India newsletter 08 2017

INDIA NEWSLETTER

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Published by the Embassy of India, Vienna Year 7 • Issue 77 • August 2017

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NATION TAX

■■ THE NEW GOODS AND SERVICE TAX

India Newsletter • 1

Indian Embassy, Vienna

Digital Infrastructure as a Core Utility to Every Citizen

Governance

Digital

and Services on Demand

Empowerment of Citizens

The Digital India programme is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. Find out more under:

www.digitalindia.gov.in

Infrastructure Development

Accelerate Manufacturing Growth

Focus on Skill Development

Sustainable Energy Sufficiency

Improved Business Environment

The government of India has prepared a five-pillar strategy to drive India’s growth, which offers multiple avenues of collaboration and investments. Find out more under:

www.makeinindia.com 2 • India Newsletter

Indian Embassy, Vienna

POSITIVE NEWS FLASHES

01Swarovski Crystal World 05Ahmedabad is the first 08The target of electrifying all has been transformed into a Indian city to have been 18,452 unelectrified villages by tribute to India for the new declared as World Heritage 2018 set by Prime Minister Summer Festival. Manish Arora, City by UNESCO. Founded in Narendra Modi on Independence one of the most celebrated and the 15th century by Sultan Day 2015 has reached the inspiring contemporary Ahmad Shah the city presents a milestone of 13,000 in May 2017. designers in the fashion world, rich architectural heritage from According to the Garv portal created a fantastical „Indian the sultanate period. The capital (https://garv.gov.in), which Mela“ in Wattens, Austria. The of the State of Gujarat now provides real time data on rural rich variety of performances and joined the ranks of Paris, electrification, 14,028 villages culinary delights can be visited Vienna, Cairo, Brussels, Rome have been electrified by July 2017 until the End of August 2017. and Edinburgh and puts India already, which constitute 76 per on the world heritage city map. cent of the goal. Power Minister India seeks to extend the Piyush Goyal is confident that the The latest edition of the remaining villages will be aviation policy UDAN (Ude Desh ka Aam Naagrik or Fortune Global 500 list, which provided with electricity within 'common people of the country ranked companies by their the timeframe. can fly') scheme to countries of revenues in 2016, has a distinct Defense, civil aviation and the regional bloc. The objective Asian flavor. With 197 is to boost the engagement with companies on the list, Asia is pharma are being opend up to BIMSTEC (Bay of Bengal now home to more of these more foreign direct investments.

Initiative for Multi-Sectoral global giants than any other The government changes the FDI Technical and Economic continent, leaving North policy with the objective of Cooperation) states the Minister America and Europe behind. providing major impetus to of State for Civil Aviation, India contributes to the Asian employment and job creation in Jayant Sinha.

40 per cent of Fortune 500 with India. The liberalization will allow 7 companies. Indian Oil, ranked 100 per cent FDI investments in Indian Railways launched a 168th, makes it into the Top 200 above mentioned sectors and some pioneer solar-powered DEMU and is followed by Reliance others, such as broadcasting. (diesel electrical multiple unit) Industries, State Bank of India , train. Manufactured under the Tata Motors, Rajesh Exports, The Department of ‚Make in India’ initiative the Bharat Petroleum and Industrial Policy and Promotion solar panels are being used as Hindustan Petroleum (DIPP) signed a pact with a grid in railways, which is being Punjab state council to set up a India is the largest done for the first time in the Technology and Innovation world. economy of South Asia and Support Centre (TISC). The centre expected to meet the previous will be established at Punjab's The automations solutions growth projections of 7.4 per Patent Information Centre under a provider Siemens Limited cent GDP in 2017 and 7.6 per World Intellectual Property closed the deal with Indian cent in 2018. First and foremost Organization's (WIPO) program.

Railways to install state-of-the- thanks to strong consumption, The Indian TISC will give host art IGBT technology, reports as Hindustani Times reports institutions access to the global Economic Times. Siemens will referring to the Asian Develop- network. The Ministry of be designing, supplying and ment Bank (ADB) Outlook Commerce and Industry seeks to installing alternating current 2017. PwC analysis listed India ”stimulate a dynamic, vibrant and (AC) traction systems for dual as the fastest growing economy balanced intellectual property cab high horsepower diesel worldwide in 2017 with a rights (IPRs) system in India” as engine locomotive for diesel commanding lead of almost one announced in a statement. locomotive works (DLW). per cent against China.

