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Press Clippings
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Article in Santiago Times:
INDIAN HANDICRAFTS AND GIFTS FAIR MAY COME TO CHILE IN 2010
Written by Natalia Neira Retamal
Monday, 19 October 2009 22:51
La Moneda Cultural Center Director Alejandra Serrano confirmed this
week that Chile’s Ministry of Culture is interested in bringing the
world-renown Indian Handicrafts & Gifts Fair to Chile.
Serrano visited India last week to attend the autumn 2009 Fair, a
business expo sponsored by the Indian government that exhibits
Indian-made crafts.
The Autumn 2009 Indian Handicrafts and Gifts Fair showcased
items from accross India. These lamps are handcrafted in Jaipur,
located approximately 150 miles south of Delhi. Photo by Natalia Neira
R., The Santiago Times
“We are planning to take the Fair to Argentina in November 2010, so
it would be natural to take the Fair to Chile on that occasion,”
Sunita Anand, one of the Fair’s directors told the Santiago Times.
Last week’s fair, in Greater Noida, an industrial city just 40 km
East of Delhi, displayed handcrafted textiles, jewelry, gifts, home
decorations and furniture from across India. The fair was held at the
India Expo Center and Mart, a 970,000-square-foot showroom, and
showcased more than 2,000 exhibitors, 70 percent of which are
accredited manufacturer exporters by the Export Promotion Council (EPC).
The EPC and the Ministry of Textiles sponsored the event.
During her weeklong visit to Delhi, Serrano met with the heads of
the Fine Arts Museum of India and the Artisan Museum “because the
Cultural Ministries of both countries are interested in negotiating
future exhibitions as cultural exchanges,” Serrano told the Santiago
Times.
“I think the best way for countries to get to know each other is
through cultural exchange. When one gets closer to a country’s
artistic culture, it allows for better relations between them in
everything. I’m sure it would make things easier in business also,”
said Serrano. “I think that India may be more important to Chile than
Chile is to India. India is a very attractive place for Chile’s
exports.”
Bilateral trade between the two countries, which celebrated the
second anniversary of their Free Trade Agreement (FTA) in August, has
quadrupled since 2004, from US$514 million to US$2.24 billion in 2008,
reported Chile’s General Directorate for International Economic
Affairs (DIRECON). The figures could reach US$5 billion by 2014 says a
2009 report by the Confederation of Indian Industry (CII), an industry
lobby group.
Asia represents an important destination for Chilean exports,
though India is only the fifth main destination for Chile’s Asian
exports and Chile gets only a minuscule proportion of India’s total
exports.
“The chief barriers to trade are distance, lack of information,
poor connectivity of air and shipping lines, language, unfamiliarity
with local trade regulations, etc. However, these factors have not
deterred robust trade between Chile and key exporting nations in
Asia,” the CII report said.
India’s imports from Chile quadrupled between 2005-2007. However,
imports dropped to $1.8 billion in 2007-08 – mostly attributed to the
world financial crisis.
The countries plan on extending their relationship beyond business.
Chile is planning to host an Indian cultural festival in Santiago next
year.
“I know the Ministry of Culture is very interested in the
possibility of an Indian cultural exchange in Chile,” said Serrano.
“What the cultural exchange will entail and when and where it will be
held has yet to be discussed. This is a great offer that India is
giving Chile. This would be a gift from India, especially since next
year we are celebrating (Chile’s) Bicentennial.”
By Natalia Neira Retamal
***
The Ambassador of India , Pradeep K. Kapur, participated in the
Programme “The Radio Embassy” which is broadcast by Agricultura Radio
Station every Saturday. Ambassador Kapur’s participation in the
programme had a duration of 50 minutes and was aired on 6th November,
2010. To listen to the conversation, you may please visit
http://www.radioagricultura.cl/podcast/embajadaradial/?p=episode&name=2010-11-08_la_emabajada_06_nov_10.mp3
***
Interview with Ambassador Pradeep K. Kapur
“India and Chile have strengthened their bonds of friendship”
- Ever since you started your mission in Chile, we have
witnessed a notorious increase in the bilateral relations between
Chile and India. Which are the factors that have contributed to the
increase of the political, social and economic exchanges between our
nations?
- The bilateral relationship between Chile and India started a
long time ago. As a matter of fact, one of the most significant events
in our joint history took place when India earned its independence on
August 15th, 1947. On that occasion, Chile was the only
country from South America invited to the ceremony. The relationship
between our nations has been extremely positive ever since and has
been exempt of complications.
India and Chile keep strengthening their bonds with each
passing day. This can be explained by a number of reasons: for
instance, around 2000 Indian nationals live in Chile, spread among
Iquique, Santiago and Punta Arenas. However, a large segment of the
Indian community in Chile has settled in Santiago. Coincidently, their
presence is usually related to important cultural activities, thus
generating interactions and bringing our people together. Our cultures
may be different, but time and love have played their parts and we
have now learnt to understand each other. I have to admit that, on
many occasions, I have felt overwhelmed by the number of Chileans who
know about the whereabouts of India and for the interest displayed
towards Indian culture. Many people have shown interest in Yoga,
Bollywood, Indian music, literature, religion, etc.
