“Agriculture and processed food sector of taiwan”

Global Country Study Report

On

“Agriculture and Processed Food Sector of TAIWAN”

w.r.t

Business Opportunities for Gujarat and Andhrapradesh

Submitted to

Institute Code: 805

Institute Name: S.R. Luthra Institute of Management

Under the Guidance of

Ms.Megha Gohel

(Assistant Professor)

In partial Fulfilment of the Requirement of the award of the degree

of Master of Business Administration (MBA)

Offered By

Gujarat Technological University

Ahmedabad

Prepared by:

Students of

MBA (SEMESTER III)

Group No.5

Month & Year:

December 2015

Students’ Declaration

We, following students, hereby declare that the Global/ Country Study Report titled

“Agriculture and Processed Food Sector of TAIWAN”is a result of our own work and

ourindebtedness to other work publications, references, if any, have been duly

acknowledged. If we are found guilty of copying any other report or published information

and showing as our original work, or extending plagiarism limit, we understand that we shall

be liable and punishable by GTU, which may include ‘Fail’ in examination, ‘Repeat study &

re-submission of the report’ or any other punishment that GTU may decide.

Enrolment NO. Name Signature

148050592001 VISHAL BHINGARADIYA

148050592003 AKSHAY JARIWALA

148050592006 DHAVAL AMIPARA

148050592020 JAYUN LUKHI

148050592041 DHAVAL MUNGARA

148050592044 AMI PATEL

Place: ____________ Date: ______________

Institute’s Certificate

Certifiedthat this Global Country Study and Report Titled“Agriculture and Processed

Food Sector of TAIWAN” is the bonafide work of attached student list with enrolment

numbers, who have carried out their research under my supervision. I also certify further,

that to the best of my knowledge the work reported herein does not form part of any other

project report or dissertation on the basis of which a degree or award was conferred on an

earlier occasion on this or any other candidate. I/we have also checked the plagiarism

extent of this report which is ……… % and the separate plagiarism report in the form of

html /pdf file is enclosed with this.

___________________

(Megha Gohel)

(Assistant Professor)

_____________________

(J. M. Kapadia)

Director

Company Certificate

Plagiarism report

PREFACE

As a part of the course curriculum, Second Year M.B.A. students have to undergo Global

Country Report, which is designed keeping the prerogative and preferences of corporate

field in mind. It is aimed to give students an international exposure in various spheres and

let them gain a thorough understanding of a country and its comparison with Indian

standards. Also the main objective of preparing such a project report is to aid the students

explore the management subjects from a practical viewpoint.

This Global Country Report covers Taiwanas a country under study is submitted to S.R.

Luthra Institute of Management as a part of M.B.A Course from Gujarat Technological

University. It is the presentation of our learning during the study. During the study we

analyzed the country as a whole with various analytical tools. We have also analyzed

agriculture and Processed Food sectors and have done a broad country comparison with

Gujarat.

This study has emphasised on Food and agriculture sector analysis in detail for the country

Taiwan, India along with state Andhra Pradesh / Gujarat. Further it analyzed overall

potential trade opportunities between India/ Gujarat and Taiwan and/or with the state of

Andhra Pradesh.

The Country Report mirrors the team work of students and is intended to be a useful

reference for all readers and researchers.

ACKNOWLEDGEMENT

First and foremost we would like to acknowledge Gujarat Technological University (GTU)

and S. R. Luthra Institute of Management (SRLIM),for offering this golden opportunity to

undertake such a project report. Through this project we have gained significant insights

about the international arena and have been able to correlate our management subjects

with it.

It gives us the immense pleasure to present this Global Country Report on “TAIWAN”. The

submission of this Report gives us to convey our gratitude to all those people whose helping

hands and guidance have made this project possible.

We sincerely express our thanks to Dr. Jimmy Kapadia, Director, S. R. Luthra Institute of

Management for providing such an informative platform for learning.

We express our deepest gratitude to our faculty guide, Asst. Prof. Ms.Megha Gohel, for his

invaluable inputs, guidance and moral support.

We also thank everyone of the student fraternity who has participated in this project and

applaud the team spirit and co-operation of all the students involved with the Country

Report.

TABLE OF CONTENT

Sr No. Particular Page No.Taiwan and Business Opportunities For Gujarat / India: Macro Analysis

1.

1. About Taiwan 1.

1.1 Introduction 1.1.1.1 Overview 2.

Geographic Location 2. Languages 2. Currency & Exchange Rate 2. Religions 3. Flag 3. National Anthem 3. Economic Scenario 6. Political Stability (environment) 7. Social, Cultural, Demographical, Legal,

Technological, Natural Environment of the Taiwan

7.

1.1.2 Latest News 8. News of the Taiwan at Global Level in the field

of Business.8.

1.2 Overview of Industries 11.1.2.1 List of Industries 11.

List of All the Industries of the Taiwan 11.1.2.2 Contribution in national GDP 15.1.2.3 Export-Import statistics 16.

Export and Import Statistics of Taiwan 16.1.2.4 Major Player of each industry with their market share

20.

2. About Agriculture and food proceed of Taiwan 21.

2.1 Overview of Agriculture and food proceed of Taiwan 21.2.2 bilateral trade opportunities with India/Gujarat 26.

Gujarat’s/India’s Import on various products with other countries

27.

Gujarat’s/India’s Export on various products with other countries

28.

TAIWAN Import & Export on various products with other countries

29.

2.3 Details of Agriculture and Processed Foodwith respect to Gujarat

33.

Brief Details about the Agriculture and food proceed in Gujarat

33.

Sub segment of Agriculture and food processing: Product categories

36.

Contribution of Agriculture and food proceed in national GDP

37.

Major players of Energy & Power 39. Local taxes and duties applicable in Agriculture

and food Proceed40.

Special benefits given by state government to the Agriculture and food proceed

41.

3. STEEPLED Analysis 44.

3.1 STEEPLED Analysis of Agriculture and Process Food of Taiwan

44.

3.1.1 Social/demographic (S) 44.3.1.2 Technological (T) 45.3.1.3 Economic (E) 47.3.1.4 Environmental (natural) (E) 48.3.1.5 Political (P) 48.3.1.6 Legal (L) 49.3.1.7 Ethical (E) 50.3.1.8 Demographic 50.3.2 STEEPLED Analysis of Agriculture and Processed Food of GUJARAT

53.

3.2.1 Social/demographic (S) 53.3.2.2 Technological (T) 54.3.2.3 Economic (E) 55.3.2.4 Environmental (natural) (E) 56.3.2.5 Political (P) 58.3.2.6 Ethical (E) 60.3.2.7 Legal (L) 60.3.2.8 Demographic 62.3.5 Comparative analysis of STEEPLED Analysis 64.

4. SWOT Analysis of the Agriculture and Processed food 69.

4.1 SWOT analysis of Agriculture and Processed food in Taiwan

69.

Strength 69. Weakness 69. Opportunity 70. Threats 70.

4.2 SWOT analysis of Agriculture and Processed food in Gujarat

70.

Strength 71.

Weakness 71. Opportunity 72. Threats 72.

5. About Andhrapradesh 73.

5.1 Overview of Andhra Pradesh 73. Population Details 73. Official Language of the Jharkhand 73. Ethnic Group 73. Natural Resources 73. Major Industries in Jharkhand 77.

5.2 Overview of Agriculture and Processed foodin Andhra Pradesh

81.

Contribution of Energy and Power in national GDP

82.

Major players of Energy and Power 84. benefits given by state government to the

Energy and Power 5.3 SWOT analysis of Agriculture and Processed foodin Andhrapradesh

87.

6. Findings 89.

Bibliography

LIST OF TABLE

SR.NO PATICULAR PAGE NO.

1. Overview of Taiwan 2.

2. Electronic Component as share of GDP 13.

3. Energy components as a share of GDP 14.

4. Fish and Sea food as a share of GDP 14.

5. Contribution of industries in national GDP (Taiwan) 15.

6. Exports – Import Statistics of Taiwan 16.

7. Export Partner 17.

8. India’s total import and India’s Export 18.

9. Major Player of each industry with their market share 20.

9. Top 10 Taiwanese Imports from India (2014) 27.

10. Agriculture and Processed foodCategories 27.Top 10 Taiwanese Exports from India (2014) 28.

12. Sub segment of Agriculture and Processed food: Product categories 36.

13. Taiwan’s global market share in manufactured ICT products 47.

14. Life expectancy in 2015 51.

15. Literacy Rate 52.

16. Demographic of Gujarat 62.

17. Comparative STEEPLED Analysis 64.

18. Fact on Andhra Pradesh 73.

19. Administrative set up 75.

20. Religions in Andhra Pradesh 76.

21. Contribution of agriculture and Processed food industry in national

GDP

82.

LIST OF FIGURE

SR.NO PARTICULAR PAGE NO.

1. Taiwan GDP (USD billion) 3.

2. Contribution of industries in national GDP Taiwan 15.

3. Import – Export Partner 17.

4. Taiwan Import 18.

5. Taiwan Export 18.

6. India Import Export to Taiwan 19.

7. Contribution of agriculture and Processed foodindustry in national

GDP

82.

EXECUTIVE SUMMARY

Taiwan is a small island of approximately 36,000 square kilometres, about the size of the

Netherlands. It is situated southwest of Japan, north of the Philippines, and about 180

kilometres off the south-eastern coast of mainland China.

Taiwan Official Languageis Standard mandarin (Chinese), Land is 36,192 km2 ,Population is

23,462,517 (July 2015 est.), Location is Eastern Asia, islands bordering the East China Sea,

Philippine Sea, South China Sea, and Taiwan Strait, north of the Philippines, off the south-

eastern coast of China, Area is Land: 32,260 sq km,Water: 3,720 sq km,Total: 35,980 sq km,

Population Growth Rate is 0.23% (2015 est.), GDP is US$489.21 (2014/est.), Per-Capita

Income is Us$22,823 (2014), Economic Growth Rate is 3.74% (2014); 3.78% (2015/est.),

Unemployment Rate is 3.62% (2015/est.), Inflation rate is 1.20% (2014), Literacy is

Definition: age 15 and over can read and write, Total population: 98.5%, Male: 99.7%,

Female: 97.3% (2014 est.), Age Structure is 0-14 years: 13.52% (male 1,632,763/female

1,531,895), 15-24 years: 13.36% (male 1,606,940/female 1,521,617), 25-54 years: 47.06%

(male 5,505,063/female 5,513,395), 55-64 years: 13.59% (male 1,556,205/female

1,625,436), 65 years and over: 12.48% (male 1,348,686/female 1,573,126) (2015 est.),

National Currency is New Taiwan Dollar (NT$ or TWD).

Taiwan’s economic growth will be led by firmer external demand. However, the medium-

term economic outlook remains uncertain due to diminished public support for deeper

market integration with mainland China. Weaker global demand, driven mainly by the

economic slowdown in China, will also weigh on growth prospects. Gross domestic product

(GDP) is expected at 3.5% for 2015 and is forecasted to be in the 3.5-4.0% range in the near

term. Taiwan’s relationship with Mainland China continues to lie at the forefront of

domestic politics. The president has signed 21 agreements with China, including the free

trade pact in 2010. Taiwan’s increasing economic integration with China has created civil

unrest. Last year, student groups occupied the legislature for almost a month, protesting

against a trade accord.

In the future, agricultural development will work with national policies of economic

liberalization and inter nationalization to focus on industrial development, farmers' and

fishermen's guidance, agricultural land utilization, resource management, technological

development and international agricultural cooperation, etc., selecting the most

appropriate measures to meet agricultural policy goals.The prevalence of 4G is driving the

launch of international standards for new 5G mobile telecommunications networks.

Major Industries In Taiwan Are Semiconductor Industry, Display And Optoelectronics,

Biotechnology And Pharmaceuticals, Telecommunication, Materials And Fine Chemicals,

Finance, Securities And Insurance, Electronic Components, Energy, Fish And Sea-Food.

Contribution of industries in national GDP, agriculture industry iscontributing 1.90 %,

industry contributes 34.10%, and service contributes 64.10% in Taiwan economy as per year

2014.

Exports in Taiwan increased to 758471 TWD Million in August from 728548 TWD Million &

Import increased to 630820 TWD Million in August from 616632 TWD Million in July of 2015

Taiwan’s economy will strengthen in 2014. Real Gross Domestic Product (GDP) is expected

to grow by 3.2% in 2014 up from 1.6% in 2013. A moderate improvement in exports and a

rise in public and private investment will drive growth. Sluggish growth in wages has

depressed private consumption. Taiwan’s long-term challenge is to remain competitive with

its Asian rivals as they expand their own free trade deals with key partners in the US and

Europe, South Korea, China and Japan. A new trade agreement between China and Taiwan

came into effect in 2014.

Taiwan is an economic powerhouse, domestic agricultural production is somewhat limited.

As a result, Taiwan is increasingly reliant on imports of food and other agricultural products.

The United States has long been the major supplier of Taiwan's Agri-food imports, followed

by emerging South American supplier Brazil, Australia, Thailand and New Zealand.

Rice is Taiwan's traditional crop with an annual production of about 1.2 million tons of rice

from two main harvests on about 150 000 hectares of land. Consumption and production of

this staple have declined over the past decade as a result of the change in dietary habits and

increased import competition the livestock industry has recently undergone restructuring to

boost its product competitiveness through strategic business alliances, enhanced disease

surveillance, meat hygiene monitoring systems, and development of brand names. Taiwan's

fishery industry has shifted from small-scale coastal fisheries to aquaculture and deep-sea

fisheries, thanks to its varied climate and advance in technology and breeding techniques.

Processed Food and Agro productsWith Taiwan’s strong Processed Food machinery and

expertise, India can develop its processed food industry and would be able to have greater

share of exports in this sector including third country exports.Taiwan can become the

catalysing agent that can help India feed the world. Taiwanese retailing model is suitable for

India’s vast rural areas.

A multi-sector business delegation from the island nation of Taiwan will be visiting Gujarat

recently to explore TRADE ties and will look at import opportunities from Gujarat. A semi-

governmental TRADE promotion body called TAITRA (Taiwan External Trade Development

Council) will bring around 24 Taiwanese firms to Gujarat to explore trade ties.

Taiwan Association of Machinery Industry (TAMI) Director John Chen said there were plenty

opportunities for bilateral TRADE between Andhra Pradesh and Taiwan. Addressing the

members of the Federation of Andhra Pradesh Chambers of Commerce and Industry

(FAPCCI), he said Taiwan produced some of the best machine tools and parts in the world.

Taiwan’s processed food industry is facing vigorous competition in a more open environment,

and Taiwan’s foreign investments in food processing have grown tremendously in recent

years.

Best prospects for U.S. exporters in the Taiwan market include grape wine, fresh fruit,

cheeses, pork, tree nuts, poultry, beef and seafood. Also in demand are fruit and vegetable

juices, frozen fruit and vegetables, ice cream, yogurt and other dairy products, edible oil,

frozen/microwaveable foods/other convenience foods. Other products of interest include

ingredients for frozen dough, ingredients for frozen prepared foods, ingredients for

functional and health foods, 100% fruit juice concentrates, and wheat flour/bakery pre-

mixes.

Gujarat is a vibrant state in agricultural sector in terms of gross production of agricultural

produce, productivity per hector, adoption of new innovations and technology, crop

diversification, introduction of new crops, post-harvest technology and management.

Gujarat has diversified cropping pattern include the food grains& pulses, cash crops and oil

seeds. Major food grain crops are Wheat, Paddy, Bajara, Maize etc. and Pigeon pea, Gram,

Green gram are the major pulses grown in the state. State has recognition for highest

productivity in the world for castor which is 1984 kg/ha. State produced 84% of total castor

production of the country with area of 4.91 lakh ha. and 9.71 lakh MT production. State has

a 30% share in country for production of Ground nut with 33.76 lakh MT production through

area coverage of 18.05 lakh ha. State has achieved 100 lakh MT food grain productions first

time in a year.

State has highest productivity in country for onion (25 MT/ha.) and potato (28.81 MT/ha.).

Farmer of the state has notable achievement in potato productivity i.e. 87 MT/ha. which is

highest in the world. World is wondering for agriculture growth rate in the state. Agriculture

growth rate at constant price based on 2004-05 base price touch double digit at all the

times. Average agriculture growth rate of the state is 10.8%.

Food processing sector of Gujarat is growing very fast and still there is immense untapped

potential for the sector in Gujarat. As per the Associated Chambers of Commerce and

Industry of India (ASSOCHAM) out of the total investments worth over INR 829.40 billion

attracted by food processing sector as of December 2014, Gujarat attracted the highest

share at 20 per cent. 353 Large and Medium and Scale new Units with investment of INR 48,

040 million have been commenced in Food Processing Sector in the State at the end of

2014.

The State mainly produces spices viz. Cumin, Fennel, and Garlic. The State enjoys monopoly

in seed spices. Isabgul is prominent medicinal crop grown in the State. Sanction of three

Mega Food Parks in three strategic location of Gujarat brings huge opportunities for

investors in Gujarat. DSM has a nutrition factory in Savli, Vadodara, in Gujarat.

In the absence of formal diplomatic ties with Taiwan, because of China’s objections to

anything other than the “one nation policy”, non-governmental organizations - The India

Taipei Association (ITA) and the Taipei Economic and Cultural Centre (TECC) were

established in Taipei and New Delhi respectively Despite the absence of formal diplomatic

relations, cordial and substantive relations between India and Taiwan are not only

continuously growing but are being further substantially strengthened. India-Taipei

Association has also been authorised to provide all consular and passport services. The

Taipei Economic & Cultural Centre in New Delhi is ITA's counterpart organisation in India.

