INDIA NEWSLETTER Indian Embassy, Vienna
Published by the Embassy of India, Vienna Year 5 • Issue 56 • August 2015
MAKE IN INDIA FOOD PROCESSING India Newsletter • 1
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The Digital India programme is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy Digital Infrastructure as a Core Utility to Every Citizen
Governance and Services on Demand
Digital Empowerment of Citizens
www.digitalindia.gov.in 2 • India Newsletter
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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
www.makeinindia.com India Newsletter • 3
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NEWS FLASHES
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Foxconn, the world’s largest contract-manufacturing firm for consumer electronics and manufacturer for Apple products, has signed a Memorandum of Understanding (MoU) with Maharashtra state government to invest US$ 5 billion over the next three years for setting up a manufacturing unit between Mumbai and Pune..
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India is expecting to increase its exports of rice bran oil to 10,000 tonnes or by five times over exports last year, as the government has allowed bulk export of rice bran oil.
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Various Central Government schemes such as 100 Smart Cities, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 482 cities and towns, and Heritage City Development and Augmentation Yojana (HRIDAY), launched to improve infrastructure in urban areas, will cover almost 75 per cent of India’s urban population.
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Confederation of Indian Industry (CII), an association of Indian businesses, has planned to set up a centre of excellence to help create a conducive environment for startups in smaller towns across India. The centre 4 • India Newsletter
will help entrepreneurs to create business plans, tools and applications for rural markets.
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The Ministry of Road Transport and Highways has undertaken development of about 7,000 km of national highways under Bharatmala Pariyojana at an estimated cost of Rs 80,000 crore (US$ 12.8 billion) in consultation with state governments.
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India is one of the world’s largest producers and exporters of hand-made carpets in terms of value as well as volume. 90 per cent of the carpets manufactured in India are exported..
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The Government of India plans to spend Rs 50,000 crore (US$ 8 billion) to develop 100 smart cities in the country, with each selected city to receive assistance of Rs 100 crore (US$ 16 million) per year for five years.
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More than 2,500 Indian firms in the engineering sector have ISO 9000 accreditation.
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The domestic passenger car sales in India registered a growth of 18.14 per cent in April 2015, the fastest in 30 months, boosted by improved consumer sentiment.
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The Reserve Bank of India (RBI) purchased a net US$ 7.67 billion from the foreign exchange market in March 2015, according to the bank data. RBI has bought a total of US$ 54.84 billion in 201415, the highest net dollar purchase in a single fiscal since 2007-08.
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India has become the largest market for elearning 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..
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The number of private equity (PE) deals during April 2015 increased to US$ 1.9 billion across 89 transactions from US$ 676 million across 52 in the same month a year ago, an increase of 71 per cent, driven by the ecommerce sector, according to Grant Thornton India Llp.
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A total of 94,998 tourist arrived on e-Tourist Visa during January- April 2015, as compared to 8,008 on the earlier Tourist Visa on Arrival (TVoA) scheme during January-April 2014, registering a growth of 1086.3 per cent.
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NEWS ARTICLES India received $24 billion from EU in FDI over last 3 years Over the past three years, India has received US$ 24.91 billion in Foreign Direct Investment (FDI) from the European Union (EU). India received US$ 6.23 billion in FDI equity inflows from EU in FY 2012-13 which increased to US$ 9.06 billion in FY 2013-14. The FDI inflow was US$ 8.20 billion in FY 2014-15. In FY 2015-16, the FDI equity inflows from EU in first two months of current fiscal were US$ 1.39 billion, setting up a faster pace of inflows this year to surpass last year. The EU has been India’s largest trading partner and the two-way trade is likely to increase significantly with the success of Free Trade Agreement, officially called the Broadbased Investment and Trade Agreement (BTIA).
CLSA raises its overweight view on India Leading Asian equity brokerage and investment group CLSA has raised its already substantial ‘overweight’ view for India in the Asia Pacific exJapan relative-return portfolio, by shaving the overweight for China by 2 percentage points. Writing in his closely tracked newsletter Greed and Fear, CLSA’s managing director Christopher Wood said on Thursday that the move has been prompted by a major positive—that India’s minister of state for finance Jayant Sinha and financial services secretary Hasmukh Adhia have provided a more detailed roadmap for stateowned banks. CLSA pointed to the government’s plan to inject $11 billion in stateowned banks over the next four years, while expecting them to raise another $17 billion through the public markets. “There was also confirmation
that the government is about to announce new heads for five stateowned banks, some of which have been leaderless for almost a year, as well as more discussion on the initiatives underway to improve asset quality in public sector banks,” added Wood. Wood said though the Reserve Bank of India (RBI) didn’t cut rates this week, it should ensure the rupee will remain relatively stable against the dollar. One important feature of both India and China’s year-to-date outperformance against the regional benchmark has been currency stability, he said. Wood said the longer RBI remains conservative, the more rapidly interest rates will fall later. “Greed and Fear continues to assume a minimum of another 125bp (basis points) of rate cuts between now and the end of 2016. Greed and Fear would also continue to highlight 10-year rupeedenominated government bonds as a very attractive investment,” Wood said in the newsletter.
At average 28.5 yrs, Bengaluru has youngest entrepreneurs in world The city has the youngest startup ecosystem in the world, with the average founder’s age at 28.5 years, according to a survey of the top 20 global startup ecosystems. In Silicon Valley, the world’s largest startup hub, the average age is eight years older than in Bengaluru at 36.2 years. Kuala Lumpur comes closest to Bengaluru, at 30.5 years, followed by Sao Paulo, 31.7 years, and Berlin, 31.8%. Sydney has the highest average age among startup founders, at 40.3 years, according to The Startup Ecosystem report by San Francisco-based Compass, a research firm that provides global
benchmarking tools. India has one of the youngest populations in the world, which is now reflecting in entrepreneurship. Mohan Kumar, executive director at venture capital firm Norwest Venture Partners India, said it was also a reflection of the startups emerging these days being based on new business models like ondemand, internet and social. “This industry itself is only five years old and a person with 15 or more years of experience or knowledge will not add value. Youngsters will understand them better. Venture capitalists also prefer younger entrepreneurs, those who are around 30 years of age,” he said. Entrepreneurial drive: Youths chuck jobs to become cabbies Compass also finds that Bengaluru moved up four positions to rank 15 in 2015 among the top 20 startup ecosystems, advancing from rank 19 in the 2012 ranking. It was amongst those who made the biggest leaps. Others who made similar leaps were New York, Austin, Singapore, Berlin and Chicago. Silicon Valley retains the top spot in the survey that looks at performance, funding, market reach, talent, and startup experience. There were only three cities Bengaluru, Singapore, and Sydney from Asia Pacific in the top 20. Many of the cities in the top 20 were US ones. New Delhi was not in the top 20, but was among the runners up, together with Kuala Lumpur, Hong Kong, and Jakarta in Asia Pacific. Bengaluru saw the most growth in seed fund rounds over the last three years, with an annual average growth of 53%. It was followed by Sydney (33%) and Austin (30%). According to the report, which was compiled with the help of global startup database CrunchBase, Bengaluru has done well in the funding parameter with a rank of 6, just below Chicago. India Newsletter • 5
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CII to set up a centre to help start-ups in smaller towns Industry lobby group Confederation of Indian Industry (CII) plans to set up a centre of excellance to help build start-ups in smaller towns across India. The centre will aid entrepreneurs to create business plans, tools and applications for rural areas. “CII has taken this as a major task and we are in the final stages of setting up the centre. We will house this centre at an appropriate city,” said S Gopalakrishnan (Kris), Past President, CII and Chairman, India Innovation Summit & Co-Founder, Infosys. CII will provide the needed help in terms of training and support where required, particularly in places like Hubballi, Dharwad and Kalburagi, to name but a few, he said in a statement. CII is holding its innovation summit in Bengaluru, which was inaugurated by Karnataka chief minister Siddaramaiah. Karnataka, Siddaramaiah said, had been in the forefront of Industrial Development and catalysing innovation in the country’s growth story. “Our effort to promote innovation has helped in the establishment of a number of startups in the state. Today, Karnataka is at the fore-front in attracting startups” he added.
