India Newsletter: April 2007

Economic News

India's Feb Industrial output up 11%
India's industrial production rose 11.0 % in February from a year earlier, slightly lower than upwardly revised annual growth of 11.4 percent in January.
Manufacturing production, which represents more than 75% of industrial output, rose 12.3% in February from a year earlier, compared with a revised 12.1% annual growth in January.
Industrial output in India, which is Asia's fourth largest economy has been growing strongly on the back of robust consumer demand and exports.

Indra Nooyi bags prestigious US award
Chief Executive Officer of PepsiCo Indra Nooyi has bagged the American 'By choice' award for her outstanding achievements as naturalized American citizen. At a function in Washington, the Director of US Citizenship and Immigration Services Emilo Gonzales presented her the award.
Nooyi, who was named one of the most powerful businesswomen in 2006 by the Fortune magazine, was honoured with the Padma Bhushan - India's third highest civilian award - by the Indian government in March 2007.

India's GDP crosses US$ 1 trillion
India has joined the elite club of 12 countries with a trillion dollar economy, thanks to the continuing rally in rupee against the US dollar, according to the Swiss investment bank Credit Suisse. The bank put the country's GDP at around trillion dollar at the current currency level of Rs. 40.76 per dollar.
Besides, the country's stock market capitalization has risen to $944 billion, which is also closing fast on the trillion dollar level, it added.
India becoming a trillion dollar economy also augurs well for the country's stock market, as the Credit Suisse report said that stock markets in eight out of ten countries had risen in the one year after their economies first crossed this mark.

Steel: India may rank second
Enthused with the resurgence in steel sector, the government anticipates that the country is set to emerge as the world's second-largest steel producer by 2016 as the capacity would rise three-fold to 120 million tonnes.
The Government had projected 65 million tonnes of production capacity by 2010-11 in the National Steel Policy but now these estimates have been revised to 80 MT, Steel secretary R.S. Pandey said in an interview.
"Given a conducive mineral policy framework, this country should be producing 120 million tonnes by 2015-16 and 180MT by 2019-20", Pandey said, exuding confidence that by 2015-16 India will be the world's number two steel producer.
The country is currently the world's seventh-largest producer of the alloy with a capacity of around 44 MT. China is at the top with a capacity of 418 MT, followed by Japan with 116 MT and US with a capacity of 98 MT.

Essar buys Algoma for US$ 1.6 billion
Essar Global announced the acquisition of Canadian steel major Algoma in an all-cash deal worth $ 1.6 billion. The acquisition would take place through the wholly owned subsidiary, Essar Steel Holdings. Algoma supplies sheets to US carmakers including General Motors Corp and Ford Motor Co.
With the acquisition of Algoma, Essar will gain access to the US carmakers . Algoma shipped about 2.42 million tonne last year, with about 80 percent coming from hot-rolled sheet. Essar will also have accessto raw materials by virtue of Algoma's 15 -year coal supply agreement and a seven -year contract for iron ore.
Essar Steel has a 4.6 million tonne per annum integrated steel capacity in Gujarat.
This is the third major acquisition by Indian metal companies in the foreign markets. Tata Steel recently bought the Anglo-Dutch steel maker Corus group for $12.15 billion, thereby becoming the fifth largest steel company in the world. The Aditya Birla group flagship, Hindalco Industries, bought the Atlanta-based aluminum downstream leader, Novelis, for $3.5 billion.

Higher Education in India

With private sector also taking a strong initiative, India has well established itself in the field of higher education. The Indian Institutes of Technology were placed 50th in the world by Times Higher World University Rankings. The National Law School, Bangalore is highly regarded, with some of its students being awarded Rhodes Scholarships to Oxford University, and the All India Institute of Medical Sciences is consistently rated the top medical school in the country. Indian School of Business, Hyderabad and the Indian Institutes of Management (IIMs) are the top management institutes in India.

The seven IITs are located in Kharagpur, Bombay, Madras, Kanpur, Delhi, Guwahati, and Roorkee. In order to prevent regional imbalance, the location of IITs had been carefully chosen. All IITs are autonomous universities that draft their own curricula, and they are, with the exception of IIT Kanpur, members of LAOTSE, an international network of universities in Europe and Asia. LAOTSE membership allows the IITs to exchange students and senior scholars with universities in other countries.[2]

The Indian Institutes of Management (IIMs) are the premier management / business schools of India, located in the cities of Ahmedabad, Bangalore, Indore, Kolkata, Kozhikode, and Lucknow. They award post-graduate diplomas in management (equivalent to an MBA) with various specializations. The programs are of a duration of two years. Apart from the flagship programs, the IIMs also offer various shorter duration management training programs as well as part-time MBA programs for various organisations and individuals. All the IIMs are completely autonomous institutes and get grants from the Central Government of India.