As for the commercial part of our relationship, there are
around 15 or 20 Indian companies operating successfully in Chile. In
the Information Technology sector (IT), we can count Tata
Consultancy Services, Polaris, Evalueserve and Oracle Financial
Services. Another company from the IT sector will soon start its
operations in Chile. Each of these companies provides employment to
many Chileans, so we can expect the same from the companies that will
settle in Chile in the near future. Most of these companies have set
up their branches in Santiago and only a handful of them have set
their branches in Viña del Mar. As for the automotive industry, its
most important representatives in Chile are Mahindra, Maruti
and Tata.
As for Chile’s presence in India, Compañia Sudamericana de
Vapores has set up 12 offices in India. There are other companies
(cellulose, copper and other minerals) who have also made their
presence felt in our country. In terms of Chilean investment, around
US $700 million will be invested in several projects within the next
five or seven years.
- H.E., Mr. Jyotiraditya Scibdia, State Minister of
Commerce and Industry, will visit Chile during the month of September.
What are the main goals of this visit?
- The delegation led by H.E., the State Minister of Commerce of
India, Mr. Jyotiraditya Scindia, will visit Chile from September 6th
up to September 8th. It is a great honor for us to act as
hosts of such an important delegation.
The commercial delegation that accompanies the Minister is formed by
several members of the Confederation of India Industries. They will
participate in meetings with their counterparts in Santiago and
Valparaiso. SOFOFA has assisted us in organizing the meetings in
Santiago. The delegation will cover different commercial sectors,
including areas such as fruits, dry fruits, wines, inorganic chemical
products, automotive spare parts, iron and steel products, copper
mineral leather, textiles and jewels.
The main objective behind the meetings is to foster further Indian
investment in Chile. There are many interesting projects in the fields
of mining, energy and pharmaceuticals, for instance.
- What do you think about Chile’s position in the world compared
to the rest of Latin America?
- From an institutional level, I would say that Chile is in a very
good position. Chile will encounter many challenges and opportunities
in the road leading to success. In order to grow along with the rest
of the emerging powers, Chile will have to tread carefully and manage
its monetary, incentive and entrepreneurial initiatives properly in
order to succeed.
- On August 15th a new anniversary of the
Independence of India will take place. What can you tell us about the
activities for that day?
- As we do every year, we will invite the members of the Indian
community and our friends to celebrate this important event with us.
We want to live and share our love for our nation with our friends. In
spite of the geographical conditions that have set us apart, we all
carry India in our hearts and spirits.
During the month of August, the Embassy of India will also have the
honor to host the visit of Shri Mumtaz Ali, who has come to Chile to
promote his book “The Jewel in the Lottus: Deeper Aspects of
Hinduism”.
The visit of Shri Mumtaz Alí has a special significance, considering
that he has used his deep understanding about the different religions
of the world to reach a state of inter-religious harmony. Shri M. has
travelled throughout the world giving lectures and offering his
assistance to those who wish to broaden their spiritual horizons and
live a multi-dimensional life.
***
El Mercurio
Sección A, Page A-12
Saturday 24th July, 2010
“Tablet PC” manufactured in India for less than CH $19000
Yesterday, India introduced us to the cheapest Tablet PC of the
world. Among the main features of this portable computer we can find
its touchscreen interface and its cheap production costs: only US$ 35
will be required for its production (around CH$ 19000)
Mr. Kapil Sibal, Minister of Human Resources Development, was the
one who presented this technological (and financial) achievement to
the world. He stated that his country is in conversations with several
manufacturers in order to start with the production of the computer.
During the press conference in which the announcement took place,
an ecstatic Sibal explained that "the motherboard, chips, processor,
connectivity…all these elements cost around US$ 35, including the
memory, the screen and all the elements that you can see here".
This machine – created by the Indian Institute of Technology and
the Indian Institute of Sciences- was created mainly for educational
purposes, given that India is very keen on increasing the access to
technology among students. Additionally, this laptop has the potential
to turn into an effective, cheap way to distribute school texts.
University students will be the first of its users once the computer
is released to the market in 2011.
This device will feature access to Internet and will also count
with a special software that will allow users to read PDF books in
their laptops. This laptop will also allow its users to participate in
videoconferences.
Minister Sibal stated that the "Tablet" will work with Linux and
that its flexible design has been implemented in order to add future
new components.
The Indian Government has decided to implement subsidies in order
to reduce the price of the laptop to US$ 15; the price could even drop
to US$ 10 in case of an eventual mass production.
***
El Mercurio
April 27th, 2010
The latest movie of James Ivory is finally released
A luxury co-op on Manhattan’s East Side used to be the unofficial
headquarters of Merchant Ivory Productions. “We all lived in the
building on different floors,” said James Ivory. “Ruth and her husband
lived on the seventh floor. I lived on the 12th, and Ismail lived on
the 14th”, he recalls. Mr. Ivory still lives there, as does the
screenwriter Ruth Prawer Jhabvala, when she isn’t in India. But the
14th floor lost its most famous tenant in 2005, when Ismail Merchant,
Mr. Ivory’s longtime filmmaking partner, died during surgery for
abdominal ulcers. And that’s meant a raft of new challenges for
Merchant Ivory, a brand long synonymous with intelligent and
sophisticated movies like “A Room with a view”, “Howard’s end” and
“The remains of the day”
“He had a million friends and a million contacts and was very much
liked, and that always helped”, Mr. Ivory said, over a recent
breakfast near his apartment. “So we always got through our films O.K”.
