INDIAN ECONOMIC BUSINESS NEWS BULLETIN From the Commercial Wing of the Indian Embassy in Israel August 2010 INDIAN by fsz51451

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									            INDIAN ECONOMIC & BUSINESS
                  NEWS BULLETIN
      From the Commercial Wing of the Indian Embassy in Israel

                                      August 2010


India is the second-most important destination for FDI globally: UNCTAD

According to the United Nations Conference on Trade and Development's (UNCTAD)
publication, World Investment Prospects Survey 2010–2012, India will be the second-most
popular destination for foreign direct investment (FDI) globally over the next two years. The
developing Asia region is predominantly considered as the most-sought place for FDI with six
Asian countries featuring in the top 15. The survey was aimed at the largest global non-financial
transnational companies (TNCs), national investment promotion agencies and location experts
and explores the upcoming trends in the global FDI over the next three years. The report
highlighted that it was for the first time that the four BRIC (Brazil, Russia, India and China)
countries, all ranked in the top five for FDI inflows. The top investment destination for FDI
remains China, followed by India, Brazil, the US and the Russian Federation

Industrial production rises by 13.8% in July 2010
India's industrial production witnessed an increase of 13.8 per cent in July 2010, surpassing
analysts' forecasts. The official Index of Industrial Production (IIP) grew by 13.8 per cent year-
on-year (y-o-y) as compared to 7.2 per cent in July 2009. The rise was powered by a 63 per
cent jump in output of capital goods and 22.1 per cent in that of consumer durables.

Auto component sector to see 4-fold growth by 2020

The Indian auto component industry expects to grow by over four-fold to $113 billion by 2020
as there have been projections of a similar jump in car manufacturing in the country in the
next decade, said Automotive Component Manufacturers' Association. The total passenger
car production in the country will jump four times to reach 9 million cars in the next ten years,
the industry body said in its forecast report on Friday. Although a major chunk of this will come
from the fast growing domestic market, exports are likely to form around 35% of the total
market by 2020.

Textile & apparel exports to US grew by 20% in July 2010
Exports to the US have increased by close to 20 per cent for the month of July 2010, as per the
textile and apparel industry sources. The square metre equivalent (sme) of textile and apparel
exports from India rose from 1,606.23 million sme in July 2009 to 1,924.1 million sme in the
corresponding month in 2010.
Domestic airlines registered a 17% growth during January-July 2010

India‘s domestic airlines witnessed a surge of nearly 500,000 passengers in July 2010 in
comparison to the corresponding period in 2009. It is the 7th consecutive month for the
domestic airline industry to report an increase in the passengers flown in comparison with the
same period in 2009. As per the latest data collated by the Directorate-General of Civil
Aviation (DGCA), the domestic airlines flew 17.56 million passengers during January-July
2010 as against 14.53 million passengers carried during the same period in 2009, thereby,
registering a 17% growth.

Reserve Bank of India reports surge in electronic transactions

Catching up with the developed world, India is witnessing a surge in use of electronic means.
According to the latest annual report of the Reserve Bank of India (RBI), the use of electronic
means, as opposed to using paper, for making payments has gone up sharply in the last three
years. As per the RBI report, the share of electronic transactions rose to 88.3% in 2009-10
from 80.4% in 2007-08, in terms of value. Similarly, in terms of volume there was a rise from
27.1% in 2007-08 to 35.3% in 2009-10.

India is top exporter of petro products in Asia

India is now the largest petroleum products exporter in Asia, surpassing South Korea.
According to the data compiled by oil and metal information provider Platts, India's gross
exports currently average 1 million barrels a day, inching past South Korea which exports 0.9
million barrels a day. With the commissioning of a new refinery by Reliance Industries at
Jamnagar and Essar Oil increasing refinery output at Vadinar, India overtook South Korea by
mid-2009 and has since then consistently maintained the lead position. India's average
petroleum products export grew from 0.77 million barrels a day in January 2009 to one million
barrels a day in August 2009. In fact, India's refining capacity at 3.69 million barrels a day is
the third largest in Asia after China and Japan, which have a refining capacity of 9.6 million
bpd and 4.64 bpd respectively. Platts' compilation is based on the data from individual

