INDIA NEWSLETTER Published by the Embassy of India,Vienna Year 3 | Issue 31 | July 2013
oil and gas
India Newsletter | 1
Snapshot of last month’s Highlights
ndia’s leather exports increased by 11.6 per cent to US$ 367 million in April 2013 as compared to the corresponding month last year.
he IT market in India is expected to grow to US$ 44.8 billion in 2014 from US$ 35.1 billion in 2012.
rivate equity (PE) firms announced investments worth US$ 2.1 billion in Indian companies ndia’s gold imports during April-June in May 2013, the I2013 are expected to be almost half highest amount for the imports of whole of 2012. ndia’s share in any month in more global invest- than five years. harma exports from India grew ments is expected Pby 10.55 per cent year-on-year to US$ 14.6 billion during 2012-13. to almost double t US$ 69 bilby 2030. lion, India reoreign institutional investors (FIIs) Fhave infused over Rs 22,000 crore (US$ 3.89 billion) in the Indian stock ceived the largest market in May 2013. quantum of global round 42 per remittance in the cent Indian world in 2012. companies like Bharti companies are in- Telecom Airtel, Vodafone India and Idea have together garnered 91 vesting heavily in Cellular per cent of the incremental market social networks, share in the past 12 months in India. apacity of steel mobile computing, production in analytics and cloud computing (SMAC) India has increased to about 90 milactivities. he market for steel service cenlion tonnes (MT) in T tres (SSC) in India is expected to grow at a compound annual growth 2012 from 66 MT rate (CAGR) of 18 per cent during in 2009. 2017-18.
2 | India Newsletter
s per the National Pharma policy, prices of 150 essential medicines in India are expected to reduce by up to 50 per cent by July 2013.
ervices exports from India stood at US$ 12.84 billion in April 2013, up 22.5 per cent over US$ 10.48 billion reported in April 2012.
extile exports from India is expected to reach US$ 50 billion in 2013-14. ndia produced 6.73 million tonnes (MT) of steel during May 2013 against 6.63 MT in the same period last year.
ndia continues to feature in the list of most expensive office markets across the globe with New Delhi (Connaught Place) ranking at the 5th position.
xport of coconut and coconut products from India reached a record Rs 1,050 crore (US$ 175.39 million) in 2012-13, growing by 26 per cent as compared to the previous fiscal. he business process management (BPM) industry in India is expected to reach US$ 50 billion by 2020.
INDIA-FORUMS IN GRAZ AND LINZ Past Events Report
he Embassy of India, Vienna, participated in the “Industry Forum – FMCG, Luxus, Lifestyle & Design in India”, organized by the Chamber of Commerce of Styria in Graz on 18th June 2013, and in the “Going to India and South-East Asia Forum”, organized by the Chamber of Commerce Upper Austria in Linz on 19th June 2013. Both the events were followed by presentations on various aspects related to current economic situation in India, opportunities for Austrian firms in India, integrating cultural and legal aspects of doing business in India, FMCG sector and other potential sectors for doing business in India. Dr. Wolfram Moritz, the Austrian Trade
Commissioner in Delhi and Mag. Vera Fritsch, Key Accounts Manager at the Austrian Embassy in Delhi were presents on both the occasions. Mag. Hans-JoergHoertnagl, Regional Manager for South and South East Asia at the Austrian Federal Economic Chamber made presentations during both events the events. Among the speakers, Mr. Sanjay Sharma, Director of M/S Wht’s In, India introduced several aspects of the Luxury market in India and Mr. Ravi Avalur, Partner and Vice President of M/S Tecnova, presented a very informative compilation on ‘business India’ focusing on market entry alternatives.
Message from Hon’ble External Affairs Minister On occasion of the “Passport Seva Divas”
t gives me immense pleasure to declare that the Ministry of External Affairs has decided to celebrate the 24th June every year as ‘Passport Seva Divas’. lt was on this day in 1967 that the landmark Passports Act was enacted, laying the foundation of a sound legal framework for issuance of Passports and other travel documents in the post-independent lndia. Today, Passport service is one of the important public services delivered by the Central Government. ln 2012, 7.39 million lndian citizens were provided Passport services through the all-lndia network of 37 Passport Offices and 180 Indian Missions/Posts abroad. The number of passport applications have registered almost a three-fold increase since 2000. ln this context, the successful implementation of the Cabinet-mandated Passport Seva Project in 2012 assumes
special significance. The Project, which was undertaken to comprehensively overhaul Passport issuance and delivery system, was completed swiftly over two years and by June 2012 the task of setting up of 77 Passport Seva Kendras (PSKs) was accomplished. The transformational changes have been brought by the Government with the aim to extend Passport services to the citizens by expanding the network for Passport services and ensuring service delivery with greater security, reliability and defined service levels. Some of the other steps to make the Passport lssuance System simpler, speedier and secure include strengthening of the Public Grievance Redressal Mechanism, establishing multilingual National Call Centre operating round-the-clock, creating userfriendly portal, holding Passport Melas
and Adalats to reach out to the people, improvement in physical infrastructure in Passport Offices and introduction of new security features in Passport booklets to keep pace with international developments. On this occasion, I would like to convey my greetings to all the employees of the Central Passport Organisation, officials doing Passport work in Missions/Posts abroad and personnel deployed by M/S Tata Consultancy Services at PSKs. As we observe Passport Seva Divas today, let us work together to make Passport Seva programme a model of good governance and efficient citizen service delivery in the country. (Salman Khurshid) Minister of External Affairs Government of India
important notice concerning visa fees From our Consular Wing
With effect from July 1, 2013, service charges for visa services will be Euro 5, 20 (Five Euro Twenty Cents Only). Visa Fees, as applicable, will remain unchanged. 2. Applicants are advised to check their particulars on the visa sticker at the time of collection of the passports and should
immediately contact the concerned official for rectification of any mistake detected on their visas issued by the Embassy. 3. Applicants should ensure that their photos are 2 inches x 2 inches (51 mm x 51mm) in size with white background. Details about photo requirements can be
found on the Indian Online Visa Site. Photos which do not meet these specifications will not be accepted. 4. Applicants are advised not to finalize their travel plans or book flight tickets to India before obtaining appropriate visa. India Newsletter | 3
GAW GROUP PUBLISHES ARTICLE ON THE INDIAN ECONOMIC FORUM India in Austria
The Austrian GAW GROUP publishes article on the “Indian Economic Forum”
event co-organized by the Indian Embassy in the Styrian Chamber of Commerce
in March, 2013. Excerpt from page 8 of the company’s news magazine:
INDIA-AUSTRIA BILATERAL REPORT First Quarter FY2013-14
ustrian imports from India decreased by -2.53% in the first quarter of 2013. Major sectors of bilateral trade such as Vehicles and Organic Chemicals have registered a steep decrease. The numbers cannot be interpreted as a downward trend for neither of the sectors since the trade volume fluctuations along the year tend to turn these figures around. While in 2012, the majority of imports were Vehicles followed by Apparels, the current figures show Apparels as the most imported item from India in the first quarter of 2013. Additionally, electrical machinery and pharmaceutical products, for example, although showing
significant relative growth, account for about the same share of total imports in comparison to 2012 all-year figures. Both these statements also support the aforementioned note that the current figures cannot be seen as concrete trends. As far as exports to India are concerned, the decrease in trade was much steeper, registering a drop by -14.08%. In comparison to Austria’s total exports to the world, the figures represent a representative slowdown in relation to India. The results indicate that the decrease is not to be found in the major three export areas (Machinery, electrical machinery and
Measuring Equipment). Again, these numbers cannot be understood as conclusive trends due to monthly trade volume fluctuations. This is even easier to note due to the fact that some major industries of exports such as Railway/Rolling Stock does not even feature in the top-10 list. Interesting to note is the large increase in exports of Man-made fibers, which doubled its value for the period, accounting now for 3% of total exports and featuring for the first time in the top-10 list of exports, taking the spot of Copper Articles when comparing to 2012 final annual results.