Mr. Ivory spoke like someone who has had five years to grieve, and to
pull things together. Which he has: “The city of your final
destination”, his latest, opened on April 16th after years of
financial uncertainty kept the movie from being completed. Set among
the baroque survivors of a suicidal novelist and the naïve academic
who wants to write his biography, it stars Anthony Hopkins, Laura
Linney, Charlotte Gainsbourg and Argentinean actress Norma Aleandro.
The screenplay, based on Peter Cameron’s novel, was written by Ms.
Jhabvala, who has written 21 scripts directed by either Mr. Merchant
or Mr. Ivory, and hasn’t written for anyone else since 1988. The
film’s costume designer (Carol Ramsey), editor (John David Allen) and
production designer (Andrew Sanders) are all longtime Merchant Ivory
collaborators. And Mr. Hopkins has starred in Mr. Ivory’s “Howards
End”, “Surviving Picasso”. But even if “City of Your Final
Destination” is officially a Merchant Ivory Production, Mr. Merchant’s
absence was keenly felt. “It’s a painful business,” Ms. Jhabvala said
from India. “This is the first film Jim made without Ismail, and while
having all those others around is fine, having Ismail gone is very
difficult”. When asked, Mr. Ivory focused on the professional side of
the loss. “Even after working with him for 40 years, I only really had
a feeling for what he did after he wasn’t there anymore”, Mr. Ivory
said, and laughed. “I had to do things I didn’t even know were going
on”. What Mr. Merchant did was allow Mr. Ivory to concentrate on
actual filmmaking: “there were times when I would dither over the
casting and, fed up, he would go out on his own and cast certain
parts”, said Mr. Ivory. “In this way I ended up with James Mason,
Maggie Smith and Judi Dench. Should I complain?” Mr. Ivory, who had
never directed a narrative feature, met Mr. Merchant, who had never
produced one, and they enlisted another first-timer, Ms. Jhabvala, to
adapt her novel, “The Householder” When Mr. Merchant sold the film to
Columbia Pictures, Mr. Ivory said, he became the first U.S.C. grad to
get a studio release. And Merchant Ivory suddenly had money. “What
‘The Householder’ made we put into ‘Shakespeare Wallah’, which was a
critical success. Then Fox gave us a film to do, ‘The Guru,” and I was
launched. I didn’t have to scratch my way up”, Mr. Ivory says. Mr.
Hopkins, reached in Los Angeles where he’s currently filming “Thor”,
said he was glad to hear that “City of Your Final Destination” was
finally opening. “Because, you know, they had a few difficulties,
especially at the beginning, with money. I stayed out of that, but I
think James was rather sad and disappointed that it was such a tough
go financially.” Two longtime Merchant Ivory associates, Paul Bradley
and Richard Hawley, had assumed Mr. Merchant’s producer duties, but
the film got hung up between promised bank loans and a budget that the
banks and the completion-bond company couldn’t agree on. Merchant
Ivory’s own resources were used to begin production in 2006 in
Argentina, something Mr. Merchant had strenuously avoided before. It
took more than a year to obtain new financing, so Mr. Ivory could edit
and otherwise finish the $8.3 million film, which explains why a film
that began four years ago is only arriving in theaters now.
***
Diario Estrategia
May 25th, 2010
India leads stock market gains in comparison to other emerging
economies
The Indian stock market registered the highest growth in the week
(14.1%). Last week, investors reacted to the crushing victory of the
Congress Party At that time, the Indian stock market grew 17.3%.
Developing markets experienced a positive week in the stock market
fostered by America’s signs of improvement and the prices at which raw
materials are traded. In South America, Argentina, who has grown
continuously over the last five weeks, was the undisputed leader.
Argentina´s current growth rate was 8.6%. Financial experts had
perceived the victory of the Congress Party in the most densely
populated democratic country as a sign of stability and political
advance. These same sources estimate that the Government of Indian
Prime Minister Manmohan Singh will continue with its economic reforms.
The Indian Sensex has accumulated 21.8% of profits during May only.
As for our region, Argentina has led the trend with a growth index
of 8.6%. Lima, on the other hand, registered a 4.5% in the same
period, closing with a growth rate of 2% on Friday after the
agro-industrial and mining sectors experienced an increase in their
profits.
Last week, the performance of the Brazilian Bovespa was mixed: a
negative trend ended on Friday, experiencing a growth rate of 0.96%.
Brazil’s growth rates have reached 3.2% so far.
Market analysts state that external resources and a gradual
appreciation of the Dollar against local currencies may contribute to
this positive trend.
Guido Mantega, Minister of Finances of Brazil, indicated that the
Government of Brazil is “worried” due to the possible consequences
that an increase in the value of the Brazilian Real will have for the
activities of local exporters and producers.
Emerging countries from Europe also shined due to their
performance: Russia grew 8.2%, while Hungary grew 8.1%. In Asia,
Indonesia was the big surprise, scoring a recovery of 7.4%, while
Thailand grew 3.7%.
***
El Mercurio
May 28th, 2010
Terrorist attack causes a train crash in India
At least 65 people died and 200 were left injured following an
alleged terrorist attack executed by Maoist extremists. The attack
took place at the East of the country. An explosion derailed thirteen
wagons of an express train going to Bombay; these same wagons fell on
a different rail and were crashed by another train.
***
El Mercurio
May 23rd, 2010
Tragedy left 158 casualties: Eight people survive aircraft
accident in India
Five adults and three children were able to escape before the plane
exploded.
