MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

NATIONAL TECHNICAL UNIVERSITY OF UKRAINE

"Kiev Polytechnic Institute named Igor Sikorsky"
Department of Management and Marketing
Department of International Economics

ABSTRACT
on the topic:
"The state and prospects of trade and economic relations:
Ukraine and India "

Work completed by:

student group UC-81
Goretska Alice
____________________
(signature)

Work reviewed by:

Doctor of Economics, Professor
Gerasymchuk V.I.
Rating: _________________

Signature: _________________

Kyiv, 2019
 Content
Introduction...................................................................................................................3
I. Overview of India......................................................................................................4
II. Characteristics of the economic potential of India...................................................6
III. Forms and methods of entrepreneurship in India..................................................12
IV. Ukraine Business cooperation with India: retrospective, present, prospects........14
Conclusions.................................................................................................................20
List of references.........................................................................................................21

2
 Introduction

The state, with which relations have strategic importance for Ukraine, of course, belongs to the
Asian giant - India. At the time of the Soviet Union, which for many decades was India one of the
most important and reliable political and trade-economic partners Ukraine's contribution to
strengthening this partnership was very noticeable. Ukrainian enterprises have actively participated
in the creation of India's steel industry, electric power, exploration works, supply of essential
products engineering and instrumentation and so on.
After independence, Ukraine seemed that important for her close cooperation with India will
continue, so to speak, almost "automatically". It was made in India in 1992 the first official visit of
the first President of Ukraine Leonid Kravchuk, during which signed a series of bilateral
agreements. Gradually, however, relations between Ukraine and India lost the positive momentum
and moved into a phase of long-term "stagnation."
This situation was the result of certain changes in the foreign policy priorities of both countries
in terms heopolity-chnyh transformations of the late XX century. India cared primarily about
strengthening national security in view of the difficult relations with neighboring countries
(Pakistan and China), the output to a new level of cooperation with the most influential countries in
the world and joining the "club" of leading world powers and becoming a permanent member of the
UN Security Council. Ukraine has focused on strengthening national sovereignty, establishing equal
and mutually beneficial relations with leading Western countries and CIS, promoting the European
and Euro-Atlantic structures. The result was a lack of consideration of each of the two states of the
second national interests that hindered the development of bilateral relations.
This development does not meet the interests of both countries and urged to seek recovery of
mutually beneficial cooperation. Since 2001 relations between the two countries beginning to
emerge from a state of "stagnation." By mutual agreement of 2002 was a year of recovery
Ukrainian-Indian partnership.
Objective: structured and detailed characterization of foreign economic relations between
Ukraine and India; exposing issues that delay the development of the economy; tracking prospects
of certain areas of foreign relations between partners.
The main objectives:
 To analyze the state of foreign economic relations between Ukraine and India;
 To investigate the state of the economic situation in Ukraine and India, and to compare
the current level of the economy compared to the previous years;
 Identify ways of establishing a stable state of foreign economic relations between
Ukraine and the partner country;
 Consider trends in areas of economic cooperation between countries to assess their
feasibility and rationality.
The object of study: Economic Potential Business Partner State; India's foreign trade, which
includes political, economic, scientific, cultural, military, environmental, human relations and
Ukraine's place in these economic relations;forms and methods of entrepreneurship in India.
Subject of study:set of commercial, economic, legal, financial relations in economic activity
between subjects of foreign trade and foreign entities in India and China.
To perform the tasks in the following methods were used: statistical, comparative, graphical
method of abstraction, analysis, synthesis, dialectical, analytical, synthesis, deductive and others.

3
 Section I
Overview of India

History
The history of human settlement inIndiahas more than 9500 years. For thousands of years in
this country was a special civilization, the formation of which was attended by different
people.India developing in the territory of the Maurya Empire, which was one of the states in
ancient India. For a long time it was thought that there was a state in India with the arrival of
numerous tribes of herdsmen conquerors - the Aryans.
Indian medieval period lasted over a thousand years (from VII to XVIII c.) And divided into
two stages: the formation and collapse of small separate feudal principalities; and then - the
emergence of a centralized state -Delhi Sultanate(XIII-XIV c.). The second phase is completed
creationMughalin XVI-XVIII centuries.
The first Europeans - Portuguese appeared off the coast of India in the XVI century. They
seized Goa and other areas on the west coast. Then came the Dutch, French and English. For
centuries in Western Europe different countries have East India campaign that fought for the
colonization of India.
August 15, 1947 announced the establishment of an independent Indian Union, led by Prime
Minister Jawaharlal Nehru. And on January 26, 1950 India declared a republic and adopted a new
Constitution[1].
Political system
India is a federal parliamentary democratic republic in which the president is head of state of
India, and Indian Prime Minister is the head of government. India follows a dual policy, ie double
the government, which consists of the central government in the center and the periphery countries.
There is provision for a bicameral legislature consisting of the upper house, which represents
the state of the Indian Federation and the lower chamber, which represents the people of India at
large. The Constitution of India provides for the establishment of an independent judiciary, headed
by the Supreme Court.
Government is based on elections that are held every five years. In recent decades, the Indian
policy was dynastic affair. Possible reasons for this may be the lack of party organizations,
independent civil society organizations that have mobilized in support of party and election finance
district [2].

Picture 1: National Symbols of India

Administrative structure
As mentioned earlier, India is a federal republic, it consists of 29 states and 7 territories
(National Capital Territory of Delhi and six union territories). And the states and territories are
administrative units of the first level, which in turn are divided into districts (districts), which is in
India is more than 600 States have their own legislative and executive power[3].