Austrian Imports from India (Jan-Mar 2013)
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Austrian Exports to India (Jan-Mar 2013)
BRITISH INDIAN BUSINESSMAN BUYS AUSTRIAN HYPO ALPE ADRIA India-Austria Business
ritish Indian businessman and investor Sanjeev Kanoria has acquired the domestic banking unit of Austrian bank Hypo Alpe Adria for around $85.5 million. The nationalised bank agreed to sell Hypo Alpe Adria Bank AG, the unit which operates in the southern Austrian province of Carinthia, to Anadi Financial Holdings, the Klagenfurt-based lender said in a statement.
London-based Kanoria, 49, is the brother of Hemant Kanoria, chairman of Indian group SREI Infrastructure Finance Limited, which had been named by the Austri-
an media as a potential buyer of the bank. “New products, additional markets and fostering the core region are the aims of our engagement,” Kanoria, who is also a doctor, said in the statement, adding that SREI will provide “financial expertise” to the business. “The investor is not only the clearly best bidder, but also has first-class experience in international business and convincing connections to leading financial organisations,” Hypo Alpe chief executive officer Gottwald Kranebitter added in the statement.
The sale - the first step in the bank’s campaign to divest operating units under pressure from the European Commission - is now subject to regulatory approval. The sale was managed by JPMorgan Chase & Co and TJP Advisory & Management Services, Hypo Alpe said. The Hypo Group is also in the process of shedding its subsidiaries in south-eastern Europe after it ran into trouble before the global financial crisis because of risky investments.
India registered second highest growth in HNWI Report on HNWI Population for 2012
ndia stood at second position with 22.2 per cent growth in its high net worth individuals (HNWI) population in 2012 after Hong Kong. The investable wealth of the world’s HNWIs registered a 10 per cent growth in 2012 to reach a record high of US$ 46.2 trillion, according to the World Wealth Report 2013, released by Capgemini and RBC Wealth Management. One million individuals have joined the global HNWI population, which reached 12 million, registering a growth of 9.2 per cent. HNWI population increases were strong in 2012, said Mr Jean Lassignardie, Global Financial Services Chief Sales and Marketing Officer, Capgemini. In 2012 North
America’s population of 3.73 million HNWI surpassed the Asia-Pacific’s 3.68 million, while its HNWI’s wealth reached US$ 12.7 trillion, above the US$ 12 trillion in the Asia-Pacific.
moves. The global HNWI wealth is fore-
Hong Kong experienced a 35.7 per cent increase in its HNWIs population, followed by India, with 22.2 per cent growth among the Asia Pacific countries.
and a half times the global average at 9.8
In India, the growth in number of HNWIs was attributed to positive trends in equity market capitalisation, gross national income, consumption and real estate. Reform measures and monetary easing helped the Indian equity markets to gain by 23.9 per cent. In Asia-Pacific, equity markets responded well to aggressive monetary policy
cast to grow by 6.5 per cent annually over the next three years with the Asia— Pacific region projected to grow at one per cent and is expected to lead global growth, highlighted the report. “Despite a marked focus on capital preservation and high cash allocations, high net worth individuals achieved a record level of wealth in 2012, suggesting further growth lies ahead if trust and confidence in the markets increase further,” said Mr M George Lewis, Group Head, RBC Wealth Management & RBC Insurance. India Newsletter | 5
Growth will be 6% plus in 2013-14 By Prime Minister’s Economic Advisory Council
ndia’s economic growth would pickup in 2013-14 and record six per cent plus levels, C. Rangarajan, Chairman to the Prime Minister’s Economic Advisory Council (PMEAC), said. He added that public sector investments would act as drivers of growth this fiscal. At a CA Institute event, Rangarajan, when asked if he was cutting down his GDP growth forecast, told Business Line that he expected growth to range between 6-6.4 per cent. “It will be six per cent
plus and about 6-6.4 per cent,” he said, while admitting that the official PMEAC position was growth forecast of 6.4 per cent this fiscal. Rangarajan stressed the need for added focus on the agriculture and power sectors to improve the economic situation. He maintained that India could record robust economic growth rates even at the reduced investment rates of 30 per cent.
“Investment rate of 30 per cent is still not low. It is lower than 2007-08. But is a reasonably high rate. It gives us hope that if obstacles are removed, India can record higher growth rates in the short run,” he said. Asked about his expectations from the Reserve Bank of India on July 31, Rangarajan said RBI’s policy rate action would largely depend on its perception of the rupee.
India will be major exports hub By US automobile major Ford Motor Company
S automobile major Ford Motor Company is betting big on Asia-Pacific markets, especially China and India. “In the next four to five years, sales from Asia-Pacific would be about 40 per cent,” said Ford chief executive Alan Mulally, adding markets in this region were growing the fastest in the world. Currently, Asia-Pacific accounts for 19 per cent of Ford’s global sales. Ford Chief Executive Alan Mulally, here for the roll-out of the Ford EcoSports production line at its existing facility near Chennai, said Asia-Pacific was important for Ford and strategies were being put in place to tap the domestic market and use the region as a sourcing hub. The company is betting big on the ‘B’, or compact car, platform/chassis. Mulally said Ford was investing in seven plants in the AsiaPacific region - five in China and two in India (the engine plant at the facility near Chennai and a new facility in Gujarat).
“Ford will export Figo and EcoSport models out of India. The Indian plants would support the market here, as well as other global markets,” Mulally said, adding one of India’s advantages was its competitiveness and free trade. Mulally said there was a huge opportunity in the B-platform, where different kinds of body panels could be put on. He added Ford was focusing on the B-segment and there would be more models in this space. Joginder Singh, president and managing director, Ford India, said the company had doubled its investment in India from $1 billion in 2011 to $2 billion. It had also doubled its production capacity in India. On the EcoSport, Mulally said it would be a small sports utility vehicle on the ‘B’ platform, one of the fastest growing segments in the country. By 2015, the company would produce two million vehicles a year on its B-platform globally.
