INDIA FOLIO

Vol.3 No.3

Embassy of India ~ Copenhagen  

 March 15, 2002

 

INDIA-DENMARK

Danish Imports from India Reach All-Time High

Denmark’s aggregate imports from India reached a value of DKK 1,619 million in the calendar year 2001, registering an increase of DKK 60 million or 3.9% over the performance of India’s exports in the Danish market in the year 2000, which was already a record year. Ready-made garments constitute the single-most important commodity category exported to Denmark by India, accounting for no less than 43% of total Indian exports to Denmark.

 

NEG Micon to source Windmills, components from Indian subsidiary

The Chennai-based NEG Micon (India) Pvt Ltd (NEG MI) will soon be a major hub in the Asia Pacific region for its parent, the Denmark-based NEG Micon. President of NEG Micon, Mr Torben Bjerre-Madsen, said the group would source windmills and components from India for worldwide supplies to cash in on the cost advantage.

The Indian subsidiary of NEG Micon is setting up, besides its existing facilities, a modern state-of-the-art factory here to be ready by year-end. The Rs 250-million facility will roll out higher platform range machines. ‘‘The seamless integration of NEG MI to the group enables us in getting easy transfer of technology and standards. The future plans are to grow in India and to export wind mills and components to the group worldwide, considering the advantage of cost-effective operations and sourcing possibilities from here’’, Mr Madsen said.

Mr Madsen was in India recently to address the ‘Green Power 2002’ international seminar organised by the Confederation of Indian Industry (CII) and to receive the quality certificates awarded by Det Norske Veritas (DNV) to NEG MI.

 

Danish Environment Minister Visits India

The Danish Minister for the Environment, Mr Hans Christian Schmidt participated in the Sustainable Development Summit at New Delhi from 9-12 February 2002.  He was accompanied by his advisers Mrs Mona M.Westergaard and Mr Henrik Hedeman Olsen.

 

POLICY

PM: GDP Growth Must Exceed 8%

 Prime Minister of India, Mr. Atal Bihari Vajpayee has stated that in order to double the country’s per capita income in 10 years, India’s GDP growth rate should increase from the present 5.5% to 8.0% and above. He added that this would create large-scale employment opportunities, which is the country’s first developmental priority, just as a huge demand for a variety of industrial products would be created. India’s economic reforms are geared to achieve this objective, the Prime Minister declared. 

STC next on Government’s Disinvestment List

The Government of India has put the State Trading Corporation (STC) up for disinvestment, calling for Expression of Interest (EoI) from interested parties, last date for which is March 18th 2002. At present, the Government holds a 91.02% stake in the STC and intends to divest 65.02%, having decided to bring down its stake to 26%, out of which 16% would remain with it for the present, while the balance 10% would be used for issuing employee stock options.  STC is an international trading company with an annual turnover of more than Rs. 10 Billion. 

 

Government to convert all EPZs into SEZs

The Indian Government is planning to convert all the country’s Export Processing Zones (EPZs) into Special Economic Zones (SEZs). While the EPZs at Santa Cruz, Kandla, and Cochin have been turned into SEZs already, remaining EPZs located at Noida, Falta, Chennai, and Visakhapatnam will soon be converted too. Units functioning under certain other schemes like Software Technology Parks (STPs) will also be brought under the SEZ scheme, which is the most liberal of all export promotion windows.

Incidentally, exports from the EPZs/SEZs are growing steadily, reaching the amount of Rs. 55.60 billion (US$ 1.15 billion) during the 8-months period April- November 2001. In December 2001, the approved SEZs comprised 665 operational units and employed more than 91,500 workers. While the SEZ at Santa Cruz is meant exclusively for export of electronics and gems & jewellery, all other zones are multi-product zones.      

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FOREIGN INVESTMENTS

Government to consider 100% FDI in Films and Advertising

The Union Cabinet on March 5 decided to allow 100% foreign direct investment in advertising and film industry through the automatic approval route, a long- pending demand of the industry.

As part of its policy to promote entertainment sector, the government liberalised the investment norms for foreign investors in the film industry while lifting the FDI ceiling of 74% for advertising sector.