4
 Picture 2: Subdivisions of India

Geography
India - South Asian country that occupies the Indian subcontinent, the surrounding region and
the archipelago. The total area of the country 3287263 km² (7th in the world). India shares borders
with six other countries in the north - with China (joint border - 2,659 km), Nepal (1770 km) and
Bhutan (659 km) to the east of Myanmar (1468 km) and Bangladesh (4142 km) on west - Pakistan
(3190 km).In the west of the country washed byArabian sea, in the EastBay of Bengal the Indian
Ocean[4].
Climate
Almost the entire territory of India is subekvatorialnomu zone. Rains in India's summer
monsoon brings penetrating from the Indian Ocean, which increases in early June on the west coast
and about mid-June on the East Coast - in Bengal. When passing over Arabian Sea and Bay of
Bengal monsoon saturated with moisture and moving over India in the north-west.
In most pronounced monsoon climate on the coast of the Arabian Sea. In the coldest period
(December to February), the average minimum temperature is +19 +21 ° C, the average maximum
+28. +30 ° C degrees. In the same period falls the least rainfall. The hottest time - from May to
June, when the average maximum temperature is +33 ° C +30 [5].
People
In 2019 India's population will increase by 17,248,911 people and at the end of the year will
amount to 1,387,297,452 people. Natural population growth will be positive and will be 17,810,631
people. For the full year born approximately 27,962,691 children die and 10,152,060 people. If the
external migration remain the same as last year, due to reasons of migration population change to
-561,720 persons. That is, the total number of people leaving the country (immigrants) will prevail
over the number of people entering the country for long-term stay (immigrants).
Below are the rates of population change India calculated for 2019:
 Fertility: an average of 76,610 children per day (3 192.09 per hour);
 Mortality: an average of 27,814 people a day (1 hour 158.91);
 Migration population growth, average people a day -1,539 (-64.12 per hour).
The rate of growth of India's population in 2019 will reach 47,257 people a day[6].

5
 Section II
Characteristics of the economic potential of India

Place countries in the world economy

During the years of independent development (since 1947) India has done a way from a
backward agrarian country (1951, 11 million people were employed in small homespun production,
while in factory industry - only 3 million) to a modern agro-industrial, industrialized, trade and
commodity-money relations. India's economy set the surplus and low cost labor and high standard
of work. India - space and nuclear power. The level of GDP in India includes six major economic
powers of the world. Economy - mixed type. In 1990 the share of public sector in total investment
was over 40%. Foreign investment in 1996 exceeded $ 2 billion., Representing about 10% of all
investments.
In the 1996/97 fiscal year, gross domestic product (GDP), calculated as the total value of
market goods and services amounted to 295 billion dollars. taking into account purchasing power
parity exchange is approximately equivalent to 1.538 trillion dollars. (Which puts India at fifth in
the world), and per capita income of $ 1,600. This is very different from the estimates The Heritage
Foundation, which is due to different methods of calculation of GDP. At the same time income
below the poverty level are, according to official estimates, approx. 35% of the population, and
according to some scientists and experts of international research centers - approx. 50%.
In the period 1960-1990 GDP increased annually by less than 4% (in Pakistan by 5% in
Indonesia - 6% in Thailand - 7%, Taiwan - 6% in Korea - 9%). Most of the initial period of
independent development guided by a socialist economic model. Expected to bring the country to a
higher economic level will be easier with the help of state regulation, not the free market. Most of
the production capacity in all sectors of the economy remain in private hands, but the key industries
have taken control of the government, which created state corporations. Private foreign investment
and import of banned or strictly regulated in order to maintain economic independence of the
country. In the late 1980s, was restored several market mechanisms to lift restrictions on foreign
investment. Since the early 1990s, GDP increased by more than 5% per year (1994-1997 to 7.8%
annually). In 1998-1999 the growth rate dropped to 6% due to political instability, shortage of
infrastructure investment (constraining exports and production efficiency) and economic sanctions
imposed by the United States after nuclear tests in May 1998.
At the turn of XX-XXI centuries. GDP growth declined: 2000 - 6.1; 2001 - 5.4%; 2002 - 4%
(estimate). Thus the industry's GDP growth in 2001 was only 2.5%. Causes - processes global
recession, reducing investment in industry, the tension on the Indo-Pakistan border.
According to the GDP - $ 435 billion. GDP growth - 6.1%. GDP per capita - $ 444 [7]. Direct
foreign investment - $ 1.9 billion Major industries: textile, chemical, food processing, steel,
transport equipment, cement, mining, petroleum, machinery. Imports - $ 71.5 billion (US h.ch. -
9.5%, Belgium - 6.8%, Japan - 6.4%, Saudi Arabia - 6.2%, Germany and Britain - on 5.8 %).
Export - $ 47 billion (US h.ch. - 20%, Germany - 5.7%, Great Britain - 5.6%, Japan - 5.2%, Hong
Kong - 4.6%).

