India Newsletter 06 2015 by Indian Embassy Vienna

INDIA NEWSLETTER www.indianembassy.at

Published by the Embassy of India, Vienna Year 5 • Issue 54 • June 2015

MAKE IN INDIA ELECTRICAL MACHINERY India Newsletter • 1

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The new Government has prepared a five pillar strategy to drive India’s growth, which offer multiple avenues of collaboration and investments

■■ Infrastructure Development

■■ Manufacturing Growth

■■ Skill Development

■■ Energy Sufficiency

■■ Improved Business Environment

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NEWS FLASHES

Atal Innovation Mission scheme will provide funding to establish a network of academic institutions with an aim to carry out research on innovations for the purpose of job creation and strengthening economic growth..

The Government of India has introduced a simplified income tax return form on May 31, 2015. A simpler tax return form will both address the concerns of tax payers as well as make the entire process smooth.

G o v e r n m e n t ’s plan to set up 100 gigawatt solar plants by 2022 has prompted foreign solar cell manufacturers to partner with Indian companies. This move will not only help to reduce cost of solar cells but also encourage exports from India.

Guwahati could soon emerge as the pharmaceutical hub for South East Asia, said Union minister for chemicals and fertilisers, AnanthKumar, while laying the foundation stone of the permanent campus of the seventh National Institute of Pharmaceutical Education and Research (NIPER), to be set up at Changsari near Guwahati.

In partnership with Arvind Lifestyle Brands, Gap, a US multinational clothing and accessories retailer, has entered the Indian market and is set to open its first store in Delhi.

Government of India has allowed international miners to sell rough diamonds directly in India starting from July 1, 2015. “With operational guidelines in place, global miners will be able to set up offices in India which will reduce travelling time for Indian diamantaires, and also cost of rough diamond procurement.

The Reserve Bank of India (RBI) has issued draft guidelines on mobility cards that will allow people to travel without cash in metros, buses and taxis. The rationale behind introduction of these cards is to reduce the cash transactions in the system and gradually move towards a cashless economy.

Four South Asian neighbours - India, Bangladesh, Bhutan and Nepal - are set to sign an agreement next month to connect their countries by road and boost trade and economic activity.

The net foreign direct investment (‪#‎FDI‬) inflows have

touched a record high of US$ 34.9 billion in 2014-15, as per a chart compiled by Nomura Global Markets Research.

Private equity (PE) funds have completed six buyout deals worth US$ 1.08 billion during the first five months of 2015. The value of such transactions has already exceeded for all of last year, mirroring investor confidence in acquiring large stakes in Indian companies as economic growth accelerates.

Indian automobile industry exported a record 3.5 million vehicles during FY15, registering an increase of 15 per cent compared to the same period a year ago..

During the current year, cargo sector of India has registered a phenomenal growth of 10 per cent over the previous year, said Mr Ashok Gajapathi Raju, Union Minister for Civil Aviation, Government of India.

The Department of Atomic Energy (DAE) has developed and deployed technologies to use atomic energy. An outlay of approximately Rs 1,700 crore (US$ 265.63 million) has been provided under XII Plan for projects under Radiation Technologies and their applications. India Newsletter • 3

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NEWS ARTICLES KTM Duke 250 and RC 250 manufactured in India.

ustrian manufacturer KTM first revealed its KTM Duke 250 and RC 250 in Tokyo. Now there is a buzz that KTM will start manufacturing Duke 250 and RC 250 at Bajaj’s chakan plant in Pune and will start exporting the bike to other countries. The KTM Duke 250 and RC 250 are exported to the countries like Japan, Hong kong, Malaysia, Austria, Turkey and Thailand.2015ktm-250-duke-p3 The Duke 250 is powered by 248.8cc, single cylinder, liquid cooled engine which churns out 31.3PS of power at 9,000rpm and 24Nm of peak torque at 7,250rpm. The engine is mated with a 6- speed transmission. The bike has a ground clearance of 170mm and seat height is at 800mm. Bike is expected to launch in international market in June at a price of Rs. 2.88 lakh in Indian currency. RC 250 shares the same engine with KTM Duke 250 and has a kerb weight of 147 kg and built on a steel trellis frame. The bike has an ABS and runs on the Metzeler tyres. The expected price of the bike is Rs. 3.25 lakh in Indian currency.KTMRC390-Official-Pic-India KTM competitor Honda and Kawasaki have already made the market in 250cc segment by selling their CBR250 and Ninja 250. 250cc bikes have huge demand in Japan. Bajaj auto is the largest exporter of motorcycles and they export around 35 percent of total sales in which 47 percent are export to Africa. Bajaj also distributes motorcycles for the other manufacturers like Kawasaki Ninja 650R and Kawasaki Ninja 250R and KTM Duke 200. Bajaj Auto manufactured 3.76 million units of motorcycles in 2012- 13, in which 2.46 million units were sold in India and 1.3 million units exported. In 2007 KTM and Bajaj auto, signed a joint venture deal in which Bajaj auto acquired 14.5 percent share 4 • India Newsletter

with KTM power sports AG and later they increased their share holding by 47 percent. In 2012, Bajaj with this joint venture decided that they will develop 125cc and 250cc bikes for Europe and Far East, and in the same year Bajaj launch KTM Duke 200.

Economy at early stages of recovery, GDP to rise to 8%: Nomura

lobal brokerage firm Nomura, in a recent research note said that the Indian economy is at the initial stages of recovery. However, it sounded bullish on Indian economic prospects with 8.0 per cent GDP growth expected in FY 2016 as against 7.3 per cent in FY 2015. According to the data released by Central Statistics Office (CSO) on May 30, due to improvement in manufacturing sector, the Indian economy grew faster at 7.3 per cent in FY 2015 as against 6.9 per cent in FY 2014. The note further highlighted that lower inflation, easier financial conditions, policy efforts, and rising profit margins are expected to back up a cyclical recovery while mentioning bad monsoon and weak global demand as potential risks to their thesis. It also indicated that ‘RBI is likely to cut the repo rate by 25 basis points on June 2, 2015’.

India’s auto exports hit a record high in 2014-15

want to appeal all the people world over from the ramparts of the Red Fort,” Prime Minister Narendra Modi said in August last year, “come, make in India; come, manufacture in India. Sell in any country of the world, but manufacture here.” For inspiration, his target audience need not have looked beyond India’s vast automobile factories that build millions of vehicles for global markets every year. Just to illustrate,

South Korean car maker Hyundai, which set up shop in the southern city of Chennai in 1996, now exports to 119 countries, shipping over 190,000 cars in 2014-15. Exports of cars, utility vehicles, commercial vehicles and twowheelers have grown every year since 2000. In the financial year that ended in March, Indian factories exported a record 3.5 million vehicles which, according to industry figures, was 15% more than what they managed a year back. This compares with domestic sales of just above 2.6 million units during the same period, up 5% from a year ago. Exports have helped automobile companies mitigate risks from the cyclical demand in home and overseas markets. The tepid demand in the local market in the last three years saw a renewed exports thrust by automobile firms, particularly those that saw a sharp decline in domestic volumes. Car sales in India contracted by 7% and 5% in fiscal 2012-13 and 201314, rising 5% in fiscal 2014-15. Even as overall automobile exports rose, car exports fell 1.66% to 542,082 units in 2014-15 from 551,218 units in 2013-14. The reason: an 18% fall in overseas shipments by top exporter Hyundai Motor India Ltd to 191,221 units. An HMIL spokesperson attributed this to the sharper focus on domestic markets, adding that the maker of i20 small cars, Verna sedans and Santa Fe SUVs will “keep penetrating the existing markets and expand our business in the newer markets in the future”. There is another reason, though. In September, Hyundai stopped shipments to Europe from its Chennai facility, assigning the task to its plants in Turkey and Czech Republic. The Indian operation continues to be the hub for Asia, Latin America and Australia, but it was Europe that accounted for 40%

