India newsletter 04 2014 by Indian Embassy Vienna

INDIA NEWSLETTER www.indianembassy.at

Published by the Embassy of India, Vienna Year 4 • Issue 40 • April 2014

FEATURED INDUSTRY INDIAN TELECOM SECTOR

India Newsletter • 1

Embassy of India, Vienna

NEWS FLASHES

Indian exports stood at US$ 282.7 billion during April-February in 2013-14 registering a year-on-year (YoY) growth of 4.79 per cent.n

The Indian home and furnishing market is pegged at about US$ 20 billion, of which the furniture segment accounts for about half. By 2017, the total is expected to grow to US$ 30 billion.n

The Government of India is planning to build around 200 low cost airports in smaller cities in the next 20 years.n

India’s foreign exchange reserves increased by US$ 954 million during the week ended February 28 to reach US$ 294.36 billion.n

IT services, agriculture, i n f r a s t r u c t u r e , pharmaceuticals and consumer goods – are the key to India boosting Africa revenues to US$ 160 billion by 2025,acording to Mr Rajat Gupta, Director, McKinsey & Con

The number of ultra-high net worth individuals in India is 2 • India Newsletter

expected to double over the next 10 years reaching 119 from 60 currently.n

The size of e-commerce sector in India stood at US$ 9.5 billion in 2013 from US$ 3.8 billion in 2009. The share of e-tailing has grown to 16 per cent in 2013 from 8 per cent in 2009.n

Seafood exports from India are expected to touch US$ 4.3 billion in 2013-14 and US$ 10 billion a year by 2020.n

This financial year (2013-14) is among

the top five in terms of buying activity by foreign institutional investors (FIIs) in India with net buying at Rs 73,235 crore (US$ 12.09 billion).n

India’s spice exports registered a 27 per

cent growth both in terms of volume and dollar value during

April-December

2013. The steady growth of spice exports reiterates the unshaken global demand for

India issued 3,883 Visa on Arrivals (VoAs) during JanuaryFebruary, 2014 registering a year-on-year (YoY) growth of 6.8 per cent.n

tonnes (MT) during 2013-

Taurus Investment H o l d i n g s , LLC has announced investments worth Rs 1,200 crore (US$ 195.12 million) in Technopark, Thiruvananthapuram, in two to three phases, making it the single largest foreign direct investment (FDI) into Kerala by a US or European firm.n

India is expected to top fleet expansion chart by 2019 with sales rising at 9 per cent annually.n

Indian spices.n Mundra become

biggest

port

handled

Port has India's by

100

cargo million

14.n

Online retail in India reached a turnover

of US$ 12.6 billion in 2013, and the country currently has around 1 million online retailers.n

India’s wind energy sector added 2,126

megawatt (MW) in 2013-14 buoyed by addition of 800 MW of capacity in March 2014 alone.n

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NEWS ARTICLES India’s GDP growth to accelerate to 5.5% in the fiscal year to end March 2015-Asian Development Bank

he recent deceleration of economic growth in India appears to have bottomed out, but the economy will not reach its potential until remaining structural bottlenecks are overcome, says a new Asian Development Bank (ADB) report. India’s capacity for more rapid growth over the long term is high, with a promising outlook for labor, worker skills, capital, infrastructure, and productivity, said ADB Deputy Chief Economist Juzhong Zhuang. But a serious effort on reforms is needed if the economy is to achieve and sustain higher rates of growth going forward. ADB projects India’s GDP growth to accelerate to 5.5% in the fiscal year to end March 2015 (FY 2014) on improved performance in industry and services. Growth is seen rising further to 6.0% in FY2015, as a recovery in advanced economies bolsters external demand and government action opens some structural bottlenecks that have impeded industry and investment. The government’s initial estimates peg FY2013 GDP growth at 4.9%. The economy remained constrained by slow industrial growth, contracting manufacturing output, weak investment, and a reduction in private consumption. The current account deficit is estimated to have narrowed sharply to 2.2% of GDP in FY2013, from 4.7% a year earlier, as the weakened currency improved competitiveness, export demand picked up, and restrictions were introduced on some import items. Sustained economic recovery will have to be led by improved investment and consumption, ADB says. Progress by the Cabinet

Committee on Investment in resolving delays in several large infrastructure projects is likely to provide traction in raising investment. Companies will be looking to see if actions are taken to improve the investment climate. Improved global growth prospects and competitiveness gains from currency depreciation will bolster external demand. One of India’s most pressing policy challenges is to create significantly more productive and well-paying jobs, the report notes. Such jobs are vital to sustain high growth and ensure it is inclusive. Manufacturing will have to play a key role in job creation as the proportion of the workforce that depends on agriculture declines and 12 million people enter the workforce each year. India’s manufacturing sector has so far performed below its high potential. The government’s recent National Manufacturing Policy identifies a number of constraints on the sector, and has proposed initiatives to relax these. The successful implementation of the various initiatives outlined in the National Manufacturing Policy will be necessary to ensure that India’s manufacturers perform at or close to potential.n

Economy has withstood many crises: Pranab

he Indian economy has withstood many crises due to the contribution of farmers, industrial workers and policy makers, President Pranab Mukherjee said in New Delhi. “The importance of sound economic advice in the policy arena in today’s complex world is being increasingly realised,” the president said. He was interacting with a group of 29 officer trainees of the 2013 batch of the Indian Economic Service who called on him at Rashtrapati Bhavan

here. Mukherjee said the officers of the Indian Economic Service serve as a key instrument in advising policy makers and planners and setting the future destiny of the country. The president said he had a firm belief in the strong resilience of the Indian economy. “It had withstood many a crises due to the contribution, among others, of farmers, industrial workers and policy makers.”n

India to have highest growth in energy demand

he growth in energy demand in India would be the highest among all countries by 2030-35, beating even China, says the 2014 energy outlook report issued by British oil giant BP. “We project that by 2035, India will become increasingly importdependent, despite increases in non-fossil fuel production,” it said. According to the report, India’s energy production would rise by 112 per cent, while consumption would grow by 132 per cent. Oil imports would rise by 169 per cent and account for over 60 per cent of the net increase in imports, followed by increasing imports of gas (+573 per cent) and coal (+85 per cent). “India’s energy mix evolves very slowly over the next 20 years, with fossil fuels accounting for 87 per cent of demand in 2035, compared to a global average of 81 per cent. This is down from 92 per cent today,” the report added. Demand for all fossil fuels would expand, led by gas (+183 per cent), oil (+121 per cent), and coal (+108 per cent), while renewables in power would expand by 539 per cent as would nuclear (+366 per cent) and hydro (+127 per cent). India’s share of global demand would zoom to 7 per cent in 2035, accounting for the second largest share of the BRIC countries, compared to China (27 India Newsletter • 3

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per cent), Russia (5 per cent), and Brazil (3 per cent). The country’s demand growth of 132 per cent would outpace each of the BRIC countries as Russia (+20 per cent), China (+71 per cent), and Brazil (+71 per cent) would expand slower. India’s growth is almost double the non-OECD aggregate of 69 per cent. India’s energy production as a share of consumption would drop from 61 per cent today to just 56 per cent by 2035 as imports would rise by 163 per cent. Coal would still remain the dominant fuel produced in India, with a 66 per cent market share in 2035. Renewables in power would overtake oil as the second largest, increasing from 3 per cent to 10 per cent in 2035 as oil drops from 12 per cent to 4 per cent.n