Figure 1: Growth of GDP in India from 1987 to 2015

6
 Historical and economic characteristics of
Modern India's economy develops in structural transformation and solve many internal
economic and social problems. At the same time India won independent position in the global
economy and is involved in the process of globalization. The development of the country after
independence takes place on the basis of the market economy at large, and in a certain period and
the crucial role of the state.
Socio-economic system prevailing in the colonial period, characterized by stratification, a
combination of capitalist and pre-capitalist forms of economy. A foreign (British) capital operated
in the Indian market through export their products, creating a serious obstacle to the development of
Indian industry. Foreign capital invested in India itself, operated separately from the Indian and
largely opposed to it. Even participating in joint ventures, foreign capital pryvlasnyuvav the profits
of Indian companies and played a crucial role in the management and control.
However, foreign capital has created an infrastructure of a market economy (railways, ports,
communications), plantations (tea) and commodity production of cotton, jute, coffee, rubber, spices,
encouraging production in farms and promoting their inclusion in the market (export) economy.
Indian big business, in turn, competing with foreign capital, opposing small businesses and
handicraft production and created a monopoly production, mainly in the textile and light industry.
Representatives of commercial and usurious castes invested in building factories, buying foreign
equipment and forcing the craft and small business.
Resource potential
Natural resource potential of the country as a whole is rich, but per capita is low. Mineral
resources: Oil, natural gas, coal, lignite, iron, manganese and titanium (ilmenite) ore, chromite,
copper, lead, bauxite, zinc, tungsten, uranium, thorium (first in the world), gold, silver, apatite ,
phosphates, magnesite, barite, asbestos, graphite, mica, gypsum, diamonds, precious stones
(sapphires, emeralds, garnets).
Among the mineral world importance iron ore and manganese, mica. Fuel resources are limited,
there are significant deposits of coal only. Instead, there is a very large hydropower resources.

Picture 3: Map resource potential of India

7
 Workforce

Human resources constitute more than 60% of the population, more than half are employed in
agriculture. This figure is among the highest in the world. Characteristic features of the employment
is a low proportion of female employment, high unemployment, low employment and hiring by the
predominance number of self-employed workforce.
Almost 3/4 of India's population lives in rural areas. In recent decades experienced rapid growth
of cities and urban population. It is noteworthy that a third of all urban dwellers is concentrated in
23 cities. Migration from the countryside to the city due seeking work and better social conditions,
including health and education.

Education and research potential

Indian schools enrolled 150 million students. The level of literacy in India is 65% of the adult
population. Schools there is absolutely everywhere, even in the remotest village.
In India, children go to school since 3-4 years, trained 6 days a week, which is 6-8 lessons per
day, the duration of the lesson - 35 minutes. Kindergartens in the country there. In state secondary
schools (under 14 years) are free to study all children, regardless of family status. Traditionally, the
school day begins at 9 am, students line up in the yard, where they sing the anthem of India and
read the prayer.
In high school, students get either a fundamental or vocational education. Thus, from 10 to 12
class children can study in depth those items that they need for further higher education. Reviews in
school do not make, evaluate only during exams.
In India operates 200 universities, 16 of them - central, the last act under staff regulations. The
total number of colleges in the country - about 11000. In the last few decades, significant
development was the area of technical education. Currently, 185 institutions offering postgraduate
studies in engineering and technical dystsyplinam.Naybilshymy universities in India are: Calcutta
(150 thousand. Students), Bombay (Mumbai 150 thousand.) Radzhasthanskyy (150 thousand.),
Delhi (130 thousand.), University named MK Gandhi (150 thousand.).
In India, the study only about 30 thousand foreigners, compared with 400 thousand in Australia
and 150 thousand in Singapore. VSoho studying at universities in India more than 6.5 million.
students is 5-6% of young people aged 17-23 years.
Sectoral structure of economy
India - an agro-industrial country. The state controls 100% of oil and gas, production of copper
and lead, 95% coal and electricity, 75% of steelmaking, 50% of the production of nitrogen
fertilizers, about 30% of aluminum production, etc. In the hands of the state is rail and air transport,
as well as a significant portion of shipping and foreign trade.
The state makes great efforts for the development of agriculture, which has a distinct plant
growing. Meat Livestock in the country is underdeveloped. Cattle being used as draft animals. Pig
is important only in areas with a Christian population, as well as suburban areas largest cities. Sea
fishing in most developed coastal southern and western states, river - in the east and north-east.
Agricultural land in India uses 60% of the territory. They are mainly engaged in cultivation.
Chief among crops - rice, wheat, and millet and legumes.
India - the world's largest producer of sugar cane, cotton is one of the leading countries in the
world (3rd place in the production of cotton fiber, more than 12% of world production). An
important place is the cultivation of jute, he is second only to India charges Bangladesh. India -
Tobacco third countries (10% of world production). India - the world's largest producer of tea,
accounting for about a third of the world meeting this culture.
Traditional Indian export article - spices, they take out about 90 thousand. Tons per year.
Spices, important among which occupies black pepper and cloves and cardamom grown in southern
India. In India, growing almost all known fruits, as tropical and subtropical, and temperate
characteristic. By collecting bananas and pineapples India ranks first in the world (17.1%).

