1] Stand on the Shoulders of the Giants   In this time and age, each and every company is trying its best to be different. Innovation seems to be the name of the game and entrepreneurs are literally scratching their heads to be original, creative and off beat in their sales and marketing strategies. And of course, the call of the times is to have a unique selling proposition, out-of-the-box strategies. But I can’t help but wonder why entrepreneurs single-handedly have to do all the spadework. Can’t they take reference from the past? And most importantly, doesn’t this question call for a passing thought at least?   In simple words, the entrepreneurs need not ‘reinvent the wheel’ again and again. Just look out, what your peers and predecessors have done. Examples will be in plenty. If that’s not enough, check out some renowned books written by distinguished sales and marketing gurus. Almost all the marketing strategies will find a mention here.   Have you heard of the phrase ‘standing on the shoulders of the giants’? The dictionary meaning says “Using the understanding gained by major thinkers who have gone before in order to make intellectual progress”. Don’t you think this is the best way out.   Some of the well-known books that entrepreneurs can peruse include,   - The E-Myth by Michael Gerber   - Magnetic Marketing by Dan Kennedy   - Meatball Sundae by Seth Godin   - Duct Tape Marketing by John Jantsch   All of them are great read; hopefully you like them and most importantly help you expand your Business.   2] Bridging the Gap between Actual Offer and Sales Copy   You are all set to open your sales innings on an encouraging note. And you have already crafted a grand sounding sales copy for that purpose. The best thing being you are pretty sure that your copy will strike a chord with the prospects.   But as someone said, Man proposes and God disposes, your sales efforts fall apart like a pack of cards. The buyer has out rightly rejected your offer. But wasn’t your sales copy fool-proof, then why was this red-light shown.   While not disputing for a moment, about the brilliance of your sales copy, however, there may be a combination of factors that may have contributed in this deal going awry.   Flaunt your price-tag- Never, be ashamed about the price of your products. Customers or prospects simply don’t flip through the pages, ignoring the price element, for the simple fact that price has a fundamental role to play, before a sales deal is finally closed. If your sales copy is really good, then be rest assured that you have hit the bull’s eye. However, don’t go about feeling sorry for you have given your product a price tag that it’s worth of.   Clear-Cut Offer- Be sure that you mention the price. Furnish complete details of the products and services you are offering and any additional bonuses you are planning to unfold in the future.   Purchase Options: Give the prospects a variety of ways to order: phone, fax, mail, online. The more diverse you make, there are chances that you will receive more offers.   Payment Options –Present different kinds of payment methods. Purchasers are keenly interested in knowing the various payment options available.   Contact Information: Some brilliant marketing messages have been dumped as the prospects have failed to find the contact details   Don't miss your sale at the offer point.   3] How to attract Your Prospect to the Sale   Did you ever try to figure out why your customers are not reverting back, when you are sending them some attractive marketing offers? May be he (she) hasn’t even taken the pain to read your offer. But what more can you expect from the customers, who are flooded with more than 3,000 marketing messages. So it is but natural for them to dump each and every marketing offer that comes their way   There are certain marketing filters you need to take into account, before the customers start reading your copies and are ready to communicate with. Here are the steps:   Step 1- Know your customers- This makes the message more targeted and helps you draw his (her) attention. And your customers or prospects will get a feeling that you deeply care for them.   Step 2- Keep a tab on the customers- Make it a habit to take follow-ups with your customers, probably you will be able to strike a better deal.   Step 3- Give value to your customers - Every marketing message that you are putting out should be from the prospects viewpoint. It should bring profits to the prospects first. Moreover the message that you send should do a little more than what you sell. It should educate, engage, entertain and helps your prospects some way or the other.   Step 4- Give customers due importance- Once your prospects fall in to your trap, see that you keep in touch with him(her) on constant basis. New customers and the old customers need the same kind of attention. Shower them with your attention, and see how your fortunes turnaround.

