<<

―EDUCATION & CULTURE SYSTEM AND “ANALYSIS OF CHEMICAL INDUSTRY IN

CULTURE SYSTEM IN BELGIUM

The People Belgium is comprised of two primary cultural groups. The Dutch-speaking Flemings live in , in the north, and make up 55% of the population. The French-speaking live in , in the south, and make up 33% of the population. Hard work and an appreciation for culture are important values to , who think of themselves as Europeans first, Walloons or Flemings second, and Belgians third. Strong family systems are vital to Belgian society. Extensive families live in separate homes, but often settle in or close to the town where they were raised.

Meeting and Greeting:

Shake hands with everybody present -- men, women, and children -- at business and social meetings. Shake hands another time when leaving.

Repeat their name when being introduced. Language:

Dutch, French and German are all spoken in Belgium.

Speak English if in doubt. There is no place in where you can get in greater difficult by using the incorrect language than in Belgium.

The language of choice for negotiators in is English. French is also commonly used. Body Language:

It is measured bad manner to break their fingers.

Do not put their hands in their pockets, yawn, and scratch or use toothpicks in public.

Feet should never be put on chairs or tables.

Back slapping is considered unpleasant.

The "okay" sign means ―zero‖. Corporate Culture:

Belgians take timekeeping for business meetings very seriously. Call with a clarification if they are late.

Present their business card ahead meeting. Business cards in English are acceptable.

Belgians tend to meet people for a short period of time before they get down to business at meetings.

Initial meetings are generally for getting familiar and developing trust. Business meetings are formal. Personal relationships follow business relationships.

Belgians are known for compromise, cooperation, negotiation and common sense. They grateful for clear facts and records.

In Flanders, business organization is generally straight and simple. Participatory management, active consensus and delegation of responsibility are common in the workplace.

Walloons prefer structure, formal organization, clear structure systems and directive leadership. Rules and procedures are important to Walloons, as are job titles and rank.

It is not acceptable to call a Belgian business person at home if there is an emergency.

Dining and Entertainment:

Business lunches are common; business breakfasts are rare.

To beckon a waiter or waitress raise your hand and make eye contact.

Keep your hands on the table at all times during a serving of food -- not in your lap. However, keep your elbows off the table.

Accept any drink offered by your host. Don't ask for a drink not offered.

Hosts seat guests. Husbands and wives are generally not seated together.

Hosts and hostesses sit at opposite ends of the table.

A male guest of honor is seated to the right of the hostess; a female guest of honor is seated to the right of the host.

Wait to drink until your host offers the first toast.

The guest of honor is generally expected to offer a toast.

Belgians are careful and do not appreciate waste. Finish all the food on their plate.

Knife and fork are placed side by side on the dinner plate at the 5:25 position when they are finished eating.

It is considered bad-mannered to ask for a tour of your host's home. Belgian-Society-&-Culture: Belgium is not a standardized country with one national uniqueness. As such, it is so difficult to give a general overview that applies to all Belgians. Each area will have its own particularities. The three major cultures are: 1) North, Flanders - primarily Dutch, 2) South, Wallonia - primarily French and 3) Northeast - primarily German influenced. Belgian Family Values: Family plays a central role in most Belgian‘s life. The compulsion to the family is a person's first priority. Many people stay in the town in which they were raised, which creates close extensive families. Social equality in Belgian Society: Belgium is on the entire a democratic society. Women are not expected to change their name when they get married. There are laws governing paternity as well as maternity leaves and laws forbidding sexual irritation in the workplace. CULTURE SYSTEM IN INDIA

The culture of Indian culture can be best expressed as comprising the following

RELIGIONS SIZE Hinduism 80% Islam 13% Christians 23 million Sikhs 19 million Buddhists 8 million Jains 4 million Others 2 million

Family structure and marriage: India has had a prevailing tradition of the joint family structure. It is a structure below which extended members of a family – parents, children, the children‘s spouses and their offspring, etc…live together. Generally, the oldest male member is the chief in the joint Indian family structure. He makes all important decisions and rules, and other family members stand by them. Greetings: Namaste‘ namaskar or Namaskara(Kannada) or Namaskaram (Telugu, Malayalam), Vanakkam (Tamil),Nomoshkaar (Bengali), Nomoskar (Assamese) is a common spoken greeting or salutation, though becoming considered old-fashioned by some. Namaskar is considered a little more formal version than Namaste but both express deep respect.

Festivals: India being a multi-cultural and multi-religious society, celebrates holidays and festivals of different religions. The four national holidays in India, the Independence Day, the Republic Day, the Gandhi Jayanti, and May Day are celebrated with zeal and enthusiasm across India. In addition, many Indian states and regions have local festivals depending on prevalent religious and linguistic demographics.

Names and language: Indian names are based on a multiplicity of systems and naming conventions, which vary from region to region. Names are also influenced by religion and caste and may come from the Indian epics. India's population speaks a large variety of languages such as: Hindi, Gujarati, and Bengali · Bhojpuri, English COMPARISON BETWEEN INDIAN AND BELGUIME CULTURE

India Belgium

People Indian people or Indians are Belgium is comprised of two people who are citizens of primary cultural groups. The India, which forms a main part Dutch-speaking Flemings live in of South Asia, containing Flanders, in the north, and make 17.31% of the world's up 55% of the population. The population French-speaking Walloons live in Wallonia, in the south, and make up 33% of the population.

Meeting and Westerners may shake hands, Shake hands with everyone Greeting however, greeting with present -- men, women, and 'namaste' (an-mass-TAY) children -- at business and social (placing both hands together meetings. Shake hands again with a slight bow) is when leaving. appreciated and shows respect Repeat your name when being for Indian customs. introduced Men shake hands with men when meeting or leaving. Men do not touch women when meeting or greeting. Western women may offer their hand to a westernized Indian man, but not normally to others. Traditional Indian women may shake hands with foreign women but not usually with men.

Language The certified language of the Dutch, French and German are all Republic of India is Standard widely spoken in Belgium. Hindi, while English is the secondary

Body Language Indians usually allow an arm's It is considered impolite to snap length space between your fingers. themselves and others. Don't Do not put your hands in your stand close to Indians. Indians pockets, yawn, and scratch or use value personal space. toothpicks in public. Do not touch anyone's head. Feet should never be put on chairs The head is considered or tables. sensitive. Back slapping is considered offensive. The "okay" sign means zero.

Corporate Culture Decisions are strongly Belgians tend to socialize for a influenced from the top. short period of time before they Usually one person makes all get down to business at meetings. major decisions. Attempt to Initial meetings are generally for deal with the highest-level getting acquainted and developing person available. trust. It is considered rude to plunge Business meetings are formal. into business discussions Personal relationships follow immediately. Ask about your business relationships. counterpart‘s family, interests, Belgians are known for hobbies, etc. before beginning compromise, negotiation and business discussions. common sense. They appreciate Business is slow and clear facts and figures. complicated in India. Be In Flanders, business organization polite, but persistent. Do not get angry if you are told is generally horizontal and something "can't be done." simple. Participatory Instead, restate your request management, active agreement

firmly but with a smile. Plan and allocation of responsibility on several visits before you are general in the workplace. reach an agreement. Walloons prefer structure, formal

You may be offered a sugary, organization, clear hierarchical milky tea, coffee or a soft systems and directive leadership. drink. Don‘t refuse. Note that Rules and procedures are

your glass or cup may be important to Walloons, as are job refilled as soon as it is titles and rank. emptied. It is not acceptable to call a Indian counterparts may not Belgian businessperson at home show up for planned meetings. unless there is an emergency. Be prepared to rearrange.

Dining and Strict accepted Muslims don't Accept any drink offered by your Entertainment drink any alcohol. Most host. Don't ask for a drink not Hindus, especially women, do offered. not consume alcohol.

Dress For business, men should Belgians dress conservatively.

wear suits and ties. During For business meetings, men summer months, you may should wear dark suits and ties. omit the jacket. Women should wear suits, dresses Women should wear or skirts and blouses.

conservative pantsuits or dresses.

EDUCATION SYSTEM IN BELGUIME

Structure of education system

Education School/Level Age Age Yea Notes Fro To rs m

Primary Primary 6 12 6 Getuigschrift van Lager Education Onderwijs (Primary Education Certificate)

Secondary General 12 18 6 Diploma van Secundair Secondary Onderwijs (Secondary Education (ASO) Education Diploma)

Secondary Artistic 12 18 6 Diploma van Secundair Secondary Onderwijs (Secondary Education (KSO) Education Diploma)

Secondary Vocational 12 19 7 Diploma van Secundair Secondary Onderwijs (Secondary Education (BSO) Education Diploma)

Technical Tertiary 12 19 6 Diploma van Secundair Secondary Education (TSO) Onderwijs (Secondary Education Diploma)

Tertiary 12 18 2 2 - 3 year programs Before 2004/2005: Kandidaat cycle. A Kandidaat degree was obtained after two- to three- year basic university training. In the fields of Kandidaat and Philosophy, Theology and Bachelor's degree Canon Law the degree - University level conferred was the first stage Baccalaureus.From 2004/2005, the academic bachelor's degree (180 ECTS) prepares students for advanced studies at master's level.

Tertiary Tertiary

Tertiary 2 2 - 3 year program. From Licentiaat - 2004/2005, the master Master's degree - programmed in at least one University level year (60 ECTS) was second stage introduced.

Tertiary 2 Since 2004/2005 the highest level of specialization is the Doctoral studies doctorate degree and is only awarded by universities.

. EDUCATIONAL SYSTEM IN INDIA ―Education in India is mainly provided by the public sector, with control and funding coming from three levels: federal, state, and local. Child education is compulsory. The Nalanda University was the oldest university-system of education in the world…‖

(India Higher education System)

(Development education in India)

Education system in India India's education system is divided into different levels such as pre-primary level, primary level, elementary education, secondary education, undergraduate level and postgraduate level.

It is provided by the public sector as well as the private sector, with control and funding coming from three levels: central, state, and local. The Nalanda University was the oldest university-system of education in the world. Western education became ingrained into Indian society with the establishment of the British Raj.

Education in India falls under the control of both the Union and the states, with some responsibilities lying with the Union and the states having autonomy for others. The various articles of the Indian provide for education as a fundamental right. Most universities in India are controlled by the Union or the State Government. The National Council of Educational Research and Training (NCERT) is the apex body for curriculum related matters for school education in India. Primary education

According the Indian government in 2011 there were 5,816,673 elementary school teachers in India.

Comparison of India’s vs. Belgium’s education

India Belgium

Adjusted saving: 3.99 % of GNI 3.04 % of GNI education expenditure > Ranked 88th ,31% more than Ranked 119th % of GNI Belgium Average years of 5.1 9.3 schooling of adults (Ranked 65th ) (Ranked 17th ,82% more than India) Secondary education The National Policy on Namely general Education (NPE), 1986, has secondary schools, provided for environment technical secondary awareness, science and schools, vocational technology education, and secondary education introduction of traditional schools, and art elements such as Yoga into the secondary education Indian secondary school institutions. system. Duration of compulsory 8 year 13 year education Duration of education of 6 year 6 year primary level Duration of education of 5 year 6 year secondary level Education primary 68 79 completion rate Education enrolment by 11295041 374532 level tertiary level Education spending(% of 4.1% 6.3% GDP) Pupil teacher ratio, 40.2 11.57 primary Tertiary enroiiment 10.5% 57%

CHEMICAL INDUSTRY

Chemical industry is one of the key industries in contribution to the world economic output and employment. The chemicals industry is a diversified sector. In addition to basic chemistry, the sector also includes plastics and rubber processing, pharmaceuticals and biotechnology, cosmetics, soaps and detergents as well as paints and varnishes. The Belgian chemicals industry is one of the most diversified and integrated chemicals clusters in the world.

The share of the chemical industry in the total Belgian economy is twice the size of the average in the and even bigger than in the traditional chemicals country . Belgium has a strategic location in the heart of Europe, and serves as residence to the European Union and the North Atlantic Trade Organization. Internationalized and leading the world in per capita exports, it offers a well-educated and trained labour force, multi-lingual and strongly committed to high productivity and Quality.

Belgium is situated at the junction between the Latin based and : French, Dutch and German. In Recent years, Belgium‘s GDP level has placed it in the top 20 for all countries of the world. Belgium is heavily into exports, in fact, around 50 per cent of the produce generated is exported. The law on the Use of Languages stipulates that all statutory documents and all documents be reserved for the personnel must be drawn up in the language of the region in which the company has its centre of business.

Although business practices differ from product to product, the life cycle contains the same fundamental elements. It starts with research and development, consulting services, procurement of raw materials and manufacturing, and then moves into distribution, marketing and advertising and sales in the destination market.

Chemical industry is spread around the country and thus the employment density is fairly varied. A majority of jobs are found in the urban areas, in central Flanders and the Northeast. In contrast, the southern region is completely non-industrialized. The Belgium industrial sector experienced a growth rate of 2%, which put Belgium in the 51st position globally in 2009.

Belgium Competition Law is, in most respects, modeled on the EC competition rules and Draws heavily on the relevant EC Treaty provisions and implementing regulations for both Substantive and procedural matters. Helping clients navigate the commercial and legal complexities of this life cycle is the mission of our Trade & Commerce Practice. Success in today‘s global economy requires companies, in all sectors, to compete effectively in international markets.

U.S. free trade initiatives, from existing agreements such as NAFTA and the Korea-U.S. FTA to prospective agreements such as the Transpacific Economic Partnership (TPP) and a potential U.S.-EU FTA, are critical to boosting the U.S. chemical manufacturing sector‘s competitiveness while also driving wider economic growth. Essences is working for the reduction, if not elimination, of customs tariffs on chemical products in all countries with a viable chemical industry.

Chemical industry is developing at a steady rate worldwide. In EU Chemical Industry in 2007 has 2.1% growth. As would be expected, Belgium is very heavily reliant on international trade and foreign investment. Its geographic location and prominent position within the EU structure has made the country and Brussels in particular, a haven for inward investment.

As the country is currently going through this change process from strict hierarchical alignments to a more matrix approach, it is dangerous to make any assumptions about a potential client or collaborator in advance.

The Belgian government has tried, through the use of tax incentives and other measures, to foster an environment beneficial to the development of a flourishing private sector economy.

The Operating Segments reflect the different business models most adequate to the diverse business drivers and competitive dynamics across the Group's portfolio, ensuring focus on the critical levers for success.

In the Indian chemical industry, alkali chemicals enjoy the highest contribution in the total production. Since FY02-FY09, the representation of alkali chemicals in the total production has been around 70%, followed by organic chemicals at around 20%.

In the organic chemicals segment, the share of carbon black has been over 70% of the total production since FY04 whereas in the inorganic chemicals segment, out of the 19 products, methanol, acetic acid and acetaldehyde constitute over 50% of the total production In the case of alkali chemicals, soda ash has been enjoying the highest share in total production since FY03. However, from FY08, the production of caustic coda has been surpassing soda ash; the contribution of caustic soda increased to 38% in FY09 from 29% in FY04. Due to the attractive incentives available to chemical producers in China, their products are comparatively cheaper in the global markets, and give a tough competition to Indian chemical players. During FY03-FY08, organic chemicals had a dominating share in imports and contributed an average of around 57% in the total volume of imports. Thus, the production level of organic chemicals has been stagnating, even though the capacity of organic chemicals is being added since FY04.

The Indian chemical industry is endowed with availability of low cost labour. The allied industries such as leather, plastics, food processing, rubber, textiles offer huge growth opportunities in the long term for the chemical industry. Besides, the government is also undertaking several initiatives to sustain the growth of the industry.

The promotion of Special Export and Investment Zones, SEZs, cluster development and monetary incentives through fiscal and policy initiatives will foster the growth of the industry. Infrastructure sector has gained significant importance and is a priority focus of the government. Thus, the increased spending on infrastructure will help in reducing the infrastructural bottlenecks in the long run. However, issues like inadequate technologies, skilled labour, environmental norms and need to innovate remain a threat to the industry.

The exports during the first quarter (April – June) of 2006-07 were valued at US$ 1.32 billion. Major markets for Indian organic chemicals include USA, China, Indonesia and Germany. The share of USA market in India‘s exports was around 11%. Inorganic chemicals are substances of mineral origin, but not of basically carbon structure. These include nitrate, fluoride and metals. Inorganic chemicals are mostly used in detergents, soaps, and fertilizers. India is also an importer of chemical products; India‘s chemical imports are either for the purpose of further processing in the chemical industry or for usage as intermediates in other manufacturing sector. Overall the terms of trade have been negative in inorganic and organic chemical sectors, the two major product groups traded by India.

