India newsletter 11 2014

INDIA NEWSLETTER www.indianembassy.at

Published by the Embassy of India, Vienna Year 4 • Issue 47 • November 2014

MAKE IN INDIA AUTOMOBILES India Newsletter • 1

Embassy of India, Vienna

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

01

The eight scheduled airlines of India

06

India, the world’s second-biggest

12

India is the most bullish consumer

market globally, according

together carried 5.93 million

cotton producer, is expected

passengers in October 2014,

to harvest a record 40 million

to

an increase of 18.3 per cent

bales of cotton fibre in 2014-

Consumer

over the 5.01 million in the

15 crop year.n

same month of last year..n

07

02

India’s engineering and research and

Information technology (IT)

expenditure

by

India

is

development (ER&D) export

projected at US$ 73.3 billion

revenues are expected to

in 2015, a growth of 9.4 per

reach US$ 37-45 billion by 2020, from an estimated US$ 12.4 billion in FY 14.n

03

ore

India’s domestic production of iron

reached

77

million

tonnes (MT) between April and

September

2014,

a

growth of 10 per cent yearon-year.n

04

IT spending by the Government of

India is expected to reach US$ 7.2 billion in 2015, a growth of 5 per cent year-

cent year on year.n

08

Domestic air traffic increased by a

Global

Confidence

Index.n

13

The number of product and digital

start-ups in India is expected to rise from 3,100 to about 11,500 by 2020.n

14

D o m e s t i c production of sugar

is estimated at around 25.04 million tonnes (MT) during 2014-15 as compared to

year in September 2014,

a provisional estimate of

with airlines carrying 5.82

24.55 MT during 2013-14.n

million passengers during

15

the month.n

09

India had around 243 million Internet

users in June 2014, with a growth rate of 40 per cent.n

10

Merger and acquisitions (M&A)

on-year.n

05

4.7 billion (203 deals) during

to be the world’s third

Nielsen

record 28 per cent year-on-

in India were valued at US$

The Indian aviation market is projected

The

July-September 2014.n

11

Hiring sentiment in India is expected to

The exchange

foreign (Forex)

reserves of India grew by US$ 495.5 million for the week ended October 24, 2014, to reach US$ 314.18 billion.n

16

The HSBC Purchasing Managers’ Index

rose to 51.6 points in October 2014 from 50 in September 2014,

which

indicates

expansion.n

17

Foreign (Forex)

exchange reserves

fastest-rising

market

by

2034,

number

of

improve in the second half

additional passengers per

of 2014-15, with 88 per cent

billion for the week ended

annum projected to increase

employers willing to hire

October 31, 2014, to reach

to 266 million by that year.n

more people.n

US$ 315.91 billion.n

with

of India grew by US$ 1.73

India Newsletter • 3

Embassy of India, Vienna

NEWS ARTICLES India’s GDP to grow 5.6% this fiscal

T

he World Bank said India’s GDP is likely to expand by 5.6 percent this fiscal.

The World Bank’s“India Development Update” released here said: “India’s economic growth is expected to rise to 5.6 percent in FY15, followed by further acceleration to 6.4 percent and 7 percent in FY 2016 and FY 2017.”

It said identifying the goods and services tax (GST) as the most important economic reform that the new government should undertake for faster growth.

It added: “Implementing the GST will transform India into a common market, eliminate inefficient tax cascading, and go a long way in boosting the manufacturing sector.”

It said that dismantling inter-state check posts by implementing the indirect tax reform will help India grow faster.

The bank said: “High variability and unpredictability in shipments add to total logistics costs in the form of higher than optimal buffer stocks and lost sales, pushing logistics costs in India to 2-3 times international benchmarks.”

Denis Medvedev, Senior Country Economist, World Bank, India said: “The transformational impact of reform, particularly if enhanced by a systematic dismantling of interstate check posts, can dramatically boost competitiveness and help offset both domestic and external risks to the outlook.”

Onno Ruhl, World Bank country director in India, said: “The government’s efforts at improving the performance of the manufacturing sector will lead to more jobs for young Indian women and men.”

The projections could, however, face risks from external shocks, including financial market disruptions caused 4 • India Newsletter

by changes in monetary policy in high-income countries, slower global growth, higher oil prices, and adverse investor sentiment arising out of geo-political tensions in the Middle East and Eastern Europe, the bank said.

It said growth has rebounded significantly due to a strong industrial recovery.

The update said: “Capital flows are back, signalling growing investor confidence as inflation has moderated from double digits, exchange rate has stabilised, and financial sector stress has plateaued.”n

President Pranab Mukherjee makes strong pitch for India as investment destination

P

romoting India as an attractive destination for FDI, President Pranab Mukherjee asked Finnish investors to take optimum advantage of the ‘Make in India’ programme and promised a business-friendly environment which is “predictable, facilitatory and transparent”.

Making a strong pitch for bringing in investments, Mukherjee said India is fourth most attractive destination for Foreign Direct Investment for 2014-16 owing to easing of restrictions, growth and investor friendly atmosphere promoted by the government.

“India has emerged as one of the largest global economies and the resilience of our economy is evident from the fact that the impact of the global financial crisis has been far less severe in India than other countries,” the President said while addressing Business Meeting at Finpro, a consultancy focused on supporting the internationalisation of Finnish companies, here.

“Presently, our Foreign Direct Investment (FDI) policy is widely seen to be amongst the most liberal in the emerging economies,

allowing up to 100 per cent FDI under the automatic route in several of our sectors and activities,” he said, adding that it makes India an attractive destination for investments.

“The Indian government is committed to a business- friendly environment - impediment free, predictable, facilitatory and transparent,” he said amid concerns here over Nokia’s tax dispute with the Indian government.

“To that end, India has embarked on an ambitious ‘Make in India’ programme to make the country an investor-friendly destination by setting up single window clearances, e-Business portals and Investor Facilitation Cells. I am confident that Finnish investors shall take optimum advantage of the new policies unveiled,” he said.

Earlier in an address to the Finnish Parliament ‘Eduskunta’, Mukherjee said Finland’s technology in areas such as communications and IT, energy, shipbuilding, manufacturing, biotechnology, environment, healthcare and infrastructure services is amongst the best in the world.

“India would like to take advantage of your expertise in these areas...

The new Government in India is focused on growth and creation of employment opportunities. It is taking measures to encourage investments, revive the manufacturing sector in India, promote skills development, develop smart cities, address social issues and engage closely with partners in these areas. Business sentiments are positive and strong; it is a period of opportunity in India,” he said.

The President said Indian economy grew at 5.7 per cent during the first quarter of 2014-15.

“The strong growth performance that marked our economy in the past decade, when we grew at an

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average rate of 7.6 per cent per year, has generated keen investor interest in India. Though our GDP growth during the last two years at subfive per cent was rather subdued, it was still higher than most major economies barring China,” he said while addressing business leaders at Finpro.

Mukherjee said there are now positive signals emanating that suggest a recovery is round the corner. n

Centre relaxes norms for FDI in construction

T

he government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. It is expected the move will boost affordable housing projects and smart cities across the country.

At a Cabinet meeting chaired by Prime Minister Narendra Modi, the minimum built-up area required to attract FDI was reduced from 50,000 sq m to 20,000 sq m, while the capital requirement was decreased from $10 million to $5 million.

Also, an investor will now be allowed to exit on completion of the project or after three years from the date of final investment, whichever is earlier.

However, the government might allow repatriation of FDI or transfer of stake by one non-resident investor to another before completion of a project. Proposals in this regard will be considered by the Foreign Investment Promotion Board on a case-to-case basis.

The proposal was moved by the Department of Industrial Policy & Promotion, under the commerce ministry, to attract more foreign investment in the construction and real estate sectors.

According to an official statement, at least $5 million in FDI will have to be brought in within six months of the commencement of a project-the date of approval of the building/layout plan by the authority. Subsequent tranches

can be brought in till 10 years from the commencement of the project or before the completion of the project, whichever is earlier.