Indian authorities confirmed yesterday that only eight people
survived the infamous accident: a 737 Boeing plane owned by Air India
Express crashed and exploded after a failed landing attempt in
Mangalore. The authorities have indicated that 158 people died because
of the accident (all Indian nationals). The plane had taken off from
Dubai and failed to land, falling to a cliff and subsequently
exploding. The events took place in early Saturday morning.
Five adults and three children managed to escape unharmed due to
the fact that they jumped from the plane before it exploded. Umar
Faruk was one of the survivors: he escaped through an opening in the
pilot´s cabin. When asked by the media, he said that “the pilot lost
control of the plane after the landing. I think that one of the tires
exploded. The plane started moving violently soon after that".
Anup Srivastava, Director of Air India, indicated that the plane
slipped and headed towards a forest after its failed landing attempt.
166 people (six of them belonged to the crew) were on the plane at the
time of the accident. Another survivor stated that "we had lost all
hope of surviving, but here we are. I remember that the plane started
shaking and then it splits into two". He and the rest of the survivors
evacuated the plane and jumped into a well.
Praful Patel, Minister of Civil Aviation of India, indicated that
the recordings of the conversations between the pilot and the airport
authorities revealed that the plane was operating normally before the
landing. He added that “the first versions indicate that the plane
landed, but the pilot was not able to control it".
Srivastava later stated that the 158 bodies and the Black box were
retrieved by the rescue teams.
The landing strip (2.5 Kms.) started its operations last week,
after the completion of some expansion works. A Pro-Environmentalist
Group criticized the authorities and indicated that the landing strip
did not comply with the safety norms dictated by international and
national organisms.
This accident is the biggest air catastrophe since 1996: on that
year, two planes crashed near Delhi. 349 people died as a result of
the accident.
***
Diario Financiero
April 22nd, 2010
Both countries consider that the currency is under-valued India
and Brazil urge China to take action about the Yuan
China is under constant pressure: fast growing countries have
started to voice their concerns about China’s passivity, urging the
country to give more value to the currency. The presidents of the
Central Banks of Brazil and India are voicing their concern over the
issue.
The bankers of India and Brazil sided with the USA one day before
the meeting between the Ministers of Finances and the presidents of
the Central Banks of the 20 most powerful countries in the world took
place. In fact, American authorities have stated that the Yuan is
under valued and that the subject would be subjected to discussion.
Criticism towards China has come mainly from the USA; however,
yesterday’s statements indicate that there are other nations
interested in this subject, since the Yuan has affected their
economies.
Henrique Meirelles, president of the Central Bank of Brazil, spoke
about the subject during a presentation held at the Senate of Brazil:
he indicated that the global economy “desperately needs” a reaction
from China. He indicated that “the world economy faces some important
challenges, such as considerable reductions in growth rates and the
situation with China and its currency”.
Duvvuri Subbarao, Governor of Reserve Bank of India, indicated that
the under-valuation of the Yuan ended up obstructing the advance of
countries like India. Indian exports to China have not grown as fast
as Chinese exports to India, “which reflects the differences in the
management of our currencies”, Subbarao said. "Our export market could
experience a positive impact if China agrees to revaluate its
currency".
Subbarao later added that "the burden caused by those countries
that try to maintain their currencies at low levels ends up in the
shoulders of the countries that do not take an active part in the
administration of their currencies".
***
La Tercera
April 22, 2010
Luxurious hotel of Bombay reopens for the first time after the
terrorist attacks of 2008
32 people died after Pakistani terrorists attacked the Oberoi hotel
in 2008. Reconstruction works were worth US $45 million. The Oberoi
Hotel, one of the five-stars hotels in Bombay, the financial capital
city of India, reopened for the first time alter the terrorist attacks
that struck India 17 months ago. US $45 million were invested in the
reconstruction of the hotel. This hotel, a Jewish Community Center and
the Taj Mahal Palace were among the main targets of the Muslim
terrorists. 32 people, including 10 members of the staff, died during
the attacks. The hotel reopened yesterday, but guests will be allowed
to enter on Saturday. The lobby of the building was destroyed by the
skirmishes between the police forces and the terrorists (the conflict
lasted for three straight days). Marble brought straight from the
Greek island of Thassos was used for the reconstruction of the lobby.
LCD Tvs were installed at the toilets of the most exclusive rooms of
the hotel. Security has been reinforced and the Tiffin restaurant,
which was thrashed by the terrorists during the siege, was also
reopened under a new name: phoenix. Two new restaurants, the Ziya
(Indian food) and Vetro (Italian food), were also built. Liam Lambert,
President of Oberoi Hotels and Resorts, stated that "rooms were
completely thrashed by bullets, grenades and explosions. Other parts
of the hotel were severely damaged by fire, water and smoke”. Indian
resurgence The resurgence of the Oberoi hotel is very important for
Bombay, since 163 people died and 300 were left injured during the
terrorist attacks of 2008. These attacks dealt a huge psychological
and financial blow to India, since tourism was severely affected. And
things got worse: the financial crisis was just starting at that time.
Mr. Rana Kapoor, executive director of the Yes Bank of Bombay, stated
that "the reopening of the Oberoi Hotel is a sign of the business
spirit, public resiliency, resistance and peaceful democratic
principles that India promotes. India has managed to overcome a
national tragedy”. Kapoor´s brother in law was one of the many victims
of the attacks. The Taj Mahal Hotel, another target of the terrorists,
has also reopened its doors. However, some areas under reconstruction
will remain closed until further notice.
