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EditorialDear Reader,Greetings. Economic relations and understanding between India and the UnitedStates have reached such a mature stage that there is total synergy on every issue. Thiswas in evidence during the recent visit to the US of India's External Affairs MinisterPranab Mukherjee, who had discussions with leaders and high-ranking officials of thatcountry on wide-ranging issues. Energy, especially civil nuclear energy, dominated thediscussions. Besides energy, the wide spectrum of issues covered included defense,space, science and technology, agriculture and education. Mukherjee described thetalks as very productive and fruitful. The cover story of the current issue of Indo-USBusiness carries in detail Mukherjee's visit to the US. The fast-growing entertainmentindustry world over has brought Hollywood and its Indian counterpart Bollywoodcloser. The widespread success of movies with crossover appeal has driven a spate offilm co-production deals and cross-border distribution agreements between India andthe United States in recent years. However, increasing levels of counterfeiting andpiracy are threatening these partnerships forcing both Hollywood and Bollyood tojointly initiate action to counter this menace. We carry a report. The Indo-AmericanChambers of Commerce (IACC), in association with the National Association ofBroadcasters (NAB), recently organized a curtain raiser for the NABSHOW 2008, inMumbai, Hyderabad and Chennai. We carry a report on the NABSHOW, aconference-cum-exhibition, to be held in Las Vegas from 11 to 17 April 2008. IndianIT companies have been acquiring US firms in order expand operations in that country.In a latest such development, Rolta, a leading Indian IT firm, has acquired TUDC inorder to expand its US business. We report. The issue carries an interview with RakeshShah, Chairman, Engineering Export Promotion Council (EEPC), who believes that“one day India will become the factory of the world,” meeting every manufacturingneed of the global corporate sector. It is true that West Bengal has lost many growthopportunities in the IT for being a late starter. To make up for all that had been lost, Dr.Debesh Das, the new Minister In-charge of the state IT Department, says that “you canstart an IT company in Bengal within 24 hours.” We carry an interview. The issuecarries a feature on Vedic Village a Spa Resort located on the outskirts of kolkata andhow it has emerged as a perfect Holistic Wellness Destination over a period of time.The issue covers plenty of chamber news from across the country. Then there arereports from Assam plus our regular features to make it the current issue very readableand informative.Wish you happy readingSatya SwaroopManaging Editorsatya@newmediacomm.bizINDO-US BUSINESS Feb-Mar 200804

MessageLooking BeyondAt the outset, let me express my gratitude to you al l, for your invaluablesupport and cooperation. With your advi ce and guidance, we are trying tog ive anew orientatio n to our actii v ties an dpror g ams.This yea r, Medi a and Entertainment ( M &E) was one among the five focusareas that IACC has chosen. The rationale was to tap the huge potential inthis grown i g segment andfacilia t te collaborationsand join tworking amongthe players in Indi a and the US in the segment. To express synergiesthatexistbtw e een tew h t o countries i n M&E,we have aptly referr ed these initiatives as“ Hollywoo dto Bollywood”.One of the high pon i ts o f this te i -up was IAC C's MOU wih t the Nai tonalAssociato i n of Broadcasters ( NAB) of US for exclusively promoting NABShow2008 in India. Th is arrangement will help realizing the enormous potentai lof M& E econo my i n both the countries and also help deveo l ping lastingrelations among the players.Fo rh t e first tim ein the histor yof NABShow, there wl i l be a nIndia Focus Da.yThe Conference cum Exhibitio n , whi ch will be kicked off in Las Vegas o n April11-17 , 2008 will h ave eight supe r sessions. One super session “Tune-in toIn dia 's Entertainmen t Econo my : From Emergin g t o Surging” is exclusivelydedicate d t o the Ind ian entertainmen t industry. I have th e good fortune ofchaiin r g that sessio nalong with six renowned speaker sfrom India namely,Jagdish Kumar,CO Oof Star TV( Pvt) L td ,A. P. Parigi, CEO of EntertainmentNetwork ( Indi a) Limited (Radio Mirchi), Sunil Lull a, Group CEO of AlvaBro thers Grou p/ Mid itech , Anura g Batra, Promo ter and CEO,Exchang e4Media , Ken Vaz, President Americas of Eros Intl. USA Inc. andZohra Chatterj i , Jt . Secretary , I&B Ministry a s co-panelists.IACC is taking the largest e ver delegation that attendd e the NABShow fromIndia. At the IACC coordinat ed India Pavilion at NABSho w, Indianentertainment and technology companie s including TC S , ND TV, Tata Elxsi,Real Image, indiantelevision.co m, etc. will display their