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INDIA NEWSLETTER Published by the Embassy of India,Vienna Year 2 | Issue 23 | November 2012



INDUSTRY India Newsletter | 1



Snapshot of last month’s Highlights



he Government of India will spend 3.9 billion in 2011 to US$ 19.3 billion by 2020. Rs 300 crore (US$ ndia is world’s top- 56.75 million) on cyranked country in ber security this year. ecruitment activities in India registered a growth of 9 per cent in terms of life insurSeptember 2012 as compared to the ance density. It is fol- corresponding period last year. ig data will drive US$ 28 billion lowed by China, Jaof worldwide information technology (IT) spending in 2012 and is pan, US and UK. expected to reach US$ 34 billion in



he revenue from data services is expected to increase from US$


tronically at 400 locations, in the first phase, by January 1, 2013.


he value of Participatory Notes (PNs) issued based on equity de-

rivatives touched a five year high of Rs 73,260 crore (US$ 14.03 billion) at the end of August 2012.


ndian consumers spend between US$ 27 and US$ 43 a month on an

average on 3G services.


he volume of investment in Ahmedabad, Bhubaneswar, Chandigarh, Coimbatore, Jaipur, Kochi, Indore, Nagpur, Vadodara 2013. Visakhapatnam ndia’s tablet personal computer and (PC) market is expected to touch by over 7.3 million units by 2015-16, from increased around 1.7 million units currently. seven times in the ndia has emerged last two years. as one of the top he eight core sectors—coal, five investment desticrude oil, natural gas, petroleum nations in the world. refinery products, steel, cement and


etail investors will get the e-IPO facility to submit their bids elec-





oreign institutional investors’ he tablet market (FIIs) net inflow into Indian equiin India has reg- ties stands at US$ 18 billion so far in 2012, the second highest in a calenistered a growth of dar year since 1992. 673 per cent during ive Indian companies—Larsen April-June quarter of 2012, from a year ago & Toubro, Hindustan Unilever, Infosys, TCS period. and Sun Pharma— E firms invested about US$ 2.52 billion in 97 deals during the July- have entered the list September 2012 period in India. of world’s 50 most inE deals in the Indian FMCG space novative firms.

electricity—touched a seven-month

year ago.

exceed US$ 200 billion in ten years.


were recorded at US$ 351.96 mil-

lion during January-September 2012, as compared to US$ 71.30 million a

2 | India Newsletter


igitisation in the top four metros in India—Delhi, Mumbai, Chennai and Kolkata—has reached 93 per cent as on October 30, 2012.

high, growing by 5.1 per cent in September 2012.


oreign investments in India through participatory notes touched a seven month high at Rs 1,46,600 crore (US$ 27.30 billion) in September 2012.


ndia’s primary healthcare market worth US$40 billion is expected to


Minister Doris Bures IN OFFICIAL VISIT TO India India-Austria Relations

fic systems. Their technologies are used e.g. in traffic electronic data transmission, traffic management, in electronic toll systems, LED signalling technology or traffic controlling units.

Accompanied by a top-class economic and technology delegation, Transport and Technology Minister Doris Bures travelled to New Delhi for four days. In the Indian capital, Bures met four Indian Ministers to present the excellent Austrian technology successes in the areas of transport, railways, Smart Cities and river shipping. On the occasion, the following agreements have been signed: Letter of Intent for the area of transport technology with the Ministry for Roads, Surface Transport and Motorways: Thanks to the cooperation agreement (“Letter of Intent”) for the area of transport technology, the economic cooperation of the two countries in the transport and infrastructure area will be expanded even further. Austrian companies such as Kapsch Traffic Com, Swarco or Frequentis are technology leaders in the area of intelligent traf-

India too is interested in this know-how from Austria, in no small part due to the fact that India is committed to expanding its traffic infrastructure. In the context of the “National Highway Development Programme”, a total of 157 billion Euros will be spent on the upgrade of road infrastructure by 2015. Memorandum of Understanding with the Ministry of Shipping: In the field of inland water transport technology, Austria has a number of world-class services to offer. For example when it comes to waterway management. The river waterway information system “RIS / River Information System” was developed thanks to Frequentis and Via Donau, a subsidiary of the Federal Ministry for Transport, Innovation and Technology. It is the role model for all of the European river shipping and already in use at the Nile River as well. In terms of language and data communication as well as port infrastructure, Austrian companies can refer to a number of successful projects as well. Finally, security technologies for coastal and port management made in Austria are among

the best in the world as well. India is barely using the transport capacities of its rivers. There is no noteworthy transport of persons or goods at any of the rivers such Ganges, Indus, Gofavari, Krishna, Kaveri, Tapti, Godavari, Mahanadi or Narmada. Actually, transport of goods by shipping is one of the most environment friendly means of transport. Per ton of freight moved, less than half the amount of CO is generated when compared to transport by truck.The Indian government has recognised these untapped capacities and tackled the “Indian National Waterways”. A total of four national waterways are to span the country. Some of the waterways have already been completed. The 1000-km long Waterway Number 4 (it connects the states Andhra Pradesh, Tamil Nadu and Pondicherry) alone is to see an annual transport of 11 million tons of freight in a couple of years according to the public expansion plan. The primary goods will include coal, rice, grain, cement and fertilisers. For comparison: At the Austrian part of the Danube, 9.9 million tons were transported in 2011 according to Statistics Austria. Officially, the waterway is to be completed in 2013. SOURCE: Austrian Ministry of Transport and Technology

Prammer to PARLIAMENT PRESIDENTS MEETING in DELHI India-Austria Relations

pates in the conference. Barbara Prammer, President of the Austrian National Council, called on her colleagues to consistently put women’s issues on the political agenda.