Taiwan governmentsinterestedin the south region of India Effective 15 August 2015,

Republic of China passport holders can avail India's e-Tourist Visa facility.

Taiwan, despite its low agriculture base and limited natural resources, has a more advanced

food processing industry than India. India’s Processed food sector is labour-intensive and

needs technological upgrading. If technology is imported from Taiwan, it will benefit India,

but it has to be customised to suit the requirements of the Indian food processing sector.

India’s major exports to Taiwan consists of petroleum oils, aluminum, not alloyed,

unwrought, refined copper, cathodes and sections of cathodes, cotton yarn, cloth, single of

combed and uncombed fibers, bleached, granite, ferroalloys (alloys of iron with chromium,

manganese, silicon, tungsten, molybdenum or vanadium used in steel making) , crude or

roughly trimmed, iron ores and concentrates other than roasted iron pyrites, naphtha,

mineral non-industrial diamonds etc.

India’s imports from Taiwan are electrical apparatus, digital handsets, desktops, personal

computers, scanners, LCD-TFT panels and computer peripherals, unrecorded compact discs

or magnet optical discs, tyre cords, fabric of high tenacity yarn, nylon and other polyamides,

monolithic integrated circuits, without software, pigments and preparations, partially

oriented filament yarn, artificial fibers, textiles, , PVC synthetic leather, numerically

controlled injection moulding machines, machinery for rubber and plastics, printing and

packing machine, polyvinyl chloride not mixed with any other substances, in primary forms,

petroleum oils, polycetals, plastics and automobile parts.

India and Taiwan are estimated to double bilateral trade to US$10 billion by 2015 through

food processing, information and communication technology and electrical engineering tie-

ups. Taiwan expects bilateral trade to double to US$10 billion in the next five years from

over US$4 billion in 2009. In 2010 (calendar year), Taiwan expected bilateral trade between

the two nations to touch US$6 billion (data has not been verified).

Taiwan is looking for partnerships with India in various sectors, including electronics,

renewable energy, medical devices and automobiles to expand bilateral TRADE volume. The

Taiwanese industrial bodies had also signed three MoUs with associations in Gujarat as a

part of the Vibrant Gujarat Summit. India and Taiwan's bilateral TRADE stood at USD 6

billion in 2013-14 fiscal compared to USD 7 billion in the previous fiscal.





Taiwan to join a project to build Asia's largest solar energy park in Gujarat.Taiwan is the

hardware expert and India is good at producing software. Taiwan and Gujarat could benefit

from cooperation. The Taiwan-based Institute of Information Technology (III) and

Manufacturers' Association for Information Technology (MAIT) are planning to set up

electronic clusters at Gujarat Vittal Innovation City, a special economic zone to come up

near Valsad in Gujarat.

In Gujarat Taxes on processed food in India are among the highest in the world. No other

country imposes excise duty on processed food. No country distinguishes between branded

and unbranded food sectors for taxation. There is excise duty of 16% in the form of CENVAT

levied on food products and then there is sales tax, octroi, mandi samiti, entry tax and

customs duty on material, levied by the Central/State/Local bodies. The net effect ranges

from 21% to 30% on various food items.

It is an obvious and unanimous submission that the State of Gujarat is one of the most

industrialized states in the country. In case of agriculture production and management of

farm produces also, the state is accelerating its pace to maintain its position as a front-

runner in the country. The sector has strong base with highly diversified cropping and

farming community, which is responsive to changes in agricultural technologies and

practices. The state also has other strengths like decent logistical infrastructure like airports,

seaports and extensive road and rail network.

In Andhra Pradesh Agriculture has been the chief source of income and main occupation for

the state with 60% of population engaged in agriculture and related activities. Rice is the

major food crop and staple food of the state. Other important crops are sugarcane,

cotton, mango, tobacco, Maize, pulses etc Agriculture which is mostly rainfed has been the

main livelihood occupation of the farmers in the State. The area under food grain during

2012-13 was 41.56 Lakh hectares. Food grain production was 104.96 Lakh tonnes in 2012-

13. Cereals and Millets contribute to the food grain production (83.21%) followed by pulses

(10.79%).

As per the estimates (2012-2013) of Government of India, Andhra Pradesh state with an

annual output of 1287.40 crore eggs stands 1st in egg production in the country. Every fifth

egg in the country comes from Andhra Pradesh. With annual meat production of 4.78 lakh

MTs. A.P ranks 1st in Micro irrigation system and has so far covered an area of 5.63 lakh ha

with 4.96 lakh farmers by the end of 2013-14 The Fisheries sector contributes 3.63 % to the

GSDP 2013-14(PE). The income accrued from forestry sector in the State was Rs. 41.19 crore

in 2010-11, Rs.52.07 crore in 2011-12, Rs.53.72 crore in 2012-13 and Rs.57.33 crore in 2013-

14. The contribution from the Agriculture sector is Rs.1, 31,019 crore, from the Industry

sector is Rs.1, 03,733 crore while it is Rs.2, 41,107 crore from the service sector to the GSDP

at current prices.

Benefits given by the government in agriculture and food processing sector in AP such as

Land Conversion charges, Capital subsidy, Interest subsidy, Tax incentives -VAT/CST/SGST,

Stamp Duty, APMC cess/fees, Quality certification/Patent registration, Transportation

Export Incentives.

About Taiwan

1.1 Introduction

1.1.1 Taiwan Overview

Taiwan is a small island of approximately 36,000 square kilometres, about the size of the

Netherlands. It is situated southwest of Japan, north of the Philippines, and about 180

kilometres off the south-eastern coast of mainland China. There is a hot springs resorts and

dramatic mountainous terrain. Taipei, the country’s capital Taipei City is in the north, which

is known for its busy night markets and street-food vendors, Chinese Imperial art at the

National Palace Museum.

In 1895, military defeat forced China's Qing Dynasty to cede Taiwan to Japan. Taiwan came

under Chinese Nationalist control after World War II. Following the communist victory on

the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government

under the 1947 constitution drawn up for all of China. Beginning in the 1950s, the ruling

authorities gradually democratized and incorporated the local population within the

governing structure. This process expanded rapidly in the 1980s. In 2000, Taiwan underwent

its first peaceful transfer of power from the Nationalist (Kuomintang or KMT) to the

Democratic Progressive Party. Throughout this period, the island prospered and became

one of East Asia's economic "Tigers." The dominant political issues continue to be

management of sensitive relations between Taiwan and China - specifically the question of

Taiwan's eventual status - as well as domestic priorities for economic reform and growth.

Sources: http://www.bbc.com/news/world-asia-16178545

http://www.bbc.com/news/world-asia-16178545

Table: 1 Overview of Taiwan

National Flag

Land 36,192 km2

Location

Eastern Asia, islands bordering the East China Sea, Philippine Sea,

South China Sea, and Taiwan Strait, north of the Philippines, off the

south-eastern coast of China

Map References Southeast Asia

Area

Total: 35,980 sq km

Land: 32,260 sq km

Water: 3,720 sq km

Note: includes the Pescadores, Matsu, and Quemoy islands

ClimateTropical; marine; rainy season during southwest monsoon (June to

August); persistent and extensive cloudiness all year

Natural ResourcesSmall deposits of coal, natural gas, limestone, marble, asbestos, arable

land

Environment -

Current Issues

Air pollution; water pollution from industrial emissions, raw sewage;

contamination of drinking water supplies; TRADE in endangered

species; low-level radioactive waste disposal

Population 23,462,517 (July 2015 est.)

Population Growth

Rate0.23% (2015 est.)

GDP US$489.21 (2014/est.)

Chart :1 Taiwan GDP (USD billion)

2006 2007 2008 2009 2010 2011 2012 2013 20140

100

200

300

400

500

600

700

800

364.85 376.33393.11 400.2 377.57

428.22 465.2

675.33

489.21

Taiwan GDP (USD Billion)

GDP (USD Billi...

Per-Capita Income Us$22,823 (2014)

Economic Growth

Rate

3.74% (2014);

3.78% (2015/est.)

Unemployment Rate 3.62% (2015/est.)

Inflation 1.20% (2014)

Country Comparison

To The World177

Birth Rate8.47 births/1,000 population (2015 est.)

Country comparison to the world: 216

Death Rate7.11 deaths/1,000 population (2015 est.)


Migrant Rate 0.89 migrant(s)/1,000 population (2015 est.)

Major Urban Areas -

Population

TAIPEI (capital) 2.666 million; Kaohsiung 1.523 million; Taichung 1.225

million; Tainan 815,000 (2015)

Sex Ratio

At birth: 1.07 male(s)/female

0-14 years: 1.07 male(s)/female


25-54 years: 1 male(s)/female


65 years and over: 0.86 male(s)/female

Total population: 0.99 male(s)/female (2015 est.)

Infant Mortality Rate

Total: 4.44 deaths/1,000 live births

Male: 4.84 deaths/1,000 live births

Female: 4.01 deaths/1,000 live births (2015 est.)


Life Expectancy At

Birth

Total population: 79.98 years

Male: 76.85 years

Female: 83.33 years (2015 est.)


Total Fertility Rate 1.12 children born/woman (2015 est.)

Literacy

Definition: age 15 and over can read and write

Total population: 98.5%

Male: 99.7%

Female: 97.3% (2014 est.)

Forex Reserves US$418.96 billion (2015/05)

EthnicityTaiwanese (including Hakka) 84%, mainland Chinese 14%, indigenous

2%.

Government Multiparty democracy (semi presidential republic)

President Ma Ying-jeou

Capital Taipei city

Other Major Cities New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung

Official Language Standard mandarin (Chinese)

Major Religions Mixture of Buddhist and Taoist 93%, Christian 4.5%, other 2.5%

Age Structure

0-14 years: 13.52% (male 1,632,763/female 1,531,895)




65 years and over: 12.48% (male 1,348,686/female 1,573,126) (2015

est.)

Median Age Total: 39.7 years

Exchange Rate For

Converting Indian

Rupee To Taiwanese

1 INR = 0.50045 TWD (1ST Oct. 2015)

Dollar

27-Dec-10 19-Dec-11 17-Dec-12 23-Dec-13 22-Dec-14 28 Sep.2015

1.52989999999998 1.4718999

9999998

1.89092.0643

2.0035 1.99640000000001

Exchange Rate Of Taiwan to Indian Rupee

Exchange Rate

National AnthemChinese lyrics : san min chui

English translation : the rights of the people

National Currency

New Taiwan Dollar (NT$ or TWD)

https://www.cia.gov/library/publications/resources/the-worldfactbook/geos/tw.html

Economic Scenario

Taiwan’s economic growth will be led by firmer external demand. However, the medium-

term economic outlook remains uncertain due to diminished public support for deeper

market integration with mainland China. Weaker global demand, driven mainly by the

https://www.cia.gov/library/publications/resources/the-worldfactbook/geos/tw.html

economic slowdown in China, will also weigh on growth prospects. Gross domestic product

(GDP) is expected at 3.5% for 2015 and is forecasted to be in the 3.5-4.0% range in the near

term.

Economic Risk: Low

Taiwan is a small island economy that has strong economic, political and historical

ties with Hong Kong, Macau and Mainland China. It is an export-oriented economy,

making it particularly vulnerable to fluctuations in global demand.

China is Taiwan’s key exporting destination. Slowing economic expansion in China

could be a headwind to Taiwan’s economic growth near-term as demand slows.

The government remains supportive of increasing foreign direct investment levels

through corporate tax breaks and other business friendly practices. The country

ranks highly at 19th in the World Bank’s 2015 Doing Business survey. However,

bureaucracy and corruption are obstacles to conducting business in Taiwan.

Taiwan’s labor force is one of the worlds most well-trained and educated. The

government hopes to increase labor force participation rates to offset a

demographic shift towards an aging population.

In 2015 Taiwan lowered its outlook for economic growth as exports are squeezed by

increased competition from mainland China. In current year GDP will expand 3.28%, which is

down half a percentage point from February projection. Through March from year economy

of Taiwan is expanded 3.37% which is slower than a preliminary growth.

Now days Taiwan faces many economic issues as other developed economies.With the

prospect of continued relocation of labor-intensive industries to economies with cheaper

work forces, such as in China and Vietnam, Taiwan's future development will have to rely on

further transformation to a high technology and service-oriented economy. In recent years,

Taiwan has successfully diversified its trade markets, cutting its share of exports to the

United States from 49% in 1984 to 20% in 2002. Taiwan's dependence on the United States

should continue to decrease as its exports to Southeast Asia and China grow and its efforts

to develop European markets produce results. Taiwan's accession to the WTO and its desire

to become an Asia-Pacific "regional operations center" are spurring further economic

liberalization.

.

The different businesses that fall under the service sector in Taiwan are: finance, insurance,

and real estate; commerce, including wholesale and retail business, food and beverages,

and international trade; social and individual services; transport, storage, and

telecommunications; commercial services, including legal, accounting, civil engineering,

information, advertising, designing, and leasing; governmental services, and miscellaneous

others

Political Scenario

The political environment in Taiwan has shifted from being strictly communist under the

control of the Koumintang Party. However, recent developments in the parliament of

Taiwan show a considerable adjustment towards a more democratic system. This is great

news for companies seeking entry in the market as liberalization is slowly taking its place.

Companies seeking to operate in Taiwan needs to establish a legal presence.

Taiwan is part of Republic of China (ROC) and hence it is having democratic parties to rule

the country. Taiwan is having Democratic Progressive Party or DPP [TSAI Ing-wen];

Kuomintang or KMT (Nationalist Party) [MA Ying-jeou]; Non-Partisan Solidarity Union or

NPSU [LIN Pin-kuan]; People First Party or PFP [James Soong].

Political Risk: Low

Taiwan’s relationship with Mainland China continues to lie at the forefront of

domestic politics. The president has signed 21 agreements with China, including the

free trade act in 2010.

Taiwan’s increasing economic integration with China has created civil unrest. Last

year, student groups occupied the legislature for almost a month, protesting against

a trade accord.

The ruling party, the Kuomintang (KMT) was defeated by the opposition Democratic

Progressive Party (DPP) in the late 2014 municipal elections. The defeat was the

worst defeat for the party since 1949. The next presidential and legislative elections

are scheduled for January 2016.

President Ma’s popularity has been declining as slowing economic growth lowers

wages and increases income inequality.

1.1.2 Latest News / Development

In the future, agricultural development will work with national policies of economic

liberalization and inter nationalization to focus on industrial development, farmers' and

fishermen's guidance, agricultural land utilization, resource management, technological

development and international agricultural cooperation, etc., selecting the most

appropriate measures to meet agricultural policy goals.

With regard to industrial development, Taiwan will work to improve the agricultural

management environment, develop indigenous, high value added, and low

environmental cost products, and also boost product competitiveness. On the farmers'

and fishermen's assistance front, we will strengthen cultivation of a core group of

farmers and fishermen, promote their abilities to develop on their own and make use of

an integrated plan to develop rural farming and fishing villages, as well as develop a

social welfare system to boost the quality of life for farmers and fishermen. With regard

to agricultural land utilization, we are working to liberalize agricultural we are working to

liberalize agricultural land restrictions and appropriately adjust agricultural land for non

agricultural uses. On the resources management front, we will establish an efficient

transport system for agricultural-use water resources, and strengthen land preservation

and ecosystem conservation.

With regard to technology development, we will speed development of biotechnology

as well as develop and encourage efficient agricultural management and technology to

help maintain a balanced ecosystem, all to help boost industrial upgrading.

With regard to international cooperation, we are strengthening technology exchanges

with developed nations and increasing exports of technology to developing nations to

promote agricultural production internationalization and boost cooperation

effectiveness.

National Agricultural Information Service

Taiwan has completed work on an integrated agricultural information computer service

which includes all planning, production and marketing information for domestic farming,

forestry, fishing and husbandry industries. It allows rapid access to information and is a

fast channel of communication. The system is divided into five areas, including

agriculture production information, forestry information, fishery information, husbandry

and veterinary information and farmers" assistance information. Each area boasts

electronic mail service, open forums for discussion and ways to send and receive files for

farmers to gain access to free management software. Anyone with a personal computer

and communications software can get the service. The service is one of the basic

information services for the agricultural industry, allowing it to join the information age

and break barriers of time and space to exchange ideas and opinions

Taiwan is ranked among the most innovative countries in the world. According to the

global rankings of IMD and World Economic Forum, it ranks ninth on technological

infrastructure and on scientific infrastructure, and 13th on innovation.

The prevalence of 4G is driving the launch of international standards for new 5G mobile

telecommunications networks. Since 2014, Taiwan government has actively built

strategic partnership with industry and research institutes, while investing in relevant

pilot research projects and expanding international cooperation. On June 10, 2015, the

Ministry of Economic Affairs (MOEA) invited the Ministry of Science and Technology,

ITRI, the National Chung-Shan Institute of Science and Technology, the Institute for

Information Industry, the Taiwan Association of Information and Communication

Standards (TAICS), and enterprises like Chunghwa Telecom, MediaTek, Asus, and Acer to

work for Taiwan’s 5G technology developments.

Taiwan's interest in joining the Asian Infrastructure Investment Bank (AIIB) in Taipei,

Taiwan. More than 40 countries, including Russia and Taiwan, have agreed to be

founding members of China’s proposed Asian Infrastructure Investment Bank. However,

two of the world’s largest economies, the United States and Japan, have held off at this

time. China proposed the bank last October as a way to finance roads, bridges, ports and

other needed infrastructure projects in Asia.