Czech Republic to share expertise in water, energy sectors

o enhance ties with India, Czech Republic said it will share expertise in the field of water, energy and environment with the country, and introduce direct flights between Prague and Mumbai or Delhi. “The direct flight will help business communities of India and Czech Republic intensify their trade linkages ...,” Czech Republic Ambassador to India Miloslav Stasek said at an event here. The business ties will get a boost in the area of railways, transportation, power, agriculture and a host of other sectors like health, he added. A high-level delegation will also visit India from May 5 to collaborate in the field of water, energy and environment management, he said. India would also gain in renewable energy since companies from Czech Republic will share their technologies to harness the country’s wind energy potential, he added. Stasek, however, advised that both in-bound and out-bound investments should be protected legally and two nations have agreements in those fronts.n 4 • India Newsletter

Indian aviation to attract $12.1-billion investment: Ajit Singh

ivil Aviation Minister Ajit Singh said the Central government had envisaged an investment of $12.1 billion in the airports sector during the 12th Plan period, and of which, $9.3 billion was expected to come from the private sector for construction of new and lowcost airports and expansion and modernisation of existing ones. “Rapidly expanding air transport network and opening up of the airport infrastructure to private sector participation have fuelled the growth of the air traffic in India,” he said in his inaugural address at India Aviation 2014, an international exhibition and conference on civil aviation, in Hyderabad. The minister said the air traffic density in India, however, was very low at 72, as compared to China (282), Brazil (231), Malaysia (1,125), the US (2,896) and Sri Lanka (530). “This indicates the untapped market potential, given the projected burgeoning young population and rising disposable income levels in future. We are looking into further expanding the sector by promoting regional and remotearea connectivity,” he said, adding that work on more than 50 lowcost airports, located in remote and interior areas of the country had already been initiated by the AAI. India is currently the ninth largest aviation market, handling 121 million domestic and 41 million international passengers with more than 85 international airlines operating to India and five Indian carriers connecting over 40 countries. The Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, making it the third largest aviation market. Also, commercial fleet size is expected to grow from 400 today to 1,000 aircraft by 2020. Singh said the government had taken initiatives to attract foreign

direct investment (FDI) in the sector. “The biggest game-changer in this direction has been the decision to allow 49 per cent FDI by foreign airlines in Indian carriers. The results of this policy are already visible, as two new scheduled airlines Air Asia and Tata SIA are in the process of starting their operations in near future. This is in addition to the FDI of $350 million by Etihad into Jet Airways,” he said.n

India will need 1,300 aircraft over the next 20 years

irbus said India will need more than 1,290 aircraft, worth at least $190 billion, over the next 20 years. The aircraft manufacturer said Indian carriers will require more planes between now and 2032 than what it had forecast in 2012, according to its latest report released at the India Aviation 2014 air show. Airbus executives said Indian annual passenger traffic growth rates of 8.6 per cent are above the regional Asia-Pacific average growth rate of 6.1 per cent and world average of 4.7 per cent. Of the required 1,290 new aircraft, some 73 per cent will be for growth and 27 per cent as replacement. Outlining the findings, they said the new passenger aircraft include 913 single-aisle ones like the A320 and A320neo family, 322 twin-aisle ones such as the A350 XWB and A330, and 56 large aircraft such as the A380. By 2032, today’s fleet of aircraft will more than triple to some 1,233 aircraft. Third-largest market Addressing a media conference Joost van der Heidjen, HeadMarketing, Asia Airbus said that it estimates Indian passenger traffic growing at almost 10 per cent a year up to 2032, becoming the third largest market. Today, one in 20 travel by air, but by 2032, it is expected to grow five-fold. Srinivasan Dwarakanath, CEO of Airbus India, said Airbus expects to expand its engineering centre workforce in Bangalore from 350

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to 450 researchers, step up pilot training activities, strengthen aero-structure design capability, and increase the sourcing of parts manufactured locally. He said Airbus is also sponsoring India’s first aerospace and aviation education programme. The Indian Institute of Management-Bangalore (IIM-B) and Toulouse Business School have signed an agreement to set up an Executive General Management Programme in aerospace and aviation management. The Aerospace MBA will be the first of its kind in the country.n

Indian solar installations are forecast to be approximately 1,000 MW

ndian solar installations are forecast to be approximately 1,000 mw in 2014, according to Mercom Capital Group, llc, a global clean energy communications and consulting firm. Solar installations in India totaled 1,004 MW in 2013 compared to 986 MW in 2012. In line with Mercom’s forecast, there was very little growth in installations year-over-year. The firm’s detailed survey of the market revealed that growth in installations might be elusive again in 2014 with numbers forecast to be similar to 2012 and 2013. According to Mercom, there are several factors behind the slow solar growth. With a few exceptions, there are no Jawaharlal Nehru National Solar Mission (JNNSM) PV projects expected to come online until at least mid-2015. Most CSP projects have stalled, state policies are all over the map, and as we have warned for some time, India is now in a trade dispute with the U.S. in the World Trade Organization (WTO). “It is time for developers to go directly to consumers, there is a large power-starved market waiting to be served that looks better and better every day as diesel prices keep climbing,” commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. The United

States recently announced its request for WTO dispute settlement consultations with India regarding the Domestic Content Requirement (DCR) in JNNSM Phase II projects. The United States claims that DCR rules discriminate against U.S.-manufactured solar cells and modules. In Phase II, India has extended DCR rules to include thinfilm technology. In addition to difficulties with project economic viability stemming from reverse auctions that have pushed down project margins, state policies have been delayed frequently, there is no real Renewable Purchase Obligation (RPO) enforcement in place, and national elections are fast approaching adding more uncertainty to India’s solar market which could result in a slowdown in large-scale solar project installations. Nevertheless, Mercom stressed that India’s solar market potential remains as large as ever, even in a slower-growing economy. As power shortages continue, peak shortage is a critical problem that has stifled industrial growth, and back-up generation is becoming increasingly expensive. The government of India announced partial deregulation of diesel prices in January 2013, by incremental price increases of Rs 0.50 ($0.008)/month for retail customers, as the government tries to get subsidized diesel to a marketbased price. This rise has resulted in a 15 per cent increase in diesel prices over the last 13 months, making solar a very attractive option. Meanwhile, coal has not been the answer to the country’s energy problems with its own supply shortage issues, and coal power plants are increasingly dependent on imports as prices continue to climb. “The case for solar in India will remain strong as long as the relevant policy goals address power shortages that affect millions of Indians, businesses, industries, and agriculture,” added Prabhu.n

Agri exports outpace other commodities’

rowth in India’s agricultural exports has exceeded the rise in exports of other products. Through the past few years, these products have consistently seen a rise in their share in the export basket, primarily due to the huge stocks resulting from bumper output, as well as favourable government policies. According to data from the commerce ministry, in 2010-11, agricultural exports stood at $17.35 billion, in 2011-12 $27.43 billion, in 2012-13 $31.86 billion and in the first 11 months of 2013-14, it stood at $29.3 billion. During this four-year period, overall exports recorded 93 per cent growth. The share of agricultural commodities in India’s overall export basked rose to 10.66 per cent in 2012-13 from 7.06 per cent in 2009-10. “Agricultural exports growth will continue in the future, too, with improved prospects and favourable long-term policy support,” Commerce Minister Anand Sharma had said on the sidelines of a Business Standard awards function. Sharma said from now, basmati rice would incorporate the new Pusa 1121 variety. Various promotional efforts in major importing countries made the Pusa 1121 variety a preferred choice. Also, the Centre had signed free trade agreements with a number of agricultural product-deficient countries. The government also allowed exports of foodgrains and other agricultural commodities on a quota basis, with a positive response. Recently, India had allowed limited exports of pulses to Maldives. It has already been announced subsidy for sugar had resulted in a spurt in exports. Buffalo meat and guar gum are other major products seeing significant growth in the export basket. Though guar gum prices have fallen in the past year, its exports have risen in India Newsletter • 5