***
Diario Financiero
April 27th, 2010
Is India´s economic growth too good to last?
Strong economic data in recent weeks indicate that India's recovery
is well under way. With private consumption and investment showing
signs of faster expansion, the Economist Intelligence Unit forecasts
economic growth of 7.7% in fiscal 2010/11 (April-March), accelerating
to 8% in 2011/12. However, there are a number of clouds hanging over
the domestic economy that will make it difficult for the government to
achieve its target of 10% annual GDP growth.
Recent economic indicators have provided a steady stream of good
news. The industrial sector surged in the first two months of 2010,
while a jump in production of capital goods suggests that investment
remains robust. Private consumption has picked up, too: output of
consumer durables surged by nearly 30% year on year in February,
signalling that the global recession has had little impact on
middle-class consumption. Sales of trucks and buses—a barometer of
economic activity—leapt by 61% year on year in March. Capital inflows,
exports and imports all rose markedly in January-March. The
stockmarket has also rebounded strongly.
The government is confident that the economy will grow by 8-8.5% in
2010/11. Indeed, the deputy chairman of the Planning Commission,
Montek Singh Ahluwalia, says that senior policymakers have been
directed "to explore the possibility of 10% GDP growth". However,
massive infrastructure investment would be needed in order to achieve
this goal, and the rates of economic growth of almost 10% recorded
earlier in the decade were driven in part by exceptional global
economic conditions that are unlikely to recur. Also, despite the
Indian economy's impressive performance in the first quarter of 2010,
several significant risks remain: most notably, the weakness of the
agricultural sector, rising inflation pressures, and the country's
twin current-account and fiscal deficits.
Agricultural fragility
In 2010 manufacturing will for the first time account for a larger
share of India's GDP than agriculture. However, the farm sector
remains critical to the economy's overall health, especially given its
influence on employment and food prices. The government estimates that
agricultural output declined by 2.8% year on year in the fourth
quarter of 2010, following the poorest monsoon rains in 37 years.
Meanwhile, the outlook for upcoming harvests remains mixed. The
pessimists believe that an extraordinary heatwave—temperatures in
March-April were the highest for decades—has reduced water levels in
reservoirs used for irrigation and has led to a fall in moisture
levels in the ground. Optimists point to the low probability of two
consecutive years of drought and say that high pre-monsoon
temperatures tend to lead to heavy rain during the monsoon season.
Uncertainty will persist at least until mid-June, when the annual
monsoon typically begins.
Inflation fears The performance of the agricultural sector will be
the major determinant of whether food price inflation will return to
single digits, from its elevated current rate of 15-20%. However,
rising food prices are not the only reason that the Reserve Bank of
India (RBI, the central bank) recently described developments on the
inflation front as "worrisome". Indeed, in March 2010 non-food items
contributed more than one-half to the overall rise in wholesale price
inflation.
Furthermore, rising prices are not confined to goods and services.
The RBI cites its own survey of property prices, which shows a strong
rebound in 2009/10. Property prices in Mumbai are now above their
pre-crisis peaks, according to the central bank. Meanwhile, the
stockmarket is only 15% below the record level it reached in early
2008.
In response, the RBI has clearly shifted its focus from supporting
economic recovery to containing inflation. However, its options are
limited. Any significant rise in interest rates would widen the
interest-rate differential between India and the rest of the world,
resulting in an increase in net capital inflows and a stronger rupee.
The RBI is already worried about this trend, saying it believes that
"excessive capital inflows pose a challenge for exchange-rate and
monetary management". Net capital inflows rose more than six-fold year
on year in April-December 2009, to US$42bn. Significantly higher
interest rates would also increase the government's debt burden.
Double deficit
India's twin current-account and fiscal deficits are another source
of risk. In 2009/10 the current-account deficit is likely to come in
above 3% for the first time since the country experienced a
balance-of-payments crisis in 1990/91. A repeat of such difficulties
is not expected now, as the RBI's foreign reserves stand at around
US$280bn and India's economic fundamentals are solid. However, the
combination of a widening current-account deficit and a consolidated
fiscal deficit equivalent to 10% of GDP is a concern, especially
because high domestic inflation and the increasing shortfall on the
current account have not yet triggered rupee depreciation. Instead,
the real effective exchange rate appreciated by 15% between March 2009
and February 2010.
This anomalous situation is a function of rising net capital
inflows (the main cause of rupee appreciation) and the RBI's
reluctance to intervene in currency markets. A rising rupee remains
the central bank's most potent tool to curb inflation without raising
the cost of borrowing for consumers, producers and the Indian
government. However, the RBI will eventually have to act to stem the
rupee's rise, either by conducting sterilised currency interventions
or by resorting to active management of the capital account. For
foreign investors, the latter could include unwelcome measures such as
tightening regulations governing participatory notes, lowering
external commercial borrowing limits and taxing capital inflows.
