Consulate General of IndiaP.O. BOX 737, DUBAI, UNITED ARAB EMIRATES

Tel: +971 4 3971222/ +971 4 3971333, Fax: +971 4 3970453, Tlx.: 46061 CGIND EMEmail: cgidubai@cgidubai.com

CONSULATE HOTLINE NUMBERS: +971 50 9433111 (For women/housemaids in distress and counseling for stress and depression)

+971 50 7347676 (For death formalities on holidays and after office hours)600 522229 (Passport and Visa Services Centre)

Embassy of India, Abu DhabiPlot No. 10, Sector W-59/02, Diplomatic Area, Off the Airport Road

P.O. Box 4090, Abu Dhabi, United Arab EmiratesTel: +971 2 4492700, Fax: +971 2 4444685 / +971 2 4447768

Email: indiauae@emirates.net.ae

Finance Minister Pranab Mukherjee leaving North Block for Parliament House to presentthe the Union Budget 2010-11, in New Delhi on February 26. Ministers of State for

Finance S.S. Palanimanickam and Namo Narain Meena and other officials of theMinistry are also seen.

PUBLICATION OF THE CONSULATE GENERAL OF INDIA IN DUBAI

� Big Indian presence in Gulfood2010 in Dubai

� Chandrayaan finds ice on the moon� World Bank pegs India’s growth at

7.5% in fiscal 2010-11� Highest industrial growth recorded

in 20 years at 16.8%

Budget Day in New Delhi

VOL. 2 ISSUE 3 MARCH 2010

Foundation of International IndianHigh School in Dubai laid

INDIA, UAE to jointly combat terror, scale up trade

|3MARCH 2010

INDIA MATTERSMARCH 2010

2| INDIA MATTERS

FROM THE CONSUL GENERAL’S DESKIt is my privilege to reach out to the readers of India Matters. I have very recently assumed charge as the Consul General of India to Dubai, Sharjah, Ras

Al-Khaimah, Ajman, Fujairah and Umm Al Qawain. In my two-decade long diplomatic career,this is the first time that I have been assigned to a place west of India. The feel, opportunitiesand challenges here are new and therefore, I am delighted to be here. People are at the heart of any relationship, including between countries. History, geography,

culture and economic interest further define bilateral relationship. India-UAE relations areblessed as we connect substantially on all these parameters. Politically our relations are close and cordial. The recent visit of HH Sheikh Mohammed Bin

Rashid Al Maktoum, Prime Minister and Vice President of UAE and Ruler of Dubai, to NewDelhi where he met with Prime Minister, Dr. Manmohan Singh, is yet another testimony to theimportance attached to this relationship. India and UAE have also emerged as each other’sbiggest trade partners. This is a significant marker in our bilateral relations.It will be my priority to further extend and smoothen the delivery of services provided by the

Consulate. Developing cross investments between our two countries to complement the robustbilateral trade would also occupy an important place in the Consulate’s agenda. Friends, the socio-economic transformation of India is a dynamic reality. Our development

trajectory is now bearing fruit. Economic growth is expected to rebound to pre-2008 levels. Ournewfound entrepreneurial energy is also reaping a demographic dividend, as we become home tothe most youthful and productive population of the world. Nation building is an ongoingprocess and in many ways this also touches those outside the homeland. We all are part of a newIndia. I am happy to see that my fellow Indians abroad also reflect a self-assuredness and sense ofachievement. Through the medium of India Matters, we would like to present that changing faceof India.

Happy reading.

SANJAY VERMA: ANINTRODUCTIONSanjay Verma joined the Indian Foreign Service in 1990. As a career diplomat, his overseas

assignments have included economic and commercial work in Hong Kong, press, political andconsular responsibilities in Manila, as Spokesperson of the Embassy, as Counselor Culture andas Secretary of the India-Nepal B.P. Koirala Foundation in Kathmandu and as Head of theEconomic and Commercial Wing in the Indian Embassy in Beijing. Assignments at the headquarters in South Block have included the China Desk and as aide

to the Spokesperson of the Foreign Ministry. Prior to Dubai, his last assignment in New Delhiwas as the first Joint Secretary (Director General) of the newly created Energy Security Divisionin the Ministry of External Affairs. Sanjay Verma has grown up in India’s commercial capital Mumbai. A state rank holder in

higher secondary from Wilson College, he graduated with distinction from MumbaiUniversity’s Jai Hind College with an honours degree in economics. He holds a Masters inInternational Studies from the Jawaharlal Nehru University, New Delhi and also a Fellowship inInternational Studies from the University Grant Commission of India. A university-level hockey player, his current interests are reading, popular Indian culture

and films. He is married to Sangeeta Matta and they have a daughter named Saniya.

India, UAE to jointly combat terror

NASA’s Mini-SAR instrument on boardChandrayaan-II found more than 40 smallcraters ranging in size from 2 to 15 km indiameter with water ice on the Moon.

The manufacturing sector that constitutesaround 80 percent of industrial output,expanded by 18.5 percent in December to set the motion of growth — the highestyear-on-year growth registered in theindex of industrial production since 1995.

SCIENCE & TECHNOLOGY

Chandrayaan-II finds ice on moon

BUSINESS & ECONOMY

India’s Union Budget for2010-11 brings I-T relief,higher excise

8

INDIA-UAE

Big Indian presence in‘Gulfood 2010’

10

BUSINESS & ECONOMY

Highest industrial growthat 16.8 pc in 20 years

16

14

20

TRAVEL: AULI

A range of bilateral issues came up for discussion during the meeting betweenSheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Ministerof UAE and Ruler of Dubai, and Prime Minister Dr. Manmohan Singh.

contents

4

India Mattersis a monthly publication of theConsulate General of India

(CGI) in Dubai. All rightsreserved. No part of this journalmay be produced, stored or

transmitted in any form or by anymeans – electronic, mechanical, photocopying, recording or otherwise, without the

permission of the CGI Dubai.

Editorial correspondence and manuscripts can be addressed to

indiamatters2009@gmail.com

Content and design by IANS(www.ianspublishing.com) on behalf of Consulate General of India in Dubai.

Sanjay Verma

|5MARCH 2010

INDIA MATTERSMARCH 2010

4| INDIA MATTERS

India, UAE to jointly combat terror,scale up trade

COVER STORY

A range of bilateral issues came up for discussion duringthe course of meeting between Sheikh Mohammed BinRashid Al Maktoum, Vice President and Prime Minister ofUAE and Ruler of Dubai, and Prime Minister Dr.Manmohan Singh in New Delhi

India and the United Arab Emirates(UAE) on March 11 held wide-rang-ing talks that focused on expandingcounter-terror cooperation and tak-

ing economic ties to new heights.Vice President and Prime Minister of

the UAE and Ruler of Dubai SheikhMohammed Bin Rashid Al Maktoumarrived in New Delhi on March 11 on avisit lasting a few hours. Sheikh Mohammed was received

warmly at the airport by Minister of Statefor External Affairs Shashi Tharoor. Alsopresent was UAE’s Ambassador to IndiaMohammed Sultan Al Owais, a numberof senior Indian officials and embassyofficials.The UAE leader met Prime Minister

Dr. Manmohan Singh and held wide-ranging talks that focused on scaling up

economic and strategic ties to new heights. Sheikh Mohammed and Dr. Singh

reviewed a number of regional and inter-national economic and political issues andpondered on ways to enhance theprospects for peace and stability so as toachieve even the minimum standard of liv-ing, prosperity, education and healthcarefor people, especially those who live inareas of tension and conflicts. Expanding security and counter-terror

cooperation figured prominently in thediscussions, with both sides agreeing tointelligence sharing and proactive steps tocombat financing of terrorists. They also held talks on the mechanisms

of action to expand the horizons of coop-eration between the UAE and India ineconomic, cultural and other avenues,thus enhancing the neighborly relations

and traditional friendship between the twocountries and their peoples. The discussions aimed at taking bilater-

al ties to a new orbit. The two sides discussed increased col-

laboration in banking, finance, trade andinvestments and infrastructure sector.Bilateral trade is growing and is expectedto exceed $25 billion soon. The meeting was attended by Sheikh

Maktoum Bin Mohammed Bin Rashid AlMaktoum, Deputy Ruler of Dubai,Sheikh Ahmed Bin Saeed Al Maktoum,President of Dubai Civil Aviation andChairman of Emirates Group,Mohammed Ibrahim Al Shaibani,Director of the Office of the Ruler ofDubai, UAE Ambassador to IndiaMohammed Sultan Al Owais, and a num-ber of Indian officials.

