India newsletter 05 2015

INDIA NEWSLETTER www.indianembassy.at

Published by the Embassy of India, Vienna Year 5 • Issue 53 • May 2015

MAKE IN INDIA CONSTRUCTION

India Newsletter • 1

Embassy of India, Vienna

The new Government has prepared a five pillar strategy to drive India’s growth, which offer multiple avenues of collaboration and investments

■■ Infrastructure Development

■■ Manufacturing Growth

■■ Skill Development

■■ Energy Sufficiency

■■ Improved Business Environment

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NEWS FLASHES

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The Ministry of New and Renewable Energy (MNRE) has approved the sale of tax free-bonds worth Rs 5,000 crore (US$ 783.98 million) to support the Government of India’s solar mission.

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The Government of India’s spending on information technology is expected to increase by 5.7 per cent to reach US$ 6.8 billion in 2015, on back of government’s push for electronic service delivery for citizens and increase in the use of platforms such as Adhaar, and projects such as smart cities, according to Gartner.

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Two biosimilar drug molecules developed by Indian Biocon Ltd to treat cancer and rheumatoid arthritis has entered global phase 3 clinical trials, which entail testing on patients to assess effectiveness and safety.

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MakeInIndia’s FDI pull: FDI registered a 57% increase during OctFeb 2014-15 vs the same period in 2013-14.

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India has become the largest market for e-learning after the US, and the sector is expected to receive a boost from the government’s Rs 1.13 trillion (US$ 17.65 billion) ‘Digital

India’ initiative, according to a UK-India Business Council report.

year, said Mr Ashok Gajapathi Raju, Union Minister for Civil Aviation, Government of India.

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In a sign of the rising opportunities in India, the country outpaced China in the number of deals struck by venture capital funds in the first quarter of 2015. India witnessed 69 deals happening in the first quarter as against China’s 66, according to a report by CB Insights, a New York-based firm that tracks VC funding.

The Government wants to make India an attractive tourist destination so that the country’s share in world tourist arrivals (WTA) rose to 2 per cent by 2025 from the current 0.68 per cent, according to the draft of a new tourism policy released.

Foreign tourist arrivals (FTA’s) in India increased from 2.38 million in 2002 to 7.7 million in 2014.

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India ranked at 13th position in terms of electricity generation amongst 31 countries who use nuclear as a source, according to the data published by Power Reactor Information System (PRIS) of International Atomic Energy Agency (IAEA).

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During the current year, cargo sector of India has registered a phenomenal growth of 10 per cent over the previous

The Government of Spain has submitted a draft memorandum of understanding (MoU) for cooperation in developing smart and sustainable cities in India. Spain has proposed to assist in developing Delhi as the first global and smartcity in India under the framework of this draft MoU. Securities and Exchange Board of India (SEBI) has issued broad guidelines for international financial centres (IFCs), aimed primarily at reversing the export of India’s financial markets.

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Hitachi India Ltd and Siemens Ltd have signed a memorandum of understanding (MoU) with Confederation of Indian Industry (CII) on March 17, 2015, to form a consortium that would create pilots and replicate them throughout the country for setting up 100 smart cities.

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The Ministry of Railways has sanctioned implementation of Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) with freight train speeds of maximum 100 kilometres per hour.

India Newsletter • 3

Embassy of India, Vienna

NEWS ARTICLES India to become fifth largest market in the world in infrastructure projects

India among top five markets for Japanese auto majors

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here’s something about India as a market that’s enticing the behemoths of automobiles. And they’re coming in hordes.

The country now ranks among the top markets for Japanese automobile companies like Suzuki, Yamaha, Honda and Toyota among others.

Although thanks to Maruti Suzuki’s market leadership in the car segment, India has been topping Suzuki’s global markets both in terms of volumes as well as revenues, now the situation is being replicated by other Japanese biggies like Yamaha, Honda and Toyota as India moves up the global pecking order. The Indian market now ranks among the top five markets globally for almost all the top Japanese automobile brands.

Take Honda Cars India, the fourwheeler local subsidiary of Honda Motor Corp. Thanks to some top-gear growth in the last two years, India now ranks as Honda’s fourth biggest market by volumes.

Said Jnaneswar Sen, senior vicepresident, marketing & sales, Honda Cars India: “India ranks after the top three markets of US, China and Japan globally thanks to our good growth run for the past two years.

HCI clocked 41% growth 2014-15 selling 1.89 lakh units up from 1.34 lakh units the year before. In 201314, we clocked a growth of 83% year-on-year. Leaving out the luxury cars, Honda is the fastest growing car brand in India. Our current market share in India is over 7%.”

Honda’s top-gear run has prompted the Japanese car maker to expand capacity at its second plant in Rajasthan from 1.2 lakh units to 1.8 lakh units. “Our target is to sell 3 lakh units in India by 2016-17.”

Ditto for fellow Japanese brand Yamaha which now pegs India just

he Royal Institution of Chartered Surveyors, (RICS) research report says India is all set to become fifth largest market in the world in infrastructure projects, up from 5.3 per cent in 2015 to 9.8 per cent in 2030.

The report “Our Changing World: Let’s be ready”, calls for action in six areas support the profession and the sector in preparing for the challenges and opportunities.

The report examines how global social and economic changes will require new skills, business models and responses to developing technologies over the next 15 years.

“Real estate and construction sector in India is continuously evolving at a rapid pace. All stakeholders of this profession need to come together to attract high quality talent in this sector - something which we see as being critical in meeting long term growth.” Sachin Sandhir, Global MD Emerging Business, RICS, said.

It added that professionals in the built environment sector must take concerted action to prepare for the unprecedented global change the sector will face up to 2030.

The report draws on the views and perspectives of stakeholders from diverse specialisms and geographies across the surveying profession, globally. It captures the insights and expectations of what they project the most pertinent issues on the horizon will be leading to 2030.

Through workshops, public forums and one-on-one interviews, more than 400 people from Asia, North America, South America, Europe and Africa shared their outlook of what the future may look like.

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after its global top market Indonesia.

Said Roy Kurian, VP-marketing and sales, Yamaha Motor India: “India will become Yamaha’s second largest volume market after Indonesia by year-end though there will be quite a large gap between the No1 and No2 markets. Earlier Vietnam used to be our second largest market but that is now expected to slide to No3 in the pecking order.” Yamaha is already adding another 1.8 million units (in phases) thanks to its new plant in Chennai. Along with its existing plant in Surajpur, the fresh capacity will take Yamaha’s total two-wheeler production in India to nearly 3 million units.

For Toyota Kirloskar Motor, Thailand, Indonesia and India comprise the troika of “significant markets” in the Asia Pacific region. “India stands pretty tall in Toyota’s gameplan and is the third market after China and US in terms of importance,” said Shekar Viswanathan, vice-chairman and whole-time director, Toyota Kirloskar Motor.

Even relative newcomers like Nissan are stepping on the gas for some India action. Said Arun Malhotra, MD, Nissan Motor India: “India is one of the largest hubs for the investment that the RenaultNissan Alliance has envisaged for a very competitive market like India. Our manufacturing facility is the largest that the Alliance has developed so far across the world with a production capacity 480,000 units. India is the first, among other growth markets across the world where Datsun made a world debut.”

Spain furnishes draft MoU for smart city cooperation; proposes to develop Delhi as global and smart city The Spanish Government today submitted a Draft Memorandum of Understanding for cooperation in developing smart and sustainable cities in India. The Draft MoU

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relating to urban development was presented during the meeting of a high level Spanish delegation led by its Minister of Foreign Affairs and Cooperation Shri Jose Garcia – Margallo y Marfil with the Minister of Urban Development Shri M.Venkaiah Naidu in Parliament House. Spain has proposed to assist in developing Delhi as the first global and smart city in India under the framework of this Draft MoU. Spain has come up with the Draft MoU further to the visit of Shri Venkaiah Naidu to Barcelona to attend the Smart City Expo World Congress in November last year and the meeting of Spain’s Secretary of State for Trade Jamie Garcia Legaz in February this year with Shri Naidu.

Welcoming Spain’s interest in the Indian Government’s initiative of building smart cities, Shri Naidu told the delegation that the Draft MoU would be examined by the Government for further action in consultation with all concerned agencies.

The Spanish Minister said that his country is among the world leaders in building Railway and Metro networks, Roads and Ports besides in Shipping, Recycling of Waste, Water Management and promoting Renewable Energy Sources and was keen to associate with India in its efforts for infrastructure promotion.

