INDIA NEWSLETTER Published by the Embassy of India,Vienna Year 2 | Issue 22 | October 2012
FOOD INDUSTRY India Newsletter | 1
Snapshot of last month’s Highlights
The Indian marketing analytics industry is expected to touch US$ 1.2 billion in 2020 at a compounded annual growth rate (CAGR) of 25 per cent.
With the new textile policy and approval of 263 textile projects in the State, the Goverment of Maharashtra has attracted investments worth Rs 2,400 crore (US$ 432.36 million) in the sector.
The mobile penetration in India has reached 75 per cent as on August 2012. India added 20 million out of the global 140 million net additions during Q2 2012.
The number of internet users in rural India is expected to reach 45 million by December 2012.
Power generation is expected to grow by 10.4 per cent in 2012-13.
Organic farming in Odisha is expected to reach a size of Rs 23,000 crore (US$ 4.20 billion) in the next 5 years.
NRIs have deposited US$ 7.37 billion in domestic banks during the April-July 2012 period, which is six times more as compared to US$ 1.24 billion in the year ago period.
The State Bank of India (SBI) plans to add 1,200 branches this fiscal up from the 645 branches it opened in 2011-12.
to touch US$ 9.5 billion in 2016.
The top six Indian cities — Mumbai, Delhi, Kolkata, Bengaluru, Chennai, and Hyderabad — will add 50,000 hotel rooms over the next five years.
The personal computer market in India registered an increase of
15.7 per cent at 2.86 million units during April-June 2012 over the corresponding period last year.
India’s ‘eating out’ market is estimated The aggregate depos- close to Rs 33,000 crore its with banks stood at (US$ 6.26 billion). An average global company Rs 63 trillion (US$ 1.13 (US$ 11.2 billion in annual trillion) as on August 24, revenue) will spend between US$ 13 million-US$ 22 million for marketing 2012, registering an an- through mobile devices in 2012. nual year-on-year growth of Foreign direct in14.12 per cent. vestment (FDI) Foreign institutional investors (FIIs) investment in the Indian eq- in India has increased by uity market has reached Rs 65,954 about 60 per cent to US$ crore (US$ 12.19 billion) so far this 1.76 billion in July 2012. year.
2 | India Newsletter
leading markets in APAC, the
BPO sector in the region is expected
Data analytics market in India is expected to reach US$ 1.15 bn, to constitute 21 per cent of the overall Indian KPO market opportunities worth US$ 5.6 bn by 2015.
With an addition of 31 million internet users in the last one year, the total internet user base in India stands at 137 million in June 2012. This is a 30 per cent increase over the same period last year.
5With India being one of the
Notes into the Indian market rose
to a five-month high of Rs 141,710 crore (US$ 26.08 billion) in August 2012. Foreign direct investment (FDI) in the Indian retail sector is expect-
ed to create 10 million jobs in 10 years.
The overall advance tax realisation from the top 100 companies
during the second quarter of FY 2012-13 has recorded an increase of 10 per cent.
India’s spending on green IT and sustainability initiatives will double from US$ 35 billion in 2010 to US$ 70 billion in 2015.
VIBRANT GUJARAT DELEGATION TO AUSTRIA Visiting Delegation Event Report
From 27-29th September, 2012, a delegation comprising senior Indian industry corporates from the state of Gujarat visited Vienna. Besides B2B meetings with local chambers of commerce, the delegation hosted a Business Networking Semi-
nar for 40+ distinguished guests at the Business Centre of the Indian Embassy.
the delegates were able to interact with
With focus on Innovation & Technology in Chemicals & Biotechnology, Engineering & Infrastructure, Electronic & Machinery, IT and Environmental Technology,
tightening up the India-Austria Business
several Austrian industry businessmen, connection. See below some impressions of the event.
Business lunch and b2b-meetings INVITATION, OCT 8th With the Trade Delegation from CAPEXIL
he Embassy of India (Vienna) has the honour to invite your estemeed company to join us for an Indian Business Lunch/B2B Meeting with the Trade Delegation from CAPEXIL on Monday, October 8th, 2012 at the Radisson Blu Palais Hotel (Parkring 16, 1010 Vienna). Delegates will be available from 11am to 4pm for B2B talks. Lunch will be served at 12.30pmThe delegates wish to hold talks seeking not only trade part-
ners, but also Joint Ventures, Technical Tie Ups, Take overs of Plant & Machineries, possibility to open branch offices in Austria vis-Ă -vis inviting Austrian firms to have their representation in India, procurement of quality raw materials, appointing selling agent, selecting distributors, tie ups with buy back arrangements, procurement of materials, design, R&D in Structural Engineering etc.
The delegationâ€™s product spectrum includes: Rubber Products, Auto Tyre & Tubes, Granite, Marble & Natural Stone, Concrete Blocks, Reinforced Concrete Products, Pipes, Road Barriers, Refractories, Limonite, Sillimanite, Bleaching Earth, Activated Carbon, Paper & Paper Products, Matches etc. Please confirm your interest and availability by sending us an email to firstname.lastname@example.org. India Newsletter | 3
Every third tech start-up in US has Indian DNA Research conducted by Kauffman Foundation
t a time when the US has started to see a drop in the number of immigrant-founded technology companies, Indians and Chinese immigrant entrepreneurs have not followed the trend. According to a recent study by Kauffman Foundation, based on a sample survey, about 33.2 per cent of the co-founders of engineering and technology companies incorporated in the US during the last six years were Indians. This is an increase of about seven percentage points from what a similar study that examined immigrant-founded companies between 1995 and 2005 found. The number of technology companies in the US co-founded by the Chinese has also gone up to 8.1 per cent compared to 6.9 in 2005, it says. The study, “America’s New Immigrant Entrepreneurs: Then and Now”, is based on a survey among a random sample of 1,882 companies of the total 107,819 engineering and technology companies founded in the last six years in the US. Of those, 456 had at least one foreign-born founder.
It found the proportion of immigrantfounded companies in the country slipped to 24.3 per cent from 25.3 per cent in 2005. The drop was more pronounced in Silicon Valley, where the percentage of immigrant-founded start-ups declined from 52.4 per cent to 43.9 per cent.
creators more than ever,” said Wadhwa.