The 7th meeting of parliament presidents took place in New Delhi. This exchange of information has been organised by the Indian Parliament and by the Inter-Parliamentary Union (IPU). Michelle Bachelet, managing director of the UN women’s organisation UN Women, also partici-

Presidents of parliaments from around the world will discuss the topic of “gender-aware parliaments” for two days. The focus of the talks: measures to achieve more gender justice in accordance with democratic structures, such as consistent increase of the number of women in leading administrative positions and political functions, targeted plans for supporting women, gender mainstreaming and awareness raising among MP. President of the National Council Prammer emphasised in her statements the topicality of a gender-aware culture and

infrastructure of parliaments. Among other things, she pointed out that increasing the share of women in parliaments around the world is a major factor for the change of political culture. She mentioned the promotion plan for women of the Austrian Parliament as a positive example: At the moment, the leading positions of the parliament head office are staffed almost equally by women and men. However, Prammer has a critical opinion of the ratio of women and men among the MPs. According to the ranking of the IPU, Austria ranks 35th in the world with a share of 27.9 per cent of women in its Parliament. Prammer said that this may be relatively good in comparison, but it by far is not satisfactory. Being a tried, India Newsletter | 3

Articles tested and useful tool, quotas should be considered periodically in this context. Good Austrian-Indian contacts Meira Kumar, Speaker of the Indian Lower House (Lok Sabha), emphasised in a bilateral talk that she and Prammer have been connected by a cordial relationship since the beginning of Kumar’s term in

office. Her first foreign visit after having assumed office led her to Austria in September 2009 following an invitation by the President of the National Council. She values especially Prammer’s support for women’s issues, also on the international parliamentary level, and is grateful that Prammer attends the conference of

parliament presidents. Kumar also emphasised the traditionally good contacts between India and Austria. In this context, Prammer spoke of the preliminary works for the project “Young Leaders’ Project” between India and Austria intended to further deepen the relations. SOURCE: Austrian Parliament

MINISTER Berlakovich of Austria visits IndiA India-Austria Relations

The Federal Minister for Agriculture, Forestry, Environment and Water Management, Dr. Nikolaus Berlakowitsch, visited India from 17th to 19th October 2012

to participate in the 11th meeting of the Conference of the Parties (COP 11) to the Convention on Biological Diversity (CBD), which is organized by the CBD

Secretariat. The High Level Segment was held from 17-19 October 2012 at Hyderabad, Andhra Pradesh, India, 17-19 October 2012.

Ambassador R. Swaminathan meets Barbara Prammer at the opening of the exhibition “Innovation country Austria” India-Austria Relations From Monday 15 to Friday 19 October 2012, the exhibition “Innovation country Austria” in the Pillar Hall (Säulenhalle) presented trend-setting technological developments made by Austrian companies. The exhibition was organised on initiative of the Federal Ministry for Transport, Innovation and Technology together with Austrian enterprises. It gave the opportunity to take a look at the diverse innovation achievements of the Austrian economy. The innovations range from

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a pizza vending machine over a control unit to a satellite model. A model of the Ariane rocket in front of the Parliament refers to the event inside the Parliament building. Ambassador of India to Austria, R. Swaminathan, attended the opening of the exhibition, where he met Parliament President, Mrs. Barbara Prammer. Foto Source: Parlamentsdirektion/BildagenturZolles KG/Mike Ranz


India will become third largest carmaker by 2018 By Felix Kuhnert, Partner at PwC


ndia is likely to become the third largest car producer by 2018 (after the US and China), helped by a shrinking European car market and shift in manufacturing to emerging economies. At the end of last year, it was fifth after South Korea, Germany, Japan and China. Felix Kuhnert, Partner at PwC and the Automotive Industry Leader for Europe, said registration numbers have declined in Europe for the fifth year. Apart from the German firms (and Land Rover), most carmakers in the region are struggling to post growth. The BRIC nations, along with recovery of the US and Japanese markets, are expected to be “saviours” of the global car industry, which is slated to grow to 79 million units this year (from 74 million last year). “In Europe, the capacity utilisation is significantly below the average industry average of 75 per cent. The market cannot grow there because the demographics are such that the population is declining. “The scrappage schemes announced a few years back had sucked a lot of de-

mand out, because of which today customers are not buying cars,” Kuhnert said. This is why Kuhnert feels that though Europe may see growth from next year, reaching the 2007 production of 19 million units will prove elusive – in 2011, only about 16 million cars were made in Europe. IMPROVING EXPORTS India’s car export woes may also be over from next year. Kuhnert said that Northwestern Europe (the UK, France and Germany) are expected see an improvement in small car demand from next year, though southern countries such as Spain and Italy will take longer to turnaround. Europe is the biggest destination for Indian made small cars. Renault-Nissan and Hyundai export about half their production from India, while market leader Maruti Suzuki also supplies significant numbers overseas.

Five Indian firms among world’s most innovative As published on Forbes magazine’s list of The World’s Most Innovative Companies


ive Indian companies including Larsen & Toubro, Hindustan Unilever and Infosys are ranked on Forbes magazine’s list of The World’s Most Innovative Companies topped by four US companies. Larsen & Toubro with an annual sales growth of 19% is ranked ninth in the world followed by Hindustan Unilever (12) with 11.4%. Infosys (19) comes third with 12.7 percent growth thanks to what the US business magazine called a lower “innovation premium.” This measures the difference between the value of the company’s existing businesses and its expected future innovations. Companies must also have $10 billion in market capitalization and spend at least one percent of their asset base on research and development.

Tata Consultancy Services (29) with 19.5% was fourth among Indian companies with Sun Pharmaceutical Industries

(38) with a 14.6% growth bringing up the rear.

He was the first sales person, has done

Four US companies - Cloud computing king, drug major Alexion Pharmaceuticals, internet retail giant and open source software leader Red Hat took the top four places.

ternet consulting practice, is a network

Forbes said its analyses show at least three key things that the innovative companies do to create and sustain an innovation premium.

zine noted.

These were: How well companies leverage people, process, and philosophies, differentiates the best in class from the next in class when it comes to keeping innovation alive and delivering an innovation premium year after year.

er firm, Sun Microsystems, Forbes said.