  Analysis Paralysis   Analysis Paralysis, do these two words ring a bell. Analysis Paralysis simply means over-thinking or too much of meaningless brainstorming on a particular topic. But, this is unwarranted and uncalled for. Too much thought process, dilutes the entire process, with zero results at the end of the day.   When a good idea is brought to the table, considerations and reconsiderations are called for. But it should be within the limits. Or else, the idea starts appearing more complex and its institutionalization on the ground even more complicated.   In sports, analysis paralysis prevents an athlete from reacting quickly, in politics; analysis paralysis can lead to long drawn out debates on a particular issue, Business analysis paralysis can keep the business owners from taking risks.   To keep analysis paralysis at bay:   Write down the pros and cons ASAP   Arrive at a decision   Jot down the steps for execution   Delegate those steps   Follow-ups   Entrepreneurs are more known for their risk riddled and not for their hesitant decisions. Take a cursory glance at the above mentioned steps and thereby make well-informed decisions. Undoubtedly, some will work and some won’t. But at least, you will get to explore the big-bang opportunities.   Serving Apricots tactically   A young army personnel in the US army was assigned a kitchen patrol duty. He was particularly responsible for the apricots in the chow line. However, most of the soldiers showed no interest in the apricots.   But this clever man decided to draw the attention of the soldiers by employing an innovative serving tactic.   Instead of asking the soldiers “would you like to have apricots,” he simply said, “One apricot or two?”   This became a successful strategy, as most of the soldiers took at least one apricot.   Just look back and figure out, how many times you gave your prospects/customers a scope to “slip” without a sell. Now do you think a change in your marketing strategy would have helped?   How many times do you give your prospects/customers a chance to "slip" sans any sales? Sometimes, don’t you feel that prospects and customers simply need a push in the right direction?   Tips to draw attention of the prospects/customers   Speak about your products/services with loads of enthusiasm   Take for granted that prospect/customer wants what your offer   Speak off the advantages   Compare competitive products available in the Market and Marketplace.   - Ask for the sale! Later...ask again!   If you practice these tips, you'll be glad to see the good number of your products and services making its way in the market.   Constant Follow-ups v/s Inconsistent Follow-ups   Follow-up is considered crucial for any sort of business organization. But few entrepreneurs take follow-up quite seriously, while few take it with a pinch of a salt. Most small business owners fit in one of the two categories.   1] Inconsistent and Infrequent follow-ups- Most of the business owners don’t follow-up. So such owners are uselessly coughing up hard-earned money. Your contacts won’t know you and will consider you only an occasional pest.   2] Constant follow-ups. If you constantly bombard your contacts with countless messages, you will be considered as a mass marketer. And most probably, your mails can be directed to trash as spam mails.   So now you know that follow-ups can be a tricky issue. Each group will be reacting differently to your follow-ups. So eventually, you will have to test your group.   Some follow-up principles to keep in mind:   -Consistent follow-up should be done   -Send good number of messages to keep yourself alive in contacts' memory   -Mail valuable and educational materials along with your marketing messages   -Your messages should help build relationships with your contacts   -Be personal, and somewhat entertaining   By following these principles, you will eventually find the perfect follow-up pace that is perfect for you, and your prospects.

  India’s power-packed manufacturing sector seems to be going great guns. Strong skills in product, process and capital marketing have apparently emerged as the dynamic driving factors. The country’s long manufacturing lineage and higher education system has also given a fillip to this sector, thereby cementing its stand on the global scale. It is no surprise that ‘Trade with India’ chant has been gathering momentum like never before, with single-point focus on the Indian manufacturing sector.   According to a UNIDO analysis, India figures among the top 12 producers of manufacturing value added services. The analysis reportedly appears in the International yearbook of Industrial Statistics 2009. In textiles, India wrapped up the fourth position after China, in case of electrical machinery and apparatus, India is ranked fifth. In the basic metal category, India’s ranks sixth, seventh in chemicals and chemical products, 10th in leather, refined petroleum products, leather products, and nuclear fuel; twelfth in motor vehicles and machinery and equipment. All these booming sectors have ensured that trade with India will invariably be a profitable preposition for any country.   Manufacturing sector contributes around 15 percent of GDP of the country   Growth Trends that’s encouraging foreign players to trade with India   Manufacturing sector has become a major confidence booster for the Indian economy as per major indicators Nomura’s Composite Leading Index (CLI), UBS’ Lead Economic Indicator (LEI) and ABN Amro’ Purchasing Managers’ Index (PMI).   The sector has registered an upsurge at 55.3 for April 2009 from a low of 44 in December 2008 and 49.5 for March 2009, according to ABN Amro Purchase Managers’ Index (PMI), an indicator of manufacturing activity in the country based on a survey of 500 companies. The value of new projects announced in the second half of 2008-09 stood at US$ 13.2 billion.   Leather and its products, which is the 10th largest among the Indian manufacturing sector is also among the top ten export earners of the country. The glass manufacturing sector has reported a double-digit growth. Thanks, to its free industrial license policy. The Indian industry is presently dominated by 10 big players. Gujarat Glass and Associated Glass Industries and Hindusthan National Glass & Industries figure among the top ten. Glass exports account for 10 per cent of the total industry revenue.   According to the latest survey conducted among manufacturers, in the current quarter, six of the 12 sectors may witness exponential growth. These sectors are textiles, metals and products, cement, machinery, FMCG and miscellaneous industries.   Special economic zones (SEZs) reported export growth of 33 per cent during the year to end-March 2009, over-riding the country’s overall exports growth of just 4 per cent, according to the Commerce Department. Export billings from tax-free manufacturing hubs were worth US$ 18.16 billion last year.   India’s robust manufacturing sector has triggered number of Foreign Multinationals to Trade with India   • LG is chalking out a blueprint to make India its global manufacturing hub for its mobile handsets. The company plans to export mobile phones to Europe and the Commonwealth Independent States (CIS) from India.   • Luxury brands - Louis Vuitton and Frette are also heading towards India with the basic purpose of converting India into a manufacturing base for their products.   • SkodaAuto, is also making its way towards India. The company will start manufacturing cars in India by 2010. The cars will be then be exported to neighboring markets like Nepal, Sri Lanka, Burma and Bangladesh.   • Aircraft producer Airbus is looking at India as on the chief centers for design and development for it’s a 350 plane.   • Royal Philips Electronics, Europe’s biggest consumer electronics group, intends to make India a nodal point for developing and manufacturing products for global markets and assembling components across its core sectors like lifestyle, lighting and healthcare.   • Cryolor Asia Pacific, a wholly-owned subsidiary of France-based Cryolor SA, is planning to establish a facility to produce storage equipment for liquefied gases. The company has announced to invest US$ 8.9 million in the unit coming up at Melmaruvatur, 110 km from Chennai.   • Samsung will probably be investing US$ 100 million in its manufacturing plant near Chennai and make its centre point of action.   • Hyundai has transformed India into a global manufacturing and export hub, especially for its small cars. The i10 is being produced only in India and exported to the world over. India is Hyundai’s single-most largest base outside Korea.   • Suzuki too is planning to make India its manufacturing base for small cars. Ritz is manufactured only in India and exported to Europe.   Why Trade with India will thrive in the future   As per the study carried out by McKinsey Global Institute, India will be the largest consumer market in the world by 2025 from twelfth in 2005. The best reason to trade with India is its consumer’s purchasing power, which will reportedly quadruple and reach around US$ 1.5 trillion by 2025.   There is good news for the manufacturing sector from the Investment Commission of India. According to the commission, the sector is estimated to receive US$ 180-billion over the next five years.