“The exceptions to this downward trend were immigrants from India... Indians, in fact, founded more of the engineering and technology firms than immigrants born in the next nine countries combined,” the study said.
start-ups. Many immigrants would gladly
The implications of the findings, conducted by researchers at Duke University,The Berkeley School of Information and Stanford University, have now been encapsulated in a book ‘The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent’. The book has been written by Vivek Wadhwa, director of research at the Center for Entrepreneurship and Research Commercialization at the Pratt School of Engineering, Duke University. “The US risks losing a key growth engine just when the economy needs job
“The US can reverse these trends with changes in policies and opportunities, if it acts swiftly. It is imperative that we create a start-up visa for these entrepreneurs and expand the number of green cards for skilled foreigners to work in these remain in the US to start and grow companies that will lead to jobs,” he added. Immigrant founders employed about 560,000 workers and generated an estimated $63 billion in sales from 2006 to 2012. “For several years, anecdotal evidence has suggested an unwelcoming immigration system and environment in the US have created a ‘reverse brain drain.’ This report confirms it with data,” said Dane Stangler, director of research and policy at the Kauffman Foundation. “To maintain a dynamic economy, the US needs to embrace immigrant entrepreneurs,” he added.
Lucknow school is world’s ‘largest’ As published in the Guiness Book of Records
in Lucknow had a record enrolment of 39,437 pupils on Aug 9, 2010, for the 2010-11 academic year. School authorities told IANS that the number of pupils now stood at 45,000-plus.
tarting from five students and a Rs.300 loan, a Lucknow school has travelled a long way to become the school with the most number of pupils in the world, according to the Guinness Book of Records. The 57th and 2013 edition of the book says the City Montessori School (CMS)
4 | India Newsletter
The entry in the Guinness, which documents the world’s most unique and selective records, has enthused the students and staff. “We are very happy that not only our size but also our philosophy of world peace is being recognized at a global level,” school founder Jagdish Gandhi told IANS. Tanmay Tiwari, a Class 12 student on one of the 20 branches the school operating
in the city, is equally estatic. He said studying in one of the school campuses was an “enriching experience” which “mattered a lot in the transition” in his persona. Principal Vera Hazela says her association with the school has been a “great one”. Talking of the exposure the school gives to its students, she said the school holds 32 educational international events every year. School spokesperson Rishi Khann said the management, staff and students were overjoyed over the Guinness recognition. The school was founded in 1959 by Jagdish Gandhi and his wife Bharti Gandhi in a rented premises with just five students and a borrowed capital of Rs.300. The school was also awarded the prestigious UNESCO Prize for Peace Education in 2002, becoming the only school worldwide ever to receive this honour.
India 4th most economically confident country Ipsos Economic Pulse of the World’ survey
ndia’s economic confidence has shot up by 8 points to 68% in the month of August compared to the previous month, according to the ‘Ipsos Economic Pulse of the World’ survey. This makes India the fourth most economically confident country in the world after Saudi Arabia, Sweden and Germany. India’s economic confidence, said a report by Ipsos, has got a major boost due to recent big-bang economic reforms such as the hike in diesel prices, FDI in retail, aviation and broadcasting, disinvestment in 4 public sector undertakings and cut in cash reserve ratio (CRR) by the Reserve Bank of India (RBI). Mick Gordon, CEO of Ipsos in India said, Union Government of India unleashed a
burst of economic policy reforms that included steep rise in heavily subsidized diesel price, limit on cooking gas subsidy for consumers and foreign investments into critical sectors such as aviation and retail, raising the hope that expected fiscal breach will now be lower and investments will pick up. Borrowers could see better days ahead as banks are expected to cut lending rates following the RBI’s decision to unlock Rs 17,000 crore by slashing CRR by 25 basis points. The liquidity infusion would ensure adequate flow of credit to productive sectors of the economy.’’ Slightly less than a half of Indian citizens (48%) believe their local economy which impacts their personal finance is good, a marginal rise of 2 points and an optimis-
tic 53% people expect that the economy in their local area will be stronger in next six months. The online Ipsos Economic Pulse of the World survey was conducted in August 2012 among 20,915 people in 24 countries. The average global economic assessment of national economies remains static from last month as 38% of global citizens rate their national economies to be ‘good’. Countries with the strongest proportion of citizens expecting their local economies to be ‘stronger’ six months from now include Brazil (65%) followed by India (53%), Saudi Arabia (47%), Mexico (41%), Argentina (40%) and China (38%).
ITC flags off world’s largest green hotel Green Tourism in India
TC launched its imposing Grand Chola, a 600-key luxury hotel in Chennai. Inaugurated by J. Jayalalithaa, Chief Minister of Tamil Nadu, this hotel is the company’s biggest property in the country and “the world’s largest LEED Platinum green hotel (an eco certificate).” In terms of room inventory, this will be the third largest hotel in the country, after Renaissance (759 keys) and Grand Hyatt (694 keys) — both in Mumbai. The company has invested over Rs 1,200 crore in the property which spreads over eight acres of land. Designed to “recall the grandeur and lifestyle of the imperial Chola dynasty,” the integrated upmarket hotel complex
also houses one lakh sq.ft. of conference and exhibition facilities, which, according to the company, is by far the biggest in the country — 10 food and beverage outlets, a spa, a preview theatre and 40,000 sq.ft. of retail space. It will carry the tag of ‘Luxury Collection’ — one of the brands franchised from the US-based international hospitality group, Starwood Hotels. This is the ninth ‘Luxury Collection’ hotel of the group.
Though at present, Chennai seems to be a little “over-supplied market,” the city needs such a product, “as we see greater demand in the months to come,” he said. According to industry experts, with 0.55 rooms per every 1,000 people, Chennai has the lowest hotel room penetration among the major cities. For example, Mumbai has 0.57 rooms, New Delhi has 0.59; Hyderabad 0.62 and Bangalore 0.84 room per 1,000 people.
Addressing the media at a conference organised to mark the launch of the property, Y.C. Deveshwar, Chairman, ITC Ltd, said this kind of banqueting space will market Chennai in a big way, and will bring in a lot of new businesses.
“Intended to be a game-changer, will Grand Chola cannibalise ITC’s other properties in the city, and eat into the market share of other brands for the time being? Yes, it will. But, every brand has to compete,” said Deveshwar.
Volkswagen to invest €100 million in India Investments in India
he Volkswagen Group aims to increase output by 10-15 per cent on a €100-million investment at its production facilities in Aurangabad and Chakan in Maharashtra. John Chacko, Volkswagen Group Chief Representative for India, said the investment would go towards minor model changes and upgradation of the two factories. The funds will also benefit Skoda and Audi’s domestic operations.
