India Newsletter 08.2012

India Newsletter | 1

INDIA NEWSLETTERPublished by the Embassy of India, Vienna

Year 2 | Issue 20 | August 2012

Industry

BANKING

2 | India Newsletter

News

News of iNterestSnapshot of July Highlights

QUiCK fACts

1The overall growth of gross domestic product (GDP) at factor cost at con-

stant prices, as per Revised Estimates, is projected at 6.5 per cent in 2011-12. The growth in real GDP is placed at 5.3 per cent in the fourth quarter of 2011-12.

2The overall growth in the Index of In-dustrial Production (IIP) was 2.4 per

cent during May 2012. During April-May 2012-13, IIP growth was 0.8 per cent. The eight core infrastructure industries reg-istered a growth of 3.8 per cent in May 2012. During April-May 2012-13, these sectors grew by 3.4 per cent.

3Reserve Bank of India (RBI) has eased derivative contract norm. Banks do

not have to classify hedging of derivative contracts that are terminated partially or fully as restructured accounts.

4Government has approved 14 FDI proposals worth Rs 1,584.11 crore

(US$ 280.91 million), including that of Abhijeet Power Ltd to bring in FDI worth Rs 674 crore (US$ 119.51 million) and CLSA Singapore's proposal to invest Rs 225 crore (US$ 39.89 million).

5An investment of Rs 70,000 crore (US$ 12.68 billion) entailed in

projects coming up in Haryana including National Manufacturing Investment Zone at Manesar-Bawal Investment Region was announced by Mr Sharma, Union Minis-ter for Commerce, Industry and Textiles.

6India has set aside Rs 30,000 crore (US$ 5.42 billion) worth of incentives

and subsidies to encourage firms to set up electronics manufacturing units in the country. The Government has also draft-ed a marketing plan to promote 'Made in India' electronics in the global market.

7 Government has decided to set up a project clearance board, on the lines

of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet Sec-retary, for review and issue of one-time clearances, including security clearance.

8The Securities and Exchange Board of India (Sebi) has laid down guidelines

for promoters seeking to offload stake via offer-for-sale (OFS). Sebi has mandat-ed the OFS facility to be be available only on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

foreiGN trADe

9Exports can grow 20% in the cur-rent fiscal notwithstanding the global

slowdown, a senior commerce ministry official said. “We are still the second fast-est growing economy. I see turnaround in exports and indications are that we can achieve 20% export target this year,” Commerce Secretary S R Rao told after meeting the exporters body Fieo. Last fis-cal, the country crossed the merchandise shipment target of $300 billion at $303.8 billion, making it the largest-ever trade numbers. But so was imports driven by high oil and gold prices which together accounted for nearly $220 billion. Rao expressed relief over narrowing trade deficit and said the trade gap would be under control.

10The Indian pharma industry is confident of achieving exports of

$25 billion by 2014 at an annual growth rate of 25 per cent. Last year, the indus-try registered exports of $13 billion at a growth rate of 30 per cent, Dr P.V. Appaji, Director-General of Pharmexil, said. The industry expects to get at least $10 bil-lion worth of export opportunity when drugs worth $35 billion go off patent in the US.

foreX reserVes

11India’s foreign exchange (forex) reserves grew by $589 million to

$287.34 billion for the week ended July 20, central bank data showed. Foreign currency assets, the biggest component of the forex reserves kitty, increased by $565.5 million to $255.10 billion for the week under review, according to weekly statistical supplement released by the Re-serve Bank of India (RBI). The RBI did not provide any reasons for the growth. It said the assets in US dollar terms in-cluded the effect of appreciation or de-preciation of non-US currencies such as the pound sterling, euro and yen held in reserve.

iNfrAstrUCtUre

12To expedite project implementa-tion, the government announced

a single-window mechanism under the Cabinet Secretary for review and is-sue of clearances associated with major projects. After putting in place a prob-lem-resolution mechanism for infrastruc-

ture projects and an investment tracking system for projects over Rs 1,000 crore directly under the Prime Minister’s Of-fice (PMO), the government has decided to set up a Project Clearance Board, on the lines of the Foreign Investment Promotion Board (FIPB), chaired by the Cabinet Secretary, for review and issue of one-time clearances, including security clearance. The Board will include repre-sentatives from the ministries of home, defence, environment and forests, com-merce, coal, departmenmt of space and other infrastructure and energy-related ministries and departments. The decision was taken at a meeting held at the PMO to review the status of clearances of oil and gas blocks awarded under the New Exploration Licensing Policy.The Board will meet on a monthly basis. Ministries would report to the Board on the status of clearances after following their inter-nal processes.

sCieNCe/teCHNoLoGY

13The Government is planning 15 new laboratories for testing hard-

ware and software products. The labs would be set up under public private partnership (PPP) model. The Govern-ment will identify the locations for them soon. These labs will enable IT companies to register and test their products before selling it in the market. There are already five such laboratories under Department of Electronics and Information Technol-ogy in Delhi, Noida, Bangalore, Kolkata and Mumbai. “This would be one of the components of the National Electronics Policy that will span and support innova-tive work here. Products will have to be registered first in these laboratories in compliance with the safety standards set by the Government,” a top official said.

14The 4.2-billion euro German man-ufacturing company Carl Zeiss has

established a research and development unit and two manufacturing facilities in Electronics City in Bangalore.Carl Zeiss has been present in India since1998, but largely as a sales and service business. The company manufactures an array of products ranging from prescription spec-tacle lenses to diagnostic and surgical equipments that are used in the fields of ophthalmology, neuro-surgery and cancer treatment, and in camera lenses. It also manufactures precision measure-


News

ment tools that are used in the auto, aerospace, and power sectors, besides manufacturing equipments required for the manufacture of integrated chips.

AUtoMotiVe

15Yamaha Motor of Japan is planning to use India as one of its key global

hubs for motorcycles and scooters. Mr Hiroyuki Suzuki, CEO & Managing Direc-tor, India Yamaha Motor, said that while high-end models could be exported to the Asean region and Japan, low-cost models would be the best bet for emerg-ing nations such as Africa. The idea is to optimise the robust ancillary supplier base here which offers the best in quality and a competitive costing structure. For the moment, Yamaha has little going for it in India from the viewpoint of market share, but Mr Suzuki said all this was set to change during the course of this dec-ade. The company will focus on gearless scooters as part of its strategy to clock volumes, while 150cc plus motorcycles will contribute to the brand-building ef-fort.

Power

16 Japanese power equipment com-panies and lenders are keen to

work with Indian companies in all spheres of the power sector, according to a sen-ior official from the Japanese Ministry of Economy. Mr. Tsuneyuki “Hiro” Ito, Deputy Director in Ministry of Econ-omy, Trade and Industry, Japan, said that there is considerable technological and engineering capability that the Japanese companies such as Toshiba, Hitachi and Mitsubishi can offer to Indian companies in the power sector. Mr. Ito, who was in Hyderabad to speak at the power plant summit, said that lenders such as Japan International Cooperation Agency and several Japanese banks are keen to take part in some of the power projects be-ing taken up and under implementation directly or through companies.

fiLM

17International production houses may soon find it easier to get per-

mission to shoot films in India. In a bid to make India a filming destination, the Min-istry of Information and Broadcasting is looking at setting up a Film Commission that will initially act as a single-window clearance agency to issue permits for shooting. At present, international pro-ducers need to seek multiple approvals. While they require script approvals from

the I&B Ministry and the Ministry of Ex-ternal Affairs, cast and crew approvals are required from Ministry of Home Affairs. Based on the kind of shots and loca-tion, they need approvals from Customs Department, the Archaeological Survey of India besides several other local and State authorities.