1.2 Overview of Industries

TAIWAN: MAJOR INDUSTRIES

The major industries in Taiwan are electronics, petroleum refining, armaments, chemicals,

textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products,

pharmaceuticals. We can have a look at the major industries one by one and then do an

analysis on the investment opportunities on one of them.

1.2.1 List of Industries

a) SEMICONDUCTOR INDUSTRY

b) DISPLAY AND OPTOELECTRONICS

c) BIOTECHNOLOGY AND PHARMACEUTICALS

d) TELECOMMUNICATION

e) MATERIALS AND FINE CHEMICALS

f) FINANCE, SECURITIES AND INSURANCE

g) ELECTRONIC COMPONENTS

h) ENERGY

i) FISH AND SEA-FOOD

SEMICONDUCTOR INDUSTRY

Taiwan has truly emerged as a global leader in the semiconductor and microelectronics

industry and serves as the home of the world's top IC foundries, Taiwan Semiconductor

Manufacturing Corporation (TSMC) and United Microelectronics (UMC), which hold a

majority of the market share.Taiwan is also an important player in Mask ROM

production, IC packaging and IC testing, accounting for 57.1%, 32% and 36% of global

market shares respectively. Taiwan-based Advanced Semiconductor Engineering Inc.

(ASE) and Silicon ware Precision Industries (SPIL) lead the IC packaging industry, while

ASE Test and Chip MOS Technologies lead the IC testing industry.

DISPLAY AND OPTOELECTRONICS

Taiwan has seen significant growth in its colour imaging (CI) industry in recent years. The

overall production value of the flat panel display (FPD) industry alone has increased

more than twofold since 2001, totalling US$7.39 billion, of which 83.4% came from the

production of large size TFT-LCD units. In Q1 2004, the island's Flat Panel Display (FPD)

sales reached NT$171.3 billion (US$5.1 billion), a 115% increase on the previous year,

and 2004 sales are projected to reach NT$727.1 billion (US$21.7 billion). Taiwan is

currently expected to account for 41% of large-sized TFT-LCD panel supply in 2004,

becoming the world's largest production base.

BIOTECHNOLOGY AND PHARMACEUTICALS

Taiwan's concerted policy efforts to develop research, development and production

capabilities in the biotech sector have paid off in creating a wealth of investment

opportunities. Biotech research at Taiwan's top academic institutions is gaining

international attention, while development capabilities, fostered through joint industry

and government support, are turning these research achievements into commercially

viable products. Taiwan's mature production and logistics capabilities, evidenced by its

over 100 cGMP-awarded pharmaceutical manufacturers, have been widely recognized

as powerhouses in this area.

TELECOMMUNICATION

Taiwan offers much potential in the telecommunications market, with one of the most

advanced telecommunications networks in the region. High penetration rates in both

the fixed-line and mobile phone sectors have encouraged growth in telecom products

and services. Looking to 2004, the Ministry of Economic Affairs has announced plans to

make the telecommunications industry one of Taiwan's "trillion dollar" industries, which

will nurture the development of wireless applications, 3G, and broadband services.

MATERIALS AND FINE CHEMICALS

The production value of the material and fine chemical industry in Taiwan has averaged

approximately US$44.38 billion annually, with petrochemical materials, polymer,

electrical materials and fine chemical products as major output. Taiwan is the largest

producer of ABS, the second largest supplier of PTAs, and the fourth largest in PVCs,

supplying the Taiwan domestic market and the world's major markets, especially

Mainland China.

FINANCE, SECURITIES AND INSURANCE

With foreign exchanges reserves of over US$200 billion at the end of 2003, and a

forecasted 4.5% economic growth rate for 2004, Taiwan continues to maintain a robust

economy, due in part to government action on internationalization and liberalization

policies.

ELECTRONIC COMPONENTS

Taiwan is the world leader in semiconductor foundries, packaging and testing of

integrated circuits, and production of blank optical disks and MROMs (mask read-only

memory). It is second in the world (after the US) in integrated circuit design, and one of

the most important producers of several other electronic components. By specializing in

very long runs of relatively standardized components, Taiwanese manufacturers benefit

from economies of scale and have managed to press down unit costs to levels often far

below those of their competitors, thereby gaining a competitive advantage. Strength of

the Taiwanese electronics industry is its precision and reliability: rejects make up a very

small proportion of each production run.

Table: 2. Electronic Component as share of GDP

2012 2013 2014 2015

Volume growth, electronic components 5.4% 3.9% 0.5% 2.1%

Electronic components as share of GDP 7.6% 7.2% 7.0% 7.0%

ENERGY

Taiwan has few natural resources and imports more than 99% of the gas, oil, coal and

nuclear fuel needed to meet the demands of industry and households. Traditional

energy sources such as coal (36%), LNG (26%) and nuclear power (16%) still dominate

the energy supply. The policy is to maintain a well-mixed portfolio of energy sources to

balance costs, energy sufficiency and environmental protection. In photovoltaic,

considerable public and private investments have been made with the goal to make

Taiwan the third-largest producer of solar cells by 2015.

Table: 3 Energy components as a share of GDP

2012 2013 2014 2015

Volume growth, electronic components 0.4% 4.2% 0.8% 2.0%

Electronic components as share of GDP 1.0% 1.0% 1.0% 1.0%

FISH AND SEAFOOD

Taiwan is a big exporter and importer of fish and seafood products, which play an

important role in the Taiwanese diet (the average consumer is estimated to eat 35 kg of

such products each year.

Table: 4 Fish and Sea food as a share of GDP

2012 2013 2014 2015

Volume growth, fish and seafood 5.5% 1.2% 2.8% 4.0%

Fish and seafood as share of GDP 0.7% 0.7% 0.7% 0.7%

In recent years, the health benefits of fish and seafood products have received more

attention in Taiwan and nowadays consumers base their purchasing decisions based on

health considerations as well as other factors.

1.2.2Contribution of industries in national GDP

Table: 5 Contribution of industries in national GDP

Taiwan National GDP (2014)

Agriculture 1.90%

Industry 34.10%

Service 64.10%

Chart: 2 Contribution of industries in national GDP

2%

34%

64%

Taiwan GDP (2014)Agriculture Industry Service

1.2.3 Export-Import Statistics

Taiwan Import-Exports

Exports in Taiwan increased to 758471 TWD Million in August from 728548 TWD Million &

Import increased to 630820 TWD Million in August from 616632 TWD Million in July of

2015. Exports in Taiwan averaged 366556.96 TWD Million from 1981 until 2015, reaching an

all-time high of 842228 TWD Million in Imports in Taiwan averaged 323613.85 TWD Million

from 1981, reaching an all-time high of 782135 TWD Million until 2015,August of 2014 and a

Export record low of 50577 TWD Million in February of 1981, Import record low of 48050

TWD Million in February of 1983. Import-Exports inTaiwan is reported by the Ministry of

Finance, R.O.C. A lack of natural resources had made Taiwan dependent on imports.

Table: 6 Exports – Import Statistics of Taiwan

Export Product Export Import Product Import

Electronics, 39.30

%Iron & Steel

3.80%

Medical & Technical Equipment 6.60% Chemical 2.60%

Plastics 6.80% Electronic products 20.90%

Machine 10% Oil 23.90%

Oil6.40% Medical & Technical

Equipment

4.10%

Chemical 3.80% Plastic 2.80%

Iron & Steel 3.40% Vehicles 2.60%

Vehicles 3.30% Cooper 2%

Optical and photographic

instruments 8% Pharmaceutical 2.70%

Chemicals 1.20% Machinery 10.20%

http://www.worldsrichestcountries.com/top_taiwan_exports.html

http://www.worldsrichestcountries.com/top_taiwan_exports.html

Table: 7 Export Partner

Chart 3: Import – Export Partner

Import %Mainland China & Hong Kong USA Japan Europe ASEAN countries

14%11%

10%10%

Export %Mainland China & Hong Kong USA Japan Europe ASEAN countries

42%

12%7%

11%

15%

Export Partner Import % Export %

Mainland China & Hong Kong 14% 42%

USA 10% 12%

Japan - 7%

Europe 10% 11%

ASEAN countries 11% 15%

Chart: 4 Taiwan Import

Chart: 5 Taiwan Export

Table: 8 India’s total import and India’s Export

Country: TaiwanS.No.

Year 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

1India's Total Export

1,047,916.9 1,598,615.6 1,655,512.2 1,206,046.9 1,333,672.7

2India's Total Import

1,803,677.6 2,301,149.0 2,157,624.1 2,438,157.2 2,461,798.5

3Total Trade

2,851,594.6 3,899,764.7 3,813,136.4 3,644,204.2 3,795,471.2

4India's Total Trade

282,043,121.9

381,142,264.4

430,348,024.6

462,044,499.6

463,343,499.59

Chart: 6 India Import Export to Taiwan

2010-2011 2011-2012 2012-2013 2013-2014 2014-20150.00

500,000.001,000,000.001,500,000.002,000,000.002,500,000.003,000,000.00

India's Import Export to Taiwan India's Total ExportIndia's Total Import

1.2.4 Major players of each industry with their market share

Table: 9Major player of each industry with their market share

Industry Company

Information Technology Xiaomi Technology, Zentera System, Inc.,

Corning Incorporation, Seagate Technology

Agriculture Continex, Mitranamano Biotech co. ltd.,

ShuenYue Industrial co., Agroporiom

Energy Spring Professional , Eaton , Atmel

Corporation , AECOM

Computer and Peripheral equipment Corning , Atlas Copco , Tektronix , ASML

Security system and equipment Zentera System, Inc. , IBM , Lilee , System ,

Synopsys , Lucent Sky

Iron and Steel Michael Page , WalsinLikwa corp.

Banking Bank of Taiwan, Land Bank of Taiwan

Taipei Fubon Bank , Chang Hwa Bank

Automobile Talkoo Motors , McKinsey , Hotai Motors ,

Yulan Motors

Textile Ecolab , Huntsman

2. About Agriculture and Processed foodof Taiwan

2.1 Overview of Agriculture of Taiwan

Taiwan’s economy will strengthen in 2014. Real Gross Domestic Product (GDP) is expected

to grow by 3.2% in 2014 up from 1.6% in 2013. A moderate improvement in exports and a

rise in public and private investment will drive growth. Sluggish growth in wages has

depressed private consumption. Taiwan’s long-term challenge is to remain competitive with

its Asian rivals as they expand their own free trade deals with key partners in the US and

Europe, South Korea, China and Japan. A new trade agreement between China and Taiwan

came into effect in 2014.

Post reports that although it is a small island (the area is about 63% of Lake Michigan in U.S.)

with a population of only 23 million people, Taiwan has developed into one of the world's

largest economic and trading entities. Over the past decade, Taiwan has transformed itself

from a light industry-manufacturing base to a global centre for the production of high

technology products. With GDP on a Purchasing Power Parity (PPP) basis of $931.4 billion in

2013, Taiwan is the world's 19th largest economy, as well as the 5th largest economy in

Asia. In 2013, Taiwan had an estimated per capita GDP (PPP) of $39,942. Although down

4% to just over US$3 billion in 2013, Taiwan is the United States’ 7th largest export market

for all agricultural products, as well as those of a consumer oriented variety.

In 2013, Taiwan’s population was 23.3 million, up from 17.5 million in 1980. The median

age had reached 38.4 years in 2013, 15.8 years greater than the figure for 1980 and

significantly greater than the regional average. Taiwanese society is clearly ageing at a rapid

pace. In less than two decades Taiwan will be converted from a “greying” society to an

ageing one according to United Nations definitions compared to 50-100 years for advanced

Western societies. The ageing process is also reflected in the fertility rate, which fell to just

1.1 births per female in 2013. This is the lowest rate of any major Asian country.

Changes in the pattern of consumption therefore are expected as Taiwan’s population ages.

According to a recent government survey, only 14% of the spending by those over 65 years

comes from pension funds. Support from younger family members accounts for more than

half. Without more effective forms of government support, more drastic shifts in consumer

patterns may be in store as the ageing process continues.

Although Taiwan is an economic powerhouse, domestic agricultural production is somewhat

limited. As a result, Taiwan is increasingly reliant on imports of food and other agricultural

products. The United States has long been the major supplier of Taiwan's Agri-food imports,

followed by emerging South American supplier Brazil, Australia, Thailand and New Zealand.

In 2012 the U.S. had a 28.7% market share in the Taiwan agricultural market, the largest by

far. Historically the majority of U.S. agricultural exports to Taiwan were bulk commodities,

but that is changing. In 2013 U.S. exports of consumer-oriented agricultural products grew

11% to over US$1.3 billion, about 43% of the agricultural total and virtually even with the

bulk commodity total, also at US$1.3 billion. Top processed export products imported by

Taiwan in 2013 included other processed foods, ingredients and beverage bases, French

fries, bottled drinks, pet food, cheese, baking inputs, mixes and dough’s, chocolate candy,

baked snack foods and protein concentrate.

Taiwan's densely populated consumer market is becoming increasingly attractive to U.S.

exporters. Taiwanese consumers are welcoming North American-style foods, such as ready-

made products, with various consumer groups adopting eating habits reflective of North

American and European markets. Consumer demands are accommodated through Taiwan's

growing modern retail food sector and foodservice industry.

While Taiwan continues to be a strong market for U.S. products, suppliers are also facing

increased competition from other countries. WTO trade liberalization and consumer

demand for novelty and variety have created a highly competitive environment for U.S.

exporters. This puts a strong emphasis on innovative product development, superior

marketing skills, and a trend towards high value niche product markets.

Other challenges for U.S. exporters of food and agricultural products include the fact that

geographically, the U.S. is much farther from Taiwan than many major competitors, and the

lack of direct air links by major U.S. airlines reduces the profile of Taiwan to U.S. exporters,

who often overlook Taiwan as well, eager to export directly to mainland China. U.S.

exporters are also sometimes reluctant to change product specifications to comply with

Taiwan requirements and consumer preferences, and also unwilling to provide low volume,

consolidated shipments of high-value products to food service companies. Taiwan’s

emerging “green” tendencies have a potential to favor domestic foods by discouraging the

consumption of imported foods and reducing the “carbon footprint” associated with

imported products.

Crop Farming

Rice is Taiwan's traditional crop with an annual production of about 1.2 million tons of rice

from two main harvests on about 150 000 hectares of land. Consumption and production of

this staple have declined over the past decade as a result of the change in dietary habits and

increased import competition. In response, Taiwan's researchers have refined rice

cultivation techniques and developed new high-quality varieties (e.g. organic rice) for

domestic consumption and export. A number of policy measures have also been put in place

by the Taiwanese government to help enhance the quality of rice production. These include

the accreditation of agricultural products, food traceability system, and a grading system to

phase out the production of inferior rice.

Due to climate diversity, a variety of fruits and vegetables are also grown in Taiwan. In 2012,

2.7 million tonnes of fruit and 2.7 million tonnes of vegetables were harvested and the

export value of which totalled US$177.9 million (HK$1.4 billion) and US$167.1 million

(HK$1.3 billion) respectively. The Taiwanese government has put great efforts into

promoting exports, and local fruit growers have adjusted their cultivation and marketing

methods against increased import competition. Meanwhile, some orchards have been

transformed into agro-tourism destinations.

Tea is another world-renowned agricultural product of Taiwan. In particular, the oolong tea

accounts for almost one-fifth of the world's production. However, Taiwan's tea exports have

been on the decline in recent years: 14 902 tonnes of tea were harvested in 2012 and only 3

100 tonnes were exported. In response, tea growers have focused more on domestic

market and authentication of their products through the traceability system and registration

for certification trademarks. Some tea growers have also opened up their tea farms to

tourists, offering tea sampling and guided tours showing various stages of tea production.

Livestock farming

Taiwan's modernized livestock farming industry has grown steadily in recent years. It has

become a mainstay of the agricultural sector, thanks to technical innovations (particularly in

feeding and breeding skills) and increased demand for animal-protein foods. In 2012, the

three major livestock products were hogs, chickens and eggs in terms of the**ir total value

of agricultural production.

The livestock industry has recently undergone restructuring to boost its product

competitiveness through strategic business alliances, enhanced disease surveillance, meat

hygiene monitoring systems, and development of brand names. A prominent example is the

strategic business alliance established by the National Animal Industry Found at to promote

the brand "Taiwan Black Pig"

Fishery

Taiwan has over 1 100 kilometres of coastline. To the east, the world's second-strongest

ocean current – the Kuroshio – brings abundant stocks of migrating fish through Taiwan's

waters, while the continental shelf on the western coast provides good habitats and

spawning grounds for a wide variety of sea life. More than half of Taiwan's seafood

production was shipped abroad in 2012, contributing to US$2.1 billion (HK$16.3 billion) or

40% of the total value of agricultural exports.

Taiwan's fishery industry has shifted from small-scale coastal fisheries to aquaculture and

deep-sea fisheries, thanks to its varied climate and advance in technology and breeding

techniques. In 2012, aquaculture accounted for 27.7% of fishery production by volume and

37.3% by value. Taiwan is also a major supplier of groupers and tilapia in the world.

Food Processing Sector:

Taiwan’s accession to the WTO has benefited the domestic food processing industry

through market liberalization. At the same time, imported finished food products have

been taking increased market shares from domestically produced products and this trend is

expected to continue. Taiwan’s food processing industry is facing vigorous competition in a

more open environment, and Taiwan’s foreign investments in food processing have grown

tremendously in recent years.

