The electronics industry, especially meaning consumer electronics emerged in the 20th century and has now become

a global industry worth billions of dollars. Contemporary society uses all manner of electronic devices built in automated or semi-automated factories operated by the industry. The size of the industry and the use of toxic materials, as well as the difficulty of recycling has led to a series of problems with electronic waste. nternational regulation and environmental legislation has been developed in an attempt to address the issues

1.1 History
The generation of electricity began in the !"th century and this led to the development of all manner of inventions. #ramophones were an early invention and this was followed by radio transmitters and receivers and televisions. The first digital computers were built in the !"$0s with a slow development in technology and total sales. n the !""0s the personal computer became popular. % large part of the electronics industry is now involved with digital technology. The industry now employs large numbers of electronics engineers and electronics technicians to design, develop, test, manufacture, install, and repair electrical and electronic e&uipment such as communication e&uipment, medical monitoring devices, navigational e&uipment, and computers.

1.2 Current Position

'lectronic components have played a significant role in the evolution of several path-brea(ing technologies that have changed the face of the world that we live in today. The role of electronic components in this technology driven world is becoming highly evident, than(s to their extensive use in a wide range of electronic applications right from traditional computers, televisions, audio players, and telephones to more advanced electronic gadgets such as mobile phones, smartphones, )*%s, *+* players, portable media players, video games, home-theater systems, microwaves, and
1

printers. ,hile growth in the mar(et is being spurred by newer technological developments such as digitization of consumer entertainment, challenges are being created by performance critical product trends in the downstream electronic devices mar(et. The future of the electronic components mar(et depends on the pace with which the world adopts new generation electronic e&uipment. The electronic components mar(et suffered a ma-or setbac( during the 200.200" period as a result of the economic recession, which mauled down consumer/business confidence and per capita spending on electronics. Consumer and industrial electronics, T hardware, communications e&uipment and automotive electronics, all suffered significant disruptions in business activities sending (noc( on effects into the global electronic components mar(et. 0owever, the mar(et staged a smart recovery in the year 20!0 in sync with the recovery staged by the end-use industries. *emand for consumer electronics, such as 1C*s, 1'*s, and cooling systems started to gain momentum in the consumer electronics space while enterprise T infrastructure spending also staged a comebac( in the corporate sector. 2uture growth in the electronic components mar(et will be driven by growing popularity of digital infotainment, rise in penetration of electronic devices among households, fast evolving telecom infrastructure, and growing adoption of laptops/smartphones among enterprises as a (ey employee mobility tools. #rowing percentage of electronic content per car also brings the automotive industry into the spotlight as a (ey revenue spinning sector of the future. The research report titled 3'lectronic Components4 % #lobal 5utloo(6 announced by #lobal ndustry %nalysts, nc., provides a collection of statistical anecdotes, mar(et briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends and demand drivers, in addition to providing statistical insights. 7egional mar(ets briefly abstracted and covered include 89, #ermany, %sia, :;apan, China, ndia, <orea and Taiwan=. The report offers a compilation of recent mergers, ac&uisitions, and strategic corporate developments. %lso
2

included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide> Global Market for Electronic Components to Reach US 1!".# $illion by 2%1&' (ccor)in* to +e, Report by Global -n)ustry (nalysts' -nc.

1.3

Consumer electronics

Consumer electronics is that which is intended for everyday use, most often in entertainment, communications and office productivity. 7adio broadcasting in the early 20th century brought the first ma-or consumer product, the broadcast receiver. 1ater products include personal computers, telephones, ?)@ players, audio e&uipment, televisions, calculators, #)9 automotive electronics, digital cameras and players and recorders using video media such as *+*s, +C7s or camcorders. ncreasingly these products have become based on digital technologies, and have largely merged with the computer industry in what is increasingly referred to as the consumerization of information technology. The C'% :Consumer 'lectronics %ssociation= estimated the value of 20!! consumer electronics sales at 89A!B0 billion.

1.. Effects on the en/ironment

'lectrical waste contains hazardous but also valuable and scarce materials and up to C0 elements can be found in complex electronics. Electronic ,aste The 8nited 9tates is the world leader in producing electronic waste, tossing away about @ million tons each year. China already produces about 2.@ million tons :20!0 estimate= domestically, second only to the 8nited 9tates. %nd, despite having banned e-waste imports, China remains a ma-or e-waste dumping ground for developed countries.
3

The 8D') estimate that the amount of e-waste being produced - including mobile phones and computers - could rise by as much as B00 percent over the next decade in some countries, such as ndia. Sustainable electronics ncreasing environmental awareness has led to changes in electronics design to reduce or eliminate toxic materials and to reduce energy consumption. The landmar( 7estriction of 0azardous 9ubstances *irective :7509= and ,aste 'lectrical and 'lectronic '&uipment *irective :,'''= were released by the 'uropean Commission in 2002.

2.1 $asic -nformation

(rea0 Population0 Capital0 1ther ma2or cities0

$0C,000 s&. ms. C.2 million %sunciEn :)opulation F !.@ million= Ciudad del 'ste :centre of frontier trade with Grazil H %rgentina=, 'ncarnaciEn

3an*ua*e0

9panish, official language The native language I#uaraniJ is spo(en by the entire population

Currency0 E4chan*e Rate Electric Current0 5elephone Co)e0 -nternet Country Co)e0 Climate0 (/era*e 5emperature 0

)araguayan #uaranK )L 3#6 ! 89A M $.00 #uarani :*ec 20!!= 220%C :B0 0z= nternational Country Code - B"B .py 9ubtropical 2BNC to @BNC during 9ummer, and !0NC to 20NC during ,inter.

Go/ernment0

)residential 9ystem of government. Current )resident 2ernando 1ugo since %ugust 200.. www.presidencia.gov.py
5

5ourist -nformation0

Cataratas de guazO4 ,ater falls in the border with Grazil and %rgentina www.senatur.gov.py

2.2 Macroeconomic -n)icators

G6P0 89* !. billion :20!!= G6P Gro,th rate0 2%11 2%1% 2%%# 2%%! $P ".QP -@.BP B.$P :Table4 2.!-#*) growth rate of )araguay= -nflation 2%11 2%1% 2%%# C..P $.2 P !P :Table4 2.2- nflation rate of )araguay= E4chan*e rate0 1 US6 to GU(R(+2%11 2%1% 2%%# 2%%! $.00 $Q!@ $Q@B $@00 :Table4 2.@-'xchange rate of )araguay= 9orei*n )ebt0 89A 2.B Gillion :*ec. 20!!= 9orei*n re/enues0 89A @.B billion :*ec 20!!= Resources0 %griculture, 0ydropower, Timber, ron 5re, ?anganese, 1imestone. Minimum ,a*e0 89A @00. 2%%7 B0@! 2%%8 BCQ2 2%%! !0..P 2%%7 ..!P 2%%8 !2.BP 2%%7 C..P 2%%8 $.@P

9orei*n tra)e0
6

E4port in billion US6 -mports in billion

2%11 C..

