India Newsletter: August 2006

Economic News

1. Manufacturing sector shows balanced growth: In 2005 manufacturing sector in India recorded a growth of 11.4 per cent, as Indian manufactured goods have been increasingly gaining acceptance in the world markets. With the growth rate of 20%, export of manufactured goods is estimated at the level of USD 50 bn a year. At the same time it is remarkable that Indian manufacturing export has potential to touch USD 300 bn by 2015, growing at an annual rate of 17 per cent, as a study by Confederation of Indian Industry and McKinsey & Co. reports.

2. Farm sector open to 100 per cent FDI: Department of Industrial Policy and Promotion (DIPP) has clarified that agriculture sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, cultivation of mushrooms and services related to agro and allied sectors are open to 100 per cent foreign direct investment through the automatic route. FDI up to 100 per cent with prior approval of the government is permitted in the tea sector subject to the condition of disinvestment of 26% equity of the company in favour of the Indian partners or parties within five years and prior approval of the state government concerned in case of any future land use changes. Besides this, FDI is not allowed in any other agriculture sector or activity

3. Infrastructure will see investment of USD 69 bn over the next 6 years: According to Mr. Gajendra Haldea, Advisor to the Planning Commission Deputy Chairman, infrastructure will see an investment of over USD 69 bn in the next 6 years, where highways sector would get USD 47 bn, development of ports - USD 13 bn, upgradation of airports - USD 9 bn.

4. India expects USD 12 bn foreign investments: India expects to attract around USD 12 bn in foreign direct investments (FDI) this year. In the fiscal year April 2005-March 2006 FDI to India totalled nearly USD 8 bn, while the government had projected it to increase to USD 10 bn this year. However, the target was revised upwards with encouraging reports from companies from Japan, South Korea and Taiwan. "We hope to attract about USD 1 bn from Japan this year, while investments from South Korea and Taiwan should be USD 500 mn each", informed Industry Secretary Ajay Dua.

5. The Government's focus on developing SEZs is paying off: Exports from the eight special economic zones (SEZs) functioning in India have registered a healthy annual growth rate of 25.8 per cent between 2001-02 and 2004-05, reports the Ministry of Commerce and Industry. Being proficient instrument to increase country's exports, Indian SEZs contributed to the efforts to get closer to the Ministry of Commerce and Industry's target of capturing a one per cent share of world exports by the end of the current fiscal year. According to the Ministry estimates, this requires growth projections of 11.9 per cent (CAGR) for exports between 2002-2007 and the high export growth recorded by the SEZ units. As on March 31, 2006 a total of 811 units were operating out of eight functional SEZs (in Mumbai, Kandla, Surat, Chennai, Kochi, Falta and Vishakapatnam), with overall investment estimates of about USD 3.8 bn and employment generation for 100 650 persons, according to DHL's India Trade Outlook.

6. Growth in service segments: 18 service sector segments of the Indian economy are expected to show growth at an excellent level of 20-60 per cent in fiscal year 2006 as compared to fiscal year 2005. This impressive growth rate would result from expanding of railway passenger network, production and sale of commercial vehicles and the addition to existing telephone connections, particularly mobiles.

7. CEO of the year award granted to Sunil Mittal: Bharti Airtel Ltd Chairman and Managing Director Sunil Bharti Mittal has won the 'CEO of the Year' in the service provider category at the Frost & Sullivan Asia Pacific ICT 2006 Awards. The award took into consideration his leadership, revenue growth of the company, market share retained and captured by the company and financial achievements in 2005.

8. India scores at Ashden Awards: The Ashden Awards, also known as, the Green Oscars, are given for developing practical and economical solutions for greener and healthier sources of energy. This year two Indian companies bagged it - the Pune-based Appropriate Rural Technology Institute won the award for food security for efficiently transforming food waste into clean cooking fuel, and International Development Enterprises India, which created the treadle pump.