Taiwan food processors continue to battle fluctuating global commodity prices, but Taiwan

authorities occasionally provide relief in the form of tariff reductions for key imported inputs

such as wheat, barley, corn, and soybeans. Taiwan’s food processing industry is seeking

opportunities overseas to offset a more competitive domestic market. Top Taiwan firms

such as Uni-President and Great Wall have enjoyed great success in developing

infrastructure and large scale agriculture and food processing facilities in China.

Best Prospects:

Best prospects for U.S. exporters in the Taiwan market include grape wine, fresh fruit,

cheeses, pork, tree nuts, poultry, beef and seafood. Also in demand are fruit and vegetable

juices, frozen fruit and vegetables, ice cream, yogurt and other dairy products, edible oil,

frozen/microwaveable foods/other convenience foods. Other products of interest include

ingredients for frozen dough, ingredients for frozen prepared foods, ingredients for

functional and health foods, 100% fruit juice concentrates, and wheat flour/bakery pre-

mixes.

India–Taiwan relations

2.2 Bilateral Trade

The bilateral relations between India and Taiwan have improved since the 1990s despite

both nations not maintaining official diplomatic relations. India recognizes only the People's

Republic of China (in mainland China) and not the Republic of China's claims of being the

legitimate government of Mainland China, Hong Kong, and Macau - a conflict that emerged

after the Chinese Civil War (1945–49). However, India's economic & commercial links as well

as people-to-people contacts with Taiwan have expanded in recent years.

Bilateral Trade & Investment (2011-12)

Total trade: US$7.42 billion

Exports: US$ 3.04 billion

Imports: US$ 4.38 billion

Taiwanese FDI in India

Total FDI inflows from Taiwan: $65.56 mn

Percentage share of Taiwan intotal FDI inflows: 0.04%

Processed food

Taiwan, despite its low agriculture base and limited natural resources, has a more advanced

food processing industry than India. India’s food processing sector is labour-intensive and

needs technological upgrading. If technology is imported from Taiwan, it will benefit India,

but it has to be customised to suit the requirements of the Indian food processing sector.

India’s Exports to Taiwan

Table: 10 India’s Exports to Taiwan

petroleum oils Fruit-Apples, kiwi fruit, plums, peaches,

grapefruit and exotic fruits – durian

(jackfruit) and mangos teen.

Aluminum mineral non-industrial diamonds

Unwrought Naphtha

refined copper wheat

cathodes and sections of cathodes acrylic hydrocarbons

cotton yarn dyes and pigments

Cloth chemicals for antibiotics

Table: 11Top 10 Taiwanese Imports from India (2014)

Top 10 Taiwanese Imports from India (2014)

Oil $1 billion

Iron and steel $270.4 million

Organic chemicals $150.8 million

Aluminum $103.2 million

Gems, precious metals, coins $80.7 million

Cotton $74.7 million

Zinc $71.6 million

Food waste, animal fodder $71.5 million

Vehicles $63.8 million

Machines, engines, pumps $57.6 million

http://www.worldsrichestcountries.com/top_taiwan_imports.html

http://www.worldsrichestcountries.com/top_taiwan_imports.html

Agriculture and Processed foodCategories

Table: 12 Agriculture and Processed foodCategories

Sub-Segments Production

Floriculture(2013-14)

Flowers (loose) 2.29 Million Tonnes

Fresh fruits and vegetables (2013-14)

Fruits 89 Million Tonnes

Vegetables 162.9 Million Tonnes

Animals Products(2013-14)

Milk 137.7 Million Tonnes

Egg 74.8 Billion

Wool 47.9 Million k.g

Fish 9.6 Million Tonnes

Meat 6.2 Million Tonnes

Cereals (2013-14)

Rice 106.7 Million Tonnes

Wheat 95.9 Million Tonnes

India’s Imports from Taiwan

India’s imports from Taiwan are electrical apparatus, digital handsets, desktops, personal

computers, scanners, LCD-TFT panels and computer peripherals, unrecorded compact discs

or magnet optical discs, tyre cords, fabric of high tenacity yarn, nylon and other polyamides,

monolithic integrated circuits, without software, pigments and preparations, partially

oriented filament yarn, artificial fibers, textiles, , PVC synthetic leather, numerically

controlled injection moulding machines, machinery for rubber and plastics, printing and

packing machine, polyvinyl chloride not mixed with any other substances, in primary forms,

petroleum oils, polycetals, plastics and automobile parts

Table: 13Top 10 Taiwanese Exports to India (2014)

Top 10 Taiwanese Export to India (2014)

Iron and steel $166.9 million

Organic chemicals $550.4 million

Gems, precious metals, coins $147.2 million

Tanning, dyeing extracts $72.2 million

Other chemical goods $55.1 million

Manmade filaments $53.8 million

Machines, engines, pumps $519.9 million

Plastic $709.6 million

Electronic Equipment $525.4 million

Coated textile fabric $88 million

Source: http://fx-rate.net/TWD/INR/ BUSSINESS

http://fx-rate.net/TWD/INR/BUSSINESS

BUSSINESS OPPORTUNITIES

TAIWAN AND INDIA

Processed Food and Agro products

With Taiwan’s strong Processed Food machinery and expertise, India can develop its

processed food industry and would be able to have greater share of exports in this sector

including third country exports.

Taiwan can become the catalyzing agent that can help India feed the world. Taiwanese

retailing model is suitable for India’s vast rural areas.

GUJARAT AND TAIWAN





“On October 5th,2014 a delegation of around 24 companies which will be multi-sectoral will

be visiting and will be looking at partnerships for joint ventures, turnkey projects and

explore trade and international partnerships in five days. Taiwanese firms are interested in

establishing clusters and SEZ in Gujarat. We are also hoping to sign and MoU with TAITRA

which is an apex body so that our members can communicate and explore further trade

partnerships with the Taiwanese. Last year around 20 Taiwanese firms had visited the state

and we held 153 business meetings,” said Bhagyesh Soneji, Chairperson of Foreign Trade

Council at GCCI (Gujarat Chamber of Commerce & Industry).

Taiwan firms will be eyeing Gujarat for investments with a thrust on sectors like ICT,

textile, auto parts and processed food for investments. “Taiwanese companies plan to invest

close to $420 billion (USD) in the next 4-5 years in India. In the next 2-3 years you will see

our (Taiwanese) INVESTMENT here in Gujarat. Taiwanese technology major Foxconn which

has already lined up $20-billion (Rs 1.3 lakh-crore) investment plans for India, maybe coming

to Gujarat, Tamil Nadu, Maharashtra and Karnataka to set up 10 to 12 manufacturing units,

that will employ close to 20,000 workers in the coming 2 years.

Gujarat invites Taiwan to build industrial park

Taiwan to join a project to build Asia's largest solar energy park in Gujarat. Taiwan is the

hardware expert and India is good at producing software. Taiwan and Gujarat could benefit

from cooperation.

Taiwan, MAIT plan electronic clusters in Gujarat

The Taiwan-based Institute of Information Technology (III) and Manufacturers' Association

for Information Technology (MAIT) are planning to set up electronic clusters at Gujarat Vittal

Innovation City, a special economic zone to come up near Valsad in Gujarat.

They are interested in INVESTING in Gujarat and in Gujarat Vittal Innovation City (GVIC).

Besides investing in areas like e-governance, IT and electronic manufacturing project.

Meanwhile, Manufacturers' Association for Information Technology (MAIT) and Gujarat

Vittal Innovation City Limited (GIVCL) signed an Memorandum of Agreement (MoA) in 2014

in the presence of Gujarat's chief minister Narendra Modi. The MoA witnessed by the

INVESTMENT promotion delegation from Taiwan to Gujarat is aimed at strengthening the IT

and Electronics sector in Gujarat and GVIC.

This partnership provides a strategic opportunity for India to leapfrog in Electronics and IT

hardware manufacturing, on the lines of the success in the IT software sector.

ANDHRA PRADESH AND TAIWAN


opportunities for bilateral TRADE between Andhra Pradesh and Taiwan.

Addressing the members of the Federation of Andhra Pradesh Chambers of Commerce and

Industry (FAPCCI), he said Taiwan produced some of the best machine tools and parts in the

world.

2.3 Details of Agriculture and Processed foodwith respect to Gujarat

Overview of Agriculture and Processed foodOF GUJARAT

Agriculture Production Scenario

Gujarat is a vibrant state in agricultural sector in terms of gross production of agricultural

produce, productivity per hector, adoption of new innovations and technology, crop

diversification, introduction of new crops, post-harvest technology and management.

Gujarat has diversified cropping pattern include the food grains& pulses, cash crops and oil

seeds. Major food grain crops are Wheat, Paddy, Bajara, Maize etc. and Pigeon pea, Gram,

Green gram are the major pulses grown in the state. Cotton, Castor, ground nut, Mustard

are the important oilseeds crops of the state and state has notable achievement in

production and productivity scenario in cotton, castor and ground nut. Cotton is an

important crop of the state which covers 26.33 lakh ha. Area under cultivation and

produced 98.25 lakh bales during 2010-11 which is 1/3 production of the country. State has

recognition for highest productivity in the world for castor which is 1984 kg/ha. State

produced 84% of total castor production of the country with area of 4.91 lakh ha. And 9.71

lakh MT production. State has a 30% share in country for production of Ground nut with

33.76 lakh MT production through area coverage of 18.05 lakh ha. State has achieved 100

lakh MT food grain productions first time in a year, too.

Horticulture Production Scenario

Horticulture production scenario gives the shining of increment. Area under cultivation of

horticulture crops and production are continuously increasing in the state. “GirKesar

Mango”, “Kutchi Date” has a unique identity in the country. State is known for Cumin,

Fennel, Isabgol production and productivity. State contributes more than 90% production of

the country in Fennel. Farmer’s efforts make Gujarat proud in productivity of the onion and

potato. State has highest productivity in country for onion (25 MT/ha.) and potato (28.81

MT/ha.). Farmer of the state has notable achievement in potato productivity i.e. 87

MT/ha.Which is highest in the world.

Agriculture Growth Rate @ Constant Price

World is wondering for agriculture growth rate in the state. Agriculture growth rate at

constant price based on 2009-10 base price touch double digit at all the

times.Averageannual Growth Rate in Gujarat (GSDP) during the year 1980-81was 6.3

percent, it hasreached to 10.2 percent in the year 2009-10.

Gujarat is a diversified agricultural economy. The State agriculture economy has witnessed a

shift towards high value crops like cotton, groundnuts, fruits and vegetables and condiments

and spices from low value cereals and other crops. As per the second advance estimates,

production of food grains during 2014-15 is estimated at 79.47 lakh tonnes compared to

93.82 lakh tonnes last year.

During the year 2013-14, the production of cotton bales each of 170 kg. Were 100.88 lakh

bales which slightly decrease to 100.66 lakh bales during the year 2014-15. The production

of oil seeds is estimated at 53.38 lakh tonnes during the year 2014-15 against the

production of 74.70 lakh tonnes during the year 2013-14.

Food processing sector of Gujarat is growing very fast and still there is immense untapped

potential for the sector in Gujarat. As per the Associated Chambers of Commerce and

Industry of India (ASSOCHAM) out of the total investments worth over INR 829.40 billion

attracted by food processing sector as of December 2014, Gujarat attracted the highest

share at 20 percent. 353 Large and Medium and Scale new Units with investment of INR 48,

040 million have been commenced in Food Processing Sector in the State at the end of

2014.

Major agriculture commodities grown in Gujarat are Groundnuts, Cotton, Soybeans, Maize,

Pulses, Wheat and Rice. The major fruit crops grown in Gujarat are Banana, Mango, Citrus,

Papaya and Sapota. In the year 2013-14 the productivity of fruit crops is estimated at 21.18

MT/ Hectare.

The major vegetables grown in Gujarat are Onion, Potato, Brinjal, Tomato, Okra and

Cucurbits. In the year 2013-14, the average 1productivity of vegetables is estimated at 19.90

MT/Hectare.

The State mainly produces spices viz. Cumin, Fennel, and Garlic. The State enjoys monopoly

in seed spices. Isabgul is prominent medicinal crop grown in the State. Sanction of three

Mega Food Parks in three strategic location of Gujarat brings huge opportunities for

investors in Gujarat. DSM has a nutrition factory in Savli, Vadodara, in Gujarat.

Various Growth Drivers for food Processing Sector in Gujarat are:

Good Agriculture Resources of Gujarat.

Contract farming is turning into success story instead of just being a concept.

Entrepreneurship mindset of people of Gujarat.

Increasing disposable income of people.

Majority of the population is of youth and eating out is their favourite celebration

way.

Increasing trend of food chains.

Trend of having centralized kitchen in food chains.

Subsidy and Incentive schemes provided by Ministry of Food Processing,

o Government of India is encouraging developers to invest in best technologies

from all over the world.

Good Rail and Road connectivity with hinterland area bringing cost effective

Opportunities for procurement and trading into domestic market. Better access to

world seaports and airports brings opportunities for trading into international

market.

Sub segment ofAgriculture and Processed food: Product categories

Table : 14 Sub segment of Agriculture and Processed food: Product categories

The agriculture and food industry in India can be categorised into five broad segments: -

Fresh fruits and vegetables

Floriculture, comprising fruit and vegetable seeds and Flowers.

Proceed fruits and vegetables and other processed food.

Animal products including meat, Poultry, and Dairy

Cereals such as rice and Wheat.

SUB-SEGMENTSFloriculture(2013-14)

Flowers (loose)

Fresh fruits and vegetables (2013-14) Fruits

Vegetables

Animals Products(2013-14) Milk

Egg

Wool

Fish

Meat

Cereals (2013-14) Rice

Wheat

Contribution of agriculture and processed food in India GDP

Agriculture Sector of Indian Economy is one of the most significant parts of India.

Agriculture is the only means of living for almost two-thirds of the employed class in India.

As being stated by the economic data of financial year 2006-07, agriculture has acquired 18

percent of India's GDP.

The agriculture sector of India has occupied almost 43 percent of India's geographical area.

Agriculture is still the only largest contributor to India's GDP even after a decline in the same

in the agriculture share of India. Agriculture also plays a significant role in the growth of

socio-economic sector in India.

In the earlier times, India was largely dependent upon food imports but the successive

stories of the agriculture sector of Indian economy have made it self-sufficing in grain

production. The country also has substantial reserves for the same. India depends heavily on

the agriculture sector, especially on the food production unit after the 1960 crisis in food

sector. Since then, India has put a lot of effort to be self-sufficient in the food production

and this endeavour of India has led to the Green Revolution. The Green Revolution came

into existence with the aim to improve the agriculture in India.

The services enhanced by the Green Revolution in the agriculture sector of Indian economy

are as follows:

Acquiring more area for cultivation purposes

Expanding irrigation facilities

Use of improved and advanced high-yielding variety of seeds

Implementing better techniques that emerged from agriculture research

Water management

Plan protection activities through prudent use of fertilizers, pesticides, and cropping

applications

All these measures taken by the Green Revolution led to an alarming rise in the wheat and

rice production of India's agriculture. Considering the quantum leap witnessed by the wheat

and rice production unit of India's agriculture, a National Pulse Development Programme

that covered almost 13 states was set up in 1986 with the aim to introduce the improved

technologies to the farmers. A Technology Mission was introduced in 1986 right after the

success of National Pulse Development Programme to boost the oilseeds sector in Indian

economy. Pulses too came under this programme. A new seed policy was planned to

provide entree to superior quality seeds and plant material for fruits, vegetables, oilseeds,

pulses, and flowers.

The Indian government also set up Ministry of Food Processing Industries to stimulate the

agriculture sector of Indian economy and make it more lucrative. India's agriculture sector

highly depends upon the monsoon season as heavy rainfall during the time leads to a rich

harvest. But the entire year's agriculture cannot possibly depend upon only one season.

Taking into account this fact, a second Green Revolution is likely to be formed to overcome

the restrictions. An increase in the growth rate and irrigation area, improved water

management, improving the soil quality, and diversifying into high value outputs, fruits,

vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the

services to be taken by the Green Revolution to improve the agriculture in India.

Key industry players in Gujarat

McCain food sources significant shares nearly (85%) of the potatoes needed for

manufacturing its product form Gujarat itself. It has undertaken potato contract farming in

various parts of north and central Gujarat.

Balaji group has pioneered the concept of potato wafers manufacturing by focusing on

customer teste and requirement. The company has almost 90% market share Gujarat’s

wafers market and 70% of market share of state’s namkeen (snacks) market.

Local taxes and duties in agriculture and processed food

Taxes on processed food in India are among the highest in the world. No other country

imposes excise duty on processed food. No country distinguishes between branded and

unbranded food sectors for taxation. There is excise duty of 16% in the form of CENVAT

levied on food products and then there is sales tax, octroi, mandisamiti, entry tax and

customs duty on material, levied by the Central/State/Local bodies. The net effect ranges

from 21% to 30% on various food items.

India is the only country to have levied excise duty on machinery and equipment for

processed foods. Indian consumers are very price-sensitive and cost reductions are

imperative to raise demand and consumption of food products. Since the net effect of

various taxes falls directly on the price, the off-take of processed food items remains low.

Consider the Food and Vegetable sector, where against the installed capacity of 21 lakh

tonnes (of the units registered under FPO), present production is only 9.4 lakh tonnes or

about 45%.