cutting edgeproducts, content advantage and solutions. There will also be a sessio n on“Indian Animation and Special Effec ts ”, which will help showcasing In dia'scompetitive advantags e in ti h s segmetnTh e NA BShow provides the Indian entertainment econo my a globa l platformto buil d synergistic partnerships and accelerate the visibility of the Indiancontent globally. In addition, i t will throw light on the impa ct of wirelesstechnoo l g y and the challenges an d opportunities that convergence isbringing to the mainsr t eam multimedia indusr t y at the macro an d microlevel.Iamhappyto bring to your kind notice that the promotional campaigns thatIAC C organized fo r NABSho w in association w ith NAB receivedINDO-US BUSINESS Feb-Mar 200805

Messageoverwhelming response. The Road show s in Mumbai, Hyderabad andChennai held in February this yea r generated a lot of interest among theIndian media industry. Other extensive promotional efforts like web-basedmak r etin g campaign, which IACC has undertaken in association withExchange4Media and Indiatelevision.com have helped popularizing theevent widely in India. We have also uploaded the details of the event in theIACC websit eand received, on an average, more tha n1000 hits a week-arecord number since we set up the site.The second Legal Conference-Doing Business in India, one of the importantevents o f IACC, this year is being held in Plano, Texas on April 8-9, 2008.This is being organized jointly wit hthe Center for American and InternationalLaw (CAIL) with the support of American Bar Associations. Twenty-fivedelegates from India led by Lalit Bhasin, Chairman of the Legal AffairsCommittee of IACC will attend the Conference. The delegates are mostlylegal luminaries who will interface with theircounterparts and businessmento explain to them about the pros and cons of establishing businesses inIndi a, acquisition of shares in Indian listed companies, prvi ate equitytransactions, investing in real estate and SEZ s, framin g contracts in India,investin g in India , rules of M&A, financing and taxes, IPR et c.We are also launching the second edition Indo-US Business ConfidenceIndex (IUBCI) on 8t h April 2008 at Dallas, Texas to coincide with the LegalConferenc e. Mr Anan d Mukin, Join t Secretary, Department of Commerceand Industry will release the new set of ind ices . Ms Banashri Harrison,Minister (Commerc e), Indian Embassy, Washington will also be present atthe occasion.Importantly, IACC is holding the fifth editio n of the Indo-US EconomicSummit at Chicago on 8-9 September 2008 and are i n the process offinalizing broad thematic sequences of th e event in consultation with ourpartner-World Trade Centre, Chicag oand others in the US. That will not onlymark the first ever Economic Summit to be held by IACC in the US but alsoprovide a platform fornetworking among US business men, investors,experts, representatives of financial instituti ons , etcThe IACC Aviation Conference, which we are holding in New Delhi on 9thApril 2008 will be attended by representatives of civi l aviation companieslike Boeing, Lockheed Martin, American Airlines, GE Aviation, GMR,DGCA, Bell Helicopters, National Airlines Corporation Ltd (NACL) etcI am grateful to every one of you for the support that you are lending me toaccomplish these tasks and in scripting a new paradi gm in the activities ofthe organization . I shall keep yo u informed about the outcome of theseevent s.Thank youFarokh BalsaraINDO-US BUSINESS Feb-Mar 200806

Cover StoryPranab's talks in Washington fruitfulSynergy on Energy IssueIndia's External Affairs MinisterPranab Mukherjee concluded afour-day visit to the UnitedStates in the third week ofMarch, which he described asvery productive and fruitful.Mukherjee held wide-rangingdiscussions with Secretary ofState Condoleezza Rice andalso called on PresidentGeorge Bush. He alsointeracted with a group ofeminent men at the CarnegieEndowment for InternationalPeace. Energy, especially civilnuclear energy dominated theIn his opening remarks at a joint pressconference with Rice at the end of his visit,Mukherjee pointed out that his discussionsthe US leadership reinforced the view thatthe India-US relationship is robust andforward-leaning and answers to theinterests of both countries.“The India-US strategic partnership hasgrown from strength to strength,” he said.Mukherjee said that Indo-US relationsencompassed a meaningful and regularpolitical dialogue, vibrant economic andcommercial interaction and collaborationover a wide spectrum of issues includingenergy, defense, space, science andtechnology, agriculture and education.“We also discussed the way forward onopening civil nuclear cooperation by Indiawith USA and other partners as a criticalelement of our energy security, he said.Mukherjee said his discussion with USleaders also covered the crucial issue ofdiscussions, which also covered cooperation in wide-ranging economic fields.External Affairs Minister Pranab Mukherjee meeting United States President Bushin the Oval Office of the White House on March 24, 2008External Affairs Minister Pranab Mukherjee with the US Secretary of StateDr. Condoleezza Rice at a Joint press availability in Washington, DC onMarch 24, 2008INDO-US BUSINESS Feb-Mar 200807

