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INDIA NEWSLETTER Published by the Embassy of India,Vienna Year 2 | Issue 21 | September 2012

India Newsletter | 1



Snapshot of last month’s Highlights


With 27 per cent share in the total FDI proposed in 2011-12, Odisha has emerged as the most favourite investment destination for overseas investors.

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IT spending is to grow at 16.3% to US$ 43.57 billion in 2012

India’s tyre industry registered a net profit of Rs 178 crore (US$ 32.02 million) in April-June 2012.


The growth in deposits across the banking system in India is expected to rise by 15.8 per cent in 2012-13.


The wellness sector in India is expected to touch Rs 950 billion (US$ 17.10 billion) by 2014 and will grow at a CAGR of 18-20 per cent.


With a market capitalisation of Rs 138,469 crore (US$ 24.88 billion), HDFC Bank is now one of the most valuable bank in the world valuing more than players like BofA and BNP Paribas


Indian households hold over US$ 950 billion of gold and a quarter of all the gold sold globally is imported by India


Event management industry in India is expected to touch Rs 4,375 crore (US$ 779.51 million) by 2013-14


India’s foreign exchange reserves increased US$ 1.3 billion to US$ 288 billion for the week ended July 27, 2012


Indians are most confident about their current level of savings. Over one-third Indians believe that they are saving enough for their retirement.


Indian equities have attracted more foreign institutional flows than any other Asian market so far in 2012. Foreign funds have invested close to US$ 11 billion into Indian equities since January 2012.


India’s retail market is expected to reach US$ 1.3 trillion by 2020, growing more than double in size from the current valuation of US$ 500 billion.


Domestic passenger car sales increased 6.7 per cent to 143,496 units in July 2012 as compared to 134,473 units in the same month in 2011.


Foreign institutional investors (FIIs) have bought a net of US$ 10.7 billion of Indian equities till early August - the highest ever on a year to date basis.


The Ministry of Textiles has revised the export target for textile products to US$ 40.50 billion from US$ 38.31 billion for 2012-13.


The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are among top five bourses across the emerging economies of the world in terms of market capitalisation.

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India’s mobile data consumption to double by June 2013.

Infrastructure project completion is expected to go up by 39 per cent during FY 2012-13.


GoAir, India’s fifth largest airline in terms of market share is planning to double the number of flights to about 1,400 a week by FY13.


The domestic probiotic market is expected to grow at a compound annual growth rate (CAGR) of 11 per cent by 2016.


Automobile production in India is expected to grow by 9 per cent in 2012-13.

VIBRANT GUJARAT DELEGATION to austria Interested parties are invited to attend the Networking Seminar/Cocktail


he Vibrant Gujarat Delegation will be visiting Vienna from 27-29th September, 2012. The delegation’s focus is on Innovation & Technology within the following industries: Automotives, Chemicals & Biotechnology, Engineering & Infrastructure, Electronic & Machinery, IT and Environmental Technology. In

this context, interested companies are welcome to take part on the BUSINESS NETWORKING SEMINAR/COCKTAIL with the delegates. The agenda includes short presentations about the focus sectors and on investment/cooperation opportunities with the Indian state of Gujarat.

When: 27th Sep, 2012 at 17:30 Where: Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Shall you be interested in attending the event, please RSVP at or 01 505866631.

capexil DELEGATION to austria

Interested parties are invited to pre-register for B2B meetings


he Chemicals and Allied Products Export Promotion Council of India is visiting Vienna on 8-9th October, 2012. The delegation is comprised by 22 companies.

their representation in India, procure-

In this regard, those interested in holding

ment of quality raw materials, appointing

B2B meetings with the delegation are in-

Besides seeking trade partners, the companies hope to check the possibility of Joint Ventures, Technical Tie Ups, Take overs of Plant & Machineries, possibility to open branch offices in Austria vis-à-vis inviting European firms to have

The Delegates of Granites, Marble, Natu-

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selling agent, selecting distributors, tie up with buy back arrangements etc. ral Stones, Ceramics & Refractory segments also have interest in the areas of

vited to pre-register by sending an email to or calling 01 505866630. More information about the full program for the meet-

procurement of materials, design, R&D in

ings will be published as soon as they are

Structural Engineering etc.



EMBASSY OF INDIA (VIENNA) LAUNCHES facebook page Online under

Fascinated by the huge popularity of Facebook among Indians and Friends of India residing in Austria, the Indian Embassy, Vienna, announces the launch of its Facebook account. Indian Embassy aims to reach out to the Indian-Austrian community. The new move came as a part of the efforts of our new Ambassador to Austria and Permanent Representative to the International Organizations in Vienna, Shri R. Swaminathan (picture right), to reach out to Indians who reside in various parts of the country and to friends of India, who are interested in India-related news and events in Austria.

The Embassy is happy to announce the launch of the Facebook account. Please join the group and also invite other ‘friends of India’ to join! The government of India has been actively using Facebook as a platform to connect, converse and promote. Facebook was also used to promote India’s Census 2011 where the community learned and discusseed national matters with officials. The Planning Commission of India also introduced a Facebook Page to educate and communicate India’s expenditure planning for the next 5 Years.

India is a favoured investment destination in Asia Report by Mecklai Financial


ndia has been a favoured investment destination in Asia, according to Mecklai Financial.

On a year to date basis, India received flows worth $11 billion in equities and $4.7 billion in debt investments.

“The Indian financial markets have witnessed favouritism among the investing Diaspora compared to its Asian counterparts such as South Korea, Taiwan, Thailand and Indonesia” said the Mecklai Financial report.