8
 In India, the company developed handicrafts (carpet weaving, jewelry, ivory carvings etc.).
India ranks first in the world in the production of films (500-900 films per year).
Exports India dominates textiles, handicraft, handicrafts, agricultural products [8].
Industry and its main branches
India's share in world production of major industrial products is very low. Indian industry
combines various forms of production - from large factories equipped with the latest technology to
primitive crafts. In India's total energy balance continues to play a significant role non-industrial
fuels: wood, dung. However, significant efforts to increase production of coal, oil, natural gas,
electricity capacity vyrobnytsvva. Coal India produces about 270 mln. Tons. The coal industry is
mainly concentrated in the northeast Indian subcontinent. The country is developing three oil-
producing areas - in Upper Assam on serednohudzharatskyh plains and offshore near Bombay.
Major refineries are located in the states of Andhra Pradesh, Kerala,
The share of thermal power plants in total electricity production is 4/5, hydroelectric power -
about one-fifth. In recent years slightly increased production of nuclear power, which is 2.0% of the
total production. The country has five nuclear power plants.
India has a large and quite diverse mineral resource base. Mining India works primarily on the
domestic market, although export of iron ore (60% extraction) was one of the major items of Indian
exports.
Metallurgy developed in Bokaro, Bhilayi, Durhanur and developing both its own resource, and
the imported.
Enterprises producing chemical coatings, paint, chemical fiber, fertilizer.
Engineering India was to provide domestic machines traditional industries - sugar (almost
completely), textile and electricity.
High genetic Indian masters qualification provides a stable development of such specific
industries as the diamond industry. India has a large impact on world trade in diamonds, because it
is - the only country that produces small diamonds weighing 0.01 to 0.02 carats, which are most in
demand[8].
Agriculture
The state makes great efforts for the development of agriculture, which has a distinct plant
growing. Despite the largest in the world cattle population (182 mln. Heads, about 15% of world
population), beef cattle in the country is underdeveloped. Cattle being used as draft animals.
Religion forbids slaughtering cows because the population is restricted breeding small ruminants
and poultry. Pig is important only in areas with a Christian population, as well as suburban areas
largest cities.
Agricultural land in India uses 60% of the territory. They are mainly engaged in cultivation.
Chief among crops - rice (21.5% of world production), wheat (over 11% of world production), and
millet, and legumes. Rice is grown mainly in the coastal lowlands of north-western India.
India - the world's largest producer of sugar cane, cotton is one of the leading countries in the
world (3rd place in the production of cotton fiber, more than 12% of world production). An
important place is the cultivation of jute, he is second only to India charges Bangladesh. India -
Tobacco third countries (10% of world production). India - the world's largest producer of tea,
accounting for about a third of the world meeting this culture.
Service Industries
This sector provides the main impetus to the industrial prosperity. Its share in the national GDP
is over 40%. Trade in services is closely linked with the movement of goods, capital and labor
movements that stimulate the development of this sector. The most developed financial, banking,
accounting and auditing, insurance services, freight, tourism, education, health, physical education,
sports, real estate, services, market research and information services (admittedly Indian customers
in worldwide) are highly professionally perform their functions.
India is fast becoming a major figure on the world market. Proof of this was the fact that major
players in this market have a significant financial investment in the Indian economy, in particular,
they opened the country's few large centers of technological services and processing of information
orders its customers worldwide training centers to prepare relevant specialists and t. e.
9
 Foreign trade
The integration of the Indian economy through the dual channels of trade and capital flows
accelerated in the last two decades, which in turn led to the fact that India's GDP in 2017-18 years
reached 167.73 trillion (2.30 trillion. Dollars. USA). At the same time this year the per capita
income has increased by almost half. Trade and India's external sector had a significant impact on
GDP growth and an increase in per capita income. Preliminary estimates of GDP 2018-19-19 India
for years totaled USD 190.10 trillion (2.72 trillion dollars. USA).
Table 1

Total exports from India (goods and services) for the April-July 2019 increased by 3.13% to
181.47 billion. Dollars. US, while total imports estimated 214.37 billion. Dollars. US, indicating a
negative growth of 0.45% according to data from the Ministry of Trade and Industry.
Cumulative value of exports for the period April-July 2019-20 years was 107.41 billion. US
dollars (7,45,174,85 crown) against 107.81 billion (7,26,842,89 crown) during April-July 2018-
July 19.
Cumulative value of imports for the period April-July 2019-20 years was 166.80 bln. Dollars.
USA (11,57,232,64 crown) against 173.08 billion. Dollars. USA (11,67,617,41 crown) during
April-July 2018-19.
Mr Piyusha Hoyalya, Minister of Trade and Industry, Government of India aims to increase
exports and provide more jobs for young, talented, well-educated and even semi and unskilled
workers in India.
International economic integration of India in 2019:
 In August of 2019 between India and France signed four Memorandums of Understanding
(MM) on the development of skills and training, renewable energy, IT services and space
research.
 In December 2018 India and the UAE signed an agreement on currency swap to enhance
trade and investment ties between the two countries.
 In June 2018 between the governments of India and China signed a Memorandum of
Understanding (MM) nebasmati of rice exports to China. Bilateral trade between India and
China in 2017 reached 84.44 billion. Dollars. US, 40% of the export of goods from India to
China.
 In August 2018 the US raised the status of India as a trading partner along with their allies
from the North Atlantic Treaty Organization (NATO) .Zovnishniy sector in India has a
bright future as world trade is expected to grow 4 percent in 2018 from 2.4 percent in 2016.
 In March 2017 the Government of the Union approved the signing of the Customs
Convention on the international transport of goods Transports Internationaux Routiers
(TIR), making India 71 m, which signed an agreement that will help move goods to these
countries in Asia and Europe and allow the country to fully take advantage of the
International North south transport corridor (INSTC).
Currently India is known as one of the most important players on the world economic space.
Its trade policy, government reform and the inherent economic strengths attributed to its position as
one of the most popular destinations of foreign investment in the world. Furthermore, technological

10
and infrastructural developments undertaken throughout the country, well promote trade and
economic sector in the coming years.
According to estimates of expected exports to India 2018-2019 years will reach 750 billion
US dollars, according to the Federation of Indian Export Organization (FIEO). Also, when the
Government of India concluded important agreements with the governments of Japan, Australia and
China, the external sector increased its contribution to economic development and growth in
international markets.

Geography of foreign trade in India is quite extensive. According to the IMF, in 2017 the share
of developed countries accounted for 43% of exports and 33% of imports in India. India largest
contractors in this group of countries acting US, Germany and Britain. Growing share in trade is the
oil-producing states, primarily the Gulf states. Followed by China and newly industrialized
countries of Southeast Asia.