Forbes also featured SD Shibulal, cofounder and CEO of Infosys (#19 this year; #15 last), calling him “both observer and experimenter.” In his 30 years at Infosys Shibulal says “there is nothing that I have not done.”

Forbes said it had found that successful

account management, launched its inexpert, helped design and launch its first ecommerce application, and has been the head of both delivery and sales, the maga-

To get a new perspective, Shibulal took a five year sabbatical to work for anothHe’s also known as an experimenter and “gadget freak” and revered as a “gizmo guru.”

leaders personally understand how innovation happens and they try to imprint their behaviours as processes and philosophies within their organization. India Newsletter | 5


India gaining importance in G20 by US Federal Reserve chairman Ben Bernanke


ndia is gaining in importance among the G20 countries according to US Federal Reserve chairman Ben Bernanke, who was in Mumbai along with US treasury secretary Timothy Geithner.

is going on in the US economy and the Indian economy, and they also talked about monetary and regulatory policies. Bernanke’s visit is the first by a sitting Fed chief.

Bernanke and Geithner had two meetings in Mumbai - a session with business leaders and a subsequent meeting with the top management of Reserve Bank of India (RBI). Addressing the media, Bernanke said, “India is clearly becoming a more and more important player on the world stage in G20 context, in terms of its role in the global economy. It is very useful for us to exchange ideas and build the basis for future collaboration.”

Introducing Bernanke, the central bank’s governor D Subbarao said that the US Fed chief stood for his aggressive use of quantitative easing (QE) and the use of innovations as he went along. “QE became ‘credit easing’ when private assets were bought to stabilize financial markets, followed by another unconventional move - ‘operation twist’,” said Subbarao. He added that the crisis has pushed central bank policy making into uncharted territory. “We will not know for many years whether the policy mix we have followed is right. Even so, in real time, all

The Fed chief said that in the RBI meeting, the central bankers discussed what

of us have to struggle with the challenge of managing the new trilemma - balancing fiscal sustainability, price stability and financial stability,” Subbarao said. Earlier, US treasury secretary Geithner met industry captains in a meeting organized by CII. They discussed ways in which the US and India can deepen bilateral economic engagement. Other participants included CII president and Godrej Group chairman Adi Godrej, CII director general Chandrajit Banerjee, HDFC chairman Deepak Parekh, ICICI Bank MD Chanda Kochhar, Kotak Mahindra Bank MD Uday Kotak, Jubilant Life Sciences MD Hari Bhartia, TVS Motor Company CMD Venu Srinivasan, IDFC MD Rajiv Lall and Tata Sons director ( finance) Ishaat Hussain.

Indian engineering services in demand Report released by Nasscom and Booz & Company


espite a slowdown in the world economy, Indian engineering service providers will see growth due to availability of skilled talent pool coupled with a shortage of engineers in the developed markets. According to a report released by Nasscom and Booz & Company, the growth is attributed to flexible business models, shorter product life cycles of engineering companies, decreasing time to market and flexibility in offering end products. Indian engineering research and development (ER&D) market is expected to add to future growth with automotive, consumer electronics and telecom contributing by over 50 per cent to offshoring

revenues by 2020, the report said. Ravi Pandit, Chairman, Nasscom Engineering Forum, Pune and Group CEO, KPIT Cummins, told Business Line that the future growth will be driven by a need for IP and co-innovation, to meet the growing demand in emerging economies as well as fast evolving customer preferences. “Global automotive or aerospace companies are increasingly asking Indian companies to co-develop a product instead of working on specifications set by them such as building infotainment systems inside a car or new wing technology for an aircraft,” said Suvojoy Sengupta, Managing Director, India, Booz and Co.

Indian engineering research and development outsourcing industry is set to reach $37- 45 billion by 2020, according to the report. This will be about 35 per cent of the overall ER&D market, which is estimated to reach $118 billion by 2020. Currently, this market is pegged at $10.2 billion. This will be driven by companies in sectors such as chemical, medical and automotive. In addition, the Government is expected to provide a boost to engineering in India through investments in infrastructure development in 2012-17 in telecom and energy and construction sector, the report added.

Lemken sets up first non-European plant in Nagpur German company settles in India


n a bid to take a slice of the estimated Rs 3,000-crore agro equipment market in India, Germany-based manufacturer Lemken GmbH and Co KG has set up its first non-European manufacturing unit at Butibori, Nagpur.

The company has invested Rs 60 crore to set up this facility and plans to implement a second phase, involving an equal amount, to make seedbed preparation implements, cultivators and disc harrows a year or so later.

plans to export to countries in SouthEast Asia and Africa form here.

In the first phase of operations, its wholly-owned subsidiary Lemken India Agro Equipment Pvt Ltd, will make hydraulic reversible ploughs that can be used on tractors over 40 HP in power.

Nicola Lemken, Partner, Lemken, and the seventh generation of ownership of the family-run-business, said the Nagpur plant will cater to the growing demand for agro equipment in India. Lemken also

“All the equipment will be locally made from imported boron steel, Arvind Kumar, CEO, Lemken India said, adding local manufacture will make equipment 40 per cent cheaper in comparison to importing.

6 | India Newsletter

The Nagpur facility has the capacity to make 3,000 units annually in the first phase, which will be scaled up to 5,000 units in the second phase.


German certification firm TUV SUD sets up lab in Gurgaon German company settles in India


erman testing and certification company TÜV SÜD has set up a laboratory in India, equipped to meet requirements across sectors, from nutritional products and food supplements to leather and toys to jewellery. Touted to be the company’s largest testing laboratory across India, Bangladesh and Sri Lanka, the lab comes at a time there is greater consumer and regulatory concern on the presence of pesticide residues in food or trace elements in toys, Ishan Palit , Chief Executive of TUV SUD’s product service division told Business Line.