9. Food sector's FDI to hit USD 3 bn mark: According to the latest data, the cumulative FDI inflow in food processing reached USD 2,804 mn in March '06. In 2005-2006 the sector received approvals worth USD 41 mn, compared to USD 22 mn in 2004-2005. As a result, the food processing segment now has an almost 4% share of the total FDI approved by the government compared to less than 2% share in the segment of hotels and tourism (USD 1,371 mn). Meanwhile, investor interest is growing in vegetable oils and sugar (USD 37.4 mn and USD 17.3 mn in foreign direct investment respectively).

Hyderabad: India's happening City

There was a time not too long ago when the southern Indian city of Hyderabad was known for its pearls, its cuisine and the 410-year-old Charminar monument. Now, its new age avatar is one of an emerging global city, driving the country's growth in information technology, biotech and electronics.

The capital of Andhra Pradesh state has many an 'only' to its credit - the only city outside national capital Delhi to be visited by two US presidents with Bill Clinton calling in March 2000, when the city was just emerging as an IT hub, and George W. Bush making it a point to stop for a few hours during his recent India visit.

It will also soon be the only Indian city to have a 60-storey trade tower; the only one to have an 11.5 km elevated expressway, the longest in the country, as well as the first and only semiconductor manufacturing facility when FAB City comes up on its outskirts.

Besides, more than 50 leading biotech companies, including multinationals, are setting up their operations near Hyderabad and almost an equal number have evinced interest in what has come to be known as Genome Valley. "It will be an industry-driven centre of excellence in life science research and the funding for it will come from a consortium of companies," said B.P. Acharya, managing director of the Andhra Pradesh Industrial Infrastructure Corporation Limited.

After Clinton's visit, many multinational IT and IT-enabled service companies flocked to Hyderabad to set up their operations. The Hyderabad Information Technology and Engineering Consultancy (HITEC) City, which he visited, has transformed from a sleepy village to a world-class IT hub with posh multi-storeyed buildings dotting the landscape.

IT exports, which were a mere Rs.200,000 ($4,500) in 1991-92 spiralled to Rs.20 billion ($452.2 million) in 2000-01 and are now expected to cross $2.5 billion during 2006-2007

This time, IT was not on Bush's agenda - he announced the setting up of a US consulate here, visited the Acharya N.G. Ranga Agricultural University and interacted with young entrepreneurs at the Indian School of Business - but it brought global attention to another facet of the city. It proved Hyderabad has changed, and not just in IT.

The visit by Bush to the little heard about agricultural university brought to light its pioneering work in agricultural research. The university is expected to be a major beneficiary of a $100 million knowledge initiative for agricultural research announced by Bush. With 13 college campuses and 66 research stations, the university aims to arm the Indian farmer with technology and know-how to be a global player.

Bush's visit came close on the heels of the city bagging the prestigious $3 billion FAB City project, the first semiconductor chip making facility in the country being set up by the Andhra Pradesh government and SemIndia, a consortium of overseas Indians. SemIndia CEO Vinod K. Agarwal said FAB City would have multiple units, manufacturing silicon wafers, solar power and LCD and TFT chips.

The upcoming $320 million international airport, 20 km from city, is being built by a consortium of construction major GMR Infrastructure Ltd and Malaysia Airports Holding Berhad (MAHB).The first phase of the international airport coming up on 5,400 acres of land will become operational by March 2008. Though the first phase of the airport was originally scheduled to provide for a capacity of five million passengers annually, the fast pace of development and air traffic have forced the developers to increase it to seven million.

In complementary upgradation of infrastructure, the 160-km, eight-lane outer ring road will be developed at an estimated cost of Rs.30 billion ($675 million) along with satellite townships, and is considered crucial in decongesting the city. The government is also planning a Mass Rapid Transit System to cater to seven million population of the city and its suburbs.

The state government has offered to supply 50 million gallons of water a day and build a dedicated 600-MW power project for FAB City, which has sent real estate prices skyrocketing. Real estate prices have increased by 100 to 150 percent in recent months. Recently, 5.33 acres of land was sold for a whopping Rs.3.36 billion ($75.6 million).

