India Newsletter: November 2006

Economic News

PM invites Europeans to invest in infrastructure, services
Addressing the seventh EU-India Business Summit in Helsinki on 12 October, Prime Minister Manmohan Singh portrayed India as an attractive, safe and profitable business destination and said that his government was giving thrust on increased private sector participation in public works, including highways, ports, and power sector, besides telecommunications. He noted that the present level of bilateral economic engagement between India and the EU was far below potential. Though EU remains India's largest trading partner with bilateral engagement of about $40 billion, FDI inflows from the 25-nation bloc was at a meagre $375 million in 2005 compared to $451 million a year before. The Prime Minister invited European firms to invest in the country's core sectors that require a massive $320 billion over the next five years.

Index of Industrial Production (IIP) grows at scorching pace of 9.7%
Strongly suggesting that the 8.9% growth registered by the Indian economy in the first quarter was no flash in the pan, manufacturing output has turned in a vigorous growth of 11.1% in August. This boosted the industrial growth for the first five months of the current fiscal to 10.6%. Triggered by a whopping growth of over 20% during August in the consumer durable sector (13%) and a 11.1% growth in the manufacturing space (8.5%), India's industrial output shot by 9.7% in August.

Tata acquires European Steelmaker Corus
The Tata Group took over the Corus Group, Europe's second largest steelmaker, in what is considered corporate India's biggest buy till date. With this $8 billion deal which signifies India's growing economic and entrepreneurial strength, the current fiscal may see FDI outflows overtaking inflows for the first time. Going by the data for 2006, Indian companies have so far announced over 130 acquisitions overseas which are estimated to be nearly $19 billion. In comparison, acquisitions announced by foreign companies in India were estimated at $9 billion.

IFC may scoop up stake in mega power projects
International Finance Corporation, the private equity arm of World Bank, is in talks with power companies in India to pick stakes in the ultra mega power projects. The orgnisation, which had a portfolio of $1.26 billion in India as of July '06, has indicated that it could consider investing much more than $500 million in the country, over the next one year and is open to finance special economic zones.

Hewlett Packard starts production facility in Uttaranchal
Hewlett Packard India launched its second manufacturing facility in the country in Pantnagar, Uttaranchal. Set up with an initial investment of about $20 million, the plant will start functioning in March 2007 and have an initial capacity of manufacturing 300,000 computers a month. Besides Pantnagar, HP has another plant in Bangalore, Karnataka.

Mahindra and Mahindra enters Iranian market
India's largest tractor manufacturer Mahindra & Mahindra, entered into a strategic tie-up with a local tractor manufacturer in Iran and has become the first Indian firm to launch tractors in the region.

BNP Paribas invests $63.8 million in local arm
French financial services group BNP Paribas, has infused $63.8 million of capital in its Indian operations, taking the total capital base of the bank in India to $220 million. BNP Paribas has eight branches in India. As of March 2006, total deposits stood at $406.38 million. It has reported a net profit of $4.22 million in 2005-06.

Sixth International Aerospace Exhibition - Aero India 2007 from 07 to 11 February 2007

India will be hosting the Sixth International Aerospace Exhibition - AERO INDIA 2007 at Air Force Station, Yelahanka, Banagalore, from 7^th to 11^th February 2007. Participants will include leading global aerospace and defence companies, eminent personalities in the field of aerospace, defence planners, experts and delegates from number of defence establishments of foreign countries.

Aero India 2007 is being organised by the Ministry of Defence, Government of India, in association with Federation of Indian Chambers of Commerce and Industry (FICCI) and Farnborough International Ltd. It will bring to fore new opportunities for the aviation and aerospace industry.

So far "Aero India 2007", has received a tremendous response from International and Domestic Companies and a large "International" participation is coming in terms of country pavilions from nations like France, Germany, Israel, Italy, Russia, UK, USA, Ukraine etc. Apart from this, domestic participation is also shaping up very well. Society of Indian Aerospace Technologies & Industries (SIATI) will have a larger group of members participating at Aero India 2007. The Ordnance Factory Board (OFB), Defence Research and Development Organisation (DRDO) and Defence Public Sector Undertakings (DPSUs) including Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Earth Movers Limited (BEML) are participating in a big way.

Over the years there has been an exponential growth in terms of Participants, Display area, Aircraft and overall Business in the Indian Aero Exposition. To meet this dynamic growth and give the participant sufficient space for Chalets and Aircraft, this year the exhibition area is being enhanced to 25,000 Sq Mtrs indoor and 30,000 Sq Mtrs of outdoor space. Importantly some 90 aircraft are expected to be on display representing all major aviation industries of the world.