The German automaker has a 1.3-lakh annual production capacity at Chakan, where it makes the Polo, Vento and Skoda’s Fabia and Rapid models. The Aurangabad facility has a 6,000-unit annual capacity and makes the premium models. Chacko said a final call on a Group engine plant in India would be taken in a few months, a move that would significantly reduce product costs as imported
engines were expensive. “We will decide by end of the year. If we go ahead with the engine plant, production should start by 2014,” he said. Volkswagen had recently said it had put Rs 2,000 crore expansion plan on hold due to lack of clarity on the Maharashtra Government’s rollback of tax incentives. It had said this could prompt it to invest in other States. India Newsletter | 5
Mercedes-Benz to increase investment in India Investments in India
and aggressive product offensive which we are readying for the Indian market, said Peter T Honegg, Managing Director & CEO, Mercedes-Benz India.
“We are bullish about the Indian market and this is reflected in our long term commitment towards the dynamic Indian market. The investment of Rs 850 crores will help us strengthen our production and operational capabilities with regards to our existing products and our exciting
MBIL pioneered the luxury car industry in India by starting its India operations in 1994. In 2009, the company moved into its production facility spread over 100 acres in Chakan. The initial investment of Rs 250 crores was scaled upto to Rs 600+ crores with the setting up Mercedes-Benz India’s own technologically advanced paint shop capable of water based painting. The new paint shop is targeted to be operational by Octo-
uxury car maker Mercedes-Benz India plans to increase its investment to Rs 850 crore by 2014. The German car maker through its dealers partners already carries an investment of over Rs 480 crores spread across its 31 showroom and 41 service outlets located in 31 Indian cities.
ber, 2012 and has an annual capacity of 20,000 units (which can be extended up to 40,000 units annually). Mercedes-Benz India locally manufactures its flagship sedans the C-Class, the E-Class and the S-Class sedan in its plant in Chakan near Pune. With Daimler AG recognizing the emergence of high potential growth markets including India, Mercedes-Benz India will be amongst the first markets to start assembling the new M-Class, outside Daimler AG’s parent SUV plant in Tuscaloosa/Alabama, USA.
Engineering R&D services mkt to reach $42 bn by 2020 Study: Engineering R&D: Advantage India
fter a lull of almost three years, multinationals are back to spending on engineering research and development (R&D). The impact of this is showing on the Indian captive engineering R&D centres’ growth. In last one-and-a-half years, about 39 captive centres were set up by MNCs in India. Some of these were MNCs like Hitachi, Panasonic, Ricoh, Faurecia, Peugeot among others, said a study by Zinnov Management Consulting. According to the study, ‘Engineering R&D: Advantage India’, India is one of the leading offshore destinations in delivering engineering R&D services with a market share of 22 per cent. The market in India is expected to grow at a compound annual growth rate of 14 per cent from $14.7 billion in FY12 to $42 billion by 2020 and is also expected to outpace the information technology growth rate in India. “The period of 2004-08 saw the maximum growth of captive centres in India. At least 15-20 captive centres were being set-up every year. But since 2008, several companies went slow on capex spends, with many putting it on hold. Over the last one year we are seeing spends back, especially to target growth in the emerging market,” said Sundaraman Viswanathan, manager (consulting), Zinnov. 6 | India Newsletter
Pari Natarajan, chief executive officer, Zinnov said the current shift to set up captive centres is because of strong focus on emerging nations as target markets across major verticals. For instance, while Europe and North America are currently the leading markets in Aerospace, this is likely to change significantly by 2030, with countries outside these regions expected to own about half the commercial aircraft service. Even in the telecom sector for that matter, deregulation in India and China is fuelling the future growth prospects of the industry. Similarly, in the medical devices and consumer electronics segments, markets like India and China are expected to lead the consumption, said the study. Viswanathan added that the captive centres are also growing in maturity. “Several companies are now setting up centres of excellence for specific verticals. From a services provider landscape, earlier they would depend on certification as a selling point. But now they are moving beyond and looking at partnering with business houses and driving decisions,” he added. Some of the instances where companies are using their India unit for core research include GE, which has been focusing on areas like material design, electromagnetic analytics,
among others. General Motors is focused on smart system modelling, vehicle structure and safety and chemical reaction modelling. While MNC captives today drive the Indian Product Engineering growth story in almost all verticals except Aerospace where service providers have a 76 per cent share, service providers are upping their game and in fact grew faster in FY2012, at 16 per cent CAGR compared to 11 per cent growth for captives. Rather the product engineering business at the top Indian IT services players like TCS, Wipro and HCL Technologies is already a $1 billion business. “India is well-poised to contribute to Global ER&D as the ecosystem of captive centres, service providers and startups, increasingly work together to drive innovation. As relationships mature, service providers and customers will enter into pricing models based on market outcomes. Further, with emerging nations growing in importance as key markets, MNCs are set to leverage the inherent competencies in India to build products for local and global markets,” said Viswanathan.
India and United Kingdom ink MoU Urban Regeneration & Development
hri Kamal Nath, Union Minister of Urban Development and Dr. Vince Cable, the British Secretary of State for Business, Innovation and Skills signed an MoU on Urban Regeneration and Development in London. Speaking on the occasion, Shri Kamal Nath expressed appreciation of the urban regeneration works carried out in London and felt that India could benefit from the British experience.The Minister also highlighted the immense challenges and opportunities in the urban sector in India. He informed that India would soon launch the next phase of the Jawaharlal Nehru Urban Renewal Mission and that
the Government of India is keen to encourage PPP in urban sector especially in larger cities. He invited the international firms including British firms to participate in the process. Shri Kamal Nath stated that both India and Britain would benefit from the MoU, as it would provide an enabling platform for the officials, professionals and business leaders to meet and share knowledge and best practices in the urban sector. He expressed the hope that this joint declaration would lead to enhanced cooperation and deepen the engagement between the two countries.
The MoU envisages promotion of cooperation in the areas of sustainable master planning; transport planning; land economics; heritage management; regeneration governance; regeneration capacity building and public private partnership financing arrangements. Shri Kamal Nath also participated in a business roundtable organized by the UK India Business Council. The roundtable was attended by leading infrastructure companies such as Aecom, Arup, Balfour Beatty Plc, HOK, JCB, Mott MacDonald etc. Shri Kamal Nath also met Mr. George Osborne, Chancellor of the Exchequer UK.
No roaming charges within India from 2013 Indian Mobile Network
obile phone users will not have to pay roaming charges when traveling within India from next year, telecom ministerKapil Sibal said, but telcos say abolishing these charges could lead to higher call rates. The minister also said that the government did not want to control or govern the internet and added that the Centre would enter into dialogue with all stake-
holders to deal with malicious use of cyber space. “Our (telecom) secretary has told you that it will be free from next year,” Sibal said when asked to specify timeline for implementation for the ‘one-nation-free roaming’ that he had announced earlier this year. The Cabinet has already approved the new telecom policy whose guidelines include doing away with roaming charges.