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India Newsletter • 3

Indian Embassy, Vienna

EVENTS REPORT 3rd International Yoga Day celebrated in Austria

which translates to come dance with me. The Ambassador of India to Austria, Ms. Renu Pall, was The celebrations to mark the 3rd guest of honor, as India was a International Day of Yoga in partner country. The ball is the th Austria began on June 18 with a most prestigious and best attended public yoga event at the historical event in Vienna’s summer season Stadt Park in Vienna. The event with over 2000 invited guests was organized by the Indian attending. This year it showcased a 15th Session of the IndiaEmbassy in association with the wonderful mixture of classical Austria Joint Economic City of Vienna and a large number Austrian and Indian dance, Commission of yoga schools. including contemporary Bollywood performances. Popular Bollywood The 15th Session of the Indiachoreographer Shiamak Davar was Austria Joint Economic the main attraction of the ball. His Commission (JEC) was held in dance group performed twice New Delhi, India on 20th July 2017. during the evening and entertained The JEC was co-chaired by Ms Austrian politicians, dignitaries, Anita Praveen, Joint Secretary, officials, representatives from Department of Commerce, Inaugurated by Ambassador Ms media, diplomatic and the business Government of India and Ms. Renu Pall with remarks community.

Bernadette Marianne Gierlinger, highlighting the significance of Vice Minister, Federal Ministry of Yoga the kick-off event was a great Science, Research and Economy, success with around 450 Republic of Austria. participants, including officials The discussions between the two from Vienna City Council, sides took place in a cordial Diplomatic Corps in Vienna, atmosphere reflecting the friendly Officials from United Nations in relations between India and Austria Vienna, a large number of Austrian and their desire to strengthen and citizens and members of the Indian Indian National Youth further develop bilateral economic community. Orchestra performance at and commercial relations on the A number Musikverein basis of mutual benefit. of events Indian Musicians from the Indian planned by National Youth Orchestra the performed together with the Embassy University of Vienna Orchestra followed: and Choir at Musikverein on June A panel Discussion on the Yoga, 15th. The collaboration was Wellness and Nutrition at the UN put together by the Conductor Mr. Bilateral diplomacy at on June 21st, a yoga event at the Vijay Upadhyaya and was comultilateral forum famous Hellbrunn Palace in sponsored by the University of Salzburg on June 23rd and a yoga Vienna and the Indian Council of Prime event in Innsbruck on June 25th.

Cultural Relations. On the occation Minister Concordia Ball 2017 Ambassador Ms Renu Pall spoke Narendra Modi met “Aaja Nachle” about the nine young musicians Mr. from India, their exposure to the The press club western orchestral repertoire, the Christian Concordia held experiments in bringing together Kern, its prestigious Chancellor classical Indian music and folk annual Summer of Austria traditions as part of the Indian Ball on June 2nd at the St. Petersburg International National Youth Orchestra. She at the Vienna Forum (SPIEF) on May expressed her desire of beginning a Economic th City Hall with 24 2017 in St. Petersburg, Russia. long association between the music the theme '"Aaja cultures of Austria and India.

Nachle", India Newsletter •4

Indian Embassy, Vienna

ANNOUNCEMENT FOR AUSTRIAN CITIZENS E-Tourist Visa (e-TV) for Austrian citizens

T

he Government of India has extended the e-Tourist Visa (e-TV) scheme to the citizens of Austria with effect of 26th February 2016.

Under the e-Tourist Visa scheme, citizens of Austria may now apply online (https://indianvisaonline. gov.in/visa/tvoa.html) four days in advance for obtaining the Electronic Travel Authorisation for travelling to India. This facility is in addition to the existing Visa services. It is available to the citizens of Montenegro as well. For queries related to e-TV or assistance call the 24/7 Visa support centre at +91-11-24300666 or send an email to indiatvoa@gov.in.

INDIA-AUSTRIA NEWS ARTICLES Austrian impacts on Force old Austrian Lucas Auer, nephew to other global markets from next of retired racer Gerhard Berger. He year. "Ever since KTM took over India will make his Formula One test The national formula one team Sahra Force India takes on a brand debut with Force India in Hungary new look committing to the signing this August.

Force India also shows its support of a partnership agreement with for Breast Cancer Care by running Best Water Technology Group (BWT). BWT is Europe’s leading the charity's famous pink ribbon on water technology specialists with its cars.

Austrian headquarters. To mark the Team boss Vijay Mallya said: "Our cars turning pink created a lot of beginning of a long-term positive buzz and it's a pleasure to relationship with the Austrian company the F1 team now races in be able to harness this feeling to raise awareness for such an pink, magenta and silver.