Following the meeting with the PrimeMinister, Sheikh Mohammed receivedChairman of the India Today media groupAroon Purie at his residence in the Indiancapital, according to the official website ofthe Ruler of Dubai. During their talks, they discussed the

media’s role in the development of social,economic and cultural programmes, aswell as its importance in building bridgesof communication between peoples. After inviting Sheikh Mohammed to

participate in a televised interview on oneof his networks, Purie spoke about the his-torical ties of friendship between the UAEand India, supported by the high levels ofbilateral trade between the two countries.Sheikh Mohammed and his accompa-

nying delegation departed from India soonafter this meeting. v

Sheikh Mohammed being welcomed after his arrival in New Delhi on March 11. Also seen is Minister of State for External AffairsShashi Tharoor (in black bandhgala).

The creativity that distinguishes thepeople of the UAE in addition to the wis-dom that was reflected by the vision ofHis Highness Sheikh Khalifa Bin Zaid AlNahayan, President of the country, andhis brother His Highness SheikhMohamed Bin Rashid Al Maktoum,Vice-president of the state, the primeminister and the ruler of Dubai throughthe modernisation of our policies andprogrammes.We have made more opportunities so

that a large number of experts, specialistsand investors from across the world willcome to us and be sure that their experi-ence will be utilised and their investmentswill be protected. When we got our inde-pendence on December 2, 1971, therewere only 45 graduates in the UAE, butnow there are thousands of graduatesevery year. The number of females joininguniversities has increased to 92 per cent,which is the highest in the world.No doubt that the strong presence of

India and other Asian countries at theworld stage have made the world strongerand multifarious and enriched its econo-my, markets and stability. We see thatIndia, which is witnessing speedy devel-opment and trying to occupy a leadingposition in the economic field, will beable to guide these changes with the sup-port of the UAE which stands by it in itsgiant projects it is planning to implementin the coming five years. There is a lot wehave to do with each other. I really thankyou and wish you success.India has a special place for us. Every

time we visit India we feel closer to it andour bond deepens. We feel the similaritiesbetween our beliefs and values and thestrength of our trading and economicalrelations. For all the Arab states, the tradewas not only of goods but of culture aswell. Likewise India has been influencedby the Islamic civilisation that foundedmany states and monuments that becameimmortal like the tremendous Taj Mahaland the great Qutub Minar. Manyschools and universities have also beenestablished over the years. Both the cul-tures have intermingled with each otherand coexist peacefully. In all this, Urdu,which was the language of the kings,thinkers, literati and intellectuals, has sur-

vived for more than four centuries.Our relationship with the third millen-

nium country, as it is called, is rooteddeep in history, as many of the Indiantraders chose to establish their businesses,along with their lives, in the UAE. Thepopulation has increased with theenlargement of roads and markets and hashit the two billion mark. The Indian peo-ple vivaciously work side by side with thepeople of UAE in the building of the statein different fields. We will never forgetthe contribution of this great country inbuilding our economy and opening thedoors for our businessmen to invest till itbecame the largest trading partner for theUAE. We are hopeful that these relationswill remain strong and will grow in thefuture by the grace of Allah.No doubt the theme of this conclave

"New Decade: New Expectations" is avery realistic one as the coming decadewill indeed be new and full of challenges.But the second part of the theme does notapply to us, as we in the UAE were alwayslooking forward to these challenges andtowards facing them to ensure the conti-nuity of the development that we haveachieved. We always endeavor with thehelp of our wise leadership to developourselves and the environment we workin. We have created our own example andbuilt a multifarious economy withoutdepending on natural resources. We start-ed from the vision of change and are apart of a well-knit society connected withthe world community. I assure you that"the people of the UAE have alwaysproved that they are capable of turningthe challenges and risks into opportuni-ties. Our direction is forward with steadysteps."The recent financial crisis convinced us

further about the ability of our people. Ithas proved the importance of UAE at theworld stage and also made us proud ofwhat we have achieved during the few lastyears. We are now working on improvingour strategies and plans according tointernational developments and require-ments. We are sure that the centre ofpower has started shifting from the shoresof the Atlantic Ocean to the PacificOcean. The UAE will continue to achievethe development enhanced by the strong

local demand and by the economic inte-gration and the young population struc-ture in the region, which includes about200 million people whose are less than 25years old. The UAE will not be only be a country

exporting crude oil but it is seeking toplay a vital role in the economy of knowl-edge, which decides the possibilities ofdevelopment of countries and their eco-nomic boom. The education here plays avery important role; this explains why weare putting so much emphasis on educa-tion, especially higher education. Ourconcentration is on improving the qualityof it so as to empower our sons anddaughters with the important skills of cre-ativity.The creativity that distinguishes the

people of the UAE in addition to the wis-dom that was reflected by the vision ofHis Highness Sheikh Khalifa Bin Zaid AlNahayan, President of the country, andhis brother His Highness SheikhMohamed Bin Rashid Al Maktoum,Vice-president of the state, the primeminister and the ruler of Dubai throughthe modernisation of our policies andprogrammes.We have made more opportunities so

that a large number of experts, specialistsand investors from across the world willcome to us and be sure that their experi-ence will be utilised and their investmentswill be protected. When we got our inde-pendence on December 2, 1971, therewere only 45 graduates in the UAE, butnow there are thousands of graduatesevery year. The number of females joininguniversities has increased to 92 per cent,which is the highest in the world.No doubt that the strong presence of

India and other Asian countries at theworld stage have made the world strongerand multifarious and enriched its econo-my, markets and stability. We see thatIndia, which is witnessing speedy devel-opment and trying to occupy a leadingposition in the economic field, will beable to guide these changes with the sup-port of the UAE which stands by it in itsgiant projects it is planning to implementin the coming five years. There is a lot wehave to do with each other. I really thankyou and wish you success. v

COVER STORY

|7MARCH 2010

INDIA MATTERSMARCH 2010

6| INDIA MATTERS

India has a special place for us. Everytime we visit India we feel closer to itand our bond deepens. We feel thesimilarities between our beliefs and

values and the strength of our trading andeconomical relations. For all the Arabstates, the trade was not only of goods butof culture as well. Likewise India has beeninfluenced by the Islamic civilisation thatfounded many states and monumentsthat became immortal like the tremen-dous Taj Mahal and the great QutubMinar. Many schools and universitieshave also been established over the years.Both the cultures have intermingled witheach other and coexist peacefully. In all

this, Urdu, which was the language of thekings, thinkers, literati and intellectuals,has survived for more than four centuries.Our relationship with the third millen-

nium country, as it is called, is rooteddeep in history, as many of the Indiantraders chose to establish their businesses,along with their lives, in the UAE. Thepopulation has increased with theenlargement of roads and markets and hashit the two billion mark. The Indian peo-ple vivaciously work side by side with thepeople of UAE in the building of the statein different fields. We will never forget thecontribution of this great country inbuilding our economy and opening thedoors for our businessmen to invest till itbecame the largest trading partner for theUAE. We are hopeful that these relationswill remain strong and will grow in thefuture by the grace of Allah.No doubt the theme of this conclave

"New Decade: New Expectations" is avery realistic one as the coming decadewill indeed be new and full of challenges.But the second part of the theme does notapply to us, as we in the UAE were alwayslooking forward to these challenges andtowards facing them to ensure the conti-nuity of the development that we haveachieved. We always endeavor with thehelp of our wise leadership to developourselves and the environment we workin. We have created our own example andbuilt a multifarious economy withoutdepending on natural resources. We start-ed from the vision of change and are a

part of a well-knit society connected withthe world community. I assure you that"the people of the UAE have alwaysproved that they are capable of turningthe challenges and risks into opportuni-ties. Our direction is forward with steadysteps."The recent financial crisis convinced us

further about the ability of our people. Ithas proved the importance of UAE at theworld stage and also made us proud ofwhat we have achieved during the few lastyears. We are now working on improvingour strategies and plans according tointernational developments and require-ments. We are sure that the centre ofpower has started shifting from the shoresof the Atlantic Ocean to the PacificOcean. The UAE will continue to achievethe development enhanced by the stronglocal demand and by the economic inte-gration and the young population struc-ture in the region, which includes about200 million people whose are less than 25years old. The UAE will not be only be a country

exporting crude oil but it is seeking to playa vital role in the economy of knowledge,which decides the possibilities of develop-ment of countries and their economicboom. The education here plays a veryimportant role; this explains why we areputting so much emphasis on education,especially higher education. Our concen-tration is on improving the quality of it soas to empower our sons and daughterswith the important skills of creativity.

