India Newsletter: October 2006

Economic News

India's ranking in the World Economic Forum's Global Competitiveness Index
India has improved its position by two notches in the World Economic Forum's Global Competitiveness Index rankings for 2006-07. At the 43^rd position, it is well ahead of Brazil (66). China (54) and Russia (62). The report makes a special mention of the tangible improvement in the quality of business environment in India. Goods, labour and financial markets are making gains in efficiency, it says, adding that India has seen substantial improvements in the quality of public institutions and the underlying institutional climate in such areas as property rights, the operation of the judicial system and other indicators which capture essential aspects of building a sound investment climate.

Finance Minister clears 26 FDI proposals
Finance Minister P.Chidambaram has cleared 26 foreign direct investment proposals amounting to $ 215.2 million in September. The proposals include an investment by Japanaese company Mitsubishi Chemicals Corporation for its polyester intermediate (purified terephthalic acid) plant at Haldia in West Bengal, an investment by Russian company JSC Technochim Holding in a titanium project in Orissa, and an investment by UK-based British Gas in Andhra Pradesh, Karnataka and Tamil Nadu to set up a wholly owned subsidiary to transmit and distribute gas.

Dell to pump $60 million in two phases
Global computer major Dell Inc has signed a memorandum of understanding with the Tamil Nadu government to set up a manufacturing unit in Sriperumbudur Hi-Tech Special Economic Zone, which also houses Flextronics, Foxcon and Motorola facilities. Dell will invest $30 million in the first phase, spread over five years, and invest $30 million after five years in the second phase. The company expects to commence operations at its Chennai facility by the first half of 2007.

Hyundai to invest $700 million in India, double production
Hyundai Motor is set to invest an additional $700 million into its Indian operations based in Tamil Nadu. The fresh investment will be used for expansion of Hyundai Motor India's passenger car capacity to 600,000 units per annum from the present 300,000, as well as in a new engine and transmission unit. Consequently, close to 20 vendors are expected to set up base near Chennai, resulting in an additional investment of over $200 million.

Volkswagen drives into Maharashtra
German automaker Volkswagen has finalized an agreement with the Maharashtra Government to locate its Indian Greenfield car manufacturing plant at Chakan in the outskirts of Pune. The company will invest an estimated $570 million in the facility and will initially manufacture small cars for the market, eventually broadening its portfolio to include models for other segments.

Hong Kong company to invest $65 million in Tamil Nadu
Hong Kong-based Growth-Link Overseas Company, a subsididary of Taiwan-based shoe major Feng Tay Enterprise Co. Ltd., and a leading OEM supplier to Nike, has signed a memorandum of understanding with the Government of Tamil Nadu, to create a Special Economic Zone on a 300 acre land in the SIPCOT Industrial Estate near Chennai. The company will set up a manufacturing facility for footwears at an investment of $65 million.

Visit to Ukraine by Indian delegation from the Wool and Woolens sector
A six-member delegation from India organized by the Wool and Woolens Export Promotion Council, visited Kyiv from 10 to 13 September. The delegation attended a Buyer Seller Meet arranged by the Embassy of India, Kyiv and the Ukrainian Chamber of Commerce and Industry and had meetings with Ukrainian companies and businessmen.

Visit to Ukraine by agrifood business delegation from India
A 12-member Indian delegation from the Agrifood business sector, organized by the Federation of Indian Chamber of Commerce and Industry, and led by Shri Surjit Kumar Chaudhary, Secretary and Agriculture Production Commissioner, Government of Tamil Nadu, visited Kyiv from 25 to 26 September and attended a Buyer-Seller Meet arranged by the Embassy of India, Kyiv and Ukrainian Chamber of Commerce and Industry, followed by one-to-one meetings with representatives of Ukrainian companies.

Booming Indian Aviation a Hotspot for Global Players

The Indian civil aviation industry, which is forecast to log robust double-digit growth for the next five years, has emerged as a hotspot for global players - thanks to the entry of a host of low-cost carriers, mega mergers, orders for over 400 new aircraft by airlines and grand airport modernization plans.