After Digital India, it’s time for maritime India Going beyond manufacturing and Digital India, the National Democratic Alliance government is now going to seek big-ticket investments in the maritime sector. It is working on a slew of projects to attract domestic and foreign investments in the ports and shipping sectors. The Union shipping ministry has asked all its wings to come up with project lists in their respective areas. The potential projects will be showcased overseas through road shows followed by a three-day investment summit ‘Maritime India Summit 2016’ being planned in Mumbai in February 6 • India Newsletter
2016. Prime Minister Narendra Modi is likely to inaugurate the summit. “This is for the first time; we are organising road shows in India as well as overseas to attract investor community in the summit. The maritime sector has immense investment potential,” said a senior government official. The ministry of shipping has asked the Inland Waterways Authority, Shipping Corporation of India and all ports to prepare a list of investable projects in their areas. It is expected that over 100 detailed projects would be offered, where there are investment opportunities such as port-led development under the Sagarmala project and ship building under the ‘Make in India’ scheme. Besides, investment is likely to be sought in inland waterways, coastal and cruise shipping, specialised cargo handling and port mechanisation, etc. The 12th Five Year Plan has estimated a total investment of Rs 1,80,626 crore ($30.05 billion) in the ports sector. India has 12 major and 187 notified non-majors with ports on the east and west coast of the country. “We are expecting participation from state maritime boards, global participation, maritime fraternity in India, etc. We are expecting over 2,000 delegates in the summit. We would also have one partner country for the summit,” said another official. He further added that the ministry is working with all the industry chambers to reach out to the wider audience. Senior official maintained that the maritime sector is on the top most agenda of the government to promote bilateral ties with other countries. India’s assistance to Iran to develop the Chabahar port, coastal shipping agreement with Bangladesh, signing of a pact with Korea in maritime transport and initiating container service from India to Myanmar are some of developments in this respect.
Manufacturing growth hits 6-month high on export orders Manufacturing grew at a six-month high in July on the back of a rise in export orders, a latest survey has showed. The Nikkei India Manufacturing PMI rose to 52.7 in July from 51.3 in June. A figure below represents contraction. Export orders grew at their fastest pace in five months. “Growth in India’s manufacturing economy rebounded in July, with PMI rising since the prior month. This reflects stronger increases of new orders and output. Furthermore, the sector was boosted by the quickest expansion in export orders since February,” said Pollyanna De Lima, economist at Markit, which compiles the data. The data comes a day ahead of the RBI’s monetary policy review. In its last policy review on June 2, the central bank had cut its repo, or key lending rate by 0.25 percentage points for the third time this year, to spur investment and growth. Despite the increase, manufacturers continued to cut down on workforce in July. Around 96% of respondents reported no change in staff strength from the levels in the prior month, according to the survey. “Although the latest data suggest that the manufacturing upturn gained traction, worries regarding the labour market persist,” Lima said, adding, “continued job shedding highlights the concern felt by businesses towards the outlook, with firms failing to increase workforce numbers to any great extent since early 2014”. On prices, the survey said the rate of inflation was marginal.
Indian steel consumption likely to grow 7% on higher economic activity: E&Y report India’s steel consumption is expected to grow by 7 per cent in FY16 on the back of higher economic
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activity against a 2 per cent growth in consumption last year, according to E&Y’s ‘Global Steel 2015-16’, a report that analyses the global steel sector. At the same time steel supply is expected to increase by around 10 per cent in FY16, though demand is not expected to grow in tandem. As a result, capacity utilization may fall below 78 per cent, the report said. To add to steel industry woes, the trend of rising steel imports into India is expected to continue in FY16 adding to the overall situation where imports had shown an increase of 71 per cent year on year in FY15. However, the quantum of imports may vary depending upon whether India raises its import duty on steel products. In the 12th Five Year Plan, the Indian government intends to invest about $ 1 trillion in the infrastructure sector. This increased focus on infrastructure development bodes well for incremental steel demand in India, the E&Y report said. Steelmakers around the world will have to find the right balance between globalisation and customisation, the report said. Anjani Agarwal, E&Y’s Global Steel Leader said: “Globalisation is forcing change on steelmaking companies worldwide, amidst their need to customise and they must achieve the fine balance to survive and succeed.” For this the sector will have to undergo significant change to create and retain value and turn profitable. It noted four key areas of transformation for steel companies around the world --Rationalise excess capacity, Increase market and product concentration, Boost Market Competitiveness and Embrace Digital. The latter would be in the form of predictive analytics, digital supply chain and convergence of IT and operational technology to develop differentiation and improve decision making and resilience to risk. The report also said that given price volatility in raw materials, steelmakers are changing their strategies around fixing steel product prices. “Most companies
have been reviewing product prices either on monthly or fortnightly basis but now companies are thinking of reviewing it daily. For instance, JSW Steel in India has started a daily review of product prices for long products. The company believes that in the current dynamic market, it does not make sense to review prices once and hold them for a certain period of time,” it said.
India leads the global confidence index: Nielsen India continues to lead the global confidence index for the quarter with a one point increase from last quarter to 131 followed by Philippines (122) and Indonesia (120). The consumer confidence in urban India reflects levels last achieved in the first quarter of 2011, which, according to Nielsen, has been propelled by a positive growth in consumer spending on consumer packaged goods and a gradual decrease in job security concerns. Half of respondents (50%) polled that they feel India is still in economic recession, up six points from last quarter (44% in Q1 2015). However, three in five (61%) indicate that India will be out of the recession over the next 12 months. The Nielsen consumer confidence index (CCI) measures perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. In the latest online survey in May, over four in five (81%) urban Indian respondents indicated the highest level of optimism globally on job prospects in the next 12 months. “The optimistic trend in consumer sentiment continues, and this quarter reflects the highest levels since 2011. While this is positive new, discretionary spending levels are yet to see a huge transformation,” said Piyush Mathur, president, Nielsen India Region.