One of those racers will be 22-year important cause and charity.

the Husqvarna brand, it has been selling mostly as an off-road bike in the advanced countries. Now the plan is to take it to on-road segment globally," Bajaj Auto President, S. Ravikumar told the Press Trust of India. The first models, Vitpilen 401, Svartpilen 401 and Vitpilen 701 will be produced in the facility of KTM in Mattighofen, Austria, and launched in the beginning of 2018. Later in that year, the production of two Motorcycles for the global markets will be KTM and Bajaj expanding transferred to Bajaj's Chakan Motorcycle production factory in India. A decade of Bajaj Auto and its Austrian arm KTM plan to expand the presence strategic partnership between Bajaj Auto and KTM has been completed of niche motorcycle brand under which the Austrian bike Husqvarna Motorcycles 5 • India Newsletter

Indian Embassy, Vienna

maker's models Duke 125-390 and RC 125-390 are produced in Bajaj's production facility in Chakan to be distributed worldwide by both partners.

Jaguar’s E-Pace and I-Pace build by Magna Styr Jaguar Land Rover (JLR), owned

by India's Tata Motor, is rapidly expanding its production levels

and model line-up. Jaguar Land Rover, Britain’s biggest carmaker, said that it would build its new E-PACE, a compact sport utility vehicle, in Austria and China. This will be Jaguar’s first car made for global sale to be built completely outside of Britain. The Austrian contract carmaker Magna Steyr, a unit of

Magna International, and a JLR join-venture-plant in China will manufacture the E-PACE. As previously announced the production of Jaguar’s I-PACE, an electric sports car, will follow and be carried out by Magna in Austria as well. The company was chosen for its well reputation said the company to APA.

NEWS ARTICLES Hyderabad, the Indian Institute of Science Education and Research in Pune and the Indian Institute of As part of the ‘Make in India’ initiative, supercomputers will be Science in Bengaluru will each receive one. “The goal is to have manufactured in India under a three-phase program, according to them by the end of this year”, said The Indian Express. The Rs 4,500- Ashutosh Sharma, secretary in the Ministry of Science and. In the crore project, approved by the Cabinet Committee on Economic second phase, major parts like Affairs in March 2016, is supposed high-speed Internet switches, compute nodes and network to benefit scientific researchers systems will be manufactured in across the country. The National India and in the third phase Supercomputer Mission (NSM) Kulkarni said that almost the entire envisages nearly 50 system will be built in India. supercomputers in three phases.

In the first phase, Milind Kulkarni, Currently, countries such as the a senior scientist with the Ministry US, Japan, China and the European of Science and Technology who is Union (EU) make up a major share over-looking the project, said that of the top supercomputing machines in the world. The NSM the plan is to have six will enable India to rise to the supercomputers: Three will be imported and the other three will be league of world-class computing assembled in India, however their power nations.

National Supercomputers Mission

India‘s first bio-methane bus system assemblies will be manufactured abroad.

Tata Motors has developed the The Indian Institutes of country’s first bio-methane bus Technology in Banaras Hindu (Bio-CNG) which was unveiled University, Kanpur, Kharagpur and recently at the bio-energy

5 • India Newsletter

programme ‚Urja Utsav’. India’s largest commercial vehicles manufacturer said the bio-methane engines could be used in LCV, ICV and MCV buses.

Tata displayed three engines, along with the lead model Tata LPO 1613 with 5.7 SGI NA BS-IV IOBD-II compliant bus at ‚Urja Utsav‘ held in Pune’s Shiv Chhatrapati Sports Complex.

In Rajendra Petkar’s opinion the showcase of the Bio-CNG bus is „a step towards developing environment-friendly vehicles.“ Bio-methane that is used in engines reduces the net impact on the environment and produces useful power, explains the Head of Power System, Engineering. Girish Wagh, Head of Commercial Vehicles Business in Tata Motors, additionally underlines the positive contribution to the Smart Cities proposition by keeping the cities clean from wet garbage.

Indian Embassy, Vienna

their top speed faster than diesel India low-cost space services is end of the launch business and more lucrative, reports the Fortune buses, as motor is more effective in gaining momentum Magazine. providing torque. Additionally On 23rd June 2017 India fired a rocket carrying satellites from India The Indian space program currently electric motors give the driver the option to preserve energy and and 14 other countries, including contributes to the $323 billion global space market with a low release it at once and electric buses Austria, Belgium, Latvia, Lithuania, and Slovakia, as part of share of 0.6%, according to a Space are noise-free.

Foundation report, leaving room 50,000 people should benefit from an international commercial the e-bus public transport system in arrangement by the state-run Indian for expansion.

Gurgaon everyday by using it.