The Indian School of Business (ISB) located in Hyderabad, India, is an international Business School providing postgraduate programmes in Management (Master of Business Administration - MBA), post doctoral programmes, as well as executive education programmes for business executives. It was founded on December 20, 1999 by a group of Fortune 500 entrepreneurs in collaboration with Andhra Pradesh's state government. Indian Business School's partners include London Business School, Wharton Business School and Kellogg School of Management. The accelerated one-year post graduate programme course is ISB's speciality.

Do You Know?

Goldman Sachs, a global investment and banking firm, has said the per capita income of India is expected to increase four-fold by 2020.The consumption of cars is expected to go up five times, crude oil by three times and the housing, real estate and urban infrastructure expected to multiply manifold. Tushar Poddar, economist, Goldman Sachs, said: "The combined demand of Brazil, Russia, India and China (BRIC) will increase four-fold by 2010. The annual increase in gross domestic product (GDP) of BRIC countries will reach $521 billion by 2010 as compared with the G-6 countries' annual increase of $471 billion."

India has joined an elite club of nations with capabilities to launch commercial satellites when it put an Italian astronomical satellite into orbit from the space centre in Sriharikota. The white and magenta polar satellite launch vehicle PSLV-C8 lifted off into the clear blue sky from the Satish Dhawan Space Centre at 3.30 p.m. local time on April 23. Shortly thereafter, it placed the 352-kg AGILE satellite from Italy into orbit to catapult the country into an elite group of just six nations that have the ability to launch commercial satellites.
What was also significant about the launch was that a European nation had picked the Indian Space Research Organization (ISRO) for the launch ahead of more experienced players like France and Russia that between them have launched over 800 space missions. The U.S., China and Japan are the other nations with similar capabilities.

Tourism - India Calls
TAWANG – The Unexplored Paradise

This is not your run-of-the-mill winter destination. Tawang, on the northwestern edges of remote Arunachal Pradesh state that borders China, has been described as a "hidden paradise". And with good reason. Getting there isn't easy. But for those willing to make the effort, the reward is a breathtaking experience. Tourist brochures will say the best time to visit Tawang is between April and October. True, Tawang in summer is beautiful beyond compare. But a winter trip to this far-flung region is guaranteed to be one that will be long remembered. Plan your visit for February, when the temperatures are more manageable than in December and January. Located in the eastern Himalayas at an altitude of 3,500 metres above sea level, Tawang covers an area of 2,085 sq km and can be reached by road from Itanagar, thestate capital. If you start early, you can avoid an overnight stay at Bomdila. Enroute is the Sela Pass, the second-highest motorable road in India. A halt here is a must for some spectacular views. There is a frozen lake near the pass, and witnessing the sunset there is, as one tourist put it, like "achieving nirvana". The region, in summer, is all about cobalt blue skies, green pine trees, tranquil lakes, cascading waterfalls and flowers in a million hues, especially orchids. But in winter it is the all-enveloping white of the snow that brings out the freshness of nature. The Himalayan views can only be described as awesome. The inhabitants of the area belong largely to the Monpa tribes. The town is home to Tibetan Buddhism's biggest monastery, after the Potala palace in Lhasa, and the 6thDalai Lama was born here. To the south of the town, the Tawanchuriver carves a deep gorge as it rages by, while jagged cliffs rise steeply towards the north and snow capped peaks frame the east. To the west, the 400-year-old Tawang monastery looms on the horizon on a 2,760 metre high ridge, its enormous yellow roof and white walls standing out like a beacon for miles on end. Tawang is also a popular haunt for several adventure sports. The rivers Tawang-Chuand Namjang-Chu are ideal for river-rafting activities. There are other options as well: Rock-climbing, paragliding, skating, skiing and hiking.

