INDIA NEWSLETTER Section
Published by the Embassy of India, Vienna Year 2 | Issue 15 | March 2012
Special Report
Indian Leather Industry New Section
Indian GASTRONOMY India-Austria Newsletter | 1
News
News of interest Snapshot of February Highllights
ECONOMIC GROWTH
1
Prime Minister’s Economic Advisory Council chairman C Rangarajan said the final estimate of economic growth is likely to be a little above 7 percent, as industrial production normally increases in the last quarter. According to the advanced estimates released by the Central Statistical Organisation (CSO), the GDP growth is pegged at 6.9 percent this fiscal, due to a sharp slowdown in manufacturing, agriculture and mining sectors. “My own estimate is that it would be around 7 percent. However, there is still a possibility that when the revised estimate comes, it will be slightly higher. As industrial production increases in the last quarter, growth rate is likely to be 7 percent or more, Rangarajan said. The current estimate is sharply lower than the 9 percent projection for 2011-12 made by the government.
FOREIGN TRADE
2
India’s exports grew at their fastest pace in three months in January, taking cumulative shipments close to the full-year target of $300 billion but the government warned the next fiscal could be difficult due to continued global uncertainty. While exports rose 10.1% to $25.4 billion, imports increased at double the rate to $40.1 billion, leaving a gap of $14.7 billion, government data showed. “Even if we export as much as we did in the last two months of the previous fiscal, we willstill be in the vicinity of $300 billion,” Commerce Secretary Rahul Khullar said.
JOINT VENTURES
3
Italian luxury major Canali has entered into a 51:49 joint venture with Genesis Luxury Fashion, which currently has distribution rights of Canali-branded products in India. The company also plans to invest Rs 7.65 crore in India. The joint venture company will now sell Canali branded products in India exclusively. Canali had sought approval from the Foreign Investment Promotion Board (FIPB), which gave its clearance last month. “India is a market with a remarkable potential still to be exploited. By teaming up with Genesis Luxury we are confident we will be in a better position to strengthen our leadership in Indian luxury menswear market,” said Stefano Canali, general manager and third generation of the Canali family in business.
4
Tata Consultancy Services, India’s largest information technology services provider, announced a joint venture with
2 | India-Austria Newsletter
Mitsubishi Corporation, to increase penetration in Japan, the world’s second largest IT market. With an initial investment of $5 million from TCS, the company will have 60 per cent holding in the JV, to be named Nippon TCS Solution Centre. It will also establish a nearshore delivery centre in Japan and have 1,500 employees. For TCS, the JV is part of a strategy to increase presence in that market. At present revenue from Japan is less than $100 million for the firm. With this JV, it expects revenue to touch $500 million in the next four to five years.
5
Sahara India has set up a construction joint venture with 110-year-old American real estate company Turner Construction Co, a subsidiary of German construction group Hochtief, and the Acropolis Capital Group, a special situation investment and development firm. The JV company, Sahara Turner Construction, will build integrated townships called Sahara City Homes and other Sahara India projects in India worth $25 billion over the next 20 years. Projects worth $2.5 billion will be completed over the next five years."The JV will also undertake third party construction projects," said Subrata Roy, chairman and managing director of Sahara India, which will initially invest $100 million and hold 63% in the JV.
6
Reliance Industries (RIL) and Russian rubber giant Sibur, Eastern Europe’s largest maker of petrochemicals, announced the formation of a joint venture company called Reliance Sibur Elastomers that aims to become the fourth largest supplier of butyl rubber an input for tyres - in the world. The company will produce 100,000 tons of butyl rubber per year at a new plant located in the industrial complex in Jamnagar, Gujarat that also contains the world’s largest greenfield refinery. The JV will be the first manufacturer of butyl rubber in India, and will cater to the demand for synthetic rubber from the Indian automotive industry.
7
US companies are looking at forming joint ventures with their Indian counterparts in the areas of engineering, information technology, data entry and healthcare, according to Ms Susan Au Allen, President and Chief Executive Officer, the US Pan Asian American Chamber of Commerce Education Foundation. Addressing the captains of industry in a programme organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry on the occasion of a US trade delegation visit, she said Indian
small companies could explore the possibility of expanding to the US.
CONSUMER SPENDING
8
Consumer spending in the country is likely to grow nearly four times in a decade to $3.6 trillion by 2020, driven by rising incomes and aspirations, widespread media proliferation and better physical reach across the country, says a study released last month by Boston Consulting Group and industrial body Confederation of Indian Industry ( CII), which says the overall consumer spending in 2010 was $977 billion. The study report is entitled ‘The Tiger Roars - How a billion plus people consume and shop’.
INVESTMENT
9
IBM has launched ‘Centre of Excellence (CoE) for Smarter Commerce' at the India Software Lab, Bangalore, to offer solutions to automate and accelerate the purchasing, marketing, sales and customer service functions to organisations across India, South Asia and Asia Pacific. According to a press statement, the centre will include 25 technical experts selected from the B2B and commerce enterprise marketing management teams from the Lab.
10
German auto major Mercedes Benz plans to invest €50 million by 2014 in its plant in Chakan near Pune and roll out about five compact premium cars in India over the next two years to regain its numero uno position from BMW. The Stuttgart-based company will also introduce 10 new models in India, quickly after their global launches by 2015. "India is an important growth market for us. We see high demand for our A and B Class segments in India. We plan to enlarge our dealer network and ramp up production capacities," said Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars. He, however, refused to divulge the exact investments in India. The company has so far invested €100 million in India .
11
Steinbach & Partner, the Germanybased global executive search and HR consultancy firm, has entered the Indian market and set up a wholly-owned subsidiary, headquartered in Pune. “Pune was a natural choice for us to start India operations, since it is home to over 200 German companies and over 1,500 German professionals that are engaged in the auto and engineering businesses,” Mr Sebastian Steinbach, Direc-
News tor and Board Member, Steinbach & Partner, said. “In the next 2-3 years, we will start our centres in Mumbai, New Delhi and Bangalore, and initially focus on sectors like automotive, engineering and life sciences,” said Mr Ramgopal Rao, President and Country Head, Steinbach and Partner Executive Consultants India Private Ltd. He added that the company was targeting revenue of €1 million from its Indian subsidiary in the first three years of operations.
MAJOR DEALS
12
Tata Consultancy Services said it has signed a multi-year, multi-million euro contract with Europcar, a car rental company in Europe.The European company's IT subsidiary Europcar Information Services has selected TCS to manage IT services development for its French operations. TCS did not specify the exact size of the deal. For TCS, this strengthens its presence in France and marks expansion of its travel, transportation and hospitality industry unit, said the statement. This unit has over 4,000 consultants and over 50 customers worldwide.
13
Hero MotoCorp, the world's largest two-wheeler maker, has signed a technology-sharing deal with US motorcycle firm Erik Buell Racing (EBR), a year after ending a 27-year-old pact with Japan's Honda Motors. Munjals-owned Hero MotoCorp will buy technology from EBR without sharing profits or ownership. After its December 2010 breakup with Honda, the Indian company had been scouting for new technology to compete better in the domestic two-wheeler segment where it holds 56% market share. Hero MotoCorp, earlier known as Hero Honda, competes with Bajaj, TVS, Honda and Yamaha in the domestic two-wheeler segment, which is forecast to grow 10%-12% in the next fiscal year.
INFORMATION TECHNOLOGY
14
Infosys and Wipro have been named among the top seven vendors in the world of smart-grid software, a recent research report of GTM Research has said. Smart grids are those that have electrical devices with embedded software that can give out a fund of data in order that the grid may be better managed. Software is a key part of smart grids. GTM Research, a wellknown greentech research company, sought to find out who the Big Fish are in each segment of smart grid software. Under the head ‘Utility systems development and integration, data analytics and cyber security’, GTM has named seven companies. Infosys and Wipro are in the elite company of five other global
giants – IBM, Oracle, Siemens, Accenture and Schneider Electric.