Since 2005, 100 per cent FDI through the automatic route is allowed in this sector, which includes townships, housing, commercial premises, hotels, resorts and hospitals.

Though the cap on FDI remains unchanged, the government has clarified such investment isn’t allowed in an entity engaged in, or proposing to engage in, real estate, construction of farm houses and trading in transferable development rights.

The relaxation in norms was hailed by industry. C Shekar Reddy, president of the Confederation of Real Estate Developers’ Associations of India, said now, developers could get an alternative route of funding for their projects.

“The easing of foreign direct investment rules in the construction sector will surely provide a boost to the real estate sector and go a long way in fulfilling Prime Minister Narendra Modi’s dream of creating smart cities across the country.

The permission to sell completed projects to foreign investors will help Indian real estate developers get much-needed liquidity into the system,” said Sanjay Chandra, managing director of Unitech.

DLF Executive Director Rajiv Talwar said, “Now, foreign investors will not be wary at all. With the positive announcements by the government and Reits (real estate investment trusts) coming soon, I do not think foreign players will hesitate in coming to India.”

Between 2003 and 2013, the construction development sector received about $22 billion in FDI, 11 per cent of the overall FDI into the country during this period. However, since 2012, FDI inflow into the sector has slowed drastically. In 2012-13, it fell to $1.3 billion from $3.1 billion the previous year. During the first four months of this financial year, only $167 million has flowed into this sector.

Given the shortage of land and its high cost, the relaxation in norms is expected to help attract investment in new areas and encourage the development of plots for serviced housing. It would also help create affordable housing in the country and develop smart cities, the official statement said.

In case of construction development projects, a minimum floor area of 20,000 sq m will have to be developed, while for the development of serviced plots, there is no criterion on this front.

The Indian entity investing in the project will only be allowed to sell plots for which trunk infrastructure, including roads, water supply, street lighting, drainage and sewerage, have been developed.

In completed projects, 100 per cent FDI under the automatic route is allowed for operation and management of townships, malls/ shopping complexes and business centres.

Projects using at least 60 per cent of the floor area ratio/floor space index for units of carpet area not exceeding 60 sq m will be considered affordable housing projects. For the economically weaker category, 35 per cent of the total units should be constructed with a carpet area of 2127 sq m. Such projects may have a mix of economically weaker section, low-income group, higher-category dwelling units and commercial units.

However, servant quarters along with the main unit would not be considered units for economically weaker sections/low-income groups under an affordable housing project, the statement added.

Projects committing at least 30 per cent of the total cost for lowcost affordable housing would be exempted from the minimum built-up area and capitalisation requirements, with a three-year lock-in period, Finance Minister Arun Jaitley had said in his Budget speech for 2014-15.

Akash Gupt, executive director, PricewaterhouseCoopers India, said, “Relaxation in minimum area India Newsletter • 5

Embassy of India, Vienna

and capital conditions will result in increased mergers and acquisitions and private equity investment in this space due to lower risk and better returns on smaller projects. It will also result in better developments in urban centres, where space has always been a constraint, as it was difficult to develop a 50,000 sq m project.”n

Government Committed to Remove Red Tape and Provide Single Window Clearance for Investors

S

mt. Nirmala Sitharaman, Union Minister of State (Independent Charge) for Commerce and Industry, co-chaired the Eighth Session of the India-Russia Forum on Trade and Investment in New Delhi on November 5, 2014 along with Mr. D. Rogozin, Deputy Prime Minister of the Russian Federation. Mr. Rogozin participated along with a high profile Russian delegation, including government officials and businessmen. The Indian delegation included officials from Department of Industrial Policy and Promotion, Department of Commerce, ministry of External Affairs, Department of Pharmaceuticals and business representatives from CII and FICCI. Speaking on the occasion, Smt. Nirmala Sitharaman mentioned about the long standing relationship between India and Russia and need to further strengthen the economic relation which is presently below potential.

Minister of State (Independent Charge) spoke about positive investment climate in India and also the huge investment opportunities in infrastructure, manufacturing, metallurgy, pharmaceuticals and other sectors.

She emphasized the Government of India commitment to remove red tape and providing single window clearance for the investors. India, she stated, would provide visa on arrival facility for business visitors through eighteen airports. Mrs. Sitharaman expressed the hope that the recent liberalization in FDI regime in India, including those in defence 6 • India Newsletter

and Railway sector will create new opportunities for joint ventures

by Indian and Russian countries in these areas. The Deputy Prime Minister of the Russian Federation also spoke on the occasion and stated that enhancement of the bilateral investment and trade cooperation is one of the important steps to advance qualitatively economic relations and mentioned aviation and energy sectors as potential areas.

As part of the Forum, three round table discussions on ‘Opportunities & Partnership in Infrastructure’, ‘Opportunities and Best Practices in Manufacturing’ and ‘Pharmaceuticals industry and healthcare: Potential for cooperation’ were organized. These were attended by senior government officials and industry experts from two countries.

Opportunities and issues confronting bilateral trade and investment relations in these sectors were discussed and roadmaps for enhancement of engagements in these specific sectors were suggested.

In a renewed thrust to joint manufacturing in hi-tech areas, India and Russia have developed a framework for tracking key priority projects at the Secretary level.

The sectors covered under this Joint Working Group on Priority Investment Projects include automobile, industrial and roadbuilding machinery, Chemical & Petrochemical Industry, Civil aircraft construction, fertilizers, pharmaceuticals, energy, IT, and automobiles. Another Working Group on Modernization and Industrial Cooperation also cochaired by Secretary, Industrial Policy and Promotion identified potential projects and proposals and addresses issues for its implementation. These two joint working groups met in the month of October 2014 in New Delhi under the co-Chairmanship of Sri Amitabh Kant, Secretary, Industrial Policy and Promotion and the Deputy Minister of the Russian Federation and their recommendations were presented

before the India Russia InterGovernmental Commission which also met on November 5, 2014 in New Delhi.

The India-Russia Forum on Trade & Investment was set up in 2006 with the objective to strive for stable development of Indo-Russian trade, economic and investment cooperation. The next meeting of the Forum would be held in 2015 in Russia on a mutually agreed date.n

Foreign bourses try to attract Indian firms to list overseas

F

oreign stock exchanges are trying to attract Indian companies to list on them by taking advantage of a two-year window provided by the Indian government to unlisted companies to sell shares overseas before they do so at home.

Overseas bourses like the London Stock Exchange, Tokyo Stock Exchange and the SIX Swiss Exchange have been meeting Indian firms, trying to convince them of the benefits of listing abroad. No Indian company has taken advantage of the option offered by the government in December 2013.

Executives from SIX Swiss Exchange Ltd and Tokyo Stock Exchange Inc. were in Mumbai earlier this month to meet Indian companies. Officials of London Stock Exchange Plc started meeting company representatives in India earlier this year.

The recent visit saw extensive discussions with potential issuers and companies from certain sectors showed “excellent interest levels”, said Tarun Gupta, the official SIX Swiss Exchange India representative.

“The sectors from which we get the major interest are life sciences, consumer goods-and food production in particularspeciality chemicals and industrials including auto components. There is special interest also from Indian conglomerates that have large European assets and businesses, and are looking to list those businesses separately,” he said.

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Indian companies stand to gain by listing in Switzerland, which has more than 2,000 active pension schemes managing assets of nearly $800 billion (around Rs.50 trillion today), along with family offices and ultra high networth individual investors, according to Gupta.

Data from the World Federation of Exchanges (WFE) shows that overseas listings are yet to gain traction globally and in India.

According to WFE, a total of nearly 44,000 companies are listed on 55 of the leading exchanges of the world and only 2,418-less than 6%of these entities are categorized as foreign. Only a few exchanges like Bermuda Stock Exchange, Singapore Exchange, Luxembourg Stock Exchange and New York Stock Exchange have a significant number of foreign companies listed on their platform.

Nearly 100 Indian companies have securities listed overseas, but most of these are in the form of depository receipts with the underlying equity shares listed on the domestic bourses.