Ford has invested about $142 million at its plant near here to roll out the EcoSport. Currently, it manufactures the model at its plants in Camacari (Brazil) and Chongqing (China). Production in Rayong (Thailand) and Tatarstan (Russia) is yet to start. On whether the company would lose about $2 million in Europe this year and whether it would shut any of its European plants, Mulally said though the European market was under stress, the leadership in that region was dealing with the hurdles and some felt the crisis had bottomed out. He added Ford Motor Company was restructuring its European operations and cutting production levels to match the demand there. He said the company continued to supply engines to Tata Motors’ Jaguar and Land Rover models. A few years ago, Tata Motors had acquired these brands from Ford.
In innovation, India ranks 66th among 142 countries Report on Innovation
ndia ranked 66th among 142 countries in the Global Innovation Index 2013, and first in the Central and South Asia region in the innovation efficiency ratio (which reflects the innovation output per unit of input in the economy). The report, published by Cornell University, INSEAD, World Intellectual Property Organisation and the Confederation of Indian Industry, studied the emergence of local innovation eco-systems. Overall, India’s performance was mixed. 6 | India Newsletter
While the country was strong in gross capital formation (as a percentage of GDP) at rank 9, investment in new business (20), industrial cluster development (29), it ranked poor in áreas such as political stability (123), ease of starting business (128), school life expectancy (109), pupil-teacher ratio (108) etc. In the global rankings, Switzerland and Sweden topped in innovation, followed by the United Kingdom, the Netherlands and the United States. Among regions, innova-
tion was seen improving the most in Latin America. “The results of the GII (Global Innovation Index) provide testimony to the global nature of innovation today.The top 25 ranked countries on the GII are a mix of nations from across the world-- North America, Europe, Asia, Oceania and the Middle East. While high-income economies dominate the list, several new players have increased their innovation divide exists.” said Soumitra Dutta, co-editor of the report.
Fitch upgrades India’s outlook to stable By Fitch Ratings
itch Ratings has revised India’s sovereign credit outlook to stable. “The revision of the outlook to stable reflects the measures taken by the government to contain the budget deficit, including the commitments made in the 2013-14 budget, as well as some, albeit limited, progress in addressing some of the structural impediments to investment and economic growth,” according to a statement by Fitch. It is expected that the Indian economy will recover after the real gross domestic product (GDP) grew at 5 per cent
in 2012-13. Fitch forecasts only a modest recovery with real GDP expected to expand 5.7 per cent and 6.5 per cent in 2013-14 and 2014-15, respectively. The revision in outlook could not have come at a better time as the authorities are now seriously engaged in devising ways and means to appreciate the rupee. Fitch considers India’s overall external position to be a relative rating strength. Foreign debt is moderate and Reserve Bank of India’s (RBI) international reserves, which stood at US$ 288 billion at
the end of May 2013, provide a cushion to absorb adverse external shocks, highlighted the statement. India’s investment-grade ratings are also reinforced by high domestic savings rates that limit the reliance on foreign savings for private investment and fiscal funding, as well as by a relative long maturity of government debt issued in its own currency. The revision reflects the measures taken by the government to contain budget deficit.
indian cos’ foreign investment rises to $7.64bn in april Foreign Investment
oreign direct investment by Indian companies rose more than three times in April to $7.64 billion in April, from $1.89 billion in March, data from the Reserve Bank of India (RBI) showed. The data published includes investments made under automatic as well as approval route.
Bharti Airtel invested $3.35 billion in its joint venture in Netherlands that is into the business of transport, storage and communication services. While ONGC Videsh Limited invested $813.52 million in its joint venture in Azerbaijan and $70.08 million in its wholly owned unit in the Cayman Islands.
In April, as many as 499 deals were carried out by Indian firms to carry out the outward foreign direct investment. Bharti Airtel, Oil and Natural Gas Corporation (ONGC) Videsh, Suzlon Energy, GMR Infrastructure, Amtek Auto and Tractors and Farm Equipment were among the major companies that invested in their foreign arms during the month.
Suzlon Energy made an investment of $674.79 million in its wholly owned subsidiary in Netherlands. GMR Infrastructure’s investment was $306.93 million in its wholly-owned unit in Mauritius and Amtek Auto made an investment of $286.72 million in two separate projects in Singapore and Germany. Tractors and Farm Equipment made an investment of
$89.8 million in two separate entities in China and the US. OVERSEAS STEPS In April, about 499 deals were carried out by Indian companies to carry out the outward foreign direct investment Bharti Airtel invested $ 3.35 billion in its joint venture in Netherlands ONGC Videsh Limited invested $ 813.52 million in its joint venture in Azerbaijan and $ 70.08 million in its wholly owned unit in the Cayman Islands Suzlon Energy made an investment of $ 674.79 million in its wholly owned subsidiary in Netherlands
Guar gum India’s biggest agricultural export item Foreign Trade
or a second year, guar gum has emerged as Indias largest item of agricultural export. And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director General of Commercial Intelligence and Statistics (DGCIS). Guar gum, has seen rising demand from big Western oil companies on its use as a controlling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 2012-13, it has registered 624 per cent rise in exports in value terms. India is the worlds largest producer of the gum. On average, the country produces 1-1.5 million tonnes of guar annually.
Almost 40 per cent of guar gum produced in the country is used for industrial purposes. In 2012, guar prices in the world markets rose a massive 800-1,000 per cent, chiefly due to large-scale stocking by multinational oil companies over fears of short supplies, following drought in India.
Between 2010-11 and 2012-13, export of basmati rice increased 71 per cent in value terms, while that of non-basmati rice rose a massive 6,000 per cent, pushing India to the pole position in this segment globally in 2012.
Of Indias total agricultural exports of Rs 120,000 crore in 2012-13, guar gum accounted for 18 per cent, DGCIS figures show. In 2010-11, guar gums total share in Indias overall export of agricultural items was just seven per cent.
The share of basmati rice in Indias total agricultural exports from 2010-11 to 2012-13 dropped from 26 per cent to 16 per cent. However, the share of non-basmati rice showed a considerable jump from 0.52 per cent in 2010-11 to 12 per cent in 2012-13, primarily because of the governments decision to lift the ban on its export.
Basmati and non-basmati rice, traditionally the flagbearers of Indian agricultural exports, have also risen in export value, but have not managed to upstage guar gum as the primary item.