18India and Poland have signed an Audio visual Co-production

Agreement. The Agreement was signed between Smt. Ambika Soni, Minister for Information & Broadcasting and Mr. B. Zdrojewski, Minister of Culture and Na-tional Heritage of the Polish Government at Warsaw. The agreement establishes a legal framework for relations regarding audio visual co-production, especially films including animation & documen-tary films for the cinema and TV, as well as films intended solely for dissemina-tion on analogue or digital data carriers. The agreement shall remain in force for a period of five years from the date of its entry into force. The signing of the Agreement ensures better partnership and collaboration between enterprises and institutions which produce, distrib-ute and disseminate films.

iNterNAtioNAL

19India and Russia have jointly agreed to study a comprehensive

economic co-operation agreement with Belarus, Kazakhstan and the Russia Cus-toms Union. This was indicated by the External Affairs Minister, Mr S.M Krishna, after a meeting with the Russian Deputy Prime Minister, Mr Dmitry Rogozin. Mr Krishna said co-operation in strategic ar-eas was also discussed. “We exchanged constructive views on various aspects of trade and investment co-operation between India and Russia,” he said. He added that India had sought a solution to outstanding problems confronting busi-nessmen and both agreed to redouble efforts to achieve a $20-billion trade tar-get by 2015. The Russian Deputy Prime Minister said India and Russia were keen on joint production and research and de-velopment of projects.

20The new India-Norway tax treaty that allows exchange of banking-

related information for taxation purpos-es has come into force. The earlier dou-ble taxation avoidance agreement signed in December 1986 did not provide for a specific mechanism for exchange of banking-related information between the two countries. That agreement has now

been terminated. The new treaty, signed in February this year, will apply for in-come earned or capital owned on or af-ter April 1, 2012 in the case of India. For Norway, the new tax treaty will apply for income earned or capital owned on or after January 1 this year

21New Zealand and India bilateral trade is poised for big spurt with

more businesses looking at coopera-tion and the possibility of expanding the number of goods. “The discussion on the Free Trade Agreement is progressing well. We hope this would be finalised at the earliest. Most negotiations relating to FTA are complex and they take time to conclude,” Mr Gavin Young, New Zealand Counsel General and Trade Commis-sioner, said. Mr Young told, “The bilateral trade between India and New Zealand has been growing with the latter’s ex-ports to India going up by 6.55 per cent year on year and exports from India to New Zealand increasing by over 8.7 per cent. While the current two-way trade is $1.3 billion, the target is to take it up to $3 billion by 2014.”

DeLeGAtioNs

22 In the second half of 2012, two business delegations from India

are expected to visit Austria.

the Vibrant Gujarat Delegation will be visiting Vienna between 27-29th Sep-tember, 2012. The delegation’s main focus sectors are: Engineering, Electronic & Ma-chinery and Construction. The delegates plans a Road Show for around 30 to 40 companies.

the Chemicals and Allied Products export Promotion Council of India is visiting Vienna on 8-9th October, 2012. The delegation is comprised of 22 com-panies. Besides seeking trade partners, the companies hope to check the possi-bility of Joint Ventures, Technical Tie Ups, Take-overs of Plants & Machineries, pos-sibility to open branch offices in Austria vis-à-vis inviting European firms to have their representation in India, procure-ment of quality raw materials, appointing sales agent, selecting distributors, tie up with buy back arrangements etc.

Shall you be interested in holding B2B meetings with any of the two visiting del-egations, please get in contact with our Embassy under [email protected] to get more information.


iNDiA-AUstriA BiLAterAL NewsExtracted from our Economic and Commercial Report

BiLAterAL trADe rePort

India’s Export to Austria. On the exports’ side, Textiles, Apparels and Footwear still represent the largest slice, accounting for exactly 38% of India’s total exports to Austria. Within these sectors, the only observable note to be made is the de-crease in exports of Apparels by -12.3%, now accounting for 22.23% of India’s total exports to Austria, in comparison to the same value in 2011, which was 26.42%.

Machinery and Equipment represent the second most important export group, ac-counting for 25% of total Indian exports to Austria with a 2.3% increase in volume. These numbers are made up by increases in exports of general industry machinery and road vehicles by 29% and 2.1% re-spectively, while Power Generating Ma-chinery and Electrical Machinery showed slight negative marks.

Another important change worth high-lighting is that there seems to be a slight trend change in the Chemicals sector. While experiencing constant decrease since early 2011, the segment started to catch up and now accounts for 14.15% of India’s total exports to Austria, in con-trast to 10.33% for the same period in 2011. The boost is mainly pushed by in-crease in exports of Organic Chemicals, which more than doubled its value in comparison to 2011.

India’s Import from Austria. On the im-ports side, virtually every trade group has marked negative results, which in-dicate to a rather macro-economically influenced slowdown, rather than punc-tual segment issues. As the decreases are rather equally distributed, the struc-ture of imports remain the same, being Machinery and Transport Equipment the main import group accounting for 43.55% (2011:43.14%) of total imports, followed by manufactured goods (2012: 35.5%, 2011:34,65%) and Chemicals (2012:9.87%, 2011:9.34%).

reMArKABLe orDer iNtAKe iN iNDiA for ANDritz

Andritz Hydro India has been the market leader in the Indian hydro segment for the last five years and registered good growth in terms of new orders. The com-pany has made inroads in new markets like Nepal and Vietnam . Notably, Andritz

picked up two major orders in the first quarter of 2012:

They have been awarded the prestigious Upper Tamakoshi Hydro Electric project with an installed capacity of 477 MW af-ter stiff international competition which included the participation of two Chi-nese companies. The customer is the Ne-pal Electricity Authority. The major part of the equipment for the project will be sourced from India with one or two criti-cal items coming from Austria.

The other project is Baglihar Stage II located in Jammu & Kashmir for which Andriz was awarded with a contract for electro-mechanical works . The customer for this project is JKPDC. Andritz Hydro shall be executing this project in a con-sortium with Voith Hydro.

GeBAUer & GriLLer stArts sUPPLY of PHotoVoLtAiC riB-BoN wires froM its BANGA-Lore PLANt

GG Cables and Wires India Pvt Ltd., the Indian subsidiary of the Austrian group Gebauer and Griller started produc-tion of photovoltaic ribbons at its unit in Bangalore, Karnataka, in January 2012. The supply of product samples to pro-spective clients began in February and shortly after full industrial production was started. The plant is now supplying to various Indian customers who are manufacturing solar PV modules for do-mestic and international requirements. A considerable increase in Indian domestic demand is expected to fulfill the innova-tive and eco-friendly Jawaharlal Nehru National Solar Mission. Under Phase 1 of this mission the Indian government aims to provide 1000 MW of grid-connected solar power by 2013. Gebauer & Griller established the Bangalore unit in 2010, currently about 75 people are employed. Apart from the solar industry the plant is also supplying cable assemblies and flat travelling cables to the Elevator and Esca-lator Industry in India.

soLAr HeAtiNG sPeCiAList tisUN eXPANDs to iNDiAN MArKets

TiSUN GmbH established a subsidiary company in Mumbai, TiSUN-EDES Solar (India) Pvt. Ltd., in order to be able to service the vast Asian market more ef-

ficiently. Development in the area of solar

heating systems has not been restricted

only to the West and since long progress

has also been made in this field in several

Asian countries including India. Various

specialized fairs held in India in recent

years bear witness to this fact. By estab-

lishing a subsidiary in India, TiSUN, as an

expert in solar heating systems would

like to promote growth in the region

in this sector and establish a distribu-

tion network. The Indian solar market is

poised for growth. Messrs.TiSUN would

like to make a significant contribution to-

wards this development and, with their

high-quality products, earn a name for

themselves in the Asian market. They see

great potential especially in the area of

large solar plants.

efKoN streNGtHeNs MArKet LeADiNG PositioN iN iNDiA

Austrian EFKON Group headquartered

in Graz/Raaba, one of the leading com-

panies in intelligent transportation and

tolling solutions, has announced that

its subsidiary EFKON India has won six

prestigious projects in the field of In-

telligent Transportation Systems (ITS)

of approx. € 10 million in total. “With

these successes EFKON India has fur-

ther confirmed its leadership position in

both market share and technology in the

Indian Intelligent Transportation Systems

market. The company continues to be the

“partner of choice” for concessionaires

and customers wanting complex and

large scale deployment of ITS systems in

India thanks to its technology and team

of dedicated experts”, says India EFKON

India CEO Pushkar Kulkarni. The follow-

ing projects were won: Yamuna express-

way project, Zirakpur Parwanoo project,

Chengapalli Coimbatore project, Indore

Gujarat project, Pune-Sholapur road

project and Automatic Fare Collection

Systems in Jaipur City.