Assuming a value of Rs.10 per kg, the receipts on account of 16% CENVAT would be around

Rs.150 crores in the first year, and looking at past experience of negative growth, the

receipts will reduce by 5 to 10% in every succeeding year. Reduction of excise duty by say

5% might result in less receipts in the first year but would more than make up in the

subsequent years i.e. at 100% capacity utilisation, the first year receipt would be Rs.100

crores, but with annual growth rate of 25%, the receipts would Rs.125 crores in the second

year, Rs.156 crores in third and after five years, it would cross Rs.200 crores at the present

price index. Moreover, the National Savings because of reduction in wastage would run into

thousands of crores (the present level because of 30% wastage in Fruit and Vegetable Sector

alone results in an estimated wastage of Rs. 25,000 to Rs. 30,000 crore).

Branded food items attract higher sales tax and excise duty as against the unbranded ones.

It is reasonable to expect that any meaningful investment in this sector will necessitate

branding of products. It is noteworthy that no country treats branded food differently for

levying duties. The exemption to unbranded and unorganised sector from excise and sales

tax leads to low quality consciousness among manufacturers and consumers.

Benefits or policy given by the government:

It is an obvious and unanimous submission that the State of Gujarat is one of the most

industrialized states in the country. In case of agriculture production and management of

farm produces also, the state is accelerating its pace to maintain its position as a front-

runner in the country. The sector has strong base with highly diversified cropping and

farming community, which is responsive to changes in agricultural technologies and

practices. The state also has other strengths like decent logistical infrastructure like airports,

seaports and extensive road and rail network.

The state appreciates the fact that a large cross-section of people from our society earns

their livelihood from this sector and although it plays a tertiary role in the State’s Gross

Domestic Product, it offers tremendous potential for exploitation. The major crops

produced in the state include rice, wheat, maize, oilseeds, cotton, vegetables and spices. On

horticulture side, Banana, Mango, Sapota and Papaya are being cultivated in abundance. In

fact, Gujarat ranks third in the production of Banana, sixth in the production of Mango,

second in Papaya and Sapota production.

Government has decided that by adopting a holistic approach, the existing agriculture base

of Gujarat would be strengthened using modern techniques and equipment, by upgrading

the existing logistical framework and by ensuring that more and more farm produces make

their way into the processing chain. The Government would also strive to create a world

class supply-chain, to promote infrastructure important for agro-industrial development, to

ensure close interface between research, extension and industry as well as farmers in

agriculture sector, providing assistance to small-scale agro based units to improve their

competitiveness in global markets and increasing exports of value added agriculture

products. This assumes greater importance especially in the light of the fact that

SardarSarovar Narmada Project is nearing completion and that the waters of the Narmada

started flowing in different parts of the state including Kutch through the extensive network

of canals, pipelines and rivers. On completion, the project will irrigate 1.8 million hectares of

land, which would trigger the growth of agriculture sector to usher in a new era

of Prosperity through Green Wealth.

Role of Government

An array of financial and non-financial schemes enunciated in the Gujarat Agro Industrial

Policy 2000, listed as under, would be continued.

Interest subsidy to Agro Industrial units and Agri Infrastructure projects

Assistance for preparation of project report

Assistance for setting up of centre of excellence/specific crop development institute.

Assistance for quality certification and patent registration

Airfreight subsidy

Assistance for research & development

Equity participation in joint sector projects

Land

The State Government will provide government land, including agriculture farms, on long-

term lease basis at concessional rates to agro industries and agri-infrastructure projects

including centres of excellence.

Venture capital fund

Having recognized the need for a venture fund to cater to the needs of prospective

entrepreneurs who have developed or acquired unique technologies in agro & food

processing, horticulture, aquaculture, sericulture, hi-tech agriculture and such other agro-

related projects, the State Government shall create a venture fund for agro-industries in

association with financial institutions/ banks etc.

New policy initiates in processed foodsector in Gujarat

Vision Document-2015 was prepared by the Ministry of Food Processing Industry (MOFPI),

which envisaged trebling the size of investment by efforts of ministry to bring private

players in the processed food sector by increasing the level of processing of perishables

from 6 per cent to 20 per cent, value addition from 20 per cent to 35 per cent. Priority

status has been given to Food Processing sector in the Gujarat Industrial policy 2015.

Ministry of Food Processing Industries has introduced a scheme for human resource

development (HRD) in the food-processing sector. The HRD scheme is being implemented

through State Governments under the National Mission on Food Processing. The scheme

has the following four components:

Creation of infrastructure facilities for degree/diploma courses in food processing

sector

Entrepreneurship Development Programme (EDP)

Food Processing Training centres (FPTC)

Training at recognized institutions at State/National level Anand Agricultural

University, has introduced various Bachelor and Master Programs for food

processing & Technology, to provide skilled human resource to serve the sector

efficiently.

3. STEEPLED Analysis

3.1 Steepled Analysis of Taiwan

3.1.1 SOCIAL

In summary, for about 110 years starting with Koxinga's expedition to Taiwan in 1661,

Taiwan remained an agrarian, immigrant society where the indigenous culture slowly

became marginalized. Taiwan’s social environment laid the ground for the Nationalist

government's continuation of Chinese cultural development and modernization after

retrocession. It was on this foundation that Taiwan's cultural and educational development

took off.

1. A growing Taiwanese population indicates a bigger market for sales of products and

services for potential new businesses including; baby food products, maternity

clothes, heath products, car seats, child care services etc

2. Between 2013 and 2014; there was a declining trend in the total population of

Taiwan reaching a number of 177,220 lives.

3. Overall, total population growth implies a steady and positive increment in the total

population rate.

The National Health Insurance Bureau provides medical care for all workers and

dependents. Firms with five or more employers are required to fund a workers'

compensation program. Unemployment benefits are funded by employers, employees, and

the government.

All enterprises and labor organizations must also furnish welfare funds for workers and

"welfare units," such as cafeterias, nurseries, clinics, and low-rent housing. Fishermen,

farmers, and salt workers have their own welfare funds. Government programs include

relief for mainland refugees, calamity-relief assistance, and direct assistance to children in

needy families.

The law provides equal rights to women, and protects against sex discrimination. Sections of

the legal code that discriminated against women have been eliminated. Now the law

permits married women to retain their maiden names, gives them an equal voice in child

custody disputes, and clarifies their property rights. In the workplace, women tend to

receive lower salaries and less frequent promotion, and are often denied federally

mandated maternity leave. Violence against women, especially domestic abuse, is extremely

widespread. Child abuse is also a serious problem. The Child Welfare Act mandates that any

citizen aware of child abuse or neglect must report it to the authorities. As of 2004, Taiwan

remained a significant transit point for trafficked persons.

Human rights are generally well respected, but some cases of police abuse continue to be

reported.

Social factors: Decreasing Birth Rates

Last 4 years are characterized by a steady birth rate (8.99 births/per 1,000 some economist

believe that a decline in the fertility rate is a function of economic prosperity and will only

come with economic development

3.1.2 Technological Analysis

In the context of market entry, Taiwan has a veritably stable technological infrastructure

that could support the marketing needs of a company. There are over 14 million telephone

lines in use in Taiwan. Similarly, there are over 24 million mobile phone subscribers in the

said region.

With regard to technology development, Taiwan will speed development of biotechnology

as well as develop and encourage efficient agricultural management and technology to help

maintain a balanced ecosystem, all to help boost industrial upgrading.

With regard to international cooperation, we are strengthening technology exchanges with

developed nations and increasing exports of technology to developing nations to promote

agricultural production internationalization and boost cooperation effectiveness.

National Agricultural Information Service

Taiwan has completed work on an integrated agricultural information computer service

which includes all planning, production and marketing information for domestic farming,

forestry, fishing and husbandry industries. It allows rapid access to information and is a fast

channel of communication. The system is divided into five areas, including agriculture

production information, forestry information, fishery information, husbandry and veterinary

information and farmers" assistance information. Each area boasts electronic mail service,

open forums for discussion and ways to send and receive files for farmers to gain access to

free management software. Anyone with a personal computer and communications

software can get the service. The service is one of the basic information services for the

agricultural industry, allowing it to join the information age and break barriers of time and

space to exchange ideas and opinions

Taiwan is ranked among the most innovative countries in the world. According to the global

rankings of IMD and World Economic Forum, it ranks ninth on technological infrastructure

and on scientific infrastructure, and 13th on innovation.

The development of science and technology requires a steady influx (an arrival of something

in great numbers) of resources. The majority of Taiwan’s industries are small- and medium-

sized enterprises, with limited resources for R&D. Industrial research and development has

progressed from improving animal, plant and fish species, to upgrading industrial

production technology, and advancing mechanization. However, faced with limited land and

other resources, these enterprises have, with government guidance, swiftly developed from

traditional industries into capital intensive, high-tech industries.

Examples of Taiwan’s global market share in manufactured ICT products:

Table 15: Taiwan’s global market share in manufactured ICT products

90% Notebook PCs

80% Motherboards

70% PDAs

70% LCD monitors

50% Mobile phones

30% Smart phones

28.1% Agriculture

3.1.3 Economic Analysis

There has been a considerable development in the economic aspect of Taiwan. In

2007, the household income percentage has incurred a lowest of 10%:6.7% and a highest of

10%:41.1%. This means that the common household in Taiwan earns more than enough to

support their daily needs. This is reflected by the 10.78 million who are in the labor force

and 4.27% unemployment rate. This shows that almost all household in the region have

some source of livelihood which similarly translates to the strong purchasing power of the

individual in Taiwan.

Taiwan’s economic performance is greatly dependent on its ability to export goods and

services, which in recent years have amounted to over 70% of GDP. China, the U.S., and

Europe, in that order, are Taiwan’s three most important trading partners. Taiwan’s

economic outlook is rather bleak (not hopeful). China is now Taiwan’s only hope with a

decent growth rate which for the last 20 years averaged 5.2% a year.

The different businesses that fall under the service sector in Taiwan are: finance, insurance,

and real estate; commerce, including wholesale and retail business, food and beverages,

and international trade; social and individual services; transport, storage, and

telecommunications; commercial services, including legal, accounting, civil engineering,

information, advertising, designing, and leasing; governmental services, and miscellaneous

others

3.1.4 Environmental Analysis

The companies that seek to operate in Taiwan are subjected to the major

environmental laws in the region. These include the Air Pollution Control Act, the Water,

Pollution Control Act, and the Waste Disposal Control Act. Infringement of such laws shall

have some punitive effects on the company. However, the government of Taiwan has also

instituted incentive programs for companies that shall be adhere to green productivity

initiatives of the region.

Taiwan’s farmers are among the world’s heaviest users of agricultural chemicals, and this

has further harmed water quality due to run off, as well as soil fertility. Agricultural and

industrial chemicals seeping into the soil have made much of the food grown in Taiwan

unsafe. The proliferation of small factories in rural areas has added to environmental

problems, although large private and state-owned enterprises are the major polluters. Also,

Taiwan has 15 times as many motor vehicles per square kilometer (272) as the United

States; this is the major source of air pollution in the capital city.

Deteriorating environmental quality has led to a public health crisis on the island. Taiwan

still has a high incidence of hepatitis B, and cases of cancer, heart and lung decease, and

birth defects have increased along with pollution.

3.1.5 Political Analysis

The political environment in Taiwan has shifted from being strictly communist under

the control of the Koumintang Party. However, recent developments in the parliament of

Taiwan show a considerable adjustment towards a more democratic system. This is great

news for companies seeking entry in the market as liberalization is slowly taking its place.

Companies seeking to operate in Taiwan needs to establish a legal presence.

Taiwan is part of Republic of China (ROC) and hence it is having democratic parties to

rule the country. Taiwan is having Democratic Progressive Party or DPP [TSAI Ing-wen];

Kuomintang or KMT (Nationalist Party) [MA Ying-jeou]; Non-Partisan Solidarity Union or

NPSU [LIN Pin-kuan]; People First Party or PFP [James Soong]. Debate on Taiwan

independence has become acceptable within the mainstream of domestic politics on

Taiwan; public opinion polls consistently show a substantial majority of Taiwan people

supports maintaining Taiwan's status for the foreseeable future; advocates of Taiwan

independence oppose the stand that the island will eventually unify with mainland China;

advocates of eventual unification predicate their goal on the democratic transformation of

the mainland.

The One-China policy restricts Taiwan from becoming an independent state, but it

doesn’t object Taiwan to conduct economic and cultural exchange with other countries.

3.1.6 Legal Analysis

Basically, entering into business in Taiwan also entails a company to be subjected to

taxation requirements. For companies with a head office that are incorporated outside

Taiwan, their branch office shall be taxed based on the actual corporate income which they

have derived from the local resources. The taxable range in Taiwan for foreign companies is

from 20%-25% of the total local earnings.

Legislative Branch

Judicial Branch

The Power to Interpret

The Power to Adjudicate

Disciplinary Power

The Power of Judicial Administration

The Constitution

3.1.7 Ethical Analysis

The term "Taiwanese" is often used when referring to those Chinese who are natives of the

island as distinct from the two million "mainlanders" who migrated from China after the end

of World War II. Most of the more than 20 million inhabitants of Taiwan are descendants of

earlier immigrants from Fujian and Guangdong (Kwangtung) provinces in South China. They

form several distinct groups. The Hakka are descendants of refugees and exiles from

Guangdong who came to Taiwan before the 19th century; they are farmers and woodsmen

who occupy the frontiers of settlement. The more numerous Fujians are descendants of

peasants from Fujian who migrated to Taiwan in the 18th and 19th centuries; they form the

bulk of the agricultural population.

The aboriginal population is primarily of Indonesian origin. They live mainly in central and

eastern Taiwan. They are mainly divided into nine major tribes, with the Ami, Atayal,

Paiwan, and Bunun accounting for about 88%; the balance is mainly distributed among the

Puyuma, Rukai, Saisiyat, Tsou, and Yami. The language and customs of the aborigines

suggest a close resemblance to the Malays. About 84% of the total population is Taiwanese

and 14% are mainland Chinese. About 2% of the total population are aborigine.

3.1.8 DEMOGRAPHICS OF TAIWAN

Net migration rate

During 2004-2010 Taiwan's migration rate was positive. On average the annual net migration

amounted to 22,000 people during that period, which is equivalent to a rate of 1.0 per 1000

inhabitants per year. In 2015 migration rate: 0.89 migrant(s)/1000 population (2015 est).

Sex ratio

At birth: 1.07male(s)/female, Under 15 years: 1.07 male(s)/female,15-64 years: 1.06

male(s)/female, 25-54 year: 1 male(s)/female, 55-64 year: 0.96 male(s)/female, 65 years and

over: 0.86 male(s)/female, Total population: 0.99 male(s)/female (2015 est).

Fertility rate

The fertility rate of Taiwan is one of the lowest fertility rates ever recorded in the world in

historical times. It reached its lowest level in 2010: 0.90 children per female. In 1980, the

rate was still well above replacement level (2.515), but it dropped to 1.88 in 1985, 1.81 in

1990, 1.78 in 1995, 1.68 in 2000, and 1.12 in 2005.and 2015 in 1.12 children born /woman.

Infant mortality rate

Total: 4.44 deaths/1,000 live births

Male: 4.84 deaths/1,000 live births

Female: 4.01 deaths/1,000 live births (2015 est.)

Life expectancy at birth

Taiwan is ranked 39th in the world for highest life expectancy at birth.

Table: 17Life expectancy in 2015

Gender Life expectancy in 2015

Male 76.85 years

Female 86.85 years

Literacy

Definition of literacy is those aged 15 and over who can read and write.

Table: 18 Literacy Rate

Gender Population

Male 99.6%

Female 96.8%

Total 98.2%

3.2Steepled Analysis of GUJARAT

3.2.1 Social Factors

Gujarat is a flourishing state with cultural diversity. It is vibrant with its true colours of rich

heritage and cultural traditions. Dating back to history with the Harappan civilization, the

state becomes a confluence of many religions – Hinduism, Islam, Jainism and Buddhism. The

Gujarati culture blends in arts, beliefs, customs, traditions, institutions, inventions,

language, technology and values.

As Gujarat stands as ‘Heart of India’, Multiculturalism is traced in Gujarat. Shared cultural

background making people feel to home ground and more comfortable with other people

from their own culture. Culture shock unlike other countries is therefore, a missing point

which makes people more confident and energetic as they stand for a challenge in global

scenario.

Food

Majority of the Gujaratis are Vegetarian. A traditional ‘Gujarati Thali’ consisting of dal

(lentils), roti, rice and vegetables apart from salads, farsan and sweet dish followed by

chaas, forms the morning meal. Evening food consist of ‘bhakri-shak’ or khichdikadhi.

Mainly, the diet of the people of Gujarat consists of cereals, pulses, green vegetables, fruits,

milk, ghee, butter-milk, etc. A variety of Cuisine sub-ordinates like pickles, chutney, papad,

yoghurt, etc serve as fillings on main menu. A variety of dishes are prepared by Gujarati

women who also add spice to kitchen with eateries from other regions like the South Indian

food, Continental, Chinese cuisines, etc.

Work Culture

Majority of the Gujarati thrive as Business persons. However, Gujarat is a leading Industrial

State that ranks its commercial capital and textile city Ahmedabad as 7 th in India. It

possesses highest number of operating airports, the Gujarat cities are connected worldwide.

Many business opportunities see way to development with the Vibrant Gujarat in various

sectors as:

Faith and Beliefs

Gujarat has major multicultural religious faith system with the inception of all-embracing

religious faith ranging from caste to caste. The major religions followed are Hinduism,

Jainism and Buddhism. Groups like Bohras and Moresalaamgarasias, Kutchis who had been

converted to Islam still have eqaunimous way of life of a typical Gujarati. Sunni Muslims are

second largest group, followed By Jains, Parsis of Iranian descent of south Gujarat and

Christians. People of Gujarat are god fearing, friendly and good natured. They live in

harmony and respect each other’s faith and beliefs. Gujaratis are often found to mingle and

enjoy all religious festivals with no caste or creed differences.