Environment-friendly Space Research Organization system for The JBM Group will soon begin (ISRO), as the Fortune Magazine transportation Gurgaon the manufacturing of electric buses reports. under the ‘Make in India’ initiative The Polar Satellite Launch Vehicle The government of Haryana has in its Indian plant. announced the introduction of (PSLV) launched a 712 kg electric buses in Gurgaon, in order Costs of the project will be borne Cartosat-2 satellite for earth observation and 29 Nanosatellites, to eradicate air pollution. For the jointly by Guragon Metropolitan beginning about 100 electric buses Development Authority (GMDA: which will be used for 50 per cent), Municipal will be integrated into the public communications, weather forecasting and monitoring crops. transportation, said Haryana Urban Corporation of Gurgaon (MCG: 40 per cent) and the Haryana State It took off from Sriharikota in the Local Bodies (ULB) Minister Kavita Jain. She also revealed that Industrial and Infrastructure southern state Andhra Pradesh.

Development Corporation The Indian government has been Haryana Government sent a commission to the manufacturing (HSIIDC: 10 per cent). promoting space technology at low-costs for a while now. In 2014 for example, India sent an orbiter to Mars at a cost of $74 million, a fraction of the $671 million the U.S. space agency NASA spent on its MAVEN Mars mission. "We reached Mars on a budget less than that of a Hollywood film,” Prime Minister Modi should have said.

Just before the recent lift-off India has put a three-ton satellite, its heaviest, into the orbit, matching the technical know-how of the U.S., Russia, China, Japan and the European Space Agency. That launch signals ISRO's ability to launch heavier communications satellite, which are at the higher

Bitcoin on its way to plant of JBM Solaris Electric legalization in India Vehicles Limited, located in Poznan, Poland, to analyze The government of India is prototypes. considering the introduction of a The commission found the regulatory regime for virtual or electronic buses pollution-free and crypto currencies, such as Bitcoin, the JBM Group has already that would enable the levy of the established its own manufacturing Goods and Services Tax on their plant in India. sale. Currently Bitcoin is neither Beside savings of 4.25 lakh liters legal, nor illegal. The new regime on diesel and a reduction of carbon may possibly bring their trading releases amounting to 1,150 tons in under the oversight of the stock 10 years of operation the market regulator, Securities and advantages go even further. Dr Exchange Board of India (SEBI).

Sewa Ram, associate professor in The idea is to treat such currency in transport planning at the School of a manner similar to gold sold Planning and Architecture further digitally, so that it can be traded on explains that e-buses can reach registered exchanges in a bid to

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Indian Embassy, Vienna

Presse” announced that the country. The interest mainly stems Austrian army considers from the impressive year-on-year purchasing either ‘Made in India’ growth the Indian wind sector has F-16 fighter jets from Lockheed witnessed recently, culminating in Martin or Swedish supersonic jets. more than 5GW of new capacity in Fighter jet production in India In India the Defense Minister Arun the last financial year.

Jaitley had recently signalized that The manufacturers are also being U.S. defense giant Lockheed attracted to the market following Martin and Tata Advanced Systems a bidding to manufacture nearly 200 fighter jets will be issued by India's move to an auction model Limited (TASL) have signed an and away from the turnkey model agreement intented to set up a joint the end of 2017. Procurement production facility for F-16 Block procedures now have started with where manufacturers doubled up as the IAF issuing a global Request developers and operators.

70 fighter jets in India. Tata Advanced Systems and Lockheed for Information to global aircraft Vestas, one of the earliest entrants to the Indian market, started its manufacturers alerting Martin have been cooperating in international suppliers that there operation in 1989 and was among the past manufacturing airframe the top three Indian players. The components for the C-130J airlifter will be a new competition for Danish firm sold about 3GW of building a new single-engine and S-92 helicopter. fighter aircraft under the “Make in machines. After quitting India in “This unprecedented F-16 production partnership between the India” initiative. The $12-billion 2012, only to return in 2014, it announced contracts worth 86MW world’s largest defense contractor deal is expected to see interest from global majors, including Saab in 2016. The clear emphasis on and India’s premier industrial of Sweden and Lockheed Martin. India is evident from the fact that house provides India the the company has set up a carbonThe Defense Ministry is yet to opportunity to produce, operate, fibre manufacturing plant in and export F-16 Block 70 aircraft, make its choice.