  1] Adapt Automation   Many small businesses are a one man army. But most of them for many unknowable reasons avoid automation. However, there is more than one reason to take the automation way.   I personally feel that automation is the only way forward. And I am sure that many other owners will agree to this. Businesses, especially the smaller organizations put in lots of efforts, like work longer and ever faster, because they believe that hard work will fetch those overnight results. Did someone say overnight success takes 20 years? Certainly, there is no shot-cut to success. Hard work unarguably could turnaround things. And more often than not, you will able to achieve many breakthroughs. But doing hard work, without even giving a passing thought to smart work will only cause more misery both in work as well as personal life. Sickness and stress will follow.   But if you blend hard work with smart work, results will be really amazing. What we are talking about is automation. When you set your sales and marketing on an autopilot mode, you can:   • Mail mass marketing messages in seconds (and automatically)   • Dissect and analyze the database instantly (to craft more targeted messages)   • Introduce on-line sales and employ credit card system (without your intervention)   • Keep tab on all your contacts (and retrieve information easily)   • Recruit less number of employees   • Spend more time with yourself   • Eventually ….make more money!   Do nothing else, but invest in automation, if you are looking forward to getting true value for money.   2] Know the Prospects   Know your prospects. This might help in sealing a deal, much sooner. Better Knowledge about the prospects, helps in crafting a more pointed, powerful, and effective message. What say?   If you know for certain what product or service you are intending to sell, then it is taken for granted that you know your target audience. However, this is not the case always. Some entrepreneurs make determined efforts to choose a product or service to sell, but don’t take much interest in trying to locate their target audience.   Consequently, the marketing messages generated appear very general, passive and completely ineffective. Sans any targeted marketing strategies, you will achieve only a small portion of the estimated sales target.   So, for crafting effective marketing messages, you must:   1). know your prospect. Their age, gender, education, etc. The more you know, the more targeted your message will be.   2). Provide your prospect with a face. Bond with someone who is similar to your prospect. You should know this person properly.   Once your know your prospects, selling your products becomes much easier, as you are armed with specific marketing messages for specific audience. And your prospects will start feeling that you have written a message especially for him.   3] Employ Auto responder   Today customers expect service ASAP. They hardly care whether your internet is working or not, or whether you are encountering any other serious road blocks or not. They expect just fast and efficient service. Even small business owners believe in serving their customers to the best of their abilities.   An autoresponder has emerged as a blessing for all small business owners, who are so busy in their daily lives that they hardly find time to attend all inquiries. An autoresponder can take over this job and let you be free on this aspect at least.   The benefits of Auto responder   • They give customers and prospects, an instant response. You won’t be having time right away to respond to the customer, but you can always go back to it later on. As of now, let the autoresponder handle the situation.   • They apprise the customers and prospects about your absence. Go globetrotting. An autoresponder will guide the customer with requisite details as to whom to contact for satisfying their needs, or gives them updates about your status. Customers will forgive absences, but won’t forgive no responses.   • They are capable of answering certain questions put forth by prospects and customers. Think of the most probable questions your contacts could raise? They can easily handle oft repeated questions.   • They help the customers and prospects know when a payment has been received. When you have made an on-line sale, your contacts of course will make an on-line payment. So your autoresponder will let them know that their credit card was fruitfully processed.   An autoresponder gives you some leeway, before responding to the customers and prospects. But do make it a point to respond them as fast as possible.