PrANAB MUKHerJee eLeCteD 13tH PresiDeNt of iNDiAPresidential Elections

Pranab Mukherjee was elected the 13th President of India, capping the long innings of the veteran Con-

gress leader and the party’s chief trou-bleshooter over the past eight years. The former finance minister and the candidate of the ruling UPA, who garnered 69.3% votes, defeated his rival PA Sangma, the candidate backed by AIADMK, BJD and NDA (minus Shiv Sena and JD-U), by a bigger than expected margin.

Mukherjee’s victory, though expected, turned out to be sweeter for Congress

because not only did it end up with a show of a united alliance but also man-aged to drill a few more holes into the rival camp. While Congress expected its candidate to win 102 votes in BJP ruled Karnataka, Mukherjee ended up with 117 votes in the 224-member assembly as a few BJP members appeared to have vot-ed against the party line. Sangma got 103 votes, while three votes were declared invalid and one MLA did not vote.

“I would like to thank people of this great country for conferring this distinction by electing me to the high office,” Mukher-jee said after results. “Now, they have entrusted me with the responsibility to protect, to defend and to preserve the Constitution as President of the Repub-lic. I will try to justify, in a modest way as I can, to be trustworthy to the people.” Mukherjee, who was leader of the Lok Sabha for the past eight years and held the portfolios of external affairs and de-fence, besides finance, in his career span-

ning more than four decades, was sworn the 13th President of India. The Chief Justice of India administered the oath of office to the President-elect, who took over from Pratibha Patil, at a ceremonial function in the Central Hall of Parliament.

Sangma while congratulating his rival al-leged that the government had induced opposition ruled states through financial packages to garner support for Mukher-jee. “We need election code of conduct for presidential poll,” he said. Sangma said the country had lost the opportunity to support the tribals of India.

Mukherjee won 69.3% votes in all. Of the 748 members of Parliament who voted, Mukherjee won 527 votes with a value of 3,73,116 while Sangma got 206 votes with a value of 1,45,848. Fifteen votes, in-cluding that of SP chief Mulayam Singh Ya-dav, were declared invalid. Of these, nine would have gone in favour of Mukherjee.

Articles

iNDiA’s GDP wiLL Cross tHe $5 triLLioN BY 2020Report by Dun & Bradstreet

Business information and knowl-edge provider Dun & Bradstreet forecasted that India’s GDP will

still cross the US$ 5 trillion mark by 2020 despite the economy slowdown, in its second edition of its publication, India 2020 - economy outlook.

The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses. “India is expected to be more than US$ 5 trillion (current market price) econ-omy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010,” the report said. “We expect the current phase of subdued growth to continue till

FY15 before the economy moves into a high growth phase,” it added.

According to the report, investment ac-tivity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final

consumption expenditure by FY20, com-pared to 60.0% in FY11.

Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement:

“Subdued growth in the domestic econo-my owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase.”

Dun & Bradstreet also says that invest-ment in physical infrastructure is likely to lead to employment generation, in-creased production efficiency, reduction in cost of doing business and improved standard of living. The share of the pri-vate sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.

Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Ra-jasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin lev-eraging their huge potential in terms of vast natural resources and manpower.

Read more about this report under:

www.dnb.co.in/India2020/Default.html


iNDiA iNC DoUBLes its reVeNUe iN fiVe YeArsIndia on a high growth path

teXtiLe & APPAreL iNDUstrY size to Be $221 BiLLioN BY 2020Technopak Textile and Apparel Compendium 2012

GUJArAt, GerMANY to set UP BUsiNess CeNtreTechnopak Textile and Apparel Compendium 2012

Regardless of global crisis, political upheaval and slowing capital in-vestment, India Inc has remained

on a high growth path and has doubled its revenue in five years to a little over Rs 50 trillion. Despite limited pricing power for oil companies, weakness in interna-tional commodities and a rise in the cost of borrowing hurting profitability, com-bined net profit has risen a significant Rs 1 trillion in four years to Rs 2.97 trillion.

The financial aggregates for 2011-12 are far healthier than those for 2008-09, when the global economic slowdown led to a significant fall in the net profit of In-dian companies. Sales growth in 2012 re-mained strong, up 23 per cent, but there was a profit decline of 10 per cent, led by a net loss of Rs 270 billion by 50 com-panies, mostly due to market-to-market losses (revaluing assets at current values) on forex borrowing and hedging.

However, the Rs 1 trillion crore revenue club, earlier comprising five oil com-panies, has now gone up to seven with Tata Motors and Tata Steel joining the big league, through two major foreign acquisitions. Analysts are expecting tel-ecom giant Bharti Airtel and the AV Birla Group’s metals giant, Hindalco, to join the coveted list in the next two years.

In the past five years, companies have grown in profit and size in metal in-dustries, technology, telecom, power, refining, automobiles, banking, pharma-ceuticals and finance. Some retreat in profit growth has been seen for business groups having presence in construction, infrastructure and textiles, due to the economic slowdown.

The net profit for industrial giants in manufacturing and services sectors con-tinues to be high. The number of com-

panies with net profit of Rs 100 billion has swelled to five from two and those with net profit of Rs 50 billion or more increased from three to nine.

Major business houses have not faced cash flow pressure. The Tata Group ag-gregated net profit of Rs 1.06 trillion in five years. Mukesh Ambani’s group, with the help of petrochemicals and oil gas giant Reliance Industries, took six years to earn a net profit of Rs 1 trillion. The AV Birla Group more than tripled it net sales to Rs 1.67 trillion in six years and aggregated a net profit of Rs 270 billion in three years. The Vedanta group aggre-gated net profit of Rs 540 billion in five years, while telecom giant Bharti Airtel earned Rs 335 billion in five years.

During the next decade when the $662 bn global textile and appar-el trade would clock a CAGR of

5%, the $89 bn Indian textile and apparel industry would grow 9.5% to become $221 bn by 2021, according to Techn-opak’s Textile and Apparel Compendium 2012.

India’s $58 bn domestic market would also clock a CAGR of 9% to be $141 bn by 2021. Although dominated by men-

wear, India’s domestic market would see growing share of womenswear and kid-swear over the decade. Men’s share in the basket would drop to 40% from 43%, the report indicates.

With Indian’s increasingly taking to buy-ing new homes and decking them up, the share of home textiles in the basket would grow by 8% to become $9 bn by 2021. The technical textiles market would however, clock a faster growth at 10% to

become $34 bn during the period.

With growth slowing down in major consumer markets in the West, the dy-namics of the global textile and apparel trade that would be $1

trillion by 2020 is likely to change dra-matically, notes Technopak. BRIC econo-mies and other South-East Asian manu-facturing destinations would be the major gro wth drivers for the sector during the period.

A German Indian business centre (GIBC) has been proposed to facilitate business opportunities

between Germany and Gujarat for set-ting up of offices, technology transfers and joint ventures.

The centre will facilitate investment be-tween companies in Germany and Gu-jarat. Among other activities, GIBC will facilitate acquisition of German compa-nies for Gujarat companies along with taking care of due diligence. The centre will also scout for and register technol-ogy partners in both countries.

“Germany is the largest trading partner of India in the European Union (EU). Despite the financial challenges in EU, trade is increasing between the two. The proposed GIBC in Gujarat will act as a bridge,” said Jagat Shah, founder, Global Network, an international trade consult-ing firm based in Ahmedabad.

GIBC’s focus will be on sectors like en-ergy including renewable, automotive, life sciences, engineering, laser optics, ICT, in-novation, research and education.

Other activities of GIBC will include facilitating education, innovation and re-

search in cutting edge sectors while also exposing Gujarat and German compa-nies to the culture and business etiquette of each other.

