India newsletter 09.2013

INDIA NEWSLETTER www.indianembassy.at

Published by the Embassy of India, Vienna Year 3 • Issue 33 • September 2013

FEAURED INDUSTRY RESEARCH & DEVELOPMENT

India Newsletter • 1

Embassy of India, Vienna

NEWS FLASHES

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The average internet speed in India is expected to jump by over 40 per cent to 1.8 mbps in the next 12 months on the back of investments in highspeed fibre network and affordable data plans.n

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Domestic natural gas production in India is expected to increase from 111 MMSCMD in FY13 to 125 MMSCMD by FY16 and further to 183 MMSCMD

by FY20.n

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The real estate sector in India is expected to contribute 6.3 per cent to the national GDP in 2013.n

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India’s advanced weather satellite INSAT-3D launched on July 26, 2013, has been successfully placed in geosynchronous orbit.n

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Bengaluru is one of the eight largest technology innovation clusters across the world.n

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SaaS-based ERP adoption in India is expected to post a CAGR of 28 per cent over the next five years.n

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The Government of India plans to add fresh power generating capacity of 88,537 megawatt (MW) during 2012-17.n 2 • India Newsletter

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Indian tourist arrivals to Australia stood at 14,300 visitors during June 2013, a 20 per cent increase over June 2012.n The hospitality industry in India received FDI worth US$ 2.32 billion in April 2013.n

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Steel exports from India have crossed the million tonne (MT) mark in three months for the first time at 1.1 MT in April-June 2013.n

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The Government of India has set the production target of 259 million tonne (MT) foodgrains for the year 201314.n

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Between JanuaryJuly 2013, 10,482 visas on arrival (VoAs) have been issued to foreign tourists coming to India, a growth by 36.8 per cent y-oy.n

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Domestic airlines in India registered a 7.25 per cent increase in air traffic in July 2013 at 4.86 million passengers.n

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The investment ceiling for foreign direct investment (FDI) in Asset Reconstruction Companies (ARCs) has been increased to 74 per cent from 49 per cent.n

India added 1.49 million GSM subscribers in July 2013, taking the total GSM user base in India to 672.63 million.n

Foreign direct investment (FDI) in India grew by 22 per cent to US$ 5.39 billion during April-June 2013 from US$ 4.42 billion during the same period last year.n

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The aviation security market in India is expected to touch Rs 31,000 crore (US$ 4.8 billion) by 2015 from Rs 16,000 crore (US$ 2.47 billion) currently.n

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PC shipments from India stood at 3.53 million units during Q2 2013, a 24 per cent growth over Q2 2012.n

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Total electricity generation in India is expected to grow by 5.7 per cent in 2013-14.n

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India is expected to get its first Londonlisted dedicated feeder fund

by September 2013.n

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India has successfully launched its first exclusive defence satellite GSAT-7 from Kourou spaceport in French Guiana. n

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NEWS ARTICLES India to grow at 5.5%, exports outlook optimistic: Sharma

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ommerce and industry minister Anand Sharma hoped that India’s gross domestic product (GDP) would grow by 5.5 per cent during the current financial year and that exports would be better despite the global slowdown.

“Regardless of the GDP numbers released, I am confident that India’s GDP growth will not be less than 5.5 per cent this year” he said while addressing exporters here after inaugurating the new office of the Federation of Indian Export Organisation (FIEO).

Sharma said the country’s economy was facing strong headwinds, but the fundamentals remained strong.

“Higher growth is not an option but an imperative for India.”

The minister added every percentage drop in GDP threatens three million jobs and India cannot simply afford to grow at a slower rate.

India’s growth rate for the April-June quarter slowed down to 4.4 per cent.

“An atmosphere of gloom is being created unnecessarily through speculative hammering and we need to overcome this despondency and negativity,” Sharma said.

The minister based his optimism on the export performance and said despite the worldwide recessionary trends, Indian exports managed to touch $303 billion last financial year, almost double from the $167 billion four years ago. Exports have done well in the first four months of this fiscal and forward bookings of exporters are also encouraging, he added. FIEO members expressed confidence of exports touching $325 billion.

Sharma said the government had taken several measures to push merchandise exports to earn foreign exchange. He said special thrust

has been laid on bringing down the transaction cost to boost trade efficiency. The minister observed that the $ 1.2-trillion investment planned in the infrastructure sector will go a long way in boosting export performance of Indian companies.n

India’s exports show double-digit uptick for first time in 2 years

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ndia exported goods worth $25.83 billion in July, a growth of 11.64 per cent — the best in nearly two years — propelled by higher demand for pharmaceuticals, textiles, chemicals and petrochemicals, and a falling rupee.

A sharp fall in gold and silver imports and a modest decline in the oil bill led to a 6.12 per cent decrease in overall imports, to $38.10 billion in July. Gold and silver imports declined sharply to $2.97 billion during July compared to $4.47 billion in the corresponding month last year following the increase in import duties and other curbs imposed recently by the Government.

The trade deficit narrowed, to $12.26 billion during the month, compared to $17.47 billion during July 2012, bringing some relief to policy makers grappling with a high current account deficit and a weakening rupee.

The Government said it was hopeful the export incentives announced recently, including an increase in the interest rate subsidy for select sectors, would help to keep exports on the growth track for the rest of the fiscal.

Up from the negative zone The relatively high growth in exports , following two months of decline and several months of tepid increases, pulled the overall export figure for the fiscal out of the negative zone. Exports posted a 1.72 per cent growth in the April-July period, to $98.29 billion.

Commerce Secretary S. R. Rao said during a press briefing on Monday that export growth should keep pace in the coming months as recent incentives start showing results.

While the rupee exchange rate was also helping exporters, Rao said a stable currency helps exporters in their long-term contracts.

“Very few exports on spot-price basis. What is important is to have a stable currency. The new incentives announced by the Minister should play out in the next couple of months. We expect exports to be doing slightly better,” he said.

Rao added that the export growth target for the year was 10 per cent, and the country should be doing better over the next few months. The Commerce Department’s continued focus on new markets such as Latin America, Africa and South East Asia, would also help exporters, he said.

Exporters said continued support from the Government was essential. Although the US market was showing definite signs of improvement, demand from the EU was still unstable, they said.

“The pre- and post-shipment credit rates are hovering around 10 per cent, which is very high when compared to interest rates available to our competitors. The Government should re-introduce separate rates of fixed 7.5 per cent for the labour intensive sectors of clothing and textiles,” Apparel Export Promotion Council chief A. Sakthivel said.

“The Government should continue with its reform process and address the issue of availability of credit and transaction cost related matters with the same zeal so that the momentum continues,” FIEO President Rafeeque Ahmed said.

Other imports down too Apart from gold and silver, other products that witnessed an import decline included project goods, vegetable oil, and precious and semi-precious stones.

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Embassy of India, Vienna

Oil imports during July were 8 per cent lower at $13.816 billion, while non-oil imports, at $25.39 billion, were 5.26 per cent lower than the same month last year.

In the April-July period, imports posted a growth of 2.82 per cent to $160.73 billion while the trade deficit stood at $62.44 billion, compared to $59.69 billion last year.

Exports in 2012-13 fell 1.6 per cent, to $300.6 billion, as a slowdown in the global economy reduced demand, while imports increased by a marginal 0.44 per cent to $491.48 billion from $489.31 billion.n

India will cross export target of USD 325 bn in FY14 with ease: FIEO

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he world economy appears to be getting back on its feet as risks from advanced economies has eased with Europe reporting modest growth in last quarter, said M Rafeeque Ahmed, president, FIEO. ‘’Growth in the developing world will remain solid, albeit slower as developing countries grapple with home-grown challenges brought on by capacity constraints in many middle income countries. Global trade, after contracting for several months, is expanding once again,’’ he said.

“We expect that the double digit growth recorded in July will continue with better results from October onwards as order booking position has improved for many sectors. We will cross the export target of USD 325 billion for the current year with ease,’’ Rafeeque Ahmed said. “However, we would like the Government to fix the export target for the next 3 years and keep monitoring the export performance to meet the target.”

The Foreign Trade Policy provisions are also required to be extended beyond 31stMarch 2014 to provide continuity and stability. The sooner it is done would be better for exports.

The availability of credit is a big concern for all particularly for the small & medium enterprises.

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The share of export credit in total exports is constantly on decline and has come down from 19% to 11% in last five years. Exports should be brought under Priority Sector Norms both for Indian and Foreign Banks over 20 branches.

The Interest Subvention Scheme should be extended to all the left over sectors like pharma & chemicals, leather, gems & jewellery, engineering (other than 235 products), etc. The swap facility which provided competitive PCFC should be extended for a period of 3 years with a corpus of USD 20 billion as recommended by Padamanabhan Committee constituted by the RBI. Aggressive marketing should be pursued through an Export Development Fund as suggested by us earlier. The initial corpus equivalent to 0.5% may be provided by the Government and annual corpus may be partially funded by the Government and partially by the exporters by imposing export cess of 0.25%.

Operational problems are affecting exports on day to day basis without any effective redressal in a time bound manner. We would like Cabinet Secretary to head an InterMinisterial Committee to resolve Inter-Departmental issues affecting exports. Similar Committees may be formed at other important export centres.

With a view to exploit the market opportunity gained through FTA and CECA/CEPA, the benefit under Focus Market Scheme and MLFPS Scheme may be enhanced to 5% so that more and more exports take place to these countries/regions, FIEO chief said.

Service sector should be given a push and the SFIS Scrip should be allowed to be transferred or at least should be permitted to be used for paying Service Tax as has been permitted for other scrips under Chapter 3. The domestic sourcing is not happening as the excise issue has not been resolved and supply under various scrips are subject to 6% excise duty which make the scrip

unattractive for domestic sourcing.