“There are signs of a positive growth in consumer spending on consumer packaged goods, indicated by a slight increase in growth compared to the previous quarters. There has also been a gradual decrease in concerns on job security over the last few quarters along with interest rate cuts, and an increase in intention for home loans — thus enhancing the sentiment on the economy and portraying an optimistic picture for the future,” said Mathur.
2015 likely to be big year for Indian M&A deals as 11 per cent growth in 1H2015 indicates greater deal momentum Indian M&A space saw deals worth of US$ 19.2 billion by way of 178 transactions take place as compared to 156 deals worth of US$ 17.2 billion in the same period last year, witnessing a growth of 11.4 per cent. Outbound M&A also increased as Indian companies spend US$ 925 million abroad since the beginning of 2015, a 38 per cent growth compared with US$ 650 million in the first half of 2014.The momentum is likely to continue in the latter half of the year as a result of government’s actions on key policy issues and reforms like the Companies Act, Institutional Trading Platform (ITP)for tech start-ups and unblocking of stalled projects – all of which have improved the ‘ease of doing business’.
India launches mission to skill 400 million by 2022 Prime Minister Narendra Modi launched the National Skill Development Mission to train 400 million Indians by 2022. “If China is known as world’s manufacturing factory, India can be world’s human resource capital,” Modi told a packed audience in New Delhi. The prime minister was referring to 65 per cent of India’s population which is below the age of 35 years. Modi said Indians should be ready to replace the diminishing India Newsletter • 7
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workforce in other countries. “We have to scientifically map the world’s manpower requirement and prepare accordingly,” he added. The government also launched the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), skill loan scheme and the national policy for skill development and entrepreneurship 2015 on the World Youth Skill Day. Under the skill loan scheme, youth can avail credit between Rs 5,000 and Rs 150,000 to attend skill-related training programme. Modi stressed the need for more ITI institutes in the country. The government estimates an incremental requirement of 110 million additional skilled personnel across 24 sectors by 2022. The demand will be highest in real estate, transport, retail and beauty and wellness sectors. But the agricultural sector will see a negative growth with 24.8 million people moving to other jobs. The Bharatiya Janata Party (BJP)led National Democratic Alliance (NDA) has announced nearly a dozen schemes, including Digital India, Make in India, Jan Dhan and Swachh Bharat since it took over in May last year. Speaking at the launch, Finance Minister Arun Jaitley said Indian economy was looking up and there would be a huge manpower requirement in services and manufacturing sectors. “With economy recovering and picking up, with wages in our other competitive economies increasing hugely compared to the Indian economy, our opportunities are great. And when Make in India and Skilling India will converge, no doubt we would have a great future ahead of us,” Jaitley said. Besides Jaitley and other Cabinet ministers, chief ministers from various BJP or its alliance-run states were also present at the occasion. The industry also wasted no time to announce its support and participation. While the NIIT Limited committed to train 10 million young Indians across 16 sectors over the next five years, Tata Housing announced that it 8 • India Newsletter
would provide vocational skill development training to 100,000 socio-economically backward youth across the nation by 2024. “Around 50 per cent of our population is below 27 years. We are talking about 700 million such youngsters by 2020. This is the first time in the history of humankind such a large population is actively seeking livelihood and employment opportunities. Skill India gives youngsters the most important aspect for their life, employability and respect in society. Skill India will get India the most important asset of this century manpower,” Narayanan Ramaswamy, partner and head of education and skill development, KPMG in India said in a statement.
Volvo to export buses made in India to Europe Global commercial vehicles manufacturer Volvo from Sweden plans to export buses manufactured in India to developed markets in Europe, starting this year. At present, inter-city coaches and city buses manufactured in India are exported to South Asia and South Africa. The company’s Asia Leverage strategy of using manufacturing facilities in India to cater to demand from global markets coincides with Indian Government’s ‘Make in India’ initiative and also helps the company to overcome cyclical nature of domestic market demands, as per Volvo Buses segment President Mr. Hakan Agnevall. The company has invested an additional Rs 400 crore (US$ 63 million) since 2011 to strengthen various manufacturing procedures and has currently capacity to manufacture 1,500 buses in Hoskote in the state of Karnataka.
Government of India to invest 6 lakh crore in highway and shipping sectors creating five million jobs Mr Nitin Gadkari, Union Minister of Road Transport & Highways and Shipping, said that Government of
India is committed to providing jobs to five million people in highways and shipping sector which are planned with an investment of Rs 600,000 crore (US$ 94.5 billion). Out of total investment planned, Rs500,000 crore (US$ 74.78 billion) will be invested in the roads and highways sector, while rest will be invested in shipping. Besides, in order to boost connectivity between India and Sri Lanka, a project worth Rs 22,000 crore (US$ 3.5 billion) is on the cards , with Asian Development Bank expressing willingness to fund the project involving combination of a bridge and underwater tunnel to allow uninterrupted movement of ships through a narrow sea corridor of 22 km. Once the project is completed, the Trans Asia Road and transport network could be extended to Sri Lanka. India may also enter into a motor pact with Myanmar and Thailand by year-end, on the lines of the BBIN (Bangladesh, Bhutan, India and Nepal) signed during Mr Gadkari’s visit to Bhutan in June 2015.
Tourism has the potential to become backbone of the Indian economy: Dr. Mahesh Sharma The Minister of State for Tourism (Independent Charge), Culture (Independent Charge) and Civil Aviation, Dr. Mahesh Sharma has said that tourism has the potential to become the back bone of the economy of the country since it is a means to earn foreign exchange, generate employment and create women empowerment. Speaking at the interactive session and the press conference of Indian Association of Tour Operators (IATO) in New Delhi today Dr. Mahesh Sharma said that the world has became a global village and tourism is a powerful tool to connect our country to the rest of the world. Appreciating the role played by private stakeholders like IATO in promoting tourism in the country, Dr. Mahesh Sharma said that the participation of the private sector
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should be explored to the maximum possible extent to promote tourism and to meet tourism related targets. The Prime Minister, Shri Narendra Modi has been playing the role of Brand Ambassador and promoting India before the world. The Foreign Tourist Arrivals(FTAs) from these countries visited by the Prime Minister have shown a substantial increase , Dr Mahesh Sharma disclosed. Highlighting the value of Indian Handicrafts as part of the Indian culture , the Minister said that promotion of handicrafts must be made an essential part of tourism promotion. Secretary, Ministry of Tourism, Dr. Lalit Panwar said that the measures like e-tourist visa taken up by the government recently have shown tremendous results. He requested IATO members to give it wide publicity and encourage tourists to make use of this facility. The President of IATO, Mr. Subhash Goyal disclosed the 31st annual convention of IATO will be held in Indore from 20th to 23rd August, 2015, which will also help to give fillip to tourism in the state.