2%1% B.!

2%%# $

2%%! $.$

2%%7 2..

2%%8 !."

US6 !!.B !0.2 :Table4 2.$-2oreign trade of )araguay= 1ri*in of imports :-n million US ;

Q.!

..B

B.C

$.B

China @@00 Grazil @000 %rgentina !C00 89 C00 +enezuela $00 ;apan @00 5thers 2@00 5otal 11&%% :Table4 2.B-5rigins of imports of )araguay=

Main )estination of e4ports :-n million US ; %rgentina 2!00 8ruguay !!00 GrazilR .00 ChileR B00 9witzerland @00 5thers 2000 5otal 8!%% :Table4 2.C-?ain destination of exports of )araguay=

2." 1/er/ie, of the market )araguayJs economy is based on agriculture, agribusiness and cattle ranching. )araguay is ran(ed as the worldJs fourth largest exporter of soybeans, and its beef exports are substantial for a country of its size. )araguay occupies Cth place in the world ran(ing with a !0.B-million ton
7

production of soya beans and its sown area for the 20!0-!! campaign amounted to @.. million hectares. 5ther agro products are F corn, sunflower, cotton, wheat, tobacco and sugarcane. The country has vast tracts of arable land which could be used for agriculture. %fter seeing the increase in global demand and prices for food items, )araguayan farmers and foreign companies are investing in land and increasing production in recent years. 9oya production tripled from @.C million tons in 200C to !0.B million tons in 20!!. nvestment in the next five years is pro-ected to be @ to B billion dollars and production is expected to go up to !B to !. million tons in the next five years. 7emittance of overseas )araguayans :mainly from %rgentina, 9pain and 89%= is an important source of foreign exchange. )araguay, which is landloc(ed, has been granted free ports in %rgentina, 8ruguay and Grazil. Garges carry cargo to %suncion, the capital from the %rgentine ports of 7osario and Guenos %ires. Ciudad del 'ste, the town on the border with Grazil and %rgentina is a (ind of free trade zone. 'lectronics and branded items are imported and these are sold to Grazilian and %rgentine traders and tourists. ?erchants of Chinese, ndian :there are about !00 of them= and %rab origin dominate in trading. 0owever, Grazil has started imposing restrictions on this informal trade. The new government of )resident 1ugo which came to power in %ugust 200. :after defeating the Conservative Colorado )arty which had ruled for C! years continuously= has given priority to nclusive *evelopment. The government is pursuing pragmatic policies and is committed to economic stability and growth. The 'uropean 8nion has included )araguay in a list of new countries to
8

benefit from its 3#9) )lus6 starting from ;anuary 200". This will give tariff exemption to C$00 )araguayan products.

-taipu 6am taipu is a hydroelectric dam on the )aranS 7iver located on the border between Grazil and )araguay. t has the second largest hydroelectric power plant in the world with !$G< :20 generating units of Q00 ?, each=. t is a binational underta(ing run by Grazil and )araguay. ?ost of the electricity is consumed by Grazil and their payment is a considerable source of income to )araguay.

$ankin* 5op 1% banks G%DC5 %?%?G%L 9.%. G%DC5 G 1G%5 + TC%L% %7#'DT%7 % )%7%#8%L 9.%. G%DC5 D%C 5D%1 *' 25?'DT5 Ganco 7egional G%DC5 98*%?'7 9 )%7%#8%L 9.%. C T G%D< DT'7G%DC5 9.%. 09GC G%DC5 7'# 5D%1 )araguay is strategically located at the heart of 9outh %merica, which together with the good connectivity networ( of road and air routes with its neighbouring countries ma(es )araguay a privileged location for production and redistribution of goods and services in the region. The )araguayan economyUs main sector is agricultural production, closely followed by service and industrial sectors. )araguay is the largest single exporter of electricity :hydro power= in the world, offering cheap renewable energy to its neighbors
9

and also the fourth largest exporter of soya bean in the world. The population is comprised by a young and educated wor(force :circa B0P of the population is under @B y.o.= and the #*) per capita per annum is of $."00 89* :est. 20!0=. MERC1SUR0 9outhern Common ?ar(et, Customs 8nion is the largest regional bloc( in 1atin %merica, is comprised of %rgentina, Grazil, )araguay and 8ruguay, with an estimated population of 2Q0 million inhabitants and an average #*) per capita of !0,.00 89*, ?'7C5987 is an attractive destination for investment, imports and exports. )araguay has commercial and industrial zones that aims to the exchange of goods and services with the region and the world. Ma2or 5ra)e (*reements0 ?'7C5987 has preferential agreements with 9outh %merican countries :Golivia, Chile, Colombia, 'cuador, )eru and +enezuela=, which allows access to ?'7C5987 products to any of these countries, with special tariff rates. 1i(ewise, since 200", the )referential Trade %greement between

?'7C5987 and ndia has entered into force. This includes a list of over "00 products that can be imported/exported under a preferential tariff scheme. ?'7C5987 and ndia currently are wor(ing to broaden and deepen the framewor( agreement so as to boost exchanges between the two regions

Para*uay is 1pen for =our $usiness

U.S. Commercial Ser/ice Ser/ices for U.S. Companies
'very year, the 8.9. Commercial 9ervice helps thousands of companies export goods and services worth billions of dollars. The 'conomic and Commercial 5ffice of the 8.9. 'mbassy in )araguay wor(s closely and
10

regularly with the 8.9. Commercial 9ervice office in %rgentina to provide assistance to 8.9. companies wishing to enter or expand business in the )araguayan mar(et. 1et us help you find the best opportunities for your business in )araguay. Pro/en 5ra)e E4pertise. The global networ( of 8.9. Commercial 9ervice :89C9= trade professionals is located throughout the 8nited 9tates and in 8.9. 'mbassies and Consulates in nearly .0 countries. n countries such as )araguay, where the 89C9 has no presence, the 9tate *epartment 'conomic and Commercial 5ffice of the 8.9. 'mbassy draws on the specialized advice and experience of a nearby C9 post to better assist 8.9. business clients. ,hether youJre loo(ing to ma(e your first export sale or expand your business in )araguay, we offer the trade counseling, mar(et intelligence, business matchma(ing, and commercial diplomacy you need to connect with lucrative business opportunities. n addition, we will help you to develop trade finance and insurance strategies that align with your particular business ob-ectives and help you complete your export transaction.