The recent changes made in Advance Authorization Scheme calling for exact matching of inputs to be imported as replenishment with the inputs used in exports has caused problem for the industry as represented by the few sectors.

A Committee may be constituted to look into the problem of the industry so that the objective of the Government is met without causing problem to the industry.n

India, Among World’s Largest Rice Hoarders, Might Amass Even More

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ndia is projected to harvest a record-breaking production of crops, including rice, on the back of copious monsoons this year.

That is, in a sense, bad news for the farmer. Already, rice prices in the southern state of Karnataka (of which Bangalore is the capital) are tumbling as farmers have started offloading their hoard on the expectation of a bumper crop.

A bountiful monsoon makes for an unhappy farmer because of poor prices. Monsoon-dependent India registered the highest June-July rainfall of the past decade which was over 17% higher than the 50-year average. A plentiful production of food grains could help ease inflation and lift economic growth.

Then again in India, the world’s second largest producer of rice, a bumper rice crop has other ramifications. Rice stockpiles have reached record levels, similar to a hoard in neighbouring Thailand. In end-July, the government revealed that India has 73.9 million tons of rice and wheat.

The Congress Party-led government last month launched its $22 billion food subsidy program, some say with an eye on wooing the poor ahead of the parliamentary elections in 2014. When endorsed by lawmakers, the program makes highly-subsidized grain available to two-thirds of India’s population. In order to create a buffer for the vast

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requirements of the program, the government’s hoarding is expected to only get more pronounced. India, already amongst the world’s largest rice hoarders, will stash even more.n

and also provide 100% income tax exemption on export income for SEZ units for the first five years.n

Govt eases land requirement norms for SEZ to attract more investors

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overnment has made the special economic zones attractive for the investors by notifying relaxations in the minimum area requirements and easing the exit clause for developers. In line with the announcement made by the commerce and industry minister in April, the amendment in SEZ rules will allow SEZ developers to add one product category on each additional 50 hectares of land.

There will be no minimum area required for IT SEZs, but only a minimum built up area of 1 lakh square meters for the top-7 cities, 50,000 square meters for the next 15 cities and 25,000 square meters for the rest of the cities. “The idea is to give incentives to push these IT SEZs out of the big cities and explore the less dense cities,” said a commerce department official.

Multi-product SEZ’s minimum land requirement has been cut to 500 hectares from 1,000 hectares.

Single product SEZ’s minimum land requirement has been cut to 50 hectares from 100 hectares. Multiservices SEZs will be treated on a par with single-product SEZs, with the minimum area being slashed to half from 100 hectare. This will allow multi-product SEZ developers with a minimum land requirement of 500 hectare to set up multi-services SEZ on an additional 50 hectare of land.

For SEZs to be set up exclusively for electronics hardware, agro-based food processing, biotechnology, handicrafts, the minimum area required will be 10 hectares.

Agro-based food processing SEZs are being introduced following demands by the agrarian states.

SEZs allow duty-free imports or domestic procurement of goods

RBI relaxes norms for nonresident investors n yet another step to attract foreign money, the Reserve Bank of India (RBI) on Friday allowed non-resident investors to acquire shares of listed Indian companies through stock exchanges under the foreign direct investment (FDI) scheme.

The central bank has said such investment will be allowed only if the non-resident investor has already “acquired and continues to hold control” according to the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.

At present, foreign institutional investors (FIIs), qualified foreign institutions and non-resident Indians (NRIs) are eligible to acquire shares on stock exchanges in compliance with FEMA regulations, but they are not permitted to acquire shares on bourses under the FDI scheme.

According to experts, the new regulation will pave the way for foreigners to be treated on a par with FIIs, as they can buy shares in the company they control (in line with the Sebi takeover code regulations) through on-market deals. Earlier, they were allowed to do so only through off-market deals.

“This is a very important step and will have a far-reaching impact,” said Lalit Kumar, Partner at J Sagar Associates.

“This will also have tax implications, as stock market transactions don’t attract capital gains. Also, the move to allow such acquisitions to be funded through dividend paid to NRIs is significant. The move will help attract capital flows into the Indian market,” said Lalit Kumar, Partner at J Sagar Associates.

Such transaction should happen through a registered broker, RBI said in a notification.

Earlier, a non-resident wasn’t permitted to acquire shares on stock

exchange.

Some experts were of the view that the move was a step towards fuller convertibility of the rupee. “This is a step towards full convertibility of the rupee. Right now, we allow repatriation of capital to a select class of investor and in select assets. Now, this window has been opened to even foreign individuals and NRIs. This makes India a more attractive investment destination,” said Sivarama Krishnan, executive director, risk advisory services of consultant firm PwC. The central bank has also laid out certain conditions for the sources of funds for purchase of shares. The amount should be paid by way of inward remittance through normal banking channels, the RBI said. It further said the amount can be paid by way of debit to the NRE/FCNR account of the person concerned or paid by debit to a non-interestbearing escrow account (in rupees) maintained in India.

Luring Foreign Funds ■■ NRIs qualify only if they have “acquired and continue to hold control” under Sebi norms ■■ Foreigners could be treated on a par with FIIs as they get on-marketdeal window ■■ Deals can only happen through a registered broker ■■ Some experts say step a precursor to fuller convertibility of the rupee ■■ Share purchase should be paid by inward remittance through banking channels ■■ Amount can be paid via debit to NRE/FCNR accounts or via debit to non-interest bearing escrow account Further, the consideration amount can be paid out of the dividend paid by Indian investee company, in which the said non-resident holds control. Such dividends, however, should have been credited to specially designated noninterest bearing rupee account for acquisition of shares on the floor of stock exchange.

RBI has also said that the original India Newsletter • 5

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and resultant investments have to be in line with the extant FDI policy and FEMA regulations in respect of sectoral cap, entry route, reporting requirement, and documentation.n

Norms get easier: Global varsities allowed to set up campuses in India without partnering with Indian institutes

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he government has opened the doors for top foreign universities to set up campuses in the country and award degrees, giving Indian students the opportunity to study in global institutions without leaving home or spending a fortune in dollars.

Faced with delays in enacting a law to allow foreign universities to set up base in India, the human resource development ministry has decided to allow the top 400 institutions to enter via an executive order. It is working on regulations under the University Grants Commission Act to let foreign institutions begin operations without an Indian partner, which is currently a requirement.

A 2006 study by the Association of Indian Universities found that over 340 institutes in India were offering courses in collaboration with foreign educational institutes. The move has been lauded by industry leaders and many in the education sector. However, there are concerns that allowing only the top 400 institutions to set up campuses is too restrictive while others doubt if the world’s top universities are waiting to rush in. “I do not expect the best universities to be here immediately,” said NR Madhava Menon, founderdirector of the National Law School, Bangalore.

The proposed UGC (Establishment & Operation of Campuses of Foreign Educational Institutions) Rules require that foreign education providers set up the India campuses as not-for-profit companies, that is companies set up under Section 25 of the old Companies Act (Section 6 • India Newsletter

8 of the new one). The proposal has the support of the department of industrial policy & promotion (DIPP) and the department of economic affairs (DEA). “The ministry had sought comments and observations of DIPP and DEA on the rules. Both have supported the proposal,” the HRD ministry spokesperson said.

The decision has cheered private institutions and industry leaders. “It is a wonderful move to allow reputed international universities to freely come to India, set up campuses and offer degrees. Our students will get exposure to best in-class global education and won’t have to leave the country for that. It will offer competition to local universities and offer greater choice to students,” said TV Mohandas Pai, chairman of Manipal Global Education, and former InfosysBSE -0.69 % director.n

Austrian firm Helioz raising funds for clean water, conduct study in India

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tarting on August 20, Austrian social enterprise Helioz started to raise the funds necessary to prove that millions of people around the world can be granted access to safe drinking water using only the power of the sun and an innovative device called WADI. The money will be collected through the crowd funding platform indiegogo.com and will help finance an unprecedented health impact study in India.

Safe drinking water by using the power of the sun? What may sound like a fairytale stands at the center of the Austrian startup Helioz.

Helioz developed a UVmeasurement device that tracks the progress of solar water disinfection in a PET-bottle. Simply attach WADI to a bottle filled with contaminated water, lay it in the sun and wait for the smiley face to appear.

Thanks to the power of the sun’s UV-rays and WADI’s continuous measurement, you can be sure the water is safe to drink.

Helioz will use the money they raise

on Indiegogo to conduct a scientific health impact study in India, where 400,000 children under the age of 5 die as a result of waterborne diseases each year.

The study aims at proving WADI’s effectiveness by verifying at least a 50 per cent reduction of waterborne diseases by use of WADI. Anyone can join the campaign and be among the first to receive a WADI or even to win a trip to India to take part in the study along with the Helioz team.n

Battenfeld-cincinnati forms strategic partnership with India

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attenfeld-cincinnati has now enlarged its presence in the Wood-Plastic-Composites (WPC) market in India by establishing a strategic alliance with Hardy Smith, Gujarat, India. This strategic partnership will offer local customers ideal solutions for manufacturing innovative WPC products.

In India, WPC profiles and panels are emerging as a popular alternative to wood panels, which are generally scarce and often rather expensive, due to limited wood resources.

Hardy Smith, originally a company of the wood industry, has already been engaged in the WPC project consulting business since 2011.

Hardy Smith offers complete solutions for WPC manufacturing from concept to end product followed by marketing support. battenfeld-cincinnati has been offering custom-built extrusion machinery to manufacture WPC products for more than a decade.