Russia wants to make India a global hub for submarine upgrade, maintenance and repair Russia says that it wants to make India a global hub for the upgrade, maintenance and repair of conventional submarines and its leading shipyard is in final talks to select an Indian joint venture partner for a mega project to set up facilities here. With contracts worth several thousand crores in the offing for the upgrade of Russian origin diesel electric submarines — several from the Indian Navy itself — the joint
venture has the potential of making the selected Indian shipyard a serious player in the international market. Officials from the state-run Zvyozdochka shipyard told ET that a memorandum of understanding could be signed within a month as it is in final talks with an Indian partner for the project. Russian engineers have already visited the Indian yard and advised it on changes to be made as well as investments needed to execute the project. “We are in the process of negotiating with an Indian shipyard and if these negotiations are successful, it could become our partner for future tasks of modernising Kilo class submarines. Not just for India but for third nations as well,” Evgeny V Shustikov, Deputy Director General of Zvyozdochka said. While the Russian side is reluctant to share details, it is learnt that several rounds of talks have taken place between Zvyozdochka and the Gujarat-based Pipavav Shipyard that has recently been bought over by Anil Ambani’s Reliance. A final round of talks are expected to take place in August. Explaining the project, Shustikov says that the Russian side is looking at a joint venture model with partners in India who can execute work orders from the region. India alone is looking at the imminent second life extension of at least four Kilo class submarines. This would give the fleet almost 15 more years of service life. “Our estimate is that we will be loaded with work for at least 15-20 years,” Shustikov says. Other nations that operate Kilos in the region include Iran with three submarines of the same class and Nigeria with six. In addition, Russia has recently sold six upgraded Kilo class submarines to Vietnam that
will require overhauling and repairs in the coming years and is pursuing several other orders in the region. “India could become a second center in the world for Kilo class upgrade. For certain nations it is easier to send the submarine for repair to India than to any other place. It is also a good chance for India to master the repair and upgrade of this class of vessel,” Andrey Baranov, deputy CEO Rubin design bureau that has designed the Kilo class, said.
Airtel becomes third largest mobile operator globally Bharati Airtel has moved up a position in global rankings to become the third largest mobile operator in the world, in terms of subscribers, the company said in a press release. It now has 303 million customers across 20 countries. According to data posted by the World Cellular Information Service (WCIS), the top five mobile operators in terms of subscribers (in millions), are China Mobile (626.27), Vodafone Group (403.08), Bharti Airtel (303.10), China Unicom (299.09) and America Movil (274.14). Sunil Bharti Mittal, chairman of Bharti Airtel, said , “This is a major landmark in the journey of Airtel and underlines the strength of our business model and our brand that is loved by customers across 20 countries. I want to thank our employees and our business partners for supporting us through this exciting journey and with the mobile internet play about to happen in the developing world, things will only get brighter from here on.” Airtel has also achieved the largest rural mobile customer base in India with nearly 100 million mobile customers, the release said. India Newsletter • 9
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MAKE IN INDIA Summary ■■ 192 Million Hectares of gross cropped area. ■■ 89.9 Million Hectares of net irrigated area. ■■ 127 agro-climactic zones. ■■ 42 mega food parks being set up with an allocated investment of INR 98 Billion.
Reasons to Invest ■■ A rich agriculture resource base – India was ranked No. 1 in the world in 2012 in the production of bananas, mangoes, papayas, chickpea, ginger, okra, whole buffalo, goat milk and buffalo meat. ■■ India ranks second in the world in the production of sugarcane, rice, potatoes, wheat, garlic, groundnut (with shells), dry onion, green pea, pumpkin, gourds, cauliflower, tea, tomatoes, lentils, wheat and cow milk. ■■ The country’s gross cropped area amounts to199 Million hectares, with a cropping intensity of 140%. The net irrigated area is 89.9 Million hectares. ■■ A total of 127 agro-climatic zones have been identified in India. ■■ Strategic geographic location and proximity to food-importing nations makes India favourable for the export of processed foods. ■■ An extensive network of food processing training, academic and research institutes spans the country. ■■ 42 mega food parks are being set up in public-private partnership at an investment of INR 98 Billion rupees. The parks have around 1200 developed plots with basic infrastructure enabled that entrepreneurs can lease for the setting up of food processing and ancillary units. ■■ The cost of skilled manpower is relatively low as compared to other countries. 10 • India Newsletter
■■ Attractive fiscal incentives have been instated by central and state governments and these include capital subsidies, tax rebates, depreciation benefits, as well as reduced custom and excise duties for processed food and machinery. ■■ The major global players in the food domain are already present in India. ■■ 121 cold chain projects are being set up to develop supply c hain infrastructure.
Statistics ■■ India’s food processing sector ranks fifth in the world in exports, production and consumption. ■■ Major parts of the food processing sector are milled grain, sugar, edible oils, beverages and dairy products. ■■ The contribution of the food processing industry to the gross domestic product at 2004-05 prices in 2012-13 amounts to INR 845.22 Billion. India’s food processing industry has grown annually at 8.4% for the last 5 years, up to 2012-13. ■■ The value addition of the food processing sector as a share of GDP
manufacturing was 9.8% in 2012-13. ■■ Investment in registered food processing sector had grown by 20.1% at the end of 2012. ■■ The number of registered processing factories has increased from 35,838 in 2010-11 to 36,881 in 2011-12, marking a growth rate of 2.9%. ■■ The industry is also one of the largest employment creators, with growth in direct employment in the organised food processing sector standing a t 6.05% between 2010-11 and 2011-12. ■■ Food is the biggest expense for an urban Indian household. About 38.6% of the total consumption expenditure of households was spent on food in 2011-12. ■■ The total household expenditure on the purchase of food items in 2012-13 was INR 11 Trillion. An average household in India spent INR 41,856 on food.
Growth Drivers ■■ Liberalization and the growth of organized retail has made the Indian market more attractive for global
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players. With a large agricultural sector, abundant livestock and cost competitiveness, India is fast emerging as a sourcing hub of processed food. ■■ A population of 1.2 Billion people, with the world’s highest youth population – India has 572 Million people under the age of 24. ■■ Rising income levels and a growing middle class. ■■ One-third of the population will be living in urban areas by 2020. ■■ Increasing desire for branded food as well as increased spending power. ■■ Large and distinct consumer brackets to support customised offerings, new categories and brands within each segment. ■■ Consumption in India is driven towards packaged and ready-to-eat foods. ■■ Favourable economic and cultural transformation and a shift in attitudes and lifestyles have consumers experimenting with different cuisine, tastes and new brands. There is an awareness and concern for wellness and health, for high protein, low-fat, wholegrain, organic food. ■■ Processed food exports and related products have been rising steadily, the main destinations being the Middle East and Southeast Asia. ■■ India is a global outsourcing hub, with large retailers sourcing from India owing to abundant raw materials, supply and cost advantages
FDI Policy ■■ 100% FDI is permitted in the automatic route for most food products except for items reserved for micro and small enterprises. ■■ 100% FDI is permitted for alcoholic beverages, with the requirement of an industrial license. ■■ For pickles, mustard oil, groundnut oil and bread – items reserved for the micro small and medium sector, 24% foreign direct investment is allowed under
the automatic route, with the requirement of prior approval from the Foreign Investment Promotion Board for FDI amounting to more than 24%.