 

FDI Inflows in November 2001 Zoom to US$ 316 million

Foreign Direct Investment (FDI) inflows into India remained robust in November 2001, total inflows amounting to US$ 316 million, i.e. a 180% rise over the identical month of the year 2000. On a cumulative basis, FDI inflows during the 8-month period April-November 2001 amounted to US$ 2.365 billion, a 36.3% rise over April-November 2000. FDI inflows in these first 8 months of the current fiscal year correspond to 90% of the result achieved for the entire fiscal year 2000-2001.

 

49% FDI in Private Banks Allowed

The Reserve Bank of India has allowed total foreign direct investment in private banks to touch 49%. Even foreign banks with branch operations in India have been permitted by the regulator to acquire equity stakes in local private banks.  Still, Government control has been retained on public sector banks including the country’s largest bank the State Bank of India, where the combined FDI and portfolio investment cap remains unchanged at 20%.

Till now, the FDI ceiling in private sector banks was 20% of the equity capital. Significantly, portfolio investments by foreign institutional investors will be outside the 49% limit for FDI.

 

100% FDI in Leather Sector Soon

Foreign companies wishing to set up units in India to manufacture leather footwear (incl. components) or in tanning industries would be allowed 100% FDI through the automatic route without a licence, the Indian Minister of Commerce & Industry, Mr. Murasoli Maran has declared. Speaking at a seminar in Milan, the Minister explained that this move follows the removal of reservations for small-scale industries in the above segments of the Indian leather industry.

 

72% Surge in India’s Share of FDI in South Asia   during 1981 - 1999

According to a report entitled ‘Human Development in South Asia 2001, India’s share in total foreign direct investment inflows among South Asian nations increased by 72% during the years 1981-1999.  In 1996, India also accounted for 85% of the portfolio equity investment valued at US$ 4.4 Billion. Although the growth in FDI inflows into South Asia was slower than that of East Asia, the report stated that while India received roughly 40% of total FDI to the region in 1980, its share has expanded to three-quarters of the total. Pakistan’s share dropped to just 14% in 1999 from 34% in 1980.

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INFORMATION TECHNOLOGY

IT-Knowledge Workers - India’s Leading Edge

It is widely acknowledged today that one of the most important factors for India’s success on overseas software markets is its state-of-the-art oriented and highly productive IT-manpower.  The number of India’s IT-knowledge professionals has risen from a mere 65,000 in 1991/1992 to an estimated 522,250 in 2001/2002. It is anticipated that by the year 2008, the Indian IT software & service sectors will churn out more than 2.2 Million IT-knowledge workers.

The Indian IT industry today accounts for 2.87% of India’s GDP. A NASSCOM-McKinsey study indicates that by the year 2008 India’s software exports will touch the US$ 50 billion mark.

 

Satyam in Alliance with Hummingbird

Indian IT major Satyam Computer Services and the Canadian software developer Hummingbird have entered into a tie-up for offering software & consulting services jointly to clients around the world. The partnership would deliver consulting and integration services based on Hummingbird’s entire portfolio of enterprise software solutions. Hummingbird creates software solutions that provide Corporates with the ability to access and act on information and resources through a single user interface.

 

NIIT Ties up with SunGard

National Institute of Information Technology (NIIT) has reported that it has tied up with the US-based business consulting firm SunGard Planning Solutions with the purpose of offering disaster recovery and business continuity planning solutions in Asia Pacific and in India.  The tie-up will enable the NIIT to provide these services to large-scale organizations with complex software systems.

 

Hewlett Packard Launches IT Lab in India

HP has announced the launch of ‘HP Labs India’ in Bangalore, which is to develop low-cost innovative solutions for the local market. HP Labs India is the seventh such centre in the world and is part of the company’s world-wide strategy to bring IT to communities, that are “technologically excluded”. HPI will start up with a 30-40 person strong team and will leverage on HP’s technologies to develop unique solutions for the Indian market. Technologies for the inkjet printer, the 64 bit PA RISC architecture, and the LED all originated from these labs.