With continuous optimisation of the equipment and further development of the critical process steps, battenfeld-cincinnati meets the demand for high output and improvement in product quality. As a co-founder of the WPC Platform Austria, the company has also become involved in the government funded COIN project, in which nine Austrian companies are pursuing the common goal of improving

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the mechanical attributes of WPC profiles by another 25 per cent and simultaneously achieving a 25 per cent reduction in material costs.n

India Inc’s Europe investments stood at $56 bn in 2003-12

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ndian companies have invested €43 billion ($56 billion) across Europe between 2003-2012, of which €29 billion was mergers & acquisitions of 411 companies.

About €14 billion was invested across 511 projects during the decade, according to a report by the Europe India Chamber of Commerce (EICC), a body that promotes bilateral trade between the European Union and India.

The primary driver behind this investment is the rapid growth of Indian Multinational Corporations (MNC) which is seeking new markets for growth and diversifying risks, access to new technologies, R&D capabilities and leveraging their cash rich positions against low valuations in today’s financial market, it said in the report.

The report – ‘Indian Companies in the European Union: Reigniting Economic Growth’ – also said that Indian companies employ 1.34 lakh professionals in Europe, including 40,000 new jobs created by 511 greenfield investments.

The biggest pan-European employer is the Tata group, which counts about 80,000 employees across its 19 companies in Europe, including the IT giant Tata Consultancy Services.

“Indian Businesses have shown an extremely good track record in turning around troubled companies and that has made their investments even in existing European enterprises as both job protecting and job creating ones,” said Sunil Prasad, Secretary General of the EICC. A dominant 47 per cent of the Indian greenfield investment and 63 per cent of the employment creation was accrued to the United Kingdom

– with which India has strong historic, social and economic ties.

This was followed by Germany, the Netherlands, France, Belgium and Italy – which jointly accounted for 41 per cent of investment and 25 per cent of employment creation.n

Tech centre to promote India-EU relations

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n a bid to increase collaboration among Indian and European companies, the European Business and Technology Centre (EBTC) has launched a new centre in Bangalore.

The centre, an European Union (EU) co-funded venture, will enable Indian businessmen to tie up with European businesses in the areas of clean technology and collaborate in areas of research. For example, an Indian entrepreneur can go to the Bangalore centre and see how the technology works, rather than wait for months to see the product.

This is enabled through video conferencing systems in the EBTC and live interactions with experts are also facilitated, according to EBTC officials.

Clean technology refers to energy efficient technology used in every day lives using renewable materials and energy sources to reduce the use of natural resources and eliminate emissions and wastes. Leena Pishe Thomas, regional manager, EBTC Bangalore, told Business Line that the collaboration aims to open up doors for European companies that are in the midst of a recession but at the same time have growth aspirations.

More opportunities According to Pishe, it would work both ways. “ Despite having good products, high costs coupled with shrinking of existing markets are forcing European companies to look for opportunities in countries such as India and collaborate with Indian entrepreneurs,” she said.

Industry watchers say that Indian companies that are in the business of clean tech will benefit by understanding and collaborating

with European companies for technology, intellectual property and research.

EBTC counts Cambridge Cleantech, European Renewable Energy Council, Fraunhofer Institute as some of its partners.

In Europe, EBTC partners include business and research organisations working on energy, biotech, environment and transport.

EBTC, which has a tie up with the European Investment Bank, will help in arranging finance for projects.

According to 2010 data, trade between India and Europe stood at $74.5 billion. n

UNIDO to significantly expand cooperation with India

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I Yong, Director General of the United Nations Industrial Development Organization (UNIDO), and Saurabh Chandra, India’s Vice-Minister of Commerce and Industry, signed on 6th September, 2013, programme documents to increase the competitiveness of Indian industrial enterprises and to enhance South-South industrial cooperation.

The total budget of the Country Programme 2013-2017 for India, and a second phase of the UNIDO Centre for South-South Industrial Cooperation (UCSSIC) located in New Delhi, will exceed USD 107 million over the next five years.

The signing of the two programme documents highlights the growing partnership and strengthening of industrial cooperation efforts between the Government of India and UNIDO. The Country Programme will transfer new technology, such as the latest energy efficiency and renewable energy technologies, to improve the competitiveness of industrial enterprises in India. It will also increase productivity, quality, and occupational health and safety, and the environmental sustainability of industrial production. All projects will have a strong emphasis on India Newsletter • 7

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sustainable, green industrial development, with a special focus on environmental protection and energy efficiency.

Phase two of the UCSSIC will enhance South-South industrial cooperation and will especially benefit the Least Developed Countries. In its first phase, the UCSSIC developed13 projects in various sectors, such as agro-industry, renewable energy, cluster development and capacity building. The UCSSIC also established institutional networking and capacity building with 12 other developing countries.

In 1966, India was one of the founder members of UNIDO, and UNIDO implemented the first technical cooperation project in India in 1968.

To date, over 400 projects have been completed, with a total budget of over USD 100 million. Currently, 31 projects are being implemented, with more than a dozen more in the pipeline.n

Bilateral agreements with countries to promote tourism

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he Ministry of Tourism, Government of India has signed Bilateral Agreements/Memoranda of Understanding (MoU) with 47 countries, a tripartite agreement between India, Brazil and South Africa (IBSA) and a multilateral agreement between India and Member States of Association of South East Asian Nations (ASEAN) for tourism cooperation, interalia, aiming at destination development, management, promotion, marketing and capacity building. During the last three years and the current year the Ministry of Tourism has signed the following Agreements/ MoUs: ■■ Malaysia (MOU) 27.10.2010 ■■ ASEAN (MOU) 12.01.2012 ■■ Mauritius(MOU) 21.03.2013 Signing of Agreements/ MoUs on cooperation in the field of tourism is an ongoing process. The Ministry regularly takes up the issue of signing of Agreements and MoU’s with the important source markets 8 • India Newsletter

to enhance mutual cooperation in the field of Tourism.

This information was given by the Minister of State for Tourism (I/C) Dr. K. Chiranjeevi in a written reply in the Lok Sabha.n

SMEs plays vital role in the growth of Indian pharma industry

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he pharmaceutical sector of India is heavily reliant on the small and medium enterprises (SMEs), as they form a critical part of the supply chain for the larger players. There are more than 24,000 registered units in the Indian pharma sector, which meet around 70 per cent of the country’s needs.

Small and medium scale units have played a crucial role in the growth story of the Indian pharmaceutical industry and form an integral part of the sector, according to India Micro, Small and Medium Enterprise Report 2013.

SMEs contribute 35-40 per cent to the Indian pharmaceutical industry in terms of production, with a turnover of about Rs 35,000 crore.

The Indian pharmaceutical industry is highly fragmented and estimated to have 9,456 units in the SME segment, which account for around 87 per cent of production by volume and 40 per cent by value, highlighted the report.

Pharmaceuticals product exports from India grew to US$ 14.6 billion in 2012-13 from US$ 6.23 billion in 2006-07, registering a compound annual growth rate (CAGR) of around 15.2 per cent.

The Ministry of Commerce has set a target for Indian pharma sector exports to reach US$ 25 billion by 2014 at an annual growth rate of 25 per cent.

The SME sector is at the forefront in terms of number of units and employment generation. They also support 48 per cent of the country’s pharma exports, as per the report.

Strengths of pharma industry SMEs are mainly focusing on

manufacturing and niche marketing.

Contract Research and Manufacturing (CRAMs) and Biopharma have emerged as areas of high relevance to the MSME sector. It is recognised that these units can effectively address the two critical public expectations viz. cost effective and affordable medicines within the given framework of excellent manufacturing processes, technology, regulatory compliance, distribution system and prices.

On the export front, pharmaceutical SMEs in India have become preferred partners for the supply of active pharmaceutical ingredients (APIs) and finished dosages for Indian as well as foreign pharmaceutical firms, highlighted the report.

Government policy support The Government of India provides tax deduction to promote research and development (R&D).

“SMEs can play a strong role in the R&D area. The sector has been asking for various kinds of fiscal incentives and tax sops in order to stimulate investments in innovations and R&D beyond the current tax deduction,” said Mr Gaurav Khungar, KPMG. The tax reduction demands of SMEs are to the tune of 150 per cent on R&D spend. The Government of India has initiated multiple reforms such as the cluster development programme, technology upgradation fund, credit link capital scheme, amongst others, which have rendered success.

“There’s a pressing need for the state governments, local governments to join hands with the central government and work towards increasing the presence of MSME’s in the ecosystem,” said Mr Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India.n

Luxury retails with a flourish

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he air of confidence that the attendant at the Worli outlet of Swarovski wears sums up the mood at the Austrian company, leaders in precision-cut luxury crystal ware. A delicate piece of Swarovski

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crystal replete with intricate work would cost nothing less than Rs 1 lakh. Despite the steep tag, the attendant says it has been doing brisk business in the last six months.

“On an average I land up having about 75 to 100 customers a month.

This is higher during the festive and wedding seasons when gifting goes up. There is no slowdown that I see,” he says candidly.

Swarovski is not the only luxury brand to buck the slowdown that has hit consumer spending in other segments of the Rs 1.8 lakh crore FMCG industry. At a Gucci store located at the upscale Palladium Mall in Mumbai, the sales executive says its star products - leather handbags with bamboo handles and clutches in anaconda skin - have been flying off the shelf. The average ticket size of these products is more than Rs 1.3 lakh. “I have walk-ins everyday, and more often than not, we manage converting quite a few of them into sales,” he says, choosing not to reveal the number of bags he sells per month.

A similar refrain is heard at a nearby Jimmy Choo outlet. The average ticket size of a pair of Jimmy Choo shoes is Rs 35,000-40,000. Star products and limited-edition collections easily cost a few lakhs, but the sales executive says customers have hardly deserted her store.

