India newsletter 07 2013

India Newsletter | 1

INDIA NEWSLETTERPublished by the Embassy of India, Vienna

Year 3 | Issue 31 | July 2013

Featured IndustryoIl and gas

2 | India Newsletter

News

QUICK FACTSSnapshot of last month’s Highlights

India’s leather ex-ports increased

by 11.6 per cent to US$ 367 million in April 2013 as com-pared to the cor-responding month last year.India’s gold imports during April-June

2013 are expected to be almost half the imports of whole of 2012.

India’s share in global invest-

ments is expected to almost double by 2030.Foreign institutional investors (FIIs)

have infused over Rs 22,000 crore (US$ 3.89 billion) in the Indian stock market in May 2013.

Around 42 per cent Indian

companies are in-vesting heavily in social networks, mobile computing, analytics and cloud computing (SMAC) activities.The market for steel service cen-

tres (SSC) in India is expected to grow at a compound annual growth rate (CAGR) of 18 per cent during 2017-18.

The IT market in India is expected to grow to US$ 44.8 billion in

2014 from US$ 35.1 billion in 2012.

Private equity (PE) firms an-

nounced invest-ments worth US$ 2.1 billion in In-dian companies in May 2013, the highest amount for any month in more than five years.Pharma exports from India grew

by 10.55 per cent year-on-year to US$ 14.6 billion during 2012-13.

At US$ 69 bil-lion, India re-

ceived the largest quantum of global remittance in the world in 2012.Telecom companies like Bharti

Airtel, Vodafone India and Idea Cellular have together garnered 91 per cent of the incremental market share in the past 12 months in India.

Capacity of steel production in

India has increased to about 90 mil-lion tonnes (MT) in 2012 from 66 MT in 2009.

As per the National Pharma policy, prices of 150 essential medicines

in India are expected to reduce by up to 50 per cent by July 2013.

Services exports from India stood

at US$ 12.84 billion in April 2013, up 22.5 per cent over US$ 10.48 billion reported in April 2012.Textile exports from India is ex-

pected to reach US$ 50 billion in 2013-14.

India produced 6.73 million tonnes (MT) of steel during May 2013

against 6.63 MT in the same period last year.

India continues to feature in the

list of most expen-sive office markets across the globe with New Delhi (Connaught Place) ranking at the 5th position.Export of coconut and coconut

products from India reached a record Rs 1,050 crore (US$ 175.39 million) in 2012-13, growing by 26 per cent as compared to the previ-ous fiscal.

The business process management (BPM) industry in India is expect-

ed to reach US$ 50 billion by 2020.


INDIA-FORUMS IN GRAZ AND LINZPast Events Report

MeSSAGe FROM HON’bLe exTeRNAL AFFAIRS MINISTeR On occasion of the “Passport Seva Divas”

IMpORTANT NOTICe CONCeRNING vISA FeeSFrom our Consular Wing

Articles

The Embassy of India, Vienna, par-ticipated in the “Industry Forum –

FMCG, Luxus, Lifestyle & Design in India”, organized by the Chamber of Commerce of Styria in Graz on 18th June 2013, and in the “Going to India and South-East Asia Forum”, organized by the Chamber of Commerce Upper Austria in Linz on 19th June 2013.Both the events were followed by pres-entations on various aspects related to current economic situation in India, op-portunities for Austrian firms in India, integrating cultural and legal aspects of doing business in India, FMCG sector and other potential sectors for doing busi-ness in India.Dr. Wolfram Moritz, the Austrian Trade

Commissioner in Delhi and Mag. Vera

Fritsch, Key Accounts Manager at the

Austrian Embassy in Delhi were presents

on both the occasions. Mag. Hans-Joerg-

Hoertnagl, Regional Manager for South

and South East Asia at the Austrian Fed-

eral Economic Chamber made presen-

tations during both events the events.

Among the speakers, Mr. Sanjay Sharma,

Director of M/S Wht’s In, India intro-

duced several aspects of the Luxury mar-

ket in India and Mr. Ravi Avalur, Partner

and Vice President of M/S Tecnova, pre-

sented a very informative compilation on

‘business India’ focusing on market entry

alternatives.

It gives me immense pleasure to declare that the Ministry of External Affairs has

decided to celebrate the 24th June every year as ‘Passport Seva Divas’. lt was on this day in 1967 that the landmark Pass-ports Act was enacted, laying the foun-dation of a sound legal framework for issuance of Passports and other travel documents in the post-independent lndia.

Today, Passport service is one of the important public services delivered by the Central Government. ln 2012, 7.39 million lndian citizens were provided Passport services through the all-lndia network of 37 Passport Offices and 180 Indian Missions/Posts abroad. The num-ber of passport applications have regis-tered almost a three-fold increase since 2000. ln this context, the successful im-plementation of the Cabinet-mandated Passport Seva Project in 2012 assumes

special significance. The Project, which was undertaken to comprehensively overhaul Passport issuance and delivery system, was completed swiftly over two years and by June 2012 the task of setting up of 77 Passport Seva Kendras (PSKs) was accomplished.

The transformational changes have been brought by the Government with the aim to extend Passport services to the citizens by expanding the network for Passport services and ensuring service delivery with greater security, reliability and defined service levels. Some of the other steps to make the Passport lssu-ance System simpler, speedier and se-cure include strengthening of the Public Grievance Redressal Mechanism, estab-lishing multilingual National Call Centre operating round-the-clock, creating user-friendly portal, holding Passport Melas

and Adalats to reach out to the people, improvement in physical infrastructure in Passport Offices and introduction of new security features in Passport booklets to keep pace with international develop-ments.

On this occasion, I would like to convey my greetings to all the employees of the Central Passport Organisation, officials doing Passport work in Missions/Posts abroad and personnel deployed by M/S Tata Consultancy Services at PSKs. As we observe Passport Seva Divas today, let us work together to make Passport Seva programme a model of good governance and efficient citizen service delivery in the country.

(Salman Khurshid)Minister of External Affairs

Government of India

1With effect from July 1, 2013, service charges for visa services will be Euro

5, 20 (Five Euro Twenty Cents Only). Visa Fees, as applicable, will remain unchanged.2. Applicants are advised to check their particulars on the visa sticker at the time of collection of the passports and should

immediately contact the concerned offi-cial for rectification of any mistake detect-ed on their visas issued by the Embassy.3. Applicants should ensure that their photos are 2 inches x 2 inches (51 mm x 51mm) in size with white background. Details about photo requirements can be

found on the Indian Online Visa Site. Pho-tos which do not meet these specifica-tions will not be accepted.4. Applicants are advised not to finalize their travel plans or book flight tickets to India before obtaining appropriate visa.


Articles

GAW GROUp pUbLISHeS ARTICLe ON THe INDIAN eCONOMIC FORUMIndia in Austria

INDIA-AUSTRIA bILATeRAL RepORTFirst Quarter FY2013-14

Austrian Imports from India (Jan-Mar 2013)

The Austrian GAW GROUP publishes article on the “Indian Economic Forum”

event co-organized by the Indian Embas-sy in the Styrian Chamber of Commerce

in March, 2013. Excerpt from page 8 of the company’s news magazine:

Austrian imports from India decreased by -2.53% in the first quarter of

2013. Major sectors of bilateral trade such as Vehicles and Organic Chemicals have registered a steep decrease. The numbers cannot be interpreted as a downward trend for neither of the sec-tors since the trade volume fluctuations along the year tend to turn these figures around. While in 2012, the majority of imports were Vehicles followed by Ap-parels, the current figures show Apparels as the most imported item from India in the first quarter of 2013. Additionally, electrical machinery and pharmaceutical products, for example, although showing

significant relative growth, account for about the same share of total imports in comparison to 2012 all-year figures. Both these statements also support the afore-mentioned note that the current figures cannot be seen as concrete trends.

