No. ALG/201/1/2017 Date: 25th February, 2018

EMBASSY OF INDIA

ALGIERS

Economic and Commercial Report for the Month of January, 2018

  1. Name of the Country: Algeria
  2. Trade with India:

Value in US$ Million

Bilateral Trade Figures* / 2016 / 2017 / Growth %
Imports from India / 940 815 / 984 957 / 4.69
Exports to India / 480 540 / 861 703 / 79.32
Total / 1421 355 / 1846 660
Trade balance for India / 460 275 / 123 254

*Figures given by the National Center for Information and Statistics, CNIS

  1. Trade Promotional Activities organized in Algeria and activities planned in the next six months :

Trade promotional activities such as India tourism promotion, organization of B2B meetings, Seminars etc in collaboration with Export Promotion Councils of India, will be organized during the year.

  1. Trade and Commercial delegation from India to Algeria during the month of January:

A delegation from the Federation of Indian Export Organisation, FIEO composed of 22 members visited Algeria from 13th to 15th January 2018 and organized in collaboration of this Mission, a Seminar and B2B meetings on 13th January at Hotel Sheraton, Algiers.

The Indian company M/s Shakti Pumps (India) Ltd., visited Algeria during the month of January and met with the Director General of the National Office of Irrigation, Ministry of Water Resources and Drainage. The company made a presentation on solar power pumps.

  1. Important International Trade Fairs/Exhibitions in Algeria in 2018 :

Event / Period / Venue
Algiers Fashion / 25-27 January 2018 / SAFEX, Algiers
Electricity and Renewable Energy Show / 12-15 February 2018 / SAFEX, Algiers
Equip Auto / 26 February-1 March 2018 / SAFEX, Algiers
Secura Fair (Security-Fire-Safety-Cybersecurity) / 27 Febuary-1 March 2018 / SAFEX, Algiers
International Dental Sector Exhibition / 22-24 March 2018 / SAFEX, Algiers
International Medical and Hospital Equipment Fair / 28-31 March 2018 / SAFEX, Algiers
Djazagro (Food Fair) / 9-12 April 2018 / SAFEX, Algiers
International Measurement Equipment Fair / 9-12 April 2018 / SAFEX, Algiers
21st Batimatec Fair (Construction and Construction Material Fair) / 22-26 April 2018 / SAFEX, Algiers
51st Algiers International Trade Fair / 8-13 May 2018 / SAFEX, Algiers
2nd Mining International Fair / 25-27 September 2018 / SAFEX, Algiers
Maghreb Pharma Expo / 25-27 September 2018 / SAFEX, Algiers
21st International Book Fair / 25 October – 3 November 2018 / SAFEX, Algiers
1st International Fair for Chemical Equipment and Services / 19-22 November 2018 / SAFEX, Algiers
3rd Logistic and Transport International Fair / 20-23 November 2018 / SAFEX, Algiers
SIVA BEST 5, Glass and Aluminium Expo / 21-25 November 2018 / SAFEX, Algiers
15th International Public Works Fair / 21-25 November 2018 / SAFEX, Algiers

Please visit the following website for more details on the above events:

  1. Trade, economic and Investment activities in Algeria :

Bilateral:

Contractual documents were signed for the creation of a joint venture between M/s Vijay Electricals Ltd., and Algerian companiesM/s Electro Industries and M/s Sonelgaz, for the manufacture of power transformers up to 300 MVA, 400 kV class in Algeria.

Other countries:

Spain:

An agreement for the exploitation of oil field Rhoude El Krouf in the basin of Berkine, in the province of Ouargla, was signed in Algiers between the Algerian hydrocarbon company Sonatrach, the National Agency for the Valorization of Hydrocarbon Resources, Alnaft and the Spanish group Cepsa for the increase in production of crude oil and to produce LPG for the first time from this deposit.