2.. <1R36 $(+> -+6-C(51RS ? P(R(GU(= ? G1@ER+ME+5 9-+(+CE

Pre/ious 0ighest marginal tax rateV corporate rate :P= in )araguay 0ighest marginal tax rateV individual rate :P= in )araguay !0.0 3ast !0.0

!0.0

!0.0

Cash surplus/deficit :current 1C8= in )araguay Q00$!QQ"B2@0.0 !Q"2@@C!QQ00B.0 Cash surplus/deficit :P of #*)= in )araguay Det incurrence of liabilitiesV domestic :current 1C8= in )araguay Det incurrence of liabilitiesV domestic :P of #*)= in )araguay !.! 2.$

$"2QQQC""B"..0 -$@.$Q$@0$$BQ.0

0..

-0.C

Det incurrence of liabilitiesV foreign :current -2!!B!!$@00@!.0 -@C0!222.!@Q".0

11

1C8= in )araguay Det incurrence of liabilitiesV foreign :P of #*)= in )araguay #rants and other revenue :current -0.@ -0.B

1C8= in )araguay :Table4 2.Q-,orld ban( indicator of )araguay=

@0$!B"B.0B!02.0 @!BC$QCCBB@"C.0

2.& @(R-1US PR16UC5S

Electrical sector The main items under 9?' are4 !. 9witches, )lugs, 9oc(ets, )ower ndicator, Cut out :wire fuse=, Ceiling rose, lamp holder :filament type and fluorescent tube type= 2. 'xtension cords @. 'lectrical heater, iron, 9oldering iron $. 9mall fans, exhaust fans B. Table lamps and )edestal lamps C. 1amp shades

E3EC5R1+-CS SEC51R This is a highly potential sector for the mental abstraction needed to understand the inner unseen wor(ing of electronic devices and circuits is special and somehow the people are very good at it. n the following lists products that have been already been commercialized or are almost ready to be commercialized are given. 0ere the main items under 9?' can be divided into the following two categories. %. tems using foreign technology :assembly industry= !. 7adio 2. Television @. +C7, +C)
12

G. tems using locally developed or ac&uired technology this can be again sub-divided into three

G.! tems for general consumer use !. 'lectronic 1ight dimmer, 2an regulator 2. +oltage protection devices :+olt- #uard= @. +oltage 9tabilizers with or without built-in +oltage )rotectors $. 9urge 9uppressors B. %udio %mplifiers C. 'mergency charger light Q. 'mergency power systems :e.g )9= .. 8ninterruptible )ower 9upply for computers :8)9=

G.2 tems for specialized professional, industrial and educational use !. Computerized on-line 'C# ?onitor 2. Computerized '?# e&uipment @. ?uscle H Derve 9timulator $. ontophoresis e&uipment for treatment of excessive sweating B. ndustrial temperature controller C. 'lectrical 'nergy ?eter calibrating e&uipment Q. 'lectronic 9coreboard .. Traffic 1ight :using micro-controller= ". %utomatic light sensitive switch !0. Taxi meter :using micro-controller=
13

!!. Trainer board for general electronics teaching !2. Trainer board for teaching 7adio, Television !$. Conductivity meter !B. 7adiation 9urvey meter !C. )%GW system !Q. Conference audio system !.. 0i-2i audio system !". )ublic %ddress system 20. Charge Controller for 9olar )hotovoltaic system 2!. nverter for 9olar )hotovoltaic 9ystem 22. ?oving message display 2@. Counter serial display system 2$. Computer interface trainer system 2B. ?icro-controller trainer system 2C. ?icroprocessor trainer system

6ifferent pro)uct ,ith contribution in -mports

'lectrical transformers 'lectric storage batteries 'lectric instantaneous or storage water heaters %pparatus protecting electrical circuits for X !( volts 'lectric motors and generators 'lectrical machines and apparatus with individual functions not elsewhere specified %pparatus protecting electrical circuits for Y !( volts #as, li&uid or electricity supply or production meters 'lectric generating sets and rotary converters 'lectrical lighting or signaling e&uipment used for motor vehicles 'lectrical ignition or starting e&uipment
14

ABQ,!Q.,C0$ A@C,QBB,C"2 A@2,2CQ,Q$2 A!.,B!Q,BC$ A!@,!"C,0!Q A!2,"0Q,B02 A.,".B,$$" AQ,CBC,2B. AC,Q"0,.QC AC,B$",B"@ AB,$@0,B20

0.C$P 0.$!P 0.@CP 0.2!P 0.!BP 0.!$P 0.!0P 0.0"P 0.0.P 0.0QP 0.0CP

'lectric laser or other light or photon beam A@,2@@,.". )ortable electric lamps designed to function by their A2,B$@,CB. own source of energy 'lectrical insulators of any material ndustrial or laboratory electric furnaces ?usical instruments amplified electrically 'lectric sound or visual signaling apparatus 9tranded wire, ropes, cables of iron or steel, not A2,@CC,C0@ A2,2$2,0$@ A2,0@!,0Q. A!,".Q,Q$0 A!,"2@,@.!

0.0$P 0.0@P 0.0@P 0.02P 0.02P 0.02P 0.02P 0.02P 0.02P

electrically insulated )arts for use with apparatus for protecting electrical A!,.2@,Q$Q circuits 'lectrical capacitors A!,.!@,@$$ :Table4 2..-*ifferent product with contribution in import of )araguay=

2.8 S<15 of in)ustry

Stren*th !. )eople have a strong mental ability to visualize the actions of unseen abstract designs as demanded by 'lectronics. n other words our people have a natural ability for electronics which gives it a strong advantage over many nations. 2. This sector has been initiated by relatively educated group of people, particularly people with science and engineering bac(ground. This is a good sign for potential product innovation and &uality. @. %s mentioned before, having a natural mental ability, laborers are easy to train. They can produce high &uality products given necessary facilities and incentive. $. )otential exists for high &uality indigenous product design. 'xisting local products are better in &uality than many items imported from neighboring

15

countries, which is the reason for their survival in spite of negative Tax and +%T policies that favor importing and goes against local production. B. Deeds a very small fixed investment. C. )roducts needed for calibration or automation of other process industries can be designed and fabricated. Q. ?ostly innovators have turned into entrepreneurs. This is behind all significant industrial growth in the global history. .. 1ocal support industries for transformers and cabinets help reduce the cost of products. :Transformers are relatively heavy, and cabinets are bul(y, so freight charges in import is high for both these items=. n spite of lac( of re&uired infrastructure for producing world class cabinets, innovative use of existing capabilities have produced designs that are reasonable, and better than those produced in many exporting countries. ". 'xistence of large domestic mar(et, if properly tapped, and if some degree of protection is provided against similar finished imported products. !0. 9cope for innovating products matching the needs of local population. Customer design is possible if an innovator becomes an entrepreneur himself. This is also one of the reasons for survival of such groups in spite of fierce competition from cheaper and better loo(ing products from abroad. !!. 9ome local products are better in &uality and service, compared to imported products. )articularly, local +oltage )rotectors and 9tabilizers are better suited to our conditions than the imported ones.