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volume terms. “The growth momentum in India’s agricultural exports is expected to continue in the next few years, with an increased share of processed food, including mango pulp, dried and preserved vegetables, meat and poultry items. Factors such as reduced transaction costs, time, better port gate management and fiscal incentives contributed to this upward trend. With continued focus on issues such as food safety and compliance with international standards, we can surely reach new heights,” said Piruz Khambatta, chairman and managing director, Rasna, and chairman, Confederation of Indian Industry’s national committee on food processing. According to the World Trade Organization, global export and import of agricultural and food products stands at $1.66 trillion and $1.82 trillion, respectively, of which India’s shares are 2.07 per cent and 1.24 per cent’, respectively. This indicates India is a net exporter of agricultural products. The country ranks 10th in terms of global agricultural and food exports. In recent years, the government’s policy impetus has provided stability to agricultural exports. Given sufficient stocks of foodgrains in the central pool, the government has allowed exports of wheat. Also, efforts have been taken to promote horticulture exports. “Though these measures are in the right direction, a consistent long-term trade policy, with tariff in a narrow band, might be required to acquire international presence in commodities, wherein it has comparative advantage,” Economic Survey 2012-13 had stated. Sharma said the government was working on a long-term policy for sustainable growth in agricultural commodities. Currently, India is the world’s largest rice exporter and second, in terms of wheat exports. Horticulture exports have also seen good growth. To achieve the desired growth, “India needs to change the cropping pattern, with a larger focus 6 • India Newsletter

on north India”, Sharma had said. R S Rawat, secretary-general, Associated Chambers of Commerce and Industry of India, said, “The government must take policy reforms to support growth in agricultural commodities. To achieve the $70-billion export target for 2017 will not be too ambitious, with the possibility of policy implementation increasing productivity and promoting diversity of crops and specialised items to meet specific demands abroad.” Among agricultural commodities, exports of basmati rice have risen 46 per cent to $3.47 billion in the first nine months of this financial year, compared with $2.37 billion in the year-ago period. Exports of nonbasmati rice rose seven per cent to $2.13 billion in the April-December 2013 period from $1.99 billion in the year-ago period. Exports of dairy products recorded 138 per cent growth in April-December 2013 at $435.93 million, against $183.24 million in the corresponding period last year. Due to declining global wheat prices, India’s realisation from wheat exports fell 5.24 per cent — from $1.24 billion to $1.17 billion.n

Adani power becomes India’s largest private power producer with 8620 MW capacity

dani Power, a part of the infrastructure major Adani Group, commissioned fourth unit of 660 megawatts (MW) at its power plant at Tiroda in Maharashtra, making it the largest private power producer in India with an overall installed capacity of 8,620 MW, ahead of its peers Tata Power and Reliance Power. Adani Power has added 2,640 MW in the last financial year, accounting for nearly 15% of the overall capacity addition of about 17,000 MW in the country. The company has commissioned two 660 MW units in the first quarter, one 660 MW unit in third quarter and one 660 MW unit in fourth quarter of FY14, two

each at Tiroda in Maharashtra and at Kawai in Rajasthan. “It is a proud event and a momentous occasion for everyone at Adani Power, as we are now the largest private power producer in India. This achievement is a testimony to our efforts in increasing electricity generation in the country, and only reflects our commitment towards nation building. It is a significant milestone in the path to achieve Adani Power’s target of generating 20,000 MW by 2020,” said Gautam Adani, chairman, Adani Group. Post commissioning of Unit 4 at Adani Power’s Tiroda power plant in Maharashtra, the company added 660 MW to its existing installed thermal capacity of 7920 MW. “The company’s project management team has acquired and assimilated expertise that enables speedy and reliable execution of large power generation projects. This has allowed us to add capacity at the given pace, and address the nation’s electricity demand.” said Vneet Jaain, CEO, Adani Power Ltd. Apart from this, the Adani Group has also installed a 40 MW Solar power plant in Kutch district, Gujarat, taking the overall installed capacity to 8,620 MW - the highest amongst private sector producers, across all fuels.n

Airbus sets up India subsidiary

lobal aviation major Airbus has restructured its India operations to consolidate strengths and tap the growing market. It has created a fully owned subsidiary called Airbus India by grouping its activities in the country. Srinivasan Dwarakanath is the new Chief Executive Officer and Charles Champion, member of the Airbus Executive Committee, is the Chairman. Airbus India will manage the company’s Indian footprint spread across several sites. It will have customer centres in Delhi and Mumbai.

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Fifth country subsidiary Airbus India is the fifth country subsidiary outside Europe for the aviation giant. The changes are directed towards building on the success of the Airbus Engineering Centre India (AECI) in Bangalore and a clear recognition of the country as a strategic hub, said Dwarakanath. The new entity will also include strategy, customer services and procurement teams under one organisation. A Maintenance Repair and Overhaul (MRO) capability will be established, at a later date, he told Business Line in a telephonic interview. MRO facility Asked about the MRO facility, which has been delayed, the India Chief said: “We are talking to several partners. It is in our interest to set it up. I hope this year we will make progress,” he added. The pilot and maintenance training facilities in Bangalore and Greater Noida have also expanded their activity, training around 1,200 personnel so far from both the Far East and West Asian nations, along with India. Nearly 5,000 people are involved across the supply chain of Airbus’s activities. On the engineering design and manufacture front, Airbus has dedicated centres with Cades and Quest Technologies. “We will add at least a 100 each in these two centres in the near future. They do critical component and structure design manufacture for us,” Dwarakanath said. Indian partners TCS, Tech Mahindra, Wipro, Tatas, Geometric are among the growing number of Indian companies Airbus is partnering with, in the engineering and IT space. Moves are afoot to expand tie-ups and work with Indian institutes and universities in emerging technologies. At present, there are around 30 Indian suppliers working on Airbus programmes and manufacturing parts for every aircraft model.

Indian carriers operate a fleet of over 170 Airbus aircraft. Airbus’ current market share of sales in India represents over 60 per cent of the country’s total aircraft backlog, he said. The cumulative turnover of Airbusgenerated work in India has grown from $20-25 million in 2005-06 to $250 million at the end of 2013. Airbus participated in the five-day India Aviation 2014 exhibition.n

French sports goods company Decathlon queues up for online foray in India

n the first move of its kind by a foreign retailer, French single-brand sports goods company Decathlon has sought the government’s nod to sell products online from its store even as India is debating whether to allow overseas investment in e-commerce. The retailer, which secured approval for a wholly-owned, single-brand retail venture last February, has written to the Department of Industrial Policy and Promotion (DIPP) to allow it “captive e-retail trading” as well. “The company has written... It’s being examined,” said a government official aware of the deliberations. Prajval Ray, head of e-commerce for Decathlon India, did not respond to an e-mailed questionnaire or text messages and phone calls. The proposal, in form of a representation, seeks an amendment in the single-brand approval given to the company and emphasized that the online selling would be a “marginal extension” to the retail route. The company has proposed online sales from its stores to provide access to customers in far-flung areas. The company currently operates 11 stores and is slated to open its 12th in Noida in June. The sporting goods giant operates more than 500 stores in about two dozen countries. The company already has a wholesale, cash-and-carry arm that allows member resellers to source

goods online from it to facilitate trade in areas where having a standalone store isn’t feasible. Also, Decathlon sells its products online to consumers through resellers including Snapdeal.com and sports365.in among others. Decathlon, which sells everything from running shoes to mountaineering equipment, has argued that the move would have minimal displacement effect and give a significant boost to local business. India had in January 2012 raised the foreign direct investment (FDI) limit in single-brand retailing to 100% and subsequently eased many of the stiff riders attached, including local sourcing of products, to make the policy more conducive to investments. The government has already initiated discussions on allowing foreign direct investment in the e-commerce space. DIPP on January 7 floated a discussion paper inviting comments from all stakeholders on caps and conditions for FDI in the segment. The existing policy does not allow FDI in businessto-consumer or B2C e-commerce, while100% FDI is allowed in business-to-business or the B2B category. The norms for single-brand retail clearly state that trading in any form by means of e-commerce would not be permissible under the rules for this. Experts argue that policy should be more flexible, keeping in view the trade’s ground realities. “There should exist enough flexibility to such stores to cater to their customers using various platforms including Internet, centralised call centres, catalogues, memberships,” said Akash Gupt, executive director, PwC. An official with another big four consultancy firm said the policy does not prevent retailers from using value payable post services or to take orders on the phone from customers in far-flung areas, so why should it not be allowed using modern technology.n India Newsletter • 7