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of HMIL’s exports. “The decision to shift a product export to a specific overseas plant such as Turkey is a strategic decision to meet the customer demand in that specific market while balancing the domestic market demand,” the HMIL spokesperson said. Where Hyundai slowed, others have leapt ahead. The local arm of Volkswagen AG, which makes Polo small cars and Vento sedans, raised 2014-15 exports by 95% to 64,994 units even as its domestic sales slipped by 14.3% to 45,018 units. Similarly, the local arm of Ford Motor Co., which saw domestic sales fall 11% to 75,138 units in 2014-15, raised exports by 70% to 81,703 units. Ford, which makes Fiesta sedans, Figo small cars and EcoSport SUVs at its Chennai plant, is now building a second plant at Sanand in Gujarat, which will triple its exports. The $1 billion factory will produce 240,000 units per annum, out of which at least half will be shipped overseas. The higher proportion of exports in overall volume was seen at the local arm of the local unit of Japan’s Nissan Motor Co. Ltd as well. Albeit a small base, local sales at the firm rose 25% to 47,474 units while exports rose 3.45% to 120,331 units in 2014-15. Nissan’s India operations head Guillaume Sicard said this year could be even better for exports, with the government’s focus on manufacturing. “They have already streamlined documentation and consolidated schemes into simple and clear objectives for the enhancement of the automobile industry. We are also seeing increase in incentives for exports, especially for Europe,” Sicard said. He, however, disagreed that exports are a strategy to compensate for poor domestic sales. “We do not use exports as a strategy to tide over the slowdown in a market; we particularly prefer a robust environment in our domestic markets, as well as exports.” Rakesh Batra, who heads the auto

practice at consultancy EY India, said exports from India will continue to be the preserve of global automakers and not homegrown ones. According to Batra, “unlike a Tata Motors Ltd or a Mahindra and Mahindra Ltd who need to invest in all the three areas—product, brand and distribution—making exports a strategic play, for the multinational firms it’s all about a sourcing decision”, since they own strong brands and networks. With limited scope for products made in India, the addressable markets will also be select, he added, referring to countries in West Asia, Latin America, Africa and Southeast Asia. Trade agreements between South Korea and the European Union, too, have prompted companies such as Hyundai to shift some production out of India. Sugato Sen, director general of industry body Society of Indian Automobile Manufacturers, said automobile export volumes are largely driven by smaller-ticket models like two-wheelers. Close to seven out of 10 automobiles shipped out of India in 2014-15 were either a scooter or a motorcycle. Two-wheeler exports rose by 15% to 2.4 million units. The auto industry contributes to more than 40% of India’s manufacturing sector, according to R. Raghuttama Rao managing director at IMaCS (Icra management consulting services). Most global vehicle makers have set up shop in India, clearly endorsing the point that India is competitive and capable of delivering quality despite several negative perceptions still associated with the country. The auto industry provides guidance for the general manufacturing industry in terms of how to straddle the two ends of being a high quality player and cost competitive,” says Rao. Nissan’s Sicard points out that taxation and sectoral reforms to encourage exports of made-inIndia vehicles and lower cost of

capital will help raise investments in manufacturing. For now, though, global carmakers are sold on making in India. On Monday, after meeting Prime Minister Modi in Seoul along with chiefs of several other companies, Chung Mong-koo, group chairman of Hyundai, said his company is looking at building a third plant in India. According to Reuters, Hyundai’s affiliate Kia Motors is also reported to be keen on building a factory in India. For global car makers at least, Make in India is truly on.

India continues to lead global consumer confidence index: Nielsen

ndia remained at the top of Nielsen’s global consumer confidence index for the fourth quarter in a row, but whether confidence translates into consumption is still in doubt. The country’s confidence score rose 1 point from the previous quarter and 9 points from a year ago to 130 in the three months ended March. India was followed by Indonesia (123) and the Philippines (115), according to the online survey conducted by Nielsen. Although India retained its position at the top of the index, a substantial 44% of the respondents polled felt that the economy was still in the dumps, said the Nielsen Global Survey of Consumer Confidence and Spending Intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. An increase in consumer confidence index is a sign of brighter prospects for an economic recovery. As the sequential increase in confidence in the March quarter is negligible, it still casts a cloud on India’s consumption story. “We are seeing some initial signs of consumption recovery, but will have to wait for another quarter or two to see if this can be sustained. This will depend on factors like timely India Newsletter • 5

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monsoons and inflation,” said Piyush Mathur, president, Nielsen India region, in a phone interview. This is in line with what consumer product makers such as Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd and Marico Ltd said when they announced their March quarter earnings. “There is no clear visible trend emerging at present. It is a bit too early to predict... Maybe we will have to wait for a quarter or two,” said Sanjiv Mehta, chief executive officer and managing director at HUL, the maker of Lux soaps, Surf detergents and Kissan jams, at the company’s earnings conference on 8 May. Delayed and deficient monsoon rains last year, followed by unseasonal showers that damaged winter crops in the past two months, have hurt rural incomes and consumption despite inflation slowing. Consumer Price Index-based retail inflation eased to 4.87% in April, a fourmonth low. “The fall in inflation is expected to have an impact on disposable income over time, but it will take time for the sectors to be restored to perceptible and sustainable growth,” said Mathur. Growth in infrastructure, engineering and other industrial sectors is yet to gather pace. India’s eight core sectors shrank for the first time in 17 months by 0.1% in March, compared with a 1.4% expansion in February due to a dip in production of steel, natural gas and refinery products, according to official data. The Nielsen survey, established in 2005, measures perceptions of local job prospects, personal finances and immediate spending intentions among over 30,000 respondents with Internet access in 60 countries. Over four in five urban Indian respondents (nearly 83%) polled in the survey, conducted between 23 February and 23 March, exuded the highest level of optimism globally on job prospects in the next 12 months; the figure was 74% in the same quarter last year. India was followed by Indonesia (74%) and the 6 • India Newsletter

Philippines (73%). According to the survey, discretionary spending and savings of over three in five (65%) online respondents polled indicated this is a good time to buy things they want and need, compared with 54% in the year-ago period. When it comes to investing spare cash, 64% indicated it is a good time to put it into savings. The purchase intent for new clothes by urban online respondents was 44% in the March quarter, the same as in the previous quarter. Also, 79% respondents changed their spending habits to save on expenses, the survey showed. The top three cost-cutting avenues in the March quarter were savings on gas and electricity (49%), spending less on new clothes (45%), and cutting down on holidays and short breaks (35%). The state of personal finances for 80% of urban Indian respondents was good or excellent in the first quarter of 2015, 4 percentage points up from 76% a year ago. The top concerns remained job security (22%), sustaining a work-life balance (11%), and followed by state of the economy (9%). Parents’ welfare and happiness was the second biggest concern for 12% of the respondents.

India emerges as 2nd biggest shareholder in new Asian Infrastructure Bank

ndia has emerged as the second biggest stakeholder in the 57-nation Asian Infrastructure Investment Bank after a meeting of its chief negotiators in Singapore. China, which sponsored the bank, will have 30.85 per cent share followed by India with 10.85 percent. Three other countries—Indonesia, Germany, South Korea—follow India with shares ranging between 3.93 per cent and 3.99 per cent, sources said. The allocation is based on the principal that 75 per cent shares will be reserved for Asia, and allocation within Asian countries will be based on their respect gross domestic

product. As the second biggest stakeholder, India will command a major influence in shaping infrastructure funding decisions in Asia, observers said. India also happens to be one of the major recipients of loans from World Bank and Asian Development Bank, which the new bank will compete with. India is expected to allocate nearly $11 billion towards the share capital of the $100 bank, which will fund infrastructure projects across the world. The actual funding by AIIB might exceed its capital strength within the first few years because other banks like the China Development Bank are expected to participate in joint funding efforts. China demonstrated a major climb down from its earlier stance, and agreed to accept less than onethird stakes in the upcoming bank. It had asked for about 50 per cent share when it first proposed the idea during a meeting addressed by president Xi Jinping in Indonesia in October 2013. But members from Europe including United Kingdom, France and Germany, who recently joined the bank, prevailed upon China to reduce its overwhelming influence in order to give the bank a more independent character rather be seen as a Beijing controlled entity, sources said. China has also agreed to a request that it should have no veto power in the new bank, according to informed sources. “Founding members of AIIB have made some compromise and finally reached the agreement this time,” Henry Gao, Associate Professor of Law with Singapore Management University, was quoted by Xinhua news agency as saying. Explaining why non-Asian members got lower stakes in the bank, Chen Kang, professor of Lee Kuan Yew School of Public Policy in Singapore, said, “AIIB would have lost its Asian characteristic if allocation was strictly followed the only standard of GDP. Firstly differentiate Asian

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countries and countries outside the region, then allocates on the basis of GDP. This practice sounds more reasonable, as countries out the region are developed countries in Europe”.