Another item that logged impressive growth in exports, according to the data, was flowers rising 43 per cent in value terms between 2010-11 and 2012-13, to Rs 423 crore. India Newsletter | 7
EU-India free trade pact will power India’s growth India-EU Free Trade Pact
ultiple negotiating rounds, EU-India summits and a number of other technical meetings since 2007, have not been able to iron out differences between the 27 nation bloc and India on the India-EU Bilateral Trade and Investment Agreement (BTIA). With only a “narrow political window” of opportunity left, Commerce Minister Anand Sharma’s visit to Europe must be followed closely. An EU-India Free Trade Agreement (FTA) would have an impressive scale. India is currently the EU’s 9th most important trading partner, whereas the EU is India’s largest trading partner. The FTA would set a predictable framework, slashing duties on over 90 percent of bilateral trade. While the EUIndia relationship has been branded a strategic partnership, set against its potential, the relationship has under-delivered. Considered ‘natural allies in a wide range of global issues’ by both parties, the FTA would be an important step in enhancing the EUIndia relationship. India has much to gain from an FTA with the EU, particularly in regard to preferential and duty-free access to the European market. A Sustainability Impact Assessment (SIA), commissioned by the EU, indicates that an extended (broad) FTA (including further non-trade barrier harmonization) would result in significant benefits to both partners in terms of welfare gains, production, international trade, wage and productivity increases. The welfare effect amounts to an additional 0.3 percent growth for the Indian economy in the short run and 1.6 percent growth in the long run. However, it would take more than just a reduction in tariffs to make the FTA attractive for India. India’s trade policy is fairly constrained by its concerns for the poorer parts of its demographic. In the near future, the majority of India’s population will be under the age of 30, necessitating a growth strategy centred on job-creation rather than an export-led one. India’s demographic and its education system will be churning out a skilled, competitive, English-speaking work force, which Europe will be in short supply of in the near future. It is also in EU’s own interest to incorporate an ambitious Mode 4 (Mode 4 refers to the supply of natural persons for providing services) liberalisation package of GATS (General Agreement on Trade in Services). 8 | India Newsletter
The economic benefits of the FTA are to a large part dependent on the extent to which investment is allowed to play its part. The FTA seeks to provide trade related assistance to aid India in continuing its efforts to better integrate into the world economy. Areas such as sanitary and phytosanitary measures and technical barriers to trade (including the upgrading of laboratories and testing facilities so that these are able to provide certifications for export to Europe), the setting up of Investment Facilitation Desks, training of customs officials etc are being extended. Indian exporters can attain higher standards with technical assistance from the EU. Moreover they are extending programmes that would look to enhance capacity of traderelated regulatory institutions and enforcement systems, to meet international standards and requirements and business needs. An issue that is polarizing public opinion is the suspicion regarding manufacture of generic drugs. The EU had earlier demanded an exclusive chapter on data exclusivity. By gaining rights over data, innovator companies can prevent their competitors from securing marketing licenses for low-cost versions during the tenure of this exclusivity. This would negatively impact India’s pharmaceutical sector, which has been called ‘the pharmacy of the developing world’.This fear should be dispelled as the EU has withdrawn its data exclusivity clause. Despite this, many protests continue amidst the fear of a hike in the price of life-saving drugs. Both partners need to treat this issue sensitively. Considering the impact of such an agree-
ment, the details of the negotiations have not been made public. The public has to content itself with leaked reports and drafts. This has caused much anxiety in the minds of the people and communication to the larger public needs to be boosted so as to dispel fears and clarify issues which have been addressed. There are other issues that still need to be ironed out. The EU has pushed for hiking FDI in the insurance sector to 49 percent. Recent news reports suggest that the government is finally moving in that direction. Moreover there is reluctance on the part of the EU to negotiate terms on the issue of government procurement. The Indian government is treading cautiously as one would not want to translate social objectives to economic costs. The FTA must seek to build on complementarities that have surfaced as a result of the Eurozone crisis. India has witnessed a fall in its exports due to falling demand internationally and the EU is looking to boost growth. A successful conclusion of the FTA would go a long way in building international market confidence, giving much needed stimulus to the international economy. The loss of revenue from reduction in tariffs should be viewed in gains of transfer of technology, productivity increases and greater competition. The FTA will be India’s first large trade agreement with a western bloc, consisting of 27 economies. If structured well, the agreement could power India’s growth for the next decade.
NASA to partner ISRO in India’s Mars mission Indian Space Research
he US would support India in its much-awaited Rs 450-crore Mars Orbiter Mission (MOM) slated for lift off from Sriharikota in October-November 2013. “Nasa is providing the deep space navigation and tracking support to this mission during the non-visible period of the Indian Deep Space Network,” said a US state department announcement. The decision to cooperate was taken at the fourth meeting of the US-India joint working group on civil space cooperation held in Washington on March 21. But the details of the meeting were
made public through the US-India joint fact sheet. Its release coincided with the Indo-US Strategic dialogue, and the talks between Isro chairman K Radhakrishnan and Nasa administrator Charles Bolden in New Delhi.
Nasa will provide support from its facilities at Goldstone in the US, Madrid in Spain and Canberra in Australia.
Isro officials have not ruled out a second mission to Mars, which they said will have more scientific content.TOI has also learnt that Nasa was keen on participating with Isro in the analysis of data from the Methane Sensor For Mars, which is one of the five instruments on board the present Indian Mars orbiter. But Isro has not given any firm response so far.
The teaming up for the Mars mission assumes significance in the context of Bolden calling for strengthened co-operation in this programme, when he addressed Isro staffers nationwide from the Ahmedabad-based Space Applications
The American state department document also stated that both countries have “agreed to co-operate in potential future missions to the moon and Mars”.
India launched its first navigation satellite Indian Space Programme
ndia has successfully launched its first dedicated navigation satellite IRNSS-1A using the Polar Satellite Launch Vehicle (PSLV) from the Satish Dhawan Space Centre, Sriharikota in Andhra Pradesh (AP), on July 1, 2013. IRNSS-1A developed by India is the first of the seven satellites constituting the Indian Regional Navigation Satellite System (IRNSS) space segment and has a mission life of 10 years. The satellite is designed to provide accurate position information service to
users in the country as well as the region extending up to 1,500 km from its boundary. IRNSS consisting of a space segment and a ground segment has three satellites in geostationary orbit and four satellites in inclined geosynchronous orbit and is to be completed before 2015. IRNSS-1A was launched at a cost of approximately Rs 125 crore (US$ 21.05 million), said Mr K Radhakrishnan, Chairman, Indian Space Research Organisation (ISRO).
For the ground segment Rs 300 crore (US$ 50.53 million) is allocated and almost all the satellites would cost Rs 125 crore (US$ 21.05 million), since all of them would most probably be identical, said Mr Radhakrishnan. IRNSS will be on lines with Russia’s Global Orbiting Navigation Satellite System (GLONASS), United States’ Global Positioning System (GPS), European Union’s Galileo (GNSS), China’s BeiDou satellite navigation system and the Quasi-Zenith Satellite System.
India, Hungary join hands for ‘gas monitoring system’ International
ujarat Info Petro Ltd, a subsidiary of Gujarat State Petroleum Corporation, has signed an agreement with Cason Engineering Plc, Hungary, in pursuant to the MoU signed during the Vibrant Gujarat Summit-2013, for a gas monitoring system.
ing, manufacturing and implementing systems for gas distribution network monitoring.
daily purchased gas volume and to pro-
It has developed and installed new solutions with leading technologies for large oil pipeline operators in Europe and other countries worldwide.
reports and alarms via Web-based appli-
The agreement was signed by V. K. Sharma, CEO, Gujarat Info, and Ferenc Szakács, Chairman and CEO of Cason, according to a release here.