The visiting Minister referred to the extensive work done by Spanish companies in Latin American countries in this regard.

Shri Venkaiah Naidu gave a detailed account of the measures being taken by the central government to promote investments into the country by enhancing the ease of doing business, developing infrastructure, liberalizing FDI norms etc.

During the discussions it transpired that Spanish Foreign Minister is visiting India after 42 years on a substantial visit and five high level visits of Spanish leaders to India have taken place during 2015 so far including those of Ministers of Defence, Trade and Prime Minister’s

Special Envoy highlighting Spain’s interest in the development initiatives of the Indian Government.

India’s economy to grow 7.5% in FY’16 and 8% by FY’18: World Bank

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he World Bank said that India’s economy seemed to have turned the corner, with outlook improving significantly. It, however, projected the economy to expand by 7.5 per cent during the current financial year, much lower than the Budget assumption of 8.5 per cent.

In its ‘India Development Update’, the World Bank pegged India’s economic growth rate at 7.9 per cent for the next financial year (FY17) and eight per cent for FY18, which are not up to the expectations of the government, but higher than the International Monetary Fund’s (IMF) projections. While the IMF projected India’s economic growth to be 7.8 per cent even in 2020-21, according to the World Bank, there will be much faster growth.

The Bank warned against domestic risks — weak banking sector due to bad debts and a slowdown in credit growth, stuck-up projects, over-leveraged corporate sector, etc. Besides, there are external challenges which might come in the form of reversal of declining oil prices, normalisation of monetary policy in the US and weak global trade growth.

With India’s economy mostly domestic-driven, internal risks far outweighed external risks, the Bank said.

The Bank assessed that India’s economy grew 7.2 per cent for FY15, lower than the official advance estimate of 7.4 per cent.

The World Bank’s projections for India’s growth for FY16 was not only quite lower than the Budget assumption, but also the Reserve Bank of India (RBI)’s expectation of 7.8 per cent.

“Going forward, acceleration in real GDP growth would be driven largely by higher gross fixed capital

formation, which is expected to grow at an average 11 per cent annually during FY16-FY18,” the report said.

While Finance Minister Arun Jaitley said the new normal for economic growth should be 9-10 per cent for the government to set its eyes on, according to National Institution for Transforming India Aayog ViceChairman Arvind Panagariya, India’s economy might grow 8-10 per cent in the next 15 years.

Giving the details of the report, Poonam Gupta, senior economist with the World Bank, said the economic growth spurts were comparable with what was seen in the mid-1990s and mid-2000s.

Talking of domestic risks, the Bank highlighted the importance of persistent reforms. It said if implemented fully, reforms might improve the business environment and alleviate constraints to firm growth.

To a query on the assessment of the Narendra Modi government’s efforts to improve business climate, World Bank country director for India, Onno Ruhl, said: “I would describe the government’s work on ease of doing business as very strong.”

He said the current situation offered an opportunity to further strengthen the business environment and enhance the quality of public spending. India stood 142 among 189 countries in the World Bank’s ranking in terms of ease of doing business. The Modi government aims to improve India’s position to 50 in two years.

Gupta said India should explore alternative channels for long-term investment, while reviving the public-private-partnership model of financing to meet India’s yawning gap.

“Simultaneous efforts to increase the tax-to-GDP ratios, through the timely implementation of GST (goods and services tax) as well as complementary measures to improve tax administration and compliance can generate additional fiscal space in the years ahead,” she India Newsletter • 5

Embassy of India, Vienna

said. Gupta added although the government and RBI had signed inflation targeting framework, the monetary transmission mechanism remained weak.

Cautioning against external risks, the World Bank said that even though the Federal Reserve board had continued to maintain its stance on monetary policy, the expectations were that it would start the tightening phase sometime soon.

“India being one of the larger financial markets and a large recipient of capital flows, could be adversely affected by a re-balancing triggered by the tightening of the Fed’s monetary policy,” it said.

While Gupta said she did not expect the Fed to raise rates at its meeting that would conclude on Wednesday, several countries and regions with strong trade, diaspora and investment links with India continue to face a soft growth patch, dampening the external outlook.

Countries that figure most prominently among large destinations for Indian exports as well as its diaspora, such as the United Arab Emirates, Saudi Arabia, China and Europe, among others, face subdued growth prospects.

“These could translate into some slowdown in remittances, and possibly in FDI (foreign direct investment) flows into India, while undermining the prospects for resurgence in exports growth,” the Bank said.

Warning further, the report said the current economic narrative described in the Economic Survey as India being in a “sweet spot”, characterised by decline in inflation, current account deficit, and fiscal restraint derives partly from the recent sharp decline in the international prices of oil, metals and food.

“This narrative could alter if prices fail to stay low, reinforcing the imperative for the government to insulate the economy even more determinedly from the global price of oil,” it said.

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The Bank said this could be done by weaning the fiscal outcomes fully from oil prices by reducing the intensity of use of imported oil, while encouraging alternative sources of energy; by mulling the possibility of creating additional fiscal buffers by using petroleum taxation more actively; and by appropriating the current sweet spot moment to further rationalise the still high levels of subsidies on food and fertiliser.

Govt eases norms for oil, gas fields development

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he government on Wednesday approved a policy for determining commercial viability of oil and gas finds, giving explorers flexibility on the manner they want to develop these finds and laying out a predictable business framework for investors risking their capital.

The policy outlining a uniform testing method for all auctioned fields, approved by the Cabinet’s panel on economic affairs, would benefit state-run ONGC and Reliance Industries Ltd (RIL) in the immediate term. Both these companies have six discoveries each that are stuck due to dispute over the testing method.

These discoveries are estimated to hold gas worth Rs 1 lakh crore at prevalent price.

The oil ministry has already put in place a policy allowing flexibility to explorers on relaxations and extensions or exit during exploration and development. Together the two measures would further remove rough edges in the exploration policy and contribute towards restoring investor confidence.

The new policy gives companies option to either develop discoveries at their own risk or perform tests prescribed by the Directorate General of Hydrocarbons, the ministry’s technical arm, before developing the finds and recovering the entire cost.

The policy allows companies to either relinquish blocks or develop discoveries after conducting drill

stem test (DST), with 50% of the cost of the test will not be allowed to recover if it is not conducted on time. The cost recovery for DST would be capped at $15 million.

Alternatively, companies can develop the discoveries without conducting DST in a ring-fenced manner — at their own cost. The expenditure incurred in developing these finds will be recouped only if the fields prove to be commercially viable. “If the contractor does not opt for any one of these options suggested above within 60 days of the Cabinet approval then the area encompassing these discoveries shall automatically be relinquished,” a government statement said.

The new policy will help RIL monetise three discoveries in its flagging eastern offshore KG-D6 block. It had notified the Dhirubhai-29, 30 and 31 finds in 2007 and submitted a formal application for declaring them commercially viable in 2010, well within the timelines set in the Production Sharing Contract.

But the DGH refused to recognise the discoveries in the absence of prescribed tests.

Extension of e-Tourist Visa scheme to 31 more countries

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overnment of India has launched e-Tourist Visa (old Name: Tourist Visa on arrival enabled by Electronic Travel Authorisation) on November 27, 2014 to 45 countries from nine designated Indian Airports.

This facility is being extended to 31 more countries from May 01, 2015. The new countries included in e-Tourist Visa scheme are Anguilla, Antigua & Barbuda, Bahamas, Barbados, Belize, Bolivia, Canada, Cayman Island, Chile, Costa Rica, Dominica, Dominic an Republic, Ecuador, El Salvador, Estonia, France, Georgia, Grenada, Haiti, HolySee (Vatican), Honduras, Latvia, Liechtenstein, Lithuania, Macedonia, Montenegro, Montserrat, Nicaragua, Paraguay, St.Kitts & Nevis and Seychelles.

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With the above addition, the total number of countries under the scheme will go upto 76. The scheme will be extended to more countries in a phased manner. The Government is committed to extend the scheme to 150 countries by the end of this financial year.

Nivea opens first plant in India, invests Rs 850 crore

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ersonal care products maker Nivea India Pvt. Ltd on Tuesday opened its Rs.850-crore plant at Sanand in Gujarat, its first in the country.

It will help the company raise the development and production capacity for India and the South Asian Association for Regional Cooperation (Saarc) markets, the Indian affiliate of German personal care major Beiersdorf AG said in a statement.

The 72,000 sq. m. land to build the plant at the Gujarat Industrial Development Corp. (GIDC) industrial park was acquired by the company last year.