Tiger Global emerges as India’s leading investor in startups in ‘15 New York-based Tiger Global Management has emerged as the top investor in startups in India during the first four months of 2015. The PE fund, led by Lee Fixel, which manages $10 billion in assets, was placed fourth during same period last year, according to data with funding tracking firm Venture Intelligence. Indian startups feature in 18 of the 26 funding rounds that the investor has participated globally in 2015 so far. Tiger, founded in 2001, has committed $269 million to 11 deals in January-April period, as against the $10 million for a single deal for the like period in 2014. Tiger, a major investor in Flipkart, has started to make early-stage investments, too, in India. VC firm Sequoia Capital has made investment worth $208 million in the first four months of 2015 across 14 deals. During the same period last year, VC firm Nexus Venture Partners with $73 million in funding was the largest VC player in the country followed by Kalaari Capital with $45 million in six deals. “The India focus of Tiger has given confidence to other global private equity and hedge funds to come to India.With the establishment of Bengaluru office, the momentum is going to get accelerated,” said Karan Mohla, executive director and head of digital consumer investment at VC firm IDG Ventures. During this month, the fund has appointed Fixel as the head of its private investments after two of its senior executives left the company. Kalyan Krishnamurthy, MD at the fund, looks at the portfo lio companies in the country.Earlier an

interim CFO at Flipkart, he has shifted from Singapore to Bengaluru. Mohla of IDG said the bullish techfocused fund has led a $5-million financing round in Chaayos, an offline tea retail chain, with participation from Ola founders Bhavish Aggarwal and Ankit Bhati. According to Crunchbase, which tracks startups, Tiger has raised $6.7 billion in funding while making 136 rounds of investments in 86 companies globally so far. Tiger was the top investor in India at $422 million in 2014, despite a lean start. After April, with massive fund infusion into Flipkart, which raised a total of almost $2 billion in 2014, Tiger became the top fund. It was followed by Russian investor Yuri Milner-led DST Global, which invested $352 million, and Japanese telecom giant Softbank, which in vested $282 million in the Indian startups in 2014.

China wants Indian IT companies’ expertise in new hi-tech city

hina wants Indian IT companies to open shop in a sprawling tech-city being built in one of its least developed regions in the southwest of the country, in a move that reflects the effort to strengthen economic cooperation between the two countries at state levels. Cooperation between Indian states and Chinese provinces was in sharp focus during Prime Minister Narendra Modi’s visit to China earlier last month. The Guizhou province in southwest China, according to Chinese officials, is emerging as a base for cloud computing and big data -- and they want Indian software giants like Infosys, TCS and Wipro to be part of it. Representatives from more than two dozen Indian companies, their Chinese counterparts, the Confederation of Indian Industries (CII) and government officials got together on Tuesday at the Guian New Area (GNA) city to begin work

on a blueprint for cooperation; the seminar was titled “China-India IT Industry Development Forum.” One Indian company has already made the move: earlier this year India’s NIIT and GNA signed an MoU to offer programs in new-age IT, with a special focus on Big Data. Under the agreement, NIIT will set up a centre in GNA to train 50,000 students in five years, “...to help realise China’s vision to promote Guian as the national centre for the big data industry.” “India is one of the leading countries in IT. There is lot of space to cooperate (between India and Chinese IT companies)....they complement each other. This could be the starting point for a new development,” Wang Jianping, vice-governor of Guizhou province, said at the gathering. Speaking at the seminar, Namgya Khampa, economic counsellor at the Indian embassy in Beijing, said: “...IT has long been acknowledged as a particularly promising area for increasing cooperation. Both governments have been advocating stronger links between our IT companies. Certainly the presence of many of our leading IT companies here today is a positive sign on the cooperation to come”. Top officials from Indian IT majors appeared enthusiastic but cautious. The projected development of the city as an IT hub with a substantial Indian component, they said, was ambitious but more details needed to be chalked out. “IT development in the GNA has the financial resources, governmental support and the required infrastructure. Big data prospects look bright, but we have to now look at the details,” Sujit Chatterjee, Tata Consultancy Services (TCS) Chinahead, said. Another company representative privately asked whether it would be a better idea for Chinese IT companies to cooperate with India – in India. India has demographic and cost advantages, more than 54 percent India Newsletter • 7

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of the population is under 25, and it has started to grow fast, the official pointed out.

Government’s target to set up 100 GW of solar plants drives local, foreign companies

ncouraged by Prime Minister Narendra Modi’s call to set up 100,000 megawatt (100 gigawatt) of solar plants in the country by 2022, foreign solar cell makers are setting up shop in India in partnership with local players. What is driving them is the government’s target and the opportunity to export products from here to other countries. Local players are equally upbeat as they see an opportunity to upgrade their technology via a foreign partner and achieve economies of scale. Currently, domestically manufactured solar modules are not only expensive but also uneconomical, compared with cheaper imports, especially from China. “The local industry is not geared to meet the total demand and that’s the immediate trigger for foreign interest. In the next one year, 3-4 foreign players can be expected to set up solar manufacturing facilities in the Indian market,” said Santosh Kamath, partner and head of renewable energy sector, KPMG. In November, Prime Minister Narendra Modi announced a target to set up 100 Gw of solar plants from the current small base of 3,000 Mw. Since then, solar equipment manufacturing agreements between Indian and foreign companies have become a staple in the prime minister’s overseas visits. For example, Welspun Energy signed a memorandum of understanding with China’s Trina Solar to jointly set up a photovoltaic industry park to produce 500 Mw of PV cells and 500 Mw of PV modules in India during the prime minister’s recent China visit during May 14-16. In the same visit, Essel Group entered into an agreement with China’s energy firm

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JA Solar to launch a joint venture for manufacturing solar cell and modules in India. At Hannover Messe, the world’s biggest industrial fair held in Germany this April, Vikram Solar signed similar MoUs with German company Fraunhofer Institute for Solar Energy Systems ISE and Swiss companies Meyer Burger and Centrotherm. Officials at Vikram Solar said foreign partners want to make inroads into India by validating their new technologies here, while Indian partners like them are looking to get the best processes to build updated production lines. “Within six months manufacturing configurations get outdated and it gets difficult for local players to upgrade them in time. None of the manufacturers is competitive and that’s why we have Domestic Content Requirement (DCR) in projects. Local cells are 15 cents costlier than those available internationally,” said Ivan Saha, president and chief technology officer, Vikram Solar. With such tie-ups, Saha says, he aims to make “Make in India” work in solar manufacturing space, which is currently suffering from lowconfidence due to bad experiences with many local players. In May, Azure Power commissioned a 100 Mw solar plant under the National Solar Mission Policy with 60 Mw of Made-in-India equipment. But at a “cost” to the company. “Our goal was to demonstrate that we believe the Make in India campaign would work for the solar space. But the cost differential between local and imported equipment is 7-8%. If you compete with such high cost structures in an open tender you can’t win as every 1% cost differential counts there,” said Inderpreet Wadhwa, founder and CEO at Azure Power. Wadhwa said he would encourage foreign manufacturers to enter the country if the government sticks to its plan of tendering 10,000 Mw of solar capacity this year. Then there was the agreement in