<eakness !. Deeds a large wor(ing capital. 2. 1ac( of infrastructure for fabricating high &uality cabinets. ,orld-class cabinets mostly use plastics or die shaped sheet metal. Goth of these need huge investments and are economically viable for a very large volume for

16

each individual product. 9ince the existing volume is small the necessary infrastructure has not grown so far. @. %t a very small scale the industry is very profitable, as mar(eting is limited within ac&uainted people around. %s soon as one wants to grow to middle tier, restricting #overnment policies come into play and ?ar(eting becomes difficult as it needs going beyond personal ac&uaintance level. 9how rooms and sufficient advertising are needed which a large wor(ing capital and it needs ta(e a while to catch on. $. Do large scale mar(eting chain exists as is there for electrical products. The manufacturers have to negotiate with retailers directly and the dealers ta(e advantage of the situation. The manufacturers do not get the price regularly and this sector suffers from cash flow crisis. B. Gecause of low volume, manufacturers cannot import components directly from component manufacturers abroad. They have to depend on the components brought in by bul( importers. This leads to some reliability problems. Gesides, minor design changes have to be made for each batch if components are not available to exact specifications. This needs the presence of an expert in every industry which are based on local design. C. The above is not a problem with 7adio and Television assembly industry since they get all their parts and components in a (it form. 0owever, such assembly-only industries do not build up local technological capability and cannot grow. Therefore such assembly-only industries should get less importance than those based on indigenous technology. Q. 'xisting #overnment laws relating to tax and +%T at production level, where corruption is also rampant, discourages these enterprises to expose themselves through exhibitions and advertisements, and in establishing own brands. This (eeps them under the control of the retail dealers, which inhibits efforts to enhance &uality and to sustain a regular cash flow. .. Though there is an attitude of customers to go for foreign products, efforts of some capable innovators turned entrepreneurs have changed the scenario

17

to a great extent. )eople have now more reliance on domestic electronic products. ". #overnment is a big purchaser in the country. +ested interest groups manipulate purchase procedures with illegal behind the scene negotiations, where &uality is sacrificed for (ic(bac(s. This results in a race which results in &uality deterioration. !0. #overnment purchases often favor foreign products, categorically mentioning places of origin excluding the local ones, even in cases where local products have demonstrated their &uality and reliability.

1pportunities !. % large domestic mar(et exists for low and medium priced &uality products, which is increasing gradually as people come out of poverty through various #overnment and Don- #overnment initiatives. 2. The customers are not yet conscious about consumer rights. This is helpful for start-up enterprises. @. There is ample scope for export. The &uality of some of the local products is already of international standard. n fact some products that are imported into this country are inferior to local products. $. f the #overnment policies regarding tax and +%T can be changed so that corrupt officials cannot disturb the entrepreneurs, some enterprises will come out of the shell by trying to improve &uality, advertising, and establishing brands. This will initiate a healthy competition. ,hen &uality improves, a large export mar(et, both in the economically developing countries and in the 'conomically %dvanced countries, can be tapped as well. B. f favorable policies are adopted :as suggested above= more people youths with technical bac(ground will enter this arena. This will pave the way for producing high &uality products in large volumes within the country. C. #overnment can be induced to ma(e purchases from local manufacturers through appropriate lobbying and public opinion formation.
18

5hreat !. Cheaper and better loo(ing, not necessarily of better &uality, products from China. 2. )ossibility of dumping from these countries. @. 8nfavorable #overnment policies already exist against local products, and may continue in future due to lobbying of powerful vested interest groups. $. ?ost of the products depend on imported raw materials. % large scale disruption abroad may affect the local production, though it is a remote possibility in the present day world.

2.7 PES5E3 of in)ustry

Political factors 9tability of government )araguayJs performance on government

effectiveness, regulatory &uality, rule of law, and control of corruption is worst than that of an average 1%C or lower middle income country. Go/ernment siAe :7an( "0.$= Total government expenditures, including consumption and transfer payments, are low. n the most recent year, government spending e&ualed !Q." percent of #*). 9tate-owned enterprises are poorly managed, and privatization has been slow and uneven. $usiness 9ree)om :7an( C!.Q= The overall freedom to conduct a business is limited by )araguayUs regulatory environment. 9tarting a business ta(es an average of @B days, compared to the world average of @. days. 5btaining a
19

business license ta(es more than the world average of 22B days. Closing a business can be a lengthy and difficult process. 5ra)e 9ree)om :7an( .@.C= )araguayUs weighted average tariff rate was @.2 percent in 200C. Cumbersome customs procedures, import bans and restrictions, import taxes, import fees, wea( enforcement of intellectual property rights, and burdensome labeling re&uirements add to the cost of trade. Ten points were deducted from )araguayUs trade freedom score to account for non-tariff barriers. Para*uay ta4es on the corporate are presently !0P. The personal income tax in )araguay is also !0P. t has ta(en a very long time for the government in attracting foreign investment by privatization. The reason behind it was the opposition from the political parties. )araguay taxes also include a !0P value added tax on most of the goods and services in )araguay. The )araguay tax rate on stoc( exchange companies is !BP. There is also a special (ind of tax at )araguay that has to be paid by the companies that are under the Uma&uilaU regime. The rate is fixed at !P of value-added. 9ome are exempted from paying any tax in )araguay. These include activities related to culture li(e education and publishing of boo(s for the same purpose.

Economic 9iscal 9ree)om :7an( "C.C= )araguay has very low tax rates. Goth the top income tax rate and the top corporate tax rate are !0 percent. 5ther taxes include a value-added tax :+%T= and a property tax. n the most recent year, overall tax revenue as a percentage of #*) was !2.0 percent. Monitory 9ree)om :7an( QC.Q= nflation is relatively high, averaging ..@ percent between 20!0 and 20!!. ?ost prices are set in the mar(et, but the government controls the price of fuel and influences prices through stateowned enterprises and utilities, including electricity, telecommunications, transportation, and water. 2ive points were deducted from )araguayUs monetary freedom score to account for policies that distort domestic prices.
20

-n/estment 9ree)om :7an( C0.0= )araguay guarantees e&ual treatment of foreign investors, and most sectors are open for private investment. The government maintains monopolies in rail, oil and gas, cement, electricity, water, and basic and long- distance land-line telephone services. *eterrents to investment include an arbitrary and non-transparent -udicial process, corruption, and inade&uate infrastructure. 7esidents and non-residents may hold foreign exchange accounts. -nflation Para*uayBs currency is the guarani :)L#=. n mid-5ctober 20!0, 89A! e&ualed about L#C!BB. )rice inflation fell dramatically between 200@ and 200$, from !$.2 percent to a @0-year low of $.@ percent. )residentJs *uarteJs economic reforms and austerity programs have produced results more rapidly than many expected.