The exhibition would be a great opportunity for Ukraine's Aviation Industry to network and seek greater share of the Global Aviation business.

For any further information and details regarding 'Aero-India 2007' please contact Air Wing at Embassy of India, Kyiv on Telephone number 4681999 or email at air_wing@i.com.ua

Do You Know?

Amul: World's top milk brand

Amul is set to become the world's largest liquid milk brand. This follows the consolidation of Gujarat's various district milk cooperatives under the Amul umbrella. Until now, Amul's marketer - Gujarat cooperative Milk Marketing Federation - has said it is Asia's largest milk brand.
The market of the Amul brand of liquid milk will increase by about 3.8 million litres per day to 4.6 million litres a day, once the district-level milk brands are phased out.
The market size for Amul milk will increase further by 200,000 litres if sales of liquid milk in paper box packs are also added to pouch milk sales.
The sales of the Amul brand of liquid milk would also cross Rs. 10 billion from about Rs. 9 billion at present.

IIMs, IITs in top 100 universities

The Indian Institutes of Technology (IITs) and the Indian Institutes of Management (IIMs) are among the world's best universities, according to the 2006 university rankings published by the Times Higher Education Supplement in London recently. The IITs are ranked at No. 57, and the IIMs at No. 68 on the list of 200 universities. But while the IITs have slipped seven notches from last year's No. 50, the IIMs have climbed 16 rungs from No. 84 last year. The list is dominated by American and British universities, with Harvard retaining its No. 1 position and Cambridge and Oxford universities coming in second and third places.
The Massachusetts Institute of Technology (MIT) and Yale University are tied in the fourth place. The rankings are based on a survey of over 3,000 academics who were asked to identify universities best for research in their fields of expertise. This ensured that a university's ranking would suffer if its standards of research fell. The survey also took into account the student-teacher ratio and the extent to which a university attracted foreign students and academics.

Tourism - India Calls
Udaipur

Set amidst three lakes and hemmed in by the lush Aravali Hills, Udaipur is an alluring city in Rajasthan's far south, about 420 km from the state capital Jaipur. The legends of bravery of its Rajput rulers combined with the exotic locale, marvelous marble and sandstone palaces, beautifully laid out gardens, intricately carved temples and narrow lanes flanked by colourful stalls produce a mesmerizing effect on the visitor. Built in 16th century by Maharana Udai Singh, the ruler of the princely state of Mewar, Udaipur city embodies the very best in Rajput art and architecture and culture and tradition.

Tourist attractions
• City Palace: Located on the edge of Pichola Lake, this palace with many beautiful structures built by successive generations of rulers within its confines, is the largest in Rajasthan. There is plenty to see in the complex such as Elephant Gate, Suraj Gokhada (balcony from which the rulers gave audience to their subjects), Peacock Square, City Palace Museum, royal courtyards, Ruby Palace, Pearl Palace, Bari Mahal (the central garden with a view of the city), Zenana Mahal (ladies' chamber) and Lakshmi Chowk (a beautiful white pavilion).
• Fateh Prakash Palace: In a separate enclosure within the City Palace complex are Shiv Niwas and Fateh Prakash Palace that have been converted into super luxurious heritage hotels. Fateh Prakash Palace also has a rare collection of crystals, including tables, sofa sets, dinning table, dressers, fountains, beds, and a whole array of washing bowls, decanters and perfume bottles. The Durbar Hall here is the most lavish of all in India.
• Lake Pichola: This picturesque lake, 4km long and 3 km wide, was enlarged by the city's founder and encloses Jag Niwas Island and Jag Mandir, with the City Palace as its backdrop on its eastern bank.
• Fateh Sagar Lake: Surrounded by hills and woodland, this lake to the north of Lake Pichola was constructed by Maharana Jai Singh in 1678 and later reconstructed by Maharana Fateh Singh. The beautiful Nehru Island as well as an islet bearing a solar observatory rises from the lake. Lake Palace: Located on the Jag Niwas Island and covering the whole of 1.5 hectare of the island in the middle of Pichola Lake, this royal summer palace dating back to1743 is now a five-star heritage hotel that retains much of its regal splendour.
• Jag Mandir: Also located in Lake Pichola, this complex was built as a hideout for Prince Khurram (who later came to be known as Shah Jahan), the estranged son of Mughal emperor Jehangir. Shah Jahan stayed here in 1623-24 and is said to have derived some of the ideas for the Taj Mahal from this palace. Udaipur's largest and most famous temple dedicated to Lord Jagdish (Lord Vishnu), and a museum, are also located within this island palace.
• Maharana Pratap Memorial: An impressive bronze statue of legendary Udaipur ruler Maharana Pratap astride his famous horse Chetak stands at the top of Moti Magri (Pearl Mount) overlooking Fateh Sagar Lake. The ruins of one of the first Udaipur's forts and a charming Japanese rock garden near the memorial are also worth seeing.
• Shilpgram or Craftsmen's Village: This ethnographic museum depicting the craft, art and culture of various Indian states, is housed in 26 huts spread over 70 acres of natural surroundings at the foot of the Aravali Hills. A colourful craft festival is held here during winter seasons.
• Nearby Attractions: These include Kumbhalgarh Fort, Ranakpur (famous forits 15^th century Jain temples) Chittorgarh (which boasts of the largest hilltop fort), Haldighati (the site of the famous battlebetween Maharana Pratap and Mughal emperor Akbar in 1576), and Sajjangarh, where an 18^th century palace perched 2,468 feet atop Bansdara Mountain, dominates Udaipur's skyline.