The Indian chemical industry is having a fragmented structure with more number of units in small- scale sectors spread in various parts of the country. The installed capacities in most of the small-scale units are smaller as compared to global scales. The areas for R&D in chemical industry include improvements in manufacturing process for reduction in cost of production, application development to diversify demand, and new product development. The level of R&D investments in the Indian chemical sector is low at around 0.3% of total sales.

Information technology is also increasingly used in the area of R&D, especially in collaborative research. The usage of information technology in Indian chemical industry is relatively lower, as most of the units are in the small-scale sector. Indian chemical producers, excepting a few large producers, generally sell their products as generic products without brand development. There is also low level of interest amongst small-scale producers for brand development, product development as also market development.

In the supply chain, the critical infrastructure requirements include a good port, chemical storage terminal, and adequate berthing facilities. In the above context, it is being felt that the production and export earnings of this sector would receive a quantum jump if an industrial estate dedicated to the chemical industry could be set up.

At present, each unit has to create specialized facilities on its own which leads to duplication of efforts and investment. If chemical units are clustered in close proximity, the required infrastructure could be vertically integrated resulting in cost reduction.

In the bulk products segment, the chemical industry should undertake process innovation with the objective of reduction in cost of production. In addition, the industry needs to invest in technological resources that would lead to specialized product development.

Indian chemical industry has a good record of management expertise. This could be further leveraged with techniques such as Good Manufacturing Practices, Good Laboratory Practices, Total Quality Management, Total Production Management and Risk Management. Since chemical substances are used in manufacture of consumer items such as paint, glue, insect spray, cosmetics and household cleaners, chemical producers have the responsibility in promoting safe management of substances – starting from design in production to end-use, and their final disposal (hazardous waste).

In fact, environmental regulations were the principal reason for the relocation of manufacturing facilities from developed to developing countries. It may be mentioned that in addition to the chemical industry, government and community also have major role(in terms of preparedness for, and response to chemical accidents) to ensure chemical safety in a broadest sense.

The basic chemical sector should focus on process innovation and product development and strengthen their competitiveness through improvements based on performance and quality of products Firms in knowledge based chemical sector should focus on R&D with the objective of achieving product leadership and process innovations. Collaboration with firms across borders for technology and investment would also give a boost to the industry. In addition, the players should also achieve greater level of industry-institutional partnership for knowledge development and sharing.

Increasing use of IT to transact business will also help the sector, as most of the products in the chemical sector are commoditized. The new trend in chemical industry is competing through consolidation Chemical firms, through mergers and alliances are now achieving economies of scale all over the world. Consolidation helps the chemical industry in reduction of cost in their procurement and production.

An analysis of the global chemical industry shows that mergers and acquisitions have helped the combined entities consolidate their position in the market and enhance their revenues. For transforming ideas into new products, partnership between industry and academia is a must. Thus, Indian chemical industry should leverage the potential of educational and research institutions to source intellectual as well as human capital. Such linkages may be effectively used for setting up of in-house R&D facility or for outsourcing R&D activities.

The industry may Endeavour to concentrate more on issues such as brand building, export promotion and market development. Many chemical products are still reserved for production under small-scale sector. However, cost competitiveness as well as technological compliance cannot be achieved without operating under scale economies. Per capita chemical consumption in India is low as compared to world standards (estimated to be one-tenth of world average). Increasing consumption level in the domestic market would ignite the prevailing latent demand. A country‘s export may grow due to four factors: (1) Growth of world export; (2) change in direction of trade; (1) Change in commodity composition; and (4) An increase in global competitiveness.

If the product lines, where India concentrates, are in the final stage due to higher substitution possibilities at the consumption point the demand would be more price-sensitive and with a decline in relative price value of total transaction would go up. On the other hand, if India specializes in an intermediate product/ process then due to specific tie-ups with the follow up stages the substitution possibilities would be weaker and consequently the price-sensitivity would be lower. Here, the RCA value would be small and the products will be vertically differentiated in terms of quality (value).

The players must focus on specializing in their areas of expertise in line with the global trend. Innovation is gaining importance as it enables focus on core competence and enables players to lead in specialty products. The idea is to focus on one‘s core competency and select business segments where competitive advantage exists.

Logistical bottlenecks, high raw material and fuel prices and anti-dumping activities are posing a threat to the industry in the short run. Thus technology up gradation, access to skilled manpower and funds at a reasonable cost, adequate infrastructure support and economical input costs are essential for the sustained growth and development of the Indian chemical industry.

However, non-tariff barriers associated with environmental issues are influencing the chemical imports by developed countries. India has been increasing its export of chemical products in the recent years.

India Chemical Industry Comparative Analysis and Companies Ranking provides a complete overview of industry‘s affairs. All available data is presented in a comprehensive and easily accessed format. The report provides our Clients with a clear understanding of industry current state and future development.

Scope

The report contains India Chemical Industry general statistics, including industry volume by sales and income, and industry dynamics within the recent period. India Chemical Industry structure by company is included as well, establishing extent of market concentration and evaluating companies‘ market shares. The report provides detailed industry comparative analysis, using interrelated data on major companies. The areas under consideration are as follows: company strategic position in the industry, profitability and margin analysis, assets turnover and credit ratios reviews, long-term solvency indicators, growth trends comparison. Company rankings by size, value, profit margin and growth history are presented, thus giving a full picture of each company mentioned. The report provides relevant news, an analysis of PR-activity, and stock price movements. The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts are given by a variety of experts and market research firms.

Non-tariff barriers to trade (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB's are anti-dumping measures and countervailing duties, which, although called non-tariff barriers, have the effect of tariffs once they are enacted.

Their use has risen sharply after the WTO rules led to a very significant reduction in tariff use. Some non-tariff trade barriers are expressly permitted in very limited circumstances, when they are deemed necessary to protect health, safety, sanitation, or depletable natural resources. In other forms, they are criticized as a means to evade free trade rules such as those of the World Trade Organization (WTO), the European Union (EU), or North American Free Trade Agreement (NAFTA) that restrict the use of tariffs.

Some of non-tariff barriers are not directly related to foreign economic regulations but nevertheless have a significant impact on foreign-economic activity and foreign trade between countries.

Trade between countries is referred to trade in goods, services and factors of production. Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Sometimes in this list they include macroeconomic measures affecting trade.

―Environmental & Geographical issue & Study the Pharmaceutical industry in Belgium”

Environmental Issues in Belgium.

 Acidification - the lowering of soil and water pH due to acid precipitation and deposition usually through precipitation; this process disrupts ecosystem nutrient flows and may kill freshwater fish and plants dependent on more neutral or alkaline conditions (see acid rain).

 Acid rain - characterized as containing harmful levels of sulfur dioxide or nitrogen oxide; acid rain is damaging and potentially deadly to the earth's fragile ecosystems; acidity is measured using the pH scale where 7 is neutral, values greater than 7 are considered alkaline, and values below 5.6 are considered acid precipitation; note - a pH of 2.4 (the acidity of vinegar) has been measured in rainfall in New England.

 Aerosol - a collection of airborne particles dispersed in a gas, smoke, or fog.

 Afforestation - converting a bare or agricultural space by planting trees and plants; reforestation involves replanting trees on areas that have been cut or destroyed by fire.

 Biodiversity - also biological diversity; the relative number of species, diverse in form and function, at the genetic, organism, community, and ecosystem level; loss of biodiversity reduces an ecosystem's ability to recover from natural or man-induced disruption.

 Bio-indicators - a plant or animal species whose presence, abundance, and health reveal the general condition of its habitat.

 Carbon cycle - the term used to describe the exchange of carbon (in various forms, e.g., as carbon dioxide) between the atmosphere, ocean, terrestrial biosphere, and geological deposits.

 Catchments - assemblages used to capture and retain rainwater and runoff; an important water management technique in areas with limited freshwater resources, such as .

 Defoliants - chemicals which cause plants to lose their leaves artificially; often used in agricultural practices for weed control, and may have detrimental impacts on human and ecosystem health.

 Deforestation - the destruction of vast areas of forest (e.g., unsustainable forestry practices, agricultural and range land clearing, and the over exploitation of wood products for use as fuel) without planting new growth.

 Desertification - the spread of desert-like conditions in arid or semi-arid areas, due to overgrazing, loss of agriculturally productive soils, or climate change.

 Dredging - the practice of deepening an existing waterway; also, a technique used for collecting bottom-dwelling marine organisms (e.g., shellfish) or harvesting coral, often causing significant destruction of reef and ocean-floor ecosystems.

 Drift-net fishing - done with a net, miles in extent, that is generally anchored to a boat and left to float with the tide; often results in an over harvesting and waste of large populations of non-commercial marine species (by-catch) by its effect of "sweeping the ocean clean."

 Effluents - waste materials, such as smoke, sewage, or industrial waste which are released into the environment, subsequently polluting it.

 Endangered species - a species that is threatened with extinction either by direct hunting or habitat destruction.

 Freshwater - water with very low soluble mineral content; sources include lakes, streams, rivers, glaciers, and underground aquifers.

 Greenhouse gas - a gas that "traps" infrared radiation in the lower atmosphere causing surface warming; water vapor, carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, and ozone are the primary greenhouse gases in the Earth's atmosphere.

 Groundwater - water sources found below the surface of the earth often in naturally occurring reservoirs in permeable rock strata; the source for wells and natural springs.

 Inuit Circumpolar Conference (ICC) - represents the 145,000 Inuits of Russia, Alaska, Canada, and Greenland in international environmental issues; a General Assembly convenes every three years to determine the focus of the ICC; the most current concerns are long-range transport of pollutants, sustainable development, and climate change.

 Metallurgical plants - industries which specialize in the science, technology, and processing of metals; these plants produce highly concentrated and toxic wastes which can contribute to pollution of ground water and air when not properly disposed.

 Noxious substances - injurious, very harmful to living beings.

 Overgrazing - the grazing of animals on plant material faster than it can naturally regrow leading to the permanent loss of plant cover, a common effect of too many animals grazing limited range land.

 Ozone shield - a layer of the atmosphere composed of ozone gas (O3) that resides approximately 25 miles above the Earth's surface and absorbs solar ultraviolet radiation that can be harmful to living organisms.

 Poaching - the illegal killing of animals or fish, a great concern with respect to endangered or threatened species.

 Pollution - the contamination of a healthy environment by man-made waste.

 Salination - the process through which fresh (drinkable) water becomes salt (undrinkable) water; hence, desalination is the reverse process; also involves the accumulation of salts in topsoil caused by evaporation of excessive irrigation water, a process that can eventually render soil incapable of supporting crops.

 Siltation - occurs when water channels and reservoirs become clotted with silt and mud, a side effect of deforestation and soil erosion.

 Slash-and-burn agriculture - a rotating cultivation technique in which trees are cut down and burned in order to clear land for temporary agriculture; the land is used until its productivity declines at which point a new plot is selected and the process repeats; this practice is sustainable while population levels are low and time is permitted for regrowth of natural vegetation; conversely, where these conditions do not exist, the practice can have disastrous consequences for the environment .

 Soil degradation - damage to the land's productive capacity because of poor agricultural practices such as the excessive use of pesticides or fertilizers, soil compaction from heavy equipment, or erosion of topsoil, eventually resulting in reduced ability to produce agricultural products.

 Soil erosion - the removal of soil by the action of water or wind, compounded by poor agricultural practices, deforestation, overgrazing, and desertification.

 Ultraviolet (UV) radiation - a portion of the electromagnetic energy emitted by the sun and naturally filtered in the upper atmosphere by the ozone layer; UV radiation can be harmful to living organisms and has been linked to increasing rates of skin cancer in humans.

 Water-born diseases - those in which bacteria survive in, and are transmitted through, water; always a serious threat in areas with an untreated water supply.

Belgium’s relations with border nations

Luxembourg- The Belgian federal government contributed to the development of cross-border cooperation with by participating in negotiations on the new SaarLorLux cross- border cooperation agreement of 23 May 2005. The Unit is responsible for implementing this agreement and for dealing with cross-border issues involving Luxembourg.

France - establishing the West Flanders/Flanders-Dunkirk-Côte d‟Opale European Grouping of territorial co-operation (EGTC) (April 2009).

The - To continue strengthening the ties between the two countries, the Belgian federal and Dutch regularly hold joint Ministerial Council meetings (known as „Thalassa‟ meetings).

Federal Republic of Germany - The Service handles cross-border issues with the German Federal State of North -Westphalia and the Dutch and German governments. Specifically, there is the important matter of the „‟ freight railway corridor that is intended to connect the Port of with its hinterland in Germany.

Benelux - The Service also serves as the secretariat for Benelux activities. It is the point of contact for Benelux matters within the Administration. At Belgian level, the Service chairs the administrative working parties within the Benelux General Secretariat. It also organises the internal consultation meetings with the Regions and Communities and represents the federal government during negotiations on the new Benelux Treaty and the revision of the convention establishing the Benelux Parliament, with a view to modernising that institution.

PRESENT TRADE RELATIONSHIP WITH INDIA

Visiting deputy prime minister of Belgium Didier Reyneders said at a gathering of industrialists in New Delhi that his country would invest in water, waste treatment, renewable energy, life sciences and hospital sectors. India‟s infrastructure needs huge investment in next 10 years.

“We can provide expertise in designing, construction and management of hospitals, both in the public and private sectors,” said Reyneders at the function organised by the of Indian Chambers of Commerce and Industry.

Economic and Trade Relations

 Belgium is one of India‟s important trading partners in the EU.

 Trade in gems and jewellery constitutes around 70% of bilateral trade.

 India‟s Information Technology sector is well represented in Belgium, with all the big IT companies having their establishments.

Indian Community in Belgium

According to information received from the local Government, the total number of Indians up to the year 2010 were around 16,132, of whom nearly 10,000 had obtained Belgian citizenship.

There are around 500-1000 Indian students pursuing studies in educational institutions of Belgium.

India’s International Trade Towards Increased Global Integration through Trade

Source: Ministry of Commerce & Industry, Government of India

India’s Major Trading Partners

Source: Ministry of Commerce & Industry, Government of India

SWOT Analysis

 Strengths

English-speaking manpower

Qualified scientists/technicians/management

Manufacturing facilities

Substantial promoting & submission

Important ability to circumvent API Patents

 Weaknesses

Low opportunities inside innovative R&D

Diffused character in the American indian pharmaceutical business

Solid linkages between business and academia

Comparatively smaller home-based industry

Income and promoting know-how is actually limited

 Opportunities

Indian is actually confronted with important export prospects

Cost benefit

Licensing works with MNCs

Marketing and advertising alliances

 Threats

Home-based business unless it spends inside exploration and improvement.

Medicine Price

Foreign trade

PESTLE Analysis

Political environment several amounts of Government- Federal government stage, state stage along with community stage.

Economic environment

Germany is really a very designed state having huge commercial ability. It is the world‟s sixth biggest economic climate (GDP $3. 629 trillion) which is one of the most important marketplace in EUROPEAN.

Social environment

Germany could be the most populated land connected with EUROPEAN.

 Technological environment

Infrastructural establishments are extremely robust in Germany which often makes it possible for this growth connected with virtually any small business in the united kingdom

 Environmental factors

In case a start up business needs to key in then it offers in order to combine themselves having community shops along with vendors.

 Legal environment

lawful program in Germany prescribes tight manual work laws having strict regulations in opposition to lay-offs. Legislation also causes it to be compulsory with the small business to write economic reports whether or not the company just isn't freely shown.

Conclusion

As a pharmaceutical Player what business should be done?

We should go for Export business.

Following are the reason for it :-

1. Labor cost

2. Raw material cost

3. cheap machinery

4. cheap land and buildings

5. Utilities (water & Electricity)

6. transportation

7. Government tax benefits

8. Foreign currency

9. less competition

10. Expertise Skills.

11. Good Financing Facility.

―EXPORT IMPORT OPPORTUNITY OF DAIRY INDUSTRY BETWEEN INDIA & BELGIUM ‖

INTRODUCTION:

In simple terms, import means anything like any goods or services we buy or bring in our country from foreign country. Export means anything (goods or service) provided to foreign consumers by domestic producers.

