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Economy & Business | News NOVEMBER 2011 IN THE NEWS HIGHLIGHTS Eurozone. India said it is willing to play a “supporting” role in any multi-lateral effort to help Eurozone tide over its debt crisis after European leaders sealed a deal crucial to world economy to fix the lingering problem. Planning Commission Deputy Chairman Montek Singh Ahluwalia welcomed as positive the “important” deal clinched by European leaders at their summit shoring up the 17-nation Eurozone’s bailout fund, pledging new funds for Greece and pushing banks to share the pain to combat the sovereigndebt crisis. India-China. Indian-China trade would touch $100 billion in the next four years from the present $63 billion, says industry body Assocham. As per the Associated Chambers of Commerce and Industry of India (Assocham), the two Asian giants can emerge as world's largest trading partners by 2030. "China has already raced past United States, Britain and Japan to become India's largest trading partner. Indian companies can gain substantially by accessing Chinese capital goods at attractive prices by way of imports," Assocham said in a statement here. Indian exports to China jumped 68.8% to $19.6 billion in 2010-11, from $11.6 billion in the previous year. Imports increased 41% to $43.5 billion from $30.8 billion in the same period. India is the tenth largest trade partner of China, and its seventh largest export market. In India's total trade, China's share has increased to over 10%.

Economy Economic Growth. With the global economic crisis showing “several signs of stress”, Prime Minister Manmohan Singh said India’s growth rate will take a hit this year. “We have grown at an average of 8.4% in the past five years. Like other countries we, too, have slowed down in 2011, but we still expect to grow at around 7.5%. However, none of us can prosper in isolation to the rest of the world,” Singh told world leaders at the East Asia Summit. He acknowledged Asia’s emerging economies, having weathered the headwinds to some extent, were “growing well” and were, “in fact, contributing to the recovery of the world economy”. Prime Minister's Economic Advisory Council Chairman C Rangarajan has

projected a GDP growth rate of 7.5% to 8% in the 2011-12 financial year. "Initially, the growth rate forecast for 2011-12 by the council was 8.2%. The world situation is not very encouraging and it may vary between 7.5% to 8%," Rangarajan said. He also added that India has the potential of growing at 9% in a sustained way. Rangarajan, a former governor of the RBI, said that India's savings rate has crossed 34% of GDP, while the investment rate exceeds 36%. Additionally, according to a forecast by a Ernst & Young‘s report on Rapid Growth Markets (RGMs), India is expected to grow at 9% while China is expected to grow at 8.6% already by 2014. Foreign Trade. India’s exports during September, 2011 were valued at US $ 24.8 billion,which was 36.36% higher in Dollar terms than the level of US$ 18.2 billion during September, 2010. Cumulative value of exports for the period April-September 2011-12 was US $ 160 billion as against US $ 105 billion registering a growth of 52% in Dollar terms over the same period last year. India’s imports during September, 2011 were valued at US $ 34.5 billion representing a growth of 17.2% in Dollar terms over the level of imports valued at US$ 29.5 billion in September, 2010. Cumulative value of imports for the period April-September, 2011-12 was US $ 233.50 billion as against US$ 176.36 billion registering a growth of 32.41% in Dollar terms over the same period last year. Employment. Overall employment grew by 215.000 during the April-June 2011 quarter, with most sectors showing an increase except textiles, including apparels, and transport. An upward trend in employment has been observed since July 2009, according to the Labour Bureau‘s quarterly estimates to assess the impact of the post-2008 economic slowdown on employment in the country.

Business & industry Investment. Global energy, healthcare, technological and industrial products giant Siemens AG announced that it planned to pump in around 250 million euro (about Rs.1,700 crore) worth of investments in India to develop nearly 60 new baseline products, especially for the Indian urban and rural markets in various sectors, as part of its new global strategy. Asserting that India and China were the major pillars of growth for manufacturing as well as sales during the coming decade, Siemens

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spokesman Bernd Etitel told visiting Indian journalists that the global strategy of the company was based out of major focus on India. —-. Coca-Cola Co. said it will invest $2 billion in India over five years, as the soda giant and its bottling partners plan to spend $30 billion to build capacities and on marketing in emerging economies. The Atlanta-based maker of Sprite and Thums Up soft drinks, Minute Maid juice and Kinley packaged drinking water has been targeting growing demand for convenience foods and drinks in emerging markets as North American soda sales have been tepid in recent years. India offers robust growth prospects for food and beverages makers as its growing economy, the company says. Acquisition. Indian watch specialist Titan Industries said it will acquire Swiss watch brand Favre Leuba for 2 million Euro. "The company has signed a binding offer with Valfamily SL Spain and Maison Favre Leuba, Switzerland, for the acquisition of brand Favre Leuba," the company said in a regulatory filing. The strategic rationale behind the above acquisition is to complement and strengthen the existing watches brand portfolio of the company with a Swiss heritage brand. Infrastructure. The World Bank signed a US$ 975 million loan agreement with the Department of Economic Affairs, Ministry of Finance, Government of India, and the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) to set-up the Eastern Dedicated Freight Corridor-I (a freight-only rail line) that will help faster and more efficient movement of raw materials and finished goods between the Northern and Eastern parts of India. The corridor will also allow Indian Railways to free up capacity and better-serve the large passenger market in this densely populated region. —. Hinduja Group flagship Ashok Leyland has entered the construction equipment business, along with American company John Deere. The joint venture marks a marriage of experience with expertise, global vision with local relevance, said Dr V. Sumantran, Chairman of the joint venture company. Around $38 million has been invested in the first phase of the 435 backhoe loader, the first product to roll out of the 50:50 joint venture. Gas. Reliance Industries Ltd (RIL) and British Petroleum Plc announced the