The centre will provide information to German companies on procedures to set up business in Gujarat and vice ver-sa. GIBC will also arrange sector wise, monthly video conferences between companies in Gujarat and Germany.

For the Vibrant Gujarat Global Investors’ Summit 2013, GIBC will bring a delega-tion from Germany with a focus on edu-cation and business.

Articles


iNDiA CAN Be toP 2 DiAMoND MArKetBy Global diamond major De Beers

Global diamond major De Beers has set its sights on India as it expects the country to be one

of the top three markets for the precious stones in the coming decade.

“...You know India is one of our top five priority markets and we certainly expect India, to be a number two or number three as we enter into the decade, prob-ably after US and China,” Forevermark CEO and De Beers Group Executive Di-rector and Executive Committee Mem-ber Stephen Lussier said.

Predicting that growth would be driven

by Indian and Chinese markets, he said the company planned to fully tap tier II and III cities since majority of the sales came from them.

“According to me 10 per cent of the dia-mond sales comes from India. If you look at the sales of De Beers Group, India is well over 50 per cent in our sales of rough diamonds,” he added.

Talking about plans for India this year, Lussier, who was here to participate in the “ForeverForum” a two-day event said, “We are planning to tap Tier II and III cities as most of the business were com-

ing from these regions.

“Since our entry in India, we have been adding cities and branching out to more towns. We thought entering into big cit-ies will be apt for these (diamonds). But it was contrary.

We found there is lot of opportunity in smaller cities. We are finding people switching from gold to diamonds faster in Tier II and smaller cities”, he said.

On the impact of rupee weakening against US dollar, he said, “It has been a challenge. It has made the retailers to deal the diamonds more expensive. It also impacts the Indian industry because they need to finance the business, which runs in US Dollars and to finance in ru-pees is more harder.”

Lussier said the company was planning to open 100 retail points of sales in India by the end of this year.

“Last year we were having about 34 doors. It is now at 65. We are aiming to have 100 doors by Diwali this year. Pretty much tripling the number of retailers, which is a big number for a country like India”, he said.

iNDiAN wiNes CoMe of AGeExports touched $4.5 million mark in 2011-12 , set to cross $18 million

India’s wine industry seems to be coming of age, thanks to the chang-ing socio-economic scenario, growing

disposable incomes and well-publicised health benefits of wine in the country.

Competing against blue-chip world-famous wines, India’s wine exports are expected to cross the $18 million mark in the next couple of years, said the Ag-ricultural and Processed Food Products Export Development Authority of India (APEDA).

To achieve that in a world dominated

by French, Italian Spanish and American wines is not easy, but APEDA chairman Asit Tripathy said that Indian wines were becoming popular in overseas markets and also beginning to make an appear-ance at international food shows.

Presently, Indian wines are largely being imported by Malaysia, Japan, the UAE, Bhutan, Germany, the USA, the UK, Sri Lanka, Maldives and New Zealand.

To mark the arrival of new-age Indian wine on the global map, APEDA is or-ganising a promotional event “Wines of India” next week in the National Capital.

While the domestic industry grew due to the affordability factor, exports are also picking up as a result of diversifica-tion and had touched $4.5 million during 2011-12.

“The industry is expected to reach $18 million in a couple of years, given aggres-sive marketing,” said Tripathy.

The Indian wine industry is a little over four decades old and is still in its nascent stage. There are approximately 90 wine industries, mostly located around the Pune-Nashik belt and Bangalore.

Compared to world leaders like France, Italy, Spain, the US, Argentina, Australia, China, South Africa, Germany, Chile and the UK, Indian industry is very small and largely propelled by affordable domestic prices.

Experts, however, see a huge growth po-tential in the sector for all stakeholders - from grape farmers to consumers. Begin-ning with French varieties like Cabernet Sauvignon, Shiraz, Sauvignon Blanc and Chenin Blanc, Indian vineyards have now diversified to better and wider varieties.

Articles


UNesCo CAteGorY-1 iNstitUte iN DeLHiIndia and UNESCO Sign Agreement to Establish A UNESCO Category-1 Institute

INDIA and UNESCO have signed the agreement to establish the Mahatma Gandhi Institute Of Education for

Peace and Sustainable Development on 9th July 2012 at UNESCO Headquarters, Paris.

“The challenges of the 21st century are qualitatively different from the challenges of the 20th century. Global understand-ing and education would assist in appre-ciating the impact of these challenges on peace and its relation to sustainable development. The Mahatma Gandhi In-stitute of Education for Peace and Sus-tainable Development comes at the right time – a time when the world is debat-ing the contours of the century ahead.” This was stated by the Union Minister of HRD, Communications and IT, Shri Kapil Sibal, at UNESCO following the signing of an agreement for establishing the MGIEP as a UNESCO Category-I Institute in New Delhi, the first of its kind in the Asia Pacific region.

The signing of the agreement is the cul-mination of a process of three years com-mencing with the decision by UNESCO’s 35th General Conference in 2009. The Institute to be located in India, is the first of its kind in the Asia Pacific region.

Ms. Irina Bokova, the Director General of UNESCO said, “The Mahatma Gandhi Institute comes at the right time - a time when the world is debating the contours of the century ahead, when UNESCO is preparing its next strategy to advance peace and promote sustainable develop-ment,”

The Institute’s core activity will lie in research and capacity building. It will en-courage knowledge exchange, regional networking and catalyse innovation by helping to design and test new approach-es to education. The Institute would be greatly inspired by Mahatma Gandhi’s vi-sion of peace and sustainability.

Both Shri Sibal and the DG UNESCO

paid tributes to Gandhi’s universal legacy and his vision of peace and the defense of human dignity. Shri Sibal paid tributes to Gandhi’s vision of education, highlight-ing its relevance for confronting chal-lenges such as the overuse of natural re-sources and learning to live together. He said, “Gandhi said that we have enough for everyone’s need but not enough for everyone’s greed. This is the source of conflict. The crises the global community faces needs to be addressed through the inspirational wisdom of Gandhi, who said that for a person to be truly educated, you had to have a united approach, by training the mind to think, the hands to acquire skills and the heart for human values and ethics.”

An Expert Advisory Group would soon be set up by UNESCO to develop an agenda for the Institute. Shri Kapil Sibal also extended a formal invitation to DG UNESCO for visiting India later this year for launching the Institute.

iNDiA’s first MeGA fooD PArK oPeNs iN ANDHrA PrADesHIdeal destnination for fodd processing units

Agriculture and Food Processing Industries Minister, Shri Sharad Pawar inaugurated the Srini mega

food park at Chittoor in Andhra Pradesh. This is the first mega food park in the country.

From seed to shelf, Srini Food Park fa-cilitates end-to-end food processing with beneficial forward and backward linkages. On par with software parks, this new-age facility is equipped with Central Process-ing Centre and Primary Processing Cen-tres. It aims at becoming a pioneering infrastructure enabler and facilitator for the Food Processing Industry.

As a model ‘Mega Food Park’ and the first of its kind in India, Srini provides

state-of-the-art food processing infra-structure designed as per global stand-ards and develops a veritable market place with common facilities on the lines of a software park or a textile park. Mega Food Park is promoted by experienced professionals and supported by the gov-ernment (the Ministry of Food Process-ing Industries and the Andhra Pradesh Infrastructure Investment Corporation) and is intended to benefit all components of the value chain.

Nestled in a sprawling 147-acre space, Srini Food Park provides world-class facilities for pulping, IQF, bottling, tetra packing, modular cold storage, ware-housing and advanced testing lab. It ena-

bles basic and supply chain infrastructure, cluster farming and is ably backed by field collection centers, self help groups and individual farmers. Srini Food Park will empower food industry with state-of-the-art infrastructure and quality raw material sourcing.

With the highest growth in the fruits and vegetables sector (20%) and with Chit-toor being the largest fruits and vegeta-bles cluster in India, this Mega Food Park becomes an ideal destination for food processing units.

A mega food park provides various facili-ties to food processors, farmers, retailers and exporters, thus help in fast growth of food processing industries.