Passenger car sales grew by 33% in August 2010: SIAM

Indian auto industry sales broke records for the second month consecutively in August 2010 on
the back of good monsoons, a positive customer sentiment, and low borrowing rates. According
to the Society of Indian Automobile Manufacturers' (SIAM) data, the overall sales rose by 25%
to record 1,263,000 units in August 2010 - highest ever for a single month after July 2010.
Specifically, sales were highest for the passenger vehicle and two-wheeler segments in August

National Innovation Council aims to set up $1-billion fund

The newly constituted National Innovation Council (NIC) headed by Sam Pitroda, aims to have
a $1-billion (around Rs 4,600 crore) fund to promote new ideas for inclusive development and
innovation in the country.

Consumer Affairs Ministry says yes to 49% FDI in multi-brand retail

The Consumer Affairs Ministry has given the green signal to allow 49% FDI in multi-brand
retail. It has written a letter to this effect to the Commerce Ministry. India currently allows 100
per cent FDI in cash-and-carry operation and 51% in single-brand retailing. Foreign investors
are barred from investing in multi-brand retail. Additionally, the Ministry also sought that a
model law be first put in place at the State-level to protect mom-and-pop stores from the
impact of the ‗Big Boys' of retail.

Kingfisher, British Airways sign code-sharing pact

Kingfisher Airlines and British Airways (BA) have signed code-sharing agreement on each
other's flights across India, Sri Lanka, the UK and continental Europe, bookings for which will
be available from September 7. The agreement comes after Kingfisher Airlines accepted an
invitation to join the one world alliance earlier this year. According to the agreement, British
Airways' code will be placed on 11 domestic Indian routes and one route to Sri Lanka
operated by Kingfisher Airlines.

Canada, India to tie up for making films in 2011

Canada will be signing a film and new media co-production treaty with India at the 12th edition
of the International Indian Film Academy Awards (IIFA) scheduled to be held in Toronto in
2011. This will help Indian filmmakers get access to the North American country‘s scenic
locales, including British Columbia (BC).

IT / Telecom / Biotech News

TCS top IT exporter of FY10; Genpact leads BPO pack

Tata Consultancy Services maintained its pole position in the list of top IT services exporters
for 2009-10 (in revenue terms), while Infosys Technologies and Wipro held on to the second
and third slot, respectively. According to ranking by Nasscom, HCL Technologies and Tech
Mahindra finished fourth and fifth respectively – there was no change in the pecking order of
these five tech vendors when compared to previous year's (2008-09) rankings. The BPO
exporters ranking saw quite a bit of a re-shuffle among players but Genpact continued its lead.
In another ranking, TCS, Infosys, Wipro, Cognizant and HCL Tech, in that particular order,
were the top five employers for 2009-10.

Seclore, Siemens PLM join hands

Seclore, a security software company incubated by IIT Bombay, has tied up with Siemens
PLM to integrate Seclore's FileSecure with the latter's ‗Solid Edge‖ line of products. This will
allow enterprises using the Solid Edge suite to ―define, implement and audit information usage
policies using Seclore FileSecure, according to a statement from Seclore.

Mobile subscriber base touched 652 million mark in July 2010

The number of Indian mobile subscribers witnessed a robust growth as it touched the 652.42
million mark in July 2010, with an addition of 16.92 million connections, as per the official data.
According to the Telecom Regulatory Authority of India (TRAI), the wireless user base rose by
2.66 percent to 652.42 million in July 2010 from 635.51 million in June 2010. The total
telephone subscriber base has touched 688.38 million. The increase in this category was led
by Bharti Airtel, which added 2.6 million users to take its subscriber base to 139.2 million
users. Similarly, Reliance Communications added 2.5 million new subscribers, taking its
subscriber base to 113.3 million, while Vodafone added 2.4 million connections taking its user
base to 111.4 subscribers. Furthermore, as per the data, the broadband subscriber base grew
2.67 percent from 9.45 million in June to 9.77 million in July 2010. However, the wireline
segment had a subscriber base of 35.96 million in July 2010, as per TRAI.