ENERGY
15
The Norwegian Minister for Environment and International Cooperation, Mr. Erik Solheim called on the Union Minister of New and Renewable Energy, Dr. Farooq Abdullah in New Delhi. During the talks Dr. Abdullah said that the Indian Government is taking active interest in setting up the proposed fund in collaboration with DFID, UK and Norway for promoting off-grid solutions in the field of renewable energy. Highlighting the achievements made by India in the area of solar and wind energy Dr. Abdullah said that the renewable energy can substantially reduce consumption of kerosene and diesel. The Indian side expressed interest in collaborating with Norway in the field of off-shore wind energy. Norwegian side while welcoming this invited a team from India to study the floating barrage wind farms in Norway.
16
A project funded by the Research Council of Norway, involving a major Norwegian R&D company, Elkem Labs, Titan Energy Systems Ltd, based in Hyderabad, and Dr B.V. Raju Institute of Technology, an engineering college located in Andhra Pradesh, is seeking to test the feasibility of a cost effective solar grade silicon for use in solar modules. “The use of solar grade silicon, with lower purities compared to polysilicon used in manufacture of silicon chips, wafers etc., will bring down the cost of deploying solar modules by about 25-30 per cent. This has been researched by us in Norway and we are seeking to test this through this association,” said Dr Jan Vedde, Product Development of Elkem Solar AS, Research. The agreement by Elkem with Titan Energy and the institute is part of the protocol for co-operation in clean energy technologies entered between the Governments of India and Norway.
17
Minister of Agriculture, Environment, Sea and Spatial Planning of Portugal, Mrs. Assuncao Cristas met Minister of New & Renewable Energy Dr. Farooq Abdullah in New Delhi. The two sides discussed possibilities of enhancing cooperation between the two countries in the field of renewable energy. Dr. Abdullah underlined the progress made by India in wind and solar energy. He said India would like to cooperate with Portugal in wave and off-shore energy. Dr. Abdullah also suggested that private sectors of both the countries should cooperate in promoting Renewable Energy in the two countries and offered to provide all possible assistance in this direction.
INTERNATIONAL
18
On the occasion of signing of the MoU with US Department of Labour in Washington DC, Shri Mallikarjun Kharge, Union Minister for Labour & Employment said: “The road map laid down in this MoUwill facilitate very close cooperation and interaction between our two countries and bring about improvements in the life of workers and their working conditions.” He also expressed happiness that India and the USA are signing the MoU for cooperation in the areas of Skill Development, Youth Employment, Occupational Safety and Health and Mines Safety and expressed the hope that this MoU will help in increasing know-how in the areas of accreditation systems, self-regulation and auditing through collaboration, exchange and sharing of ideas, etc with USA.
19
Lithunia sought greater inflow of investments from India in the fields of IT, solar energy, machinery and joint research in various other sectors. The country, which is located on the shores of Baltic Sea, is keen on more Indian investments, said Minister Counsellor with Embassy of Republic of Lithunia in India. She said Lithunia would encourage small and medium businesses, adding that Indian investors could also consider joint production for obtaining the ‘Made in EU’ label. Lithunia enjoys trade surplus with India, she said. “We want more Indian exports to take place,” she said. In 2010-11, Indian exports to Lithunia stood at USD 81.78 million, while India’s imports from the country stood at USD 125.45 million. Major items of imports from Lithunia were fertiliser, iron and steel and chemical products among others. India’s export basket was pharmaceuticals, textiles, consumer goods and cosmetics among others.
EDUCATION
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The Richard Ivey School of Business (Ivey) is expanding its footprint in India through its partnerships in areas of case study preparation, research and executive education. They signed a Memorandum of Understanding (MoU) with the Management Development Institute (MDI), Gurgaon, for development of India-focussed business case studies and distribute them globally. Further, Ivey will also be developing an executive development programme for a large Indian telecom player. The partnership with MDI will look at training high-potential faculty and case writers in case writing and case teaching process, developing a case writing and case teaching culture in Indian management schools, and expanding the research networks of the institutions. India-Austria Newsletter | 3
News
INDIA-AUSTRIA BILATERAL trade report January-November Report INDIA’S EXPORT TO AUSTRIA
INDIA’AS IMPORT FROM AUSTRIA
sitc
ITEM
2010
2011
Change
% of Total
2010
2011
Change
% of Total
5
Chemicals
61509490
57874370
-5.9%
11.11%
65142266
58186982
-10.7%
7.86%
51
Org. chemicals
18723718
9214880
-50.8%
1.77%
31937334
26562697
-16.8%
3.59%
54
Med. & pharm. prod.
34188700
39586725
15.8%
7.60%
12567820
10702291
-14.8%
1.45%
6
Manufact. goods
76675036
99093245
29.2%
19.02%
150405970
242891761
61.5%
32.81%
65
Textile yarn, fabrics
36348657
43664017
20.1%
8.38%
3609676
4156499
15.1%
0.56%
66
N-metal. minerals
15484525
19357202
25.0%
3.72%
33148195
37260374
12.4%
5.03%
67
Iron and steel
4650561
7782566
67.3%
1.49%
69474402
143538410
106.6%
19.39%
69
Manuf. of metals
12406200
17799030
43.5%
3.42%
19265014
34347579
78.3%
4.64%
7
Mach.& trans. equip.
118988226
138677118
16.5%
26.62%
285135820
338828518
18.8%
45.77%
71
Power gen machinery
8616666
13902057
61.3%
2.67%
38733308
50030536
29.2%
6.76%
74
Gen.ind. machinery
17497771
22712542
29.8%
4.36%
58672392
71035208
21.1%
9.60%
77
Elec. machinery
35023558
43326915
23.7%
8.32%
51923341
67360922
29.7%
9.10%
78
Road vehicles
46375662
48565648
4.7%
9.32%
9857541
8161947
-17.2%
1.10%
8
Misc. manuf. articles
167422081
194283171
16.0%
37.29%
54596094
70937060
29.9%
9.58%
84
Appar. & cloth. Acces.
100266703
114150004
13.8%
21.91%
156784
160763
2.5%
0.02%
85
Footwear
38500881
51149683
32.9%
9.82%
14841
80249
440.7%
0.01%
87
Sci & control. instrum.
1978274
3076100
55.5%
0.59%
27193431
40498843
48.9%
5.47%
89
Misc. man.articles,
12522276
9024012
-27.9%
1.73%
23391797
26321658
12.5%
3.56%
TOTAL
450288010
520964140
15.7%
577936541
740253299
28.1%
F
or the period January-November 2011, India’s exports to Austria increased by 15.7% to €520.96 million, being the positive trend strongly pushed by a 13.8% increase in exports of Apparels and clothing accessories, 20.1% increase in Textile Yarns/ Fabrics and a 32.9% increase in exports of Footwear, all of which combined account for more than 40% of India’s total exports to Austria. Other export areas that have registered
considerable positive marks are: Electrical Machinery (+23.7%) and General Industrial Machinery (29.8%). A significant decrease has been observed in the exports of Chemicals, most specifically Organic Chemicals, which has halved its last year’s volume. India’s imports have increased by 28.1% to €740.25 million in the period January-November 2011 y-o-y. Trade has been driven
by the increase of imports of Iron and Steel (+106.6%), Manufactures of Metal (+78.3%), Power Generating Machinery (+29.2%), General Industry Machinery (21.1%) and Scientific and Controlling Instruments (+48.9%). Following the decrease of exports of Chemicals, a slight decrease in imports by -10.7% has also been observed for the same category.