January between Adani Enterprises BSE -2.56 %, the flagship company of Adani Group, India’s leading integrated infrastructure player and leading American solar technology manufacturer and provider of solar energy services SunEdison to establish a joint venture (JV) to build the largest, vertically integrated solar photovoltaic manufacturing facility at a cost of $4 billion. But not everyone is taking the plunge right away. America’s First Solar has been evaluating setting up a manufacturing facility in India but is waiting for predictability of demand before going ahead. According to Sujoy Ghosh, country head at First Solar (India), as of today lack of consistent and predictable demand, high cost of interest and lack of reliable power supply create headwinds to the argument on investment in local manufacturing that can be globally competitive and hence sustainable in the long run. “The current policy of allowing imported wafers that account for 40% of the value chain for fully domestic modules will not create true import substitution or cost competitive options locally... a clear visibility on the next 5-7 years of procurement will be very helpful for deciding investment on manufacturing/supply chain activities that will be for the longer term,” Ghosh said. Solar market intelligence firm Bridge to India foresees installation of about 2.7 Gw of such projects in India this year. “Even though India has about 2 Gw of module manufacturing capacity, only 400-500 Mw will be sourced locally not just because these products are expensive, but also because a large part of the capacity is not functional,” said Jasmeet Khurana, senior manager (consulting) at Bridge to India.

Government introduces simpler income tax return forms

he government on Sunday introduced simplified income tax

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return forms, abandoning a previous attempt to seek detailed disclosures of foreign trips and bank accounts from taxpayers, even as it retained clauses to check evasion. While taxpayers will not have to disclose details of all foreign travel undertaken by them and the expenditure incurred, they will still need to submit their passport numbers in the revised tax return forms, a finance ministry statement said. Taxpayers will also have to disclose all their bank accounts, but will be spared from having to mention the balances in their accounts. Facing criticism from taxpayers— both companies and individuals— finance minister Arun Jaitley promised a simpler income tax return form to replace a 14-page form notified in April that would have made filing tax returns a tedious process. The older tax return forms had sought extensive details about foreign trips, bank balances and capital gains accruing to a taxpayer as the government sought to pursue tax evaders. “The government is looking to proactively address the concerns of tax payers,” said Amarpal Chadha, a tax partner at EY. “At the same time, it is also looking to get the information it requires from the taxpayers without causing too much trouble to them.” The Narendra Modi government is trying to check domestic black money as well as unaccounted wealth stashed overseas. It has managed to push through the black money bill in both Houses of Parliament to check black money stashed abroad, which requires compulsory disclosure of foreign assets and income and subjects evaders to stiff penalties and jail terms. While the new forms will make filing returns a less tedious job, the data in them will be enough to help tax authorities track foreign travel and financial transactions. To check tax evasion, the government has also introduced

legislation aimed at amending the Benami Transactions (Prohibition) Act. It will help check creation of black money in India especially in real estate transactions. In addition, with the tax department seeding permanent account number (PAN) with Aadhaar—a unique identity number that is already linked to many bank accounts—the government may be able to effectively bring tax evaders to book. The government said it will introduce a new simplified income tax return form ITR 2A for individuals who have income from more than one house property—residential asset—but no capital gains accruing to them. “As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than three pages, and other information will be captured in the Schedules which will be required to be filled only if applicable,” the statement said. ITR 2 was required to be filled by individuals and Hindu undivided families having income from more than one house property and capital gains. The government extended the last date for filing of returns by a month to 31 August. It also partially relaxed the requirement of listing all bank accounts and their balances. While taxpayers will need to give details about their bank accounts and the account number for all the current and savings accounts held by them at any time during the previous year, they will not need to give details about dormant bank accounts that have not been operational for the last three years. In a respite for non-residents, the government also removed the clause for them to mandatorily report their foreign assets. “An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-

resident if no income is derived from such assets during the relevant previous year,” the government said.

Irda issues new norms for corporate agents Recent amendments to the draft guidelines on open architecture in insurance distribution will bring respite to bank-promoted insurance companies. According to the Insurance Regulatory and Development Authority (Irda) draft that came out on 29 May, it is no longer mandatory for corporate agents to sell policies of at least two insurance companies in the same line of business. The earlier draft that was published on 31 March, in an attempt to usher in an open architecture, made it mandatory for the corporate agents to tie up with a maximum of three insurers and a minimum of two insurers. Corporate agents are entities such as banks that sell insurance policies for insurers. Up until now, corporate agents have followed a tied agency model, which allows them to sell insurance policies of only one insurer from the same line of business. The earlier draft guideline, which sought to end the monopoly arrangement of insurance companies with banks, was welcomed by insurance companies that are not promoted by any banks and rely largely on the agency channel. Because banks have a captive customer base and ready infrastructure, it is cheaper for insurance companies to use banks as corporate agents than the agency channel. In fact, this is one reason why bank-promoted insurers with a ready-made bancassurance channel were able to adjust to the recent spate of regulatory reforms relatively quickly, while others grappled with high rates of agent dropout. The draft guidelines didn’t go down well with the bank-promoted insurance companies as it meant they would have to give up their India Newsletter • 9

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monopoly. However, the new guidelines state that the corporate agents, instead of having tie-ups with a minimum of two insurers may now choose from one to a maximum of three insurers in any particular line of insurance business. The new draft has also relaxed certain other limits on the way corporate agents can conduct business. According to the previous draft, in the first year of operation, corporate agents can conduct up to 90% of the business (premium collection) from any one insurer in the same line of business, and the remaining 10% from two other insurers. This limit will come down to 75% in the second year and 60%

in the third. From the fourth year onwards, the draft proposed that no corporate agent would place more than 50% of its business with any one insurer. The new draft completely removes the proposed caps. “Instead, the corporate agent shall file, at the time of seeking registration, with the authority (Irda) a board-approved policy on the manner of soliciting and servicing insurance products,” said the amended draft. “The policy, amongst others, shall include the approach to be followed by the corporate agent in having single or multiple tie-ups, the partners in the tie-ups, the business

mix, the type of products sold, grievance redressal mechanism and reporting requirements,” it added. This may, however, mean that banks would continue with their tied arrangements. “The new draft does give more flexibility and it’s likely that certain evolved corporate agents that don’t want to become brokers because it’s cumbersome may want to tie up with more than one insurance company. However, I don’t think banks will open up as they wouldn’t want to get into selling third-party products too much,” said Kapil Mehta, executive director, SecureNow Insurance Broker Pvt. Ltd.

INDIAN EMBASSY LIBRARY EMBASSY’S LIBRARY ■■ The Embassy’s library is opened daily from 10am to 1pm without appointment. ■■ Our collection contains more than 2000 titles in dozens of categories. ■■ For scheduling an appointment outside the opening hours or to inquiry on a book or topic of interest in our collection, please contact the information assistant under infoasstt@ indianembassy.at or 01 505 8666 33 ■■ Download our latest catalog of books under http://indianembassy.at/pdf/ EmbassyLibrary.pdf

INDIA PERSPECTIVES MAGAZINE ONLINE

www.magzter.com/publishers/meaindia

10 • India Newsletter

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MAKE IN INDIA Summary ■■ 10.5% rate of market expansion between 2007-12. ■■ USD 4.9 Billion of exports in 2013-14. ■■ 14.8% yearly increase in exports in the last 8 years. ■■ USD 24 Billion-sized industry in 2012-13.

Reasons to Invest ■■ Market-oriented reforms, such as the target of ‘Power for All’ and plans to add 88.5 GW of capacity by 2017 and 93 GW by 2022. ■■ Incentives for capacity addition in power generation will increase the demand for electrical machinery. ■■ Indian manufacturers are becoming more competitive with respect to their product designs, manufacturing and testing facilities. ■■ A large pool of human resources and advancements in technologies. ■■ Increasing scope for direct exports to neighbouring countries. ■■ Investments in research and development in the electrical machinery industry are amongst the largest in India’s corporate sector.