News | Economy & Business NOVEMBER 2011 IN THE NEWS (CONT‘D) formation of India Gas Solutions, an equal joint venture that would focus on global sourcing and marketing of natural gas in the country. The JV will also develop infrastructure to accelerate transportation and marketing of natural gas within the country, the Indian conglomerate and the London-based company said in a joint press statement. —-. GAIL India says it has big plans for the fast-emerging shale gas sector. Its move in September to take a 20 per cent stake in Carrizo's Eagle Ford shale asset in America was part of a larger scheme to go deeper into the business. Chairman and managing director B C Tripathi says the state-run company is evaluating opportunities to spend at least $1 billion over the next year or so to acquire larger shale gas assets, primarily in the US and Canada, and could have a deal in place in the next six months. Aerospace. US electrical components company Eaton says it sees plenty of opportunities for itself in the India‘s unfolding civil and military aerospace story. Thanks to increased aircraft purchases by the military and domestic airlines, among other factors, India looks set to be one of Eaton's key markets in the coming years. Eaton's aerospace division globally supplies hydraulics and fuel systems that go into flight control devices of Airbus, Boeing aircraft and many domestic and global military planes. Agriculture. The National Agricultural Innovation Programme (NAIP) will spend €70 million more in the next two years on various projects to add value to agriculture and allied sectors. The programme is aimed at developing technology-based innovations to improve the income of farmers. Underwater-engineering. Geo Marine Dynamics (I) Pvt Ltd (Geomardy), a local company engaged in providing services in deep seabed engineering and underwater unmanned systems, has recently signed a memorandum of understanding (MoU) with a US company, Global Fusion (a holding company of C&C Technologies Inc. and ASV Global Unmanned Systems).

international Tax Cooperation. India signed the Convention on Mutual Administrative Assistance in Tax Matters, developed jointly by the Council of Europe and the

Organisation for Economic Co-operation and Development (OECD), and opened for signature by the member-states of both organisations on January 25, 1988. All members of the G20 have now become signatories to the Convention. R. Gopalan, Secretary, Department of Economic Affairs, signed on behalf of the Indian government. The Convention will have to be ratified by the Indian Parliament to become law. The Convention facilitates international cooperation for a better operation of national tax laws, while respecting the fundamental rights of taxpayers. The Convention provides for all possible forms of administrative co-operation between states in the assessment and collection of taxes, in particular with a view to combating tax avoidance and evasion. This co-operation ranges from exchange of information, including automatic exchanges, to the recovery of foreign tax claims. India-EU. India and the European Union are committed to a balanced and ambitious Broad-based Trade and Investment Agreement (BTIA) by early 2012. Stating this, the Minister of Commerce, Industry and Textiles, Mr Anand Sharma, said in a statement that “This agreement (India-EU BTIA) will lead to increase of opportunities for market access in goods and services for both sides.” India-France. France will invest in Kerala in four sectors — energy, transportation, water treatment and waste management, Mr Pierre Fournier, Consul-General of France in Pondicherry has said. He was speaking at an interactive meeting organised by the Kerala Chamber of Commerce and Industry. He assured to bring in a French delegation for a three day -visit in Kerala to study the feasibility of investments there. He said bilateral relations between the two countries are dynamic in the field of nuclear energy, defence and fight against terrorism. Importers and exporters, shipping agents, travel and tourism operators, educational institutions and IT companies etc have attended the function. India-Italy. Expressing confidence that India and Italy will reach the target of Euro 15 billion, Union Commerce and Industry Minister Anand Sharma has said that bilateral trade with Italy is fast gaining momentum. Talking to reporters after meeting an Italian business delegation led by Italian Economic Development Minister Paolo Romani, Sharma said: " We have

had useful discussions to review the progress in our bilateral relationship". Emphasising further, Sharma said trade between India and Italy last year stood at 8.50 billion dollars and the data till August 2011 shows an impressive growth and reflect optimism. India-Bulgaria MoU. India and Bulgaria today signed a Memorandum of Understanding on Health & Medicines to usher in new era of cooperation in health and medicines between the two countries. The Union Minister of Health and Family Welfare, Shri Ghulam Nabi Azad signed the MoU today in New Delhi with the Minister of Health of the Republic of Bulgaria Dr. Stefan Konstantinov. Shri Azad said that each country can learn from the experiences of the other and share best practices and success stories. India-Africa. India is expected to sign the much-awaited preferential trade agreement (PTA) with South Africa Customs Union (SACU) by the first quarter of 2012, as both sides are currently engaged in active negotiations on seeking greater access of each others’ markets and easier movement of professionals. SACU consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. Since 2007, negotiations have been on over having a PTA with the grouping. So far, around eight rounds of negotiations have taken place. It isexpected that the PTA could be expanded into an free trade agreement (FTA) depending on the progress in the upcoming years.

Quote of the Month “India is very high on the list of companies in Europe and Asia. Even executives at their best age are open to transfer to India” By Ulrich Dade, Chairman, Amrop

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Economy & Business | News/Article INDIA-AUSTRIA RELATED NEWS India’s Export to Austria (in million Euros)

India’s Import from Austria (in million Euros)

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India-Austria Foreign Trade For the period January-August 2011, exports to Austria are still high above the level of imports. In both cases, growth results have been registered, though. India’s exports to Austria increased by 18.6% to €388.18 million while imports rose by 37.1% to €538.15 million. The positive export trend continues to be pushed by increase in exports of ‘Apparels and clothing accessories’ and ‘Footwear’, all of which account for more than 40% of India’s total exports to Austria in the period. In the same period last year, the group accounted for approx. 39% of total exports. ‘Machinery and Equipment’ starts to see an accelerated rise in exports of ‘Power Generating Machinery’, which still accounts for only 2.5% of exports, though. ‘Electrical Machinery’, with advance by 25.4% and ‘Road Vehicles’ by 4.2%, are the main contributors to this group, though. The exports of chemicals remain on negative trend with decrease in exports by almost 9% in comparison to the same period of 2010, which makes it currently account for only 11.4% of total exports, in contrast to its 14.8% significance last year. Given the constant growth in the level of exports of ‘Chemicals’ observed in trade data from the previous year, it is possible to indicate that there has been a stoppage of exports in this category, mainly pulled by minus 61.3% in exports of Organic Chemicals. Projections based on the figures of the first eight months of 2011 indicate that Indian exports to Austria has a positive trend, and should cross the half billion mark before year-end, though.