Social 9actor E)ucational le/els for the year 2000, pro-ected adult illiteracy rates stood at C.QP, :males, B.CPV females, Q..P=. 'lementary education is compulsory and free between the ages of Q and !$ :ages " and !$ in rural areas=. )rimary education lasts for six years followed by secondary education in two phases of three years each. n !""Q there were "0B,.!@ students in primary schools. n that same year, there were @2Q,QQB students and approximately !.,000 teachers at the secondary level. The pupil-teacher ratio at the primary level was estimated at 20 to ! in !""". n the same year, "2P of primary-schoolage children were enrolled in school, while $BP of those eligible attended secondary school. 3abor 9ree)om :7an( 2Q.0= )araguayUs restrictive labor regulations hinder employment and productivity growth. The non-salary cost of employing a wor(er is moderate, but the difficulty of laying off a wor(er is a disincentive to additional hiring. 7egulations on the number of wor( hours remain rigid.
21

9ree)om from Corruption :7an( 2$.0= Corruption is perceived as widespread, but there have been noteworthy improvements. )araguay ran(s !@.th out of !Q" countries in Transparency after decades of dictatorship. Chan*es in lifestyles and trends The 7epublic of )araguay en-oys one of the cheapest living costs in the world. % ma-ority of the wor(ing population living in )araguay is dependent on agricultural activities and their ancillary subset of activities. nternationalUs Corruption )erceptions ndex for 20!!. )araguay has a legacy of institutional corruption

5echnolo*ical )araguay science and technology has infiltrated every sphere of the nationUs life. 0owever, agriculture remains on the top of the list of priorities of the government sanctioned pro-ects. % number of new technological innovations are being implemented to enhance the agricultural growth in the country. 5ther developments pertain to the development of 'ngineering goods, as well as social improvement. The country is also an avid supporter of the antiDuclear stance ta(en in the +ienna convention. Together, they continue to contribute meaningfully towards the development of science and technology of )araguay. The institutes that lead the way are4 !. )araguayan 9cientific 9ociety 2. 9outh %merican 8nion of engineersU %ssociations @. Duestra 9enora de la %sunciEn $. Dational 8niversity of %sunciEn 7esearch in )araguay is largely based on the sector of agriculture and engineering industry. The goal remains to increase the industrial and agricultural profile of this country. 0owever, the varied wildlife of the country, also provide bio-researches with a great opportunity to conduct on field research activities. The countryUs government is committed towards supporting and encouraging all forms of research activities in the country.
22

En/ironmental 9actor <aste )isposal la,s 1and-loc(ed )araguay, in central 9outh %merica, has environmental issues concerning deforestation. There is also water pollution, in addition to a loss of the countryJs wetlands. The health of urban residents is at ris( due to the inade&uate methods of waste disposal. Ener*y consumption re*ulation obtaining an environmental license is a compulsory re&uirement to develop a pro-ect in )araguay, whether in energy, telecommunications, manufacturing, transport, construction or any business or service with significant environmental impact. 2irm members who are registered environmental specialists provide consultancy services for environmental impact assessments and audits. 1awyers advise clients on energy pro-ects, mining, navigation and road transport, forestry, agriculture and livestoc( providing a comprehensive service to foreign investors locating or developing infrastructure pro-ects in )araguay.

2.! S5EEP3E6 of in)ustry

Social. )araguay is home to B.Q million inhabitants with a population density of !$.C per s&uare (ilometer. The population, mostly concentrated in the eastern half of the country, is B$P urban. Gy the year 20!0, it is estimated that the population will grow to Q,!0@,0.Q, which would be a 2CP increase over that of 200!, given a rate of birth of 2.CP. 2orty-two percent of the population is of wor(ing age. The population pyramid is rather stri(ing, with CBP under the age of @0. %griculture is the primary economic activity, employing @0P of the economically active population, followed by the services sector at 22P and the commercial sector at 2!P. ?anufacturing employs !2P of the economically active population. 6istribution of <ealth )araguay has an extreme gap between the small upper class and the large lower class, and there has historically been virtually
23

no social mobility. )araguay has the most une&ual distribution of land in the region. 1ess than !0 percent of the population owned and controlled over QB percent of the nationUs land in the late !""0s, leaving much of the large rural population landless and living in extreme poverty. n the mid-!""0s, nearly half of the farmers in )araguay did not own land, according to 7amEn 1Epez and %lberto +aldZs, writing for the ,orld Gan(. The upper !0 percent of the population accounts for $C.C percent of income and consumption 5he a)/anta*e of li/in* in )araguay is the low cost of essential commodities. The country has a free mar(et economy. % large portion of the wor(ing populace depends on the informal sector for their livelihood. The economy of )araguay is dominated by a number of small businesses plying their trade in the country.

5echnolo*ical )araguay science and technology is increasing fast under the direct encouragement from the government of this small 9outh %merican country. *espite the modest size of the country, the )araguayan government has shown great initiative in the recent years to enhance the scientific and technological profile of the country. The inventions and the discoveries arrived at through a number of research pro-ects have been implemented in various development pro-ects in the country. 9cience and technology in )araguay has become a prestigious sector of the countryUs development and endeavor. )araguay science and technology has infiltrated every sphere of the nationUs life. 0owever, agriculture remains on the top of the list of priorities of the government sanctioned pro-ects. % number of new technological innovations are being implemented to enhance the agricultural growth in the country. 5ther developments pertain to the development of 'ngineering goods, as well as social improvement. The country is also an avid supporter of the antiDuclear stance ta(en in the +ienna convention. Duclear safety is a ma-or concern for the country.

24

Economic )opulation below poverty line4 @2P :20!0 est.= 0ousehold income or consumption by percentage share4 1owest !0P4 0.BP 0ighest !0P4 $@..P :!"".= *istribution of family income - #ini index4 BC.. :!"""= nflation rate :consumer prices=4 Q.BP :20!0 est.= nvestment :gross fixed=4 20.!P of #*) :20!0 est.= #*) :)))=4 A2$.@ billion $.@P growth @.0P B-year compound annual growth A$0@$ per capita. Credit accessibility paucity of credit options hinders the overall economy. )araguay has a long history as a money-laundering center. The government has ta(en steps to curb the problem, but enforcement of anti-laundering legislation remains inconsistent 8nemployment rates 1abor force4 2.C. million :20!0 est.= 1abor force - by occupation4 agriculture $BP 8nemployment rate4 !CP :20!0 est.= )araguayJs constitution guarantees the right of wor(ers to unionize and bargain collectively. %bout !B percent of wor(ers are members of one of )araguayJs !,C00 unions. 9tri(es are legal and not uncommon.