How to reach
• By Air: Debock airport is 24 km from city centre and is well connected to Mumbai, Delhi and Jaipur.
• By Rail: Udaipur is directly connected to major Indian cities by rail.
• By Road: Well-connected by road from Delhi and other important cities.

Climate
• Winter: Maximum temperature is 28 degrees Celsius, minimum is 11.6 degrees Celsius.
• Summer: Maximum temperature is 39 degrees Celsius; minimum is 29 degrees.
• Best time to visit: Between September and March.

Where to stay: Udaipur has major hotel chains and scores of budget hotels.

For more on India tourism, visit:
www.rtdc.org
www.tourindia.com
www.tourismofindia.com

Indian Festivals

Onam: Onam, the principal festival of Kerala, is celebrated against a setting of lush green vegetation. This picturesque harvest festival brings with it ten days of colour, feasting, boat races, song and dance to the state.

According to legend, the state's most colourful festival, Onam celebrates the golden age of King Mahabali, the mythical ruler of Kerala. The festivity begins ten days before Thiruonam, by putting floral decorations (Pookkalam) on every home. At Trichur (Thrissur), caparisoned elephants take part in a spectacular procession. A magnificent display of fireworks marks the end of the festivities here. At Cheruthuruthy, appreciative crowds gather on the green, where the Kathakali dancers, resplendent in their brilliant costumes, re-enact the well-loved stories of the epic heroes and virtuous women.

The Vallamkali (boat race) is one of the main attractions of Onam, and is best seen at Aranmulai and Kottayam.

Janmashtami: Lord Vishnu is invoked in his human incarnation as Krishna on his birth anniversary in the festival of Janmashtami. The temples of Vrindavan witness an extravagant and colourful celebration on this occasion. Raslila is performed to recreate incidents from the life of Krishna and to commemorate his love for Radha. The image of the infant Krishna is bathed at midnight and is placed in a cradle. Devotional songs and dances mark the celebration of this festive occasion all over Northern India.

In Maharashtra, Janmashtami witnesses the exuberant enactment of the god's childhood endeavours to steal butter and curd from earthen pots beyond his reach. A matka or pot containing these is suspended high above the ground and groups of young men and children form human pyramids to try and reach the pot and eventually break it.

Laddakh Festival: Beyond the sylvan valley of Kashmir lies the enigmatic land of Ladakh. Leh, a fabled city, looms as a sentinel on the ancient silk route from Sinkiang to West Asia and to the plains of India. In AD 400, the great Chinese traveller Fa-Hien visited the city and was amazed by its natural grandeur. Ladakh presents a mesmerising blend of Buddhist and Muslim cultures.

In the month of September, the 'moonland' of Ladakh comes alive with a magic of its own. The people, fabulously bedecked with gold and silver ornaments and turquoise headgears, throng the streets. Monks in their ritual regalia, wearing colourful masks, dance to the entrancing rhythm of cymbals, flutes and trumpets. The Yak, Lion and Tashishpa dances depict the many legends and fables of Ladakh, the hermit kingdom.

A range of exquisite handicrafts and quaint antiques populate the lanes and bazaars of the region. For those with a more adventurous bent of mind, rafting on the Sindh, Sutlej and Zanskar rivers, paragliding, and trekking are some of the activities offered during the festival.