A few Indian companies have shown interest in listing in the Japanese market, said Hidetoshi Nagata, head of global listings at the Tokyo Stock Exchange.

“The advantage of listing at TSE (Tokyo Stock Exchange) is that the cost for making an initial public offer is low, but liquidity is very high,” Nagata said. “The costs are low because of zero legal costs as companies do not hire lawyers for the listing process, though Indian companies will have to hire a legal team.”

Some seven companies from the technology, biotech, medical and infrastructure sectors have approached the exchange for a possible listing, according to Nagata, who declined to disclose the names of the companies.

Experts say that companies from certain sectors could benefit from listing overseas due to a better understanding and benchmarking of those business models in

developed markets compared with India.

“Some markets would be more familiar with certain sectors or industries and help with more effective price discovery. For instance, technology companies often list on the Nasdaq while there are many energy and resources companies listed in Canada,” said Bobby Parikh, chief mentor and partner at BMR and Associates Llp, a financial advisory firm.

Prior to the government relaxation, it was mandatory for companies to list in India before listing any securities overseas. Dr Reddy’s Laboratories Ltd, HDFC Bank Ltd, ICICI Bank Ltd, Infosys Ltd, Sesa Sterlite Ltd, Tata Motors Ltd and Wipro Ltd are some of the Indian entities that have listed American depository receipts on US-based exchanges.

Last year, a report by the committee headed by former whole time member of the Securities and Exchange Board of India M.S. Sahoo suggested that the government liberalize norms related to issue of depository receipts and not insist on a prior domestic listing.

“If a domestic firm finds that offshore market serves its interests better, it should have unhindered access to that market even if it amounts to export of capital. The requirement of domestic listing before accessing offshore market does not gel with the contemporary thought process and current state of the Indian economy,” Sahoo said in a phone interview.

He, however, added that there should be a complementary and competitive regime that allows for foreign firms to list in India more easily. While Indian regulations do allow foreign firms to list Indian Depository Receipts (IDRs) on domestic bourses, only one entityStandard Chartered Plc-has opted for IDRs. According to Parikh of BMR and Associates, the listing guidelines vary across the markets and one of the benefits that Indian companies can derive from an overseas listing

is that certain bourses have more flexible listing regulations relative to Indian exchanges.

SIX Swiss Exchange says that under Swiss laws, the approval process for an initial public offerings has to be completed in only four weeks, which is a far shorter time frame compared with other exchanges.

Tokyo Stock Exchange highlights the fact that Indian companies do not need to have a presence in Japan to be eligible for a listing n

Foreign Investments of $100 Billion Knocking at India’s Doors: PM Modi

P

rime Minister Narendra Modi said $100 billion (Rs. 6.1 lakh crore at 1 dollar = 61 rupees) worth of foreign investment is knocking at the doors of India and it is up to the states to lap up as much as they can.

Describing his “Make in India” initiative a “win-win” proposition, PM Modi said the foreign investors should not treat the country merely as a market, but should focus on turning it to a manufacturing hub with a view to increase the purchasing power of Indians. “$100 billion investments from Japan, China and America have applied for visa. Now it is turn of the states to capitalise on the opportunity. The roads are wide open. The states which are ready can walk away with major share,” he said while inaugurating the Global Investors’ Summit in Indore.

The meeting is being attended by industry bigwigs including Reliance Industries (RIL) chief Mukesh Ambani, Reliance ADAG’s Anil Ambani, Adani Group head Gautam Adani and Tata Group chief Cyrus Mistry.

In the last couple of months, the Prime Minister has visited Japan and the US and launched the ‘Make in India’ campaign to lure foreign investments into manufacturing sector.

“When we talk about Make in India, then we want to create confidence in the world that there is a huge India Newsletter • 7

Embassy of India, Vienna

investment possibility in India.

Please do not consider India only as a market... dump goods, sell them and make profits.”

“I tell the World, do not confine yourself to this. If India does not prosper, then its purchasing power will not increase. If India’s purchasing power do not increase, then the dream to see India as a market will remain a distant dream,” Mr Modi added.

The focus of the government, he said, is to generate employment by encouraging agriculture, manufacturing and services sector.

The Prime Minister also said states should rise above narrow political considerations on development agenda and that the Centre will extend all possible assistance to them.n

India expected to emerge biggest rice exporter in 2015

I

ndia may become the largest exporter of rice next year amid higher demand anticipated from African and Middle East countries and competitive prices.

“In calendar year 2015, India should emerge as the largest exporter of rice — both basmati and nonbasmati. From 4 million tonnes of annual export of non-basmati rice, we should be able to export 7 million tonnes,” said BV Krishna Rao, managing director of Pattabhi Agro Foods, the country’s biggest exporter of non-basmati rice.

Rao said basmati and non-basmati rice exports should be 10-11 million tonnes, a level last seen in 2012.

Surplus rice stockpiles in the country and improved methods of production have helped position India competitively in the global rice market. With the paddy harvesting season having started earlier this month, local rice prices are expected to fall further.

Indian parboiled non-basmati rice was quoted at $400 per tonne, which was $10-15 less than the rate in Thailand, giving it an edge

8 • India Newsletter

in the African market, Rao said. In the white rice export category, the Indian price at $360-370 a tonne was competitive compared with rates in Pakistan and Vietnam, he said.

The All India Rice Exporters Association, a group of basmati rice traders, said it expects outbound shipments to increase this year.

“We should see a minimum rise of 5% this year from current 4 million tonnes,” said MP Jindal, president of the association. He said orders from Saudi Arabia and Europe would begin by Diwali when harvesting picks up.

South India-based exporters of nonbasmati rice, including Pattabhi Agro, Sri Lalitha, Sarla Foods and Murli Mohan, are waiting for harvesting of paddy to start in Jharkhand, Chhattisgarh, Bihar and Tamil Nadu in the next 15-20 days.

Rice growers in Andhra Pradesh have upgraded the quality and performance of mills and rice, according to grains trade analyst Tejinder Narang.

“Ahead of the 2015 general elections in Nigeria, the government is expected to import huge quantities of rice to distribute to domestic consumer as a populist measures.

India traders are set to gain,” Narang said.

As of October 1, the central pool had 17.33 million tonnes or rice compared with a requirement of 7.2 million tonnes in buffer and strategic reserves.

“Consumers and exporters will have a lot to cheer about. Prices of rice, including basmati, will fall considerably, which will boost exports,” Narang said.

Meanwhile, basmati variety 1509 was being sold at Rs 2,525-2,725 a quintal in Punjab, compared with Rs 3,800-4,100 a quintal a year earlier, said Surinder Kumar of Shri Krishan Trading firm in Khanna mandi of Punjab.

Traders in Punjab and Haryana said that private players were waiting for prices of basmati to hit rock bottom before entering the market.n

17 Indian firms to be part of global growth companies

T

he World Economic Forum (WEF) has selected 17 Indian companies to be part of its Global Growth Companies (GGCs) in South Asia. GGCs, which represents sectors such as banking, retail, information technology, chemicals and energy, are nominated on the basis of their ability to become future global leaders.

The selected companies include 4G Identity Solutions, ANI Technologies, Avesthagen, Bandhan Financial Services, Centum Electronics, Finolex, Flipkart, Forbes Marshall, InterGlobe Enterprises, Justdial, MakeMyTrip, Nash Industries, Persistent Systems, Radikal Foods, RBL Bank, Sobha, and Transasia BioMedicals.

According to WEF, these are the region’s most dynamic and high-growth companies, and are considered trailblazers and innovators committed to improving the state of the world.

Globally, WEF has identified 370 companies as GGCs. The nominated companies share a track record of exceeding industry expectations in terms of revenue growth, promotion of innovative business practices and demonstration of leadership.