  Defining KPO: Knowledge process Outsourcing (KPO), is a kind of outsourcing, in which knowledge-related work is carried out by workers of a different company. The company may be located in the same country or in an offshore territory, basically to cut down cost. Unlike Business Process Outsourcing, KPO entails high-value work dealt by highly-skilled workforce.   Why Trade with India when it comes to SEO services?   If BPOs comes first, then KPOs comes next, or either way around. Nobody is better qualified than India, in providing KPO services. Spurred by country’s proven expertise in the BPO sector, the KPO sector too is gunning for greater glory. In fact, the sector has managed to cultivate a huge fan base in the western world. Trade with India is new buzzword in the modern world, and the KPO sector is apparently driving this buzz to greater heights.   Though India faces stiff competition from few countries like, India, Philippines, Mexico, Ireland, Russia, Canada and China, India undoubtedly has emerged as the frontrunner, if one factors in the comparative costs analyses of various aspects that occupy special significance in the KPO world.   Following factors are taken in to consideration for comparative cost analyzes between various countries like, India, Philippines, Mexico, Ireland, Russia, Canada and China.   • Resource Pool   • Resource Cost   • Government Polices   • Infrastructure   • Knowledge full / Expertise   Resource Pool   • India has some of the finest technical universities and the Indian Institute of Technology stands class apart. Around, 75,000 IT graduates and 20 lac English-speaking graduates pass out annually.   • The Philippines churn out only 380,000 graduates annually, of them only 15,000 are equipped with core technology knowledge.   • Russia may claim to have the third largest population of engineers and scientists but not many speak English.   • China's basic problem is brain drain. Chinese technical schools churn out 50,000 graduates annually, but majority migrates to west. The ones that stay back are not acquainted with English.   • Canada has good educational system, with a qualified labor force of more than 16 million.   • In Ireland 34,000 graduate annually, only 5,000 belong to the technical field.   • Mexico provides U.S. companies with millions of Spanish-speaking people.   Resource Cost   • In India labor costs have been on the upswing but have been finely balanced by falling telecom rates. Normal salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500.   • Philippines have similar labor costs; technical salaries range from $5,000 to $10,000 annually and back office from $3,000 to $8,000.   • In Russia IT salaries range from $6,000 to $10,000. The country is lagging behind at the back-office front. Telecom structure costs are above average.   • In China, technical salaries range from $3,000 to $8,000 annually. Still a budding BPO market.   • In Canada being a near shore alternative to U.S. has higher IT salaries as opposed to most offshore countries. Technical salaries here range from $25,000 to $50,000.   • In Mexico labor costs is fairly lower; companies can save up to 50% by outsourcing to Mexico. The major bottleneck appears to be unreliable infrastructure.   • In Ireland Tech salaries range from $25,000 to $35,000, making Ireland really expensive in terms of labour.   Government Policies   • Outsourcing is woven into the fabric of the country, so much so that the Indian Government has appointed a national minister exclusively looking after the IT portfolio. Additionally, the government is for IT foreign ownership and imposes no export taxes.   • In Philippines the Government excuses companies from export taxes, fees, dues and licenses if they set up shop in one of the country’s IT parks. Government has appointed a special task force to look after the IT and KPO services.   • Russian Government follows old tax laws and structures that don’t benefit business.   • Chinese government’s trade policies and stifling regulations don’t favour trade. But things may turn for the better when China blends into the World Trade Organization.   • In Canada, there is negligible political risk. Government gives tax breaks on IT exports. NAFTA gives free trade market for IT services.   • Mexican government has so far failed to offer high level of incentives.   • In Ireland Favorable tax laws and technology-education fund provides incentives. Low or no political risk.   Infrastructure:   • Within the IT parks the facilities are excellent. But outside, one can’t be sure of the facilities provided.   • In Philippines in the last 13 years, IT parks have come up. Discarded U.S. military bases are being used as dependable telecom infrastructure.   • Russia’s few IT parks are good, but outside the quality and quantity nosedives.   • In China Infrastructure can be problem outside major cities, but China is enhancing its networks, particularly telecommunications as fast as U.S.   • Canada has excellent telecom infrastructure   • Mexico excellent technology parks   • Ireland also has solid technology parks   All the aforesaid factors have emboldened India’s status as the right KPO destination. Trade with India on the KPO front is a major draw for foreign players, considering India’s ever-growing population of highly educated people who take up high-end knowledge-based work and research with consummate ease. With the burgeoning of engineering and technical institutes in India, skilled manpower will never become an issue with India. As per the study conducted by Confederation of Indian Industry, India’s shift from a BPO destination to a KPO destination is inevitable.   The cost-efficiency factor   India’s unique selling proposition is its quality yet cost-effective workforce. So naturally, trade with India is turning out to be an attractive proposition for foreign companies. For example, drafting and filing of patent application in the US is very expensive. To draft and file an application in the United States and Trademark Office, companies have to fork out almost $10,000 to $15,000. If companies outsource their work to India, they can save up to 50 percent.   KPO services that could be outsourced to India:   • Training & Consultancy   • Research & Development   • Business and Technical Analysis   • Intellectual Property (IP) Research   • Learning Solutions   • Animation & Design   • Network Management   • Business & Market Research   • Pharmaceuticals and Biotechnology   • Medical Services   • Writing & Content Development   • Legal Services   • Data Analytics   More foreign firms heading towards India   To capitalize on the rising opportunities in India, many leading MNCs have come forward to trade with India like, Patent Metrix, Cantor-Colburn and Schwegman, Lundberg, and Woessner & Kluth have set up shop in India. Pharma giants like Astra Zeneca and GlaxoSmithKline have rolled out drug discovery centers at low-cost destinations to propel their research and development activities. Renowned telecom and IT companies, like Motorola, Intel, IBM, Cisco, Texas Instruments, Nokia and Philips have also launched their R&D centers in India.   It is anticipated that India will have higher growth rate in the KPO sector of 45 percent as opposed to 25 percent in the BPO segment. However, BPO will continue to play lead role in revenue generation and job creation, due to the voluminous nature of this industry.

