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INDIA NEWSLETTER Published by the Embassy of India,Vienna Year 2 | Issue 16 | April 2012

Special Report

investment opportunities Industry

INdian textile industry India Newsletter | 1


News

News of interest Snapshot of March Highlights 

GROWTH ESTIMATES

1

The World Bank has revised its economic growth forecast for India during the previous financial year at 6.9 per cent, in line with the advance estimate put out by the Central Statistics Office. This growth estimate is higher than the 6.8 per cent predicted in the World Bank’s global economic prospects report released in February. India’s economy may grow between 7 per cent and 7.5 per cent in 201213, the World Bank said in its latest India Economic Update. This forecast is higher than the 6.8 per cent growth earlier predicted for 2012-13. Indian economy grew 8.4 per cent in 2010-11. The economic growth was impacted by the spate of policy rate hikes undertaken by the central bank since March 2010 to stem inflation. The increased interest cost had severely impacted corporate investments. 

FOREIGN TRADE 

2

Exports grew by 4.3% year-on-year to $24.6 billion, while imports increased by 20.6% in February, Commerce Secretary Rahul Khullar said. Imports stood at $39.8 billion in February 2012, resulting in a trade deficit of $15.2 billion. During April 2011-February 2012, the country’s exports increased by 21.4% to $267.4 billion. Imports grew by 29.4% to $434.2 billion during the 11-month period, taking the trade deficit to $166.8 billion. “We are getting a growth rate of 20%. It looks like you’ll get around $300 billion [by the fiscal end],” Khullar told. 

INDUSTRIAL GROWTH

3

Describing 6.8% industrial growth in January as an indication of strong recovery, Finance Minister Pranab Mukherjee said efforts will have to be made for promoting mining, capital goods and consumer durables sectors. “It (Index of Industrial Production-IIP) is 6.8 per in January. There is strong recovery in the backdrop of last December’s figure where IIP grew by 2.8%”, he said, while commenting on the latest data of industrial production. “The sectoral analysis of the data,” Mukherjee said, “show there is not much progress in capital goods, which is a matter of concern. Consumer non-durable had contributed substantially in this growth, but not so much in consumer durables. In course of time, efforts will have to be made to build up 2 | India Newsletter

these areas.” The mining sector, he added, too has not done well and has reported contraction of 2.7% in January. However, he said, “There is strong revival in growth rate of manufacturing sector at 8.5% in January 2012.” According to the data, industrial production grew 6.8% in January, mainly due to improvement in the manufacturing sector. Output of the sector, which constitutes over 75% of the index, rose 8.5% in January, compared to 8.1% in the same month last year. 

FDI

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Despite a gloomy global outlook, foreign direct investment (FDI) clocked a 31 per cent growth to $27.5 billion during January-December 2011 period. FDI inflows for January-December 2010 stood at $21 billion. Services still attracted largest chunk of FDI inflows at 20 per cent. This was followed by telecom, housing and real estate, and construction and power among others, a Department of Industrial Policy and Promotion data said. Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India. Mumbai attracted the maximum inflow accounting for as much as 40 per cent of the total share of the FDI, followed closely by Delhi-NCR region, Bangalore and Ahmedabad. FDI inflows totalled $19.42 billion in 2010-11 financial year, down from $25.83 billion in 2009-10. Official sources said that the Government’s move to liberalise foreign direct investment polices has been instrumental in sending positive signals. Some of the norms that have been tweaked in the past include 100 per cent investment in single brand retail besides easing norms in share pledging for external commercial borrowings. 

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POWER 

Hinduja Energy India has formed a joint venture with Steag Energy Services (India) for operation and maintenance of power projects. Hinduja Energy is part of the Hinduja Group. Steag Energy is a subsidiary of German energy major Steag GmbH and is the fifth largest electricity producer in Germany. It operates 11 power plants. Its total installed capacity is about 9,400 MW worldwide, including 7,700 MW in Germany. In 2010, Steag’s sales revenue totalled €2.8 billion.

A statement from the Hindujas said the joint venture will operate the Visakhapatnam plant of Hinduja National Power Corporation Ltd (HNPCL). The 1040MW coal-based plant is expected to be commissioned in 2013.The venture will also take up operation and maintenance of new power projects. Mr A. K. Puri, Managing Director, HNPCL, said the joint venture for O&M will have a major role ahead, given the projected double-digit growth in aggregate power generation in the country. The Hinduja Group plans to build 10,000 MW of generating assets over 7-8 years at an investment of $1214 billion. 

AUTOMOTIVE

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Nissan wants to expand its portfolio of luxury cars in India and plans to launch its premium car brand Infiniti. The entry of Infiniti will further drive up competition in the luxury car space with Toyota also drawing up plans to get the Lexus. “The market for luxury in India is growing and the company is looking at ways to enter. Infiniti is our global brand and our intention is to cover the world, including India,” Andy Palmer, V-P at Nissan Motor Co, said. Nissan wants to assemble the brand in India, rather than importing the cars as completely-built units (CBUs). “To be competitive with manufacturers like Mercedes Benz and BMW, which are producing somewhat locally and escape high import duty” Sales of luxury cars have been riding high in India on a lower base and increasing wealth. Mercedes, BMW, Audi and Jaguar Land Rover have been boosting their presence and production in the market, estimated at around 30,000 units annually.

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Driven by the robust demand for diesel vehicles in the Indian market, the US-based auto major, General Motors, is working on developing diesel engines for the range of vehicles lined up for launch in the country. The capability for which will then find its way to other dieselintensive markets globally. The company, which has already introduced a diesel version of small car Beat in mid-2011, is looking at introducing diesel variants of premium hatchback Sail and the new multi-purpose vehicle later in the year. The diesel engine technology for these vehicles has been developed by the car maker in India, and will later be made


News available to markets in North and South Africa to begin with. 

PHARMACEUTICALS

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Ranbaxy Laboratories Ltd announced that it has launched the generic versions of Atorvastatin tablets in Italy, Sweden and the Netherlands. This is in line with its settlement agreement with Pfizer whereby Ranbaxy had got permission to launch the product ahead of the applicable patent expiries. Pfizer’s patent expires in Italy on May 8 and in the Netherlands and Sweden on May 06. Atorvastatin, a cholesterol reducing drug, is the largest selling pharmaceutical product in Italy with sales of $377 million. The market size for Atorvastatin in the Netherlands is $164.4 million and in Sweden $55 million and is the largest selling Statin product in these two markets.

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Bio-pharmaceutical and health science sector representatives from the UK are to explore and expand partnerships with Indian companies. Mr Ian Felton, British Deputy High Commissioner, Bangalore, said: “The UK-India Innovation and Leadership Meeting will be held at IIM, Bangalore, on March 5 and 6 to encourage IP-protected research and innovation in health science, explore entrepreneurial opportunities.” “The visiting UK delegation is here to sign up a memorandum of understanding (MoU) with Indian counterparts to formalise their existing and fruitful science relationship,” he added. UK representatives include Kings College London, Research Councils UK (RCUK), UK-India Business Council (UKIBC), Wellcome Trust, BioCity Nottingham and the University of Nottingham. British companies attending include Critical Pharmaceuticals, UK, with a pipeline of novel biological products, Proxima Concepts, UK, offering oral delivery of peptides and proteins and technology for drug discovery, PGXis UK that is a genomics technology firm and Inception Associates UK that helps Indian firms in the sector, set up in the UK. 