Gujarat, in which it invested about Western turbine the newest and most advanced EUR 50 million. manufacturers step up in version of the world’s most Last year, Senvion acquired the successful, combat-proven multi- booming India Indian assets of German windrole fighter,” states the press turbine manufacturer Kenersys, statement of Lockheed Martin. It securing itself an established further states that the agreement manufacturing base in India. with TASL is based on proven Nordex recently announced that it performance of the previous signed power purchase contracts cooperation.

Some of Europe's biggest turbine with Karnataka for two of the manufacturers are looking at the German wind turbine Indian market with keen interest: manufacturer's parks. At Windergy Vestas, Nordex and Senvion have India 2017, the company launched all backed their intentions to work the Acciona Wind Power-designed in India by investing in AW125/3000 machine, the largest manufacturing assets in the 3MW machine available in India.

The Austrian newspaper “Die promote a formal tax base, while keeping a tab on their use for illegal activities such as money laundering, terror funding and drug trafficking.

7 • India Newsletter

Indian Embassy, Vienna

Nordex mainly runs its manufacturing facilities in Tamil Nadu. In addition it has a factory producing concrete towers in Bijapur, Karnataka.

Also the German wind turbine manufacturer Enercon reenters the Indian market by signing three cooperation deals to repair, maintain and service its turbines installed in India.

them to get work from schools in the area. We have concentrated on girls schools and girl students for women drivers," said Gayatri Jariwala, assistant commissioner, in-charge, urban community development department, SMC.

Valley Minerals for $200 million in 2007.

The diversified Nirma group has presence in soaps, detergents, salt, soda ash, caustic soda, cement and packaging among others. It has 12 manufacturing facilities in the Nirma sets eyes on the 4th country and the US, and has a turnover of over Rs 7,300 crore. largest soda-producer Detergent maker Nirma has plans The company's total debt as on to acquire US-based Tronox Alkali, 2015-16 was Rs 1,123 crore while New auto service in Surat by the fourth largest producer of soda its networth stood at Rs 4,509 women, for women ash in the world. The Gujarat-based crore, states the report. company has emerged as one of the ‘Mother of all underwater key contender to clinch the deal, defense deals’ starting off India has kick-started its "mother of estimated to be around $1.5-2 billion, according to a report in The all underwater defense deals" to Economic Times. “Nirma made a build six advanced stealth binding offer after detailed submarines for an estimated Rs 70,000 crore ($10.9 billion) in diligence. Their team was in the collaboration with an Indian US recently. This is the second shipyard, reports Times of India. time they are having a go at this asset, so they are pursuing it very The so-called Project-75 (India) is seriously,” an executive has been in its early days. The six shipbuilders, Naval Group-DCNS quoted in the report.

Last year, Nirma surprised many (France), ThyssenKrupp Marine when it acquired French cement Systems (Germany), The civic body tied up with Bank company Lafarge's Indian cement Rosoboronexport Rubin Design Bureau (Russia), Navantia (Spain), portfolio for $1.4 billion. If the of Baroda (BoB) for providing proposed US acquisition bid goes Saab (Sweden) and the Mitsubishiloans at 7 per cent interest to Kawasaki Heavy Industries through, this will be Nirma's female drivers, so they can purchase their auto-rickshaws. BoB biggest acquisition to happen and combine (Japan), are expected to respond to the RFI (request for further strengthen its position as approved loans of Rs 84,000 per information). auto to each applicant with 25 per the country's leading soda ash "The stress will be on transfer of cent subsidy for the vehicle from producer. Other major soda ash technology from the OEM and the central government scheme. It manufacturers in the domestic indigenization. The submarines, to is expected that the earnings will at market are Tata Chemicals and be built with indigenous steel, least reach Rs 18,000 per month by Gujarat Heavy Chemicals Ltd. Among the major acquisitions should also be less maintenanceferring schoolchildren and later made so far, Nirma first acquired intensive to ensure a better passengers in the city.

"We have a batch of 70 women and Saurashtra Chemicals in 2005 and operational cycle with minimal 15 are ready to begin work. They followed it up with the acquisition downtime," said an official to TOI. of US-based Acquired Searies have license and we also helped

Surat Municipal Corporation (SMC) launched a Pink Auto Service of female auto rickshaw drivers to cater female passengers only. SMC identified, trained and helped interested women to get loans from banks to make a decent living by running their own autorickshaws.

8 • India Newsletter

Indian Embassy, Vienna

at the Taiwanese company said that Foxconn will ramp up Indian also serves as a strong foreign operations in an “exponential manner“, with confidence coming policy statement.