Statistics ■■ Estimated output by 2022 is USD 100 Billion. ■■ The electrical equipment industry was worth USD 24 Billion in 2012-13. ■■ The market expanded at a CAGR of 10.5% over 2007-12. ■■ During the last 8 years, exports have increased at a CAGR of 14.8% to touch USD 4.9 Billion in 2013-14.

Growth Drivers ■■ Capacity creation in sectors such as infrastructure, power, mining, oil and gas, refinery, steel, automotive and consumer durables are driving demand in the engineering sector.

■■ Nuclear capacity expansion will provide significant business opportunities to the electrical machinery industry.

■■ TARIFFS & CUSTOM DUTIES :

■■ Rapid increases in infrastructure investment and industrial production will fuel further growth.

present whereas transmission and

■■ A comparative advantage in terms of manufacturing costs, market knowledge, technology and creativity.

FDI Policy ■■ 100% FDI is allowed under the automatic route in the electrical machinery sector, subject to all applicable regulations and laws.

■■ The customs duty on power generation equipment is 5% at distribution

equipment

attracts

7.5% customs duty. ■■ INITIATIVES

INCREASE

POWER GENERATION : ■■ With planned capacity addition of 88.5 GW projected at the end of 2017 through the Accelerated Power Development

Reform

Program,

the government plans to provide reliable, affordable and quality power to all.

Sector Policy

■■ NATIONAL

ELECTRICITY

■■ DE-LICENSING :

POLICY (NEP) :

■■ The electrical machinery industry has been de-licensed.

■■ The government aims to achieve

■■ This has facilitated the entry of global majors into the electrical machinery industry in India.

of 1,000 kWh through its mission

per capita electricity consumption under NEP. India Newsletter • 11

Embassy of India, Vienna

■■ VISION INDIAN

2O22

FOR

ELECTRIC

THE

MACHINERY

EQUIPMENT INDUSTRY : ■■ To make India the country of choice for the production of electrical equipment and reach an output of USD 100 Billion by balancing exports and imports. ■■ Areas of focus include technology and R&D, the lowering of customs duties on a range of equipment, the setting up of t he Electrical Equipment

Skill

Development

Council (EESDC), the establishment of electrical equipment industry clusters;

the

enhancement

250 Million which is acquired and installed during any previous year ending on 31.3.2017.

■■ AREAS BASED INCENTIVES :

■■ TAX INCENTIVES :

the setting up of projects in special

R&D Incentives: industry/private sponsored research programmes

areas such as the North-east, Jammu

■■ A weighted tax deduction is given under Section 35 (2AA) of the Income Tax Act. A weighted deduction of 200% is granted to assesses for any sum paid to a national laboratory, university or institute of technology, or specified persons with a specific direction, provided the said sum is used for scientific research within a program approved by the prescribed authority.

Uttarakhand.

■■ Incentives for units in SEZ/NIMZ as specified in respective Acts or

& Kashmir, Himachal Pradesh &

Investment Opportunities ■■ GENERATION

MACHINERY:

BOILERS, TURBINES, GENERATORS ■■ By

2022,

the

generation

equipment industry in India is projected to grow to USD 25-30 Billion. The industry is sized at USD 6.7 Billion in 2012-13. ■■ TRANSMISSION MACHINERY:

■■ COMPANIES ENGAGED IN MANUFACTURE HAVING AN INHOUSE R&D CENTRE :

■■ By 2022, the T&D equipment

Billion in 2012-13.

Any of the following two deductions

■■ A weighted tax deduction of 200% under Section 35 (2AB) of the Income Tax Act for both capital and revenue expenditure incurred on scientific research and development. (Expenditure on land and buildings are not eligible for deduction).

can be availed:

■■ STATE INCENTIVES :

■■ Alstom (France)

■■ Apart from the above, each state in India offers additional incentives for industrial projects. Incentives are in areas like subsidised land cost, relaxation in stamp duty, exemption on the sale/lease of land, power tariff incentives, a concessional rate of interest on loans, investment subsidies/tax incentives, backward areas subsidies, special incentive packages for mega projects, etc.

■■ Toshiba (Japan)

product-testing infrastructure in the country; an increase of shares in the export market and financial support.

Financial Support ■■ KEY PROVISIONS OF THE 2O142O15 UNION BUDGET :

■■ Investment

allowances

(additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1 Billion in plant and machinery acquired and installed between 01.04.2013 and 31.03.2015 provided the aggregate amount of investment in the new plant and machinery during the said period exceeds INR 1 Billion.

market in India is expected to grow to USD 70-75 Billion from USD 17.3

Foreign Investors ■■ MHI (Japan) ■■ Hitachi (Japan) ■■ Babcock (UK)

■■ Ansaldo (Italy) ■■ Colfax Corporation (USA) ■■ Schneider Electric (France) ■■ Legrand (France) ■■ GE (USA)

Agencies for Contact ■■ The

Department

Heavy

■■ EXPORT INCENTIVES :

Industries, The Ministry of Heavy Industries & Public Enterprises

fillip to companies engaged in

■■ Export promotion capital goods scheme.

the manufacture of an article or

■■ Duty remission scheme.

Electrical

thing, the said benefit of additional

■■ Focus product scheme, special focus product scheme, focus market scheme.

Manufacturers Association

■■ In order to provide a further

deduction of 15% of the cost of new plant and machinery, exceeding INR 12 • India Newsletter

■■ Industry

associations, and

Indian

Electronics

■■ Engineering Export Promotion Council

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PERSPECTIVES ON INDIA Brand India Pharma: Double digit growth expected in 2015-16 by Ravi Capoor, IAS, CEO, IBEF India. ndia has emerged as a strong force in the global pharmaceutical industry over the past decade. Factors like a strong export base (with over half of India’s overall pharma exports to highly regulated markets like US and Europe), cost efficient products and a huge base of technically skilled manpower have made India the preferable destination for manufacturing pharmaceutical products. While the export growth slowed down to single digits in the past two years, industry estimates suggests that the industry is expected to bounce back and achieve 10-15 per cent growth during the current fiscal. With several medicines going off patent, strengthening dollar and access to new markets in Asia, the industry is expecting to clock strong double digit growth in exports in 2015-16. In addition, factors like increased focus of Indian drug makers on complex and high value generics and growing acceptance to Indian generics in key new markets like Japan backed by an anticipated increase in the US Food & Drug Administration (FDA) approvals. Pharmaceutical exports from India stood at Rs 95,000 crore (US$ 15 billion) in 2014-15 registering a growth of 5 per cent. Challenges like delayed regulatory approvals, price erosion due to increased global competition, slow growth in the North American market and currency devaluations and geopolitical uncertainties in certain countries like Russia, Ukraine, Venezuela and Brazil impacted the growth of Indian pharma industry over the past couple of years. With major Indian companies like Dr Reddy’s Laboratories, Lupin, Sun Pharma, Glenmark and Aurobindo

Pharma planning to launch several complex generics and waiting for global regulatory approvals, the industry is expecting the industry growth to improve significantly in the current financial year. India Brand Equity Foundation (IBEF) has been working closely with key industry stakeholders like the Pharmaceutical Export Promotion Council of India (Pharmexcil) since 2012 leading the Brand India Pharma campaign to build a positive perception about Indian pharmaceutical products. Working with a 360-degree strategy, the campaign has already garnered strong positive reactions towards Indian pharmaceuticals over past few years. The new opportunities backed by the strong product pipeline are expected to put the industry back on the high growth track in the current financial year.

India is one of the best places right now to start a new business by Amarjit Singh Batra, CEO, OLX. ndia has seen a lot of action in the internet space in the recent years with many first generation start-ups gaining popularity among the consumers. Online classifieds company like OLX has already broken the ice and is one of the most popular names in the industry. Amarjit Singh Batra, CEO, OLX shares his thoughts on the industry and his new venture in an exclusive interview with IBEF. Edited excerpts: You have been a serial entrepreneur in India. What is your view on the current start-up ecosystem in India? India is one of the best places right now to start a new business. Almost all the factors are supporting the growth of new ventures and keeping in mind the strong growth potential of the domestic economy, there will be many more new companies that will emerge in the near future.