Sector Policy ■■ National Food Processing Policy aims to increase the level of food processing from 10% in 2010 to 25% in 2025. ■■ Food Processing is recognized as a priority sector in the new manufacturing policy of 2011. ■■ The National Mission on Food Processing and the Ministry of Food Processing Industries have launched a new centrally sponsored scheme in April 2012, for implementation through state and union territory governments. ■■ The basic objective of the Natonal Mission on Food Processing i s decentralization of the implementation of food processing related schemes for ensuring substantial participation of state and union territory governments.
Financial Support ■■ PROVISIONS OF THE 2O142O15 UNION BUDGET : ■■ INR 500 Million has been allocated for the development of indigenous cattle breeds and an equal amount has been set for starting a blue revolution in inland fisheries. It has also been decided to provide for a lock-in period of eight years for use of assets in instances where deduction under Section 35 A of teh Income Tax Act has been claimed. ■■ Any of the following two deductions can be availed: ■■ Investment allowance (additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1 Billion in plant and machinery acquired and installed between 01.04.2013 and 31.03.2015 provided the aggregate amount of investment in new plant and machinery
during the said period exceeds INR 1 Billion. ■■ In order to provide a further fillip to companies engaged in manufacturing, the said benefit of an additional deduction of 15% of the cost of new plant and machinery exceeding INR 250 Million, acquired and installed during any previous year, until 31.3.2017. ■■ Full exemption from customs duty is being granted to de-oiled soya extract, groundnut oil cake/ cake meal, sunflower oil cake/cake meal, rice bran/rice bran oil cake and palm kernel cake until 31.12.2014. ■■ The government has introduced several schemes to provide financial assistance in the form of grants and subsidies for the setting up and modernization of food processing units, the creation of infrastructure, support for research and development and human resource development as well as other promotional measures to encourage growth within the processed food sector. ■■ THE NATIONAL MISSION ON FOOD PROCESSING : ■■ The centrally sponsored scheme provides the following: ■■ Technology upgradation, establishment and modernization of the food processing industries. ■■ Cold chain, value addition and preservation infrastructure for non-horticultural products. ■■ The setting up, modernization and expansion of abattoirs. ■■ Human resource development. ■■ Promotional activities. ■■ Primary processing and collection centres in rural areas. ■■ The modernisation of meat shops. ■■ Reefer vehicles. ■■ The scheme for infrastructure development includes grant of subsidies for the setting up of mega India Newsletter • 11
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food parks and integrated cold chains. ■■ Project imports for food processing at concessional customs duties. ■■ In order to promote faster establishment of food processing industries in the country, the government provides various tax and other incentives to businesse ■■ INCOME TAX : ■■ Deduction of expenditure: ■■ These incentives are allowed for the following businesses, for the investment made in the previous year and prior to commencement of its operations. ■■ B u s i n e s s e s permitted 100% deductions: ■■ Setting up and operating a cold chain facility. ■■ Setting up and operating warehousing facilities for storage of agricultural produce. ■■ B u s i n e s s e s permitted 150% deduction, provided the taxpayer has commenced business on or after the Ist of April, 2012. ■■ Beekeeping and the production of honey and beeswax. ■■ bThe setting up and operation of a warehousing facility for the storage of sugar. ■■ DEDUCTION OF TAX FROM PROFIT : ■■ This tax incentive is available at the rate of 100% tax exemption for the first 5 years of operations. After 5 years, the rate is 25% of the profits. However, in the case of a company, the rate of tax is 30% of profits, after 5 years of operations. This benefit is available only for ten years provided that such business has commenced with effect from the 1st of April, 2001. ■■ This incentive is provided for new units in the business of processing, 12 • India Newsletter
preservation and packaging of fruits or vegetables, meat and meat products, poultry, marine or dairy products. However, in the case of businesses relating to meat, meat products, poultry, marine products or dairy products, the above incentive is available to only those units who have started their production after the 1st of April, 2009. ■■ SERVICE TAX : ■■ Exempted activities: ■■ Service tax may not be levied on items contained in the negative list. These are services including processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sundrying, fumigating, curing, sorting, grading, cooling or bulk packaging and such operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market. ■■ Exempted categories: ■■ Service tax is exempted in the following instances: ■■ The construction, erection, commissioning or installation of original works pertaining to postharvest storage infrastructure for agricultural produce, including cold storage for such purposes. ■■ Mechanized food grain handling system, machinery or equipment for units processing agricultural produce as foodstuff, excluding alcoholic beverages. ■■ Services provided by goods transport agencies for transportation of fruit, vegetables, eggs, milk, food grains or pulses in a goods carriage. ■■ Services such as loading, unloading, packing, storage or warehousing of agricultural produce. ■■ CUSTOMS DUTY : ■■ Projects for the installation of mechanized food grain handling
systems and pallet racking systems in mandis (agricultural produce markets) and warehouses for food grains and sugar. ■■ Cold storage, cold rooms (including facilities for farm level pre-cooling) or industrial projects for the preservation, storage or processing of agricultural produce, apiaries, horticultural production, dairy, poultry, marine produce and meat. ■■ Consequently, all goods related to food processing, imported as part of the project, irrespective of their tariff classification, would be entitled t o uniform assessment at a concessional customs duty of 5%, plus countervailing duties as applicable. ■■ CENTRAL EXCISE DUTY : ■■ Food Products: ■■ Nil excise duty in milk, milk products, vegetables, nuts & fruits – both fresh and dried. ■■ Against a standard excise duty of 12%, processed fruits and vegetables carries a merit rate of 2% without CENVAT or 6% with CENVAT. ■■ Food Processing Machinery: ■■ All refrigeration machinery and parts used for the installation of cold storage, cold room or refrigerated vehicles for the preservation, storage, transport or processing of agricultural, apiary, horticultural and marine produce as well as dairy and poultry, are exempt from excise duty. ■■ Machinery for pasteurising, drying, evaporating, etc. used in the dairy sector is exempt from excise duty.