10

INTERNATIONAL

India has signed a tax information exchange agreement with Argentina. This is the tenth such pact in the past three years. This pact with Argentina would enable Indian tax authorities to obtain specific information, including banking related, on tax evasion cases. The other such pacts signed by India are with the Bahamas, Bermuda, British Vir-

gin Islands, Cayman Islands, Jersey, Isle of Man, Guernsey, Liberia and Macau. The tax pacts with Argentina, Jersey, Guernsey, Liberia and Macau have not yet entered into force, the Finance Minister, Mr Pranab Mukherjee told the Lok Sabha in a written reply. India has also entered into new double taxation avoidance agreements with Colombia, Ethiopia, Lithuania, Uruguay and Estonia. These, too, have not yet entered into force, Mr Mukherjee said. He said that India had renegotiated double taxation avoidance pacts with Australia, Nepal and Norway, but all these had not come into force.

11

India has invited the Italian industry to be a partner in the proposed National Manufacturing and Investment Zones (NMIZ). “A consortium of industry from Italy can become a partner in at least one of the NMIZs,” said the Commerce, Industry and Textiles Minister, Mr Anand Sharma. Mr Sharma, who held a meeting with the visiting Italian Foreign Minister, Mr Guilio Terzi di Sant’ Agata also said the Joint Working Groups (JWG) should prepare their recommendation for the India-Italy Joint Economic Commission meeting in June. India and Italy have five JWGs on infrastructure, manufacturing, innovation and science, information technology and pharmaceuticals. Both sides are considering more JWGs including on tourism, hospitality and agro-processing.

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Many US companies and businesses are keen to invest in India, particularly in infrastructure, energy and healthcare sectors, a top US diplomat said. “Since incredible growth has been happening in Indian Tier II and III cities like Coimbatore, the US wants to expand bilateral economic ties with India through business relations between the companies,” Judy Reinke, Minister Counsellor for Commercial Affairs, US Embassy, Delhi, told.

13

Canada wants to collaborate with Andhra Pradesh in the manufacturing sector. It has identified chemical based and food processing in particular, said its High Commissioner in India, Mr Steward Beck. The other areas of interest are power, infrastructure and education, he told the State Minister for Major Industries, Ms J. Geetha Reddy, whom he met along with his Trade Commissioner, Mr Vikram Jain at Hyderabad. He invited the Minister to lead a delegation of industry to Canada to explore new avenues

for trade and other business collaborations between the two countries.

14

India and Africa have agreed to raise their bilateral trade target to $90 billion by 2015 from $70 billion set earlier. This follows bilateral trade reaching $60 billion last year.“A 20-fold growth within a decade is indeed an achievement worth applauding. I propose that given the current growth rate, we may agree to revise the trade target to $90 billion by 2015,” said the Union Commerce, Industry and Textiles Minister, Mr Anand Sharma, during the second meeting of the India-Africa Trade Ministers. They also launched the India-Africa Business Council (IABC), which will be co-chaired by Mr Sunil Bharti Mittal, Chairman, Bharti Group, from India’s side and Mr Alhaji Aliko Dangote, President and Chief Executive, Dangote Group, Nigeria, from African side. The core sectors of co-operation will be agriculture, manufacturing, pharmaceuticals, textiles, mining, petroleum and natural gas, IT/ITeS, gems and jewellery, financial services (including microfinance), energy, roads and railways. 

EDUCATION

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Giving a thrust to cross-border understanding of capital markets, BSE Institute, a subsidiary of the Bombay Stock Exchange, on Wednesday signed a Memorandum of Understanding (MoU) with the Frankfurt School of Finance & Management. Under the MoU, students of the two institutes would get greater insights into global markets through exchange programmes and joint courses, a company release said. The programmes will start in the academic year 2012-13. The institutes are also planning joint programmes for senior executives.

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The Indian Institute of Management Kozhikode (IIM-K) has signed an agreement of co-operation with Leeds University Business School, UK. The agreement is another step in the internationalisation efforts of the institute and it will enable both the institutions to carry out activities such as exchange of students, exchange of faculty members and collaborative research on contemporary management issues. India Newsletter | 3


News

INDIA-AUSTRIA BILATERAL trade report sitc

January-December 2011 Report

INDIA’S EXPORT TO AUSTRIA (in €)

INDIA’AS IMPORT FROM AUSTRIA (in €)

ITEM

2010

2011

Change

% of Total

2010

2011

Change

% of Total

0

Food And Live Animals

19,201,239

24,862,288

29.48%

4.45%

2,001,118

459,982

-77.01%

0.06%

1

Beverages And Tobacco

999,751

626,655

-37.32%

0.11%

3,748,938

3,990,402

6.44%

0.49%

2

Crude Materials, Inedible

7,848,018

10,292,270

31.14%

1.84%

18,293,488

27,244,207

48.93%

3.33%

3

Min. Fuels, Lubricants And Rel. Mat.

1,026

8,834

761.01%

0.00%

27,573

76,669

178.06%

0.01%

4

Anim./Veget. Oils, Fats And Waxes

40,732

247,902

508.62%

0.04%

26

764

2838.46%

0.00%

5

Chemicals And Related Product

65,658,928

63,623,014

-3.10%

11.39%

71,141,005

63,172,281

-11.20%

7.73%

Organic Chemicals

19,505,417

11,008,725

-43.56%

1.97%

35,355,511

28,479,037

-19.45%

3.48%

Medicinal And Pharmac. Products

36,960,157

42,392,042

14.70%

7.59%

12,931,672

12,123,119

-6.25%

1.48%

82,338,600

105,580,728

28.23%

18.90%

170,722,268

272,491,932

59.61%

33.32%

51 54 6

Manufactured Goods By Material

65

Textile Yarn And Fabrics

39,232,026

46,572,310

18.71%

8.34%

3,960,150

4,471,298

12.91%

0.55%

66

Nonmetallic Mineral Manufactures

16,391,714

20,401,409

24.46%

3.65%

36,091,301

40,363,151

11.84%

4.94%

67

Iron And Steel

4,908,553

8,115,848

65.34%

1.45%

82,249,667

164,212,441

99.65%

20.08%

69

Other Metal Goods

13,586,798

19,137,967

40.86%

3.43%

21,742,557

36,869,403

69.57%

4.51%

127,088,606

148,862,906

17.13%

26.64%

327,491,799

371,257,455

13.36%

45.40%

7

Machinery And Transport Equipment

71

Power Generating Mac. And Equip.

9,041,648

15,238,406

68.54%

2.73%

42,866,480

57,068,666

33.13%

6.98%

74

General Ind. Mach. And Equip.