The €1.7 billion company has 10 labs in the country, but the new lab located in Gurgaon will be a hub to service companies in North India, similar to an existing hub in Bangalore for companies in South India. Its other labs are located close to industrial clusters, like Ambur in Tamil Nadu that exports leather products; or labs to certify textile and apparel, located in Mumbai, Delhi and Bangalore. The company, that has been present in India since 1994, will invest € 5 million (about 35 crore) in the new lab and the other satellite labs, he said. The company clocked revenues of € 20 million (Rs 140 crore) in 2011.

An accredited lab for food testing, the company is also notified to certify medical equipment, he said. The new lab is equipped with technology ranging from handling the physical and chemical aspects of testing, he said. So in food or textile, it would be testing products to check their packaging or ability to withstand handling pressures, and these would be handled separately for different products, he explained. The chemical analysis would involve more sensitive and dedicated equipment to check for antibiotic or pesticide residues in food, azo dyes in textile or lead in toys, he added.

India-Germany to Achieve Trade Target of €20biLLION By Shri Anand Sharma, Union Minister of Commerce Industry and Textiles


he Union Minister of Commerce Industry and Textiles Shri Anand Sharma has said that India and Germany will achieve the trade target of Euro 20 billion (USD 26.16 billion) this year. The trade between the two countries stood at USD 23.566 in 2011. “India and Germany have set a trade target of Euro 20 billion (US$ 26.16 billion) to be achieved by 2012 and I am sure that we will be able to reach this target if not cross it with efforts from both sides,” said Shri Sharma after the meeting with Dr. Phillipp Roesler, Minister of Eco

nomic and Technology and Vice Chancellor of the Federal Republic of Germany. Both the leaders also reviewed the progress of India EU BTIA and expressed the desire that it a balanced and ambitious agreement be reached soon. The Chief negotiators are meeting and a delegation is coming to pursue the issue of declaring India Data Secure which is an important demand from Indian side. “We have proposed the principal of incremental approach so that what may not happen now can be included later. But what we have on the table from both the sides, it is fairly robust. We will now leave it to nego-

tiators to bring it to its early conclusion .... We will have a ministerial scheduled either for December or January, depends on how fast they work. That time, hopefully, we will announce the conclusion of the negotiations,” Minister Sharma told reporters after the meeting. In 2011 Indian export to Germany stood at $ 8.25 billion and import were $ 15.31 billion. FDI inflows from Germany into India is around $ 4.9 billion and it ranks 8th among investors in India. FDI flow from India into Germany is $ $ 5.9 billion in 2011.

Benefits of Furnishing a Permanent Account Number (PAN) Gently compiled by Dezan Shira & Associates


s per Section 206 AA, any individual who receives any sum or income or amount on which tax is deductible shall furnish his/her permanent account number (PAN) to the tax deducting authority. Failure to furnish a PAN card will attract tax deductions at higher rates under the following terms:

• At the rate specified in the relevant provision of this Act; or

• At the rate or rates in force; or • At the rate of 20 percent. An individual and the deductor will furnish the individual’s PAN card number in the entire communication, bills, vouchers

and other documents which are sent to each other. If the PAN card number provided by an individual is incorrect/invalid then it is considered that an individual has not furnished his PAN details to the deductor and the provisions of sub-section (1) shall apply accordingly. For getting your company’s documents attested for your PAN application, please get in contact with the consular wing of our Embassy, which attests the legitimacy of the Austrian documents submitted by you. The Embassy does not process the submission of the application itself. Once the documents have been attested, these must be submitted in India via your Indian corresponding party.

For clarification or further details concerning document attestation for your PAN application, please feel free to contact our Embassy’s commercial wing. For further corporate assistance, including issues related to PAN applications, you might consider contating Dezan Shira & Associates, a specialist 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 india@, or visit India Newsletter | 7


India and ASEAN to Explore Areas of Cooperation in New and Renewable Energy By the Ministry of Information and Broadcasting


he Government of India is hosting a meeting of the Ministers of Renewable Energy of ASEAN countries and India in New Delhi. In the meeting, the Ministers in-charge of Renewable Energy of ASEAN member countries and India would deliberate upon and discuss policy and regulatory framework for promotion of renewable energy in ASEAN member countries and INDIA. Financing of renewable energy, cooperation in research and development, technology transfer and resource assessment would be specific issues that would engage their attention. Prior to the Ministerial level meeting, a two-day workshop on renewable energy of experts and policy planners from ASEAN countries and India is being organized by Ministry of New and Renewable Energy (MNRE), Department of Science and Technology (DST) and Global Innovation Technology Alliance (GITA) and is scheduled in New Delhi on 5-6 November 2012. The workshop aims at sharing of experience among participating countries on the development and deployment of renewable energy, and also identifies institutions for establishing long term cooperation between institutions in India and ASEAN countries. The workshop would also discuss technological strengths and manufacturing base of the participating countries in order to forge useful partnership. The workshop would have the benefit of discussing possible topics/projects for industrial R&D to be considered under ASEAN-India S&T Development Fund (AISTDF) which is jointly created by DST and Ministry of External Affairs, Government of India and managed by “Global Innovation and Technology Alliance” (GITA)-A Section 25 Company. Discussion on Global Technology trends in Renewable Energy Technologies, Renewable Energy Technologies and manufacturing base in ASEAN countries and India, development and deployment of renewable energy, identification of areas

8 | India Newsletter

of co-operation in R&D and technology transfer, identification of institutions for establishing long term cooperation, Focus on cooperation in resource assessment of renewable energy sources, identification of industrial R & D projects for support under ASEAN-India S&T Development Fund are the major objectives of the Workshop. About 250 participants including Policy makers and senior officials responsible for renewable energy activities in ASEAN member countries, Technology and Industry experts, from the participating ASEAN countries are expected to participate. The eminent speakers from Government, Industry and Experts will share their knowledge and expertise through presentations, panel discussions and case studies. Experts from GITA and International Renewable Energy Agency (IRENA), Abu Dhabi would make presentations on their activities. The two day Workshop will include a Technical Session covering the following themes

• Trends in Renewable Energy Technologies:Wind Power, Solar, Biomass.