“We look forward to the active role they will play at our meeting in New Delhi, working with the region’s leaders to foster inclusive and sustainable growth,” said David Aikman, MD and head of New Champions, WEF.n

Japanese telecom giant SoftBank to invest $10 billion in India

I

n one of the biggest investment commitments from a Japanese company since Prime Minister Narendra Modi’s visit to the country, telecom giant SoftBank has pledged to invest $10 billion (over Rs. 60,000 crore) in India’s IT sector over the coming years. Japanese companies had committed an investment of $35 billion in India during Modi’s

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visit in September.

The proposed investment was committed by Softbank chairman and CEO Masayoshi Son during a meeting with telecom minister Ravi Shankar Prasad, an official statement said. “Mr Son assured the minister that SoftBank would like to invest $10 billion in India in the coming years. He placed it on record that India is the top most priority for SoftBank.”

The Japanese giant will invest about $1 billion (Rs 6,000 crore) in e-commerce major Snapdeal, sources said in Bangalore. An announcement is likely to be made. When contacted, Snapdeal termed the investment figure as “speculative”.

“CEO of SoftBank Mr Masayoshi Son met me. He expressed great optimism in India’s changed investment climate and in the leadership of Prime Minister Shri Narendra Modi,” Prasad said on Facebook.

Son met Modi later in the day.

Son, who is Japan’s richest businessman with a net worth of $19.7 billion as on April 2014, ranks 45th in Forbes’ list of the world’s most powerful people.

With a market value of $92 billion, SoftBank has operations in broadband, fixed line telecom, e-commerce, finance, media and marketing. It currently has investments in several Indian companies such as mobile ad network InMobi and messenger Hike, which is promoted by Kavin Mittal, son of Bharti Group chairman Sunil Bharti Mittal.

Son had wooed away India-born Google executive Nikesh Arora in July this year, and made him vicechairman at SoftBank.

Betting big on Indian e-commerce space, Son said the sector has the potential to touch $500 billion in the next 10 years from the current size of about $16 billion, creating more jobs.

During the interaction, Prasad highlighted India’s potential in the

field of electronics and IT. Son asked Prasad to develop a robust mobile phone infrastructure and resolve spectrum-related issues.

In 2007, SoftBank had established a subsidiary in India called Japan Telecom India Pvt Ltd. Earlier this month, SoftBank Corp signed an agreement to invest $250 million in media company Legendary Entertainment.n

Harley-Davidson expands India line up, launches 3 new models

H

arley-Davidson Motor Co. India Pvt. Ltd, the local arm of the iconic US motorcycle maker, launched three new models in the country—the Breakout, Street Glide and CVO limited edition.

The Breakout, the latest addition to the popular Softail family of motorcycles will be assembled at Harley-Davidson’s plant in Bawal, Haryana and retail at Rs16.28 lakh (ex-showroom Delhi). The Street Glide Special—a fully loaded version of the popular performance Touring model that boasts of an infotainment system, bat wing fairing with split-stream vent, dual halogen headlamp, enforcer cast aluminium wheels among other creature comforts, is priced at Rs29.70 lakh (ex-showroom Delhi).

The company also launched the Custom Vehicle Operations (CVO) motorcycles—the limited edition, hand-crafted model at Rs49.23 lakh (ex-showroom Delhi).

“Our latest offerings demonstrate Harley-Davidson’s unwavering commitment to delivering worldclass products that cater to our customers’ demands in India and reinforce our position as the leader in the premium motorcycle segment,” said Anoop Prakash, managing director at Harley-Davidson India.

Harley-Davidson India started operations in August 2009, offers 13 models in its line-up through 15 dealerships across the country.

In the six months to September, the company sold 2,307 units, an

increase of 155% over a year ago, according to the Society of Indian Automobile Manufacturers or Siam.n

Sanofi seeks India licence for world’s first dengue vaccine

A

vaccine tested against dengue with “very encouraging” results is to be submitted for licensing in India and other dengue-endemic countries next year, said a division of the French drug maker Sanofi Aventis Group.

Sanofi Pasteur, the group’s vaccine division, made the announcement after having declared the drug’s overall efficacy against dengue in the final phase III clinical trial in Latin America. The vaccine that was used in the Latin America trials is known as CYD15.

“India is part of Sanofi Pasteur’s global development strategy for dengue vaccine; the results of CYD15 are very encouraging and in line with the results of the phase III study results in Asia and the Phase II study results in India,” said Stephan Barth, country head of Sanofi Pasteur India, Sri Lanka and Nepal, in a statement issued.

“Dengue is a serious health concern in India, causing a significant but under reported burden. Over recent months, we have seen a worrying increase in cases in many parts of the country, putting a huge strain on healthcare systems,” Barth added.

The vaccine’s overall efficacy against any symptomatic dengue disease was 60.8% in children aged 9-16 years who received three doses of the vaccine, according to detailed results of clinical trials published in The New England Journal of Medicine.

The vaccine showed 95.5% protection against severe dengue and an 80.3% reduction in the risk of hospitalization. A total of 20,869 children from dengue-endemic countries including Brazil, Colombia, Mexico, Honduras and Puerto Rico participated in the study and were India Newsletter • 9

Embassy of India, Vienna

randomized to either receive three injections of the dengue vaccine or a placebo.

The results were consistent with those from an efficacy study in Asia after a 25-month active surveillance period.

Sanofi Pasteur’s phase III efficacy clinical study programme for its dengue vaccine candidate was conducted in over 31,000 participants across 10 endemic countries in Asia and Latin America.

The Asian countries include Indonesia, Malaysia, Philippines, Thailand and Vietnam.

“We are committed to supporting countries’ ambitions to significantly impact the human and economic burden of dengue through comprehensive vaccination programmes. Our goal is to help meet the World Health Organization’s (WHO) objectives to reduce dengue mortality by 50% and morbidity by 25% by 2020,” said Olivier Charmeil, president and chief executive of Sanofi Pasteur.

Dengue cases have spiked in India from more than 18,000 in 2011 to more that 74,000 cases in 2013, according to health ministry estimates. According to the WHO, 40% of the world’s population is at risk from dengue and 100 countries are endemic. There is currently no licensed dengue vaccine available, but several vaccines are in clinical or pre-clinical development.

“A dengue vaccine is terribly important, especially in India.

However, there are some reservations regarding the Sanofi vaccine as its efficacy against one of the four virus serotypes is quite poor as seen in the results. A person affected by that particular serotype could get severe dengue,” said S. Swaminathan, professor, department of biological sciences at the Birla Institute of Technology and Science in Hyderabad.

“It is the best we have, but it is not the ideal vaccine,” added Swaminathan.

Dengue is transmitted by the bite of a mosquito infected with one of four dengue virus serotypes.

10 • India Newsletter

Sanofi Pasteur is already producing the vaccine in a newly dedicated production facility in Neuville-surSaône, France, targeting to meet global demand.

A study funded by the firm says the direct medical cost to India from dengue was about $548 million per year, or about $94.85 per patient.n

Mumbai University in world top 10 for billionaire alumni

M

umbai University, it turns out, has produced more billionaires than IITs. Singapore-based research firm Wealth-X and Swiss bank UBS said in a recent report that Mumbai University ranks ninth in the world, ahead of even premium institutions such as the London School of Economics and the Massachusetts Institute of Technology, with about 12 billionaire alumni.

University of Pennsylvania led the list with 25 billionaires.

There is a difference, though. Most of the individuals in Mumbai are part of old, large business families and have inherited part of their wealth, compared to the emerging rich from the new economy such as IT and services. Some families that can trace their origins to Mumbai include the Ambanis, the Mahindras and the Piramals, among others.

“Mumbai was the industrial and financial capital for India (since British times),” said Dileep Choksi, a former managing partner of Deloitte, who now looks after the affairs of large business families through Universal Trustees.

But growing population and inadequate infrastructure is forcing businesses to shift away from Mumbai.

“This could eventually lead to a fall in the number of billionaires as money will be made elsewhere,” said Mita Dixit, family business adviser and leading researcher of Indian business families.

“Moreover, the new generation of most families are diversifying, which will take some time to grow,” said

Dixit.