While the company did not reveal latest sales figures, in 2013 Nivea India sold about 60-70 million units, importing nearly 60% of this. The company expects to reduce imports by half once the factory goes on stream, its company officials had said during the ground breaking ceremony in June 2014.

Currently, the factory has about 200 employees. The plant has a capacity to produce about 80 million units a year, including creams and lotions in tubes, jars, tins and bottles. The plant will make Nivea and Nivea Men brand products for India and neighbouring countries.

“German companies have been making in India for a long time.

Beiersdorf is present since almost a century. And it is great that Beiersdorf now not only invests over Rs.850 crore here in Sanand, but also teams up with authorities to boost skill development—a field where India and Germany are ‘natural partners’, as PM Modi has rightly

put it,” said Michael Steiner, German Ambassador to India.

The new unit also houses a regional development lab to focus on innovations especially for Indian consumer needs and for catering to neighbouring markets. “The idea is to get closer to the consumer and to respond faster to market needs. We can focus on local insights with greater flexibility and develop products that are suitable for Indian skin care needs. Our aim will be to provide products of the highest quality that are aspirational yet accessible for the growing Indian middle class consumer,” said Stefan De Loecker, executive board member, Beiersdorf AG. Beiersdorf had sales of €6.3 billion in 2014. Nivea is the flagship brand in its portfolio, which also includes brands such as Eucerin, La Prairie, Labello, and Hansaplast. “This is Nivea India’s contribution to the Make in India initiative”, said Rakshit Hargave, managing director of Nivea India, highlighting the progress the company has made in India over the last few years.

The skincare and deodorants market in India is about Rs.7,000-7,500 crore, according to the company.

Make in India drove FDI up by 56%: data

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s the government struggles to maintain investor confidence, foreign direct investments (FDI) into India has surged by 56% in five months since the Make in India programme was launched on September 24, official data revealed.

The inflow into the manufacturing sector alone saw a jump of 45% at $6.9 billion from $4.8 billion in the corresponding period a year ago.

“India received $21.2 billion in inflows overall during the fivemonth period, against $13.5 billion in the same period last year.If this surge continues, then as per our estimates, 2015-16 would be the year with the second highest FDI ever received by the country since 2000 (when maintenance of data

started),” the official said.

The highest FDI inflow into India was in 2010-11, at $45 billion. FDI inflows in April-September 2014 were to the tune of about $16 billion.

Of the five months under consideration, December and January saw the highest FDI inflows, the officials said. Industry experts say that the Make in India campaign has been a game-changer for the investment climate.

Said CII president Sumit Mazumdar: “Make in India has worked a lot for India. The recent Hannover fair was a classic example where every investor was excited and wanted to know more about the campaign to plan their investment in India accordingly.”

According to data for April 2014-February 2015, Mauritius ($8.44 billion or Rs. 50,640 crore), Singapore ($6.42 billion), the Netherlands ($3.29 billion), Japan ($1.72 billion) and the US ($1.69 billion) were among the leading investors.

India’s e-learning market second largest after US, says report

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ndia has become the largest market for e-learning after the US, and the sector is expected to receive a boost from the government’s Rs.1.13 trillion Digital India initiative, says a recent report by the UK-India Business Council.

While the existing educational infrastructure is inadequate to meet the current and future needs of the country, the Digital India initiative will increase Internet access, which in turn will help take quality education to large parts of the population that have been hitherto neglected, says the report.

India’s e-learning sector is expected to grow at a compounded annual rate of 17.4% between 2013 and 2018, twice as fast as the global average.

“Education providers from various countries are aggressively targeting the Indian market and India Newsletter • 7

Embassy of India, Vienna

the competition is stiff. For instance, Germany is strong on centres of excellence and education as part of its development agenda.

The Australian model is based on government-sponsored assessment programmes.

It has gained popularity because the certifications issued are recognised by Australian authorities,” the report says.

Many business in India are developing e-learning content for markets such as the US, Australia, the UK and Europe. This content is not being deployed locally because of infrastructural and technological inadequacies, says the report.

E-learning also has a role to play in providing the required skillsets to future job market entrants. By 2022, the country faces a potential shortage of 250 million skilled workers across sectors. The report said the tourism and hospitality sector is a critical areas for skill development, apart from the manufacturing.

India is the world’s third largest market by Internet users, behind China and the US, but it has only achieved 16% Internet penetration as compared with 45% in China, and 84% in the US, according to industry estimates.

Meanwhile, emerging technologies including cloud, big data and the Internet of Things are changing the way e-learning content is being produced and consumed.

“Technological advances are affecting the way we learn and work and disrupting the education sector globally. Big data allows for greater customisation of learning solutions, in the way that Amazon tailors its products to consumers’ needs.

This opens up endless possibilities for education providers,” says the report.

India all set to be biggest mobike market for Honda

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onda Motorcycle & Scooter India may become the largest two-wheeler operation for Japanese giant Honda Motor Company

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globally by 2017-18.

The current capacity additions and the resultant increase in marketshare will make HMSI the top volume contributor for Honda in the two-wheeler market globally, Honda officials said. Although revenue wise, India will still lag in higher value markets where the pricier higher displacement bikes rule, in volume terms India’s contribution to Honda’s incremental growth is already a staggering 98%.

Keita Muramatsu, President & CEO, HMSI: “In the next two years, Honda India’s operation will be the largest for Honda Motor globally in the two-wheeler business in terms of volumes. We are currently at 27% marketshare in India and the market is still growing so there is scope for further growth and more room to increase our marketshare.”

In the last financial year, Honda Motor Company added 7.4 lakh vehicles globally of which HMSI’s share was 7.3 lakh. Currently Indonesia is the top volume market for Honda in terms of two wheelers but a stagnant market and high marketshare means growth opportunities are slimmer there.

“Honda’s marketshare in Indonesia is already 60%,” said Muramatsu.

“Also that market is already quite saturated so there is less room to grow.” However, because of India’s preference for commuter bikes which are lower priced, HMSI’s revenue contribution to the parent kitty is not top of the league yet.

HMSI has rolled out an aggressive production and marketing plan that will see it hit 6.4 million units capacity by end 2016. “Our target right now is to hit 100% capacity utilization. We have invested in our fourth plant in Gujarat and on a yearly basis, by next year, the capacity should reach 5.8 million units,” said Muramatsu.

That additional capacity will also allow HMSI to step on the gas in terms of exports. “Our fourth factory in Gujarat will be inaugurated in January and that additional capacity will give us the option of pushing more exports. Some of the new

models that we will launch will also help in that effort,” said Muramatsu.

“Till then our exports will remain on the same level as last year.”

HMSI has announced that FY15 will be a game changer year for it in terms of product, capacity and marketing aggression. Said Yadvinder S Guleria, Senior Vice President - Sales and Marketing, HMSI: “In FY’14-15, we have grown more than double of industry and sold 44.5 lakh twowheelers last year, contributing 60% to the 11.8 lakh volume increase by the industry. We have carried the same momentum into FY’15-16 by becoming the highest market share and volume gainer in April. The product roadmap for 2015 is robust with nine new products remaining to be launched in this year. For our flagship model CBR 650F, Honda is innovating by bringing a new premium distribution format in 20 top priority cities.”

India is a new bright spot in Asia: IMF

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verseas investors may be voting with their feet, but the International Monetary Fund (IMF) still sees India as a “bright spot” and expects it to be the fastest-growing large economy in the world over the medium term. The IMF also lauded the Narendra Modi government’s reform initiatives in its Asia-Pacific regional outlook released on Thursday.

“Following its landslide victory in May 2014, the new government of Prime Minister Narendra Modi introduced numerous economic reforms, including deregulating diesel prices and raising natural gas prices, moving to create more flexible labour markets and introduce a goods and services tax, enhancing financial inclusion, and relaxing FDI (foreign direct investment) limits in several key sectors,” the report noted. “These actions have also served to buoy investor sentiment.” The IMF expects India’s economy to expand 7.5% in both 2015 and 2016, which will see it exceed China’s growth rate.

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“India is a new bright spot in Asia, and its growth is expected to strengthen... benefitting from the recent policy reform announcements and lower oil prices,” the IMF said.

“Early implementation of the reforms will reinforce confidence and increase potential growth.” The multilateral lender said the Indian economy expanded 7.2% in 2014 The IMF said India made a remarkable turnaround from the 2011-13 slowdown through “effective policies and resolution of political uncertainty” and domestic and external vulnerabilities have moderated. “This confluence of achievements has made India one of the bright spots in the global economy,” the IMF said but warned of downside risks from potential surges in global financial market volatility and slower global growth, as well as policy implementation risks within India.

