2

Warehouses 14,000m2

Boilerhouses 1,350m2

Offices 3,700m2

Underground 8,250m2 floors

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ELBO has two well-equipped workshops in Athens and Thessaloniki. The availability of spare parts and the mobile service units, guarantee a constant rapid assistance. The installed power is 9.500 KW.

(1.6) Human Resources

ELVO’s manpower consists an extremely significant chapter in the company’s operation; this is why the company invests continuously upon it’s human capital, since its foundation. ELVO employs 430 specialized and experienced personnel, with more than 20 mechanics in its workforce.

Hygiene and Work Safety

Hygiene and Work Safety are the core priority for ELVO. Thanks to collective efforts, there has never occurred a lethal work accident in the 33 years of the company’s operation. The main goal of ELVO is to ensure there will be no work accidents and no occupational diseases. The policy to attain this goal is:

- Hazard evaluation and control, by undertaking every necessary measure

- Respect towards all legislative principles and internal regulations

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Infrastructures - Equipment

ELVO S.A. has modern production equipment, which makes it unique in the

Greek Industry. Such us:

• Laser cutting machines

• CNC boring and milling centers

• CNC vertical and horizontal lathes

• Metal hardening facilities

• Painting facilities

(1.7) Customers

DOMESTIC CUSTOMERS

Ministry of Defense:

• MBT LEOPARD 2 HEL

• Armored Personnel Carriers (APC) “LEONIDAS”

• Trucks of various types (cargo, fire fighting vehicles, dumpers, water and fuel tankers, etc.)

• Light military vehicles cross – country 4x4 (1/4 & 1 ¼ tn)

• High Mobility Multipurpose Wheeled Vehicles (HMMWV)

• Recovery trucks

• Tank transporters

• Buses

• Spare Parts

• Overhauls and Upgrades of older military vehicles.

Ministry of Agriculture: Fire fighting trucks, Special Trucks

Ministry for the Environment Physical Planning and Public Works: Special

Trucks

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Municipalities: Refuse Collectors, Trucks, Fire fighting vehicles, Busses, Special Trucks

Hellenic Police: Light vehicles, cross – country 4x4 and Busses

Public Power Corporation S.A.: Special Trucks

Fire Fighting Department: Fire fighting trucks

Public Petroleum & Gas Corporation S.A.: Various trucks

Organization of Urban Buses of Athens: Busses (typical – articulated – midi)

Organization of Urban Buses of Thessaloniki: Busses (typical – articulated)

ILPAP S.E.: Trolleys

Piraeus Port Authority S.E.: Trucks

Thessaloniki Port Authority S.E.: Trucks and busses

Private Companies: Trucks and Busses (intercity, coaches)

FOREIGN CUSTOMERS

CYPRUS REPUBLIC: Various Special Vehicles

RATB (Romania): Urban Busses

TIBS (Singapore): Urban Busses

SERBIA: Coaches

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STEYR / MAN: Spare Parts

DAIMLER CHRYSLER: Spare Parts

ALBANIA: Light Military Vehicles

CZECH REPUBLIC: Urban Buses

YEMEN: Fire fighting Vehicles

RAYTHEON: Vehicles

RHEINMETALL DEFENCE ELECRONICS Gmbh: Military vehicles

KRAUSS MAFFEI WEGMANN: Main Battle Tank

PEARSON ENGINEERING LTD: Mine Plough Cradles

(1.8) Financial Information

Share Capital $10.2.milion

1998 1999 2000

Turnover ( 309885997954251 million GRD)

Gross Profit 2274 6616 4450

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Personnel 971 1062 1000

(1.9) Group's Activities of Hellenic Industry

MYTILINEOS Holdings S.A. Group of Companies holds through its subsidiaries leading positions in the sectors of Metallurgy & Mines, Energy, EPC Constructions and the Vehicle Industry.

Metallurgy & Mining

The Group has developed in the past years an important activity with regard to mining and metallurgy of basic metals and holds an eminent position in the Balkans in the production and trade of aluminum, zinc, and lead...

Energy

In 2001, MYTILINEOS HOLDINGS S.A. entered the energy production and trading sector. Deploying its activities in a dynamic manner during the last years with important acquisitions and investments, in 2007 the Group...

