MARCH-APRIL 2006 ISSUE 38

PM Visits India - March 2006

Also in this issueAustralia-India Council Delegation Visits IndiaNSW Welcomes Consul General Sujan ChinoyIndia-Australia Tourism Business Forum

The Prime Minister, the Hon John Howard MP,

visited India - including New Delhi, Mumbai and

Chennai - from 5-8 March 2006, lifting Australia's

relationship with India to a new level. The Prime

Minister's visit was an important opportunity to

advance Australia's foreign and trade policy inter-

ests with a country of key and growing importance

to Australia.

During his visit, the Prime Minister met with the

Indian Prime Minister, Manmohan Singh, attended

Cabinet-level talks with senior ministers, and

discussed key issues of mutual interest with Indian

President Kalam, Congress Party President Sonia

Gandhi and other leading political figures.

The Prime Minister was accompanied by a high-

level business delegation, demonstrating the

importance Australia places on deepening

commercial linkages with India. This delegation -

which included senior representatives from major

Australian companies with interests in India - engaged closely with Indian business counterparts in

a series of well-attended functions organised by the Confederation of Indian Industry (CII), the

Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of

Commerce and Industry of India (Assocham), the Bombay Chamber of Commerce and the Indo-

Australian Chamber of Commerce based in Chennai.

While in Mumbai, the Prime Minister met the director and cast of the highly successful Bollywood

movie, Salaam Namaste, which was filmed in Melbourne. The Prime Minister also witnessed the

signing of two new programmes of cooperation between Australian and Indian educational

institutions, which will see the substantial education links between the two countries continue to

strengthen and develop. Monash University, in collaboration with BHP Billiton, is partnering with

the Indian Institute of Technology Mumbai (IIT Mumbai) to establish a joint institution for scientific

research, while the University of New South Wales has also formalised a partnership with IIT

Mumbai to develop collaborative research programmes in computer science.

The Prime Minister welcomed the official opening of new offices in Mumbai by three leading Australian companies - Macquarie

Equities, Leightons and Linfox - and witnessed the signing of a Memorandum of Cooperation between Santos Ltd and Indian

Company Reliance Industries Ltd.

In Chennai the Prime Minister visited the MRF Pace Academy, a college for gifted student cricketers and witnessed the

signing of a Memorandum of Understanding involving the Madras Institute of Technology and the Queensland University of

Technology. This is a further earnest of the growing cooperation between Australia and India and most particularly, cooperation in

areas of technology, most specifically, information technology.

Six bilateral agreements were signed during the visit:

* An air services agreement;

* A trade and economic framework;

* Memorandums of understanding (MOUs) on customs

cooperation; defence cooperation; and biotechnology; and

* A letter of intent to establish an Australia-India strategic research fund.

The Prime Minister also announced:

* The allocation of $25 million over the next five years to support bilateral research collaboration through the strategic research

fund and associated exchange scholarships;

* The establishment of an Austrade-led Consulate General in Chennai;

* A Government contribution of $1 million towards an exhibition of Sir Donald Bradman memorabilia to tour India;

* and Australia's support for the International Monetary Fund Regional Training Centre in Pune. Australia has committed to

providing $3 million over three years to the centre, which will strengthen the capacity of officials from South Asian and east African

countries to analyse macroeconomic conditions, problems and policies.

COVER STORY - PM VISITS INDIA

Hon John Howard MP, Prime Minister, congratulating Maria Srinivasan, of MadrasUniversity, on her Endeavour Asia Scholarship.

Competition Matters - Perspectives of a Practitioner

Professor Allan Fels, AO, Dean of the Australia and New Zealand School of Government and former Chairman, Australian

Competition and Consumer Commission (1995- June 2003) delivered the fourth Sir John Crawford Lecture on "Competition

Matters: Perspectives of a Practitioner" in New Delhi on Tuesday 18 April 2006. The Crawford Lecture commemorates Sir John

Crawford, a prominent Australian who helped pioneer the Green Revolution in India.

A joint initiative of the Australia-India Council (AIC) and the National Council of Applied Economic Research (NCAER), the Sir

John Crawford Lecture series is a forum for eminent Australians to deliver lectures in India on topics of common public interest.

It aims at promotion of professional links and understanding between the two countries.