***
El Mercurio
April 30th, 2010
He addressed the audience during the summit held in New Delhi: A
Chilean entrepreneur looks for business opportunities in India
Indian industry offers trade opportunities for all companies
Alejandro Arrau is a young Chilean entrepreneur who formed his own
company, Verne, in 2008 after working for a mining company for several
years. This entrepreneur (34) is the only member of the company
attending the India- Latin America Summit, event held in New Delhi
under the sponsorship of the Confederation of Indian Industries. He
gave a brief lecture on the possibilities and opportunities Chile
offers to foreign investors. "We came to India looking for companies
that could meet the criteria of our mining clients. We also used this
chance to talk about Chile and promote it. We wanted Indian companies
to learn more about the opportunities our country can offer them,
especially in the mining sector", Arrau states. His intervention at
the summit was well received by the audience. Arrau gave a realistic
overview of what Chile was (including images of the effects of the
earthquake) and also talked about the need of a further collaboration
between the regions. Several Indian entrepreneurs approached Arrau
when the presentation was over. Some wanted to offer the services of
their respective companies, while others wanted to learn more about
Chilean economy. Events like this one are very important for Chile,
since they allow businessmen to deal with sectors that are far beyond
their reach. In fact, most investors usually set their sights on
bigger markets, such as Brazil, Argentina and Mexico. These countries
are aware of this and sent their own representatives to the Summit.
Indian entrepreneurs, however, are quite interested in the mining
sector, a field in which Chile can compete. Arrau says that "mining
standards in Chile are very high and India possesses cutting-edge
technology. These two features make joint ventures quite attractive".
Verne mainly deals with mining supplies, such as chemical products and
mills. Some of the most important mining companies of Chile are among
its clients. So far, Verne has been buying supplies from China,
Australia and America. Arrau is positive that the company will be able
to buy supplies from India, as well. In order to further advance in
his goals, the businessman went to Calcutta and Ahmedabad before
heading towards New Delhi, since he wanted to meet with
representatives of local companies before the summit began. "The main
goal behind this is to be one step ahead of our clients. Once we know
what Indian companies can offer us, we will be able to provide better
solutions to the concerns of our customers even before they tell us
what they need".
***
El Mercurio
April 29th, 2010
Investment and commerce: India opens up to Latin American
markets
New Delhi thinks that commercial trade with the region will continue
growing despite the effects of the global crisis.
NEW DELHI P.N. Sukul, Vice-Minister of Aviation of India, states
that "according to our expectations, commercial trade with Latin
America will increase 150% within the next five years". This statement
illustrates only a fraction of the overall trade between India and our
region. Sukul was, obviously, referring to the sale/purchase of planes
and related components. Indian entrepreneurs and governmental sources
have indicated, however, that all commercial areas will experience a
similar growth. Authorities certainly expect trade in other financial
sectors, such as energy, mining, agriculture and information
technology, to increase as well. Short-term expectations, however, are
not as positive, since Indian economy was severely damaged by the
global crisis. The extent of the damage was controlled by the stimulus
policies implemented by the Government, which allowed companies
(especially small and medium companies) to endure and resist the
effects of the global crisis. Gradual growth According to Vishnu
Mathur, executive director of ACMA (Automotive Component Manufacturers
Association of India), "export plans were delayed because of the
recession. Exports dropped 15% last year”. In general terms, trade
between Latin America and India (which is one of the most important
emerging economies in the world), has grown 15-20% per year, and
higher percentages are expected. According to an important
representative of the Indian Ministry of Foreign Affairs, "these rates
will raise ten times within the next ten years". India’s overall trade
with Latin America is worth US $16 billion, while Indian investments
are worth US $12 billion. Of this amount, US $1.5 billion go to Chile,
US $2.5 billion to Brazil, US $2 billion for Bolivia and US $1.1 to
Argentina. Mrs. Santh Sheela Nair, vice-minister of Mines of India,
states that her country is very keen on increasing the number of
mining investments in the region. We are not only talking about
purchasing raw materials (such as Chilean copper), but also about
taking Indian capital to the region in order to work in the mining
field. Jindal Company, for instance, has branches in Chile and
Bolivia. The company is bent on exploiting iron ore and setting up an
iron/steel plant in Bolivia, in spite of the difficulties between the
company and the authorities of the South American country. A
delegation formed by Indian entrepreneurs and governmental delegates
attended Expomin, event held in Santiago. On that occasion, the
members of the delegation met with representatives of Codelco and
talked about future investments: in fact, Indian state companies
Hindustan Copper Limited and National Aluminum Company are studying
the possibility to settle in Chile. Chile and India decided to further
deepen the Preferential Trade Agreement (PTA) between the nations.
This document, signed in 2007, gave 178 Chilean products and 296
Indian products a preferential tariff. Indian exports increased
significantly during the first two years; however, a 42% wane was
experienced last year. This meant that only US $908 million were sold.
The commercial balance favors Chile, since India mainly buys copper
from our country. The development of the energy sector is vital for
India, hence why the Government gives funds for initiatives related to
this field. An investment worth US $2.5 billion will be spent in the
petroleum basin of Carabobo, Venezuela. India is also exploring the
possibility to participate in the new projects of Petrobras. Chinese
competition According to the secretary of Mines, India has a strong
competition with China, since both countries want to foster their
presence in Latin America. Beijing has the advantage, given its
“aggressive” approach. According to sources within the Ministry of
Foreign Affairs of India, the large number of members of the Chinese
community in Latin America also plays a big part in this. Given these
difficulties, the Indian Government created an organism focused on
assisting investors in their incursions aboard. This organism
(National Manufacturing Competitiveness Council, NMCC) provides
advisory services in legal, financial and political aspects, for
companies willing to work on international projects. In this
connection, high-level business summits (such as the India-Latin
America Summit, event held today in New Delhi under the sponsorship of
the Confederation of Indian Industries) take a special importance. The
goal behind this initiative is to provide a platform for entrepreneurs
and politicians from both regions to talk about business
opportunities, analyze the advantages and difficulties of specific
projects and facilitate investment. Ready to compete against developed
countries India businessmen usually brag about how their companies
offer high-quality products at cheap prices. Vishnu Mathur, from ACMA,
states that “it is not enough to offer a convenient price if the
product is not outstanding". According to Mathru, other countries only
offer cheap labor force. India, on the other hand, offers cutting-edge
technology. Technology allows Indian products to compete against the
products manufactured by developed countries. The best example of this
is the automotive industry. European and American manufacturing
companies have been forced to withstand a great deal of pressure in
order to reduce costs without reducing the quality of their products.
