India Empire October 2018

India-Diplomatic, Business, Diaspora and Political Connectivity

Editor’s Desk

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his edition of India Empire has been dedicated to the Czech Republic. It is the 100th anniversary of the nation’s independence from the AustroHungarian empire in 1918. At the time of independence, of course, it was called Czechoslovakia—a name that was discontinued after its dissolution in 1992 and the formation of the new Czech Republic and the Slovak Republic. The nation remains, according to H.E. Mr Milan Hovorka, Ambassador of Czech Republic with whom we have an interview, an important partner for India and the world’s superpowers.

Even though in 2017 Czech exports to India were to the tune of about Rs 52 billion, Ambassador Hovorka believes his country is just scratching the surface insofar as the eventual potential is concerned. India’s exports on the other hand to Czechia are about Rs 62 billion. Skoda cars are the most visible sign of Czech exports to India—the company has set up strong manufacturing units in Aurangabad and Pune, both in Maharashtra. The Bonatrans Group that makes railway axels and wheels besides delivering entire trains has also set up a manufacturing plant in Aurangabad. These two do provide important fingerprints of Czech competitiveness and skills in India.

During the visit of President of India H.E. Mr Ram Nath Kovind to the Czech Republic in September 2018, a MoU was signed between Tatra Trucks and BEML. Tatra vehicles that are assembled in India by BEML are also supplied to the Indian armed forces. Classic Legends India Pvt. Ltd., part of the Mahindra Group, signed a deal in 2016 whereby the former will have the rights to President Kovind pays homage at the site of sell products under the Jawa poet-laureate Rabindranath Tagore’s bust in Prague brand in India and in other South Asian nations. Jawa motorcycles had grown to become a household name in India in the 1960s and 1970s.

Czech Republic also remains among the most peaceful countries in the world—it was seventh in the Global Peace Index (GPI) rankings of 2018, a highly-regarded list topped

by Iceland. The GPI is produced by the Institute for Economics and Peace in consultation with think tanks. Perhaps as a direct result of the reputation it has built up as a safe destination, the number of tourist arrivals from India and its neighbors to the Czech Republic has escalated significantly. Besides events such as Czech Republic—Land of Stories B2B Mission, organized by the Embassy of the Czech Republic in New Delhi jointly with Czech Tourism, have helped travel agents, hotel representatives and others from the field of tourism on both sides to meet up and form strong business ties.

Hope you like navigating through this special issue.

Sayantan Chakravarty (sayantanc@gmail.com)

iNDiA

empire Volume 14 No. 5 October 2018 www.indiaempire.com RNI No.: DELENG/2005/16693

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CZECH MATE ...................................................... 06 Interview with Ambassador Milan Hovorka

SAARC FOCUS ....................................................

Afghanistan and Bangladesh

BOUYANT AUTOMOTIVE INDUSTRY ................ 18 Czech companies partner with Indian firms

UNITED KINGDOM ............................................. 30 Special column on the City of London

COOPERATION IN ENGINEERING ..................... 16 The legacy continues

BUSINESS WORLD .............................................. 35 New developments

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Ambassador’s Address

H.E. Mr Milan Hovorka Ambassador of the Czech Republic to India

The Czech Republic, for its part, is one of the fastest growing economies in Europe and one of the best places to do business in this region. It is a highly industrial country with one of the highest industry-to-GDP ratios in the world, lowest EU unemployment rate and minimal inflation. And with its hundreds of castles and medieval cities, it is also a great place to travel. Prague by itself offers tens of gothic, renaissance and baroque sights and hundreds of entertainment opportunities

Dear Readers, You are holding a special issue of India Empire magazine dedicated to the Czech Republic. I warmly welcome the publication of this special issue and thank the editor of India Empire Mr. Sayantan Chakravarty for his decision to print it. It comes at a time when the partnership of our nations is getting stronger and stronger, the honorable President of India, H.E. Ram Nath Kovind paid a visit to the Czech Republic and many new business deals are being announced. In spite of that it is always useful to generate better understanding of what more can be done at business-to-business levels and to show what our country has to offer. The potential is tremendous. The Czech Republic and India have succeeded in establishing a solid basis to build on. They have enjoyed long-standing bilateral political and economic relations. Some of the Czech Republicbased companies have been present in India since the early 20th century and former Czechoslovakia was one of the first countries to officially recognize the Republic of India and establish diplomatic relations.

This special issue also comes at a special time for the Czech people. This year we’re celebrating 100th anniversary of independent Czechoslovakia. Although Czechoslovakia doesn’t exist anymore, we like to think about this moment in time as a beginning of a modern era of our history. Many things have happened in those hundred years and much has been achieved. But there is still much more to be done. I would even dare to say the best is still ahead of both countries. There is so much we can achieve together through greater understanding, more intensive economic cooperation and more frequent people-to-people contacts. The significant opportunities still to be seized are evident.

India has been successful in growing its economy at a robust pace, facing challenges and difficulties no one else in the world has to face and in spite of that becoming the fastest growing among the largest economies in the world. The numbers of Indian tourists coming to the Czech Republic are also at all time high and growing. The Indian government is working at many programs and incentives to make doing business in India simpler and more accessible. For companies from across the world, India is a vast field in which to share modern technologies and set new manufacturing capacities.

The Czech Republic, for its part, is one of the fastest growing economies in Europe and one of the best places to do business in this region. It is a highly industrial country with one of the highest industry-to-GDP ratios in the world, lowest EU unemployment rate and minimal inflation. And with its hundreds of castles and medieval cities, it is also a great place to travel. Prague by itself offers tens of gothic, renaissance and baroque sights and hundreds of entertainment opportunities.

To conclude, needless to say, I personally as Ambassador of the Czech Republic to India, as well as my New Delhi based team, will do our utmost to increase awareness of the existing business opportunities and assist everyone to transform these opportunities into new successful trade and investment stories.

H.E. Mr Milan Hovorka Ambassador of the Czech Republic to India october 2018 | india empire

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COVER INTERVIEW

“Indo-Czech relations are now on the up” H.E. Mr Milan Hovorka, Ambassador the Czech Republic to India, touches upon a variety of subjects ranging from Czech investments in India to the 100th anniversary of independence while answering questions from India Empire Magazine’s Editor and Publisher Sayantan Chakravarty

Czech Republic-India relations have moved forward speedily in the right direction over the past few years.

Would it be alright to suggest that they are at an all-time high, especially after the visit of President Kovind to your country in September 2018?

Yes, they did, but I have to say that our relations were very good for quite some time now. Of course, there are some ups and downs and we could say that now we’re up.

Visit of the Hon’ble President Kovind was a very proud moment in the history of our relations and I hope I can say it was a success. But just as you indicate – it was a peak of years of improvements to our relations. Tip of the iceberg, so to say. But there were times in history when our relations were in an even higher spot, we still have a lot to do.

What has been the Czech Republic’s experience in Circular Economy?

The Czech Republic, as most of the countries in the world, faces the problems with waste management and pollution. Fortunately, there is a lot of people in the Czech Republic, who decided to do something about it. Many companies now follow the path of the circular economy, not just from the ecological point of view, but also from the economic one. I can proudly say, that we have some extraordinary companies in this field, companies like ERC-TECH or NAFIGATE, an inventor of a bioplastic called Hydal. And that’s not all, the Czech Republic is also home to one of the most influential NGO in the field of circular economics – Institute of the Circular Economy INCIEN. This great organisation is now working together with the EU legislators

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to bring new legislation in the whole EU, to make using these new ideas simpler and more efficient for our businesses and governments. And I believe that with this kind of background and support, there will be more and more companies in this field and lots of them will come to India to cooperate and do business with local companies.

Recently in Kolkata, the Embassy of the Czech Republic promoted capacities and funding opportunities to support Indo-European research and innovation. Could you please throw more light on this activity that was undertaken?

Our Embassy always puts a great deal of importance to the scientific diplomacy and cooperation between scientists and institutes here in India and in the Czech Republic. That’s why we took part in the Regional tour to Kolkata organized by the Delegation of the EU to India. During this event, many topics were discussed mainly in the field of exchange of scientific capacities and cooperation of universities, such as Jadavpur University. It was a great opportunity to follow up on the signing of the Agreement of Understanding between the Academy of Sciences The Czech Republic and the Council for Scientific and Industrial Research of India. The latter organisation was represented at the event by the Indian Institute of Chemical Biology, which is the leading institute of such kind in India and represents an interesting partner for the Czech Republic. Czech science has a lot to offer to India and vice versa. We have to do our best to help each other, our future depends on it.

Have Czech firms been able to engage in Mission Mode projects like Make in India, Smart Cities and oth-

H.E. Mr Milan Hovorka Ambassador of the Czech Republic to India

ers? If so, how?

Yes, a lot of them. Most notably Škoda Auto decided to make a rather huge investment of approx. ₹ 85 billion to build new production facilities under the Make in India mission. But there are many more, from the top of my head I can name BONATRANS Group, a successful manufacturer of wheels, TATRA, a traditional Czech producer of trucks, or Liko-S, a constructing and manufacturing company. But there are still more, Stros Esquire with their facilities in Vadodara, Gujarat, TECHNiCOAT, TAJMAC-ZPS...

What, according to you, would be the most attractive Investment Sectors for Indian firms to invest in the Czech Republic?

I believe that we’re already seeing a rise in some sectors and I still see a lot of room for good investments in those.