Telecom secretary R Chandrasekhar told ET that this consumer centric move would be implemented next year. “”Our first priority is the upcoming spectrum auctions. At the same time, we are working on the Unified Licence (UL) and we want to finalise this by December.Once the UL regime is rolled out post December, concepts like ‘One nation-free roaming’ will be introduced.
Kerala as investors’ paradise India as an investment destination
he complex challenges that Kerala faces on the development front are well known. Blessed with nature’s bounty and human development indices comparable to the best in the West, the State has been on an economic upswing thanks to an industrious and cash-rich emigrant population and a thriving, though at times battered, cash crop economy. Rising incomes have led to a boom in the consumer goods and services market. The labour scene has been relatively peaceful of late. So what’s the problem? A narrow agricultural and industrial production base, acute scarcity of land for big ticket investments and the absence of political consensus on the most suitable development trajectory have all been hampering Kerala’s efforts to embrace new-age development. If the plans unveiled at the ‘Emerging Kerala’ business and investment summit held last week are implemented, however, the
State might well be on its way to finding solutions for these vexing issues. Unlike the Global Investor Meet (GIM) held in 2003, which was focused on bagging investment promises then and there, the Emerging Kerala summit aimed to project the State as a friendly investment destination. Given the disappointing outcome of GIM, which resulted in a trifling sum flowing in by way of investment, the Oommen Chandy-led United Democratic Front government walked the knife’s edge, reassuring doubters on both sides of Kerala’s highly polarised political divide about its intentions and its resolve to play the game by the rules. In the event, the summit generated considerable interest in the business community both in and outside the country. The deliberations produced, by the State government’s reckoning, some 45 positively actionable investment proposals having a combined
outlay of around Rs. 45,000 crore, many of these from non-resident Malayalis. There was keen investor interest in areas such as tourism, public infrastructure and transport, IT and total healthcare solutions. It is still too early to assess the summit’s outcome and what awaits the government is an obstacle course. The real test would come when the hard bargaining begins. The government would have to take the sensitivities of the local ecology and communities on board when deciding on land utilisation. Mr. Chandy and his team also have the difficult task of building political and civil society consensus on each project. That the Opposition, despite staying away from the summit, did not try to put a spanner in the summit works could be a good sign. But that is for starters and there is a good distance to cover before Kerala really emerges as a favoured destination for investment. India Newsletter | 7
Government clears 51% FDI in retail, 49% in aviation Investing in India
fter months of dilly-dallying, UPA mustered courage to throw open the gates to foreign investment in a host of sectors considered political nogo zones like multi-brand retail and civil aviation in a bid to dispel the perception of policy paralysis. This will pave the way for the muchawaited entry of foreign retail giants such as Walmart,Tesco and Carrefour into the $450 billion retail market, although their footprint will be limited to million-plus cities in states which have agreed to back the measure. The decisions, along with a go-ahead for disinvestment in four PSUs to mop up Rs 14,000 crore, come within a day of the ruling coalition’s decision to raise diesel price by a stiff Rs 5 a litre and cap subsidized cooking gas cylinders to six a year for every household.Taken together, they mark the most ambitious reform rush by the beleaguered government which has been roundly attacked for drift and diminished will to take bold measures. Faced with dwindling political fortunes, the UPA appears to have finally resorted to a flurry of actions aimed at salvaging the government’s precarious finances and retrieving the sinking reforms legacy of the Manmohan Singh regime.
There were loud protests from nonCongress parties which may shortly call for a countrywide shutdown. Govt driven by perform or perish mantra But the government, driven by a “perform or perish” mantra, asserted it will stick to its decisions which have been taken after factoring in the resistance of allies and opponents. There is a recognition that the cost of inaction will be far more severe, given the worsening finances and real threat of a ratings downgrade. With experts and its own top leadership feeling that the window for decision-making is shrinking fast, there was an air of determination in the government taking on allies and outside supporters who have crippled its options for months On the upside, government can expect a roaring reception from the financial markets as a global rally triggered by monetary easing in the US and Germany’s green signal to a Eurozone recovery package ties in with these initiatives. This can prove to be a mood-enhancer for UPA as it heads into state polls in Himachal Pradesh and Gujarat. The decision to leave it to states to allow foreign retailers is meant to blunt the op-
position. However, it has been sought to be balanced by improving the terms for the foreign players. Riders such as sourcing norms and rules to open stores in cities with a population of over one million have been tweaked for the benefit of foreign players, who can now pick up 51% stake in Indian joint ventures. So far, these players could only set up single-brand stores or enter the wholesale segment and sell bulk buyers such as canteens, restaurants and kirana shops. Bowing to pressure from foreign players such as IKEA, the government eased sourcing norms for single-brand retail and permitted them to buy at least 30% of the goods from Indian industry, instead of the earlier stipulation that made purchases mandatory from small and medium units. In case of civil aviation, where FDI is already permitted, the government has relaxed rules to allow foreign carriers to buy up to 49% stake in Indian airlines, a decision that throws a lifeline to ailing Kingfisher and other smaller players. PM Manmohan Singh sought support for the decisions, saying they were needed to tide over difficult times and make India a more attractive destination for foreign investors.
India Poised to Compete for China FDI By Dezan Shira & Associates (India)
hina aside, the smart money in Asia right now is on India as the emergence of the nation as a destination for FDI becomes more understood. The reasons for India’s growing attractiveness as a China alternative are numerous. Firstly, as China has become wealthier, labor costs have increased dramatically – and this is effectively making China less competitive when talking about export-driven manufacturing. That business is now leeching away to other emerging Asian nations, with India among the main recipients. That doesn’t mean China-based manufacturers are leaving necessarily – it’s just that to financially justify establishing a manufacturing base in China today means that one should be looking at servicing the Chinese consumer market; and not all products are suitable for China.