The second highest flows were received by South Korea to the tune of $6.2 billion. “In the Jan-March period when the inflows were registered the USD/INR which was trading at 53.298 levels at the

start of the year gained strength up to 48.56 levels by the beginning of March. That was a close to 7% appreciation in the Indian rupee,” said the Mecklai Financial report, “The USD/ INR pair could be helped to 52.50 levels with the twin deficits, stunted GDP growth rate and the economic quandary of Europe refraining the rupee from such levels. India Newsletter | 3


INDIA-AUSTRIA BILATERAL news Extracted from our Economic and Commercial Report BILATERAL TRADE REPORT


n the first five months of 2012, India’s total exports to Austria remained virtually unchanged when compared to the same period last year registering a very low increase by +0.2%. India’s total imports from Austria, on the other hand, marked a significant decrease by -11.6%. The results align with the current Eurozone economic scenario as instability of the current monetary union creates insecurities to both local businesses and third parties like India.The results, however, do not indicate any major changes in trade activity between the two countries. The current stand might rather be associated with monthly fluctuations. India’s Export to Austria. On the exports’ side, there has been very little change. Though registering minor slowdowns, Textiles, Apparels and Footwear still represent the largest slice of exports, accounting for more than 37% of India’s total exports to Austria. Machinery and Equipment represent the second most important export group, accounting for 25% of total Indian exports to Austria though marking a decrease in the main subcategories Electrical Machinery and Road Vehicles. General Industry Machinery has compensated within the group

with an increase by 23%, accounting for 5.5% of total exports. As mentioned in earlier reports, there seems to be a trend change in the Chemicals sector. While experiencing constant decrease since early 2011, the segment started to catch up and now accounts for 13.39% of India’s total exports to Austria, in contrast to 10.54% for the same period in 2011. The boost is mainly pushed by increase in exports of Organic Chemicals, which more than doubled its exports value in comparison to 2011. India’s Import from Austria. On the imports side, virtually every major trade category has registered a decrease. The results reflect the current instability in reference to the Euro currency within the Eurozone. As the decreases affect virtually every trade group, the structure of imports remain the same, being Machinery and Transport Equipment the main import group with 42.68% of total imports, followed by manufactured goods with 34.08% and Chemicals 10.11%. Major contract in India for Siemens Austria


n Nagarnar (Chhattisgarh), Siemens Austria will build a complete steel plant until 2015, Siemens Austria an-

nounced. The construction of the steelworks will be effected with the Indian subsidiary Siemens VAI Metals Technologies Pvt Ltd, Mukand Engineers Ltd and SEW Infrastructure Ltd. The project of NMDC is a part of the national program to increase the Indian steel production. The annual production capacity reaches about 3 million tons. NMDC is India´s biggest producer and exporter of iron ore. Last year, NMDC extracted about 30 million tons in India. Siemens to supply electrical steel works to BMM Ispat


he Indian steelmaker BMM Ispat Ltd. ordered the core systems for an electrical steel plant from Siemens VAI Metals Technologies, including an electric arc furnace specially designed for combined charging of Hot Metal and direct-reduced iron. The steelmaking plant is part of a new integrated production complex at Hospet, Karnataka, India, and is planned to go into operation at the end of 2013. The order volume is a double-digit million euro figure. At the beginning of the year, BMM Ispat ordered a flexible bar mill from Siemens for the same production site.

India IS PARTNER COUNTRY AT BRNO INT’L ENGINEERING FAIR The India Show at Brno International Engineering Fair

come from abroad. Trade Fairs Brno, the 2012 show, organised by BVV, is the 54th edition where India will be present as the Partner Country.


EPC India is holding The India Show in the Czech Republic - gateway to Central and East European markets. The Show will coincide with MSV – International Engineering Fair at Brno Exhibition Centre, Brno from 10 - 14 September 2012. Around 150 companies from the small, medium and large sectors will participate. MSV – International Engineering Fair, Brno is the most important industrial fair in Central Europe. The fair hosts more than 1,500 exhibitors & brings in about 80,000 visitors. More than 35% of exhibitors & 10% of visitors

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The upcoming MSV-Brno International Engineering Fair at Czech Republic (September 10-14, 2012) provides India a perfect platform to showcase its engineering strength.With India as the Partner Country, SMEs and large size companies will be participating to explore the potential opportunities in the Central and East European market. For the records, the 2011 Brno Fair attracted 78,500 visitors from Central European countries including Germany, Slovakia, Austria, Hungary and Italy and there were over 1,600 companies from 28 countries exhibiting at the Fair. Considering the fact that markets like US

and Europe together account for over 60 per cent of India’s total engineering exports, this Fair should further help augment and expand the India engineering presence. The engineering sector is the largest industrial sector in India accounting for 12 per cent of the GDP. India has set itself a target of increasing the export of Indian engineering goods to US$ 125 billion by 2013-14 at a growth rate of 27.8 per cent. Providing direct employment to over 5 million people, the engineering sector is the backbone of India’s enterprise. India Brand Equity Foundation (IBEF) and EEPC India are organising The India Show in the Czech Republic coinciding with the MSV – Brno International Engineering Fair under the aegis of Department of Commerce, Ministry of Commerce & Industry, Government of India.


India Newsletter | 5


Govt Takes Major Initiatives to Improve Power Situation By the Minister of State for Power, Shri K.C.Venugopal


he Minister of State for Power, Shri K.C. Venugopal, informed Lok Sabha in a written reply that major initiatives undertaken to improve power situation in the country include delicensing of thermal generation, introduction of Ultra-Mega Power Projects (UMPP), investor friendly New Hydro Policy 2008, initiatives for augmentation of domestic manufacturing capacity of power plant equipment, adoption of supercritical technologies, liberalization of

mega power policy, enhancing availability of skilled and trained manpower etc. Government of India also supplements the efforts of the State Governments by establishing power plants in the Central Sector through Central Public Sector Undertakings. He also informed that supply of power within different areas of States is not centrally monitored. Electricity is a concurrent subject. Responsibility for supply of electricity to different categories of consumers and different

areas within a State, including tribal and backward areas, lies with the appropriate State Government/Power Utilities. Further, the shortage of electricity in tribal and backward areas is generally attributable to inadequacy of sub-transmission and distribution network and/or their healthiness. The minister said there is an overall shortage of power in the country, primarily due to growth in demand far outstripping the growth in availability of power.