• Assessment of Potential and identification of potential locations.

• Possible areas of cooperation in R&D and Technology Transfer.

• Identification of industrial R&D projects for support under ASEAN-India S& T Development Fund.

• Future Areas of cooperation in Renewable Energy. The Programme will be inaugurated by Shri Gireesh B.Pradhan, Secretary, Ministry of New and Renewable Energy. The resolution for cooperation in Renewable Energy among the ASEAN countries will be adopted in the Ministerial Meeting on 7th November, 2012.


Sweden, India seek to share energy tech know-how India Internationally


wedish energy technology companies are keen to collaborate and mutually share know-how with Indian companies apart from learning some of the best practices. Addressing the CII Green Business Congress, Marita Ljung, State Secretary, Ministry of Enterprise, Energy and Communication, Sweden, said that global warming continue to be a major challenge and there is immense pressure on natural resources. The climate change poses a great challenge for all of us with the immediate target are to bring down by at least 2 per

cent. We cannot go on this way. Innovation is key to address this and ensure sustainability. This will be possible only by research and development, she felt. She said there is need to change norms and attitude of people towards conservation. Later, speaking at the Swedish Energy Agency stall at the exposition, she said that there is heightened interest in cooperation between Indian and Swedish technology companies. Ludvig Lindstorm, Senior Program Manager, Swedish Energy Agency, said that the potential for cooperation is huge follow-

ing the National Innovation Council visit to Sweden last year. Apart from potential to work together by forming joint venture companies, there are opportunities for collaboration between companies in both the countries. This will also lead to investments as companies collaborate. Referring to some of the companies which are keen to work with Indian companies, he said Absolicon Solar is into solar collectors, ClimaCheck is into tech for heating and cooling systems, Nlab Solar is focussing on due sensitised solar cells. Several others are also keen to learn from Indian companies, he said.

India and France sign Agreement in Urban Development India Internationally


hri Kamal Nath, Union Minister of Urban Development, and Ms. Nicole Bricq, Minister for Foreign Trade, Government of France signed an Administrative Agreement in the field of Sustainable Urban Development in Paris. Speaking on the occasion, Shri Kamal Nath expressed appreciation for the related work in the field of Sustainable Urban Development carried out in France and felt that India could benefit immensely from the French experience. Earlier, Shri Kamal Nath held talks with Ms. Nicole Bricq. The two Ministers expressed satisfaction at the maturity reached in the strategic relations between India and France. The two Ministers discussed ways to enhance economic and commercial relations between the countries. Shri Nath briefed the French Minister about the recent decisions taken by the Government of India to further liberalise the Foreign Direct Investment (FDI) regulations in India and reiterated

the Government’s commitment to continuing with liberalization of the Indian economy. Shri Kamal Nath stated that both India and France would benefit from the Agreement as it would provide an enabling platform for the officials, professionals, business leaders and local self-governing bodies 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. He invited the international firms including French firms to participate in the process of making cities greener and more sustainable. This offers avenues for further cooperation in the coming years. The implementation of this Agreement will take place under the aegis of the Indo-French Joint Working Group on Urban Development comprising repre-

sentatives from the Ministry of Urban Development (India) and the Ministry of Regional Equality & Housing and the Ministry of Ecology, Sustainable Development & Energy (France). Shri Kamal Nath also participated in a business roundtable organized by the MEDEF International. The roundtable was attended by leading infrastructure companies. Speaking on the occasion, the Minister highlighted the immense challenges and opportunities that exist in the urban sector in India today. He informed that India would soon launch the next phase of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and that the Government of India is keen to encourage Public-Private Partnership (PPP) in urban sector, especially in larger cities, which would ease the process of investment and involvement in the burgeoning urban sector in India.

The EMBASSY’S Business Centre is opened tuesdays and FRIDAYS (NEW!!) from 11am to 1pm without appointment. For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below. Marketing Officer: or 01 505 8666 30 Marketing Assistant: or 01 505 8666 31

India Newsletter | 9


India and Netherlands Agree to Strengthen Cooperation India Internationally


n the invitation of Ms Edith Schippers, Minister of Health, Sports and Welfare, Government of Netherlands, Shri Ghulam Nabi Azad, the Union Minister of Health & Family Welfare visited the Netherlands. During his two day visit, Shri Azad attended the Ministerial Meeting on the Responsible Use of Medicines and AntiMicrobial Resistance at Amsterdam and held a bilateral meeting with Ms Schippers at The Hague. Addressing the Ministerial Conference, Shri Azad said responsible and rational use of medicines is an important part of the national health policy in India. He said that due to high out of pocket expenditure on health, of which a larger part is on medicines, it is vitally important that drugs are prescribed rationally. He highlighted the need to look at adherence to Standard Treatment Guidelines, curbing unethical promotion of medicines by the drug manufacturers, better regulatory control over prescriptions and dispensing of medicines and to make the consumer aware the hazards of self medication. He said several steps have been taken by the Ministry of Health & Family Welfare towards universalization of health care in its endeavour to make health care services accessible, affordable and equitable, such as Free Maternal Health Services,