On the imports side, virtually all highly active trade categories registered growth. ‘Machinery and Transport Equipment’ remains the most relevant group of Indian Imports from Austria as it represents about 48% of total imports. This mark is strongly supported by high development in the ‘Power Generating Equipment’ and ‘Electrical Machinery’ categories. ‘Iron & Steel’ continues to register momentous growth levels and registers about 100% increase on its mark for the first eight months of 2010, representing now 16.6% of total Indian Imports from Austria. ‘Scientific and Controlling Instruments’, which has also managed to double its mark, now also account for more than 5% of total imports, up from about 3% significance in the same period of 2010. Austria’s first satellites are to launched from an Indian spaceport


If everything goes according to plan, Austria’s first satellites are to be launched 800km high into space on the rocket PSLV 20 from the Indian spaceport Sriharikota in January or February 2012. Tugsat 1 and uniBrite, these being the names of the satellites, are to measure changes in the light intensity of every bright stars that are larger than our sun. The data will serve as the base for conclusions regarding their rotation speed and mass dispersion. According to the design, they should work for at least two years and then burn up in the atmosphere. With this project, Autris seeks to show system competence only, as 56 other countries have launched satellites. However, Austria is in the front lines of

other areas of space flight. One of the world’s four research groups for Mars suits is located in the country. The next tests for the suit are planned in a cave in Austria for 2012. "Made in Austria" might become “Made in India” or “Made in China” The certificate of origin "Made in Austria" might fall under tightening criteria of EU plans. Currently, it is possible to name a product as “made in Austria” as long as the last part of its assembly is done in Austria. This means, a product coming from various far-away origins can get their very last touch-up in Austria and from it, receive the “Made in Austria” certificate of origin. According to EU-plans, in the future, a minimum of 55% of a product’s value must be created in Austria so that it can be labelled so. Germany, Belgium and the Netherlands have already pronounced against the presented EU plan. “Young Leaders Project” with India Austria and India are considering a “Young Leaders Project” of scholarships and closer links between their up-and-coming political, economic and business leaders. The development of the project was first suggested by the Austrian Parliament speaker Barbara Prammer during a meeting with Indian President Pratibha Patil on her State Visit to Austria earlier in October. The project should allow young leaders to study the other country’s political and economic systems.

India tops G20 in entrepreneurial culture India's entrepreneurial culture has become the strongest among G20 nations with a substantial decline in costs and time for starting new businesses in the country, a global study by Ernst & Young said. The report, however, said that efforts were still needed to lower the business costs, for further simplification of procedures and to make India even more favourable business destination. Ernst & Young (E&Y) said that the report, prepared on the basis of a survey of 1,000 entrepreneurs across the G20 nations, has substantiated India's premier position as an emerging hub for entrepreneurial activity and innovation. 4 | December 2011 - India-Austria Newsletter

It said that 98% of the entrepreneurs surveyed believed that Indian culture encourages entrepreneurship, as compared to 80% for the rapid growth markets and 72% for the mature economies. The report, released at the G20 Young Entrepreneurs Summit in France, found that the costs of starting a business in India has declined by 5.5% since 2005. Besides, time to start a business in India has fallen from 56.5 days in 2005 to 29 days in 2010. In the survey, 80% of Indian entrepreneurs reported improved access to funding, including bank loans.

However, E&Y said India's potential is yet to be fully grasped, with only a third of the respondents rating the country as the most favourable business environment out of the G20 countries.

Articles | Economy & Business India continues to be attractive for foreign investors: E&Y report Indian economy has successfully weathered the global financial crisis, thereby proving its resilience and depth, suggests an Ernst & Young report titled, ‘Doing business in India’.

tor where the aggregate limit for all foreign institutional investors (FIIs) is restricted to 24%, which can be raised to 49% with the approval of the board/general body.

The report explores India’s key sectors, investment climate, funding scenario, laws and regulations, to aid companies that are doing, or plan to do business in India.

According to Gaurav Karnik, Tax Partner, Ernst & Young, “Over the past few years India’s average growth in GDP has ranged between 6 to 8%,which is inspiring to say the least. Despite the current global economic uncertainty, India’s GDP is expected to grow at 7.7%,which clearly underlines India’s potential as an investment destination.

The study highlights that India is the second most preferred destination for foreign investors, next only to China which leads the chart. FDI inflows in India from FY’05 to FY’11 has risen 31.5% reaching a figure of US$17 billion. Mauritius continues to be the largest source of FDI inflows into India, with the leading contribution of 36%. Services sector is attracting the maximum FDI with 18%, followed by telecommunications (8%) and automobiles (7%). The report highlights that the aerospace and defence industry is an emerging market in India, with the Indian military expected to spend roughly US$ 80billion, over the next four-to-five years. About 65–70% of India's defence requirement is imported from global aerospace and defence companies. Automotive is another profitable sector in India for foreign investors, as it is expected that by 2020, the vehicle production is set to treble from the levels in 2009 and the size of the component sector is set to grow from $30 billion to 110b. Banking is another key sec-

The fact that FDI has increased by 31.5% across major sectors further evidences the attractiveness of the Indian economy. India has a liberalise FDI policy and recent announcement of liberalisation of FDI in multi and single-brand retail, showcases the Government’s endeavour to continue to open up India for foreign investors.” The report further suggests that foreign investors should not miss out on Indian healthcare industry, which has evolved tremendously over the years. Indian domestic pharmaceutical market size stood at $12.76b in 2010 and is expected to grow at a CAGR of 9.5%,till 2015. While, medical equipment and supplies market. during 2010, was estimated at $3.6b and is expected to reach $ 6.41b by 2014 with CAGR of approximately 15.5%.

India to continue dominating KPO sector India will continue to be at the forefront of the development of knowledge process outsourcing (KPO) industry for the foreseeable future, says a report.

niche for itself in a number of key areas, including healthcare outsourcing (providing industry-specific services to hospitals and healthcare providers).