Investment Opportunities ■■ Fruits and vegetables: preserved, candied, glazed and crystallized fruits and vegetables, juices, jams, jellies, purees, soups, powders, dehydrated vegetables, flakes, shreds and ready-to-eat curries. ■■ Food preservation by fermentation: wine, beer, vinegar,
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the preparation of yeast, alcoholic beverages. ■■ Beverages: fruit-based, cerealbased. ■■ Dairy: liquid milk, curd, flavoured yoghurt, processed cheese, cottage cheese, swiss cheese, blue cheese, ice cream, milk-based sweets. ■■ Food additives and nutraceuticals. ■■ Confectionery and bakery: cookies and crackers, biscuits, breads, cakes and frozen dough. ■■ Meat and poultry: eggs, egg powder, cut meats, sausages, other value added products. ■■ Fish, seafood and fish processing – processing and freezing units. ■■ Grain processing – oil milling sector, rice, pulse milling and flour milling sectors. ■■ Food preservation and packaging: metal cans, aseptic packs. ■■ Food processing equipment: canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo-processing. ■■ Consumer food: packaged food, aerated soft drinks, packaged drinking water.
■■ Spice pastes. ■■ Supply chain infrastructure – this niche has investment potential in food processing infrastructure, the government’s main focus is on supply chain related infrastructure like cold storage, abattoirs and food parks. ■■ The establishment of food parks – a unique opportunity for entrepreneurs, including foreign investors to enter in the Indian food processing sector.
Foreign Investors ■■ Kraft (USA) ■■ Mars (USA) ■■ Nestle (Switzerland) ■■ McCain (Canada) ■■ Danone (France) ■■ Ferrero (Italy) ■■ Del Monte (USA) ■■ Kagome (Japan) ■■ Kelloggs (USA)
■■ Pepsi (USA) ■■ Unilever (Anglo Dutch) ■■ Perfetti (Italy) ■■ Cargill (USA) ■■ Coca Cola (USA) ■■ Hershey (USA)
Agencies ■■ Ministry of Food Processing Industries ■■ Food Safety and Authority of India
Standards
■■ Agriculture and Processed Foods Export Development Authority ■■ National Insitute for Food Technology and Entrepreneurship Management ■■ All India Association
Food
Processors
■■ Commodity Boards under the Ministry of Commerce and the Ministry of Agriculture/Ministry of Food Processing: coffee, tea, spice, meat and grapes. ■■ Indian Grape Processing Board
India Newsletter • 13
Indian Embassy, Vienna
PERSPECTIVES ON INDIA India: A vibrant entrepreneurial ecosystem by Ravi Capoor, IAS, CEO, IBEF India. With one of the youngest populations in the world, India is currently witnessing an entrepreneurial revolution. Global private equity (PE) and venture capital (VC) companies are expecting many more global start-ups emerging from the country in coming years. According to a recently released report, Bengaluru has the youngest start-up ecosystem in the world, with the average founder’s age at 28.5 years. A survey of the top 20 global start-up ecosystems by The Startup Ecosystem report by San Francisco-based Compass revealed that Bengaluru witnessed the highest growth in seed fund rounds over the last three years, with an annual average growth of 53 per cent followed by Sydney (33 per cent) and Austin (30 per cent). Kuala Lumpur came closest to Bengaluru, at 30.5 years, followed by Sao Paulo (31.7 years) and Berlin (31.8 years). Overall, Bengaluru moved up four positions to rank 15 in 2015, advancing from rank 19 in the 2012 ranking, registering one of the highest improvements among the 20 global start-up ecosystems. The recent recognition for Bengaluru is only a testimonial to the multifaceted ecosystem of the Indian city that attracts talent and expertise from around the globe. Bengaluru is often referred to as the start-up capital of India and is one of the hubs of first generation start-ups in the country. With around 3,100 start-ups present in India, it is currently the third largest start-up ecosystem globally and is expected to become the second biggest after the US in the next two years, according to NASSCOM. In fact, India is expected to have around 11,500 start-ups employing over 2,50,000 people by 2020. The vibrant 14 • India Newsletter
entrepreneurial ecosystem in India backed by the global PE/VC firms is expected to have a positive impact on the budding first generation entrepreneurs in Bengaluru and other major Indian cities.
Skill India: Kaushal Bharat, Kushal Bharat by Ravi Capoor, IAS, CEO, IBEF India. The Government of India formally launched the Skill India mission on the occasion of the first-ever World Youth Skills Day on July 15, 2015. The Prime Minister of India, Mr Narendra Modi was the Chief Guest for the event which was attended by several Ministers, Chief Ministers, State Ministers, Secretaries to the Government of India and other representatives from central and state governments. The Government has set a target of training over 40 crore people in various skills by 2022 with the Skill India mission. Landmark initiatives like National Skill Development Mission, National Policy for Skill Development and Entrepreneurship 2015, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme and the Skill Loan scheme along with logo for Skill India with the tagline ‘Kaushal Bharat, Kushal Bharat’ were launched at the event. It is important to note that The National Policy for Skill Development and Entrepreneurship, 2015 is the country’s first integrated national policy for developing skills and promoting entrepreneurship on a large scale. Expected to realise the demographic dividend in coming years, India has the potential to become the ‘human resource capital’ of the world. The positive demography makes the Skill India mission very important for the overall economic growth of the country. For instance, the average age of the Indian population, in 2020, is expected to be 29 years, younger than China and the US at 37 years and Western Europe at 45 years. “The world needs skilled people. There is a huge
job market out there. We must map the needs and train our youth accordingly,” Mr Modi said during his address at the launch event at Vigyan Bhawan in New Delhi. The Skill India mission is expected to be the backbone for important government initiatives like Digital India, Smart Cities and Make in India. In fact, as the mission is not limited to skill, but also includes entrepreneurship, it is expected to play a critical role in further development of the booming ecosystem for first generation entrepreneurs in the country
The environment in India is much more stable by R Balachandar, Co-Founder & CEO, Wassup Demand. Wassup is an on-demand convenience brand co-founded by Balachandar R and Durga Das. In an exclusive interview with IBEF, Balachandar R, Cofounder & CEO, Wassup Ondemand shares his views on the businessmodel of the company and startup ecosystem in India. Edited excerpts: ■■ Can you tell us about the business model of Wassup? We are an on-demand laundry and dry-cleaning convenience brand. In total we have around 30 consumer points in India, wherein close to five are in Bangalore, one in Delhi and one in Chennai. In total we have presence in five cities but we are now focusing on Bangalore and Delhi. We were waiting for all our technology to be deployed which is in place now. We have recently received investment from the Jabong Co-founders. The next step is to mushroom around the cities we already have our presence in. The target is to expand our reach to around 100 cities in next three years. We are looking at around 25-30 people per city and as it is a mechanised laundry set up, the number of people may reduce as we scale up. We have around 100 people in total in the five cities mentioned. In terms of revenue, we crossed Rs 5 crore last year and currently we are doing
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around 200 orders a day.
on their own.
■■ What are your views on the improving startup ecosystem in India?
■■ Do you believe Indian startups have a potential to become global brands?
There is a significant difference in the ecosystem compared to five years ago. What is happening is that a lot of money is going into a lot of startups, whether it is going through the right channel is something we whould be focusing on. Secondly, there is still a lot of improvement required on the regulatory front. However, the last budget announced around Rs 10,000 crore for startups but there is still a lot of improvement required in many areas relating to the regulatory management of startups in India.