The city, which hosted prestigious events like the Diaspora Day, the Indian Science Congress and the Gulf Information Technology Exhibition (GITEX) in January this year is finding that the existing six five-star hotels are inadequate to meet the huge demand and more hotels are on the way.

A world-class 18-hole golf course is also coming up nearby. It could be just the beginning of a new journey on the path of unprecedented development for Hyderabad as one of India's happening cities.

(Source: Indo-Asian News Service)

Press Release issued by leaders of G-8 countries in St. Petersburg on 17th July, 2006

The following statement was issued by leaders of G-8 countries along with leaders of Brazil, China, India, Mexico, South Africa and the Chairman of the Council of the Heads of State of the Commonwealth of Independent Countries (CIS), Chairman of the African Union and Heads of the International Organizations in St. Petersburg on 17th July, 2006.

"We are outraged by the barbaric terrorist acts, carried out on 11 July 2006 in Mumbai and other parts of India. We stand in solidarity with the Government and the people of India and express our deepest condolences to the victims and their families.

We are determined to continue the fight against terrorism by all legitimate means. We express our readiness to undertake all necessary measures to bring to justice perpetrators, organizers, sponsors of these and other terrorist acts, and those who incited the perpetrators to commit them. We shall do it in accordance with our obligations under international law, in particular human rights law, refugee law and humanitarian law.

We are united with India in our resolve to intensify efforts to fight terrorism which constitutes a threat to each of our country, as well as to international peace and security."

Tourism - India Calls
Shimla

The former summer capital of British India and the present capital of Himachal Pradesh, Shimla has been blessed with all the natural bounties one can think of. Shimla derives its name from"Shyamala" - the goddess Kali, whose temple existed in the dense forest thatcovered Jakhu Hill in the early 19th century. The British named it "Simla".

Shimla is endowed with scenic locations and is surrounded by green hills and the snow capped Himalayas. The spectacularcool hills accompanied by the structures made during the colonial era create anaura which is very different from other hill stations.

Tourist attractions
• The Mall: The Mall is the main shopping centre of Shimla. It also has many restaurants, clubs, banks, bars, postoffices and tourist offices.
• The Ridge: The large open space in the heart of town presents an excellent view of the mountain ranges.
• Christ Church: Situated on the Ridge is Christ Church, which is the second oldest church in northern India. Built in theNeo-Gothic style, it bears a majestic appearance with stained glass windowsthat represent faith, hope, charity, fortitude, patience and humility.
• Jakhu Hill: Two kms from Shimla, at a height of 8000 ft, Jakhu Hill is the highestpeak and offers a beautiful view of the town and of the snow-covered Himalayas.At the top of the Hill, there is an ancient Hanuman temple.
• Shimla State Museum: The museum is the storehouse of cultural wealth of the state. There is a collection of miniaturePahari paintings, bronze sculptures, wood- carvings, costumes, textiles and jewelleryof the region.
• Indian Institute of Advanced Studies: This institute is housed in the Viceregal Lodge, which was built in 1884-88 bythe British. It has spacious gardens and is ringed by beautiful pine trees. The institute is a centre of reserach and documentation in the field of humanities and social sciences.
• Summer Hill: Situated at a distance of 5 kms from the Ridge is the lovely township of Summer Hill at a height of 6,500 ft.on the Shimla-Kalka railway line. Mahatma Gandhi lived in these quietsurroundings during his visits to Shimla.
• Chadwick Falls: Surrounded by thickforests, this water fall is located seven kms away from Shimla. A 45-minutes walkfrom Summer Hill chowk can also take you to the falls.
• Prospect Hill: Crowned by a temple dedicated to Kamna Devi, this is located on the Shimla-Bilaspur road. Five kms from the main town, the hill offers a spectacular view of the area.
• Naldehra: Twenty two kms from Shimla and surrounded by beautiful deo- dar trees Naldehra has a well kept golf-course. It is a popular picnic spot. The an- nual Sipi fair in June is held in Naldehra.
• Chail: Chail is a little mountainous heaven, 45 kms from Shimla. It was the summer capital of the Maharaja of Patialabefore Independence. The forests near Chail have many species of birds anddeer.
• Jubbal: Headquarters of the erstwhile Princely State, Jubbal (90 kms) has a superbly maintained palace which wasdesigned by a French architect in 1930 and is a remarkable mix of European andindigenous styles.