The IMF noted that India saw robust capital inflows in 2014 that resulted in lower vulnerabilities and improved investor sentiment.

Strong flows have resulted in capital flows rising to $344 billion at the end of FY15 from about $290 billion in FY13.

The agency, however, cautioned that the Indian equity markets are not supported by corporate performance and added that the debt-to-equity ratio had risen.

“Equity market indicators generally appear comfortable, with strong earnings supporting price growth, except in India,” it said in the report that was prepared before the current slump.

Benchmark stock indices have already fallen more than 10% from recent peaks because of earnings concerns among other reasons.

The IMF also flagged supplyside bottlenecks, banks’ asset quality and corporate vulnerability as risks to growth. “Important economic reforms have been initiated following the decisive outcome of the 2014 national elections,” the agency said and called for “tight monetary policy stance together with supporting structural reforms” to deal with inflation, cautioning against supply shocks. It said the use of Aadhaar was expected to yield large savings. India is linking the unique ID to bank accounts to make sure subsidies go to the intended beneficiaries and cutting down on leakages.

■■ Instrumentation Limited with KE Kauer Engineering, Germany for production of control valves.

CLIMATE-ECONOMY RELATIONSHIP

■■ Essel Group with with Passavant Energy and Environment (PE&E) for water and waste water treatment projects.

IMF said India’s economic growth will be moderately affected by the El Nino weather phenomenon, which is associated with the warming of the Pacific, but its impact on inflation would be relatively substantial.

It said the extreme weather conditions caused by El Nino usually coincide with a weak monsoon and rising temperatures in India. “Given these findings, macroeconomic policy formulation in India should consider the likelihood and effects of El Nino episodes,” the IMF said, calling for greater investment in the agricultural sector and building more efficient food value chains.

MoUs Signed with Germany

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arious Memorandum of Understandings (MoUs) have been signed by Indian industries with Germany recently during Hannover Messe 2015 as below. These MoUs are expected to increase FDI flows to India, bring in new technology, help growth of manufacturing sector and create employment opportunities in the country thereby boosting its economy.

■■ Vikram Solar with Fraunhofer Institute for Solar Energy Systems ISE. ■■ Hindustan Machine Tools (HMT) with FT Machine Tools, Germany for collaborating on flow forming machines.

■■ HMT with Enit GmbH, Germany for total Engineering Solutions.

■■ Essel Group with Wind and Sun Technology Group /FeCon GmbH to develop 12500 MW of Solar and 4000 MW of Wind Energy Projects in India.

■■ Essel Group with Fichtner GmbH & Co to provide comprehensive interdisciplinary range of engineering and consultancy services in areas of energy, water, sanitation, infrastructure, IT and consultancy on the implementation.

■■ Essel Group with Smart GridsPlatform Baden-Wuertemberg to act as facilitator in linking the energy networks for Essel group.

■■ Roots Group India and Neander Motors, Germany for transfer of technology and Joint Venture for production of a very high end latest technology, Twin Cranks, Diesel Engine with varied applications in Auto Marine Energy, etc. (0.6 million Euros).

■■ iPLON with Welspun Renewables in the area of Green Energy Commitment.

■■ Heavy Engineering Corporation (HEC) with Kirow Adelt GmBh of Leipzig for manufacture of Railway Cranes.

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Embassy of India, Vienna

MAKE IN INDIA Summary ■■ USD 1,000 Billion investments for infrastructure sector projected in 12th five year plan (2012-17).

■■ USD 650 Billion investments in urban infrastructure estimated over next 20 years.

■■ 100% FDI permitted through the automatic route for townships, cities.

■■ 10% of India’s GDP is based on construction activity.

Reasons to Invest ■■ An investment of USD 1,000 Billion has been projected for the infrastructure sector until 2017, 40% of which is to be funded by the private sector. 45% of infrastructure investment will be funneled into construction activity and 20% set to modernise the construction industry.

■■ The Indian government has undertaken a number of measures to ease access to funding for the sector.

■■ Construction activities contribute more than 10% of India’s GDP. ■■ The construction industry in India has seen sustained demand from the industrial and real estate sector.

■■ An estimated USD 650 Billion will be required for urban infrastructure over the next 20 years.

■■ Housing for seniors has seen increased interest levels from corporates, the hospitality and healthcare industries over the last few years.

Statistics ■■ 2nd largest employer and contributor to economic activity, after agriculture sector. The construction sector accounts for second highest inflow of FDI after the services sector and employs more than 35 Million people.

■■ 50% of the demand for construction activity in India comes from the infrastructure sector, the 10 • India Newsletter

rest comes from industrial activities, residential and commercial development etc. The Indian construction industry is valued at over USD 126 Billion.

■■ Indian cities contribute significantly to India’s GDP. As per a mid-term appraisal in 2012, the urban share of the GDP was 62% – 63% in 2009-10. This was further projected to increase to 70% – 75% in 2030.

■■ In 2001, about 286 Million were living in urban areas across India. It had the second largest urban population in the world. As per the Indian Census, 2011, the urban population had increased to 377 Million, thereby registering a growth of around 32%. As per recent estimates, nearly 590 Million people will live in Indian cities by 2030.

■■ Between 2005-08, the real estate sector grew by about 30% annually before slowing down significantly due to a 2008 global financial crisis.

It grew by about 8% between 200911 and 6.5% in 2012-13.

■■ As per industry estimates, the Indian real estate market is estimated to be approximately USD 78.5 Billion in 2013 and is expected

to grow to approximately USD 140 Billion by 2017.

■■ According to FICCI-EY Real Estate Report 2013, India’s real estate requires about USD 42 Billion (excluding housing for economically weaker sections) in investments by 2015. Residential real estate alone will require an investment of USD 29 Billion.

Growth Drivers ■■ India has an estimated urban housing shortage of 18.8 Million dwelling units. The housing shortage in rural India is estimated at 47.4 Million units, in 2012.

■■ Present levels of urban infrastructure are inadequate to meet the demands of the existing urban population. There is need for re-generation of urban areas in existing cities and the creation of new, inclusive smart cities to meet the demands of increasing population and migration from rural to urban areas. Future cities of India will require smart real estate and urban infrastructure.

■■ The Government of India is in the process of launching a new urban development mission. This

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will help develop 500 cities, which include cities with a population of more than 100,000 and some cities of religious and tourist importance.

These cities will be supported and encouraged to harness private capital and expertise through PPPs, to holster their infrastructure and services in the next 10 years.

■■ To provide quality urban services on a sustainable basis in Indian cities, the need of the hour is that urban local bodies enter into partnership agreements with foreign players, either through joint ventures, private sector partners or through other models.

FDI Policy ■■ 100% FDI through the automatic route is permitted in townships, housing, built-up infrastructure and constructiondevelopment projects (including, but not restricted to housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure). The major conditions under which foreign investment can be made in this sector are: ■■ 10 hectares is the minimum land area for the development of serviced housing plots. 50,000 sq.mts. is the minimum built-up area for construction-development projects. For combination projects, any one of the prior two conditions would suffice. There are specific exemptions for smart cities, housing projects and old age homes.

■■ A minimum capitalization of USD 10 Million is envisaged for whollyowned subsidiaries and USD 5 Million for joint ventures with Indian partners. The funds will have to be brought in within six months of date commencement of business of the company.

■■ The original investment cannot be repatriated before a period of three years from completion of minimum capitalization. The term ‘original investment’ means the

entire amount is brought in as FDI. The lock-in period of three years will be applied from the date of receipt of each instalment/tranche of FDI or from the date of completion of minimum capitalization, whichever is later. However, the investor may be permitted to exit earlier, with prior approval of the government through the Foreign Investment Promotion Board (FIPB).

■■ The conditions of minimum capitalization, minimum area requirement, lock in period and minimum development above do not apply to hotels and tourism sectors, hospitals, Special Economic Zones (SEZs), the education sector, old age homes and investment by NRIs. ■■ FDI is not allowed in the real estate business or construction of a farmhouse.

■■ 100% FDI is allowed under the automatic route for urban infrastructure areas like urban transport, water supply, sewerage and sewage treatment subject to relevant rules and regulations.

■■ FDI POLICY FOR INDUSTRIAL PARKS: ■■ 100% FDI is allowed under the automatic route. ‘Industrial Park’ is a project in which quality infrastructure in the form of plots of developed land or built-up space or a combination with common facilities is developed and made available to all the allottee units for the purposes of industrial activity.

