LIETUVA-INDIJA GREEN/ECO PREKYBA
लिथुआनिया – इंडिया ग्रीन / पारिस्थितिकी व्यापार
By the Embassy of India, Warsaw
Lithuania’s SEZs offer prospective investors ready-to-build industrial sites with physical and legal infrastructure, support services, and tax incentives. Listed at 24th position in the ‘Ease of Doing Business’ index in 2014, it takes only 3 days to start a company in the country
Lithuania-India bilateral trade increased dramatically in 2013, but in 2014 it waned slightly. India ranks 41st among Lithuania’s trading partners. This indicates there can be a number of opportunities to improve commercial relations between the two countries.
The Green/Eco sector in Lithuania is one of the avenues Indian businessmen are less familiar with.
Laser Technologies is a sector of high technologies in which Lithuania has the lead. No other branch of industry in Lithuania dominates the world markets. Whereas picosecond lasers, created by Lithuanians constitute half the market; femtosecond parametric light amplifies account for as much as 80% of the world market.Today, there are 15 companies creating lasers in Lithuania.
Why is laser manufacturing the priority sphere worth investing in? Lasers have become marketable in seeking to increase efficiency and speed of production processes. For example, this tendency is especially obvious in Japan, where laser technology is sought to tackle consequences of the economic crisis. Therefore, Lithuanian creators of laser technologies have a lot to offer to their partners in India. The annual sale of Lithuanian laser cluster production has come close to EUR 29 million. The annual average growth of the sector accounts for about 20%, and during the past 5 years, sales have increased by as much as 2.4 times.
Ecotourism is something admirable to explore in Lithuania. Numbers show Lithuania remains an undiscovered destination for tourists from India. Nevertheless, Lithuania is a perfect place in which to experience ecotourism due to its rich history, beautiful landscapes, and local opportunities. The government is dedicated to the preservation and conservation of Lithuania’s natural resources, such as the country’s revered national parks. Hence, Lithuania is a great place to travel to, responsibly and ethically. Lithuania’s National Parks are a source of national pride, and they play a significant role in the country’s tourism industry. Altogether, there are five National Parks in Lithuania, each of them having something different to offer, whether it be coastal scenery, sand dunes, lakes, villages, or culture. The country works hard to preserve and conserve the uniqueness of each park. Furthermore, in Lithuania you have a chance to admire three UNESCO World heritage sites: Kernavė — a complex of historical hill forts and an archeological site, nicknamed ‘Lithuanian Troy’; Curonian Spit — a long, thin, curved sand dune spit that separates the Curonian Lagoon from the Baltic Sea coast; Vilnius Old Town— one of the largest medieval old towns in Europe.
Renewable Energy in Lithuania is a developing sector worth attention from foreign investors. Lithuania has very limited energy resources of its own. After the Ignalina National Power Plant’s closure, the country is constantly looking for foreign investments to diversify its energy sector. The share of renewable energy sources in the Lithuanian primary energy supply is low; however the trends of development are positive. The Lithuanian national energy strategy has adopted strategic goals for the Lithuanian energy sector’s development. One of the major strategic priorities is to achieve a share of renewable energy sources in primary energy supply of 23% by 2020. Most of Lithuania’s renewable energy share consists of 87% biomass, which leaves other sectors like Wind Power, Solar Power or Hydroelectricity less developed and open for foreign investments.
Besides the above discussed priority sectors striving for investments in Lithuania, there are several more areas worth looking at. Air pollution is not such a crucial issue in Lithuania as it is in Asia.Though, Kaunas Technology University (KTU) scientists are currently working on the Chinese order and developing the prototype model of a modern air filter, which would be more efficient at cleaning air incoming to buildings from outside.
Organic Production is yet another branch which business people may consider worth investing in. Lithuania has developed a significant branch of organic farms, which are protected and supervised by the highest EU standards. Organic farms yield a variety of organic production, starting with vegetables, dairy products, apiculture products and even organic wine made of local flora. All these products are only developed for the local market and producers of organic products seek export opportunities.
Services & Incentives
If you consider Lithuania as a next destination of your business enlargement you may be interested in what Special Economic Zones have to offer. Lithuania’s seven Free Economic Zones are located in the country’s economic centres and provide unbeatable conditions for developing business by offering ready-to-build industrial sites with physical and/or legal infrastructure, support services, and tax incentives. Businesses choosing to locate to these zones enjoy 0% corporate profit tax during their initial six years of operation, only 7.5% tax over the next 10 years, and no taxes on dividends and real estate.
Having been an independent state for only 25 years, Lithuania has reached the highest standards and enormous economic growth. The country has become the best example of successful economic transition. Lithuania stood 24th in the ‘Ease of Doing Business’, and 11th in the ‘Starting a Business’ index created by the World Bank Group in 2014. Notably, it only takes three days to start a company in Lithuania.
Therefore, undiscovered Lithuania may become the next big opportunity for your business.
0% corporate profit tax during initial 6 years
Only 7.5% tax over next 10 years
No taxes on dividends & real estate
Ready-to-build industrial sites with physical & legal infrastructure
24th rank in Ease of Doing Business index
11th rank in Starting a Business index
Can start company in only 3 days
OPPORTUNITY SECTORS:Laser technologies, Renewable energy, Ecotourism, Organic production
Source: Virginijus Sinkevicius, Research Analyst and Freelance Editor
This article appeared in the April 2015 issue of Pure & Eco India