QUote of tHe MoNtH

“ Indian champions are becoming global champions. We have deep relationships with many of these fantastic Indian companies who now run global enterprises. You look at Tata’s, Reliance, Vedanta, Infosys, Wipro. They have a global mindset, a global perspective and our priority is to continue to help the established Indian champions grow and the new breed of emerging corporate titans from India”

Stephen BirdCEO, Asia Pacific region, Citigroup

Articles


Articles

8 iNDiAN CoMPANies iN fortUNe 500 ListIndians Market Leaders

Eight Indian companies have made the cut in the list of world’s 500 largest companies compiled by For-

tune magazine, with Indian Oil and Reli-ance Industries finding a place in the top 100.

Out of the eight, five are state run enti-ties. With an annual revenue of $86,016 million, Indian Oil has cornered the 83rd spot up from 98th place last year.

Mukesh Ambani-led Reliance Industries is

the first Indian private firm to made into the top 100 list. With an annual revenue of $76,119 million, RIL, has improved its ranking to 99 from previous year’s 134.

Besides IOC and RIL, the other Indian companies in the list are: Tata Steel, Tata Motors, Bharat Petroleum, Hindustan Pe-troleum and Oil & Natural Gas Corpora-tion and public sector bank State Bank of India.

The list also features Citigroup and Arce-

lorMittal, led by people with Indian roots.

Fortune’s global list of world’s 500 largest companies for 2012 is topped by Royal Dutch Shell ending the retail major Wal-Mart Stores’s two-year winning streak. The energy giant had annual revenues of $484,489 million.

American companies have cornered 132 places in the list, followed by China 73 seats and Japan 68 seats.

iNDiA wiLL Be AsiA’s fAstest GrowiNG trADer iN 5 YeArsResearch Report by HSBC

GreeN BUiLDiNGs GAiN MoMeNtUM iN iNDiAExpected to account for 20% of all construction by 2030

Over the next five years, India will serve as Asia’s fastest growing exporter and importer with

annualised growth averaging 5% and 7% respectively, said HSBC Global Connec-tions report. The trade relationship be-tween China and India will strengthen over the same time period, with HSBC forecasting Chinese imports into India to grow at 11% annually, while exports to China from India are forecast to expand at 8% annually to 2016,’’ said.

The forecast is consistent with a devel-oping global shift where traditionally

export-driven emerging markets will be-come global trade hubs and important facilitators of international economic growth. Trade in Asia is expected to grow 5.4% annually to 2016, substantially high-er than the global forecast of 4.7%,’’ said the report.

India’s trade corridors within Asia con-tinue to strengthen with exports to Ma-laysia, Vietnam and Indonesia all expected to grow at around 11% over the next five years. The fastest growth markets in terms of imports include Oman at a forecast rate of 15.7% and Brazil at 14%,

said HSBC.

The reports states that there is a blend of traditional trade route and emerging corridors

India has a number of well established trading partnerships across the devel-oped world, with the US and UK. Howev-er, its most significant partnership is with the UAE, and trade with Saudi Arabia is also building in volume and importance. Routes into Asia-Pacific continue to de-velop, with China appearing as India’s largest source of imports, and third larg-est export market.

An R&D centre gives back more power than it takes; a residential complex and a hospital have cut

power and water consumption by 40-60 per cent. Green buildings are gaining momentum and could account for 20 per cent of all construction by 2030.

If you want a taste of the green build-ing movement in India, there are plenty of interesting places to visit in cities. ZedEarth, a residential enclave being developed about 20 km from the heart of Bangalore, is as good a place as any if your interest is in green homes. This 20-acre enclave is being developed for around 130 villas that do not rely on the external world for basic needs, barring 15 per cent of its power requirements. It does not use deep bore wells but would have sufficient fresh water. No sewage or water or waste is let out of the enclave, except things like old electronic equip-

ment or some recyclable items.

The Indian green building movement is now so deep and vast that it promises to change the course of its construc-tion industry. The country has 1.2 billion square feet of green buildings being built or ready, and pre-certified by Leader-ship in Energy and Environmental Design (LEED), of which IGBC is the representa-tive in India. It has another 105 million square feet of Griha-certified buildings ready or being built. India’s total built-up space is 25 billion square feet, and it is ex-pected to increase to 80 billion by 2030. The share of green buildings in this con-struction boom could be as high as 20 per cent. New cities, such as those com-ing up along the Delhi Mumbai Industrial Corridor (DMIC),

would have a substantially higher green building component. Says Prem Jain, chairman of IGBC: “Since 60 per cent of the buildings that would exist in 2030 are yet to be built, we have a big opportunity to develop environment-friendly cities in the country.” IGBC estimates that green building products provide a $100-billion opportunity by 2015.

The country’s green buildings span a large variety. They include corporate campuses, residential complexes, R&D units, com-mercial complexes, universities, hospitals, factories, schools, hotels and so on.

Read the full article under:

http://articles.economictimes.indiatimes.com/2012-06-21/news/32352419_1_green-buildings-green-homes-igbc


In 1987, Mark Mobius told his would-be employers Franklin Templeton that he will head their emerging markets equity

fund provided they open their first office in an emerging market country. The group as-sented to this request and an office in Hong Kong was quickly opened followed by offices in India and other countries in the 1990s. To-day, those investments and focus on emerg-ing markets have paid off handsomely for Templeton.

In an exclusive interview, Mobius displays an upbeat mood regarding the prospects of the eurozone, India and the US economy. He indicates that India could have hit the bot-tom of the downward cycle and predicts that Greece will remain in the eurozone. He feels low productivity - bought on by excessive gov-ernment regulation and high taxation, is the real culprit in India’s inflation picture.

Excerpts:

Q: india’s GDP growth has dropped to 5.3% in the fourth quarter. How worrying is this for investors?

A: It is all about perception and relative growth - many developed economies would be more than happy to have India’s growth rate. Nevertheless, the slowdown in India is a concern, given that this time around, a lot of the reasons are domes-

tic in nature. However, we have probably seen the worst of this downward cycle and things could improve from here.

We have seen increased commitment from the government about changing the perception about policy paralysis in recent times. The Indian government needs to reduce its role in the economy by privatising all of the state-owned en-terprises and by reducing the long list of regulations which hamper growth in the private sector.

Q: what about rBi’s move to keep rates steady?

A: The Reserve Bank’s efforts to contain inflation are commendable and keep-ing rates steady are a part of that effort. Unfortunately, the real culprit in the in-flation picture is not interest rates but low productivity bought on by excessive government regulation, high taxation and restraints imposed on the private sector. A freeing up of the economy would lead to higher productivity and will drive infla-tion down.

Q: Global factors are also hurting growth prospects of emerging mar-kets.

A: In an increasingly inter-linked world,

notwithstanding the relatively strong fun-damentals, emerging markets will get im-pacted by changes in risk appetite. How-ever, the role of EMs has changed a lot in the last few years, especially since the global financial crisis. Be it the IMF, World Bank or G20, there is increased accept-ance that EMs need to be accorded high-er representation. This is also reflected in the market capitalisation - EMs now rep-resent about a third of the world’s stock market capitalisations.

There has been a growing realisation that large emerging economies such as Chi-na and India have been increasing their contribution to global GDP. Given good growth projections in many emerging countries, along with their youthful popu-lations and generally better debt-to-GDP ratios than many developed markets, I firmly believe that global investor expo-sure to EM should continue to increase.

Q: But will there be opportunities in eMs when the whole developed world is undergoing an economic turmoil?

A: The worries and uncertainty in the US, Europe and Japan will likely continue to create some angst in the global mar-ket, which could spill over into emerg-

We remain positive about the long-term prospects of the indian economy and its companies, and are looking to take advantage of the recent volatility. over the long term, the groWth rate of india should offer a good platform for indian companies to deliver stel-lar results.

Interview

eXPeCt Better DAYs AHeADAn Interview with Mark Mobius, Executive Chairman, Templeton Emerging Markets Group

“


ing markets, but as noted earlier, I view uncertainty as opportunity. We may even see some emerging market brands shop-ping for assets in developed markets at bargain prices and growing their global presence.