Picture 4. The share of imports in India, 2017

A very modest place in India's foreign trade takes its closest neighbors - Pakistan, Bangladesh
and Sri Lanka (amounting to 4.2% of exports and 0.5% of total imports). This is uniformity export
specialization India and its neighbors, as well as the intensity of political relations in certain
periods[9].

11
 Section III

Forms and methods of entrepreneurship in India

Since the end of last century, India conducted a series of reforms. At the opening of business
in India, it is important to choose the right form of business organization. Each type of organization
has its advantages and disadvantages. The correct choice of forms of business organization is very
important because it defines power, control, risk and responsibility of the entrepreneur and the
distribution of profits and losses. As a long-term commitment, the choice of business forms should
be made after considerable thought out and obdumuvan. While you can change the type of
ownership at any time, you have to carefully decide experts agree, as the chosen form of business
will affect your view documents held personally liable to pay the tax and, if necessary, apply for
bankruptcy protection. and gently but very effectively moved from a centralized economy to free
market principles.
The Government of India is actively implementing a range of measures and programs aimed
at stimulating economic development. These measures, including those relating to improving
governance and national laws, improving the business and investment climate in the country.
Foreign investors an opportunity to invest in such important sectors of the Indian economy, as
defense industry, railways, insurance and trade.
One of the priorities of the Government of India is to increase the willingness of entrepreneurs
to open business in India, and in 2014 the government launched a national initiative "Do India",
aimed at attracting national and international companies to create industrial production in India. The
objectives of the program were to increase the investment attractiveness and international
competitiveness of India, transformation of the country into a global manufacturing center and
modern designs.
To live in India and successfully conduct business, foreigners, including Ukrainian, consider
the mentality of local people, culture and traditions, and most importantly, the language barrier.
Without the help of Indian business partners, accountants, lawyers and consultants start their own
business is very problematic. This is why many businesses are adopting promising ideas or
exploring business issues with India on the condition of the country in that there is a real option.
Fiscal policy: under current law tax system in India is three-tiered, involving the collection of
taxes in favor of the central government, state governments and local authorities.
The main direct taxes include: income tax on companies; individual income tax; tax and gift
tax expenses.
The rate of income tax for companies (Corporate Income Tax) in recent years has tended to
decline in order to stimulate economic growth. According to the law on income tax on its base rate
is 30% of the profits for Indian companies and 40% - foreign companies.
In FY 2017/18. of activities to stimulate SMEs to companies whose annual turnover does not
exceed 500 million. rupees (7.8 million. dollars. USA), tax rate reduced to 25%.
In the financial bill in 2018/19 FY. rate of income tax of 25% already widespread in large
companies whose annual turnover does not exceed 2.5 billion. rupees (39.3 million. dollars. USA).
For companies with revenue of over 2.5 billion. Rs tax rate will be 30%. At the same time foreign
companies incentives do not apply and they must pay a tax of 40% of annual income.
In addition, companies with annual revenues of between 10 and 100 million. Rs impose
additional duty tax of 7% for Indian companies and 2% overseas. With revenues of over 100
million. Rs additional fees already amount to 12% and 5% - for Indian and foreign companies
respectively [10].
12
 To implement single or multiple trips and doing business in India foreigner must issue a
business visa in this country. Local law provides two options.
Visa M. New business visa to India, which is issued to foreigners for commercial and trading
activities on the Indian territory. The maximum term of one year with the right of extension for
another 180 days.
Visa F. Formally F visa does not allow commercial activity and intended for foreigners
invited India to participate in the scientific, technical, educational, cultural, health and sports events.
But in fact, some businesses use this type of visa to solve business issues in the country.

13
 Section IV
Ukraine Business cooperation with China: a retrospective, present,
prospects

History of political and economic relations, legal basis

Official Ukrainian-Indian relations began December 26, 1991, when India recognized the
independence of Ukraine, and January 17, 1992 between the two countries was established
diplomatic relations. February 13, 1993 First Extraordinary and Plenipotentiary of Ukraine in India
President of India presented his credentials.
Back in 1960-1970 Ukraine's Soviet Union in cooperation with India has provided economic
and military assistance to the Republic of India that the total contribution was about 30%, and in
areas such as metallurgy, energy, heavy engineering, supply of weapons (including transport
aircraft , warships, etc.) share of Ukraine was much higher. The first Indian space satellites going on
"Pivdenmash" in Dnipropetrovsk.
In Soviet times there were Ukrainian Branch of the Soviet-Indian friendship, but it is
completely guided by Moscow. Sometime in 1987 began independent activity, which resulted in
separation from Moscow and the creation of the Association "Ukraine-India."
Since independence, Ukraine and India have established cooperation in almost all fields:
economic, political, scientific, cultural and defense.
Cooperation between Ukraine and India in the cultural sphere is developing rapidly: the parties
engaged in cultural exchanges, promote the participation of both countries in various cultural and
sports events, international contests, conferences and more.
Visit of the President of Ukraine and India:
25-29 March 1992 - official visit of the President of Ukraine LM Kravchuk India.
13-16, 1993 - Official visit of the President of India, SD Sharma Ukraine.
October 2-5, 2002 - Official visit of President of Ukraine LD Kuchma to India.
June 1-4, 2005 - Official visit of Indian President A. Kalam to Ukraine.
9-12 December 2012 - state visit of the President of Ukraine Viktor Yanukovych to India.
Foreign Minister of Ukraine:
18-21 April 1994 - official visit of Foreign Minister of Ukraine AM Zlenko India.
April 7-8, 1997 - Official visit of Minister of Foreign Affairs of Ukraine H.Udovenko to India
to attend a conference of Non-Aligned Movement.
August 11-12, 2003 - Official visit of Minister of Foreign Affairs of Ukraine AM Zlenko India.
24-27 November 2011 - official visit of the Minister of Foreign Affairs of Ukraine Kostyantyn
Gryshchenko to India.
5-6 October 2017 - Minister of Foreign Affairs of Ukraine Pavlo Klimkin an official visit to the
Republic of India.
State and prospects of cooperation
 Foreign trade
Trade and economic relations between Ukraine and the Republic of India are based on the
following key documents: Agreement on Trade and Economic Cooperation (27.03.1992 g.);
Convention for the avoidance of double taxation and prevention of tax evasion with respect to
taxes on income and capital (07.04.1999 g.) And others. The agreement stipulates MFN in
mutual trade. Created and established in recent years in mechanisms of interaction between the
public and private levels designed to identify main directions of mutual cooperation and resolve
existing problems. Among these mechanisms include bilateral visits at the highest level,
ukradennya bilateral agreements aimed at increasing trade and economic, scientific-technical
and cultural cooperation between Ukraine and India.
Growth of trade, import, export and balance of trade we can see in the following table:

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 Table 2

 The structure of exports and imports

Top sales from Ukraine to India - oil, exported from January to November 2017 for almost
$ 1.5 billion, ie 45% more than last year.
The main headings Ukrainian exports to India: fats and oils of vegetable origin (17.8%);
metallurgy (10.3%); plastics and plastics (5.0%); agricultural products (4.9%) and others.
The main products of Indian imports to Ukraine: pharmaceutical products (4.7%); electrical
machinery (3.0%); organic chemicals (4.7%); ferrous metals and articles thereof (4.5); seeds and
oleaginous fruits (2.9%) and others.
Perspective directions of bilateral cooperation in the economic sphere, considered in the
framework of the Intergovernmental Ukrainian-Indian Commission on trade, economic, scientific,
technical, industrial and cultural cooperation established under the intergovernmental agreement of
19.04.1994 was. Her last 6th The meeting was held 5-6 February 2018 in the city. Kyiv.
 Free economic zones
India first allowed SEZ after the enactment of the special economic zone in 2005 June 23, 2005.
The law provides for the creation, development and management of FEZ for export promotion and
related activities.
In fact, the SEZ - a geographical area designated for exports and providing employment
opportunities, which is exempt from certain federal laws on taxes, quotas, prohibitions and labor
legislation with a view to the possibility of forming competitive prices for goods produced there.
SEZ also include a free trade zone export processing free zones, industrial parks or industrial
estates, special economic zones and urban zones businesses.
Indian SEZ closely follow the successful model of Chinese SEZs, and China, the SEZ may be
established with foreign investment businesses to produce goods, services and other activities,
including processing, assembling, trading, repair and reconstruction.
Sectors SEZ in India are classified into four types:
 Special economic zones for several sectors;
 Special economic zones for specific sectors;
 Special economic zones for free trade and storage;
 Special economic zones for IT / ITES / crafts and other industries.
India has a number of FEZ located around its coastline, including Gujarat (North West),
Mumbai (West Coast), Noida (New Delhi), Kolkata (Bay of Bengal), Chennai (East Coast) and
Visakhapatnam (southeast coast). They are located near major ports with excellent road and rail
transport infrastructure. General customs to SEZ - is the production and assembly of the combined
Indian and international components and the final product can be sold in both the domestic market
and / or exported.
The total area covered by the regime of SEZ and TPD in Ukraine - 6360 hectares, or 10.5% of
Ukraine. Ukraine number of areas covered by the regime of SEZ and DPA - 12. The number of

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regions of Ukraine, which are subject modes SEZ and DPA - 41 cities of Ukraine, which are subject
modes SEZ and DPA - 58.
According to the State Tax Administration of Ukraine (STA) approved 412 investment
projects, worth an estimated 1, 659 billion; attracted investments worth 543.5 million dollars. US
and created and saved 62.4 thousand jobs.
 Specialization and cooperation in the international division of labor
Ukraine has significant industrial, natural and human resources, besides the extremely
favorable economic and geographical and geopolitical accommodation in the heart of Europe with
direct access to the main land and sea routes. This means that Ukraine exported raw to India for
various industries and importing finished products from India.
 Field of education
Ukraine's cooperation with India in the field of education is one of the priorities of bilateral
relations, and it is quite fruitful. In India since the Soviet times there traditional interest in receiving
higher education in Ukraine. Training for Ukrainian universities in India began in 1957.
Between Ukrainian and Indian universities signed 10 cooperation agreements. In particular, the
Agreement on Cooperation between the Institute of International Relations of Kyiv Shevchenko
University and the University im.Dzh.Neru Memorandum of Understanding between the
Diplomatic Academy of Ukraine and the Institute of Foreign Service in India.
July 8, 2008 in Kiev, the International Association of graduates Ukraine, which appointed its
representative in India (S.Dhakre).
In India acting spokesman for the Ukrainian State Center of International Education, Ministry
of Education and Science of Ukraine Dr. D.S.Radzh.
September 10, 2012 the Center opened at the Department of Indology Studies Institute of
International Relations of Kyiv National University. Shevchenko.
 Scientific and technical relations
Ukrainian-Indian scientific and technical cooperation (NTS) based on the Intergovernmental
Ukrainian-Indian agreement on scientific and technological cooperation, and an agreement on
scientific cooperation between the National Academy of Sciences of Ukraine and the Indian
National Academy of Sciences.
Bilateral intergovernmental agreements on NTS provides a legal framework for the meetings of
the joint Ukrainian-Indian Committee on Scientific and Technological Cooperation (with regularity
every two years), programming the profile of cooperation, exchange of experts and information,
know-how, joint seminars and conferences; defines the procedure for financing bilateral exchanges
of scientists.
In 1993 was signed the first intergovernmental program of cooperation in science and
technology for the period 1993-1996. Launched by the Commission NAS of Ukraine for NTS with
India.
In 2000 work began Ukrainian-Indian Committee on NTS. At its first meeting approved the
Program for 2000-2003 NTS. The program was elaborated during the 2nd meeting of the NTS
(March 2001, m. Delhi) approved 15 joint projects, particularly in the field of powder metallurgy,
materials science, biotechnology, astrophysics, Biocolloidal chemistry, physics of semiconductors
and superconductors, fluid mechanics, genetic engineering.
03-06.03.2003 g. Held the first Ukrainian-Indian scientific and technical exhibition "Loopset
2003" in m.Hayderabad, which was attended by 17 research institutions and universities in Ukraine,
presented 53 innovative projects.
21-23 December 2004 in the city. Delhi held the first "Days of Science of Ukraine in the
Republic of India." The exhibition was attended by 44 universities and research institutions from 17
regions of Ukraine.
Significant push to enhance bilateral NTS was provided during the state visit of then Indian
President A.Kalama (Honorary Doctor of National Academy of Sciences) in Ukraine in June 2005
signed a framework intergovernmental agreement on cooperation in the use of outer space for
peaceful purposes.