INDIA-AUSTRIA BILATERAL NEWS Latest India-Austria-related Headlines KTM launched in India
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ogether with its Indian partner, the Austrian motor-bike producer KTM aims for entering India. With 12 million sold motorbikes in 2011, India is the world´s largest motor-bike market. For 2012, market growth is estimated to reach 15%. KTM´s Indian partner Bajaj already has a market share in India of 20%. The second-largest producer disposes of an optimal distribution system for KTM´s motorbikes, KTM is convinced.
In the past, Bajaj and KTM developed the model “Duke 125”, which was launched in Europe in 2011. Now, KTM´s CEO Stefan Pierer and Bajaj´s CEO Rajiv Bajaj present4 | India-Austria Newsletter
ed the “Duke 200” in New Delhi. As a result, this is KTM´s initial step towards the Indian market. The Austrian supplier expects sales of 20,000 motor-bikes in the first year. “With this first step, 34 flagship-stores will be solely to KTM´s disposal. This year, 6 further stores will be opened. Together with 40 service partners, KTM should become the premium supplier in India´s market.” KTM´s CEO Pierer emphasized. “Duke 200” is the first model being offered world-wide. For KTM, this is a “major step in the implementation of the global product strategy and the expansion toward emerging markets.”
Andritz receives order to equip Indian hydropower plant
U
nder a contract with North Eastern Electric Power Corporation Ltd. (NEEPCO), Andritz Hydro will deliver the equipment for the new Pare hydropower plant in District of Papumpare, Arunachal Pradesh. The scope of supply comprises design, delivery, installation and commissioning of the complete electromechanical equipment, including two vertical Francis turbines (output 55 MW each), generators, main inlet valves, control and protection system, power and control cables and additional equipment. The order is expected to be completed at the end of 2013.
Interview
Q&A: JIM HAGEMANN SNABE, Co-CEO of SAP Business Interview
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AP, the world largest provider of enterprise application, reported that its 2011 numbers were one of the best in 40 years, indicating enterprise spending on technology continues. It says it is confident of achieving its target of $26 billion in revenue by 2015. Jim Hagemann Snabe, co-CEO, talks about the trends. Edited excerpts: Q: What has been the growth driver for the company’s performance? A: We have seen growth across regions. In constant currency, we have grown 25 per cent. While the emerging markets have grown faster, even Europe, which has been under pressure, has grown 21 per cent. It proves our strategy of focusing on innovation was right. We are seeing that even in this uncertainty, customers are willing to invest if innovation is right and especially if it helps them manage better during these times. Q: Your guidance for 2012 also sounds bullish. What trends are you seeing in IT spending? A: We have been market leaders in business suites and analytics. On top of that, we decided on three new technologies — mobile computing, in-memory computing called HANA and cloud. This meant we go beyond the efficiency question. We are seeing ourselves emerge as the preferred choice to help a company innovate, whether it’s about analysing market trends or customer behaviour better. If you see our 2011 numbers because of the investment in these new technologies, our core business is becoming more and more important. Our plan for 2012 is to compete for leadership in five segments — our core market offering in application and analytics, mobile initiatives, that grew the fastest in 2011, and leadership in database and the cloud. The combination of these five is unique in the industry and this is driving growth for us.
earlier had little presence in the cloud, but with SuccessFactors, we are now number two.
solutions in markets like India and China
Q: How has the Indian market grown for SAP?
volume of data generated here is significant.
A: India is one of the fastest growing markets globally. In Q4, we saw triple digit growth in India. In terms of technology adoption, we have seen uptake in solutions for mobility and in-memory computing and our flagship product, HANA. For us, the Asia-Pacific and Japan grew 30 per cent and India grew more than 100 per cent. Q: What trends do you see in enterprise technology adoption in India? A: In the past, when we came up with new innovation, it was first adopted by the West, and then we would bring it to the emerging markets. What is happening now is the reverse. The way mobility is being adopted in India, it seems you have jumped a generation of tech adoption. Mobile is becoming the preferred way to reach a billion people at low cost. We see the adoption of mobile
“
grow faster compared to other geographies. Even in case of in-memory computing, the The only way to understand this data is to move it into main memory. In the past two years, we have been ahead of competition. Q: How important are the emerging markets going to be for SAP’s 2015 roadmap? A: Traditionally, we have seen very strong traction in the emerging markets. We doubled our investment in these markets long ago. We have over the last five years invested heavily in India (SAP has 6,000 employees here). In September last year, we also announced an ambitious plan to invest $2 billion in China by 2015. We see the results of these investments — China is growing more than 60 per cent annually and India by more than 100 per cent.
In India, it seems you have jumped a generation of tech adoption”
Q: How has the company’s bet on new innovation done? Extremely well. We have seen extreme traction in mobile solutions. We had a target of reaching euro 100 million by the end of 2011; we have overshot that. We can more than double that target in 2012. HANA, our inmemory solution, is the fastest growing product in our history. In Q4 alone, we did euro 100 million. In the cloud segment, we are entering with our acquisition of SuccessFactors; there, the growth rate will be enormous. We India-Austria Newsletter | 5
Articles
India tops us in using smartphone to go online Mobile Survey
I
ndia still has a long way to go increasing its smartphone penetration but those who are already connected seem to be using it heavily. A recent mobile survey conducted by IPSOS and Google reveals that Indian smartphone users are accessing the Internet more than their counterparts in the US. According to the survey, 56 per cent of smartphone users in the country access the Internet multiple times a day, nearly 40 per cent surf the Net at least once a day and only 6 per cent never use their phone for connecting to the Web. In comparison, 11 per cent of smartphone users in the US never use their device to access the Net and 53 per cent use it to surf multiple times a day. Emails, Social Networking Indians also score higher when it comes to
accessing emails and social networking sites on their smart phones. According to survey, about 76 per cent of smartphone users in India access social networking sites on their devices compared to 54 per cent in the US. “The survey reiterates our belief in ‘mobile first’. Culturally, even beyond the well-educated, mainstream Indians are technology curious and device savvy. We believe that the Internet-like telephony did, is making the leap from wired Internet to mobile, and hundreds of millions of Indians will go online on their mobile devices,” said Mr Lalitesh Katragadda, Country Head, India Product, Google India, told Business Line. “At Google, we are building a powerful, simple, personable mobile ecosystem that helps every user be connected as they want and when they want to,” he added.
The survey reveals the usage of smartphone between the age group of 18- 29 is the highest in the country. While 36 per cent of all smartphone owners in India are in this age group, only 17 per cent are in the 30 to 49 age group. Music tops the chart In terms of usage, 77 per cent of smartphone owners listen to music, while 33 per cent use it for playing games and 32 per cent read newspapers or magazine. According to Canalys, Indian smartphone market stood at 3 million units in the third quarter of 2011 up from 1.7 million units in the same period in 2010. The Google survey points out that 66 per cent of existing smart phone users believe they would access the Internet more through their handhelds in the future.
LESSONS FROM EUROPE’S LARGEST PORT Mobile Survey
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is connected with the hinterland by road, rail and barges and is trying to reduce the movement of cargo by road and replace it by rail to cut transport costs.
Mr Hoornaert informed that the port of Antwerp is the fastest route to Europe as 60% of Europe’s purchasing power can be reached in a day. He informed that the port has a steel terminal with large warehousing where exporters cut and shape their products to suit their buyer’s requirement. Antwerp port
Mr Sahai observed that several shipping lines including Shipping Corporation of India operate regular service to Antwerp from Mumbai, Chennai and other Indian ports and several Indian companies have been routing their goods through Antwerp. He noted that all terminals at Antwerp are run by private companies unlike India, which indeed has a greater role in port efficiency. He mentioned that, FIEO would welcome a proposal from the Port of Antwerp, highlight-
r Chris Hoornaert, Port Ambassador, Port of Antwerp (Belgium), called on FIEO (Federation of Indian Export Organisations) and held discussions with Mr Ajay Sahai, DG & CEO. Mr Raj Khalid, India Representative, Port of Antwerp, and Mr Vinod Pal, Director, FIEO, was also present.
ing the benefits for various sectors, besides chemical and petrochemicals, which could be disseminated to Indian companies who could use the port facilities for making the supply chain more effective.