“While the rupee has depreciated against the dollar and even the pound in the last three months, customers still prefer buying their products from here rather than London or Dubai because the ticket size is steeper there,” she says.

Since May, the rupee is down over 20 per cent to the dollar. Last week, it came close to touching Rs 70-a-dollar, but inched up following some timely intervention by the Reserve Bank of India. The British pound has already breached the Rs 100-mark. But the rupee rout as well as the sagging health of the economy matters little to the ultraluxe shopper. These high networth individuals have an annual income of Rs 4 crore and above.

A recent Kotak-Crisil study says that the number of ultra-high networth households grew 24 per cent in 2012-13 to 100,900 from 81,000 the year before, with the number expected to triple in five years. This happened even as India’s economic growth hit a 10-year low of 5 per cent in 2012-13.

Luxury retail has a field day Executives at Genesis Luxury, which retails luxury brands such as Armani, Canali, Jimmy Choo, Bottega Veneta in India, says topline growth has been nearly 35 per cent year-onyear. Same-store-sales growth of its exclusive brand outlets were 10-15 per cent, says Sanjay Kapoor, managing director, Genesis Luxury, refering to growth in outlets in business for more than a year.

“Slowdown as a result of the depreciation of the rupee has marginally affected the luxury and premium goods business. Shortterm changes in the economic scenario usually do not affect luxury spending as the consumer in this segment has a high disposable income,” Kapoor says.

Darshan Mehta, chief executive of Reliance Brands, which retails high-end apparel brands such as Ermenegildo Zegna and Paul & Shark, where the median price-point is Rs 15,000, as well as brands such as Diesel and Thomas Pink in the affordable luxury segment, says the company has not seen the impact of the consumer slowdown yet.

While Mehta declined to put a number to the growth he was seeing in his business, industry sources say the company’s same-store-sales growth was over 30 per cent in the last few quarters for most of its exclusive brand outlets.

Uber-luxe lifestyle breezes through The real estate and automobile markets too have seen the luxeeffect. Super-car Lamborghini, which comes for a hefty Rs 3.5 crore and more, continues to sell nearly 20 units a year, with company executives claiming they have not felt the slowdown. The BMW-

owned Rolls Royce, which comes for Rs 2 crore a unit is on its way to achieving the 100-car sales target this calendar year. Aston Martin, another ultra-luxe coveted brand has been comfortably cruising with sales of over 30 units a year.

Herfried Hasenoehrl, general manager, emerging markets - Asia, Rolls-Royce Motor Cars says, “While there is a tendency to hold back purchases in a slowdown, we have not experienced a demand slump for our products. Our products are aspirational. We continue to remain on course to achieving our sales targets in India.”

It is no secret that realty developers have been paying greater attention to luxury homes as buyers defer purchases in the lower- and midend of the market. “Luxury is a unique market. Even in current market conditions, there is good demand for these homes,” says Kruti Jain, director, Kumar Urban Development, a Mumbai-Pune developer. He recently launched a luxury project in Worli named Kumar Coutore priced at Rs 14-16 crore. The project has just 40 apartments. “The response is good. We are looking at selling 20 apartments now and the remaining later,” Jain said.

Gaurav Gupta, director at Mumbaibased developer Omkar Realtors said the company has sold properties of 225,000 sq-ft since pre-launch in February in its super-premium project ‘1973’ in Worli, against the annual target of 250,000 sq-ft. The prices are between Rs 15-100 crore for apartments ranging from 2,50018,000 sq-ft.

Says R Karthik, chief marketing officer, Lodha Group, developers of high-end projects such as The Park, endorsed by actor Aishwarya Rai in Mumbai: “In the luxury residential segment, the response from our customers is extremely encouraging and reinforces our strategy. The interest in luxury housing continues from HNIs in Mumbai and NRIs who are keenly looking for differentiated real estate in the city.”n India Newsletter • 9

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Coca-Cola bullish on longterm growth in India

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oft drinks major Coca-Cola said it would not scale down its proposed investments in India, despite the slowing economic conditions.

The company had announced investments of $5 billion between 2012 and 2020. It said the amount of investment might even go up, in unlocking the growth opportunities in the packaged beverages market.

The company has, so far, invested $2 bn in India. “Our investments in India are on track as we build scale, manufacturing capacity, distribution capability and a robust product portfolio to realise our business goals in India.

The ongoing investment in the country is focused on delivering innovation, partnerships and a beverage portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver longterm growth,” said Ahmet C Bozer, president, Coca-Cola International.

Adding: “If we continue to focus on doing the right things in this market, India could emerge as a top-five market for the Coca-Cola Company by 2020.”

At present, India is its seventh largest market. Coca-Cola has completed 20 years of operations in India since its return after it exited the country in the late 70s. The company inaugurated a franchisee bottling plant at Greater Noida on Thursday. It now has 57 plants in India, of which 22 are franchises, 23 are company-owned and 12 are contract packaging units. The new plant would be owned and operated by Moon Beverages, which has invested Rs 140 crore in setting up the plant.

Coca-Cola has registered volume growth in India for 28 consecutive quarters, 19 of which have seen double-digit growth.n 10 • India Newsletter

German Railways group lays tracks to expand India investments

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he €39-billion Deutsche Bahn Group, or the German Railways, has identified India as a place for future investments, Reiner Allgeier, Managing Director, DB Schenker Logistics (India), a group company of Deutsche Bahn, told Business Line.

He, however, declined to divulge details.

DB Schenker Logistics, the service providing arm of DB Group, will expand its presence in India.

“This year, we will grow our footprint by 50 per cent — from 1.3 million square feet in the beginning of the year to two million square feet by year-end,” Allgeier said.

The firm manages exports and import of goods, and within India, it functions primarily in the contract logistics space, which includes managing warehousing and distribution business. DB Schenker’s customers belong to the hi-tech goods, engineering machinery, automotive, retail and healthcare segments.

Staff strength It has a staff strength of about 2,200 in India, of which, 1,200 are on contract. The staff strength will go up, but not at the same rate as expansion in footprint, the company said.

While the firm has seen its exportimport business from India stagnating, it expects the intra-India business to grow. “The export and import business has stagnatedwith imports going down. But, in our export ocean freight, we have been able to increase our volume this year compared with last year, which is good given the market conditions.

Also, in intra-India logistics business, which is contract logistics, we are seeing growth,” Allgeier said.

Export-import In the export-import segment, DB Schenker handles about 80,000 tonnes of air cargo and 79,00080,000 twenty foot equivalent unit (TEU) of ocean containers a year.

“The contract logistics market in India is growing at 10-15 per cent, as companies are increasingly outsourcing their logistics and warehousing functions. We are registering better growth,” said Allgeier.

Allgeier added that India plays a major role in DB Schenker’s global network. “Our global head office, which is in Germany, and our mother company, the DB Group, has also identified India as a growing market and as a place for future investments,” he said.n

Manchester United signs Apollo Tyres as its

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aking apparent its global ambitions, India’s second largest tyre maker Apollo TyresBSE -1.51 % on Wednesday announced that it is tying up with Manchester United, to become the football club’s ‘official tyre partner’ in UK and India.

The company did not disclose the financial consideration of the tie-up.

The new initiative with Manchester United will see Apollo produce football based play zones constructed from used tyres.

These rubber-based pitches will be open to young people from local communities in the UK and India, with the aim of encouraging them to take up sports and have a more active lifestyle.

While the Apollo Tyres logo would not sport on the Manchester United Jersey, the Indian company’s logo will be there on the club’s website and Apollo Tyres will be free to use certain players of Manchester United for their marketing and promotion campaign.

The Indian tyre maker’s global ambitions took a huge leap when it announced in June, its plan to acquire US -based Cooper Tire for $2.5 billion.

Speaking about the tie-up, Onkar S Kanwar, chairman, Apollo Tyres Ltd said, “This is a very important partnership for us as a company and clearly demonstrates our global ambitions for our business,

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and the brand. Very few sports platforms deliver a global profile and awareness and we believe the impact of this relationship will be significant in helping to make Apollo a globally recognisable brand.”

A key element of the partnership will be a joint community commitment to encourage healthy lifestyles and develop sporting skills in young people. Drawing on the company’s heritage and established CSR programmes.

Prior to Cooper Tire acquisition, Apollo earned 65% of its revenues from India, 23% from Europe and 13% from rest of the world, but post the acquisition the revenue from the three geographies will change. On the completion of the acquisition, Apollo will get 43% of its turnover from North America, 22% from India, 18% from China, 12% from Europe and balance from the rest of the world.

A tyre industry analyst on a condition of anonymity said, “With the kind of widespread distribution, Apollo Tyres will have to look at taking the brand on a global scale. The tie-up with Manchester United is a step in that direction. With this tie-up, they can leverage on Manchester United’s strong fan following in India and UK.” The analyst however cautioned that the move would definitely help the company in building the brand, but they will have to do it in a very cost effective way, considering the debt on its book post the Cooper acquisition.

To be sure, while India comes 10th as a country that loves Football in a global study, another Nielsen survey in 2010 found that 47% of India’s 1.2 billion population would describe themselves as football fans.

Not only will Apollo and the football club provide kids with a safe soccer pitch but will get kids “offline” again, playing and socializing outside & motivating and triggering kids to get active, work on their soccer skills based upon the 10.000 Hour Rule to mastery and health.

The first of these pitches will be built

within the grounds of Old Trafford and include some specific Apollo ‘Go The Distance’ skills challenges, before they are rolled out across the country and then in other markets around the world, the company said.