The ratification will boost trade and from the implementation of GST as regional integration across South well as the imposition of an import duty on mobiles phones that would Asia and beyond as well as fasttracking the region's potential to discourage sourcing from China or other foreign locations. “India is become a strategic trade hub, according to a report of Times of already high on our priority list, and we now plan to step up India. “India’s decision to implement the TIR system will investments and business here by have far reaching benefits for trade opening new factories and and will save significant time and expanding the manufacturing money by streamlining procedures footprint,“ the official told TOI. at borders, reducing administration Solar power strikes the market and cutting border waiting times,” in India said Boris Blanche, Chief In May 2017, India hit its lowestOperations Officer at International ever solar tariff of Rs 2.44/unit of Road Transport Union to The electricity. Compared to 2010 this Hindu. marks a 73 per cent drop, which The financial benefits are not to be makes solar energy India’s overlooked. It is estimated that the cheapest power source, as coal now implementation of TIR could ranges between Rs 3/unit and Rs generate economic benefits ranging 5/unit. The price fall emerged out from 0.14 to 1.31 per cent of of technology advances, which lead national GDP, reports TOI to cheaper costs for solar modules. referring to a study in the More efficient batteries could let UNESCAP (United Nations the price cost decrease by another Economic and Social Commission 66 per cent and constitute almost for Asia and the Pacific) region.

50 per cent of generated electricity

Bullet train to be launched this a kind of transport agreement among participating nations and autumn In what could be called a dream come true, it has been reported that Prime Minister Narednra Modi's most ambitious bullet train project “Mumbai-Ahmedabad High Speed Rail” will be launched during the visit of Japanese Prime Minister Shinzo Abe in September.

Business Today reported that both will jointly inaugurate the bullet train project with the laying of foundation stone and a ground breaking ceremony taking place in Ahmedabad or Gandhinagar, Gujarat.

The Rs 1 lakh crore project involves the construction of a 505km line for which Japan's Shinkansen technology was used.

In his last visit to India, Japanese Prime Minister Shinzo Abe offered to provide $12 billion of soft loans to build India's first bullet train.

World's largest electronics The loan was offered at a low contract manufacturer settles interest rate of 0.1 percent with down in India repayment over 50 years and a moratorium for 15 years.

Foxconn, world's largest contract

in India by 2040, according to the Bloomberg New Energy Outlook 2017 report. Attracted by the opportunities in India’s solar manufacturer for electronics, has energy space, Finland’s Taaleri Plc India joins UN TIR Convention fixed plans to invest up to $5 is evaluating assets for acquisition. st India has become the 71 country billion (around Rs 32,000 crore) in According to the International India as it looks to make the Energy Agency India will require to ratify the United Nations country a manufacturing hub for overseas investors to reach its Convention on International export to key markets across energy goals given the investment Transport of Goods (TIR). The multilateral convention is in effect Europe and the US. A top official requirement of $3.6 trillion between 2015 and 2040.

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Indian Embassy, Vienna

MAKE IN INDIA GST: One nation, one tax First visualized in 1999 the concept of Goods and Service Tax (GST) now is reality. India’s biggest tax reform introduced a comprehensive GST, which replaced the complex multiple indirect As a result compliance costs are tax structure with effect from 1 expected to drop.

July 2017.

The multi-stage, destination-based Improved competitiveness The subsuming of major Central tax is levied on each step an item and State Taxes in GST, complete goes through from manufacture to and comprehensive set-off of input the final sale involving a value goods and services and phasing out addition. As GST is a destinationof Central Sales Tax (CST) red based tax, revenues will be uces the cost of locally collected at the final point of sale, manufactured goods and services. where it can either be collected by This increases the competitiveness the central government or the state of Indian goods and services in the government. international market and will give Within short time all Indian states Indian exports a boost. (by now including Jammu and Development of common national Kashmir) approved their State GST market (SGST) laws. Union territories GST ensures that indirect tax rates with and without legislature have and structures are common across adopted respective Acts, making the country, thereby increases the GST a true “one country, one certainty and ease of doing tax” project. business. It makes doing business Removing cascading tax effect An important benefit of the introduction of GST is the removal of the cascading tax effect or double taxation through amalgamating a large number of Central and State taxes into a single entity.

Reduction in multiplicity of taxes The new tax replaces 17 earlier Central and State Taxes.

in the country tax neutral, irrespective the choice of place.

Easy compliance A robust and comprehensive IT system is the foundation of the GST regime in India. All tax payer services such as registrations, returns, payments, etc are available to the taxpayer online, which makes compliance easy and transparent. The Goods and Service Tax Network (or GSTN) is the mother database, as it manages the entire IT system of the GST portal.

Businesses can already start uploading their sale and purchase invoices generated post July 1st on the portal (http://www. gstn.org/).