Again, I can’t miss the automotive industry. There are great opportunities in this area, mainly because the Czech Republic has many final producers of cars and trucks such as Škoda Auto, TPCA, Hyundai or Iveco. This kind of producers offers a great deal of opportunity for producers of parts and spares. We already have some - Motherson Sumi, Pricol, Varroc Group and others, but there is still a lot of space. I also see the pharmaceutic industry as a big thing, with Glenmark Pharmaceuticals already present in the Czech Republic. In this field, the Czech Republic could be a doorway to the whole EU single market, which offers so much. We see a lot of import of pharmaceuticals from India and I believe there is also a big space for production. For the future, I can imagine a rise of investments in the field of civil aviation, with

most of the reasons similar to the automotive industry. And of course, I can’t forget IT and all the related industries. Indian company Infosys is already very active in Brno and I look forward to others to follow them.

Which leads us to ask about the presence of Indian firms in the Czech Republic? And likewise the presence of major Czech companies in India?

Apart from those I have just talked about, there is some major Indian presence in the Czech Republic. One of the biggest is definitely TATA Global Beverages in the food industry, specifically tea. Then we have Zomato or Café Coffee Day. And as I was speaking of automotive industry, we also have Kanoria Chemicals & Industries.

As far as Czech companies in India are concerned, I have already mentioned a lot of them. Škoda Auto, the biggest producer of cars in the Czech Republic with a growing presence in India, BONATRANS Group or TATRA Trucks.

Anyway, I haven’t mentioned Home Credit, a notable provider of small loans and the biggest Czech employer in India with more than 17,000 employees. I also can’t forget Gearspect, a producer of cutting-edge gear technology, Lasvit, Preciosa and Hamrik Lustry, representatives of a typical Czech industry – glassmaking, or a tractor manufacturing company Zetor.

The Czech Republic is one of the world’s most Peaceful Nations. This, of course, could translate into greater tourism. Are tourists from this part of the world on the rise?

Yes, we’re very proud to be on the top of that list, number seven I believe. We do our best to use this fact for pro-

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COVER INTERVIEW moting tourism, of course. And again yes, we see a big rise in the number of tourists from India and neighbouring countries coming to the Czech Republic. But we can’t say that it is only because of security. The numbers of Indian tourists are growing all over the world, mainly due to its booming economy. More and more people are able to afford a holiday in Europe and many travel agents start to discover the Czech Republic as a tourist destination. This can also be due to the activity of the Czech tourist authority Czechtourism, which has been tremendous and all the events such as the Czech Republic – Land of Stories B2B mission, that is organized by the Embassy and Czechtourism, and it’s helping Czech and Indian travel agents, hotel representatives and others from the tourism field to meet up and form strong business ties.

What is the extent of exports from the Czech Republic to India, and what are the major items? Likewise, what is the extent of exports from India to the Czech Republic, and what are the major items of export?

In 2017 the Czech export to India was almost ₹ 52 billion. Although that is a lot, we’re still only scratching the surface of the huge export potential this great country offers. Our export items are mostly from the industry field, mainly car parts.

You’ve probably seen a lot of Skodas in the streets and from next year on, the Ashok Layland trucks will be fitted with injectors produced by the Czech company MOTORPAL. Other products are also on the rise, chemical substances, electrical parts or even microscopes and medical equipment. The export from India is also significant. At about ₹ 62 billion it represents a substantial amount of business. The most exported items are definitely medicines, making about 8,5 per cent of the Indian exports to the Czech Republic. Other items are for example clothes and products of mechanical engineering.

The Indian diaspora in the Czech Republic is 1800strong. It is small, yet significant. What has been its salient contribution in strengthening ties?

It doesn’t seem so big but in comparison with other Asian countries is the Indian presence very notable. Mainly on the level of investments and business. Even though we don’t have all that many businesses and businessmen from India in the Czech Republic, their contributions are tremendous. Investments and trade are rising every year and it’s becoming much more mutual. And I believe that without the presence of Indian companies in the Czech Republic, this kind of growth would never be possible.

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This year is a significant time in your history as you celebrate the 100th Independence Day anniversary.

Kindly elaborate…

The year 1918 is regarded by the Czech people in the same way that the year 1947 is by the Indian people. Although the state that has been created, the Republic of Czechoslovakia, doesn’t exist anymore, we still consider it the most important milestone in our history. Since then, our country got a chance to show the world its greatness. And even though there were some hard times during this 100 years, we have managed a great deal since then. We have made our name on the international stage and we became an important partner for the world's superpowers. This year is filled with celebrations of the anniversary, for example, the Embassy of the Czech Republic in New Delhi has together with the Embassy of the Slovak Republic in New Delhi already organized eight events that commemorate this ❐ anniversary and more are coming.

CZECH REPUBLIC—sPECIaL EdITION

Bilateral relations Presidential Visit 2018 A major diplomatic event this year took place in the capital city of the Czech Republic, Prague. The President of India, H.E. Mr Ram Nath Kovind together with an extensive delegation visited the Czech Republic on his three-leg tour to Europe. During his four day visit, President Kovind made many excellent speeches and met with hundreds of Czech and Indian businessmen and officials. After his arrival, President Kovind met with Indian businessmen and representatives of the Indian community in Prague. He was entertained by the world-famous Czech Philharmonic Orchestra, conducted by an Indian conductor living in Prague, Debashish Chaudhuri, and a prestigious Czech choir Bohemian Voice, which presented not only Czech but also Indian songs.

H.E. President Kovind was officially welcomed at the Prague Castle is the former seat of Czech kings, where President Kovind innaugurated the Czech-Indian Business forum, for which representatives from more than 60 Indian companies travelled all the way to the Czech Republic. The Charles University in Prague, which is the biggest and oldest university in Central Europe, invited H.E. President Kovind, who was greeted by students and Indologitsts in four traditional languages—Hindi, Sanskrit, Bengali and Tamil. President Kovind then also visited ELI Beamlines-International Laser Research Institute, where the resarchers presented the unique laser technology. The President also mentioned about the strong relation between two nations. “The Indian growth story and Czech technology and manufacturing prowess make us natural partners. Let us work to make this collaboration grow and prosper,” he said.

100 years of Czech history October 28, 1918, is the day of Independence of the newborn Czechoslovakia. On that day the Czechoslovak Republic was founded which later was divided in two nations—the Czech Republic and the Slovak Republic. These two nations after almost 400 years of oppression finally got out of the Austro—Hungarian Empire. Since that day began the extraordinary journey of the independent nation “The Czech Republic”.

The first President of the newly born Czechoslovak Republic was T. G. Masaryk, a philosopher, university professor and one of the initiators of the Czechoslovak independence.

Czechoslovak Republic flourished as a new state and became a major player on the political field. It formed alliances with strong western nations, not knowing, what was waiting behind the corner. Czechoslovakia became one of the 10 economically strongest countries in the world, but in 1938, everything changed. In an effort to stop the war-thirsty Nazi Germany, Czechoslovak allies decided to give the large parts of the Czechoslovak land to them, without even inviting Czechoslovakia to the table and then, just a few months before the official beginning of the WW II, Nazis broke the agreement and invaded what was left of the Czechoslovakia. But the Czechoslovak nation didn’t give up. Hundreds of guerillas were operating in the area. Passive resistance was a way to live daily lives. The Czechoslovak operatives trained abroad were being sent to Czechoslovakia in order to use their intelligence and

knowledge to free the nation from Nazi Germany. The most notable operation called “Anthropoid” ended in killing one of the closest Hitler allies, Reinhard Heydrich. Although this operation was cruelly punished by the Germans, it led to recognizing the Czechoslovakia in its pre-war borders but even the end of the WW II didn’t mean that the Czechoslovakia was out of trouble.

In 1948, only three years after the victory over the Nazis, a big communist revolution took place in Czechoslovakia. It started an era of censorship, nationalization, imprisonment and oppression but the people of Czechoslovakia again didn’t give up. In the 1960s everything started to clear up. The economy was booming, great movies were being produced, borders were opened and censorship was lifted but unfortunately that wasn’t in compliance with the Russian vision of the world. So once again the Czechoslovakia was invaded, and this time not by the enemy, but by its own allies. That started almost 20 years long period of oppression called the Normalization. Finally, in 1989 everything started to fall apart in the Eastern block of nations. There was a wave of revolutions in the Czechoslovakia under the leadership of Václav Havel, and it became a free country once again. And three years later, Czech and Slovak people decided on peaceful split-up, being used as an example even today. And in the 25 years, the Czech Republic made it into the European Union, NATO and is experiencing the fastest growth.

We work together—a brief history of Czech-Indian relations Good relations between the Czech Republic and the Republic of India can be dated back to the time of pre-independent India. Indology as a subject was founded in Czechoslovakia and the first Indo-Czech Association was founded by Netaji Subhash Chandra Bose in 1934 even before the WW II Indian leader Jawaharlal Nehru visited Czechoslovakia many times.

With the Indian independence, Czechoslovakia was one of the first countries to officially recognize the Republic of India and establish diplomatic relations. Many Indian ministers visited Czechoslovakia in the years after. The Czechoslovakian motorcycles Jawa were produced in India under the mark Yezdi which can still be found in Indian households. Many Czechoslovakian factories were built in India. The Czechoslovak Indologists also visited India many times since its independence.

In 1964 an economic treaty was signed between the two governments on providing a loan to India for huge investment boost, and in 1972 Prague hosted the visit of the Indian Prime Minister Mrs Indira Gandhi. Bilateral trade was growing and many Indian Presidents visited Prague.

Even after the foundation of the Czech Republic, the relations between both the nations continue to flourish. Czech companies such as Skoda and Bata built more and more factories and are appreciated by Indians for their quality. On the other hand, every year more and more Indian tourists visited the Czech Republic and in the last year both nations had a business of approximately USD 1.5 billion in the bilateral trade.

Only the future can tell how great will be the partnership be❐ tween the Czech Republic and India.