As far as exports to India are concerned, the decrease in trade was much steeper, registering a drop by -14.08%. In com-parison to Austria’s total exports to the world, the figures represent a represent-ative slowdown in relation to India. The results indicate that the decrease is not to be found in the major three export ar-eas (Machinery, electrical machinery and

Measuring Equipment). Again, these num-bers cannot be understood as conclusive trends due to monthly trade volume fluc-tuations. This is even easier to note due to the fact that some major industries of exports such as Railway/Rolling Stock does not even feature in the top-10 list. Interesting to note is the large increase in exports of Man-made fibers, which dou-bled its value for the period, accounting now for 3% of total exports and featur-ing for the first time in the top-10 list of exports, taking the spot of Copper Arti-cles when comparing to 2012 final annual results.


Articles

INDIA ReGISTeReD SeCOND HIGHeST GROWTH IN HNWIReport on HNWI Population for 2012

bRITISH INDIAN bUSINeSSMAN bUYS AUSTRIAN HYpO ALpe ADRIAIndia-Austria Business

India stood at second position with 22.2 per cent growth in its high net worth

individuals (HNWI) population in 2012 after Hong Kong.

The investable wealth of the world’s HN-WIs registered a 10 per cent growth in 2012 to reach a record high of US$ 46.2 trillion, according to the World Wealth Report 2013, released by Capgemini and RBC Wealth Management.

One million individuals have joined the global HNWI population, which reached 12 million, registering a growth of 9.2 per cent.

HNWI population increases were strong in 2012, said Mr Jean Lassignardie, Global Financial Services Chief Sales and Mar-keting Officer, Capgemini. In 2012 North

America’s population of 3.73 million HNWI surpassed the Asia-Pacific’s 3.68 million, while its HNWI’s wealth reached US$ 12.7 trillion, above the US$ 12 tril-lion in the Asia-Pacific.

Hong Kong experienced a 35.7 per cent increase in its HNWIs population, fol-lowed by India, with 22.2 per cent growth among the Asia Pacific countries.

In India, the growth in number of HNWIs was attributed to positive trends in eq-uity market capitalisation, gross national income, consumption and real estate. Reform measures and monetary easing helped the Indian equity markets to gain by 23.9 per cent.

In Asia-Pacific, equity markets respond-ed well to aggressive monetary policy

moves. The global HNWI wealth is fore-

cast to grow by 6.5 per cent annually

over the next three years with the Asia—

Pacific region projected to grow at one

and a half times the global average at 9.8

per cent and is expected to lead global

growth, highlighted the report.

“Despite a marked focus on capital pres-

ervation and high cash allocations, high

net worth individuals achieved a record

level of wealth in 2012, suggesting further

growth lies ahead if trust and confidence

in the markets increase further,” said

Mr M George Lewis, Group Head, RBC

Wealth Management & RBC Insurance.

British Indian businessman and inves-tor Sanjeev Kanoria has acquired

the domestic banking unit of Austrian bank Hypo Alpe Adria for around $85.5 million. The nationalised bank agreed to sell Hypo Alpe Adria Bank AG, the unit which operates in the southern Austrian province of Carinthia, to Anadi Financial Holdings, the Klagenfurt-based lender said in a statement.

London-based Kanoria, 49, is the brother of Hemant Kanoria, chairman of Indian group SREI Infrastructure Finance Limit-ed, which had been named by the Austri-

an media as a potential buyer of the bank.

“New products, additional markets and fostering the core region are the aims of our engagement,” Kanoria, who is also a doctor, said in the statement, adding that SREI will provide “financial expertise” to the business.

“The investor is not only the clearly best bidder, but also has first-class experience in international business and convincing connections to leading financial organisa-tions,” Hypo Alpe chief executive officer Gottwald Kranebitter added in the state-ment.

The sale - the first step in the bank’s campaign to divest operating units under pressure from the European Commission - is now subject to regulatory approval.

The sale was managed by JPMorgan Chase & Co and TJP Advisory & Manage-ment Services, Hypo Alpe said.

The Hypo Group is also in the process of shedding its subsidiaries in south-eastern Europe after it ran into trouble before the global financial crisis because of risky investments.

Austrian exports to India (Jan-Mar 2013)


Articles

INDIA WILL be MAJOR expORTS HUbBy US automobile major Ford Motor Company

US automobile major Ford Motor Company is betting big on Asia-Pa-

cific markets, especially China and India. “In the next four to five years, sales from Asia-Pacific would be about 40 per cent,” said Ford chief executive Alan Mulally, adding markets in this region were grow-ing the fastest in the world. Currently, Asia-Pacific accounts for 19 per cent of Ford’s global sales.

Ford Chief Executive Alan Mulally, here for the roll-out of the Ford EcoSports production line at its existing facility near Chennai, said Asia-Pacific was important for Ford and strategies were being put in place to tap the domestic market and use the region as a sourcing hub. The com-pany is betting big on the ‘B’, or compact car, platform/chassis. Mulally said Ford was investing in seven plants in the Asia-Pacific region - five in China and two in India (the engine plant at the facility near Chennai and a new facility in Gujarat).

“Ford will export Figo and EcoSport models out of India. The Indian plants would support the market here, as well as other global markets,” Mulally said, adding one of India’s advantages was its competitiveness and free trade.

Mulally said there was a huge opportu-nity in the B-platform, where different kinds of body panels could be put on. He added Ford was focusing on the B-seg-ment and there would be more models in this space.

Joginder Singh, president and managing director, Ford India, said the company had doubled its investment in India from $1 billion in 2011 to $2 billion. It had also doubled its production capacity in India.

On the EcoSport, Mulally said it would be a small sports utility vehicle on the ‘B’ platform, one of the fastest growing seg-ments in the country. By 2015, the com-pany would produce two million vehicles a year on its B-platform globally.

Ford has invested about $142 million at its plant near here to roll out the EcoS-port. Currently, it manufactures the mod-el at its plants in Camacari (Brazil) and Chongqing (China). Production in Rayong (Thailand) and Tatarstan (Russia) is yet to start.

On whether the company would lose about $2 million in Europe this year and whether it would shut any of its Euro-pean plants, Mulally said though the Eu-ropean market was under stress, the leadership in that region was dealing with the hurdles and some felt the crisis had bottomed out. He added Ford Motor Company was restructuring its European operations and cutting production levels to match the demand there.

He said the company continued to sup-ply engines to Tata Motors’ Jaguar and Land Rover models. A few years ago, Tata Motors had acquired these brands from Ford.

GROWTH WILL be 6% pLUS IN 2013-14By Prime Minister’s Economic Advisory Council

India’s economic growth would pick-up in 2013-14 and record six per cent

plus levels, C. Rangarajan, Chairman to the Prime Minister’s Economic Advisory Council (PMEAC), said. He added that public sector investments would act as drivers of growth this fiscal.

At a CA Institute event, Rangarajan, when asked if he was cutting down his GDP growth forecast, told Business Line that he expected growth to range between 6-6.4 per cent. “It will be six per cent

plus and about 6-6.4 per cent,” he said, while admitting that the official PMEAC position was growth forecast of 6.4 per cent this fiscal.

Rangarajan stressed the need for added focus on the agriculture and power sec-tors to improve the economic situation. He maintained that India could record robust economic growth rates even at the reduced investment rates of 30 per cent.