Dahej SEZ makes it to world’s top 50 free zones As published in FDI Magazine


he multi-product Special Economic Zone (SEZ) at Dahej has made it to the world’s top-50 ‘free zones’. The ranking has been granted following a survey of over 600 free zones in 120 countries by the prestigious FDI Magazine. Gujarat’s minister of state for industries Saurabh Patel said that Dahej SEZ stood 26th among the top-50 and is the only SEZ from India to have figured in the list from 24 countries for the year 2012-13.

The selection was made by the jury on various parameters. He said that Dahej SEZ has achieved this for the second consecutive year. Earlier, it had figured in FDI Magazine’s top-25 free zones. The Da-hej SEZ has been jointly developed by Gujarat Industrial Develop-ment Corporation (GIDC) and Oil and Natural Gas Corporation. It is spread over 1,732 hectares and plots have been allotted to 68 units who have invested Rs.35,000-crore. About 26,500

people have been employed at the SEZ. The commercial units have exported goods worth Rs 865 crores. Dahej SEZ Ltd (DSL) is a company registered under the Companies Act, 1956 and is promoted jointly by Gujarat Industrial Development Corporation (GIDC) and Oil & Natural Gas Corporation ltd. (ONGC) for development of Special Economic Zone (SEZ). DSL is developing a multiproduct SEZ at Dahej in Vagra Taluka of Bharuch district in Gujarat, India.

India fastest growing market for Domino’s Annual growth rate recorded at 50%


espite a palpable slowdown in the eating out industry across the globe, India has emerged as the fastest growing market for Domino’s, outpacing US, which is the largest market for the pizza chain, across 73 countries where it has presence. India recorded an annual growth rate of nearly 50% for Domino’s for the fifth consecutive year. “India has been performing fabulously for us. We are seeing some pressure in western Europe especially, where it has been a very tough economic year for us,” Domino’s executive vice president (international) Richard E Allison Jr said. India, which accounts for 5% of Domino’s’ global sales, is among the top five markets for the US-based company. In terms of store counts too, India has registered the highest growth among all other markets. The brand added 75 stores in India in calendar year 2011, taking the total number to 500. It is planning to increase the number by 100 in the current finan6 | India Newsletter

cial year. The company, which currently competes with other food chains such as Pizza Hut and Papa John’s, commands around 55% share of the Rs 1,800 crore pizza industry in the country. With only 10-15% of the industry, Allison is optimistic on increasing its market share by increased accessibility to consumers. The company will invest over Rs 150 crore in India this financial year, up from the Rs 111 crore it had invested last year. Like most other companies in the quick service restaurant space, Domino’s too reported a decline in the same store sales growth in the April to June quarter to 22.3% from 36.7% in the corresponding period last year. The company is also focusing on value offerings in a bid to widen its consumer base in the country. “We have to think about the product pricing always. The game is all about value pricing. We are only focusing on increasing our market share in India.”


India Has Estimated Potential for 19,750 MW In small hydro-power projects alone


he Minister of New and Renewable Energy, Dr. Farooq Abdullah informed Rajya Sabha that India has an estimated potential of about 19,750 MW of Small Hydro Power (SHP) projects. So far, 898 SHP projects with an aggregate capacity of 3411 MW have been set up and 348 projects aggregating to 1309 MW are under implementation. Ministry of New and Renewable Energy ensures performance testing of all the plants for their functionality. He said that the Setting up of small hydro projects comes under the purview of

State Governments. Potential sites are either developed by the state or allotted to private developers for setting up of projects. During the 11th Plan, a capacity of 1419 MW was added against 536 MW during the 10th Plan. A capacity addition of 2100 MW from SHP projects has been planned during the 12th Five Year Plan. The minister informed the House that his Ministry is providing Central Financial Assistance (CFA) to set up small / micro hydro projects both in public and private sectors. Financial support is also given to the State Government for identification

of new potential sites including survey and preparation of DPRs, and renovation and modernization of old SHP projects. It also helps the State Governments in formulating their policies for the development of small hydro projects and exploitation of this potential. India has adequate capabilities of setting up small hydro projects. The Government has not sought assistance from any developed country to set up small hydro projects, he added.

India, China plan joint working group to boost trade Aimed at giving a boost to bilateral investment


ndia and China are working to set up a joint working group aimed at giving a boost to bilateral investment and also to address trade related matters. The two countries also evinced interest in fostering favourable investment climate including greater market access and speedy visa facilitation. Commerce and Industry Ministry Anand Sharma and his Chinese counterpart Chen Deming led their business delegations at the ninth session of the IndiaChina Joint Group on Economic Relations, Trade, Science and Technology. Sharma, while briefing reporters, said, “The joint working group will be established soon and it will give its recommendations and assessments in 90 days...We have also agreed to work on a five-year

plan on economic cooperation. These have been proposed by China and we have welcomed and endorsed it”. While Sharma raised concerns over widening trade deficit in favour of China and restricted market access in areas such as IT, pharmaceutical and agricultural products, Chen raised issues pertaining to visas and the recent import duty hike on power equipment by India.

“We have invited China to participate and support in the establishment of one or more of the National Investment and Manufacturing Zones,” the Minister said. The Chinese Trade Minister said both India and China could help in a global economic recovery and it is important to strengthen ties between the two nations. He also expressed hope of achieving $100-billion trade target by 2013.

Sharma said, those projects which already have got approval for the 12th Plan period will be continue to enjoy the exemption.

The total bilateral trade between India and China for 2011-12, stood at $75,457.42 million as compared with $59,000.36 million in 2010-11.

Sharma said the two sides had touched upon issues that were hampering trade and investments. India had asked leading Chinese companies to set up manufacturing bases in India.

During 2011-12, the exports were $17,902.98 million while the imports stood at $57,554.44 million. The provisional trade deficit for 2011-12 was $39,651.46 million.