3.2.2 Technological Factors

Gujarat has drastically improved in the field of technology. As many Gujarat technology (IT)

company’s has started providing employment to lots of people. It offers a range of IT

services, outsourcing and business solutions. We also offer IT infrastructure services,

business process outsourcing services, engineering and industrial services, global consulting

and asset leveraged solutions. One of India's most respected business conglomerates and

most respected brands. Headquartered in Ahmadabad.

Gujarat Technologies was incorporated in the year 2006. In the year 2006, Gujarat

Technologies started their first international assignment. The company pioneered the global

delivery model for IT services with their first offshore client in 2006. In the year 2008, the

company set up first IT R & D division, the Gujarat Technologies Research Design and

Development Center at Ahmedabad. In the year 2009, the company opened their new

corporate training facility at Ahmedabad. In the year 2010, We started virtualization of

business.

The company saw outsourcing opportunity in E-Commerce and related solutions and set up

its E-Business division with Sixty people. The new company was formulated and named

Gujarat Technologies for providing advanced technology solutions and world-class domain

consulting for the banking and financial services sector. During the year, the company

ventured into a new area for an Indian IT Services Company.

3.2.3 Economic Factor

Gujarat`s population is 60,383,628(2011)

Gujarat is said to be most industrialized state in the entire nation, controlling some of the

largest businesses of India. Manufacturing of textiles, chemicals, electrical engineering,

vegetable oils, soda ash and fertilizers are done here in the state. Being a mineral-rich state,

Gujarat produces 66% of the salt required by the nation and 35% of the chemical

requirement gets fulfilled from the state. Ankleshwar and Khambat are well known for

natural gas and oil production. Rajkot is the hub for engineering manufacturing with

industries for auto engines, auto components, CNC machines, forging and casting parts.

Gujarat is well known for manufacturing and trading gems and jewellery. Surat is well

known for diamond trade. Gujarat is also the main producer of cotton, tobacco, rice,

groundnut, wheat, bajra, jowar, maize gram and thus the economy of the state is mainly

agricultural. Dairying and animal husbandry is also a source of rural economy for the state. It

is also the largest producers of milk in India as well as in Asia, through the Amul milk co-

operative federation. The state is also a major producer of livestock, eggs and wool apart

from oil, soaps and petrol. Tourism is also a fine source of economy for the state. The largest

ship breaking yard of the world is at Bhavnagar, and Reliance petroleum, a part of the

Reliance Industries Ltd. is located at Jamnagar which is the largest grass root refinery in the

world.

Per capita income is the amount of income being earned by a person in a certain region. In

other words, it is defined as the mean income of people in an economic unit such as a city or

a country. It can be calculated by taking measure of all sources of income in aggregate (like

GDP) and dividing it by the total population. The per capita income is often calculated to

measure standard of living in a country. This way it helps to locate the development status

of the nations. However, critics claim that per capita income solely cannot accurately

measure prosperity of a country.

In 2012-13, the per capita income of India was Rs. 5,729 per month at current prices. The

World Bank has ranked India at 120th position out of 164 nations. The annual per capita

income amounted to Rs. 68,747. However, the annual per capita income rose to Rs. 74,920

in 2013-14 showing a growth of 10.4%. Although the per capita income is low, the size of

average household and the consequent household incomes are higher. In 2011, there was

an average of about 4.9 people per household in the country.

There has been some disparity among states over the average income. Bihar, Nagaland,

Jammu & Kashmir, Manipur and Assam are some of the states with the least per capital

income, whereas, some of the states such as Goa, Haryana, Punjab, Maharashtra, Kerala

and Gujarat are ones with a high per capita income.

This disparity is not only about the states. There is also a gap between the urban and the

rural belt of the country in terms of income. Even though less than one-third of the

population live in cities and towns, they contribute more than two-thirds of the GDP of the

country. The increase in urbanization is considered one of the main reasons for this

economic disparity. The government of India is making efforts to bridge a gap between

these different strata of society.

3.2.4 Environmental Factors

Global Warming: Change initiative

The Environment wing of the Department is the apex body in the Gujarat State for

implementation of all the environment related matters to achieve the sustainable

development in the State and introducing the sound environmental management practices.

The Department has four executing agencies viz Gujarat Pollution Control Board, Gujarat

Ecology Commission, Gujarat Institute of Desert Ecology and Gujarat Environmental

Management Institute, for discharging its functions.

Various studies are initiated for Environmental Management and sustainable development

in the State of Gujarat by identifying the critical areas that need special attention for Green

Cover. The Forest and Environment initiatives have been implemented at length as 60% of

Population in Gujarat dwells in rural areas who rely for living on Forest regions. Hence, the

regeneration, maintaining the productivity level and sustainability of the non-forest lands,

particularly the common lands has become imperative for the state for a continuous supply

of rural needs.

Gujarat Forest Department manages a “Social Forestry Programme” for planting trees on

non-forest lands and became a pioneer to improve Green Cover of the state. The objectives

were to increase the number of trees in Gujarat, promoting the participation of people and

institutions to grow trees, make use of unproductive land to productive use apart from

many other areas that called for attention towards sustainable growth.

Managing Climate Change is a major challenge to humanity. To tackle it, Gujarat has

established a separate Department for Climate Change. This Initiative by Gujarat

Government is a trendsetter not only for India but for the whole of Asia as it is the “First in

Asia” with a Department for Climate Change. It is the only 4th State/Province in the World

to have a Department for Climate Change.

Set up in February 2009, the Department is headed by Shri Narendra Modi to handle issues

of Climate Change. The Initiative is to give a human face to environmental issues; empower

people to become active agents of sustainable development; promote an understanding

that communities are pivotal to changing attitudes towards environmental issues; and

advocate partnership, which will ensure all citizens and people in Gujarat to enjoy a safer

and more prosperous future.

The Green Priorities of DCC:

Promote Green Tech

Earn more carbon credits

Power saving

Preserve ground water

Promote CNG network

Increase mangrove cover

Fund research in Green Tech

Preparation of comprehensive multi-dimensional Climate Change Policy of Gujarat

State – Conservation of Land, Water and Air

Cooperation with national and international agencies will be undertaken. Constant

interactions and consultation will be undertaken with National Clean Development

Authority and concerned international agencies under the umbrella of United

Nations.

Coordination with all other departments with respect to Climate Change Educational

curricula on Climate Change will be prepared and introduced.

Universities will undertake R&D on Climate Change along with introduction of new

courses and teachers training modules on Climate Change.

Public Participation and Public Awareness will be developed in this cause in an

extensive way

3.2.5 Political factors

There are 33 districts in the state of Gujarat, with Gandhinagar being the political hub. The

government of Gujarat has a legislative assembly comprising of 182 members out of which

39 seats are reserved for schedule castes and schedule tribes. Like all other Indian states,

the chief minister is the leader of the government as well as the Legislative assembly and

has some exclusive executive powers. The governor, elected by the president of India is the

head of the state and the speaker, elected by the legislative assembly, presides over the

meetings of the Assembly. Post-Independence till the state of Gujarat was separated from

the state of Bombay, Indian National Congress were the undisputed leaders of the

government and politics of the state. It was in the mid 90's assembly polls that the party lost

to BJP, who are still in power in the state. In spite of several political and communal riots in

the state, the BJP government has been able to keep its supremacy over the state for the

past several years.

In order to facilitate the smooth functioning of the state, the Gujarat government has

commissioned a number of ministries and departments. The purpose of these ministries and

departments is to undertake many functions and execute them under the periphery of the

Gujarat government and politics. Gujarat government is known for its consistency

throughout its history. It is a constituent whole of different departments that is maintained

for the sake of the efficient working of the government.

Some of the important departments of the Gujarat Government are:

Governor

Chief Minister

Council of Ministers

MLAs

Collectorate

Secretariat

District Development Officer

Circuit House

Boards and Corporations, etc.

These government departments work unanimously so that stability is maintained in the

working pattern of the government. The Gujarat Governor is the executive and legislative

head of the state and he or she is appointed by the President of India for a term of 5 years.

3.2.6 Legal factors

Investment Regions (IRs)

An Investment Region (IRs) are specifically delineated Industrial Region with a minimum

area of over 200 square kilometers (20,000 hectares), while an Industrial Area (IAs) would

be developed with a minimum area of over 100 square kilometers (10,000 hectares). (In

Gujarat, as per the Ordinance Act, An Investment Region will be developed in an area of

more than 100 sq. kms and an Industrial area will be developed in an area of more than 50

sq. kms.)

24 such nodes - 9 IRs and 15 IAs spanning across Six States have been identified after wide

consultations with the stakeholders i.e. the State Governments and the concerned Central

Ministries. Six Investment Regions and six Industrial Areas would be taken up for

implementation in the 1 Phase during 2008-2012 and rest of the development would be

phased out in the next 4 years.

World class infrastructure facilities would be managed in these regions with Industrial Policy

framed for ‘Global Manufacturing and Trading Hub.’

Investments with more than one Lac Crores and immense opportunities for man power and

service sector.

Moreover, Gujarat Government has implemented ‘Single Window Clearance Act’ with first

of its initiative in the country. This reduces ‘Red Tapism’ and help in delayed permission

procedures. Project proposals can be made online. All necessary permissions can be

obtained under single window, making easier procedures.

3.2.7 Ethical Factors

By 1986-87, the question of democratic rights of the marginalized classes other than trade

union rights had surfaced in a big way, specially the housing issue of the urban poor. Since

such questions fell outside the frame work of the traditional trade-union organizations, the

activists joined together and had formed Jan SangharshManch (JSM) in 1987. Throughout

its journey for the next 25 years, the paramount goal of JSM has been to uphold the

constitutional, democratic and civil rights of the oppressed irrespective of caste, creed or

religion. JSM has been able to save the demolition of thousands of slums in Ahmadabad and

through public interest litigations we have been able to rehabilitate thousands of hutment

dwellers in proper dwellings. We were successfully able to stem the environmental

destruction caused by major industries including Reliance, Essar etc. During the 2001 Kutch

Earthquake, JSM carried out a systematic scientific expedition to pin-point the correct

epicenter of the earthquake that led to the proper rehabilitation of the most affected

people. JSM through the court of law also succeeded in getting the building laws changed to

include earth quake proof designs and also helped the residents of the two major apartment

systems in Ahmadabad that had fully collapsed for their compensation.

2002 was a significant milestone in the history of JSM. The Godhra incident of 27th February

2002 which was followed by the state sponsored violence against the minority starting 28th

February and the continuous persecution of the minorities in every sphere of life including

the planned fake encounters had convinced JSM that the fundamental it’s duty is to expose

and defeat the communal forces in order to protect the rule of law. JSM participated in the

Nanavati Commission appointed by Government of Gujarat and through its cross-

examinations were able to bring out facts about that established that Godhra Train Burning

incident was not a pre-planned terrorist act and complicity of the State Government in the

riots thereafter. JSM also fought against the draconian law POTA (Prevention of Terrorist

ACT) enacted by the NDA Government and was successful in getting it repealed in 2004.

3.2.8 Demographic Factors

As per Official Census, Population of India has reached 1.21 Billion (121 Crore) in 2011 which

is an increase of 17% from the earlier figure of 103 Crore of 2001. Although population

growth rate has decreased but actual population continue to rise. As per estimates, it is

expected that India would be most populous country by 2025 overtaking china. Gujarat

Population Census Data shows that it has Total Population of 6.03 Crore which is

approximately 4.99% of total Indian Population. Literacy rate in Gujarat has seen upward

trend and is 79.31% as per 2011 population census. Of that, male literacy stands at 87.23%

while female literacy is at 70.73%.

Urban Population of the State is 42.6%, which used to be at 37.4% in 2001. Rural population

in the state in 2011 fell to 57.4% from 62.6% in 2001. Ahmedabad is the most populated

District in the State, with 7.20 million people, up 11.94% from 2001, followed by Surat with

6.07 million people, up 10.07%, as per Gujarat’s Directorate of census operations.

Table 19 Demographic of Gujarat

Description 2011 Description 2011

Estimated

Population

6.03 Crore Female 28,901,346

Actual

Population

60,383,628 Sex Ratio 918

Population

Growth

19.17% Percentage of

total

Population

4.99%

Area km2 196,024 Literacy 79.31

Area mi2 75,685 Male Literacy 87.23

Density/km2 308 Female

Literacy

70.73

Density/mi2 798 Total Literate 41,948,677

Male 31,482,282 Male Literate 23,995,500

Female Literate 17,953,177

3.6 Comparative analysis of STEEPLED Analysis

Table No. 20 Comparative STEEPLED Analysis

Factor/Country TAIWAN GUJARAT

Agriculture – products rice, vegetables, fruit,

tea, flowers; pigs,

poultry; fish

Food grains& pulses, cash

crops and oil seeds. Major

food grain crops are Wheat,

Paddy, Bajara, Maize etc. and

Pigeon pea, Gram, Green gram

are the major pulses grown in

the state. Cotton, Castor,

ground nut, Mustard.

Groundnut, sesamum, cotton,

tobacco

(unmanufactured),cumin,

fennel.

Major Industries Semiconductor Industry,

Display And

Optoelectronics,

Biotechnology And

Pharmaceuticals,

Telecommunication,

Materials And Fine

Chemicals, Finance,

Securities And Insurance,

ElectronicComponents,

Energy, Fish And Sea-

Food

Gas & Petroleum

Minerals & Mining

Road Infrastructure

Biotechnology &

Pharmaceuticals

Agro & Food Processing

Chemicals & Petrochemicals

Engineering Industries

Information Technology

DEMOGRAPHIC

POPULATION 23,359,928 (July 2014

est.)

63,891,303(2014 est.)

Labor force - by occupation: Agriculture:5%, Agriculture:39%

industry: 36.2%

Services: 58.8% (2012

est.)

industry:32%Services:29% (2012)

Age

Structure

0-14 years: 14% (male

1,683,381/female

1,575,789)

15-24 years: 13.4% (male

1,613,197/female

1,526,344)

25-54 years: 47.4% (male

5,539,606/female

5,539,654)

55-64 years: 13.2% (male

1,506,657/female

1,571,208)

65 years and over: 12%

(male 1,301,420/female

1,502,672) (2014 est.)

0-14 years: 28.8%

15-59 years: 62.8%

60 and above years: 7.91%

Age not stated: 0.40%(2013)

Literacy rate total population: 96.1% total population:79.8 %

Net migration rate 0.9 migrant(s)/1,000

Populations (2014 est.)

0.03 migrant(s)/1,000

population (2014)

Area Area: total: 35,980 sq km

land: 32,260 sq km

water: 3,720 sq km

note: includes the

Pescadores, Matsu, and

Quemoy islands

total: 75,770sq km

ENVIRONMENTAL

Climate tropical; marine; rainy

season during southwest

monsoon (June to

The climate of Gujarat is moist

in the southern districts and

dry in the northern region. The

August); cloudiness is

persistent and extensive

all year

year can be divided into: the

winter season from November

to February, the hot season

from March to May, the

south-west monsoon season

from June to September and

the intervening month of

October.

Coastline 1,566.3 km 1,600 km

Natural resources small deposits of coal,

natural gas, limestone,

marble, and asbestos

Minerals, marine, agriculture;

as also animal wealth and

human resources.

Natural hazards earthquakes; typhoons

volcanism:Kueishantao

Island (elev. 401 m), east

of Taiwan, is its only

historically active

volcano, although it has

not erupted in centuries

Many of the southern districts

of Gujarat were on flood alert.

Rivers in the Valsad

district were well above the

flood level.

Environment - current

issues

air pollution; water

pollution from industrial

emissions, raw sewage;

contamination of drinking

water supplies; trade in

endangered species; low-

level radioactive waste

disposal

Three factors contribute to

Gujarat's cities being

unhealthy: Inadequate water

and

Sanitation; inadequate solid

waste management; and, high

levels of noise pollution.

Land use arable land: 24%

permanent crops: 1%

other: 75% (2011)

arable land: 48%

permanent crops: 6.37%

other: 45.63% (2011)

Total renewable water

resources

67 cu km (2011) 173 cu km (2011)

POLITICAL

Government

Type

multiparty democracy federal republic

Political

pressure

groups and

leaders

environmental groups

independence movement

various business groups

Bajrang Dal religious organization, Vishwa Hindu Parishad, numerous religious or anticorruption,And environmental groups at state and local level.

LEGAL

Legal system civil law system common law system based on

the English model; separate

personal law codes apply to

Muslims, Christians, and

Hindus; judicial review of

legislative acts

International

laworganizationparticipatio

n

Has not submitted an ICJ

jurisdiction declaration;

non – party state to the

ICCt

NO

ECONOMIC

GDP -

composition by

sector

Agriculture: 2%

industry: 29.4%

Services: 68.6% (2013

est.)

Agriculture: 12.92%

industry: 41.07%

services: 46.1% (2011-2012)

GDP – real

growth rate

2.2% (2013 est.)

1.3% (2012 est.)

4.1% (2011 est.)

14% (2013)

Exports - electronics, flat panels, Caustic soda ,steel sheet,

Commodities machinery; metals;

textiles, plastics,

chemicals; optical,

photographic, measuring,

and medical instruments

sulphuric acid, diamond,

jewellery, agriculture product,

diesel engine, salt, castor oil,

gas cylinders, fertilizer,

cement , clinker, bauxite,

marine products etc.