16
 5-7 May 2011, the visit to India (m.Banhalor) delegation headed by Chairman of the State
Space Agency of Ukraine Yu.S.Aleksyeyevym. Negotiations with the Chairman of the Indian Space
Research Organization Dr K.Radhakrishnanom.
December 10, 2012, as part of his visit to India, President of Ukraine signed the Ukrainian-
Indian intergovernmental agreement on scientific and technological cooperation, which is a
framework document, which, inter alia, regulates the activities of the Joint Committee of the NTS
(entered into force 06.10.2014 g. ).
12.10.2012. Also Agreement between the State Nuclear Regulatory Inspectorate of Ukraine and
the Council for the Regulation of nuclear power India on exchange of technical information and
cooperation in nuclear safety and radiation protection, which provides for the implementation of
joint research programs, exchange of information on regulation, regulatory aspects of the
construction and operation of nuclear power plants, nuclear fuel recycling and environmental
protection from pollution and nuclear radiation, operational safety, prevention and response to
related emergencies.
April 22, 2013 in m.Deli held the sixth meeting of the Ukrainian-Indian Committee on
Scientific and Technological Cooperation. Agreed procedure for organizing and facilitating
exchanges of scientists identified a new mechanism of financing, which entered into force
01.01.2014 g.
Overall, the promising directions of Ukrainian-Indian NTS include materials science, nuclear
energy, information and biotechnology, agricultural technology, aerospace, defense, medical
research.
 Investments
One of the biggest foreign investors in the economy of Ukraine is holding "ArcelorMittal"
(owner - a businessman of Indian origin L.Mittal), which in 2005 acquired the public enterprise
"Krivorozhstal" 4.8 billion. Dollars. USA.
Among other famous Indian businesses present in Ukraine through investments in joint
ventures should be noted: «Tata Motors» (collection vehicles and buses), «Ranbaxy», «Torrent»,
«Dr.Reddy Labs» and «Lupin» ( all - pharmaceutical industry).
The leader among Ukrainian companies that are active in the Indian market is the consortium
"Ukrindustriya" (contract for construction of coke complex in the city. Naharnar cost 440 million.
Dollars. USA). For a long time operating in India JSC "Azovmash", "NKMZ" and "Turboatom." A
number of important tenders «Power Grid India» together with Indian partners won JSC "ZTR".
At the final stage of implementation is the largest in the history of Ukrainian-Indian relations
contract DHZP "Spetstehnoeksport" repair and modernization of 105 Indian AN-32 with the
assistance of SE "Antonov. ASTC "and SE" Plant 410 Civil Aviation ".
Running a commercial contract between the corporation and BHEL JSC "Trading House
Factory" Dnepropress "to supply heavy press for the company in m.Haridvar.

 Clusters
Clusters - is concentrated geographically group of interconnected companies, specialized suppliers,
companies from related industries and activities related to their organizations (eg, universities,
standardization agencies, trade associations), which compete with each other, but are collaboration.
As an example of the effectiveness of the cluster can bring this country like India, which in 80 years of
the twentieth century. enhanced economic competitiveness, supporting the development of innovative
businesses, bringing together SMEs in clusters, while strengthening their relations with large enterprises.
Today, the country has more than 2 thousand. Clusters with major state support. Such clusters are now
employing 7.5 million workers. There are annually produced products to 3.8 billion. Dollars. and provide
60% of exports.
 Innovative activity
In India doyure sufficiently developed two industries: pharmaceutical industry and
biotechnology. It is in these areas focused innovation.
Made in India quality medicines at affordable prices gained worldwide recognition. The
country occupies 10% of the global medicine market volume of 110 billion dollars .; ranks 3rd in