The agreement aims to provide automation services for gas and oil companies in India.
Gujarat Info provides IT services to government departments, boards, corporations and corporate houses as an apex consultant and total solutions provider. User-friendly Cason is a Hungary-based technology company having experience in develop-
The joint technical solutions generate easy and fast accessibility to the latest leading technologies for the rapidly developing city gas distributor industry. Advantages The main advantages of the offered solutions are to provide tool to control the procurement and sales procedures of
vide access for stakeholders to the relevant daily business data with technology cations. Safety measures The consortium will also offer a special pipeline monitoring system and leak detection to leading oil pipeline operators to decrease the number of accidents and incidences such as thefts and pilferages caused by third parties in the pipelines. This will provide solutions for disaster management and security issues of crosscountry pipelines. India Newsletter | 9
Germany’s SEA Group enters India International
EA Group of Germany, the world’s fifth largest living space solution provider, has entered into India with an initial investment of Rs 14 crore, which could go up to Rs 40 crore in two years. Aiming to take up projects in association with large builders, mainly through the franchisee route, SEA will offer “creative,
durable and high quality home interior solutions to end consumers and corporate clients”, the company said. While SEA Group has long experiences in German and other European markets, it has now teamed up with leading manufacturers in Europe like bauformat Küchen to bring high quality services to India and then to Southeast Asia.
The group expects to achieve a turnover of Rs 180 crore by 2016. With the introduction of the SEA Future Labs, it is also offering a platform to integrate German and Indian designers to develop with their customers new ideas and introduce new market trends, the company added.
Easier entry, faster registration for foreign institutions Doing Business in India
oreign institutional investors (FIIs) will now be able to enter Indian markets faster and register themselves more quickly with the regulator accepting the recommendations of the Chandrasekhar committee report. While the time required for registration is supposed to be a week or less, the need for documentation can push it to over six months, according to those in the know. The new norms are expected to significantly reduce the time required to do so. The Securities and Exchange Board of India (Sebi) has given its nod to the suggestions of the committee, which include lower Know Your Client (KYC) requirements for entities backed by governments and doing away with the need for registration with the regulator, according to a press release following a board meeting. Sebi has said FIIs, sub-accounts and qualified foreign investors (QFIs) are to be merged into a new investor class to be termed “foreign portfolio inves-
tors” (FPIs). Neither FIIs nor their subaccounts will require prior registration with the regulator. Instead, they would register themselves directly with designated depository participants (DDPs). The regulator has also adopted a riskbased approach to KYC, dividing it into three categories on the basis of perceived risk. The first will cover organisations backed by the government, such as sovereign wealth fund.The second will cover regulated entities such as foreign mutual funds, while all other entities would fall in the third category. Also, it has clearly defined foreign direct investment as any investment exceeds 10 per cent stake in the company. Richie Sancheti, senior associate at Nishith Desai Associates, indicated the move would do much towards rationalisation of foreign inflows. “The move to harmonise and streamline the KYC norms will ease the process of entry of foreign portfolio investors into India. Sovereign wealth funds and institu-
tional investors can invest more easily on a disintermediated basis. While the complete committee report is awaited, the earlier press release did clarify that other investors that get categorised under category III portfolio investors on the basis of risk weightage, may not be permitted to issue participatory notes,” he said. Yogesh Chande, consultant, Economic Laws Practice, suggested entities already registered might have some leeway. “It will be good to see how existing FII and FII sub-accounts would glide into the new regime. My sense is, perhaps they will be automatically grandfathered. The risk based-approach to KYC is a welcome move,” he said. Other recommendations would likely require a move from the government, according to the Sebi statement. The committee had also suggested the category III entities should not be allowed to issue participatory notes. This did not find a mention in the press release following the Sebi board meet.
Govt to roll out Rs 1-lakh cr infra projects Infrastructure
orts in Andhra Pradesh and West Bengal, an elevated rail corridor in Mumbai, and locomotive projects in Bihar are among the key infrastructure projects to be kicked off in six months. This was decided at a meeting chaired by the Prime Minister.
committed to the projects,” said Montek Singh Ahluwalia, Planning Commission Deputy Chairman, during a presentation at the meeting called to set the 2013-14 target for infrastructure sectors.
“The Government can roll out publicprivate partnership (PPP) projects worth at least Rs 1 lakh crore during the next six months. The Principal Secretary in the Prime Minister’s Office will monitor these projects. All the Ministries are
The meeting also reviewed the 2012-13 targets. Ahluwalia said the power sector had done well, while the road sector had seen a lot of slippage.The performance in ports and airports was satisfactory, while the Railways faced a challenge of funds,
10 | India Newsletter
he said. The “biggest priority is to unlock delayed and stuck projects,” he added. To address fuel issues related to natural gas in the power sector, the Petroleum Ministry will soon move a note to the Cabinet Committee on Economic Affairs (CCEA) that is likely to propose sharing of natural gas among various sectors. Currently, the demand for natural gas is 90 million standard cubic metres, while domestic availability is just 20 mscm. And there is another problem. First, the fertiliser sector gets top priority in gas al-
Interview location followed by power. Second, even if the power sector is willing to import gas at high prices, it cannot be supplied to all the areas. “Sharing of domestic natural gas between fertiliser and power plants that supply power on administrative price is
one possibility, because gas-based power plants have invested a lot of money,” Ahluwalia said. Road sector As for the road sector, Ahluwalia said discussions were on with the Finance and
Road Ministries to set separate targets for projects executed under BOT (buildown-transfer), EPC (engineering, procurement and construction) and annuity basis. The effort is to reverse the slowdown in awarding public-private partnership projects, he added.
India helping in controlling global food prices By Sharad Pawar, Agriculture Minister ndia has emerged as a strong player in helping cool down global food prices by exporting major farm commodities like rice and wheat, Agriculture Minister Sharad Pawar said.
The minister said that the country has harvested record foodgrains year after year. Agriculture is the only sector in the country which has almost achieved its 11 Plan target of 4 per cent growth rate.
“It creates job opportunities, sustainable livelihood for millions of people in the farm sector and also has the capacity to reverse the rural to urban migration,” he said.
“While feeding 17 per cent of world’s population we have emerged as strong player in international market helping to cool down the world food prices,” Pawar said at the 16th Indian Cooperative Congress organised by NCUI here.
The sector has performed well also because of the presence of large number of primary cooperatives handling supply of agriculture inputs, credit, and marketing and storage activities, he added.
Both short-term and long-term cooperative credit sector and urban cooperative banking sector has the capability to promote financial inclusion, which is necessary for inclusive growth in the rural and semi-rural areas, he said.
Last year, the country exported agriculture produce worth Rs 1.87 lakh crore, while this year till February itself exports have already crossed Rs 2.1 lakh crore, he said.
The minister said that the cooperatives are more relevant in the the present era than any other time because it is the most potent tool for inclusive growth.
According to official data, foodgrains production in 2011-12 was record at 259.32 million tonnes. It is expected to be high at 255.36 million tonnes this year.