TCS to Open Centre in Australia

Indian IT major Tata Consultancy Services (TCS) has announced its plans for establishing a global development centre in Melbourne, Australia in order to provide high-end technical support services to clients in the Asia-Pacific region. The centre will employ upto 200 professionals, including software engineers and systems analysts. TCS has 20 development centres in India as well as 15 centres across the USA and Europe. The Australian centre will be the first of its kind in the Asia-Pacific region.

 

Indonesia seeks Tie-ups with India in IT & Pharma Sectors

India and Indonesia will co-operate closely in the fields of IT, pharmaceuticals, and agro products to enhance the current level of bilateral trade. This was indicated by the Indonesian Minister of Trade & Industry, Ms. R.M.S. Soewandi, who called on the Indian Commerce & Industry Minister, Mr. Murosali Maran recently.

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BIOTECHNOLOGY

Shapoorji Biotech, AP Inks Deal with US Biotech Body

Shapoorji Pallonji Biotech Park and the government of Andhra Pradesh have signed a memorandum of understanding (MoU) with the US-based Biotech International Center for promoting partnerships between biotech companies in the USA and India as well as for technology transfers and marketing of the Biotech Park.  The Biotech International Center would provide technology transfers, arrange joint ventures, and attract international biotech companies to the Biotech Park in Hyderabad.

India & France to Join Hands for Groundwater Research

Collaboration between India and France has come a long way especially in groundwater research, and the two Governments have now agreed to set up laboratories, one real and another virtual, to promote research and exchange information through various sources including the Internet.  A research unit for the study of sub-soil systems would be established at the Indian Institute of Science (IIS), Bangalore. As far as management of waterways was concerned, a centre would be set up in New Delhi as a joint venture between the IIT and the French Government.  A cyber university would also be set up at IIS with Indo-French collaboration.  Biotechnology, environmental science, and disaster management were other areas, in which joint studies would be conducted.

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CORPORATE NEWS

BHEL wins giant Australian order

Bharat Heavy Electricals Limited (BHEL) has bagged a Rs. 2.8 billion order from the Australian subsidiary of AES Corporation, USA, a leading, independent power producer (IPP). The order is for the supply of 3 gas turbine generating units for a merchant power project in Stonehaven, Australia. The supply will be made by BHEL’s Andhra Pradesh unit before July 2002.

 

RITES bags Vietnamese order for Locos

RITES Limited has bagged a contract for supply of 5-metre (1,000 mm) gauge Diesel locomotives to Vietnam. The contract provides for maintenance, spares, and training and follows an earlier contract signed with Vietnam Railways in March 2001 for a similar supply of 5 locomotives of the same type and class.

 

Reliance Plans Global Acquisitions

Reliance Industries, which has international rankings in all its major lines of business, is nursing global ambitions of inorganic growth. Announcing the merger of Reliance Petroleum into Reliance Industries, the Managing Director of Reliance Industries, Mr. A. D. Ambani declared: “We have the financial ability, structure, and strength to buy international assets”. He hastened to add, however, that his Group had not identified any target company. The Reliance Group also opened its first representative office in China last month. - The company is the largest Indian private sector exporter, having exported products worth US$ 2 Billion in the financial year 2000/2001. 

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FORTHCOMING EVENTS


10th DELHI INTERNATIONAL LEATHER FAIR 
April 25th-28th 2002

 

n   Leather Goods, Leather Garments, & Accessories, Finished Leather

n   Complete Shoes & Sandals, Uppers, Footwear Components

n   Saddlery & Harness

n   Leather Chemicals & Machinery

 

Organizers: India Trade Promotion Organization (ITPO),
Pragati Bhavan, Pragati Maidan, New Delhi
Tel: 00 91 11 33 71 390; 
Fax: 00 91 11 33 71 874
E-Mail: itpomktg@vsnl.net

Additional details and online booking facility available at https://www.delhileatherfair.com

 

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Published by Economic & Commercial Section, Embassy of India, 15, Vangehusvej, DK-2100 Copenhagen, Tel: 39290854, Fax: 00 45 39270218 E-Mail: india@email.dk    
Website: https://www.indian-embassy.dk/

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