17
the world in terms of production and 14th place in cash. Indian pharmaceutical products are
exported to over 200 countries worldwide, including key markets are the US and EU.
India is among the world's 12 largest biotechnology centers in this area takes 3rd place in the
Asia-Pacific region, showing cumulative annual growth rate of over 10%. In 2016, the Indian
financial sector biotech drugs consisted of about 800 companies demonstrated growth and 57.14%
(expected to in 2017 fiscal year, its volume will reach 11.6 billion dollars.). In the period from 2012
to February 2017 Indian startups in the field of biotechnology drugs attracted investments worth 2.8
billion dollars.
 Transport
According to data as of 2018 in the structure of Ukrainian imports held an important place in
Ukraine import of electric cars in the amount of 74.16 million. USA. The structure of service
exports from India one of the last places were transport services were 24.8 million. Dollars. USA.
 Cooperation in the field of monetary
In consideration of the parties is 22 draft bilateral agreements on cooperation in monetary
and financial sector.
 joint ventures
Perspective directions of bilateral cooperation in the economic sphere, considered in the
framework of the Intergovernmental Ukrainian-Indian Commission on trade, economic, scientific,
technical, industrial and cultural cooperation established under the intergovernmental agreement of
19.04.1994 was. Her last 6th The meeting was held 5-6 February 2018 in the city. Kyiv.
The interaction at the level of ministries and departments of Ukraine and India in the form of
sectoral working groups. In particular, the second meeting of the Joint Working Group on
healthcare and pharmaceuticals (21-22 January 2016, Kyiv), the first meeting of the Joint Working
Group on Space Cooperation (February 16, 2016, m. Kyiv) and and third and fourth meeting of the
Joint working group on trade and economic cooperation, respectively, 5-6 May 2016 in the city.
Kyiv and April 2, 2019 in. New Delhi. In 2018 held the 7th meeting of the Joint Committee on
Scientific and Technological Cooperation (October 9, m. New Delhi).
Among Ukrainian companies actively operating in the Indian market, there Consortium
"Ukrindustriya" performing contracts with construction and reconstruction of coke batteries Steel
urban Rurkela, Bhilayi, Bernpur.
JSC "Azovmash" supplies equipment and is a preparatory work for the construction of new
oxygen converter shop at 5 mills Indian state steel company SAIL.
SE "Ukrdipromez" is the general designer for SP Vizakhapatnamskomu Steel Plant.
Active participation in tenders for the supply of metallurgical equipment is JSC "NKMZ."
Now completed implementation of the Ukrainian "Turboatom" project to supply turbines for
the construction unit capacity of 220 MW nuclear power plant in the city. Kaiga, Karnataka.
TEM Ukraine in India will help Ukrainian companies, among which is the holding company
"AvtoKrAZ", JSC "Drogobych truck crane plant", JSC "Ukrainian graphite" (c. Zaporizhzhya), JSC
"Yasinuvatska Machinery Plant", JSC "Krasnoarmiysk silicon brick factory", JSC "Chasovoyarskyy
vohnetryvnyy plant", JSC "plant Krasnohorivskyy vohnetryvnyy" SE "Luganskgiproshakht", LLC
"Agromat" (city Kyiv), the plant "Progress" (city Kyiv), JSC "Illichivsk shipyard" and others. in
their intentions to enter the Indian market.
Organized meetings and negotiations leadership of JSC "Electrotyazhmash" (c. Kharkov) and
SE "Ukrdipromez" (c. Dnepropetrovsk) with Indian partners to involve Ukrainian enterprises to
implement new projects in India.
In the energy sector continued cooperation "Ukrinterenergo" with the company "Sun Overseas";
JSC "UkrHydroMech" (N. Kakhovka) - with the company "Om Metals & Minerals Ltd." (on joint
participation in hydroelectric projects in India). Active in the local market is also a Ukrainian state
company "Vazhmashimpeks" AK "Harkivenerhoremont", JSC "Dawn - Mashproekt" (c.
Mykolayiv).
Actively worked out the possibility of withdrawal of Ukrainian State Enterprise "Ukrgeofizika"
the Indian market geological services, especially in terms of implementation of geological
exploration of deposits of energy [12].
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  Culture, sport, tourism, etc.
Between Ukraine and India expanding cooperation in culture. Up to 50 events in various
fields of cultural life, as well as mechanisms and conditions for their conduct outlined in the
program of cultural cooperation for 2013-2017 years, signed in New Delhi for the second session of
the Ukrainian-Indian sub-cultural cooperation. In particular, the mutual days of culture, exhibitions,
performances of artistic groups, participate in competitions and festivals that take place in the two
countries and joint participation in multilateral cultural programs and projects.
As for tourism, the two sides are working on signing a memorandum on granting Ukraine the
status of State recommended to visit the Indian group of tourists.

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 Conclusions

The work was analyzed foreign trade activities of the two countries, Ukraine and India.
Summary consisted of four sections. The first section was investigated general description of
the country's business partner, namely: 1) a brief history, political and administrative structure; 2)
geography, climate population.
The second section of the analysis of the economic potential of India. It was determined the
country's place in the global economy, historical and economic features of development resources,
educational and scientific potential, meaning industry and its branches and other aspects.
The next section hadstudied in detail the state and prospects of business cooperation between
Ukraine and India, as well as forms and methods of entrepreneurship country business partner.
Between India and Ukraine is relatively good policy framework for the deployment of trade
and economic cooperation. Between the two countries there are no issues left by history and
geopolitical conflict and each of these countries has the desire to continue and develop economic,
social, scientific, educational, cultural cooperation.
Ukrainian party seeks to expand exports to India to attract Indian investment, development of
transport logistics and infrastructure.
Summing up all the above, we can add that in the future relations between Ukraine and India
tend to develop.

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 List of references

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82% D0% B0% D1% 8E.
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tur.narod.ru/turizm/spysok/india/gospodindii/gospindia.htm
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resource:https://www.ibef.org/economy/trade-and-external-sector
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entities-in-india.html
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12. Embassy of Ukraine to the Republic of India // http://www.mfa.gov.ua/india

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