  The land of snake charmers has emerged as the El-dorada of techies. The dust bowl of the world has risen to dizzying heights. The world can’t help but wonder; how Indian Manpower has been looked up to as above, and distinct from the rest of the masses.   India’s huge exceptionally talented manpower are working for some top companies in the world, armed with some highly valuable degrees. Headquartered in America and other developed countries of the world, these companies are known to house only the best-of-best high-brow intellectuals. But Indian’s got what it takes (read; brains) and it’s no surprise Indian manpower is making their presence felt in a big way.   The following statistics might leave any American dumbfounded   • 32 % of NASA Scientists are Indians.   • 42 % of doctors abroad are Indians.   • 14 % of XEROX employees in the United States are Indians.   • 17 % of INTEL Scientists are Indians.   • 28 % IBM employees are Indians.   • 34 % of Microsoft employees are Indians.   India’s rich intellectual wealth is not a short term, disposable wealth. Thanks to the IIMs and the IITs. The Indian Institutes of Management graduates are billed equally or higher than the graduates of reputable business schools like Yale and Harvard. Interestingly, Indian Institute of Technology takes in less than 3 percent of their applications- a rate remarkably lower than most competitive American Universities. Additionally, more than 229 universities and 458 engineering colleges have been powering not just India’s but world’s economic growth.   Indian doctors, nurses, engineers, cooks and software developers are in high demand all across the globe. Indian manpower, especially in the Information Technology domain is ruling the roost. Interestingly, India over the years has become a happy hunting ground for developed countries. For instance, Germany has introduced a ‘Green Card’ to attract Indian manpower. Among the best opportunities on India’s plate is UK’s niche highly skilled migrant programme for young professionals.   Previously, however, Indian engineers, doctors and Business managers were in high demand. Nonetheless, over the years, there has been a basic transformation in the global labour market. Now, there are a growing opportunities for teachers, nurses and chefs in Australia, New Zealand, and other developed markets.   More and more, Indians are being directly hired by companies in the telecom, advertising, hospitality, biotech and financial sector from far of places like Germany, Hungary and Malaysia.

  Indian Trade Exports have received a radical boost in the recent years, thanks to the 274 Special Economic Zones (SEZs) operational on the Indian soil, since April 2000. In the fiscal year 2007-2008, India’s exports from the functional SEZs, were up 92 percent at Rs, 66, 638 against Rs. 34, 615 in the previous year.   Exports from the functioning SEZs during the last five years  

Clearly, SEZs have emerged as the key that have opened new door of opportunities for foreign players to Trade with India. They have emerged as one of the strongest pillars contributing to India’s Export growth.

SEZ- Overall Scenario

India was one among the foremost Asian countries that toyed with the idea of setting up an Export Processing Zone (EPZ) model to promote Indian exports. The idea translated into realty in 1965, with the first EPZ being launched in Kandla. However, in an attempt to further smoothen the roads for MNCs to trade with India, a need was felt to flaunt something new, precisely a zone that will make up for all the missing elements that came in the way, while promoting Indian exports, be it, stifling controls and clearances, under- rated infrastructure facilities and a oscillating fiscal regime and so forth. All this negative factors influenced the announcement of Special Economic Zones Policy in April 2000.

The principal objective of the policy was to promote SEZs as a prime driver for economic growth, by factoring in aspects such as, quality infrastructure coupled with compelling fiscal packages, and bare minimum regulations.

Broadly speaking, the objectives for launching SEZs in April 2000 are as follows:

• to promote trade with India, especially exports of goods and services

• to create more economic activity

• to attract investment from domestic and foreign sources

• to generate more employment opportunities

• to develop modern infrastructure facilities

Special Economic Zones can be defined as a specific region that has economic laws that are more flexible than a country’s usual economic laws. SEZs are a living roof of the potential of export-led growth strategy in propelling a nation’s into higher growth plane.

The Indian SEZ policies promote establishing of these zones in the government, private or joint sector. This policies offer brilliant opportunities, inviting both Indian and International foreign players to set up operations in India for manufacturing of goods and services. The units set up in the zone, need to be foreign exchange earners but will be free from any value addition or minimum export promotion requirements.

The Government of India has converted around eight EPZs into SEZs, to attract foreign players to trade with India. This include, Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra), Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Noida (Uttar Pradesh). Additionally, three new Special Economic Zones have started functioning, this include, Indore (Madhya Pradesh), Manikanchan - Salt Lake (Kolkata) and Jaipur.

SEZ Act 2005

According to the SEZ Act 2005, State Governments have a major role to play in promotion of exports and setting up of relevant infrastructure. A Single Window SEZ approval mechanism has been set up via a 19 member inter-ministerial SEZ Board of Approval (BoA). The applications submitted by different State Governments/UT Administration are perused by BOA periodically. All decisions of the Board of approvals are taken with consensus.

As per the SEZ Rules, different minimum land requirement are considered for different class of SEZs. Every SEZ is segregated into a processing area where only the SEZ units would be set up and the non-processing area where the support infrastructure would be established.

The SEZ Rules provide for:

• Single window clearance for setting up of an SEZ;

• Single Window clearance on matters relating to Central as well as State Governments;

• Single window clearance for setting up a unit in a Special Economic Zone;

• Simplified compliance procedures and documentation with an emphasis on self certification

Administration of SEZs

To effectively ensure the proper functioning of SEZ, a three tier administrative set up has been formularized.

(a) The Board of Approval- the top body in the Department

(b) The Unit Approval Committee at the zonal level- For approval of units in the SEZs and other pertinent issues.

(c) A Development Commissioner- to head each zone.

The Unit Approval Committee scrutinizes the performance of each SEZ units annually. The units are considered liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.

Advantages for SEZ Developers

The advantages that will compel overseas companies to Trade with India, or in each words form joint ventures and attract foreign investment in India include,

• Free import/domestic procurement of goods for development, operation and maintenance of SEZ units

• 100 percent Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50 percent for next 5 years and 50 percent of the ploughed back export profit for next 5 years.