Although UBS did not elaborate, some of the individuals who feature on the list include Mukesh Ambani ($23.6 billion), Anil Ambani ($6.3 billion), Kumar Mangalam Birla ($9.2 billion), Ajay Piramal ($2.1 billion), Rakesh Jhunjhunwala ($1.9 billion), Ashwin Choksi ($1.7 billion) and Niranjan Hiranandani ($1.2 billion).

According to Sunil Shah of Evergreen Family Business Advisors, the main reason for the concentration of wealth in Mumbai is that large business families work on creating growth with harmony.

And family disputes have been mainly responsible for the decline of wealth in cities such as Delhi and Kolkata.

Mumbai University is the only institution outside the US and the UK to feature in Wealth-X’s list. The Indian Institutes of Technology did not feature even in the top 20, though they are the best institutions in the country in terms of academic excellence.b

India home to 2nd largest proportion of highly paid expats in the world: report

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ndia is home to the second largest proportion of highly paid expats in the world, after China, and ranked ninth by expats looking for a wellbalanced, high-quality lifestyle, according to the seventh Expat Explorer study commissioned by HSBC Bank International Ltd. The Expat Explorer survey covered 9,288 expats from over 100 countries through an online questionnaire in April and May 2014.

China and India were followed by Switzerland, Russia and Hong Kong.

In all 18% of expats working in India draw a salary of $250,000 or more every year while 29% expats in China earn similar annual salary, according to the survey. “The proportion of expats drawing similar salaries is 17% in Switzerland and 16% each in Russia and Hong Kong,” a statement on the survey said.

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The survey, conducted by YouGov, an Internet-based market research firm, is one of the largest global surveys of expats. This year, nearly 9,300 expats from around the world shared their views on the quality of life, financial wellbeing and the ease of raising a family abroad.

According to the survey, working in India afforded expats greater disposable income, compared to their home countries, as well as greater savings on everyday expenses. Expats in India spend less on utilities (43%), groceries (42%), clothing (42%), healthcare (41%), housing (40%) and household goods (40%) than they would have at home, the survey showed.

Sectors such as telecommunication, information technology and the Internet account for 21% of total expats working in India followed by construction and engineering (19%), the survey found. In all 23% of expats working in India are from the

UK, followed by the US (14%) and Japan and Canada (7% each), the survey said.

A number of Indian telecom firms are headed by expats or have expats in senior leadership roles. These include India’s second largest telco Vodafone India Ltd, which is headed by the Netherlands-born Marten Pieters. Uninor is headed Norwayborn Morten Karlsen Sorby. Mukesh Ambani’s Reliance Jio Infocomm Ltd, which is expected to roll out high speed wireless data services soon, hired Rainer Deutschmann, a German, as its new chief products and innovation officer.

“With robust GDP growth projections, multinationals setting up shop here and Indian corporates hiring overseas talent to lead their businesses, the country will continue to offer lucrative career prospects to expatriates,” said Sanjiv Sud, head of retail banking and wealth management at HSBC India.

The age profile of expats working in India is fairly spread with 50% of them in the age bracket of 35-54 years and 43% in the range of 1834 years, the survey showed. India ranked sixth for the ease of raising children, with New Zealand topping that chart.

“The cost of living in India is not among the expensive countries in the world,” said Nishchae Suri, partner and head, people and change, KPMG India. “Apart from that there are other conveniences that significantly improve the quality and standard of life. Things like help, cars, drivers, club memberships are more easily available.”

He added: “Then there is also the multicultural experience where they get to interact with people from a wide variety of countries and cultures. Along with the growth that is happening in India all these factors do make the country an attractive destinations to work in.”

INDIA PERSPECTIVES MAGAZINE ONLINE

www.magzter.com/publishers/meaindia

India Newsletter • 11

Embassy of India, Vienna

MAKE IN INDIA - AUTOMOBILES Sectoral Snapshot ■■ Seventh-largest producer in the world with an average annual production of 17.5 Million vehicles.

■■ 4th largest automotive market by volume, by 2015.

■■ 4 large auto manufacturing hubs across the country.

■■ 7% of the country’s GDP by volume.

■■ 6 Million-plus vehicles to be sold annually, by 2020.

Reasons to Invest ■■ By 2015, India is expected to be the fourth largest automotive market by volume in the world.

■■ Over the next 20 years, India will be a part of the big global automotive triumvirate.

■■ Tractor sales in the country are expected to grow at CAGR o f 8-9% in the next five years, upping India’s market potential for international brands.

■■ Two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years. Significant opportunities exist in rural markets.

■■ India’s car market has the potential to grow to 6+ Millions units annually by 2020.

■■ The emergence of large automotive clusters in the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-NashikAurangabad in the west, ChennaiBengaluru-Hosur in the south and Jamshedpur-Kolkata in the east.

■■ Global car majors have been ramping up investments in India to cater to growing domestic

demand. These manufacturers plan to leverage India’s competitive advantage to set up export-oriented production hubs.

■■ An R&D hub: strong support from the government in the setting up of NATRiP centres. Private players such as Hyundai, Suzuki, GM are keen to set up an R&D base in India.

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■■ Tata Nano is a sterling example of Indian frugal engineering and is being positioned as a mobilizer of the young generation.

■■ Electric cars are likely to be a sizeable market segment i n the coming decade.

Statistics ■■ Domestic Market Share 2013-14: 1. Passenger Vehicles 13.59%.

2. Commercial Vehicles 3.44%.

3. Three-wheelers 2.60%.

4. Two-wheelers 80.37%.

■■ The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly.

■■ India is currently the seventhlargest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported.

■■ The Indian automobile market is estimated to become the 3rdlargest in the world by 2016 and will account for more than 5% of global vehicle sales.

■■ India is the second-largest twowheeler manufacturer, the largest

motorcycle manufacturer and the fifth largest commercial vehicle manufacturer in the world.

■■ The total turnover in 2010-11 was USD 58.5 Billion, turnover by 2016 is slated to be USD 145 Billion.

Growth Drivers ■■ Passenger vehicles are to increase at a CAGR of 16% between 2013-20.

■■ Two-wheelers and threewheelers are projected to expand at a CAGR of 9% between 2013-20.

■■ A growing working population and an expanding middle class a re expected to remain key demand drivers. GDP per capita has grown from USD 1,432.25 in 2010 to USD 1,500.76 in 2012, and is expected to reach USD 1,869.34 by 2018.

■■ India has the world’s 12th largest number of high net worth individuals, with a growth of 20.8%, the highest among the t op 12 countries.

■■ Increasing disposable incomes in the rural agri-sector.

■■ The presence of a large pool of skilled and semi-skilled workers and a strong educational system.

■■ A large number of products

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are available to consumers across various segments. With the entry of a number of foreign players and reduced overall product lifecycle, quicker product launches have become the order of the day.

■■ The availability of a variety of vehicle models meet diverse needs and preferences.

■■ Easy finance schemes, owing to which the auto finance industry has grown at the rate of 13% between 2008-13. Car finance penetration has increased from 68% to 70% between 2008-10 and between 70% to 72% in 2011-13.

■■ Favourable government policies like lower excise duties, automotive mission plans, the constitution of NATRiP etc.

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

Sector Policy ■■ AUTO POLICY: ■■ Automatic approval for foreign equity investment up to 100% with no minimum investment criteria.

■■ Manufacturing and imports in this sector are exempt from licensing and approvals.

■■ The encouragement of R&D by offering rebates on R&D expenditure.

■■ AUTOMOTIVE MISSION PLAN, 2OO6-16: ■■ To emerge as the world’s destination of choice for design and manufacture of automobiles and auto components with output reaching a level of USD 145 Billion, accounting for more than 10% of the GDP and providing additional employment to 25 Million people by 2016.

■■ The setting up of a technology modernization fund focusing on small and medium enterprises.

■■ The establishment of automotive training institutes and auto design centres, special auto parks and auto component virtual SEZs. ■■ AUTOMOTIVE MISSION PLAN

2O16-26: ■■ The Automotive Mission Plan II for the period 2016-26 is under preparation and will be finalized by mid-2015.