However, in the recent years, a number of other viable KPO sourcing hubs have emerged in the Asia-Pacific region, says a report from independent technology analyst firm Ovum.

This market is expected to grow significantly during the next few years, with a notable increase in demand coming from the US as a result of the recent reforms in healthcare regulations.

The potential KPO delivery locations, including China, the Philippines and Sri Lanka, are unlikely to challenge India's dominant position in the market, but they have enabled many vendors to pursue a multi-shore strategy, it said.

Sri Lanka has also focused on developing skills around specific service lines. For example, the country has a significant number of qualified accountants, capable of providing the kind of high-end complex tasks associated with service areas such as equity and credit research.

Ed Thomas, Ovum analyst and author of the report, said: "Being able to deliver services from multiple locations means providers can offer existing clients greater flexibility and minimise the risks associated with having all their operations in one facility, while at the same time tapping into fresh labour pools". The KPO industry is maturing and the range of services being provided has expanded as the market has developed. From its initial beginnings in research and analytics, KPO currently includes a variety of services, such as legal process outsourcing and clinical trial management, among others.

The recent emergence of countries such as China, the Philippines and Sri Lanka as viable locations for KPO delivery has been a positive development for vendors, as it has enabled them to begin offering a blend of offshore and nearshore delivery while also giving them access to sizeable and previously untapped talent pools.

On the latter topic, Ed Thomas said: "A major challenge facing life sciences companies is the growing cost of R&D and, as a result, a growing number of pharma companies are turning to outsourcing and off-shoring as ways of reducing these costs. China is an attractive location for companies that run and manage all phases of the clinical trial process, as it offers a significant pool of potential patients in an important emerging market". Along with China, the Philippines is also becoming an increasingly important player in the KPO market. It has started to carve out a December 2011 - India-Austria Newsletter | 5

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Economy & Business | Articles India: Land of billion opportunities, not billion problems India is a land of billion opportunities and not billion problems, according to Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd. “Lot of people think that India is a land of problems. I really think that India is a land of billion opportunities and not a billion problems,” said Mr Ambani in a panel discussion at the India Economic Summit 2011, organised by the World Economic Forum. READY TO TAKE-OFF In spite of the grim situation that the world is facing, India is now at a stage where it is ready to take-off on the back of a young population and high-level of entrepreneurship, which is the differentiating factor in the world, emphasised Mr Ambani, who was ranked ninth in the Forbes 2011 list of world's billionaires. Pointing out that in the last two decades, the energy of all sections of the Indian society has been unleashed to build a new India, the Reliance chief said, “in the last 20 years, we (the country) have built a foundation on which we can catapult India and give a higher quality of living to all.” Today, India is roughly at $1,000 per capita. In the last 20 years, the country has added a trillion dollars of output. An estimated 150 million people have come out of poverty, he added. “Earlier, it was the Government which had to move the economy. Now, we have

moved away from this scenario, with the Government fast becoming a facilitator. This is one of the most satisfying aspects of the changes that have happened in the last two decades,” explained Mr Ambani. LEADERSHIP DEVELOPMENT The private sector is playing a significant role in the economy with bottoms-up entrepreneurship that is driven on the strength of ‘young' people. Underscoring the fact that corporates are fast adopting the shared value concept, the Reliance chief said most of corporate India is transiting to create shared value for the society rather than only for the shareholders. On leadership development, he observed that it has to reflect our demographics. “We have had a history where we think that responsible jobs can only be done by 60 year olds. I think we are fast moving towards a situation where a 40-year-old can take on more responsibility and perform better. That mindset change is happening as India is going to become younger in the next two decades.” On governance, Mr Ambani averred that a dramatic shift in governance is happening in the corporate sector. Governance systems, he felt, must ultimately deliver goods and services for common people.

INTRODUCTION OF THE EXPORT-IMPORT BANK OF INDIA (AMENDMENT) BILL 2011 The Union Cabinet approved the introduction of “The Export Import Bank of India (Amendment) Bill, 2011” to amend the Export – Import Bank Act, 1981 (the Act) in the Parliament. The Bill seeks to increase the authorised capital of the Exim Bank from Rs. 2000 crore to Rs. 10,000 crore with the provision that the Central Government may, further, by notification, increase the said capital up to an amount that it may deem necessary from time to time and also to make a provision for appointment of two-whole time Directors, other than the Chairman and Managing Director (CMD), in the Bank by the Central Government. Increase in the authorised capital would enable the bank to take higher export credit exposures, enable it to borrow funds to disburse under export line of credits. Further by appointing two whole

time directors, the management structure of the bank would be strengthened which in turn would enable the bank to achieve excellence in its area of operations, compete with international banks and export credit agencies in its endeavour to promote India’s international trade and investment. Background The Export Import Bank of India, herein after referred as Exim Bank, was set up as a Corporation in 1982 under the Export Import Bank of India Act, 1981 for providing financial assistance to exporters and importers and for functioning as principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade and related matters.

India could be a future market for `flying car', says maker A US-based company which has designed and tested a `flying car', is looking at India, Brazil and China as the future markets. Carl Dietrich, co-founder of Terrafugia, a US-based company which has developed a `roadable aircraft', said that the company would be launching the product commercially at the end of the next year. The aircraft-cum-car has foldable wings, which are tucked in when it is on the road, and it becomes compact enough to park in a home-garage, he said, adding that it coverts into a flying machine within 30 seconds. Around a hundred people have already booked the car, priced at USD 279,000. With a full tank, the car can fly for 460 miles at the speed of 110 miles per hour. "After the US launch, we will spread in Europe," Dietrich said, adding that India, Brazil and China would be the future markets. The car is a workable commuting option, as building a short runway is cheaper than building a super-highway, he said. December 2011 - India-Austria Newsletter | 7

Multilateral | Profile International Center for the Advancement of Manufacturing Technology (ICAMT) - an International Technology Center of the United Nations Industrial Development Organisation (UNIDO) History of UNIDO ICAMT