The tax rates vary from 0 to 28 per cent, whereas a large number of items are being kept under 18 per cent, according to a report of the economic times.

Source: http://www.ey.com

India Newsletter • 10

Indian Embassy, Vienna

INDIAN STATE ECONOMIC PROFILE GUJARAT

Gujarat

is

located

on

the

western coast of India and has the longest coastline of 1,600 km in the country. Gujarat is one of the high growth states in the country.

Average annual gross state domestic product (GSDP) growth rate of Gujarat from 2004-05 to 2014-15 was 12.11 per cent.

Gujarat has achieved the distinction of being one of the most industrially developed states and contributes about a quarter to India’s goods exports.

There are 13 major industry groups that together account for around 82.05 per cent of total factories, 95.85 per cent of total fixed capital investment, 90.09 per cent of the value of output and 93.21 per cent of value addition in Gujarat's industrial economy.

Gujarat is a leader in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewelry, textiles and engineering. The industrial sector comprises over 800 large industries and more than 453,339 micro, small and medium industries. As of March

2015, Gujarat ranked second in the production of crude oil (on-

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shore) in India. It accounts for around 72 per cent of the world’s share of processed diamonds and more than 80 per cent of diamonds processed in India.

Gujarat has achieved the distinction of being one of the most industrially developed states.

Accounting for five per cent of the total Indian population, contributing about a quarter to India’s goods exports. The state ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state with the highest geographical area of 29,423.9 hectares under SEZ development.

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The following are some of the major initiatives taken by the government to promote Gujarat as an investment destination: Gujarat’s Industrial Policy, 2015, offers attractive incentives and concessions for prospective investors.

In budget 2015-16, state government has announced plans to invest US$ 458.97 million for the growth of industrial sector of Gujarat. For the development of industrial park, logistic park and a park for defense manufacturing

units state government has announced to invest US$ 5.30 million in budget 2015-16.

Gujarat has well developed infrastructure. With one major port and 44 non-major ports, Gujarat has the highest number of operational and commercial cargo ports in India.

Many upcoming ports are being developed as captive ports to cater to specific company and industry requirements. The state undertakes fast-track clearance in establishment of ports through private participation.

The state government has approved interest subvention at the rate of 6 per cent for three years for building godowns on the farms to boost storage capacity in the state. It has also allocated US$ 1.49 billion for Narmada Yojana.

The state government has announced plans for the setting up of brown and green field projects to facilitate environment-friendly processing standards in the textile units of the state.

The Government of Gujarat has initiated several steps for the development of a world-class port city at Mundra. The port has a cargo handling capacity of over 200 million tons per annum.

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Indian Embassy, Vienna

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 maoffice.vienna@mea.gov.in to get more information about possible assistance/subsidies.

INTERNATIONAL RAILWAY EQUIPMENT EXHIBITION

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Mumbai (July 17) • Hyderabad (July 19)

Chennai (July 22) • Bangalore (July 24) Kolkata (July 26) • New Delhi (July 28).

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INVEST INDIA The investor’s desk of the Make in India campaign Invest India is the official Investment Promotion and Facilitation Agency of the Government of India, mandated to facilitate investments into India. It is envisaged to be the first point of reference for potential investors. The team of domain and functional experts provide sector- and state-specific inputs, and hand-holding support to investors through the entire investment cycle, from preinvestment decision-making to after-care. They assist with location identification; expediting regulatory approvals; facilitating meetings with relevant government and corporate officials; and also provide aftercare services that include initiating remedial action on problems faced by investors. All facilitation and hand-holding support to investors under the “Make in India” program is being provided by Invest India. Invest India is promoted by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, Government of India and assists with: ■■ Market strategy ■■ Business plan advisory ■■ Location identification ■■ Expediting regulatory approvals ■■ Facilitating meetings with relevant government and corporate officials ■■ Initiating remedial action on problems faced by investors India Newsletter • 17

Contact Information

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TOURISM

Avian Concerns

Kokkare Bellur Text: Hugh & Colleen Gantzer »»»»»»»»

W

e heard them long before we saw them.

Driving from Karnataka’s Bheemeshwari, we passed villages with stands of mulberry and silkworm farms, interspersed with lush fields of rice and sugarcane. This district called ‘The Land of Sugar’ and so, at first, we thought that activists were agitating either for or against the price of cane. It had a ‘rent-a-crowd’ quality about it.

As we got closer, however, the collective sound shredded itself into cheeps, squawks and guttural honks. Then we spotted them: soaring, swooping, dots in the sky, circling and landing and rising around a spot hidden in a mass of trees. We’ve seen this happening above landfills around major cities but here were no urban centers in this green and very rural region. Our guide said “We’re coming to Kokkare Bellur”.