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Baumer sets up engineering and assembly centre in Pune

witzerland-based Baumer Group has set up an engineering, training and assembly operatons at Pune to manufacture electronic pressure sensors. Present in India since 2007, Baumer India also plans to begin sourcing of local components. Oliver Vietze, CEO and Chairman, Baumer Group, said that the company had invested $25 million in its Indian operations. “In Pune we will ramp up our operations by investing $10 million over next two years and increase the headcount from 30 to over 100 people,” he said. After electronic pressure sensors, the next phase of expansion would be manufacture of encoders and sensors, he said, adding that the production will also be used for exports at a later stage. The Indian market for high technology products that Baumer offers is close Rs 400 crore and it has 15 per cent market share, Sunil Hasabnis, Managing Director, Baumer India, said. Baumer has manufacturing locations across western Europe including two in Switzerland, six in Germany, one each in Denmark, Venezuela and France. In India it has another manufacturing unit at Vapi that specializes in process instrumentation. Around 20 per cent of the products from here are exported.n

India’s tourism industry to grow 7.3% in 2014: WTTC

ndia’s travel and tourism industry is set to grow by about 7.3% in 2014, better than last year, but average spending by foreigners travelling to the country could decline sharply, according to the World Travel & Tourism Council. This year, revenue from domestic tourism is expected to grow 8.2% compared with 5.1% a year ago, the London-based council has said in its Economic Impact Report, adding

8 • India Newsletter

that increasing domestic travel, growth of low-cost airlines and upgrading of airport infrastructure will be the growth drivers. The report, however, says that the growth in the amount international visitors spend in the country could slow to 2.9% from 6.2% in 2013. “The picture in India in general terms is good. But in terms of the global forecast, it is much lower than other countries, like China, which grew at 9.2% in 2013 (and is anticipated to grow at 8.3% in 2014),” said David Scowsill, president and CEO, WTTC. In 2013, India generated Rs 1.1 lakh crore from foreign visitors. The figure is likely to grow by 2.9% in 2014, according to the report. International tourist arrivals are expected to touch 7.36 million in 2014 and 13.43 million by 2024. Expenditure by foreign tourists in India is expected to grow 4.3% every year to Rs 1.74 lakh crore in 2024. In 2013, the travel and tourism industry contributed Rs 2.17 lakh crore or 2% to the country’s GDP. This is expected to rise to Rs 4.35 lakh crore in 2024. WTTC, which includes executives of travel companies as members, had said earlier that if five G20 countries (India, China, the US, the UK and Brazil) were to go electronic in their visas, the move could generate five million jobs and $268 billion income.n

Tourism ‘Oscar’ for ‘Great Backwaters’ Campaign

erala Tourism was honoured with the Golden City Gate Gold Award, considered as the ‘Oscar’ of Tourism Communications during the recently held ITB-Berlin, the world’s largest travel-trade fair held in Germany. This is the second major international award for Kerala Tourism in a span of two months. Kerala Tourism won the Golden City Gate Gold Award for its print campaign on backwaters, edging out heavy weights like the Great Wall of China and the Great Barrier Reef of Australia.

Presented every year during the prestigious ITB-Berlin travel-trade fair, the Das Golden Stattdor or the Golden City Gate Awards are considered the ultimate recognition in global tourism communication. The awards are given under the patronage of the German Federal Association of Film and Audio-Visual Producers. It is the first time that Kerala Tourism has won the gold award in the print category. “We are truly honoured by this remarkable recognition from the world’s biggest travel-trade show. It demonstrates the significant place of Kerala’s beautiful backwaters among the most important destinations in the world. This is recognition for the Kerala brand,” said Mr. A. P. Anilkumar, Minister for Tourism. The print campaign of Kerala Tourism titled ‘The Great Backwaters’ was launched late last year. The campaign presented the backwaters of Kerala, stretching from one end of the State to the other, as a single destination and once-in-a-lifetime experience for the traveller. The National Geographic Traveller rated Kerala’s backwaters 60th among 133 great destinations around the globe. “It is a huge achievement for Kerala and a major boost to the State’s reputation as one of the top tourist destinations in the world. The award shows the appeal of our backwaters on the global tourism map,” said Mr. Suman Billa, Secretary, Kerala Tourism. “The award is an endorsement of the continuing efforts of the tourism department in showcasing the vast tourism potential of Kerala. It is our objective to present our distinguished visitors with the best in the world in terms of variety, originality and creativity,” said Mr. S. Harikishore, Director, Kerala Tourism. The Kerala Tourism stall at the ITBBerlin this year was based on the Great Backwaters campaign theme. The delegation from Kerala was led by Mr. Suman Billa that comprised 19 co-exhibitors from Kerala.n

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WHO Certifies India as Polio Free

he World Health Organisation (WHO) presented official certification to India for its ‘Polio Free’ status. India is among other countries in its South East Asian region which have been certified as being free of the wild polio virus. The Minister for Health and Family Welfare, Sh Ghulam Nabi Azad received the official certificate at a function. This achievement makes the South-East Asia Region, the fourth WHO Region to be certified as polio-free, after the Region of the Americas in 1994, the Western Pacific Region in 2000 and the European Region in 2002. Speaking at the function, Sh Azad stated that India has been polio free since January 2011. Speaking on the historic occasion on behalf of all South-East Asian Health Ministers, Shri Azad expressed happiness and satisfaction at the historic public health achievement which seemed impossible with India having the highest burden of Polio cases in the world. The Health Minister stated that India embarked on the programme to eradicate the nation of polio 19 years ago in 1995, when the disease used to cripple more than 50,000 children in the country every year. He stated that this achievement has been possible with resolute will at the highest levels, technological innovations like the indigenous bivalent polio vaccine, adequate domestic financial resources and close monitoring of polio programme, with which immunization levels soared to 99% coverage and India achieved polio eradication. He stated that this unbelievable operational feat has been possible due to the tireless efforts of over a million ASHAs and ANMs who gave a new momentum to polio rounds. A 2.3 million strong team of polio volunteers and 150, 000 supervisors worked day and night to reach every child. The Health Minister expressed gratitude

towards WHO, UNICEF, Rotary International, Bill and Melinda Gates Foundation and others stakeholders, including the parents of the children, for their strong technical and operational support to this collective effort in this region. Also present at the certification ceremony were representatives from the WHO’s SEARO countries, senior officers from the Ministry of Health and family Welfare and representatives of partner agencies such as Rotary International, UNICEF, and DFID.n

disaster management, vehicle tracking and fleet management, integration with mobile phones, precise timing, mapping and geodetic data capture, visual and navigation for drivers, said ISRO sources.