DELHI AND HYDERABAD AIRPORTS GET TOP GLOBAL RANKING International Airport Ranking
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he airports of Delhi and Hyderabad have been ranked among the top airports of the world in the airport services quality (ASQ) by the global body, Airports Council International (ACI).
came fourth in a group of 19 airports in the 25-40 mppa category.
While Hyderabad’s Rajiv Gandhi Airport retained the number one position for the second year in a row among 49 airports handling 5-15 million passengers per annum (mppa), Indira Gandhi International Airport
While the Indian airports ranked among the top in different categories, the ACI declared Incheon in Seoul, Changi in Singapore, airports in Hong Kong, Beijing and Shanghai Pudong as the overall top ‘best airports
6 | India-Austria Newsletter
Mumbai’s CST International Airport, run by GVK-led consortium, ranked in the 15-25 mppa category, the ACI said.
worldwide’. The rankings were done on the basis of a global ASQ survey by the ACI of 153 airports, including 6 Indian ones.
Articles
INDIA’S HUMAN RESOURCE DIVIDEND By K.A. Badarinath, Financial Chronicle, New Delhi
C
ome what may, India has distinct advantage on demographics and the dividends are bound to come over next forty years. And, this distinct advantage and dividends would continue to be powered by the ideas, skilled human resource and its young population raring to go. Much has been written and talked about this advantage. As a US-based Boston Consulting Group study put it: this advantage has presented an opportunity for India worth $ 200 billion in annual revenues, 40 million new jobs by 2020 and turn the country into an enviable power house of human resource to the world. As per projections of Census of India, the official agency tracking population, the country will house an overwhelming 486.86 million young men and women by 2030. This by far, will be the largest chunk of world’s population if trained can power the global economic power engine spread across sectors like manufacturing, services, agriculture and trade. India’s distinct advantage becomes all the more amplified given the shortages of human resource likely to be faced by nations across the globe: be it USA, Europe, China, Japan etc. Ed Potter, formerly President of the US Employment Foundation in the American Workforce report way back in 2001 predicted that USA would face workforce shortage of 36 million by 2031. Similarly, German Institute of Economic Research has estimated ten years back that the country may have to either import or outsource work for 1.2 million people to counter its ageing workforce. It is not just US and Germany, Japan would need 600,000 immigrants a year to make up for workforce shortages that it is bound to face as per a report in UK-based newspaper, The Guardian. Same is the case with United Kingdom that may have to import trained young workforce to fill in the gaps in its industry, services and government. Another large country that would face human resource shortages is China. As per a projection made by US Census Bureau, China will have 10 percent shortage in working population in age group of 15 - 59 years by 2030. The shortages may accentuate owing to ‘one child policy’ that the country has consciously adopted to keep the population explosion under check.
Now, there are arguments for and against the ‘demographic advantages’ and possible ‘demographic dividends’ that Indian can reap. And, the jury is out as to what would be its implications for Indian economy and its people. In this context, quoting Prime Minister Manmohan Singh on India’s demographic advantage is pertinent. Time and again Prime Minister Singh has identified that significant investments and infrastructure that will have to be made in education and skills development for millions of youth. Nobel Laureate Amatya Sen has rightly pointed out that unless the Indian population is prepared for positively exploiting the demographic window available, the large unemployed population could become a ‘drag on the nation’. As per a BCG study, there are 37 million unemployed youth in India, a substantial chunk that is educated. While the education and health infrastructure continues to be expanded, Indian skilled youth have begun servicing the global industry especially in education, healthcare, financial services, tourism, hospitality and several other services industries. So much so, that the information technology based industry in India has evolved into $ 50 billion venture. Undoubtedly, today India is already with a large workforce that works for the global industry albeit remote. The new wave of economic liberalization and linkages with world economy provides an ample opportunity for the trained workforce in India itself as demand for goods and services increase; merchandise exports grow rapidly and also farm sector expansion with attendant development of food and dairy sector.
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Aggressive acquisitions that are being made by Indian large corporates internationally and integrating them with manufacturing facilities back home have added a new dimension to the demographic issue. For instance, the Tatas acquiring the iconic Jaguar and Land Rover have led to integration of workforce from the two continents, Asia and Europe. Hence, priority may be given to meeting the skilled workforce shortages back home in several sectors like information technology, textiles, handicrafts, garments and engineering goods before considering shortages elsewhere. Even the global shortages would most effectively would be serviced ‘remote’ with evolution of cutting edge technologies like 4G telecom services and cloud computing apart from advancement in internet protocol based TV. Even if India were to meet some of the human resource shortages globally, it may not lead to large-scale movement of its people but over 80 percent services would be managed remotely. However, there are services like healthcare where professionals are required to be present in ‘person’. Engineers, doctors and teachers may have to be on the spot to provide these services though tele-medicine, online medical services and e-education are in the vogue. Alternatively, the manufacturing capabilities will have to be exported by India to meet the shortages for goods and services in both Western Europe, US, Russia, Japan etc. “As Prime Minister Singh said, rapidly imparting skills and retooling our young workforce through large investments in related infrastructure and training continues to be a big
Battles of this century will be fought and won on power of ideas, skilled human resource and young population” India-Austria Newsletter | 7
Articles challenge” said Roopen Roy, managing director of Deloitte and Touhe Consulting, an independent consultancy. Overhauling education system that is already on reform path seems to be the way that India can reap dividends from the demographic advantages that it has over next 30 years. For instance, the government’s
decision to set up 100 technical training institutes in collaboration with the industry through public private partnership is a pointer. Similarly, setting up super-specialty healthcare and related education institutes would lead to producing world class surgeons and specialists. Investing billions of dollars in universal education would also aid this campaign for tapping this ‘window’ of demo-
graphic advantage. Indian National Knowledge Commission headed by Sam Pitroda had said, “Our youth can be an asset only if we invest in their capabilities. A knowledge-driven generation will be an asset. Denied this investment, it will become a social and economic liability.” And, this seems to be very apt.
NOW, OUTSOURCE RESEARCH WORK TO SCIENTISTS OF TOP UNIVERSITIES Education/Research Case Study A company that employs a number of researchers to work on a complex problem can instead outsource it to scientists and researchers from top Indian academic institutions to find a solution. That’s what Xerox India Research, the youngest global research lab of the $22-billion leading company, is doing. Through a concept called Open Innovation, Xerox India Research has brought together top-notch scientists, along with the company’s researchers and engineers, to work on complex projects that Xerox wants to implement. And the partnership is not restricted to the India centre, but researchers from global Xerox Research labs have access to the “best of the Indian brains” in this global hub, Ms Meera Sampath, Director of Xerox Research Centre India, recently toldBusiness Line. Open Innovation is today the core of Xerox India research. The centre has eight partner-
ships with top academic institutions, including IIT-Madras, IIT-Bombay, IIT-Kharagpur, Indian Institute of Science, IIT-Mandi and Srishti Labs. Research partnerships cover a broad range of topics such as cloud computing, services marketplace design, multi-lingual technology development, personalised information delivery, video-based patient monitoring and rural technology initiatives, she said. Even before Xerox started its research centre in India in 2010, the company decided that this lab would be built on a model of ‘open innovation’ and started working with local universities. Xerox has such a model in the US and Europe but in India this will be the fundamental to how “we operate,” she said. Ms Sampath said the India centre acts as a traditional research lab with its own researchers collaborating with colleagues in other global labs. In addition, the lab is a central hub to connect people from the Eu-
rope, US, with institutes like IIT-Madras, IITKharaghpur and the School of Design. “One of the goals internally is that every researcher hired in India will not only work on their core research work, but also with one or two open innovation projects. For us, it is not the size of the people we have inside the lab, but it is the strength and size of this whole ecosystem that we are building. Every university gives an opportunity for us to work with one or two professors and three or four students,” she said. It is not just more people working for you, but also tapping in to a skill that “we may not develop as a core competency in-house.” Within the company we have researchers working on cloud computing but for things like user design it makes sense to tap experts outside and leverage their expertise. For the students too, this helps as they are working on projects that are inspired by the business needs,” she said.