• Free from minimum alternate tax under section 115JB of the Income Tax Act.

• External commercial borrowing by SEZ unit’s up to US $ 500 million in a year sans any maturity restriction via recognized banking channels.

• Free from Central Sales Tax.

• Free from Service Tax.

• Single window clearance for Central and State level approvals.

• Free from State sales tax and other levies as extended by the respective State Governments.

The major advantages available to SEZ developers include:-

• Free from customs/excise duties for development of SEZs for authorized operations approved by the Board of Approval (BOA).

• Income Tax exemption on export income for around 10 years in 15 years under Section 80-IAB of the Income Tax Act.

• Exemption from minimum alternate tax

• Exemption from dividend distribution tax

• Exemption from Central Sales Tax (CST).

• Exemption from Service Tax

Operational Special Economic Zones

Functional SEZs that encourage overseas player’s trade with India include:

1. Cochin Special Economic Zone

2. SEEPZ Special Economic Zone

3. Kandla Special Economic Zone

4. Madras Special Economic Zone

5. Visakhapatnam Special Economic Zone

6. Falta Special Economic Zone

7. Surat Special Economic Zone

8. Noida Export Processing Zone

9. Manikanchan, Salt Lake SEZ (Gems and Jewellery)

10. Indore Special Economic Zone (Multi Product)

11. Jaipur Special Economic Zone (Gems and Jewellery)

12. Mahindra City-SEZ (Information Technology)

13. Salt Lake Electronic City-SEZ (Software Development and IT enabled Services)

14. Mahindra City-SEZ (Apparel and fashion Technology)

Foreign Direct Investment Policy on SEZ

Foreign Direct Investment upto 100% is allowed via automatic route for all manufacturing activities in Special Economic Zones (SEZs), but there are few exceptions which include:

• Manufacturing of arms and ammunition, explosives and allied items of defense equipment, defense aircraft and warships

• Atomic substances

• Distillation and brewing of alcoholic drinks

• Narcotics and psychotropic substances and hazardous chemicals

• Cigarettes/cigars and manufactured tobacco substitutes

• Sectoral norm as informed by Government shall apply to foreign investment in services

New SEZs

SEZs schemes have been inspiring both Indian and foreign players to set SEZs in India. The list of developers who have recently set up fresh SEZs on Indian soil include,