How to reach
• By Air: Vayudoot services connect Jubbor-Hatti (23 kms from Shimla) with Kullu, Chandigarh and Delhi. Delhi is in turn connected with other Indiancities by Indian Airlines flights.
• By Rail: Shimla is connected by a narrow gauge railway line with Kalka (90 kms), which is well-connected with major cities in the country.
• By Road: Regular bus services connect Shimla with Chandigarh 117 kms, Kullu 220 kms, Manali 260 kms, Delhi 343 kms, Mandi 150 kms, Pathankot 380kms, Ambala 151 kms, Chail 43 kms, Dehradun 240 kms etc.

Where to stay: Hotel Holiday Home, Hotel Peterhope, The Cecil (5 star), Shilon Resort etc. Besides, government guest houses are available.

When to visit: April to mid-July and mid-September to mid-November.

For more on India tourism, visit:
www.himachaltourism.nic.in
www.indiatouristoffice.org
www.tourinda.com
www.tourismofindia.com

Popular Indian Recipes: Samosa

Serves: 4
Cooking time (approx.): 20 minutes + to deep fry
Style: North Indian Vegetarian

Ingredients:

For the Samosa stuffing:
• 1/2 cup(s) shelled green peas
• 2 tablespoon(s) oil
• 1/2 teaspoon(s) cumin seeds
• 2 green chillies chopped fine
• 1 teaspoon(s) finely chopped ginger
• 500 gm large potatoes peeled and cubed
• 1/2 teaspoon(s) red chilli powder
• salt to taste
• 1/2 teaspoon lemon juice
• 1/2 teaspoon(s) garam masala (hot spice mix) (optional)
• 2 tablespoons chopped coriander leaves

For the Samosa shell:
• 1 cup fine flour (No.1)
• 1/4 teaspoon baking soda
• 1/2 teaspoon(s) carom seeds (optional)
• 3 tablespoons oil
• salt to taste
• water as required for kneading
• oil to deep fry

Method:
1. Cook the peas in boiling salted water for about 10 minute(s) or till soft. Refresh in cold water and drain well.
2. Heat the oil in a pan. Toss in the cumin seeds and let them crackle. Add the green chillies and ginger. Fry briefly. Add the potato cubes and mix well. Add the red chilli powder, salt, and garam masala powder. Toss well. Sprinkle some water. Cover and cook on low-medium heat for about 10 minutes or till the potatoes are cooked. Mix in the cooked green peas and put off the heat. Let cool. Mix in the coriander leaves.
3. To make the samosa shell, mix together the fine flour, baking soda, and salt. Add in the carom seeds and oil. Add water little by little whilst mixing with fingers to make a stiff dough, the consistency of a short crust pastry. Keep covered with a damp cloth for about 15 minutes.
4. Divide the dough into 16 equal balls. Apply a little dry flour to each ball when rolling into a circle of 4" diameter. Cut each circle into two and lightly dampen the edges of each semicircle with water. Shape each semicircle onto a cone by pressing the cut edges together. Place a spoonful of the potato-pea filling into the cone and seal the edges well (apply some water on the edges if they do not seal well). Repeat this procedure with the rest of the balls. Deep fry in medium-hot oil in batches on medium flame till crisp and golden brown. Remove onto a paper towel.

Tips:
• To save on time, potatoes can be pressure cooked and then cubed and tossed in spices.
• Carom seeds are also called as omum, caraway seeds, thyme seeds and ajwain.
• Chillies can be increased or decreased as desired.
• The samosa shell can be made with plain flour without the baking soda.
• Self raising flour can be used instead of plain flour, in which case omit the baking soda and baking powder.

Serve hot with: Tomato ketchup.