“Investment rate of 30 per cent is still not low. It is lower than 2007-08. But is a reasonably high rate. It gives us hope that if obstacles are removed, India can record higher growth rates in the short run,” he said.

Asked about his expectations from the Reserve Bank of India on July 31, Ranga-rajan said RBI’s policy rate action would largely depend on its perception of the rupee.

IN INNOvATION, INDIA RANKS 66TH AMONG 142 COUNTRIeSReport on Innovation

India ranked 66th among 142 countries in the Global Innovation Index 2013, and

first in the Central and South Asia region in the innovation efficiency ratio (which reflects the innovation output per unit of input in the economy).

The report, published by Cornell Univer-sity, INSEAD, World Intellectual Property Organisation and the Confederation of Indian Industry, studied the emergence of local innovation eco-systems.

Overall, India’s performance was mixed.

While the country was strong in gross capital formation (as a percentage of GDP) at rank 9, investment in new business (20), industrial cluster development (29), it ranked poor in áreas such as political sta-bility (123), ease of starting business (128), school life expectancy (109), pupil-teacher ratio (108) etc.

In the global rankings, Switzerland and Sweden topped in innovation, followed by the United Kingdom, the Netherlands and the United States. Among regions, innova-

tion was seen improving the most in Latin America.

“The results of the GII (Global Innovation Index) provide testimony to the global na-ture of innovation today. The top 25 ranked countries on the GII are a mix of nations from across the world-- North America, Europe, Asia, Oceania and the Middle East. While high-income economies dominate the list, several new players have increased their innovation divide exists.” said Soumi-tra Dutta, co-editor of the report.


Articles

FITCH UpGRADeS INDIA’S OUTLOOK TO STAbLeBy Fitch Ratings

INDIAN COS’ FOReIGN INveSTMeNT RISeS TO $7.64bN IN ApRILForeign Investment

GUAR GUM INDIA’S bIGGeST AGRICULTURAL expORT ITeMForeign Trade

Fitch Ratings has revised India’s sov-ereign credit outlook to stable. “The

revision of the outlook to stable reflects the measures taken by the government to contain the budget deficit, including the commitments made in the 2013-14 budget, as well as some, albeit limited, progress in addressing some of the struc-tural impediments to investment and economic growth,” according to a state-ment by Fitch.

It is expected that the Indian economy will recover after the real gross domes-tic product (GDP) grew at 5 per cent

in 2012-13. Fitch forecasts only a mod-est recovery with real GDP expected to expand 5.7 per cent and 6.5 per cent in 2013-14 and 2014-15, respectively.

The revision in outlook could not have come at a better time as the authorities are now seriously engaged in devising ways and means to appreciate the rupee.

Fitch considers India’s overall external position to be a relative rating strength. Foreign debt is moderate and Reserve Bank of India’s (RBI) international re-serves, which stood at US$ 288 billion at

the end of May 2013, provide a cushion to absorb adverse external shocks, high-lighted the statement.

India’s investment-grade ratings are also reinforced by high domestic savings rates that limit the reliance on foreign savings for private investment and fiscal funding, as well as by a relative long maturity of government debt issued in its own cur-rency.

The revision reflects the measures taken by the government to contain budget deficit.

Foreign direct investment by Indian companies rose more than three

times in April to $7.64 billion in April, from $1.89 billion in March, data from the Reserve Bank of India (RBI) showed. The data published includes investments made under automatic as well as approv-al route.

In April, as many as 499 deals were car-ried out by Indian firms to carry out the outward foreign direct investment. Bharti Airtel, Oil and Natural Gas Corporation (ONGC) Videsh, Suzlon Energy, GMR Infrastructure, Amtek Auto and Tractors and Farm Equipment were among the major companies that invested in their foreign arms during the month.

Bharti Airtel invested $3.35 billion in its joint venture in Netherlands that is into the business of transport, storage and communication services. While ONGC Videsh Limited invested $813.52 mil-lion in its joint venture in Azerbaijan and $70.08 million in its wholly owned unit in the Cayman Islands.

Suzlon Energy made an investment of $674.79 million in its wholly owned sub-sidiary in Netherlands. GMR Infrastruc-ture’s investment was $306.93 million in its wholly-owned unit in Mauritius and Amtek Auto made an investment of $286.72 million in two separate projects in Singapore and Germany. Tractors and

Farm Equipment made an investment of

$89.8 million in two separate entities in China and the US.

OVERSEAS STEPS

In April, about 499 deals were carried out by Indian companies to carry out the outward foreign direct investment

Bharti Airtel invested $ 3.35 billion in its joint venture in Netherlands

ONGC Videsh Limited invested $ 813.52 million in its joint venture in Azerbaijan and $ 70.08 million in its wholly owned unit in the Cayman Islands

Suzlon Energy made an investment of $ 674.79 million in its wholly owned sub-sidiary in Netherlands

For a second year, guar gum has emerged as Indias largest item of agricultural export.

And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director Gen-eral of Commercial Intelligence and Statistics (DGCIS).

Guar gum, has seen rising demand from big Western oil companies on its use as a con-trolling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 2012-13, it has registered 624 per cent rise in exports in value terms.

India is the worlds largest producer of the gum. On average, the country produces 1-1.5 million tonnes of guar annually.

Almost 40 per cent of guar gum produced in the country is used for industrial purposes. In 2012, guar prices in the world markets rose a massive 800-1,000 per cent, chiefly due to large-scale stocking by multinational oil com-panies over fears of short supplies, following drought in India.

Of Indias total agricultural exports of Rs 120,000 crore in 2012-13, guar gum account-ed for 18 per cent, DGCIS figures show. In 2010-11, guar gums total share in Indias over-all export of agricultural items was just seven per cent.

Basmati and non-basmati rice, traditionally the flagbearers of Indian agricultural exports, have also risen in export value, but have not man-aged to upstage guar gum as the primary item.

Between 2010-11 and 2012-13, export of basmati rice increased 71 per cent in value terms, while that of non-basmati rice rose a massive 6,000 per cent, pushing India to the pole position in this segment globally in 2012.

The share of basmati rice in Indias total ag-ricultural exports from 2010-11 to 2012-13 dropped from 26 per cent to 16 per cent. However, the share of non-basmati rice showed a considerable jump from 0.52 per cent in 2010-11 to 12 per cent in 2012-13, primarily because of the governments deci-sion to lift the ban on its export.

Another item that logged impressive growth in exports, according to the data, was flow-ers rising 43 per cent in value terms between 2010-11 and 2012-13, to Rs 423 crore.


Articles

Multiple negotiating rounds, EU-India summits and a number of other tech-

nical meetings since 2007, have not been able to iron out differences between the 27 na-tion bloc and India on the India-EU Bilateral Trade and Investment Agreement (BTIA). With only a “narrow political window” of opportunity left, Commerce Minister Anand Sharma’s visit to Europe must be followed closely.

An EU-India Free Trade Agreement (FTA) would have an impressive scale. India is cur-rently the EU’s 9th most important trading partner, whereas the EU is India’s largest trading partner. The FTA would set a pre-dictable framework, slashing duties on over 90 percent of bilateral trade. While the EU-India relationship has been branded a strate-gic partnership, set against its potential, the relationship has under-delivered.

Considered ‘natural allies in a wide range of global issues’ by both parties, the FTA would be an important step in enhancing the EU-India relationship. India has much to gain from an FTA with the EU, particularly in re-gard to preferential and duty-free access to the European market.

