Trade Mission also Celebrated the Opening of New Illinois Trade Office in New Delhi
CHICAGO – Gov. Rod R. Blagojevich today highlighted the success of a recent State of Illinois led Trade Mission to India and celebrated the opening of a new Illinois foreign trade office in New Delhi. The Illinois Department of Commerce and Economic Opportunity’s (DCEO) Office of Trade and Investment (OTI) led the trade mission, which included DCEO Director Jack Lavin and fourteen people from various Illinois companies and organizations, took part in the week-long trip to develop ties and explore opportunities with Indian firms, investors, institutions and organizations. The March 20-29th mission marked the latest in a series of foreign trade missions to countries across the globe designed to match Illinois companies with business opportunities abroad.
“India is one of the world’s fastest growing markets that is home to a wealth of talented and sophisticated firms turning to the international marketplace to meet its diverse needs for goods and services. This trade mission was an excellent way to introduce Illinois companies to the near limitless opportunities this country offers and forge lasting partnerships with Indian firms, organizations and government entities that can lead to new jobs here at home. By launching an Illinois trade office in New Delhi, we will be better able to assist Illinois companies to tap into these tremendous opportunities and continue to establish innovative ways to open up new doors across the globe,” Gov. Blagojevich said.
The State of Illinois Trade Mission to India, which included stops in New Delhi and Mumbai, provided a number of opportunities for participants to acquire extensive information about the Indian market, meet with high level government and industry officials across a variety of sectors, and establish potential business partners through one-on-one meetings. Mission participants represented a diverse group of sectors, including the life sciences and biotechnology, education, agriculture, energy and coal.
The trip was highlighted by the opening of an Illinois trade office in New Delhi, an event attended by the U.S. Ambassador to India David Mulford, Secretary Gopal Pillai of the Indian Ministry of Commerce, and Dr. Ashwani Kumar, Minister of State at the Ministry of Industry. Illinois now has ten foreign trade offices worldwide, which provide invaluable resources to help Illinois companies identify new markets and locate distribution channels for their products and services abroad. Trade offices also work to market Illinois and bring critical foreign direct investment (FDI) into the state. Other trade office locations include Brussels, Tokyo, Hong Kong, Mexico City, Warsaw, Toronto, Johannesburg, Shanghai and Jerusalem.
The Federation of Indian Chamber of Commerce and Industry (FICCI) helped to arrange many of the key meetings for the delegation during the mission. This included meeting with the New Delhi Council of Scientific and Institutional Research (CSIR), the premier Indian research and development center; meeting with the Secretary of Industry, Energy and Labor for the State of Maharashtra; visiting the Bombay Stock Exchange; and meeting with the Managing Director of the State Bank of India in Mumbai.
As a result of these meetings, several collaborations are being explored to advance mutually beneficial opportunities for Illinois and India that involve the agriculture, technology, energy, higher education and business sectors. Specific collaborations include potential partnerships in the areas of biotechnology and nanotechnology; clean coal technologies and biofuels development; with the Chicago Board of Trade; and business leads from the one-on-one meetings.
“India has a growing economy that requires sustainable, clean energy to fuel this fast-paced growth. Southern Illinois University has a record of energy related research, and, through this mission, we have been able to lay the groundwork for future research collaborations, industrial consultation, and student exchanges. This visit served as a first step in establishing these relationships that will be beneficial for both the State of Illinois and India,” said Dr. Tomasz Wiltowski, Associate Director of the Coal Research Center and Professor of Mechanical Engineering and Energy Processes at Southern Illinois University Carbondale, who participated in the mission.
“The Indian pharmaceutical and biotech market represent one of the fastest growing and largest in the world, third largest in terms of volume of drugs sold, with annual sales of $9 billion in 2006, which are expected to grow to $25 billion by 2010. Illinois companies like Baxter and Abbott Labs already have substantial Indian operations, and several other Illinois pharma/biotech companies are either sourcing products or drug development activities, such as clinical trials, from India. Additionally, there is a high Indian interest in nanotechnology, nano-bio and biofuels, areas in which Illinois excels in research capabilities, to create sufficient momentum for building further ties with the Indian life science industry,” said trade mission participant Michael Rosen, Senior V.P, New Business Development for Forest City Enterprises’ Science + Technology Group, which owns, develops and operates the Illinois Science + Technology Park, in Skokie.
“The Chicagoland Entrepreneurial Center (CEC) provides a 360-degree support network for entrepreneurs that have led the CEC to become synonymous with Chicago’s economic growth and opportunity,” said David Weinstein, President of the Chicagoland Entrepreneurial Center, who participated in the mission. “India is an expanding and important market that many entrepreneurs are interested in tapping, and, through this trip, we hope to have strengthened the ties with their country to provide this opportunity to our entrepreneurs.”
“I believe India is a real sleeping giant for Illinois agriculture,” said Richard Guebert, Jr., a farmer from Ellis Grove and Vice President of the Illinois Farm Bureau, who participated in the mission. “It has a huge population with an expanding middle class. People improve their diets as their income grows, so this is creating opportunities for Illinois agriculture.”
Since 2004, Illinois exports to India have risen by 60 percent to almost $440 million annually. Top sectors include chemical products, machinery and electronics equipment. These exports are expected to continue increasing as the Indian government begins instituting new reforms and deregulation. Meanwhile, Indian firms are investing heavily in production facilities, which provide significant opportunities for Illinois companies. According to the American Chamber of Commerce in India, a majority of U.S. firms with a presence in India are reporting double-digit, year-on-year growth.
Illinois reported more than $42 billion in exports in 2006, a 17.3 percent increase from 2005, the largest dollar figure increase in a single year, according to WISER, the World Institute for Strategic Economic Research, who compiles its information from the US Census Bureau, Foreign Trade Division. Since 2002, Illinois exports have grown by $16.4 billion, a 64 percent increase. Illinois is also now the fifth largest exporting state in the country, which is its highest ranking ever. Illinois also currently ranks fifth in the nation in foreign direct investment, which has created nearly 236,000 Illinois jobs and represents nearly 5 percent of the state’s private-sector workforce, according to the Organization for International Investment.
Under Gov. Blagojevich, OTI has led 47 foreign trade missions. These missions have hosted more than 285 participants and have included trips, often multiple times, to countries such as Australia, Canada, Chile, China, Germany, India, Israel, Japan, Mexico, Poland, Spain and South Africa.
“This trade mission allowed our Illinois delegation to experience the people, culture and tremendous growth in India first hand, which presents many potential opportunities for Illinois companies to expand. Gov. Blagojevich understands the importance of opening these new doors, and these trade missions and our trade offices will continue to help introduce Illinois companies and organizations to the tremendous opportunities that exist overseas that will put more people to work across the state,” DCEO Director Jack Lavin said.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.