According to Alpana Parida, president at DY Works, a leading brand firm, it is a smart move by Apollo Tyres. The tie up will attract attention of young male audience, who is increasingly interested in football.

“It is a brilliant move. Rather than simply rubber stamping the logo, Apollo is actually engaging with audiences with such grassroots initiative, which will have a greater impact on the brand image. The tieup has a potential to build deeper relationship with young people. It will pay off for the brand and this could lead to customer acquisition instead of just customer awareness and builds a long term relationship with the brand,” added Parida.

Kanwar expressed pride of introducing a new healthy living initiative under our corporate social responsibility (CSR), to create new play zones for the youth in the UK and India. “In its aim to stimulate the next generations to go the distance, this association really brings to life our brand values of high performance, quality and excellence,” added Kanwar.

Commenting on the tie-up, Manchester United Group MD, Richard Arnold said, “Apollo Tyres is a leading player in the tyre industry and its rate of growth and development into new territories made it an attractive partner for the Club. With a combined fan base close to 46 million followers in both the UK and India, we are confident in providing Apollo with a captive audience.

“This partnership will allow Apollo not only to promote its brand, but also to engage and communicate with our fans, like we observed today with the skills demonstration.

“Manchester United is dedicated to youth investment and development, whether through our Academy or via

the work we do in the community,” added Arnold.n

Indian telecom subscriber base crosses 90 crore-mark in May

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egistering a marginal growth, Indian telecom subscriber base crossed 90 crore-mark in May this year after almost two years.

The base grew by 0.34 per cent to reach 90.005 crore, according to Trai data.

This is the second time the subscriber base is breaching the 90 crore-mark.

Earlier in June 2012, it had touched 96.55 crore. Since then the base has been shrinking steadily. The first time it crossed the 90 crore-mark was in September 2011.

“The number of telephone subscribers in India increased to 900.05 million at the end of May, 2013 from 897.02 million at the end of April 2013, thereby showing a monthly growth rate of 0.34 per cent,” TRAI said in a report today.

Mobile or wireless subscriber base increased from 86.7 crore in April 2013 to 87 crore at the end of May 2013, registering a monthly growth of 0.37 per cent.

Reliance Communications led the growth in mobile business by adding over 12 lakh new customers, followed by Vodafone with over 9 lakh new customers, Idea Cellular 8.67 lakh, Airtel 8.51 lakh, Aircel 2.77 lakh new customers.

New operator Videocon saw maximum growth in percentage terms during the month. The mobile subscriber base of Videocon grew by 6.79 per cent to 22.85 lakhs in May from 21.39 in previous month.

State-run BSNL and MTNL lost 9 lakh and 97,583 customers respectively in May taking their total customer base to 9.80 crore and 48 lakhs respectively.

Bharti Airtel maintained its lead in overall market share with total subscriber base of over 18.96 crore.

Airtel leadership was followed by Vodafone with over 15.46 crore India Newsletter • 11

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customers. RCom and Idea Cellular’s total customer base stood very close to each other at 12.48 crore and 12.37 crore respectively.

Of the total 87 crore mobile subscribers, 72.7 crore were active on the date of assessment was done for the month of May 2013, TRAI said. The fixed or wireline segment growth declined from 2.99 crore at the end of April 2013 to 2.98 crore at the end of May 2013 mainly due to BSNL losing 1.49 lakh customers.

Vodafone, however, emerged as top gainer during the month by adding 3,510 new fixed line customers.n

Tata Steel to launch 30 new products in Europe this financial year

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ata Steel is set to launch 30 new products in Europe this financial year. “We launched 17 steel products in the European market in FY13 and we will launch 30 more products this year,” Chairman Cyrus Mistry said at the company’s 106th annual general meeting here on Wednesday.

In Europe, demand for steel has been declining since Tata Steel acquired

Corus, now Tata Steel Europe, in 2007. Following the acquisition, Tata Steel has about 45 subsidiaries. “We plan to rationalise the subsidiaries acquired,” Mistry said. The company also planned to increase steel deliveries to customers in the small and medium enterprise segment, Mistry added.

Tata Steel has commissioned a three-million-tonne (mt) plant in Jamshedpur. On the first phase of another three-mt plant in Kalinganagar, Odisha, it has spent Rs 10,000 crore so far. The plant was scheduled to be commissioned in the latter part of FY15, Mistry told shareholders at the meeting.

The company reported a consolidated net profit of about Rs 1,000 crore for the quarter ended Jun, primarily owing to high deferred tax.n

Increase in the Number of Foreign Tourist Visits in the Country

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he number of foreign tourists visiting India has shown a steady increase in the past three years. The

number of foreign tourist visits has increased to 207.31 lakh in 2012 as compared to 194.97 lakh in 2011 and 179.10 lakh during 2010. This shows an increase of almost 16 per cent in the past two years.

The highest number of foreign tourists inflow was recorded in Maharashtra at 51.20 lakh followed

by Tamilnadu at 35.62 lakh and Delhi at 23.46 lakh in the year 2012.

The Foreign Exchange Earnings (FEEs) from tourism has also shown a significant growth rising to Rs.94,487 crores in 2012 as compared to Rs.77,591 crores in 2011 and Rs.64,889 crores in 2010. This marks an increase of around 46 per cent in the three year period from 2010 to 2012. The Foreign Exchange Earnings (FEEs) is estimated as Rs.50,448 crores in the period January to June, 2013.

The number of Domestic Tourist Visits(DTVs) to States/UTs has also shown an impressive growth of around 39 per cent in the past three years. The number of DTVs in 2012 is estimated at 103.64 crores as compared to 74.77 crores in the year 2010. n

INTERVIEW is bullish on the Indian real estate sector.

With big plans to expand the Trump brand name in India, he is exploring strategic tie-ups with luxury home developers in Mumbai and Delhi. In an e-mail interview with Business Line, Trump gives a glimpse of things to come.

Q: What was the idea behind entering the Indian real estate market by lending your brand name as compared with entering as a developer?

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merican real estate magnate Donald Trump, Chairman and President of The Trump Organisation, who is gearing up for the Republican Presidential nomination in 2016, 12 • India Newsletter

A: India is a unique market requiring a customised hands-on approach.

With a local partner, we believe our India growth plans will be achieved. Our focus is on identifying experienced local developers who share our vision for delivering the

best luxury projects.

Q: Do you see long-term business prospect in India’s real estate market by going beyond brand licencing into real estate

There is tremendous long-term potential for luxury products in India

By American real estate magnate Donald Trump, Chairman and President of The Trump Organisation

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development? If yes, could you provide a glimpse of your future plans for the same?

A: There is tremendous long-term potential for India and we look forward to expanding our brand with additional luxury projects soon.

Q: Are you exploring opportunities to extend your brand licence arrangement to other sectors or projects in India in the future?

A: The growing demand for luxury products in India is a well-known fact and India has always been

an important growth market for Trump. The brand adds significant value to ultra-luxury developments.

Globally, we have a track record of delivering the best in luxury real estate across all verticals — be in residential, hotel, commercial, retail or golf. We believe that India holds great potential on many levels and are excited about the many opportunities here. We have set the standard and will continue to exceed expectations with all of our developments, including Trump Towers Pune.

Q: In the future, would you be looking to target medium range projects as well?

A: Trump represents the gold standard of luxury and we will continue to deliver that promise in every market that we enter. Trump branded projects have always been associated with the world’s premier real estate. Our buildings are known for their spectacular views, prime locations, luxurious amenities and incredible service. With each of our properties, we continuously raise the bar of superior luxury living. n

INDUSTRY The Indian Research and Development Industry

Indian R&D Sector and Global Impact

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here is a growing trend of MNCs setting up their R&D centres in India with the objective of experimenting with their next generation business models, and developing cost efficient sustainable solutions. In the last one year, India has witnessed around 20 new European corporations' engineering R&D centres being established.

India and UK have announced 12 new R&D collaborations in the fields of advanced manufacturing, smart energy grids and energy storage.

The new research grants involve over 30 industry partners from both the countries, contributing over 1 million pounds (US$ 1.54 million) to the projects. “These projects will build on this already strong relationship, boosting collaboration between researchers and industry in advanced manufacturing and energy infrastructure,” highlighted Mr David Willetts, Minister for Universities and Science, UK. A memorandum of understanding (MoU) has been agreed upon - by the Natural Environment Research Council (NERC), UK and the Earth System Science Organsation (ESSO), Ministry of Earth Sciences (MoES), India - to facilitate cooperation between UK and the Indian earth system, science and environmental

ndia is fast emerging as a major destination for high-end research & development (R&D) projects for multinationals across the globe.

The country is home to a lot of top corporate R&D investors across sectors such as automotive, industrial machinery, information technology (IT), pharmaceuticals and biotech. The presence of these multinationals is leading to a rapid integration of India into the global research system.

India Inc is ranked at the topmost position worldwide in terms of growth in research and development (R&D) investments, highlighted a study by the European Commission.

In terms of their absolute annual R&D investments, there are 14 Indian companies that have made it to the top 1,500 entities globally.

India currently has nearly 750 captive centres of foreign MNC, out of which some 350 are for engineering R&D. The value of India's engineering R&D sector is estimated to be around US$ 10 billion currently and is forecast to rise to US$ 45 billion by 2020, according to an estimate by the National Association of Software and Services Companies (Nasscom).n

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research communities.

Indian Space Research Organisation (ISRO) plans to launch the country's first navigation satellite - Indian Regional Navigation Satellite System-1A (IRNSS-1A) - on July 1, 2013. ISRO also plans to have a constellation of seven satellites under IRNSS by 2014-15.