The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import.

This term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter".

Export of commercial quantities of goods normally requires involvement of the customs authorities in both the country of export and the country of import. The advent of small trades over the internet such as via Amazon and e-Bay has largely bypassed the involvement of Customs in many countries due to the low individual values of these trades. These small exports are still subject to legal limitations applied by the country of export.

No doubt that in the age of globalization and liberalizations, Export has became of the most lucrative business in India. Government of India is also supporting exporters through various incentives and schemes to support Indian export for meeting the much desirable requirements for importing modern technology and adopting new technology from MNCs through Joint ventures and collaboration.

In export Strengths have consider that Business strengths are its resources and capabilities that can be used as a basis for developing a competitive benefit. Cost advantage by proprietary know-how. Powerful brand names.Good reputation among customers. Weaknesses have consider that The absence of certain strengths may be viewed as a weakness. Poor reputation among customers. High cost structure.Lack of access toward the best natural resources. Lack of access toward key distribution channel.

Opportunities have consider that The external environmental analysis may reveal certain new opportunities for profit and growth. Loosening of regulation. Removal of international trade barrier. Threats have consider that Changes in the external environmental also may present threats to the firm.

Chocolaty country Belgium‘s strongly globalized economy and its transport infrastructure are integrated with the rest of Europe. Its location at the heart of a highly industrialized region helped make it the world's 15th largest trading nation in 2007. The economy is characterized by a highly productive work force, high GNP and high exports per capital.

What our project focuses mainly on Belgium‘s relationship with India regarding trade i.e. Import-Export relationship. We have gathered information about Belgium‘s overall import-export activity and India‘s Import-Export activity. We have started with the basics of what is import and export? What is balance of payment? How it affects foreign exchange reserves and country‘s currency as well.

Belgium has the highest "quality of life" in the world as testified by its excellent food, housing, health care, education and infrastructure, its world records for high output and low poverty, and the support of foreigners residing in Belgium. For a personal view on what distinguishes Belgium and the Belgian character good living, pragmatism, food and drink, open-mindedness, cooperation, privacy. Belgium is best known for chocolates, waffles, beer, French fries and sea food. Belgium is also known as country of festivals. We should not forget the saxophone which was invented by Adolphe sax of Belgium. It is the first country of European Union. It connects most of the countries of EU.

In 2007 Belgium‘s growth rate is 335,610. In the Current Market it is reach at 381,779.9 and in future it will be probably reached at 396,273.8 EU Member States GDP growth rates In 2005 it was 1.7% .In 2011 it was 1.8 %.Between 2005 to 2011 the total GDP growth rate is 9.9%.

Belgium Growth rate In 2011

Population growth rate 0.06%

Gdp real growth rate 2%

Sector vies rate

Agriculture 0.70%

Industry 21.70%

Service 77.60%

Budget -4.20%

Inflation 3.10%

Compliance with Laws

Comply with the provisions of the Foreign Trade Act 1992.

All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical specifications, environmental and safety norms as relevant to domestically produced goods.

No import or export of rough diamonds will be permitted unless the shipment parcel is accompanied in Kimberley Process (KP) Certificate necessary under the procedure specified by the Gem & Jewellery Export Promotion Council (GJEPC).

Different product have different rules & regulation they have follow all the rules & regulation

Rules and Regulation

Import/export licensing requirements.Goods imported intense on Belgium can be liable to four kinds of import charges: customs duties, agricultural levies, excise duties and VAT.Excise duties are levied on particular goods produced or free in favor of consumption in Belgium.VAT is payable on goods import into Belgium from outside the EU. VAT means value add tax it‖s depend on product and product‖s value

India‘s Exports, Imports and Balance of Trade

The global slowdown had its impact on the economy of almost all the countries including India. The business deficit in 2008-09 was much more (49.72%) compare to the previous two years. As such India‘s trade deficit stood at Rs. 533680 crores during 2008-09 with values of exports and imports at Rs. 840755 crores and Rs. 1374436 crores respectively. However, as may be seen from Table 3.1 below that the position was better in 2009-10 as the trade deficit had decreased (2.90 %) compare to last year. This happened due to the harmful growth of import during 2009-10 (– 0.78 %). The trade deficit in 2009-10 was Rs. 518202 crores with values of exports and imports as Rs. 845534 crores and Rs. 1363736 crores respectively.

India‘s imports in 2009-10 was Rs. 1363736 crores compared to Rs. 1374436 crores in 2008- 09, resulting in a negative growth of import for the first time in about more than two decades. Although there was negative growth of import in 2009-10, export growth was also less (0.57 %). While negative growth implies importing less, (which may be good for economy in terms of self-sufficiency and foreign exchange reserve, etc.) decrease in export at the same time may not be desirable.

India export to Belgium in April 2010-March 2011 is Rs 2,634,703.81 and in April 2011- March 2012 is 3,420,614.59i

India‘s total export in April 2010-March 2011 is Rs.112,943,784,58. April-2011-March-2012 is Rs.144,088,106,19. India Import from Belgium in April-2010-March-2011 was 3,917,866.54.And in April-2011- March-2012 is 5,000,278.79. Belgium is currently India‘s 10th most important trading partner with total bilateral import and export that has reached USD 15 billion in 2010-2011, showing dramatic increase of 50% as compared to fiscal year 2009-2010.

Business relations between Belgium and India are flourishing. Belgium is currently India‘s 10th most important trading partner with total bilateral import and export that has reached USD 15 billion in 2010-2011, showing a dramatic increase of 50% as compared to fiscal year 2009- 2010.

Exports in Belgium have increased to 28457.10 EUR Million in September of 2012 from 26917 EUR Million in August of 2012. Exports in Belgium are reported to the . Historically from 1993 until 2012, Belgium Exports averaged 18879.24 EUR Million reaching an all time high of 32752.90 EUR Million in March of 2012 and a record low of 7331.30 EUR Million in August of 1993. Foreign trade accounts for about 70 percent of Belgium‘s economy.

India exports to Belgium

 gems and jewellery;  minerals,  base metals and articles, chemicals and chemical goods  textiles;  machinery,  mechanical products and electrical equipments. India imports as of Belgium

 Gems & Jewellery,  Machinery and  Mechanical Products,  Base metals & articles,  Chemical & Chemical etc.

Cotton yarn, fabrics, man-made yarns, made-ups, etc. accounted for 2.22 % and 2.02 % of India‘s total exports in 2009-10. Cotton yarn/ fabrics /made-ups handloom products etc. has decreased steadily over the years from 2005-06 to 2009-10 (from 3.83 % to 2.22 %). However, that of man-made yarns, fabrics, made-ups, etc. has recorded marginal fluctuations in terms of its share in India‘s total exports over the same period.

Share of Export of leather and leather manufacture has been gradually and continuously declining from 4.28 % in 2001–02 to 1.84 % in 2009-10. Exports share of electronic goods has also recorded a marginal growth over the last two years compared to the more or less same level it recorded a few years prior to 2008-09. The share of Tea exports also showed stagnation over the last five years (between 0.3% to 0.4%).

Export Import India Trade

India‘s total merchandise trade increased over three-fold from USD 252 Bn in F.Y. 2006 to USD 794 Bn in F.Y. 2012

Both exports and imports have trebled during the period Trade-GDP ratio increased from 30.2% in F.Y. 2006 to 42.9% in F.Y. 2012 Exports-GDP ratio increased from 12.4% in F.Y. 2006 to 16.5% in F.Y. 2012 Share of India in world merchandise export – 1.67% in 2011; Rank– 19 (up from 28th in 2006)

Belgium being India's eight largest trading buddies as of 2009, accounting for trade of nearly 41,552 core rupees. India and Belgium share the common value of democracy, pluralism and rule of law and Belgium has supported the nations.

We have divided overall project in five chapters. In first chapter we have given background study of import export business of India and Belgium. We have done swot analysis for import export business industry as well. In second chapter we have discussed some of the facts of Belgium. Its economic condition like what is its GDP in last few years, how it is grown in recent years. In what period we should contact in Belgium for formal or informal communication. In third chapter we have discussed about India‘s balance of payment situation and its figures for import and export activity. In fourth chapter we have discussed relationship between Belgium and India and how it can be better off. In last chapter we have given conclusion of the project what are the opportunities lies regarding import-export business between Belgium and India and what steps should be taken to maintain it and develop it further. We have also suggested business opportunities lies between Belgium and India.

A framework agreement for cooperation in Science and Technology was signed through the visit of the Belgian Prime Minister to India in November 2006. Under this agreement, an India- Belgium Joint Committee on S&T has been set up. It has met twice first from 25-27 June 2007 in Brussels, and then on 13 April 2011 in New Delhi. Events to encourage networking of research group and to see areas of mutual interest in the ground of research were identified. Joint workshops are also proposed to be ordered commencing 2012 to facilitate information exchange between scientific communities on both sides. India and Belgium also have a MoU on cooperation in room technology, which was signed between the two sides in November 1998.

Potential business opportunities with India for Belgium

Online Customer Support to India E-Commerce Export Opportunities In India Export Animations, multimedia, Graphics or else Other Content Products Export Data Services Start A Software Company

Other Opportunity to Belgium

A gateway for Indian companies to do business with Europe. Start a software company, IT ,pharmaceutical requirement to Belgium. The festival included, inter alia, art, theatre musical and dance performances fashion shows and a food festival. India has also agreed to be part of the Europian cultural festival in Belgium in 2013-14.

Belgium have requirement this company

Agriculture, It sector, Pharmaceutical, Software company Belgium have see that there are lots of company in Banglore. They have get the benefit to us. They getting to opportunity to us.

A gateway for Indian companies to do business with Europe. It is consider to audit, tax, advisory, lagal. They get the lot of benefit related to tax or get the other benefit.

India have first school establish in Belgium to follow the rules & regulation

India have requirement to Belgium.

Real estate fund invest in India.

Financial bank.

Service sector

Indian Community in Belgium

According to information usual from the local Government the total number of Indians up to the year 2006 were around 16,132, of whom nearly 10,000 had obtained Belgian citizenship. Around 2,500 NRIs/PIOs are based in Antwerp mainly from Gujarat and are involved in the diamond trade. The proposal for dual nationality for Belgian PIOs/NRIs has been agreed to by GOI. There are around 500- 1000 Indian students pursuing studies in educational institution of Belgium.

Good relation between to India & Belgium

Business relations between Belgium and India are flourishing.

Trade-GDP ratio increased from 30.2% in FY 2006 to 42.9% in FY 2012.

There are lots of opportunity between India and Belgium. sIn future there is increasing in trade relation between India and Belgium.

DAIRY INDUSTRY:

Dairy cooperatives were among the first type of agricultural cooperatives organized in the U.S. They have their beginning in the early 1800s. Dairy cooperatives have played a very significant role in the procurement, processing and marketing of milk and dairy products and in representing farmers politically at both the state and national level. Dairy farmers have relied more heavily upon dairy cooperatives to market their milk than have farmers of any other commodity. Presented here is an over view of the early history of dairy cooperatives, their developments over time, the roles dairy cooperatives play, and the current status of dairy cooperatives.

Early History:

Just when the first dairy cooperative was established in the U.S. is surely a matter of conjecture. Associations that might be called cooperatives were started shortly after the beginning of the nineteenth century. Although these organizations may not properly qualify as cooperatives under modern cooperative law, nevertheless the spirit and practical operation of the organizations made them distinctly cooperative in character. The physical characteristics of milk and the small production on individual farms encouraged collective action by farmers. It took more milk than what one farmer produced to make Swiss cheese of the wheel or drum style. To obtain standardized quality, uniformity of grade, and large quantities of dairy products required cooperative action. A feature of the cooperative movement among dairymen was the promotional effort that was made by manufacturers of creamery equipment to interest farmers in cooperative associations.

It is reported that the first U.S. cooperative was a creamery built at Goshen, Connecticut, in 18101. In 1841 Wisconsin farmers around Rock Lake, Jefferson County, made their cheese collectively at the home of a Mr. Pickett. In 1851 the so-called ìAmerican systemî of associated manufacturers of cheese was evolved at Rome, New York. In 1856 a butter factory was established at Campbell Hall, Orange County, New York. The early cheese rings in Massachusetts, dating back to 1835, were cooperative and quite typical of the cheese rings of the Jura Mountains of Europe, where the Swiss and French peasants made their well-known cheeses collectively. Cheese, butter plants, and creameries proved popular and successful. Dairy farmers set examples in early cooperative activity and had established more than 400 cooperative dairy processing plants by 1867.2 These were organized as local cooperatives. But in 1913 representatives of cheese factories in Sheboygan County, Wisconsin organized the first federation of cheese factories. The organization of county creamery associations (1917-1920) in northwestern Wisconsin and in Minnesota later federated into aninterstate unit (1921). This federation preceded the Land OíLakes Creameries , Inc., which was also initially organized as a federation in 1924 People use milk for various purposes like making Curd, Lassi, Ice-cream besides Tea and for drinking purpose. So a positive perception can be created to make them think that amul milk is best suited for those purposes.

Dairy cooperatives were among the first type of agricultural cooperatives organized in the U.S. They have their beginning in the early 1800s. Dairy cooperatives have played a very significant role in the procurement, processing and marketing of milk and dairy products and in representing farmers politically at both the state and national level

Just when the first dairy cooperative was established in the U.S. is surely a matter of conjecture. Associations that might be called cooperatives were started shortly after the beginning of the nineteenth century. Although these organizations may not properly qualify as cooperatives under modern cooperative law, nevertheless the spirit and practical operation of the organizations made them distinctly cooperative in character

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore toentrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors a like. India‘s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000 mn India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world. Total cattle population in the country as on October'00 stood at 313mn. India now has indisputably the world's biggest dairy industry—at least in terms of milk production; last year India produced close to 100 million tonnes of milk, 15% more than the US and three times as much as the much-heralded new growth champ, China. Appropriately, India also produces the biggest directory or encyclopaedia of any world dairy industry.

Maharashtra , Himachal Pradesh , Madhya Pradesh , Punjab , Rajasthan , Tamil Nadu are the major production area of Dairy Products in India .

India is the largest exporter of dairy products and exported 25,639.49 MT of dairy products to the world for the worth of Rs. 289.37 crores during the year 2011-12.

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money Amul (Anand Milk-producers Union Limited), formed in 1946, is a dairy cooperative movement in India. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. Situation of farmers Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season.

Consumer milk and fresh dairy products remain the most important products in the Belgian dairy industry.

In 2010, the production of consumer milk amounted to almost 800,000,000 litres. Fresh dairy products such as yoghurt, fermented milk drinks, cream and desserts accounted for almost 550,000 tonnes.

Belgium has failed to administer the pertinent laws and regulations in a manner that is consistent with its WTO obligations, leading to the assessment of duties on rice imported from the United States in excess of the bound rate of duty, in contravention of Article II of the GATT 1194; Belgium‘s use of reference prices in the calculation of the applicable import duties would appear to be inconsistent with Article VII of the GATT 1994 and the Customs Valuation Agreement; Belgium‘s refusal to recognize widely accepted industry standards associated with the grading of rice appears to be inconsistent with Articles 2, 3, 5, 6, 7, and 9 of the Agreement on Technical Barriers to Trade ; Belgium has failed to administer its customs valuation determinations and its assessment of tariffs in a transparent manner, thereby impeding trade, and appears to have applied the measures in a manner that discriminates against rice imported from the United States. Consumer milk and fresh dairy products remain the most important products in the Belgian dairy industry. In 2011, the production of consumer milk amounted to almost 753,000,000 litres. Fresh dairy products such as yoghurt, fermented milk drinks, cream and desserts accounted for a production volume of 531,000 tonnes. With 32%, semi-skimmed milk remains the most important milk drink, followed by fermented milk with 17%, consumer cream with 13% and whole milk with 12%. The production of yoghurt, chocolate milk and desserts was relatively limited. The additional milk collected by the dairy industry in 2011 was processed into cheese, milk powder and butter. As a result, the production of cheese went up by 7,3% and thanks to lower butter prices the production of farm butter went up by 13%. Also the production of skimmed milk powder rose by 25%.

On the demand side, exporters and strategic planners focusing on dairy products in Belgium face a number of questions. Which countries are supplying dairy products to Belgium?

How important is Belgium compared to others in terms of the entire global and regional market? How much do the imports of dairy products vary from one country of origin to another in Belgium? On the supply side, Belgium also exports dairy products.