Free Child Health Services, Free Immunization, Adolescent Health Services, Family Planning Services, NCDS and JSSK. Shri Azad said the Government of India proposes to further expand the Initiative for Universal Health Coverage by taking up Free Supply of Essential Medicines in Public Health Facilities in the country. This step, he said, is aimed at providing affordable health care to the people by reducing out of pocket expenses on medicines. Besides, Universal Health Coverage will also promote rational use of medicines and reduce the consumption of inessential medicines. During the discussions on the issue of anti-microbial resistance, Shri Azad pointed out that this is an area of serious concern the world over. He stated that the Ministry of Health & Family Welfare has developed the National Policy for Containment of Antimicrobial Resistance to tackle the issue of antimicrobial resistance and promote rational and responsible use of antibiotics in India. He highlighted certain salient features of the the National Policy for Containment of Antimicrobial Resistance India, such as curbing antibiotic use in animals, conducting infection surveillance in hospitals, improving hospital surveillance for monitoring antibiotic resistance, promoting rational drug use through education,

monitoring, and supervision, developing and implementing a standard and more restrictive antibiotic policy, educating health professionals in good prescribing practices and using prescription guidelines, promoting improvements in personal and hospital hygiene and hospital infection control programmes, establishing a multidisciplinary national body to coordinate policies on antibiotic use and monitor their impact, promoting systems of supervision, prescription audit and feedback in institutional settings to ensure rational use of antibiotics. Following the Ministerial Meeting, a bilateral meeting was held between Shri Ghulam Nabi Azad and Ms Edith Schippers in the Ministry of Health, Sports and \Welfare at The Hague, Netherlands. During the bilateral meeting several matters of mutual interest and benefit were discussed. Shri Azad and Ms Schippers agreed to further strengthen bilateral cooperation through signing of a broad based MoU between the two governments in the field of health & medicine for mutual benefit as well as a sectoral MoU between the respective food regulatory authorities to formalize cooperation in the important area of food safety.

India-US biotechnology tie-up to invest in joint research India Internationally


he Association of Biotechnology Led Enterprises (ABLE), the apex body of the biotechnology sector in India, and the US-based Washington Biotechnology and Biomedical Association (WBBA) have signed a memorandum of understanding (MoU) to enable broad ranging co-operation in the field of biotechnology. The duo will support breakthrough discoveries in healthcare, agriculture and clean energy in the country. Both ABLE and WBBA are to provide each others’ members an opportunity to co-operate and invest in the State of Washington and in India, in the field of biotechnology. These activities could be current ones that both associations are engaged in, or future ones that both may decide to do individually or jointly.

10 | India Newsletter

Activities could concern technical knowledge, market research, inputs for policy making, internships, exhibitions, workshops, seminars, capacity building, collaborations, investment and business partnering. P. M. Murali, President, ABLE said, “The collaboration aims to achieve breakthrough discoveries to provide affordable solutions for critical diseases, important challenges in agriculture and energy on mutually agreed topics.”’ Chris Rivera, President, WBBA said, “We see India as the growth engine of tomorrow and one of the fastest growing economies in the world. The collaboration with ABLE is significant to facilitate best of research in biotechnology from both the countries.”


Painting Competition Children painting competition

The National Foundation for Communal Harmony (NFCH) observes the Communal Harmony Campaign week every year from 19th to 25th November and the last working day is celebrated as Flag Day of the Foundation. This year the Flag Day will be on 23rd November, 2012.

The entries are invited in three categories and the best three paintings in each category will win exciting prizes.

gender and full address including phone and e-mail (in English) must be on the back of the painting.

Entry Rules and Conditions:

3) Style of painting is free: crayons, coloured pencils, watercolours, poster colours etc.

On this occasion, we invite all the Children of Indian Origin in Austria, belonging to age group 6 to 14 years for a Painting Competition.

A) 6 to 8 years.

The Theme for the Painting Competition:

1) Paintings must be done on A4 OR A3 papers.

“Vibrant Colors of India- Communal Harmony”

Children can participate in three Age Groups: B) 9 to 11 years. C) 12 to 14 years.

2) Full name, age (day, month, and year),

4) Do not include any words or descriptions in the paintings. 5) Paintings must have the above mentioned theme. Paintings will be judged on originality, artistic merit and relevance to the theme. 6) Only hard copies of paintings will be accepted. 7) One Child can submit only one entry. 8) Last day of submitting the entries is 26th November 2012. 9) Entries can be delivered physically or by Post to: Embassy of India, Kärntner ring 2 (2nd Floor) 1010 Vienna, Austria Working Hours: Monday to Friday (except holidays): from 0900 hrs – 1730 hrs (Lunch break: from 1300 hrs – 1330 hrs) 10) Winners will be selected through a fair and impartial selection by the organizers. 11) The winners will be announced on 6th December 2012. 12) The prize distribution to be held as a part of Republic Day Celebrations in January, 2013.

India Newsletter | 11


India must ‘sustain recent reforms thrust’ Interview with German Ambassador to India H.E. Michael Steiner Germany, India’s largest trading partner in the European Union, is bullish about prospects here. In an exclusive interview to Business Line, the newly appointed German Ambassador Michael Steiner outlines what the recent decision to liberalise FDI in aviation and retail means for German business. Excerpts: Q: What kind of opportunities are the Government’s decision to liberalise foreign direct investment rules in aviation and retail creating for German businesses? A: In India, there is a reforms policy which has started, and we have to see whether it is sustainable, whether it is brought through Parliament, but the policy has started. This has had an effect. CEOs in Germany see the newspapers and feel something is happening. Q:Is this the message that you are getting from German industry? A: Before I left Germany to take up my post here, I spoke to CEOs in medium and big companies.Their thinking was not to put all the eggs in one basket.They said India is the future, but were hesitating because of all the bad news. Now just because the reforms process has restarted, it does not mean that people will jump in. The process needs to be sustained. This week we have the Asia-Pacific conference in Gurgaon, in which 800 businessmen are going to take part. This conference is about German industry talking about Asia. Of course, they will try to find out whether these times will continue. They want the good times to continue because every decision maker sees India both in the actual situation and also as a prospective situation. India is a country which is going up, not down. The question is how steep is the ascent. Q: How long are the Germans willing to wait? A: The world is full of countries looking for long-term investments. India has a huge advantage over a number of countries, as its democratic system provides long-term stability. But India has another asset in its enormous market. This is an ideal moment because if these inves12 | India Newsletter

tors had come half a year ago things would have been very bad, because I think the country and the executive were not ready to embark. Q: What are the sticking points in the free-trade agreement (FTA)? A: A free trade and investment agreement is not something for the next year or even for the next five years. The time horizon for a programme like this is 15 years. That means you have strategic interests. But if you come to negotiations on detailed issues you have interests of the auto makers in Europe and here. And those are not necessarily identical, because they are on different levels of IT access. Free trade and investment are very broad issues. It is not about cars or access to IT or insurance. It is what I call the two-way highway between Europe and India, as potentially it covers all the issues. It also covers reforms issues.That is why I call it the outer flank of inner reforms. Q: What will it mean from the EU side? A: The German automobile industry has an interest, because we are talking of an

