— A Monthly Economic Newsletter

Embassy of India, Copenhagen

Vol. 5. No. 3

March 15, 2004


Inside this issue

UN Report Applauds India’s Economic Reform Model

Venture Funding in India Rising Steeply

India’s Forex Reserves Surge by nearly US$ 900 Million

ADB to Invest US$ 1.7         Billion in Indian Public  Sector Projects

Indian Exports Continue to Follow Double Digit Path

Taiwanese Firms Eyeing India’s Growing PC Market

India Seen Attracting More Dairy Co-Operatives

Denmark Bullish about Indian

Economy & IT Sector


During the past few days, a series of positive articles on the Indian      economy in general and the IT sector in particular have appeared in the Danish press. In a major article titled ‘India - A New Tiger’, the leading Danish daily Berlingske Tidende’ mentions “in India, most arrows are pointing in an upward direction. Economy is improving. Optimism is    rising. Foreign investments are  booming. Highways, ports, and     railways are being constructed at    express speed….. This is a nation placing itself in the fast lane in an   attempt to become an economic super power while competing with China,     Japan, and the USA”. In a separate article titled ‘India’s Era’, Berlingske Tidende writes “in a record time,    India has left behind its status as a third-world nation and entered the global economy in the most spectacular way” and “by 2032, India’s    economy will overtake that of Japan”.

Danish Investments in Indian Shares Successfully Launched


Bankinvest’s newly established       investment funds focusing solely on Indian and Chinese shares have       received an overwhelming response from Danish investors. More than 18,000 Bankinvest customers have consequently invested a total of     Danish Kroner 1,083 Million or approx. US$ 180 Million in these funds, that on a long-term basis are  expected to yield attractive profits.

BankInvest identified five major      Indian companies - RelianceIndustries, Infosys, Ranbaxy, Bajaj Auto, and the State Bank of India - as potential   companies in which investments by Danish individuals could be   encouraged.

These Indian companies were mentioned along with 5 Chinese companies, China Mobile, Skyworth Digital, Yue Yuen,  People’s Food, & AviChina Industry & Technology.

Chr. Hansen Opens New Sales    

 Office in India


Danish food ingredients major      Christian Hansen A/S has announced its major entry into India by setting up a wholly-owned subsidiary in Mumbai. The Danish company is aiming at  becoming the leading   supplier to Indian foodstuffs          producers with initial focus on India’s dairy sector.


Chr. Hansen is already involved in a joint venture with the Cochin-based firm Akay Flavour & Aromatics.


Indian Bio-tech Company opens

office in Copenhagen


Avesthagen, one of India’s leading biotech companies, has opened an   office in     Copenhagen. According to Copenhagen Capacity, Avesthagen’s Danish subsidiary has signed the first co-operation agreement with a Danish bio-tech company on developing a new pharmaceutical.

The  Indian bio-tech company believes that  several other Indian companies will follow in its footsteps, as Copenhagen has a high concentration of bio-tech and              pharmaceutical companies.



April  – December 2003

(Financial Year)









(Calendar Year)
January -
December  2003










(All Figures in DKK Million)

Azim Premji Visits Copenhagen

Chief of Bangalore-based software giant, WIPRO, Mr. Azim Premji, the richest man in India and ranked 17th amongs Fortune magazine’s list of the 25 most powerful business leaders outside the US, was on a visit to Copenhagen last month. The WIPRO chief struck a deal with the     Danish IT Factory, appointing the Danish company as a sales office for WIPRO for the Scandinavian region.


UN Report Applauds India’s Economic

Reform Model


Members of a UN Commission on private sector      development have commended the model of economic reforms followed by India, which has led to multi-    national corporations becoming instruments of         development along with domestic industries and      entrepreneurs. India is thus said to have been very  successful in achieving rapid growth and overcoming poverty during the past 20 years.


The Commission, convened by UN Secretary General Mr. Kofi Annan and co-chaired by the Canadian Prime Minister, Mr. Paul Martin and the Director of Yale University’s Centre for Study of Globalization, stressed the need for developing local entrepreneurship and introducing necessary changes in local laws, thereby making foreign investors comfortable.


Venture Funding in India Rising Steeply


Venture capital (VC) investment in India rose by 31% to US$ 774 Million in the calendar year 2003 and is set to exceed US$ 1 Billion in CY 2004 according to the Chairman of the Indian Venture Capital Association.


Indian software firms and those running call centres and back-office services over high-speed telecoms grabbed the lion’s share of venture capital funding last year. However, VC is now increasingly being invested in late stage funding of India’s banking, pharmaceutical and retail businesses.

ADB to Invest US$ 1.7 Billion in Indian

Public Sector Projects


The Asian Development Bank (ADB) is looking at making investments to the tune of US$ 1.7 Billion in     Indian public sector projects in the current calendar year. The multilateral agency is also considering    making additional investments in the country’s private sector through both debt and equity in infrastructure and housing finance projects.

Forex Reserves Surge by nearly

US$ 900 Million


India’s foreign exchange reserves have increased by US$ 899 Million to reach a total value of US$ 107.506 Billion. Of this, gold reserves remained steady at US$ 4.289 Billion. The increase in reserves is mainly      ascribed to the absorption of dollar supplies by the Central Bank.

Indian Exports Continue to Follow

Double Digit Path


 During the 10-month period April 2003-January 2004 India’s exports exceeded US$ 47.5 Billion, which is a 12.8% increase over the level of US$ 42.1 Billion     recorded during April 2002-January 2003.  India’s imports during April 2003-January 2004 are valued at US$ 61.9 Billion representing a 24.7%       increase over the level of imports registered during the period April 2002-January 2003.