Transgene Biotek acquires US-based Marillion

Transgene Biotek Ltd has said that it has entered into an agreement to acquire Marillion
Pharmaceuticals Inc, a US Oncology Biopharmaceuticals company based in Exton,
Pennsylvania, in an all-share deal.

Piramal Healthcare completes $3.7 billion deal with Abbott

Piramal Healthcare‘s shareholder can expect to soon receive a special dividend as the US-
based drugmaker Abbott has completed its $3.7-billion acquisition of the Mumbai-based firm‘s
Indian formulation business.

Drug market grows 20% in first half of 2010; foreign firms tighten hold

India's drug retail market grew 19.6% in the first six months of the year, headed by new leader
American company Abbott Laboratories, as foreign drugmakers strengthen their dominance
among the top 10 brands sold in the country. By June end, Abbott held a market share of 7%
followed by domestic heavy weight Cipla that controlled 5.3% of the market, according to
market research firm ORG IMS. The acquisition of Mumbai-based Piramal Healthcare‘s
domestic formulation business, with a 4.2% market share, in May, helped Abbott dislodge long
time leader Cipla. Ranbaxy Laboratories, owned by Japan‘s Daiichi Sankyo, having a market
share of 4.83% is ranked third, followed by UK‘s GlaxoSmithKline that controls 4.28% of the
market. Ahmedabad-based Zydus Cadila is fifth with a 3.8% market share. In June 2008,
Japan‘s Daiichi Sankyo had bought Ranbaxy catapulting it to the second position then.

Advinus develops molecule for diabetes

Advinus Therapeutics, the research-based pharmaceutical company promoted by the Tata
Group, on Monday announced the discovery of a novel molecule for the treatment of type II
diabetes — GKM 001. The molecule is an activator of glucokinase; an enzyme that regulates
glucose balance and insulin secretion in the body.

Corporate News

Siemens enters solar, wind power business in India

Siemens has set up an exclusive office in Vadodara, Gujarat, to expand its renewable energy
business in solar and wind power. Siemens said the country is looking to generate up to 20
GW (giga Watts) of solar power by 2022 as part of the National Solar Mission.

Tata Power-led consortium to set up 240-mw project in Indonesia

A consortium led by Tata Power, India‘s largest private power utility, will develop a 240 mw-
geothermal power project in Indonesia. The Tata Power-led consortium will complete the
geothermal project by 2015.
Elitecore launches network security operations in Africa

Ahmedabad-based Elitecore Technologies, a leading provider of network security solutions
announced foray into the African market with its NGN ready billing support system and
operations support system (BSS/OSS) product suits. Elitecore will offer its billing and revenue
management, AAA and PCRF product suites in the African telecommunication market.

HAL, Russian firms seal transport plane venture

Hindustan Aeronautics Ltd and its two Russian partners have signed a shareholders'
agreement to set up a joint venture that will develop and build a new, modern multi-role
transport aircraft (MTA) for their respective air forces. The joint venture company will be based
in Bangalore and the subsidiary in Moscow.

IBS to provide support services for Germany's TUI Group

Travel, transport and logistics major IBS Software has entered into a five-year deal with TUI
Group Airlines to provide support services. The Germany-based TUI AG is a leading travel
group in Europe with interests in travel, hotels, resorts and shipping.

Solar Semi partners Canadian firm

Solar Semiconductor, a photovoltaic (PV) products company, has announced a strategic
partnership with Sonepar, a distributor of electrical and Solar PV products in Canada and
worldwide. This strategic partnership will give contractors and installers access to Solar PV
kits meeting the Ontario Domestic content requirement.

HCL Infosystems enters the gaming zone

First Indian company to launch handheld consoles, set to compete with international brands
like Sony and Nintendo. Delhi-based HCL Infosystems became the first Indian company to
enter the handheld gaming console market earlier this month. The move is part of the
company‘s plans to expand its hardware, services and ICT systems integration and
distribution business. These handheld gaming consoles launched under the ME brand, will
compete with market leaders like Sony‘s PlayStation Portable and Nintendo DS.

Imperial Auto in joint venture with Italian company

Imperial Auto Industries (IAI) and Allevard Rejna Autosuspensions, a company belonging to
Italian group Sogefi, have entered into an alliance to manufacture elastic suspension
components for the domestic and overseas automotive companies. Allevard-IAI Suspensions
Pvt Ltd, a 51:49 joint-venture between the two companies respectively, will initially undertake
manufacturing of stabiliser bar and torsion bar for passenger cars and utility vehicles.