About The International Center for the Advancement of Manufacturing Technology (ICAMT) is an International Technology Center of the United Nations Industrial Development Organisation (UNIDO)*. ICAMT was established by United Nations Industrial Development Organisation in cooperation with the Government of India, to promote manufacturing technologies and innovations to enhance industrial competitiveness in India and other developing countries. UNIDO ICAMT also provides an international forum for member states in monitoring technological trends and building awareness amongst industries, research communities and governments on technological advances and innovations. *The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations. Its mandate is to promote and accelerate sustainable industrial development in developing countries and economies in transition, and work towards improving living conditions in the world's poorest countries by drawing on its combined global resources and expertise. UNIDO Headquarters is located at Vienna International Centre, Austria. Vision To provide services for the advancement of manufacturing technology and innovations in India, and to other developing countries, thereby extending the activities of UNIDO for fostering international cooperation. Objectives UNIDO ICAMT functions with four key objectives: To stimulate the diffusion of new technologies and innovations. To cater to the technology needs of enterprises in select industrial sectors. To act as a catalyst to bridge the gap between the emerging market demand for new products, industry needs for new technologies and the existing technology base. To provide an international forum for member states in monitoring technological trends and building awareness of industries, research communities and governments on technological innovations and advances.

Find out more about UNIDO‘s ICAMT at

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Interview | Economy & Business Q&A: Nick Colucci, CEO, Publicis Healthcare Communication If advertising is all about the big idea and challenges, then extending that idea across the health and wellness platform in the right way is a different game. Nick Colucci, President & CEO, Publicis Healthcare Communications, spoke to Varada Bhat on the company’s plans on the opportunities that Healthcare Communication offers in India. Edited excerpts.

faster than that. The healthcare industry is huge. Most healthcare companies have their portfolio within the larger consumer agencies. Although we are part of the larger agency, in 2004, we put all the wellness and healthcare brands under one management structure. Q: How do you see emerging markets different from Europe and the US in terms of healthcare advertising? A: Countries like India and China are growing rapidly. Although a little behind in technology, the pace of growth is huge, as there is a huge demand. Europe and the US are more mature markets — the challenge lies in the way we communicate using different techniques and methods. In emerging markets we just have to communicate. Q: What are the challenges in healthcare advertising? A: Advertising in healthcare is a different ball game. Over-thecounter drugs are the only products that we can advertise, the rest is prescription based. There is a huge amount of communication that happens to healthcare professionals. So far, medical representatives have had more impact on how information was exchanged.

Q: You have been in India for over a year now. How has the Indian market been so far? A: It has been great. We had no presence in India and now we have 100 people here in our team. We are working with Johnson & Johnson and some brands of Cipla. The Indian healthcare industry is a $35-billion industry and is anticipated to touch the $75-billion mark by 2012. Increasing consumer awareness and rising lifestyle diseases are some of the main reasons for the boom in this segment. Apart from consumers, the large medical community comprising physicians, specialists and doctors also need to be constantly updated with information. Q: How do you see healthcare advertising in the Indian market going ahead compared to other markets? A: Advertising in the classic sense may not have a large impact on healthcare in India, but it will be communication as a whole that will get the message across to consumers. We see the industry growing at 20 per cent for the next several years; we hope to grow

However, in the future there will be less sales representatives, and more other channels to get information. This started happening in the US about 25 years ago and now the same trend will be seen in emerging markets. Their space has been taken by advertising, communication, PR and digital. This is where we think we are unique because we understand the regulatory nature of the business and the science, than other agencies who just think from a consumer point of view. We have to provide balanced information to healthcare professionals and consumers. We are trying to create awareness and see that the information reaches through the correct medium. The greatest use of advertising in this country could be for vaccines, as this could help save lives. It’s good for business and people. Q: How has social media revolutionised healthcare? A: Internet is a very powerful tool. Besides information gathering, various communities on social media sites exchange information in a big way. Its greatest power is that it allows people to connect with other like-minded people. For example, breast cancer patients are the biggest group online. When you interact with them, there is a lot of support, information exchange and people feel good. We help patients find these communities and start discussions. We also help people with the same conditions connect with each other.

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Industry | Sector Close-Up HEALTHCARE India is perched to witness additional growth in its economy as a result of positive trends within the healthcare sector. Reports clearly suggest that healthcare sector is going to be one of the major sectors that would fuel the economic growth and will contribute to the increased revenues, along with IT Services and Education sectors in the country. Over 40 million new jobs and 200 billion increased revenues are expected to be generated by the Indian healthcare sector till 2020, as per a report titled, “India’s New Opportunities- 2020”, prepared by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII). Market Size The Indian healthcare sector is poised to reach US$ 280 billion by the year 2020, thereby contributing an expected Gross Domestic Product (GDP) spend of 8 per cent by 2012 from 5.5 per cent in 2009, according to a report by an industry body. A US$ 36 billion industry today and growing at 15 per cent compound annual growth rate (CAGR), the Indian healthcare industry will reach the market value of US$ 280 billion by 2022. Increasing population, higher expenditure on lifestyles, rising market of health insurance, government initiatives for better medical infrastructure, and focus on Public Private Partnership (PPP) models are some of the driving factors for the growth of healthcare sector in India. Major players in the Indian healthcare sector include Apollo Hospitals Enterprise Ltd, Fortis Healthcare Ltd, Max Hospitals and Aravind Eye Hospitals. Trends and Investments US medical devices-maker Welch Allyn plans big India expansion and boosts its presence in India. The US-based company has a range of products such as stethoscope, ophthalmoscope, BP monitors, cardio-pulmonary and thermometry devices. “Welch Allyn has drawn up an aggressive five-year strategy to focus on the Indian market, as we target revenues of US$ 5 million by 2015,” according to Con Hickey, Senior V-P, Japan, Asia Pacific and Africa. Welch Allyn has selected Garuda Med Equipments as its marketing and distribution partner in India. The plan behind the joint venture is to focus the resources on customers in primary healthcare centres and B&C class cities and rural market in the country. Aventis Pharma, a unit of France’s Sanofi, a drug maker company intends to acquire unlisted Universal Medicare’s nutraceuticals business in order to boost its share in the Indian healthcare segment in the country. Universal Medicare’s turnover of the nutraceuticals business, which comprises of over 40 over-the-counter formulations, is estimated at over US$ 23.13 million, as according to Shailesh Ayyangar, Managing Director, Aventis Pharma, the acquisition will offer both the groups to extend their services to larger section of the Indian population by offering a higher variety of medical services that comprise of pharmaceuticals, vaccines and nutraceuticals. Medical-equipment maker Trivitron Healthcare intends to invest US$ 21.02 million in 2011 on capacity expansions and acquisitions. Trivitron has set up a 25-acre medical-technology park at Irungattukottai, near Chennai, which has started its operations in September 2010. With 10 housing facilities, the park currently op10 | December 2011 - India-Austria Newsletter