PSLV C24 launches India’s second navigation satellite

In July 2013, IRNSS-1A was launched by PSLV-C22 (both the vehicles have the similar configuration).

he Polar Satellite Launch Vehicle (PSLV) C24 was launched successfully from Indian Space Research Organisation space station here, around 80 km from Chennai. This was the 25th successful launch of PSLV. The PSLV carries a satellite of the Indian Regional Navigation Satellite System (IRNSS), weighing 1,432 kg. Terrestrial navigation is one of the primary applications of the indigenously developed IRNSS. The Rs 1,420-crore IRNSS, which would ultimately have seven satellites, is expected to be completed by 2015. The launch is the second of the seven. Applications of IRNSS include terrestrial aerial and marine navigation, disaster management, vehicle tracking and fleet management, navigation aid for hikers and travellers, visual and voice navigation for drivers. The system is similar to the global positioning system of the US, Glonass of Russia, Galileo of Europe, China’s Beidou or the Japanese Quasi Zenith Satellite System. The satellite is designed to provide accurate position information service to users in India as well as the region extending up to 1,500 km from its boundary. It has an expected lifespan of around 10 years. The other applications of IRNSS include aerial and marine navigation,

Unlike GSLV, PSLV was assembled on the launch pad and the vehicle assembly building moves back. In case of GSLV, it is made in a fixed vehicle assembly building and moved to the launch pad. “Technology variants and methodology adopted is great,” says Isro’s Facebook post.

The satellite has been realised in less than seven months after the launch of its predecessor. K Radhakrishnan, chairman, Isro, said, “The launch was successful and it was injected very precisely. I thank the entire Isro team that made this major milestone for the country.” PSLV C24 injects IRNSS 1B into the intended orbit with remarkable precision, he averred. Radhakrishnan added two more IRNSS (1C and 1D) will be launched in 2014 for enabling accurate measurements on the ground using receivers. Three more satellites will be launched in the beginning of 2015 and by mid-2015, India would have seven constellations of seven satellites carrying out important services for the country. The GSLV Mark III with a novel pay load will be launched in June 2014. IRNSS will provide two types of services, including standard positioning service (SPS), which is provided to all the users and restricted service (RS), which is an encrypted service provided only to the authorised users. The system is expected to provide a position accuracy of better than 20 m in the primary service area and the services are to be beneficial to various sectors, including defence, according to experts.n India Newsletter • 9

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INDUSTRY The Indian Telecommunications Sector

ndia is the world’s second-largest telecommunications market. The mobile phone industry in India is likely to contribute US$ 400 billion to the country’s gross domestic product (GDP) and has the potential to generate about 4.1 million additional jobs by 2020, as per Ms Anne Bouverot, Director General, Groupe Speciale Mobile Association (GSMA). “India’s data story is very promising. Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding its network infrastructure and distribution channel in the country,” as per Mr Vittorio Colao, CEO, Vodafone Plc. ■■ Key Statistics The telecommunications industry attracted foreign direct investments (FDI) worth US$ 59,796 million between April 2000 to January 2014, an increase of 6 per cent to the total FDI inflows in terms of US$, according to data published by Department of Industrial Policy and Promotion (DIPP). Online platforms that support usergenerated content can become an important part of India’s internet economy and contribute around Rs 2,490 billion (US$ 41.5 billion) by 2015, according to Global Network Initiative (GNI) report titled ‘Closing the Gap: Indian Online Intermediaries and a Liability System Not Yet Fit for Purpose’. BlackBerry has chosen India as the third country to set up enterprise solutions centres to educate corporate customers about various BlackBerry Enterprise Service (BES) 10 solutions. “India is one of the fastest growing markets in terms of smartphone and mobile data adoption,” said Mr Sunil Lalvani, Managing Director (MD), BlackBerry India.

10 • India Newsletter

■■ Market Dynamics India’s global system for mobile (GSM) operators added 4.14 million rural subscribers in January 2014, taking the total to 285.35 million. India’s GSM cellular subscriber base increased marginally in November to 688.02 million with an addition of 4.87 million new subscribers during the month, said industry body Cellular Operators Association of India (COAI). Data traffic powered by third generation (3G) services grew at 146 per cent in India during 2013, higher than the global average that saw use double, according to an MBit Index study by Nokia Siemens Networks (NSN). The data consumed per subscriber for 3G is 532 megabytes (MB), against 146 MB for second generation (2G). Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the country in the next two years. India’s smartphone market grew by 171 per cent last year to 44 million devices from 16.2 million in 2012, as per research firm IDC India. The 20 km free Wi-Fi zone the longest across the globe was unveiled by Mr Nitish Kumar, the Chief Minister of Bihar, Government of India. ■■ Key Developments & Investments Japanese companies are keen to establish telecom gear test labs in India even as the government prepares to invite bids from private lab operators to pave the way for local testing from July 2014. Airtel Networks Kenya Ltd has sought an approval from the Communications Authority of Kenya to acquire the telecommunications licenses and subscribers of Essar Telecom Kenya Ltd. Tata Communications has signed a collaboration agreement with Turkey’s telecom operator Turkcell Superonline to set up a multiprotocol label switching (MPLS) node in Istanbul.

Bharti Airtel and six other GSM majors serving the Africa and Middle-East markets plan to forge network infrastructure sharing pacts to provide internet and mobile broadband access to unserved rural communities and drive down mobile services delivery costs for all sections of the population in these regions. Infotech Enterprises, through its US arm, plans to buy the US-based Softential Inc, which provides service management and service assurance solutions for telecom firms and cable operators. The deal size is pegged in the range of Rs 150-180 crore (US$ 25-30 million). Intelliverse Telecom, a cloud-based communication solutions provider launches IntelliGreeter, a virtual voice attendant for call routing to any phone. Bharti Airtel plans to invest more than Rs 4,000 crore (US$ 666.67 million) in Punjab over a period of five years. The company aims to take its fourth generation long-term evolution (4G LTE) services to all towns and villages across Punjab. Reliance Jio Infocomm has signed a master services agreement with Bharti Infratel to utilise the latter’s telecom tower infrastructure to launch its high-speed 4G plans where it will also offer voice over internet across the country. ■■ Government Initiatives The Government of India has approved the Empowered Group of Minister’s (EGoM) decision on spectrum pricing. The Group had endorsed the Telecom Commission’s proposal to fix reserve price for the 1,800 megahertz (MHz) and 900 MHz spectrum bands. Liberalised FDI policy in telecommunication has been proposed in the Union Budget 201415 to attract large investments. In addition, the states will partner in development so as to enable the Centre to focus on

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telecommunications besides other sectors. Bharat Sanchar Nigam Ltd (BSNL) will shortly sign a bandwidthsharing agreement with Power Grid Corporation of India to boost telecom connectivity across the Northeast, says a telecom department note. Power Grid will provide 400 gigabit per second (Gbps) of bandwidth to state-run BSNL for building a network path to improve connectivity in places close

to the Chinese and Bangladesh borders. ■■ Road Ahead The telecom industry and the Government need to work together to attract investments and exploit advances in technology. With the success in voice-connectivity being carried forward to data and emerging technologies including cloud computing, the government is targeting broadband connectivity

to over 600 million in 2020. Various policy initiatives by the Indian government have led to a complete transformation of the industry in the last decade. It has achieved a phenomenal growth during the last few years and is poised to grow further. On back of the ongoing investments into infrastructure, the country is projected to witness high penetration in the sector in the near future.n