It is also important to note that while exports from the emerging countries are increasing, the percentage of those ex-ports going to the developed countries, Europe and the US is declining so the de-pendence on exports to the developed world is decreasing.

Q: You believe in the resurrection of europe. what makes you think eu-rope will emerge stronger from the crisis?

A: The mere fact that the European na-tions are talking about fiscal discipline and are negotiating towards a fiscal un-ion is excellent news. We know this will not take months -- but years. Patience has its own rewards in this case. As value investors, we always look at volatile pe-riods and indiscriminate selling as a buy-ing opportunity. Europe is experiencing economic turmoil and we are looking there for potential investment bargains brought on by the crisis.

The recent EU summit has indicated that European leaders are trying their best to put together tangible measures that can address the fundamental problems facing the European Union. This will take time and require patience, but in the end, I believe it will yield some positive results. The problems that led to the debt crisis must be addressed-and they are now get-

ting addressed. Both eastern and western European countries have great potential to cooperate and achieve a better eco-nomic outcome for all.

The West can invest in the East and the East can supply the West with lower-cost goods and opportunities for investment, as well as expanded markets. From my perspective, the euro has been holding up relatively well throughout the crisis; so far, it hasn’t plunged dramatically and has held above its debut price back in 1999. That means someone has confidence in the eurozone’s potential, and I do, too!

Q: what if Greece breaks out of eu-rozone?

A: I believe Europe should emerge stronger, regardless of whether or not Greece chooses to leave the euro (which I think is unlikely). Our belief is that the recent election results have reduced the risk of Greece breaking out to some extent. Over the medium-to-long term, Greece can reform its economy by curb-ing wasteful government expenditure and eliminating barriers to business growth. Even if an exit happens, Greece is likely to continue being part of the single-cur-rency system.

Q: How’s the situation in spain and ireland?

A: Spain and Ireland along with a few of the other peripheral European econo-mies will continue to have problems managing debt. Most of the policymakers face a difficult balancing act between aus-terity and growth. The necessary auster-ity will undoubtedly be painful for some

European countries, but it would force the weaker players in the region to get their acts together.

Q: After many months of positive numbers, the Us is showing signs of fatigue.

A: We are not overtly perturbed about the recent data trends - over the last year or so, we have seen a broadening of the US economic recovery on several levels. Progress includes signs of a housing bot-tom, a modest rise in consumer spend-ing, non-manufacturing sector expansion and, most significantly, continued earn-ings growth and compelling valuations of many US companies. It is important to note that the US leading indicators and, in fact, the OECD leading indicators are not down but up.

Q: How are you approaching india as a money manager?

A: We remain positive about the long-term prospects of the Indian economy and its companies, and are looking to take advantage of the recent volatility. Over the long term, the growth rate of India should offer a good platform for In-dian companies to deliver stellar results.

India has one of the largest populations in the world and, thus, represents a huge consumer market. Moreover, with half of India’s people under the age of 25, India will continue to have both a strong la-bour force and large consumer base - im-portant factors which should support the market’s recovery in the future.

Interview

tHe MoNtHLY eCoNoMiC AND

CoMMerCiAL rePort (eCr)

The Indian Embassy, Vienna, issues, on a monthly basis, the “Economic and Financial Report (ECR)”. Different from this “India Newsletter”, which fo-cuses on India-related information to the Austrian community, the ECR fo-cuses on Austria and India-Austria-related trade and business matters.

The reports are available for download from the Embassy’s Online Busi-ness Centre at http://www.indianembassy.at/?page_id=1215. If you wish to receive the ECR by email as it is issued monthly, please email a request to [email protected]


The Rs 64 trillion (US$ 1.17 trillion) Indian banking industry is gov-erned by the Banking Regulation

Act of India, 1949 and is closely moni-tored by the Reserve Bank of India (RBI). The growth in the sector has been more qualitative than quantitative wherein the market regulators got liberal in policy formulations realising the importance of private and foreign players over the past decade. Hence, liberal policies, Govern-ment support and huge development in other economic segments have made the Indian banking industry more progressive and inclusive with regards to the global banking standards.

Public sector banks account for 70 per cent of the Indian banking assets. But there lies immense opportunity for growth for global players, private bank-ers and investors as there is still a huge unbanked population in India that needs to be tapped.

Moreover, the emergence of online bank-ing has given Indian banking landscape a makeover, wherein mobiles and Internet have proven to be important banking channels. The Government has also been focussing on expanding the reach of au-tomated teller machines (ATMs) to every nook-and-corner of the country. Accord-ing to data from National Payments Cor-poration of India, the number of ATMs in the country had reached 98,025 by the

end of April 2012 of which about 70 per cent of the deployment has been in urban areas. Public sector banks have also de-cided set-up 60, 000 more ATMs across the country over 2012-14.

Key statistics

The RBI has recently released its ‘Quar-terly Statistics on Deposits and Credit of Scheduled Commercial Banks’, De-cember 2011, which states that Nation-alised Banks, as a group, accounted for 52.1 per cent of the aggregate deposits, while State Bank of India (SBI) and its as-sociates accounted for 21.9 per cent. The share of New Private Sector Banks, Old Private Sector Banks, Foreign Banks, and Regional Rural Banks in aggregate depos-its was 13.9 per cent, .8 per cent, 4.5 per cent and 2.9 per cent, respectively.

Nationalised Banks held the highest share of 51.2 per cent in the total gross bank credit followed by SBI and its associates at 22.5 per cent and New Private Sec-tor Banks at 13.8 per cent. Foreign Banks, Old Private Sector Banks and Regional Rural Banks had relatively lower shares in the total bank credit at 5.2 per cent, 4.8 per cent and 2.5 per cent, respectively.

Banks’ credit grew 1.2 per cent in April-June 2012, while deposits expanded by 1.9 per cent, according to another state-ment released by RBI. The RBI projects credit growth at 17 per cent and deposit

growth at 16 per cent in 2012-13.

Banks’ incremental credit-deposit ratio, which shows fresh demand for loans in proportion to deposits, stood at 48 per cent during the first quarter of fiscal 2012-13. Banks’ outstanding credit was US$ 856.27 billion while deposits were Rs 62,291.73 billion (US$ 1, 133.78 bil-lion) as on June 29, 2012.

India’s foreign currency assets (FCAs) grew by US$ 1.17 billion to US$ 256.95 billion for the week ended June 29, 2012 which pushed foreign exchange reserves by US$ 1.36 billion to US$ 289.992 bil-lion. The value of gold reserves increased by US$ 0.17 billion to US$ 25.76 billion during the same week.

recent Developments

With an aim to enhance financial inclu-sion the North-Eastern circle of India, SBI has decided to open 56 ‘ultra small branches’ (USB) across five districts in Assam in July 2012. The bank plans to complete 100 such USBs by July 31, 2012 and eventually convert all SBI customer service points into USBs.

Small Industries Development Bank of India (SIDBI), the Lucknow-based devel-opment bank, has revamped its business model to boost entrepreneurship and provide working capital to micro, small and medium enterprises (MSME). The MSME sector contributes 17 per cent

Industry

BANKiNGIndian Industry Sector Close-Up


to India’s gross domestic product (GDP) and SIDBI has decided to help budding entrepreneurs wanting to venture into MSME zone.

SIDBI will set up credit facilitation cen-tres (CFCs) across India in collaboration with industrial associations. It would use its Rs 5, 000 crore (US$ 909.95 million) venture fund over 2012-16 to accomplish its target.

India’s largest international bank, the Standard Chartered Bank, has launched the country’s first instant online credit card approval mechanism, which will fa-cilitate online application and approval for credit cards within few minutes. The bank would extend this facility to other Consumer Banking products over the next few months, making banking more convenient for its millions of customers.

Mobile Banking

RBI considers mobile banking a key tool to achieve financial inclusion in the most effective manner. India has about 929 million subscribers and hence, offering banking services through mobiles is being considered as a viable option for cover-age of the entire population under the banking system.