Dubai to clamp down onIndian fugitives

Speech of Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and PrimeMinister of UAE and Ruler of Dubai as read out by Sheikh Ahmed Bin Saeed AlMaktoum, Chairman and Chief Executive of Emirates Airlines, at the India Today

Conclave in New Delhi on March 12

Sheikh Mohammed

UNION BUDGET 2010-11

|9MARCH 2010

INDIA MATTERSMARCH 2010

8| INDIA MATTERS

n IN SHORT n

Passengers were spared a fare hike,freight rates were lowered for some

essential items and 54 new trainsannounced in India’s rail budget for2010-11 that promises a new model topromote private investment in expand-ing the world’s second largest railroadnetwork under a single management.“We have saved Rs. 2,000 crore ($40

million) because of the hard work ofour employees and austerity measures.There will be no increase in passengerfares,” Railway Minister MamataBanerjee told the Lok Sabha onFebruary 24. “Our objective is inclusivegrowth,” she said in her speech.

No fare hikes in MamataBanerjee’s rail budget

Advocating caution while withdraw-ing fiscal stimuli, the Prime

Minister’s Economic Advisory Councilon February 19 pegged India’s growthfor this fiscal at 7.2 percent, accelerat-ing to 8.2 percent and 9 percent,respectively, in the next two years. In itsreview of the Indian economy present-ed to Prime Minister ManmohanSingh, the Council said while high fis-cal deficit was untenable and demand-ed immediate correction, the funds forinfrastructure must not be curtailed.

PM’s Council pegsgrowth at 7.2 percent

Industry organisations hailed FinanceMinister Pranab Mukherjee for his“fine balancing act” in presenting a devel-opment-oriented budget but expresseddisappointment at MAT hike and exciseduties. “The Finance Minister has performed the most balancing act underthe given circumstances by partiallyrolling out the stimulus package and atthe same time paid adequate attentionfor development of the social sector,” saidAssocham President Swati Piramal.

Industry chambers hail Pranab’s budget

Budget brings I-T relief, higher excise

India on February 26 proposed a sizeable tax relief for individuals buthiked excise rates and minimum alter-nate tax in the Rs. 11,08,749-crore

($221.75 billion) Union Budget for 2010-11 that steps up outlays for welfareschemes and assures high, inclusive growth.Individuals stand to gain on account of

a revision in tax slabs. But they will have topay more for cars, cigarettes, petrol, diesel,cement, jewellery and a host of consumergoods, even as they have to shoulder high-er airfare due to service tax on such travel. Presenting the Budget in the Lok Sabha,

the Lower House of Parliament, FinanceMinister Pranab Mukherjee also estimated alower fiscal deficit of 5.5 percent of grossdomestic product (GDP), against the revisedestimates of 6.7 percent for this fiscal.He said 46 percent of the plan allocation

will be set aside for infrastructure alone and37 percent for social welfare programmes,while substantially hiking outlays for ruraland urban development schemes, as alsofor education and health care. “Today, as I stand before you, I can say

with some confidence that we have weath-ered the crisis well,” Mukherjee said in his100-minute speech, recalling the hard daysfaced by the economy in the past two years,while rolling back some purse-looseningmeasures. “That is not to say the challengestoday are any less than they were ninemonths ago, when the UPA was voted backto power under the leadership of SoniaGandhi and Prime Minister ManmohanSingh,” he said. Mukherjee proposed the following tax

slabs for individuals: No tax for an annualincome of up to Rs. 160,000, a rate of 10percent for up to Rs. 500,000, then 20 per-cent for up to Rs. 800,000 and finally 30percent on anything higher. (Rs. 50approximately equals $1). At the peak rate this will entail a saving

of up to Rs. 50,000, and an overall hit ofRs. 26,000 crore ($5.2 billion) for theexchequer. “The proposal to reduce the taxslab will benefit 60 percent of all tax pay-ers,” said Mukherjee.But he also sought to hike the

Minimum Alternate Tax (MAT) to 18 per-cent of book profits from the present 15

percent, though he lowered the surchargefrom 10 percent to 7.5 percent, which willhave a direct impact on the bottomlines oflarge companies. The Finance Minister was interrupted

several times, led by an eventual walkoutby most opposition members, when hesought to restore the 5 percent basic dutyon oil and 7.5 percent each on petrol anddiesel, and imposed a Re. 1 excise on thesetwo fuels. “The customs duty was with-drawn when the prices of the petroleumcrude reached as high as $122 per barrel.When it is much softer, there is no reasonto continue the same concession,” he toldreporters later.On augmenting resources, Mukherjee

said Rs. 25,000 crore ($5 billion) was raisedby way of disinvestment in state-run com-panies during the current fiscal, adding thathe was budgeting for Rs.40,000 crore ($8billion) for the ensuing year. He also promised to implement the

Direct Tax Code from April next year andassured a simplified foreign investmentpolicy soon, even as excise rates were hikedacross the board by 200 basis points.

Finance Minister Pranab Mukherjee with the Union Budget as he arrives in Parliamenton February 26. Ministers of State of Finance, S.S. Palanimanickam and Namo NarainMeena, and other officials of the Ministry are also seen.

This was Mukherjee’s fourth budget ofhis career as finance minister and the second for the United Progressive Alliance(UPA) government in its second straightterm after being voted back to office inMay last year. “The finance minister has done a right

mix of estimating the growth requirementsand at the same time building in it a certainamount of moderation on the price front,”said Manmohan Singh, who has himselfpresented five budgets in the past. During his budget speech, Mukherjee

said three challenges remained for theeconomy — to quickly revert to highgrowth of 9 percent and cross to double-digit expansion; make growth more inclu-sive and develop infrastructure; andstrengthen food security. “We hope to breach the 10 percent

growth mark in not-too-distant future,”the Finance Minister added. India’s defence expenditure has been

raised to Rs.147,344 crore (Rs.1.47 trillion/$32 billion) for 2010-11, up 8.13percent from the revised estimates of theprevious fiscal. “Secure borders and security of life and

property fosters development. I propose toincrease the allocation for defense toRs.147,344 crore. This would includeRs.60,000 crore for capital expenditure,”Mukherjee said. “Needless to say, any additional require-

ment for the security of the nation will beprovided for,” he added. As in the past, the 1.2 million-strong

Indian Army has been granted the lion’sshare, but at Rs. 57,326 crore this is lower

by Rs. 1,322 from the Rs. 58,648 croreoriginally allocated for 2009-10, Rs.740crore of which was returned. The Indian Navy has been allocated Rs.

9,329 crore, Rs. 1,007 crore more than theRs. 8,322 that was allocated for the previ-ous fiscal which was later raised to Rs.9,312 crore. In real terms, the raiseamounts to just Rs. 17 crore. In the case of the Indian Air Force, its

allocation of Rs. 15,210 crore is Rs. 992crore higher than the Rs. 14,318 allocatedfor the previous fiscal that was later raisedto Rs. 14,681. The Finance Minister allocated Rs.1

1,000 crore (Rs. 110 billion/$2.38 billion)for the higher education sector, which isaround seven percent more than the 2009-10 financial year. As per the Union Budget 2010-11, the

central government has given more thanRs. 1,400 crore to higher education in thecoming fiscal compared to the currentfinancial year. Of the total plan outlay, Finance

Minister Pranab Mukherjee has pegged anamount of Rs. 500 crore for subsidisingstudents loans. The Budget has kept aside a sum of Rs.

400 crore for new Indian Institutes ofTechnology that have recently came intooperation. This amount is Rs. 100 croremore than what was pegged during fiscal2009-10. Of the Rs. 11,000 crore, the Budget has

pegged Rs. 5,562 crore for general educa-tion, Rs. 4,266 crore for technical educa-tion, and Rs. 1,078 crore for educationimprovement in north-eastern areas. v

India’s defence expenditure hasbeen raised to $32 billion.