En/ironment 'nvironmental protection laws %bout 'nvironment )rotection those activities that are li(ely to cause environmental changes will be regulated by law. The law may also restrict or prohibit those activities that are considered hazardous. The manufacturing, assembly, import, commerce, possession or use of nuclear, chemical, or biological weapons, as well as the introduction of toxic waste into the country are hereby prohibited. The law may be extended to other hazardous elements. t will also regulate the traffic(ing of genetic resources and related technologies to protect national interests. The law will
25

define and establish sanctions for ecological crimes. %ny damage to the environment will entail an obligation to restore and to pay for damages. )araguay has some natural hazards, some of which are the local flooding in the southeastern portion of the country from early 9eptember to ;une. This can result in the poorly drained plains becoming boggy from early 5ctober to ;une. ts ma-or environmental issues include deforestationV water pollutionV inade&uate means for waste disposal pose health ris(s for many urban residentsV and loss of wetlands.

Political 9ince the early !""0s, )araguayUs political and economic reforms have been strengthened by the increased security of access resulting from its accession to the #%TT and the expansion of its commitments in the 8ruguay 7ound. The process should be consolidated by improved macroeconomic stability, better infrastructure and ongoing public sector and financial reforms, which need to be deepened to pave for higher growth. ?'7C5987 has helped to reinforce systemic reforms and is expected to create new investment opportunitiesV however, it will lead to some applied tariff increases and greater preference for regional partners. The expansion of regional trade should continue as new agreements are forged, although )araguay is also loo(ing for trade opportunities beyond the region. 2ull implementation of 8ruguay 7ound commitments and assured access to foreign mar(ets should further strengthen )araguayUs integration in the world economy.

3e*al
26

Trade Garriers )araguay is a member of ?'7C5987 :Common ?ar(et of the 9outh=, a common mar(et and Customs union comprised of %rgentina, Grazil, )araguay, and 8ruguay. 9ince !""B, )araguay has increased many of its external tariffs on products from non-?'7C5987 countries to conform to the ?'7C5987 Common 'xternal Tariff :C'T= of up to 2@P. The tariffs on the @"" items on )araguayUs list of exceptions will be increased annually until they reach parity with the C'T in 200C. 9tandards are set by the Dational 9tandards and Technology nstitute : DTD=. DTD is currently wor(ing with the standards institutes of the other ?'7C5987 countries to establish ?'7C5987-wide standards. 5nly a handful of )araguayan firms have 95 "00 and 95 !$00 certification. )araguay has a temporary entry system, which allows duty-free admission of capital goods :e.g., machinery, tools, e&uipment, and vehicles= to carry out public and private construction wor(. The government also allows temporary entry of e&uipment for scientific research, exhibitions, training or testing, competitive sports, and traveler or tourist items. )araguay has an open mar(et and does not re&uire import licensesV except for guns and ammunition :the 8nited 9tates prohibits the export of guns and ammunition from the 8nited 9tates to )araguay=. Goth import and export operations must be processed through authorized ban(s and supervised by the Central Gan( of )araguay.

6emo*raphic )opulation4 C,CC",0.C :;uly 20!! est.= %ge structure 0-!$ years4 @Q.2P :male !,2C2,$0./female !,220,.0"= !B-C$ years4 BQ.QP :male !,"@@,BB"/female !,"!B,0@@= CB years and over4 B.!P :male !BB,CC0/female !.!,C!Q= :20!! est.= ?edian age Total4 2!.C years male4 2!.@ years female4 2!.. years :20!! est.=
27

)opulation growth rate4 2.$!CP :20!! est.= )araguay is a poor and une&ual society. +arious poverty estimates suggest that @0-B0P of the population is poor. n rural areas, $!.20P of the people lac( a monthly income to cover basic necessities, whereas in urban centers this figure is 2Q.CP. The top !0P of the population holds $@..P of the national income, while the lowest !0P has 0.BP. The economic recession has worsened income ine&uality, notably in the rural areas, where the #ini coefficient has risen from 0.BC in !""B to 0.CC in !""". 9imilarly, land concentration in the )araguayan countryside is one of the highest in the globe4 !0P of the population controls CCP of the land, while @0P of the rural people are landless. This ine&uality has caused a great deal of tensions between the landless and elites. ".1 Historical 6e/elopments The 'lectronics ndustry in ndia too( off around !"CB with an orientation towards space and defence technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Glac( H ,hite T+, Calculators and other audio products. Colour Televisions soon followed. n !".2-a significant year in the history of television in ndia - the government allowed thousands of colour T+ sets to be imported into the country to coincide with the broadcast of %sian #ames in Dew *elhi. !".B saw the advent of Computers and Telephone exchanges, which were succeeded by *igital 'xchanges in !"... The period between !".$ and !""0 was the golden period for electronics during which the industry witnessed continuous and rapid growth. 2rom !""! onwards, there was first an economic crises triggered by the #ulf ,ar which was followed by political and economic uncertainties within the country. )ressure on the electronics industry remained though growth and developments have continued with digitalisation in all sectors, and more recently the trend towards convergence of technologies. %fter the software boom in mid !""0s ndiaUs focus shifted to software. ,hile the hardware sector was treated
28

with

indifference

by

successive

governments. ?oreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition. n !""Q the T% agreement was signed at the ,T5 where ndia committed itself to total elimination of all customs duties on T hardware by 20!0. n the subse&uent years, a number of companies turned sic( and had to be closed down. %t the same time companies li(e ?oser Gaer, 9amtel Colour, Celetronix etc. have made a mar( globally.

".2 Current Scenario n recent years the electronic industry is growing at a bris( pace. t is currently worth 89A @2 Gillion and according to industry estimates it has the potential to reach 89A !B0 billion by 20!0. The largest segment is the consumer electronics segment. ,hile is largest export segment is of components. The electronic industry in ndia constitutes -ust 0.Q per cent of the global electronic industry. 0ence it is miniscule by international comparison. 0owever the demand in the ndian mar(et is growing rapidly and investments are flowing in to augment manufacturing capacity. The output of the 'lectronic 0ardware ndustry in ndia is worth 89A!!.C Gillion at present. ndia is also an exporter of a vast range of electronic components and products for the following segments [ *isplay technologies [ 'ntertainment electronics [ 5ptical 9torage devices [ )assive components [ 'lectromechanical components

Corporate Catalyst ndia report on ndian 'lectronics ndustry

29

[ Telecom e&uipment [ Transmission H 9ignaling e&uipment [ 9emiconductor designing [ 'lectronic ?anufacturing 9ervices :'?9=