The services sector which includes R&D, testing and analysis besides other related segments attracted foreign direct investments (FDI) worth US$ 37,235 million between April 2000 to March 2013, an increase of 19 per cent to the total FDI inflows in terms of US$, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).n

Key Developments and Investments

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srael has entered into a cooperation agreement with Karnataka to further bilateral business, technology, and economic relations.

The agreement will facilitate financial support worth millions of dollars for cooperative R&D projects in the coming years.

India's Mars Mission, scheduled to be launched in November 2013, will call for collaboration between National Aeronautics and Space Administration (NASA) and ISRO. Ahmedabad has put into place a India Newsletter • 13

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first-of-its-kind - Heat Action Plan, making it the first city in South Asia, to create a comprehensive early warning system and preparedness plan for extreme heat events fuelled by climate change.n

Some of the major investments ■■ Tata Industries and Ramot at Tel Aviv University (TAU) have entered into a strategic memorandum of understanding (MoU) to fund and generate leading-edge technologies ■■ Dutch company Koppert has partnered with Namdhari Fresh to develop crop protection solutions suitable to Indian conditions. “We see there is a huge demand for natural and biological solutions in India and the market in which the majority of the population is vegetarian,” said Mr Robert Pathuis Director, Koppert ■■ Huawei will set up a R&D centre at an investment worth Rs 813 cr (US$ 138.27 million) in Bengaluru by the second half of 2013 ■■ Yamaha Motor Co (YMC) has announced to set up its fifth global R&D centre - Yamaha Motor Research & Development India at its Greater Noida facility ■■ Kyocera Documents India plans to set up a R&D facility in India with an investment of about Rs 100 crore (US$ 17 million) in the next 3 years ■■ BHEL's investment in its R&D wing increased to Rs 1,248 crore (US$ 212.45 million), up 4.1 per cent over the previous year ■■ On back of rapidly growing local R&D, Hero MotoCorp is setting up a technology and integrated R&D

14 • India Newsletter

centre in Jaipur at an investment of Rs 400 crore (US$ 68 million) ■■ Shilpa Medicare’s facility, a special economic zone (SEZ) at Pharma Park, Jadcherla in Andhra Pradesh is now functional. The new facility will deal with contract research and forward integration of its own formulation (i.e. manufacturing of oral and injectible onco-products) n

Government Initiatives

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nnovation capacity is the driving force behind the country’s growth and competitiveness. A strong interaction between R&D activities and business fosters the dynamics of innovation generation. India plans to set up a dedicated Rs 5,000 crore (US$ 850.34 million) fund – India Inclusive Innovation Fund – to boost scientific innovations that can improve the life of the common man. The Union Government will initially contribute Rs 100 crore (US$ 17 million) to this fund, said Mr P Chidambaram, the Finance Minister.

A new Science, Technology and Innovation policy was unveiled by Dr Manmohan Singh, the Prime Minister of India. The policy aims to increase the number of full time equivalent of R&D personnel in India by at least 66 per cent of the present strength in five years.

Under the Union Budget 2013-14, a sum of Rs 4,727 crore (US$ 803.91 million) for medical education, training and research has been allocated. In addition, Rs 3,415 crore (US$ 580.78 million) for agricultural research and Rs 200 crore (US$ 34 million) will be set apart to fund organisations that will scale up Science and Technology (S&T)

innovations.

The Union Budget 2012-13 had proposed to extend weighted deduction of 200 per cent for R&D expenditure in an in-house facility for a further period of five years beyond March 31, 2012.

Moreoer, the Government of India through a circular has clarified that any R&D activity embedded in engineering and design would be eligible for tax holiday. The circulars provide specific guidelines on when an Indian development centre can be treated as ‘contract R&D’ thereby entitling it to operate on a costplus model of compensation, and not the Profit Split Method (PSM) methodology.n

Road Ahead

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ndia with its highly talented human resource, strong engineering talent and an investor friendly government is focusing on research based innovation and implementation of quality new ideas for growth and progress. To drive sustained innovation, it is important to ignite the spirit of innovation and foster an innovation life cycle.

Innovation and R&D can become the focus of India’s growth story. The need of the hour remains in thinking out of the box and work in new ways with new partners to harness emerging and potential markets.

Indian organisations can benefit from adopting an open innovation philosophy. The importance of India as a market, and the competitiveness of Indian companies in global markets have made them valued partners of specialised global, independent technology suppliers. n

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

Import and Export Licensing Procedures in India India’s import and export system is governed by the Foreign Trade (Development & Regulation) Act of 1992 and India’s Export Import (EXIM) Policy. Imports and exports of all goods are free, except for the items regulated by the EXIM policy or any other law currently in force.

Registration with regional licensing authority is a prerequisite for the import and export of goods. The customs will not allow for clearance of goods unless the importer has obtained an Import Export Code (IEC) from the regional authority.n

Import Policy The Indian Trade Classification (ITC)Harmonized System (HS) classifies goods into three categories: ■■ Restricted ■■ Canalized ■■ Prohibited Goods not specified in the above mentioned categories can be freely imported without any restriction, if the importer has obtained a valid IEC. There is no need to obtain any import license or permission to import such goods. Most of the goods can be freely imported in India.

Restricted Goods Restricted goods can be imported only after obtaining an import license from the relevant regional licensing authority.

The goods covered by the license shall be disposed of in the manner specified by the license authority, which should be clearly indicated in the license itself. The list of restricted goods is provided in ITC (HS). An import license is valid for 24 months for capital goods, and 18 months for all other goods.n Canalized Goods Canalized goods are items which may only be imported using specific procedures or methods of transport. The list of canalized goods can be found in the ITC (HS). Goods in this category can be imported only through canalizing agencies. The main canalized items are currently petroleum products, bulk agricultural products, such as grains and vegetable oils, and some pharmaceutical products.

Prohibited Goods These are the goods listed in ITC (HS) which are strictly prohibited on all import channels in India. These include wild animals, tallow fat and oils of animal origin, animal rennet, and unprocessed ivory.n

Export Policy

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ust like imports, goods can be exported freely if they are not mentioned in the classification of ITC (HS). Below follows the classification of goods for export: ■■ Restricted ■■ Prohibited ■■ State Trading Enterprise

Restricted Goods Before exporting any restricted goods, the exporter must first obtain a license explicitly permitting the exporter to do so. The restricted goods must be exported through a set of procedures/conditions, which are detailed in the license.

Prohibited Goods These are the items which cannot be exported at all. The vast majority of these include wild animals, and animal articles that may carry a risk of infection.

State Trading Enterprise (STE) Certain items can be exported only through designated STEs. The export of such items is subject to the conditions specified in the EXIM policy.n

Types of Duties

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here are many types of duties that are levied in India on imports and exports. A list of these duties follows below: Basic Duty Basic duty is the typical tax rate that is applied to goods. The rates of custom duties are specified in the First and Second Schedules of the Customs Tariff Act of 1975. The First Schedule contains rates of import duty, and the second schedule contains rates of export duties. Most of the items in India are exempt from custom duty, which is generally levied on imports.

The first schedule contains two India Newsletter • 15

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rates: Standard rate and preferential rate. The preferential rate is lower than the standard rate. When goods are imported from a place specified by the central government (CG) for lower rates, the preferential rate is applicable. In any other case, the standard rate will be applicable. If the CG has signed a trade agreement with the country of origin, then the CG may opt to charge a lower basic duty than indicated in the first schedule.

Additional Customs (Countervailing Duty)

Duty

In addition to the basic duty on imported goods, a countervailing duty is also applicable to imported goods. The rate of duty is equal to the rate of excise applied to goods manufactured in India. If the article is not manufactured in India, then goods of a similar nature are used to determine the correct duty amount.

If there are different rates of duty on similar goods, then the highest rates of the known products will be applied to the article in question.

Additional Duty (VAT) The CG may levy an additional duty equivalent to sales tax or VAT charged on sale/purchase in India.

The rate cannot exceed 4 percent.

However, the additional duty shall be refunded when the imported goods are sold if the following conditions are satisfied: ■■ The importer pays all the custom duties; ■■ The sale invoice shall bear the indication that the credit of such duty shall not be allowed; and ■■ Importer shall pay VAT/sales tax on the sale of these goods.

Anti-Dumping Duty The CG may impose an anti-dumping duty if an article is imported to India at less than its normal price, and will 16 • India Newsletter

notify the importer if they decide to do so. The amount of duty cannot exceed the margin of dumping.

The margin of dumping means the difference between the export price and the normal price.

The notification issued by CG in this regard shall be valid for five years.

The period can be further extended.

However, the total period cannot exceed 10 years from the date of first imposition.

Countervailing Duty on Subsidized Articles A countervailing duty is a tariff applied to imported goods to neutralize the effect of a subsidy from the country of origin. If any country grants subsidies on any article to be imported to India, whether directly from the same country or otherwise, then the CG may impose a countervailing duty equal to or less than the subsidy itself. However, the duty will not be imposed if the the article is subsidized for the following reasons: ■■ Research activities conducted by person engaged in manufacturing or export ■■ Assistance to disadvantaged regions in destination country ■■ Assistance in adaptation of existing facilities to new environment requirements.

The notification issued by CG in this regard shall be valid for five years and possibly subject to further extension. However, the total period cannot exceed 10 years from the initial date of imposition.

Safeguard Duty A safeguard duty is a tariff designed to provide protection to domestic goods, favoring them over imported items. If the government determines that increased imports of certain items are having a significantly

detrimental effect on domestic competitors, it may opt to levy this duty on those imports to discourage their proliferation. However, the duty does not apply to articles imported from developing countries. The CG may exempt imports of any article from this duty. The notification issued by CG in this regard is valid for four years, subject to further extension. However, the total period cannot exceed 10 years from the date of first imposition.