India-China Trade Figures Touch a Record

US$ 7.6 Billion


In the calendar year 2003, India-China bilateral trade figures also reached an all-time high of US$ 7.6      Billion, up 53.6% over the previous calendar year.



Taiwanese Firms Eyeing India’s

Growing PC Market


With the personal computer (PC) market in India projected to touch 10 Million units a year by 2008, leading Taiwanese computer makers are drawing up plans for India.


Companies like ACI, Kobian, and Esys are     consequently surveying the Indian market to  identify business possibilities there.


The latest Taiwanese company to enter the Indian computer market is BenQ - with its array of     mobile phones and notebook computers.

India to Become Second-Largest Telecom Market in 5 Years


According to a study released by Ernst & Young, the Indian telecom market will become the      second-largest market in the world after China in the next five years. Indian telecom    operators would consequently witness almost a three-fold jump in revenues - from US$ 9  Billion to US$ 25 Billion.

New Indian Satellite Launched


The Indian Space Research Organisation (ISRO) recently launched the country’s third “remote  sensory” satellite—the first dedicated purely to geographical mapping. It will joint the eleven other Indian satellites already in orbit.


Ranbaxy Gets Tentative Approval to Market Quinapril Hydrochloride Tablets


Ranbaxy Laboratories Ltd. has received tentative approval from the U.S. Food & Drug Administration (FDA), Office of Generic Drugs, to manufacture and market quinapril hydrochloride tablets - 5, 10, 20, & 40 mg (base). Quinapril hydrochloride is indicated for the treatment of hypertension and for the           management of heart failure as adjunctive therapy when added to conventional therapy.

Ranbaxy        Pharmaceuticals Inc. (‘RPI’) based in Jacksonville, Florida is the wholly-owned subsidiary of Ranbaxy, India’s largest pharmaceutical company engaged in the sale and distribution of generic and branded       prescription products in the U.S. healthcare system.


India Seen Drawing More Dairy Co-ops


Keeping the Danish food ingredients company Chr. Hansen’s recent entry into India in mind, India - the largest producer of milk in the world - may emerge as the most attractive destination for foreign milk co-operatives and MNCs. Dutch co-operative majors like the FCDF and Campina have the necessary capital base and production capability to enter the Indian market. Rabo Bank’s global executive for food- & agri-business, Mr. Adrie Zwanenberg has likewise declared that India was not just a huge market, but also     offered the potential to become the dairy hub of Asia.


ONGC to Study Strategic Oil Reserves


The Government of India has requested the Oil & Natural Gas Corporation of India (ONGC) to       undertake a feasibility study for creating strategic oil reserves as an insurance against supply disruptions.



India, which imports 70% of its crude oil demand, plans to build 45-days strategic oil reserves over the next 3-5 years to protect domestic energy security in the event of war, and to safeguard the Indian     economy from oil price shocks caused by the     volatility in international oil prices.

US Energy Dept. to Assist in Introducing

Hydrogen-Powered Automobiles in India


The United States Department of Energy (USDOE) will introduce three-wheeled, hydrogen-powered experimental vehicles in India through a joint project as a possible      alternative to small vehicles commonly used in densely populated cities. In a public-private partnership also supported by the US Agency for International Development (USAID), US companies specializing in the conversion of engines to hydrogen power will modify three-wheeled    vehicles provided by the Indian auto manufacturer    Mahindra & Mahindra Ltd. The project has the potential to encourage wide-scale conversion to hydrogen power.





Electronics & Information Technology Exposition


(April 26th-27th 2004)


Venue: India Habitat Centre, New Delhi


Special Theme:

‘Technology Vision: India in 2010’



Department of Information Technology

Government of India

Contact Executive:

Dr. R.G. Gupta, Director

Phone: 00 91 11 24 36 30 95

Fax     : 00 91 11 24 36 54 04




6th International Infrastructure Summit & Expo


(October 25th-28th 2004)


Venue: Mumbai


Focus Areas:

Telecom, Power, & Construction




India-Tech Foundation

Contact Executive: Dr. Indra Mohan,

President & Director General

Phone: 00 91 22 26 60 55 50

Fax     : 00 91 22 26 60 39 92

E-Mail:  /





(October 28th-30th 2004)


Venue: World Trade Centre, Mumbai


Covering all aspects of TV, Radio, Video, Film, Music, Satellite, Multimedia, Computer Graphics


Organizers: Saicom Trade Fairs & Exhibitions Pvt. Ltd.

148, Admiralty House, Colaba, Mumbai-400005

Phone: 00 91 22 22 15 13 96

Fax     : 00 91 22 22 15 12 69





3rd International Exhibition & Conference on Chemicals, Petrochemicals, & Pharmaceuticals


(November 3rd - 5th 2004)


Venue: NSE Complex, Goregaon, Mumbai


Organizers: FICCI (Federation of Indian Chambers of Commerce & Industry)

Federation House, Tansen Marg, New Delhi-110001

Phone: 00 91 11 23 73 87 60

Fax     : 00 91 11 23 32 07 14




Published by Embassy of India, Copenhagen, 15, Vangehusvej, 2100 Copenhagen Tel: 39290854 Fax: 39270218 Email:  

India's Exports to Denmark:

1, 429.10

India's Imports from Denmark


Total Trade


Trade Balance

+ 285.51

India's Exports to  Denmark:

 1, 983.37

India's Imports from Denmark


Total Trade


Trade Balance

 + 525.16