■■ NATIONAL AUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT (NATRIP): ■■ The project has been set up at a total cost of USD 388.5 Million to enable the industry to adopt and implement global performance standards.

■■ Focus on providing low-cost manufacturing and product development solutions.

■■ THE DEPARTMENT OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES: ■■ Working towards the reduction of excise duty on small cars and increased budgetary allocation for research and development.

■■ A weighted increase in R&D expenditure to 200% from 150% (in-house) and 175% from 125% (outsourced).

■■ THE NATIONAL MISSION FOR ELECTRIC MOBILITY 2O2O: ■■ The objective of this body is to encourage reliable, affordable and efficient xEVs (hybrid and electric vehicles) that meet consumer performance and price expectations through government-industry collaboration, for the promotion and development of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology – thereby helping India emerge as a leader in the two-wheeler and four-wheeler xEV market in the world by 2020, with total xEV sales of 6-7 Million units thus enabling the Indian automotive industry to achieve global xEV manufacturing leadership and contributing towards national fuel security.

■■ PILOT ELECTRIC VEHICLE PROJECTS: ■■ The Department of Heavy Industry is launching pilot projects on electric vehicles in Delhi and subsequently, other metros and cities all across the country under

the NEMPP 2020 with a dual purpose – demonstrating and disseminating the benefits of adopting cleaner, greener modes of transportation as also to explore the viable operational modalities.

■■ The DHI will provide viability gap funding through subvention to support the extra cost of acquisition and operation of these vehicles by state governments or designated bodies. In the first phase, a pilot project to provide last mile connectivity to the Delhi Metro through electric passenger vehicles, has been approved.

All the other states have been brought on board and different states have already appointed nodal officers to co-ordinate with DHI and vehicle manufacturers for the implementation of those pilot projects.

■■ The uptake of electric vehicles will depend in large part on the adequate deployment of Electric Vehicle Supply Equipment (EVSE) needed to recharge electric vehicles.

Financial Support ■■ TAX INCENTIVES IN THE UNION BUDGET 2O14-15: ■■ Excise duty is being exempted on parts of tractors removed from one or more factories of a tractor manufacturer to another factory of the same manufacturer.

■■ Assesses can claim one of the following deductions: 1.

Investment allowance (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 new plant and machinery during the said period exceeds INR 1 Billion.

2. In order to provide a further fillip to companies engaged in manufacturing, an additional deduction of 15% of cost of new plant and machinery is extended for investments exceeding India Newsletter • 13

Embassy of India, Vienna

INR 250 Million (acquired and installed during any previous year, until 31.3.2017).

■■ A lower rate of excise duty on automobiles provided in the interim budget has been extended, until December 2014.

■■ For small cars, motorcycles, scooters – the duty has been reduced from 12% to 8%.

■■ For commercial vehicles and SUVs – the duty has been reduced from 30% to 24%.

■■ For large and mid-segment cars – the duty has been reduced from 27% to 24% and 24% to 20% respectively.

■■ Other incentives from the Union Budget 2013–14 are as follows: ■■ The period of concession available for a specified part of electric and hybrid vehicles – April 2013, has been extended up toMarch 31, 2015.

■■ An exemption from BCD will be provided for the manufacture of lithium ion automotive battery packs for supply to manufacturers of hybrid and electric vehicles.

■■ R&D INCENTIVES: ■■ Industry/private sponsored research programs: ■■ 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 sums paid to a national laboratory, university or institute of technology, or specified persons with a specific direction, provided that the said sum is used for scientific research within a program approved by the prescribed authority.

■■ Companies engaged in the

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manufacture of an in-house R&D centre: ■■ 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).

■■ Concessional excise duty of 6% has been extended up to 31st March, 2015 for manufacturers of batteries supplying to producers of electrically operated vehicles.

■■ Exemption from basic customs duties on lithium-ion automotive batteries for manufacture of lithiumion battery packs for supply to manufacturers o f hybrid and electric vehicles.

■■ STATE INCENTIVES: ■■ Apart from the above, each state in India offers additional incentives for industrial projects.

Incentives are in areas like rebates in land cost,relaxation in stamp duty exemption on sale or 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.

■■ EXPORT INCENTIVES: ■■ Various kinds of incentives on exports are available under foreign trade policy.

■■ AREA-BASED INCENTIVES: ■■ Incentives for units in SEZ/NIMZ as specified in respective Acts or the setting up of projects in special areas like the North-east, Jammu & Kashmir, Himachal Pradesh &

Uttarakhand.

investment Opportunities ■■ Passenger vehicles: passenger cars, utility vehicles, multi-purpose vehicles.

■■ Two-wheelers: mopeds, scooters, motorcycles.

■■ Three-wheelers: passenger carriers, goods carriers.

■■ Commercial vehicles: light commercial vehicles, medium and heavy commercial vehicles.

■■ Huge demand for low-cost electric vehicles that are suited for safe short-distance urban commutes (averaging 50-100 km/trip) that are rugged enough to perform reliably through India’s summers and its monsoon. It is estimated that total electric vehicles sales would amount to 6-7 Million units by 2020.

Foreign Investors ■■ Suzuki (Japan) ■■ Nissan (Japan) ■■ Piaggio (Italy) ■■ Volkswagen (Germany) ■■ Renault (France) ■■ Hyundai (South Korea) ■■ General Motors (USA) ■■ BMW (Germany) ■■ Ford (USA) ■■ Toyota (Japan)

Agencies ■■ Department of Heavy Industries, Ministry of Heavy Industries & Public Enterprises (http://dhi.nic.in/ ) ■■ Society of Indian Automobile Manufacturers (http://www. siamindia.com/)

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PERSPECTIVES ON INDIA India: A well connected market

by Aparna Dutt Sharma, CEO, IBEF The increasing role of internet in the daily lives of Indian population is an indicator that the economy is getting ready for the technological changes in the global market. For instance, the rising internet penetration in India is expected to fuel growth of many industries, including ecommerce and telecom. Presently the internet penetration in India stands at 245 million people and is expected to reach 500 million internet users by 2017. According to a recent report

by Gartner, the ecommerce market is expected to grow 70 per cent and touch US$ 6 billion in 2015. Backed by the smartphone revolution, most leading ecommerce players in India expect 90 per cent of their sales to come from smartphones and tablets over the next few years. India is already the second largest mobile phone market with more than 930 million customers.

The Government of India is also working on an ambitious plan to create US$ 15 billion ‘Internet of Things’ (IoT) industry in the next six years. The efforts from the government are expected to lead to an increase in the connected devices to over 2.7 billion by 2020 from the current 200 million.

“Among other things, IoT can help automate solutions to problems faced by various industries like agriculture, health services, energy, security, disaster management etc. through remotely connected devices,” according to the draft IoT policy document. The draft policy document also mentions that the number of internet connected devices (12.5 billion) surpassed the number of human beings (7 billion) on the planet in 2011, and by 2020, internet connected devices are expected to reach between 26 billion and 50 billion globally.

Considering the huge consumer market and the growth opportunity available in various segments related to the internet industry, the Indian market is expected to be a well connected destination in coming years.

India: A global solution provider

by Aparna Dutt Sharma, CEO, IBEF India is fast emerging as a solution provider in the global engineering and design industry. Engineering and research and development (ER&D) export revenue from India is expected to touch US$ 37-45 billion by 2020, up from an estimated US$ 12.4 billion in 2013-14. Presently the country has over 600 local and 400 global ER&D centres employing over 200,000 engineers from service providers and engineering firms.

It is interesting to note that the scalable talent pool across diverse areas of science, technology and management along with robust academic and research infrastructure is spurring the industrial R&D activity in the country.

At a time when increasing cost pressures and demand saturation in developed economies is encouraging firms to increase ER&D spends on efficiency improvements and product localisation, the presence of a large pool of engineers and data scientists makes India an attractive destination for global corporations for offshoring their ER&D needs. Given the country’s inherent strengths in the ER&D industry, both local and international companies are expected to continue to invest in this space with a long term vision in mind.