In a nutshell* FDI flows in April-December 2009stands at $20.9 billion * FDI policy to be made more user-friendly* Additional licenses for private playersto open new banks* $413 million for UniqueIdentification Authority of India * $32 billion allocated for defense sector* Petrol and diesel prices go up* Taxes on large cars and SUVsincreased by 2 percent* Relief for millions as personalincome tax slabs raised* Economy stabilized in ’09-10; strongrebound in 2nd quarter* Implementation of direct tax codefrom April 1, 2011 * Fiscal deficit to come down to 5.5percent in 2010-11

INDIA-UAE

|11MARCH 2010

INDIA MATTERSMARCH 2010

10| INDIA MATTERS

Dubai’s annual food and beverageshowcase event Gulfood 2010was inaugurated on February 21by Sheikh Hamdan bin Rashid

Al Maktoum, Deputy Ruler of Dubai andUAE Minister of Finance. Gulfood, recog-nised as the year’s most influential and pow-erful networking and sales event for theMiddle East food and beverage industry, thisyear attracted key buyers and influencersfrom 81 countries around the world. With the Gulf Cooperation Council

(GCC) being the biggest importer of foodin the world with more than 90 percent offood items brought into the region, tens ofthousands of trade visitors attended thefour-day show, with more than 3,500exhibiting companies, showcasing andlaunching new products into the region.The exhibition, which was held at the

Dubai International Convention andExhibition Centre, was the biggest event inthe show’s history, occupying more thanone million square feet of exhibition space.Ingredients Middle East and Restaurant &Café run concurrently with the show, cre-ating a full-service industry showcase of thelatest trends, innovations, products andservices. Gulfood has become the preferredplatform to bring new food products, serv-ices and technology to the Middle East.Gulfood 2010 saw more than 105 Indian

companies participate in the exhibition,either as independent exhibitors or as part of

the Indian national pavilion. These, besidesAgricultural and processed Food ProductsExport Development Authority (APEDA),Tea Board, Spices Board and Indian OilseedsProduce Export Promotion Council(IOPEPC), included rice and spice exporters. India is the third largest producer of food

in the world.• The country has outstandingcompetitive strength in food processing,being blessed with unsurpassed naturaladvantages.• Plentiful sunshine, variable soil texture,

varied agro-climatic zones – tropical, sub-temperate and temperate – and rainfall setsthe stage for the production of a wholerange of agricultural products round theyear in different parts of the country. Thus

every economic plant species in the world,ranging from temperate orchard crops likeapples to tropical mangoes, thrive andflourish in India.While the food section of Indian products

was located in Sheikh Saeed Hall, otherIndian companies were located in the non-food section at Ingredients Middle East 2010. Companies such as Bisleri International,

Haldiram Foods, Parle Products and ITCFood also took part in the exhibition.APEDA and some other Indian stalls wereinaugurated by Consul General of India inDubai Sanjay Verma.The 16th edition of the Gulfood exhibi-

tion will be held at the same venue nextyear from February 20 to 23, 2011. v

Consul General Verma interacting with participants and other delegates at the India Pavilion.

Over 105 Indian companies participated in Gulfood 2010, the annual showcase event ofthe food and beverage industries in Dubai

Big Indian presencein Gulfood 2010

Consul General of India in Dubai Sanjay Verma inaugurating the India Pavilion at Gulfood 2010 in Dubai on February 21.

Private Indian carrier KingfisherAirlines has loaded its new dailynon-stop flights for sale in United

Arab Emirates, for flights between Dubaiand Mumbai and Dubai and Delhi witheffect from April 24. Passengers can now book the flights

through any travel agent or through the

airline’s website. With these two new daily services on

Airbus A320 aircraft, Kingfisher Airlineswill be the only airline to operate to threegateways in India – Mumbai, Delhi andBangalore – from UAE with connectionsto almost all major cities in India throughthe airline’s domestic network.

In addition, the Dubai-Mumbai dailyservice will provide international connec-tivity to Kathmandu, London, Singapore,Hongkong and Bangkok. Similarly, theDubai-Delhi daily services will connect toLondon, Hongkong, Kathmandu andBangkok.The above services will add on to the

current Dubai-Bangalore daily operation,and will take the total Kingfisher Airlinesservices to 21 weekly flights between theUAE and India. v

An international standard CentralBoard of Secondary Education(CBSE) curriculum school willbe open for admission in

January 2011. An initiative of the IndianHigh School (IHS) management, the insti-tution will cost Dh100 million and will beable to enroll at its full capacity of 3,000students from the first year. Sheikh Ahmed Bin Saeed Al Maktoum,

President of Dubai Civil AviationAuthority, Chairman and CEO ofEmirates Group and Chairman of DubaiSilicon Oasis Authority (DSOA), laid thefoundation stone for the school at thehigh-technology park in Dubai SiliconOasis on March 16, 2010. Hosted under the patronage of Sheikh

Ahmed, the ceremony was attended by Dr.Mohammed Al Zarouni, Vice Chairmanand CEO of DSOA, Sanjay Verma, ConsulGeneral of India in Dubai, Mohan Valrani,Honorary Chairman of Indian High SchoolDubai, Dr. Abdulla Al Karam, Chairman ofthe Board of Directors and Director Generalof Knowledge and Human DevelopmentAuthority (KHDA), as well as senior offi-cials from DSO, KHDA and Indian HighSchool, Dubai. The school is scheduled to start from

April 2011, offering Indian curriculum asprescribed by the Central Board ofSecondary Education (CBSE). The aca-demic focus will extend to IT, research andsubjects such as nanotechnology. The newcampus will be fitted out with state-of-the-art facilities such as an amphitheatre, cafe-

teria, activity room, gymnasium, swim-ming pool, and a temperature-controlledindoor sports complex. Speaking at the foundation stone laying

ceremony, Dr. Zarouni said: “The openingof the International Indian High School inDubai Silicon Oasis validates our commit-ment to expanding our portfolio andenhancing growth and productivity througheducation in the UAE. We are confident theInternational Indian High School will pre-pare students for higher education andequip them with the necessary technologybackground and knowledge.” The governing principle and driving

force behind the institution will be ‘Energy,

Earthy, Elemental, and Eternal’ symbolis-ing the four elements of sun, wind, waterand the silicon chip. The ‘rising sun’ willserve as the icon of the school, reflectingthe life-giving forces and suggesting thedissemination of education from the schoolto the student. “The DSOA initiative acknowledges our

dedication to quality education, as theIndian High School prepares to add anoth-er, perhaps the most significant, chapter inits history as an academic institution,”Mohan Valrani said, while speaking on theoccasion. “This school will be embryonicwith vaulting ambition, abiding by itsvision – living by its motto – ‘Shaping theMinds of the Future!’” The new school will feature a well-

equipped ICT department, virtual class-rooms, smart boards and a wireless campus.Its central library will house manuals andmaterials for the continual improvement andupdating of pedagogical practices. v

INDIA-UAE

|13MARCH 2010

INDIA MATTERSMARCH 2010

12| INDIA MATTERS

The Knowledge and HumanDevelopment Authority (KHDA) isresponsible for the future growth, direc-tion and quality of education and learn-ing in Dubai. It aims to support the peo-ple of Dubai in achieving their potentialfrom birth and through life’s journey asit works towards achieving the goals setout in the Dubai Strategic Plan 2015.

HH Sheikh Ahmed Bin Saeed AlMakhtoum unveiling the commemorativeplaque in the presence of honorary chairmanof the Indian High School, Mohan Valrani,and Dr. Zarouni. (Below) Mohan Valraniaddresses the audience. Seated (l-f ) AshokKumar, Dr Zarouni, Dr.Karam, ConsulGeneral Sanjay Verma.

About the Knowledge andHuman Development Authority

Jet Airways, India’s premier internation-al airline, has started night departuresfrom Dubai to Hyderabad and

Chennai and from Sharjah to Kochi. Thechange in operations from day to nightdepartures is based on popular demandand passenger preferences. The new timings will enable the airline’s

passengers to optimise their travel sched-ule, the airline said in a statement. Passengers can fly onwards to 61 desti-

nations across the network in India andbeyond. Shakir Kantawala, General Manager of

Jet Airways for Dubai and the NorthernEmirates, said: “The recently implementedchange to convenient night departurescomes well before the summer holidays.This will enable our guests to plan andbook their seats in advance at competitivefares. Our guests can take a stopover inIndia and then travel to various destina-tions in the Far East, Europe, USA andCanada, for an extended holiday.” v

New Jet Airways night schedule

Flight 9W 550: Departure fromHyderabad at 1840 hrs, arrival inDubai at 2110 hrs. Flight 9W 549: Departure fromDubai at 2210 hrs, arrival inHyderabad at 0310 hrs, the followingmorning. Flight 9W 546: Departure fromChennai at 1925 hrs, arrival in Dubaiat 2210 hrs. Flight 9W 545: Departure fromDubai at 2310 hrs, arrival in Chennaiat 0515 hrs, the following morning.Flight 9W 562:Departure from Kochi at 2020 hrs,arrival in Sharjah at 2300 hrs.