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CZECH REPUBLIC—sPECIaL EdITION

CZECH BUSINESS INCUBATOR IN INDIA

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usiness and investment cooperation between Czech and Indian companies has gained at an unprecedented speed. Light engineering, the aviation industry, medical devices, machine tools, and also waste management projects, are areas where our companies are successfully conquering the second most populous country in the world.

The Association of Small and Medium-Sized Enterprises and Crafts CZ (AMSP) has therefore decided to build the first private incubator for our businesses in Bangalore. This follows on from the successful MeoHub project, which we put together two years ago with Meopta for our companies in New York. The Czech business incubator in India was launched on the occasion of the Czech business mission to India, which AMSP organised in 2017 and where representatives of companies negotiated a number of orders with Indian partners. At the same time, AMSP together with Komerční Banka presented an analysis of business and investment activities between the Czech Republic and India.

The latest data, which summarizes the cooperation between Czech and Indian businesses, are very favourable. The growth in exports from the Czech Republic to the second largest country in Asia has increased year-on-year by 13.3%.

The Czech Republic does more than one-third of its export to India in mechanical engineering and a further 19% in the automobile industry. And with a 42.6% share, the Czech Republic has also become the undoubted champion among countries in the Visegrad Group. Within V4, Polish export accounts for 36.2%, Hungary 16.6% and Slovakia 4.6%. Imports from India are also growing at a promising speed. While overall imports from all countries to the Czech Republic are stagnating, the growth of imports from India has gone up by 7.9% compared to last year.

India is the second most populous country in the world.

The dynamic nature of the country opens up huge opportunities for business. The market is extensive and demand is huge, thus providing a strong basis for business in India. Bangalore is an ideal city for starting business in India. It has a unique culture of mentoring, with a high density of entrepreneurs and investors. This maintains its good reputation created by cutting-edge technologies and quality infrastructure which make work much easier and that in turn attracts many foreign companies to India.

The incubator is located in Jalahalli, right next to Peenya, which is the largest production hub in South Asia. This location provides excellent transport links and is situated just a few kilometres from an international airport. It offers premises in modern offices, full legal, accounting, marketing and business services and other facilities with the guarantee of the Czech Embassy. AMSP has organised the project with the support of

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an Indian partner, Pushpak, the Czech company LIKO-S and CzechTrade.

“Even more importantly, our industry has a very good reputation there. Unfortunately, that is not enough in order to be successful. India is starting to be a sought-after bride and if we are not extremely active, we will not have a chance of succeeding on the market there. The incubator is the first step for us at the moment. Our goal is to build the first Czech park in a short time, which will provide the background for a far larger community of our businesses in India,” summarizes Karel Havlíček, the chairman of AMSP. ❐

CZECH REPUBLIC—sPECIaL EdITION

Czech Chamber of Commerce and cooperation with India The Czech Chamber of Commerce is the biggest and the most representative business organization in the Czech Republic. This year we are celebrating the 25th anniversary of modern history of the Czech Chamber of Commerce while we build on more than 160 years long history of chambers operating on our territory. Moreover, the Czech Chamber of Commerce has more than 15,000 members organized in 62 regional chambers and in 110 branch associations. With such a scope and tradition, the Czech Chamber of Commerce is an ideal counterpart for foreign Chambers when it comes to organizing business forums, B2B meetings, business missions, etc. India confirms this statement—in fact, the Czech Chamber of Commerce has organized throughout the years plenty of events focusing on this progressive country.

It was just this March when we organized the business delegation accompanying the Minister of Industry and Trade of the Czech Republic, H.E. Mr. Tomáš Hüner, to the Republic of India. This very successful mission was followed by the seminar on the topic of “Make In India”—an Indian initiative very well received by the Czech business community.

Recently we were honoured by the state visit of the President of the Republic of India, H.E. Ram Nath Kovind, who was accompanied by a business delegation. The members of the business delegation organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) had an excellent opportunity to interact with their Czech counterparts during the well-attended B2B meetings. The Business Forum organized by the Czech Chamber of Commerce during which the B2B session was held, later honoured by the presence the Honourable President of the Republic of India.

Our focus on India can be explained not only by our fruitful business ties dating back to the end of the 19th century and the times of Mr. Tomáš Baťa but also by the remarkable economic performance of India. Nowadays we can see India climbing up the Ease of Doing Business statistics by the World Bank, for the moment settling at the 100th place. Moreover, with a growth of approximately 8 % of GDP per year, India leaves behind many large economics of the world. Therefore, it is no wonder that India is one of the most important business partners for the Czech Republic in the whole Asia.

Czechs like railways. And you?

Few countries in the world have their history, present and prospects connected as much with the railways as the Czech Republic. The industry, on which has always been based the magic of the growth of the Czech economy as one of the most dynamically developing economies of Europe connecting České Budějovice and Linz in Austria has already passed 191 years ago, however the magic of steam and aroma of oil has remained in the souls of many Czechs up to now, when we are already driving at speeds of over 150 km/h in air-conditioned coaches with excellent onboard service of either state or private carriers in the world’s densest rail network. Railways in the Czech Republic have grown to be accessible, safe, first-rate and comfortable way of transporting common citizens as well as managers or commuters on their way to work. Accessibility, but also the speed and interconnectivity of transport, is the main strength that attracts customers as well as investors in passenger and freight transport, both in operation and in production. When there is a talk about railway products, it is no surprise that such advanced networks have been gaining from

ages of experience of the world’s leading railway manufacturers, who compete or even surpass their rivals from the Far East or Europe, and yet represent an economically viable alternative to substantiating large references verified by decades of hard work. Indeed, innovations were a propelling factor for advancing decades ago, based on the excellence and skills of industrial enterprises. Electric units and high-quality traction have been developed by Skoda Electric since ever, and Škoda Transportation’s rolling stock rides the capital cities around the world. Brakes from DAKO are synonymous for safety and represent one of the most important export items to India.

Telecommunication, safety and signaling technologies for railway operations are provided by experienced companies TTCMarconi, První Signální and AŽD. BONATRANS is the first ever foreign direct investment in India under the flagship program of the Indian government “Make in India”, and the establishment of a manufacturing plant in Aurangabad is, in addition to the Škoda car manufacturer, the most important fingerprint of Czech competitiveness and skills in India.

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CZECH REPUBLIC—sPECIaL EdITION

GREAT plACES IN THE CZECH REpUBlIC BEyOND THE BORDERS Of pRAGUE A small country located in the Central Europe, Czech Republic has a lot more to offer than just Prague. It’s a land of many stories - popular for its music, UNESCO Sites, spa towns, beer and castles Take a walk through the Garden of Europe in the Lednice-Valtice Complex!

There are not many places in the world which have received such care as the elegant area around the spectacular Lednice and Valtice chateaux. An absolutely unique park has been created here over the centuries, full of rare tree species, romantic little buildings, fishponds and beautiful little corners. The Lednice-Valtice Complex, which has been included in the UNESCO list, is known as the Garden of Europe to this very day. Brno, a pulsing city of students perfectly combines history, modern architecture, culture and busy nightlife in original bars. You have to see the legendary Tugendhat Villa, the mysterious underground and the infamous jail. By the way – did you know Brno was famous once upon a time for witchcraft?

Bask in the thermal springs of Karlovy Vary With the highest concentration of healing thermal springs this rejuvenating spa town is a salve for the body and mind. Those looking for souvenirs can take a pick from world famous Moser glassworks, Thun Karlovy Vary porcelain, or the exceptional Becherovka herbal liqueur, which is often dubbed the town’s 13th spring. You should also try the traditional & popular spa wafers which come in interesting flavours. In addition to these, Europe’s notable and one of the world’s oldest Karlovy Vary International Film Festival is also hosted here.

Experience the Czech beer culture in Plzeň The minute you enter Plze, you’ll know this is a city that lives for beer. The vast majority of Plzeň’s visitors take a tour of the famous brewery, which gave the world Pils lager. But Plzeň has a lot more to offer than just a visit to the brewery. Climb up the tower of the Cathedral of Saint Bartholomew as it has the highest church spire in the Czech Republic or visit the city with a labyrinth of corridors, cellars and wells under the cobblestones of the city of Plzeň – a city under a city!

So go ahead and take a vacation to the Land of Stories!

More details: www.czechtourism.com 12 india empire | october 2018

CZECH REPUBLIC—sPECIaL EdITION

Linear or Circular?

By Milan Dostal

A

ccording the concept of Circular Economy, reducing waste, saves money, energy and resources, increases competiveness, and protects the environment. Waste recycling is at the same time a vibrant and innovative sector that creates local jobs and growth. In many developed countries, including the Czech Republic, it has been already verified, that the quality of life improves substantially, when the resources and waste are managed in a proper and professional manner.

Back in 1970s, the global volume of extraction was 22 billion tons. By 2010, it had rocketed up to 70 billion tons and increased by more than 100% in 40 years. Most of the growth has been driven by demand for construction materials, for biomass, food and for the fossil fuels. It seems hard to believe, but China used more cement between 2011 and 2013 then USA used in the whole 20th century.

It’s not a secret, that the demands for raw materials are growing exponentially and supply struggles to keep up. In this view, we particularly welcome initiatives of some countries, including India or the Czech Republic to ban the single-use plastic in the near future and promote activities to reduce the plastic and other waste pollution.

The problem, however, cannot be limited to the existence of the plastic. This simplification can be dangerous and we should focus more on how we design and dispose the plastic instead. And even better, how can we recycle or reuse the waste.