erates one factory for manufacturing ultrasound and colour Doppler machines (under a joint venture with Hitachi Aloka). Medical Tourism As per the study conducted by the India’s commerce chamber, medical tourism industry in India is competitive in nature and has been able to attract a large number of foreign visitors surpassing the figures for other South East Asian countries, thereby contributing significantly to the country’s economy. In a report titled, ‘Emerging Trends in Domestic Medical Tourism Sector,’ by a leading industry body it was stated that an estimated 3.2 million medical tourists would arrive in India by 2015. The report stated that the states of Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal and New Delhi have been identified as the major destinations for medical tourists in the country. These states have adequate medical infrastructure for medical operations, cosmetic surgeries such as facelifts, botox treatment, tummy tucks, eye and dental care have so far proven the most sought after treatments by foreign patients. Serving more than 850,000 foreign patients every year, India has been able to uphold a strategic advantage and with the existing 40 per cent CAGR, a leading industry body estimates that the medical tourism sector could rise to US$ 2.4 billion by 2015. Apart from the regular medical services, India also offers a variety of holistic medicare such as yoga, meditation and ayurveda. The western states of Goa, Kerala, and Karnataka have emerged as the most admired destination for ayurveda and spa healing resources. Government Initiatives There have been a number of noteworthy initiatives taken up by the Indian government to boost the healthcare sector in the country. These initiatives focus on investment that are closely linked to providing better medical infrastructure, rural health facilities etc. 100 per cent foreign direct investment (FDI) is permitted for health and medical services under the automatic route The National Rural Health Mission (NHRM) had allocated US$ 10.15 billion for the up gradation and capacity enhancement of healthcare facilities Moreover, in order to meet revised cost of construction, in March 2010 the Government allocated an additional US$ 1.23 billion for six upcoming AIIMS-like institutes and up gradation of 13 existing Government Medical Colleges Road Ahead India’s healthcare providers however cannot afford to rest on their laurels as they will soon face tough competition for medical tourists internationally. Like other South Asian nations like Malaysia, Singapore, and Thailand, India has been quick enough to assess the lucrative marketplace within the healthcare sector, following which there has been heavy investments both from the government and the private sector to meet the rising demands in healthcare industry.

Profile | Industry BIG player: Fortis Healthcare Limited

Fortis Healthcare Limited founded on 1999 is one of the leading chain of Hospitals in India which is benchmarked to International standards - achieving quality through the relentless adherence to the protocols observed in some of the world's leading h. Fortis Healthcare Limited founded on 1999 is one of the leading chain of Hospitals in India which is benchmarked to International standards - achieving quality through the relentless adherence to the protocols observed in some of the world's Fortis Healthcare (India) Limited owns, operates, and manages multi specialty hospitals in India. The company’s hospitals primarily provide tertiary and quaternary healthcare services to patients primarily in the areas of cardiac, neuro sciences, orthopedics, gastroenterology, cancer, and mother and child care, as well as minimal invasive surgery, renal sciences, and kidney and liver transplants. It operates 62 hospitals. The company was formerly known as Fortis Healthcare Limited and changed its name to Fortis Healthcare (India) Limited in March 2011. The company was incorporated in 1996 as is based in New Delhi, India. Fortis Healthcare (India) Limited is a subsidiary of Fortis Healthcare Holdings Limited.

LEADING sme: SIPRA labs limited SIPRA, with two decades of experience, is the preferred destination for the research needs of its esteemed clientele, include many transnational companies. SIPRA LABS is USFDA inspected, DSIR approved Contract Research Organization engaged in Drug Development support services to the Pharma Industry. The thrust of the Organization is to offer

one-stop-research solutions to the Drugs, Pharmaceuticals and Biotech Industry. committed organization collaborating with industry in conducting research studies as per cGLP / cGCP guidelines. Sipra Expertise, infrastructure and credibility are widely recognized across the globe and its services from characterization to dossier preparation, including pre-clinical

studies, product development studies and clinical studies for pharma and bio pharma products. Sipra Labs was set up in a vast area of 1.2 Acres, in Sanathnagar Industrial estate located in the heart of Hyderabad city, with a built up area of 95000 sft. Sipra is a non polluting laboratory and has the approval of AP Pollution Control Board.

December 2011 - India-Austria Newsletter | 11

Industry | Trade Shows Upcoming trade shows in india WHAT The world's largest electrical Transmission and Distribution exhibition

WHEN January 18-22, 2012 WHERE Mumbai, India

emerging companies. WHAT The Trade fair targets WHEN WHEN those who are working with November 14-27, 2011 WHAT January 19-21, 2012 Handicrafts, Art and craft WHERE Asia’s leading Textile Trade Fair organized as exporters, Importes, WHERE by the Ministry of Textiles, IndiaNew Delhi Processors, Manufacturers, MORE INFO New Delhi, India Distributors and many



WHAT International Conference and Exhibition on Plastics supported by the Ministry of Chemicals & Fertilizers of India WHEN February 1-6, 2012

WHAT World's leading security and safety exhibition.