• Nokia SEZ in Tamil Nadu

• Quark City SEZ in Chandigarh

• Flextronics SEZ in Tamil Nadu

• Mahindra World City in Tamil Nadu

• Motorola, DELL and Foxconn

• Apache SEZ (Adidas Group) in Andhra Pradesh

• Divvy's Laboratories, Andhra Pradesh

• Rajiv Gandhi Technology Park, Chandigarh

• ETL Infrastructure IT SEZ, Chennai

• Hyderabad Gems Limited, Hyderabad

  India, a big mart for the mining industry. Coal India Ltd (CIL) and its eight subsidiaries are vigorously looking out for suitable suitors to develop its 18 abandoned coal mines. Arcelor Mittal, Anglo Australian major Rio Tinto, and Essar Mineral Resources are among the top 10 contenders for the post. These mines having estimated reserves, exceeding 1,600 million tonnes, had been abandoned because they were water-logged and CIL apparently lacked resources to develop them.   India literally is a gold mine, in terms of rich mineral resources. India’s unprecedented higher growth trajectory, demands rapid development of the mining sector, on which manufacturing sector largely depends and sustains. India in toto, produces 89 minerals; of which 4 are fuel minerals, 11 metallic, 52-non-metallic and 22 minor minerals. Even the world markets have being heavily banking on the Indian Mining Industry.   Why world can’t undermine India’s mining industry’s potential?   • India is the largest producer of mica blocs and splittings   • Third among global chromite producers.   • Third in the production of coal, lignite, barytes.   • Fourth in the production of iron -ore.   • Sixth in the production of bauxite and manganese ore.   • Tenth in the production of aluminum   • Eleventh in the production of crude steel   Mines: An Overall scenario   India, a big mart of Mineral and Metals Industry Mineral Production   In the year, 2007-08, the total value of mineral production in the country has been nothing short of spectacular as it was projected at around Rs. 99533.10 core-an increase of 9 percent over the previous year. This projection excludes the revenue generated from atomic minerals. In 2007-08, the provisional value of fuel minerals was around Rs. 68,229.40, metallic minerals Rs. 19,755.66 crore and non-metallic minerals Rs.11, 548 crore.   Exports   The major item of export during 2006-07 was cut diamonds, which comprised 59.2 percent, iron ore’s contribution was 21.8 percent, granite 5.8 percent, alumina 2.3 percent, precious and semi-precious stones 1.0 percent and chromite contribution’s was of 0.98 percent. Building and monumental stones, emerald, coal, marble and bauxite are the other important minerals exported during the year 2006-07.   Government Initiatives   Survey and Exploration initiatives by Govt. of India:   • Geological Survey of India (GSI): An organization that is into earth science studies was established in 1851. It is a subordinate office of the Ministry of Mines; Govt. of India   • Mineral Exploration Corporation Ltd (MECL): Since its incorporation in the year 1972, MECL is into mineral exploration activities and so far has added 129130 million tonnes of mineral reserves to the National Mineral Inventory.   • The Indian Bureau of Mines (IBM): It is a subordinate office under the Ministry of Mines. It is primarily into promotion and conservation of minerals, protection of mines, environment and scientific development of mineral resources of the country.   • Hindustan Copper Limited (HCL): Set up in 1967, it was established to take over all plants, projects, schemes and studies relating to the exploration and exploitation of copper deposits, including smelting and refining from National Mineral Development Corporation Ltd.   • National Aluminium Company Ltd (NALCO): Incorporated in 1981 it is Asia's largest integrated alumina- aluminium complex, comprising bauxite mining, aluminium smelting and casting, alumina refining, power generation, rail and port facilities.   Performance of Non-Ferrous Minerals/Metals   Aluminium   From April-November 2007, the total world aluminum supply was around 25.614 million tonnes as against the world consumption of 25.387 tonnes, thus showing an excess of around 0.227 million tonnes.   Copper   The copper production in India is on the upswing, from a meager 47,500 tonnes per year in 1997, it has increased to 9,47,500 tonnes in 2007-08, thus transforming India into net exporter of refined copper.   The estimated production, consumption and export of refined copper from India for the year 2007-08 are as follows:   • Refined Copper Production: 7, 20,000 MT   • Refined Copper Consumption: 7, 00,000 MT   • Refined Copper Export: 2, 00,000 MT   Lead & Zinc   Lead & Zinc production is also showing upward spiral. From 2, 53,461 tonnes in 2006, zinc production rose to 2, 89,678 tonnes in 2007. The production of saleable lead increased from 31,952 tonnes in April-December 2006 to 41, 258 tonnes in April-December 2007.   Major Indian Players in the Indian Mining Sector   The prominent players in the Mining sector are segregated on the basis of the minerals manufactured by them namely,   • Exploration and Production of Coal / Lignite: Coal India Ltd, Neyveli Lignite Corporation, IISCO etc.   • Rock - Phoshate and Barytes Mining: Rajasthan State Mines and Minerals Ltd, Andhra Pradesh Mining Development Corporation.   • Exploration of Metals (Copper, Bauxite, Iron Ore, Chromite, Lead- Zinc): NALCO, BALCO, Mineral Exploration Corporation Ltd, Bharat Gold Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd, Hindustan Copper Ltd, Sikkim Mining Corporation.   • Copper - Ore Mining: Hindustan Copper Ltd.   • Bauxite Mining and Aluminium Production: National Aluminium Company.   • Iron Ore Sector: National Mineral Development Corporation, Kudremukh Iron Ore Company, Steel Authority of India Ltd, Orissa Mining Corporation.   Global Companies in Indian Mining Sector   • Transworld Garnet Co., Canada   • Anglo American Exploration (India) BV, Netherlands   • Phelps Dodge Exploration Corpn, USA   • BHP Billiton,Australia   • Pebble creek Resources Ltd., Canada   • Meridian Peak Resources Corpn,Canada   • Rio-Tinto Minerals Development Ltd., UK   • Metdist Group, UK   • De-Beers Consolidated mines ltd., South Africa   Foreign Direct Investment (FDI) in the Indian Mining sector   Cent percent foreign equity holding is allowed on the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones.   International Cooperation in the Mining Sector   India has signed number of MOU in an endeavor to promote the Indian mining industry.   The list is as follows:   • MOU with Uzbekistan   • MOU with China   • India-Australia joint working group on energy and minerals   • Indo-French Working Group on Mineral Exploration and Development   • India-Canada Geoscsiences Working Group

  India’s real estate bellwether, DLF was currently under tremendous financial pressure, in the wake of the ongoing economic slowdown. However, as the saying goes, when the going gets tough the tough gets going, the company sold of its non-core assets to keep the company from sinking. If we keep these recent developments aside, India’s real estate sector seems to be forward-looking and buoyant. Thanks to India’s attractive demographic and economic scenario. According to the survey carried out by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst & Young, India is poised to become one of the biggest marts for global realty and investment firms.   Major Real estate Growth Drivers that help promote India’s big mart status include,   * The rise of India’s middle class, which has led to increase in demand for houses.   * India has second largest population in the world and the growth rate is still accelerating.   * Increase in FDI levels has led to commercial space requirements by foreign firms.   * Rise of retail sector.   * Easy flow of money.   Retail Real Estate: The Indian industry of Retail is a story of soaring successes. Wal-Mart, the American retail giant’s foray in to the Indian Territory, is a testimony to India’s rapidly growing graph in the retail sector. Retail chains, shopping centers and hyper markets are mushrooming like never before. Also, since 2006, Indian Government has facilitated foreign direct investment in retailing with 51 percent participation. The retailing sector is estimated to reach US$ 23 billion by 2010. The boom in the retail sector has been pushing forward India’s retail real estate industry.   Housing Real Estate Demand: The country’s unstoppable population growth, rising income levels, growing number of nuclear families, tax incentives, easy availability of home loans are leading the growing demand for houses and therefore increase in residential construction. The current shortage of houses stands at around 20 million units and the demand is expected to rise in the forthcoming years. So, investment in the housing real estate sector seems to be an interesting business proposition. India’s Tata Group has already geared up operations in this direction. The group plans to set up 15000 low-cost housing in the range of Rs. 3,90,000 and Rs. 6,70,000.   Structure: Real Estate Sector in India is still at its nascent stages. There exist only a few organized players in the market. Most of the real estate developers have limited presence. The top real estate companies in the country include, DLF, Ansal group, Hiranandani and Unitech.   Real Estate Investment Opportunities in India   • Office/ Industrial Complexes   • Residential complexs   • Commercial Space for Organized Retailing   • Hotels and Hospitality Sector   • Special Economic Zones   • Venture Funds   Major Projects Cleared by Foreign Investment Promotion Board   * Buoyed by the realty boom in India, Dubai-based Emaar group plans to invest USD 500.0 million   * CESMA International Pvt Ltd, a subsidiary of the Singapore government's housing agency is planning to set up township project at Hyderabad and Vijaywada along with the help of Andhra Pradesh   * Jakarta based Salim group plans to invest USD 100.0 million project at Kolkata   * Lee Kim Tah Holdings, Singapore based company intends to invest USD 115.0 million project at Chennai.   * IJM's USD 350.0 Mn project at Mohali, Chandigarh   * Keppel Land, Singapore's USD 13.0 million land acquisition at Bangalore for condominium project in JV with Puravankara.