A Sustainability Impact Assessment (SIA), commissioned by the EU, indicates that an extended (broad) FTA (including further non-trade barrier harmonization) would re-sult in significant benefits to both partners in terms of welfare gains, production, interna-tional trade, wage and productivity increases. The welfare effect amounts to an additional 0.3 percent growth for the Indian economy in the short run and 1.6 percent growth in the long run.

However, it would take more than just a reduction in tariffs to make the FTA attrac-tive for India. India’s trade policy is fairly con-strained by its concerns for the poorer parts of its demographic. In the near future, the majority of India’s population will be under the age of 30, necessitating a growth strat-egy centred on job-creation rather than an export-led one.

India’s demographic and its education system will be churning out a skilled, competitive, English-speaking work force, which Europe will be in short supply of in the near future. It is also in EU’s own interest to incorporate an ambitious Mode 4 (Mode 4 refers to the supply of natural persons for providing ser-vices) liberalisation package of GATS (Gen-eral Agreement on Trade in Services).

The economic benefits of the FTA are to a large part dependent on the extent to which investment is allowed to play its part. The FTA seeks to provide trade related as-sistance to aid India in continuing its efforts to better integrate into the world economy.

Areas such as sanitary and phytosanitary measures and technical barriers to trade (including the upgrading of laboratories and testing facilities so that these are able to pro-vide certifications for export to Europe), the setting up of Investment Facilitation Desks, training of customs officials etc are being extended.

Indian exporters can attain higher standards with technical assistance from the EU. More-over they are extending programmes that would look to enhance capacity of trade-related regulatory institutions and enforce-ment systems, to meet international stand-ards and requirements and business needs.

An issue that is polarizing public opinion is the suspicion regarding manufacture of ge-neric drugs. The EU had earlier demanded an exclusive chapter on data exclusivity. By gaining rights over data, innovator compa-nies can prevent their competitors from securing marketing licenses for low-cost versions during the tenure of this exclusivity.

This would negatively impact India’s phar-maceutical sector, which has been called ‘the pharmacy of the developing world’. This fear should be dispelled as the EU has withdrawn its data exclusivity clause. Despite this, many protests continue amidst the fear of a hike in the price of life-saving drugs. Both partners need to treat this issue sensitively.

Considering the impact of such an agree-

ment, the details of the negotiations have not been made public. The public has to content itself with leaked reports and drafts. This has caused much anxiety in the minds of the people and communication to the larger public needs to be boosted so as to dispel fears and clarify issues which have been addressed.

There are other issues that still need to be ironed out. The EU has pushed for hiking FDI in the insurance sector to 49 percent. Recent news reports suggest that the gov-ernment is finally moving in that direction. Moreover there is reluctance on the part of the EU to negotiate terms on the issue of government procurement.

The Indian government is treading cautious-ly as one would not want to translate social objectives to economic costs.

The FTA must seek to build on comple-mentarities that have surfaced as a result of the Eurozone crisis. India has witnessed a fall in its exports due to falling demand in-ternationally and the EU is looking to boost growth.

A successful conclusion of the FTA would go a long way in building international mar-ket confidence, giving much needed stimu-lus to the international economy. The loss of revenue from reduction in tariffs should be viewed in gains of transfer of technology, productivity increases and greater competi-tion.

The FTA will be India’s first large trade agreement with a western bloc, consist-ing of 27 economies. If structured well, the agreement could power India’s growth for the next decade.

eU-INDIA FRee TRADe pACT WILL pOWeR INDIA’S GROWTHIndia-EU Free Trade Pact


Articles

The US would support India in its much-awaited Rs 450-crore Mars

Orbiter Mission (MOM) slated for lift off from Sriharikota in October-November 2013.

“Nasa is providing the deep space navi-gation and tracking support to this mis-sion during the non-visible period of the Indian Deep Space Network,” said a US state department announcement.

The decision to cooperate was taken at the fourth meeting of the US-India joint working group on civil space co-operation held in Washington on March 21. But the details of the meeting were

made public through the US-India joint fact sheet. Its release coincided with the Indo-US Strategic dialogue, and the talks between Isro chairman K Radhakrishnan and Nasa administrator Charles Bolden in New Delhi.

Nasa will provide support from its fa-cilities at Goldstone in the US, Madrid in Spain and Canberra in Australia.

The teaming up for the Mars mission assumes significance in the context of Bolden calling for strengthened co-op-eration in this programme, when he ad-dressed Isro staffers nationwide from the Ahmedabad-based Space Applications

Centre.

The American state department docu-ment also stated that both countries have “agreed to co-operate in potential future missions to the moon and Mars”.

Isro officials have not ruled out a sec-ond mission to Mars, which they said will have more scientific content. TOI has also learnt that Nasa was keen on participat-ing with Isro in the analysis of data from the Methane Sensor For Mars, which is one of the five instruments on board the present Indian Mars orbiter. But Isro has not given any firm response so far.

India has successfully launched its first dedicated navigation satellite IRNSS-1A

using the Polar Satellite Launch Vehicle (PSLV) from the Satish Dhawan Space Centre, Sriharikota in Andhra Pradesh (AP), on July 1, 2013.

IRNSS-1A developed by India is the first of the seven satellites constituting the In-dian Regional Navigation Satellite System (IRNSS) space segment and has a mission life of 10 years.

The satellite is designed to provide ac-curate position information service to

users in the country as well as the re-gion extending up to 1,500 km from its boundary.

IRNSS consisting of a space segment and a ground segment has three satellites in geostationary orbit and four satellites in inclined geosynchronous orbit and is to be completed before 2015.

IRNSS-1A was launched at a cost of ap-proximately Rs 125 crore (US$ 21.05 million), said Mr K Radhakrishnan, Chair-man, Indian Space Research Organisation (ISRO).

For the ground segment Rs 300 crore (US$ 50.53 million) is allocated and al-most all the satellites would cost Rs 125 crore (US$ 21.05 million), since all of them would most probably be identical, said Mr Radhakrishnan.

IRNSS will be on lines with Russia’s Glob-al Orbiting Navigation Satellite System (GLONASS), United States’ Global Posi-tioning System (GPS), European Union’s Galileo (GNSS), China’s BeiDou satellite navigation system and the Quasi-Zenith Satellite System.

Gujarat Info Petro Ltd, a subsidiary of Gujarat State Petroleum Corpora-

tion, has signed an agreement with Cason Engineering Plc, Hungary, in pursuant to the MoU signed during the Vibrant Gu-jarat Summit-2013, for a gas monitoring system.

The agreement was signed by V. K. Sharma, CEO, Gujarat Info, and Ferenc Szakács, Chairman and CEO of Cason, according to a release here.

Gujarat Info provides IT services to gov-ernment departments, boards, corpora-tions and corporate houses as an apex consultant and total solutions provider.

USER-FRIENDLY

Cason is a Hungary-based technology company having experience in develop-

ing, manufacturing and implementing sys-tems for gas distribution network moni-toring.

It has developed and installed new solu-tions with leading technologies for large oil pipeline operators in Europe and oth-er countries worldwide.

The agreement aims to provide automa-tion services for gas and oil companies in India.

The joint technical solutions generate easy and fast accessibility to the latest leading technologies for the rapidly de-veloping city gas distributor industry.

ADVANTAGES

The main advantages of the offered solu-tions are to provide tool to control the procurement and sales procedures of

daily purchased gas volume and to pro-

vide access for stakeholders to the rel-

evant daily business data with technology

reports and alarms via Web-based appli-

cations.