Can you explain the thought process behind starting OLX? Our research showed that people the typical SEC A and SEC B consumer wanting a platform to sell their goods. Our database shows profiles of many OLX consumers who have moved to a bigger metro for a job but don’t want to spend lakhs setting up their homes. These people want to gradually move towards acquiring branded products and find it easier to come to our website first and later - if they still wish - go to other online or offline stores. We also realised that buying from and selling to unknown people was a non-existent concept in India unlike in the West where online second-hand goods websites could have been spurred by the fact that consumers were used to the conventional “garage sales”. Now with rising disposable incomes and with the market opening up, people want instant gratification by shopping regularly and upgrading to better products within months. As a company we have capitalised on this change in the market. You have already gained a sizeable user base. How do you plan to monetise your venture? In our space, monetiasation is no rocket science. We can do it by pushing the premium listings on the top and by placing ads on the website. We plan to do both in order to increase our revenue..

India: Ecommerce industry to reach US$ 300 billion by 2030 by Ravi Capoor, IAS, CEO, IBEF India. India has seen a dramatic shift towards acceptance and rise of the ecommerce industry in India over the past few years. Be it the introduction of options like Cash on Delivery or the groundbreaking out-of-the-box efforts of companies like Flipkart, Snapdeal, India Newsletter • 13

Embassy of India, Vienna

Myntra, Jabong etc to establish their presence in the domestic ecommerce market, the number of first generation entrepreneurial ventures operating in the industry has seen a phenomenal jump over the past few years. At the same time, global giants like eBay, Amazon etc are leaving no stone unturned to gain substantial market share while the market is still in its early days. According to a recent report by Goldman Sachs, the domestic e-commerce market is expected to account for around 2.5 per cent of India’s GDP by 2030, growing 15 times and reaching US$ 300 billion. The report further added that the current market size of e-commerce industry in India is around US$ 20 billion and factors like hyper growth in affordable smartphones, improving infrastructure, and a propensity to transact online are the key factors for the bullish projections for the domestic industry. “Further, India’s attractive demographics – the youngest population in the world – should lead to over 300 million new online shoppers in the next 15 years, making e-tailing the largest online segment,” the report said. It is interesting to note that close to currently 60 per cent of e-commerce transactions in India take place through the cash-on-delivery mode but the payment landscape is evolving fast with the launch of digital wallets and payment banks. Segments like online travel, digital advertising market and electronic payments have the potential to catalyse domestic companies into multi-billion dollar businesses. In fact, India is expected to have the second largest digital population in the world with 1 billion users by 2030, largely powered by the increasing online mobile penetration. “India has enough spectrum and telecom infrastructure to provide 3G data coverage to 25-30 per cent of the population,” the report pointed out and further mentioned that the “3G-enabled smart phones are available for US$ 40 with more than 900 phones launches last year.” 14 • India Newsletter

With a private funding of over US$ 6 billion in 2014 alone, the industry is expected to witness a significant inflow of foreign funding in the sector in the coming years.

Ushering in the smart revolution by Ravi Capoor, IAS, CEO, IBEF India. conomic growth across sectors and rising opportunities are driving an urbanisation boom across the country. A report by consultancy firm McKinsey & Company has predicted that this surge in urbanisation is expected to give rise to 15 additional metropolitan cities by 2025. The 69 metropolitan cities of India along with their hinterlands, are expected to contribute over 50 per cent of the country’s incremental GDP between 2012 and 2025. It is also projected that urban India will account for around 75 per cent of the country’s GDP in the next 15 years. While the rapidly accelerating urbanisation of India presents a heartening portrayal of development, it also presents challenges of sustainability in the future, in terms of how cities manage the growth in population and the associated complexities and provide quality standards of living for their residents. The Government of India has initiated two visionary programmes to address this challenge in the coming years - the 100 Smart Cities project and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Last week, the Union Cabinet approved funding of almost Rs 1 trillion for both these projects. While the Smart Cities project will get a funding of Rs 480 billion over a period of five years, AMRUT will be getting funds amounting to Rs 500 billion. The Smart Cities program envisions building 100 smart cities in India, a commitment made by Prime Minister of India Mr Narendra Modi last year. It aims to ensure sustainable urbanisation in the country by taking the advantages of a low

base and the latest information and communication (ICT) technologies. A smart city is defined as one that provides investment opportunities, employment opportunities and quality of life to their residents. The four pillars of smart cities are institutional infrastructure, physical infrastructure, social infrastructure and economic infrastructure. Some of the means that will enable India to make its cities smarter are energy efficiency through smart grids, Internet of Things, demand management, improving citizen access to information, taking targeted measures to reduce pollution, leveraging clean technologies, building world class health and education infrastructure, etc. The cities to be assisted will be selected through a City Challenge Competition that will assess them for their abilities to fulfil the objectives of the programme. These cities will be provided funding of Rs 100 crore per year for a period of five years, while additional funds are mooted from states, urban local bodies and the private sector. In fact, the city’s ability to raise further funds and implement projects will be critical to its selection. A special purpose vehicle will be formed for each city. AMRUT will cover 500 additional cities, each with a population of over 1 lakh. These cities will be selected by the central government in consultation with state governments. The smart cities initiative is witnessing a lot of interest from corporations like ZTEsoft (subsidiary of ZTE Corp), NEC India, Essel Group Cisco, IBM, 3M, EMC, GE, Honeywell, Otis, Timten and Louis Berger as well as countries across the globe including Japan, Singapore, US, Germany, Spain and EU. Due to the approach and commitment of various stakeholders to this project, India looks set to step into an era of smart urbanisation that will ensure a better quality of life to its rapidly urbanising population for years to come.

www.indianembassy.at

INDIAN TRADE FAIRS 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 marketingofficer@ indianembassy.at to get more information about possible assistance/subsidies.

India Newsletter â&#x20AC;˘ 15

Embassy of India, Vienna

16 â&#x20AC;˘ India Newsletter

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India Newsletter â&#x20AC;˘ 17

Embassy of India, Vienna

2nd India-Central Europe Business Forum

he first edition of ICEBF attracted over 100 official and business delegates from 14 Central European countries. Over 200 Indian industry representatives had detailed business engagements with their CE counterparts. The forum established itself as an institutionalized platform to promote multifaceted engagements with promising Central European economies. Technological excellence, new innovations across sectors coupled with highly skilled workforce in CE countries is optimally matched by a fast transforming and resurgent Indian economy. The second edition of the Forum is a continued endeavour for accelerating economic ties between India & CE countries for mutual gains in the years to come.

PROGRAME

Ministry of External Affairs Government of India

India-Central Europe Business Forum 5-6 October 2015

The Lalit Ashok I Kumara Krupa High Grounds, Bangalore-560001 Defining new paradigms of cooperation

Identify, expedite and conceptualize partnerships in new areas

Rediscovering Economic Complementarities

CONCEPT

Monday, 5 October 2015

There is a felt need for institutionalizing the proposed engagement(s) by extending a platform to provide:

Inaugural n

n Strategic collaborations between Indian and Central European economies;

Partner n

Session

Country Session

Sectoral n

Sessions

Networking n

Evening

n Hands on understanding of business opportunities existing in both regions n Building new partnerships and strengthening existing ones

The forum will focus on India's multifaceted engagements with Central European economies in a calibrated and structured format. Under the over-arching effort, entrepreneurs of large, small and medium enterprises would delve deep into the ways and means for enhancing collaborations in the field of technology transfer, research & innovation and skill development.

Tuesday, 6 October 2015

Focus sectors

Partner n

IT & ITES; Services; Urban Infrastructure; Clean & Green technologies; Life Sciences; Pharmaceutical; Environmental technologies; R&D; Agri & Food Processing; Auto & Auto Components and Tourism, to mention a few.