■■ FDI in industrial parks is not subject to the conditionalities applicable for construction development projects etc., provided the industrial parks meet with the under-mentioned conditions.

■■ It should comprise a minimum of 10 units and no single unit should occupy more than 50% of the allocable area.

■■ The minimum percentage of the area to be allocated for industrial activity will not be less than 66% of the total allocable area.

Sector Policy ■■ THE JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION: ■■ The programme was instated to improve the quality of life and infrastructure in the cities and it covered a total of 63 cities initially, which were later increased to 68. The mission has helped focus attention of policy makers in all three tiers of the government on the challenges facing the cities and towns of India and created dynamism in a sector that has long suffered neglect.

The government of India is in the process of launching a new urban development mission. This will help develop 500 cities, which includes cities with a population of more than 100,000 and some cities of religious and tourist importance.

Four fundamental activities will underpin this development.

These are, the provision of safe drinking water and sewerage, use of recycled water for growing organic fruits and vegetables, solid waste management and digital connectivity.

■■ THE NATIONAL URBAN HOUSING AND HABITAT POLICY, 2OO7: ■■ This policy aims to bridge the gap between the supply and demand of housing and infrastructure in the country. This policy intends to promote sustainable development of habitat in the country with a view to ensuring equitable supply of land shelter and services at affordable prices to all sections of society. The core focus of this policy is to provide affordable housing for all, with a specific focus on LIG and EWS. ■■ REAL ESTATE INVESTMENT TRUSTS (REITS) & INFRASTRUCTURE INVESTMENT TRUSTS (INVITS): ■■ REITs will provide the necessary support to the sector in terms of required large scale investments.

India Newsletter • 11

Embassy of India, Vienna

■■ REAL ESTATE REGULATION & DEVELOPMENT BILL, 2O13: ■■ The Real Estate Regulation & Development Bill has been formulated to bring in transparency and efficiency in the real estate sector. The Real Estate Regulation & Development bill is a pathbreaking law that is expected to bring uniform regulatory environment to the sector and protect consumers from unfair practices. It is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and ensure timely execution of projects.

■■ MODEL STATE AFFORDABLE HOUSING POLICY FOR URBAN AREAS, 2O13: ■■ The aim of this policy is to create an enabling environment for providing ‘affordable housing for all’ with special emphasis on EWS and LIG and other vulnerable sections of society. The policy further aims to promote Public Private People Participation (PPPP) for addressing the shortage of adequate and affordable housing.

Financial Support ■■ PROVISIONS IN THE UNION BUDGET, 2O14-15: ■■ The Government of India in the Union Budget 2014-15, has announced a project to develop ‘One Hundred Smart Cities’ as satellite towns of larger cities by modernizing the existing midsized cities in the country. INR 70.6 Billion has been allocated in the current fiscal year for the same. The following has also been announced in the budget in relation to smart cities: ■■ To encourage development of ‘Smart Cities’, which will also provide habitation for the neo-middle class, requirement of the built-up area and capital conditions for FDI is being reduced from 50,000 sq. mts. to 20,000 sq. mts., from USD 10 Million to USD 5 Million respectively.

To further encourage this, projects which commit at least 30% of the total project cost for low cost affordable housing will be exempted 12 • India Newsletter

from minimum built-up area and capitalisation requirements.

■■ A National Industrial Corridor Authority, with its headquarters in Pune is being set up to coordinate the development of Industrial Corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization.

■■ Master Planning of the AmritsarKolkata Industrial Corridor will be completed expeditiously for the development of Industrial Smart Cities i n seven states of the country.

The seven states to be covered in this project are Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.

■■ Master planning of three new smart cities in the ChennaiBengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka are to be completed.

■■ A Perspective Plan for the Bengaluru Mumbai Economic Corridor and Vizag-Chennai Corridor is to be completed with provision for 20 new industrial clusters.

■■ A proposed allocation of INR 40 Billion, to set up a mission on low cost affordable housing, will be anchored in the National Housing Bank.

■■ A proposed allocation of INR 1 Billion, to develop metro projects in Lucknow & Ahmedabad.

■■ INR 80 Billion has been allocated for the National Housing Bank with a view to expand and continue to support rural housing in the country.

■■ State governments concerned are purposed to be notified as sponsoring authority for metro rail projects covered under project import regulations, 1986.

■■ REITS AND INVITS: ■■ A new tax structure for real estate and infrastructure investments trusts. Both of them have been given pass-through status.

■■ STATE INCENTIVES: ■■ Apart from the above, each state

in India offers additional incentives for investments and special incentive packages for mega projects.

■■ INCENTIVES FOR DEVELOPING SEZ/EMC’S/OTHER SECTORAL CLUSTERS: ■■ The major incentives and facilities available to SEZ developers include: ■■ Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA. ■■ Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years, in 15 years under Section 80-IAB of the Income Tax Act. ■■ Exemption from Central Sales Tax (CST).

■■ Exemption from Service Tax (Section 7, 26 and the Second Schedule o f the SEZ Act).

■■ INCENTIVES FOR DEVELOPING ELECTRONIC MANUFACTURING CLUSTERS: ■■ Brownfield EMC: The assistance will be restricted to 75% of project costs, subject to the ceiling of INR 0.5 Billion. The remaining project cost will be financed by other stakeholders of the EMC with a minimum industry contribution of 15% of the project cost.

■■ Greenfield EMC: The assistance will be restricted to 50% of the project cost subject to ceiling of INR 0.5 Billion for every 100 acres of land.

The remaining project cost shall be financed by other stakeholders of EMC with a minimum industry contribution of 25% of the project cost.

■■ The administrative expenses are to be restricted to 3% of the central assistance in the project.

Expenses towards the preparation of a detailed project report will also be considered a part of project cost.

■■ AREA-BASED INCENTIVES: ■■ Incentives for units in SEZ/NIMZ as specified in respective acts or the setting up of projects in special areas such as the North-east, Jammu & Kashmir, Himachal Pradesh &

Uttarakhand.

www.indianembassy.at

Investment Opportunities

■■ Smart cities.

■■ Hydro-Comp Enterprises (Cyprus)

■■ Construction development in residential, retail, commercial and hospitality sectors.

■■ Technologies and solutions for smart sustainable cities and integrated townships.

■■ Technologies for the promotion of low cost and affordable housing.

■■ Green building solutions.

■■ Sustainable and environmentally friendly building materials.

■■ Training and skill development of construction sector workers.

■■ Urban water supply, urban sewerage and sewage treatment.

■■ GIZ (Germany)

Foreign Investors

■■ The Ministry Development

■■ Hines (USA)

of

■■ The Ministry Development

■■ Veolia (France) ■■ Ascendas (Singapore)

of

Urban Rural

■■ The JNNURM

■■ Aqualyng AS (Norway)

■■ The Confederation of Real Estate Developers Associations of India

■■ Tishman Speyer (USA) ■■ Emaar Properties (UAE) ■■ The Trump Organization (USA) ■■ Alstom (France)

Agencies for Contact

■■ The Builders Association of India ■■ The Construction Development Council

Industry

INDIAN EMBASSY LIBRARY EMBASSY’S LIBRARY ■■ The Embassy’s library is opened daily from 10am to 1pm without appointment.

■■ Our collection contains more than 2000 titles in dozens of categories.

■■ For scheduling an appointment outside the opening hours or to inquiry on a book or topic of interest in our collection, please contact the information assistant under infoasstt@ indianembassy.at or 01 505 8666 33 ■■ Download our latest catalog of books under http://indianembassy.at/pdf/ EmbassyLibrary.pdf

INDIA PERSPECTIVES MAGAZINE ONLINE

www.magzter.com/publishers/meaindia

India Newsletter • 13

Embassy of India, Vienna

PERSPECTIVES ON INDIA India: Showcasing strengths in services sector by Ravi Capoor, IAS, CEO, IBEF India. he recently organised Global Exhibition on Services (GES), held from April 23-25, 2015 at Pragati Maidan, showcased India’s strengths in various segments of the services sector and provided an efficient platform to the industry to explore business opportunities. The Exhibition was jointly organised by Ministry of Commerce and Confederation of Indian Industry (CII).