This report was created for strategic planners, international marketing executives and import/export managers who are concerned with the market for dairy products in Belgium.

With the globalization of this market, managers can no longer be contented with a local view. Nor can managers be contented with out-of-date statistics which appear several years after the fact.

Belgium fits into the world market for imported and exported dairy products. The total level of imports and exports on a worldwide basis, and those for Belgium in particular, is estimated using a model which aggregates across over 150 key country markets and projects these to the current year. Belgian Blue is a breed of beef cattle from Belgium. These cattle are referred to in French as Race de la Moyenne et Haute Belgique, or, more commonly, Blanc Bleu Belge.

Alternative names for this breed include Belgian Blue-White; Belgian White and Blue Pied; Belgian White Blue; Blue; and Blue Belgian. The Belgian Blue's sculpted, heavily muscled appearance is known as "double-muscling".

The double-muscling phenotype is a heritable condition which results in the increased number of muscle fibers rather than the normal enlargement of individual muscle fibers. This particular trait is shared with another breed of cattle known as Piedmontese.

Both of these breeds have an increased ability to convert feed into lean muscle, which causes these particular breeds' meat to have a reduced fat content.

The Belgian Blue is named after their typically blue-grey mottled hair colour, however its colour can vary from white to black.

Specific requirements:-

All countries wishing to export milk and dairy products to the EU must comply with specific requirements. These include, in particular, processing requirements imposed upon the manufacture of milk and dairy products.

The required treatments are described in this Regulation. They are established according to the health status of the exporting third country. Imports of raw milk and raw milk-based dairy products are only authorised from third countries with a high health status.

Countries whose health status is less favourable (for example those where animals are vaccinated against foot-and-mouth disease) may only export pasteurised milk and dairy products made from pasteurised milk.

For each third country or part thereof, specific processing requirements are defined according to the health situation. These requirements must be complied with when manufacturing milk and dairy products in order to reduce, in particular, the potential risks of animal diseases.

Global Dairy

The world dairy market is expected to reach almost $371 billion in 2014, representing nearly 24% expansion over five years, reports MarketLine. The market is highly fragmented with the three leading companies representing just over 11% of the market. The EU region accounts for over half the global market in terms of value at 37%. Milk represents more than 35% of the overall dairy market. It is a central component of the average diet due to its near 20% whey protein content. Milk is also the only food product containing casein, a protein packed with essential amino acids, which accounts for the remaining 80% of milk‘s protein content. The US egg industry has shown rapid expansion over the past few decades, meeting close to all commercial egg demand in the US and producing around 75% of the world‘s eggs from caged layers. With increased urbanization and a mass exodus from rural areas the percentage of those growing their own food has fallen dramatically, boosting demand for eggs and other farm- produced food products.

Registrations for units handling up to 75,000 litres of milk per day are granted by the State Governments and units with more than 75,000 litres per day capacity are registered by the Central Registering Authority. -- The Certificate also specifies the milkshed area, which, under the order is defined as a geographical area demarcated by the Registering Authority for the collection of milk by the registered unit. -- Maintenance of specified hygienic conditions in the premises where milk and milk products are handled, processed, manufactured or stored. Authorisation / Licence / Certificate / Permission

No person may claim an Authorizati on as aright and DGFT or shall have power to refuse to grant or renew the same not a Right in accordance with provisions of FT (D&R) Act, Rules made there under and FTP.

Penalty If an Authorisation holder violates any condition ofsuch Authorisation or failsto fulfill export obligation, he shall be liable for action in accordancewith FT(D&R)Act, the Rules and Orders made there under, FTP and any other law for time being in force.

Easing of Documentation Requirement

Pending finalisation of Single Common Document (SCD) for international trade, Government Departments dealing with exports and imports will honour Authorisation issued by other Government departments based on verificationof export documents Like shipping bill, bank realization certificate, Packing list, bill of lading etc. and will notinsist upon fresh submission of these documents. we have define that beligium is top third rank to import the dairy product in all over the world. Basically In Belgium dairy products growth is very less. So the import is very more. Other countries like a USA, United Kingdom, china, Spain, Russian Fedration are also included in top ten countries which one is more import to dairy product in all over the world. These countries have also less growth to dairy products. In above diagram we have see that International production in the dairy product. All over the world more production to all over the world. The data is related to 2005, In 2005 India is top 1st to International production and their production is 1,62,36,80,000. Pakistan is 2nd rank to dairy production. Their production is 63,04,00,000 then 3rd rank is china to production more in dairy production, their production is 8,80,00,000, In china Production is also more to the dairy production. Other countries like a Egypt, Nepal ,Iran, Itlay, Mynmar, Turkey, Vietnam. These all countries have also more production to dairy production.

The ten major exporters of dairy products to India are (23 %), Nepal (17%), Belgium (12%), (12%), the Netherlands (6%), the UK (5%), Italy (4%), the US (4%), Poland (3%), New Zealand (2%) and Australia (2%). Hence, it is obvious that the EU is the major exporter of dairy products to India. Furthermore, from 2003 to 2008, New Zealand has been precluded from entering the Indian market, due to a sanitary certification on dairy imports in relation to exposure of cattle to estrogenic substances. More recently, US exports of dairy products to India have been banned, based on India‘s sanitary requirements. Similarly, since December 1, 2008, imports of dairy products from China have been prohibited, after the melamine milk scandal in China. This ban will be effective until December 24, 2009.

India Belgium Relation

Belgium is an Important trading partner for India and is one of the top 5 trading partners in the European Union. Belgium is the third largest trade partner of India in the EU with annual bilateral trade turnover exceeding US$8.6 billion. The King of Belgium, His Majesty Albert II, paid a ten-day visit to India from 3 November 2008 and was accorded a rousing ceremonial reception. His Majesty had meetings with President Pratibha Patil and Prime Minister Dr. Manmohan Singh.

India and Belgium share a long history of business relationship, Belgium is an important trading partner for India and is one of the top 5 trading partners in the European Union.

Belgium is the third largest trade partner of India in the EU with annual bilateral trade turnover exceeding US$8.6 billion with diamonds, gems and jewellery accounting for a sizable portion of the two-way trade. In India Dairy Products growth is very high. India‘s dairy product is famous in all over the world. There environment is suitable to the dairy products. Population is very high. Day to day Production is very high. India have export to many countries. Here we have Prepare the Report and mainly focus on India or Belgium, so the india have export many countries, In the export Belgium Rank is 50th to india export. We have see the above diagram, Belgium rank is 50th. Belgium qty is 1 and their value is 2. India have less exporting to Belgium

India have export to Belgium india have export to ghee in Belgium. In 2009-2010 ghee qty was 0.48, then in 2010-2011 ghee qty was 0.49 and In 2011-2012 0.02 qty so the trade qty is very less India have production is more and more to the dairy product , India ‗s atmosphere is suitable to dairy. So production is more. So, India have more exporting many countries here, we have just focus on Belgium and India. India have export to Belgium. There are many different products trades. but its less trade to the dairy production.

In above diagram 2009-10 India have export to Belgium and their qty is 0.02. then 2010-11 qty is 0.49 so the trade growth is also increase. In 2011-2012 trade is 0.58 qty. its qty was also increase to day to day to the dairy production and after some year their trade is also increase.

OPPORTUNITIES FOR EXPORTS OF DAIRY PRODUCTS FROM INDIA o The economic policy reforms triggered in India in 1991 were oriented towards liberalization and integration with the world economy. These policy initiatives of reforms and economic liberalization widened the market opportunities for international trade including the dairy products.

o In this context, this paper examines the issues of trade possibilities for India, in view of growing domestic consumption, augmented supply and growing international market for dairy products.

New Challenges of Globalisation and Trade Liberalisation

The NDDB has recently put in place ―Perspective 2010‖to enable the cooperatives to meet the new challenges of globalization and trade liberalization. Like othermajor dairying countries of the world, the Indian cooperatives are expected to play a predominant role in the dairy industry in future as well. However, India is in the mean time, attaining its past glory and is once again becoming ―DOODH KA SAGAR‖ Opportunity

. In Belgium dairy growth is very less. So its opportunity is to more & more product of the dairy related. . In gujrat Amul Product is export many countries, but its not export to Belgium. So its opportunity to Belgium to trade with the gujrat. beacuse amul have lots of products. . In India dairy growth is very high. India have trade many countries to the dairy product. But with Belgium india trade is very low to the dairy related product. Belgium rank is 50th to export dairy product in India

Opportunity for growth in Belgium Milk deliveries increased with 11% in 5 years, Post-quota era : further increase of milk deliveries • Dairy farmers : Competitive wrt production costs, Still possibilities to realise economies of scale • Dairy industry: Investments in new capacity, Experience with products that can be exported to third countries, Adding more value is a big challenge . Opportunities : Baby food Branded cheeses : market share of « Belgian cheeses » is increasing Considerably: More exports to new markets in EU and in third countries

The Belgian dairy sector is preparing the post quota period Milk deliveries are increasing , more milk to come • Average size of dairy farms goes up rapidly – Gains due to economies of scale – Increasing productivity • Dairy industry is investing a lot • Challenges : More exports, New markets have to be found, More value added products (branded cheeses, baby, food, …… ), Changing environment : larger clients, larger competitors . In India dairy growth is very high. India have trade many countries to the dairy product. But with Belgium india trade is very low to the dairy related product. Belgium rank is 50th to export dairy product in India

―Financial Market & Diamond Industry of Belgium‖

BELGIUM PROFILE

Belgium, officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, as well as those of several other major international organisations such as NATO. Belgium covers an area of 30,528 square kilometres (11,787 sq mi), and it has a population of about 11 million people. Straddling the cultural boundary between Germanic and Latin Europe, Belgium is home to two main linguistic groups, the Dutch- speakers, mostly Flemish, and the French-speakers, mostly Walloons, plus a small group of German- speakers. Belgium's two largest regions are the Dutch-speaking region of Flanders in the north and the French-speaking southern region of Wallonia. The Brussels-Capital Region, officially bilingual, is a mostly French-speaking enclave within the . A small German-speaking Community exists in eastern Wallonia. Belgium's linguistic diversity and related political and cultural conflicts are reflected in the political history and a complex system of government. Historically, Belgium, the Netherlands and Luxembourg were known as the Low Countries, which used to cover a somewhat larger area than the current Benelux group of states. The region was called Belgica in Latin because of the which covered more or less the same area. From the end of the Middle Ages until the 17th century, it was a prosperous centre of commerce and culture. From the 16th century until the Belgian Revolution in 1830, when Belgium seceded from the Netherlands, many battles between European powers were fought in the area of Belgium, causing it to be dubbed the battleground of Europe, a reputation strengthened by both World Wars. Upon its independence, Belgium eagerly participated in the Industrial Revolution and, during the course of the 20th century, possessed a number of colonies in Africa. The second half of the 20th century was marked by the rise of communal conflicts between the Flemings and the Francophones fuelled by cultural differences on the one hand and an asymmetrical economic evolution of Flanders and Wallonia on the other hand. These still-active conflicts have caused far-reaching reforms of the formerly unitary Belgian state into a federal state which might lead to a partition of the country.

Economy of Belgium

View of Brussels' financial district over the Botanical Garden

Rank 30th (2008)

Currency Euro

Fiscal year Calendar year Trade organisations EU, WTO and OECD

Statistic GDP $381.4 billion (PPP, 2009 est.) GDP growth 2.1% (2010 est.) GDP per capita $38,600 (2010 est.) GDP by sector agriculture (1%), industry (24.1%), services (74.9%) (2008 est.) Inflation (CPI) 2.5% (2010 est.) Population 15.2% (2007 est.) below poverty line

Gini coefficient 28 (2005) Labour force 5.08 million (2009 est.) Labour services (73%), industry (25%), agriculture (2%) (2007 est.) force by occupation Unemployment 7.4% (September 2012) Average gross salary €4,097 / $5,530, monthly (2006)

Average net salary €1,825 / $2,464, monthly (2006) Engineering and metal products, motor vehicle assembly, Main industries transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, petroleum rd

Business Rank 33 External $254.3 billion f.o.b (2009 est.) Exports

machinery and equipment, chemicals, finished diamonds, Export good metals and metal products, foodstuffs Germany 19.58%, France 17.71%, Netherlands 11.84%, United Main export partners Kingdom 7.21%, United States 5.37%, Italy 4.77% (2009) Imports $253.1 billion f.o.b. (2009 est.) raw materials, machinery and equipment, chemicals, raw Import goods diamonds, pharmaceuticals, foodstuffs, transport equipment, oil products Netherlands 17.93%, Germany 17.14%, France 11.69%, Ireland Main import partners 6.26%, United States 5.74%, United Kingdom 5.07%, China 4.09% (2009) FDI stock $742.4 billion (31 December 2009 est.) Gross external debt $1.354 trillion (2008) Public finances

Public debt $490 billion (95.2% of GDP) (2011 est.) Revenues $226.4 billion (2009 est.) Expenses $253.3 billion (2009 est.)

Foreign reserves US$30.017 billion (April 2011)

Belgium Financial Market

Hold the mouleset frites: Belgium has joined Portugal, Spain and Italy on the hit list of countries that may be heading for financial crisis. In the bars of Antwerp and the cafes of Bruges, the talk is less of Christmas markets and hot chocolate than of the rising cost of financing a national debt which stands at 100% of annual national income.

Like Ireland, struggling to fend off criticism of its austerity package, there are signs that international bond investors are starting to view Belgium as living on borrowed money and borrowed time.

To make matters worse, it has a broken and is without a government since April. International money market traders today pushed the cost of insuring Belgium's debts to record levels. The interest payments still fall short of those charged for Spain's government the Portuguese, but analysts said the gap was narrowing quickly.

"Belgium is having to pay a political risk premium, because it still doesn't have a government in place to make decisions over how to curb its spending and its debts, which is what the market wants to see," said one analyst.

While the rest of the continent has wrestled with the question of what to cut and when in an effort to control government spending, the 10 million Belgians have been locked in a three-year row between Flemings and Walloons over how to govern a constituency encompassing Brussels and its suburbs, focus of a dispute over voting rights among the language groups.

In April the government of two times prime minister Yves Leterme collapsed when he failed to resolve what had become a centred on the linguistically at odds constituency of Brussels- Halle-Vilvoorde. An election in June split the country. The majority of Flemish voters want a dose of British-style austerity, a range of socialist parties from both parts of the country - which as a group did fairly well in the election and form the largest bloc - refuse to agree any cuts.

Money Market

Money market papers are securities with a short maturity. Classical money market instruments in Belgium are commercial paper, certificates of deposit, medium term notes and term deposits. Of particular importance for short-term investments abroad are US money market instruments or paper, usually with terms of 3 to 6 months (Treasury bills, banker's acceptances, commercial paper, finance paper and certificates of deposit issued in New York, as well as London certificates of deposit). Belgian short-term debt instruments account for EUR 46.4bn, which represents 5.81% of the total outstanding short-term debt in the Eurozone (798.2bn - July 2003). Belgium is therefore the fifth largest market for such instruments within the Eurozone. Belgium is a full member of the Financial Action Task Force on Money Laundering (FATF), and is not on FATF‘s blacklist. Belgium has signed and ratified the UN Convention Against Illicit Traffic in Narcotics Drugs and Psychotropic Substances of 1988 and the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime of 1990

DEBT Market of Belgium

Public Debt

Belgium- 99.7% of 98.51 GDP (2011 est.)

India- 51.6% of 68.05 GDP(2011 est.)

Note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment. Debt instruments for the social funds are not sold at public auctions.

INTRODUCTION OF GEMS AND JEWELLERY SECTOR IN INDIA

India is the world's largest manufacturing centre for gems and jewellery and the Industry contributes over 12% to the total export earnings of the country and employs highly skilled 1.5 million workers. This industry was hit hard by the full demand due to global economic slowdown in FY 09.

India is one of the eight key world markets, the others being the USA, UK, Middle East, Turkey, Japan, Italy and China. India is the also the largest consumer of gold in the world, and is estimated to hold nearly 16,000 tons of gold, accounting for nearly 12-15% of the world's cumulative 'above ground' gold stocks. India is also the largest diamond cutting and polishing centre in the world.