19,005,149

24,411,107

28.44%

4.37%

66,126,350

78,822,689

19.20%

9.64%

77

Electrical Machinery

39,345,621

47,029,255

19.53%

8.42%

59,272,781

72,881,631

22.96%

8.91%

78

Road Vehicles

47,930,442

51,344,497

7.12%

9.19%

47,930,442

51,344,497

7.12%

6.28%

8

Miscellaneous Manufactured Articles

180,282,127

204,615,949

13.50%

36.62%

61,432,006

79,050,826

28.68%

9.67%

84

Apparel And Clothing Accessories

107,758,251

119,763,688

11.14%

21.44%

185,817

178,025

-4.19%

0.02%

85

Footwear

41,394,167

53,892,450

30.19%

9.65%

41,560

81,733

96.66%

0.01%

87

Scientific And Controlling Instr.

2,157,069

3,226,499

49.58%

0.58%

31,530,469

43,676,855

38.52%

5.34%

Non-Classified Commodities

608

-

-

-

8,781

4,867

-44.57%

0.00%

TOTAL

483,459,635

558,720,546

654,867,002

817,749,385

9

I

ndia’s exports to Austria remain on a constant growth path. After managing to maintain a subtle but still positive mark through the crisis year, exports have regained momentum and registered an increase by 15.6% year-on-year in 2011, with total export volume crossing the half-billion mark for the first time and amounting €558.72 million. This result means an increase by 210% in Indian exports to Austria in the decade 20022011. As far as India’s imports from Austria are concerned, trade has continued to prosper. In fact, a significant jump has been observed in the last two years following the crisis year. In 2011, India imported a volume of €817.74 million from Austria, marking a jump by 24.9% yearon-year and by 45% based on crisis-year levels. Imports mark an increase by 320% in the decade 2002-2011. Both Indian exports to Austria and Indian imports from Austria are found to be on a positive trend with large perspectives of further booms in the upcoming future given the observation of real opportunities in bilateral trade for both countries. 4 | India Newsletter

EXPORTS On the exports side, India’s exports to Austria in 2011 are mainly characterized by “Textile Yarn, Fabrics And Made-Up Articles”(+18.7% y-o-y), “Articles Of Apparel And Clothing Accessories”(+11.1% y-o-y) and “Footwear”(+30.2% y-o-y), all of each account for approximately 40% of Indian exports to Austria. Following these, “Machinery and Transport Equipment” (+17.1% y-o-y) account for 26.6% of total exports: “Electrical Machinery”(+19.5% y-o-y) and “Road Vehicles”(+7.1% y-o-y). Attention must be given to the export volume of “Chemicals and Related products” (-3.1% y-o-y), which has decreased for the first time in years. The drop has been mainly pushed by -43.6% drop in exports of organic chemicals. This deserves special attention. Such a contraction was not observed even during crisis years. In fact, the average rate of growth in exports of “Chemicals and Related Products” for the previous four periods was approximately 23% p.a. IMPORTS

As far as India’s imports from Austria are concerned, they are mainly characterized by “Machinery and Equipment”(+13.4 yo-y), which account for 45.4% of total imports. This category is evenly made up of “Power Generating Mach. And Equip.”(+33.1% y-o-y), “General Industrial Mach. And Equip.”(+19.2% y-o-y), “Electrical Machinery”(+23% y-o-y) and “Road Vehicles”(+7.1% y-o-y). Following these, “Manufactured Goods by Material”(+59.6% y-o-y) currently experiences a boom given by accelerated growth in imports of “Iron and Steel” (+99.7% yo-y) and “Other Metal Goods” (+69.6% y-o-y), both of which already contribute to 25% of total imports, and therefore surpass both its pre-crisis marks and growth rates. Similar to the results in Exports, “Chemicals and Related Products” (-11.2% y-o-y) registered a decrease, also heavily given by the drop in imports of “Organic Chemicals” (-19.4% y-o-y).


Articles

Economic Survey 2011-12

A report card of the Indian economic scenario

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he Economy Survey 2011-12 was tabled by the Finance Minister Pranab Mukherjee in the Parliament. Following are the highlights of Survey, a report card of the Indian economic scenario for current fiscal:

• Inflation high, but showing clear

• The country’s economic growth es-

growing economies of the world; Country’s sovereign credit rating rose by a substantial 2.98 per cent 2007-12.

timated at 6.9 per cent in the current fiscal; growth momentum to pick up in next two fiscals to 7.6 per cent 2012-13 and 8.6 per cent in 2013-14.

• RBI expected to lower policy inter-

est rates, as inflationary pressures expected to ease in coming months; a low interest rate regime to encourage investment activity and push forward economic growth.

• Steps required for deepening of do-

signs of slowdown by the year-end; Whole-sale food inflation down to 1.6 per cent in January 2012 from 20.2 per cent in February 2010.

• India remains one of the fastest

• Exports grew by 40.5 per cent in the

first half of this fiscal and imports grew by 30.4 per cent; Foreign trade performance to remain key driver of growth.

• Forex reserves expanded further, covering almost the entire external debt stock to the country.

mestic financial markets, especially corporate bond market and attracting longer-term inflows from abroad; Efforts at attracting dedicated infrastructure funds have begun.

• Foodgrains production likely to

• The growth rate of investment in the

economy is estimated to have declined; borrowing costs up due to a sharp increase in interest rates.

expected to perform well; Industrial growth pegged at 4-5 per cent and improve further as economic recovery resumes.

• High borrowing costs and increase

• Global economy remains fragile and

in other costs affecting profitability and internal accruals.

• Slowdown in Indian economy largely

due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.

cross 250.42 million tonnes; largely on back of increase in rice production.

• Agriculture and Services sectors

concerted efforts needed to restore stability and renewed growth; Steps needed for sovereign debt crisis, financial regulation, growth and job creation efforts and energy security, globally.

• India much more closely integrated with world economy’ share of trade

to GDP of goods and services has tripled between 1990-2010.

• A progressive deregulation of interest rates on savings accounts to help raise financial savings and improve transmission of monetary policy.

• Sustainable development and climate change becoming central areas of global concern and India too is equally concerned and engaged constructively in global negotiations.

• FDI in multi-brand retail can come into effect in a “phased” manner, beginning from metropolitan cities. The survey said that allowing foreign direct investment in multi-brand retail is one of the major issues in the services sector, but the move would address problems relating to food inflation.

• Notwithstanding lower growth of domestic steel consumption during the first three quarters of the current fiscal, the overall performance of the sector is “optimistic”. The survey points out a list of bottlenecks responsible for lower steel consumption, including high inflationary pressure within, deteriorating global economy, multiple hikes in interest rates by the Reserve Bank of India

WORLD’S LARGEST

Mundra Power Plant emerges as the world’s largest private power plant

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dani Power has synchronised the fifth unit of the Mundra power plant, taking its total generating capacity to 4,620 mega watt (MW), making it the world’s largest single location coal-fired plant in the private sector and the fifth largest globally.

“When we started executing the power plant, our name didn’t figure in Planning Commission’s 2007-2012 five year plan period and now we contribute 10% of the planned target,” according to Ravi Sharma, CEO, power business, Adani Power.

Adani ventured into power generation in 2009-10 and its current capacity is 15 per cent more than the ultra mega power projects (UMPPs) being executed by Reliance Power and Tata Power in states of Gujarat, Madhya Pradesh (MP), Andhra Pradesh (AP) and Jharkhand.