Attracting participation from around 63 countries and 18 States, the Exhibition was inaugurated by Mr Narendra Modi, Prime Minister of India. GES 2015 was organised to serve as a platform to enhance strategic cooperation and develop synergies between the players of the services sector in India with its global counterparts. The Prime Minister said that India had made the transformation from a country worried about its “braindrain,” to a country that thinks of “braingain”. Stating that human resource is India’s biggest asset, he added that India’s development journey should focus on the 65 per cent of its population which is below the age of 35 and mentioned sectors like nursing, high-end financial services, arbitration, tourism, music and vegetarian cooking as examples of what India had to offer to the world, besides the already established IT and other core sectors.

India has seen rapid growth in the services sector and the market sector has improved from 1 per cent to 3.3 per cent in 2003 over a period of around 12 years. Ms Nirmala Sitharaman, Minister of State for Commerce and Industry (Independent Charge), Government of India said that services sector would provide the impetus for the future of Indian growth story. Currently, services sector contributes 57 per cent of GDP, 1/4th of employment and 1/3rd of the total exports of the country. In fact, Indian growth has been led by the services sector as in 2013-14 while the services export was US$ 150 billion, the services import was US$ 78 billion, thus resulting

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14 • India Newsletter

in a services export surplus of US$ 73 billion. Moving forward, as the global economy will look for skilled manpower, India has the capability to become a crucial provider of this resource. The PM mentioned that there is a need to understand the needs of our trading partners and accordingly tailor our skills supply to meet their requirements and India could become a hub for global arbitration with changes in the legal system.

The government has zeroed in on 10 services including IT, media and entertainment, logistics, healthcare, education, space, research and development, professional services and banking and finance to showcase India’s prowess in the sector. The first edition of the GES was very successful and the event has been made an annual exhibition with the GES 2016 scheduled to be held in February 2016.

Ushering in the smart revolution by Ravi Capoor, IAS, CEO, IBEF India. conomic growth across sectors and rising opportunities are driving an urbanisation boom across the country.

A report by consultancy firm McKinsey & Company has predicted that this surge in urbanisation is expected to give rise to 15 additional metropolitan cities by 2025.

The 69 metropolitan cities of India along with their hinterlands, are expected to contribute over 50 per cent of the country’s incremental GDP between 2012 and 2025. It is also projected that urban India will account for around 75 per cent of the country’s GDP in the next 15 years.

While the rapidly accelerating urbanisation of India presents a heartening portrayal of development, it also presents challenges of sustainability in the future, in terms of how cities manage the growth in population and the associated complexities and provide quality standards of living for their residents. The Government of India has initiated two visionary programmes

E

to address this challenge in the coming years - the 100 Smart Cities project and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Last week, the Union Cabinet approved funding of almost Rs 1 trillion for both these projects. While the Smart Cities project will get a funding of Rs 480 billion over a period of five years, AMRUT will be getting funds amounting to Rs 500 billion.

The Smart Cities program envisions building 100 smart cities in India, a commitment made by Prime Minister of India Mr Narendra Modi last year. It aims to ensure sustainable urbanisation in the country by taking the advantages of a low base and the latest information and communication (ICT) technologies. A smart city is defined as one that provides investment opportunities, employment opportunities and quality of life to their residents. The four pillars of smart cities are institutional infrastructure, physical infrastructure, social infrastructure and economic infrastructure. Some of the means that will enable India to make its cities smarter are energy efficiency through smart grids, Internet of Things, demand management, improving citizen access to information, taking targeted measures to reduce pollution, leveraging clean technologies, building world class health and education infrastructure, etc.

The cities to be assisted will be selected through a City Challenge Competition that will assess them for their abilities to fulfil the objectives of the programme.

These cities will be provided funding of Rs 100 crore per year for a period of five years, while additional funds are mooted from states, urban local bodies and the private sector. In fact, the city’s ability to raise further funds and implement projects will be critical to its selection. A special purpose vehicle will be formed for each city. AMRUT will cover 500 additional cities, each with a population of over 1 lakh. These cities will be selected by the central government in consultation with state governments.

The smart cities initiative is witnessing a lot of interest from corporations like

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ZTEsoft (subsidiary of ZTE Corp), NEC India, Essel Group Cisco, IBM, 3M, EMC, GE, Honeywell, Otis, Timten and Louis Berger as well as countries across the globe including Japan, Singapore, US, Germany, Spain and EU. Due to the approach and commitment of various stakeholders to this project, India looks set to step into an era of smart urbanisation that will ensure a better quality of life to its rapidly urbanising population for years to come.

Engineering new growth avenues at Hannover by Ravi Capoor, IAS, CEO, IBEF India.

India’s participation as Partner Country at Hannover Messe 2015 has been a grand success, with the country effectively showcasing its competitive strengths in the engineering sector as well as its evolving stature as a destination of choice for business and investment.

Whilespeakingtoanaugustdelegationof more than 300 global leaders in business, technology, industrial scientists and policy makers at the opening ceremony, Indian Prime Minister Mr Narendra Modi reiterated that Make in India is not merely a brand or a slogan, but a new national movement that encompasses the entire spectrum of government, society and business in India. He also underscored the government’s firm commitment to accelerating economic growth, creating employment, building world class industry and infrastructure, transforming cities and villages, cleaning the environment and improving quality of life.

The Brand India showcase at Hannover effectively portrayed how the country is well poised to take centre-stage as one of the world’s most powerful economies in the 21st century. The India pavilion at Hall No. 6 of Hannover Messe illustrated how major national projects such as industrial corridors and smart cities are expected to unleash new dynamism in the economy.

Key government initiatives like Skill India and Digital India were also focus themes at the event, as were the country’s most potent sectors like biotechnology, renewable energy, space, IT and BPM. Some critical initiatives were announced

to boost the country’s engineering sector. Some of India’s leading public sector firms like BHEL, Instrumentation Ltd and HMT signed six MoUs with leading firms from Germany, Switzerland, Russia and Bulgaria to strengthen Indian manufacturing in high end sectors like precision instrumentation and engineering solutions. The electronics and electricals segments have been highlighted as key areas for IndoGerman partnership. India’s homegrown domestic electrical equipment industry is currently pegged at US$ 25 billion, contributing 1.4 per cent to India’s GDP in 2011-12. Through the Make in India initiative, the government plans to increase output of the electrical equipment industry to around US$ 100 billion by 2022 by balancing exports and imports. A US$ 250 million R&D project has been announced for development of Advanced Super Critical Technology for power generation to boost the electronics and electricals segments, and a scheme has also been introduced to promote electrical and hybrid vehicles in India.

In order to boost the skilling ecosystem in India, the government signed a letter of intent on April 16 to establish five experimental centres in the country to gain critical insights into the German model of dual system of training. EEPC India signed an MoU with the German Association for Small and Medium-sized Businesses (BVMW) to leverage business opportunities in both countries with specific focus on small and medium enterprises (SMEs). Under the MoU, the

two agencies will exchange important information on trends and opportunities in trade, investment and technology transfer and also help visiting business delegations from either country.

A major section was dedicated to IndoGerman partnerships and how the two countries can take their engagement further in mutual interest. Germany is India’s sixth largest trading partner, and Indo-German bilateral trade stood at US$ 20 billion during 2013-14.

Cumulative FDI inflows from Germany into India stood at US$ 350.96 billion during April 2000 to November 2014.

FDI was led by the automobile industry with 20 per cent share and miscellaneous mechanical and engineering industries with 18 per cent share. Investments have increased significantly from US$ 4.03 billion in 2000-01 to US$ 27.4 billion in 2014-15 (up to November 2014).

Sectors that hold great promise for IndoGerman collaboration going forward include engineering, environmental technologies, infrastructure, electronics, renewable energy, water and food processing.

Hannover Messe 2015 has indeed played an important role in showcasing the strengths of Indian engineering as well as the robust growth path the country is expected to tread, driven by the government’s visionary initiatives and the inherent economic drivers of the Indian economy. More critically, it has helped strengthen India’s business engagement with Germany, which is expected to benefit both economies immensely going forward.

India Newsletter • 15

Embassy of India, Vienna

INDIAN 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.

16 • India Newsletter

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India Newsletter • 17

Embassy of India, Vienna

18 • India Newsletter

www.indianembassy.at

2nd India-Central Europe Business Forum

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he first edition of ICEBF attracted over 100 official and business delegates from 14 Central European countries. Over 200 Indian industry representatives had detailed business engagements with their CE counterparts. The forum established itself as an institutionalized platform to promote multifaceted engagements with promising Central European economies.

Technological excellence, new innovations across sectors coupled with highly skilled workforce in CE countries is optimally matched by a fast transforming and resurgent Indian economy. The second edition of the Forum is a continued endeavour for accelerating economic ties between India & CE countries for mutual gains in the years to come.