Protective Duties In addition to safeguard duties, the CG also bolsters domestic industries using protective duties.

Should the Tariff Commission issue a recommendation for a protective duty, the CG may impose on any goods imported to India a protective duty to provide protection to domestic industry.

The duty cannot exceed the amount proposed in the recommendation.

The CG may specify the period up to which protective duty shall be in force, reduce or extend the period, and adjust the effective rate.

Education and Higher Education Cess The education cess, simply put, is a tax designed to fund education and healthcare initatives. An education cess at the rate of 2 percent and higher education cess of 1 percent are levied on the aggregate of duties of customs. However, the aggregate of customs duties does not include the safeguard duties, countervailing duty on subsidized articles, antidumping duty, or countervailing duty equivalent to VAT. Valuation Customs duty is payable as a percentage of ‘Value’ which is known as ‘Assessable Value’ or ‘Customs Value.’ The Value may be either:

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■■ ‘Value’ as defined in Section 14 (1) of the Customs Act; or ■■ ‘Tariff Value’ described under Section 14 (2) of the Customs Act. Tariff Value – the Tariff Value is fixed by the Central Board of Excise & Customs (CBEC) for any class of imported goods or export goods.

Authorities will consider the trend of value of the goods in question while fixing tariff value. Once fixed, the duty is payable as a percentage of this value.

The value of imported goods for the assessment of duty is determined in accordance with the provisions of Section 14 of 1962 and the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

According to the rules, the assessable

value equal the transaction value of goods as adjusted for freight and cost of insurance, loading, unloading and handling charges.

In the assessable value, the following criteria are included: ■■ Commission and brokerage; ■■ Cost of container, which are treated as being one with the goods for customs purposes; ■■ Cost of packing – labour or materials; ■■ Materials, components, tools, etc. supplied by buyer; ■■ Royalties and license fees; ■■ Value of proceeds of subsequent sales; ■■ Other payment as condition of sale of goods being valued;

■■ Cost of transport up to place of importation; ■■ Landing charges; and ■■ Cost of insurance The following costs are excluded from the assessable value: ■■ Charges for construction, erection, assembly, maintenance or technical assistance undertaken after importation of plant, machinery or equipment; ■■ Cost of transport after importation; ■■ Duties and taxes in India; and ■■ Types of duties on exports and imports in India are covered in the Customs Tariff Act 1975. The Act provides all the laws and regulations related to customs in India.

TRADE FAIRS INTERESTED IN VISITING A TRADE SHOW IN INDIA? In case your company is interested in visiting a tradeshow/B2B event in India, be it one listed here or another one that came to your attention, get in contact with us via marketingofficer@indianembassy.at to get more information about possible assistance/subsidies.

India Newsletter • 17

Embassy of India, Vienna

18 • India Newsletter

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

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

policy and Promotion, Ministry of Commerce & Industry) and State Governments of India (0.5% each), its mandate is to become the first reference point for the global investment community.

It provides granulated, sectorspecific and state-specific information to a foreign investor, assists in expediting regulatory approvals, and offers hand-holding services. Its mandate also includes assisting Indian investors make informed choices about investment opportunities overseas.

India Newsletter • 19

Embassy of India, Vienna

TOURISM Body Mind and Soul Constraints of modern medicine have led to a growing interest in ancient proven healing methods.

Western medicine believes that a person becomes sick because he or she contracts a disease. Each disease is seen as an independent entity that can be fully understood without regard to the person it afflicts or the environment in which it occurs.

Thus, conventional treatments are treatments of diseases, not of people. In contrast to this system of medicine, traditional systems of healing in India, as in other ancient cultures, approach sickness as a dynamic event in the life of an individual. It is the result of disharmony between the sick person and his or her environment.

The therapeutic focus is always on the person who is ill and the context in which the illness occurs, rather than on the disease itself.Today, one can choose from various systems of alternative medicine such as: ■■ Ayurveda It literally means ‘the science of living’, Ayu meaning life and Veda meaning knowledge. It is a system of medicine that provides guidance regarding food and lifestyle so that people can maintain an optimum state of health.Ayurveda aims at removing the cause of illness and not just curing the disease itself.

Based solely on herbs and herbal compounds, Ayurvedic remedies do not operate against the body’s metabolism. Their effect is registered gradually resulting in minimum side effects.

■■ Pancha Karma This therapy is designed to achieve an increased efficiency of medicines, foods and rasayanas (tonics). Before medicine, food or rejuvenative tonics are taken, it is essential that the body becomes receptive and that the accumulated wastes and toxins are eliminated. Ayurveda 20 • India Newsletter

advises undergoing Pancha Karma during seasonal changes to keep the metabolism strong and restricting toxins from accumulating in the mind and the body.

■■ Meditation It is a safe and simple way to balance a person’s physical, emotional and mental states. During meditation, the body gains a state of profound rest. At the same time, the brain and mind become more alert, indicating a state of restful alertness.

■■ Aromatherapy Our sense of smell works at a subconscious level. Olfactory nerves conduct smell sensations to a part of the brain which also regulates and controls our moods, emotions, memory and learning. Essential oils are contained in plants. Some oils are relaxing, some soothing and some pain relieving.

■■ Homeopathy Dissatisfied with the common medical practices of the time, Dr. Samuel Hahnemann sought to create a system of gentler healing.

He began creating a new system using plants, minerals and animal substances, combining them into energetic compounds. With these substances, he stimulated and encouraged the body’s natural healing forces of recovery.

■■ Tibetan Medicine The traditional medical system of Tibet uses an ancient form of medicine known as Gs o-wa Rigpa or “The Knowledge of Healing” whose origins are believed to be based on the teachings of the Buddha.

■■ Siddha The origin of this system of medicine is associated with the desire of saints who realised that a good physical body, free from disease was required to attain eternal bliss.

■■ Yoga Yoga is a system of exercises for phy s ical and mental well being. It combines stylised poses with deep breathing and meditation. The ultimate aim in yoga is to unite the human soul with the universal spirit.

There are others like Gem Therapy and many more forms of taking care of your body, mind and soul.

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India Newsletter • 21

Embassy of India, Vienna

INDIAN MOVIE EVENING AT THE EMBASSY Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at, via email under infoasstt@indianembassy. at or via phone at +43 1 505 866633 (Ms. Lily John).

Mission Liebe - Ek Tha Tiger Ek Tha Tiger is a romantic thriller which tells the story of a Trinity College scientist suspected of selling missile technology secrets to Pakistan. The Indian government sends a secret agent, codenamed Tiger (Salman Khan), to find out about the professor’s activities. Tiger falls in love with the professor’s caretaker Zoya (Katrina Kaif ) who is studying at a fictional dance academy located at TCD, and together they embark on a rollercoaster journey that takes them from Dublin to Istanbul then to Kazakhstan and Chile.

■■ Director: Kabir Khan ■■ Stars: Salman Khan, Katrina Kaif, Ranvir Shorey ■■ Genre: Action | Romance | Thriller ■■ Duration: 132 min ■■ Release Year: 2012 ■■ Language: Hindi ■■ Subtites: German

Showtime September 27th, 18:00 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna)

22 • India Newsletter

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INDIA IN AUSTRIA

India Newsletter • 23

Embassy of India, Vienna

FEEL YOUR SPIRIT 3 Vienna’s Festival for Spiritual Music & Ethnic Dance

Furthermore the festival features gifted young Polish dancer Kinga Malec who studied Indian dance form Kathak for many years in India, Russia-born Soprano Tatiana Samoylova-Raff, handicraft stalls, Indian food, Mehndi hand painting and free Yoga introduction by trained Yoga teachers.

■■ When Saturday, 28th September 2013 – 14:00 - 24:00 (Main Program start: 19:00) ■■ Where Haus der Begegnung Donaustadt (neben Donauzentrum) Schrödingerplatz 1/ Bernoullistrasse 1, 1220 Wien ■■ Further Information

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he third volume of the ethnic Music & Art-Festival FEEL YOUR SPIRIT features world-renowned Soul, Gospel, World music and dance artists YOANN FREGET, INDIALUCIA, KINGA MALEC and many more.

Headliner of the Festival is one of Europe’s most happening young vocalists, rising Soul and Gospel star YOANN FREGET from Paris who won France’s most important Soul vocal competition SANKOFA last year and thwen went on to win France’s biggest talent competition THE VOICE this year. Yoann’s highly energetic performances are truly electrifying and his unique vocal style influenced by James Brown and Stevie Wonder has received accolades by critics & audience.

Second headliner is INDIALUCIA, a fascinating blend of Flamenco and Indian music. Their self-titled debut album reached No. 1 in the world music charts of several countries and is considered a modern classic.

INDIALUCIA are considered to be currently one of the top world & fusion music acts worldwide and feature Miguel Czachowski on Flamenco Guitar, Aveenendra Shivlikar on Sitar, Sandesh Potakar on Tabla and Pierluca Pineroli on Cajón.

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Entrance Fee up to 19:00 – Free Entrance, After 19:00 – 10 Euro www.facebook.com/feelyourspirit www.oeii.co.at www.yoannfreget.net www.indialucia.com

accompanying musicians they are considered to be today’s most innovative and outstanding musical formation from Kashmir. Their ecstatic Sufi music never fails to fully enthrall the audience.