From global aircraft manufacturers to airport managements, and training academies to in-flight entertainment companies, there has been a beeline to grab a share of the opportunities that are being thrown by the exploding Indian skies.

"Two years ago it was impossible to even conceive that India could be such a big player in the aviation market," said Kapil Kaul, the India head of the Centre for Asia Pacific Aviation, a leading think tank for the industry. "But over a span of one year, lots of baggage has been unlocked in India and the civil aviation industry is booming. Come to think of it, Indian carriers placed orders for over 400 aircraft worth a whopping $30 billion," Kaul told IANS.

During a visit to Paris and Toulouse recently, a media team from India found the insignia of Indian carriers - like Kingfisher and Air Deccan - on the tails of most aircraft being assembled at the facilities of Airbus, Dassault and ATR. It wasn't surprising since statistics compiled by Airbus Industrie showed that Indian carriers accounted for 327 out of the 2,140 firm orders for new aircraft that were placed with it and rival Boeing in 2005. This does not take into account the orders placed for smaller airplanes with other manufacturers like ATR and Dassault - which, too, are flooded with offers from private Indian carriers. India, in fact, has been the flavour at virtually every air show since 2005.

"Given the projected growth of the Indian economy and its aviation industry, we foresee that the demand for air travel in 2025 will be met by 959 aircraft," said Colin Stuart, vice president, marketing, Airbus Industrie. "Of these, 935 aircraft will be new acquisitions valued at $93 billion," Stuart told IANS in Toulouse, adding that factors that would push growth include strong pent-up demand, progressive market liberalisation and growing household income.

In the last fiscal, the Indian aviation industry logged a robust growth of 24 percent and experts say the sector will expand by at least 16 percent annually for the next five years, riding on the overall economic growth of eight percent. Passenger traffic grew to 52.12 million in the last fiscal, from 43.47 million in 2004-05, to register a growth of 19.9 percent.

To catalyse the growth process, the government is also working on a new civil aviation policy. "The new policy will address all issues that will benefit the aviation sector in the long run," said Indian Civil Aviation Minister Praful Patel. "We will actively operationalise 400 airports with scheduled flights, connecting every corner of the country. The idea is to push regional connectivity with sops and incentives to encourage operators," Patel added.

But experts also warned of poor infrastructure - especially at airports. "We all know India's air transport infrastructure is out-of-date. In fact, the overall situation is critical," said Giovanni Bisignani, chief of the International Air Transport Association (IATA). It is for this reason that the government also took some unprecedented decisions in recent months to build airport infrastructure. Private consortiums were given mandates to upgrade two existing airports and build two new ones.

The airports at Delhi and Mumbai will be modernised at a cost of $1.2 billion, two Greenfield airports will come up in Hyderabad and Bangalore and plans are being drawn up to develop a series of secondary airports by 2008-09.

"Thirty-five non-metro airports are being developed as virtual gateways for our passengers. The funds required for the modernisation of the secondary airports is huge and the private sector is being roped in," Patel said.

Experts maintain the resurgence of the Indian air travel industry has been the result of some active liberalisation by the government to permit the entry of low cost carriers, who, in turn, pushed price-based competition to new levels. Carriers like Air Deccan, Kingfisher, Go Air, IndiGo and Spice Jet not only eye existing airline passengers in India but also those who travel by train because of the cost factor.

(Source: Indo-Asian News Service)

Do You Know?

Indian Railways has a monopoly on the country's rail transport. It is also one of the largest and busiest rail networks in the world, transporting just under five billion passengers and almost 650 million tonnes of freight annually. Indian Railways is the world's largest commercial or utility employer, with more than 1.6 million employees.
The railways traverse through the length and width of the country; the routes cover a total length of 63,940 km (39,230 miles). As of 2005 IR owns a total of 216,717 wagons, 39,936 coaches and 7,339 locomotives and runs a total of 14,244 trains daily, including about 8,002 passenger trains.