PROGRAME

Ministry of External Affairs Government of India

2

nd

India-Central Europe Business Forum 5-6 October 2015

The Lalit Ashok I Kumara Krupa High Grounds, Bangalore-560001 Defining new paradigms of cooperation

Identify, expedite and conceptualize partnerships in new areas

Rediscovering Economic Complementarities

CONCEPT

Monday, 5 October 2015

There is a felt need for institutionalizing the proposed engagement(s) by extending a platform to provide:

Inaugural n

n Strategic collaborations between Indian and Central European economies;

Partner n

Session

Country Session

Sectoral n

Sessions

Networking n

Evening

n Hands on understanding of business opportunities existing in both regions n Building new partnerships and strengthening existing ones

The forum will focus on India's multifaceted engagements with Central European economies in a calibrated and structured format. Under the over-arching effort, entrepreneurs of large, small and medium enterprises would delve deep into the ways and means for enhancing collaborations in the field of technology transfer, research & innovation and skill development.

Tuesday, 6 October 2015

Focus sectors

Partner n

IT & ITES; Services; Urban Infrastructure; Clean & Green technologies; Life Sciences; Pharmaceutical; Environmental technologies; R&D; Agri & Food Processing; Auto & Auto Components and Tourism, to mention a few.

State Session

Sectoral n

Sessions

B2B Meetings n

Highlights of 2nd India-CE Business Forum 2 days business forum

Sectoral sessions

B2B meetings

Partner country session

Networking evening

The Forum invites participation from CE and India of: n Business

n Senior

leaders

n Key policy

Managers

n Representatives

of the state and regional Governments

n CEOs

makers

n Senior

representatives of investment promotion agencies

n Senior

representatives of Chambers of Commerce and Industry

n Representatives

of Think-Tanks, thought leaders and entrepreneurs from SMEs sector

n Representatives

of sectoral organizations (Govt & private)

Rohit Sharma

Contact:

Additional Director Email: rohit.sharma@ficci.com Tel: +91-11-23487447

Gaurav Vats

Joint Director Email: gaurav.vats@ficci.com; Tel: +91-11-23487288

www.icebf.in India Newsletter • 19

Embassy of India, Vienna

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

I

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

20 • India Newsletter

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.

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INTERNATIONAL EVENTS

SPIC MACAY a voluntary movement that organizes events of classical music, dance and art forms in educational institutions throughout the world. SPIC MACAY is committed to promoting an appreciation of Indian culture by rendering programmes of Indian classical music and dance, folk, poetry, theatre, traditional paintings, crafts & yog primarily in schools and colleges.

SPIC MACAY is organising its 3rd International Convention at the Indian Institute of Technology - Bombay (IIT-B) in Mumbai from 31st May to 6th June 2015, where about 1800 participants will gather from all over the country and abroad to rededicate themselves to this voluntary movement. At this weeklong event, over 300 artistes would be participating from different parts of the country.

There would be performances of classical music & dance, folk, theatre and talks by several inspiring and eminent artists. We would also be having intensives and workshops conducted by inspiring gurus and master craftsmen. National Conventions are the congregation of the people associated with this Noble Cause, who spend one week in a unique ashram-like atmosphere.

The Annual Convention is a unique experience where participants get to witness great

artists performing classical music & dance, folk and theatre. Several intensives and workshops are organized where the participants learn the form from the inspiring gurus (inspiring Masters) for 5 days. The day starts at 4 am where the participants do the naad yog followed by hatha yog. Crafts village is one special feature of the convention where Master craftsmen sensitise the participants about various crafts for 5 days. Screenings of cinema classics include the great works be legendary film-makers like Akira Kurosawa, Satyajit Ray, Charlie Chaplin, Ingmar Bergman, Shyam Benegal, etc. Several talks by inspiring people and panel discussions are organized. The convention culminates with an over-night series of concerts.

The performances at this convention will include Kishori Amonkar ( vocal ), Dr L Subramanyam (violin), Girija Devi (vocal), Shiv Kumar Sharma (santoor), Shankaranarayan ( Carnatic Vocal) and others The Conventions have been organized in different cities of the country every year. The lodging and boarding is arranged by SPIC MACAY for the participants without any costs.

Participants will need to find their own travel costs. For online registrations and further details, please visit www.spicmacay.com India Newsletter • 21

Embassy of India, Vienna

TOURISM Kalari Kovilakom Remembering the Future

by Hugh & Colleen Gantzer.

We reacted as most business-people would have. When Jose Dominic of CGH Earth invited us to spend a fortnight in their Kalari Kovilakom we thought he was joking. We loved the adrenal rush of our job as travel writers: why should we take so much time off from our wonderful lifestyle?

“No” said Jose, “ a week won’t do.

The Kalari is not a hotel. It has to be a fortnight of treatment.” and he added that it would be a strictly spice-free, vegetarian, TT, no leather shoes – coffee – tea, two massages a day, meditation-and-yoga regimen.

We decided, firmly, that this was definitely, very definitely, not for us.

Then one day, when we had worked till two in the morning, we suddenly felt as limp as dish-rags and every problem seemed to have become as bloated and ugly as a tangled mess of a dead octopuses rotting on a beach. The vision was ghastly. If that was what the future held for us, we wanted no part of it. We had either to step off the compulsive treadmill now or suffer a physical, mental and emotional implosion. We phoned Jose, flew to Cochin, and a little later, stepped out of our beleaguered world and into Kalari Kovilakom. A beautiful old, tiled, palace breathing history.

Blue, cloud-wreathed, mountains rising in the distance.

And acres and acres of green lawns, old fruit trees nurtured with tender loving care, slender coconut palms swaying in lissom sensuality, a lily pond reflecting the serenity of it all.

We felt an older grace enfolding us: rose water sprinkled in welcome, scented sandal-wood paste on our foreheads, a slow-paced walk down corridors hung with portraits of the matrilineal rulers of the dynasty of Vengunad, to the wing built for their European guests. Our suite of rooms was cool and regal with high ceilings, an intricately carved peacock with 22 • India Newsletter

beams flaring out from its tail, a dressing room beyond, a modern bathroom beyond that. Cloth-andstraw slippers came a little before the tailor did. He measured us for six kurta-pyjama suits, handed us a ‘ready-made’ one for the next twenty-four hours. We were certainly leaving our world behind.

At six-thirty, when butterflies were flickering rainbows in the herbal gardens, the dinner bell rang.

Dinner at half-past-six? This would be a shade after tea time at home.

Would we ever get used to this? “You will!” a Swiss lawyer assured us in the dining gallery. We were introduced to him and to an American writer, a Polish-Italian travel agent, a young Austrian of Hungarian extraction, a very amiable giant from Dubai who had come here to whittle down his six foot four inch bulk, and an outgoing English woman. We were all dressed alike, called each other by our first names, washed our fingers in water poured from a brass jug into a brass bowl, and dined off thalis lined with banana leaves. Our dinner that night was a general one: soup, two chapatis, dhall, lightly steamed vegetables and herbal tea. Though the meal was light, even frugal, by our standards, we didn’t feel the need for any more. But we did feel very tired. We did not even enquire about the 7.30 Sat Sang .. a talk, classical music, dance .. and we were asleep, lulled by a softly-humming air conditioner, a half-hour later. At home we never dine before eight but this was another world, an older world, and here Ayurveda decreed that meals should be eaten before darkness fell. So be it!

We were woken by amplified chants from the village temple beyond the high walls of our palace. It was five thirty and the sun was still lolling bleary-eyed below the horizon.

And then, after breakfast with our new international friends, our therapy began. It started with a long consultation with the Ayurvedic

doctor who very gently, persuasively, asked the most intimate details of our lives, weighted us, took our blood pressure, checked the three pulses that indicate the present state of the life-regulating bio-currents of our body. Ayurveda tries to find out the natural balance of these currents, varying with each individual. It then seeks to re-establish this balance by eliminating toxins which impede the flow of these currents, and then enhance their circulation. All diseases are caused by blockages and imbalances in this system due to unhealthy lifestyles including mental stress. Massages with medicated oils help unclog the material toxins, Yoga and meditation handle the nerve and brain-centred ones. And so we had consultations with the yoga and meditation therapists before settling into the routine of our treatments. It was a carefully integrated sequence. Yoga followed by breakfast, massage, lunch, meditation, massage, tea, long conversations with our newfound friends with the bonds of friendship growing curiously closer and closer every day. More massages.