German firm launches products targeting Govt sector Targeted at the Indian Government

The company has launched its Hindi version of ERP solutions as a part of its localisation initiative.This ERP software will enable the Government to update and manage documents, help users transact various processes and generate reports to deliver better citizen services.

lish and Hindi. This solution digitises file management encompassing all stages of the conventional file management process including filing of documents, workflow management, document uploads, file movement, correspondence, administrative and access regulations, alerts and analytics. According to the company, the Lifecycle Management solution was developed by SAP Labs India.

This solution was also developed by SAP Labs India, along with government agencies, including the Centre for Development of Advanced Computing (CDAC), and language experts and covered 4.5 million coding lines, according to SAP officials. SAP is not the first to come out with a solution aimed at the Government sector. In May, EMC came out with an automated solution at the launch.

Along with this solution, SAP has also launched its File Lifecycle Management solution to improve the file management processes for public sectors in Eng-

SAP ERP in Hindi will target business areas such as taxation, accounting, employee data, provident fund, payroll, loans, claims and employee self-services.

The company said the market size for workflow management solutions in the government sector is pegged at $104 million and growing at 25 per cent/year.

German software major SAP has announced a slew of products for the Indian Government sector.

India Newsletter | 7


India fourth biggest market for aircraft deliveries By aircraft maker Airbus


In the same period, the world’s freighter fleet will almost double from 1,600 to 3,000 aircraft.

ndia will be the fourth biggest market in terms of value for all new aircraft deliveries after China, the US and the UAE during the next 20 years, according to aircraft maker Airbus.

The report says Asia Pacific will account for 35 percent of all new aircraft deliveries, followed by Europe and North America with 21 percent each. Emerging economic regions will represent more than half of all traffic growth in the next 20 years.

The Airbus Global Market Forecast identifies a global demand for some 28,200 passenger and freighter aircraft (of 100 seats or more) worth nearly $4 trillion between 2012 and 2031. Of these over 27,350 will be passenger aircraft valued at $ 3.7 trillion.

Increasing urbanisation and the doubling of the world’s middle classes to five billion people is also driving growth. By 2031 mega cities will more than double to 92 and over 90 percent of the world’s

By 2031, the world’s passenger fleet will have expanded by 110 percent from slightly over 15,550 today to over 32,550.

traffic will be between or through these points. “Aside from growth in international traffic, by 2031 four of the world’s biggest traffic flows will all be domestic - US, China, Intra Western Europe and India and these account for a third of world traffic,” says John Leahy, Airbus Chief Operating Officer, Customers. “In 20 years from now, China’s domestic passenger traffic will overtake the US domestic traffic to become the number one traffic flow in our forecast. Aviation is not just essential for international commerce, but also for domestic economies too.”

India is world leader in concentrated solar heating From the Ministry of New and Renewable Energy


by burning fuel oil, coal or biomass.

ith some 80 different applications of concentrated solar heating (CSH) in practice in the country, India is the world leader in CSH, the Ministry of New and Renewable Energy has said.

Here is where India scores, both in terms of potential and also applications developed, says the Ministry. “India is leading the world with around 80 CSH applications,” it has said in a background note to UNDP-GEF sponsored project for nurturing CSH technologies in India.

When you speak of solar energy, you think mainly of solar panels and electricity flowing from them. Then you would think of appliances such as solar water heaters and solar lamps.

Without going into details of the 80 applications, the Ministry has noted that the predominant use of concentrated solar heating is in “institutional cooking”.

But the big use of solar energy lies in directly using the sun’s heat for use in industry. Lots of manufacturing units require just low-to-medium temperature heat, up to 250 degrees Celsius, mostly for drying stuff.Today, this heating is done

In India, the current CSH market is about 2,000-3,000 square metres a year (of the concentrated area), says MNRE. The Glo-

bal Environment Fund project will complement MNRE’s efforts of CSH technology, awareness, capacity, market and financial barriers and increase CSH sales to 15,000 square metres by 2016. Direct emission reductions from the demonstration and replication projects during the 5-year project duration will be 39,200 tonnes of carbon-dioxide equivalent. Over the economic lifetime of 20 years for the project supported by CSH applications, cumulative direct emission reductions will be 315,000 tonnes of CO2, the Ministry says.

India set to become second largest steel producer By Prime Minister Manmohan Singh


ndia is poised to become the world’s second largest steel producer. However, this is subject to finding the right technology to produce special categories of steel. Currently, India is the fourth largest producer, with 74 million tonnes annual production in 2011. Per capita steel consumption went up to 59 kg in 2011-

12, from 34 kg in 2004-05.With the modernisation programmes of various public and private companies, the country will soon rise to second place, Prime Minister Manmohan Singh said in his address to the steel industry, after giving away trophies for the best integrated steel plant. However, he noted that despite impres-

sive data, per capita steel production was much lower than the global average of 215 kg. Also, the country was one of the importers of special category of steel. The Prime Minister’s trophy was awarded to SAIL’s Bhilai Steel Plant for 2009-10. Tata Steel got the trophy for 2008-09.

QUOTE OF THE MONTH “It (India) is a very important market not just for us but any company that wants to be successful” Erik Johnson, Head-Sales, Asia Pacific, Facebook

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india can double exports by 2015 By Commerce Secretary


he Government’s target to double its exports to $500 billion by 2015 is achievable, said S.R. Rao, Commerce Secretary. Speaking on the sidelines of a Confederation of Indian Industry Export summit, he said, “The country can expect some policy announcements in the next 3-4 weeks which would encourage the industry and exporters.”

their share in global trade flows had risen to 42 per cent with South-South trade accounting for a large portion. “South-South trade has multiplied more than 10 times in the last two decades as compared to global trade which grew four-fold in this period,” said Rao.

When asked whether India will be able to achieve the $360-billion export target for this fiscal, he said, “it is difficult.”

Adi Godrej, President, CII, and Chairman, Godrej Group, said if supply chains currently based in China are relocated, India needs to take advantage of that by finding ways to integrate itself more effectively in the new value chain.