The company has signed long-term power purchase agreement (PPA) with Gujarat and Haryana for sale of 80 per cent of its capacity while the remaining 20 per cent the company intends to sell at merchant basis.

missioning of 3,300 MW at Tiroda and another 1,320 MW at Kawai by March 31, 2013.The company intends to reach a capacity of 20,000 MW by 2020.

Adani Power intends to complete comIndia Newsletter | 5


Articles

TATA STEEL TOPS LIST OF MOST ADMIRED COMPANIES

Tata Steel topped the list of India’s 50 most-admired companies in a survey compiled by Fortune India

T

he list of admired companies was prepared on the basis of a survey of 507 executives across 291 companies. The survey was carried out between October 2011 and January 2012. Various factors, including corporate governance, financial soundness, leadership, talent management and corporate social responsibility were taken into consideration for the rankings. To compile the list, 15 industries were selected on the basis of size, contribution to gross domestic product, growth rate and national presence, among others. Mr H. M. Nerurkar, Managing Director, Tata Steel, said the company’s primary business purpose was to improve peo-

ple’s quality of life. This was the standard that had guided Tata Steel in all its activities for over a hundred years, Mr Nerurkar said. “We are consistent in our pursuit of improvements in key areas that impact our business — innovation, talent management and, most importantly, community development,” he said.

with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel group of companies registered a turnover of $26.64 billion in FY2011.It employs over 81,000 people across five continents.

Established in 1907 as Asia’s first integrated private sector steel company, Tata Steel group of companies is among the world’s leading steel manufacturers, with an annual crude steel capacity of over 27 million tonnes per year. It is now the world’s second-most geographically-diversified steel producer,

Tata Steel, Wipro among world’s most ethical firms

Tata Steel and Wipro are listed among the world’s most ethical companies by think thank Ethisphere Institute

T

he Ethisphere Institute’s annual World’s Most Ethical Companies (WME) list revealed that 145 companies in countries including the US, Great Britain, Japan, Portugal and India stood out for setting high standards of employee behaviour and conduct. Ethisphere evaluated about 5,000 global companies, including those in Standard & Poor’s 500 index on reputation, corporate citizenship, culture and other qualities. Ethisphere’s annual list of the WME recognises companies that truly go beyond making statements and conduct business

ethically by translating words into actions. Mr H.M. Nerurkar, Managing Director, Tata Steel, said ethical business principles and practices have been the key differentiators of Tata Group and Tata Steel since inception. In 1998, the Tata Group developed its first Code of Conduct, which was articulation of its values and business principles followed by its employees since the inception of the group and the company, Tata Steel said in a press release. The process for implementation of Tata

Code of Conduct in the company involves engagement with different global partners of the company including Corus, NatSteel and other companies. The revised version of the Code, Global Tata Code of Conduct, was launched by the Group’s Chairman in 2008, it said. The research-based Ethisphere Institute is a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anticorruption and sustainability.

TATA POWER IS LARGEST PRIVATE POWER PRODUCER The company has a total power generation capacity of 5,297 Mw

T

ata Power in March synchronised the second unit of its Maithon power project in Jharkhand. With this 525 megawatt (Mw) unit, the company has a total power generation capacity of 5,297 Mw, making it the country’s largest private sector power generating firm. The Maithon project’s first unit was commissioned in September 2011. It is a 74:26 joint venture between Tata Power and Damodar Valley Corporation. “The synchronisation of Maithon unit-2 today is a significant milestone. This development

6 | India Newsletter

reaffirmed Tata Power’s contribution as the largest integrated power company in India,” said Anil Sardana, managing director, Tata Power in a statement.

clean generation capacity of 850 Mw

Ten days earlier, the company commissioned the first unit of India’s first ultra mega power project in Mundra, Gujarat.

in terms of capacity with private power

The 800-Mw unit was synchronised in mid-January and achieved full load in late February. With Mundra and Maithon, Tata Power has a gross thermal power generating capacity of 4,447 Mw, and a

from renewable sources. The company added 1,300 Mw in gross capacity this quarter. Lanco Infratech comes second sector companies, and has an operational capacity of 4,388 Mw and Adani Power has 3,330 Mw of capacity. Reliance Power which has plans to add 24,000 Mw of capacity, plans to bring their capacity to 5,000 Mw already by December this year.


Articles

Conquering the Indian market from Vienna Indian Expo Display Service based in Vienna

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any suppliers from Austria are reluctant to face the effort of exhibiting in India. However, by choosing the right partner, the work involved can be reduced to a minimum. Expo Display Service is not only a leading supplier of flexible, modular exhibition solutions and mobile display systems. Based in Vienna, the company also belongs to the Insta Worldwide Group, a worldwide network of exhibition service providers that is managed from India and in which members collaborate on a tightly interlinked basis. In this way, Expo Display Systems succeeds in working from its offices in Vienna for exhibitions in India with the group

member Insta Exhibitions in Mumbai – whose services and local networks are made fully available to Austrian customers. The advantages are clearly evident. Customers enjoy the comfort of efficient advisory services in Vienna – and can place everything else in the hands of the international exhibition professionals. Expo Display Service produces and finishes the practical, collapsible exhibition stands plus accessories according to customer specifications. Thanks to international experience and a local contact network, all the material required is transported safely and punctually, and is assembled and disassembled at the exhibition site by specialist staff hired by the partner company.

In this way, exhibiters not only spare their budgets and nerves – but thanks to Expo Display Service’s many years of experience in over 30 countries, they are free to concentrate on what is most essential: successfully presenting their products and services in currently one of the most dynamic markets: INDIA! The contact information of the Indian Expo Display Service in Austria is: Expo Display Service GmbH Floridotower (Zentrale & Schauraum) Floridsdorfer Hauptstr. 1, 1210 Wien 0043 (0) 1 270 60 50 info@expodisplayservice.de www.expodisplayservice.at

India Newsletter | 7


Articles

INVESTMENT OPPORTUNITIES IN INDIA An overview and profile of the main sectors

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hanks to a growing economy and sustained growth rate, India has created tremendous investment opportunities in various sectors. We begin by looking at the broad policy framework that will shape how these opportunities can be utilised. Further, there is sector-specific analysis of these possibilities, in a scope-document format for potential investors. Investment Policy An objective of the Government of India is to attract foreign investment for growth and development. India has evolved a liberal and transparent policy on foreign direct investment (FDI).The liberal investment regime is complemented by a moderate and stable tax regime. Tax holidays and other such special incentives are available for investment in certain sectors like infrastructural projects. A single window facility in the form of a Foreign Investment Promotion Board (FIPB) has been made available to foreign investors seeking approval for investment proposals. India already has in place a stable investment policy with a long-tenn perspective, which has boosted the confidence of foreign investors in India’s investment policy. India’s FDI policy has been progressively liberalised and rationalised since 1991 by raising sector-specific investment caps, bringing more industries under the automatic route and allowing FDI in more sectors. In 2000, the Government allowed FDI up to 100 percent under the automatic route for most sectors except for a few. Further liberalisation took place in 2008, when the Government allowed FDI in most sectors of the economy, either through the Government approval route or the automatic route via the Reserve Bank of India (RBI).This included allowing the raising of FDI caps in the civil aviation sector and rationalisation of FDI policy in the petroleum and natural gas sectors. Since 31 March 2010, the Department of Industrial Policy and Promotion has been publishing a bi annual consolidated FDI policy circular, integrating all regulations pertaining to FDI policy. Investment Overview Recent reports show that India’s infrastructure financing requirements and the new manufacturing policy will open