State Session

Sectoral n

Sessions

B2B Meetings n

Highlights of 2nd India-CE Business Forum 2 days business forum

Sectoral sessions

B2B meetings

Partner country session

Networking evening

The Forum invites participation from CE and India of: n Business

n Senior

leaders

n Key policy

Managers

n Representatives

of the state and regional Governments

n CEOs

makers

n Senior

representatives of investment promotion agencies

n Senior

representatives of Chambers of Commerce and Industry

n Representatives

of Think-Tanks, thought leaders and entrepreneurs from SMEs sector

n Representatives

of sectoral organizations (Govt & private)

Rohit Sharma

Contact: 18 â&#x20AC;˘ India Newsletter

Additional Director Email: rohit.sharma@ficci.com Tel: +91-11-23487447

Gaurav Vats

Joint Director Email: gaurav.vats@ficci.com; Tel: +91-11-23487288

www.icebf.in

www.indianembassy.at

INVEST INDIA Federation House, Tansen Marg New Delhi—110 001 0091-11-23765085, 23487278 investindia@ficci.com www.investindia.gov.in

nvest India is the country’s official agency dedicated to investment promotion and facilitation. Set up as a joint venture between FICCI (51% equity), DIPP (35% equity held by the Department of Industrial

policy and Promotion, Ministry of Commerce & Industry) and State Governments of India (0.5% each), its mandate is to become the first reference point for the global investment community. It provides granulated, sectorspecific and state-specific information to a foreign investor, assists in expediting regulatory approvals, and offers hand-holding services. Its mandate also includes assisting Indian investors make informed choices about investment opportunities overseas.

India Newsletter • 19

Embassy of India, Vienna

OVERSEAS INDIANS Fourth Meeting of the Board of Trustees India Development Foundation of Overseas Indians

he Fourth Meeting of the Board of Trustees of India Development Foundation of Overseas Indians (IDF-OI) was held on May 23, 2015 in New Delhi. The meeting was chaired by the Hon’ble Minister for Overseas Indian Affairs, Smt. Sushma Swaraj. IDFOI is a not-for-profit Trust set-up by MOIA in 2008 to serve as an avenue for overseas Indians to contribute to India’s social development efforts.

In its meeting on May 23 the Board reviewed the functioning of IDF and its Action Plan for 2015-16. It decided to enhance engagement with overseas Indians and increase the number and variety of projects. The Board revised the mandate of IDF to seek contributions from overseas Indians for the three flagship programmes of the Government of India – Namami Gange, Swachh Bharat and Swachh Vidyalaya. Previously, IDF focussed mainly on philanthropy by overseas Indians to social and development projects in India which were selected by the donors. The Board also decided that Indian Diaspora can also contribute through IDF, to projects identified by the State Governments; and projects implemented by NGOs. The participants in the Board meeting included prominent Indians and NRIs Shri Yusuff Ali, Shri Joginder Pal Sanger, Shri Subhash Jindal, Dr. B.K. Agnihotri, Shri Ashok Chowgule, Ms. Ritu Beri and Dr. Bindeshwar Pathak.

The India Development Foundation of Overseas Indians

he India Development Foundation of Overseas Indians (IDF-OI) is a not for profit Trust established

20 • India Newsletter

to serve as a credible institutional avenue to enable overseas Indians to engage in philanthropy to supplement India’s social development efforts. IDFOI channelises the philanthropic propensities and resources of the overseas Indian community into national development and social projects. The Trust has a two-tier structure comprising the Board of Trustees and the Executive Directorate. The Foundation is chaired by the Hon’ble Minister of Overseas Indian Affairs. The broad objectives of the Trust are: ■■ 1. Lead overseas Indian philanthropy into India and facilitate partnerships through single window facilitation and by building philanthropic partnerships. ■■ 2. Establish and maintain a ‘Social Capital and Philanthropy Network’ on India that can provide a list of credible institutions, projects and programmes. ■■ 3. Function as a clearing house for all philanthropy related information on India. ■■ 4. Partner with and encourage credible philanthropic organisations in the sectors that best match need based philanthropy. ■■ 5. Promote accountability and ‘good practices’ in overseas Indian philanthropy. IDF-OI is partnering with international, national and state level NGOs as well as State Governments and local self government institutions, for effective implementation. 33 NGOs (Non- Governmental Organizations who are FCRA approved by MHA) from 7 States have officially confirmed their participation to IDF- OI with their projects. These projects cover a wide gamut of activities such as skills development, local self governance, education for children, health initiatives, sustainable agriculture and livelihood creation, vocational training programmes, programmes for visually challenged and differently abled children among others. Besides these, State Govts have also confirmed their participation to IDFOI. Since 2011, IDF-OI has helped in channelizing contributions from overseas donors towards social development projects in Assam, Rajasthan and Gujarat in the areas of water conservation, rainwater harvesting, educating and mainstreaming differently abled children, women’s education and sustainable livelihood.

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TOURISM Kanha - Journey into the Heart of Things by Hugh & Colleen Gantzer. We love forests. We love the sighing oaks and high, whispering, conifers of our Himalayan home. We love the thorn-scrub forests of Gir where prides of lions recline with regal indolence; and the soaring forests of the Andamans rising like impenetrable green walls from blazing-white, surf-singing, beaches; and the dark mangrove forests of the Sunderbans where the goggle eyes of air-breathing Mud Skipper Fish glow in the damp gloom like winking Christmas-tree lights. But the forests most woven into our childhood are those of the heart of India. Here, in the unforgettable magic of our fantasies, roamed Rudyard Kipling’s Mowgli the wolfboy, and Bhaloo his mentor; and the hissing, hypnotic, Kaa the python, Sher Khan, Bagheera, and ‘Cheel the kite, (who) brings home the night, which Mang, the bat, sets free’. Legend has it that Kipling set his Jungle Books in the forests of what has now become the Kanha National Park We drive into Kanha a little after mid-day. That’s when the forest is somnolent. There’s hardly a breath to stir the leaves of the trees, there’s no sound except the impatient rat-atattat of a determined woodpecker; and there’s enough time to book a short evening round on an elephant. We don’t push ourselves to see wildlife. We’re here to unwind, relax, slow down out heart beats and breathing, let the measured rhythm of the forest embrace us, allow us quality time to discover each other all over again. So we check into our log hut raised on its short, wooden, stumps; have lunch; and then listen to the insect-strumming sounds of silence. It’s the most rejuvenating form of meditation we have ever

experienced: possibly because it’s been built into our genetic memories. We are experiencing the sights, sounds, smell, tastes and feelings that our Stone Age ancestors did when they were still sharp-sensed dwellers in the wilderness. So when we mount our elephant, and lumber into the jungle, we wear clothes that will merge with the forest, we communicate with each other by touch and slow signs, we respond to the subtle signals of our senses. That slight movement to the left is not a branch, it’s the antlers of a stag who is watching us warily. Why have the langurs, in their grey fur coats, stopped feeding in the trees, dropping leaves and nuts to the herd of chitals below? Hock! bark the grey monkeys. The spotted chitals raise their heads. An alert spotted deer calls Yip!, stamps its hoof. And then they’re off: the monkeys bounding through the tops of the trees, the herd of deer fleeing through the speckled shadows of the forest. A slight blurring of the shadows? That’s all we’ll probably see of a hunting leopard, the cause of all the panic. The light softens, sunset gilds the leaves, darkness begins to rise out of the forest floor. A family of wild pig crosses our path: a heavy mother waddling in front of her school-line of striped piglets. Their burly father turns, faces us, sharp tushes curving out of an ugly snout. “Mock not the

boar in his lair” advised Kipling’s Law of the Jungle. We plod on. An owl flies silently past, perches on a dried branch, follows our progress with large eyes on a head that swivels around like a creature from another world. We are in another world, even in our log cabin. We might see a wildlife movie if there are enough others interested. We certainly feel more hungry than we have for a long time. We have shed our worries and anxieties like dead skin; our senses have been charging us with new sensations; ever tree around us is pumping out more oxygen than a powerful air conditioner, absorbing our carbon dioxide; there is no pollution. And after dinner, when we see the moon rising above the trees and flooding a glade with silver, and we hear the jackals singing, we feel younger and more zestful than we have in a long, long, while. The next morning, after a rejuvenating night… a night in the cool privacy of a forest is like a fortifying dose of the legendary restorative chawan prash!... we’re out on a jeep ride. We’re warmly clad because the micro-climate of the forest can be unusually chill. Mist spreads like tattered, white, veils snagged on the trees and bushes. But now we notice that our vision has become sharper, our other senses keener, we are more alert. We spot wild dogs, the dholes, hunting as a team, to bring India Newsletter • 21