China:

Five (5) industrial and Port infrastructure projects were selected by the Working Group for joint venture between Algerian & Chinese companies in order to ensure coordination and set up of a cooperation agreement for strengthening the production capacities between Algeria and China. These projects which will be realized in partnership between Algerian public companies and Chinese companies concern the production and commercialization of light trucks (less than 6 tons) with the National Company for the Production of Industrial Vehicles, SNVI, the manufacture of electronic payment terminals with the National Company of Electronic Industries, ENIE, the development and exploitation of marble and granite deposits with the Industrial public group Manadjim El Djazair (MANAL), the exploitation and the development of phosphate deposits and the construction of maritime transport infrastructures.

  1. Analysis of export performance of competing countries during 2017:

India ranks at the 12th position in terms of imports by Algeria. The main exporters to Algeria are mostly China and EU as shown in the table below:

Value in US$ million

Country / Value / % age of total market share / Growth %
China / 8 309 / 18.08 / -1.03
France / 4 295 / 9.95 / -9.46
Italy / 3 754 / 9.17 / -19.12
Germany / 3 215 / 6.99 / 6.84
Spain / 3 128 / 6.81 / -12.99
Turkey / 1 998 / 4.35 / 3.36
USA / 1 816 / 3.95 / -22.45
Republic of Korea / 1 675 / 3.64 / 62.41
Argentina / 1 518 / 3.30 / 13.70
Brazil / 1 374 / 2.99 / 12
Russia / 1 221 / 2.66 / -
India / 983 / 2.14 / 4.69
Netherlands / 702 / 1.53 / 1.15
Belgium / 634 / 1.38 / -
Romania / 623 / 1.36 / 5.56
Other countries / 35 245
Total / 45 957
  1. Global Exports and Imports of Algeria and India’s share for 2017:

Value in million US$

Period / Algeria’s Global Exports / Exports to India / %age of Exports / Algeria’s Global Imports / Imports from India / %age of Imports
2017 / 34 763 / 861 / 2.47 / 45 957 / 984 / 2.14

Top 5 products which were exported from India to Algeria during 2017

Value in US$ million

Commodity / 2017 / 2016 / % age of growth
spare parts for assembly industry / 174 / - / -
chickpeas / 34 / 29 / 17.24
Liquid dielectric transformers, having a power handling capacity > 10.000 kVA / 29 / 31 / -6.45
Groundnuts, shelled, whether or not broken (excl. seed for sowing, roasted or otherwise cooked / 23 / 6 / 283
Boneless, frozen bovine meat / 20 / 40 / -50
  1. Market prospects in respect of major items of Indian exports :

Suspension of import of nearly 900 products from 2018:

To conserve their foreign exchange reserve, in a surprising move, the Government had announced a ban on imports of 851 products with effect from January 2018 under the new foreign tradeframework.

These banned products range from :- dry fruits, cheese (finished products), fresh fruits (except bananas), fresh vegetables (except garlic), meat (with the exception of certain categories such as bovine meat), tuna, maize derivatives, meat preparations, chewing gum, candies and chocolates, pasta, pastries, cereal by-products, preserved vegetables, prepared or preserved tomatoes, jams, jellies, preserved fruits, food preparations, soup and soup preparations, mineral waters, papers, cement, detergents, finished and semi-finished plastic products, sanitary products, marble and granite, toilet paper, carpets, finished ceramics, mirrors and glasses, combine harvesters, plumbing fixtures, wire, furniture, chandeliers, household appliances, furniture and mobile phones.

  1. Trade enquiries from India and Algeria :

The Commercial Section replied to45 enquiries from India and 10from Algeria during the month of January for various products: mainly engineering items, pharmaceuticals, medical equipment, handicrafts, food products, construction materials, IT equipment, and cars spare parts, etc. Algerian businessmen also visited the Embassy for various business and trade information.

  1. Trade complaints received during the month of January:The Commercial Section has taken up

with local authorities regarding trade disputes of following 13 Indian companies, who have not received their payments from their importers in Algeria. These cases are pending between six months to two and a half years. These relates to exports of products like woven bags, ethyl acetate, stainless steel utensils, frozen meat, granites, chickpeas, rice, shrimps, agricultural spare parts, groundnuts etc.