Platinum - the new language of young India

by Aparna Dutt Sharma, CEO, IBEF With its huge size and growing

affluence, India’s youth has emerged as a major factor in the strategy playbook of marketers tapping the Indian market. One such trend that is emerging of late in this context is the rising demand for platinum jewellery.

A survey report by Platinum Guild International (PGI) suggests that the typical customer profile of platinum buyers in India is rapidly getting younger. Around 85 per cent of the consumers of platinum in India were found to be in the age group of 15 to 30 years according to the survey. Just a few years ago, the corresponding age bracket was 2540 years. Platinum jewellery is also getting popular in married woman in the 25-35 years age group, who are attracted to the delicate designs. Demand in this year for platinum is expected to grow by 20-25 per cent. The survey further reveals that platinum jewellery is now commonly being gifted on occasions including 18th birthday, completion of school education, college graduation and getting the first job. The young population of India, which is also well exposed to global trends, considers the designs of platinum jewellery to be contemporary and also cherishes its exclusivity, which makes it a strong status symbol. It is a rare metal, around 30 times rarer than gold, and its natural white colour enhances its appeal. Even for those who are not necessarily attracted to its status appeal, platinum remains highly desirable due to its worth as a stable economic asset for the present and future.

The ongoing festive season has also indicated a strong demand upsurge in platinum jewellery and retailers are already factoring this into their plans for the upcoming wedding season. Platinum seems destined for a buoyant future in the Indian jewellery market in the coming times.

India Newsletter • 15

Embassy of India, Vienna

EXPERT BUSINESS ADVICE The article below was extracted from Dezan Shira & Associates’s publication entitled “India Briefing”. For further corporate assistance, consider contacting Dezan Shira & Associates, a specialist in foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. For further details or to contact the firm, please email Mrs. Gujan Sinha under gunjan.sinha@dezshira.com or visit www.dezshira.com

Passage to India: Evaluating the Market: Key Sectors Several key growth sectors and industries make India an increasingly appealing destination for foreign companies seeking out new markets for their products and services.

While FDI caps and restrictions can impede direct access to some key business sectors in India, the incoming BJP-led government has hinted at possible changes to the country’s FDI policy—most notably in multi-brand retail, e-commerce, railways, defense, and construction.

■■ India’s Retail Sector For many foreign companies, the opportunity to capture a share of India’s rapidly growing retail sector is the most compelling reason to explore options for exporting to and investing in the country. With more than a billion potential consumers, a growing middle class, steadily rising household income, and an organized retail market valued at more than US$30 billion, India’s retail market is among the most underpenetrated and promising in Asia. According to some analyses, increasing income levels combined with moderating savings will cause India’s consumer market to quadruple over the next two decades.

Between 2010 and 2012, India’s retail industry grew at around 10 percent per year, and is expected to maintain a compound annual growth rate (CAGR) of close to 19 percent through 2015—ultimately 16 • India Newsletter

reaching a total value of US$800 billion in 2016-17. Organized retail, which currently constitutes around 8 percent of the total retail market, is expected to grow significantly faster than traditional retail and account for 20 percent of the retail market by 2020.

Within India’s retail market, food and grocery currently comprises the largest market segment at around 60 percent, followed by apparel, (8 percent), and mobile and telecom (6 percent). In organized retail, apparel dominates at 33 percent followed by food and grocery (11 percent), mobile and telecom (11 percent), and consumer electronics (8 percent).

While raising FDI caps in single and

multi-brand retail to 100 and 51 percent respectively and loosening investment restrictions have eased some barriers to market entry, reaching India’s underpenetrated rural retail market remains the ultimate challenge (and prize) for many companies.

Underdeveloped infrastructure, an overall high cost-to-serve, and unreliable payment and delivery options continue to hinder access to rural consumers. However, this may change soon. Rapidly rising internet and smartphone penetration rates across India are driving the demand for easier access to organized retail in rural areas and better options for payment systems and delivery methods.

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The Retailers Association of India (RAI) is the principal organization through which retailers in India

communicate their concerns to the government, and the India Retail Forum and IndiaRetailing.com can

serve as additional resources for companies exploring their potential in the sector.

I N D I A ’ S R E TA I L S E C T O R India Newsletter • 17

Embassy of India, Vienna

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 International Leather Fair is a 3 day event being held from 1st February to 3rd February 2015 at the Chennai Trade & Convention Centre in Chennai, India.

This event showcases products like Leather, leather products, fashion accessories, machinery and equipment, chemicals etc. in the Leather & Leather Products industry.

BioAsia seeks to enhance, enrich and encourage newer innovations, path-breaking discoveries and effective solutions in the industry by offering a vibrant global platform for convergence of the key stakeholders - Biotech & Biopharma Companies, research institutions, investors, service providers, policy makers, regulators and analysts.

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2-4 February Hyderabad

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India Newsletter • 19

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

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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

20 • India Newsletter

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.

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TOURISM Dholavira: Safe Bet

by Hugh & Colleen Gantzer It was an island of green in a sea of white.

“That’s a bet” said our guide Girish Gupta. We were in western Gujarat and had been driving on a die-straight causeway between crystalline stretches of salt-flats.

Once, many centuries ago, this had been a bay of the Arabian Sea and then environmental changes had produced these amazing saline wastes. We passed two boys digging out salt, filling it into pans and emptying it into a truck. Then, as we were about to ask if there was any fresh water in this legendary White Rann, we saw a large brown patch in the shimmering white expanse. It trembled with an uncertain liquidity much like a bowl of aspic in grated ice. Here water had welled up through the thick crust of salt and created a patch of viscous „quicksalt‟, the saline version of quicksand.

In every way this was a bizarre environment.

At the end of our journey we reached what was, reputedly, the highest, and certainly the most famous, bet of all: Dholavira. Here, 4,600 years ago, many millennia before the equestrian Indo-Iranians had filtered into our land, the oldest civilization in India had been established. No one is quite sure who these people were, or why they built this threetiered city of stone and brick, or what caused their downfall: they vanished as abruptly as they had arrived. We navigated our way past fascinating theories as we walked slowly through the Archaeological Museum.

There we met the grandson of a perceptive postmaster. The old man had suspected that there were things of great significance buried in the huge scrub-covered mound on the outskirts of his village. This, after a while, had brought in the Archaeological Survey of India and

wonderful discoveries had begun to emerge. Jewellery, toys, figurines, stone jars, terracotta bricks and seals used by exporters to identify their products, precursors of trade-marks. Also a meticulously standardized system of weights and measures many of them similar to those in contemporary West Asian civilizations. Enthused with their discovery, the archaeologists began excavations in right earnest and their amazement increased. The Dholaviran people knew how to conserve water: tapping rain and perennial streams in great reservoirs, laying an underground sewerage system. Their society was stratified into three distinct classes of rulers, overseers and workers with their separate living and working areas.

And yet, curiously, there was no evidence of an organized religion.

Class-conscious societies usually have the sanction of religious doctrine.

We trudged out of the museum, our minds resonating with ideas, trod across a dusty plain where a thorn tree framed the rising mass of Dholavira; past chittering jerbils popping our of their burrows, up flights of stone steps and ramps, across great old reservoirs and an enormous stadium, to the dominating heights of the fortified Citadel. Here, where a gentle breeze rustled the thorn-scrub and cooled us, we let our minds stretch and our imaginations flit over the many theories that re-created a past that might have been.

This had then been a humped betisland. It thrust into the edge of the densely-wooded wetlands which had evolved out of a silted bay.

Tangled rainforests had grown and a sinuous estuary had run through them offering a navigable link to the sea. Down this estuary had come ships from the kingdoms of West Asia seeking timber and other raw materials. Here, on our west coast, they had found a new land rich with

resources and, happily, a scattered native population of the same Dravidian lineage as theirs. And so Dholavira had sprung full-fledged with their imported technology similar to the trading factories of the later European civilizations along the coasts of our land.