WHEN March 1-3, 2012 WHERE Mumbai, India

12 | December 2011 - India-Austria Newsletter



State Profile | Tourism PUNJAB Punjab, the land of five rivers and integrated cultural history,is a treasure trove for an avid tourist.For this land of the great gurus not only boasts of ancient monuments but throbs with historical embodiments.It is no secret that whoever comes to this land of yellow fields with blue mountains providing the romantic and picturesque backdrop has never gone back without imbibing the essence of Punjab. There is no dearth of breathtaking palaces,for Punjab was the seat of royality,as the imposing Quila Mubarak will tell you. Museums galore and so are the religious places with the Golden Temple offering succour to the mind and soul of any one visiting. If you are a wild life freak, then Punjab can take you on a tour of the sanctuaries,which are hot favourites with migratory birds.Since this state borders Pakistan,there are two main posts from which you can peep into the land that was once an integral part of Punjab and experience the feelings of the people separated by a line. The much truncated India's portion of present Punjab is divided into three natural regions :the Majha,the Doaba and the Malwa. Punjab, the chief wheat producing area of the country, is the overland entry point into India. The state is also known for its production of sports and hosiery goods. The holiest shrine for the Sikhs is the Golden Temple in Amritsar, so called because the dome is covered with gold leaf.

Golden Temple Amritsar

Khalsa College Amritsar

Amritsar Amritsar - the holy city of Sikhs, has grown from a sacred village pond intoa spiritual temporal centre of Sikh culture. The city gets its name from thepool-Amritsar (Pool of Nectar), which was constructed by the fourth religiouspreceptor of the Sikh faith. It also lies on the Asain Highway. Chandigarh The city of Chandigarh lies in the valley surrounded by Shiwalik Hills that hem the great Himalayas. From here one can travel northwards to the hill resorts of Shimla Kulu, Manali, Dharmashala and Dalhousie. Chandigarh is not only the most modern city in the country but has been planned to perfection by the world famous French architect le Corbusier.

Takht Sri Kesgarh Sahib

Some of Punjab’s attractions are:

Punjab Rural Folkore Kila Raipur Sport Event

IndiaTourism Frankfurt

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

December 2011 - India-Austria Newsletter | 13

Tourism/Fashion | Articles India wins two global awards at World Tourism Mart India stole the limelight at the World Tourism Mart 2011 by wining two global awards - World's Leading Destination and World's Leading Tourist Board, Incredible India.

Sahai also said: "2012 will be the year of India...our aim in the Ministry now is to increase India's share in the International Tourist Arrivals from the present 0.6 per cent to 1 per cent (of 1 billion travellers) by the end of 2016."

Tourism Minister Subodh Kant Sahai received the awards from Graham E Cooke, President and founder of World Travel Awards, at the Excel Exhibition Centre where he said India planned to have another five million tourists in the next 2-3 years in addition to the five million recorded this year.

He said, "In India Tourism sector is going to be recognised as the Infrastructure sector. We need two million hotel rooms if we are going to add five million tourists. The infrastructure will be developed by the Central and State Governments on the Private-Public Participation model."

"We have recorded five million tourist arrivals this year and we want to add another five million within the next two to three years which will help create 25 million additional jobs in the country," Sahai said. Answering a question on Visa restrictions on Tourists which prohibits a tourist from revisiting the country within two months of the first visit, he said the issue would be "resolved" soon. "We are going to remove this barrier."

And he added: “We feel Tourism is the only industry which will help eradicate poverty from the masses. A traveller to India is contributing to the upliftment of the poorest of the poor in the country. We have started late (in developing the tourism industry) but we are on the job to make it a success."

“2012 will be the year of India”

India: WORLD‘s 3rd largest men’s luxury jewellery market Jeweller C Krishniah Chetty & Sons' managing director Vinod Hayagriv's workstation is a vantage point for the goings on at his diamond boutique in Bangalore. "Take a look around the room," he says referring to the number of men at the store. "Men are probably much more comfortable participating in jewellery shopping now than ever before." Not just that. Fancy bracelets, rings, studs and chains are fast becoming part of the fashion statement of India's metro men who have already added cosmetics and creams to their routine. UB Group chief Vijay Mallya may have been a trendsetter with his solitaire studs, but it's not uncommon to find college boys picking out platinum studs at GRT Jewellers in Chennai. "Wearing light-weight gold jewellery is becoming a fashion amongst youngsters," says Rahul Singh, retail and marketing head at Kolkata-based Shree Ganesh Jewellery House, which recently rolled out a men's jewellery range under brand Gaja. No wonder then that India has overtaken the US to become the third-largest men's luxury jewellery market in the world this year, according to researcher Euromonitor International. The researcher estimated the country's men's jewellery market at $194.4 million, in sales and it's projected to grow 36.4% next year. The figure may look insignificant in the more than $22 billion Indian jewellery market dominated by women buyers, but more and more jewellers are paying attention to this growing set of consumers. "Although it's a niche market, it is growing. Nobody can ignore it now," says GR Radhakrishnan, MD of GRT Jewellers, which pegs the share of men's jewellery in its total sales at 20-25%. It plans to launch a new line of men's jewellery in collaboration with designers from Italy and Bangkok. Orra, a national diamond jewellery chain with presence in 23 cities, says 6% of its sales come from men's jewellery. Gold safe haven for Investment: "The metrosexual man is driving this demand," says Orra Director and CEO Vijay Jain. Men in 14 | December 2011 - India-Austria Newsletter

their late 20s and 30s are the biggest consumers, say jewellers. More men are independently venturing into jewellery stores today than ever before. And most of them are there to buy gifts for their partners. The trend, which began picking up 4-5 years back, is becoming more visible as gold gets accepted as a safe haven for investment and the desire to gift exclusive products gets heightened. Research indicates that 15- 20% of all platinum jewellery purchases are made by men. It was around 5–8% three years back, industry body Platinum Guild International said. While couples still mark the chunk of jewellery purchases, C Krishniah Chetty & Sons' Hayagriv says men independently buying account for 8-10% of total customers. For top diamond jeweller Gitanjali Group, men account for almost 42% of its sales. The average purchase value of these consumers has also doubled to Rs 25,000 in two years while spends by women grew 15-20% year-on-year to Rs 35,000 at Gitanjali stores, an official said. A senior executive at Forevermark, a De Beers brand, says that most of these independent purchases are being made on occasions such as Karva Chauth and Dhanteras. Although bridal collections and high-end purchases remain collective decisions, men are going beyond just being responsible for closing the value end of the transaction, says Dushyanth Ganjam, head of retail at luxury jeweller House of Ganjam, which has outlets across Mumbai, New Delhi and Bangalore. "There is much more intelligent involvement by men today in choice of design, type of stones or quality of diamonds. Not only do they see it as an investment but want to be seen as gifting something exotic," says Ganjam. Overseas travel is considered a key factor driving this change. As GRT Jewellers' Radhakrishnan says, "It seems men today do not lose as much patience as they did at jewellery stores earlier."