ADVANTAGE INDIA

SHOWCASE - Vodafone India Vodafone India Ltd, headquartered in Mumbai, is the second largest mobile network operator serving over 150 million customers in India with a presence in all telecom circles. The company is a member of the Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone India has firmly established a strong position within the Vodafone Group too, making it the largest subscriber base globally. Vodafone Business Solutions serves the requirements of an enterprise. It is a total communications offering that caters to all their voice and data,

wireless and fixed-line needs. With the advantage of global expertise, experience and the knowledge of local markets, the business is run through the following verticals – Vodafone Global Enterprise, SME, National Corporate and Key Accounts. In line with the government’s objective to improve rural penetration of telephony services, the company has also worked continuously in the last few years to establish a strong rural presence. Vodafone has marked a growth of over 21 per cent in its rural subscriber base in FY 2011–12 to become the second largest rural wireless operator in the country. India Newsletter • 11

Embassy of India, Vienna

LATEST INDUSTRY NEWS 3G growth in India beats world average

ata traffic powered by thirdgeneration (3G) services grew at 146 per cent in India last year, higher than the global average that saw use double, according to an MBit Index study by Nokia Siemens Networks (NSN). Second-generation (2G) and 3G data combined grew 87 per cent, as 2G data growth stabilised, at 59 per cent. “The study also shows that 3G

users continue to consume more data on average than 2G users,” NSN said. The data consumed per subscriber for 3G is 532 megabytes (MB), against 146 MB for 2G. The use is much higher in major urban centers, at a gigabyte a month. “This indicates the rising popularity and uptake of 3G across India. In addition, premium tariff reductions in 3G services in early 2013 led to an increased migration of high-end 2G

customers to 3G,” said NSN. Half the growth in 3G comes from category A circles, which include large cities and metros. In these circles, 3G data traffic grew 185 per cent. These circles were also paid huge premia by operators to acquire licences and spectrum in the auctions of 2010. Category B circles accounted to 31 per cent of the total traffic. The study says that both categories indicate a big demand of high-speed services.n

PERSPECTIVES ON INDIAN ECONOMY Perspectives on Indian Economy

■■ Vision 2020

with Mr Krishnakumar Natarajan,

The Indian IT industry did reach the US$ 100 billion mark by 2010, which is why when we started this year, we shared the aspiration of saying this industry should be a US$ 300 billion industry by 2020.

Chairman, NASSCOM and CEO and MD, Mindtree Ltd Krishnakumar Natarajan, Chairman, NASSCOM

and

CEO

and

MD,

Mindtree Ltd has a rich experience of over 30 years in the IT industry and

known

and

respected

globally. He has played a critical role in setting up Mindtree’s operations in US and led expansion into Europe and Asia Pacific, besides enabling a transformation of the company’s IT services business. He also chairs the ‘emerging companies’ forum at NASSCOM, which endeavours to develop a globally competitive IT ecosystem in India, which will contain both, large and emerging companies. In this interaction with IBEF, Mr Natarajan talks about NASSCOM’s vision for the IT industry in 2020, the focus on products and platform-based solutions and the drive towards building a strong entrepreneurial

culture

industry going forward. 12 • India Newsletter

the

■■ Non-linear revenue growth Driving non-linear revenue growthquote The strength of the Indian IT industry has been in terms of doing business applications for customers. Using the knowledge that they have gained, I think that there is a tremendous opportunity for building platforms, which will manage a process end-to-end, and which will be driven by technology so that you get the benefits of automation and productivity. ■■ Next entrepreneurial wave Next entrepreneurial wavequote When there are new transitions happening on the technology front, we need to capture that big opportunity through innovation, and through building an entrepreneurial ecosystem. So in that context, what NASSCOM did around 8-9 months back was to

launch a very ambitious initiative called the 10,000 tech start-ups. ■■ Role of IT for India Role of IT for Indiaquote There are enough examples of Indian companies leveraging their global expertise and experience to bring in technology solutions, which are relevant in the Indian context and consequently you are already seeing the benefit and productivity, which technology can bring in to these areas. ■■ Beyond cost arbitrage Beyond cost arbitragequote Overall if you look at it, probably 98 per cent of Fortune 500 companies do business with the Indian IT industry. It is not just because they are saving 20 per cent to 30 per cent costs. Many of them have moved beyond that. ■■ Contributing to local economies Contributing to local economiesquote If you just look at the percentage of overseas employees as compared to the total workforce, that has itself grown around four-fold in the last three to four years.

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EXPERT BUSINESS ADVICE The article below was extracted from Dezan Shira & Associates’s publication entitled “India Briefing”. For further corporate assistance, consider contacting Dezan Shira & Associates, a specialist in foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. For further details or to contact the firm, please email Mrs. Gujan Sinha under gunjan.sinha@dezshira.com or visit www.dezshira.com

Establishing a Business in India

rospective companies and investors seeking to take advantage of India’s liberalized FDI caps must carefully consider their options for investment in the country, and available avenues for establishing a business presence. Here, we outline the functions and requirements for three entities that can be established when a business enters India or expands its scope of operations. The fourth option, wholly owned subsidiaries (private limited companies), will be discussed in next month’s article. Here, we discuss the following: 1) Liaison Offices, 2) Branch Offices and 3) Project Offices

Liaison Offices Foreign companies can open a liaison office in India to facilitateand promote the parent company’s business activities, and act as a communications channel between the foreign parent company and Indian companies. Unable to engage in commercial, trading, or industrial activities, liaison offices must be sustained by private, inward remittances received from their foreign parent company. A liaison office is permitted to engage in the following activities: ■■ Facilitate communication between the overseas head company and parties in India to establish market opportunities

■■ Promote imports/exports between countries ■■ Establish financial and technical cooperation between overseas and Indian companies ■■ Represent the overseas head company in India The Foreign Exchange Management Act (FEMA) governs the application and approval process for the establishment of a liaison or branch office. Under the Act, foreign enterprises must receive specific approval from the RBI to operate a liaison office in the country. Applications are to be submitted through Form FNC (Application for Establishment of Branch/Liaison Office in India). The approval process generally takes 20 to 24 weeks and permission to operate a liaison office is granted for a three-year period, which can be extended at a later date. An enterprise must also meet the following conditions before qualifying for the establishment of a liaison office: ■■ Must have a three-year record of profitable operations in the home country ■■ Must have a minimum net worth of US$50,000 verified by the most recent audited balance sheet or account statement If a company does not meet these requirements, but a subsidiary of a company that does, the parent company may submit a Letter of Comfort on the subsidiary’s behalf. A

company must submit a Certificate of Incorporation or Memorandum & Articles of Association, and a copy of the parent company’s latest audited balance sheet. The liaison office must also obtain a Permanent Account Number (PAN) from the Income Tax Authorities. Within 30 days of establishment, the liaison office must register with the Registrar of Companies (RoC) by filing Form 44 through the Ministry of Corporate Affair’s online portal. The following documents must also be provided: ■■ A copy of the liaison office charter or Memorandum & Articles of Association in English ■■ Full address for the enterprise’s principal place of operation outside of India ■■ Name and address of the liaison office in India ■■ List of directors ■■ Name and address of the company’s official representative based in India (e.g. the person authorized to accept delivery of notices and documents served to the company) Each year, the liaison office must file an Annual Activity Certificate (AAC), prepared by a chartered accountant, to the RBI verifying the office’s activities are within its charter. An AAC should also be filed with the Directorate General of Income Tax within 60 days of the close of the financial year. India Newsletter • 13