Buffalo meat could help India stay No.1 in beef export Beef Exports
ndia will continue to be the leading beef exporter this year despite slower growth in cattle, calf production and higher domestic consumption. In the Indian context, beef export is shipment of buffalo meat which is also known as carabeef in the global market. Shipment of cow meat from the country is banned. Last year, India overtook Brazil as the top exporter of beef, mainly due to growing acceptance of its buffalo meat by SouthEast Asia,West Asia and African countries. Buffalo meat exports this year from India could rise to 1.7 million tonnes (mt) against 1.41 mt last year. Initially, the USDA has estimated that beef exports this year could top 2.1 mt. “Our buffalo meat exports are giving a tough competition to other countries due to our competitive pricing and quality,” said Tarun Bajaj, General Manager (Livestock products), Agricultural and Processed Foods Export Development Authority (Apeda). Buffalo makes up one-third of the bovine population in the country. It is preferred to cow due to its adaptability to climatic
conditions and high milk fat content as dairy production is fuelling the bovine sector. Since slaughter of cow is banned, beef production is driven by buffalo slaughter which is allowed. However, the slaughter is restricted to males and unproductive females. According to Apeda, exports of meat and its products increased to $3.29 billion in 2012-13 against $2.91 billion the previous year. Since 2008, when India exported 672,000 tonnes, shipments of buffalo meat have almost trebled. Brazil’s exports Indian exports have made inroads into West Asia, North Africa and South-East Asia, a key market for Brazil, as buffalo meat is cheaper in these price-sensitive markets. It is produced according to halal standards (meat prepared as prescribed by Islamic law). Brazil has been witnessing a constant decline in beef exports due to shrinking land availability, but this year its shipments are expected to rise to 1.6 mt from 1.52 mt last year.
Currently, there is renewed interest in livestock farming as the Brazil Government is providing support for pasture management and genetic improvement of cattle. “The other reason for our exports rising is our quality. Some of our exporters have excellent processing units.This is really helping,” said Bajaj. Domestic market On the other hand, domestic consumption is also likely to increase this year. It could increase to 2.1 mt from 2.04 mt last year. Since 2008, domestic consumption has not gained as much as exports. This is because people are shifting to lamb and other meats in view of increasing income in the country. Poultry meat, in particular, has increased sharply in the last few years. According to the USDA, cattle heads could increase by four million tonnes to 327 mt, while nearly 64.3 mt calf could be produced this year against 63.4 mt last year. The USDA also projected a lower export of 8.6 mt this year. India Newsletter | 11
oil and gas INDUSTRy Indian Industry Sector Close-Up
The Indian Oil and Gas (O&G) sector is one of the six core industries of India and contributes over 15 per cent to the Gross Domestic Product (GDP). The country is the sixth largest consumer of oil in the world and the ninth largest crude oil importer. The sector is of immense importance to the economy owing to its significant forward integration with many other sectors. India is committed to boosting its growth in the years to come and this progress would translate into the country’s energy needs growing many times. The need of the hour, therefore, is to channelise all efforts on exploration of new blocks effectively as well as efficiently. The growing demand for crude oil and gas in the country coupled with policy initiatives of the Government of India towards increased E&P activity has given a great impetus to the growth of this sector. Key Statistics
• Oil continued to remain the top item in India’s export basket during 2012-13. Crude oil as well as other petroleum products accounted for about one-fifth of India’s outbound shipments, giving the much-needed boost to the country’s exports. Petroleum product exports rose 7.7 per cent at US$ 60.3 billion in 201213 from US$ 56.04 billion in 201112.
• Indian refiners processed 6.8 per cent more oil in April 2013 than a year earlier at 3.62 million barrels per day (mbpd), according to recent Government data, reflecting expanded capacity.
• Natural gas output stood at 3 billion cubic metres (BCM) in April 2013.
• India’s refining capacity was enhanced by 400, 000 bpd in 2012. Another 400, 000 bpd of capacity could be added in 2013 if Indian Oil Corporation’s 300,000 bpd Paradip and Nagarjuna’s 120,000 bpd Cuddalore refineries are completed by the end of this year.
12 | India Newsletter
Diesel & Petrol Crude oil production, as indicated by the core sector index, accounts for over 5 per cent of India’s index of industrial production (IIP). Diesel consumption increased by 4.2 per cent year-on-year (y-o-y) in April 2013 to 6.2 million tonnes (MT), according to data compiled by the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas. The growth in diesel consumption was faster than other petroleum products. The overall consumption of petroleum products increased 3.1 per cent y-o-y in April 2013, PPAC data indicated. Gas Natural Gas has emerged as one of the most preferred fuel owing to its environment-friendly properties, greater efficiency and cost effectiveness. India’s shale gas reserves are at about 290 trillion cubic feet (TCF), of which 63 TCF could be recovered, according to a study by US Energy International Agency. Shale gas is natural gas formed from being trapped within shale formations. Natural gas sector constitutes about 9.8 per cent of primary energy consumption which is projected to grow up to 20 per cent by 2025 as per Indian Hydrocarbon vision. About 65 per cent of natural gas consumption is accounted by power and fertiliser sectors. Petroleum and Natural Gas Regulatory Board chairman S. Krishnan emphasises on the need to develop a strategy to meet substantial share of energy needs from natural gas and take its contribution in the country’s energy basket from 9.8 per cent to 25 per cent in the medium term. The demand for natural gas in India has been growing, and is expected to increase by 280 per cent from the current levels to 220 BCM by 2020. Developments/Investments
• State-owned Petronet LNG intends
to establish a mini-liquefied natural gas (LNG) terminal in the Andaman and Nicobar Islands at an outlay of about Rs 600 crore (US$ 105.2 million). The company is also set to commission its second terminal in
Kochi in July 2013. The mini-LNG terminal would be Petronet LNG’s first venture outside mainland India.
• Petronet is also in the process of
enhancing the capacity at its Dahej terminal from 10 MT to 15 MT. The company is also bidding for a 25 per cent stake in Gujarat State Petroleum Corporation (GSPC)’s 5 MT-LNG-terminal at Mundra. If it acquires stake in the project, it would form an alliance with GSPC and the Adani group.
• Punj Lloyd has bagged Rs 730 crore
(US$ 128 million) B-127 cluster pipeline project in Mumbai from Oil and Natural Gas Corporation (ONGC).
• The selection was made through a
bidding process. The B-127 cluster comprising three marginal fields: B-127, B-157 and B-59: has an estimated cumulative production of 1.836 MT of oil and 2.093 BCM of gas over a ten-year tenure and the additional development of B-55 poses a production of 0.155 MT oil and 2.583 BCM gas over 13 years.
• ONGC Videsh Ltd (OVL), the for-
eign investment arm of state-run ONGC has announced its intentions to invest in power, petrochemical and fertiliser plants in Bangladesh after securing two shallow water gas blocks in the South Asian nation. The firm would be getting into exploration business in a neighbouring country for the first time. OVL, along with Oil India Ltd (OIL), will develop the blocks in Bangladesh. A production-sharing contract (PSC) for the same would be signed by August 2013.