Czech Republic’s innovative solutions offer some of the answers. Used construction waste and debris can with the help of ERC-TECH reduce the cost of the building material substantially and at the same time be an environmental friendly alternative. Real game changer is then the invention of NAFIGATE, which turns old used deep-fried oil into the harmless degradable bioplastic called Hydal. Not convinced?

Then note that JRK introduced their product representing Smart way of collecting waste by fraction of costs, which can achieve a return on investment already within one year for the municipal budget. KOMA Modular is a building set of container units, which can be assembled and disassembled for reuse somewhere else at other times. And the design is what appeals too.

The common rule of circular economy is thus a win-win situation—by reducing the costs people look after the environment. The Czech Republic feels the responsibility for the planet we live on, and naturally offers many solutions which can be easily implemented in India. Then, the model

of using raw materials truly returns back and turns itself from “ugly” linear to beautiful “circular” shape.

—Commercial and Economic Counsellor Milan Dostál was born in 1979. After graduation at the Faculty of Science started the career in the Centre for Regional Development in Prague and later joined the Ministry of Industry and Trade of the Czech Republic. The diplomatic career started in 2017 by being appointed as a Commercial and Economic Counsellor at the Embassy of the Czech republic, where among his duties belong the care about the sectors like Railways, Energy, Health and Pharmacy, Mining, Water and Waste Management, Textile or IT. His role is also to promote the tourism potential of the Czech Republic and foster the science, research & innovation cooperation between the Czech Republic and India. Contacted can be at Milan_Dostal@mzv.cz

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CZECH REPUBLIC—sPECIaL EdITION

Czech Republic—The Heart of Filmmaking in Europe Building steadily from the dawn of cinema Prague. Photo: Prague City Tourism, www.prague.eu

T

he Czech Republic has more than a century of filmmaking experience, from the earliest days of cinematography up to the latest and most technically sophisticated productions, and has always attracted international filmmakers. The first film was shot in what is now the Czech Republic in 1897—a US production (The Horitz Passion Play) and a highly demanding ‘blockbuster’ in its time.

In addition to the captivating nature and the colorful countryside, filmmakers have always been deeply attracted to Prague, a magical city with unique architecture. And in the

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1930s, a new and well-equipped film studio close to Prague’s downtown added to the appeal of the country as an attractive filming destination.

Today, the small country of just 10 million people is one of the busiest film and television production centers in Europe, offering production incentives in the form of cash rebates to entice international productions. Czech locations offer an amazing variety of architectonical styles and natural scenery, Czech crews are highly skilled, and the capabilities of the local film industry are increasingly evident on screens around the world.

Geoffrey Rush as Albert Einstein in Genius.

Photo: National Geographic

Anushka Sharma and Shah Rukh Khan in Jab Harry Met Sejal. Photo: Red Chillies Entertainment

Recent productions include the series Carnival Row sion), and Drona (Eros International). In addition to feature (Amazon), Knightfall (History Channel), Genius (National films, Indian production companies also come here to shoot Geographic), independent US films Jojo Rabbit, Ophelia, commercials and travel shows. “Filmmakers are interested The Aftermath, and The Catcher Was a Spy, as well as nu- primarily in Prague – understandable as it’s one of the most merous European co-productions such as Amundsen, In War beautiful cities in Europe – but also in other architecturally and Love, The Little Drummer Girl and many others. interesting locations such as Český Krumlov, Karlovy Vary, In addition to international productions, over 50 domes- and the plentiful castles and chateaus scattered throughout tic features shoot every year in the country. With Czech films the country. And of course, we want to present to Indian and regional co-productions winning more awards and reach- filmmakers other, equally interesting Czech locations, of ing broader audiences than ever, the future looks bright. which the country has a plethora,” explains Pavlína Žipková.

The Czech Film Fund, a key institution in fostering the Interest has also been shown in the opposite direction – growth of the industry, holds a strateCzech films are not an unknown quangic position in the government and is tity in India, as can be confirmed by the “We look forward to committed to the development of 420-minute long documentary film welcoming more film Czech film by supporting all stages of CzechMate: In Search of Jiří Menzel, shoots from India. One of production, distribution and promodirected by Shivendra Singh Dungarpur. the most prominent Indian tion, and more, embracing diverse areas The film comprises 85 interviews with filmmakers who shot with of film culture. The fund also adminisaround twenty Czech personalities, prius in recent years was ters the production rebates and promarily of the Czechoslovak New Wave. actor and producer Shah motes the country’s remarkable This was one of the greatest eras of strengths through the Czech Film Czech film, recognized with the highest Rukh Khan—he worked on Commission, one of the divisions of international honors including two Jab Harry Met Sejal here. the Czech Film Fund.

Academy Award winners: The Shop on I’m sure we won’t have to Main Street (1965) by Ján Kadár and wait long for more such The Czech Republic Welcomes Elmar Klos and Closely Watched Trains interesting projects” Indian Filmmakers (1966) directed by Jiří Menzel.

—Pavlína Žipková, “One of the primary missions of Dugarpur’s film originally focused on film commissioner for the Czech Film Commission is to presMenzel, but during the seven years the Czech Republic ent the Czech Republic abroad as an atworking on his documentary, he betractive filmmaking destination and be came acquainted with other personalia reliable source of information and advice to incoming pro- ties of the Czechoslovak New Wave, including Jan Němec, ducers. We actively participate in international film markets Věra Chytilová, Ivan Passer, and Miloš Forman. and production trade shows. In 2018, we attended the The Czech Republic continues to benefit from the creIIFTC–the India International Film Tourism Conclave. India ative tradition and rich history of its illustrious film industry. has great potential, it’s one of the world’s largest film indus- And over the past decades, incoming international productries and we want to encourage Indian filmmakers to shoot tions have given the locals ample experience, contributing to with us,” says Pavlína Žipková, the film commissioner for the the ongoing development of the Czech audiovisual industry.

Czech Republic.

“We look forward to welcoming more film shoots from The Czech Republic is not unknown in Bollywood and India. One of the most prominent Indian filmmakers who other centers of the Indian film industry. In recent years, a shot with us in recent years was actor and producer Shah number of successful films have been shot there, such as Jab Rukh Khan—he worked on Jab Harry Met Sejal here. I’m Harry met Sejal (Red Chillies Entertainment), Bang Bang sure we won’t have to wait long for more such interesting ❐ (Fox Star Studios), Rockstar (Shree Ashtavinayak Cine Vi- projects,” says film commissioner Pavlína Žipková.

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CZECH REPUBLIC—sPECIaL EdITION

EnginEEring a BackBonE

of thE industry and

tradE with india Mechanical engineering plays a major role in the Czech economy and the country’s great concentration of mechanical-engineering companies makes the Czech Republic an engineering hub. With a production base of more than 1,100 companies, the sector supplies complete equipment and machinery for other sectors of economy.

Czech machine-tools, cutting and forming-machine production rely on highly sophisticated design and offer excellent products for clients, in the automotive, aerospace and rail industries. Production of engineering industry is exported around the world, mostly to Germany, Italy, France, Poland and other European countries, as well as to Russia, China and the United States

By Milan Touš

T

he Czech engineering sector has been transformed over the past three decades by globalisation and arrival of foreign direct investments.

The Czech Republic has responded to these fundamental changes by moving its manufacturing facilities and activities up the value chain and became strategic hub of choice for global companies. Investors used Czechia as a base for expanding their production capacities or for their research and development activities.

Highlights of the Czech Engineering Industry ❖ According to Eurostat, the Czech Republic is the most industrialized country in the EU, as manufacturing accounts for more than 26.7% of industry while industry generates nearly 40% of GDP. ❖ With 93 robots per 10,000 manufacturing workers, the Czech Republic surpasses the global average of 66 units and other industrialized countries (International Federation of Robotics, 2016). ❖ The Czech Republic is the only Central and Eastern European country that is a member of the prestigious group CECIMO—the European Association of the Machine Tool Industries. ❖ According to data released by CECIMO, the Czech Republic occupies 15th place in the world and ranks eighth in Europe in production of machine tools. In terms of

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❖

production per-capita, the country ranks eighth globally and fifth in Europe.

The sector is highly competitive, 85% of manufactured products are exported according to the Czech Statistical Office.

Czech-Indian Engineering Cooperation Engineering is on the top of the ranking of sectors with major contribution to the Czech-Indian trade. In order to support the collaboration in the mechanical engineering India was invited in capacity of the partner country to the International Engineering Fair to Brno in 2017. More than 100 Indian companies participated at the trade fair with the Indian official delegation led by Hon’ble Minister of State for Commerce and Industry C. R. Chaudhary.

Subsequently the Czech Republic showcased its engineering sector during the International Engineering Sourcing Show in Chennai in 2018 where the official Czech delegation was led

by Hon’ble Minister of Industry and Trade Tomas Huner. During the trade fair in Chennai annual meeting of the Joint Working Group for collaboration in heavy engineering was held.

Czechoslovak companies took part on the industrialization of India very actively and specially in 60’ number of machines and industrial units were supplied. Czechoslovak companies collaborated with Heavy Engineering Corpora-

tion in Ranchi, with Bharat Heavy Electricals Limited and with steel works in Vizag for example. The names of Czech companies such as Skoda, TOS, ZDAS, Vitkovice are well known in the Indian heavy industry.