Major attractions
There are several beautiful lakes and hotwater springs around Tawang. One is Pankang Teng Tso lake, just 17 km from the township. Other eye-catching lakes are the Sangetser Lake, Banggachang Lake. Orchidarium: There is also Orchidarium at Tipi on the banks of the Kameng river in the West Kameng District, enroute Tawang. The town of Tawang itself is modern, with a bustling bazaar and fluttering prayerflags. The best way to enjoy Tawang is to walk around the town. And once you have had your fill, make a trip to Zimithang to see the impressive Gorsam Stupa, the Tatsanggompa, the Khinme monastery and the Singshur nunnery. The Sangeshar Lake, en route, is one of myriad lakes that make Tawang the splendid haven. Permits: Indian tourists visiting Arunachal Pradesh require an Inner Line Permit, which takes approximately three weeks to be issued. Foreign tourists intending to visit Arunachal need clearance from the Home Ministry and a Restricted Area Permit, which takes approximately three weeks to be issued. The permit is valid for 10days. A minimum of four and a maximum of fourteen tourists must travel together on a tour arranged through an approved travel agent.

How to reach
• By Air: The nearest airport is Tezpur which is 345 km from Tawang. There are also helicopter services from Tezpur and Guwahati to Itanagar, the capital of Arunachal Pradesh.
• By Rail: The nearest railhead is Bhalukpong, 280 kms from Tawang.
• By Road: There are regular bus and taxi services from Bomdilla to Tawang which is 180 km and takes 10 hours.

Best time to visit: The best season to visit Tawang is between April to October.

Accommodation: Deputy commissioner, Tawang, can be contacted for accommodation at the Government Circuit House and Inspection Bungalow. There are several hotels and tourists lodges such as Hotel Nichu and Hotel Shangrila around Tawang.

For more on India tourism, visit:
www.tawang.nic.in
www.arunachalpradesh.nic.in

Popular Indian Recipes: Scrambled Cottage Cheese (Paneer Akuri)

Serves: 4
Cooking time (approx.): 8 minutes

Ingredients:

• 2 cups crumbled cottage cheese
• 2 medium onion(s) chopped
• 1/2 teaspoon(s) cumin seeds roasted
• 2 flake(s) garlic chopped
• 2 green chilli(es) chopped
• 1 teaspoon(s) hot spice mix (garam masala) powder
• 1/2 teaspoon(s) turmeric powder
• 2 medium tomato(es) chopped
• 2 tablespoons butter/oil
• salt and pepper to taste
• finely chopped coriander leaves to garnish

Method:
1. Heat the butter / oil till it is very hot. Drop in the cumin seeds and let them splutter. Add the chopped green chilli(es) and garlic. Stir fry for a few seconds. Now add the chopped onion(s) and saute on medium heat for 2 minute(s) or till the onions are translucent and crunchy.
2. Add the chopped tomato(es), turmeric powder, salt and pepper. Stir fry on medium / low heat for 3 minutes or till the fat leaves the sides of the pan.
3. Now, add the garam masala powder and the crumbled cottage cheese. Mix well. Cover and cook on low heat for about 3 minutes.
   Garnish with finely chopped coriander leaves.

Note: Tofu could be used in place of Cottage Cheese.

Serve immediately with: buttered toast or sliced fresh white bread.

NRI/PIO Corner

Help for NRI marriage victims

In a bid to combat fraudulent NRI marriages, the government has announced financial aid for such women to seek legal and counselling services through its foreign missions. Under the new scheme, to be initially introduced in the U.K., U.S., Canada, Australia, New Zealand, UAE, Qatar, Kuwait and Bahrain, the government will provide $1,000 to women who have either been deserted or divorced by their overseas Indian spouses within two years of marriage."The assistance will be provided to Indian women who are victims of fraudulent marriages and deserted by their overseas Indian husbands or are facing divorce proceedings in a foreign country," Overseas Indian Affairs Minister Vyalar Ravi said.
"The concerned Indian missions will involve credible Indian women's organisations and NGOs working in these countries and give them financial assistance to the tune of $1,000 per case," the Ministry said in a statement.

Made in India BMWs Soon

The India-assembled high-end BMW cars are set to formally roll out at the company's assembly facility near Chennai. It will initially roll out the BMW 3 series from the new assembly plant. The company has initially invested close to $26 million in the plant, which will be used to assemble completely knocked down (CKD) kits, imported from Europe. It is expected to provide direct employment to about 200 people.
"Trial production has started and cars have been rolled out. To begin with, the company intends to roll out six cars a day,"officials said.

Shahrukh's wax statue unveiled

Bollywood superstar Shah Rukh Khan became the latest Indian to be featured in the Madame Tussauds museum when his life-size wax statue was unveiled in London on April 3.
Shah Rukh is the third Indian actor to figure in the popular tourist attraction - the other two are Amitabh Bachchan and Aishwarya Rai.