In order to achieve this, they have been forced to move their plants
to cheaper countries. European companies (such as Volkswagen, Fiat and
Mercedes Benz) and some American and Japanese companies (such as
Suzuki) have manufactured their pieces in Indian plants. According to
Mathur, this represents a great opportunity for Latin American
companies. 20% of the production of Indian automotive parts is
exported and 80% go to the local market. In Mathur´s words, these
rates may change if Brazilian and Argentinean companies (Fiat,
Volkswagen) decide to work in joint ventures with their Indian
counterparts. "This is not about competition; it’s about
collaboration”, Mathur highlights.
***
El Mercurio
May 2nd, 2010
Mayor of Buenos Aires: Macri introduces himself as presidential
candidate during his visit to India
The Argentinean politician does not want to disclose when he is
going to launch his official campaign for the elections of 2011. The
only thing he stated is that he is going to make the announcement
before the end of 2010. Mauricio Macri always hesitates whenever
someone asks him if he will be one of the next presidential candidates
of Argentina; however, he already acts like one. The audience knew
they were in front of a presidential candidate as soon as he started
with his speech at the Summit organized by the Confederation of Indian
Industries. Macri was the main lecturer of the Summit, a platform for
local and Latin American entrepreneurs. He spoke like a presidential
candidate and even took the time to share his proposals for a
governmental program. Macri told Indian businessmen to “come and visit
Argentina and take a look at the opportunities that we offer you. Our
prices are quite convenient and they will be even better once I become
president in 2011". Macri is positive that the ruling party will have
no chances of winning in the upcoming elections: "the “Kirchnerism” is
no longer an alternative", he indicated. "From my perspective, the
cycle ends here. What I want to do now is share my proposals with the
world and let the people decide", he told “El Mercurio”. The Mayor of
Buenos Aires is also worried about the conflict between the Government
of Cristina Fernandez de Kirchner and the media. "As for this issue, I
must say that we have sided with the media. This conflict represents
an institutional back step for us. We relieve in freedom of speech and
thought and in the plurality for which the media is known ", he
stated. He is, however, willing to discuss the possibility of
implementing a new law focused on dealing with the issue of media
concentration. "It may be useful to debate over this subject and know
if it is easy to set up a new agency. However, this issue should not
be treated from a political or social level, or at least, not like the
Government has handled the situation. The current Government is acting
like inquisitor, calling some representatives of the media “enemies of
Argentina, of our democracy”. I am more than willing to talk about
reforms and policies focused on improving our coexistence levels", he
said. -What do you think about the trial against the media promoted by
the Mothers of May Square (Madres de la Plaza de Mayo)? "Truth is, I
don’t agree with the proposals made by the group". -Nestor Kirchner
has once again attacked the Clarín conglomerate. What do you think of
that? "He is obsessed. He has never understood that the media is
supposed to be critic. People working for the State should already be
used to that. Obviously, you can present your arguments, defend
yourself against the criticisms or even complain, but you must do it
in a proper way. The Kirchner family, however, has done the opposite,
going against the very foundations of our democracy". -Is political
violence rising? "Unfortunately, the trend shows us that political
violence is rising". -Do you see an end to the conflict between media
and State? "I see the inevitable end of the current Government. The
population will stop supporting them if they keep doing this". -Will
you be the next president of Argentina? "I don’t know yet, we’ll have
to wait and see. So far, the response and the support we have received
are quite good. We now hope that the proposal made by the PRO (his
party, center-right wing) is considered in the upcoming presidential
elections. Anything can happen, though. 2011 will be a long year".