There is an ongoing co-operation between the Czech and Indian companies in engineering sector and this area remains the most promising sector for future ventures. There are engineering companies which decided to invest in respective country. Czech companies such as GearSpect, STROS Sedl-

canske strojirny and Tajmac ZPS established production units in India as wholly-owned subsidiaries or joint ventures with Indian partners. Others have strong commercial ties with India and have here their subsidiaries or local business representatives: Papcel, Fermat Group, TOS Hulin, TOS Kuřim, Hutni Projekt Frydek Mistek, Vitkovice, VH Services, Chemoprojekt and others. On the other hand very important Indian investor LEEL Electricals (formerly known as Lloyd Electrics and Engineering) took over Czech engineering company Janka Radotin. Indian companies also found out that one of the best ways to reach out to their European clients, and no matter if in position of subcontractors or with their final production, is to come to Europe and manufacture there. Czechia is a very attractive location for foreign direct investment. It is not only ideally located but it enjoys a stable economy, competitive cost of skilled labour and developed infrastructure with excellent connectivity to neighbouring countries. ❐ —The author is Head of Commercial & Economic Section, Embassy of the Czech Republic in New Delhi, India.

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Buoyant Czech Automotive Industry partners with India According to estimates, the automotive industry contributes 9% to the GDP of the Czech Republic, which is well above the average of the European Union. Czech automotive industry confirmed its major role in the Czech economy through excellent results in 2017 and it was a leading contributor to the fast economic growth. Members of the Czech Automotive Industry Association (AIA) achieved stunning results. They generated 24.4% of the total sales of the Czech manufacturing industry. The exports of AIA members amounted to 21.8 percent of the Czech Republic’s total exports in 2017

By Milan Touš

18 india empire | october 2018

AIA companies achievements in 2017 at glance: ❖ Growth of sales by more than 7%; ❖ Exports rising by over 6%; ❖ Total of 1.4 million vehicles manufactured; ❖ Employment increased by nearly 6%.

All time record volume of vehicles manufactured in the Czech Republic was achieved in the year 2017. Czechia managed to maintain its leading position, both in Europe and worldwide, in bus production pro capita. The country has become the second largest car manufacturer (pro capita) in the world.

The Czech Republic is the 5th largest motor vehicle manufacturer in Europe and 17th largest manufacturer worldwide.

Car components manufacturers contributed with large volumes to the growth of the Czech automotive industry in the year 2017. They contribute significantly also to exports. Six out of ten largest automotive exporters in 2017 in Czechia produce automotive components. The manufacturers of automotive components employ 62 % of the workforce of the automotive industry. Czech car components manufacturers account for more than 42 percent of exports of the whole Czech automotive industry.

Skoda Auto India proud member of Indian automotive industry The company belongs to the longest-established car manufacturers in the world. It was founded in 1895—during the pioneering days of the automobile. Today, the company’s headquarters remain in Mladá Boleslav in Czechia. In 2017 the company delivered more than 1.2 million vehicles to customers worldwide. Skoda Auto has been a part of Volkswagen Group since 1991. Skoda Auto in association with the Volkswagen Group independently manufactures and develops vehicles as well as components, engines and gear transmissions.

Skoda Auto India started operations in November 2001 as a wholly-owned subsidiary. Skoda Auto India offers 4 models to customers in India—Skoda Superb, Skoda Rapid, Skoda Octavia and Skoda Kodiaq. While the Rapid is manufactured in Pune the other models are produced in Aurangabad factory.

Skoda Auto assumes responsibility for the Indian market on Volkswagen Group’s behalf.

In July this year, both companies announced an investment of 1 billion euros towards the implementation of the ‘INDIA 2.0’ model campaign in the Indian market. To ensure the products are perfectly suited to the Indian market, Škoda Auto will set up an engineering centre in the country. All models designed and produced locally in India will be based on Volkswagen Group’s MQB platform, which already fulfils the stricter legal requirements for India that come into force in 2020.

Tatra Trucks reliable partner to Indian armed forces While other heavy truck manufacturers that originated in the historical territory of the Czech lands either did not exist for very long or were acquired by more successful ones, the Tatra brand vehicles are still produced. Tatra is the oldest vehicle factory in Central Europe and the second oldest in the world. The first Tatra passenger car was produced in 1897 and the first truck of the Tatra brand in 1898.

The main production program covers heavy-duty off-road

vehicles and trucks for combined on/off road transport. A high level of human potential represents a significant advantage of Tatra Trucks a.s., not only in R&D but also in terms of the production capacity. Heavy trucks from Koprivnice are famous for their go-anywhere ability in most difficult terrains under extreme weather conditions, high reliability and excellent utility properties. Tatra resists both to frosty weather and abnormally high desert temperatures. This makes their truck successful in India.

Tatra Trucks co-operates with the Indian state-owned company BEML which assembles vehicles here in India. These trucks are supplemented with a superstructure with respect to further needs. Tatra vehicles and spare parts are jointly supplied to the Indian armed forces, especially to the Indian Army.

During the visit of the Hon’ble President of the Republic of India Ram Nath Kovind to the Czech Republic in September this year a Memorandum of Understanding between Tatra Trucks and BEML was signed in Prague. The two companies aim to broaden their technological co-operation in the field of truck production and development.

MOTORPAL to supply Indian automotive industry Mechanical fuel injectors from the Czech company MOTORPAL will be fitted into Indian diesel engines used in lorries. Tens of thousands of mechanical fuel-injection units VERMi will be supplied by the Czech company to important lorry and bus manufacturer Ashok Leyland. MOTORPAL is already a long time supplier of fuel-injection systems in India, but the Czech company focused so far on generators or industrial engines.

A brand new Ashok Leyland engine, which was recently homologated, is complying with the most strict emission limits. The MOTORPAL company counted on tough environ-

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mental rules in the automotive industry and on time-proven and robust solution which is perfectly suitable for hard conditions in India—demanding climate and road traffic. MOTORPAL’s technological solution allows also for maintenance cost savings.

Zetor India establishing sourcing and regional marketing base here Zetor India Private Limited has become the seventh subsidiary of Zetor Tractors based abroad. It covers countries of Asia and Africa. Zetor India Private Limited Company based in Chandigarh in the north of India was set up in July 2014. Recently Zetor succeeded in entering market in Myanmar where a four-year contract with a local partner company was concluded. India was chosen as a hub for activities of Zetor for strategic position in the Asian region and reasonable distance to countries in Africa.

Zetor tractors have been always appreciated in India for their simplicity, easy operation and durability. Between 1961 and 1987, the Zetor company has shipped over 21 thousand tractors to India. Other 60,000 tractors were produced in India.

Awareness of the Zetor brand is there and it is very positive.

The new business representation based in India offers extended product portfolio. In addition to the usual model ranges of Major, Proxima, Forterra and Crystal, it also offers the Zetor Global Range of five easy-to-maintain mechanical tractors with engines ranging from 50 to 80 hp. The new machines will be produced in India in cooperation with a local tractor manufacturer.

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Jawa Bikes are coming back to India Mahindra has recently confirmed that Jawa bikes will be launched in India soon. Upcoming bikes will be products with retro touch and they will follow-up on long tradition and popularity of Jawa motorcycles in India. Jawa bikes were imported to India by the company Ideal Jawa founded by Rustom and Farrokh Irani. Growing demand for Jawa motorcycles convinced the company to establish a factory with support of the king at the time, Jayachamarajendra Wodeyar in Mysore in 1961.

Between 1961 and 1971, Ideal Jawa manufactured Jawa motorcycles under licence. The bikes quickly earned a reputation for being rugged, simple, and unbreakable. The Jawa 250 was a popular choice for urban youth and many Indian racers took home wins on the Jawa 250 while racing with these motorcycles on all kinds of terrain. Since 1971, the Ideal Jawa company manufactured and sold the new motorcycles under the name “Yezdi” with technical assistance from Jawa company. Classic Legends India Pvt Ltd, which is a part of Mahindra Group, signed a deal with Jawa company in 2016 to have rights to sell products under JAWA brand in India and in other South Asian countries. ❐ —The author is Head of Commercial & Economic Section, Embassy of the Czech Republic in New Delhi, India.

CZECH REPUBLIC—sPECIaL EdITION

Confederation of Industry of the Czech Republic

I

n 2018 the Confederation of Industry of the Czech Republic celebrates the 100th anniversary of the establishment of the first Czech Industrialists’ Association. The Confederation of Industry of the Czech Republic, the largest representative of employers in the Czech Republic, is the last in a series of confederations which follows up on it.

The Czech Confederation of Industrialists was established few months before the establishment of the independent Czechoslovak Republic, in June 1918. In its activities continued other industrial associations, such as the Central Confederation of Czechoslovak Industrialists or the Central Confederation of Czechoslovak Industry, and since 1990 it is the Confederation of Industry of the Czech Republic.

The Confederation of Industry is the premier business lobbying organization in the Czech Republic providing a voice for employers at a national and international level. It is a voluntary, non-political and non-governmental body which is acting as the most important employers’ organizations in the Czech Republic.

The main mission is to promote the conditions in which businesses of all sizes and sectors in the Czech Republic can flourish and stay competitive. The Confederation of Industry is an umbrella for 33 associations (so called collective members) together with 141 direct members. The total number of all members is reaching 11 000.

Besides lobbying, the Confederation of Industry also strongly supports international trade in the portfolio of various activities with tight cooperation with Czech and foreign embassies and other bodies all around the globe. It includes organization of business missions accompanying highest political representatives of the Czech Republic, reciprocal receiving of the foreign business delegations, production of various semi-

nars and trade promotion meetings and dissemination of related information. The Confederation of Industry of the Czech Republic for instance closely cooperates with the Confederation of Indian Industry, with who are organized business forums and seminars in India and in the Czech Republic.

The last event organized together was the Czech-Indian Business Summit within the International Engineering Fair in Brno which was being held under patronage of the Confederation of Industry of the CR. The Summit was attended by the Czech Minister of Industry and Trade and by Minister of State of Commerce & Industry of the Government of India and several dozens of representatives of exporters and investors of both countries. Confederation of Industry appreciated that India was the partner country of the Fair last year. Over the years, the International Engineering Fair has become one of the most important European events in the field of mechanical engineering where it is possible to see top products and top technologies of many of Confederation’s member firms.