Imports -

Commodities

electronics, machinery,

crude petroleum,

precision instruments,

organic chemicals, metals

Gold, silver, fertilizer, machinery and equipment, crude oil, chemical metal, pharmaceutical, wood pulp, polycarbonate, iron &steel ,polymer, diamond,jewellery, plastic, rubber, yarn,

copper, coal, limestone, etc.

Taxes and other

Revenues

16.1% of GDP (2013 est.) 2.8% of GDP (2013)

4. SWOT Analysis of the Agriculture and Process Food Sector

4.1 Swot analysis of Agriculture and Process Food Sector in Taiwan

STRENGTH

Division of labor (upstream/downstream) and supply chain are quite complete

Good technique/management/int’l marketing

Good legal infrastructure and labor force

Water

WEAKNESS

Economy policy

Corruption issue

Export concentrations high on ‘China’ and ‘electronics’

Value added are not high

Efficiency of use of energy

resources need to be improved

Lack of cross-sectors

industries human resources

OPPORTUNITIES

Sector opportunities agriculture

Social reforms for the uplitfment of the poor section of society

Growing tourism industry

The signing of Economic Cooperation Framework Agreement (ECFA) helps attract

FDI to Taiwan

Asian emerging markets provide Taiwan excellent opportunity

Demographic trend and living environment are conducive to new product

development

THREATS

Volatile currency

Nationalization

Government regulation

Burgeoning FTAs/RTAs(free trade agreement and regional trading agreement) may

marginalize Taiwan

Increasing competition from ‘Korea’ — technology, brand and market penetration

Some traditional industries need to be upgraded as soon as possible

4.2 Swot analysis of Agriculture and Processed Food in the Gujarat:

Strengths

8 Agro-climatic zones, Wide varieties of soil, More than 40 major crops

Predominance of non-food, high value crops

i.e. cotton, castor, tobacco, isabgul, cumin, fennel, mangogroundnut, banana

Entrepreneurial farmers

Longest sea coastline

Well developed infrastructure

Agro Industries Policy

Well developed Co-operatives

Dominance in milk sector

Good Governance + original initiatives

Relatively strong marketing network

Recent attention to post harvest management

Weakness

70% area depend on rain

(After completion of SardarSarovar Project it will be 49%)

Uneven distribution of rain

I.e. In Kachchh – 400 mm & In South Gujarat -1500 mm

Drought prone area

Arid and semi-arid area

19.61% & 9.46% Respectively share in India

Declining land holding

I.e. The average size of holding has reduced from 4.11 ha in 1970-71 to 2.62 ha in

1995-96 and 2.33 ha in 2000-01. (Provisional)

Saline and water logged area

I.e. 21.80% & 19.62% of total irrigated area respectively

Low technology assimilation capacity in rural areas

High cost of power

Flood / erosion

Opportunities

GM crops, Biotechnology

Horticultural Development

Agri export zone

I.e. Potato, Castor, Isabgul, Fruits. Datepalm, Duram wheat etc Organic farming:

Special Zone, Market for organic product

Agro processing Industries

i.e. Cotton, Oilseed, Tomato, Cumin, Isabgul, Castor, Papaya, Fruits & Vegetables

Export potentiality

i.e. Cotton, Cumin, Onion, Garlic, Castor, Isabgul, Mango, Other fruits &vegetables ,

Flowers, Duram wheat, Processed maize etc

Corporate and contract farming

Investment in Agriculture Sector :-Private Market, Terminal Market, E-market

IT network

Public – Private Partnership, NGOs work

Use of solar energy in agriculture, Benefit of natural resource

Threats

Inadequate and erratic nature of rainfall

Frequent draught

Soil erosion, Depletion of Water Table, Salinity ingress / Sea Water Ingress

Market fluctuation

Inadequate processing facilities

5. Andhra Pradesh

5.1. Introduction- An overview

AndhraPradeshwasformedon1stNovember,1956undertheStates'reorganizationscheme.It

isthefifthlargestStatewithanareaof2, 76,754sq.km,accounting for8.4%ofIndia'sterritory.

TheStatehas the longestcoastline (972 km) amongallthe States inIndia. Andhra Pradesh has

always been the seat for mini ancient dynasties which is why it is called as the state of rich

heritage, beautiful temples and culture. Andhra is often referred to as the food bowl of the

south. Apart from its ancient history, the state has always been in light for its diverse and

amazing landscapes.

Table 21 Fact on Andhra Pradesh

Facts on Andhra Pradesh

Date of FormationNov 1, 1956(Organised for 1st time) June 2, 2014 (Re-

organised for 2nd time)

Area 1,60,200 km sq

Population 84,665,533

Males Population 42,509,881

Females Population 42,155,652

No. of District 13

CapitalHyderabad (Vijayawada Region is the proposed capital

of Andhra Pradesh)

Languages Telugu, Urdu, Hindi, English, Kannada Oriya and Tamil.

Net State Domestic Product

(2015)62912

Literacy Rate (2015) 67.66 %

Females per 1000 males 996

Description 2015

Population 84,665,533

PopulationGrowth 11.10

PopulationDensity/sq.km 308

Male 42,509,881

Female 42,155,652

Sex Ratio 992

PercentageoftotalPopulation 7.00%

Literacy 67.66%

Male Literacy 75.56%

Female Literacy 59.74%

Total Literate 51,438,510

Male Literate 28,759,782

Female Literate 22,678,728

Table 22 Administrative set up

GDP: $100.350 billion (2015)

GDP per capita: $1,077

Districts 23

RevenueDivisions 81

Mandals 1128

Inhabited Villages 26613

Un-inhabited Villages 1510

Towns 210

Andhra Pradesh, India's fourth largest state gets much of its revenues from the services

sector. The state banks on two major sectors - Information technology and biotechnology.

Agriculture also contributes substantially to the state's economy. Andhra Pradesh ranks

second in India in terms of mineral wealth.

Economic Profile

Andhra Pradeshis one of the more highly populated states in India mainly due to the

developmentanditslocationneartheseacoast.Thecensusovertheyearshasseenthestate

growby steadily intermsofpopulation.Locatedinthesouthernregionofthecountry,thestate

sharesitsborderswithstateslikeTamilNadu,OrissaandKarnataka.Thecapitalofthestateis

thevibrantcity of HyderabadthathasseentheruleoftheNizamsforavery longtime.Andhra

Pradeshhasbeenoneoftheoldeststatesinthecountryandfindsmentionsinmanyancient

worksofliterature.Thestatehasapopulation ofabout84millionaccording totheAndhra

PradeshCensus2011.ThegrowthrateofthepopulationofAndhraPradeshisabout11%which is

below thenationalaverage.

Language

Telugu is the official language of Andhra Pradesh which was known as 'Tenugu' in the past.

Urdu is the second widely spoken and hence the co-official language of Andhra. English,

Hindi, Banjara are few of the other main languages spoken in the state. Telugu is ranked as

the 15th widely spoken language in the world and ranks second after Hindi in India.

Influenced by the Sanskrit language, it has been declared as the classical language. Tamil,

Oriya and Kannada are also spoken in some parts of the state

Religions

Table 23: Religions in Andhra Pradesh

Religion in Andhra Pradesh

ReligionPercen

t

Hindus 88.5%

Muslims 9.6%

Christians 1.3%

Jains 0.1%

Others 0.5%

Ethnic groups

Once the dwelling ground of Chalukyas and mughal rulers, Andhra Pradesh is inhabited by a

large number of people who speak different languages, follow different religion and yet live

harmoniously with each other for many centuries. Divided into various castes, the People of

the state fall under two major categories - those who live on the banks of Krishna and

Godavari and those who live in the hilly and forest areas of the place.

Transport

The bus service in the state is managed by the Andhra Pradesh State Road Transport

Corporation which operates thousands of buses all over the state. The sbuses ply in

different parts of the state including villages as there is a huge network of roads which offer

feasibility and connectivity to different parts of the state. A wide railway network which

offers several express and passenger trains connects the state with almost every part of the

country. The airports in the state provide airlines services to domestic as well as

international destinations. The government is planning to set up more airports in the state

so as to improve connectivity. There are also some seaports in the state which are useful for

trade and commerce.

Natural resources

Andhra Pradesh, the pivot of industrial prosperity in South India, welcomes you to its

resourceful land of minerals which includes coal, oil & natural gas, bauxite, limestone, gold,

diamonds and more. A host of infrastructure facilities are offered by the State that include

industrial development areas, industrial estates, growth centres and special complexes like

a chemical complex, plastic complex, leather complex and a software technology park.

According to the 2011 census, the Andhra Pradesh state's population (before the state's

bifurcation) was around 88.5% Hindu with a Muslim minority of 9.6% along with smaller

numbers of Christians, Jains, Sikhs, and Buddhists.

INDUSTRIES IN ANDHRAPRADESH

Automobile and Auto Components Industry

There are more than 20 auto component manufacturing companies in the state,

manufacturing components such as grey-iron castings, precision aluminium castings, leaf

springs, oils and lubricants, diesel fuel injection equipment, electronics and auto electronics

and auto electrical, front axles, gears, forging, machined components, pressed metal

components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators,

electronic regulators, high pressure die castings, clutch covers, fuel filters ,etc. The ideal

places to locate companies in the Auto Sector are the Hyderabad-Zaheerabad,

Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu andVijayawada-Guntur

corridors.

Bulk Drugs and Pharmaceuticals

Andhra Pradesh is well-known internationally for its skills in chemical synthesis and process

engineering and its speed to market. The state is also poised for major strides in basic

research. The State intends capitalizing on these strengths, acting quickly in the window of

opportunity provided by regulatory change, to build a strong, globally competitive

pharmaceutical industry. The growth of pharmaceutical industry in the country due to

availability of trained and skilled manpower, research and development facilities ( Indian

Institute of Chemical Technology (IICT) and Center for Cellular and Molecular Biology

(CCMB), National Institute of Nutrition (NIN) .

Horticulture

Andhra Pradesh is one of the top most states in the country in the production

of horticulture crops. It is due to its varied climatic conditions, such as tropical, sub-tropical

and warm temperate zones. In 1999-2000, the area of cultivation of horticulture crop was

126 million hectares with a production of 5.18 million tonnes. The state ranks first in

production of mangoes (2.38 million tonnes) production and in production of citrus fruits

(1.17 million tonnes.). The value of processed fruits exports is Rs.240 million (US $ 4.8

million). The major destinations are: Malaysia, Singapore, Middle East, Netherlands, UK and

Germany.

Poultry Farming

Poultry farming in the state is most dynamic and fastest growing sector. The present egg

production in the state is 12,000 million eggs per annum and 100 million broilers are

produced in 2,700 layer &4,000 broiler farms. An average of 35 million eggs is produced per

day in the state. The growth rate in the layer and broiler production is 5% and 10%

respectively per annum. The estimates indicate that the layers may increase to 63 million

and broiler to 130 million and egg production may increase to 15,300 million by 2005. About

200 million eggs are exported during the last year from the country and out of them 60

million eggs are from the state. 12 million broiler hatching eggs were exported to Gulf from

Andhra Pradesh out of total export of 21 million eggs from India. About 108 containers (with

individual capacity of 410 thousand eggs ) were exported to Dubai, Muscat and Kuwait

during 1998-99 with a value worth Rs.80 million (US $ 1.6 million). The states is having good

potential for setting up of processing units, packing and grading units for eggs and cold chain

developments for preservation.

Spices

The state is the leading producer of some of the spices such as chillies, turmeric, tamarind,

ginger, coriander, etc. The state ranks first in the country in chillies and turmeric production

and ranks second in coriander production. In 1999-2000, the production of chillies in the

state was 440 thousand tonnes and turmeric production was 228 thousand tonnes. 70%

chillies are sold as dried red chillies and 30% is processed into chilly powder. There are 58

leading units in processing and production of chilly powder.

Exports of chillies in 1997-98 were Rs.161 million (US $ 3.2 million). The exports

of turmeric during 1997-98 was Rs.3.5 million (US $ 70,000) The exports of tamarind was

Rs.131 million (US $ 2.62 million) during 1997-98.

Mines and Minerals

Andhra Pradesh is the second largest store house of Mineral Resources in India. The State

has identified the Mining Sector as one of the growth engines for the overall development

of industry and infrastructure. A total of 48 minerals are found in the State including vast

unexplored resources of Coal, Limestone, Oil and Natural Gas, Manganese, Asbestos, Iron

Ore, Ball Clay, Fire Clay, Gold Diamonds, Graphite, Dolomite, Quartz, Tungsten, Steatitic,

Feldspar, Silica Sand etc

Textiles and Apparels

Andhra Pradesh has been producing good quality cotton with a comparatively higher output

per hectare in India. The average production of medium and superior long staple cotton has

crossed 2.6 million bales. With cotton in abundance, Textile Industry in the State is

flourishing.There are around 70 Cotton Spinning Mills in the State with a total spindlage of

18.30 million and 9 open end spinning mills with 5716 rotars. There is scope for a lot

spinning mills with State-of-the-art technology machines having minimum 25000 spindles.

IT Industry

Andhra Pradesh has a tremendous growth in IT industry. There is abundant

availability of highly skilled IT manpower, pleasant climate, good technical and social

infrastructure, and a pro-active Government. Companies like Microsoft, IBM, Motorola,

Oracle, Baan and Wipro have set up their operations in Hyderabad. Local entrepreneurs

have also set up several start-up companies. Not only have they achieved high growth rates

but a few have even become global.

5.2 Overview of Agriculture and Process Food in Andhra Pradesh

Agriculture has been the chief source of income and main occupation for the state with 60%

of population engaged in agriculture and related activities. Rice is the major food

crop and staple food of the state. Other important crops are sugarcane, cotton, mango,

tobacco, Maize, pulses etc. Four important rivers of India, the Godavari, Krishna, Penna,

and Tungabhadra flow through the state, providing irrigation. Recently, crops used

for vegetable oil production such as sunflower and peanuts have gained favour. There are

many multi-state irrigation projects in development, including Godavari River Basin

Irrigation Projects and NagarjunaSagar Dam.

Andhra Pradesh was among the very few states in the country which went in for the Green

Revolution in rice cultivation in the 1970s. Average per capita agricultural income in the

state was 54.599 billion (US$820 million) at constant prices (2012–13).

https://en.wikipedia.org/wiki/File:Paddy_Fields_at_Swayambhuvaram.jpg

Contribution of agriculture and Processed Food industry in national GDP

The GSDP at constant (2004-05) prices for the year 2013-14 (Provisional Estimates) is

estimated at Rs.2, 50,282 crore as against Rs.2, 35,930 crore for 2012-13 (First Revised

Estimates) indicating a growth of 6.08%.

Table 24Contribution of agriculture and Processed Food industry in national GDP

Taiwan National GDP (2014)

Agriculture 6.94%

Industry 2.16%

Service 7.25%

Chart 5 Contribution of agriculture and Processed Food industry in national GDP

AgricultureIndustryService

6.94%

2.16%

7.25%

The corresponding sectoral growth rates are 6.94% in Agriculture sector, 2.16% in Industry

sector and 7.25% in the Services sector. The GSDP at Current Prices for the year 2013-14

(Provisional Estimates) is estimated at Rs.4,75,859 crore as against Rs.4,19,391crore for

2012-13 (First Revised Estimate). The contribution from the Agriculture sector is Rs.1,

31,019 crore, from the Industry sector is Rs.1, 03,733 crore while it is Rs.2, 41,107 crore

from the service sector to the GSDP at current prices.

Trade relationship between AP and Taiwan

The Andhra Pradesh government is promoting a 75 kilometre stretch between

Krishnapatnam and Tada on the national highway (NH V) as a manufacturing industry region

(MIR). This road stretch has natural advantages with easy access to Chennai International

Airport and three seaports – Krishnapatnam, Chennai and Ennore. The Andhra Pradesh

government has also decided to offer all the incentives on par with the Tamil Nadu

government.

The Taiwan industry together with Taiwan government reported to have approached the

Andhra Pradesh government for an allotment of 2,500 acres of land to start a multi product

SEZ of electronics and engineering industries on the national highway of Krishnapatnam-

Tada, close to Chennai. The investment is estimated to be around US$ 6.3 billion with a

potential of creating 10,000 jobs; but no final decision on the proposal seems to have taken

place so far.

Around 80 Taiwanese companies have invested in India totalling over $800 million. We

realised that because of the distance and difference in cultural background, it is taking some

time for Indian business going to Taiwan and our business coming to India. First we have to

overcome the cultural barriers between us. We now know each other better and better. I

am sure more INVESTMENT will follow. In fact, recently China Synthetic Rubber said it is

investing around $330 million in a new plant in Andhra Pradesh. China Steel has approved a

$180-million INVESTMENT project in India. Things are looking good.


opportunities for bilateral TRADE between Andhra Pradesh and Taiwan.

Addressing the members of the Federation of Andhra Pradesh Chambers of Commerce and

Industry (FAPCCI), he said Taiwan produced some of the best machine tools and parts in the

world.

Major players of agriculture and Processed Food industry in Andhra Pradesh

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Warangal

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Hyderabad

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Mahabubnagar

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Khammam

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Chittoor

Andhra Pradesh Dairy Development Cooperative Federation Ltd. - Krishna District

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Nizamabad

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Medak

Andhra Pradesh Dairy Development Cooperative Federation Ltd. – Karimnagar

Andhra Pradesh Dairy Development Cooperative Federation Ltd. –Eluru

Assem Dairy & Milk Products Ltd

Balamurugan Dairy Products Chitturi Agro & Milk

Creamline Dairy Products Limited

Cream rich Milk Products Pvt. Ltd.

Balaji Milk Foods Pvt. Ltd.