Professor Fels spoke about Australia's competition law and policy, a topic highly relevant to India which is currently introducing a

new and modern competition law. His talk centred on three case studies: An Australian Cartel, Reform of the Electricity Industry in

Victoria and The Regulation of the Medical Profession. These three examples were used to highlight the case for and the nature

of competition law and policy and the fact that a comprehensive competition policy needs to cover not only anticompetitive

behaviour by business but anticompetitive laws and regulations imposed by governments. Professor Fels also raised the

question of the relevance of Australian experience to India and suggested it was considerable. We each have a Western system

of government, a federation, the rule of law and the separation of executive and judicial powers.

Whilst acknowledging economic circumstances in India differ to those in Australia, Professor Fels nevertheless posed the

question of what benefit a cartel could be to India. He saw cartels as harmful in nearly all economic circumstances and thought

that the onus was on the critics of competition law to demonstrate that India would not be better off by elimination of cartels.

Dr Bimal Jalan, President, NCAER and former Governor of the Reserve Bank of India, chaired the session and H.E John

McCarthy, Australian High Commissioner to India, introduced Professor Fels and gave opening remarks. The lecture was well

attended by economists, key government contacts, academics, diplomats and the media.

As part of an Australia-India Council (AIC) delegation visit to

India in April 2006, Professor Suzanne Crowe, the Deputy

Chair of the AIC and Head, AIDS Pathogenesis and Clinical

Research Program, Macfarlane Burnet Institute for Medical

Research and Public Health, presented a series of seminars in

New Delhi, Bangalore and Mumbai, announcing the progress

that has been made in HIV and nutrition programs.

Funded by the AIC and in close collaboration with the

Confederation of Indian Industry (CII), Professor Crowe has

been conducting these programs since 2002. Professor

Crowe's seminars were organised by the CII and attracted

industry, government officials, non-government organisations

working in the areas of HIV and nutrition, medical practitioners

and the media.

The aim of the HIV programs is to train doctors in India on HIV

clinical management with a strong focus on understanding the

complicated regimens of antiretroviral (anti-HIV) drugs. To

date, there have been 25 programs in cities and rural areas all

over India, in which over 900 doctors and allied health staff

have received training. Additional programs are currently

underway.

As part of this activity, scientists from Australia have also visit-

ed Indian laboratories and worked with the local technicians to

transfer technology for low cost tests in order to monitor HIV

infection. The capacity building nutrition programs, again fund-

ed by the AIC and in partnership with the CII, were led by

Associate Professor Ibolya Nyulasi and were conducted in the

rural district of Renokoot. Nutritional education was provided

for health workers and peer educators to raise awareness

among women regarding the importance of nutrition.

These programs have been extremely successful and have

gained momentum. Given that HIV and nutritional deficiencies

are two of the largest problems faced by India, the work of the

AIC in these areas, showcasing Australian medical expertise

and forging new collaborative links, will continue to reap

benefits for years to come.

AIC and CII Address Critical Health Issues

On the 16-19 November 2006, the Federation of IndianChambers of Commerce and Industry (FICCI) will host thefirst Indian Ocean Rim (IOR) Trade Fair in New Delhi.

The fair has been initiated from the sixth meeting of theCouncil of Ministers of IOR-ARC (Association for RegionalCooperation), and the IOR Business Forum in Tehran inFebruary 2006. The conference will provide delegates withan opportunity to explore new areas for cooperation and forIOR members to take advantage of developing and furthering business partnerships.

The participation of the nineteen member countries underone roof is an ideal chance for exploring products andmeeting counterparts. Specifically, the trade fair will focuson business match-making interaction and provide theopportunity for retail selling to showcase products and services, and further to provide the exclusive platform forbusiness enhancement through marketing tie-ups, joint ventures and buyer-seller meetings.

New market opportunities showcased will be from the following sectors: agro-food processing; tourism, information technology; handicrafts; drugs and pharmaceu-tical (inclusive of machinery); gems and jewellery;

electrical equipment; rubber and tyres; machinery for petrochemicals and the petro sector; farm equipment; andtextiles (includes furnishing fabrics).

Established in 1997, IOR-ARC consists of 19 membercountries that aim to strengthen the economic ties with theIndian Ocean rim region and member countries. The mem-ber countries are: Australia; Bangladesh; India; Indonesia;Iran; Kenya; Madagascar; Malaysia; Mauritius; ozambique;Oman; Singapore; South Africa; Sri Lanka; Seychelles;

Tanzania; Thailand; UAE; and Yemen. The DialoguePartners are: China; Japan; Egypt; France and the UK.The Indian Ocean Tourism Organisation (IOTO) is anobserver.