Embassy of India, Vienna

down a barasingha, a swamp deer, fawn. *(The barasingha are Kahna’s greatest conservation success story, up from an endangered herd of 66.)* And did we see that black rock move? We concentrate. It’s one of the rather shy and night-loving sloth bears. Not many visitors have seen them in Kanha. We find ourselves enjoying the smaller things too: a black-and-white porcupine, rustling its quiver of spines; a mongoose scuttling hunch-backed like Grouch Marx; a brilliantly-plumaged jungle

22 • India Newsletter

cock lording it over his hardworking, dowdy, hens. Suddenly, our driver stops, leans down to peer at the damp jungle path: there, very clearly, are the pug marks of a tiger. Our hearts thump, our adrenalin pumps, our breaths shorten, we experience the sort of buzz we last felt when we were very young and saw an object of intense desire. At that moment, in fact, our bodies have become very young, burning up hidden reserves of energy to answer a stimulating challenge.

And then we see it. Rising from the bushes where it had been resting, a tiger gets to its feet. We hold our breaths, go closer. Instinctively, the acrid taste of danger floods into our mouths. The tiger turns, snarls and swiftly, like an elongated streak of tawny stripes, it leaps into the jungle leaving only the searing memory of our wild encounter. It has also have left a long-lasting impact on our well-being. We have tapped the vitality of the very heart of things, in Kanha.

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REPORT ON PAST EVENTS “Business Networking Seminar” with the member companies of International Chamber of Commerce (ICC) Embassy of India Vienna and the International Chamber of Commerce, Vienna in cooperation with M/S Rodl & Partner, organized a “Business Networking Seminar” at the Embassy Business Centre on 20th May 2015. The member companies of ICC participated in the event. Ms. Doris Feichtl from ICC Vienna was in charge of all the organization from their part.

Ambassador, Mr. Rajiva Misra, welcomed the guests and explained the huge potential for investing in the emerging economic market situation of India in the wake of the “Make-in-India” initiative: in the ‘education’ sector the population being “young” and in the ‘governance’ attuned to the IT/ITES development in order to simplify the business procedures. Dr. Burger-Scheidlin Maximillian, manager of ICC expressed his appreciation of the new developments taking place in India and extended his support. He spoke of the measures to be taken for the mutually beneficial

investment programs and for the maximum economic development, which would in turn reduce the negative elements of corruption, bureaucracy, etc. The companies, mainly doing business in India, though happy about their businesses in India, but also have voiced out the difficulties they faced/facing, mainly in the delay in getting permissions to do businesses (esp. in tenders) and problems due to the complex tax system, for which Ambassador requested them to approach the Embassy, Mr. T.K. Mishra, the Commercial Representative, for assistance, if needed.

India Newsletter • 23

Embassy of India, Vienna

INDIAN MOVIE EVENING AT THE EMBASSY 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, via email under maoffice.vienna@ mea.gov.in

The Royal Misfit - Khoobsurat ■■ Synopsis: Khoobsurat is a quirky, modern romantic comedy about what happens when a vibrant, hopelessly romantic

physiotherapist

meets

handsome young Rajput prince who is the complete opposite of her and is engaged to someone else. It is a battle of values between two individually crazy families one that encourages discipline and self - restraint versus the other, which is all for spontaneity and open mindedness. Khoobsurat looks at universal themes: being able to love and respect yourself; and having to fight for the things you really want. ■■ Genre: Comedy/Romance ■■ Directed by: Shashanka Ghosh ■■ Starring:

Sonam Kapoor, Fawad

Khan, Ashok Banthia ■■ Released: 2014 ■■ Duration: 130 Minutes ■■ Language: Hindi ■■ Subtitles: ENGLISH ■■ Image Quality: Standard

Showtime June 26th, 17:30 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) 24 • India Newsletter

www.indianembassy.at

INDIAN EVENTS IN AUSTRIA Yoga Dance Festival 60 Workshops, 3 Abendkonzerten, Barfusstanz mit DJ Christoph, Mantras, Meditation, Trommeln, veganen und vegetarischen Speisen, World Food und bunten Marktständen erhebt sich das YogaDanceFestival rund um den malerischen See. Das YogaDanceFestival verbindet meditative Einkehr mit expressiver Bewegungslust – Erfahrungen, die euch bereichern: entspannt, inspiriert und lebendig. Sommer, Sonne, Se(e)ligkeit – lasst uns gemeinsam dabei sein in dieser malerischen Umgebung am See. Date: 7-9. August 2015 Place: Am Gelände des HB1 Seehotel Böck-Brunn, Wienerstraße 196, 2345 Brunn am Gebirge For detailed informations please visit: http://www.YogaDanceFestival.at

INTERNATIONALER TAG DES INTERNATIONAL DAY OF YOGA

YOGA WO: VOTIV PARK, WIEN WANN: SONNTAG, 21.JUNI 2015 VON 9.30 BIS 11:30 UHR

INTERNATIONALER TAG DES Alle sind willkomen. Eintritt ist gratis.

YOGA WO: VOTIV PARK, WIEN WANN: SONNTAG, 21.JUNI 2015 VON 9.30 BIS 11:30 UHR Alle sind willkomen. Eintritt ist gratis.

Für weitere Informationen (sowie Programm-Updates bei Schlechtwetter) besuchen Sie: India Newsletter • 25

Embassy of India, Vienna

NOTICE BOARD EMBASSY’S LIBRARY ■■ The EMBASSY’S library is opened DAILY from 10am to 1pm without appointment. ■■ For a complete list of books available in our library, visit our website www.indianembassy.at ■■ For scheduling an appointment outside the opening hours, please contact the information assistant under info.vienna@mea.gov.in or 01 505 8666 33

BUSINESS CENTRE ■■ The EMBASSY’S Business Centre is opened DAILY from 10am to 1pm. ■■ For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below. ■■ Marketing Officer: maoffice.vienna@mea.gov.in or 01 505 8666 30 ■■ Marketing Assistant: comm.vienna@mea.gov.in or 01 505 8666 31

STUDENTS WELFARE OFFICER ■■ Mr. Pawan T. Badhe, Second Secretary in this Embassy has been designated as Officer to look after welfare of Indian Students in Austria and Montenegro. ■■ His contact details are: 0043 1 505 866 15 and pol.vienna@mea.gov.in

MINISTRY OF EXTERNAL AFFAIRS GOES MOBILE ■■ Avail services : passport, visa, consular assistance ■■ Ask your Minister : on the go, anytime, anywhere ■■ Follow your PM : on his visits abroad ■■ Find the nearest Indian Mission/Post : for emergency consular assistance ■■ Be informed : about India’s Foreign Relations on the move and form your own opinions ■■ Know more : about how to undertake Kailash Manasarovar Yatra and Haj Pilgrimage ■■ Download and watch : pictures & documentaries on India ■■ Play and Personalize : what you need, when you need ■■ Share and contribute : your views, pics & suggestions

Ministry of External Affairs proudly presents “MEAIndia” – an integrated smart app for mobile and other hand held devices ‘MEAIndia’ is now available for download on App Store and Google Play Store..

FACEBOOK & TWITTER ■■ Our Facebook and Twitter pages target the India-Austria community and covers subjects such as Business, Culture, Embassy News, India-related events and programmes in Austria, and much more. ■■ We have reached the 9000 followers mark on Facebook! ■■ ‘Like’ our facebook page and be the first to know!

www.facebook.com/IndiaInAustria www.twitter.com/IndiaInAustria 26 • India Newsletter