Tata Steel picks up 80% in Canadian ore project for $279 million

Tata Steel has exercised its rights to acquire 80 per cent interest in the Direct Shipping Ore
project of New Millennium Capital Corp, Canada (NML). Tata Steel is the largest shareholder
with 27.4 per cent in New Millennium. It has now exercised its exclusive option to participate in
the DSO project and has a commitment to take the resulting production. According to the joint
venture agreement, Tata Steel will reimburse 80 per cent of NML's cost to date on the DSO
project and arrange funding up to CDN $300 million (about $279 million) of capital costs for
the project to earn its 80 per cent share of the venture.
RPG firm buys 10% in Aussie coal company

The RPG Group-promoted Integrated Coal Mining Ltd, an affiliate company of power producer
CESC Ltd, has acquired 10 per cent stake in Resource Generation (RG), an Australian coal
mining company, for $10.5 million (Rs 45 crore). Integrated Coal Mining will purchase a million
tonnes of thermal coal per annum for three years and two million tonnes per annum for a
further 17 years from RG‘s Boikarabelo mine in South Africa. RG has agreed, it said in a
statement, to place 18,268,053 shares with Integrated Coal Mining at a share price of $0.575.

Forthcoming Events in India

Event                                     Date                   Source
Automation 2010                           September 21-24
                                          2010, Mumbai

Power India 2010                          October 27-30,
                                          2010, Mumbai

India Chem 2010                           October 28-29,
                                          2010, Mumbai

IFSEC India                               November 23-25,
                                          2010, Mumbai

Asian Herbal Show                         November 26-28,
                                          2010, Chennai

Global Energy                             December 2-5, 
                                          2010, Bangalore

India Telecom 2010                        December 9-11,
                                          2010, New Delhi

4th World Ayurveda Congress &             December 9-13,
Arogya Expo                               2010, Bangalore

5th Vibrant Gujarat Global Summit         January 12-13,
                                          2011, Mahatma

International Handloom Fair (IIHF)        February 16- 18,
                                          2011, Chennai

India Soft 2011                           March 25-26,  
                                          2011, Pune
                          ******** Assistance for Investors *********

          The Government of India has recently set up a joint venture company called “Invest
India” in partnership with Federation of Indian Chambers of Commerce & Industry (FICCI)
and State Governments. The aim of ―Invest India‖ is to promote foreign investment in India in
a comprehensive and structured manner. The company would provide support and
assistance to the investors guiding them through the various procedures for investment and
help them in setting up their business in India. Israeli companies which would like to invest /
open a business in India, can contact “Invest India” to get assistance.

Invest India – Contact Details
General Email:


1. Mr. V K Topa
   Managing Director, Invest India
   Federation House, Tansen Marg
   New Delhi 110001, India
   Tel: +91-11-23765337
   Fax: +91-11-23314373, 91-11-23329369

2. Mr. Dushyant Thakor
   General Manager, Invest India and Additional Director FICCI
   Federation House, Tansen Marg
   New Delhi 110001, India
   Tel: +91-11-23765085 (D), 23738760-70 Extn 411
   Fax: +91-11-23325158

          ******* Database of Indian Exporters / Suppliers ********

     The Federation of Indian Export Organizations (FIEO) has prepared a database of
around 12,000 members representing every product and service sector of India, which is
updated on a weekly basis. The database can be accessed at Importers
may use the "Search" business tool on the FIEO website to search for exporters of their
desired products/services, select the Indian companies of their choice and forward trade
queries directly to their selected companies using the tool. Electronic brochures of the
exporting companies are also being made available on the website to facilitate better decision
making by importing companies. Further, Director General of Federation of the Indian Export
Organisations is available on "Chat Service" of the FIEO website every Wednesday from 3.00
p.m. to 5.00 p.m. (Indian Standard Time) to respond to queries, live, on trading with India
including providing policy clarifications related to investment, banking, taxation, excise,