FICCI is the key organiser of Indian Ocean Rim activities in India. For further enquiries please contact:Ms Santosh NautiyalResearch AssociateTel: 91 11 23738760-70 (Ext 483; 330).

Direct: 91 11 23765321. Fax: (D) 91 11 23765316; 23320714; 23721504Email: manju@ficci.com; santosh_nautiyal@ficci.com

2006 IOR-ARC TRADE FAIR FAIR IN NEW DELHI

L-R: Dr BB Rewari, National Consultant, ART,National AIDS Control Society; Professor SuzanneCrowe, Deputy Chair, Australia-India Council andHead, AIDS Pathogenesis and Clinical ResearchProgram, Macfarlane Burnet Institute for MedicalResearch and Public Health; Ms Chanda Singh,Chairperson, Social Development Sub-Committee,CII (Northern Region) and Member, India-AustraliaCouncil.

The India-Australia Tourism Business Forum was held in

Melbourne on Friday 24 March. The highly successful forum

was hosted by Hon Fran Bailey MP, Minister for Tourism and

attended by India's new Minister for Tourism and Culture,

Ambika Soni, along with a delegation of around 20 government

and industry representatives from India.

Nearly 100 Australian tourism industry representatives also

travelled from around the country to attend. Participants

appreciated the opportunity to network with the international

delegates and learn from Australia's most respected experts on

the India market.

The forum - judged a resounding success by all involved - was

an important step in the plan to fast-track tourism flows

between India and Australia, part of a Ministerial Action Plan

announced by the Australian and Indian Governments follow-

ing Minister Bailey's trip to India in September last year.

The Ministers agreed to share expertise in a number of areas

of interest to both countries. These included ecotourism and

sustainable tourism, health and medical tourism, food tourism,

enhancement of heritage sites, and investment in infrastruc-

ture.

Presenters included: Mr Neville Roach AO, Chairman,

Australia-India Business Council; Mr Ashwini Kakkar,

President, Travel Agents Association of India; Hon Warwick

Smith, Executive Director, Macquarie Bank; Mr Amitabh Kant,

Joint Secretary, Ministry of Tourism; Professor Terry De Lacy,

Chief Executive, Sustainable Tourism CRC; Mr Peter Colahan,

Chief Executive, Business Tourism Australia; Ms Lois Appleby,

Chief Executive, Tourism Victoria;Mr Sudhir Warrier, Executive

Chairman, Blue Line Cruises; Mr Simon Smtih, CEO,

AECgroup.

India-Australia Tourism Forum a Resounding Success

Extract from Speech given at the Forum by Neville RoachAO, Chairman of the Australia India Business Council

Today's India-Australia Tourism Business Forum is a major initiative that was envisaged under the Ministerial Action Planagreed last year between our Tourism Ministers to fast-trackthe growth of bilateral tourism between Australia and India.The participation in the event by the Ministers, senior govern-ment officials and significant business leaders involved intourism of both countries makes this the perfect forum to discuss and agree how we can all work collaboratively toaccelerate the growth of bilateral tourism rapidly.

Recognising the growing importance and virtually unlimitedpotential of the Tourism, Travel and Hospitality (TTH) sectorbetween and within both countries, AIBC decided to establish aspecial Chapter for this lucrative vertical industry group in2005, with State launches in New South Wales and SouthAustralia. We wanted to wait for a special occasion for theNational launch, and we are so glad we did. We could nothave hoped for a more auspicious occasion than today, whenwe have had the great good fortune of the launch beingblessed by the ceremonial lighting of the lamps by the TourismMinisters of both countries.

The TTH Chapter has already received significant encourage-ment and support from Tourism Australia, India Tourism,Tourism New South Wales, the South Australia TourismCommission, the Australian Travel Exporters Council, Qantasand Accor Hotels, and, of course, the Department of IndustryTourism and Resources.

But, while government support is essential and most welcome,real business outcomes will only come from the active participation of the major players in the Tourism, Travel andHospitality industry. We need your first hand experience andexpertise to help us to develop the right promotional eventsand material, lobby governments to implement the right policies to encourage the growth of the sector and removeimpediments to its development.