Ganesha Chaturthi: Ganesha, the elephant-headed son of Shiva and Parvati is widely worshipped as the munificent god of wisdom. Ganesh Chaturthi is a festival in his honour and is celebrated in the states of Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

To appreciate this occasion, one must go to Mumbai where preparations begin months in advance. Images of Ganesha are installed within homes as well as in places of assembly. Elaborate arrangements are made for lighting and decoration and Ganesha is fervently worshipped for about seven to ten days. On the day of the Chaturthi, the last of the days dedicated to the elephant-headed god, thousands of processions converge on the beaches of Mumbai to immerse the holy idols in the sea. This immersion is accompanied by drumbeats, devotional songs and dancing.

Buddha Purnima: Buddha Purnima or Buddha Jayanti, the birth anniversary of the Buddha, is widely celebrated, on a full moon night in April/May. The Buddha was born on the full-moon day in the month of Vaisakh in 563 BC. He achieved enlightenment as well as nirvana on the same date. On this day, Buddhists offer prayers in their temples. Sarnath in Uttar Pradesh and Bodh Gaya in Bihar are the main centres of celebration.

Rath Yatra: At the temple town of Puri in Orissa, the image of the Lord Krishna (known as Jagannath in the State) is taken out with great ceremony in June-July each year. Images of the god and his brother Balbhadra and sister Subhadra are placed in giant yellow chariots or raths, which are then drawn by pilgrims. The chariots are 45 feet high and have six wheels. The procession or rath yatra draws huge crowds from all over the country. An atmosphere of almost hysterical devotion prevails on this day.

Popular Indian Recipes: Chicken Biryani

Ingredients:

• Basmati rice 2 cups
• Chicken pieces 3/4 kg.
• Milk 1/2 cup
• Yogurt (curd) 1 cup
• Thinly sliced onion 3
• Ginger paste 1 tsp.
• Garlic paste 1/2 tsp.
• Green chilli paste (optional) 1 tsp.
• Tomato puree 1/2 cup
• Red chilli powder 1 tsp.
• Turmeric Powder 1 tsp.
• Roasted cumin powder 1 tsp.
• Garam Masala Powder 2 tsp.
• Green cardamom powder (for flavour) 1/2 tsp.
• Coriander powder 1 tsp.
• Green coriander leaves 2 tbsp.
• Salt to taste
• Vegetable oil 7 tbsp.

Method:
1. Mix tomato puree, yogurt, ginger garlic paste, green chilli paste, red chilli powder, turmeric powder, roasted cumin powder, garam masala, coriander powder and salt. Stir well.
2. Marinate the chicken with this mixture and keep aside for 3-4 hours.
3. Heat oil in a pan. Fry the onions until golden brown.
4. Add the marinated chicken and cook for 10 minutes.
5. Add 4 cups of water to the rice. Add milk. Add cardamom powder. Add the chicken pieces. Cook the rice till done.

Mix gently. Garnish with green coriander leaves and serve hot.

Note: Even if some spices are not locally available, still go ahead and you will enjoy the dish.

NRI/PIO Corner

PBD 2007 to focus on investment

The upcoming Pravasi Bharatiya Divas to be held in New Delhi from January 7-9 will focus on investment and education, apart from hosting a meeting of the members of parliament from different countries who are of Indian origin and other events. "The Indian diaspora has grown in number and in clout. We want them to belong to India and be a part of the country's progress and development," said Vayalar Ravi, Minister for Overseas Indian Affairs. The session on education will focus on various ways through which the Indian diaspora can participate in revamping the education infrastructure. The meeting will also seek ways through which the Indian diaspora can contribute to the health sector. Separate region-wise sessions will also be held for the diaspora, like those from the Gulf, Africa and Europe. The chief ministers and ministers of various states are also invited to the sessions.
For more detaims visit www.pbd2007.org

Voting rights for NRIs with Indian passports

In an effort to further strengthen the bond between NRIs with their motherland, India plans to set up a University for the People of Indian Origin (PIOs) and extend voting rights to NRIs holding Indian passports, Minister for Overseas Indian Affairs Vayalar Ravi said during his visit to UK in October.
"I am proposing the setting up of the PIO University and I am confident that it will be established in India with the help of NRIs for the higher education of their children," Ravi told PTI in an interview in London.
The Minister, who was on a three-day visit to UK addressed a series of meetings of NRIs, said a decision on the location of the University would be finalised shortly.
He said a legislation to provide voting rights to NRIs holding Indian passports was currently before the Rajya Sabha and it would be passed shortly.
Instead of making any Constitutional Amendments, he said, the Government plans to bring about the change with a simple amendment to The Peoples' Representation Act to ensure that names of NRIs are not deleted even if they are not residing in the country.
"Discussions are on with the Election Commission to facilitate such NRIs to vote either with an ID card or their passports when they are in India," he said, adding the measure would greatly help about 5 million NRIs working specially in the Gulf.