India among top holiday spots

Overseas holidayers and travellers have ranked India as the fourth-most attractive and satisfying holiday destination in the world after Italy, New Zealand and Australia - and ahead of the U.S., France, Singapore, Thailand and South Africa.
According to the 2006 Conde Nast Readers' Travel Awards, East was the flavour of the season among overseas holidayers, accounting for three of the top five slots. Thanks to the Central government's hugely popular 'Incredible India' campaign in the overseas markets, India has been climbing up steadily over the past few years. This year, it has vaulted to the fourth spot from its position of 10th-most favoured destination in 2003.

Tourism - India Calls
Darjeeling

Darjeeling, a famous hill resort town in the West Bengal state, invokes visions of serenity, of vibrant green hills steeped in splendour, a land of breathtaking beauty crowned by the majestic Himalayas. Darjeeling, which is situated at an altitude of 2,134 metres above sea-level, is a heavenly retreat bathed in hues of every shade: the flaming red rhododendrons, sparkling white magnolias, miles of undulating hillsides covered with emerald green tea bushes, exotic forests of silver fir - all under the blanket of a brilliant azure sky dappled with specks of clouds, compellingly confirms Darjeeling as the Queen of the Himalayas.

Tourist attractions
• Toy Train: The most spectacular way to reach Darjeeling is by the 84-km long, seven-and-a-half-hour meandering ride on the British-built Toy Train, as the Darjeeling Himalayan Railway is lovingly called. The train, which was begun in 1880 and has ferried viceroys, heads of states, kings, queens besides millions of tourists, was included in the World Heritage list by UNESCO in 1999. It is still to this day powered by a steam engine.
• Chowrastha: This is the heart of the town and a popular haunt of tourists. Visitors have to ascend a hill full of curios, studios etc, to reach Chowrastha or the Mall, which is a huge flat platform surrounded by benches for people to sit. The place affords a great view of the majestic Kanchenjunga and the surrounding hills.
• Himalayan Mountaineering Institute: This institute was founded to commemorate the ascent of Mount Everest (8,848 m)by Tenzing Norgay and Sir Edmund Hillary.
• Observatory Hill: This hill is located above Chowrastha and is a few minutes walk from the Mall Road, on which the Sacred Mahakal temple rests. Mahakal is believed to the incarnation of Lord Shiva. Adjacent to Mahakal temple is a Buddhist shrine.
• Rangeet Valley Ropeway: A mono cable ropeway connects Darjeeling with Bijanbariin Rangeet Valley. The ropeway's 4,620 ftspan is the longest in India. A bicable passenger ropeway linking Darjeeling's North Point with Singla descends from a height of 2,134 metres to 244 metres and offers views of the beautiful tea gardens.
• Lloyd's Botanical Garden: Spread over40 acres and barely 15 minutes walk from Chowrastha, this garden is home to plants native to Sikkim Himalayas and exotica from other parts of India and the world. Besides many varieties of alpine plants, the garden boasts of 150 species of cactii as well as 50 rare varieties of orchids.
• Tiger Hill: Situated at an altitude of 2590metres and 13 kms from the town, this spot has earned international fame for the magnificent view of the sunrise over Kanchenjunga and the great Eastern Himalayan mountains. Even Mount Everest is visible from here.
• Batasia Loop: About 5 km from Darjeeling,this railway loop is a marvellous feat of engineering. It is fascinating to watch the toy train wind its way round the loop. The War Memorial constructed in the memory of the brave sons of Darjeeling who died indifferent battles since 1947, is worth a visit. The site offers a glorious view of the snowy peaks and the town.
• Rock Garden and Ganga Maya Park: Located about 12 km from Darjeeling, this garden adorned with hill rock, fountains and flowerbeds is a must-see. Barely 2 km from here is Ganga Maya Park that has a small lake with boating facilities.
• Happy Valley Tea Garden: Of the 70 odd tea gardens around Darjeeling, this one is the nearest and affords visitors an opportunity to see the processing of the world famous Darjeeling tea.