Contact Details:
NEW DELHI 110 057
Tel: +91-11-26150101-04/46042222
Fax: +91-11-26148194

                      Business Offers for Israeli Companies

  No                Company Details                                     Interest
  1                Jenith Alloy Steels                      Manufacturers & Exporters of
                   Contact Person: Ms. Pranila Upadhyaya    Stainless Steel Products (billets,
                   Tel: 091-731-2430187                     wire, wire rods, bright bars and
                   Fax: 91-731-4068297                      black bars)
                   E-Mail:           They can supply any grade of
                   Web:                 stainless steel to specification in
                                                            Billet Form, Wire Rod Form,
                                                            Drawn Wire Form and Bright Bars
                                                            and Round Bars.

  2                Beeko Scientific Industries              Manufacturers & Exporters of
                   Contact Person: Dev Raj Rana             Laboratory Scientific Instrument
                   Tel: 91-171-2631673                      Microscopes. The company is
                   Fax: 91-171-2600173                      interested in importers of
                   E-Mail:           Laboratory Equipment,
                   E-Mail:   Microscope, Scientific

  3                Auro Avenida Exports Pvt.Ltd             Leading ISO 9001:2000 certified
                   Contact Person: V. Niveditha,            Project Integrators specializing in
                   Asst.Manager, Business Development       sourcing and exporting diverse
                   Tel: 91-40-23372771/72                   range of products like electrical
                   Fax: 91-40-23372776                      machinery, laboratory, educational
                   E-Mail:         equipments, medical and
                   Web:                 healthcare accessories
                                                            Interested in companies
                                                            manufacturing, supplying and
                                                            importing laboratory equipments,
                                                            medical equipments and
                                              engineering equipments.

4   Padmalaya International, Tamilnadu        Manufacturers & Exporters of
    Contact Person: D.Vijaykumar              Spices, Coconut Oil and Chillies
    Mob: 91-98-430-23379                      Interested in importers of Spices.

5   Inis Ventures Ltd                         Inis Ventures Ltd assists small and
    Contact person: Mrs. Michal Beeri         mid size Israeli companies with
    Mobile: 972-54-4715424                    mature products to effectively
    Email:           penetrate into the Indian market.
    India office:                             The company provides a cost
    No. 514, 5th floor Somdutt Chambers, II   effective local sales representative
    Bhikaji Cama Place, New Delhi 110066      office for their clients.
    Tel: 91-11-45633155
    Fax: 91-11-45633156

6   Yogsudha                                  This company is interested in
    Contact Person: Yogesh Mathur             exporting Handicrafts, Garments,
    Tel: 91-141-2790924                       Leather products.

7   Shri Nidhi Arts and Crafts, Jaipur        Manufacturers & Exporters of
    Contact Person: Piyush Dadhich            Indian Handicrafts and Jewellery.
    Tel: 91-141-2358898

8   RANGSEY CLOSET, Gujarat, India            Manufacturers & Exporters of
    Contact Person: Saurin Shah               Garments. Have the capacity and
    Tel: 91-989871446                         can handle about 10000 pieces in
    E-Mail:         assorted sizes. Interested in
    Web:                importers of garments.

9   EISCO – ELECTRONIC                        Manufacturers & Exporters of
    INSTRUMENTATION, Ambala, India            Scientific & Laboratory
    Contact Person: P.K. Jain                 Instruments, Glassware,
    Tel: 91-171-2663087/2662797               Microscopes, Charts and Models
    Fax: 91-171-2663595                       Interested in importers of
    E-Mail:               laboratory & Scientific
                   Instruments, Educational
    Web:                    Equipments
  10          G.R. Engineers, Mumbai              Manufacturers of Steel Forged
              Contact Person: Gaurav Dhingra      Pipe Flanges and Fittings used in
              Tel: 91-2527-240237                 Water, Oil, Gas and Petro
              Fax: 91-22-26556955                 Chemical Industries. Looking for a
              E-Mail:    agent / representative for sale of
              Web:            their products.

Address & contact details of the Commercial Wing, Embassy of India:
140 Hayarkon Street, Tel Aviv 63451 – P.O. Box 6668, Tel Aviv 61033.
Tel: 03-5291999; Fax: 03-5270821;
Please visit our website:

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