• Cairn India, a Vedanta Group Com-
pany, plans to invest US$ 2 billion over 2013-15 to develop its Barmer block in Rajasthan. The company intends to drill at least 500 wells a year by 2018 and reports that the resource base allows production of 300,000 bpd.
• Cairn India, promoted by London-
based billionaire Anil Agarwal, holds 70 per cent stake in the block while public sector explorer ONGC holds the remaining 30 per cent.
Government Initiatives Decisions made in the E&P sector influences decisions in every sphere of the economy and the Indian Government keeps a meticulous track of policies implemented, global happenings and future reforms. The Cabinet Committee on Investment (CCI) has recently cleared 25 E&P blocks, releasing Rs 24, 900 crore (US$ 4.36 billion) of investments. Meanwhile, India and Finland have decided to join efforts in the area of sustainable development for mutual benefits in the O&G sector, which includes specific projects in solar energy applications for O&G Projects, bio-fuels & algae based bio-fuels research and water and waste water management. The Reserve Bank of India (RBI) has also announced that Navratna Public Sector Undertakings — OVL and OIL — will be allowed to make overseas investments in the incorporated Joint Ventures (JVs)/ Wholly Owned Subsidiaries (WoS) in the oil sector. These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, already approved by the
Government of India, will be without any limits under the automatic route, said the RBI notification.
KEY INDIAN OIL & GAS COMPANIES
So far, OVL and OIL were allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas), which are duly approved by the Government of India, without any limits under the automatic route. Road Ahead Oil Ministry’s PPAC forecasts fuel consumption at 155.63 MT. Demand for diesel, which accounts for 45 per cent of the fuel consumption in India, is projected to grow by 8.3 per cent to 70.1 MT (It was previously projected to grow by 5.9 per cent). PPAC projects a 5.5 per cent growth in petrol demand (at 15.82 MT). Furthermore, India’s natural gas demand is likely to more than double to 473 million standard cubic meters per day by 2016-17 with most of the additional demand coming from power plants,according to Oil Ministry’s projections for the 12th FiveYear Plan (2012-13 to 2016-17). Moreover, Business Monitor International (BMI) forecasts that India will account for 12.4 per cent of Asia Pacific regional oil demand by 2015, while satisfying 11.2 per cent of the supply. India Newsletter | 13
India’s Double Taxation Avoidance Agreements (DTAAs) By Dezan Shira
ouble taxation avoidance agreements (DTAs or DTAAs) aim to prevent the
same income from being taxed by two or more states, while also eliminating tax evasion and encouraging cross-border trade efficiency. DTAs prevent double taxation by allowing the tax paid in one of the two countries to be offset against tax payable in
the other country, and/or by providing exemptions or reduced tax rates for specific income types such as interest, royalties, dividends. In India, withholding tax on dividends is 0% per the Tax Act, but DTAs serve to reduce interest and royalty rates. The table below reflects India’s double taxation avoidance agreements (DTAAs) in effect. In cer
tain cases (such as in the case with states from the former Soviet Union), rates represent treaties between groups of countries. In cases in which a treaty does not specify a maximum withholding tax rate, or the maximum rate specified in a treaty is higher than the domestic withholding tax rate, the domestic rate applies.
This article was extracted from Dezan Shira & Associates’s publication entitled “India Briefing”. For further corporate assistance, consider contating 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 Mr. Olaf Griease under email@example.com or visit www.dezshira.com
14 | India Newsletter
We want to reach out to the Indian language market Interview with Nikhil Ganju, Country Manager,TripAdvisor India
improved user experience. This enhancement allows users to see hotel pricing options and availability from booking partners on a single page. It has now been released across the world and in mobile apps. We are witnessing higher conversion rates after the launch of this feature.The meta display was launched in May in India. Meta search has made the whole process transparent. It is much more powerful from the perspective of our partners.
S-based TripAdvisor, the leading online platform for travel reviews, recently acquired GateGuru, a mobile application for flight and airport information.With nearly 3 million users in India, the online travel review firm is looking to tap the potential of the online hotel booking space. The company recently rolled out a feature called meta display, that has hotel price comparison on a single page. Nikhil Ganju, Country Manager, TripAdvisor India, speaks about the companyâ€™s plans and strategy post the recent acquisitions. Excerpts from the interview: Q: How important will the recent acquisition of GateGuru be from the India perspective? A: Most of the recent acquisitions have been in the mobile space. In March, TripAdvisor bought Beeem Inc, which developed Tiny Post, a photo captioning app. In April, it acquired New York-based Jetsetter.com, a private sale site for hotel bookings. Our focus will continue to be in the mobile and social media space. The GateGuru app has robust information on airports across the world, including India.The airport layout, amenities and outlets in the airport are all in the app. It is a review based app that also includes information on flight products.These are the reasons why it fits in well with the India market. Q: How has the meta display product helped you? A: Considering the fact that we are a travel planning site and not an online travel portal, the vast majority of our traffic is for hotel reviews. So thatâ€™s the segment which is very significant for us.We recently also rolled out the meta display feature. It has dramatically
Q: How do you ensure the accuracy of the content?
Online hotel booking from India is still very low, and we see a great opportunity of growth there. As that improves, monetisation will also go up.The banner ad rate in India is very low compared to other countries and traditional forms of advertising are still strong in India. Q: What has the mobile app space done for TripAdvisor?
A: We get more than 60 reviews and contributions every minute across the world. The scale ensures accuracy. Two years ago, we had 25 contributions every minute. We have a content monitoring international team that focuses on the quality of content coming in.
A: Mobile traffic worldwide for TripAdvisor
Apart from that, we have sophisticated automated filters for every review.The moment any review looks suspicious, the team looks into it.
bile segment and the rate of growth is twice
Q: How important is the India market and what are the plans? In terms of traffic, TripAdvisor India has grown more than 100 per cent over the last one year. The Internet user base in India is about 150 million. It is not surprising that the traffic is high from India.
was 45 million users every month on an average last year, which is 15 per cent of our overall traffic. About 15-20 per cent of the total traffic from India comes from the mo-
than that of desktop traffic. So far, we have witnessed 32 million downloads of our TripAdvisor mobile app. In fact, every minute 25-30 apps are being downloaded. On the mobile space, much of the traffic comes for reviews on restaurants. But on the desktop, the traffic is more for hotels.