How to reach
• By Air: Nearest airport is at Bagdogra, about 90 km away.
• By Rail: Main railhead is at Siliguri, about 80 km away.
• By Road: Well-connected by road from Siliguri and other important cities.

Climate
• Winter: Maximum temperature is 6 degrees Celsius, minimum is 1 degree Celsius.
• Summer: Maximum temperature is 14.8 degrees Celsius; minimum is 8.5 degrees.
• Best time to visit: March-June and October-December.

Where to stay: Tourist Lodge, Tenzing Norgey Youth Hostel, Maple Tourist Lodge, Windamere Hotel.

For more on India tourism, visit:
www.wbtourism.com
www.tourindia.com
www.tourisminindia.com

Indian Festivals

The Indian calendar is one long procession of festivals. Every season brings along new festivals, each a true celebration of the bounties of the rich traditions followed for time immemorial. Come October and the smell of festivities is in the air! Dussehra, Diwali, Durga Puja, Id ul Fitr – the entire month is packed with fun and excitement. Observed with enthusiasm and gaiety, festivals are like gems ornamenting the crown of Indian Culture. They are round the year vibrant interludes in the mundane routine of life. Festivals serve as an occasion to clean and decorate houses, to get together with friends and relatives and to exchange gifts. New attire, dance, music and rituals- all add to their joyful rhythm. It is a time for prayer, for pageantry and procession:a time to rejoice, in celebration of life. Some of the well known and widely celebrated festivals of India are:

Diwali: Diwali or Deepawali the most pan-Indian of all Hindu festivals, is a festival of lights symbolising the victory of righteousness and the lifting of spiritual darkness. The word 'Deepawali' literally means rows of diyas (clay lamps). A family festival, it is celebrated 20 days after Dussehra, on the 13^th day of the dark fortnight of the month of Asvin (October-November)

According to the most popular legend, this festival commemorates Lord Rama's return to his kingdom Ayodhya after completing his 14-year exile. Twinkling oil lamps or diyas light up every home and firework displays are common all across the country. The Goddess Lakshmi, who is the symbol of wealth and prosperity, is also worshipped on this day.

This festive occasion also marks the beginning of the Hindu New Year and Lord Ganesha, the elephant-headed god, the symbol of auspiciousness and wisdom, is also worshipped in most Hindu homes on this day. The occasion of Deepawali sees the spring-cleaning and whitewashing of houses; decorative designs or rangolis are painted on floors and walls. New clothes are bought and family members and relatives gather together to offer prayers, distribute sweets and to light up their homes.

Dussehra: Dussehra (tenth day) is one of the significant Hindu festivals, celebrated with much joy in the entire country. The occasion marks the triumph of Lord Rama over the demon king, Ravana, the victory of good over evil. Brilliantly decorated tableaux and processions depicting various facets of Rama's life are taken out. On the tenth day, the Vijayadasmi day, effigies of Ravana, his brother Kumbhkarna and son Meghnad are placed in vast open spaces. Rama, accompanied by his brother Lakshmana, arrive and shoot arrows of fire at these effigies, which are stuffed with explosive material. The result is a deafening blast, enhanced by the shouts of merriment and triumph from the spectators. In burning the effigies, people are asked to burn the evil within them, and thus follow the path of virtue and goodness, bearing in mind the instance of Ravana, who despite all his might and majesty was destroyed for his evil ways. It must be remembered that Ravana was a great scholar and an ardent devotee of Lord Shiva, but the very powers that were bestowed on him for his steadfast devotion proved to be his undoing, due to his gross misuse of the same.

Durga Pooja: The festival of Durga Puja runs parallel to Dussehra and is celebrated with intense fervour and zest in West Bengal and by the Bengalis nationwide. The festivities commence on the first night in the month of Ashwin (October-November). The vibrant festivities last for ten days, of which nine nights are spent in worship, 'Navaratri'. The tenth day is devoted to the worship of Goddess Durga, who occupies a special position in the Hindu pantheon of gods and goddesses. She is 'Shakti', the cosmic energy that animates all beings. Beautiful idols of the Mother Goddess are worshipped in elaborate pandals for nine days, and on the tenth day, these are carried out in procession for immersion (visarjan) in a river or pond.