Engineering Procurement Construction (EPC) Projects

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The Group is present in large-scale energy and environmental projects, and in infrastructure and defence equipment projects, through its subsidiary METKA S.A.The Company’s strategy in the above

Vehicle Industry

In 2000, MYTILINEOS HOLDINGS S.A. acquired through the privatization process a 43% stake in the HELLENIC VEHICLE INDUSTRY S.A., and thus entered dynamically the vehicle industry sector.

Activities

A state-owned vehicle manufacturer with historically strong links with Steyr- Daimler-Puch, producing armoured vehicles, trucks and 4 × 4 utilities under licence for the Greek Armed Forces and for export. The production of cargo trucks licensed by MAN has also been noted.

(1.10) Content structure & format of Hellenic vehicle industry

Content

Inevitably, because of the complexity of many of the major groups in the defence and military aerospace industries, the Contents extend to include many hundreds of subsidiary organizations, many of which trade under names which do not immediately provide an indication of their parentage.

Jane’s World Defence Industry aims to provide a readily accessible guide to the hierarchical relationships in an international market that is rapidly coming under the domination of extremely large and complex corporate structures.

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Scope

This publication is divided into regional sections: Africa and the Middle East; East Asia; South West Asia and ASEAN; East and Central Europe; West Europe; North America; and Latin America. A Commentary providing a brief overview of current dominant issues has been provided for each region. Each region is subdivided into separate countries within which key companies are listed in alphabetical order. International companies are listed under the countries in which their head (home) offices are situated. Joint ventures are similarly listed in the entries of each of the partner companies.

Format As far as possible a standard format has been adopted which provides, in the first instance, a description of the company and its ownership, directors or vice- presidents, the general nature of its business and details of its workforce and recent financial performance. This introductory section also includes a brief assessment of the factors which give the organization its current listing in what may be described as the industry’s ‘upper echelons’.

Thereafter each entry details the various wholly-owned and partly-owned plants and subsidiaries for each company, outlines their principal activities and, wherever possible, their significance to their regional economies and provides a summary of their recent major contracts. Wherever applicable, entries are rounded out with listings of associated companies (sister companies within groups) which have no significant defense interests.

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(1.11) Current Position Of Hellenic Vehicle Industry

ELVO S.A. was founded in 1972 as STEYR HELLAS S.A., to manufacture and distribute trucks and agricultural tractors. In 1986, after the transfer of the shares to the Greek State, the company was renamed to “HELLENIC VEHICLE INDUSTRY S.A.” (ELVO S.A.). Currently ELBO is the largest vehicle manufacturer in the country. The company’s production facilities are located in the Industrial Area of Salonika and cover a total area of 270,000 sq. meters, of which some 60,000 are covered. It turns over some 150 million EURO, employs some 1,000 employees, together with state-of-the-art equipment and is currently ISO 9001 certified. ELBO continues to be the Greek Army’s largest supplier of various types of armored and other vehicles, which principally including Military Cross Country Jeep, M 997A2 Hummer HMMWV (4x4), Special Military Truck Unimog (4x4), Military Trucks on Steyr 14M14 Chassis (4x4). recently refurbished 700 Steyr trucks of all models for the Greek army. Other civilian customers are public transport (buses) refuse collection (trucks) and fire-fighters (Air-Crash tender, Industrial Fire-fighting and Support Fire-fighting trucks). ELBO also undertakes bodywork-only jobs, like the building and fitting of bodywork to the army’s Hummer ambulances and fitting of special equipment to public services Unimogs.

Again, the Cypriot Gs feature the latest 461 series interior, albeit being a military version, in very basic form. These, though, feature the hydraulically-operated rear diff-lock and come with the spare wheel fitted to the rear right-hand side instead of the back as in the SAS Pink Panther Land Rovers. The camouflage, being for the desert is much lighter than in the Greek version.

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(2) INTRODUCTION OF AUTOMOBILE INDUSTRY

The Automobile industry of Greece, unfortunately back in those days my only sources of information were the people, actually pessimistic stubborn people who used to tell me that Greece wasn't a car manufacturer country, and despite I grew watching buses and even cars sometimes with some Greek brand names on them (like ELBO or Sarakakis among others) all the answers I got from the adults were, no Grigori, we don't manufacture cars in Greece, those names are importers even answers like it's all fake buddy, Greece doesn't have any industry our only incomes are from tourism well the feedback to all those answers is BS!!!! as in bull Though my disappointment vanished at once 10 years ago being a pubescent when an automobiles magazine reached my hands, it was dedicated entirely to the ELBO vehicles manufacturing industry located in Thessaloniki, where most of the buses we have nowadays in Athens or Thessaloniki (as well as in many Balkan countries, parts of Italy eastern Europe and even distant markets as Singapore Latin America and the middle east with older models) are built in a 100% not just assembled but made in Greece by Greek companies.