INTRODUCTION OF GEMS AND JEWELLERY OF BELGIUM

Global Exports in Gem and Jewellery Sector:

Global exports of gem and jewellery related products in 2004 registered a steep growth of 28.49 per cent over the previous year when the same touched a figure of US$78,022 million as against US$60,721 million. India as may be seen turned out to be third largest exporting country after Belgium and Israel. Belgium continues to be the largest exporting country.

 The country during the period registered a growth of 21.55 per cent. The other countries registering a robust growth during the period include Switzerland (60.97%), China (37.31%), Canada (34.15%), USA (33.81%), India 25.21%), Hong Kong (21.78%), Israel (21.42%), and Congo (21.15%).

Role of India in Belgium in Gems and Jewellery market

 Forty percent of gems and jewellery in Belgium are imported from India and almost seventy to eighty percent Indians staying in Belgium are associated with the gems and jewellery trade.

 There exists growing trade and investment between the two countries in the face of the global financial slowdown," an official release quoting Sharma said .Indo-Belgium trade in 2010-11 was USD 14.90 billion. The balance of trade continues to be in favour of Belgium

 At present, the trade is dominated by the gems and jewellery sector which accounts for about 61 per cent of the total bilateral commerce. The top sectors of imports from Belgium are pearls, precious and semi-precious stone, machinery, iron and steel. Diamonds accounts for a large part of this trade, much of it happens with the city of Antwerp.

 India is the 5th largest exporter to Belgium (after USA, China, Japan and Russia) and 2nd largest importer of Belgian products in 2010 (after USA).

 The growth in exports of gems and jewellery sector has been primarily driven by the Cut & Polished Diamonds (CPD) segment over the years. CPD exports grew from US$ 7.11 bn in FY03 to US$ 13.02 bn in FY09. Over the years, the major export markets for the Indian gems and jewellery sector has been USA, UAE, Hong Kong, Belgium, Israel, Japan Thailand, with US being the biggest export destination for Indian gems and jewellery. On the import front, Europe has been the largest importing destination for india followed by Middle East, Oceania and Asia.

 The major items of Indian exports to Belgium are - Precious stones; Textiles and garments; Iron and steel; Chemical products; Mineral products; Organic chemicals; Machinery and Electrical Equipments etc.

BELGIUM’S TRADE AT INTERNATIONAL

LEVEL AND WITH INDIA AND GUJARAT

Belgium's economy is dependent on international trade. From year-to-year, foreign trade accounts for approximately 70 percent of the nation's economy. This makes Belgium particularly sensitive to disruptions in global trade. Recessions or other economic problems around the world often cause reciprocal problems in Belgium's economy. Fortunately, the kingdom has a variety of trade partners so that problems in one export market are mitigated by export diversity. For instance, since companies were able to shift exports to other markets, Asia's economic problems in the late 1990s had little significant impact on Belgium.

The nation's main trade partners are in the EU. In fact, in 1998 some 76 percent of Belgium's exports went to nations in the EU. In that year, the main export market for Belgian goods was Germany (19 percent), followed closely by France (18 percent), the Netherlands (12 percent), and the United Kingdom (10 percent). Most of Belgium's imports also came from the EU that provided (71 percent) of the kingdom's imported products. Germany was the main exporter to Belgium and provided (18 percent) of goods, while the Netherlands provided (17 percent), France (14 percent), and the United Kingdom (9 percent). Total foreign investment in Belgium is $68.1 billion. The Netherlands is the principal source of foreign investment (21.9 percent), followed by Germany (17.1 percent), France (16 percent), and the United States (11 percent).

The United States is a major trading partner of Belgium. The kingdom is the ninth largest trading partner of the United States. In 1999, the United States exported $11.3 billion to Belgium. About half of Belgium's imports from the United States are processed and re-exported to other markets. The kingdom is home to 1,300 U.S. companies. American investment in Belgium totals $18.9 billion. The majority of this investment is concentrated manufacturing ($8.969 billion), services.

60

INDIA-BELGIUM RELATIONS

Belgium–India relations refers to the bilateral ties between the Republic of India and the Kingdom of Belgium. India has an embassy in Brussels. Belgium has an embassy in New Delhi. Belgium being India's eight largest trading partner as of 2009, accounting for trade of nearly 41,552 crore rupees.[1] India and Belgium share the common value of "democracy, pluralism and rule of law" and Belgium has supported the G4 nations.[2] The Prime Minister of Belgium Steven Vanackere had said that "slowly but surely" India was getting its "rightful place in global governance". He reiterated that Belgium "unequivocally" reconfirmed its support for India's bid for a permanent seat in the enlarged UN Security Council.

1. Diplomatic relations between India and Belgium were established in 1948 and our bilateral relations are cordial and friendly. In recent times, Belgium has acknowledged the growing importance of Asia and has emphasized the value of strengthening economic relations with India. 2. Recent High Level Visits: Recent high level to India include visit by Crown Prince Philippe(March 20-27, 2010) leading a 350 plus member economic mission; visit by the The King of the Belgians, Albert II visited India from 3-12 November 08 accompanied by Queen Paola, the then Foreign Minister Karel De Gucht and a sizeable academic and business delegation; and visit by the then Prime Minister Guy Verhofstadt (BPM) from 2-7 November 2006. Visits at high level from India in recent times include a visit by Prime Minister Dr.Manmohan Singh to Brussels from 9-11 December 2010, which was the first bilateral visit by an Indian Prime Minister since 1978; visit by Vice President of India Shri M. Hamid Ansari to Brussels from 3-5 October 2010 to attend the ASEM 8 Summit during which he briefly interacted with the King of Belgium and held a bilateral meeting with Prime Minister Yves Leterme; visit by Mrs. Sonia Gandhi to Belgium from 10-12 November 2006 to inaugurate the TEJAS Exhibition, the central theme of the festival of India (October 2006 – January 2007). Several Ministerial and official level visits have also taken place on both sides during recent times. 3. Bilateral Treaties and Agreements: The agreements signed and in force between India and Belgium are as under: Social Security Agreement in November 2006 (came into force in September 2009); Agreement on cooperation in the field of Science & Technology, November 2006; Agreement on Avoidance of Double Taxation (DTAA) – August 1997; Bilateral Investment Protection Agreement (BIPA) signed between India and BLEU in November 1997; Cultural Agreement- September, 1973; and Air Services Agreement- April, 1967.

61

4. Economic and Trade Relations- Belgium has emerged as one of India‘s important trading partners in the EU. Trade in gems and jewelry constitutes over 75% of the bilateral trade. India‘s IT sector is well represented in Belgium, with all the big IT companies having their establishments. Several Indian companies in the chemicals sector have also established offices/warehousing facilities in Belgium, particularly near the port city of Antwerp. Belgian business interests in India cover energy, ports, dredging, construction, banking and finance, electronics and software, chemicals and fertilizers, solar energy and biotechnology. 5. Bilateral Trade - Belgium is the second largest trading partner of India in the European Union with annual bilateral trade turnover amounting Euro 10.4 billion in 2010. India is the 5th largest exporter to Belgium (after USA, China, Japan and Russia) and 2nd largest importer of Belgian products in 2010 (after USA). The major items of Indian exports to Belgium are - Precious stones; Textiles and garments; Iron and steel; Chemical products; Mineral products; Organic chemicals; Machinery and Electrical Equipments etc. The major items of Indian imports from Belgium are- Precious stones; Iron and steel; Machinery and mechanical appliances; Chemical products; boilers, machinery and mechanical appliances & parts thereof: Organic chemicals; Plastic and rubber; Plastics and articles thereof; Pharmaceutical products etc. An MoU on cooperation in railway sector has been agreed upon and is ready for signature. 2 6. Bilateral Investment- Belgium has emerged as the 23rd largest investor in India worldwide and the 9th largest within the EU but the total FDI in India from Belgium is still relatively small. A cumulative figure of FDI inflows from Belgium into India amounts to US $ 327.84 million from April 2000 to April 2010. In the recent past, Indian investment in Belgium has exceeded investment by Belgian firms in India mainly through several takeovers of Belgian firms by Indian companies. Several Indian companies particularly in the IT and software sector have established base in Belgium to cater to Belgian as well as the European market. 7. Economic Joint Commission Meeting – The Economic JCM between India and Belgium- Luxembourg Economic Union (BLEU) met in Brussels on May 4-5, 2009 after a gap of eight years. More recently, the 12th JCM took place in New Delhi on 15 April 2011 where both sides discussed market access issues, cooperation in civil aviation and aerospace sector, renewable energy sector, IT sector, recognition of certificate of competency of sailors, interest of Belgian businesses in the infrastructure sector, and progress in the revision of DTAA. 8. Business Events: The Indian Merchants‘ Chamber (IMC) held its annual event India Calling Conference 2009 in Brussels from 30 September - 2 October 2009 in partnership with Belgo-Indian Chamber of Commerce & Industry (BICC&I) and Europe India Chamber of Commerce (EICC). The event was jointly inaugurated by the Minister of Overseas Indian Affairs with the Belgian Foreign Minister on 30 September 2009. An India-Belgium business meeting, ―Brilliant India‖ was organized in Brussels on 9 December, 2010, on the occasion of the visit of our Prime Minister. Leading business persons from both sides participated in the event which was presided by our Commerce and Industry Minister, Shri Anand Sharma and by the Belgian Deputy Prime Minister and Minister of Foreign Affairs, Mr. Steven Vanackere. An India-EU Business Forum was organised on 12 October 2011 in Brussels by the Indian Chamber of Commerce in Kolkata with a focus on North Eastern

62 states of India and was inaugurated jointly by Belgian Minister of Economy Vincent Van Quickenborne and Minister of Urban Development Shri Kamal Nath. 9. Science & Technology cooperation- A framework agreement for cooperation in Science and Technology was signed during the visit of Belgian PM to India in November 2006. Under this agreement, an India-Belgium Joint Committee on S&T has been set up that has met twice, first from 25-27 June 2007 in Brussels and second on 13 April in New Delhi. At the second meeting, Progress in cooperation was noted in the field of astronomy where a DOT 3.6m telescope being built in Nainital with Belgian assistance and expected to be operational in November 2012. Measures to encourage networking of research groups and to identify areas of mutual interest in the field of research were identified. Joint workshops are also proposed to be organized, commencing 2012, to facilitate information exchange between scientific communities on both sides. India and Belgium also have an MOU on cooperation in space technology which was signed between the two sides in November 1998. A Belgian satellite was also launched by India in 2001. 10. Cultural Cooperation- To commemorate the memory sacrifices made by thousands of Indian soldiers in Flanders during , an Indian Memorial Pillar which was installed along side the Menin Gate in Ieper was re-built and re-installed at the same site in 2010. The local authorities organize ceremonies at this pillar along side the main Armistice 3Day celebrations on November 10/11 every year. The Indian Council for Cultural Relations (ICCR) in association with the Centre for Fine Arts (BOZAR) organized an India Festival from October 2006- January 2007. The festival included, inter alia, art, theatre, musical and dance performances, fashion shows and a food festival. India has also agreed to be part of the Europalia cultural festival in Belgium in 2013-14. 11. Indian Community in Belgium- According to the information received from the local Government the total number of Indians upto 2006 were around 16,132 out of which 10,000 Indian nationals have obtained Belgian citizenship and remaining 6000 are involved in various economic activities. Around 2,500 Indian NRIs/PIOs, based in Antwerp mainly from Gujarat are involved in diamond trade. The proposal for dual nationality for Belgian PIOs/NRIs has been agreed to by GOI. There are around 500-1000 Indian students pursuing studies in educational institutions of Belgium.

63

CONCLUSION

India is one of the largest manufacture of cutting and polish center of diamond in the world. The gems and jewellery industry is a major exchange exchequer as major portion (around 80%) of its turnover was contributed by exports This classified into five main segments cut and polished diamonds, gemstones, gold and jewellery, pearl and synthetic stones, and others, including precious metal jewellery (other than gold), synthetic stones and costume fashion jewellery. India contributes over 12% to the total export earnings of the country and employs highly skilled 1.5 million workers.

The Indian jewellery sector is largely unorganized at present. There are over 15000 players across the country in the gold processing industry, of which only about 80 players have a turnover of over US$ 4.15 million (Rs. 200 million). There are about 450,000 goldsmiths spread throughout the country.

There are many regulating body exist in the India…..,like

Established in 1966 has around 6,500 members across India. GJEPC works closely with the Indian government and the traders to implement and oversee the Kimberley Process Certification Scheme; in fact, the Council has been appointed as the nodal agency in India under the Kimberley Process Certification Scheme.

The Bureau of Indian Standards (BIS), the National Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act, 1986 and is responsible for hallmarking gold jewellery in India.

64

“GOVERMENT REGULATION & POLITICAL SITUATION & TEXTILE INDUSTRY IN BELGIUM”

65

Basic information of Belgium.

 The area of Belgium is only 30,528 sq km, it is very small in compare to India.

 Population of Belgium is only 10,438,353 in compare to India but it compare with

area India have more population rate per square Km.

 Belgium have not Hindu population the major part is Roman catholic in compare

of India have major part of population is Hindu.

 Birth rate is 50% of Indian birth rate in Belgium.

 The primary source of law and the basis of the political system of the Country

were established on February 7, 1831. Where as in India primary source of low

and the political system are shared as central as well as state government of the

country.

 Legislative powers in Belgium are divided between the national, the regional and

the community levels. Whereas Indian defines the power

distributions between the federal Government (Central Government) and State

Government.

 The King of the Belgians is the and the Prime Minister of Belgium

is the in a multi-party system. Where as in India the head of

state is President of India and Prime minister of India is Head of Government.

 The Belgian Company Law is very poor in euro pean Country. It implemented in

1993. Where as in India have a strong Government law of Company like the

Indian Companies act 1956 it designed after large provisions in this act.

66

 The Consumer Law in Belgium framed by Trade practices and consumer

information and protection act 1991. It provides the precautions ageist fraud,.

Undisclosed information controlled by central government.

Where as in India have various acts like the competition act 2002, the Consumer

Protection act 1986, the essential commodities act 1955. And it also includes the

various consumer courts like district, state and central consumer court and

council. And the Indian Government also provide the Indian Consumer protection

councils in every district.

Official Name Belgium India Land Area 30,528 sq km 32,87,240 sq km country comparison to the world - country comparison to the 141 world - 7

land: 30,278 sq km land: 29,72,980 water: 314260 water: 250 sq km

Land boundaries: total: 1,385 km Land boundaries:15,106.70 km

Population 10,438,353 (July 2012 est.) 1,220,200,000 (2012 est.)

Capital City Brussels Delhi Religion Roman Catholic (57%) Hindu - 80.46% Nonreligious (35%) Muslim - 13.43% Protestant (1.7%) Christian - 2.34% Muslim (4%) Sikh - 1.87% Other (2%) Buddhist - 0.77% Orthodox (0.3%) Jain - 0.41% Animist - others 0.72% Language Dutch (official) 60%, Bengali Gujarati French (official) 40%, Bodo Standard German (official) less than 1%, Chhattisgarhi Hindi legally bilingual (Dutch and French) Dogri Kannada

67

Garhwali Kashmiri Garo Khasi Malayalam KodavaTakk Manipuri Kokborok Marathi Konkani Mizo Kumaoni Nepali Maithili Oriya Sanskrit Punjabi Santali Rajasthani Sindhi Telugu Tamil Tulu Urdu

Government Christian Democratic and Flemish United Progressive alliance

(CD&V) (UPA) Currency Euro Rupee Location Western Europe South Asia bordering the North Sea South India bounded by between France and the Hind Ocean Netherlands Bordering the north by China Natural resources construction materials, silica sand, Coal, Iron ore, Manganese, Mica, carbonates Bauxite, Titanium ore, Chromate, Natural gas, Diamonds, Petroleum, Limestone and Thorium. India's oil reserves. Head of State King Albert 2 (since 9 August 1993) President of India: Heir Apparent: Prince Phillipe Pranab Mukherjee

Population growth rate 0.061% (2012 est.) 1.41% (2009 est.) country comparison to the world: 183 country comparison to the world: 93

Birth rate 10.03 births/1,000 population (2012 22.22 births/1,000 population est.) (2012 est.) country comparison to the world: 194

68

Death rate: 10.63 deaths/1,000 population (July 1.4deaths/1,000 population (2009 2012 est.) est.) country comparison to the world: 43  The Government law includes the health law 1977 and India has The

Transplantation of Human Organs Act, 1994, The Prevention of Food

Adulteration Act, 1972, and The Prevention of Food Adulteration Act, 1954.Key

demographics

1. POLITICAL INFORMATION

Belgium Key Facts

Political system Constitution of Belgium, the primary source of law and the basis of the political system of the Country was established(found) on February 7, 1831. It has been changed many times, but the most applicable reforms were performed in 1970 and in 1993.