Membership of the TTH Chapter should be attractive to thetourism agencies of all States and Territories. Apart from participating in the Chapter's activities in their own State orTerritory, they can also promote their State/Territory at eventsin the other States and Territories. In particular, this is a veryeffective way to stimulate the virtuous triangle, marketing to thelarge and affluent Indian community and the large body ofIndian students in Australia. Others who should benefit fromjoining the chapter are airlines, travel agents, tour operators,tourist attractions, hotels, motels, hospitality businesses, espe-cially Indian restaurants, financial services companies offeringtravel finance and insurance and road and rail transportproviders.

I hope many of you will consider joining today. The NationalCoordinator of the Chapter, Shree Shirodkar is here as areHarish Rao, President of AIBC Victoria, and Wendy Farrell,who manages our Victorian secretariat. They will be happy toanswer your questions and help you to join. Their contactdetails and more information about the AIBC generally as wellas the TTH Chapter and how you can join the AIBC can befound at www.aibc.org.au.

India's Minister for Tourism and Culture, Ambika Soni withNeville Roach and Hon Fran Bailey MP, Minister for Tourism

Ballarat Business Community SupportsTsunami Affected South India

The Ballarat business community, the City of Ballarat and

Australia India Business Council raised $6,500 towards Rotary

Tsunami House Rebuilding Project at a business lunch at the

Best Western Bell Tower on Friday, 17th February, 2006.

City of Ballarat Mayor, Cr David Vendy, said "Ballarat's

business community and the City of Ballarat together

contributed the necessary funds to build one of the 44

permanent homes planned for Paravaipet village in South

India."

The Hon. John Brumby, State Treasurer and Minister for State

and Regional Development, delivered the keynote address as

local business delegates networked with industry peers and

financially contributed to the reconstruction of life in coastal

Southern India. Minister Brumby, along with some Australia

India Business Council delegates joined local business r

epresentatives at the new i-Glass manufacturing facility for

lunch and a site tour earlier in the day.

The Ballarat Business Lunch was the first of many networking

opportunities for local businesses in the lead-up to and during

the Commonwealth Games.

Presentation of cheque to Rotary International L-R:Richard Hancock (CEO, City of Ballarat), Vijay Sursarla(AIBC), John Wrigley (Rotary International), Hon. JohnBrumby (Treasurer of Victoria), Harish Rao (President ofAIBC Victoria).

Sydney Business Community WelcomesNew Indian Consul General

150 members of the AIBC and Bharatiya Vidya Bhavan

welcomed the new Consul General of India, Mr Sujan R

Chinoy and his wife, to Sydney at a cocktail party hosted by

AIBC sponsors, Deacons, on 2 March 2006.

Mr Chinoy assumed charge as the Consul General of India,

Sydney, on 21 January 2006. He brings with him an

outstanding record of success in numerous positions in the

Indian Foreign Service, the most recent being as Consul

General of India in Shanghai for a record term from 2000-

2005. His previous official appointments include service in the

Indian Missions in Hong Kong (1982-84), Beijing (1984-87),

Permanent Mission of India to the United Nations, New York

(1992-95) and Riyadh (1995-96).

Ernst & Young Hosts Indian Post BudgetBriefings throughout March

Australian companies wishing to understand the Indian

business environment and opportunities to engage with the

market attended seminars in Sydney, Melbourne, Brisbane,

Adelaide and Perth in March.

Doing Business in India Update - "Implications of the 2006

Indian Budget on Australian Investment" responded to the

Indian Budget which was announced on 28 February and sets

out the country's economic direction and the fiscal regime for

the year ahead and outlines key foreign investment policies.

The informative seminars provided an up-to-date insight on the

status of the Indian economy and Australian investments in

India, Indian foreign investment regulations, and key direct and

indirect tax proposals.

The AIBC WA Chapter has recently joined the AIBCNational Body. The Doing Business in India Update wastheir first official event under the new structure. From left,the committee: Phil Pestonji (Vice President), SushmaPaul (President), Farzana Pestonji Treasurer) and GrahamT. Scarratt (Secretary).

Australian Sikh Games 2006 - The Best Sikh Games Ever!

Australian Sikh Games - the largest sports event for the Sikhs outside India, held during the Easter weekend (14-16 April, 2006)

at Concord Oval and eight surrounding venues in Sydney will be remembered as the BEST SIKH GAMES EVER.