  Move back US, its India all the way.   In 1970s, Indian pharmaceutical market was almost non-existent. But today, India has carved a niche for itself in the pharmaceutical domain. In fact, it has a grown in to a big mart for the Pharmaceutical Industry. In the wider world, India pharmaceutical industry ranks fourth in terms of volume and thirteenth in terms of value. Be it formulations, bulk drugs, generics, Novel Drug Delivery Systems, New Chemical Entities, or Biotechnology etc, Indian companies are dominating the marketplace that was traditionally manned by MNCs.   Interestingly, it’s the judicious mix of low R&D costs and highly-skilled resource pool have orchestrated India’s Pharmaceutical growth story. Moreover, the Indian Pharmaceutical industry seems to have prospered on the reverse engineering skills, by making optimum utilization of lack of process patent in the country. This has helped India offer products at some of the lowest prices. However, quality was never an issue, considering India has largest number of manufacturing plants approved by US FDA, second only to US.   Just a few says back there were reports in newspapers that dearth of funds have forced some dozen UK based small and medium seized life science companies and research institutes to explore low-cost collaborative opportunities in India. This report in itself testifies India’s growing potential as a Pharmaceutical giant   Made-in-India drugs popular overseas   Drugs made-in-India are exported to US, Europe, Central and Eastern Europe, Latin America and Africa. In 2007-08, India exported drugs worth US$ 7.2 billion to these countries.   According to RNCOS, a market research firm, Indian pharmaceutical exports are expected grow at a CAGR of 18.5 per cent. Also, patent expirations and noteworthy growth in the global generics market will help India catapult into the top league.   Indian Pharmaceuticals exports registered a significant growth rate of 30.7 percent in April-October 2008 vis-à-vis the corresponding period last year.   Indian Pharmaceutical Growth Graph Peeking   As per the study carried out by consulting firm IMS, Indian pharmaceutical market appears bullish. The market is estimated to grow at the rate of about 12-13 per cent in 2009.   India’s drug retail industry clocked an impressive growth of 13.3 percent during February 2009.   Domestic formulations market is estimated to record US$ 21.5 billion by 2015.   As far as Indian vaccine market is concerned, in 2007-08 it registered a growth of US$665 million, and is even growing at the rate of 20 percent. Exports market share is over US$ 360 million, while the domestic market share is US$ 300 million.   Pharmaceutical Retail on a higher growth plane   India reportedly has 5.5 million chemists and druggists, and the pharmaceutical retail market accounts just 2 per cent of the industry, but it is posting a magnificent year-on-year growth rate of 30-40 per cent. The pharmaceutical retail market is likely to cross US$ 10 billion mark in 2010 and will be worth US$ 12 billion –US$13 billion by 2012.   Made-in-India Generics making in roads in global markets   Once considered as a dirty business by the outer world, now generics are considered as a saving grace by the Big Pharma companies. However, Indian companies are experts in this arena.   Ranbaxy, Sun Pharma, Cipla, Wockhardt are few of the many Indian players that have emerged as top suppliers of cheap generics to the world.   Big Pharma companies in the outer world ignored generics, beacause its manufacturing required different chemistry skill sets and the biggest drawback being the margins were thin. On the other hand, patented drugs enjoyed a monopoly and earned multi-million dollar sales.   As per the report by IMS Health, Indian generic market will grow more than US$ 70 billion in the coming years, with more patented drugs going off patent. Indian generic manufacturers are gearing up to provide generic versions of these drugs.   India a big Mart and huge market for Research & Development   Indian government is planning to invest around 422.96 million for setting up six National Institutes of Pharmaceutical Education and research. This government initiative will help boost R&D in the pharmaceutical sector.   To improvise its R&D operations, biotechnology major, Biocon will be investing US$20.11 million in the next financial year.   Government Initiatives to boost India’s Pharmaceutical prospects on the global arena   Government initiatives to step up growth in the pharmaceutical sector include:   • Tax-breaks.   • Development of new drug molecules, clinical research etc.   • Two new schemes introduced—New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Programme.   Domestic and Foreign Investment   * Domestic investment in the pharmaceutical sector is estimated at US$ 6.31 billion. * FDI worth US$ 1.43 billion was invested from April 2000 to December 2008.   Future Ahead   The Indian pharmaceutical industry will be witnessing significant growth in the near future as spending on healthcare is spiraling like never before. Consumer spending on healthcare is estimated to increase from 7 per cent in 2007 to 13 per cent by 2015.