TripAdvisor offers its content in 21 languages. We are right now present in English in India. But we are considering launching the web site in other Indian languages.We want to reach out to the Indian language market. Q:What is your revenue model in India? A: A part of our revenue comes from business listings, which is a subscription-based annual fee, targeted for hotels. The hotels pay us a fee to put up their contact details. While the user will have a choice to book it from an OTA, the hotel would also want to seize that opportunity.Then, there is the pay per click and banner advertisements. About 80 per cent of our revenue comes from pay per click and 10 per cent comes from business listings and another 10 per cent from banner advertisements. India Newsletter | 15
Trade Shows & Events
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 firstname.lastname@example.org to get more information about possible assistance/subsidies. 16 | India Newsletter
STUDENTS WELFARE OFFICER Mr. Pawan T. Badhe, Third Secretary in this Embassy has been designated as Officer to look after welfare of Indian Students in Austria and Montenegro. His contact details are: Tel: +43-1-505866614 Email: email@example.com
LIBRARY The EMBASSYâ€™S library is opened mondays and wednesdays from 11am to 1pm
without appointment. For scheduling an appointment outside the opening hours, please contact the information assistant under firstname.lastname@example.org or 01 505 8666 33
BUSINESS CENTRE The EMBASSYâ€™S Business Centre is opened DAILY from 11am to 1pm without appointment. For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below. Marketing Officer: email@example.com or 01 505 8666 30 Marketing Assistant: firstname.lastname@example.org or 01 505 8666 31
India Newsletter | 17
Experience India Series
ttempt to resist shopping in India and you will soon realise that it is a vain attempt.Half the fun when buying goods in the bazaars is the bargaining, and you can always check for reasonable prices at state-run emporiums. Below are some of the best buys, either for the souvenir hunter or the connoisseur. The Indian craftsman has been perfecting his art for centuries, passing down traditions and techniques from generation to generation. Each region has its own specialities, each town its own local craftsmen, its own particular skills. The results is a consummate blend of ancient skills and modern aesthetics. Silks, spices, jewellery and many other Indian products have long been famous and widely desired, and merchants have travelled thousands of miles, willingly enduring the hardships and privations of long journey in order to make their purchases.
aquamarine. Hyderabad is one of the world’s leading centres for pearls.Many gems famous for their healing poers can be purchased in India.
HANDICRAFTS AND LEATHER
bronzes, brasswork (often inlaid with sil-
ndian silks, cottons, and wools rank amongst the best in the world. Of the silks the brocades from Varanasi are among the most famous variety; other major centres include Patna, Murshidabad,Surat and Kanchipuram. Rajasthan cotton with its famous “tie and die” design is usually brillantly colourful, while Madras cotton is known for its attractive “bleeding” effect after a few washes. Throughout the country may be found the “himroo” cloth, a mixture of silk and cotton, often decorated with patterns. Kashmir sells beautiful woollens particularly shawls.
ver), canework and pottery. Papier Mache
Once again, each area will have its own specialty; the vast range includes fine
is a characteristic Kashmir product, some decorated with gold leaf. Marble and alabaster inlay work, such as chess sets and ornamental plates, are a specialty of Agra. Good leatherwork buys includes open India sandals and slippers.Sandalwood carvings from Karnataka, rosewood from Kerala and Madras, Indian walnut from Kashmir. These are often exquisite and make excellent presents.
CARPETS India has one of the world’s largest carpet industries, and many examples of her ancient and beautiful craft can be seen in museums throughout the world. Kashmir has a long history of carpet making, influenced by the Persians. Still Each region has its own specialty; such as the distinctive, bright coloured Tibetan rugs, available mainly in Darjeeling. FURNITURE Indian Furniture is made by woodcarvers who follow the Rajastahni and Gujarati woodcraft with its intricate work and antique look. Painted Kishangarh furniture is an art itself and woodwork from Sharanpur , Ramgarh and Shekavati adorn living rooms of India lovers worldwide.
JEWELLERY Meenakari, or studded Kundan is traditionally heavy and stunningly elaborate based on the Mughal or Rajput designs. Heavy silver jewellery from Gujarat is world-famous. Gems can be bought and mounted. Apart from diamonds, other stones include lapis lazuli, Indian star rubies, star sapphires, moonstones and 18 | India Newsletter
NOTE It is forbidden to export antiques and art objects over 100 years old, animal skins or objects made from skins.
FOR MORE INFORMATION ON INDIA TOURISM:
India Tourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 Fax: +49 (69) 242949-77 www.india-tourism.com email@example.com
India Newsletter | 19
India in Austria
INDIAN MOVIE EVENING: Band Baaja Baaraat – Die Hochzeitspläner Friday, July 26th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Comedy/Romance Directed by: Maneesh Sharma Starring: Ranveer Singh, Anushka Sharma and Manu Rishi Chadha Released: 2010 Duration: 140 Minutes Language: Hindi Subtitles: German Image Quality: Standard
Synopsis: After Delhi-based slacker-collegian, Bittoo Sharma’s father asks him to return home to work in the sugar-cane fields, he refuses and decides to partner with career-minded wedding planner, Janakpuri-based Shruti Kakkar. She refuses to have to do anything with him, but after he impresses her, she partners with him, they set up ‘Shaadi Mubarak’ and begin organizing small wedding celebrations with struggling restaurateur and florist, Rajinder Singh and Maqbool respectfully.The duo hit big time after they organize a wedding party at Sainik Farm and begin to have dreams of bettering their lives. It is then Shruti realizes that she has fallen in love with Bittoo, and is embittered when he does not reciprocate.This bitterness gets worse, and the duo split up, with Bittoo opening ‘Happy Weddings’ - resulting in a downward spiral of their performance. With creditors hovering over them, no money coming in, Shruti finally gives way to her parents’ wishes and agrees to get married to Dubai-based Chetan.
BOLLYWOOD MOVIES IN AUSTRIA
At the UCI KINOWELT Millennium City (Wehlistr. 66,1200 Vienna)
For more information, showtimes, reservations and tickets:
www.uci-kinowelt.at/ Millennium_City CURRENTLY SHOWING111
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India in Austria
EXHIBITION: â€œIM BANN INDIENSâ€?
Started July 6th, 18:00 | Atelier Bilder, Rahmen, Spiegel (Zimmermanngasse 8, 1090 Wien) If you are looking for astonishing Indian Art in Austria then come to the inaugural exhibition of the Austrian-Indian Society of Arts and Cultural Exchange on the 6th of July. The Society aims to promote Indian Art, Culture and Artists in Austria and help to strengthen bonds between the Austrian public and Indian Art and Culture. India has an amazingly rich cultural heritage and up to this day creates fine arts based on its amazing diversity of
talents and cultural background. Recently the society has launched their first artist Sisir Datta (a well renowned and awarded Indian artist based in Delhi) and Abhishek Hajela (freelance photographer who recently won Nikon World Photography Award in the Emerging Talent Category). You will see pieces of both artists at the exhibition alongside artworks of the Vienna based artist and designer Sonal Nathwani. Expect an
amazing evening with Indian culture, indulge in Indian cuisine delights and listen to amazing classical pieces. A sneak preview of some of the masterpieces can be viewed under the society website - www. jpdgallery.com. They are also constantly looking to get in touch with promising Artists and welcome collaborations with different Indian associations, individuals and institutions.
India Newsletter | 21
India in Austria
Conference: Yoga in Transformation: Historical and Contemporary Perspectives on a Global Phenomenon September 19â€“21, 2013 | University of Vienna, Austria
22 | India Newsletter