The value of mobile banking transactions witnessed a quantum jump in the first five months of 2012, mainly on account of initiatives taken by banks such as SBI and ICICI Bank, wherein mobile service providers like Airtel promoted mobiles as medium for bill payments and fund

transfers.

According to RBI data, banking through mobiles increased five-fold to Rs 1,140.6 crore (US$ 207.61 million) during Janu-ary-May 2012 as against the value of Rs 209 crore (US$ 38.04 million) in January-May 2011.

The volume of transactions also in-creased remarkably in January-May 2012. A total of 15 million mobile transactions took place during the five-month period compared with around 5 million transac-tions in the year-ago period, a clear sign that the payment medium has gained popularity. The transactions were con-ducted through 49 banks in the public and private sector.

Government initiatives

In order to boost retail participation in sovereign debt, RBI had allowed direct access to bond holders in the Annual Monetary and Credit Policy for 2012-13. To further enhance the participation, it has launched the web-based platform at www.ndsind.com which is being sup-ported and run by the Clearing Cor-poration of India Limited (CCIL). Retail participants can now manage their Gov-ernment bond holdings directly and can also initiate trade in the secondary mar-ket through the web portal.

Currently, banks and financial institutions are the major investors in Government debt.

Furthermore, in order to ensure expan-

sion of ATMs in smaller cities across In-dia, RBI has issued final guidelines allow-ing non-bank entities to set-up, own and operate ATM.

RBI has also made things easier for cus-tomers who change jobs or locations. Previously it was difficult for them to shift their bank account to the new loca-tion as they were asked to open a fresh account or undergo the full know your customer (KYC) process again. RBI has now made it compulsory for banks to al-low easy transfer of accounts from one branch to another by having a central customer ID. It would facilitate portabil-ity of accounts and ensure that all cus-tomer information is centralised.

road Ahead

According to a report by the Boston Consulting Group (BCG) India, prepared in association with a leading industry or-ganisation and Indian Banks Associations (IBA), the Indian banking industry would be the world’s third largest in asset size by 2025 and mobile banking would be-come the second largest banking mode after ATMs. Furthermore, owing to the positive eco-system of the industry and regulatory and Government initiatives, mobile banking is expected to enhance from 0.1 per cent of transactions in a 45 per cent financial inclusion base in 2010 to 34 per cent of the transactions with 80 per cent rural inclusion base by 2020, as per the report.

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking

and financial services company in India by revenue, assets and market capitalisation. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra.

As of March 2012, it had assets of US$360 billion with over 13,577 outlets including 157 overseas branches and agents global-ly. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presi-dency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India.

The Government of India nationalised

the Imperial Bank of India in 1955, with

the Reserve Bank of India taking a 60%

stake, and renamed it the State Bank of

India. In 2008, the government took over

the stake held by the Reserve Bank of In-

dia. SBI has been ranked 285th in the For-

tune Global 500 rankings of the world’s

biggest corporations for the year 2012.

SBI provides a range of banking products

through its vast network of branches in

India and overseas, including products

aimed at non-resident Indians (NRIs).

The State Bank Group, with over 18,324

branches, has the largest banking branch

network in India.

BiG PLAYerLeading Indian Company in the Industry

Industry


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 [email protected] to get more information about possible assistance that we may provide.

Trade Shows

9th INDIA INTERNATIONALTEXTILE MACHINERY EXHIBITION

2 - 7 DECEMBER, 2012, MUMBAI

AUTO ANCILLARY SHOW 2012AUTO CLUSTER EXHIBITION COMPLEX

October 18 - 21, 2012

Hall No 5, Mumbai Exhibition Centre


Though I am a Sri Lankan Tamil, having Indian roots and brought up in a traditional Indian way, my

impressions about India were not that great. This was because I gathered infor-mation from media — local and foreign — about India; watched Indian movies and occasionally met Indians, mostly from Chennai.

Thanks to the 20th ‘Know India Pro-gramme’, organised by the Ministry of Overseas Indian Affairs (MOIA), my vi-sion about India has changed, giving me a feeling of awe and respect for the coun-try of my origin, my roots.

I feel proud to be part of such a won-derful cultural heritage that is ancient yet open to all modern ideas!

Since I am shy and reserved, I was not very enthusiastic when my father sug-gested this idea (to be part of the 20th KIP in New Delhi). I was worried about how I was going to manage with an un-known “gang” from different parts of the world for three weeks, with my limited language skills and little exposure to the modern world.

I even rebelled. But my father pushed me into the pool.

Today, I thank him as, without his support, I would have had missed a golden oppor-tunity to be part of a wonderful group of youngsters—full of life, eager to explore and understand the secrets of India!

Here begins my unforgettable journey to India...

in search of secret india

This is the first time I am flying to Delhi, the capital of India, unaware of what is in store for me for next few weeks. My heart is racing fast and I am feeling a bit uneasy...

As the plane touches down at the Indira Gandhi International Airport, I can’t be-lieve whether I am in India or elsewhere! The airport has an impressive look, truly matching international standards in archi-tecture and other facilities. For me, this is the first glimpse of modern India…

Over the next couple of days, eminent speakers from renowned institutions ad-dress us regarding governance, internal security and preparedness, politics and

environmental issues, cinema and cul-ture, economy, resource conservation and management, emerging investments opportunities, etc. “India has the biggest youth population in the world and, there-fore, can become a superpower if the potential of the youth is harnessed and utilised properly,” says one of the speak-ers. At this point of time I remember Poojya Gurudev Swami Chinmayananda’s famous statement: “Youth are not useless, but used less! Youth are not careless, but cared less.”

How true it is. How lucky is India!

Now begins the Delhi tour. The group is taken to historical places like Jama Mas-jid, Red Fort, Qutub Minar, Aurobindo Ashram, Delhi Museum and institutions like the Centre for Cultural Resource and Training, All India Radio, Doordarshan, the Indian Council for Cultural Relations, the Indian Council of World Affairs… I am glad to be part of a journey where history, culture, heritage, music, dance, contemporary art, literature, craft and all fine things of glorious ‘Bharat’ merge into one another.

In fact, I am amazed to know what Bharat means. “Bha means light and rat stands for one who revels. Bharat means ‘one who revels in light’ (knowledge),” I am told. Can there be a better word to ex-press the identity of our forefathers!

Next come lessons in pottery. Thrilled, I make kutti kutti (small) pots. Hearing the sitar for the first time, I wonder how a simple musical instrument, with the tabla, can take one to the realm of pure joy!

The lecture on Vedanta is simply out-standing. The best experience lies ahead, when the group is taken to the Taj Ma-hal — one of the seven wonders of the world. What beauty, soaked in pure love!

the Goan experience

We are taken to a village in South Goa to get a feel of Goan culture. I am touched by the hospitality of the villagers. The Goan dance experience is amazing. We visit the rural houses that remind me of the line houses in my country. They host us to a sumptuous Goan feast. I am sur-prised to find that in taste and texture, several Goan dishes resemble Sri Lankan ones. And they are cooked in mud pots!

The interaction with Goa Chief Minister, Governor, Assembly Speaker and other government officials is quite informa-tive. They make us aware of the higher education and investment scenario in the country and explain several facets of the Indian society in general, and Goan soci-ety in particular.

Next on my menu is a visit to BITS Pilani. What a huge campus with state-ofthe-art facilities! The visit to Verna Industrial Estate only adds to my sense of admira-tion for India. It is a perfect example of the IT growth in India. I feel that, on the one hand, there has been a tremendous technological advancements while, on the other, India has been able to preserve her culture and identity.

In old Goa, we are taken to an ancient church (Asia’s largest) built by Portu-guese.

Hearing the sermons in Tamil comes as a sweet surprise to my ears. Later, I learn that a group of Christians from Tirunel-veli came on a pilgrimage and a special programme has been organised for them. I join them in prayers.