The Ministry of Overseas Indian

Affairs, Government of India, is con-

ducting a Common Entrance Test for

the Scholarship Programme for Diaspora

Children (SPDC-2010). The following are

the highlights of the SPDC - 2010-11:

w 100 scholarships are being offered for

undergraduate courses in several disci-

plines including engineering /architec-

ture/technology, humanities/ liberal arts,

commerce, management (BBA/BBM),

journalism, hotel management, agricul-

ture/animal Husbandry, science, law etc.

w The programme is open only to

PIOs/NRIs from the specified 40 coun-

ties having a large concentration of

Indian diaspora.

w 50 percent of the scholarship slots would

be reserved of PIOs. However, in the

event of the non-availability of suitable

PIO candidates, the unfilled slots could

be assigned to NRI candidates.

w NRI candidates would be eligible for the

grant of the scholarship only if their total

family income per month does not

exceed an amount equivalent to $2,250

(two thousand two hundred and fifty US

dollars only).

w Children of NRIs should have pursued at

least three years of education inclusive

of 11th and 12th or equivalent (not

beyond), in a foreign country during the

last six years, and should have passed

the qualifying examination board.

w PIO/NRI students already studying in

India on a self-financing basis or under

any other arrangement will not be eligi-

ble under this scheme, which is open

only for fresh admissions in the first

semester/year of undergraduate cours-

es.

w Candidates will be selected on the basis

of their performance in the qualifying

examination (equivalent to plus 2 stage

in India) which decides the eligibility to

apply for the scholarship scheme. The

candidates would also have to fulfill all

the criteria prescribed for the purpose.

w The last date of receipt of duly filled-in

application forms in the prescribed for-

mat by Ed.CIL is 10th June 2010.

Further details of the Programme and

application form can be accessed at

www.cgidubai.com, www.edcil.co.in and

www.educationindia4u.nic.in

The daily flightschedule for the newnight departures is:

Test for diasporascholarships

Trade in the Indian rupee/dollarfutures surged to a new daily highon the Dubai Gold and

Commodities Exchange on March 26 with1,074 contracts valued at $47.37 millionbeing recorded on the exchange, the high-est value and volume achieved since thecontract was launched in 2007. The new high surpassed the earlier

record of 957 contracts achieved on May19, 2009, valued at $40.04 million.DGCX offers the only Indian rupeefutures contract outside of India and thecontract is cash settled against the US dol-lar reference rate published by the ReserveBank of India in Mumbai. The DGCXcontract is available for trading from 8.30a.m. to 11.30 p.m. (Dubai time), extend-ing eight hours beyond the closing time ofthe domestic futures markets.“The increased activity in DGCX

Indian rupee futures supports the trend ofstronger international interest in the cur-rency,” said Eric Hasham, Chief ExecutiveOfficer, DGCX. “Improved liquidity, tighter on-screen

prices and the large contract size haveencouraged participants, especially‘hedgers’, to trade the DGCX Indian Rupeecontract. We have also received feedbackfrom clients who want to move business tothe exchange from the OTC market inorder to better manage their counter-partyrisk by both trading and clearing in a wellregulated environment,” he said. Total volume on DGCX gathered

momentum in February, increasing 146percent year-on-year to reach 179,278contracts, valued at $10.7 billion. Tradingin the DGCX Indian rupee/dollar futurescontract was also higher in February, com-pared to last year, at 7,796 contracts. v

DGCX Indian Rupee/Dollarfutures achieve new record

Kingfisher Airlines loads new Dubai-Mumbai and Dubai-Delhi routes

Foundation stone for International IndianHigh School in Dubai laid

India needs to set up a national centrefor incubating research done in variouslabs on Nano science to enable tech-

nology serve society, scientists have said.Unlike incubation centres for informationtechnology, centres for nano science andtechnology require special infrastructure.The ‘national centre’ must help set upsuch a facility as many researchers arewaiting to scale up their lab products,experts said at an international conferenceon Nano Science and Technology at IIT-Mumbai recently. “Creating a special centre is essential

and we suggested that the Council ofScientific and Industrial Research (CSIR)could provide an ideal platform for nano

incubators. We also proposed that one ofthe nano centres of the National NanoMission could be taken up for incuba-tion,” they added.Nano technology is knowledge-inten-

sive and helps develop technologies whichcan influence a wide range of productsand processes with far-reaching implica-tions for the national economy and devel-opment, said Prof. Dhirendra Bahadur,convenor of the meeting.The Chairman of the National Nano

Mission, Prof. C.N.R. Rao, said that Indiawould soon set up a NationalNanotechnology Regulatory Board to reg-ulate industrial nanotech products that areused in day-to-day life. v

SCIENCE & TECHNOLOGY

|15MARCH 2010

INDIA MATTERSMARCH 2010

14| INDIA MATTERS

Using data from a NASA radarthat flew aboard India’sChandrayaan-1 spacecraft,scientists have detected ice

deposits estimated at nearly 600 millionmetric tons near the moon’s north pole.NASA’s Mini-SAR instrument, a light-

weight, synthetic aperture radar, foundmore than 40 small craters ranging in sizefrom 2 to 15 km in diameter with waterice, the space agency announced onMarch 1. “The emerging picture from the multi-

ple measurements and resulting data of theinstruments on lunar missions indicatesthat water creation, migration, depositionand retention are occurring on the moon,”said Paul Spudis, principal investigator ofthe Mini-SAR experiment at the Lunarand Planetary Institute in Houston. “The new discoveries show the moon is

an even more interesting scientific, explo-ration and operational destination thanpeople had previously thought.”“After analysing the data, our science

team determined a strong indication ofwater ice, a finding which will give futuremissions a new target to further exploreand exploit,” said Jason Crusan, pro-gramme executive for the Mini-RFProgramme for NASA’s Space OperationsMission Directorate in Washington, D.C. The agency’s Moon Mineralogy Mapper

discovered water molecules in the Moon’s

polar regions, while water vapour wasdetected by NASA’s Lunar CraterObservation and Sensing Satellite.Mini-SAR, a lightweight imaging radar,

and Moon Mineralogy Mapper were two

of 11 instruments carried by the IndianSpace Research Organisation’s (ISRO)Chandrayaan-1. The main science objectof the Mini-SAR experiment is to map andcharacterise any deposits that exist. v

CHANDRAYAANFINDS ICE ON MOON

Scientists to scale up nano research

Indian nuclear scientists will takethree steps to improve their experi-ence and expertise before they starton the design of a 1,000-MW fast

breeder reactor (FBR). The reactor willnot only generate electricity, but also pro-duce more fuel than it consumes. Buildinga new 120-MW test reactor powered bymetallic fuel, setting up a 500-MW fastbreeder reactor with the flexibility to con-vert to metallic fuel from mixed oxide fuel,and changing the existing fast breeder testreactor's (FBTR) core into a metallic core,are the steps laid down by the IndiraGandhi Centre for Atomic Research(IGCAR) toward designing a 1,000 MWfast breeder reactor by 2018. A fast breed-er reactor breeds more material for anuclear fission reaction than it consumes.It is key to India’s three-stage nuclearpower programme. The key to designing

the 1,000 MW reactor is to get thingsrelating to the metallic fuel – a mix of 20percent plutonium and 80 percent urani-um – right as it not only has a high breed-ing ratio compared to the mixed plutoni-um-uranium oxide (MOX) fuel but alsofaces technical challenges that needsdetailed study. The MOX fuel will powerIndia's first seven fast reactors, includingthe upcoming 500-MW prototype fastbreeder reactor (PFBR). “The first step is to test the metallic fuelpins and sub-assemblies in the FBTRlocated at Kalpakkam near Chennai. Thiswill be followed by replacing FBTR’s entirecarbide fuel with metallic fuel,” Baldev Raj,director of IGCAR, said. The second stepis to build the 150-MW reactor poweredby metallic fuel, and finally the operationof the dual fuel (MOX and metallic) 500MW fast reactor. v

$11.94 mn fund to help budding scientists

Young researchers struggling tomuster funds to establish their start-ups have a reason to smile since the

government has recently set up a corpus of$11.94 million to help scientists converttheir prototypes to tangible commercialproducts. “This (venture capital) fund willnow help researchers become entrepre-neurs,” Minister of State for Science andTechnology, Prithviraj Chavan, said.The fund will be provided to start-ups

registered with nearly 40 science and busi-ness ‘incubators’ that help researchers setup new companies in the country, duringthe 2010-11 financial year. The fund will be managed by the

Science and Technology Park in Pune,where the Indian Steps and BusinessIncubator Association (ISBA) secretariat islocated. Rajendra Jagdale, Secretary-General of ISBA, said the fund will helpmany new enterprises to come up as it

would help researchers shift their innova-tion from the science lab to the market. “The whole intention is to convert

knowledge to enterprises,” Chavan said atthe fourth ISBA conference in New Delhion February 8. “This initiative will go along way in achieving sustainable growththrough science and technology tools,”said R.M.P. Jawahar, President of ISBA.India is spending around one percent of itsGDP on R&D. v

India draws roadmap for 1,000 MW reactor

Mini-SAR image strip near the lunarnorth pole

The Indian Council of MedicalResearch (ICMR) will by April set

up the much-awaited National ApexCommittee, a body which will regulateresearch on stem cell therapy.Called the National Apex Committee

for Stem Cell Research and Therapy(NAC-SCRT), it would be a mechanismwhich will help monitor and review stemcell research, technologies, techniquesand clinical practices.“All the required procedures and pro-

tocol are in place and it will be set up anytime," Assistant Director-general ofICMR, Dr. Geeta Jotwani, said. Onceformed, all institutions conducting stemcell research would have to register underit, besides setting up their ownInstitutional Committees on Stem CellResearch and Therapy (IC-SCRT), shesaid. NAC-SCRT will maintain a registry

for all clinical trials that are conducted inthe country. It will also keep a record ofstem cell therapy clinics and patients andvolunteers participating in stem cellresearch. Currently, all trials are supposedto be self regulated under IC-SCRT.