SAFETY MEASURES

The consortium will also offer a special

pipeline monitoring system and leak de-

tection to leading oil pipeline operators

to decrease the number of accidents and

incidences such as thefts and pilferages

caused by third parties in the pipelines.

This will provide solutions for disaster

management and security issues of cross-

country pipelines.

NASA TO pARTNeR ISRO IN INDIA’S MARS MISSIONIndian Space Research

INDIA LAUNCHeD ITS FIRST NAvIGATION SATeLLITeIndian Space Programme

INDIA, HUNGARY JOIN HANDS FOR ‘GAS MONITORING SYSTeM’International


Articles

SEA Group of Germany, the world’s fifth largest living space solution pro-

vider, has entered into India with an initial investment of Rs 14 crore, which could go up to Rs 40 crore in two years.

Aiming to take up projects in association with large builders, mainly through the franchisee route, SEA will offer “creative,

durable and high quality home interior solutions to end consumers and corpo-rate clients”, the company said. While SEA Group has long experiences in Ger-man and other European markets, it has now teamed up with leading manufactur-ers in Europe like bauformat Küchen to bring high quality services to India and then to Southeast Asia.

The group expects to achieve a turnover of Rs 180 crore by 2016.

With the introduction of the SEA Future Labs, it is also offering a platform to in-tegrate German and Indian designers to develop with their customers new ideas and introduce new market trends, the company added.

Foreign institutional investors (FIIs) will now be able to enter Indian mar-

kets faster and register themselves more quickly with the regulator accepting the recommendations of the Chandrasekhar committee report.

While the time required for registration is supposed to be a week or less, the need for documentation can push it to over six months, according to those in the know. The new norms are expected to significantly reduce the time required to do so. The Securities and Exchange Board of India (Sebi) has given its nod to the suggestions of the committee, which include lower Know Your Client (KYC) requirements for entities backed by governments and doing away with the need for registration with the regulator, according to a press release following a board meeting.

Sebi has said FIIs, sub-accounts and qualified foreign investors (QFIs) are to be merged into a new investor class to be termed “foreign portfolio inves-

tors” (FPIs). Neither FIIs nor their sub-accounts will require prior registration with the regulator. Instead, they would register themselves directly with desig-nated depository participants (DDPs).

The regulator has also adopted a risk-based approach to KYC, dividing it into three categories on the basis of perceived risk. The first will cover organisations backed by the government, such as sov-ereign wealth fund. The second will cover regulated entities such as foreign mutual funds, while all other entities would fall in the third category.

Also, it has clearly defined foreign direct investment as any investment exceeds 10 per cent stake in the company.

Richie Sancheti, senior associate at Ni-shith Desai Associates, indicated the move would do much towards rationali-sation of foreign inflows.

“The move to harmonise and streamline the KYC norms will ease the process of entry of foreign portfolio investors into India. Sovereign wealth funds and institu-

tional investors can invest more easily on a disintermediated basis. While the com-plete committee report is awaited, the earlier press release did clarify that other investors that get categorised under cat-egory III portfolio investors on the basis of risk weightage, may not be permitted to issue participatory notes,” he said.

Yogesh Chande, consultant, Economic Laws Practice, suggested entities already registered might have some leeway. “It will be good to see how existing FII and FII sub-accounts would glide into the new regime. My sense is, perhaps they will be automatically grandfathered. The risk based-approach to KYC is a wel-come move,” he said.

Other recommendations would likely require a move from the government, ac-cording to the Sebi statement.

The committee had also suggested the category III entities should not be al-lowed to issue participatory notes. This did not find a mention in the press re-lease following the Sebi board meet.

Ports in Andhra Pradesh and West Bengal, an elevated rail corridor in

Mumbai, and locomotive projects in Bi-har are among the key infrastructure projects to be kicked off in six months. This was decided at a meeting chaired by the Prime Minister.

“The Government can roll out public-private partnership (PPP) projects worth at least Rs 1 lakh crore during the next six months. The Principal Secretary in the Prime Minister’s Office will moni-tor these projects. All the Ministries are

committed to the projects,” said Montek Singh Ahluwalia, Planning Commission Deputy Chairman, during a presentation at the meeting called to set the 2013-14 target for infrastructure sectors.

DELAYS

The meeting also reviewed the 2012-13 targets. Ahluwalia said the power sector had done well, while the road sector had seen a lot of slippage. The performance in ports and airports was satisfactory, while the Railways faced a challenge of funds,

he said. The “biggest priority is to unlock delayed and stuck projects,” he added.

To address fuel issues related to natural gas in the power sector, the Petroleum Ministry will soon move a note to the Cabinet Committee on Economic Affairs (CCEA) that is likely to propose shar-ing of natural gas among various sectors. Currently, the demand for natural gas is 90 million standard cubic metres, while domestic availability is just 20 mscm.

And there is another problem. First, the fertiliser sector gets top priority in gas al-

GeRMANY’S SeA GROUp eNTeRS INDIAInternational

eASIeR eNTRY, FASTeR ReGISTRATION FOR FOReIGN INSTITUTIONSDoing Business in India

GOvT TO ROLL OUT RS 1-LAKH CR INFRA pROJeCTSInfrastructure


Interview

location followed by power. Second, even if the power sector is willing to import gas at high prices, it cannot be supplied to all the areas.

“Sharing of domestic natural gas be-tween fertiliser and power plants that supply power on administrative price is

one possibility, because gas-based power plants have invested a lot of money,” Ahl-uwalia said.

ROAD SECTOR

As for the road sector, Ahluwalia said dis-cussions were on with the Finance and

Road Ministries to set separate targets for projects executed under BOT (build-own-transfer), EPC (engineering, pro-curement and construction) and annuity basis. The effort is to reverse the slow-down in awarding public-private partner-ship projects, he added.

India has emerged as a strong player in helping cool down global food prices

by exporting major farm commodities like rice and wheat, Agriculture Minister Sharad Pawar said.

“While feeding 17 per cent of world’s population we have emerged as strong player in international market helping to cool down the world food prices,” Pawar said at the 16th Indian Cooperative Con-gress organised by NCUI here.

Last year, the country exported agriculture produce worth Rs 1.87 lakh crore, while this year till February itself exports have already crossed Rs 2.1 lakh crore, he said.

The minister said that the country has harvested record foodgrains year after year. Agriculture is the only sector in the country which has almost achieved its 11 Plan target of 4 per cent growth rate.

The sector has performed well also be-cause of the presence of large number of primary cooperatives handling supply of agriculture inputs, credit, and marketing and storage activities, he added.

The minister said that the cooperatives are more relevant in the the present era than any other time because it is the most potent tool for inclusive growth.

“It creates job opportunities, sustainable livelihood for millions of people in the farm sector and also has the capacity to reverse the rural to urban migration,” he said.

Both short-term and long-term coopera-tive credit sector and urban cooperative banking sector has the capability to pro-mote financial inclusion, which is neces-sary for inclusive growth in the rural and semi-rural areas, he said.

According to official data, foodgrains pro-duction in 2011-12 was record at 259.32 million tonnes. It is expected to be high at 255.36 million tonnes this year.

India will continue to be the leading beef exporter this year despite slow-

er growth in cattle, calf production and higher domestic consumption.

In the Indian context, beef export is shipment of buffalo meat which is also known as carabeef in the global market. Shipment of cow meat from the country is banned.

Last year, India overtook Brazil as the top exporter of beef, mainly due to growing acceptance of its buffalo meat by South-East Asia, West Asia and African countries.