Cover StoryExternal Affairs Minister Pranab Mukherjee meeting United StatesPresident Bush in the Oval Office of the White House on March24, 2008. Also seen in the picture, from right are Ambassador RonenSen, DCM Ambassador Raminder Singh Jassal, Foreign Secretary,Shivshankar Menon and Gaitri Kumar, Joint Secretary Americasclimate change and the need for a successful conclusion ofthe Doha Development Round.In his address to Carnegie Endowment for International Peaceon the theme “Perspectives on India-US Relations,”Mukherjee said, ”The multiple opinions on the India-USnuclear initiative in India and outside disguise thefundamental common understanding that energysecurity for India is vital and that nuclear energythrough national means as well as internationalcollaboration is a vital part of it.”Calling for global consensus on issues such asterrorism, religious extremism, WMD proliferation,climate change, HIV-AIDS, Mukherjee said, “Goingit alone is no longer an option for any country.Through our association with IBSA, BRIC, SAARC,the G-8 and ASEAN, and our contribution to theUN, we are building important partnerships toaddress common problems.”GlobalizationHe said globalization provided opportunities tocountries that were willing to draw benefits from it.But the process must also ensure that countries areenabled to draw those benefits. Paradoxically, thebenefits that accrue to countries from a globalizedeconomy also give them the strength to pursue theirnational priorities and independent foreign policies.As the case of India proves, globalization has notonly linked our economy to the world; it has alsostrengthened our national decision-makingautonomy.India, US Continue Energy DialoguePreparing grounds for the third meeting of the Steering the goal of sustainable development.Committee of the India US Energy Dialogue which tookA Memorandum of Understanding was signed on Aprilplace in New Delhi on April 4, 2008, the Working4, 2008 between the Ministry of Petroleum and NaturalGroups established under the India US Energy DialogueGas and the Department of Energy, USA for cooperationi.e. focusing on (i) Oil and Natural Gas (ii) Coal (iii)in gas hydrates which, among other things wouldPower and Energy Efficiency and (iv) New Technologiesfacilitate the establishment of a Gas Hydrate Technologyand Renewable Energy met in the Indian Capital fromCenter in India. The Hindustan Petroleum CorporationMarch 31 to April 3.Limited (HPCL) and the United States TradeThe U.S. delegation to the Steering Committee was led Development Agency signed a Grant Agreement underby U.S. Department of Energy Under Secretary, Mr. C. H. which technical assistance will be provided for the'Bud' Albright, and the Indian delegation was led by proposed HPCL Asset Integrity Management Project.Foreign Secretary Shivshankar Menon, assisted by theThe India-U.S. Energy Dialogue, launched on May 31,officials of the concerned Ministries of the governments2005, is aimed at increased India-U.S. trade andof India and the United States.investment in the Indian energy sector by working withBoth sides expressed satisfaction at the level of the public and private sectors to further identify areas ofcooperation and progress achieved during the last cooperation and collaboration and build on the broadalmost three years. The two sides looked forward to a range of existing cooperation between India and theseries of time-bound actions in bilateral energy United States to mobilize secure, clean, reliable andcooperation - in keeping with the transformed nature of affordable sources of energy, focusing on (i) oil andthe strategic partnership between India and the USA and natural gas (ii) coal (iii) power and energy efficiency,(iv)to move forward towards the common objective of clean new technologies and renewable Energy and (v) civilenergy, energy efficiency, energy security while pursuing nuclear energy.INDO-US BUSINESS Feb-Mar 200808