ICMR to regulatestem cell research

BUSINESS & ECONOMY

|17MARCH 2010

INDIA MATTERSMARCH 2010

16|INDIA MATTERS

The manufacturing sector, whichconstitutes around 80 percentof industrial output, expandedby 18.5 percent in December to

set the motion of growth. As a pointer torising domestic consumption strengthen-ing future growth, consumer durablesindustries such as automobiles surged 46percent and capital goods output rose by38.8 percent. The latest figures are muchhigher than a revised annual rise of 11.8percent in November as well as forecasts ofaround 12 percent. It is the highest year-on-year growth registered in the index ofindustrial production (IIP) since April1995, when the new series, which uses1993-94 as the base year, started. Even in the old series of the IIP, with the

base year as 1980-81, March 1990 was theonly month that had ever registered a high-er growth rate at 23.8 percent. Besidesmanufacturing, mining output grew by 9.5percent in December against 2.2 percent ayear ago, while electricity generation rose

by 5.4 percent against 1.6 percent in theprevious corresponding period.Furthermore, the growth rates in

December stood at 21.7 percent for inter-mediate goods, 7.5 percent for basic goods,46 percent for consumer durables and 3.7percent for consumer non-durables.Another positive aspect of the turnaroundis the performance of capital goods. Capitalgoods performance grew by 38.8 percent inDecember 2009 as against 6.6 percent forthe same month of 2008 and 11.1 percentin April-December 2009 as against 8.2 per-cent during April-December 2008.“Quite encouraging,” is how Finance

Minister Pranab Mukherjee described thelatest figures. “I do hope that third quarter GDP fig-

ures will also be encouraging... it will getreflected in the overall GDP.” Planning Commission Deputy

Chairman Montek Singh Ahluwalia, alsosaid that the numbers were beyond theexpected 13 percent. v

WB pegs India growth at7.5% for fiscal 2010-11

The World Bank in its estimate forthe year 2010-11 has said thatthe Indian economy is likely togrow at 7.5 percent next fiscal

and that the growth prospects remainstrong. The World Bank’s annual ‘GlobalEconomic Prospects 2010’ said India “isexpected to grow at 7.5 percent and 8 per-cent in 2010-11 and 2011-12, respectively,well above the 6.4 percent average postedduring 1995-2005”. Explaining the reasons for the growth of

the Indian economy, the World bank reportfurther says, “India’s growth will benefitfrom the firming up of external demand,particularly resumption of growth in high-income countries.” FDI inflows are expected to increase in

2010, the report said, adding that thiswould be on the back of the recovery ofoverall investments in developing countriesthis year. Meanwhile, economic think tank Centre

for Monitoring Indian Economy (CMIE)has predicted that India’s economic growth

is likely to return to pre-crisis levels in thenext fiscal, driven by strong industrial andagriculture growth.CMIE expects Asia’s third largest econo-

my’s GDP growth to accelerate to 9.2 per-cent in 2010/11. “In fiscal 2010/11, real GDP growth will

be propelled by a strong performance by theindustrial sector and a robust recovery inagricultural and elite sector. Services sectortoo is expected to do well,” CMIE said inthe report. “A revival in consumer confidence and

investment activities will supplementgrowth in the commodities segment,” itadded. India’s GDP growth slowed to 6.7 per-

cent in 2008-09 from 9 percent or more inthe previous three years as the effect of glob-al financial turmoil hurt demand, prompt-ing the authorities to unveil a spate of stim-ulus measures to boost the economy. As a result the country’s industrial output

grew at its fastest pace in two years inNovember at 11.7 percent. v

Imports moved back to the positive ter-rain for the first time after the finan-cial crisis, registering a 27-percent

growth in December 2009, indicatingthat the domestic economy was well on itsway to recovery. “Trade has now fallen inline with all other indicators of the econo-my that had already started improving,”said CRISIL chief economist D.K. Joshi,adding that trade was the last indicator toimprove as it was linked to the globaleconomy. The strong 22.4 percent rise innon-oil imports, after a steady fall formore than a year, shows an increase inmanufacturing and investment activity inthe country, as industrial inputs and capi-tal goods constituted the bulk of theimports. Capital goods accounted for nearly 16

percent of imports in the year 2008-09.The near double-digit growth in exportsin December 2009 from a year ago, albeitfrom a low base, suggests a demand pick-up in the Western markets, includingboth the EU and the U.S. “This (rise in non-oil imports) coupled

with the recovery in exports bodes well forthe growth momentum,” said Citi econo-

mists Rohini Malkani and Anushka Shahin a recent research note. “We believe that exports would keep

moving uphill and we can touch $170 bil-lion by the end of the fiscal,” said AjaySahai, Director-General, Federation ofIndian Export Organisations (FIEO).There is an increase in imports of bothcapital goods for manufacturing in gener-al and power equipment with the countryimplementing a large number of powerprojects. “This is a good sign as it indicates that

manufacturing will continue to post adouble digit growth that will ultimatelyresult in a higher GDP,” Sahai added. Oil imports in December 2009 stood

at $6.5 billion, 42.8 percent higher than$4.58 billion in the same month last year.

n IN SHORT n

Foreign direct investment (FDI)grew to $1.54 billion in December2009, an increase of 13.2 percent overthe December 2008 level of $1.36 bil-lion, according to the Reserve Bank ofIndia (RBI). This makes it the thirdconsecutive month of year-on-yearincreases in FDI inflows. The Februarybulletin of the RBI showed that FDIequity inflows for the period betweenApril and December of the current fis-cal, stood at $21.5 billion. The servicessector followed by the telecommunica-tions, real estate and housing sector areseen as preferred destinations for for-eign investors.

FDI inflows touch $1.54bn in December 2009

Business confidence in India contin-ued to improve and touched a two-

year high in January, according to thelatest National Council of AppliedEconomic Research (NCAER)-MasterCard Worldwide Index ofBusiness Confidence. The BusinessConfidence Index (BCI) rating of153.8 points for January 2010, com-pared to the October 2009 rating of143.7 points and July 2009 rating of118.6 points, is also the highest ratingsince January 2008 (154 points).

Business confidence attwo-year high

Investments in the country’s infra-structure sector have doubled from 4percent to 8 percent of the GrossDomestic Product (GDP) over the pastfive years, according to the PlanningCommission. B.K. Chaturvedi,Member, Planning Commission, andin-charge of the infrastructure sector,said that the target of $500 billion wasachievable either by the end of the 11thFive-Year Plan (2007-12) or the firstyear of the 12th Plan.

Investment doubled ininfrastructure sector

Imports post 27% growth in Dec 2009

Highest industrial growth recordedin 20 years at 16.8%

BUSINESS & ECONOMY

|19MARCH 2010

INDIA MATTERSMARCH 2010

18|INDIA MATTERS

Create new avenues ofgrowth: Shashi Tharoor

Asia should take into account thechanging world economic scenario and leverage its compar-ative advantage to create new

avenues of growth and development,Minister of State for External Affairs ShashiTharoor said on February 13.“Our endeavour should be to leverage

our comparative advantage to buildalliances, develop partnerships, create newavenues of growth and development andstrengthen the existing ones,” said Tharoorwhile inaugurating the Asian DevelopmentDialogue (ADD) on ‘Asian Trade: The WayForward’. “We need to enhance our mutual

investments, joint ventures and project participation,” he said. The conferencedebated on the present status of Asian tradeand the road ahead for Asian countries in thetrade and commerce scenario. Tharoor said that Thiruvananthapuram,

straddling the key sea lanes of communica-tions, has the potential to profit, benefit andcontribute to the world of commerce andinternational trade and investment. “The approach is to work on free trade

agreements for mutual benefit as well aswork on the architecture of concludingComprehensive Economic Co-operation

Agreements (CECA) with countries withwhom the economic engagement is substan-tive,” added Tharoor who represents theThiruvananthapuram constituency in theLok Sabha. The ADD has been established to

promote good governance and effectiveservice delivery through advancement ofprofessionalism and better practices inpublic administration and public servicemanagement. Former Kerala Planning Board member