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Branch Offices Foreign companies, including those engaged in manufacturing and trading activities, are able to establish branch offices to carry out business activities substantially the same as those carried out by their parent company. Branches are permitted to carry out trading activities, but may not engage in manufacturing activities on their own—these may be subcontracted to Indian manufacturers. Branch offices operating in SEZs, however, are permitted to undertake manufacturing and service activities in sectors with 100 percent FDI approval. Branch offices are permitted to engage in the following activities: ■■ Export/import of goods ■■ Rendering professional or consultancy services, IT services, or technical product support ■■ Carrying out research work ■■ Representing the parent company as a buying/selling agent or in order to establish technical or financial collaborations with Indian companies ■■ Operating as a foreign airline or shipping company The FEMA also governs the application and approval process for the establishment of a branch office, requiring that companies receive approval from the RBI to establish a branch office. Permission to operate a branch office is granted for a threeyear period, which can be extended at a later date. An enterprise must also meet the following conditions before qualifying for the establishment of a branch office: ■■ Must have a five-year record of profitable operations in the home country ■■ Must have a minimum net worth of US$100,000 verified by the most recent audited balance sheet or account statement If a company does not meet these requirements, but is a subsidiary of a company that does, the parent 14 • India Newsletter

company may also submit a Letter of Comfort on the subsidiary’s behalf during the application process. The process for establishing a branch office is identical to that required for a liaison office, and the same documents including Form FNC, the Certificate of Incorporation or Memorandum & Articles of Association, and an audited balance sheet must be submitted. A PAN must also be acquired, and the office must register with the Registrar of Companies through the Ministry of Corporate Affair’s online portal. Each year, the branch office must also file an AAC, prepared by a chartered accountant, to the RBI verifying the office’s activities were within its charter. An AAC should also be filed with the Directorate General of Income Tax within 60 days from the end of the financial year. All profits earned by the branch office may be remitted from India, and will be subject to payment of all applicable taxes.

Project Offices If a foreign company has secured a contract from an Indian company to execute a project in India and has attained the appropriate funding source or governmental clearance, a project office may be established. One of the following criteria must be met in order to obtain permission to establish a project office: ■■ The project is funded directly by inward remittance from the overseas head company ■■ The project is funded by a bilateral or multilateral international financial agency such as the World Bank or IMF ■■ The project has received clearance by the relevant authorities within India ■■ The Indian company awarding the contract has received a term loan for the project If none of the above criteria are met, an overseas company looking to establish a project office in India

must make a specific request with the Central Office of the RBI for approval. The project office should notify the relevant regional Director General of Police within five days of the office’s establishment. Within two months of the project office’s establishment, the overseas company must also submit a report to the relevant regional office of the RBI through the authorized dealer branch bank (AD) that will be used by the foreign company. This report should include: ■■ Name and address of the overseas company ■■ Reference number and date of project contract ■■ Particulars of the authority awarding the project contract ■■ Total amount of the contract ■■ Brief details of both the project undertaken and authorized dealer branch bank ■■ Project details, including project office tenure and contact information Each year, the project office will be required to submit a Project Status report compiled by a chartered accountant to the company’s AD branch. This report ensures the activities undertaken by the project office conforms with the activities permitted by the RBI. Project offices may open a noninterest bearing foreign currency banking account with an authorized dealer branch in India for project expenses and credits. The office may maintain both a foreign currency account and a rupee account while operating in India. Project offices are allowed occasional remittances to their parent companies and must provide a chartered accountant certificate verifying the offices can still meet their liabilities. Following project completion, the project office may repatriate any capital surplus once all tax liabilities have been paid, a final audit of the project accounts has been completed, and a document verifying the remittable surplus provided.

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TRADE FAIRS INTERESTED IN VISITING A TRADE SHOW IN INDIA? 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/subsidies.

D! >>

RE-SCHEDULE

India Newsletter â&#x20AC;˘ 15

Embassy of India, Vienna

ITM Poland is the biggest machinery fair and the widest offer of the Polish and world industry. It is a synergy of professional exhibitions. Six different exhibitions make it possible to show the stages of creating a modern product - from its conception and design, through various processes.

The India Show is an initiative of Ministry of Commerce, Government of India to promote Brand India across the globe and provide a platform to Indian Exporters to showcase their strengths and capabilities in emerging markets and developing countries. EEPC India takes \\\’The India Show\\\’to the economic capital of Poland, Poznan. The India Show, a part of the Innovations Technologies Machines (ITM) is being organised at Poznan International Fair - Miedzynarodowe Targi Poznanskie from 3rd to 6th June 2014.The large no. of Indian companies showcasing their products and services at ITM will help them tap newer business opportunities. India is not just participating, but would be a partner at the ITM Poland 2014.

16 • India Newsletter

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INVEST INDIA Federation House, Tansen Marg New Delhi—110 001 0091-11-23765085, 23487278 investindia@ficci.com www.investindia.gov.in

nvest India is the country’s official agency dedicated to investment promotion and facilitation. Set up as a joint venture between FICCI (51% equity), DIPP (35% equity held by the Department of Industrial

policy and Promotion, Ministry of Commerce & Industry) and State Governments of India (0.5% each), its mandate is to become the first reference point for the global investment community. It provides granulated, sectorspecific and state-specific information to a foreign investor, assists in expediting regulatory approvals, and offers hand-holding services. Its mandate also includes assisting Indian investors make informed choices about investment opportunities overseas.

India Newsletter • 17

Embassy of India, Vienna

TOURISM India in Regions

here’s so much to India that we need to view it in parts India as a picture of “unity in diversity” can best be seen in the attributes of its people spread across five zones that together combine to form Incredible India. Its culture, tradition, history and mythology, combined with an enduring penchant to excel in every possible way, produce an ethos unparalleled in the world. A brief description of each zone will help the reader to select his main areas of interest. ■■ North Zone This part of India has all hues of geography. From the regal mountain ranges to the sandy plains that stretch the miles of imagination. From the dense green forests to the open expanses of snow. On its east spreads the Gangetic plain, through which flows the most sacred of Indian rivers - “The Ganga”. The Aravalis, a range of hillocks undulates across the region’s western part and stretches to the North. Going further one comes across a thin strip of a mountain range called the Shivaliks. Rising to about 4,000 feet, these foothills take you to the mighty Himalayas. Extending from Rajasthan - the exposition of the deserts and royalty; Haryana and Punjab - the granary to the nation, you go up to Jammu & Kashmir - the ‘Heaven on Earth’. Many an attraction is found in Uttar Pradesh, Himachal Pradesh and Uttarakhand. Chandigarh, Capital of two states is a refreshingly planned city. Delhi - the Country’s ever-changing National Capital could itself take a few weeks to explore. ■■ South Zone Despite each of the four states having its own language, this is a zone of much homogeneity. The depth of culture of yore is still evident and revered. The unique 18 • India Newsletter

architecture of most temples tell the story of many centuries. The same is matched by the throngs of devotees. A peninsula, it is between two coastal hilly regions known as the Western Ghats and the Eastern Ghats. Tapering down to the Indian Ocean with the Arabian Sea to its west and the Bay of Bengal to its east, it presents sands, sunsets and many monuments. Travel here for eco-tourism, boating in the lush green backwaters and Ayurvedic Spas apart from the sights and entertainment. Visit this region to enjoy the serenity and splendour of temples and an abundance of long and wide beaches fringed with palm trees. Stay longer to savour the variety of the cuisine. ■■ East Zone Rich in Hindu mythology, this zone boasts of being home to Lord Rama’s consort, Sita, and much later to Ashoka the Great, Chandragupta Maurya, Chanakya and Sher Shah Suri. Relics and traces of this magnificent era of art, culture and illustrious emperors, are visible in the state of Bihar. Jharkhand, to its immediate south, amidst verdant, rolling plains can best be described as India’s Rhineland. Remains of Nalanda University speak of it as a seat of learning. Lord Buddha attained “Nirvana” here at Bodh Gaya. The Nobel laureate, poet, philosopher and artist Rabindra Nath Tagore’s imprint is writ large all over West Bengal. Further south is Odisha, studded with ornate temples and beautiful beaches. The sunset at Puri is famed as perhaps the most beautiful in all of Asia. In the Bay of Bengal is the archipelago of the Andaman & Nicobar Islands known for their unspoiled beaches and tribes caught in a time warp many centuries ago. ■■ West Zone This region has a diverse history. On the one hand, it has within its ambit,