Eventhas acquired pos-production studios inthe US and UK. Others, like PyramidSaimira and Reliance Entertainmenthave acquired American theatre chainsor are tying up with screens in NorthAmerica to expand their operations inthe US markets.All these are a case in point to provethat American media companies areincreasingly entering Indian marketsand vice-versa. This space is trulywitnessing globalisation and willfurther strengthen Indo-US ties. Bothsides look for a level playing field andhave a lot to contribute and worktogether in IP protection, fight piracyand work in tandem. There are alsohuge prospects in creating IPs in theanimation space. India is generating alot of interest in the US and companiesare very keen to work with India. This iswhy the NAB (National Association ofBroadcasters) Show 2008 at Las Vegas(from April 11 to 17) will have a specialfocus on India this year. There is also anIndia Pavilion and a Super Session onIndia titled, "Tune-in to India'sEntertainment Economy: FromEmerging to Surging" for which Ernst &Young is the Knowledge Partner.The Indian M&E industry is goingthrough a metamorphosis due to thedigitization of content and deliveryplatforms. To keep pace with these fastpaced changes, Indian companies willneed to adopt relevant strategies tostay competitive. The NAB Showprovides broadcasters with a globalplatform to build synergisticpartnerships and accelerate thevisibility of the Indian content globally.In addition, it will throw light on theimpact of wireless technology and thechallenges and opportunities thatconvergence is bringing to themainstream multimedia industry at themacro level and micro level. Like theway Indian companies look forpartnership with companies in the US,small and medium entertainmentEVERYBODY’S THERE! The NABShow exhibition in 2007...things will be as jampacked this year toocompanies in the US too look to work with India.The Indo American Chamber of Commerce (IACC) has partnered withNAB to provide special services to Indian delegates at NABShow. To attendor exhibit at the NABShow, visit www.iaccindia.com for details.From conception through distribution, the NABShow has proudly served asthe incubator for excellence - helping to breathe life into contenteverywhere for the past eight decades. There is no better place thanNABShow to get an understanding and showcase content to those whobuy, repurpose, deliver and distribute it across traditional and emergingplatforms worldwide. NABShow is also the best place to understand andmanage content as an electronic asset.This engagement is just the beginning. IACC and NAB will work together totake this Indo-US partnership in the M&E sector to its true potential. Lookforward to seeing you at NABShow in Las Vegas.INDO-US BUSINESS Feb-Mar 200812

AnalysisHollywood-BollywoodInitiative to Counter PiracyThe widespread success of movies with crossover appealsuch as "Monsoon Wedding" has driven a spate of filmco-production and film development deals and crossborderdistribution agreements between India and theUnited States. The natural synergies between Bollywood(the world's largest film industry by volume) andHollywood (the world's largest film industry by revenue)are finally being realized.However, increasing levels of counterfeiting and piracythreaten these partnerships. It's been estimated that theIndian entertainment industry is losing some 80 percentof its revenue to counterfeiting and piracy, and thisdirectly threatens the very viability and existence of theseindustries. The true cost to the Indian economy isundoubtedly much greater than that. For every rupee ordollar lost there is less revenue to hire people in the Indianindustry, fewer Indians paid to distribute films, records,and entertainment software, and money lost by a wholehost of Indian industries that support entertainment.Therefore, the US-India Business Council (USIBC) haslaunched the "Bollywood-Hollywood Initiative." Theinitiative includes a groundbreaking survey and studyfinanced by USIBC to determine the true cost of piracyand counterfeiting to the Indian entertainment industry; apush to ensure India's adoption of Optical DiscLegislation to combat piracy; a campaign to raise publicawareness of the detrimental affects of piracy to India;and a drive to US-India governmental cooperation incombating international, cross-border piracy -particularly of Indian films in the US and other countriesas well as US films in India.The USIBC has released the study showing huge job andrevenue losses to the Indian economy as a result of piracyin India's burgeoning entertainment industry. The study'The Effects of Counterfeiting and Piracy on India'sEntertainment Industry' prepared for USIBC by Ernst&Young India shows as much as Rs. 16,000 crore is losteach year due to piracy. As many as 800,000 direct jobsare also lost as a result of theft and piracy, afflicting India'sentertainment industry.Commenting on the USIBC-FICCI Bollywood-HollywoodInitiative, USIBC President Ron Somers said, “This study isonly the beginning. Now that we have documented thejob and revenue losses to the Indian entertainmentindustry from piracy, we intend to continue fighting piracyacross the board. We will strive to bring these findings tothe attention of the average person in India. We willattempt to enlist more effectively the U.S. and Indiangovernments to cooperate in fighting the scourge ofpiracy in India, as well as in the U.S. and worldwide. Westrongly support passage by India of optical disclegislation that willthwart piracy in thisimportant industry.We are pleased tostand shoulder toshoulder withcounterparts in Indiato help protect jobsand revenues that arenow being needlesslylost to piracy.”Somers further said,“This study estimatesINDO-US BUSINESS Feb-Mar 200814