C.P. John said that ADD provides aforum for active exchange of innovation,knowledge and practice in citizen-centered service delivery and leadershipdevelopment. “ADD plans to organisesimilar platforms for debating issues related to democratic governance, socialdevelopment, commerce and relatedissues,” John added. Former Centre for Development

Studies director K.P. Kannan said that thecentre of gravity of economy and trade isgradually shifting from the North Atlanticand European regions to Asia. “This shift won’t be easy but India has

a possibility to join the club of Japan andChina and the journey has only justbegun,” Kannan said. v

The economic survey for the currentfiscal has favored liberalising

foreign direct investment (FDI) policiesin services like health insurance, ruralbanking and higher education.“In case of services sector, a more con-

ducive environment can be created by liberalising FDI in services like healthinsurance, rural banking and higher education as FDI inflows and trade inservices have a close relationship,” thesurvey, released on February 25, said.India’s services exports reached Rs. 5.1

trillion ($102 billion) in 2008-09, agrowth of 12.5 percent over the previousyear. But the impact of global slowdownhas resulted in contraction of India’s serv-ices exports by 21.4 percent duringApril-September in the current fiscal,while it grew 27.6 percent in the sameperiod a year earlier. The survey also favours rationalising

taxes in services like shipping and tele-com and calls for facilitating measureslike single returns for service and excisetax and administration of the two by thesame department. “Along with systematic marketing of

services, collection and dissemination ofmarket information by setting up a portal for services and streamlining theservices data system could help the serv-ices sector in making further strides,” thesurvey said. It suggested encouragingventure capital in services and continu-ing with the present initiative on domes-tic regulations.

Liberalise FDIpolicy in healthinsurance: Survey

‘India needs 1,000 aircraft by 2028’

Airbus and Boeing, the two lead-ing aircraft makers in the world,forecast robust growth ofIndian civil aviation, projecting

the aircraft demand of over 1,000 by 2028.Raising India’s plane demand forecast for

next two decades following signs of recovery,Airbus Industrie projected that the countrywill require 1,032 aircraft valued at $138billion while its competitor Boeing put thefigure at 1,000 valued at $100 billion.Airbus said the requirement would be toserve strong demand for passenger air traveland freight, and to replace ageing fleets. Out of these, 993 are new passenger air-

craft valued at $131 billion and 39 are newfreighters valued at $9 billion. Miranda Mills, Airbus Vice President

(Sales), India, told reporters at IndiaAviation 2010 in Hyderabad on March 4that the company had revised upward theforecast for India in view of the economicrecovery and revival of air traffic. The 2008forecast had put the total number of air-craft under 1,000. The rising demand will take India to the

fifth position in the top 10 countries in air-craft demand for the next two decades. Airbus predicted that India will be the

fastest growing country for air travel for thenext 10 years with domestic traffic increas-ing by an average 12.2 percent per year. Traffic growth will also be amongst the

world’s highest, averaging 7.3 percent over

the next 20 years compared to the worldaverage of 4.7 percent. By 2028, Indian passenger fleet will

increase four-fold to 1,163 aircraft, it said. The freighter market will grow nearly 20

fold by 2028, mushrooming to 210 air-craft, comprising 39 new freighters and171 conversions from passenger aircraft,Airbus added. “The Indian economy is showing signs

of rebounding and this will translate tonew aircraft orders by 2012. Long term,the potential for growth in India’s aviationsector remains exceptional,” Mills said. Airbus said that by 2028, 14 of the top

20 airports in the world will be in the Asia-Pacific region and they will include Delhi

and Mumbai. Asia will lead in world trafficby 2028, she added. With 10 percentgrowth, domestic India will be the secondbiggest growth market after domesticTurkey. Deregulation, economic growth,population growth and inter-regional tradewill be the drivers of this growth, it added. Boeing also released the forecast for

India saying the country would need 1,000commercial jets worth $100 billion in thenext 20 years. “According to our market outlook for

2009, India’s domestic passenger traffic lastyear reached 43.8 million, the highest inIndian history. This forecasts a strong futurefor India’s growing aviation market,” DineshKeskar, president of Boeing India, said. v

French aircraft maker Airbus Industrie delivered one Airbus A320 aircraft each to AirIndia and IndiGo airlines during the India Aviation 2010.

India’s merchandise exports grew 11.5percent to $14.34 billion (Rs.65,920crore) for the third consecutive month

in January, according to the latest datareleased by the Ministry of Commerce.The rise for the third straight month in

January comes after 13 successive months ofdecline since October 2008 on account ofthe global economic meltdown. India’s merchandise exports rose 9 per-

cent year-on-year to $14.6 billion inDecember while the value of shipments was up 18.2 percent inthe month before at $13.2 billion.

“Cumulative value of exports for the peri-od April 2009 to January 2010 was $131.9billion (Rs.6,292.24 billion) as against$160.4 billion (Rs.7,157.64 billion) regis-tering a negative growth of 17.8 percent indollar terms,” said the Ministry. Imports during January also rose to touch

$24.7 billion, an increase of 35.5 percent,compared to the like month of 2009. However, cumulative value of imports for

the nine months of current fiscal, dipped19.7 percent to $218.5 billion. The value of oil imports duringJanuary were 56 percent higher at $7.05 billion.

India’s exports rise 11.5% in January

takes approximately 22 minutes to cover adistance of 4.15 km. The artificial lake near Clifftop Club

Hotel is another attraction here. It is theworld’s highest man-made lake. It wasdeveloped to create artificial snow on thenew ski slopes during events when there islow snowfall. The water from this lake isused to create artificial snow, so it helpsextend the ski season.

OTHER PLACES OF INTEREST

The Valley of Flowers: An UNESCOWorld Heritage Site, Valley of Flowers isthe treasure of flowers. Colourful wildflowers spreading beyond the horizons,the spectacular and peaceful surround-ings, streams with clear water — it isfairy land.It is around 27 km by road from

Joshimath and another 17 km you have tocross by trekking. It was declared a

national park in 1982 and covers an areaof 87.50 sq km with 500 species of wildflowers. The valley is home to varieties offauna as well. Trekking towards the Valleyof Flowers is an amazing experience whereyou can enjoy picturesque valley and thebreathtaking view of the snow-cappedpeaks. Joshimath: Nearly 16 km from Auli is thefamous hill station Joshimath. Nestling atan altitude of 6,000 feet, it was here thatShankracharya founded one of the fourpiths in the 8th century AD. Therefore, it’sconsidered as a centre of pilgrimage. Ithouses the Narasimha Temple, the abodeof Lord Narasimha. The temple is about1,200 years old and is dedicated to LordVishnu. Hindus believe that LordBadrinath (Lord Vishnu) resides inJoshimath during winters. Badrinath: Cradled in the Garhwal hillsat the height of 3,133 m above sea level,Badrinath Dham is one of the four pil-

grimage sites (Char Dham) of India, theother three being Kedarnath, Gangotriand Yamunotri. It was established by AdiShankara in the 9th century. Legend has itthat Shankara discovered a black stoneimage of Lord Badrinarayan, which wascraved out of Saligram stone. Sri Badrinath temple is open only six

months in a year as the climatic conditionin the region is extreme during winters.The present temple was built by the kingsof Garhwal. It is approximately 50 ft (15m) tall and has a small cupola on top. Itsfacade is built of stone and are brightlypainted.Badrinath is also famous for the hot

water springs of Taptkund on the banks ofAlaknanda river. It would be interesting toknow that the temperature of the water inthe Kund is 55 degrees Celsius which isfar warmer than the normal temperaturein the region which ranges from 9-10degrees Celsius to sub-zero levels. v

E merging as one of the mostexotic hill resorts in the coun-try, Auli is a ski village — ahome to adventure and fun.

The white blanket of snow, its serenebeauty, and the panoramic view of theHimalayan peaks of Nanda Devi, Kamet,Mana, Parvat and Dunagiri... it is ethere-al. And, the dense forests of deodar andoak trees add to the beauty of this heaven-ly resort. Auli was never as popular as it istoday until Uttarakhand was formed afterbeing separated from Uttar Pradesh. Often called the Switzerland of the

East, Auli, nestles at an altitude of 3,049m in the Garhwal Himalayan mountainranges in Chamoli district, inUttarakhand. It is also known as ‘Bugyal’meaning ‘the meadow’ in the regional lan-guage. A perfect weather and its slopes, ata height of 9 000 feet above sea level, isjust a right combination and makes it anexcellent skiing spot.