In 1970, in response to a growing civil battle between the Dutch- speaking and French-speaking communities in Brussels, the Government declared that "the , its structure and functioning as set down by law, had become obsolete".

The new constitution recognized the existence of strong communitarian and regional differences within Belgium, but sought to reconcile (conciliate) these differences through a diffusion(dispersal) of power to the communities and the regions.

In 1993 the parliament approved a constitutional package transforming Belgium into a full-fledged national state.

National Legislative powers in Belgium are divided between

69

the national, The regional and The community levels.

The Belgian national Parliament consists of the (Dutch: Senaat, French:Senat) and the Chamber of interpreter (Dutch: Kamer van Volksvertegenwoordigers, French: Chambre des Representants).

The Chamber has 150 members, the Senate has 71. All 150 representatives are elected directly via a system of proportional representation. On the contrary, only 40 senators are elected directly (25 by Flemish and 15 by Francophones); 21 other senators are elected by the parliaments of the three communities; 10, finally, are co-opted by the others.

National Elections The election for the Belgian hall of Representatives is based on a system of open list proportional representation.

Several years before an election, each party forms a list of candidates for each dominion (district). Parties are allowed to place as many candidates on their lists as a there are seats available. The formation of the list is an internal process that varies with each party. The place on the list is considered to play a role in the election and selecting of a candidate, by giving a stronger visibility to those high on the list; this phenomenon, however, seems to have lost importance since the last electoral change or reform.

Belgian voters are given five options. They may:

Vote for a list as a whole or all, thereby showing approval of the order established by the party; Vote for one or more individual candidates, any way of

70

his/her ranking on the list (a "preference vote"); Vote for one or more of the "alternates" (substitutes); Vote for one or more than one candidates, and one or more alternates. which Vote invalid or blank so no one receives the vote.

The latest municipal and provincial elections were held in 2006 and the latest general election was held in 2010. The latest community and regional elections were held in 2009, and the next are expected in 2014.

National Government The Cabinet of Belgium (officially called the Belgian National Cabinet) is the branch of the Belgian national government, consisting of ministers and secretaries of state ("junior", or deputy-ministers who do not sit in the Council of Ministers) drawn from the political parties which form the governing coalition.

Formally, the ministers are appointed by the King. The Cabinet is chaired by the Prime Minister of the Belgium, and the Ministers caput or head executive departments of the government. Some national ministers do not have seats in Parliament.

The numbers of ministers are limited to 15, equally divided between French-speaking and Dutch-speaking ministers, according to Art. 99 of the Constitution.

Head of State The king Albert 2

Main political parties  Belgian Union (BUB)  Committee for Another Policy (CAP)  Humanist Democratic Centre (CDH)  Christian Democratic and Flemish (CD&V)

71

 Christian Social Party (CSP)   Francophone Democratic Front (FDF)  Front National  !  Citizens' Movement for Change (MCC)  (MR)  (N-VA)  and Progress (PFF)  For German-speaking Community (ProDG)  Workers Party of Belgium (PVDA/PTB)  Socialist Party (PS)  Socialist Party – Differently (SP.A)  SPIRIT  VlaamsBelang

Characteristics of Government System of Belgium

1) Autonomous governments

Belgian governments have complete responsibility and autonomy within their area of competence. The exclusive character of competences allocated to each authority, which cannot be challenged, sets formal and technical restraint on the extent to which the different authorities can share the development of policy and tools for regulatory management, where this is needed.

2) Autonomous ministries within governments

Ministries within each government are highly autonomous. This generates challenges for the effective development of shared policy and rule-making tools and processes within governments. This issue is not unique(alone) to Belgium.

72

3) Coalition governments and consensus-based decision making.

The electoral system produces alignment government, and as a consequence, the political framework for policy making is characterized by a search for consensus among coalition parties, acceptance of compromise and institutionalized power sharing.

4) Nationalism in a state of evolution, based on an asymmetric division of competences

Belgium is a relatively ―young‖ national state, and Belgian nationalism continues to evolve. The Belgian institutional framework is made up of regions and communities which do not have exactly the same competences (some other states based on national principles have a more all of the same structure). The institutional framework for policy and law making has adapted and continues to adapt to reflect developments.

5) Pragmatism and informality in decision making

Consensus building within formal and often highly politicized structures, combined with the formal constraints imposed by the strict division of competency, tends to slow and complicate the decision making process. To counter this, a strong tradition of realism and informal dialogue is in place.

6) A number of centralizing elements

The national state has retained certain powers, and a number of important institutions have a nationwide reach (including the Constitutional Court, the and the Court of abrogation, the Council of State, the Court of Audit and the Inspectorate of Finance).

Nationalization started in 1970 (Box 0.1). The process and the structures which have emerged are complex, reflecting a deep rooted desire for a negotiated transformation of Belgium from a unitary entity to a national structure which respects the dreams of the different communities. Nationalization has raised significant challenges for public sector efficiency and policy coherence. In principle, the devolution of national responsibilities to regions and communities helps to better tailor public services to the needs and preferences of users. It also enables some benchmarking between jurisdictions,

73 providing an incentive for improving public sector efficiency. In practice (and as tends to be the case in national states), nationalization and the division of competences has created shared policy responsibilities in areas such as employment, R&D, training, energy and environmental policies.

The Government agreement of March 2008 sets out ―six‖ major challenges for Belgium, one of them being state efficiency: ―In Communities and in regions, as much as at the level of the National State, citizens are entitled to expect efficient services and modernized administrations from each level of power‖. This objective has already been picked up through reforms of the public administrations of each government.

The nationalization process thus raises challenges for effective, efficient and timely policy and rule-making. Better Regulation is especially important in this context, as a means of controlling the bureaucratic effects of nationalization (including regulatory)

Environmental Law – Belgium

BASIC PRINCIPLES OF ENVIRONMENTAL LAW

In accordance with Article 23 of the co-ordinate Constitution, every citizen of Belgium has, apart from other rights, the right to the protection of a healthy environment. The reverse side of this right is the obligation for the governments (federal, regional and local) to protect the environment.

The incorporation in the Constitution of this right confirms the increasing awareness of environmental problems and provides a permanent constitutional guarantee. The practical scope and impact of this basic right should not be overrated, but neither should it be underrated: the value of such constitutional recognition is also determined by its capacity to orient governmental policy and instruct the legislator.

) HUMAN RIGHTS LAW – BELGIUM

Domestic violence and sexual abuse are criminal offences In Belgium. Specific laws have been developed over a period of time. Marital rape has only been a criminal offence since July 1989. ―Domestic violence‖ is still not a criminal offence according to

74 the Belgian legal system. Domestic violence comes within the scope of Art. 442 of the penal code and is treated as harassment.

Until 1997, Art. 413 of the penal code were in force, stating that in cases of adultery first and second degree murder, battering and maltreatment are justifiable. In 1997, Art. 410 of the penal code were modified. Now domestic violence is regarded as an aggravating circumstance, since offender and victim have been in a close relationship. Aggravating circumstances lead to a more severe sentence. This law is applied to married as well as unmarried couples and any other person who maintains or maintained a long- term emotional and sexual relationship with the victim. It covers domestic violence as well other domains of violence. The Action Plan against domestic violence was developed in 2004-2007. In cooperation with the office for equal opportunities for men and women, it decided to focus on combating violence of (former) partners.

 Sensibilisation  Education  Prevention  Shelters  restraint and other measures  evaluation.

In March 2006, the Minister of Justice and State Prosecutors signed a circular, titled ―Marital and Family Violence‖. Every complaint and each intervention measure must be recorded. Every offence is brought to charge. The systematic reaction of the juridical system demonstrates that there will be no impunity.

Prosecutors will get special training and cooperation between police, prosecution and the social and medical sector will be strengthened. Victims will receive more information and support. Further, another important point is the treatment of perpetrators/offenders to reduce the risk of recidivism.

European integration

75

The Belgians have been strong advocates of European integration, and most aspects of their foreign, economic, and trade policies are coordinated through the European Union (EU), which has its main headquarters (the , the Council of the European Union and sessions of the ) in Brussels.

At the same time the Belgians, perceiving their diminutive role on the international scene, are strong advocates of strengthening economic and political integration within the EU. Recently, having federalized their own country, many Belgians view themselves as the ultimate "European federalists". Belgium actively seeks improved relations with the new democracies

of central and eastern Europe through such fora as the Organization for Security and Cooperation in Europe, EU association agreements, and NATO's Partnership for Peace with the former Warsaw Pact countries and several others.

NATO

Belgium remains a strong proponent of NATO. It cooperates closely with the United States within the alliance framework, in addition to supporting European defense efforts through the Western European Union (WEU). Both NATO (since 1966) and the EU have their headquarters in Brussels; SHAPE (Supreme Headquarters Allied Powers Europe) is in the south of the country, near . Since January 1993, the WEU has been headquartered in Brussels.

76

Textile industry

The textile industry is primarily concerned with the production of narrative (YARN), and clothand the subsequent design or manufacture of clothing and their distribution. The raw material may be natural or (fake) unnatural using products of the chemical industry.

The textile industry includes every business involved in growing or producing fibers, such as cotton growers and sheep farmers, those who make the fiber into thread(yarn) those who make the thread into cloth; and those who dye(colour), bleach and finish the cloth. The textile industry also includes chemical companies who make synthetic (artificial) fibers and other(all) resultant products. Then there are the retailersandEntiresalers of all these textiles.

Textile industry in Belgium

Textile, woodworking and furniture industry

In 2009 the Belgian textile, wood and furniture industry realised a turnover of 10.5 billion Euros, of which 71% was realised abroad.

The 2,430 companies of this industry employ Around 49,000 plus people and invested over 300 million Euros in 2009. an added value worth 2.6 billion euros and a positive trade balance more than 1.8 billion Euros, the sector offers a major contribution to Belgium‘s prosperity (wealth).

Innovation and diversificationThe current position of the Belgian textile, wood and furniture industry is partly due to a strategy of innovation and diversification. During the last 20 years our industry has experienced an extremely important adaptation or reworking process. There is one major constant: the companies increasingly target to differentiate themselves from the competition by developing and manufacturing different products. Today textile, wood and furniture industry supply a very various range of products and service and this will undoubtedly

77 increase further. Each company is seeking a niche – although this is sometimes a volume product – that is defendable in a global environment. Worldwide playersIn some of these places, Belgian textile, wood and furniture companies are between the world leaders. For instance, Belgian laminate flooring manufacturers aren‘t only innovators, but also worldwide market players in their segment. Through a combination of technological innovation and project, Belgian manufacturers of mattresses and bed bases have managed to achieve a leading or top reputation in Europe country. Belgium is also among the absolute world top when it comes to designing garden furniture, where our companies shine because of their advanced design as well as their innovative choice of materials.

Growing subsector of technical textiles, a number of companies are specialized or expert in protective textiles. They manufacture materials with specific characteristics or feature which protect people in their work; fire fighter clothes, bullet-proof t-shirt&shirt, signalisation clothing for road workers, etc. Currently, artificial(false) grass is one woof the high-tech products of the Belgian carpet and mat industry. Three Belgian manufacturers are world players in this field. Many international and national football teams play their home matches on Belgian artificial grass. Home interior: The home interior is very important market for the textile, wood and furniture industry.Over half the products are intended for this market. Just think of the furniture industry (seating,furniture, mattresses, etc.) and the interior and central textiles industry (carpets, upholstery fabrics, textile wall coverings, etc.). But our industry also produces many other interior and central products and building Factors, such as laminate flooring, parquet, doors, windows and frames, etc. Other important subsectors of the textile industry are clothing fabrics, spinning mills and textile finishing. In the wood and furniture industry, there is also major production of board material – especially chipboard and fibreboard, mutually uneven and processed - and wooden packet such as crates, pallets and tailor-made packaging.

78

This mosaic of extremely various and dedicated activities and products is what makes our Belgian textile, wood and furniture industry so high achieving.

The textile, wood and furniture industry has 10 main subsectors: interior textiles technical textiles clothing textiles spinning mills textile finishing furniture industry wood based panels building Factors packaging other wood products

79

Textile industry in India

The Textile industry in India have reach tradition, after agriculture, is the only industry that has generated or produce huge employment for both skilled, unskilled and semi-skilled labor in textiles. The textile (sector) industrygenerating second largest employment in India. It offers direct employment more than 35 million in the country. The share of textiles in total exports was 11.04% during April–July 2010, as per the Ministry of Textiles. During 2009-2010, Indian textiles industry was pegged at US$55 billion, 64% of which services domestic demand.

History

Map of handlooms in India, 1985

The archaeological surveys and studies have found that the people of Harappan society knew weaving and the spinning or roatating of cotton four thousand years ago.Reference to weaving and spinning (roatating) materials is found in the Vedic Literature also.

There was textile trade in India during the early centuries.A block printed and resist-dyed fabrics, whose origin or begining is from Gujarat is found in tombs of Fostat, Egypt. This proves that Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were to a large extent.Large quantity of north Indian silk were traded through the silk route in China to the western countries. The Indian silk were frequently exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there was large export of Indian cotton to the western countries to meet the need of the European industries for industrial revolution. Consequently there was development of nationalist movement like the famous Swadeshi movement which was headed by the AurobindoGhosh.

There was also export of Indian silk, Muslin cloth of Bengal, Bihar and Orissa to other countries by the East Indian Company.

80

Role of Textile Industry in Belgium

Basically Belgium has main Tourisms and diamond industry and they have major income depend on this industry, with this industry Textile business also prevailing. Generally Belgium import a textile product they have smaller production of cotton , yarn, and they also export of Felts and other non-woven fabrics, Waste and Tow Staple, Filament Yarn, W&G Slacks Shorts and Pants, Specialty and Industrial Fabrics.

Activities For over 35 years, BMS has offered products and systems for all Division ofthe textile industry.

Be it for spinning, weaving, knitting, tufting, dyeing and finishing, BMS has applications whichallow productivity and quality improvement.

The electronics and computers used in the BMS products are state-of-the-art, offering thereliability required by the textile environment. Our installation teams are familiar with textiles andservice is available worldwide. Together with LOEPFE in Switzerland and SEDO-TREEPOINT inGermany, BMS belongs to the Italian SAVIO technologies group.

Role of Textile Industry in India

Unlike other main textile-producing countries, India‘s weave industry is comprised mostly of small-scale, nonintegrated spinning, plaiting, finishing, and apparel- making enterprises. This unique business structure is primarily a legacy of government policies that have supported labor-intensive, small-scale tasks and discriminated against larger scale firms Composite Mills. Moderately large-scale mills that integrate spinning, weaving and, at times, fabric finishing are common in other major textile-producing countries. In India, however, these types of mills now account for about only 3 percent of output in the textile sector. About 276 fused mills are now functioning in India, most owned by the free sector and many deemed financially ―sick.‖

• Spinning. Spinning is the process of converting cotton or manmade fiber into yarn to be used for weaving and knitting. Basically due to deregulation launch in the mid- 1980s, spinning is the most joined and technically proficient sector in India‘s textile

81 industry. Average plant size remains small, however, and knowledge outdated, relative to other major producers. In 2002/03, India‘s spinning sector contained of about 1,146 small-scale independent firms and 1,599 larger scale autonomous units.

• Weaving and Knitting. Weaving and knitting converts cotton, artificial, or mixed yarns into woven or knitted fabrics. India‘s weaving and knitting zone ruins highly patchy, limited, and labor-intensive. This sector entails of about 3.9 million handlooms, 380,000 ―powerloom‖ enterprises that operate about 1.7 million shows, and just 137,000 looms in the different compound mills. ―Powerlooms‖ are small firms, with an average loom capacity of four to five owned by free entrepreneurs or weavers. Modern shuttle less looms excuse for less than 1 percent of loom capacity.

• Fabric Finishing. Fabric last (also referred to as processing), which includes dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is also dominated by a large figure of self-regulating, small scale enterprises. Overall, about 2,300 workstations are operating in India, comprising about 2,100 autonomous units and 200 units that are unified with spinning, knitting, or knitting units.