Buffalo meat exports this year from In-dia could rise to 1.7 million tonnes (mt) against 1.41 mt last year. Initially, the USDA has estimated that beef exports this year could top 2.1 mt.

“Our buffalo meat exports are giving a tough competition to other countries due to our competitive pricing and qual-ity,” said Tarun Bajaj, General Manager (Livestock products), Agricultural and Processed Foods Export Development Authority (Apeda).

Buffalo makes up one-third of the bovine population in the country. It is preferred to cow due to its adaptability to climatic

conditions and high milk fat content as dairy production is fuelling the bovine sector. Since slaughter of cow is banned, beef production is driven by buffalo slaughter which is allowed. However, the slaughter is restricted to males and un-productive females.

According to Apeda, exports of meat and its products increased to $3.29 billion in 2012-13 against $2.91 billion the previ-ous year. Since 2008, when India export-ed 672,000 tonnes, shipments of buffalo meat have almost trebled.

BRAZIL’S ExPORTS

Indian exports have made inroads into West Asia, North Africa and South-East Asia, a key market for Brazil, as buffalo meat is cheaper in these price-sensitive markets.

It is produced according to halal stand-ards (meat prepared as prescribed by Islamic law).

Brazil has been witnessing a constant decline in beef exports due to shrinking land availability, but this year its shipments are expected to rise to 1.6 mt from 1.52 mt last year.

Currently, there is renewed interest in livestock farming as the Brazil Govern-ment is providing support for pasture management and genetic improvement of cattle.

“The other reason for our exports ris-ing is our quality. Some of our exporters have excellent processing units. This is re-ally helping,” said Bajaj.

DOMESTIC MARKET

On the other hand, domestic consump-tion is also likely to increase this year. It could increase to 2.1 mt from 2.04 mt last year. Since 2008, domestic consump-tion has not gained as much as exports.

This is because people are shifting to lamb and other meats in view of increas-ing income in the country. Poultry meat, in particular, has increased sharply in the last few years.

According to the USDA, cattle heads could increase by four million tonnes to 327 mt, while nearly 64.3 mt calf could be produced this year against 63.4 mt last year.

The USDA also projected a lower export of 8.6 mt this year.

INDIA HeLpING IN CONTROLLING GLObAL FOOD pRICeSBy Sharad Pawar, Agriculture Minister

bUFFALO MeAT COULD HeLp INDIA STAY NO.1 IN beeF expORT Beef Exports


The Indian Oil and Gas (O&G) sector is one of the six core industries of In-dia and contributes over 15 per cent to the Gross Domestic Product (GDP). The country is the sixth largest consumer of oil in the world and the ninth largest crude oil importer.

The sector is of immense importance to the economy owing to its significant forward integration with many other sec-tors. India is committed to boosting its growth in the years to come and this pro-gress would translate into the country’s energy needs growing many times. The need of the hour, therefore, is to chan-nelise all efforts on exploration of new blocks effectively as well as efficiently.

The growing demand for crude oil and gas in the country coupled with policy initiatives of the Government of India to-wards increased E&P activity has given a great impetus to the growth of this sec-tor.

KeY STATISTICS

• Oil continued to remain the top item in India’s export basket during 2012-13. Crude oil as well as other petroleum products accounted for about one-fifth of India’s outbound shipments, giving the much-needed boost to the country’s exports. Pe-troleum product exports rose 7.7 per cent at US$ 60.3 billion in 2012-13 from US$ 56.04 billion in 2011-12.

• Indian refiners processed 6.8 per cent more oil in April 2013 than a year earlier at 3.62 million barrels per day (mbpd), according to recent Government data, reflecting expand-ed capacity.

• Natural gas output stood at 3 billion cubic metres (BCM) in April 2013.

• India’s refining capacity was en-hanced by 400, 000 bpd in 2012. An-other 400, 000 bpd of capacity could be added in 2013 if Indian Oil Cor-poration’s 300,000 bpd Paradip and Nagarjuna’s 120,000 bpd Cuddalore refineries are completed by the end of this year.

DIeSeL & peTROL

Crude oil production, as indicated by the core sector index, accounts for over 5 per cent of India’s index of industrial pro-duction (IIP).

Diesel consumption increased by 4.2 per cent year-on-year (y-o-y) in April 2013 to 6.2 million tonnes (MT), according to data compiled by the Petroleum Planning and Analysis Cell (PPAC) of the Minis-try of Petroleum and Natural Gas. The growth in diesel consumption was faster than other petroleum products.

The overall consumption of petroleum products increased 3.1 per cent y-o-y in April 2013, PPAC data indicated.

GAS

Natural Gas has emerged as one of the most preferred fuel owing to its envi-ronment-friendly properties, greater ef-ficiency and cost effectiveness.

India’s shale gas reserves are at about 290 trillion cubic feet (TCF), of which 63 TCF could be recovered, according to a study by US Energy International Agency. Shale gas is natural gas formed from be-ing trapped within shale formations.

Natural gas sector constitutes about 9.8 per cent of primary energy consump-tion which is projected to grow up to 20 per cent by 2025 as per Indian Hy-drocarbon vision. About 65 per cent of natural gas consumption is accounted by power and fertiliser sectors. Petroleum and Natural Gas Regulatory Board chair-man S. Krishnan emphasises on the need to develop a strategy to meet substantial share of energy needs from natural gas and take its contribution in the country’s energy basket from 9.8 per cent to 25 per cent in the medium term.

The demand for natural gas in India has been growing, and is expected to increase by 280 per cent from the current levels to 220 BCM by 2020.

DeveLOpMeNTS/INveSTMeNTS

• State-owned Petronet LNG intends to establish a mini-liquefied natural gas (LNG) terminal in the Andaman and Nicobar Islands at an outlay of about Rs 600 crore (US$ 105.2 million). The company is also set to commission its second terminal in

Kochi in July 2013. The mini-LNG terminal would be Petronet LNG’s first venture outside mainland India.

• Petronet is also in the process of enhancing the capacity at its Da-hej terminal from 10 MT to 15 MT. The company is also bidding for a 25 per cent stake in Gujarat State Petroleum Corporation (GSPC)’s 5 MT-LNG-terminal at Mundra. If it ac-quires stake in the project, it would form an alliance with GSPC and the Adani group.

• Punj Lloyd has bagged Rs 730 crore (US$ 128 million) B-127 cluster pipe-line project in Mumbai from Oil and Natural Gas Corporation (ONGC).

• The selection was made through a bidding process. The B-127 cluster comprising three marginal fields: B-127, B-157 and B-59: has an es-timated cumulative production of 1.836 MT of oil and 2.093 BCM of gas over a ten-year tenure and the additional development of B-55 pos-es a production of 0.155 MT oil and 2.583 BCM gas over 13 years.

• ONGC Videsh Ltd (OVL), the for-eign investment arm of state-run ONGC has announced its intentions to invest in power, petrochemical and fertiliser plants in Bangladesh after securing two shallow water gas blocks in the South Asian nation. The firm would be getting into ex-ploration business in a neighbour-ing country for the first time. OVL, along with Oil India Ltd (OIL), will develop the blocks in Bangladesh. A production-sharing contract (PSC) for the same would be signed by Au-gust 2013.

• Cairn India, a Vedanta Group Com-pany, plans to invest US$ 2 billion over 2013-15 to develop its Barmer block in Rajasthan. The company intends to drill at least 500 wells a year by 2018 and reports that the resource base allows production of 300,000 bpd.

• Cairn India, promoted by London-based billionaire Anil Agarwal, holds 70 per cent stake in the block while public sector explorer ONGC holds the remaining 30 per cent.