More than 1000 athletes representing 75 teams from all Australian States and countries as far as Canada, Malaysia, Singapore

and New Zealand used the Easter long weekend to compete in variety of sports like Kabaddi, Soccer, Hockey, Cricket, Volleyball,

Athletics, Golf and Tug of War.

The spectacular cultural performances at the Games were par excellent. Two mega performances with over 100 participants at

the Opening Ceremony refreshed the memories of the Melbourne Commonwealth Games Closing Ceremony. The games

provided the Sikh Diaspora a platform to display their talent and culture to the wider communities as well as giving our youth an

opportunity to learn about their roots and heritage.

A host of dignitaries graced the occasion by their presence at the Opening Ceremony including Ms Sandra Nori, Minister for

Sports (representing the Premier), Laurie Ferguson MP, Federal Member for Reid (representing the Leader of the Opposition), Ms

Louise Marcus MP, Member for Greenway (representing the Prime Minister), Cr. Angelo Tsirekas Mayor of Canada Bay, Ms Julie

Owens MP, Member for Parramatta, Ms Virginia Judge MP, Member for Strathfield, Angela D'Amore MP, Member for Drummoyne.

The Hon. Philip Ruddock, Federal Attorney General, and Hon. John Aquilina, Speaker NSW Parliament, honoured the community

by their presence at the Gala dance and Dinner Party on the Final Day (16th April 2006).

Australian Sikh Games 2006 will also be remembered for the wider media coverage especially the Sydney Morning Herald and

The Australian. The contribution of community media both print and electronic was highly commendable for covering each and

every event. In the words of Laurie Ferguson MP, the Sikh Games has set new milestones in community support as the total

games budget of around $200,000 was funded by donations by corporate houses and the community at large. There was no

admission fee to the Games Venues and Langar (free food with tea, oranges and bananas) was provided to over 10,000 visitors

each day.

Australia-India Focus

The Australia-India Council (AIC) was established in 1992 inresponse to a recommendation by the Senate StandingCommittee on Foreign Affairs, Defence and Trade, following anenquiry into Australia�s relations with India.

The Council initiates or suports a range of activities designedto promote a greater awareness of Australia in India and agreater awareness of India in Australia, including visits andexchanges between the two countries, development of institutional links, and support of studies in each country of theother.

The Council offers, in the form of funding, for projets likely tocontribute to the development of the relationship within thecontext of AIC objectives and guidelines.

For more information, visit www.dfat.gov.au/aic

The Executive Director, AICPO Box E8 Kingston ACT 2604Telephone: +61 2 6261 3839Facsimile: + 61 2 6261 1304E-mail: ausindia.council@dfat.gov.au

AIBC's mission is, "To build stronger business links betweenAustralia and India for the benefit of our members and bothcountries."

This is achieved through a rich programme of seminars, workshops and networking events around Australia, the coordination of inbound and outbound trade and investmentmissions, linkages to government agencies and other professional and industry associations in both countries. As abusiness organisation, the AIBC aims to ensure productiveaccess to a wide range of useful introductions and leads, dissemination of useful and timely news and informationthrough our website, newsletters and emails and professionaldevelopment programs for our members.

The AIBC works with business and government representa-tives to build upon many of these developments and activities.

For more information, visit www.aibc.org.au

The Executive Officer, AIBCSuite 1206, Level 12, 87-89 Liverpool St, Sydney NSW 2000Telephone: +61 2 9262 7111 (Ext 22)Fax: +61 2 9267 4500E-mail: info@aibc.org.au

The Australia India Focus Newsletter is produced bi-monthly by the Australia-India Council and the AustraliaIndia Business Council.

Australia-India Focus aims to inform our readers on the range of cultural and business activities occuringbetween Australia and India.

The views expressed within this publication do not necessarily reflect those of the Australia-India Council orthe Australia India Business Council. Articles may be reproduced freely with acknowledgement. Please directyour editorial enquiries to info@aibc.org.au

Subscription to Australia-India Focus is free. The receive Australia-India Focus by email, simply provide youremail address, name and mailing address to info@aibc.org.au

Australia-India Focus is available as a PDF document for download from the website of the Australia IndiaBusiness Council www.aibc.org.au in the newsletter section and the Australia-India Council�s website atwww.dfat.gov.au/aic