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(2.1) Types of Vehicle Industry in Greece

T h e ol o g o u

Theologou (full name appearing on vehicle badges was "N. Theologou") was one of the first vehicle manufacturers in Greece. It was created by Nikos Theologou, a Greek mechanic who had previously lived and worked in the US, and founded this company after he returned to Athens, Greece. Between 1918 and 1920 he designed and constructed a light passenger car with a Pierce 750 cc motorcycle engine (only one built). His company, nonetheless, produced a variety of bus and truck bodies, mostly on Ford chassis in the 1920s.

Biamax

BIAMAX has perhaps been the best known Greek vehicle manufacturer, being, at the same time one of the biggest Greek companies at its time with three factories (in Athens, where its headquarters, Thessaloniki and Larissa, employing 182 more than 2000) and several other auxiliary facilities throughout the country. Except for a large Greek company, BIAMAX became a leading industry in that country, in areas including Quality Assurance, technical training, process documentation and Research Development.

Sfakianakis

Sfakianakis group of companies is a Greek conglomerate with a wide range of activities employing (in 2005) over 1600 in three countries; its origins were based on vehicle manufacture. It was founded in 1961 succeeding earlier trading companies founded by the same family.

Saracakis

Namco (The stubbornness of these guys is funny but also optimistic)Namco (National

Motor Company of Greece) is a Greek vehicle manufacturer, a creation of the Kontogouris Brothers who have been in the automotive industry business since the 1950s.The first efforts of the Kontogouris Brothers involved building light trucks called 'Hellas' in Germany.

Neorion

Neorion is one of the most historic Greek engineering companies, located in

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Ermoupolis, on the Greek island of Syros. Today, it is one of the few remaining major industrial corporations in that picturesque and nostalgic island town that used to be the industrial and commercial heart of Greece, before eclipsed by Piraeus in the late 19th century.

AKHellas

AK Hellas (the initials standing for the full name of the company, 'Aggelopoulos- Karkanis O.E.') was a Greek manufacturer of light trucks and other metal products. It designed and produced two basic types of vehicles - all three- wheelers with 50cc engines, taking advantage of a favorabe classification as "motorbikes" according to Greek law

Attica (automobiles)

DIM (automobiles)

DIM Motor Company, a Greek automobile maker, was created by Georgios Dimitriadis as a successor to his earlier company, Bioplastic S.A. that had produced the Attica automobile. An effort was made this time to entirely design and develop by own means a modern car.

Auto Diana

Auto Diana was a Greek truck manufacturer based in Thessaloniki, in operation between 1975 and 1984. Its main product was the 'Unicar' model (not to be

184 confused with a Spanish body-builder with the same name), a rather heavy- looking 4x4 multi-purpose truck. This robust vehicle had a payload of 1500 Kg.

Balkania

Balkania was the trade name of 'K. Zaharopoulos A.B.E.E.' a Greek industrial and trading company based in Athens that produced 4x4 jeep-type vehicles and 4x4 trucks.In 1975 it designed and introduced its own 'Autotractor' model, a 4x4 multi-purpose truck with metal cabin and a payload of 1500 Kg. In 1979 the model was redesigned, with a modern synthetic (glass-fiber reinforced composite) cabin.

MAVA-Renault

MAVA Company is the Greek importer of Renault automobiles. In 1979 it decided to enter the car-production business introducing a passenger-utility car, a type then very popular in Greece for tax cetagorization reasons. MAVA assigned the creation of the car to Georgios Michael, a Greek designer credited with the design of Neorion Chicago, as well as that of several other Greek vehicles.

MEBEA

MEBEA was an important Greek vehicle manufacturer, producer of light trucks, passenger automobiles, motorcycles, motorbike engines and bicycles. MEBEA was founded in Athens in 1960 by the merger of two companies assembling motorbikes since 1954, and its initials stand for Messogiakai Epiheiriseis Biomechanics, Emporiou kai Antiprosopeion

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Motoemil

Motoemil (not to be confused with companies from other countries with the same name) was a Greek truck manufacturer based in Thessaloniki. It is named after Emilios Antoniades who started his business, together with his brother Konstantinos, by constructing crude-made trucks assembled from motorcycle and automobile parts.