8 | India Newsletter
China’s demographics have changed as well – 20 years ago the average age of a Chinese worker was 23. Now, that average age is roughly 37 and that employee requires a far higher income than before. Interestingly, the average age of an Indian worker today is 23 – the same as China 20 years ago. “We are seeing more interest in FDI into India than ever before,” comments Olaf Griese, from Dezan Shira & Associates in India. “Businesses have woken up to the fact that India is also a hot destination and, having established China holdings, many are now setting up operations in India as well. The two nations are complimentary investment destinations, and now it is India’s turn.” On top of this, the Asian trade dynamics are altering, with the Southeast Asian
trade bloc ASEAN about to come into full tax free status in 2015. That is altering manufacturing investment patterns as businesses wishing to sell to Asia are now increasingly looking at doing so in ASEAN, using Singapore as a regional financial and services hub to access Asian markets. The faster growth potential lies in these countries as opposed to China – and India, with its DTA with ASEAN, permits duty free movement of over 4,000 different product and goods categories with the entire region, and more to follow as the DTA still has many more under negotiation. At present, India’s ASEAN strengths lie in the exporting of telecommunications and electronics products – a major competitive area with China. Add to that logistics, education, and financial services, and it is clear that India is going to become a long-term player in Asia.
opening Branch Office in India by Foreign Entities Master Circular on the Establishment of Branch/Liaison Offices in India by Foreign Entities
ith the objective of achieving greater transparency and procedural clarity, the Reserve Bank of India (“RBI”) issues the Master Circular on the Establishment of Branch/Liaison Offices in India by Foreign Entities every year on July 2 with a sunset clause of one year, laying down the eligibility criteria and procedural guidelines for setting up of branch offices (BOs) and liaison offices (LOs) in India by any body corporate incorporated outside India including a firm or other association of Individuals (“foreign entity”). The procedure for annual filings to be done by a foreign entity, and procedure for closure of BOs and LOs are also been laid out in the Master Circular. Eligibility criteria for establishment of BOs/LOs I. Basic Criteria Reserve Bank Route: The principal of the foreign entity falls under sectors where 100% FDI is permissible under the automatic Route Government Route: The principal business of the foreign entity falls under sectors where 100% FDI is not permissible under the automatic route. these applications are considered by the RBI, in consultation with the Government of India, Ministry of Finance.
subject to the condition that the parent company satisfies the eligibility criteria mentioned above. The RBI or the Government of India, as the case may be, has the right to reject an application for non-fulfillment of any other condition(s) or if the proposed business is seen to be opposed to the public interest. Branch offices Permissible activities for a branch office Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up branch offices in India with specific approval of the Reserve Bank. Such branch offices are permitted to represent the parent/group companies and undertake the following activities in India:
• Export/import of goods • Rendering professional or consultancy services
• Carrying out research work, in areas in which the parent company is engaged
• Promoting technical or financial col-
laborations between Indian companies and parent or overseas group companies
II. Additional Criteria
• Representing the parent company
BO - Profit making track record suring the immediately preceding 5 financial years in the home country. Net worth: A minimum of US$100,000 or its equivalent.
• Rendering services in information
LO - Profit making track record during the immediately preceding 3 financial years in the home country. Net worh: A minimum of US$50,000 or its equivalent. Net worth has been defined as the total of paid-up capital and free reserves, less intangible assets, as per the latest audited balance sheet or account statement certified by a certified public accountant or any registered accounts practitioner. Applicants who do not satisfy the above mentioned eligibility criteria and who are subsidiaries of other companies may submit a letter of comfort from their parent company as per the prescribed format,
in India and acting as buying/selling agent in India technology and devel¬opment of software in India
• Rendering technical support to the
products supplied by parent/group companies
• Foreign airline/shipping companies Normally, the branch office should be engaged in the activity in which the parent company is engaged. Restrictions on activities by branch offices The Reserve Bank has restricted branch offices from indulging in retail trading activities of any nature, manufacturing or processing activities in India, directly or indirectly.
Additional advantages for branch offices in SEZs The Reserve Bank has given general permission to foreign companies for establishing branches/units in Special Economic Zones (SEZs) to undertake manufacturing and service activities.The general permission is allotted to such units, provided they are working on a standalone basis and are functioning within the sectors in which 100 percent FDI is permitted, and complying with additional regulations under the Companies Act, 1956 (Sections 592 to 602). Remittance of profits from India Profits earned by the branch offices are freely remittable from India, subject to payment of applicable taxes. Liaison offices Permissible activities for a liaison office A liaison office (also known as a representative office) can undertake only liaison activities, i.e. it can act as a channel of communication between a head office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the head office outside India. The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by an AD Category I bank. Liaison offices can undertake the following activities in India:
• Representing in India the parent company/group companies
• Promoting export/import from/to India
• Promoting technical/financial col-
laborations between parent/group companies and companies in India
• Acting as a communication channel between the parent company and In-
India Newsletter | 9
Articles dian companies
• Extension of validity of the approval of liaison offices The designated AD Category I bank may extend the validity period of LOs for a period of 3 years from the date of expiry of the original approval/extension granted by the Reserve Bank, provided the LO has submitted the Annual Activity Certificates (see below) for the previous years and has operated as per the terms
and conditions stipulated in the approval.
submitted by branch/liaison offices
Additional branch/liaison offices
The branch offices/liaison offices have to file an Annual Activity Certificate (AAC) provided by a chartered accountant, at the end of March 31, along with an audited balance sheet on or before September 30 of that year.
Additional BOs/LOs can be opened by justifying to the RBI the need for additional offices, subject to a limitation of four i.e., one BO/LO in each zone viz. East, West, North and South. The applicant may identify one of its offices in India as the nodal office, which will coordinate the activities of all offices in India. Annual Activity Certificates to be
Closure of branch/liaison office Closure of BOs/LOs has to be reported by the designated AD Category I bank to the Reserve Bank.
The Embassy of India’s Business Centre
he website of the Embassy of India, Vienna, and its ‘Business Centre’ offer a wide variety of business related information, carefully selected to meet India-Austria’s business demands. In our Business Centre, companies not only have the opportunity to find relevant information on India-related trade matters, but can also interact with the commercial wing of the Embassy by submitting their online trade inquiries.
Additionally, the Embassy compiles a monthy economic and commercial report for Austria, which is targeted at Indian business readers and trade corporates. The same can be downloaded directly from our Website or if you wish to receive it via email, you can register your email by sending a request to email@example.com. Besides its online presence, the Embassy also has a Business Centre Facility, located
on the first floor of the Main Chancery building on Kärntner Ring 2, 1010 Vienna. The space is ready to welcome businesspeople and parties interested in requesting, exchanging or providing information on India-related business matters.You can either schedule an appointment with a representative of our commercial wing at the contacts given below or simply visit us during our opening hours Tuesdays and Thursdays from 11AM to 1PM.
The Business Centre is opened tuesdays and FRIDAYS (NEW!!) from 11am to 1pm without appointment. For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below. Marketing Officer: firstname.lastname@example.org or 01 505 8666 30 Marketing Assistant: email@example.com or 01 505 8666 31
THE MONTHLY ECONOMIC AND COMMERCIAL REPORT (ECR) The Indian Embassy, Vienna, issues, on a monthly basis, the “Economic and Financial Report (ECR)”. Different from this “India Newsletter”, which focuses on India-related information to the Austrian community, the ECR focuses on Austria and India-Austria-related trade and business matters. The reports are available for download from the Embassy’s Online Business Centre at http://www.indianembassy.at/?page_id=1215. If you wish to receive the ECR by email as it is issued monthly, please email a request to firstname.lastname@example.org
10 | India Newsletter
Investments will bring co on par with global export base An Interview with Kevin Thenaman, Caterpillar’s Country Manager for India, China and ASEAN
espite the slowdown in the economy and infrastructure sector in India, the $60.138 billion (in 2011) construction and mining equipment major is bullish about India.
well-being of a country, Government has the responsibility to maintain appropriate levels of productive investment in infrastructure while providing a level playing field for private investors and suppliers.