Underlining the significance of emerging economies in global trade flows, he said

T.C.A. Ranganathan, CMD of Exim Bank of India, said that while the Government

and industry have an equally important role to play in formulating an effective strategy, it is the strategy of individual corporations that will play a bigger role in achieving the export target. Last year India’s external merchandise trade was close to $780 billion contributing close to 47 per cent of the national GDP. “Our exports have breached the $300-billion mark though our imports remain a hefty $470 billion generating a large trade deficit, which is a matter of concern,” the Commerce Secretary said.

Indian drug companies in world’s fastest growing list Expected to account for 20% of all construction by 2030


n yet another instance of India Inc occupying a larger seat in the global league tables, three out of the top 10 fastest-growing generic companies globally are now from India. Besides being an indication of the acceptance of domestic pharmaceutical companies and their growing clout, this is also a stamp of their command on manufacturing processes, innovation and marketing muscle at a global scale. On the list is Glenmark Pharmaceuticals which, with a growth of 37%, is the fifth fastest-growing generic company globally, followed by Dr Reddy’s which grew 34% in FY 2011-12, according to global pharmaceutical research firm, EvaluatePharma. The third domestic company on the list, Sun Pharma witnessed a growth of 29%, occupying the eighth rank, right below its subsidiary Taro which had a 33% growth (Taro reports its own numbers since it is listed in the US, while the domestic company has started combining the Israel-based company’s financials since September 2010). The club of the fastest growing generic companies in the world is dominated by US companies, led by US-based Sagent Pharma, which witnessed a huge growth of 106% during the period, according to the research firm’s latest analysis.

Perrigo, another US company, is the world’s second fastest-growing company with an 80% growth. Nichi-Iko Pharmaceutical of Japan is on the third slot, posting a growth of 79%, while Watson Pharma of US grew 46% during the period. Pharma companies have taken advantage of the blockbuster drugs which are losing patent protection, and have already raked in millions of dollars by introducing their generic versions. For instance, Dr Reddy’s launched generic versions of blockbuster drugs Zyprexa and Plavix, while Ranbaxy mopped up huge revenues from sales of generic Lipitor. Significant product launches, market exclusivity of drugs going off-patent, and growth in regulated markets have contributed to the development, industry experts say. According to Sujay Shetty, India leader for pharma and life sciences at PwC India, “This shows the growing significance of domestic companies in terms of quality, portfolio strategy and certain significant first-to-file (FTF) products. Strong revenues from regulated markets are another factor which contributed to the huge growth. Most of companies business’ around 50% coming from US, which is the largest market for generics globally. Domestic companies like Dr Reddy’s capitalized on key FTF opportunities, while others including Sun Pharma posted gains on account of US sales.”

also been driven by their robust home businesses. The Indian pharma market is clocking a growth of around 15-20% year-on-year. Commenting on Glenmark’s strategy, CMD Glenn Saldanha says, “The high growth is due to our focus in building a strong emerging markets business in addition to having a significant presence in India and US. The growth from markets, particularly Russia, Brazil and the US, has been exceptional. We have invested in these markets for the last six-seven years and we are just beginning to make huge inroads in these markets. Glenmark will continue to build its presence in markets like Russia, Brazil and Mexico where it has invested for the last five years and these markets will drive strong growth.”

The growth in domestic companies has India Newsletter | 9


India has vast potential to be regional education hub An Interview with David Johnson, dean, St Anthony’s College, Oxford University could be done to bring it to global standards. Excerpts: Q: Where do you think gap lies in professional education in India and what could be done to bring it to global standards? What are the challenges?

India has vast potential to emerge as a regional education hub, but needs innovative and challenging opportunities in government policies to bring it to global standards, says David Johnson, dean, St Anthony’s College, Oxford University. The university and India’s Core Education and Technologies has introduced a nine-month programme in Kerala on innovative approach to in-service training or professional development of teachers. In an interview to Rica Bhattacharyya from ET, Johnson speaks on the gaps in professional education in India and what

A: In terms of global standards of professional or management education where other countries are moving rapidly is the professionalisation of such courses. In the UK, for instance, professional bodies suggest academic training in domain of higher education that very often universities cannot manage on their own. My immediate sense on the gap in India is that there is no immediate emphasis on who manages their professional education. The notion of professionalisation has nothing to do with collection of degrees. Q: What are India’s prospects as a regional education hub? A: India, more than any country, has vast potential to be a hub for education. In India, there are huge number of people with huge professional knowledge, including academics and social scientists, but they not getting the opportunity for collaboration. I have seen Indian teachers in action with fantastic skills and expertise. There is huge potential to make the

India, more than any country, has vast potential to be a hub for education. In India, there are huge number of people with huge professional knowledge, including academics and social scientists, but they not getting the opportunity for collaboration. (...) There is huge potential to make the world recognize this is where they want to be.

10 | India Newsletter

world recognize this is where they want to be. What I saw in South Africa was the redrawing of higher education plans that requires huge amount of creative thinking and innovation - thinking that is ethical and the immediate visible result was the camping of number of UK academics in SA universities. India needs innovative and challenging opportunities in government policies in every sphere, not just in education. Q: What kind of training needs for teachers at primary level have you identified? A: What we can see through research is a significant qualitative shift in how teachers approach their thinking about what it is they are doing. We are able to document the reflection of practitioners. The outcome is a growth model that is lacking not only in India and other developing nations but even in a lot of developed countries. There is lack of research on how teachers have grown in profession. We have achieved network learning communities in a concentrated way with guidance from our people or through internet driven technologies. The model we have developed is cutting edge and produces “reflective practitioners”, who can be thoughtful, in a way that they are guided and supported.