EUROPEAN UNION HOPEFUL OF HIGHER FDI IN INDIA EU-India Highlight The European Union, India’s leading partner in terms of trade and investment, is hopeful of higher foreign direct investment in India in the coming years. “Europe is India’s largest source of foreign direct investment with a stock of 34.4 billion euros and India’s investments in Europe is also fast reaching 7 billion euros. There is scope to grow much more. “European FDI in India for instance is half the amount of that in China, or a quarter of that in Russia, or a fifth of that in Brazil,” European Commission President Jose Manuel Durao Barroso said at a conference ‘EU-India: A strategic relationship in an evolving world’ organised by FICCI. EU investment in India is bigger that of the US
8 | India-Austria Newsletter
and Japan combined, Barroso said. The European Union is India’s first partner in terms of trade and investment - in 2010 the European Union imported over 40 billion Euros worth of goods and services from India. Overall bilateral trade amounted to 87.3 bn Euros. The first ten months of 2011 showed continued growth in EU trade with India. Exports and imports both grew by 20 per cent between the first ten months of 2010 and the same period of 2011, with exports amounting to 33.4 bn and imports to 33.3 bn. Europe is also one of India’s major partners in the field of economic and development cooperation, particularly in the areas of education and social actions, Barroso said.
“The recent evolution of the trade figures between us is impressive, but there is potential to have much larger flow of goods and investment. In times of global uncertainty, creating such economic anchors is of paramount importance,” he said. We need to remain committed to unlocking all the potential of the relationship. This would also be entirely consistent with the Indian government’s agenda of reform and opening up the economy. We need to move ahead with our trade negotiations in order to achieve a balanced and ambitious trade agreement, encompassing tariffs, services and procurement, Barroso said.
Industry
LEATHER AND LEATHER PRODUCTS Indian Industry Sector Close-Up
T
he impressive growth of the Indian leather sector over the past four decades makes for fascinating reading during which the industry has grown from a mere cottage industry to a thrust Industry earning valuable foreign exchange for the country and from a mere exporter of raw hides & skins and leathers, to a reliable supplier of high quality leather products and footwear. The major transformation of the industry happened during the 1980s and 1990s when many manufacturing units of value added products came-up. The economic liberalization programme implemented in 1991, the de-reservation process of the leather industry which was initiated in phases from 2001, allowing 100% FDI through automatic route, the enactment of Micro, Small and Medium Enterprises Development Act in 2006 and the major policy initiatives announced in the Foreign Trade Policy and Indian Leather Development Programme (ILDP), have all played a crucial role in the development of the industry. The Indian Leather Industry has now become a right destination for not only sourcing but also for Joint Ventures/Technical Collaborations due to the pro-active efforts of the Government of India. In the last four decades, the export of leather and leather products from India has increased from US $ 114.17 million in 1970-71 to an all time high value US $ 3844.86 million in 2010-11. Value added leather products and footwear now constitute about 80% of exports from the Indian Leather Sector. In the last 8 eight year period too, the exports have shown consistent growth except in the year 2009-10 where the exports declined due to the adverse impact of global economic slowdown. Major Markets European Union with a share of 65.48% is a major market for the Indian Leather Sector. Country-wise, the major markets are Germany with a share of 14.34%, UK 12.80%, Italy 11.52%, USA 8.72%, Hong Kong 8.11%, France 7.07%, Spain 6.31%, Netherlands 3.98%, Belgium 2.02%, U.A.E.1.92%, Australia 1.30%. These 11 countries together accounts for nearly 78.09% of India’s total leather products export. India’s Export of Leather & Leather Products to the European Union has increased from US $ 1719.76 million in
2005-06 to US$ 2517.51 million in 2010-11. Similarly, India’s export to USA has increased from US $ 318.36 million in 2005-06 to US $ 335.10 million in 2010-11 Share of different product segments in export
domestic retail market in India for footwear and hence 1950 million pairs produced by India constituting 95% production, are sold in domestic market. On the export front, footwear accounts for 45.05% share in Indian Leather sector’s total exports, with men’s footwear being the major item of export. Nevertheless, export of Ladies and Children footwear from India have witnessed significant growth in the recent years. 6. Indian Leather Garments industry is the second largest producer with an annual production capacity of 16 million pieces and is also the third largest global exporter.
Leather Footwear 37,98% Finished Leather 21,09% Leather Goods 21,19% Leather Garments 10,43% Footwear Components 5,59% Sadlery and Harness 2,24% Non-Leather Footwear 1,47%
Major highlights The Indian Leather Industry has many strengths and achievements to its credit. The major ones are : 1. The Indian Leather Industry is among the top ten foreign exchange earners for the country and hence holds a prominent place in the Indian economy. 2. The leather industry is an employment intensive sector, providing job to about 2.5 million people, mostly from the weaker sections of the society. Women employment is predominant in with about 30% share. 3. With India endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population, its leather industry is bestowed with an affluence of raw materials. 4. India has a very strong tanning base. Traditional knowhow combined with application of modern tanning techniques have made the Indian tanning industry earn an important place in the global leather market. The Indian Tanning Industry, which produces 2 billion sq.ft. of leather annually, meets about 10% of the global requirement of leather. 5. India is the second largest footwear producer after China, having an annual Production of 2065 million pairs. There is a huge
7. India is the fifth largest global exporter of Leather Goods & Accessories including Saddlery & Harness with an annual production capacity of 63 million pieces of leather articles, 52 million pairs of Industrial gloves & 12.50 million pieces of Harness & Saddlery items. These items accounts for 23.44% share of India’s total export. 8. Renowned institutions like Central Leather Research Institute (CLRI), Footwear Design and Development Institute (FDDI), National Institute of Fashion Technology (NIFT), Central Footwear Training Institute (CFTI) provide the required technical support & consultancy services to the industry in areas of Environment Management, Product Design And Development, Human Resources Development etc,. Opportunity in Indian Leather Sector The decreasing production base in Europe and price competitiveness of Indian Leather Industry has made the buying community to increasingly look at India as an alternate sourcing option. Besides, several European manufacturers are looking for technical collaborations and joint ventures in India, in view of the significant export prospects and the growing domestic market in the India. Worldwide, the demand for leather and leather products is on the increase with global imports increasing from USD 77 billion in 2000 to USD 115 billion in 2009. Growing at a rate of 6% p.a., the global trade is projected to rise to USD 245 billion in 2020. Hence India has vast scope to achieve a greater share in global leather trade in next 5 years. Thus Indian leather industry’s export would more than double in the coming five years with tremendous opportunities for additional employment generation in Indian leather India-Austria Newsletter | 9