India in Austria | Miscellaneous Past events The charity evening “Der Krallerhof helps Indian children” with Ö3-star Claudia Stöckl yielded 18,000 Euros. (as published in on 2 November. Translated by Lukas Cajagi) In the wellness hotel “Der Krallerhof” in Leogang, autumns have traditionally been dedicated to the Indian art of healing – Ayurveda – and thus also Indian culture. On this occasion, Krallerhof managers Gerhard and Sepp Altenberger as well as Ö3-star Claudia Stöckl invited to the grand charity evening under the motto “Pinzgau meets India” for the second time. “18,000 Euros in donations that will benefit Indian street children in Kolkata under the auspices of Claudia Stöckl – this is the marvellous result of our charity evening “Pinzgau meets India” on Friday 28 October 2011”, Krallenhof-chief Gerhard Altenberger is overwhelmed by his guests’ willingness to help. As head of ZUKI (“Future for Children”), an initiative that helps Indian street children in Kolkata, Ö3-star Claudia Stöckl personally takes care that the donations “arrive” at their intended destination. “With the 18,000 Euros, we will establish a new classroom for the street children because the usual street education is not possible during the monsoon period and education needs to be conducted continuously”, Claudia Stöckl is happy. She will travel to India again in the near future. Charity evening in cooperation with the Indian Embassy in Austria The charity evening “Pinzgau meets India” on 28 October 2011, a total of 150 guests attended, stood under the sign of typically Pinzgau and Indian aspects. Cooperation with the Embassy of India in Austria made sure that the India experience was an authentic one. Among others, “Pinzgau meets India” in Krallenhof hosted especially: Claudia Stöckl, Gerhard and Sepp Altemberger with families, Indian Ayurveda doctor Dr. Basavapatna Ramaiah RAMAKRISHNA, member of the Salzburg provincial government Cornelia Schmidjell, mayor of Leogang Helga HammerschmiedRathgeb, Christine and Hubert Berger of Confiserie Berger (who won the auction for a picture provided by Claudia Stöckl), Sabine Gschwentner of ZUKI and many more.

Benjamin Leitner, head chef of Krallerhof, flawlessly supported by Indian Ayruveda and cuisine specialist Dr. Saragur Putturao GEETHA, made a lasting impression on the guests. The Indian Embassy in Vienna made a rousing contribution to the programme with Indian illusionist Kruti Parekh and Indian dance group Sadhya. Salzburg artist Helene-Maria Schorn provided two nudes (“lying girl” in pastel and “girl deep in thought” in oil pastel); they were auctioned for the benefit of ZUKI. According to gallery-owner Prof. Siegfried Karrer, Helene-Maria Schorn has been one of the most important Austrian artists focusing on nudes for 30 years. Josef Koll of “Möbelkarawane”, a specialist for Indian furniture, presented Indian furniture and decorative as well as household articles. Salzburg Heimatwerk interpreted the theme “Pinzgau meets India” in the form of a Salzburg traditional dress made of sari cloth. Krallerhof helps Indian children & Ayurveda in Krallerhof “In order to not just benefit from Ayurveda medicine, but also give something back, we help Indian children. And so, starting with last year, we organise an annual great charity evening together with Ö3-star Claudia Stöckl. In 2010, 10,095 Euros were given to Ms. Stöckl and her project ZUKI. This year, we were able to almost double the amount to 18,000 Euros in donations”, Gerhard Altenberger says. Ayurveda has been a staple among the treatments offered by Krallerhof. Furthermore, as of 2007, Ayurveda doctors headed by Dr. Basavapatna Ramaiah RAMAKRISHNA come to Krallerhof once a year to organise a comprehensive focus on Ayurveda. The doctors come from Bangalore in South India, where Dr. Ramakrishna heads an Ayurveda clinic. To be continued: Ayurveda and charity in autumn 2012 The next focus on Ayurveda and another instalment of the charity commitment in cooperation with Claudia Stöckl and ZUKI have already been scheduled for autumn 2012. “The success in the first two years has confirmed our intent to expand the Ayurveda offer with Indian Ayurveda doctors and strive for even greater charity goals”, Krallerhof-chief Gerhard Altenberger is enthused.

December 2011 - India-Austria Newsletter | 15

India in Austria | Miscellaneous Agenda Fallen angel - Exhibition by leslie de melo Vernissage 11 December, 11:00 In exhibition until 29 February KĂźnstlerhaus, Vienna More details at

Talk-Series "Zu Gast bei Elisabeth Al-Himrani" 15 December, 19:00 No. 81 - Mag. Katharina Geyer, MAS Natya Mandir Studio, 1010 BĂśrseplatz 3 More details at

PHOTO GALLERIES When visiting the Website of the Indian Embassy Vienna, make sure to take a close look at the Bulletin and the Online Photo Galleries.

RSS RSS allows you to easily stay informed by retrieving the latest content from the sites you are interested in. Add our Website to your RSS Reader and RECEIVE OUR WEBSITE UPDATES AS THEY GO ONLINE!! Our RSS Feed Address is:

Newsletter published by the commercial wing of the Embassy of India, Vienna. Contact under

December 2011 - India-Austria Newsletter | 16

India Newsletter 12.2011  

India Newsletter published by the commercial section at the Indian Embassy in Vienna

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