Business Centre


The Embassy of India’s Business Centre The website of the Embassy of India, Vienna, and its ‘Business Centre’ section offer a wide variety of business related information, carefully selected and updated to meet India-Austria’s business demands. In our Business Centre, companies not only have the opportunity to find relevant information on India-related trade matters, but can also interact with the commercial wing of the Embassy by submitting their online trade inquiries. Additionally, the Embassy compiles a monthy economic and commercial report for Austria, which is targeted at Indian business readers and trade corporates. The same can be downloaded directly from our Website or if you wish to receive it via email, you can register your email by sending a request to Besides its online presence, the Embassy also has a Business Centre Facility, located on the first floor of the Main Chancery building on Kärntner Ring 2, 1010 Vienna. The space is ready to welcome businesspeople and parties interested in requesting, exchanging or providing information on India-related business matters. You can either schedule an appointment with a representative of our commercial wing at the contacts given below or simply visit us during our opening hours Tuesdays and Thursdays from 11AM to 1PM.

The Business Centre is opened tuesdays and FRIDAYS (NEW!!) 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: or 01 505 8666 30 Marketing Assistant: or 01 505 8666 31

THE MONTHLY ECONOMIC AND COMMERCIAL REPORT (ECR) The Indian Embassy, Vienna, issues, on a monthly basis, the “Economic and Financial Report (ECR)”. Different from this “India Newsletter”, which focuses on India-related information to the Austrian community, the ECR focuses on Austria and India-Austria-related trade and business matters. The reports are available for download from the Embassy’s Online Business Centre at If you wish to receive the ECR by email as it is issued monthly, please email a request to

India Newsletter | 11



Indian Industry Sector Close-Up


ndia is standing on the threshold of a retail revolution and witnessing fast changing retail scenario. India is the most preferred new destination for global retailers and it topped the list in a survey, done by property agents CB Richard Ellis, of 323 international retailers about the markets they entered for the first time last year. India ranks 35 with just about one-fourth retailers present in the country and New Delhi was ranked as the fourth most popular city for new retail entrants at city level, according to the CB Richard Ellis study, which covered 75 countries, in terms of international retailers present in a country. The RNCOS’s convenience store market reports present the picture of changing retail industry with the emergence of organised retailing and modern retail formats like convenience stores, supermarkets and hypermarkets. The Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organised retailing formats. The industry is moving towards a modern concept of retailing. India’s retail market is expected to grow at 7 per cent over the next 10 years, reaching a size of US$ 850 billion by 2020. Traditional retail is expected to grow at 5 per cent and reach a size of US$ 650 billion (about 76 per cent), while organised retail is expected to grow at 25 per cent and reach a size of US$ 200 billion by 2020. India has emerged as the fifth most favourable destination for international retailers, outpacing UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney’s Global Retail Development Index (GRDI) 2012. “India remains a high potential market with accelerated retail growth of 15-20% expected over the next five years,” highlighted the report by A T Kearney. Market Size

• The foreign direct investment (FDI)

inflows in single-brand retail trading during April 2000 to March 2012 stood at US$ 44.45 million, according to the latest data released by Department of Industrial Policy and Promotion (DIPP)

• Cash and carry represents an op12 | India Newsletter

portunity worth around Rs 8,250 billion (US$ 148.49 billion) of the Rs 27,500 billion (US$ 494.96 billion) annual retail business in India

• Domestic pharmaceutical retail mar-

ket clocked a robust 15 per cent growth during 2011, mainly driven by therapies like anti-diabetic, vitamin, anti-infectives and dermatology. The domestic pharmaceutical retail reached a new milestone by recording overall sales of Rs 60,000 crore (US$ 10.80 billion) for the year 2011

• The entire textile and apparel in-

dustry in India is expected to grow by 11 per cent to touch Rs 10,320 billion (US$ 185.75 billion) by 2020. Currently, menswear is the major chunk of the market at 43 per cent, according to Technopak Advisors, a retail consultancy

• India’s cosmetic sector has, in fact, emerged as one of the markets holding immense growth potential. The Indian cosmetics market registered impressive sales worth Rs 264.1 billion (US$ 4.75 billion) in 2011, and with rising purchasing power and growing fashion consciousness, the industry is estimated to expand at a compound aggregate growth rate (CAGR) of around 17 per cent during 2011-2015, according to RNCOS latest research report titled ‘Indian Cosmetic Sector Forecast to 2015’


• Online retail business is another

format which has high potential for growth in the near future. India’s eretail industry is likely to touch Rs 7,000 crore (US$ 1.26 billion) by 2015, up from Rs 2,000 crore (US$ 359.97 million) currently, as per an industry body report

• Banks, along with existing e-retail

marts are entering into the discount business on the back of flourishing online purchase of gift items, especially jewellery and flowers. The online shopping marts have made gift purchases easy through a number of their retail members. “The estimated Rs 50,000 crore (US$ 8.99 billion) e-commerce business is growing at an overall 40 per cent. Of this, on-

line flower sector has been rising between 70-75 per cent,” as per Kunal Gothivarekar, Director (Sales) of ICICI Merchant Service, an online shopping venture

• Tesco Hindustan Service Centre

(Tesco HSC) is helping the world’s third largest and Britian’s leading retailer in going global with its e-commerce roll-out. “The user response has been excellent. It is one of the five most visited retail websites and on average processes 500,000 orders a week across its online businesses,” according to Sandeep Dhar, CEO, Tesco HSC

• The gems and jewellery industry has

found a way to shine online. Data compiled by eBay India Guide 2011 suggest that a piece of jewellery is being sold every three minutes on eBay India

Retail in Rural India

• Rural chains in India are focussing

on hinterlands in a big way. For many companies, a large portion of their revenues comes from rural sales. This fact is further making marketers focus their strategies according to customers in rural areas.