Macri hesitates when asked about the date in which he will officially
start his campaign as presidential candidate. He states that law
forces parties to conduct internal elections in order to determine the
best candidate. He acknowledges that he has “a strong vocation“. He
says that it is “reasonable” to say that a definite response will be
known by the end of the year. According to him, an alliance will be
revealed by that time, because “our party acts like a frontline”. As
for the competition, he states that the elections will be decided
between radical Julio Corbo, current vice-president of the Republic,
and Macri himself: "we have the best chances of running in the
elections". A pro-company Government This trip to India is not the
first international trip for the Mayor of Buenos Aires. However, he
will not focus on promoting the benefits of the capital city of
Argentina: his goal is to “put Argentina in the map once again” and
demonstrate that he has plans that will benefit companies and
entrepreneurs. Macri had visited China before arriving in India. He
said that “these two countries are the main engine of the world
economy” and indicated that “Argentina could become a strategic
partner”, especially in terms of food and minerals. From his
perspective, Argentina could become the main exporter of these
products within 20 years. This, of course, “will depend on our own
capabilities. We must be able to organize our institutions and provide
a stable framework for investments. The current Government has failed
on these tasks", the mayor states. “Candidate Macri” also talks about
tourism, highlighting it as one of Argentina’s strengths (along with
the agricultural and mining sectors). “I would like to take the
example of Australia, a country that has become a developed country
thanks to the exploitation of tourism”. Macri proposes a further
development of the mining sector. According to current rates, mining
investments have grown from zero to three billion dollars. "We can
even multiply that amount forty times", he states. The main issue
Argentina faces (according to Macri) is that most entrepreneurs think
that contracts will not be respected. The serious energy crisis in
which the country is immersed is also another important factor to
consider. This trip to India allowed him to explore investment
opportunities in these and in other areas. "There are companies
interested in Argentina’s technological sector. Some representatives
have indicated that they will visit our country in order to see if
Argentina is a good destination for their capitals". As for Macri, he
states that his country offers better opportunities than Brazil, for
instance, since “our labor force is one of the best in Latin America:
businesses pick up soon and our prices are quite cheap, given the
current trend in the market". "Brazil has been able to gain the trust
of investors because of its stability. What I propose is an Argentina
that can be predictable", he indicated. Assistance to Chile The city
of Buenos Aires is making an important contribution to the restoration
of the patrimony of Santiago, damaged during the earthquake. Mayor
Macri states that “we have sent specialists and a team of architects
in order to work on the restoration of historical monuments". This
contribution has been coordinated by the mayors of Buenos Aires and
Santiago. Ten professionals from the Municipality of Buenos Aires have
been sent to Santiago to work on the restoration of important
monuments in the capital city of Chile. The authorities have yet to
decide if the team of experts will be sent to other regions of the
country after their work in Santiago is done.
***
El Mercurio
May 3rd, 2010
Looking up to India
Francisco Cabrera, Minister of Economic Development of Argentina,
accompanied Macri during his visit to India. His main goal was to look
for new capitals and new markets for Argentinean exports. The coverage
given to the delegation went beyond anything seen before: "during
these days, we have met with many Indian authorities and businessmen.
They see Macri as the future President of Argentina. Our national
project is focused on supporting foreign investment and promoting our
country abroad. We can provide a stable legal framework, strong
institutions and the utmost respect. All of these elements will end up
generating an investment boom", Cabrera firmly states. India is
extremely keen on the food market, and Argentina has managed to make
advances in this field thanks to the inclusion of cutting-edge
technology, which adds value to the products. "The Argentinean food
industry is the largest in the world. Precision sowing is preferred,
because it is far more effective than traditional sowing. What we
offer is a new sowing technique that makes full use of the seed itself
and humidity". Cabrera insists that the authorities must reassure
farmers that their rights will be respected and that the Government
will set new rules and regulations: “instead of exporting soy, farmers
must export proteins and balanced food. If we do so, Argentina may
double its export rates within a short period of time (about two
years)”. Cabrera is optimistic, but he is fully aware that the
Government will have to take care of the roads, ports, trains,
telecommunications and energy if they wish to succeed in this project.
"Argentina, a country with 40 million inhabitants, can provide food
for 400 million people. We want to double that", he says. 30 million
new customers rise in India each year. This is mainly because some
Indians have the chance to improve their purchase power, so they need
new products. Argentinean exporters, who are highly competitive, have
noticed this and have set their sights on the Indian market.
***
El Mercurio
May 4th, 2010
Government contemplates sanctions: India in trouble following
accident with radioactive wastes
An accident resulting in the death of an individual alerted the
population of the dangers of the manipulation of cobalt-60, element
used by the University of Delhi. The nuclear sector, which is one of
the most renowned areas in India, is in the middle of a strong
controversy after it was revealed that one man died as a result of
direct manipulation of nuclear wastes. Six workers were injured. The
episode took place when a group of workers from a dumping site
dismounted a container from the University of Delhi. What they did not
know was that the container was full of cobalt-60, a radioactive
material. In the meantime, Indian authorities evaluate the possibility
of closing the responsible laboratories and suspending the licenses
for experiments. The International Atomic Energy Agency (IAEA), on the
other hand, asks the Government to provide reports on the issue.
According to the IAEA, this nuclear accident is the biggest in the
last four years at global scale. The nuclear development of India
would be severely damaged if the University of Delhi loses the
license, given that the institution prepares future nuclear
scientists. If they cannot conduct experiments, then their instruction
will not be complete. India never signed the Nuclear Non-Proliferation
Treaty, but nevertheless signed an agreement for Nuclear Exchange with
the USA two years ago. India’s position is quite fragile as of now.
Public opinion in shock Public opinion has been in deep shock after
learning about the incident that took place in the dumping site of
Mayapuri. Aparna Dutt Sharma, CEO of India Brandt Equity Foundation,
agency in charge of India’s international and national image,
indicated that "this news is shocking. We never thought that an
accident like this could happen. This is unacceptable”. The
vice-rector of the University publicly apologized for the episode and
took all moral responsibility. He also announced that an investigation
would be carried out in order to determine the causes of the accident
and the individuals responsible. It seems, however, that the public
opinion will not leave this episode behind anytime soon, since there
is still cobalt lying around in other dump sites. Unfortunately,
India’s reputation as a nuclear country will be severely damaged.
***
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