the birth place of Mahatma Gandhi, the genius who gave peace a new potential. On the other, it is replete with the heroism and martial acts of Shivaji and other Maratha kings. Palm fringed beaches, sand dunes, ancient caves with world famous temples, past glory of the Maharajas. The home, if there ever is one, to the nomadic tribes. It is also home to many age-old crafts and cultures, typical to the region. Add to that the most flourishing economic Capital of India - the megapolis Mumbai. The west zone is a welcome roller coaster ride of many delightful experiences. ■■ North-East The eight states of I North Zone South Zone East Zone West Zone North East Zone the North-East are nature’s blessing at a higher altitude. The picturesque, idyllic and largely mountainous landscape is the habitat of various species of flora and fauna found from sea level to above the snowline. The mountainous state of Sikkim, boasts of the third highest mountain in the world, Kanchenjunga. Its picture postcard beauty is unparalleled in the entire region. The dances and music of each of the states is refreshing, yet retains the old world charm. The colourful costumes, wide, genuinely happy smiles and rosy cheeks of small children welcome you everywhere

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India Newsletter â&#x20AC;˘ 19

Embassy of India, Vienna

INDIA IN AUSTRIA - PAST EVENTS Ayurveda Seminar in Klagenfurt

n March 20th, the Chamber of Commerce Carinthia organized an Ayurveda event in Klagenfurt. With this event counted with an introduction into the world of

Ayurveda by a recognized experts an offered an overview of Ayurveda product selection. This oldest healing art in the world offers a number of development potentials for Austrian chemists as well as all professions dealing with

wellness and health improving measures. Such initiatives are supported by our Mission and this time, the event counted with the presence of our Third Secretary, Mr. Pawan Badhe. Some impressions of the event:

OVERSEAS INDIAN AFFAIRS Tracing the Roots Programme “Tracing the Roots” is a scheme of the MOIA to help descendants of Indian expatriates who emigrated decades ago to ascertain the areas and relatives in India to which their ancestors belonged. Guidelines for ‘the Programme 1. The programme was designed by the Ministry of Overseas Indian Affairs (MOIA); to assist Persons of Indian Origin (PIOs) in tracing their roots. 2. Persons of Indian Origin desirous of tracing their roots in India would be required to fill up the prescribed application form and deposit it with the concerned Indian Mission/Post located in the country of their residence along with a fee of Rs 30,000/- (Rupees thirty thousand) in equivalent US $, Euro or any other foreign currency acceptable to the Indian Mission/Post. All useful information/documents that could be of help in tracing the roots may be submitted along with the application. 20 • India Newsletter

3. The Mission, after checking and accepting the application, will forward it to the MOIA for initiating action on the application. 4. The details of roots in India (where traceable) i.e. name of close surviving relative(s), details of the place of origin of their forefathers (paternal and maternal side) and a possible family tree will be made available to the applicant at the earliest. 5. The information collected, including details of family tree, would then be sent to the concerned Indian Mission/Post at the earliest for onward transmission to the applicant. 6.In case of any doubt about the genuineness of the‘roots’, the decision of the Ministry, taken in consultation with the applicant and concerned authorities involved in tracing the particular roots, will be final and binding. 7. An advance of Rs.10,000/- (Rupees ten thousand only) will be paid to the organisation/ firm which is entrusted

with the job of tracing roots,in each case. In case of successfully tracing the roots, the balance Rs.20,000/- (Rupees Twenty thousand only) will be released by the Ministry to the concerned organisation/firm. In case the attempt is not successful, the Indian Mission/ Post will be authorized to refund foreign currency equivalent to Rs 20,000/(Rupees Twenty thousand only ) to the applicant at the official rate of exchange, as determined by the Government of India, applicable on the date of the refund. N. B. The programme provides for gathering information relating to the ancestors of the applicant and does not have any provision or arrangement for the visit by the applicant to his/her ancestral place(s). In case the applicant wishes to visit these places, the Ministry/ organisation/firm concerned would facilitate such visits at the applicant’s cost .

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INDIA PERSPECTIVES MAGAZINE India Perspectives is now available on all mobile platforms The flagship magazine of the Ministry of External Affairs,India Perspectives, is

now available on all mobile platforms and App Stores through Magzter Mobile App, in 14 languages. in addition to web at www. indiaperspectives.in it can also be found at Apple, Google Play, Windows

8, Samsung, Amazon and Huawei platforms An exclusive webpage of the Ministry of External Affairs, has been created on Magzter.com. ( One of the biggest Digital Magazine Stores)

www.magzter.com/publishers/meaindia

India Newsletter â&#x20AC;˘ 21

Embassy of India, Vienna

INDIAN MOVIE EVENING AT THE EMBASSY 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, via email under marketingofficer@ indianembassy.at

Du liebst mich, du liebst mich nicht | Jaane Tu... Ya Jaane Na

hile on the way to the airport, Mala, who Jignesh Patel believes

is going to be his future girlfriend, must listen to the romantic overtures of a group who are obsessed with the popular number ‘Jaane Tu Ya Jaane Na’ from the movie ‘Aa Gale Lag Jaa’. The story is about Jai Singh Rathore and Aditi Wadia, two friends who are so close that the Wadias decide to get them married. But both disagree, and decide to seek soul mates for each other. With Aditi’s help, Jai meets Meghna, and both fall in love with each other. Jai is introduced to her parents, who also approve of him. Aditi’s is then introduced to Sushant Modi, who instantly finds approval, even with her reclusive brother, Amit. Mala anxiously awaits the climax as the story unfolds with many twists and turns. ■■ Director: Abbas Tyrewala ■■ Stars: Imran Khan, Genelia D’Souza, Manjari Phadnis ■■ Genre: Comedy / Romance ■■ Duration: 145 min ■■ Release Year: 2008 ■■ Language: Hindi / English ■■ Subtites: German

Showtime April 25th, 18:00 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) 22 • India Newsletter

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INDIA IN AUSTRIA - AGENDA The Mahabharata Everyone in India knows this great epic by heart but the rest of the world seems to be quite ignorant about it. Many people here in Austria don’t know the story and often have never even heard about it. Theater 7, a group of professional stageartists, would like to change that. The Mahabharata is not only an essential part of India´s cultural heritage, but it is also an important part of art and culture of the world - world heritage. Theater 7 is producing a version of the Mahabharata for an audience from the age of 15 and above. The play will be performed in German. Two actors are going to embody all the main characters of the story in rapid

changes of scenes and with powerful virtuosity – all within 99 minutes. They are going to build a bridge between the ancient culture and the world of today, between the deep spirituality of India and the philosophical questions of the West. And they are going to prove that drama can be funny sometimes as well.

■■ Where

■■ The Team

29th of May

7.30pm

Concept, Skript: Tilmann Schillinger, Vanessa Payer Kumar

30th of May

7.30pm

Director, Supervisor: Anselm Lipgens

www.mahabharata.at

Stage: Gunter Thurner

www.startnext.de/mahabharata

Costumes: Marianne Schulz

www.dschungel-wien.at

Music: Emanuel Schulz

Theater 7 is supported by the international Theatre Group TEVTheatre of Eternal Values

Actors: Vanessa Payer Kumar, Helmut Schuster

Dschungel- Theaterhaus für junges Publikum ■■ When 26th of May 27th of May

10am 10am

7.30pm 7.30pm

28th of May

10am

7.30pm

■■ More Information

India Newsletter • 23

Embassy of India, Vienna

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