FTA to have no taxes on their cars. Indian automobile industry in the end has the same interest, but for the time being it wants to be protected. I think that India has a fair point if it wants to have better and more access to European markets. Q: By when is an FTA possible? A: I think that the agreement in substance should be ready by early spring next year, by when you should have the overall agreement. Then it needs to go through the European Parliament. So it will take quite some time.

India has a huge advantage…the democratic system provides longterm stability [and it] has an enormous market


Semiconductors INDUSTRY Indian Industry Sector Close-Up

Indian semiconductor industry has been witnessing tremendous growth over the past few years with rising demand for mobile handsets and PCs. On the back of prolific expansion of products and services, such as set-top boxes, wireless handsets, 3G rollout, WiMAX deployment, notebooks, and smart cards, it is expected that the market will be expanded at an accelerated rate in future. Considering all these factors, the Indian semiconductor market is expected to grow at a compound annual growth rate (CAGR) of around 22 per cent during 2012-2015. India Semiconductor Association (ISA) is the premier representative of the Indian Electronic System Design and Manufacturing (ESDM) industry since 2005. The trade body is imbibed with an objective to create global awareness for the Indian ESDM industry and support its growth by initiating focussed measures that would develop an appropriate ecosystem. Market Size Electronics is essential to technology infrastructure, and semiconductors are the main component of electronics products. Electronics sales in India, which totaled US$ 40.7 billion in 2009, will touch US$ 400 billion by 2020.At present, local manufacturing accounts for about 40 per cent of consumption and it could increase to 80 per cent by 2020. Many global original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) firms, including Samsung, LG, Nokia, Toyota, Hyundai, Flextronics, Jabil, Foxconn, Sanmina, Elcoteq and Celestica, have set up manufacturing facilities in India in recent years, according to ISA. The Indian semiconductor design industry, consisting of Very Large Scale Integration (VLSI) design, embedded software development and hardware/ board design is estimated at US$ 7.5 billion in 2010 and is expected to grow YoY at 17.3 per cent and reach US$ 10.2 billion by 2012. The top 10 global fabless companies and the top 25 semiconductor companies have operations in India.


Government Initiatives

India has a well-developed semiconductor design industry, with 120 design units.

The Government of India is continuously making efforts to boost the Indian semiconductor industry and attracting foreign and local players to establish fabs in the country. In fact, the Government has set up an Empowered Committee that would invite a preliminary Expression of Interest (EoI) from potential technology providers and investors.

In India, after Bangalore, Noida has become a hub for semiconductor design industry with many major players setting up their offices and research and development (R&D) centres in the city. Global MNCs such as Freescale, Mentor Graphics and Interra Systems are some of the major semiconductor companies in Noida. Some of the major investments in Indian semiconductor industry include:

• Chip-designer Xilinx Inc has inau-

gurated its expanded facility in Hyderabad. “The facility, Xilinx’s largest R&D centre outside the US, would continue to support all programmable technologies and devices,” as per Moshe Gavrielov, President and Chief Executive Officer, Xilinx Inc

This initiative has resulted in companies like Bharat Electronics Ltd, ITI, IBM, and Israel-headquartered foundry Tower Jazz expressing their interests in fabs projects in India. While players such as IBM, ST Microelectronics and Infineon are willing to offer their technologies to actual investors or manufacturers (who come in), Tower Jazz has demonstrated interest to build an Advanced Specialty Fab.Tower Jazz manufactures integrated circuits for more than 150 global customers.

• The Government has allowed 100

has announced the availability of a full front-to-back process design kit for its High-Q Integrated Passive Device (IPD) processes.The product was developed with Agilent Technologies’ Advanced Design System 2011 EDA software

per cent foreign direct investment (FDI) under the automatic route in semiconductor fabs to promote semiconductor manufacturing in India. The FDI in Semiconductor sector in India were crucial for the development of the IT and the ITeS sector in India.

• In a bid to make India a global manu-

• Some of the initiatives taken by the

• ON Semiconductor Corporation

facturing hub, 11 companies (foreign as well as domestic) have demonstrated their keen interest to set up fabrication plants (fabs) in the country. The Department of Information Technology (DIT) has received proposals regarding the same

• Indian start-up Lava announced its

partnership with Intel at Mobile World Congress, with the launch of the first Intel-powered smartphone in India, the Xolo X900. Lava, which has so far focused on budget phones, will manufacture smartphones under the Xolobrandname

• Semiconductor company Intersil

Corporation has announced that it has started a new design centre in Bengaluru. The centre will help develop new integrated circuits and reference designs, besides providing system-level application support for customers

Government for boosting the semiconductor industry of India are:

• The Government of India is invest-

ing US$ 20 billion in projects related to creating information highway, according to Mr Sam Pitroda, Advisor to the Prime Minister on Public Infrastructure, Information and Innovations. This includes US$ 3 billion for setting up the knowledge network and another US$ 6 billion for the National Optic Fibre Cable Network

• The Government is in the process of developing a policy framework to provide preference for domestically produced electronics goods in Government/Government influenced procurement

• India has set aside Rs 30,000 crore

(US$ 5.68 billion) worth of incentives and subsidies to encourage firms to set up electronics manufacIndia Newsletter | 13


turing units in the country. The Government of India has also drafted a marketing plan to promote ‘Made in India’ electronics in the global market