Industry sector as well as allied industries. Besides, the domestic market is also expected to double in the next 5 years. All these present immense opportunity not only for the domestic players but for overseas manufacturers as well for overall growth and development. Product and Market Diversification The objective of the Indian leather industry is to go-in for product and market diversification strategies so as to further increase its share in the global market. As part of this, there is a need to increase export of ladies and children footwear and also non-leather footwear in the footwear segment and go in for design and fashion oriented innovative products in the other segments. Similarly, even while consolidating and expanding presence in the traditional markets of Europe and USA, the Indian leather industry is looking to penetrate potential markets like Japan, Russia, Canada, Australia, New Zealand, Brazil etc,. Besides the above, countries like Bangladesh & Sri Lanka offers vast market opportunities for Indian Footwear Components & Accessories sector in view of the increasing production base for footwear & leather goods in these Asian Countries. Emphasis on bilateral and multilateral co-operation While the WTO regime which favours open, equitable, predictable, non-discriminatory
and rule-based multilateral trading regime has opened-up new markets for the Indian Leather Industry, the initiatives of Government of India in promoting bi-lateral and multi-lateral trade through trade agreements have also benefitted the industry. So far, we have so concluded a number of Free Trade Agreements and Preferential Trade Agreements. These agreements will provide greater market access to Indian exporters in regions like ASEAN, Japan, Korea etc., besides SAARC countries. Further, negotiations are going-on for trade agreement with European Union. Opportunity for Investments 100% Foreign Direct Investment (FDI) is permitted in the leather industry through automatic route. The industry friendly Government policy and also the increasing domestic market in India for leather, leather products and footwear provides immense opportunity to the overseas entrepreneurs and manufacturers to establish their own production units in India or enter into Joint Ventures and Technical Collaborations. Future Outlook The Government of India had identified the Leather Sector as a Focus Sector in its Foreign Trade Policy 2004-09 and 2009-14 in view of its immense potential for export growth prospects and employment generation. Accordingly, the Government is also implementing various Special Focus Initia-
tives under the Foreign Trade Policy for the growth of leather sector. With the implementation of various industrial developmental programmes as well as export promotional activities; and keeping in view the past performance, and industry’s inherent strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and dedicated support of the allied industries, the Indian leather industry aims to more than double its export performance in the next 5 years and resultantly create additional employment opportunities for overall one million people. CLE’s Proactive role in development of leather industry The Council for Leather Exports, an autonomous organization under the Ministry of Commerce and Industry has been playing a pro-active role in the overall growth and development of the Indian leather industry. Besides its core areas of functioning namely market development and export promotion, market research and policy & procedures, the Council has also diversified into areas like infrastructure development and skill development too. On account of the proactive role, the Council’s membership strength has been showing a positive growth since the past 4 years with the number of members increasing from 2188 in 2008-09 to 2675 as on January 19, 2012.
If you are interested in tie-ups with Indian Manufacturers / Exporters of Leather & Leather Products or simply want to sell your Brands or engaging franchisees in India, this is the entry portal for your business:
www. leatherindia.org Tel: +91- 44- 28594367 | Fax: +91- 44- 28594363/64 | Mr. D. Saalai Maraan
Big Player: Bata India Leading Indian Company in the Leather Segment
B
ata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization. Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, 10 | India-Austria Newsletter
the foundation stone for the first building of Bata’s operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification.
can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns The Company operates a large non retail distribution network through its urban wholesale division and caters to millions of customers through over 30,000 dealers.
The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India has established itself as India’s largest footwear retailer. Its retail network of over 1200 stores gives it a reach / coverage that no other footwear company
Bata - Today Sells over 45 million pairs of footwear yearly Serves over 120,000 customers every day Sells through over 1200 retail stores Operates 5 manufacturing facilities Employs more than 6800 people
Trade Shows/Exhibitions
The Global Investor’s Meet, a bienKarnataka, one of the top-five indusnial investment summit organized by trialized States of the country with 5 per cent of India’s population contrib- the Government of Karnataka in Banutes to over 6 per cent of the nation’s galore is an initiative in this direction. GIM 2010 was a grand success and economy. Some of its distinguishing received an outstanding response strengths are in the areas of ITI ITeS, -investment commitments worth Rs. Biotechnology, Pharmaceuticals, R&D, Engineering, Aerospace, Mines approx. 60 billion EUR were received & Minerals, Automotive, Energy and from global and national industries Textiles. and the event saw participation of over 7000 delegates, 2000 compaWith opportunities in virtually every nies and 21 countries. facet of today’s economy, the State is a veritable treasure trove for investors. Now, the Government of Karnataka Government of Karnataka is commit(GoK) is organizing GIM 2012 on ted to playing the role of a catalyst 7th & 8th June 2012 at Bangalore and facilitator to maintain the State’s International Exhibition Centre (BIEC), recognition as India’s preferred investBangalore. ment destination.
For more information visit advantagekarnataka.com India-Austria Newsletter | 11
Trade Shows/Exhibitions
In case your company is interested in visiting a tradeshow/B2B event in India, be it one listed here or another one that came to your attention, get in contact with us via marketingofficer@indianembassy.at to get more information about possible assistance that we may provide.
12 | India-Austria Newsletter
Overseas Indians
INITIATIVES FOR OVERSEAS INDIANS An Overview is skill development initiative for potential migrants from the North-East States of India. The project will be implemented by the IOM under the existing agreement with the Government in Assam, Arunachal Pradesh,Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura.
T
he Overseas Indian Citizenship (OCI) Scheme was formerly launched in January, 2006 by amending the Citizenship Act, 1955 to facilitate life long visa free travel to India and certain economic education educational and cultural benefits to Persons of Indian Origin (PIOs). As on on 30th June, 2011, a total number of 8,61,726 PIOs have been registered as OCIs. Voting Rights To NRIs The Representation of Peoples Amendment Act 2010 has been passed which gives voting rights to overseas Indian passport holders. Notification dated 3rd February 2011 has been issued allowing overseas electors for their names to be included in the roll pertaining to their locality in which his place of residence in India as mentioned in his passport is located. Overseas electors are required to apply in the requisite form alongwith copies of all the documents mentioned in the said form to the concerned registration officer directly or send the application to him by post. The Rules allow self-attestation of documents by the applicants. Overseas Workers Resource Centre
To educate the intending emigrants about the risks involved in irregular migration and the precautions to be taken while seeking overseas employment and to provide need based information to overseas emigrants an Overseas Workers Resource Centre (OWRC) – a toll free 24×7 helpline has been set up. The helpline provides information within India at 100 11 1900. It is also accessible for information seekers from UAE at 8000911913. The helpline can also be reached from anywhere in the world at 91-11-40503090.. Indian Council Of Overseas Employment Indian Council of Overseas Employment is initiating a number of projects in collaboration with IOM. One such mega project
opment effort in India. Prime Minister’s Global Advisory Council Of Overseas Indians The Ministry has constituted the Prime Minister’s Global Advisory Council of People of
Indian Community Welfare Fund Indian Community Welfare Fund which was originally for all ICE countries has been extended to 48 countries. Since this scheme is found to be very useful by the Indian Missions in mitigating the suffering of Overseas Indian community, particularly workers and women, it has been decided to extend this fund to all the Missions around the world.