Industry

OIL AND GAS INDUSTRYIndian Industry Sector Close-Up


GOveRNMeNT INITIATIveS

Decisions made in the E&P sector influ-ences decisions in every sphere of the economy and the Indian Government keeps a meticulous track of policies im-plemented, global happenings and future reforms.

The Cabinet Committee on Investment (CCI) has recently cleared 25 E&P blocks, releasing Rs 24, 900 crore (US$ 4.36 bil-lion) of investments.

Meanwhile, India and Finland have decid-ed to join efforts in the area of sustain-able development for mutual benefits in the O&G sector, which includes specific projects in solar energy applications for O&G Projects, bio-fuels & algae based bio-fuels research and water and waste water management.

The Reserve Bank of India (RBI) has also announced that Navratna Public Sector Undertakings — OVL and OIL — will be allowed to make overseas investments in the incorporated Joint Ventures (JVs)/Wholly Owned Subsidiaries (WoS) in the oil sector.

These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, already approved by the

Government of India, will be without any limits under the automatic route, said the RBI notification.

So far, OVL and OIL were allowed to in-vest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas), which are duly ap-proved by the Government of India, with-out any limits under the automatic route.

ROAD AHeAD

Oil Ministry’s PPAC forecasts fuel consump-tion at 155.63 MT. Demand for diesel, which ac-counts for 45 per cent of the fuel consumption in India, is projected to grow by 8.3 per cent to 70.1 MT (It was previously projected to grow by 5.9 per cent). PPAC projects a 5.5 per cent growth in petrol demand (at 15.82 MT).

Furthermore, India’s natural gas demand is likely to more than double to 473 million standard cubic meters per day by 2016-17 with most of the additional demand coming from power plants, according to Oil Ministry’s projections for the 12th Five Year Plan (2012-13 to 2016-17).

Moreover, Business Monitor International (BMI) forecasts that India will account for 12.4 per cent of Asia Pacific regional oil demand by 2015, while satisfying 11.2 per cent of the supply.

KeY INDIAN OIL & GAS COMpANIeS

Industry


Business

INDIA’S DOUbLe TAxATION AvOIDANCe AGReeMeNTS (DTAAS)By Dezan Shira

This article was extracted from Dezan Shira & Associates’s publication entitled “India Briefing”. For further corporate assistance, consider contating Dezan Shira & Associates, a specialist in foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. For further details or to contact the firm, please email Mr. Olaf Griease under [email protected] or visit www.dezshira.com

Double taxation avoidance agreements (DTAs or DTAAs) aim to prevent the

same income from being taxed by two or

more states, while also eliminating tax eva-

sion and encouraging cross-border trade

efficiency. DTAs prevent double taxation

by allowing the tax paid in one of the two

countries to be offset against tax payable in

the other country, and/or by providing ex-emptions or reduced tax rates for specific income types such as interest, royalties, divi-dends. In India, withholding tax on dividends is 0% per the Tax Act, but DTAs serve to reduce interest and royalty rates. The table below reflects India’s double taxation avoid-ance agreements (DTAAs) in effect. In cer

tain cases (such as in the case with states from the former Soviet Union), rates repre-sent treaties between groups of countries. In cases in which a treaty does not specify a maximum withholding tax rate, or the maximum rate specified in a treaty is higher than the domestic withholding tax rate, the domestic rate applies.


Interview

US-based TripAdvisor, the leading online platform for travel reviews, recently

acquired GateGuru, a mobile application for flight and airport information. With nearly 3 million users in India, the online travel review firm is looking to tap the potential of the online hotel booking space. The company recently rolled out a feature called meta dis-play, that has hotel price comparison on a single page. Nikhil Ganju, Country Manager, TripAdvisor India, speaks about the compa-ny’s plans and strategy post the recent acqui-sitions. Excerpts from the interview:

Q: HOW IMPORTANT WILL THE RE-CENT ACQUISITION OF GATEGURU BE FROM THE INDIA PERSPECTIVE?

A: Most of the recent acquisitions have been in the mobile space. In March, TripAdvisor bought Beeem Inc, which developed Tiny Post, a photo captioning app.

In April, it acquired New York-based Jetset-ter.com, a private sale site for hotel book-ings.

Our focus will continue to be in the mobile and social media space. The GateGuru app has robust information on airports across the world, including India. The airport layout, amenities and outlets in the airport are all in the app. It is a review based app that also in-cludes information on flight products. These are the reasons why it fits in well with the India market.

Q: HOW HAS THE META DISPLAY PROD-UCT HELPED YOU?

A: Considering the fact that we are a travel planning site and not an online travel portal, the vast majority of our traffic is for hotel reviews. So that’s the segment which is very significant for us. We recently also rolled out the meta display feature. It has dramatically

improved user experience. This enhance-ment allows users to see hotel pricing op-tions and availability from booking partners on a single page. It has now been released across the world and in mobile apps.

We are witnessing higher conversion rates after the launch of this feature. The meta dis-play was launched in May in India.

Meta search has made the whole process transparent. It is much more powerful from the perspective of our partners.

Q: HOW DO YOU ENSURE THE ACCU-RACY OF THE CONTENT?

A: We get more than 60 reviews and con-tributions every minute across the world. The scale ensures accuracy. Two years ago, we had 25 contributions every minute. We have a content monitoring international team that focuses on the quality of content coming in.

Apart from that, we have sophisticated auto-mated filters for every review. The moment any review looks suspicious, the team looks into it.

Q: HOW IMPORTANT IS THE INDIA MARKET AND WHAT ARE THE PLANS?

In terms of traffic, TripAdvisor India has grown more than 100 per cent over the last one year.

The Internet user base in India is about 150 million. It is not surprising that the traffic is high from India.

TripAdvisor offers its content in 21 languag-es. We are right now present in English in India. But we are considering launching the web site in other Indian languages. We want to reach out to the Indian language market.

Q: WHAT IS YOUR REVENUE MODEL IN INDIA?

A: A part of our revenue comes from busi-ness listings, which is a subscription-based annual fee, targeted for hotels. The hotels pay us a fee to put up their contact details. While the user will have a choice to book it from an OTA, the hotel would also want to seize that opportunity. Then, there is the pay per click and banner advertisements. About 80 per cent of our revenue comes from pay per click and 10 per cent comes from busi-ness listings and another 10 per cent from banner advertisements.

Online hotel booking from India is still very

low, and we see a great opportunity of

growth there. As that improves, monetisa-

tion will also go up. The banner ad rate in In-

dia is very low compared to other countries

and traditional forms of advertising are still

strong in India.

Q: WHAT HAS THE MOBILE APP SPACE

DONE FOR TRIPADVISOR?

A: Mobile traffic worldwide for TripAdvisor

was 45 million users every month on an av-

erage last year, which is 15 per cent of our

overall traffic. About 15-20 per cent of the

total traffic from India comes from the mo-

bile segment and the rate of growth is twice

than that of desktop traffic.

So far, we have witnessed 32 million down-

loads of our TripAdvisor mobile app. In fact,

every minute 25-30 apps are being down-

loaded. On the mobile space, much of the

traffic comes for reviews on restaurants. But

on the desktop, the traffic is more for hotels.

We WANT TO ReACH OUT TO THe INDIAN LANGUAGe MARKeTInterview with Nikhil Ganju, Country Manager, TripAdvisor India


INTeReSTeD IN vISITING A TRADe SHOW IN INDIA?In case your company is interested in visiting a tradeshow/B2B event in India, be it one listed here or

another one that came to your attention, get in contact with us via [email protected] to get more information about possible assistance/subsidies.

