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42
India-EU: Creating Market Alliances
Opportunity
Long Term:
Trend building to move towards 100% reuse
and recycle; however the scale is currently
limited and is expected to grow in the next
2-3 years
Agricultural sector consumes ~85%
freshwater; however availability of the same
a key challenge owning to rapid
industrialisation and urbanisation
‣ Thus government promoting need for
water treatment at rural sites
Demand for sophisticated technology is
increasing @ 17% yoy
Medium Term:
~62% of untreated wastewater presents
immense opportunities
Financial assistance available from trade
promotion bodies and local embassy
Threat
High:
Highly bureaucratic and slow procedures
with multiple levels hamper speed of market
entry and business operations
Cost driven tender mechanism, discourages
expensive EU technology
‣ Projects approved at lowest bidder level
Indian and Chinese solutions are popular as
overall costs are less as compared to EU
average
‣ Cost of production in China is extremely
low
Medium:
Weak IPR implementation resulting in
corporate malpractices
Inadequate wastewater treatment
infrastructure creates functional bottlenecks
Short Term:
Incentives offered by government e.g. Tax
Holidays, FDI, other subsidies
Low
Fragile legal and regulatory environment
hampers operations
High tariffs and corporate taxes (32%) put
pressure on operating margins of companies
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