• The Government has approved the

Modified Special Incentive Package Scheme for the electronics sector under which, the Government will provide up to Rs 10,000 crore (US$ 1.9 billion) in benefits to the industry over the next five years for promoting production of electronics components

• Providing attractive fiscal incentives across the value chain of the ESDM sector through Modified Special In-

centive Package Scheme (M-SIPS)

• Setting up of Semiconductor Wa-

fer Fab infrastructure and its ecosystem for design and fabrication of chips and chip components

• Facilitating market access to do-

mestically manufactured electronic products including mobile devices, SIM cards with enhanced features, etc

Road Ahead The robust growth in the Indian semiconductor design industry has created a lot of employment opportunities for the engineering workforce in the respective segments. The employee base in the

INDUSTRY RELATED CLIP The world’s largest computer chip manufacturer now diverts a high proportion of its think tank towards phones and portable devices because the internet has transformed the use of computing gizmos, A chunk of the Intel’s chip designing for phones and next generation computing is driven by its 3,200 employees in India.

14 | India Newsletter

semiconductor design industry in India estimated at around 135,000 in 2009 is expected to grow at CAGR of 20 per cent to reach 230,000 by 2012. “Semiconductors and electronics are at the heart of technology driven products that will drive the US$ 400 Billion Indian electronics market by 2020. ISA is committed to working with all the stakeholders from industry, academia and government to enable the eco-system that will convert this opportunity into reality,” as per Dr Pradip K Dutta, Chairman ISA and Corporate Vice-President & Managing Director, Synopsys India.

Trade Shows & Events

INDIA SEMICONDUCTOR ASSOCIATION VISION SUMMIT Product Innovation, Global Collaboration and Policy Agreement.

India Newsletter | 15

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.

INDIA’S LARGEST INTERNATIONAL ENGINEERING SOURCING SHOW Indian Engineering Sourcing Show (IESS) is India’s largest display of Engineering Products and Services and focuses on building global partnerships for India. IESS is recognized as the only sourcing event in India – a showcase of the latest technology, and a preferred meeting place for buyers and sellers from all over the world. International companies keen to enter Indian markets find IESS as an ideal event for product launches, India distributor / partner search etc.

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 to get more information about possible assistance/subsidies.

16 | India Newsletter

Overseas Indians

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

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

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

India Newsletter | 17



Indian State Profile


ucked away in the foothills of the Himalayas, Sikkim is a Himalayan wonderland with its lovely views and exotic orchids, and its forest-trails. A virtual Shangrila overlooked by Mt. Kanchenjunga, the world’s third highest peak, Sikkim is attractive equally for the sightseer, the adventure sports enthusiast and those interested in Buddhism and Tibetology. Buddhism is the predominant religion here, with many fine old monasteries rich with frescoes, religious paintings on silk and statues of the Buddha’s various incarnations. In Gangtok, the delightfully quaint capital, are pagoda like roofs of many buildings and the presence of crimson robed monks in the bazaars. The Institute of Tibetology, the only one of its kind in the world, was set up by the erstwhile ruler to promote research on Mahayana Buddhism, and on the language and traditions of Tibet. Lower down the hill is the famed orchid sanctuary where 500 species of orchids indigenous to Sikkim are cultivated. Sikkim offers several treks that lead through pine forests, through picturesque valleys, monasteries and to mountain lakes. It is also the base for mountaineering expeditions and the rivers Teesta and Rangeet offer excellent river rafting. Prior permission must be sought from the Ministry of Home Affairs, Government of India, by all foreigners wishing to visit Sikkim – though travel formalities are being relaxed gradually. Permission may, therefore, be sought from Indian Missions overseas, or from offices of Sikkim Tourism, A number of good hotels and lodging houses exist in Gangtok.

India Tourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 Fax: +49 (69) 242949-77 18 | India Newsletter

India in Austria


Friday, November 23rd, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Adventure/Comedy Directed by: Zoya Akhtar Starring: Hrithik Roshan, Abhay Deol, Farhan Akhtar, Katrina Kaif Released: July 2011 Duration: 153 Minutes Language: Hindi Subtitles: German Synopsis: 3 young men take a holiday that changes their lives forever. Kabir has just


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

met Natasha. 6 months later they are engaged. He wants to go on an extended bachelor party. A 3 week road trip with Imraan and Arjun - his 2 best friends since school.The only problem is Arjun is too tied up with work. After much emotional blackmail and cajoling the boys set off on a journey they were meant to take 4 years ago. A fantasy holiday they had planned to take after college but never happened. A road trip where each one gets to do the ultimate sport of his choice and the other 2 just have to do it with him. Whether they want to or not! Kabir Imraan and Arjun meet up in Barcelona and set off on an adventure that will not only make them iron out their differences but also face their fears, alter their perception, unravel their fabric, force them to break out of the box and teach them to seize the day.

BOOK: “Indovation: how to innovate for India” By Austrian writer Wolfgang Bergthaler More Information under

In the last ten years, the Indian market for consumer and industrial goods has grown dramatically. This trend offers huge sales potential for European companies. Global marketers focus more and more on India. Today, no company can afford to neglect the Indian market! Ironically, only a few European companies have suitable offer for the Indian

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

market. The book “Indovation: how to innovate for India” represents a compact guide to successful product development and marketing for India. Furthermore it also includes numerous case studies and guest articles from well-known marketing-experts, scientists, journalists, investors and entrepreneurs.

OTHER EVENTS More Information below

Talk-Series ‘Zu Gast bei Elisabeth Al-Himrani’ Mahendra Galani, president of the “Blind Graduates Forum of India”

When: November 15th, 19:00 Natya Mandir - Börseplatz 3/1D, 1010 Vienna

India Newsletter | 19



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The Embassy of India, Vienna, wishes all HAPPY DIWALI!! 20 | India Newsletter

India Newsletter 11.2012  

India Newsletter published by the Embassy of India, Vienna

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