It also established a highly stratified society with the expatriates demanding a superior lifestyle.

We interpret their surviving street sign, the world’s first, as excluding peddlers’ barrows from their Citadel.

Many of Dholavira’s export-oriented industries were furnace based and their citizens had to be fed. The dense forests were cleared for their timber and for fields and pasture-land. Over the years salinity set in, the land became unproductive. At this time, too, upheavals in the Middle East hit the Dholaviran’s principal trading partners. Then the final blow came when equestrian hordes from the steppes, pastoralists who detested urban life-styles, stormed the walled cities of Dholavirans including their satellite towns. Squatters moved in and built their circular bunga huts in the ruins.

All that was left of Dholavira was a scrub-covered mound and the memory that this lime-washed city had once been a great source of water. Girish Gupta told us that, in this area of Gujarat, water sources are so highly regarded that they are referred to as „brothers’ because they help women as lovingly as their brothers do. „Dhola” is „white; „vira” is „brother”.

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OVERSEAS INDIANS

Pravasi Bharatiya Divas Pravasi Bharatiya Divas (PBD) is celebrated on 9th January every year to mark the contribution of Overseas Indian community in the development of India. January 9 was chosen as the day to celebrate this occasion since it was on this day in 1915 that Mahatma Gandhi, the greatest Pravasi, returned to India from South Africa, led India’s freedom struggle and changed the lives of Indians forever.

PBD conventions are being held every year since 2003. These conventions provide a platform to the overseas Indian community to engage with the government and people of the land of their ancestors for mutually beneficial activities. These conventions are also very useful in networking among the overseas Indian community residing in various parts of the world and enable them to share their experiences in various fields.

During the event, individuals of exceptional merit are honoured with the prestigious Pravasi Bharatiya Samman Award to appreciate their role in India’s growth. The event also provides a forum for discussing key issues concerning the Indian Diaspora.

The Ministry of Overseas Indian Affairs The Ministry of Overseas Indian Affairs (MOIA) is an interactive ministry, dedicated to the multitude of Indian Nationals settled abroad. Established in May 2004 as the Ministry of Non-Resident Indians’ Affairs, it was renamed as the Ministry of Overseas Indian Affairs (MOIA) in September 2004. Driven by a mission of development through coalitions in a world without borders, MOIA seeks to connect the Indian Diaspora community with its motherland.

Positioned as a ‘Services’ Ministry, it provides information, partnerships and facilitations for all matters related to Overseas Indians (comprising Persons of Indian Origin (PIOs) and Non-Resident Indians (NRIs) .

The Ministry is headed by a Cabinet Minister. It has four functional service divisions to handle its diverse scope of services: ■■ Diaspora Services ■■ Financial Services ■■ Emigration Services ■■ Management Services The Ministry focuses on developing networks with and amongst Overseas Indians with the intent of building partnerships with the Diaspora.

Besides dealing with all matters relating to Overseas Indians, the Ministry is engaged in several initiatives with them for the promotion of trade and investment, emigration, education, culture, health and science & technology. Website : http://www.moia.gov.in

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 marketingofficer@ indianembassy.at

Jodhaa Akbar ■■ Synopsis: Jodhaa Akbar is the story of the greatest Mughal emperor that ruled Hindustan (now India), Jalaluddin Mohammad Akbar, and the fiery young Rajput princess, Jodhaa.

Set in the sixteenth century, this epic romance begins as a marriage of alliance between two cultures and religions, for political gain, with the Hindu King Bharmal of Amer giving his daughter’s hand to a Muslim Emperor, Akbar. When Akbar accepts the marriage proposal, little does he know that in his efforts to strengthen his relations with the Rajputs, he would in turn be embarking on a new journey - the journey of true love.

From the battlefield where the young Jalaluddin was crowned, through the conquests that won him the title of Akbar the Great (‘Akbar’ in Arabic means great), to winning the love of the beautiful Jodhaa, Jodhaa Akbar traces the impressive graph of the mighty emperor and his romance with the defiant princess.

■■ Genre: Action / Adventure ■■ Directed by: Ashutosh Gowariker ■■ Starring: Hrithik Roshan, Aishwarya Rai Bachchan, Sonu Sood ■■ Released: 2008 ■■ Duration: 213 Minutes ■■ Language: Hindi ■■ Subtitles: German ■■ Image Quality: HD

Showtime November 28th, 17:30 Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna) 24 • India Newsletter

www.indianembassy.at

INDIA IN AUSTRIA SANGAM - Kathak - Tanz und Indische Klassische Musik

Wasser, Erde, Luft, Feuer, und Äther.

Ein Abend - klangfarbenfroh und gestenreich, gefüllt mit vielfältigen Geschichten der indischen Mythologie. Fliessende Bewegungen und virtuose Beinarbeit der international bekannten Tänzerin Kaveri Sageder und ihrer Gruppe im Dialog mit den weichen Klängen der Bambusflöte gespielt von Rina Chandra, der wunderbaren Stimme von Anuradha Genrich und den spannenden Rhythmen des Tablaspielers Haider Khan. Moderation: Martha Jarolim

Kulturzentrum AKKU

Die Performance basiert auf der Verbindung der fünf Elemente

■■ Fr, 28.November 2014, 20h Färbergasse 5, 4400 Steyr.

Infos und Tickets: www.akku-steyr. com ■■ Sa, 6.Dezember 2014, 19.30 Einlass 19h Veranstaltungszentrum Mariahilf

der

VHS

Königseggasse 10, 1060 Wien Eintritt: € 15,- / € 12,- für Mitglieder von “RAGA - Verein zur Förderung der indischen Musik” Reservierung: verein.raga@gmail. com, 0650 570 69 90, www. vereinraga.com

Public Lecture on “Understanding People and Developing History as a Conversational Narrative: The Neglect and Promise of Oral History in India by Prof. Anirudh Deshpande

India Newsletter • 25

Embassy of India, Vienna

26 • India Newsletter

ErlEbE Yoga, aYurvEda und vEganEs lEbEn auf dEr ErstEn YogamEssE ÖstErrEichs



s in e h e sc ess t ) gu f m 2,s 1 u e es ng a tt € e i d u ta n ge ßig ,- s r ei a l 9 or rmä (€ ig fü on. v i E tt lt rs be 3,- ntri gü Pe € ei

www.indianembassy.at

Yogaklassen, vorträge und alles rund um Yoga und ayurveda. mehr auf www.yogaplanet.at

21.11. – 23.11.2014 im maK

online tickets auf www.yogaplanet.at € 3,- rabatt mit dem Promotioncode „enjoy“

Konzert vi mit Janin de am 21.11. / 19.30 h

India Newsletter • 27

Embassy of India, Vienna

NOTICE BOARD EMBASSY’S LIBRARY ■■ The EMBASSY’S library is opened DAILY from 10am to 1pm without appointment. NEW OPENING HOURS! ■■ For scheduling an appointment outside the opening hours, please contact the information assistant under infoasstt@indianembassy.at or 01 505 8666 33

BUSINESS CENTRE ■■ The EMBASSY’S Business Centre is opened DAILY from 10am to 1pm. NEW OPENING HOURS! ■■ For scheduling an appointment outside the opening hours, please contact the commercial wing under the contacts given below.

■■ Marketing Officer: marketingofficer@indianembassy.at or 01 505 8666 30 ■■ Marketing Assistant: marketingassistant@indianembassy.at or 01 505 8666 31

STUDENTS WELFARE OFFICER ■■ Mr. Pawan T. Badhe, Third 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 cpolitical@indianembassy.at

MINISTRY OF EXTERNAL AFFAIRS GOES MOBILE Now you can...

■■ 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 All this & much more on your smartphone 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 ■■ Our Facebook page targets 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 1700 followers mark!

■■ ‘Like’ our facebook page and be the first to know!

www.facebook.com/IndianEmbassyVienna 28 • India Newsletter