There is a huge opportunity for startups to make a global name for themselves. At the same time, there is a huge opportunity to redefine the existing businesses. For instance, India has moved faster to mobile from desktop or laptops as compared to any other market and changes like these are expected to disrupt the conventional businesses and at the same time deliver many unique startups from India. Especially the environment in India is much more stable as compared to China which is a big plus for financial investors coming into the country.
■■ Do you believe steps like National Policy for Entrepreneurship are moving in the right direction? Yes, steps like these are in the right direction and such a policy is the need of the hour. While the acceptability towards entrepreneurship has increased but there is still a social stigma involved in becoming a first generation entrepreneur straight out of college or after leaving a well settled job. For instance, parents earlier used to discourage a kid playing cricket but the incoming of IPL changed a lot of things and opened a gamut of opportunities. What is happening now is with the growth in the success of startups in India; parents will soon start and encourage the kids to start
Rising India: rising millionaires by Ravi IBEF India.
Capoor,
IAS,
CEO,
With a healthy jump in the number of ultra-high-net-worth (UHNW) households in last one year, India is now home to over 928 households that have more than US$ 100 million in private wealth. Overall, India’s ranking among countries in terms of the number of UHNW individuals has risen to fourth spot in 2014 from the 13th position in 2013, according to the recently released report from The Boston Consulting Group titled ‘Global Wealth 2015: Winning the Growth Game’. US is the country
with the largest number of UHNW households at 5,201, followed by China (1,037), the UK (1,019), India (928) and Germany (679) in 2014. According to another report, India ranks on the third spot among global billionaires with 97 Indian billionaires following US and China. Private wealth in China and India registered a strong growth, largely driven by investments in local equities. It is noteworthy that China’s equity market rose by 38 per cent and India’s by 23 per cent in past one year. Factors like the continued economic expansion of China and India is driving growth in wealth in the Asia-Pacific region, the BCG report said. In fact, with a projected US$ 57 trillion in 2016, AsiaPacific (excluding Japan) is expected to surpass North America (a projected US$ 56 trillion) as the wealthiest region in the world. However, wealth in India is projected to record the fastest growth of 21 per cent between 2014 and 2019 – double the growth rate of the next fastest wealth creator China (10.3 per cent). Global private financial wealth grew by nearly 12 percent in 2014 to reach a total of US$ 164 trillion, in line with 2013, when global wealth also grew by just over 12 per cent. However, the total number of millionaire households (those with more than US$ 1 million in private wealth) reached 17 million in 2014, up strongly from 15 million in 2013.
INDIAN EMBASSY 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 appointments outside the opening hours or other inquiries, please contact the information assistant under info.vienna@ mea.gov.in or 015058666 33 ■■ Download our latest catalog of books under indianembassy.at/pdf/ EmbassyLibrary.pdf India Newsletter • 15
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INDIA-AUSTRIA ENTREPRENEURSHIP Bordeaux Traders, Fine Wine Investment: an example of India-Austria Entrepreneurship Bordeaux Traders is a leading fine wine investment brokerage based in the heart of Vienna, Austria, a pioneer in introducing premium fine wine investments to Austria and India. Founded in 2009, Bordeaux Traders has grown in size and operation consistently over the past 6 years whilst cultivating a global client base. With headquarters based in the heart of Vienna’s inner city, this prestigious investment house has branched out to Mumbai, India for an early foothold in the Indian and Asian markets. Initially focussing on the DACH region, Bordeaux Traders now has approximately 150 clients worldwide, with new investors entering the market every day. The reason therefore is straightforward and twofold. Firstly, the stability and success of fine wine investments is slowly coming to light, as verified by the increasing number of banks and financial institutions offering this alternative investment in their portfolios. Secondly, Bordeaux Traders is the pioneer when dealing with premium fine wine assets; it was the first investment brokerage to offer this lucrative alternative investment in Austria, specialising primarily in fine wines, also known as “Blue-Chip Wines”. The success of the business relies hugely on Robin Khanna, who built up the business over the better part of a decade through hard work, professional and competent client-oriented service management, and a trained eye for spotting, and capitalising on trends in the fine wine market. Robin Khanna grew up in the Austrian Capital, nevertheless always keeping his link to India strong, especially as his heritage stems from Chandigarh, India. Born in 1983, he moved to the UK to complete 16 • India Newsletter
his higher education, obtaining a degree in Business Economics with International Relations. Thereafter, Robin launched his financial career in London as a stock broker, a vocation that led to a firm grasp of the financial markets. Over the next few years Robin Khanna developed his understanding for the investment sector, while simultaneously being introduced to the lucrativeness of fine wine investments. After working for several major firms and increasing
his professional network in the alternative investment branch, as well as first-hand experience with the profitable nature of blue-chip wines, Robin decided to launch his own company in Vienna, a premier investment management service specialising in fine wines assets. In 2009 Bordeaux Traders was the pioneer; the first investment house to offer this intriguing financial asset class in the DACH region, with several companies offering similar services sprouting soon thereafter. More
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recently huge financial institutions and world renowned banks such as Credit Suisse and Barclays have started to offer fine wine assets as part of their portfolio management services, another testament to the successful nature of this alternative investment. The fine wine market has been assigned an index listed on Bloomberg, the Liv-Ex 100, as the industry increases in popularity, recognition and transparency. Initially starting out as a sole trader, the business expanded both in numbers and location over the years, moving to an office in Vienna’s first district. Due to this consistent growth and increasing demand the Company re-launched as a limited company (GmbH) in 2012. At the same time, the CEO and founder of Bordeaux Traders, wary of the fastgrowing Indian economy, decided to branch out to Asia with an office in Mumbai, India. Realising the immense potential of the Indian markets it was a logical move to set up a base in India, thus being closer to the clients and being able to cater to the consistently rising demand originating from the Far East. Initially, cracking into the Indian market and attracting investors to this relatively new investment asset
was painstaking and very slow as Robin admits, slowly but surely however, the investors started to roll in as the nature of blue-chip wines became evident. ■■ So what exactly is wine investment? Without delving to deeply into the details (that expertise is left to Mr. Khanna and his team of professionals) this investment asset class deals with the top 1% of wines worldwide. Mainly originating from the region of Bordeaux and Burgundy, these financial assets are commonly referred to as “BlueChip Wines”, a term coined due to its highly successful performance in the investment sector. Wine investment portfolios are always tailored specifically for each individual client, for example, conservative strategies show a slow but consistent ROI (return on investment) in the double-digit percentages over a 3-5 year period (mid to long term), while higher-risk strategies can yield up to 3-digit percentage returns in the short-term. It is this exact skill successfully customising investment portfolios tailored to each and every single client’s needs and wishes, that has propelled Bordeaux Traders
to the top of the game. These premium fine wines are exclusively handled in cases of 6 or 12 bottles, with cases ranging from anywhere between 1000 to 100,000 Euro, per case. There are countless factors that affect the market valuation of said wines, such as, the condition, vintage, score/rating and much, much more. Following the market is key, as spotting intelligent positions to buy and sell can make all the difference. A vast network of buyers and sellers is crucial, as laying your hands on a case of fine wine is a lot harder than it seems. Moreover, these assets must be kept in pristine condition, transported using professional logistics services, stored in temperature regulated environments and insured accordingly. The business of wine investment is far from simple, yet it is because these very services are rendered in such a professional and competent manner, that makes Bordeaux Traders stand out from the crowd. For more information on fine wine investments, you can visit the company’s website under www. bordeau-traders.com or call +43 1205 1160 1241.