After launching the backhoe loader manufacturing facility, the company is now planning to invest $150 million in a manufacturing plant for Perkins powerful 4000 Series engines.
Public financing should continue to comprise the bulk of infrastructure investment and much more is required to improve the situation in infrastructure space through reforms.
In an interview with T E Narasimhan, Caterpillar’s Country Manager for India, China and ASEAN, Kevin Thenaman said these engines are manufactured only in UK right now. He added, Caterpillar India continues to look for additional ways to invest in India to support our growing base of customers.
Despite several plans to introduce single window clearance mechanisms, there have been little visible improvements. A holistic reform in the power sector is also imperative to put the power sector on a strong growth path.
Thenaman is of the opinion that increasing power deficit is impairing the efficiency of manufacturing operations and reducing their global competitiveness. Edited excerpts: Q: Giving the current slowdown in India, how bullish Caterpillar about India? A: The GDP growth contraction in first quarter this fiscal from eight per cent plus forecast to 5.3% is a matter of concern to Caterpillar. However, we are bullish on long term prospects for the mining and infrastructure industries. While both these sectors have traditionally been controlled by state-owned enterprises, increased emphasis on private participation is opening up more and more opportunities for both domestic and international players. This certainly indicates acceptance of global standards and best practices which is bound to present great opportunities to foreign players like us. This also puts Caterpillar in a position to offer specific solutions that can bridge the gaps critical to the progress of the Indian industry. Having stated this, Caterpillar India continues to look for additional ways to invest in India to support our growing base of customers. Any Government action/ policy required to boost the sentiment? To promote growth, competitiveness and the overall
Today, the increasing power deficit is impairing the efficiency of manufacturing operations and reducing their global competitiveness Q: In 2011, Caterpillar announced $210 million investment plan for India including setting up an engine manufacturing facility, for electric power geneneration sets and expanding off-highway truck manufacturing facility in Chennai. What is the current progress? Where will the facility come up for engines? Is there any revision in the investment? A: No other region of the world can match the growth opportunities that Asia presents for Caterpillar and its dealers. In particular, the aggressive plans for infrastructure development in India represent a tremendous opportunity to serve existing and new customers.
The 4000 Series is currently only manufactured at Perkins’ Stafford facility in the U.K. The India plant will serve the growing demand from the Asian markets while the Stafford facility will concentrate on supplying customers in Europe, the Middle East and Africa and South America Q: Overall is there any change in Company’s business strategy in India? Earlier the company had said that the focus will be on domestic markets; considering the current scenario will India be a sourcing point for Caterpillar Inc? India continues to be our focus for longterm. In fact, Caterpillar’s presence in India is stronger than ever today. We currently employ close to 3,000 people in India across five facilities and are investing in our operations across to support the ever-increasing customer base here. India is already one of the primary sourcing hubs for us. About 80-90% of the offhighway trucks that are manufactured in India are exported. How is the backhoe loader manufacturing facility in Thiruvallur near Chennai doing? What is the current capacity and utilization? The facility is close to or near capacity, but we should not give unit volumes. Presently our dealers are in the process of ramping up their branch network. It will increase from 132 branches to 176 branches by 2013.
In April 2012, Caterpillar launched the company’s new backhoe loader manufacturing facility in Thiruvallur near Chennai. The new facility not only strengthens the company’s growing presence in India but also augments the distribution channel for this popular earth-moving machine by bringing in enhanced local production capabilities.
Q: In April 2012, you said this facility will cater to domestic market. Still the plans remains the same?
Caterpillar has decided to invest $150 million in a new plant to manufacture Perkins powerful 4000 Series engines in India.
Q: By 2015 where do you see Caterpillar in the Indian market in terms of market share?
It is envisaged that the workforce will grow from 60 employees at the plant’s inception to approximately 450 when it opens in 2013.
A:We will continue the production of the current 424B Model in two variants. We plan to add more models in the next 2-3 years, both for the domestic and the export market.
A: We are bullish on India given the huge growth potential of the economy and we hope to capture a significant share of the market. Caterpillar is a global leader in most markets and we aim to be the same in India.
India Newsletter | 11
Indian Industry Sector Close-Up
he Indian food services industry is expected to grow at a compound annual growth rate (CAGR) of around 12 per cent during 2012-2015, according to a RNCOS research report, ‘Indian Food Services Market Forecast to 2015’. According to another report, the industry is estimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015, according to a Franchise India report released at the Indian Restaurant Congress. “In the future, the organised market is expected to grow even faster - at around 20 to 25 per cent per annum,” says Mr Gaurav Marya, President of Franchise India. India has emerged as the fifth most favourable destination for international retailers, according to A T Kearney’s Global Retail Development Index (GRDI) 2012. The country is fast becoming an important investment destination for foreign players with companies such as Starbucks and American brand Dunkin’ Donuts marking their entry into the country. India has also been recognised as one of the largest potential market for organic food consumption worldwide. The organic food is invariably increasing among the Indian retailers, especially with the niche retailers, as per RNCOS research report titled, ‘Indian Organic Food Market Analysis’. The report further expects that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent. Key Players The major players operating in the Indian food and beverages industry include Dabur India Ltd, Godrej Industries Ltd, Hindustan Lever Ltd, Britannia Industries Ltd, ITC Ltd, Nestle SA, PepsiCo, Inc, Cadbury Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Ltd.