8 | India Newsletter

up US$ I trillion worth of opportunities for global investors in the next five years. This was stated by Economic Affairs Secretary R. Gopalan at a panel discussion on ‘Innovative Approaches to Financing our Infrastructure Needs’, organised by the Confederation of lndian Industry (Cll) and Brookings Institution in June 2011. India plans to invest $1 trillion on infrastructure, which is critical for sustaining high economic growth. The Government is in the final stages of formulating a manufacturing policy to increase the share ofmanufacturing to 25 percent of the GDP, up from the current level of about 16-17 percent. Besides simplifying the process of doing business in India, the Government is also contemplating tax sops for investors in the proposed policy. With India’s economy continuing its rapid growth, the Diversified Industrial sector is well-positioned to benefit. Significant market potential for consumer and industrial products, abundant skilled workforce, including established presence in key markets like manufacturing and steel, have propelled India-based companies to global leadership positions. India continues to be the hub for not only outsourcing, but also value innovation in areas like engineering and design. India’s industrial manufacturing sector is an important element of the economy with the world’s second largest petrochemical facility; the world’s lowest cost steel producer; and one of the top manufacturers of vehicles in almost every single category.

Energy Sector The Ministry of Power signed an MOU with the International Energy Agency (lEA) in April 1998 for cooperation in the power sector. India is one ofthe few non-member countries of the lEA and cooperation focuses on the following key areas: Energy information and statistics; Energy supply security; Energy efficiency; Energy & Environment; Energy Pricing, etc. There has been close interaction with the lEA ever since, jointly organising a number of events including workshop on Coal and Electricity, Standards and Labelling, Energy efficiency, and Building codes. India is also working with the lEA to put the case across for treatment of hydro power projects, irrespective of their size. Despite the recognition that gas is an environmentally benign source of energy, its availability at the right price has been the key issue which has acted as a deterrent for the power sector in setting up ambitious gas based power projects. To track the developments in the international gas markets, the TEA is expected to draw out various scenarios and projections for availability of gas. Software Industry The reason why India attracts so many investors in this sector besides capability is due to the fact that most software companies in the country are Capability Maturity Model (CMM) certified. The

An objective of the Government of India is to attract FDI for growth and development. India has evolved a liberal and transparent policy on FDI. The liberal investment regime is complemented by a moderate and stable tax regime”


Articles Business Process Outsourcing (BPO) and the Knowledge Process Outsourcing (KPO) are two sectors enjoying a fast paced growth rate. It is estimated by NASSCOM that by year-end 2012, the BPO industry alone will reach a value of US$30 billion. The KPO industry is following suit and it is predicted that it will reach the figure of US$ I0 billion by year end 2012. Education The Indian Education industry is another sector poised for rapid growth. There are many private players in this field now, and the Government is making sure that the quality of education and supplies pro-

vided by them are good. The main reason why education is a thriving industry in India is evident: 50 percent of the Indian population comprises the youth; and there are 367 universities in the country and nearly 18,000 colleges. Many international schools are entering this sector every year. Food Processing The food processing industry is one of the most important sectors in India since it bridges the gap between agriculture and industry. It is among the largest in the world and enjoys patronage from the Government as well as private players and even cooperative sectors. There are

also stringent rules and government bodies have been established to see that the industry functions as it should. Even the Government ensures steady investment in this sector by introducing various changes in the ‘National Food Processing Policy’. Conclusion Overall, the investment climate in Tndia is good and steadily improving to accommodate more sectors and players. The high growth rate of India’s economy and well-positioned policies also ensure that FDI is channelled in the right direction, benefiting both investors and consumers across the board.

Foreign direct investment FDI norms for Indians relaxed

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he Reserve Bank of India (RBI) on Wednesday announced a slew of revisions aimed at liberalising the norms for direct investment abroad by Indian residents. These include liberalisation in regulations on qualification shares, professional services rendered and Esop (employee stock option plan) schemes. The central bank has removed the cap of one per cent on resident individuals acquiring qualification shares for holding the post of a director in a foreign company. “Accordingly, remittance shall be allowed from resident individuals for acquiring the qualification shares for holding the post of a director in a foreign company to the extent prescribed in the law of the host country where it is lo-

cated,” said the RBI notification. It has also decided to grant general permission to resident individuals to acquire shares of a foreign entity in part or full consideration for professional services rendered to the foreign company or in lieu of a director’s remuneration. And, Indian resident employees or directors have been permitted to accept shares offered under an Esop scheme globally, on a uniform basis, in a foreign company irrespective of the percentage of the direct or indirect equity stake. Earlier, the facility was subject to equity holding of not less than 51 per cent. However, shares under the Esop scheme should be offered by the issuing company

globally on a uniform basis and the annual return filed by the Indian company to RBI through the authorised dealer categoryI bank, giving details of remittances and beneficiaries. RBI also announced several modifications to ease the process of direct investments abroad.“It has been decided that issuance of personal guarantee by the promoters of the Indian party as presently allowed under the general permission shall also be extended to the indirect resident individual promoters of the Indian party, with the same stipulations as in the case of personal guarantee by the direct promoters,” it said. India Newsletter | 9


Industry

textiles

Indian Industry Sector Close-Up

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he Indian textile industry is one of the major sectors of Indian economy largely contributing towards the growth of the country’s industrial sector. Textiles sector contributes to 14 per cent of industrial production, 4 per cent of National GDP and 10.63 per cent of country’s export earnings. The opening up of the sector through liberalisation polices set up by the Indian Government has given the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.Textile sector in India provides direct employment to over 35 million people and holds the second position after the agriculture sector in providing employment to the masses. Growing at a rapid pace, the Indian Market is being flocked by foreign investors exploring investment purposes and with an increasing trend in the demand for the textile products in the country, a number of new companies and joint ventures are being set up in the country to capture new opportunities in the market. Growth Trends The Indian textile industry can be divided into a number of segments such as cotton, silk, woolen, readymade, jute and handicraft. The total cloth production registered during September 2010 was 10.2 per cent higher than that registered for September 2009. The total production of cloth during April – September 2010 increased by 2.1 per cent as compared to the same period of 2009. The highest growth was observed in the power loom sector (13.2 per cent), followed by hosiery sector (9.1 per cent). The total textile exports during AprilJuly 2010 (provisional) were valued at US$ 7.58 billion as against US$ 7.21 billion during the corresponding period of the previous year.The share of textile exports in total exports was 11.04 per cent during April-July 2010. Cotton textiles has registered a growth of 8.2 per cent during April-September 2010 -11, whilewool, silk and man-made fibre textiles have registered a growth of 2.2 per cent while textile products including apparel have registered a growth of 3 per cent. Textiles and apparel industry exports, valued at US$ 20.02 billion, contributed about 11.5 per cent to the country’s total