According to a Puranic legend attached to this day, the mighty demon Mahisasur vanquished the gods and their king, Indra, who subsequently fled, leaving behind their kingdoms. They then approached the Holy Trinity, Brahma, Vishnu and Shiva, who decided to destroy the megalomaniac demon, and thus prayed to the divine mother Durga to do the needful. Equipped with lethal weapons, riding a ferocious lion, the Goddess in all her awesome majesty, vanquished the evil one without much ado.

Id: Besides Hinduism, India is also the home of innumerable other faiths and the religious and cultural diversity of this nation is manifested in the large number of non-Hindu festivals.

Id-ul-Fitr, Id-ul-Zuha and Id-i-Milad are the three major festive occasions widely celebrated by Muslims in India. Id is celebrated with great enthusiasm all over the country, and one can see Muslims of all age groups and from all strata of society attired in new clothes, visiting mosques to offer namaaz.

Id-ul-Fitr (Ramzan Id) - Coming with the new moon, this festival marks the end of Ramzan, the ninth month of the Muslim year. It was during this month that the holy Koran was revealed. Muslims keep a fast every day during this month and on the completion of the period, which is decided by the appearance of the new moon, Id-ul-Fitr is celebrated with great éclat. Prayers are offered in mosques and Idgahs and elaborate festivities are held.

Popular Indian Recipes: Angoor Rabri (Dessert)

Ingredients:

• 5 cups (1 litre) full cream milk
• 1/2 cup sugar
• 1-2 green cardamoms (for flavour)
• 12-15 almonds-blanched and shredded
• 2 tbsp pistachios-blanched and shredded
• 1 cup grapes-washed and stalks removed

Method:
1. Bring the milk to a boil in a wide, heavy based pan and add the sugar and cardamom and simmer over low heat.
2. Cook till 1/3 of the volume of milk is left. The time taken will depend on the richness of the milk and your vessel.
3. When done, the colour changes to beige.
4. Shut off the heat. When cool, mix in the grapes and transfer on to a serving dish
5. Garnish with the nuts (optional), chill and serve.

NRI/PIO Corner

Pravasi Bharatiya Divas

The fifth edition of Pravasi Bharatiya Divas will be held in New Delhi from January 7-9, 2007. The Confederation of India Industry (CII) is the institutional partner of Ministry of Overseas Indian Affairs for organizing the event.The four day conference will be inaugurated by Prime Minister of India and the valedictory session would be attended by the President.
For more detaims visit www.pbd2007.org

No more handmade passports

The Ministry of External Affairs (MEA) has decided to do away with handmade passports issued in large numbers by Indian missions abroad by March. From next year, all applications received at missions abroad will be processed in Delhi on the basis of data fed into computers at the missions. The machine-readable passports will be issued in four days and despatched by courier, for which a pact has been signed with FedEx. To ensure there are no delays, the MEA has also augmented staff at passport offices and enhanced output by introducing machine printers for the preparation of the passports. A decision has also been taken to issue full 10-year validity passports under the Tatkal system. It has also been decided to reduce the specified time period for re-issue of passports from 1-10 days to 1-3 days. To further make the process applicant-friendly, the MEA has decided to decentralise the system of receiving applications by increasing the number of speed post centres for collecting the applications to 1,000 by the end of the year. A Central Public Grievance Monitoring Cell has also been set up by the ministry for quick redressal of any problem that an applicant may face.

Just laugh a little:

While I was watching the NFL playoff games one weekend, my wife and I got into a conversation about life and death, and the need for living wills. During the course of the conversation I told her that I never wanted to exist in a vegetative state, dependent on some machine and taking fluids from a bottle. She got up, unplugged the TV and threw out all my beer. Man, sometimes it's tough being married to a smart woman!!