• India has emerged as the fastest
growing market for Domino’s, outpacing US. In India, the firm recorded an annual growth rate of nearly 50% for the fifth consecutive year
• McDonald’s India plans to invest Rs
1,000 crore (US$ 180.83 million) in
12 | India Newsletter
the next three years, taking up its total outlets to 500. The informal eating-out (IEO) industry in India is growing steadily at 15 per cent per annum
• Emerging foods categories such as
muesli, oats and olive oils are getting increasingly competitive with more food marketers aiming at capitalising on the increasing demand for health food. Edible oil major Marico will extend its Saffola brand into the Rs 100 crore (US$ 18.08 million) muesli market soon, and is expected to be followed by GlaxoSmithKline Consumer Healthcare (GSKCH)’s within few months. Meanwhile, the Rs 350 crore (US$ 63.29 million) packaged olive oils segment, meanwhile, is growing faster than oats and muesli. Last year, olive oil consumption increased 49 per cent, on top of a 46 per cent growth in the previous year
• Frozen yogurt chain, Red Mango
plans to expand across the country by launching 15-20 outlets in metro cities by next year. According to Technopak, the Indian market frozen yogurt will grow to US$ 5 billion over the next three years, fuelled by the entry of new players and growing demand for health foods
• Korea-based frozen yoghurt maker, Yogurberry plans to set up seven new stores in the country by end of next year and another 100 over the next five years. “The expansion plan will begin with new stores in Chennai and Bengaluru, and additional stores in cities like Delhi-NCR and Mumbai,” according to an official
According to a new research report by RNCOS, the demand for various fast food items is consistently rising in India. The most delectable of them all is Pizza, which has now emerged as one of the most favourite fast food items of the Indians especially the young generation. As per market estimation, the Indian organised pizza market will surge at a CAGR of more than 27 per cent during 2012-2015. Furthermore, management consulting firm Tecnova estimated the Indian packaged food market at US$ 10 billion in 2010 and expects it to grow 20 per cent CAGR to US$ 30 billion by 2015.
Food Processing Industry With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub of processed food. India’s food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, beverages, fisheries, plantation, grain processing and other consumer product groups such as confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc. India is the world’s largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, ‘Indian Dairy Industry Analysis’. The study anticipates that the milk production in India will grow at a CAGR of around 4 per cent during 2011-2015. The food processing industries attracted foreign direct investments (FDI) worth US$ 1,456.20 million between April 2000 to June 2012, according to the latest data published by Department of Industrial Policy and Promotion (DIPP). Beverages Juice production in India is witnessing a consistent increase in 2012. Production in January 2012 climbed to 20.4 million litre, as per Centre for Monitoring Indian Economy (CMIE) data. Coca-Cola plans to invest US$ 5 billion over the next 10 years as it expands its capacities in India. The company expects India to be among its top five markets worldwide by 2020, according to Mr Muhtar Kent, Chairman and Chief Executive Officer (CEO), Coca Cola. “With the growing popularity of the food and beverage businesses in India, the investment community has made significant investments here. Last year, these businesses received US$ 256 million of funding overall, while this year has already seen US$ 43 million being invested,” highlighted Mr Sandeep Kohli, who, as the former India Head of Yum Restaurants, brought brands like KFC and Pizza Hut to the country.
Government Initiatives According to the recently announced Union Budget 2012-13, following initiatives will be taken by the Government under the National Mission on Food Processing:
• A new centrally sponsored scheme titled ‘National Mission on Food Processing’ to be started in 2012-13 in co-operation with State Governments
• Steps taken to create additional food grain storage capacity in the country
• Subsidies fully provided for effective administration of the proposed Food Security Legislation
• To promote private sector activity
and invite foreign investments in the sector the Government allows 100 per cent FDI in the food processing & cold chain infrastructure
Some of the other initiatives include:
• South Africa seeks investment for its flourishing food processing sector from India.The country ranks among the top 10 investing countries in
South Africa, with investments estimated at over US$ 6 billion to date
• India and Taiwan are looking to ex-
pand tea trade between the two countries. A business delegation from India visited Taiwan from June 28 to July 1, 2012. The delegation held meetings with important stakeholders of the Taiwan tea industry and discussed ways and means to increase cooperation between tea companies of the two nations
• South East Asia has become the larg-
est buyer of Indian marine products with a share of 40 per cent in volume and 25 per cent in value (in terms of US$). The marine products exports touched 862,021 tonnes valued at US$ 3.51 billion in 2011-12
• Spices exports from India stood at
575,720 tonnes in 2011-12, as against 525,750 tonnes in 2010-11.The total export earnings rose by 43 per cent at Rs 9,783 crore (US$ 1.77 billion) as compared to Rs 6,841 crore (US$ 1.24 billion) earlier, according to Spices Board of India
Road Ahead With massive scope for value addition, growing trend in the consumption pattern of processed food products in India and many fiscal incentives being planned by the Government, this sector is capable of maintaining the growth momentum in the future. Food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market. Out of the total investments worth US$ 750 million in 2012, about US$ 165 million has gone into purely front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms. Foreseeing the future growth, many big international players are entering the Indian market by making deals with domestic players. This trend will emerge more strongly by 2015, providing opportunities to local players to widen their product portfolios. India Newsletter | 13
Trade Shows & Events
9th INDIA INTERNATIONAL TEXTILE MACHINERY EXHIBITION 2 - 7 DECEMBER, 2012, MUMBAI
14 | India Newsletter
Trade Shows & Events
The Partnership Summit 2012, themed ‘New Age Innovation Partnerships’, would be the platform for exploring the various facets of innovation that can drive future global growth and the roles that India can play in fostering and strengthening the forces of such innovation. To be held in the progressive city of Hyderabad, it would highlight the cutting edge technologies currently emerging out of India and build new partnerships for evolving and dispersing innovation. Global Economy
New Age Innovation
The first half of 2011 witnessed major socio-political developments that have significant bearing on the global economy. The Arab Spring brought regime change in several Middle East and North African nations as well as renewed conflicts in others. In Japan, the earthquake and tsunami devastated lives, ruptured the economy and flagged safety of nuclear power installations. Stressed EU economies are still fragile and need support from fellow members to overcome high public debt.
The Indian economy is undergoing ma-
As the world rebalances and multi-polarity emerges, new forms of innovation will be required. Most critical, these formats would have to be jointly developed through collaborative research. For the emerging world, innovation is needed to develop cost-competitive new products to meet felt needs of emerging middle classes - for education and healthcare, for connectivity, and for sustainable lifestyles. For higher income consumers, innovation would be related to carbon emissions and energy efficiency as well as research itself. India is already a laboratory for the world in many of these areas.