Trade Shows & Events


LIbRARYTHe eMbASSY’S LIbRARY IS OpeNeD

MONDAYS AND WeDNeSDAYS FROM 11AM TO 1pMwithout appointment. For scheduling an appointment outside the opening hours,

please contact the information assistant under [email protected] or 01 505 8666 33

bUSINeSS CeNTReTHe eMbASSY’S bUSINeSS CeNTRe IS OpeNeD

DAILY FROM 11AM TO 1pMwithout appointment. For scheduling an appointment outside the opening hours,

please contact the commercial wing under the contacts given below.Marketing Officer: [email protected] or 01 505 8666 30

Marketing Assistant: [email protected] or 01 505 8666 31

Announcements

STUDeNTS WeLFARe OFFICeRMr. Pawan T. Badhe, Third Secretary in this Embassy has been designated as Officer to look

after welfare of Indian Students in Austria and Montenegro. His contact details are: Tel: +43-1-505866614 Email: [email protected]


Tourism

SHOppINGExperience India Series

Attempt to resist shopping in India and you will soon realise that it is

a vain attempt.Half the fun when buying goods in the bazaars is the bargaining, and you can always check for reasonable prices at state-run emporiums. Below are some of the best buys, either for the sou-venir hunter or the connoisseur.

The Indian craftsman has been perfecting his art for centuries, passing down tradi-tions and techniques from generation to generation. Each region has its own speci-alities, each town its own local craftsmen, its own particular skills. The results is a consummate blend of ancient skills and modern aesthetics. Silks, spices, jewellery and many other Indian products have long been famous and widely desired, and merchants have travelled thousands of miles, willingly enduring the hardships and privations of long journey in order to make their purchases.

CARpeTS

India has one of the world’s largest car-pet industries, and many examples of her ancient and beautiful craft can be seen in museums throughout the world. Kashmir has a long history of carpet making, influ-enced by the Persians. Still Each region has its own specialty; such as the distinc-tive, bright coloured Tibetan rugs, avail-able mainly in Darjeeling.

JeWeLLeRY

Meenakari, or studded Kundan is tradi-tionally heavy and stunningly elaborate based on the Mughal or Rajput designs. Heavy silver jewellery from Gujarat is world-famous. Gems can be bought and mounted. Apart from diamonds, other stones include lapis lazuli, Indian star rubies, star sapphires, moonstones and

aquamarine. Hyderabad is one of the world’s leading centres for pearls.Many gems famous for their healing poers can be purchased in India.

FAbRICS

ndian silks, cottons, and wools rank amongst the best in the world. Of the silks the brocades from Varanasi are among the most famous variety; other major centres include Patna, Murshidabad,Surat and Kanchipuram. Rajasthan cotton with its famous “tie and die” design is usually brillantly colourful, while Madras cotton is known for its attractive “bleeding” ef-fect after a few washes. Throughout the country may be found the “himroo” cloth, a mixture of silk and cotton, often decorated with patterns. Kashmir sells beautiful woollens particularly shawls.

FURNITURe

Indian Furniture is made by woodcarvers who follow the Rajastahni and Gujarati woodcraft with its intricate work and antique look. Painted Kishangarh furni-ture is an art itself and woodwork from Sharanpur , Ramgarh and Shekavati adorn living rooms of India lovers worldwide.

HANDICRAFTS AND LeATHeR

Once again, each area will have its own

specialty; the vast range includes fine

bronzes, brasswork (often inlaid with sil-

ver), canework and pottery. Papier Mache

is a characteristic Kashmir product, some

decorated with gold leaf. Marble and ala-

baster inlay work, such as chess sets and

ornamental plates, are a specialty of Agra.

Good leatherwork buys includes open

India sandals and slippers.Sandalwood

carvings from Karnataka, rosewood from

Kerala and Madras, Indian walnut from

Kashmir. These are often exquisite and

make excellent presents.

NOTE

It is forbidden to export antiques and art

objects over 100 years old, animal skins or

objects made from skins.

FOR MORe INFORMATION ON INDIA TOURISM:

India Tourism FrankfurtBaseler Str. 48 / D-60329 Frank-

furt Tel: +49 (69) 242949-0

Fax: +49 (69) [email protected]


Tourism


INDIAN MOvIe eveNING: band baaja baaraat – Die HochzeitsplänerFriday, July 26th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna)

Genre: Comedy/Romance

Directed by: Maneesh Sharma

Starring: Ranveer Singh, Anushka Shar-ma and Manu Rishi Chadha

Released: 2010

Duration: 140 Minutes

Language: Hindi

Subtitles: GeRMAN

Image Quality: Standard

Synopsis: After Delhi-based slacker-collegian, Bittoo Sharma’s father asks him to return home to work in the sugar-cane fields, he refuses and decides to partner with career-minded wed-ding planner, Janakpuri-based Shruti Kakkar. She refuses to have to do anything with him, but after he impresses her, she partners with him, they set up ‘Shaadi Mubarak’ and begin organ-izing small wedding celebrations with struggling restaurateur and florist, Rajinder Singh and Maqbool respectfully. The duo hit big time after they organize a wedding party at Sainik Farm and begin to have dreams of bettering their lives. It is then Shruti realizes that she has fallen in love with Bittoo, and is embittered when he does not reciprocate. This bitterness gets worse, and the duo split up, with Bittoo opening ‘Happy Weddings’ - resulting in a downward spiral of their performance. With creditors hovering over them, no money coming in, Shruti finally gives way to her parents’ wishes and agrees to get married to Dubai-based Chetan.

Due to limited capacity, seats will be given on a first come, first served basis. Therefore, you are highly encouraged to reserve your seats online at www.indi-anembassy.at or via phone at +43 1 505 866633 (Ms. Lily John).

India in Austria

bOLLYWOOD MOvIeS IN AUSTRIAAt the UCI KINOWELT Millennium City (Wehlistr. 66,1200 Vienna)

For more information, showtimes, reservations and tickets:

www.uci-kinowelt.at/Millennium_City

CURReNTLY SHOWING111


exHIbITION: “IM bANN INDIeNS”Started July 6th, 18:00 | Atelier Bilder, Rahmen, Spiegel (Zimmermanngasse 8, 1090 Wien)

If you are looking for astonishing Indian Art in Austria then come to the inaugural exhibition of the Austrian-Indian Society of Arts and Cultural Exchange on the 6th of July. The Society aims to promote In-dian Art, Culture and Artists in Austria and help to strengthen bonds between the Austrian public and Indian Art and Culture. India has an amazingly rich cul-tural heritage and up to this day creates fine arts based on its amazing diversity of

talents and cultural background.Recently the society has launched their first artist Sisir Datta (a well renowned and awarded Indian artist based in Delhi) and Abhishek Hajela (freelance photog-rapher who recently won Nikon World Photography Award in the Emerging Talent Category). You will see pieces of both artists at the exhibition alongside artworks of the Vienna based artist and designer Sonal Nathwani. Expect an

amazing evening with Indian culture, in-dulge in Indian cuisine delights and listen to amazing classical pieces. A sneak pre-view of some of the masterpieces can be viewed under the society website - www.jpdgallery.com.

They are also constantly looking to get in touch with promising Artists and wel-come collaborations with different Indian associations, individuals and institutions.

India in Austria


India in Austria

CONFeReNCe: Yoga in Transformation: Historical and Contemporary perspectives on a Global phenomenon September 19–21, 2013 | University of Vienna, Austria

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India newsletter 07 2013

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