Indian Origin to draw upon the experience
Overseas Indian Facilitation Centre
the Council attended the meeting and made
The OIFC, an institution established by the Ministry of Overseas Indian Affairs has compiled ‘Homeward Bound – a regulatory & investment handbook for Overseas Indians’, which was released by the Prime Minister of India, during the 9th Pravasi Bharatiya Divas, held from 7th to 9th January, 2011 in New Delhi. This document would further facilitate Overseas Indian’s economic engagements with India.
a wide range of suggestions in the area of
The Centre, in its endeavour to strengthen the Diaspora’s economic inter linkages with India, continues to seek to encourage the Overseas Indians to make use of its platform to connect with India. Indian Development Foundation Of Overseas Indians Indian Development Foundation of Overseas Indians is a not-for-profit trust registered to provide a credible window for Overseas Indian Philanthropy in India’s social development. The foundation is managed by an eminent Board of Trustees. The mandate of the foundation is to lead Overseas Indians philanthropic capital into Indian’s social sector by forging partnerships between donors and credible non-Government and nonprofit voluntary organisations working in the social sector in India.
and knowledge of eminent people of Indian origin in diverse fields from across the world. The meeting of PM’s Global Advisory Council of Overseas Indians was held on 7th January, 2011 at New Delhi. 14 eminent Overseas Indians, who are the member of
education, health and development issues underlining the role of Overseas Indians. E-Migrate Project The Ministry has proposed implementing a comprehensive e-governance project on migration to make the migration process simple, transparent and humane. The ultimate benefit of the project would be greater convenience, effective protection and better welfare of the emigrant. The subsidiary benefits would include greater levels of efficiency, transparency and accountability in the functioning of the offices of the Protector General of Emigrants (PGE) and the Protectors of Emigrants (POE), real-time updation and quick access to reliable emigrant data, management information system to support decision making, computerized management of recruiting agent system, performance rating of protectors of emigrants, recruiting agents and employers, effective monitoring of emigration offences, interlink-
Global Indian Network Of Knowledge
ing of stakeholders and online validation of
The enlargement of the Global Indian Network of Knowledge called Global-INK. This electronic platform will enable us to draw upon the reservoir of knowledge, expertise and skills that the Overseas Indian community possesses to catalyze the social devel-
is expected to mitigate individual discretion,
information across stakeholders. The project harassment of emigrants and corruption. It would also provide useful tools and data for policy functions, periodical publications and grievance redressal. India-Austria Newsletter | 13
Overseas Indians
BE INNOVATIVE India’s Diaspora can play a big role in advancing the Right to Education Speaking about the Indian education system, Lady Shruti Rana, Global Organisation of People of Indian Origin, UK, said: “There’s no science without art and no art without science. As a practising musician, I understand how the enunciation of every raga is so mathematically precise and defined. Weneed to bridge this gap in our system.”
Delegates at the PBD session titled ‘Right to Education: Responsibility of Diaspora’ in New Delhi on January 7, 2011.
I
ndia’s Diaspora can provide support, guidance and leadership from wherever they are if they are willing to adopt innovative systems and institutions in India’s rural areas, according to Dilip Chenoy, Chief Executive Officer, National Skills Development Corporation.
second year, follow it up with another. They can also route scholarship vouchers through NGOs. Schools will then compete to get those vouchers. The Diaspora can, like NIIT, Educomp and others, help build innovative systems and institutions in India’s rural areas,” Chenoy said.
Speaking at a seminar on ‘Right to Education: Responsibility of Diaspora’ during the 9th Pravasi Bharatiya Divas, Chenoy said: “As far as the Diaspora is concerned, you can give support, guidance and leadership from wherever you are.”
Speaking at the same seminar, Lord Bikhu Parekh, Member of the Prime Minister’s Advisory Council, said: “The Diaspora can contribute not only in terms of money, but more importantly through ideas.” Elaborating he said: “They can facilitate academic exchanges and get involved in preparing policy with regard to primary and secondary education. The Diaspora is exposed to a variety of systems. India can learn from the experiences of Brazil, China, South Africa and Singapore while applying the Right to Education.”
“One example is where the government of Bihar has given away cycles to girl students. The Diaspora can adopt a village and do the needful. Wherever classrooms are not available, the Diaspora, in the first year, can help set up a set of classrooms and in the
“India has deep roots and values. Not surprisingly, education is the third most important spend in a typical Indian family. This, therefore, presents an opportunity, for building sustainable models and bring in resources,” said Pramod Joshi, Project Director, Shiv Nadar Foundation. Addressing himself to the Diaspora, Joshi said: “You could help provide for better infrastructure and foster growth in concentric circles — from the village to the taluka to the district. We must also invest in the long term and develop teachers. We can also gift more actively to school alumni, besides donating to foundations. Most importantly, we must invest in the right place and the right people and with states that are more performance and value driven. “A good model to follow would be one of Public Private Participation. We must also invest in diversity and sustainability — diversity of religion, culture, opinion etc. Importantly, we must invest in a green future. The Diaspora can choose between two models: (a) Corrective Philanthropy: addressing grassroots and basic problems, (b) Creative Philanthropy: addressing niche or narrow focus.”
DIASPORA QUIZ 1) Listed in ‘The Observer’ as one of the 50 funniest acts in British comedy, in 2005 he was made an officer of the Order of the British Empire in the New Year Honours List. Who is this British-Indian comedian, actor and broadcaster? 2) Founded in 1985, this gurudwara spreads over 40 acres of land and is considered as the largest Gurudwara in North America. Where in the US is this Gurudwara located? 3) Balamurali ‘Doogie Howser’ Ambati entered the Guiness Book of World Records as the world’s youngest doctor in 1995. Which brand of medical science does he specialise in? 4) A British-Indian chef of Indian cuisine, she is regarded as one of the first food writers to adapt healthy meals from a traditionally rich Indian diet. She is featured in the BBC series, Indian Food made easy, broadcast in 2007. Who is she? ANSWER: 1) Sanjeev Bhaskar 2) San Jose, California 3) Ophthalmology 4)Anjum Anand
14 | India-Austria Newsletter
Gastronomy
GULAB JAMUN Indian Cuisine Recipe Preparation - For Dough
For the Sugar Syrup
• Make the dough by combining the milk pow-
• The syrup should be made earlier and kept
• Heat the oil on high and then lower the heat
• Transfer this hot syrup into a serving dish.
der, Bisquick, butter. Add just enough whole milk to make a medium-hard dough. Divide the dough into 18-20 portions. Make balls by gently rolling each portion between your palms into a smooth ball. Place the balls on a plate. Cover with a damp yet dry kitchen towel.
Ingredients 1 cup Carnation Milk Powder 1/2 cup all purpose flour 1/2 tsp baking soda 2 tablespoons butter -melted Whole milk just enough to make the dough For the Sugar Syrup 2 cups Sugar 1 cup water Oil for frying
to medium. Slip in the balls into the hot oil from the side of the pan, one by one. They will sink to the bottom of the pan, but do not try to move them. Instead, gently shake the pan to keep the balls from browning on just one side. After about 5 mins, the balls will rise to the surface. The Gulab Jamuns should rise slowly to the top if the temperature is just right. Now they must be gently and constantly agitated to ensure even browning on all sides.
warm. To make the hot sugar syrup add mix the 2 cups of sugar to 1 cup of water. Add 4-5 cardamom pods, slightly crushed and a few strands of “Kesar”. Mix with a spoon and then heat at medium heat for 5-10 minutes until sugar is all dissolved in water. Do not overheat, that will caramelize the sugar. Keep warm on stove. Add the fried gulab jamuns directly into the warm syrup. Leave gulab jamun balls in sugar syrup overnight for best results. They can be served warm or at room temperature.
• If the temperature of the oil is too high then
the gulab jamuns will tend to break. So adjust the temperature to ensure that the gulab jamuns do not break or cook too quickly.
• The balls must be fried very slowly under medium temperatures. This will ensure complete cooking from inside and even browning.
DAL KACHORI (STUFFED BREAD) Indian Cuisine Recipe Preparation - For Dough
For Kachoris
Ingredients
• Take flour, sooji, salt & baking powder in big
• Divide the dough into small ball-sized portion
bowl. Add oil /ghee into it. Use required water and knead to make a firm dough. Keep aside for 15-30 min and cover with wet cloth.