According to the IMF’s World Economic Outlook update in June 2011, global activity is undergoing temporary moderation, while a multi-speed recovery continues in different parts of the world. World GDP went up by 4.3 per cent in the first quarter of 2011 and the IMF expects this level to be sustained in 2011 and 2012. The IMF calls for fiscal consolidation and financial sector reforms in advanced economies and demand rebalancing in emerging countries. The specters of inflation and financial volatility as well as euro area financial stability and protracted unemployment are mentioned as downside risks to global growth. Within this scenario, the urgency of global partnerships remains keen as collective action for recovery continues to be an imperative. Most important, the global imbalances that were at the core of the crisis need to be redressed. New thinking on these issues could alleviate some of the prevailing quagmire.
jor structural transformation, driven by favorable demographics, rising per capita incomes and facilitative macroeconomic and sectoral policies. Critical policy actions are expected in the coming few years that will further unlock the vast potential of GDP expansion that will serve as a crucial hub of growth for the global economy. India is setting the pace for a new global economic model that is increasingly defined by innovation. Driven by domestic consumption, an innovative entrepreneurial class, and global integration, India’s new development experience is being termed the Inclusive Growth model. The chief characteristic of this model is creating an enabling climate for doing business that fosters rapid expansion of the economic pie, accompanied by targeted Government schemes channeling income to those who need it most. India’s growth is an example of an economy that, in the words of Lawrence Summers, is “A consensus based globally not on the idea that competitiveness was in service of a nation trying to win a zero sum game, but rather on the idea that through international integration, nations could diversify, pursue their strengths, and realize together the benefits of larger global markets.” Innovation at all levels of economic activity is the hallmark of the new Indian growth model.
In particular, India would need to innovate to strengthen partnerships with its traditional friends as well as with new markets. Its trade profiles and investment relations with a resurgent China and a vibrant Africa would be particularly relevant for its future interests. The Partnership Summit 2012, the flagship international event of the Confederation of Indian Industry, would bring together economic and commercial policymakers, businesses, innovators, and the public at large for relevant discourse on the current status of innovation in all spheres of activity, and would help evolve a roadmap for leveraging innovation for global inclusive growth and development. To be held in Hyderabad, one of modern India’s iconic urban agglomerations, in January 2012, the eighteenth edition of The Partnership Summit will be cohosted by the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry, India, the Government of Andhra Pradesh, and the Confederation of Indian Industry.
India Newsletter | 15
Why This Summit? To provide a platform to promote Indian Entrepreneurs / SMEs through NRIs and PIOs in various countries to establish and develop contacts for identifying various opportunities in Exports, Investment, Joint Ventures, Collaborations, New Technology, Marketing, Distributorship, Promotion, Business Alliances and other services.
Indian economy in the 21st century includes all the major factors contributing to rapid all round growth - the strength of intellectual inputs, the unbridled spirit of entrepreneurship and above all the quest for knowledge. Indiaâ€™s private sector, characterized by its dynamic and competitive nature has been a key driver for the economic growth witnessed by India in recent times and has been a major driver for attracting foreign investments in the country. India has continually attracted the largest quantum of investments from its Diaspora. India has now become an open potential market in various growth sectors like Infrastructure, Power, Hospitality, Education and other manufacturing and service sectors. NRI and PIO Businessmen are looking for business opportunities in their home town and also started exploiting opportunities in other parts of India.
16 | India Newsletter
Benefits to the Partcipants - Networking with Local and Global Entrepreneurs and SMEs - Interaction with business tycoons - Identify strategic business partners and associates in India and other countries - Explore new business ideas and models - Understanding best business practices and opportunities in India - Interaction with Policy Makers, MDs and CEOs of reputed Companies - Understanding of various investment options and routes in India - Understanding of various policies, schemes and incentives for NRIs -Identify Indian companies for business promotions
Himachal Pradesh Indian State Profile
Popularly known as the Devbhumi – “Land of the Gods”, Himachal Pradesh is a beautiful hill state in India, nestles in north-west region of western Himalayas. The state is landlocked with the Tibetan plateau to the east, Jammu and Kashmir to the north, and the Punjab to the west. However, the state stands apart from its neighbours in terms of its sheer topographic diversity and breathtaking pristine natural beauty. From vast tracts of high-altitude Trans-Himalayan desert to dense green deodar forests, from apple orchards to cultivated terraces, from snow capped high Himalayan mountain ranges to snow fed lakes and gushing rivers. Himachal Pradesh is a tiny hill state whose pleasant summers make it a popular holiday resort. The Raj still lingers in Shimla, the state capital and former summer capital during British rule. Kullu-Manali are neighbouring resorts, surrounded by pine covered hills and lush meadows. Himachal has, in addition to popular resort towns, a series of secluded hill retreats ideal for interested anglers, trekkers and those wanting a quiet getaway. Many of these include: from Shimla – Mashobra, Kufri, Naldehra; those around Kullu-Manali include Manikaran, Naggar and Brighu Lake; the barely accessible valleys of Lahaul and Spiti are a trekker’s delight.
local tribes RESTING AT RIVERBED
Shimla Situated in the north-west Himalayas, Shimla is the capital of Himachal Pradesh. Spread across 12 kms along a ridge that overlooks terraced hillsides and cultivations, Shimla is magnificently robed in dense forests of oak and pine, fur and rhododendron, and it is best to travel here on the slow train from Kalka. Shimla also is a convenient base for variety of adventure sports such as Skiing, Trekking, Fishing and Golfing etc.
India Tourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 Fax: +49 (69) 242949-77 www.india-tourism.com email@example.com
Great Himalayan National park
India Newsletter | 17
INDIAN MOVIE EVENING: PEEPLI LIVE
Friday, October 19th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Drama / History Directed by: Anusha Rizvi Starring: Omkar Das Manikpuri, Raghubir Yadav, Shalini Vatsa Released: August 2010 Duration: 104 Minutes Language: Hindi Subtitles: English Synopsis: Natha a poor farmer from Peepli village in the heart of rural India
is about to lose his plot of land due to an unpaid government loan. A quick fix to the problem is the very same government’s program that aids the families of indebted farmers who have committed suicide. As a means of survival Farmer Natha can choose to die!!! His brother is happy to push him towards this unique ‘honor’ but Natha is reluctant. Local elections are around the corner and what might’ve been another unnoticed event turns into a ‘cause celebré’ with everyone wanting a piece of the action. Political bigwigs, high-ranking bureaucrats, local henchmen and the ever-zealous media descend upon sleepy Peepli to stake their claim. The question on everyone’s lips - “Will he or Won’t he?” As the mania escalates what will be the fate of Farmer Natha; nobody seems to care how he really feels?
WARZONE - INDIAN CONTEMPORARY ART EXHIBITION Every Sunday from Sep. 9 to Nov. 25 (10-18h) | Kunstmuseum Artemons, Hellmonsödt, Linzer Straße 19
FREE ENTRY More info under Tel.: 0043 699 / 16 68 88 81 firstname.lastname@example.org www.contemporary.artemons.at
OTHER EVENTS More Information below
Talk-Series ‘Zu Gast bei Elisabeth Al-Himrani’ WA-KI (Peter Appelius), Textiltechniker, Taucher, Musiker und Wanderer dur spirituelle Welten
18 | India Newsletter
When: October 18th, 19:00 Natya Mandir - Börseplatz 3/1D, 1010 Vienna www.austro-indian.at