INDIA PERSPECTIVES MAGAZINE ONLINE
www.magzter.com/publishers/meaindia
India Newsletter • 17
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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 maoffice.vienna@mea.gov.in to get more information about possible assistance/subsidies.
25th to 28th September Jaipur - Rajasthan
18 • India Newsletter
ASIA 2015
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India Newsletter • 19
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2nd India-Central Europe Business Forum
T
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: 20 • India Newsletter
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
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India Newsletter • 21
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INVEST INDIA Federation House, Tansen Marg New Delhi—110 001 0091-11-23765085, 23487278 investindia@ficci.com www.investindia.gov.in
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
22 • 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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TOURISM Ganapatipule - The Beach of Mellow Happiness by Hugh & Colleen Gantzer. This is, really, a most unusual destination Its setting is dramatic. Our road arrowed through a barren, seemingly blasted, plateau of crusty, black, laterite: a cold and unwelcoming place. Further along the coast, however, this rugged terrain produces the famed Alfonso mangoes whose golden flesh is a gourmet’s delight. Then, unexpectedly, we were out of this bleak landscape. The road soared over a crest and, suddenly, the sun illuminated a beautiful, wide-screen, water-colour of green and gold and blue. It was quite startling. The wooded escarpment tumbled down to the Konkan Coast, spread into a broad and palm fringed beach, ended in an estuary where an olive-green river flowed slowly into the winking, twinkling, blue of the Arabian Sea. All across the verdant coastal plain, peeping through the masses of mango and palm trees, were the cheerful, red-roofed, cottages of the resort of Ganapatipule. We snaked down from the plateau to the coast, past restaurants, shops, new lodging houses, parked cars and knots of tourists, into the redlaterite roads of the resort. India’s great middle-class has discovered Ganapatipule. Most of them trod, hesitantly, into the sea and screamed with delight when the surf drenched them; a few swam, or pretended to swim with their feet planted firmly in the sand underneath. Then, after bathing and changing, they dined on the delicacies of Maharashtrian fare and fresh seafood. In most of the other religious spots we have visited vegetarianism is the rule. In fact, in a Himalayan temple town which we featured in one of our TV episodes, people were shocked to find chicken bones in a garbage heap. It might have caused a major
upset at the height of the pilgrim season but adroit priests and the local administration managed to convince the irate devotees that the flocks of crows were probably responsible! No such inventions are necessary here. Mahrashtrian vegetarian food is lightly spiced and sits effortlessly on the stomach. Even their chillies have a bite only slightly more assertive than their diced and fried onions. These lent piquancy to the poha: puffed rice tossed with green dhania. Then there was that memorable Maharashtrian dessert, sreekand, made of sweet, concentrated, yoghurt. The seafood, however, was heavily spiced and was probably influenced by the cuisine of the lively fisher-folk. The wide world over, few fishing families are vegetarian and their tastes have, clearly, prevailed in Ganapatipule. Clearly, too, none of the non-veg diners seem to consider it wrong to visit the benign Lord of Good Beginnings , Visitors make it a point to walk across to the temple of Ganapatipule. This ancient shrine is the heart of the township. Within it is the greatly revered, and natural, rock formation, worshipped as the benign, elephant-headed God and Remover of Obstacles: Lord Ganesh, also known as Ganapati. His other title here is Paschim Dwar Dewata: the Western Sentinel God, presumably because his idol faces the Arabian Sea. Before the new temple was built, the sea would roll in, sometimes, and wash the feet of the idol. A wall holds it back today. While no one is quite certain how old the idol is, devotees believe that it was discovered when a cow, repeatedly, bathed it in her milk. Lord Ganesh then appeared to the animal’s owner in a dream, inspiring him to build a small hut over his idol. Later, the hill rising behind the temple began to be revered as an even larger manifestation of the deity. When we visited the temple in the saffron light of sunset, we saw bare-footed devotees walking briskly around the hill, circumambulating it with all the
reverence that they would pay to Lord Ganesh himself. Though we did not do the Pradakshina walk of the faithful, we did walk barefoot on the beach at dusk. Here, again, we found a refreshing absence of moral policing. Though we saw no bikini-clad bathers, there were no groups of gawping ooglers smirking at women in soaked, clinging, garments emerging from the sea. The sand was firm and pleasantly gritty, the surf was gentle and caressing, and though we dodged cricketers and Frisbee flingers at first, all activity came to a hushed stop when the bright orange sun began to make its descent into the gilded horizon. Sunset watching is a favoured activity in Ganapatipule, and the topic of much animated discussion till late into the night! In fact, if we have to describe the all-pervasive atmosphere of this unusual place we’d say it was a feeling of innocent happiness. We spoke about this to a member of one of the priestly families attached to the temple. He was an articulate, educated young man who managed one of the many hotels that such families run in Ganapatipule. He was a little reluctant to speak at first but then when we assured him of anonymity, he opened up. “This should be expected, of course” he said with a smile. “Lord Ganapati is Joy and Innocence personified. For all his apparent ungainliness, he dances with effortless grace, he plays musical instruments. With his big ears he hears everything. With his gentle eyes he sees everything. Through his little mouse he learns everything. And yet he is never enraged, never vengeful. He is the most tolerant, most understanding of all gods. Can his Ganapatipule be any different?” Of course not and that, frankly, is as good an explanation as we’ve ever heard. India Newsletter • 23
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24 • India Newsletter
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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
Dhoom: 3 ■■ Synopsis:
After
his
father
committed suicide because he was not able to pay the loan to the Western Bank of Chicago, Sahir Khan, a circus owner, must take revenge by robbing the same branch several times. To take him down, Jai Dixit and Ali Akbar are sent from India.. ■■ Genre: Action/Crime/Thriller ■■ Directed by: Vijay Krishna Acharya ■■ Starring:
Aamir Khan, Abhishek
Bachchan,Katrina Kaif ■■ Released: 2013 ■■ Duration: 172 Minutes ■■ Language: Hindi ■■ Subtitles: GERMAN ■■ Image Quality: HD
Showtime August 28th, 17:30 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna)
India Newsletter • 25
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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 ■■ 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
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 & TWITTER ■■ Our Facebook and Twitter pages target 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 on Facebook! ■■ ‘Like’ our facebook page and be the first to know!
www.facebook.com/IndiaInAustria www.twitter.com/IndiaInAustria 26 • India Newsletter