Today, Auli is regarded as one of themost prominent skiing destinations inthe country. Experts from countries likeFrance and Australia even remark thatthe slopes of Auli (second largest in Asia)is no less than any other world’s bestslopes. Auli plays host to a number of interna-

tional as well as national level skiingchampionships, festivals and tournaments.Apart from skiing, trekking is anotherexciting thing to do in Auli. Other excit-ing games common here are snow board-ing and sledging. The Garhwal Mandal Vikas Nigam

Limited (GMVNL) conducts certificateand non-certificate courses ranging fromfour days to 14 days in Auli. GMVNL isa government agency which takes care ofthe resort.Auli also boasts the highest and the

longest ropeway in Asia – a 3.9=km rope-way which connects it to Joshimath. It

TRAVEL

|21MARCH 2010

INDIA MATTERSMARCH 2010

20|INDIA MATTERS

Blessed with spectacular beauty, Auli, a skiers’ paradise,welcomes into its phantasms those inclined to having fun,adventure and lots more...

AWESOMEAULIAULI

By Air: The nearest airport is JollyGrant which is 17 km from Dehradun.There are a few flights (Indian Airlinesand Kingfisher) from New Delhi andChandigarh. From Dehradun, you canreach Auli by road.By Rail: The nearest railway isHaridwar which is well connected torest of India. From Delhi, it is connect-ed by Shatabdi Express, from Bombayby Bandra-Dehradun Express, from Kolkata by Howrah-Doon Express andfrom Lucknow by Gorakhanath/DoonExpress. By Road: For a visit to Auli, you cantake the route from Delhi to Haridwar,which is 199 km on NH 47. FromHaridwar to Joshimath, it is 277 kmand it will take around 10 hours. FromJoshimath it is around 18 km by roadand 4 km and 20 minutes by cable car,which is the largest ropeway in Asia. Itcosts Rs. 500 per person for a roundtrip.

HOW TO REACH

This magazine will accept contributions from readers in the form of Q&As, factoids, quiz news,announcements of upcoming quiz events and also photographs. You can write in toindiqtive@gmail.com.

1. Leh Palace. 2. Ahmedabad. 3. Rudyard Kipling. 4. Chennai Super Kings. 5. Kolkata. 6. Mahatma Gandhi. 7. Manipuri. 8. Gudi Padwa. 9. The Hindu. 10. Humayun’s

Tomb. 11. Imperial Engineering College. 12. Oil and Natural Gas Corporation or ONGC.

The 13th Question:Nelson Mandela.

ANSWERS

QUIZ

MARCH 201022|INDIA MATTERS

OVERVIEW

SIZEl India has 454 airports and airstrips;of these, 16 are designated interna-tional airports

l In 2006-07, Indian airports handledan estimated 95 million passengersand 1.5 million tonnes of cargo

l Passenger traffic grew in excess of30% in 2006-07 over 2005-06; cargogrew at 11% over the previous year

STRUCTUREl Currently 97 airports are owned andoperated by the Airports Authority ofIndia (AAI) wThe government aims to attract privateinvestment in aviation infrastructure wMumbai and Delhi airports havebeen privatised and are beingupgraded at an estimated investmentof $4 billion over 2006-16 wGreenfield airports at Bengaluruand Hyderabad are being built by pri-vate consortia at a total investment ofover $800 million wSecond greenfield airport beingplanned at Navi Mumbai to be devel-oped using PPP mode at an estimat-ed cost of $2.5 billion w35 other city airports proposed to beupgraded - cityside development tobe undertaken through PPP modewhere an investment of US$357 mil-lion is being considered over the nextthree years

l Private airlines accounted for 80% ofthe domestic passenger traffic in2006-07. Some have started interna-tional flights.

POLICYl 100% FDI is permissible for airports

wFIPB approval required for FDIbeyond 74% w100% FDI under automatic route ispermissible for greenfield airports wPrivate developers allowed to set upcaptive airstrips and general airports150 km away from an existing airport.

l 100% tax exemption for airport proj-ects for a period of 10 years

l 49% FDI is permissible in domesticairlines under the automatic route,but not by foreign airline companies w100% equity ownership by non-resi-dent Indians (NRIs) is permitted

l 74% FDI permissible in cargo andnon-scheduled airlines

l The Indian government plans to setup an Airport Economic RegulatoryAuthority to provide a level playingfield to all players

l The ‘Open Sky’ policy of the govern-ment and rapid air traffic growth haveresulted in the entry of several newprivately owned airlines andincreased frequency/flights for inter-national airlines

OPPORTUNITY

OUTLOOKl HelveticaPassenger traffic is project-ed to grow at a CAGR of over 15% inthe next five years wExpected to cross 145 million pas-sengers per annum by 2010 wVision 2020 envisages creatinginfrastructure to handle 280 millionpassengers by 2020

l Investment opportunities of $110 bil-

lion envisaged up to 2020 with $80billion in new aircraft and $30 billionin development of airport infrastruc-ture

l Associated areas like MRO and train-ing offer high investment potential

l Air cargo traffic to grow at over 11.4%per annum over the next five years wTo exceed 2.8 million tonnes by2010

l Major investments planned in newairports and upgrade of existing air-ports

POTENTIALl Favourable demographics and rapideconomic growth point to a continuedboom in domestic passenger trafficand international outbound traffic

l International inbound traffic will alsogrow rapidly with increasing investmentand trade activity and as India's richheritage and natural beauty are market-ed to international leisure travellers wConsequent high demand for invest-ments in aviation infrastructure

l Major opportunities lie in wGreenfield airport projects in resortdestinations and emerging metrossuch as Kannur, Goa, Pune, NaviMumbai, Ludhiana, etc. wCityside development opportunitiesfor upgrade of 35 non-metro airports wAbout 25 regional greenfield/unutilised airports likely to be bid outfor private development

INVESTMENT OPPORTUNITIES IN INDIA’S CIVIL AVIATION

AND AIRPORTS SECTOR

Source: www.investmentcommission.in

1. Built in the 17th century by Dharmaraja Singey Namgyal,this tourist attraction in Jammu and Kashmir is popularlyknown as Lhachen Palkar. How is it commonly known as?

2. If you are in an aircraft and it has just landed on SardarVallabhbhai International Airport, in which Indian citywould you be?

3. Born in Mumbai (then Bombay) on December 30, 1865, in1907 he became the first English language writer to win theNobel Prize for literature. Who was he?

4. India Cements is the owner of which team playing in theIndian Premier League cricket tournament?

5. In 1995, in which Indian city was the first commercialmobile phone call made?

6. After whom is India’s ambitious National Rural EmploymentGuarantee Scheme named?

7. Which language was included in India’s list of scheduled lan-guages by the 71st Amendment of the Constitution in 1992?

8. The Hindu holy day of Chaitra Shukla Pratipada is celebrat-ed as what festival in Maharashtra?

9. In 1995, which English daily became the first Indian news-paper to have an online edition?

10. Which landmark in New Delhi is inspired by Persian archi-tecture and is said to be the first garden tomb in the Indiansubcontinent?

11. In the hit movie 3 Idiots, Aamir Khan, Madhavan andSharman Joshi are shown to be students of which fictionalengineering college?

12. Can you identify which Indian public sector unit’s logo is this?

THE 13TH QUESTIONIn 1987, noted freedom fighter Khan Abdul Ghafar Khan became the first non-Indian citizen to be conferred the BharatRatna, India’s highest civilian award. In 1990, who became thesecond non-Indian citizen to be conferred this honour?

Consulate General of IndiaP.O. BOX 737, DUBAI, UNITED ARAB EMIRATES

Tel: +971 4 3971222/ +971 4 3971333, Fax: +971 4 3970453, Tlx.: 46061 CGIND EMEmail: cgidubai@cgidubai.com

CONSULATE HOTLINE NUMBERS: +971 50 9433111 (For women/housemaids in distress and counseling for stress and depression)

+971 50 7347676 (For death formalities on holidays and after office hours)600 522229 (Passport and Visa Services Centre)

Embassy of India, Abu DhabiPlot No. 10, Sector W-59/02, Diplomatic Area, Off the Airport Road

P.O. Box 4090, Abu Dhabi, United Arab EmiratesTel: +971 2 4492700, Fax: +971 2 4444685 / +971 2 4447768

Email: indiauae@emirates.net.ae

Finance Minister Pranab Mukherjee leaving North Block for Parliament House to presentthe the Union Budget 2010-11, in New Delhi on February 26. Ministers of State for

Finance S.S. Palanimanickam and Namo Narain Meena and other officials of theMinistry are also seen.

PUBLICATION OF THE CONSULATE GENERAL OF INDIA IN DUBAI

� Big Indian presence in Gulfood2010 in Dubai

� Chandrayaan finds ice on the moon� World Bank pegs India’s growth at

7.5% in fiscal 2010-11� Highest industrial growth recorded

in 20 years at 16.8%

Budget Day in New Delhi

VOL. 2 ISSUE 3 MARCH 2010

Foundation of International IndianHigh School in Dubai laid

INDIA, UAE to jointly combat terror, scale up trade