10 | India Newsletter

exports in 2008–09.The total textiles imports into India in 2008–09 were valued at US$ 3.33 billion. The total foreign exchange earnings from the textile exports during the period April-July 2011 was registered at US$ 10.32 billion as against US$ 7.75 billion during the corresponding period of financial year 2010-11. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by the end of the year 2020. The Textile sector grew at 3-4 per cent during the last 6 decades. As per the 11th Five Year Plan (FYP), it was projected to fast-track to a growth rate of 16 per cent in value and is further expected to reach US$ 115 billion (exports US$ 55 billion and domestic market US$ 60 billion) by 2012. Exports are likely to reach US$ 32 billion in 2011-12 and domestic market US$ 55 billion. Government Initiatives The Government of India has promoted a number of export promotion policies for the Textile sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. This also includes the various incentives under Focus Market Scheme and Focus Product Scheme; broad basing the coverage of Market Linked Focus Product Scheme for textile products and extension of Market Linked Focus Product Scheme etc. to increase the Indian

shares in the global trade of textiles and clothing. The various schemes and promotions by the Government of India are as follows Welfare Schemes: The Government has offered health insurance coverage and life insurance coverage to 161.10 million weavers and ancillary workers under the Handloom Weavers’ Comprehensive Welfare Scheme, while 733,000 artisans were provided health coverage under the Rajiv Gandhi Shilpi Swasthya Bima Yojna. E-Marketing: The Central Cottage Industries Corporation of India (CCIC), and the Handicrafts and Handlooms Export Corporation of India (HHEC) have developed a number of e-marketing platforms to simplify marketing issues. Also, a number of marketing initiatives have been taken up to promote niche handloom and handicraft products with the help of 600 events all over the country. Skill Development: As per the 12th FYP, the Integrated Skill Development Scheme aims to train over 2,675,000 people within the next 5 years (this would cover over 270,000 people during the first two years and the rest during the remaining three years).This scheme would cover all sub sectors of the textile sector such as Textiles and Apparel; Handicrafts; Handlooms; Jute; and Sericulture. Credit Linkages: As per the Credit Guarantee program, over 25,000 Artisan Credit Cards have been supplied to artisans, and 16.50 million additional appli-


Industry cations for issuing up credit cards have been forwarded to banks for further consideration with regards to the Credit Linkage scheme. Financial package for waiver of overdues: The Government of India has announced a package of US$ 604.56 million to waive of overdue loans in the handloom sector. This also includes the waiver of overdue loans and interest till 31st March, 2010, for loans disbursed to handloom sector. This is expected to benefit at least 300,000 handloom weavers of the industry and 15,000 cooperative societies. Textiles Parks: The Indian Government has given approval to 21 new Textiles Parks to be set up and this would be executed over a period of 36 months. The

new Textiles Parks would leverage employment to 400,000 textiles workers. The product mix in these parks would include apparels and garments parks, hosiery parks, silk parks, processing parks, technical textiles including medical textiles, carpet and power loom parks. Recent Developments Along with the increasing export figures in the Indian Apparel sector in the country, Bangladesh is planning to set up two Special Economic Zones (SEZ) for attracting Indian companies, in view of the duty free trade between the two countries.The two SEZs are intended to come up on 100-acre plots of land in Kishoreganj and Chattak, in Bangladesh. Italian luxury major Canali has entered

into a 51:49 joint venture with Genesis Luxury Fashion, which currently has distribution rights of Canali-branded products in India. The company will now sell Canali branded products in India exclusively. The Road Ahead With the increase in investments in the Indian textile sector, the subsequent increase in the industrial production, and the positivity observed by the Textile sector has resulted in progress and development of the sector. Integrating the sectoral needs and continued investments with technical advancements will completely modernize the industry chains across the country, and further assist in reaping benefits for the Indian Textile sector.

If you are interested in tie-ups with Indian Manufacturers / Exporters of Textiles or simply want to sell your Brands or engaging franchisees in India, these are some entry portal for your business:

Exports Promotion Council of Handicrafts

Cotton Textiles Exports Promotion Council

www.epch.in Tel: 91-11-26135256/57/58 Fax: 91-11-26135518/19 E-mail: epch@vsnl.com

www.epch.in Tel: 91-22 236329/10 Fax: 91-22-236329/14 Email : info@texprocil.org

BIG player

Leading Indian Company in the Textile Industry

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he Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931. With the best of technology and business acumen, Arvind has become a true Indian multinational, having chosen to invest strategically, where demand has been high and quality required has been superlative. Today, The Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 500 million) Lalbhai Group. Arvind Mills, the flagship company of the Lalbhai Group, is one of India’s leading composite manufacturer of textiles. Its headquarters is in Ahmedabad, Gujarat, India. It manufactures a range of cotton

shirting, denim, knits and bottomweights (Khakis) fabrics. It is India’s largest denim manufacturer apart from being world’s fourth-largest producer and exporter of denim. In the early 1980s, the company brought denim into the domestic market, thus started the jeans revolution in India. Today it not only retails its own brands like Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.. The original budget for the company totaled $ 55 thousand, at present it is $ 500 million Arvind feature is that its enterprises are equipped with highly advanced equipment of a full cycle – from painting the fiber to the finished product.

ing global customer demands for textiles and has focused its attention on select core products. Such a focus has enabled the company to play a dominant role in the global textile arena.With its presence across the textile value chain, the company endeavors to be a one-stop shop for leading garment brands.

Arvind Mills has set the pace for changIndia Newsletter | 11


Trade Shows

The Global Investor’s Meet, a bienKarnataka, one of the top-five indusnial investment summit organized by trialized States of the country with 5 per cent of India’s population contrib- the Government of Karnataka in Banutes to over 6 per cent of the nation’s galore is an initiative in this direction. GIM 2010 was a grand success and economy. Some of its distinguishing received an outstanding response strengths are in the areas of ITI ITeS, -investment commitments worth Rs. Biotechnology, Pharmaceuticals, R&D, Engineering, Aerospace, Mines approx. 60 billion EUR were received & Minerals, Automotive, Energy and from global and national industries Textiles. and the event saw participation of over 7000 delegates, 2000 compaWith opportunities in virtually every nies and 21 countries. facet of today’s economy, the State is a veritable treasure trove for investors. Now, the Government of Karnataka Government of Karnataka is commit(GoK) is organizing GIM 2012 on ted to playing the role of a catalyst 7th & 8th June 2012 at Bangalore and facilitator to maintain the State’s International Exhibition Centre (BIEC), recognition as India’s preferred investBangalore. ment destination.

For more information visit advantagekarnataka.com 12 | India Newsletter


Trade Shows

AVIATION INDUSTRY

9th INDIA INTERNATIONAL TEXTILE MACHINERY EXHIBITION 2 - 7 DECEMBER, 2012, MUMBAI

In case your company is interested in visiting a tradeshow/B2B event in India, be it one listed here or another one that came to your attention, get in contact with us via marketingofficer@indianembassy.at to get more information about possible assistance that we may provide.