• Roll a ball into 3”-4” circle and keep 1-2 tbsp
For dough: 1 ½ cup wheat flour 1 cup sooji 1 cup of ghee /oil 1 tbsp salt 1 tsp baking powder For filling : 1/2 cup mung dal ( soaked in water for 2-3 hr ) 2-3 green chilies ½ “ of ginger piece Salt to taste 1 tsp onion seeds Pinch of asafoetida 1 tsp turmeric powder 1 tsp red chili powder 1 tsp dried mango powder 1 tsp cumin seeds 11-1 ½ tbsp olive oil/ canola oil 2 tbsp gram flour
For Filling
• Grind soaked dal in processor with green chili, ginger & salt.
• Now heat a frying pan with oil. Add asafoetida and cumin seeds. When they crackle, add mung dal’s mixture and keep stirring till they get cooked ( If mung dal mixture does not stick to the pan then it means mixture is cooked ).
• Now add turmeric, red chili powder, gram flour, dried mango powder & onion seeds and saute for 6-8 min on medium heat. Turn off the stove and let the mixture cool.
and roll into balls between your palm till they are smooth and without cracks.
of moong dal’s mixture in center. Gather the edges and seal. Now again roll it like 4”-5” of circle. Make all kachoris in the same way. Keep them aside for 15-20 min.
For frying : 1. 2 cup ghee / canola oil India-Austria Newsletter | 15
Tourism
MAHARASHTRA Indian State Profile
M
aharashtra is the land of prosperity, culture, spirituality with growing global recognition due to its advanced industrialization, ITech cities. Ancient glory says that the land is a motherland of great Marathas, the warriors who ruled out the region from centuries and one of the major reasons of rich culture and heritage of the state. Maharashtra-literally means “Great Nation” is a prosperous and highly industrialized region of the Indian Union. The verdant hills, scenic coastal plains and massive forts offer a different shape to the geographical map of the state. This is the land of Shivaji, the founder of Maratha Empire and a great fighter against the Mughal Empire.
Matheran
Maharashtra was known as “Rashtra” in the Rig Veda, “Rashtrik” in Ashoka’s inscriptions and “Maharashtra” afterwards, as attested by Huein-Tsang and other travellers. The name appears to have been derived from “Maharashtri” in an old form of Prakrit, an ancient Indian language. The land situated in the north centre of Indian peninsula is bordered by the states of Gujarat, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka and Goa. The Arabian Sea forms the western coast of the state.
MUMBAI
The capital city Mumbai, also the biggest city of India is the second largest producer of films in the world. The cosmopolitan style of living of the people makes it a world class city. The state today has become a major destination for the film stars and cultural celebrities. The big cities of the state like Mumbai and Pune are famous for their educational institutions and research centres. The modern Maharashtra is a mixed result of indigenous traditions and western education. Tourism and culture are its main heritage and it unifies every community in it with same harmony and love.
BHATEY
FOR MORE INFORMATION, CONTACT
India Tourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 Fax: +49 (69) 242949-77 www.india-tourism.com info@india-tourism.com 16 | India-Austria Newsletter
aJANTA CAVES
Embassy Events
INDIAN MOVIE EVENING: UDAAN (FLIGHT) March 8th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Wien) Synopsis: After being abandoned for eight Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at or via phone at +43 1 505 866633 (Ms. Lily John).
straight years in boarding school, Rohan returns to the small industrial town of Jamshedpur and finds himself closeted with an authoritarian father and a younger half brother who he didn’t even know existed. Forced to work in his father’s
Genre: Drama
steel factory and study engineering against his
Directed by: V. Motwane
wishes, he tries to forge his own life out of his
Starring: Rajat Barmecha/Ronit Roy
given circumstances and pursue his dream of be-
Released: July 2010
ing a writer. Udaan was India’s first official selec-
Duration: 138 Minutes
tion at Cannes in 7 years. Additionally, the movie
Language: Hindi
won the “Best Audience” and “Best Music Score”
Subtitles: English
Awards at the Giggoni Film Festival Italy, 2010.
INDIAN MOVIE EVENING: AJAB PREM KI GHAZAB KAHANI (UNIQUE LOVE’S AMAZING STORY) March 29th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) Synopsis: Prem’s (Ranbir Kapoor), fundas in life Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indianembassy.at or via phone at +43 1 505 866633 (Ms. Lily John). Genre: Comedy Directed by: Rajkumar Santoshi Starring: Ranbir Kapoor/Katrina Kaif Released: November 2009 Duration: 161 Minutes Language: Hindi Subtitles: English
were very simple - be happy... make others happy... keep the town happy. It may have been a case of mistaken identity that led Prem to kidnap Jenny (Katrina Kaif). And it was sheer greed that made Prem try to pull a fast one over her father. As for sweet and simple Jenny, brought up by indifferent and uncaring foster parents, all she longed was to love and be loved in return. And it was love and only love for Jenny that made Prem turn over a new leaf. From hardly working vagabond he began working hard to make money… From a besotted Romeo he became a mature and thoughtful Majnu who put Jenny’s happiness above everything else. As for Jenny, she was so much in love with the idea of being in love that she was blinded by the reality that was staring in her face... That’s when she realises that she had made a mistake with her love.
PREVIOUS EVENTS: SNAPSHOTS February 23rd, Seminar The Seminar “Preserving Rich Cultural Heritage of Western Himalayan Nako Village” presented by the “Institute of Conservation of the University of Applied Arts Vienna” was the first event in new premisses of the “Business Centre” of the Indian Embassy. Guests enjoyed the presentations and refreshments were served afterwards. The presentation included the screening of a short documentary on the Nako Village Restoration projetcs and an overview of various restoration techniques used, the challenges and the results of the project.
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Other Events
OTHER INDIA-RELATED EVENTS IN AUSTRIA
Talk-Series ‘Zu Gast bei Elisabeth Al-Himrani’
No. 84 - Prof. Eva Mazzucco, Painter and Graphic Artist When: March 22, 19:00 Where: Natya Mandir Börseplatz 3/1D, 1010 Vienna FREE ADMISSION More details at
austro-indian.at
CLASSICAL INDIAN DANCE BHARATANATYAM STUDIO
Radha Krishna The divine couple When: March 17, 19:30 Where: Natya Mandir Börseplatz 3/1D, 1010 Vienna More details at
austro-indian.at
TREKKING WITH NATIVES IN NAGALAND
Exhibition
NAGA PEOPLE JEWELRY AND ASHES
Until June 11th 10am-6pm Museum of Ethnology Neue Burg, Heldenplatz 1010 Vienna
EXHIBITION “EYES AND HANDS OF AN ARCHITECT”
Sketches and Drafts of Northern Africa, India and Europe Artist: Jalil H. Saber Zaimian. When: March 21-30, 09:00-18:00 Opening: March 20, 18:00 Where: Auditorium of the Art history Institute of the Vienna University Spitalgasse 2, Hof 9, 1090 Vienna
movie “best exotic marigold hotel”
The movie tells the story of British retirees, who travel to India to take up residence in what they believe is a newly restored hotel. Less luxurious than its advertisements, the Marigold Hotel nevertheless slowly begins to charm in unexpected ways. Original English Version with German subtitles. Directed by: John Madden Starring: Judi Dench, Maggie Smith, Dev Pattel (from Slumdog Millionaire) When: Starting March 16 Where: Votivkino, Währingerstrasse 12, 1090 Wien
movie PREMIERE “raavanan”
The film follows the crux of the epic Ramayana, with a ruthless police officer on the chase to find a tribal leader and lawbreaker, who has kidnapped his wife. The movie music is produced by OSCAR© winner A. R. Rahman. Original Tamil Version with English subtitles. Directed by: Mani Ratnam Starring: Vikram, Aishwarya Rai, Prithviraj When: March 1 and 2 Where: Austrian Film Museum, Augustinerstraße 1, 1010 Vienna
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