• Clothing. Wear is produced by about 77,000 small-scale units classified as domestic manufacturers, maker exporters, and fabricators (subcontractors).

Growth of Textile Industry

India has now completed more than 50 years of its independence. The analysis of the growth pattern of different segment of the industry during the last five spans of post- independence era reveals that the evolution of the industry during the first two decades after the neutrality had been remaining, though lower and growing had been considerably slower during the third decade. The growth thereafter picked up emotionally during the fourth decade in individually and every sector of the business. The chief level of its growth has still been reached during the fifth span i.e., the former ten years and more mostly in the 90s. The Textile Policy of 1985 and Economic Policy of 1991 focusing in the track of liberalization of economy and trade had in fact fast-tracked the progress in 1990s. The spinning headed the growth during this period and man-made fiber industry in the organized sector and decentralized plaiting sector.

82

Importance of Textile Industryto Belgian economy

. 2011 Nominal (Current) GDP: $513.4 B . 2011 Nominal (Current) GDP per Capita: $46,878

2008 2009 2010 2011 Real (Constant) GDP Growth 1.0 -2.8 2.3 1.9 Rate (%) Rank of Belgium as U.S. Export Market in 2011: 12th Largest

Rank of Belgium as Source of U.S. Imports in 2011: 27th Largest  12th Largest Rank as U.S Export Market  27th Largest Rank as Source of U.S Imports  Highest export of shape in the world, so it can break to expand textile market in Belgium threw Diamond industry in the world  the textile industry are clothing fabrics, whirling mills and textile finishing. In the wood and chairs industry, there is also major production of board material – especially chipboard and fibreboard, both rough and see to - and wooden packaging such as tin lizzie, pallets plus tailor-made packaging.

Importance of Textile Industryto Indian economy

 Second largest producer of textile sand dresses after China.  Second largest maker of cotton in the world  Second leading employer in India after gardening – Nonstop Employment to 35mn. People.  Organizes about 12% of India‘ exports.  Contributes about 14% to Industrial production.  Contributes about 4% to GDP.  Deal made in Textile sector since take-off of TUFs scheme is Rs.208000

Government Incentives

83

Government strategies have largely been favorable to the textiles industry. The policies aim to ensure that the industry is transnationally competitive interims of built-up and exports.Besides so long as various schemes, there are various other statutes, including fiscal policies (governing customs, excise, sales tax, etc.), rules, initiatives, incentives, etc concluded which government extends support to the industry.

Future of Textile industry in Belgium

Luxurious electricity threat to Belgian industry’s future Brussels, March 27, 2013 – Belgian industry pays a much higher energy price than its competitors in nearest states. This is a result of a study by Deloitte ordered by Febeliec, the association of manufacturing consumers. The main causes are taxes on power and other government measures in the countries analysed. If this trend is continued, being of the trade in our country is susceptible.

 For the first time it has been analysed just how much industrial customers in Belgium, the Netherlands, France and Germany pay for their voltage. The results show significantly higher prices in our country.  This schoolwork clearly shows that Belgian industrialized consumers pay significantly more for their electricity price (market price, communication costs, taxes and prices), than their rivals abroad, this as a concern of government action in the countries alarmed. The difference varies in function of consumption in addition to region between 12 and 45%.  Furthermore and at continual policy, Febeliec expects that the situation might rapidly deteriorate supplementary in the coming years. Urgent measures are therefore necessary in order to safeguard the future of our industry, diesel-powered of our benefit and key factor for work.  ―If we dearth to keep industrial employment in Belgium, the energy flier needs to be summary urgently. The the system hold the key to do this. We thus ask that governments in our country take up this challenge with the highest priority and bring

84

down the price level to the one in our competing neighbour countries‖, says Peter Claes, boss of Febeliec.  Belgium ranks particularly low where taxes and extra charge are concerned. While near countries limit these surcharges, for instance for energy demanding deeds or finished a digressive pricelist and a cap, these additions go through the roof in Belgium.  For the Entire of the Belgian industry, this comes down to a surcharge of several hundreds of millions of euros per time. ―At constant policy, the competitive burden of the Belgian industrial consumer will, moreover, rapidly further increase in the coming years. This is a threat for industry that matches the one caused by wage costs‖, says Peter Claus. Future of Textile industry in India

Indian Textiles-Major Domestic Growth Motorists

Increasing retail penetration - Textiles and clothing merchandising comprise 40% of organized retailing in India. Share of organized retailing to increase from about 5% currently to about 24% by FY 2020.

Higher disposable income –The percapita income of the masses has been increasing regularly and is estimated at USD 1200p.a leading to consumption of Textiles increasing at 11% CAGR. Higher level of working women-Propensity to spend in the case of working women is higher by around 1.3 times as compared to a housewife. It Is estimated that the population of working women has increased to a round 32 % in FY 2010 from 26 % in FY 2001. Increase in nuclear families –average household size has decreased to about 5.0 in FY 2010 from 5.36 in 2001. As are salt, per house hold consumption is increasing. Favorable demographic profile –The percentage of earning population (15-60 years) in the total population is rising. This group is about 60% of the total population Higher growth in urban population-The urban population is growing gradually. The favorable demography coupled with rising urban people and income levels will act as a key growth factor for the Indian textile and apparel Industry.

85

Bigger usage of credit cards.Sustainable real GDP growth view of around 8% p.a., increasing industrial output, rising disposable income, vibrant construction activity etc. to drive demand for home textiles.Hotel room demand is expected to grow at 10% p.a. for next 5 years necessitating addition of room capacity–driving demand for home textiles.

86

Belgium Exports

$332 billion (2011 est.) $282.3 billion (2010 est.)

Exports - commodities machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs

Exports - partners

Germany 19.1%, France 17%, Netherlands 12.2%, UK 7.2%, US 5.3%, Italy 4.7% (2009)

Imports

$332.4 billion (2011 est.) $284.6 billion (2010 est.)

Imports - commodities raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products

Imports - partners

Netherlands 19.1%, Germany 16.4%, France 11.3%, UK 5.4%, US 5.3%, Ireland 5.3%, China 4.1% (2009)

Reserves of foreign exchange and gold

$26.81 billion (31 December 2010 est.)

Import export of India

Textile manufacturing lingers to shift to low cost Asian countries.

87

Increasing cost of labour, shortage of raw material and other key funds like power, rising domestic claim is restricting China‘s ability to further growth its share in the world trade there by making it as fourth large steam porter of textiles.

Buyers need to divers if tracking risk.Obtainability of raw materials, especially cotton, integrated operations and design skills in India.

Favorable demographics, rising income and populace levels, and rising retail penetration in other developing countries (other Asia countries, Latin Americaetc.)

Conclusion

 The area of Belgium is only 30,528 sqkm, it is very small in compare to India.

 Population of Belgium is only 10,438,353 in compare to India but it compare with

area India have more population rate per square Km.

 Belgium have not Hindu population the major part is Roman catholic in compare

of India have major part of population is Hindu.

 Birth rate is 50% of Indian birth rate in Belgium.

 The primary source of law and the basis of the political system of the Country

were established on February 7, 1831. Where as in India primary source of low

and the political system are shared as central as well as state government of the

country.

 Legislative powers in Belgium are divided between the national, the regional and

the community levels. Whereas Indian constitutions defines the power

distributions between the federal Government (Central Government) and State

Government.

88

 The King of the Belgians is the Head of State and the Prime Minister of Belgium

is the head of government in a multi-party system. Where as in India the head of

state is President of India and Prime minister of India is Head of Government.

 The Belgian Company Law is very poor in euro pean Country. It implemented in

1993. Where as in India have a strong Government law of Company like the

Indian Companies act 1956 it designed after large provisions in this act.

 The Consumer Law in Belgium framed by Trade practices and consumer

information and protection act 1991. It provides the precautions ageist fraud,.

Undisclosed information controlled by central government.

Where as in India have various acts like the competition act 2002, the Consumer

Protection act 1986, the essential commodities act 1955. And it also includes the

various consumer courts like district, state and central consumer court and

council. And the Indian Government also provide the Indian Consumer protection

councils in every district.

 The Government law includes the health law 1977 and India has The

Transplantation of Human Organs Act, 1994, The Prevention of Food

Adulteration Act, 1972, and The Prevention of Food Adulteration Act, 1954.

89

“GROWING INDUSTRY & SECTOR IN BELGIUM AND AUTOMOBILE INDUSTRY IN BELGIUM”

90

Belgium growth industry sector Overview

The Economy of the Belgium is the 30th largest in the world, with an estimated 2011 gross domestic product (nominal) of $381.4 billion. Primary exports include Machinery, equipment, chemicals, finished diamond, metal products and food stuffs. Major trading partners include the United States, China, The Netherlands, Germany, U.K. and France. A newly industrialized country, the Belgium economy has been transitioning from one based on agriculture to one based more on services and manufacturing. The Goldman Sachs includes the country in its list of the Next Eleven economies.

DEMOGRAPHIC OVERVIEW

Population 10,839,905 (January 2011 EST.)

Age structure: 0-14 years: 16.1% (male 857,373/female 822,303) 15-64 years: 66.3% (male 3,480,072/female 3,419,721) 65 years and over: 17.6% (male 760,390/female 1,074,477) (2011 est.)

Population growth rate:1.903% (2011 est.)

Birth rate:22.34 births/1,000 population (2011 est.)

Death rate:12.02 deaths/1,000 population (July 2011 est.)

91

An overview of Belgium’s economy

Belgium‟s open economy and financial sector made it especially vulnerable to the economic downturn, and the country faces several structural challenges on the road to recovery.

Geographically, economically and historically, Belgium is at the core of the European Union. In 1951, it was one of the founding members of the European Coal and Steel Community, the precursor to today‟s EU.

Belgium‟s Economy – Key Facts

• Belgium‟s GDP per capita is above the euro area average. However, there is a notable difference between GDP per capita in the more affluent northern region of Flanders, and the southern region of Wallonia.

• The World Economic Forum (WEF) Global Competitiveness Report for 2011/2012 ranked Belgium 15th out of 142 countries, and it was ranked 1st in terms of health and primary education.

History of Belgium:

Like many of the world's countries, Belgium has a long history. Its name is derived from the Belgium, a Celtic tribe that lived in the area in the first century B.C.E. Also, during the first century, the Romans invaded the area and Belgium was controlled as a Roman province for nearly 300 years. Around 300 C.E., Rome's power began to diminish when Germanic tribes were pushed into the area and eventually the Franks, a German group, took control of the country.

After the arrival of the Germans, the northern part of Belgium became a German- speaking area, while the people in the south remained Roman and spoke Latin. Soon after, Belgium became controlled by the Dukes of Burgundy and was eventually taken over by the Hapsburgs. Belgium was then later occupied by Spain from 1519 to 1713 and Austria from 1713 to 1794.

92

Belgium's Government:

Today, Belgium's government is run as a parliamentary democracy with a constitutional monarch. It has two branches of government. The first is the executive branch which consists of the King, who serves as the head of state; the Prime Minister, who is the head of government; and the Council of Ministers which represents the decision-making cabinet. The second branch is the legislative branch which is a bicameral parliament made up of the Senate and the House of Representatives

Industry and Land Use of Belgium:

Like many other European countries, Belgium's economy consists mainly of the service sector but industry and agriculture are also significant. The northern area is considered the most fertile and much of the land there is used for livestock, although some of the land is used for agriculture. The main crops in Belgium are sugar beets, potatoes, wheat and barley.

Geography and Climate of Belgium:

The lowest point in Belgium is sea level at the North Sea and its highest point is Signal de Botrange at 2,277 feet (694 m). The rest of the country features a relatively flat topography consisting of coastal plains in the northwest and gently rolling hills throughout the country's central portion. The southeast, however, does have a mountainous region in its Forest area.

Belgium – Industry

Industry, highly developed in Belgium, is devoted mainly to the processing of imported raw materials into semi finished and finished products, most of which are then exported. Industry accounted for 24% of GDP in 2001. Steel production is the single most important sector of industry, with Belgium ranking high among

93 world producers of iron and steel. However, it must import all its iron ore, which comes principally from Brazil, West Africa, and Venezuela. About four-fifths of Belgium's steel products and more than three-quarters of its crude steel output are exported. In recent years, Belgian industry has been hampered by high labor costs, aging plant facilities, and a shrinking market for its products. Nevertheless, industrial production rose by nearly 11% between 1987 and 1991, as a result of falling energy costs (after 1985) and financial costs, and only a moderate rise in wage costs. Industrial production continued to rise in the late 1990s; 1997 registered a 4% growth rate, while it slowed to3.1% in 1998. The industrial growth rate in 2000 was 5.3%; it was -0.5% in 2001, and registered an estimated 0.6% in 2002.

Production of crude steel declined from 16.2 million tons in 1974 to 11.3 million tons in 1991, while the output of finished steel dropped from 12.2 million tons to 8.98 million. By 1981, 60% of all Belgian steel production and 80% of all Wallonian steel (concentrated in Charleroi and Liège) came under the control of a single company, the government-owned Cockerill-Sambre. Plans for this firm, whose government subsidies ended (in conformity with EC policy) in 1985, called for heavy investment in plant modernization, coupled with cutbacks in employment and plant capacity.

TOURISM INDUSTRY

Tourism in Belgium is one of Belgium's industries, and its accessibility from elsewhere in Europe still makes it a popular tourist destination. The tourist industry generates 2.8% of Belgium's Gross Domestic Product and employs 3.3% of the working population (142,000 people). 6.7 million People travelled to Belgium in 2005. Two thirds of them come from the larger nearby countries - France, The Netherlands, the United Kingdom and Germany

CALL CENTER INDUSTRY

94

According to research in 1999 carried out by Belgacom and Interlabor, 85% of call centres in Belgium are in-house, 10% are external and 5% are both (MIS Project, 1999). Of the in-house centres, 88% have fewer than 20 agents, most of whom work normal hours; external centres are bigger (approximately 100-120 agents) and are more accessible (open 24 hours); staff work atypical hours. Temporary workers account for approximately 10% of agents. As for location, 50% of call centres in Belgium and 52% of workers are to be found in the 02 telephone area code zone (that is, Brussels, most of Flemish Brabant and some of ); the next most common areas are the 03 area code zone (Antwerp: 12% of call centres and 16% of workers) and the 09 zone (: 5% of both call centres and workers). The telephone areas in Wallonia account for less than 13%. This priority of Brussels relies on a concentration of high-tech enterprises, particularly those located near Zaventem Airport

DIOMAND INDUSTRY

Featured Diamond Profiles:

Antwerp World Diamond Centre

Antwerp is situated in Belgium, the heart of Europe. The city on the banks of the river Scheldt has always been a centre of commerce and culture.

Where it began:

The Antwerp World Diamond Centre was born. Lodewijck Van Bercken was said to have invented the process of polishing diamonds with diamonds. In his honor, a statue was erected at the Meir. Today, Antwerp still has the best diamond workers in the world. Antwerp Cut is the trade mark for perfectly processed diamonds.

Antwerp World Diamond Centre (AWDC) Founded in 1973 as the “Hoge Raad voor Diamant” (HRD) or the “Diamond High Council”, and reformed into a private foundation called Antwerp World Diamond Centre (AWDC) in 2007, AWDC is the officially recognized representative organization of the Belgian diamond trade and –industry, acting as a spokesman and co-coordinator of all activities in the diamond sector. It is the marketing organization of the Antwerp diamond areas.

95

Antwerp World Diamond Centre is more than ever committed to maintaining a healthy and prosperous diamond industry. Antwerp exports to over 90 countries, spreading the quality image and the philosophy of the Antwerp diamond sector.

AGRICULTURAL INDUSTRY:

The kingdom's agricultural sector has been declining for some time. Currently, only about 2 percent of the population is employed in agriculture and it accounts for just under the same percentage of the nation's GDP. The main areas of the country under cultivation are in the northern region of Flanders; however, small farms exist throughout Belgium. Some 39 percent of the nation's territory is used for some type of agriculture, including the production of forest products. Approximately 1 percent of the land is used for permanent crops.

There are 2 main trends in Belgian agriculture. The first is the disappearance of the small family farm. Farming is increasingly dominated by large agribusinesses. Over the past 3 decades, the number of small farms has decreased by 80 percent. The second major trend is the expanding output of the sector. New technologies and scientific crop research have combined to produce greater yields. Therefore, even if farmers' total acreage declines, they are still producing more. Between 1995 and 1999, crop production increased by 9 percent.