Later, we visit Manguesh Temple where Lord Siva sports a lovely attire. Here, I have the same divine experience that I had while visiting Jama Masjid in Delhi. This is the uniqueness of India where people respect religions, languages, tradi-tions, customs and culture and, yet, are Indians first. One experience that stands out in this Goan trip is boating on the Mandovi river — pleasant, refreshing and delightful.

Back to Delhi

The day begins with a trip to ISKCON Temple and Akshardham Temple and a joyous ride on Delhi Metro. The group meets the Chief Election Commissioner and the Delhi Governor. The visit to the Rashtrapati Bhavan was fabulous. I sum up my KIP trip with one word: Thanks. I am grateful to the MOIA and the High Commission of India in Sri Lanka who gave me this wonderful opportunity.

Back home, when I discussed my experi-ence with my spiritual guru, he asked me: What did you learn from this trip? I re-plied: I learnt to be humble. I bow down to the Mother India. Jai Hind!

Overseas Indians

BACK to MY rootsTestimonial of a participant on the 20th Know India Programme


iNGreDieNts

• leaves from 2 bundles of manimuni (Asiatic Pennywort)***, ground with 2C of water and strained( discard the remains in the sieve)

• 1 and 1/2 tblsp of mustard oil ( sunflower or vegetable will do too, but mustard will give that lovely flavour)

• 1/2 tsp each of finely chopped ginger and garlic• 1/2 tsp cumin seeds• 1 bay leaf• 1 whole red chili, halved• 4 pieces of rainbow trout ( small fishes like sprats can also

be used), rubbed with a little salt and 1/2 tsp turmeric pow-der

• 3/4 tsp cumin powder• 1/4 tsp turmeric powder• salt to taste

PrePArAtioN• Heat 1 tblsp of oil in a pan and lightly fry the pieces of fish.

Remove from the pan and keep aside.

• To the same pan, add the rest of the oil . When the oil heats,

add the cumin seeds, bay leaf and halved red chillies.

• When the seeds splutter, add the reserved green liquid

along with the ginger, garlic, turmeric and cumin powders.

Bring to a boil.

• Add the pieces of fish into the gravy and simmer over me-

dium heat for about 10 minutes. As the gravy will not be

much, kep spooning it over the fish as it simmers.

• Serve hot as a accompaniment to rice and dal.

Gastronomy

MANiMUNi’r JooLot DiYA MAAsFish in a gravy of Asiatic Pennywort - Indian Cuisine Recipe

Assamese food is mainly based on rice and fish. For dessert, or for those with a sweet tooth, there is

a wide range in “pithas” (cakes).

Rice is the staple diet in Assam and is eaten in various forms throughout the day. The Assamese eat a huge variety of rice-based breakfast cereals with milk, yoghurt or thick cream akhoi (puffed

rice), chira (chura), muri, komal chaul (a specially processed rice which doesn’t require cooking but just an hour’s soak in cold water) and hurum to name but a few. Normally jaggery or sugar is added but for those who prefer savoury items, salt can be added. Also there are the vari-ous kinds of pitha that are prepared from rice powder.

Authentic Assamese cuisine is bland and yet very delicious. Very little oil is used and practically no spices. All Assamese people are non-vegetarian. Chicken is ta-boo in orthodox families and there are some, who may not eat meat. But it’s diffi-cult to find anyone who does not eat fish and duck’s eggs. Mustard oil is used for cooking and occasionally clarified butter or ghee.

AssAMese CUisiNe


Mizoram, formerly known as the Lushai Hills is situated in the Norrth Eastern Corner of India.

It is flanked by Bangladesh and Tripura in the West and Burma in the East. Aizwal is the capital of Mizoram. Mizoram lies in the southernmost outpost of North Eastern India, the land of the Blue Moun-tains.

Manipur, Assam and Tripura bind the northern end of this little island of tran-quility.Evergreen ranges of Mizoram hills with blooms of exotic flora and dense bamboo jungles rise sharply from the plains of Assam in a north south direc-tion. These hills and plunging gorges are criss-crossed by gushing rivers and spar-kling waterfalls. Highest among its several peaks is the Phawngpui The Blue Moun-tain.

It is said that the Mizos migrated from their homeland in China about 3 cen-turies ago, in search of new pastures and settled in these remote Mizo Hills (Lushai Hills).

Mizoram is a kaleidoscopic ‘pleasure trove’ for the discerning visitor with its wide array of festivals and dances, handi-crafts, flora and fauna, breathtaking natu-ral beauty and temperate climate. The Mizos are friendly and very hospitable. English is one of the Commonly spoken languages.

The joyful enthusiasm and gregarious spirit of the local populace has been vastly responsible for establishing some of the most attractive tourism features in this beautiful state. Today, Mizoram is a dazzling mix of this cross-cultural vibran-cy with 87 percent literacy (second high-est in India- a fact in which every Mizo takes genuine pride), gender equality and a vigorous pursuit of its ancient cultural traditions.

For more information

contact:

AizAwl

MizORAN cultuRAl heRitAge

typicAl MizORAN weAviNg pAtteRN

vANtAwNg KhAwhthlA fAll

Tourism

MizorAMIndian State Profile

India Tourism FrankfurtBaseler Str. 48 / D-60329 Frankfurt

Tel: +49 (69) 242949-0Fax: +49 (69) [email protected]


iNDiAN MoVie eVeNiNG: BLACK (based on the life story of Helen Keller)Friday, August 24th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna)

Genre: DramaDirected by: Sanjay Leela BhansaliStarring: Amitabh Bachchan, Rani Mukerji and Shernaz Patel Released: Feberuary 2005Duration: 123 MinutesLanguage: Hindi / Subtitles: EnglishSynopsis: Based in Simla, the McNallys are an Anglo-Indian family consisting of Paul and his wife, Catherine. Both are full of joy when Catherine gives birth to a baby

girl, Michelle, but their joy is short-lived when they are told that Michellle cannot see nor hear. Both attempt to bring up Michelle in their own protective way, as a result Michelle is not exposed to the real world, and becomes increasingly violent and volatile. Things only get worse when Catherine gives birth to Sara, and Paul considers admitting Michelle in an asy-lum. It is here that Debraj Sahai enters their lives. Through his eager involve-ment, Michelle blossoms, grows, gives up her violence, even gets admitted in school with normal children. The years pass by, Michelle does not succeed in getting her graduation, and it is time for Debraj to bid adieu as he is having his own health problems. 12 years later, at the age of 40, Michelle does succeed in graduating in Arts...posed on live TV

Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indi-anembassy.at or via phone at +43 1 505 866633 (Ms. Lily John).

Agenda

the BusiNess ceNtRe is OpeNed tuesdAys ANd thuRdAys 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: [email protected] or 01 505 8666 30

Marketing Assistant: [email protected] or 01 505 8666 31

eMBAssY’s BUsiNess CeNtre

eMBAssY’s LiBrArY

The website of the Embassy of India, Vienna, and its ‘Busi-ness Centre’ section offer a wide variety of business related information, carefully selected and updated to meet India-Austria’s business demands.

In our Business Centre, companies do not only have the op-portunity to find relevant information on India-related trade matters, but they can also interact with the commercial wing of the Embassy by submitting online trade inquiries.

Additionally, the Embassy compiles a monthy economic and commercial report for Austria, which is targeted at Indian business readers and trade corporates. The same can be

downloaded directly from our Website or if you wish to re-ceive it via email, you can register your email by sending a request to [email protected].

Besides its online presence, the Embassy also has a Business Centre Facility, located on the first floor of the Main Chan-cery building on Kärntner Ring 2, 1010 Vienna. The space is ready to welcome businesspeople and parties interested in requesting, exchanging or providing information on India-related business matters. You can either schedule an appoint-ment with a representative of our commercial wing under the contacts given below or simply visit us during our open-ing hours Tuesdays and Thursdays from 11AM to 1PM.

the liBRARy is OpeNed MONdAys ANd wedNesdAys fROM 11AM tO 1pMfor visits outside the opening hours, please contact the information assistant under

information Assistant: [email protected] or 01 505 8666 33

India Newsletter 08.2012

Documents

Transcript of India Newsletter 08.2012