1)M/s Mayur Woovens Pvt. Ltd.

2)M/s Laxmi Organic Industries Ltd

3)M/s Krish Exports

4)M/s Marya Day Agro Foods Pvt. Ltd.

5)M/s Sati Exports India Private Limited

6)M/s Dharamvir Exports Pvt. Ltd.

7)M/s Capsea Food Private Limited

8)M/s Eastman Cast and Forge Limited

9)M/s Laxmichand Dayabhai (Export) Co.Pvt. Ltd.

10)M/s Punjab Agro

11)M/s Varsha Industries Pvt. Ltd.

12)M/s Rinox Engineering

13)VP & Sons

  1. India’s investments in Algeria: No new investment in records.
  1. Status of ongoing major investments by Indian PSU\s/Pvt Sector in Algeria: There are no major investments by PSUs. However, the old investments made by the private companies continue.
  1. Analysis of investment opportunities in Algeria :

A diversification policy initiated:

Algeria is trying to diversify its economy to get out of its complete dependence on hydrocarbons by promoting and developing other sectors with competitive advantages.

To this end, the Government has taken a number of policy measures to promote national investment, to encourage import substitution through offensive sectoral policies aimed at developing the national productive apparatus and promoting its performance, and mobilize substantial financial resources other than those derived from public resources. (Use of public-private partnership and incentives to the private sector for investment).

Establishing a business-friendly environment to support and assist investors and entrepreneurs, as well as the implementation of specific measures to support businesses and strategic industries, are among the priorities of the action plan of the government.

A simplified investment regulatory framework:

The new law on investment offers a unified legal anchor, characterized by better visibility and reduced procedures. It is a device that implements the principle of decentralization of the investment process. This implies local ownership of the investor and private sector participation in the acquisition and development of industrial zones.Towards the processes to improve the business environment, new laws have been enacted to support the company in the post-creation phases. . (Metrology Act, Standardization Act)

Modernization of economic administrations:

The introduction of electronic processing aims to reduce and simplify the completion of formalities related to investment. Administrations involved in the act of investing have improved the services involved in entrepreneurship.

The following web portals aimed at promoting online services is noteworthy :

  • A Web-service allows the dematerialization of formalities necessary for the creation of business is accessible via the site (
  • Free and / or fee-based services were launched by CNRC (National Center for Company Registration) at https // sidjilcom.cnrc.dz
  • Implemented a portal dedicated to tax registration since May 2016 accessible at the address
  • Online electrical connection request for the benefit of small and medium-sized businesses as well as its follow-up by the customer on the site
  • Establishment of an online platform of services to the user of the National Land & Infrastructure Agency (information, recourse). (
  1. Status of trade and investment related issues taken up by the mission with the Government of Algeria:

The mission liaised with the Algerian authorities regarding the visit of FIEO delegation to Algeria (13th-15th January 2018), in order to prepare the organisation of the B2B meeting on 14th January 2018 at Hotel Sheraton.

The mission also informed the concerned Algerian authorities about pendingtrade disputes, thus seeking their assistance to solve the matters.

The mission requested for a meeting with the Ministry of Water Resources for the Indian company M/s Shakti Pumps (India) Ltd.

The mission informed concerned departments about Trade Fairs to be held in India in the ensuing year 2018.

  1. Details and result of meetings and interactions of the Mission with Trade Industry and Economic Ministries/Department/Agencies in Algeria: Same as in para 13 above.
  1. Important policy changes by the Government of Algeria with respect to trade, investment, aid/credit facilities:

Position of Algeria on WTO related issues and issues with respect to other important multilateral fora:

Algeria is still working for its accession to the Organisation.

18. Major international tenders issued: The international tenders are published in the local newspapers. Embassy also subscribed to AlgeriaTenders, which is a web site in which all tenders in different sectors are published. Embassy is kept updated about new tenders everyday.

19. Aid/assistance received by Algeria from other countries/international agencies, funding organizations:NIL

Commercial Section

E/I Algiers

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