Ros (vehicles)

Ros (its badge was only in Greek, the brand spelled 'ΡΩΣ') was the trade name of vehicles produced by the Greek company 'Stavros Konstantinides O.E.', based in Athens. The Ros three-wheeler trucks were the most successful of its kind in Greece, having been produced by the thousands.

SAM (vehicles)

The name SAM (not to be confused with S.A.M., a Swedish automotive company) stands for Stephanos A. Mbaltas (badge 'ΣΑΜ', in Greek, appearing in the logo), the founder of this Greek company, one of several that produced three- wheeler trucks in that country, in business between 1966 and 1974.

Styl Kar

STYL KAR (its logo written in Greek as ΣΤΥΛ ΚΑΡ) was named after its founder, the very talented engineer Stylianos Karakas anis. Its entire history is representative of a large number of Greek companies who were engaged in the

186 construction of simple utility vehicles. The first transformations of motorcycles into "trucks" in the country probably took place in the early 1940s by workshops in Athens, when Greece was still under occupation by the axis powers. Immediately after the war a large number of British (Norton, BSA), Italian (Moto Guzzi), and mostly German (Zundapp, BMW) motorcycles were left, along with destroyed U.S.

(3) Greece Present Position and Trend of Business import & Export

187 imported commodities are machinery, transport equipment, fuels and chemicals. Not only was fuel oil the number one U.S. export to Greece last year, American fuel oil shipments of fuel oil to Hellas (informal nickname for Greece) was up by an amount 100 times greater than in 2007.grees exported in military aircraft parts $ 20.5 million up 22.2% Last year, Greek exports to India to $998.9 million. Over that same period, Greece bought $1.9 billion worth of India imports – a milder decrease of 8.5%.

CHIEF EXPORTS:

Manufactured goods, foodstuffs and beverages, fuels.

CHIEF IMPORTS:

Manufactured goods, foodstuffs, fuels, chemicals.

GROSS DOMESTIC PRODUCT:

$149.2 billion (1999 EST.).

BALANCE OF TRADE:

Exports: US$12.4 billion (1998 EST.). Imports: US$27.7 billion (1998 est.).

• Germany 12.1%

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• Italy 11.7%

• Russia 7.4%

• India 3.2%

• China 5.6%

• France 5.1%

• Netherlands 4.7%

India’s Exports to India’s Imports Year Total Trade Greece from Greece 2006-07 209.49 881.47 671.98

2007-08 530.95 126.81 657.44

2008-09 878.43 69.49 947.92

2009-2010* 452.80 154.13 606.93

(3.1) Comparative Trade and Advantages

189 almost 200 times the value of Greek civilian aircraft products clearly shows that

America has a comparative advantage in exporting civilian aircraft to Greece.

(4) Policies and Norms of Greece of vehicle industry for import & export

(4.1) Licensing & permissions

and basic commodities that might require export permits could be identified by accessing the Department and agency web sites listed in the profile.

Certain products require special documents: food products need a certificate of health in Greek; electric materials and construction equipment/machinery need a certificate of conformity to EU directives; grapes, alcoholic beverages and 190 tobacco need a certificate of authenticity. Certificates of origin may also be required if the origin can in any way be attributed to a country subject to quantitative or other restrictions.

(4.2) Export & Import Standard

Greece has established specific certification for certain products. This "homologation" involves cumbersome product testing by approved laboratories. However, a product that meets the standards and certification requirements of any other EU country can be imported and sold in Greece without further testing. Greek homologation requirements remain in force for computer keyboards and screens, dot matrix printers, Teleprompters, medical equipment, electric typewriters, telecommunications equipment, motor vehicles, bicycles, pleasure boats, gas connectors, etc.Greece uses NP EN ISO 9000 Standards, which are equivalent to ISO 9000 standards. Exporters must demonstrate through a certifying entity that the products offered meet equivalent quality standards. Greece allows the entry of used equipment, material and goods. However, they are subject to the same standards concerning safety as apply to any new import. Additionally, there may exist regulations specific to the particular type of equipment, such as computers and peripherals, that is being imported.

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(4.3) Taxation structure

Customs Valuation

Import Duty Rate

States.Greek customs values shipments at C.I.F. prices. Import duty rates are divided into two classifications: Most Favored Nation (MFN) and General. Import duties are calculated on ad valorem basis, i.e. expressed as a percentage of the value of the imported goods. There are three primary entry types for importing into Greece:

1. Standard clearance procedure

2. Simplified clearance procedure

3. Simplified declaration procedure

The first two procedures apply to all shipments regardless of value; the third one

192 applies to shipments of commercial samples valued below 45 EUR or gifts valued below 23 EURO and/or to negligible value shipments below 22 EURO and provides Duty and Tax relief.