20!!-!2 has been mar(ed with global uncertainties and downturn. #rowth of ndian economy has also slowed down. Gut, contrary to these trends, T- T industry exhibited a resilient growth of !".2P in production. This growth, however, is mainly driven by software and service industry, in which ndia is in a dominant position. The hardware segment within T H 'lectronics, ndia remains way behind in electronic manufacturing compared to countries li(e China, ?alaysia, Taiwan, 9outh <orea etc. Countries li(e China have a share of more than @0P in global exports of electronics products whereas ndia has a share of less than !P only. 'lectronics is today the largest industry in the world but ndia is not a significant player in this mar(et. ,e are largely dependent on import of not only critical hardware but also the general use electronic items. The import bill for electronic goods will be bigger than oil import bill by 2020 if a domestic ecosystem for promoting manufacturing is not developed. There is a lot that needs to be done in both services and hardware for sustaining growth and ma(ing it inclusive. % 200" ,orld Gan( report found that for every !0 percent increase in high speed internet connections, there is a !.@ percent increase in economic growth. The impact of CTs is also seen in its creative and cost-efficient use in basic sectors, such as education, health and agriculture, among others. 7ecent )olicies ntroduced for 'lectronic 0ardware 9ector

1. Electronics Manufacturin* Clusters Scheme :EMCs;

30

The 8nion Cabinet has recently approved the proposal to offer financial support for the development of 'lectronics ?anufacturing Clusters :'?Cs= as these '?Cs would aid the growth of the 'lectronics 9ystems *esign and ?anufacturing :'9*?= sector, help development of entrepreneurial ecosystem, drive innovation and catalyze the economic growth of the region by increasing employment opportunities and tax revenues. Dearly 2. million persons are expected to be employed, directly or indirectly for the '9*? turnover to reach 89* $00 billion. The policy covers all 9tates and districts and provides them an opportunity to attract investments in electronics manufacturing. 2. Mo)ifie) Special -ncenti/e Packa*e Scheme ?odified 9pecial ncentive )ac(age 9cheme to offset disability and attract investments in 'lectronics 9ystems *esign and ?anufacturing ndustries The 8nion Cabinet has recently approved the proposal to provide a special incentive pac(age to promote large-scale manufacturing in the 'lectronic 9ystem *esign and ?anufacturing :'9*?= sector. The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. t will foster the manufacturing of indigenously designed and manufactured chips creating a more cyber secure ecosystem in the country. t will enable ndia to tap on the great economic potential that this (nowledge sector offers. The increased development and manufacturing in the sector will lead to greater economic growth through more manufacturing and conse&uently greater employment in the sector.

"." S<15 of in)ustry

Stren*th !. 0ighly intelligent and s(illed manpower can perform s(illful manual operations to produce good &uality items.

31

2. 1ocal wor(shop expertise available for fabricating process e&uipment that are mechanical and electrical in nature. ?ost of the existing industries depend on such e&uipment. @. )roducing &uality products need measuring and calibration e&uipment which are expensive if imported. 'xpertise to develop such e&uipment :which are mostly electronic= at low cost exist within the country, which if tapped, may result in significant improvement in &uality. $. 1arge domestic mar(et. B. 'xistence of an efficient chain of independent mar(eting networ( for reaching the whole of the country. C. 1ow labor cost. Q. 'xperienced laborers can form new enterprises after they have learned the s(ill.

<eakness !. 1ac( of ade&uate scientific and technical (nowledge. Cannot improve &uality beyond a certain level. 2. *o not have ade&uate funds. 'ntrepreneurs do not (now about collateral free loan providers. 9ince ban(s usually as( for collateral, most entrepreneurs avoid ban(s. @. ?a-ority does not have proper accounting (nowledge re&uired for pro-ect evaluation, pricing, etc. They mostly wor( through crude mind F calculations which may result in failure, particularly when receiving loans. $. The independent mar(eting networ( is beyond the control of the enterprises, rather these distributors play control over them. B. The pressure from the distributing firms for greater margins to themselves and lac( of consumer awareness leads to cheaper and low &uality products flooding the mar(et, even though capability exists for producing better &uality items. This pressure also ma(es the local enterprises label products with the
32

names of popular foreign brands. Thus bad products drive good products away damaging the reputation of local products. This eventually ma(es road to import of better &uality foreign products. C. 'xisting #overnment laws relating to tax and +%T at production level, where corruption is also rampant, discourages these enterprises to expose themselves through exhibitions and advertisements, and in establishing own brands. This (eeps them under the control of the distributors, which inhibits efforts to enhance &uality as mentioned above. Q. %ttitude of customers to go for foreign products, thin(ing that &uality products are not produced in own country. This also results in manufacturers putting labels of foreign brands on local products for easy mar(eting. This has to be analyzed together with the statements in item. .. There is a high end mar(et in the country where &uality rather than price is sought. 0owever, it would be difficult for 9?'Js to enter this mar(et unless &uality brands are established. ". #overnment is a big buyer in the country. +ested interest groups manipulate policies to ma(e it difficult for local products to enter.

1pportunities !. % large domestic mar(et exists for low priced products, which is increasing gradually as people come out of poverty through various #overnment and Don-#overnment initiatives. 2. The customers are not yet conscious about consumer rights. This is helpful for start-up enterprises. @. f the #overnment policies regarding tax and +%T can be changed so that corrupt officials cannot disturb the entrepreneurs, some enterprises will come out of the shell by trying to improve &uality, advertising, and establishing brands. This will initiate a healthy competition. ,hen &uality improves, a large export mar(et, both in the 'conomically *eveloping countries and in the 'conomically %dvanced countries, can be tapped as well.
33

$. f favorable policies are adopted :as suggested above= youths with technical education will enter this arena. This will pave the way for producing high &uality products in the country. B. #overnment can be induced to ma(e purchases from local manufacturers through appropriate lobbying and public opinion formation.

5hreat !. Getter &uality products from China at reasonable prices. 2. )ossibility of dumping from these countries when local producers try to improve &uality. @. 8nfavorable #overnment policies may be ta(en up due to lobbying of powerful vested interest groups when the local entrepreneurs become a challenge to imported products F both in &uality and in price. $. ?ost of the products depend on imported raw materials. % large scale disruption abroad may affect the local production, though it is a remote possibility in the present day world.

".. PES5 of in)ustry

Political ndia is the biggest democracy in the ,orld. The government type is federal republic. Gased on 'nglish common law, -udicial review of legislative acts, accepts compulsory C; -urisdiction with reservations, separate personal law codes apply to ?uslims, Christians, and 0indus. The political 9ituation in the ndia is more or less stable. ?ost of its democratic history, the federal #overnment of ndia has been led by the : DC=.

34

ndian Dational Congress. 9tate politics dominated by several national parties including the DC. The Gharatiya ;anata )arty :G;)=, the Communist )arty of ndia :C) =, and various regional parties. n the 200" ndian elections, the DC won the biggest number of 1o( 9abha seats and formed a government with a alliance called the 8nited )rogressive %lliance :8)%=, supported by various left-leaning parties and members opposed to the G;). 5verall ndia currently has a coalition led government and both ma-or political parties the 8)% and G;), whichever comes in power. t comprises political stability and the policies of the government. deological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. 2or example, Gangalore established itself as the most important T centre of ndia mainly because of political support.