Confederation of Industry also organized the Business Mission accompanying Czech Minister of Foreign Affairs to India in 2016 in which participated with more than 20 representatives of Czech companies.

India is one of the most important business partners of the Czech Republic in Asia. Trade relations with India have a long tradition dating back to the times of the former Czechoslovakia and it is great that we have succeeded in maintaining this tradition. India is among those countries with which Czech companies maintain traditionally friendly relationships. Many of them currently successfully operate in India and have subsidiaries for Asian countries based in India or have established their factories in the country. Although our mutual trade is still increasing, the possibilities of mutual business cooperation are ❐ not being fully utilized.

october 2018 | india empire 21

dIPLOMaTIC aNd POLITICaL NEWs

nri inVoLVEMEnt in durga PuJa

india, uzbekistan set usd 1 Billion trade target

The Prime Minister, Mr Narendra Modi with the President of the Republic of Uzbekistan, Mr Shavkat Mirziyoyev, at Hyderabad House, in New Delhi on October 1, 2018

I

New York-based philanthropreneur Mridul Pathak who is on the Global Advisory Board of India Empire Magazine seen with West Bengal CM Mamata Banerjee (top)and US Ambassador H.E. Kenneth Juster and U.S. Consul General in Kolkata Ms Patti Hoffman at Durga Puja theme-based pandal at Kalighat, Kolkata

24 india empire | october 2018

ndia and Uzbekistan set an annual bilateral trade target of USD 1 billion to be achieved in two years and agreed to cooperate in counterterrorism efforts as the two sides signed 17 agreements across a range of sectors following delegation-level talks led by Prime Minister Narendra Modi and President Shavkat Mirziyoyev in New Delhi in October.

They also agreed to further strengthen their Strategic Partnership and boost connectivity in a significant manifestation of India's increasing engagements with Central Asia. "We have agreed to strengthen trade and investment ties and have set a bilateral trade target of $1 billion by 2020," Mr Modi said in a joint address to the media with President Mirziyoyev after the talks. "We have also decided to start negotiations for a preferential trade agreement."

Bilateral trade stands at around USD 350 million now. According to a joint statement, both sides called for further promotion of investment. "They noted the favourable conditions for investment by Indian companies in Uzbekistan, including in the framework of the special economic zones and free pharmaceutical zones," it stated. Both countries positively assessed the establishment of an Uzbek-Indian Business Council between industry body CII and the Chamber of Commerce and Industry of Uzbekistan. Mr Modi said India had decided to extend a line of credit (LoC) of USD 200 million to Uzbekistan for housing and other social infrastructure projects.

"We will welcome Uzbekistan's proposals under USD 800 million line of credit and buyer's credit from Exim Bank," he said. "We have proposed to help Uzbekistan in the areas of space, human resource development and IT."

afgHaNIsTaN—CRICkET fEaTURE

A FAIRY TALE RISE The rise—and rise--of Afghanistan cricket through the ranks, from the lower levels to the highest one, has been a phenomenal one. From playing in ICC World Cricket League Division Five in 2008 to making their Test debut earlier this year--with a first ICC Cricket World Cup appearance in 2015 in between--their journey has been rapid and unrelenting. Another chapter in Afghanistan’s already impressive book will be added next year, when they take part in the ICC Cricket World Cup 2019 in England and Wales. The journey to next year’s tournament has been a turbulent one—it involved coming back from the brink at the ICC Cricket World Cup Qualifier earlier this year. We chart the rise of cricket in Afghanistan, from humble beginnings to performing on the biggest stage of all

C

ricket was played by the British in Afghanistan in the 19th century, but it became popular among Afghans living in refugee camps in Pakistan in the 1990s. With cricket being as popular as it is in Pakistan, it was little surprise that Afghan camps just outside Peshawar saw plenty of cricket action. In the early 2000s, as Afghans started to make their way back home, they took cricket with them.

AFFILIATE STATUS BY ICC IN 2001 The cricket board itself was formed in 1995, with the national team formed in 2001; the same year the ICC granted Affiliate status to the Afghanistan Cricket Federation (now the Afghanistan Cricket Board).

ACC TROPHY IN 2006 After being granted associate membership of the Asian Cricket Council (ACC) in 2003, the team hit the ground running in the 2006 Asian Cricket Council Trophy, reaching the semi-final. That increased the excitement among the Afghan public, and the next few years were full of impressive performances. Under the leadership of Nawroz Mangal and with impassioned fans spurring them on, Afghanistan became joint winners of the inaugural ACC Twenty20 Cup in 2007 after the final against Oman ended in a tie.

The same year, Afghanistan won the ICC World Cricket League Division Five, defeating Jersey in the final. They remained 26 india empire | october 2018

unbeaten in the ICC World Cricket League Division Four in Tanzania and then won the ICC World Cricket League Division Three in Argentina. Their performances in the ICC World Cricket League paved the way for Afghanistan to take part in the qualifiers for the ICC Cricket World Cup 2011. The side did remarkably well to reach the Super Eight stage in South Africa in 2009 but faltered at the last stage, where they lost to Canada.

However, their run helped them gain one-day international status in April 2009—a phenomenal achievement considering they started out barely eight years before. Afghanistan next set their sights on the ICC World T20 in 2010, qualifying for the event by winning the ICC World T20 Qualifier 2010 held in Dubai, defeating Ireland in the final by eight wickets. They rubbed shoulders with the big boys on the biggest stage, but not with much success, losing to India and South Africa to crash out of the tournament early. They recovered from their first World T20 tournament quickly though, beating Scotland in the ICC Intercontinental Cup final in Dubai in December the same year to win the event at their first attempt.

Afghanistan first faced a full member in an ODI with a clash against Pakistan in Sharjah on 10 February 2012. Although they lost by seven wickets, it was a red-letter day in the history of Afghanistan cricket. They also hosted Australia in a one-off ODI in Sharjah the same year.

Promotion to Associate membership (2013) In 2013, Afghanistan was promoted from Affiliate to As-

sociate member by the ICC. After narrowly missing out on an ICC Cricket World Cup 2011 berth, history was not going to repeat itself. A clinical Afghanistan unit, led by Mohammad Nabi, beat Kenya by seven wickets to finish second in the ICC World Cricket League Championship in Sharjah. The victory meant Afghanistan would travel to the biggest event in world cricket—the ICC Cricket World Cup 2015.

They lost five matches in the group stage, but on 26 February 2015, Afghanistan created history when they recorded their first-ever win in a World Cup match, defeating Scotland by one wicket.

TEST STATUS—2017 On 22 June 2017, Afghanistan were awarded Full Member status by the ICC along with Ireland. Soon, their maiden Test was slotted against India, to start on 14 June 2018 in Bengaluru.

Like with most new teams, there was the question of the immediate future once they had reached prominence. But in Afghanistan’s case, the next generation seems ready. They first qualified for the ICC Under-19 World Cup in 2010 and their best result came at the ICC Under-19 World Cup 2018 where they reached the semi-finals before losing to Australia. In 2017, the colts also won the Under-19 Asia Cup by beating Pakistan in the final by a huge 185 runs.

In the current Test squad, spinners Mujeeb Ur Rahman (17), Zahir Khan (19) and Wafadar Momand (19) are all still teenagers, while world-class leg-spinner Rashid Khan and batsman Ihsanullah are both 20.

WC QUALIFIER—BACK FROM THE BRINK Defeats to Scotland, Zimbabwe and Hong Kong left

Afghanistan’s World Cup Qualifier campaign in tatters. Having gone into the tournament as one of the favourites to book their spot at the ICC Cricket World Cup 2019, three defeats from these games left Afghanistan with little hope of making it to CWC19. However, a win against Nepal, who then did Afghanistan a favour by beating Hong Kong, helped them progress to the Super Six stage.

From there, it all went their way. They recorded wins against the Windies, UAE and Ireland—while relying on other results to go their way—to come back from the brink and finish second in the table, therefore confirming their place at the World Cup. The icing on the cake came as they inflicted another defeat on the Windies in the final to lift the World Cup Qualifier trophy and finish the campaign in style.

While the result and performance were far from what Afghanistan would have dreamed of, they still made more history in June 2018 when they made their Test debut.

India hosted Afghanistan in a one-off Test in Bengaluru, which ended with defeat inside two days for the debutants.

The game, however, was about more than the result. The sight of Afghanistan in the famous whites of Test cricket just 17 years after the creation of the national team was a huge victory in itself.

HOW ABOUT 2019?

2019 represents another significant moment for Afghanistan cricket—a second Cricket World Cup appearance and the potential to really shock the world. Can they create yet more history? ❐ Courtesy—www.icc-cricket.com october 2018 | india empire 27

dIPLOMaCY aNd aRT

A BRUSH WITH HOPE

An exhibition by Bangladeshi women painters—Zebun Nahar Nayeem, Elham Huq, Rubina Akhter and Mini Karim—was on display in October at the AIFACS art gallery in New Delhi. It was curated by Qazi Raghib, an art critic in Delhi. H.E. Mr Syed Muazzem Ali, High Commissioner of the Republic of Bangladesh, inaugurated the event, aptly titled The Hope, in the presence of the High Commission’s Minister (Press) Mr Farid Hossain and NGMA Director General Mr Adwaita Gadanayak

28 india empire | october 2018

India, Bangladesh working on free trade agreement: Minister Prabhu

I

ndia and Bangladesh are already working on a Comprehensive Economic Partnership Agreement (CEPA), or free trade agreement (FTA), which would set an example for giving a boost to regional trade in South Asia, Commerce Minister Suresh Prabhu has said.