Then came dinner during which the discussions continued. They were wide-ranging and stimulating as we gained insights into the mores and mindsets of people from across the globe. What did the Americans think of Bush? What caused the Reformation? What led to Europe’s Age of Exploration? People spoke only if they had something to say and when anyone expressed an opinion, everyone listened. Newcomers were often assertive at first but they soon settled down and shed their egogenerated abrasiveness, soothed by the balm of amity. Slowly, we learnt to exchange confidences without anyone probing but because it felt good to unburden ourselves to this close and increasingly intimate circle. We were not sure, then, why it happened or even if it was planned to happen. We now believe that, as our minds and bodies became more

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balanced, our fears and anxieties became much easier to handle. A fit person has no anxiety about running up a flight of steps whereas the very sight of those stairs would daunt an injured one. This increasingly feelgood attitude was underscored by an unobtrusive and very efficient support system. Everyone who served us knew exactly what we had to eat and drink, when we would be in therapy, when we were likely to return to our rooms. Our laundry was collected and returned, our rooms were made-up and fragrant

with lemon-grass oil, our flasks of medicated drinking water were individually identified and placed on the sideboard in our room: all done when we were in therapy or in the dining gallery. As two of our foreign friends put it: “There is no need to make decisions here. Everything is taken care of. It gives such a wonderful feeling of freedom!”

We could give a detailed account of the massages, soothing, relaxing; of increasing flexibility after the yoga classes; of accessing deeper and still deeper reservoirs of equanimity

within our selves: but we would prefer to tell you how we feel after this encounter with the ancient wellness wisdom of our land. We have each lost three kilos. We have made many friends with whom we shared this wonderful experience.

But, most of all, we feel lighter in body, mind and spirit. As for the problems that harried us: they haven’t evaporated, but they are not significant any more. If, however, we see those octopuses looming in our future again, we’ll know how to exorcise them.

India Newsletter • 23

Embassy of India, Vienna

REPORT ON PAST EVENTS Alternative India Forums in Vienna, Linz and Graz

A

s part of the trade promotion initiative of the Department of Foreign Trade of the Austrian Federal Economic Chamber and the Ministry of Economy “Going InternationalGoing to India” the Federal Economic Chamber (WKO) together with the Austrian Trade Commission in Delhi, organized “Forum Alternative India”

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in Vienna on 4th, in Linz on 5th and in Graz on 7th May 2015.

Ambassador Rajiva Misra attended the events in Vienna and Linz and Second Secretary Pawan Bhade attended the event in Graz. In their opening remarks, they presented the emerging huge business opportunities in India and invited Austrian companies to take part in all those initiatives entering into mutually beneficial businesses with India.

Dr. Wolfram Moritz, Trade Commissioner, presented India as the Business Partner for Austrian companies in the awakening business climate of “Make In India” campaign.

The day-events included presentations on specific industries of interest, business cases and individual counselling Some impressions of the events:

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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 maoffice.vienna@ mea.gov.in

Happy New Year “Herzendiebe” ■■ Synopsis: It’s the Christmas–New Year holiday season. The biggest dance event in the world, the World Dance Championships, is being hosted in Dubai. While all eyes are on the different world-class teams that have gathered, there are a few unlikely entrants who have somehow managed to stumble into the competition. Happy New Year is built around 5 disparate characters who are fighting a most unlikely battle.. a battle of international proportions.. but it’s a battle being fought on a dance floor. Where the rest of the world’s competitors are battling for national pride and glory on the world stage, our 5 are dancing for a different cause.. revenge, retribution and closure. This is Team India, a group that has no confidence in its own dancing abilities, but is competing for a cause very important to them. What follows is a manic run to the finish, where our characters face several challenges in their quest for victory as the film reaches its climax.

■■ Genre: Action/Comedy/Musical ■■ Directed by: Farah Khan ■■ Starring: Shah Rukh Khan, Deepika Padukone, Abhishek Bachchan ■■ Released: 2014 ■■ Duration: 180 Minutes ■■ Language: Hindi ■■ Subtitles: German ■■ Image Quality: Standard

Showtime May 29th, 17:30 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) India Newsletter • 25

Embassy of India, Vienna

INDIAN EVENTS IN AUSTRIA Seminar by Ms. Shakiri Juen - “Von Göttern, fliegenden Helden und Yogis... Heilige Wissen, sagenhafte Geschichten, Weltbild und Religionen Indiens” Date: 18th May, 1st, 8th, 15th, 22nd and 29th June, 2015 Time: in each case 19.00 – 21.00 Place: Govinda (Lindengasse 2 a, 1070 Wien) For detailed informations please visit: http://www.govinda.at/events.php

India meets Vienna meets Silk Painting meets Music...

Date: 30th May, 2015 Time: 19:00 Place: Der Kunstraum in den Ringstrassen Galerien, 1010 Wien, Kärntnerring 11-13/144 More Information: Experimental Show of the Performance of Indian Classical Music in combination with live painting on Silk! Let yourself be enchanted and dive with us into the imaginative World and the experimental Unification resulting from: Music that is filled with an Indian Soul, performed by Alokesh Chandra & Friends, as well as my live-Painting on Silk in real-time. Be part and watch how those stimulating vibrations of the Music transform within the creative process of painting onto Silk and transfer themselves into a powerful wave!

Tickets: 17 EUR Drinks and Snack free.

For detailed informations please visit: https://www.facebook.com/events/838914559516829

Dancing India - A magical journey through Music, Dance, Bollywood and Stories Date: 13th June, 2015 Time: 19:30 Place: Theater am Spittelberg, Spittelberggasse 10, 1070 Wien Tickets: 18 EUR

Dancing India - Altindische Tämze in Fusion mit modernem Bollywood Date: 14th June, 2015 Time: 11:00 Place: Theater am Spittelberg, Spittelberggasse 10, 1070 Wien Tickets: 8 EUR For detailed informations on both events, please visit: http://www.kathak-kaveri.com

INTERNATIONAL DAY OF YOGA 21st JUNE 2015 FOR MORE INFORMATION, SEE NEXT PAGE! 26 • India Newsletter

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INTERNATIONALER TAG DES

YOGA WO: VOTIV PARK, WIEN WANN: SONNTAG, 21.JUNI 2015 VON 9.30 BIS 11:30 UHR Alle sind willkomen. Eintritt ist gratis.

Für weitere Informationen (sowie Programm-Updates bei Schlechtwetter) besuchen Sie: India Newsletter • 27

Embassy of India, Vienna

NOTICE BOARD EMBASSY’S LIBRARY ■■ The EMBASSY’S library is opened DAILY from 10am to 1pm without appointment.

■■ For a complete list of books available in our library, visit our website www.indianembassy.at ■■ For scheduling an appointment outside the opening hours, please contact the information assistant under info.vienna@mea.gov.in or 01 505 8666 33

BUSINESS CENTRE ■■ The EMBASSY’S Business Centre is opened DAILY from 10am to 1pm.

■■ For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below.

■■ Marketing Officer: maoffice.vienna@mea.gov.in or 01 505 8666 30 ■■ Marketing Assistant: comm.vienna@mea.gov.in or 01 505 8666 31

STUDENTS WELFARE OFFICER ■■ Mr. Pawan T. Badhe, Second Secretary in this Embassy has been designated as Officer to look after welfare of Indian Students in Austria and Montenegro.

■■ His contact details are: 0043 1 505 866 15 and pol.vienna@mea.gov.in

MINISTRY OF EXTERNAL AFFAIRS GOES MOBILE Now you can...

■■ Avail services : passport, visa, consular assistance ■■ Ask your Minister : on the go, anytime, anywhere ■■ Follow your PM : on his visits abroad ■■ Find the nearest Indian Mission/Post : for emergency consular assistance ■■ Be informed : about India’s Foreign Relations on the move and form your own opinions ■■ Know more : about how to undertake Kailash Manasarovar Yatra and Haj Pilgrimage ■■ Download and watch : pictures & documentaries on India ■■ Play and Personalize : what you need, when you need ■■ Share and contribute : your views, pics & suggestions All this & much more on your smartphone Ministry of External Affairs proudly presents “MEAIndia” – an integrated smart app for mobile and other hand held devices ‘MEAIndia’ is now available for download on App Store and Google Play Store..

FACEBOOK ■■ Our Facebook page targets the India-Austria community and covers subjects such as Business, Culture, Embassy News, India-related events and programmes in Austria, and much more.

■■ We have reached the 9000 followers mark!

■■ ‘Like’ our facebook page and be the first to know!

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India Newsletter • 29