96

AUTOMOTIVE

Gillet:

Gillet Type Public Industry Automotive Founded 1994 Key people Tony Gillet Products Hand-built cars Employees --

Gillet is a Belgian automobile manufacturer, started in 1994 by former racing driver Tony Gillet. The company produces the Vertigo sports coupé, an ultra- lightweight (990 kg) 'bespoke' and hand-built sports car. The first Vertigo was powered by a Ford Cosworth 2.0 litre 4-in-line, later evolutions are powered by more powerful and noble engines: the 3.0 litre Alfa Romeo V6 engine and the 4.2 litre Ferrari Maserati V8 in the latest evolution called Vertigo.5.

Tony Gillet was a successful racing driver, winning the Belgian hill-climb championship for several consecutive years and competing in two Dakar Rallies. In 1982 he became the Belgian importer for Donkervoort, a Dutch Lotus Super Seven-styled car. In January 1990 he broke the 0 to 100 km/h (62 mph) record for production cars with a time of 3.85 seconds in a specially modified Donkervoort. The Vertigo held the 0–100 km/h record for production cars at 3.1 seconds, but this has since been broken.

97

ELECTRONICS

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Consumer Electronics industry in Belgium, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Belgium for free:

The global economic downturn had a negative impact on consumer electronics in Belgium over the last two years of the review period however during the last quarter of 2010 there were signs of economic recovery. According to trade sources, this turnaround boosted the confidence of retailers and manufacturers and it has resulted in a positive outlook for consumer electronics in 2011.

MINING AND NATURAL RESOURCES

Countries covered: Belgium

Belgium's primary energy supply is being met by oil and natural gas itself, with the industry accounting for nearly two-thirds of the country's energy supply. The Belgian oil and gas industry posted good growth rates over the recent years, but since 2009 the industry has been facing a decline. Recovery of the sector is expected to begin from 2011, though the growth rate will remain unsteady till 2015. Belgium has no domestic production of oil and natural gas and is completely dependent on imports. However, due to the central location of the country,

98

Belgium has a critical role to play in the oil and gas supply chain across Europe. Belgium has become a major center for gas flows in Europe and the country's huge oil refining sector has made it an exporter of refined products

PHARMACUITICAL INDUSTRY

The Pharmaceutical Value Chain is divided into two specific phases: Research & Development and

Supply Chain, with each phase consisting of four sub-activities

According to Deutsche Bank, the global market for pharmaceutical products is~$800mm. 52 The industry has recorded10% of annual sales growth in the last 30years, and underlying volume growth has remained strong

North America and Europe constitute more than 70% of global pharmaceutical sales, but significant

FISHING INDUSTRY

In the period 1950 –1970, landings by Belgian vessels mounted to approximately 50,000 tons of which 90 per cent was landed in Belgian harbours. During the period 1986-1990 landings were relatively stable at around 35,000. In 2003, total landings stood at 26,320 tons. In terms of value, landings dropped about 25 per cent (constant prices) over the same period. By far the most important species in value is sole, representing 49 per cent of the total landing value in 2003, although only 21 per cent of the landing volume. Plaice, in contrast, contributed 26 per cent by volume but was only 14 per cent of the total in value. The most valuable species in 2003 was turbot: less than 2 per cent of the landings represented 5 per cent of the value. Cod, the fourth most important species, represented 7 per cent of the landings by volume and nearly 5 per cent by value.

99

SWOT ANALYSIS OF BELGIUM COUNTRY FOR DOING BUSINESS IN IT

Strength Weakness Opportunity Threat

SWOT ANALYSIS OF INDIA COUNTRY FOR DOING BUSINESS IN IT

Strength Weakness Opportunity Threat

Investors have some market opportunity for growth of the industry.

Renewable Energy Information Communication Technology (ICT) Biotechnology Food and Beverage Medical Devices

100

Belgium is preferable for business because some beneficial factors

1. Open economy

2. Access to European decision-makers

3. Access to a high quality workforce

4. Knowledge and creativity-based centre of excellence

5. Access to 500 million European consumers

6. Logistics springboard

7. Intelligent tax regime

8. Affordable real estate prices

9. A great place to live

Investors of Belgium have face some problems with Belgium to Invest

The cost of Raw materials is prohibitive. The Belgium Industry in general, lags behind its global and even Asian counterparts. It has been continuously confronted and impaired by various challenges for so many decades. A number of issues have been raised and addressed both locally and internationally. Belgium industry as a whole remains incompetent as indicated by inaccessible and poor-quality drugs, aggravated by the threat of inappropriate use, the insufficient quantity and quality manager, poor research and technological development. Despite regulatory efforts from both the government and some of

101 the private sector, the product market remains inflicted by perception of substandard, counterfeit drugs that threaten the life of the patients.

CONCLUSION

Despite the crisis affecting the sector, Belgium remains a major player in automobile assembly. With plants like Opel Antwerp, Ford Genk, Audi Forest /Brussels, Volvo Europe in Ghent, Van Hool (buses) and Truco, we can rightly claim to have established a strong foothold in the vehicle production market.

In 2008, Belgium turned out 724,498 vehicles, most of them destined for the export market. Of this total number of vehicles made in Belgium, 434,875 were private cars, 245,256 were vehicles for transporting people or goods, 43,068 were utility vehicles weighing in excess of 3.5 tonnes and 1,286 were coaches.

Belgium is an attractive country for vehicle manufacturers. Not only does it offer a highly qualified workforce with a proven track record of high productivity; it also has the ports to enable rapid distribution and research centres to test parts and components and look into the potential of new technologies.

The automobile industry in Belgium is at a crossroads. To remain a major economic sector, the industry is turning to high technology, e.g. hybrid technology and new materials in particular.

On this portal you will find more information about the Belgian automobile industry. You will find information about the companies, the industry and news & events all related to the Belgian and European automobile industry. In the company database you can add your own company profile for free.

102

Before the globalization process, this industry was very relevant in Belgium, with many production sites localized here to exploit logistic, infrastructural, political and economical advantage. But in the second part of ‟90 the competition from “low cost” countries started to hit Belgium and progressively all OEMs are abandoning it. Local production in 2010 was only 338.000 units, the 26th globally. In 2005 local production was 926.000 units. Actually the car production is concentrated in 4 plants:Ford at Genk, GM at Antwerp, Volvo at Ghent and Audi in Brussels.The local automobile market was at its peak in 2008 when the financial crisis hit the market (in 2009 at 476.000, down 11% on previous year). However the recovery was immediate. The car passenger achieved new records booth in 2010 (547.000) and 2011 (572.000). The LCV market ended the 2011 at 61.000 units. In the 2011, with light passenger

Industrial Automobile is an industrial sector with a horizontal nature because the industry supplies products and solutions for the total value chain of diverse production companies, ranging from “Factory Automobile” (machinery construction, cars, assembly, etc) up to “Process Automobile” (chemicals, pharmaceuticals, foodstuffs, oil, etc.).

Industrial automobile is crucial for the development of our companies in all segments of the production and value chain. It ensures more efficiency, inexpensive production and high-quality products in a strongly changing environment with an ever increasing number of products adapted to the customer‟s wishes.

The sector is strongly characterised by globally organised foreign manufacturers of hardware and software products for industrial automobile. This sector continues to develop extremely quickly through the very widespread presence of these manufacturers in our country, the relatively numerous engineering and integrator companies, rapidly rising demand for

103 newer and more highly performing solutions from our local production companies and ever shorter PLCs (Product Life Cycles) in this type of high- tech product for outsourcing this usually non-core activity in production companies.

In addition to these foreign players, a series of Belgian university or non-university companies develop and produce industrial hardware and software for industrial automobile in explicit market niches so that even more tailored solutions can be offered to ever more demanding users. Thanks to the international success which they post and partly thanks to the strong support from the Belgian and regional authorities, these companies can develop their activity on an accelerated basis into a promising, dynamic industrial activity.

Belgium can be a good test area for anyone who wishes to penetrate further into the rest of Europe;Work takes place close to all European headquarters of companies and European ;Orgalime (European Engineering Industries Association) is established in Belgium;Agoria (Belgian technological industry federation) has very strong representation in Belgium for the Industrial Automobile sector and defends and supports its interests;There is a favourable investment climate in Belgium for these companies as Belgian companies are very heavily industrially automated.The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.

Producers of industrial automobile products are present but there are a few of them in terms of numbers. They are oriented more towards niche markets and develop hardware and software for specific solutions such as mechanical engineering, but are growing steadily and gaining in importance in the Belgian economy.

104

In addition to suppliers of products we have a large group of “Solution Providers”, who play an increasingly strong role. They integrate the total solution for the customer and look for the most optimum technical and economic solution. In addition, there are consulting and sector consultancies which influence the sector indirectly.

In 2008, Belgium turned out 724,498 vehicles, most of them destined for the export market. Of this total number of vehicles made in Belgium, 434,875 were private cars, 245,256 were vehicles for transporting people or goods, 43,068 were utility vehicles weighing in excess of 3.5 tonnes and 1,286 were coaches.The automobile sector is also a major employer in Belgium. In 2007, accounting for more than 100,000 jobs, including close to 25,000 in assembly plants alone.

An embryonic automobile industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automobile component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. Total restrictions for import of vehicles were set and after 1970 the automobile industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Eventually multinational automakers, such as, though not limited to, Suzuki

105 and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately leading to the establishment of an automobile industry in India. A number of foreign firms also initiated joint ventures with Indian companies.

The automobile industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world,Chennai is home to around 35-40% of India's total automobile industry and for this reason it is known as the Detroit of Asia. It is on the way to becoming the world's largest Auto hub by 2016 with a capacity of over 3 million cars annually.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automobile vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected

The players in the area of industrial automobile in Belgium are strongly dominated by major suppliers such as ABB, Rockwell, Siemens, and Schneider, who in addition to supplying products and services also offer installations and customer-oriented solutions. They act as value added sales divisions. Their activities are service oriented but they also offer added value in the pre- assembling of solutions for Belgian industry.

106

Producers of industrial automobile products are present but there are a few of them in terms of numbers. They are oriented more towards niche markets and develop hardware and software for specific solutions such as mechanical engineering, but are growing steadily and gaining in importance in the Belgian economy.

In addition to suppliers of products we have a large group of “Solution Providers”, who play an increasingly strong role. They integrate the total solution for the customer and look for the most optimum technical and economic solution. In addition, there are consulting and sector consultancies which influence the sector indirectly.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citroën is about to begin their operations by 2014. Chennai accounts for 60% of the country's automobile exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and

107

Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automobile manufacturing regions around the country.

In recent years, India has emerged as a leading center for the manufacture of small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also export small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles to Asian and African markets, and is in preparation to launch electric vehicles in Europe in 2010. The firm is also planning to launch an electric version of its low-cost car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan Automobile India, which will market the product worldwide. Renault Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in another small car project. While the possibilities are impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy weakens.

108

Gujarat on way to become a new automobile industry hub of the region

Vadodara

Canadian firm Bombardier manufactures railway wagons in its state- of-the-art facility near Vadodara Delhi metro train‟s wagons are made in Bombardier‟s Gujarat facility.

Halol

General Motors India hast its one of the two car manufacturing units of India at Vadodara district‟s Halol. This was the first important automobile plant in Gujarat. It was established here back in 1990s.Ceat tyres has radial tyre plant at Halol. Apollo Tyres is present in Vadodara with its Limda plant since 1991.

Sanand

Nano car manufacture plant of Tata Motors is situated here.By 2014 American automobile company Ford and French auto giant Peugeot will also start manufacturing at Sanand. Maruti is also scouting for land to set up its manufacturing facility in Sanand. Similarly Hero and Bajaj have hinted their intentions to set up manufacturing facilities here

Gujarat Chief Minister Narendra Modi dreams of making Gujarat an automobile hub. His dream does not seem far-fetched as many auto makers are now flocking to Gujarat.After Tata Motors relocated the Nano plant to Sanand having faced a myriad of problems at Singur in West Bengal,

109

automakers have been making a beeline to set up manufacturing bases in Gujarat. Gujarat came onto the radar of auto companies after the government went overboard to help the troubled Tata Motors shift its base from Singur. An investor-friendly government, transparency, good infrastructure, easy connectivity to ports and an efficient rail and road network make it a hotspot for the automobile industry.

The entrepreneurial sprit and a strong base of auto ancillary units makes the environment congenial for automakers in Gujarat. With all the automakers focused on exports, Gujarat becomes attractive with its well developed ports. The transparency in dealing with officials, ease of setting up a business has also been hailed as big advantages here. While auto manufacturers face frequent labour strikes in other states, Gujarat has not been confronted with major labour issues, though General Motors's Halol plant saw a labour issue.

Gujarat chief minister Narendra Modi today said that Gujarat is emerging as a global hub in the automobile sector.After signing of the State Support Agreement (SSA) agreement with Maruti Suzuki for its manufacturing facility here, Modi said that Gujarat has emerged as a prominent global hub in the automobile sector.

Ford India will set up its manufacturing unit right next to Tata Motors' Nano factory at Sanand. Ford had sought 550 acres from the state government to set up a mother plant together with an ancillary park. This would be Ford's second plant in India. It already

110

has a manufacturing unit in Marginalia Nagar, Chennai, which has an annual capacity of 200,000 units.

Maruti Suzuki India is in talks with the Gujarat government over the possibility of setting up its seventh plant in India. Maruti along with vendors, could invest up to Rs 18,000 crore (Rs 180 billion) in Gujarat as it looks to produce about 20 lakh (2 million) units in the long run in the state. While Gujarat is a preferred location, Maruti is also looking at other states for expansion.

French auto major Peugeot is considering setting up a manufacturing facility in India and is scouting for 150 acres of land in Gujarat. Top company officials meet chief minister Narendra Modi and expressed their desire to set up a manufacturing plant. The company is impressed with the fast-paced development of Gujarat and is in talks with the state government regarding a suitable place for the plant.

Hyundai plans to build a diesel engine plant in Gujarat with an installed capacity of 150,000 units per annum. Hyundai plans to invest Rs 400 crore (Rs 4 billion) for the plant which will be operational by 2013-14. Hyundai officials have visited a site at Dholera.Maximum numbers of car launches happen during the festive season in India.

"The journey started with Tata Nano, Ford, Peugeot, and now Maruti has entered in Gujarat which will strengthen the 'brand Gujarat' as a globally preferred business location," he said Maruti Suzuki will set up two units in two phases in the backward taluka of Mandal-Becharaji in Ahmadabad district

111

Belgium is an attractive country for vehicle manufacturers. Not only does it offer a highly qualified workforce with a proven track record of high productivity; it also has the ports to enable rapid distribution and research centres to test parts and components and look into the potential of new technologies.Flanders also has its very own innovation network, called Flanders' DRIVE. This initiative offers companies and research establishments like universities the possibility of exchanging know-how and launching joint projects. The network sets out to boost the production and development capacities of suppliers based in Flanders

The Belgium Industry in general, lags behind its global and even Asian counterparts.It has been continuously confronted and impaired by various challenges for so many decades. A number of issues have been raised and addressed both locally and internationally. Belgium industry as a whole remains incompetent as indicated by inaccessible and poor- quality drugs, aggravated by the threat of inappropriate use, the insufficient quantity and quality manager, poor research and technological development.

Despite regulatory efforts from both the government and some of the private sector, the product market remains inflicted by perception of substandard, counterfeit drugs that threaten the life of the patients. Substandard products may be cheaper, there is a perceived quality problem and thus there is lowered patronage for their use, affecting even true quality generics products.Aside from the regulatory mechanisms, accepted standards in manufacturing, such as the Good Manufacturing Practice (GMP), are still just an ideal concept.

112

The implementation of full compliance to GMP has been repeatedly postponed. Compliance to regulatory bodies and accepted standards remain widely unimplemented. The inability of the bureau and low compliance in accepted standards undermines the quality, safety and efficacy of the pharmaceutical product. Research remains at the academic level and is not translated to commercial development. Local industry hardly innovates, in terms of basic research to provide inputs for further local development. The industry‟s manufacturing capacity is primarily limited to compounding, formulating, and packaging. It remains highly reliant on imported raw materials and chemicals. The production process in the local industry basically involves the conversion of the imported basic raw materials into industry preparations or finished pharmaceutical products.

113