■■ Musicians: Abhay Sopori – Santoor Ragini Rainu – Sufi Vocals Mithilesh Jha & Pradip Sarkar – Tabla Parveen Sethi – Percussions Shubham Sarkar – Tanpura ■■ When Monday, 28th Oct, 20:00 ■■ Where Sargfabrik, Goldschlagstrasse 169, 1140 Wien ■■ Further Information Seat ticket: 25eur | Standing: 18eur

SONGS FROM THE SILK ROAD – Living Legend Shujaat Hussain Khan live in Vienna

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THE SOUL OF SUFIANA Abhay Rustom Sopori & Group present the Mystic Music of Kashmir

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bhay Sopori is the youngest recipient of the Jammu & Kashmir State Award as there is no other Indian musician who works so consequently for the preservation of the ancient cultural heritage of Kashmir. Together with the Sufi vocalist Ragini Rainu, a student of Abhay’s father Pandit Bhajan Sopori, founder of the Sufiana Gharana of Indian Music and four

rammy-nominated SitarVirtuoso Shujaat Hussain Khan, son of Ustad Vilayat Khan, is today considered the world’s finest Sitar player. His family invented the Gayaki-style of Indian music in which the instrumentalist recreates the human voice with his instrument with all nuances and colors. Apart from that Shujaat Khan is the only Sitar master worldwide who plays Sitar and sings simultaneously. His vocal renderings of the Sufi songs of Amir Chosrau (1253-1325), Kabir (1440 - 1518) und Bulleh Shah (1680– 1757) are legendary. Shujaat Khan has released more than 60 albums and received all major Indian music awards. He will be accompanied by the New Delhi-based tabla masters Amit Choubey and Sapan Anjaria.

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■■ When Monday, 14th Oct, 20:00 ■■ Where Sargfabrik, Goldschlagstrasse 169, 1140 Wien ■■ Further Info Seat ticket: 25eur | Standing: 18eur Both THE SOUL OF SUFIANA and SONGS FROM THE SILK ROAD events are organized by the Austrian-Indian Institute (www.oeii.co.at) in Collaboration with Indian Embassy Vienna and Indian Council of Cultural Relations.

Exhibition “Moderns” Works from the Lalit Kala Akademi Collection, New Delhi

The University of Applied Arts Vienna showcases the Indian modern period in the exhibition titled “Moderns, Works from the Lalit Kala Akademi Collection, New Delhi.”

It is the first exhibition of its kind in Austria, comprising of more than 50 works of the Modern period in India. Located in a foremost public institution in New Delhi, this onsite collection was launched in the fervour of the postindependence

era, incorporating the key representatives of the Indian modernist movement. More than 50 artefacts from the collection plus documentary films from the State Archives of India highlight the subject in the renowned exhibition spaces of Heiligenkreuzerhof, Vienna.

The exhibition “Moderns” mainly presents works from roughly three decades (1950s - 1970s), the emphasis lying on painting and sculpture. Among the artists selected by the curator of the show, Uma Nair, are internationally renowned names like M.F. Hussain (1915 - 2011), Tyeb Mehta (1925 2009), F.N. Souza (1924 - 2002) or Documenta IX and XII participants Nasreen Mohamedi (1937 - 1990) and Bhupen Khakkar (1934 - 2003).

Not less significant are the works of Ram Kinkar Baij, N.S. Bendre, Bikash Bhattacharjee, Rameshwar Broota, Jayasri Burman, Dilip Kumar Das, Bimal Dasgupta, Biren De, Ambadas Gade, V.S. Gaitonde, Balakrishna Guru, Ganesh Haloi, Zarina Hashmi, K.K. Hebbar, Somnath Hore, P.V. Janakiram, Sanat Kar, Latika Katt, Devjani Krishna, Kanwal Krishna, K.S. Kulkarni, Ram Kumar, T.R.P. Mookiah, Sailoz Mukherjee, M. Reddapa Naidu, Badri Narayan, K.S. Radhakrishnan, Krishna Reddy, G.R. Santosh, Paritosh Sen, Gulam Mohammed Sheikh, Arpita Singh, S.G. Vdiyasagar Sthapathy, K.G. Subramanyan, J. Swaminathan or S.G. Vasudev. These artists / professors who have had immense socio-political impact in their times, have been eminently influential for artist generations to follow.

The exhibition is based on an agreement of cultural exchange between the University of Applied

Arts Vienna and the Lalit Kala Akademi, New Delhi.

■■ Opening Tuesday, 15th of October, 2013 at 6:30 pm ■■ Duration 16 October - 8 November, 2013 ■■ Venue Refektorium & Sala Terena, Heiligenkreuzerhof, Schönlaterngasse 5, University of Applied Arts Vienna, 1010 Vienna ■■ Further Information www.dieangewandte.at

Symposium in the framework of the exhibition “Moderns” - Works from the Lalit Kala Akademi Collection, New Delhi

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n an initiative taken by the University of Applied Arts Vienna, a symposium accompanying the exhibition will be held in the exhibition space. It will cover international contributions and perspectives on the subject of Modernism, emphasising exchange and reflection both on artistic and theoretical levels. In terms of a contemporary inventory, art historical aspects of Indian art will be given the same attention as positions of theoreticians, collectors and curators on the subject of modernism. The speakers at the symposium are Peter Weibel, Director of the Center of Art and Media, Karlsruhe, artist, media theoretician, Vienna; Parul Dave Mukherji, art historian, Dean of the Department of Arts and Aesthetics, Jawaharlal Nehru University, New Delhi; Girish Shahane, art critic, curator, writer, Mumbai; Sabine Vogel, art critic, curator, Vienna and Eleonore Chowdhury Haberl, art collector, journalist, Vienna.

The symposium will be be held in English, moderated by Angelika Fitz, author and curator, Vienna.

■■ When Monday, 28 October, 2013 - 2PM Duration: 2 pm – 7 pm India Newsletter • 25

Embassy of India, Vienna

■■ Where Refektorium & Sala Terena, Heiligenkreuzerhof, Schönlaterngasse 5, University of Applied Arts Vienna, 1010 Vienna ■■ Further Information www.dieangewandte.at Both the Exhibition “MODERNS” - and SYMPOSIUM in the framework of the same are organized by the University of Applied Arts (Die Angewandte) in collaboration with the Lalit Kala Academy.

Navagraha - die neun kosmischen Beeinflusser

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eit je her haben Menschen zu den Himmelskörpern geblickt und das Geschehen auf der Erde mit ihnen in Verbindung gebraucht. Gravitation, Rhythmus und Bewegung der Himmelkörper bestimmen unser Leben. Deutlich sichtbar an den Gezeiten - Ebbe und Flut der Ozeane. Aber auch andere Himmelskörper haben Einfluss auf unser irdisches Leben. Darum ist es nicht verwunderlich, dass bestimmte Himmelskörper sowohl in der westlichen als auch indischen Astrologie besondere Beachtung 26 • India Newsletter

finden. Die sieben Wochentage wurden nach ihnen benannt. Sie wurden personifiziert und es wurden ihnen Charaktereigenschaften zugesprochen. Sie werden verehrt und gefürchtet.

Umwelt und Kosmos beeinflussen unser tägliches Leben. Unsere tägliche Verfassung hängt davon ab, wie wir uns fühlen. Um ein gesundes und glückliches Leben zu führen trachtet man danach für alle Tätigkeiten den richtigen Zeitpunkt zu finden, der am Stand der Himmelskörper abzulesen ist.

Ein genauer Kalender dient dazu.

Die Himmelskörper (graha) werden als 7 Götter (Devas) und 2 Dämonen (Asuras) betrachtet, die das Leen der Menschen auf der Erde beeinflussen.

Das Navagraha Stotram (vedische Hymne zur Lobpreisung der Navagrahas) diente als Ausgangspunkt für die Choreografie.

Sie hebt die besonderen Merkmale der einzelnen Grahas hervor.

Wie in der westlichen Astrologie entsprechen die sieben Devas (Götter) Surya - Sonne, Chandra Mond, Mangala - Mars, Buda - Merkur, Brhaspati - Jupiter, Sukra - Venus und Sani - Saturn den Wochentagen. Die beiden Asuras (Dämonen) Rahu und Ketu sind die Mondknoten oder die Schnittpunkte der Mondbahn mit der Ekliptikebene. Sie sind in beiden Traditionen wichtig, in Indien spielen sie eine so wichtige Rolle, dass sie als eigene “Planeten” anerkannt wurden, obwohl sie eigentlich nur mathematische Punkte am Himmel sind.

In der musikalischen Kompositionen des Stotramen wurde für jeden Graha (Planeten) ein bestimmter Raga und Tala gewählt entsprechend dem jeweiligen Charakter.

Die Navagrahas werden als kleine männliche Götter dargestellt und sind aus schwarzem Granit.

Sie befinden sich meistens in shivaitischen - Tempeln und werden von den Gläubigen umkreist. Es gibt aber auch eigene Navagraha Tempel, wo jeder der neun Tempel einem Graha allein gewidmet ist.

■■ Wann 26. September 2013 20.00 Uhr ■■ Wo Interkulttheater Filgradergasse 16, 1060 Wien (freie Platzwahl) ■■ Weitere Infos Eintritt:€17,-/€15,www.interkulttheater.at

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NOTICE BOARD EMBASSY’S LIBRARY ■■ The EMBASSY’S library is opened mondays and wednesdays from 11am to 1pm without appointment.

■■ For scheduling an appointment outside the opening hours, please contact the information assistant under infoasstt@indianembassy.at or 01 505 8666 33

BUSINESS CENTRE ■■ The EMBASSY’S Business Centre is opened DAILY from 11am to 1pm without appointment.

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

■■ Marketing Officer: marketingofficer@indianembassy.at or 01 505 8666 30 ■■ Marketing Assistant: marketingassistant@indianembassy.at or 01 505 8666 31

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

■■ His contact details are: +43-1-505866614 and cpolitical@indianembassy.at

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