Dodla Dairy Limited

Dolphin Milk Products (P) Ltd.

Durga Dairy Ltd.

Fantasy Foods Pvt. Ltd.

Glaxo Smithkline Consumer Health Care Ltd.

Gosai Dairy Products

Guntur District Milk producers’ Mutually Aided Coop Union Ltd.

Jyothi Dairy Private Limited

Karimnagar Dist Milk Producers’ Mutually Aided Coop Union Ltd.

Krishna dist Milk Producers’ Mutually Aided Coop Union Ltd.

Lotus Chocolate Company Ltd

Masqati Dairy Products Pvt. Ltd.

Model Dairy Pvt. Ltd.

Mulukanoor Women’s Coop Dairy Nakoda Dairy Pvt. Ltd.

Nutrine Confectionery Co Ltd.

Benefits given by the government

Land Conversion charges

If conversion of land for setting up Food Processing unit is permitted by the relevant

government authority, GoAP will reimburse the Non-Agriculture Land Assessment (NALA)

tax as applicable.

Capital subsidy

For establishment of new food processing units, GoAP will provide capital subsidy to an

extent of 25% of project cost (includes plant & machinery, technical civil works), limited to

5crore. For technology up-gradation/modernization of existing food processing units, GoAP

will provide capital subsidy to an extent of 25% of new/upgraded equipment cost, limited to

1 crore. GoAP will provide capital subsidy of 50% for setting up Primary Processing Centers

(PPCs) and Primary Collection Centers (PCCs) limited to 2.50 crore.

GoAP will provide capital subsidy of 35% for setting up of cold chain for agriculture /

horticulture /dairy /meat produce, up to a maximum of 5 crore. Food Processing units are

eligible to avail capital subsidy from GoAP under this Policy, only if capital subsidy has not

been claimed under any relevant Government of India scheme. Such units should start

commercial production within 12 months for MSMEs, and within 24 months for large &

mega units from the date of issue of sanction/approval letter to avail this incentive.

Interest subsidy

For food processing units and cold chain infrastructure, GoAP will offer interest subsidy of

7% per annum on the term loan taken for fixed capital investment, for a period of 5 years

from the commencement of operations, with a maximum limit of 2 crore. For Primary

Processing Centers (PPCs) and Primary Collection Centers (PCCs), GoAP will offer interest

subsidy of 7% per annum on term loan taken for fixed capital investment, for a period of 5

years from the commencement of operations, with a maximum limit of 1 crore.

Tax incentives -VAT/CST/SGST

For micro & small enterprises, 100%of net VAT/CST/SGST will be reimbursed for a period of

5 years from the date of commencement of commercial production For medium industries,

75% of net VAT/CST/SGST will be reimbursed for a period of 7 years from the date of

commencement of commercial production or up to realization of 100% fixed capital

investment, whichever is earlier. For large Industry unit, 50% of net VAT/CST or SGST will be

reimbursed for a period of 7 years from the date of commencement of commercial

production or up to realization of 100% fixed capital investment, whichever is earlier.

Stamp Duty

100% reimbursement of stamp duty and transfer duty paid by the industry on purchase or

lease of land meant for industrial use. 100% reimbursement of stamp duty for lease of

land/shed/buildings, mortgages and hypothecations. All the reimbursements shall be

processed within 6 months.

APMC cess/fees

GoAP will provide 100% exemption of APMC cess/ fees for a maximum period of 10 years in

respect of procurement of agriculture / horticulture produce directly from farmers. This will

be applicable to both new and existing Food Processing Units.

Marketing Assistance

GoAP will reimburse 50% of cost of participation to maximum of 10 MSME units per year for

participating in international food processing related trade fairs, with a ceiling of ₹5 lakh per

unit per annum. GoAP will reimburse 75% of the space rent with a ceiling of 2 lakh per year

for maximum of 10 MSME units for setting up stalls to extend their business interests in

national/international exhibitions and conferences.

Quality certification/Patent registration

GoAP, through Food Processing associations and District Industry Centers (DIC) will

disseminate information regarding good manufacturing and hygiene practices, regulatory

requirements etc. GoAP shall reimburse 50% of the cost of certifications such as HACCP,

GMP, ISO 9000, ISO 22000, GLP and TQM for food processing units, up to a limit of 5lakh per

unit. GoAP will reimburse expenditure incurred in obtaining patents to the extent of 10lakh

per patent.

Transportation

GoAP will provide 50% subsidy for the purchase of reefer vehicles to food processing units

up to a maximum limit of 10 lakh.

Export Incentives

GoAP will reimburse 30% of road transport charges till inland container depot (ICD)/port for

export of perishable goods by food processing units with a ceiling of 5lakh per annum per

unit for a period of 3 years from the date of commercial production.

5.3 SWOT analysis of agriculture and Processed Food sector in Andhrapradesh

Strengths

Agro climatic conditions, vertical support from government of India organizations viz.,

NSC/SFCI, ICAR and SAU s, support from department of agriculture, forecasting demand

and planning, feedback from seed officers/ dealers/ farmers, organization production/

multiplication, support of shareholders and farmers organization, better extension

service, low rejection rate, good coordination from seed certification agency and quality

control officials, cooperation of processing staff/labor to the farmers, quality control lab,

timely payment of compensation, high acceptance of APSSDC(Andhra Pradesh State

Seeds Development Corporation) varieties by the farmers.

Weaknesses

Lack of government of India policy to encourage the PACS(Primary Agricultural Credit

Societies) to organize seed production activity, lack of research and development, heavy

workload to the staff, fluctuation in power supply, insufficient logistics storage,

transport, warehousing, distance of processing plant, delay in packing of certified seed

lots because of delay in the results of quality control, compensation rates based on the

market prices prevailing at the time of agreement, lack of support to the dealers from

banks, cumbersome reporting documentation work, management information system

and computer usage, lack of computer application knowledge to the staff.

Opportunities

Support from the government of India, seasonal coordination meetings, status report,

staff of the organization - knowledge updating training, involvement of PACS(Primary

Agricultural Credit Societies)for seed production, opportunity to expand seed production

in new potential areas, adopting staggered sowing, plan to replace old condemned

machinery, plan to construct new processing plants to decentralize the processing,

strengthening the quality control lab, compensation based on purity percent, opening of

more sales counters, production of vegetable seeds.

Threats

Frequent changes in the policies, withdrawal of subsidy on seeds, quality monitoring-

threat of rejection due to isolation, threat of damage to seed due to improper storing,

black marketing by suppliers during shortage of a popular variety.

FINDINGS

Taiwan’s economic growth will be led by firmer external demand. However, the

medium-term economic outlook remains uncertain due to diminished public support

for deeper market integration with mainland China.

In Taiwan Gross domestic product (GDP) is expected at 3.5% for 2015 and is

forecasted to be in the 3.5-4.0% range in the near term.

Now days Taiwan faces many economic issues as other developed economies.With

the prospect of continued relocation of labor-intensive industries to economies with

cheaper work forces, such as in China and Vietnam.

Taiwan’s relationship with Mainland China continues to lie at the forefront of

domestic politics. The president has signed 21 agreements with China, including the

free trade act in 2010.

Taiwan will work to improve the agricultural management environment, develop

indigenous, high value added, and low environmental cost products, and also boost

product competitiveness.

Taiwan has completed work on an integrated agricultural information computer

service which includes all planning, production and marketing information for

domestic farming, forestry, fishing and usbandry industries.

Contribution of industries in national GDP, agriculture industry iscontribute 1.90 %,

industry contribute 34.10%, and service contribute 64.10% in Taiwan economy as

per year 2014.

Exports in Taiwan increased to 758471 TWD Million in August from 728548 TWD

Million & Import increased to 630820 TWD Million in August from 616632 TWD

Million in July of 2015.

Taiwan’s economy will strengthen in 2014. Real Gross Domestic Product (GDP) is

expected to grow by 3.2% in 2014 up from 1.6% in 2013

In 2012 the U.S. had a 28.7% market share in the Taiwan agricultural market.

Taiwan's densely populated consumer market is becoming increasingly attractive to

U.S. exporters.

Rice is Taiwan's traditional crop with an annual production of about 1.2 million tons

of rice from two main harvests on about 150 000 hectares of land.

Due to climate diversity, a variety of fruits and vegetables are also grown in Taiwan. .

In 2012, 2.7 million tonnes of fruit and 2.7 million tonnes of vegetables were

harvested and the export value of which totalled US$177.9 million (HK$1.4 billion)

and US$167.1 million (HK$1.3 billion) respectively.

Taiwan's modernized livestock farming industry has grown steadily in recent years.

Taiwan's fishery industry has shifted from small-scale coastal fisheries to aquaculture

and deep-sea fisheries.

Taiwan’s food processing industry is facing vigorous competition in a more open

environment, and Taiwan’s foreign investments in food processing have grown

tremendously in recent years.

Best prospects for U.S. exporters in the Taiwan market include grape wine, fresh

fruit, cheeses, pork, tree nuts, poultry, beef and seafood.

Gujarat has diversified cropping pattern include the food grains& pulses, cash crops

and oil seeds. Major food grain crops are Wheat, Paddy, Bajara, Maize etc. and

Pigeon pea, Gram, Green gram are the major pulses grown in the state.

In Gujarat Average agriculture growth rate of the state is 10.8%.

Food processing sector of Gujarat is growing very fast and still there is immense

untapped potential for the sector in Gujarat.

Despite the absence of formal diplomatic relations, cordial and substantive relations

between India and Taiwan are not only continuously growing but are being further

substantially strengthened.

The synergy and complementarity of both countries – India’s software and Taiwan’s

hardware – can help India and Taiwan create mutual benefit.

India and Taiwan are estimated to double bilateral trade to US$10 billion by 2015

through food processing.

Taiwan is looking for partnerships with India in various sectors, including electronics,

renewable energy, medical devices and automobiles to expand bilateral TRADE

volume.

Taiwanese firms are interested in establishing clusters and SEZ in Gujarat.

Taiwanese companies plan to invest close to $420 billion (USD) in the next 4-5 years

in India.

Taiwan Association of Machinery Industry (TAMI) Director John Chen said there were

plenty opportunities for bilateral TRADE between Andhra Pradesh and Taiwan.

agriculture has acquired 18 percent of India's GDP.

Balaji group has pioneered the concept of potato wafers manufacturing by focusing

on customer teste and requirement. The company has almost 90% market share

Gujarat’s wafers market and 70% of market share of state’s namkeen (snacks)

market.

In Gujarat There is excise duty of 16% in the form of CENVAT levied on food products

and then there is sales tax, octroi, mandi samiti, entry tax and customs duty on

material, levied by the Central/State/Local bodies. The net effect ranges from 21% to

30% on various food items.

The Gujarat State Government will provide government land, including agriculture

farms, on long-term lease basis at concessional rates to agro industries and agri-

infrastructure projects including centres of excellence.

A growing Taiwanese population indicates a bigger market for sales of products and

services for potential new businesses including; baby food products, maternity

clothes, heath products, car seats, child care services etc.

With regard to technology development, Taiwan will speed development of

biotechnology as well as develop and encourage efficient agricultural management

and technology to help maintain a balanced ecosystem, all to help boost industrial

upgrading.

Taiwan’s economic performance is greatly dependent on its ability to export goods and

services, which in recent years have amounted to over 70% of GDP.

Taiwan has also instituted incentive programs for companies that shall be adhere to

green productivity initiatives of the region.

India Introduce a new Additional Central Assistance scheme to incentivise States

to draw up plans for their agriculture sector more comprehensively, taking agro-

climatic conditions, natural resource issues and technology into account, and

integrating livestock, poultry and fisheries more fully.

The challenges to food processing are socio economic environment, subsistence

agriculture, fragmented value chains and lack of infrastructure for post harvest

management and processing. Some issues are country specific: role of federal and

state government, policies regarding marketing of agriculture produce, and food

safety regulations in india

The demographic trend and lifestyle patterns, of the society that a retailer intends to

serve, decide the retailer’s strategy. Traditionally, children seldom accompanied

their parents while grocery food shopping in india

In india Advancement in food technology can play an important role in not only

harmonizing quality norms, but also by developing good manufacturing practices,

including 106conformity to traceability norms hazard analysis at critical control

points (HACCP).

Majority of the Gujarati thrive as Business persons. However, Gujarat is a leading

Industrial State that ranks its commercial capital and textile city Ahmedabad as 7 th in

India.

Various studies are initiated for Environmental Management and sustainable development

in the State of Gujarat by identifying the critical areas that need special attention for Green

Cover.

Division of labor (upstream/downstream) and supply chain are quite complete in

Taiwan for agriculture industry.

Economy policy is weaker for agriculture and food industry in Taiwan.

Demographic trend and living environment are conducive to new product

development in Taiwan.

Strength is for Indian agriculture is famous for its rich bio-diversity.

Agriculture in india is not technically developed.

The opportunities in indian agriculture industry is to Expand operations to include

planting and harvesting.

The threat of indian agriculture industry is Low productivity.

8 Agro-climatic zones, Wide varieties of soil, More than 40 major crops in Gujarat.

Low technology assimilation capacity in rural areas in Gujarat.

Agriculture has been the chief source of income and main occupation for the Andhra

Pradesh with 60% of population engaged in agriculture and related activities.

Andhra Pradesh is the largest producer of shrimp in the country, with 70% of the

production from the state itself.

Food grain production was 104.96 Lakh tonnes in 2012-13. Cereals and Millets

contribute to the food grain production (83.21%) followed by pulses (10.79%) in

Andhra Pradesh.

AP is a leading producer of marine food products, besides the major producer of

inland fish and prawn the livestock sector contributes 7.06% to GSDP, as per the

Provisional estimates for 2013-14.

A.P ranks 1st in Micro irrigation system and has so far covered an area of 5.63 lakh

hactor with 4.96 lakh farmers by the end of 2013-14

The Fisheries sector contributes 3.63 % to the GSDP 2013-14 in Andhra Pradesh.

The income accrued from forestry sector in the State was Rs. 41.19 crore in 2010-11,

Rs.52.07 crore in 2011-12, Rs.53.72 crore in 2012-13 and Rs.57.33 crore in 2013-14

in Andhra Pradesh.

The contribution from the Agriculture sector is Rs.1, 31,019 crore, from the Industry

sector is Rs.1, 03,733 crore while it is Rs.2, 41,107 crore from the service sector to

the GSDP at current prices in Andhra Pradesh.

Benefits given by the Andhra government in agriculture and food processing sector

in AP such as Land Conversion charges, Capital subsidy, Interest subsidy, Tax

incentives -VAT/CST/SGST, Stamp Duty, APMC cess/fees, Quality certification/Patent

registration, Transportation Export Incentives.

Agro climatic conditions, vertical support from government of India organizations

viz., NSC/SFCI, ICAR and SAU s, support from department of agriculture in AP.

Lack of government of India policy to encourage the PACS(Primary Agricultural Credit

Societies) to organize seed production activity, lack of research and development in

AP.

For seed production, opportunity to expand seed production in new potential areas,

adopting staggered sowing, plan to replace old condemned machinery, plan to

construct new processing plants to decentralize the processing in AP.

Frequent changes in the policies, withdrawal of subsidy on seeds, quality monitoring-

threat of rejection due to isolation, threat of damage to seed due to improper

storing, black marketing by suppliers during shortage of a popular variety.

Taiwan Gujarat Andhrapradesh

Agriculture –

products

rice, vegetables,

fruit, tea,

flowers; pigs,

poultry; fish

Food grains& pulses,

cash crops and oil seeds.

Major food grain crops

are Wheat, Paddy,

Bajara, Maize etc. and

Pigeon pea, Gram, Green

gram are the major

pulses grown in the

state. Cotton, Castor,

ground nut, Mustard.

Groundnut, sesamum,

cotton, tobacco

(unmanufactured),cumin,

fennel.

Rice,wheat,juwar,Bajara,

Maize, minor millet,

Coarse gain

BUSSINESS OPPORTUNITIESTAIWAN AND INDIA

Food processing and Agro

products:

With Taiwan’s strong food

processing machinery and

expertise, India

candevelop its food

GUJARAT AND TAIWAN

A multi-sector business

delegation from the island

nation of Taiwan will be

visiting Gujarat recently to

explore TRADE ties and

will look at import

ANDHRA PRADESH AND

TAIWAN

Taiwan Association of

Machinery Industry (TAMI)

Director John Chen said

there were plenty

opportunities for bilateral

TRADE between Andhra

processing industry and

would be able to have

greater share of exports in

this sector including third

country exports.

Taiwan can become the

catalyzing agent that can

help India feed the world.

Taiwanese retailing model

is suitable for India’s vast

rural areas.

opportunities from

Gujarat.

A semi-governmental

TRADE promotion body

called TAITRA (Taiwan

External Trade

Development Council) will

bring around 24 Taiwanese

firms to Gujarat to explore

trade ties.

Taiwanese firms are

interested in establishing

clusters and SEZ(Special

Economic zone) in Gujarat.

Gujarat invites Taiwan to

build industrial park.

Taiwan, MAIT plan

electronic clusters in

Gujarat

The Taiwan-based Institute

of Information Technology

and

Manufacturers'Association

Pradesh and Taiwan.

Addressing the members

of the Federation of

Andhra Pradesh Chambers

of Commerce and Industry

(FAPCCI), he said Taiwan

produced some of the best

machine tools and parts in

the world.

for Information

Technology (MAIT) are

planning to set up

electronic clusters at

Gujarat Vittal Innovation

City, a special economic

zone to come up near

Valsad in Gujarat.

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