India Newsletter | 13


Overseas Indians

FUND TO HELP OVERSEAS INDIANS IN DISTRESs

Community Welfare Fund, Swarnpravas Yojana and Social Security Agreements efit from as well as contribute — each in your own way — to India’s development story. We have put together a twoday conference of inter-related themes which reflect the national priorities over the 12th Five-Year Plan which commences in 2012. It is our expectation that we can and we will build strong partnerships with the overseas Indian community in India’s development process,” he said.

minister of overseas Indian Affairs vayalar ravi speaks about the Indian Community Welfare Fund, Swarnpravas Yojana and Social Security Agreements

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he Ministry of Overseas Indian Affairs (MOIA) will establish an ‘Indian Community Welfare Fund’ (ICWF) at Indian Missions across the world to provide ‘on-site’ welfare services to overseas Indians in distress, said Minister of Overseas Indian Affairs Vayalar Ravi while addressing the 2012 Pravasi Bharatiya Divas. The Minister said there were an estimated five million overseas Indian workers mostly in the Gulf and Malaysia. “There is a net annual outflow of over half a million workers from India, excluding returnees. These workers make a signal contribution to India and account for close to 40 percent of the total remittances that India receives each year. Last year, India received over $50 billion as remittances,” he said. The Minister said the vast majority of these workers were temporary contractual workers in the informal sectors and often did not have the protection of labour laws in the host country. “A significant number of them are women.This makes them especially vulnerable to economic downturns and sometimes to exploitation. In particular, the often appalling conditions of work and the absence of social security protection for women domestic workers, needs strong governmental interventions. Even the International Labour Organisation has recently drawn attention to the urgency in this regard,” he said. Ravi said the Ministry of Overseas Indian Affairs had concluded bilateral agreements with many of

14 | India Newsletter

the Gulf Cooperation Council states to work together to ensure decent work and suitable safe guards for women workers. OCI SCHEME According to Ravi, the ‘Overseas Citizenship of India’ (OCI) scheme, was another initiative launched in 2006 that has met with overwhelming success. “In the last six years, over a million OCI cards have been issued to overseas Indians across the world. This has enabled enhanced economic, social and cultural engagement between the vast overseas Indian community and India,” he said. Ravi said his mandate for his Ministry was to raise the level of engagement to go beyond mere investment-related issues and address a broader agenda. “We believe that this will provide the vast majority of you the opportunity to ben-

The Minister urged the delegates to reflect upon the younger generations of persons of Indian origin who are born and brought up abroad. “How do we ensure that the overseas Indian youth across the world connect with their roots and bond with India? What forms must this engagement take? What are the shared values that we must inculcate? What new ideas can we consider for expanding our engagement and how? We must find answers to these questions,” he said. “It has been my endeavour to make the PBD an outcome-driven platform. We will have met your expectations if we act on the recommendations of this annual flagship event,” he said. Ravi said it was a matter of deep satisfaction that the government had acted on last year’s announcements.“The most important of which was the skills development initiative forthe north-east states. I am happy to say this project is under implementation,” he said. The Minister said that in order to position India as a global supplier of skilled and trained work force and leverage India’s ‘demographic dividend’ over the coming decades, his Ministry haddrafted a scheme for skill development.

It has been my endeavour to make the PBD an outcomedriven platform. We will have met your expectations if we act on the recommendations of this annual flagship event.”


Overseas Indians “The ‘Swarnpravas Yojana’ aims to train 10 million youth over the next two FiveYear Plans. This would enable our workers to move up the value chain and access better jobs overseas. We hope to launch this project next year.” The Minister made particular reference to three major initiatives the Ministry of Overseas Indian Affairs had put in place for the benefit of overseas Indian workers. These are the ICWF; the Indian Workers Resource Centre (IWRC); and bilateral social security agreements with a host of countries. INDIAN COMMUNITY WELFARE FUND The Ministry will establish the ICWF to be placed at the command of the Heads of the Indian Missions across the world.

“The fund provides for food, shelter, legal assistance and other welfare support to overseas Indians on a ‘means tested’ basis. The ICWF, Imay add, has been an eminent success,” the Minister said. INDIAN WORKERS RESOURCE CENTRE In partnership with the Government of the UAE, the Ministry had established the IWRC in Abu Dhabi. The IWRC, which provides for electronic attestation of all work contracts, extends counselling services and operates a shelter with a helpline for workers in distress. “This is perhaps the single-biggest institutional intervention to safeguard the interests of our people abroad. I have now asked that similar Indian Workers Resource Centres be established in the other countries of the Gulf and in Malaysia,” he said.

SOCIAL MENTS

SECURITY

AGREE-

The Ministry of Overseas Indian Affairs has also taken undertakenseveral initiatives for Indian knowledge workers and professionals overseas. The Ministry has signed bilateral Social Security Agreements with over a dozen countries that have a significant overseas Indian population. “Last year, I signed the agreement with Germany. These agreements provide a host of benefits, including portability of pensions and avoidance of double social security payments,” he said. “With increasing globalisation, migration of professionals from India is bound to grow considerably. These agreements will therefore assume importance in the foreseeable future,” he said.

Expanding the economic engagement of the Indian diaspora with India

For details contact: Ms. Sujata Sudarshan, CEO, OIFC, and Director – CII 249-F, sector 18, Udyog Vihar, Phase IV, Gurgaon —122015, Haryana, INDIA Tel: +91-124-4014055/6 | Fax: +91-124-4309446 Website: www.oifc.in

India Newsletter | 15


Gastronomy

alleppey Fish Curry Indian Cuisine Recipe - Kerala Ingredients

Preparation

KERALA FOOD

• King fish: 1/2 kg. (You

• Wash and cut the fish into pieces. In a

Kerala offers a variety of vegetarian and non-vegetarian dishes.While rice is the staple, coconut and seafood define Malayali cuisine. Kerala is home to spices, such as black pepper, cardamom, cloves, ginger, and cinnamon, and no dish in the state is complete without them. among the most popular dishes are the appam and egg curry/mutton stew; iddi-appam or stringhoppers; puttu or rice flour and coconut steamed in bamboo; the Malabar biryani; meen porichathu or fish fry; meen veevichathu or fish cooked in fiery red chilly sauce; a variety of thorens or dry-sautéed vegetable dishes; avial or a mixed vegetable curry; and pachadi, a one-vegetable curry, thickened in coconut and curd.Try this fish curry to start things with!

• • • • • • • • • • • • • • •

can also use Vanjiram or Neyymeen or seer) Green chillies: 5 (slit) Ginger: 1-inch piece (minced) Garlic: 2 to 3 cloves (minced) Onion: 1 large (finely chopped) Shallots: 5 (finely chopped) Raw Mango: 1 cup (cut into 1-inch cubes) Tomatoes: 2 medium sized Coconut Milk: 2 cups Mustard seeds: 1 tsp Kashmiri Chilli Powder: 2-3 tbsp Turmeric Powder: 1 tsp Coconut oil: 2 tbsp Fenugreek Powder: a pinch Curry leaves: 4-5 Salt: to taste

non-stick skillet, heat 2 tbsp coconut oil, add mustard seeds. When they start to sputter, add onions, shallots, curry leaves, chillies, garlic and ginger and sauté till the onions turn translucent.