Economical The economic factors in ndia are improving continuously. The #*)

:)urchasing )ower )arity= is estimated at about @."CB trillion 8.9. dollars in the year 200". The #*)- real growth rate in 200" was CP. ndia has the third highest #*) in terms of purchasing power parity -ust ahead ;apan and behind 8.9. and China. 2oreign direct investment rose in the fiscal year ended 9eptember 200" to about 89A !0.B@2 billion. There is a continuous growth in per capita incomeV ndiaJs per capita income is expected to reach 7s. @@2.@ by the end of 200"-20!0. This will lead to higher buying power in the 0ands of the ndian consumers. ndia #*) is now C.B. Today ndia reserve 8s dollor in #ood condition.

Social ndia is the second most populous nation in the world with an approximate population of over !.!billion people. This population is divided in the following age structure4 0-!$ years F @!..P,
35

!B-C$ years F C@.!P CB years and above F B.!P. There has a :i=?obility :ii= ncome distribution :iii=)opulation demographics :iv=%ttitude to wor( and leisure :v=9tandard of education and s(ills 5echnolo*y Technology can reduce costs, improve &uality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Today in ndia @# technology starts. % heavy infrastructure for bandwidth. G9D1 and 7eliance have more covered city by optical fibre. ndia have many Technological )ro-ects. #ood 9ervice provider in T sector ex TC9, nfosys and many more. Today ndia is a big mar(et in mobile sector here B-C player operataors and new operators launch their services soon. :i= :ii= :iii= :iv= :v= T *evelopment Dew ?aterials and processes #overnment technology funding 9peed of technology transfer 9oftware upgrades

36

-n)ia?Para*uay $usiness ..1 -n)iaCs e4port D import

:89* in million= =ear 2%11 2%1% 2%%# ndia\s exports Q. CB B! ndia\s imports Q$ Q2 BC :Table4 $.!- ndia\s import and export to )araguay= -n)iaCs e4port D import by pro)ucts 2%%! B" @. 2%%7 $C 2@

ndiaJs exports

n million 8A* 2! !B !$ 2.

+ehicles nsecticides 5rganic Chemicals 5thers :Table4 $.2- ndia\ s export to )araguay according to product=

?ahindra pic(ups and ndian two wheelers are popular in )araguay

ndiaJs imports 9oybean oil 1eather

37

n million 8A* Q2 0.Q

?etal scrap #arments :Table4 $.@- ndia\s ma-or imports from )araguay=

0.$ 0."

Main imports of -n)ia4 9oya oil :"QP of imports= and leather Cement plant machinery4 % )araguayan company has ordered 20 million dollarsJ worth machinery from ndia in %ugust 200. for a new plant -n/estment D Eoint @entures There is scope for investment and -oint ventures in agribusiness. -n)ian community Currently there are around !00 ndians residing mostly in Ciudad del 'ste in the border with Grazil and %rgentina. They are in trading, retail and wholesale business.

..2 $ilateral (*reements

There is an agreement between ndia and )araguay on exemption of +isa for holders of *iplomatic and 5fficial passports since !""C. $ilateral 5ra)e n 20!0, ndian exports where worth ACB million while imports were worth AQ2 million. -n)ian e4ports to Para*uay %ccording to the #overnment of ndia, chemicals, pharmaceuticals, tractors, two wheelers, ?ahindra vehicles and textiles were exported to )araguay. -n)ian )iaspora in Para*uay

38

The #overnment of ndia states, ]%bout !00 ndians live in Ciudad del 'ste, a city on the border with Grazil. These ndians are in trading, wholesale and retail business. ?ost of them are of #u-arati and 9indhi origin. The 'mbassy organized a mini 2estival of ndia in Dovember 20!0 with ndian dance programmes in %suncion and Ciudad del 'ste and food and film 2estival in %suncion %ugust 20!!.

.." C1MP(R-S1+ 19 $15H C1U+5R=

(i) as F of G6P

-n)ian Economy stats 0.@P 7an(ed !!@rd. !.B 7an(ed !2@rd. A@,2@@,200,000.00 7an(ed !"th. 2!% times more than )araguay A$,!C$,000,000,000.00 7an(ed Bth in 200C. 1"2 times more than )araguay ".2@ annual P 7an(ed !$th in 20!0. 2 times more than )araguay A@,QB!."" per capita

Para*uayan Economy stats !.!P 7an(ed .Bth. " times more than ndia !.Q 7an(ed !02nd. 1"F more than ndia A!!,B00,000.00 7an(ed !@2nd. A@!,2C0,000,000.00 7an(ed ""th in 200C. 2."$ annual P 7an(ed !2@rd in 20!0.

Economic free)om

E4ports to US

G6P

G6P *ro,th G annual F

G6P :per capita;

G6P G PPP

AB,!"C.!$ per capita 7an(ed !2!st in 200C. 7an(ed !0.th in 200C. "!F more than ndia A@,@C2,"C0,000,000.00 A2.,!$@,000,000.00 7an(ed $th. 11# times 7an(ed ..th. more than )araguay
39

Gross +ational -ncome Gross national income

A$QQ,000,000,000.00 AQ,B"$,."0,000.00 7an(ed !2th. 82 times 7an(ed ..th. more than )araguay 2.@22@00000000 !$Q0!!"0000000

Gross +ational -ncome :per G6P; Househol) final consumption e4pen)iture' etc. G constant 2%%% US :per capita;

A!$.@Q per A!00 7an(ed !C0th. @@..C constant 2000 89A per c 7an(ed "0th in 20!0.

A2B.@. per A!00 7an(ed !0Qth. 77F more than ndia !,0!Q.! constant 2000 89A per c 7an(ed C0th in 20!0. 2 times more than ndia 0.QBB 7an(ed .Cth. 2&F more than ndia 1ower middle income 0.BP 7an(ed !!Bth. $@..P 7an(ed !0th. "1F more than ndia !".B 7an(ed @@rd. 0.! P of worldUs poor 7an(ed $2nd. 0.2B 7an(ed $.th. 2&F more than ndia

Human 6e/elopment -n)e4 -ncome cate*ory -ncome )istribution G Poorest 1%F -ncome )istribution G Richest 1%F Population un)er 1 a )ay Po/erty G Share of all poor people 5echnolo*ical achie/ement

0.C02 7an(ed !2.th. 1ow income @.BP 7an(ed 22nd. 8 times more than )araguay @@.BP 7an(ed @.th. $$.2 7an(ed !!th. 127F more than )araguay $!.0! P of worldUs poor 7an(ed !st. .%# times more than )araguay 0.2 7an(ed B"th.

:Table4 $.$-Comparison of ndia with )araguay=

40