Below is a summary of the new rules for EU demonisms value that enter into effect December 1, 2008:

• A commercial shipment below 22 Euros: no duty and no VAT collected.

• A commercial shipment between 22 Euros and 150 Euros: no duty but

VAT is collected.

• A commercial shipment over 150 Euros: duty and VAT are collected.

Antidumping

Excise Duties

Excise duty rates may also be applicable on certain items such as alcohol and tobacco. For further information, please contact the Greek Customs Office.Excise taxes are assessed against certain commodities, which are normally identified as "luxury" goods. The excise tax is normally assessed against tobacco products, perfumes and alcohol products but can also be assessed against other goods as deemed by Greek regulations. A 12% admissions tax is applied on all motion pictures.

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Additional Duties

Countervailing

Watch Duty Rate

Import Taxes

In addition to duties, goods imported into Greece are also subject to a value- added Tax (VAT) which is generally charged at one of three rates:

3. The reduce rate of 4% applicable to books and newspapers.

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(4.4) Customs Fees

Invoice Fee

Examination Fees

(5) POSITION OF AUTO INDUSTRY IN INDIA

195

KOLKATA - Not long ago, India's auto industry was a laughing stock. Its two best-known cars were a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. But that was then. Today, for instance, the Mumbai-based Dilip Chhabria Design Pvt Ltd (DC Design) is seeking to take on Pininfarina and Bertone, the Italian standard in international car design, by designing and building concept cars, prototypes and limited- production runs. Nor is DC Design alone."There can be few more improbable automotive stories than the yarn about the Indian designers creating bespoke concept and prototype cars," said the United Kingdom's auto magazine

Passenger car exports have nearly trebled in four years, from 28,122 units in

1998-99 to 71,653 vehicles in 2002-3. The industry expects this to gather steam further ahead because car exports in the first quarter of 2003-4 leapt by 87 percent over the same period in 2002-3. The two-wheeler segment is booming,

too, with exports zooming from 100,004 units last year to 179,000 units in 2002-

3. By 2005, the industry expects 400,000 two-wheelers on foreign shores.

The Indian-made sports utility vehicle Scorpio received a singular response in Detroit early this year, not just for its design but also because of its cheaper price tag. Tata Motors, the country's second-largest car maker's small Indica convinced MG Rover of the UK to sell it to the UK market as the City Rover. Others like Ford's mid-sized car model Ikon, Maruti's Altos and Toyota's Indian- made multi-utility vehicle have found ready buyers in a number of American, European and neighboring countries. India overtook China as the fastest-growing market, with an estimated 29-per-cent jump to about 900,000, the report says.

Nevertheless, according to managing director Jagdish Khattar of Maruti Udyog Ltd. India's largest car maker and a Suzuki joint venture, India still has a long way

196 to go to become a global force. "Indian companies need to first grow the Indian market to acquire economies of scale," he says. China, for instance, consumes four times India's 700,000 annual car sales. Moreover, if Indian companies hope to corner a big chunk of the global market they need to ramp up global presence considerably, say others

PRODUCTION RANKINGS IN INDIA IS 2003 IS 13 AND 2002 IS 15

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(6) Policies and Norms of India for Import or export to the Greece in Vehicle industry

163,132.18 million. The automobile industry in India contributes 3.24% of total exports in the year 2008-2009 compared to 2.75% in the year 2007-2008. Total revenue earn from Greece value in usd million 65.75 in 2007-08 and 127.63 in 2008-09

(6.1) Vehicle registration

share. No of vehicle registration are following.

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Year Cars, Jeeps Goods Other All Vehicles Two Wheelers Buses Units and Taxis Vehicles Vehicles¹

2001 54,991 38,556 70,58 634 2,948 5,795 Thousands

2002 58,924 41,581 76,13 635 2,974 6,121 Thousands

2003 67,007 47,519 85,99 721 3,492 6,676 Thousands

2004 72,718 51,922 94,51 768 3,749 6,828 Thousands

2005* 80,045 57,417 10,460 822 4,053 7,337 Thousands

2006* 88,068 63,487 11,571 879 4,345 7,891 Thousands

2007* 96,808 70,141 12,810 936 4,652 8,464 Thousands

20 08* 106,591 77,588 14,222 1,003 5,018 9,065 Thousands

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(6.2) Taxatio n

India has a well developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are:- Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non- agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities.