Launching a World Bank Group report on trade in South Asia, Prabhu said that during his just concluded visit to Bangladesh and talks with his counterpart there, it had been decided to set up seven border 'haats', or markets, some of which will start functioning immediately.

"During my visit to Bangladesh, I proposed that we should try to sign the Comprehensive Economic Partnership Agreement and we are working with our Bangladeshi counterparts to take it forward," Mr Prabhu said. "India and Bangladesh have agreed to upgrade trade logistics for seamless movement of cargo and we have already identified seven dual hubs, some of which will start working immediately," he said, adding that given the cultural and linguistic affinities between both countries there is immense potential for trade and cooperation.

Mr Prabhu said the Bangladesh Trade Minister along with a delegation has been invited to visit India in October to discuss the trade and investment potential

between the two countries. The Minister also said India and Sri Lanka are "working closely together" to finalise a free trade agreement. "We are happy to develop trade with other countries in South Asia. Development of South Asia is hindered by lack of intra-regional trade and integration," he said.

The World Bank report - "A Glass Half Full: The Promise of Regional Trade in South Asia" - says India's trade with South Asia at around USD 19 billion is only 3 per cent of its global trade worth USD 637 billion. The report also points out that current trade between India and Pakistan at a paltry USD 2 billion annually, could go up to ❐ USD 37 billion in the absence of artificial barriers.

DIPLOMATS TO InDIA EMPIRE People-to-people contact between Bangladesh and India has increased manifold during recent years and the highest number of tourists coming to India last year were Bangladeshis. Likewise, a large number of technically qualified Indian nationals are currently engaged in Bangladesh’s health, IT, banking and other service sectors. Cultural teams from both the countries do participate in various cultural programmes, book fairs, film festivals in each other’s capital. A good number of Bangladeshi students are also studying in India.

—H.E. Mr. Syed Muazzem Ali, High Commissioner of Bangladesh to India We would welcome views and comments from Missions at sayantanc@gmail.com october 2018 | india empire 29

dIPLOMaTIC NEWs

Sabkasaath, Sabkavikas

It’s time to take India-UK fintech ties to the next level

By Lord Mayor of London, Charles Bowman

R

eaders will no doubt associate the phrase with Prime Minister Modi and his commitment to work together with the people, for the development of all. But as Lord Mayor of the City of London, and one of the principle ambassadors for the UK’s financial and professional services sector, I can’t help but think this mantra also reflects the role of financial technology, better known as fintech, in developing India’s economy.

And that is exactly the message I’m bringing with me to India as I lead a delegation of UK startups on a hugely exciting week-long visit which takes me to Mumbai, Bangalore and New Delhi. The City of London Corporation that I represent is the governing body of the UK’s Square Mile, the historic centre of London that houses the world’s leading financial and professional services hub. We are home to over 250 foreign banks, including the State Bank of India, which has been here nearly 100 years. Every day nearly 500,000 people come to work in the City’s 24,000 businesses, alongside our just over 9,000 residents.

India is an important partner for the City, and we are home to more than 15 Indian financial services firms, and the world’s largest market for Rupee-denominated Masala bonds. The City Corporation has a longstanding programme of work in India, and opened a representative office in Mumbai ten years ago.

We work hand-in-hand with the UK government and the Indian High Commission in London on a number of programmes, including the Make in India Access India Programme, which works to support UK SMEs expanding into the country. Few will deny that India is on the cusp of a revolution in finance, with total financial transactions on retail digital payment platforms projected to explode by 400% to INR 1 trillion by 2023.

This is a huge jump from the current figure of INR 200 billion, and shows just how quickly India’s expertise in ecommerce and mobile payments is developing.

But while the growth of firms like Paytm is impressive, and a welcome development of the Indian e-payments sector, there are still challenges to overcome, including the fact that 40 per cent of the total population of India remain unbanked and more than 80 per cent of payments in India are still made by cash. There’s also room to build on India’s skills development in cyber security, insurance and regulation.

30 india empire | october 2018

It’s here where the UK can lend support. After all, we’re a world leader in the field of fintech, which contributes over £5 billion to the UK economy each year, and in 2017 UK payment systems dealt with more than 21 billion transactions worth around £75 trillion. There are 76,500 fintech related jobs in the UK, a number which is set to grow beyond 100,000 by 2030.

PMs Modi and May recognised the great potential for technological cooperation when they launched the India-UK Tech partnership back in April. Our collaboration on fintech sits within this context—using the latest technology to address real world problems.

The UK can also help India improve insurance penetration in the country. During my visit I’ll be launching a new report that the City of London has written alongside PwC India, on how the UK and India can further work together in insurance, focussing on the potential for technology to revolutionise and streamline the industry.

In turn, there is a huge amount that the UK can learn from India. For example India Stack, the unified software platform behind Aadhaar is an incredible achievement, as is the government’s push towards ensuring financial inclusion through its Digital India initiative. Not to mention the recent announcement to increase health coverage across the country— an incredible initiative we will follow with keen interest.

Both our countries have so much to gain from working together on financial technologies, and indeed in other areas of financial services. As PM Modi himself has stressed, the City of London is of “great importance to India”, and will remain so. I wholeheartedly agree and look forward to hearing how we can take our relationship to the ❐ next level.

—The author is spokesperson for the City of London, including leading overseas business delegations to key international markets on behalf of the UK’s financial and professional services industry. He strengthens economic ties with the UK, identifies new business opportunities and promotes UK as a top global destination for foreign investment.

UNION MINISTERS INTERVIEWED BY

Mr Nitin Gadkari Minister for Road Transport and Highways, Water Resources, River Development and Ganga Rejuvenation, and Shipping

Mr Dharmendra Pradhan When Minister of State (IC), Ministry of Petroleum and Natural Gas

Mr Ananth Kumar Minister for Chemicals and Fertilizers

Mr Anant Gangaram Geete Minister for Heavy Industries and Public Sector Enterprises

Mr Chaudhary Birender Singh Minister for Steel

Ms Smriti Irani When Minister for Human Resource Development

Mr Radha Mohan Singh Minister for Agriculture and Farmers Welfare

Mr Narendra Singh Tomar When Minister for Steel and Mines

Mr Ram Vilas Paswan Minister for Consumer Affairs, Food and Public Distribution

Ms Uma Bharti When Minister for Water Resources, River Development and Ganga Rejuvenation

Mr Thawar Chand Gehlot Minister for Social Justice and Empowerment

Mrs Sushma Swaraj Minister for External Affairs and Minister for Overseas Indian Affairs

Mr Shripad Y Naik Minister of State (IC), AYUSH

Mr VIjay Goel When Minister of State (IC) for Youth Affairs and Sports

Mr Babul Supriyo Minister of State for Heavy Industries and Public Enterprises

Mr Rajiv Pratap Rudy (Ex) Union Minister of State for Skill Development and Entrepreneurship (IC)

PiCtures By: siPra Das

(May 2014 onwards)

PiCtures Š siPra Das

PHOTO GALLERY

Prime Minister Narendra Modi and Russian President Vladimir Putin at Hyderabad House

LEFT: Air Chief Marshal Birender Singh Dhanoa welcomes cricketer Sachin Tendulkar at the 86th Air Force Day anniversary celebrations at Hindon. RIGHT: Delhi CM Arvind Kejriwal (right) and his deputy, Manish Sisodia, are expected to come up with solutions for better air quality as winter sets in 32 india empire | october 2018

Business and

Governance

BUsINEss aNd gOVERNaNCE

I

SOlAR INDUSTRy CAN ATTRACT USD 80 BIllON—pM MODI

ndia wants to create a robust ecosystem for the manufacture of solar panels in the country to give a filip to the sector which can provide opportunities for investments worth USD 70-80 billion, Prime Minister Narendra Modi has said. Inaugurating a joint assembly of the International Solar Alliance (ISA), the Indian Ocean Rim Association (IORA) Renewable Energy Ministerial and Global RE-Invest 2018 at Greater Noida, Mr Modi said in the last four years India has emerged as the most favorable destination for renewable energy investment and has attracted USD 22 billion of investment in the sector.

He said the Government's target is to generate 40 per cent of India's total energy requirements in 2030 by non-fossil fuel based sources.

"Solar power generation costs in India have gone down hugely, while the country has become the most favourable destination for renewable energy. In the last 4 years, the sector has attracted investments worth $22 billion," he said. "We want to set up a strong ecosystem for manufacture of solar panels in the country. This area has immense opportunity available, for investment worth $70-80 billion."

Elaborating on India's strides in clean energy development during the tenure of the NDA government, Modi said that 72 gigawatt (GW) of renewable energy capacity had been added in this period, while solar capacity had gone up nine-fold from earlier. "Power storage is equally important and a National Energy Storage Mission is being drawn up from the perspectives of demand creation, manufacture, innovation and augmenting storage capacity," the Prime Minister said.

34 india empire | october 2018

Prime Minister Narendra Modi

He said that towards achieving the government's target of achieving 175 GW renewable energy capacity by 2022, it is planned to install 28 lakh solar pumps across the country in the next four years which would add capacity of 10 GW. Giving the call of "One World, One Sun, One Grid", Modi said that the "ISA will assume tomorrow the role that the OPEC (Organisation of Petroleum Exporting Countries) is playing today. We are moving to a future where oil wells will be replaced by the rays of the sun in meeting our energy needs," he said. â??