• Next, add turmeric powder, Kashmiri

chilli powder, salt, fenugreek powder and fry for a minute. add chopped tomatoes to the mix and cook for another minute. Then add the raw mango pieces with 2 cups of water and bring to a boil until the gravy acquires a semi-consistent texture.

• Add the fish pieces and cook for another

5 minutes until the gravy becomes thick. Add coconut milk and let it simmer on low flame for another 5 minutes. Check salt and spice levels and adjust according to taste.

• Serve with hot rice or kappa vevichathu.

Chettinad MuttOn KOrMa Indian Cuisine Recipe - Tamil Nadu Ingredients

• Mutton (medium pieces): • • • • • • • •

1/2kg Whole spices (bay leaves, cinnamon sticks, cloves, cardamom): 2 each Onions (chopped): 2 medium Tomatoes (chopped finely): 2 medium Ginger paste: 1 tsp Garlic paste: 1tsp Mint leaves (chopped) Salt: To taste Oil

Marinade: • Yoghurt: 1cup • Coriander powder: 1tbsp • Turmeric powder: 1/4tsp • Salt: To taste 16 | India Newsletter

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Preparation

To Grind: Dry red chillies: 5 Cumin seeds: 1tsp Fennel seeds: 1tsp Peppercorns: 1tsp Poppyseeds: 1tbsp Shallots: 10 Grated coconut: ¼ cup Curry leaves

• Marinate the mutton with yoghurt, turmeric and cori-

• • • • • • • • •

TAMIL NADU FOOD Tamil Cuisine makes use of rice, legumes and lentils, in addition to meat, with a variety of spices.The cuisine from its Chettinad region, especially, has become famous for using a variety of spices, especially in its non-vegetarian recipes. The presented recipe is a sample from the Chettinad region.

ander powder and salt for at least 6 hours or overnight. Pressure-cook the mutton with the marinade till 3 whistles. Keep aside. Grind all the ingredients from the list ‘To grind’ into a fine thick paste and keep aside. Heat the oil and fry the whole spices until brown, add the chopped onions, tomatoes, and ginger-garlic paste, and sauté everything until the raw smell goes away. Add the cooked mutton pieces to it and let it cook for 5 minutes.

• Add the ground paste and let it simmer until the oil

separates. add enough water and cook until the mutton pieces are done. Finally, add the mint leaves and take off the stove. Serve hot.


Tourism

BIHAR

Indian State Profile

O

f all India’s states, Bihar is the one most intimately linked to the Buddha’s life, resulting in a trail of pilgrimages which have come to be known as the Buddhist circuit. The very name Bihar is derived from the world ’vihara’, which means Buddhist monastery. The Buddhist trail begins at the capital city, Patna, where a noteworthy museum contains a collection of Hindu and Buddhist sculptures. The Khuda Baksh Oriental Library has rare Muslim manuscripts including some from the University of Cordoba in Spain. 40 km away, Vaishali was the site for the second Buddhist Council as the presence of ruins testify. 90 km south of Patna is Nalanda which translates as ’the place that confers the lotus’ (of spiritual knowledge). A monastic university flourished here from the 5th to the 11th century. It is said to have contained nine million books, with 2,000 teachers to impart knowledge to 10,000 students who came from all over the Buddhist world. Lord Buddha himself taught here and Hieun Tsang, the 7th century Chinese traveller, was a student. Ongoing excavations have uncovered temples, monasteries and lecture halls. Rajgir, ‘the royal palace’, 12 km south, was the venue for the first Buddhist Council. The Buddha spent five years at Rajgir after having attained enlightenment, and many of the remains at Rajgir commemorate various incidents, the hill of Gridhrakuta being perhaps the most important, as this is where the Buddha delivered most of his sermons. Bodhgaya is the spot where Lord Buddha attained enlightenment, with the Mahabodhi Temple marking the precise location. Bihar’s Buddhist circuit has modest back-up facilities by way of accommodation, international dining and surface transport. (For those interested in the Buddhist circuit, it may be worthwhile to note that Sarnath, in Uttar Pradesh, close to Varanasi, is an important part of the circuit, and has been beautifully developed. Besides the excavated sites, a museum here houses several Buddhist icons, among them the Ashoka Lion, India’s national emblem).

Buddha in Bodhgaya Temple

Ashokan Pillar, VAISHALI

PRE-HISTORIC PAINTINGS,KAIMUR

FOR MORE INFORMATION, CONTACT:

www.india-tourism.com info@india-tourism.com

Rajgir Jain Temple

India Newsletter | 17


Agenda

INDIAN MOVIE EVENING: AJAB PREM KI GHAZAB KAHANI

April 26th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Comedy Directed by: Rajkumar Santoshi Starring: Ranbir Kapoor/Katrina Kaif Released: November 2009 Duration: 161 Minutes Language: Hindi Subtitles: English

Synopsis: Prem’s (Ranbir Kapoor), fundas in life were very simple - be happy... make others happy... keep the town happy. It may have been a case of mistaken identity that led Prem to kidnap Jenny (Katrina Kaif). And it was sheer greed that made Prem try to pull a fast one over her father. As for sweet and simple Jenny, brought up by indifferent and uncaring foster parents, all she longed was to love and be loved in return. And it was love and only love for Jenny that made Prem turn over a new leaf. From hardly working vagabond he began working hard to make money…From a besotted Romeo he became a mature and thoughtful Majnu who put Jenny’s happiness above everything else. As for Jenny, she was so much in love with the idea of being in love that she was blinded by the reality that was staring in her face... That’s when she realises that she had made a mistake with her love.

OTHER INDIA-RELATED EVENTS IN AUSTRIA Talk-Series ‘Zu Gast bei Elisabeth Al-Himrani’ Guided Tour of the Exhibition NAGA PEOPLE Jewelry and Ashes When: April 19, 16:00 Where: Museum of Ethnology Neue Burg, 1010 Vienna More details at

austro-indian.at CLASSICAL INDIAN DANCE BHARATANATYAM STUDIO Srngara - Love in Different Situations When: April 28, 19:30 Where: Natya Mandir Börseplatz 3/1D, 1010 Vienna More details at

austro-indian.at

TREKKING WITH NATIVES IN NAGALAND

Exhibition

NAGA PEOPLE JEWELRY AND ASHES

Until June 11th 10am-6pm Museum of Ethnology Neue Burg, Heldenplatz 1010 Vienna

Goal of event: Open sharing of knowledge, information and experience about India; Networking, understanding & inspiration When: April 28 09:30-18:30 Where: The HUB Vienna Lindengasse 56, 1070 Wien More details at

barcamp.at/IndiaCamp_2012

Published by the Embassy of India,Vienna For any inquiries related to the ‘India Newsletter’, please email: marketingofficer@indianembassy.at

18 | India Newsletter

India Newsletter 04.2012  

India Newsletter published by the commercial section at the Indian Embassy in Vienna

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