• Stronger growth prospects, lesser

competition, higher yields and profitability are making tier-II markets an attractive proposition for financiers, according to a credit rating agency, Crisil. The report expects increasing finance penetration and the entry of more players to drive growth in retail loan demand in tier II cities

• India’s franchise market is growing at a healthy pace with tier II and tier III cities gradually getting attracted to the network of retailers and franchisers. “Franchising in India has witnessed impressive growth of around 30-35 per cent year-after-year over the last 4-5 years with an estimated turnover of US$ 4 billion,” according to Gaurav Marya, President, Franchise India

• Philips plans to develop healthcare

products for rural India-a shift away from its exports-led strategy of the previous years. Going forward, the quantum of products developed

Industry for the Indian markets will go up “exponentially” and the team “will churn out more products for rural India,” as per Srinivas Prasad, Head of Healthcare at Philips Innovation Centre

Government Initiative

• The Indian retail sector accounts for

22 per cent of the country’s gross domestic product (GDP) and contributes to 8 per cent of the total employment. India continues to be among the most attractive investment propositions for global retailers


• International cash and carry chains

in the retail sector plans to expand in India.Walmart, the US$ 446 billion American retail giant, which operates cash and carry outlets in India in a 50-50 per cent joint venture (JV) with the Bharti Group, expects to open 12 to 15 wholesale outlets in 2012

• The Union Ministry of Finance has provided relief to the Rs 18,000 crore (US$ 3.24 billion) software industry by replacing a multi-level structure of tax deducted at source (TDS) on distributors with a single TDS. This would be deducted by the first distributor-one who directly purchases packaged software from a developer

• According to a recent trend, retail

companies such as Carrefour, IKEA, Tesco and Walmart are regularly sourcing well-priced, high-quality products for customers in Western markets from India. Analysts estimate that these four retail majors together source around US$ 3.5 billion-US$ 4 billion from India every year. “India continues to be an important sourcing market,” as per Walmart

• Till now FDI up to 100 per cent was allowed for cash and carry wholesale trading and export trading under the automatic route, and FDI up to 51 per cent was allowed in single-brand products, with prior government approvals. However, the Government recently passed a cabinet note and permitted FDI upto 51 per cent in multibrand retailing with prior Government approval and 100 per cent in single brand retailing thus further liberalising the sector. This policy initiative is expected to provide further fillip to the growth of the sector

• The next generation of India’s retail

environment is favourable for the rise of luxury goods. Watches are growing faster than the broader luxury market. “In watches, there is perhaps a higher level of innovation than other luxury categories,” as per Jean Christophe Babin, CEO, Tag Heuer

• Government is planning to remove

the old tax systems to simplify the

tax calculation and avoid double taxation in Indian retail. New Goods and Service Tax (GST) will simplify the tax structure

• To give an impetus to the FDI space in India, the Government is actively contemplating over allowing foreign airlines to pick 49 per cent stake in domestic ones while proposal for allowing 51 per cent FDI in multibrand retail is continuously being worked upon Road Ahead

• With increasing disposable incomes, expansion of stores and supporting economic factors, India’s retail sector is expected to grow to about US$ 900 billion by 2014, according to a report by global consultancy and research firm, PricewaterhouseCoopers (PwC).

• Consumer markets in emerging market economies like India are growing rapidly owing to robust economic growth. The retail industry is highly competitive because of ever changing consumer preferences and the need for marketing differentiation. The retail enterprises need to focus on costs throughout the consumer value chain because of proliferation of new products and categories and ever increasing demands to optimise value chains.

BIG player

Leading Indian Company in the Industry

As India’s leading retailer, Pantaloon Retail inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. They serve customers in 85 cities and 60 rural loca-

tions across the country through over 15 million square feet of retail space.

Pantaloon operates multiple retail for-

Pantaloon Retail is the flagship company of Future Group, India’s retail pioneer catering to the entire Indian consumption space. Through multiple retail formats, they connect a diverse and passionate community of Indian buyers, sellers and businesses.

ments of the Indian consumer market. As

The collective impact on business is staggering: Around 220 million customers walk into their stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. This number is set to grow.

mats in both the value and lifestyle segmodern retail drives fresh demand and consumption in new categories, their strategy is based on a deep understanding of Indian consumers the products they want, and making these products available in every city in every store format. They are in line with a broad objective of being a catalyst in India’s consumptionled growth and being a positive agent of change in the communities they serve. India Newsletter | 13

Trade Shows

AUTO ANCILLARY SHOW 2012 AUTO CLUSTER EXHIBITION COMPLEX October 18 - 21, 2012 Hall No 5, Mumbai Exhibition Centre


Overseas Indians

Why This Summit? To provide a platform to promote Indian Entrepreneurs / SMEs through NRIs and PIOs in various countries to establish and develop contacts for identifying various opportunities in Exports, Investment, Joint Ventures, Collaborations, New Technology, Marketing, Distributorship, Promotion, Business Alliances and other services.

Indian economy in the 21st century includes all the major factors contributing to rapid all round growth - the strength of intellectual inputs, the unbridled spirit of entrepreneurship and above all the quest for knowledge. India’s private sector, characterized by its dynamic and competitive nature has been a key driver for the economic growth witnessed by India in recent times and has been a major driver for attracting foreign investments in the country. India has continually attracted the largest quantum of investments from its Diaspora. India has now become an open potential market in various growth sectors like Infrastructure, Power, Hospitality, Education and other manufacturing and service sectors. NRI and PIO Businessmen are looking for business opportunities in their home town and also started exploiting opportunities in other parts of India.

Benefits to the Partcipants - Networking with Local and Global Entrepreneurs and SMEs - Interaction with business tycoons - Identify strategic business partners and associates in India and other countries - Explore new business ideas and models - Understanding best business practices and opportunities in India - Interaction with Policy Makers, MDs and CEOs of reputed Companies - Understanding of various investment options and routes in India - Understanding of various policies, schemes and incentives for NRIs -Identify Indian companies for business promotions

India Newsletter | 15




he ancient princely state of Rajasthan gave rise to a royal cuisine. The Rajas who went on hunting expeditions ate the meat or the fowl that they brought back. Even today, Rajasthani princely feasts flaunt meat cuisines that

are incomparable. In contrast are the vegetarian Rajasthanis.Their food cooked in pure ghee is famous for it’s mouth- watering aroma. Rajasthan’s tastiest curries are based on the use of pulses or gram flour. Dry fruits, spices and yogurt are

used in many delicacies. Rajasthan can also boast of a vast array of savouries and sun-dried snacks. Be it dal baati and churma or missi roti , one always ends up licking his fingers. Your tummy will scream “No more !” But you won’t stop !!!