Il&fS BOARD RECAST As the debt-stricken IL&FS Group moved from crisis to crisis, the Central government in October superseded the management of the beleaguered company by appointing a six-member board led by banker Uday Kotak to restore its financial solvency

Mr Uday Kotak

“The NCLT (National Company Law Tribunal) suspended the existing board and directed that the suspended members should not represent the company in any form with immediate effect," said Ministry of Corporate Affairs (MCA) in a statement. "The NCLT approved the induction of six directors recommended by the government, in the Mr Vineet Nayyar first instance, consisting of Uday Kotak, MD & CEO of Kotak Mahindra Bank, as Non-Executive Chairman and Vineet Nayyar, G.N. Bajpai, former Chairman, SEBI, G.C. Chaturvedi, Non-Executive Chairperson, ICICI Bank, Malini Shankar and Nand Kishore as directors."

The development comes after the NCLT Mumbai ordered supersession of the existing board on a plea moved by the MCA to prevent any "further mismanagement in order to protect public interest". In Delhi, Economic Affairs Secretary S.C. Garg said the Government in public interest moved NCLT to supersede the management of IL&FS on grounds of mismanagement. "NCLT has allowed appointment of a new board comprising people with proven record of managing financial and infrastructure institutions...it is not a takeover," Mr Garg said.

Key public sector lenders and undertakings such as LIC and SBI have a 25.34 per cent and 6.42 per cent stake, respectively, in the firm which has around Rs 91,000 crore in long-term debt.

Besides, institutional investors, infrastructure projects, mutual funds and other lenders were at risk from the

collapse of the company.

The crisis has dented equity investors' confidence in the entire NBFC (Non-Banking Financial Company) space.

As per some industry estimates, the company has an urgent liquidity requirement of around Rs 5,000 crore. The move is reminiscent of an earlier decision in which the Central Government had appointed Mr G N Bajpai a new board of the IT major Satyam. Lately, the credit crunch has led a few of the company's subsidiaries to default in servicing some of the inter-corporate deposits. Subsequent to defaults, rating agency ICRA downgraded the ratings of its short-term and long-term borrowing programmes.

IL&FS Ltd is a core investment company and serves as the holding company of the IL&FS Group, with most business operations domiciled in separate companies which form an ecosystem of expertise across infrastructure, finance and social and environmental services. Initially promoted by the Central Bank of India (CBI), Housing Development Finance Corporation Ltd and the Unit Trust of India, IL&FS was incorporated in 1987. Over the years, it has inducted institutional shareholders including SBI, LIC, ORIX Corp of Japan and Abu Dhabi Investment Authority (ADIA).

As on March 31, 2018, LIC and ORIX Corp are the largest shareholders in IL&FS with their stakeholding at 25.34 per cent and 23.54 per cent, respectively. Other prominent shareholders include ADIA (12.56 per cent), HDFC (9.02 per cent), CBI (7.67 per cent) and SBI (6.42 â?? per cent).

september 2018 | india empire 35

BUsINEss aNd gOVERNaNCE

How to bridge india’s tecH-induced skill gap

By Amit Kapoor

T

he world stands on the brink of the Fourth Industrial Revolution, powered by a wide range of new technology breakthroughs—Artificial Intelligence, Machine Learning, advanced robotics, Internet of Things, cloud computing and 3D printing—and the revolution is expected to result in major changes in the labor market globally by reducing the

36 india empire | october 2018

demand for middle-skilled workers doing repetitive tasks, and increasing the demand for more highly-skilled workers and also low-skilled workers doing non-routine work.

While many developed countries, such as the US, Japan and several European economies, are already experiencing this labor market polarisation, the market is also hollowing out in many developing countries--although at a rate slower

than the developed world (World Development Report, 2016).

In India's case, this polarisation can be seen in the organised manufacturing sector, where the share of highskilled occupations in total manufacturing employment increased by more than three percentage points, while the share of middle-skilled jobs decreased by 6.3 percentage points from 1993-94 to 2011-12. Looking at the impact of technological progress on various manufacturing industries in India, capital-intensive industries—automobile manufacturing, for instance—have a greater probability of adopting advanced automation and robotic technologies, compared to the labor-intensive manufacturing industries such as textile, apparel, leather, and footwear, and paper manufacturers.

Further, in the services sector, particularly in the IT sector, e-commerce, banking and financial services and health care services, there is a huge potential for automation technologies, which would increase the demand for skilled workers and reduce the demand for middle-skilled workers.

However, in India, over 80 percent of the working population is engaged in low-skilled jobs in the unorganised sector. These workers aspire to join the middle-skilled workforce in the organised sector to raise themselves from poverty. However, the changing nature of work due to technology advancements in the organised sector prevents their upward mobility and any improvement in their incomes.

Addressing the challenges induced by technological advancements requires reforms in India's higher education system. The institutes of higher learning should redesign the course curriculum by understanding the key market transitions amidst the technological advancements. This would enable the country to create a workforce which could be placed in the positions demanded by the companies in the digital era and thus bridge the skill gap in the labour market.

However, looking at the current state of higher education in India, one can perceive that it is not just the quality of the system which needs to be improved, there is also much to be done in terms of the number of students enrolled in institutes of higher learning and heterogeneity existing in access to higher education based on socioeconomic status, gender and also region. The Gross Enrollment Ratio (GER) in tertiary education in India is 26.9 per cent, which is lower than that of China (48.4 per cent), Indonesia (27.9 per cent) and the Philippines (35.3 per cent), among others.

Further, the GER in India for the male population is 26.3 per cent and 25.4 per cent for females. The GER also varies across different social groups. For the Scheduled Castes it is 21.8 per cent and 15.9 percent for the Scheduled Tribes.

There are also wide variations in the number of colleges for higher education across different states in India, with the lowest number of seven colleges in Bihar for every 0.1 million of eligible population to 51 in Telangana and

Karnataka. The top eight states in terms of highest number of colleges in India are Uttar Pradesh, Maharashtra, Karnataka, Rajasthan, Andhra Pradesh, Tamil Nadu, Gujarat, and Madhya Pradesh, which have 28 or more colleges per 0.1 million of the population.

The disparity in the distribution of the colleges is also seen across different districts in these states, with the top 50 districts having about 32.6 per cent of the colleges.

In addition to the inequalities existing in the access to institutions for higher education, another issue with the state of higher learning in India is that a majority of the students are enrolled in undergraduate programmes, compared to masters and the doctoral programmes.

Moreover, at the undergraduate level, there is a low pass out rate of the students -- of the 2,90,16,350 students enrolled, the number of pass outs have been 64,19,639 in 2017.

Given that the Indian system of higher education faces multiple challenges of low gross enrollment in its colleges and universities, with most students settling on undergraduate studies, along with various socio-economic inequalities existing in access to higher learning, it is imperative for the country to address these issues.

Further, emphasis must be given on increasing the number of students who pass out of colleges/universities, along with increasing enrollment numbers.

The technology-induced skill gap which the Indian economy is facing across its different sectors is bound to increase with the given higher education system. The change has to be brought from outside the existing constructs.

Improvement in the teaching methodology from the traditional lecture courses, accreditation of online courses and redesigning the course curriculum to make it industryrelevant are some of the ways the technology-led changes in ❐ the labor market can be dealt with.

—Amit Kapoor is chair, Institute for Competitiveness, India. Deepti Mathur, senior researcher at large with Institute for Competitiveness contributed to the article

october 2018 | india empire 37

COLUMN: YOgI asHWINI

MINd aNd BOdY

POwER OF YagYaS

By Yogi Ashwini

yogi ashwini

E

nergy can neither be created nor be destroyed, it only changes form.

This is not only a fundamental law in Physics but the basis of this creation. Everything we see around us is a form of this energy, which the vedic rishis called prana, having a specific frequency. The frequencies which lie in your range are perceivable to you, those which lie below or above, you are unable to perceive, but that does not mean that they don’t exist. The frequencies of the physical dimension are just a minor part of the endless spectrum of frequencies of the brahmand.

Try out a simple experiment, light a candle and put your palm over the candle flame and keep moving your palm higher and higher, you will reach a point when you are no longer able to feel the heat of the flame. Does that mean that no heat exists there? Certainly not, as generation of heat is a continuous process. You feel it only till the point the limited sensitivity of your palms allows it to be sensed, not beyond that. So is the case with the creation. The various dimensions manifested, semi-manifested and unmanifested exist. It is your level of sensitivity, level of consciousness, that determines what dimension you are able to access.

Vedic sages gave a simple tool to access the semi-manifested dimension, or the devlok – Yagyas. Yagyas are a means to nourish the devas, a direct interaction with devlok and the forces that run this creation. The practice involves making oblations to fire along with specific chants. The

38 india empire | october 2018

fire having the ability of transformation can transform the physical into the subtle and the mantrashave the ability to manifest the ability and power of devas in the physical world; health, beauty and glow in the practitioner are some of the by-products.

To perform a yagya just take a copper bowl/kund, put some cow dung cake in it along with sesame and guggul. Light fire using camphor and give oblations of ghee from a desi cow while chanting the mantras. You may also acquire a ready to do yagya kit from Dhyan Ashram. Repeat the candle experiment with yagya agni of comparable size. When you will try and feel the fire of the yagyayou will feel a cooling and tingling kind of sensation, it would be very different from the stinging heat of the candle flame. I have personally done many experiments with the fire of the yagyas and many a times the people watching have put their hand in the fire, without feeling the sting or burn, you can watch these videos on our website (www.dhyanfoundation. com), manifestations of the gods and goddess are also there for you to witness.

But remember for mantras to be effective you have to receive them from a siddha of that mantra, a Guru who does not charge you a fee for it, because tying these Vedic sciences to commerce renders them powerless. ❐ —Yogi Ashwini is the Guiding Light of Dhyan Foundation and can be reached at www.dhyanfoundation.com