The name of the village captures its uniqueness. Kokkare Bellur, according to one of the many interpretations given to us later, could mean The Place of the Water Birds. That’s very apt. To our delight, we discovered that this beautiful little village was home to an incredible host of nesting pelicans and storks, cormorants, herons and even a pair of black ibis though there might have been more of these sacred waders on the outer fringes of the village. All the birds had built huge untidy nests on the trees shading the cottages. Most of the nests carried crèches of shrieking chicks, more demanding than the best professional agitators.

Yet, in spite of the avian cacophony, the people of the village seemed unperturbed. A young man cycled past carrying a long fishing rod, a housewife spread grain to dry and then covered it with a net, a senior citizen read a newspaper on his verandah, a furry grey cat law curled on a chair, all its ends tucked in contentedly. Clearly, they had got used to the all-pervasive chorale, the faint fishy-phosphorus odour, and the constant splatter of detritus from the flocks on the trees above them.

We picked a drizzle-free spot and drew up next to a small, fenced off, grove. Inside, there were stone benches and tables speckled with bird-lime, and two hut-sized piles of straw on which pelicans waddled like corpulent counsellors and long-legged storks stood regarding us with cold curiosity.

It was a most unusual place in a most extraordinary village.

As we were looking over the fence, a grizzle haired man walked up and introduced himself to us as Linge Gowda.

He said, in a soft-spoken and very matter-of-fact way, that this enclosure was an infirmary for abandoned fledglings. He opened the gate and we followed him in with three boys trailing behind. One of the boys picked up a fish from a metal bowl and threw it to a pelican. It caught it deftly in its ungainly break and then, on second thoughts, dropped it.

“Not fresh” explained Linge Gowda. “It has a broken wing so it cannot forage for itself, but still it eats only fresh fish!” He pointed out another bird, blind in one eye.

“When they are fit they fly away but, for some time, they return here. Then, when they build their own nests in our village, they do not ask to be fed.”

The differently-enabled pelicans groomed themselves.

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Gowda said he was a farmer. “The birds are like our children” he explained. “My people prayed at the temple of Bhairaveshwari, gave a gift to the idol and asked for the birds to be sent to our trees. The birds arrived.”

“Why did they ask for the birds?” we queried. “Do the birds keep your fields free from pests?”

He shook his head. “No. Nothing like that.” Then he added, “It is said that long ago, a European visited our village and said that the birds were present even then. In 1914-1917, when a plague struck the village, the people moved out. The birds followed. When our people returned, so did the birds.”

That was odd. What did the birds give back to the village for sheltering and feeding them? What was the symbiotic relationship in this intriguing place?

In Malaysia we had noticed apertures in the walls of modern concrete structures. They had been made to encourage swifts to build their salvia-bound nests. Birds’ Nest soup is a delicacy. Then, in Egypt we had seen conical, towers honey-combed with holes. These were wild-pigeon farms where fledging squabs were selectively harvested for their reputedly rejuvenating flesh. But the pelicans and their fellow residents were, clearly, not being harvested by the people of Kokkare Bellur. Possibly, then, they played a socio-spiritual role.

In Medieval, Christian, lore the pelican was regarded as a

symbol of Jesus. Its ability to regurgitate food for its chicks was misinterpreted as its self-sacrificing passion to nurture its progeny on its own blood. A memory of what we had seen in Nepal, surfaced. There, we had noticed little holes let into the walls of village huts. These had been created for sparrows. The rural folk of Nepal believed that when they died, sparrows would carry their souls up to heaven. People, living close to nature, had found a reason to respect the intricate web of life. Could this instinctive sensitivity explain the wonder of Kokkare Bellur?

Linge Gowda, however, did not elaborate. He handed us a well-produced pamphlet created by the Mysore Amateur Naturalists. It said: “We depend entirely on the generosity of people like you to sustain our project. …we have to purchase large quantities of fish, every day, during the breeding season, to feed the orphan chicks…”

We offered him a donation. He smiled and shook his head. “No, we don’t want to take money from visitors.

When money enters, trouble starts!”

Possibly. Or, perhaps, they accepted the old folk belief that good deeds earn cumulative social benefits if they are not rewarded in cash. Whatever the reason, it certainly seemed enough to cause a vociferous collective cacophony in the crowded groves of Kokkare Bellur.

Source: GoRoadTrip

Source: http://dreamtrails.in/kokkare-bellur/ 19 • India Newsletter

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