JAIPURI MEWA PULAO RECIPE Dry Fruit Pulao - Jaipur Style


• • • • • • • • • • • •

PREPARATION • Add water in rice and rinse it and drain water from the rice.

2 cups long grained white rice 1 cup ghee 25 almonds, blanched, chopped l/2 cup chironji coarsely ground 1 tsp cardamom powder soaked in 1 tsp milk 25 pistachios(chopped) 1/4 tsp nutmeg powder 4 cups milk 2 cups sugar 1/2 tsp saffron

• Heat ghee and then add the rice and add some milk in it. • Put a cover on the disc and low the burner temperature.

• When the rice get cooked then add cardamom and nutmeg powders, dry fruits, sugar and saffron.

• Then mix this items well. • Put this mixture in a oven for 15 minutes. • Then serve jaipuri mewa pulao hot as a sweet dish.

ALOO MANGODI RECIPE Potato Lentil Curry - Rajasthani Style


• • • • • • • • • • • • • • • • •

200 gms mangodi 2- 3 red chillies whole 2 tblsp bengal gram flour (besan) 1/2 tsp cumin seeds 1/2 cup yogurt 1 tblsp oil 200 gms potatoes200 gms. 1 tblsp red chilli powder 1 tblsp ginger paste salt to taste 2 tblsp coriander powder 1 tsp garam masala powder 1 tblsp coriander seeds 2 tblsp tomato puree 100 gms coriander leaves 1 tsp turmeric powder 1 bay leaf

• PREPARATION • Cream curd, mix in besan and salt, red chilli powder, coriander powder and turmeric powder to it.

• Peel, wash and cut potatoes into 1 centimeter cubes. • Keep aside in water.

16 | India Newsletter

• Dry roast mangodi on hot tawa until crunchy and slightly browned.

• Heat up oil, mix in brown bay leaf, cumin seeds, coriander seeds, whole red chillies and salt and cook.

• Mix in potatoes and stir fry stirring constantly until golden brown.

• Mix in ginger paste, mangodi, tomato puree and yogurt mixture, mix in 1 cup of water and mix well.

• Mix in garam masala powder and cut coriander leaves. • Stir fry for a further few minutes and serve hot.


ARUNACHAL PRADESH Indian State Profile

Right at the top of north-eastern India, crowning its six clustered sisters like a protective helmet, is Arunachal Pradesh, the `Land of the Dawn-lit- Mountains.’ This is the first Indian soil to greet the morning sun. Arunachal Pradesh is India’s largest north-eastern state, and also its remotest.The fascination grows slowly during the two hour journey from the airport in Lilabari, Assam, to the capital of Naharlagun(Itanagar).The drive from Naharlagun to the new capital in the hills, Itanagar metres, is enchanting.The road winds through that magical country where tropical evergreen rain forests meet temperate Himalayan jungles.In the rich tropical forests of the Tirap district, clusters of the beautiful blue vanda (Vanda Coerulea) adorn the trees. Their large blue - violet blooms are delicately veined. The bamboo orchid, Arundina Graminifolia, a pretty evergreen species attractive pink - purple flowers is common in open sunny areas near Tipi.The visitor should stop at the far side of the bridge that spans the Pachim River. There is an attractive village below and to the right of the road leading to Itanagar. Most of the houses are built at ground level but at least one is on stilts. Arunachal has 26 major tribes and many sub-tribes living in 3649 scattered villages. Although a number of tribal groups constitue the total population, the density of population is very less. People are Mangoloid stock but each tribe has certain distinct characteristics in language, dress & costume.Their colourful festivals are manifestations of their faith and belief. The people of Arunachal are the greatest attraction of this beautiful land. And even in the capital at Itanagar, the visitor comes across Nishi warriors wearing their ‘bopiah’ hornbill caps, carrying their ‘chokh’ bearskin bags with their ‘oyjo’ knives in their monkey-skin ‘burkhey’ scabbards. But the visitor should not be misled by their appearance.

India Tourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 Fax: +49 (69) 242949-77

local tribes harvesting


tawang monastery


India Newsletter | 17


INDIAN MOVIE EVENING: RANG DE BASANTI - A Generation Awakens Friday, September 28th, 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 or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Drama / History Directed by: Rakeysh Omprakash Mehra Starring: Aamir Khan, Siddharth Narayan, Sharman Joshi, Soha Ali Khan Released: January 2006 Duration: 157 Minutes Language: Hindi/Urdu/English/Punjabi Subtitles: English Synopsis: A young woman from England comes to India to make a documentary

MAGIC OF INDIAN MUSIC More Information below

about her grandfather’s diary which was written in the 1920s, a time when Indian revolutionaries were fighting for freedom from the British Raj. Owing to a lack of funds, she recruits students from Delhi University to act in her docu-drama. She finds DJ, who passed out five years back but still wants to be a part of the University because he doesn’t think there’s too much out there in the real world to look forward to. Karan, the son of Industrialist Rajnath Singhania, who shares an uncomfortable relationship with his father, but continues to live off him, albeit very grudgingly. Aslam, is a middle class Muslim boy, who lives in the by-lanes near Jama Masjid, poet, philosopher and guide to his friends. Sukhi, the group’s baby, innocent, vulnerable and with a weakness for only one thing - girls.


Every Sunday from Sep. 9 to Nov. 25 (10-18h) | Kunstmuseum Artemons, Hellmonsödt, Linzer Straße 19


More info under Tel.: 0043 699 / 16 68 88 81

embassy’s library

opened mondays and wednesdays from 11am to 1pm For visits outside the opening hours, please contact the information assistant under or 01 505 8666 33 18 | India Newsletter

India Newsletter 09.2012  

India Newsletter published by the Embassy of India, ViennaMore

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