Excise Duty

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However, if the kits contain all of seven essential parts, components or sub- assemblies (engine, gear box, chassis, transmission, body/cab, suspension system, front/rear axles), the kits are treated as a finished motor vehicle for purpose of assessing customs duties

Types of Excise Duties

Basic Excise Duty: This is the duty livable under First Schedule to the Central

Excise Tariff Act, 1985 at the rates mentioned in the said Schedule

Special Excise Duty: This is the duty livable under Second Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule. At present this is leviable on very few items.

Additional Duty:

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(7) Present Trade barriers for import & Export of Vehicle industry

Technical Barriers to Trade (TBT's)

Barriers to entry in this industry is high These barriers are study

• The cost of developing high volume production facilities.

• The ability to gain access to technology of major global operators.

• The relatively high competition between established domestic companies and foreign companies.

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(8) BUSINESS OPPORTUNITIES IN FEATURE

• Benchmark BMI's independent automotives industry forecasts to end-2016 on Greece to test other views - a key input for successful budgetary and planning in the Greek automotives market.

• Target business opportunities and risks in the Greek automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Greece.

• Assess the activities and market position of your competitors, partners and clients via our Competitive Landscape Analysis.

Hellenic vehicle industry producing Armed forces Special vehicles, Trolley, Buses (personnel carrier, urban, intercity, coaches), Fire fighting trucks, Truck and trailers, Tank transporters. So in feature company producing other model trucks and military vehicles with increasing capacity and increase the export country.

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Findings

For the studying the global country report following are the finding of Hellenic vehicle industry and Greece.

1. In Greece Population growth rate is lower compare to India so it is good for country because government can take a better decision.

2. In service sector is more developed compare to manufacturing and other sector.

3. In 2006 -2010 India’s export is higher than import so it is good for India.

4. In Greece vehicle industry is not well developed international level and compare to India.

5. In 2000 Hellenic turnover is 54251 millions and company earns gross profit

4450 millions so company is better position.

6. In Greece import vehicle 19% tax rate is applicable so it is critical situation for a vehicle industry.

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Conclusions and Suggestions

Greece is facing financial crisis due to that Greece is currently in deflation.

Greece does the privatization to pay down some of the debt, so Greece is supporting service sector. e.g. Telecom sector.

Due to crisis Greeces new democracy government has already auctioned stakes in Greeces largest ports in piraehs and Thessaloniki.

There are no major trade relation between Greece and India, but some companies in the field of IT and construction are leading the way. The following Greek companies are operating in India - (i) The Pisani Group, (ii) M.J. Mallis & Co., (iii) European Dynamics and (iv) Frigoglass. The following Indian companies are operating in Greece: Infosys, TCS, I-flex, Jain Irrigation Systems, Quoprro Global Services, and Tata Steel. Indian Register of Shipping has also opened an office in Piraeus in Greece.

Greece is a full member of the European Union and applies the E.U. tariff schedule so Mobile Telecommunication in Greece is provide a connectivity level over 168% and is considered one of the most successful mobile communication services in the world.

Vodafone is playing a significant role in enabling a low carbon future that means

Vodafone try to make environment friendly.

Business opportunity is more because telecommunication sector is grow in 205

Greece as well as in india. So Vodafone wants to provide more and more services like broadband, mobile web, 3G, 4G, with much penetration.

We have observed that there are big differences in Indian firm and the Greece firm. In the Greece all people believe in small scale business. The namco has a good Greece market but we also like to say that namco try to expand the whole business in all over the world market.

Today we fill great and much more experience after undergoing global country report. And we know the business strategy use in different country.

The main purpose of prepared Global country report is to know trade policy and import export policy as well as government structure and licensing registration of the Greece and Hellenic vehicle industry. Vehicle industry is most important growing now. In Greece.hellenic vehicle earn 4450 million profits in 2009. Govt have to more duty charged when they exported and imported the vehicle to other country, the government taxation structure is very critical and licensing and registration processor is time consuming in Greece the auto industry is not well developed compare to India India 2003 13th rank of vehicle production.greece

govt have to promote the vehicle industry and changing structure and format because the Greece is not covered big market of auto mobile in international level.

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