Analysisthat the Indian entertainment industry loses some Leader, Media and Entertainment for Ernst & Young-820,000 jobs and about $4 billion each year to piracy. India, said, “Our Mumbai office collected data for thisThis is an enormous and unacceptable magnitude of loss study from on the ground via direct interviews withby any measure.”stakeholders from the Bollywood entertainment industry.We looked at the industry from every angle films, music,The study covers film, music, television and video gamesTV, radio, and electronic games. The story was the sameand has been funded by the Global Intellectual Propertyacross the board: if we can slow or stop piracy, a directCenter of the U.S. Chamber of Commerce, which aims tocorrelation in the generation of wealth and employmenthighlight the value of intellectual property, as well aswill be the result.”illuminate the adverse impact theft and piracy have oncreativity and innovation. The Bollywood-Hollywood Also previewed at FICCI FRAMES as a part of theInitiative promotes the sustainable growth and Bollywood-Hollywood Initiative was 'Illicit The Dark Trade'convergence underway between the entertainment a special documentary that airs world-wide, produced byindustries in both India and the US. National Geographic for the U.S. Chamber ofCommerce's Global Intellectual Property Center. ThisThe Media and Entertainment industry in India is todaymade-for-television documentary shows that the problemregarded as an industry of the future. India'sof piracy is an epidemic affecting many sectors of worldentertainmentindustry already generates more than $11wide dimensions.billion annually for the country, growing at a combinedannual rate of over The U.S.-India Business Council, formed in 1975 at the18%. If piracy is request of the Government of India and the U.S.stopped, these Government to advance U.S.-India commercial ties, isi n d u s t r i e s a r e hosted under the aegis of the U.S. Chamber ofexpected to grow Commerce. The U.S. Chamber of Commerce is theeven faster and world's largest business federation representing moreemploy more than three million businesses and organizations of everyIndian workers. size, sector, and region. The U.S.-India Business Councilcelebrates its 33rd Anniversary at the U.S. Chamber ofFarokh T. Balsara,Commerce on June 12, 2008 in Washington, D.C. National SectorBartronics' US subsidiaryacquires two US firmsBartronics America Inc (BAI), a Delaware-based wholly-ownedsubsidiary of Bartronics India Ltd, has recently announcedacquisition of assets of US-based Proximities Inc and SoftwareResearch Group (SRG) America Inc for a deal pegged at $50million.These acquisitions will help Bartronics develop and deploy radiofrequency identification (RFID)-based applications to streamlinetraditional RFID-based services such as access control, ageverification, identity management, and other new and expandedRFID applications for its clients.Ronald R. Carney, former CEO of Proximities, Inc, will nowfunction as CEO, BAI, in charge of the RFIDdivision. "The applications for this technologyare endless," said Sudhir Rao, ManagingDirector, Bartronics India Ltd in a statement."Combining our flexible, efficient, and deepservice offerings with Proximities - technologywill allow our clients to reduce the frictionpoints associated with RFID-basedtransactions and improve customer service.Proximities, Inc. is a privately-held companyheadquartered in Melbourne, FL. Thecompany develops and markets secure RFIDcashless payment, access control and ageverification solutions.In January 2008, BIL raised $50 millionthrough an FCCB issue to fund theacquisitions and its overseas ventures. INDO-US BUSINESS Feb-Mar 200815

EconomyUS Initiates Steps for Growth,Hope Now for HomemakersThe Bureau of Labor Statistics of the United States hasrecently released new jobs figures for February. Theunemployment rate decreased to 4.8 percent, below theaverages for the past three decades, but non-farm payrollemployment decreased by 63,000 jobs. The USeconomy has added about 860,000 jobs over the last 12months an average of 72,000 jobs per month and morethan 8.1 million since August 2003.The U.S. economy is structurally sound for the long term,but growth has slowed. Real GDP growth slowed to anannual rate of 0.6 percent in the fourth quarter of 2007.While that rate of growth was disappointing, it followed astrong pace of growth in the second and third quarters.Both the Administration and private-sector forecastersstill project that growth will continue in 2008, albeit at asomewhat slower pace than in 2007.The President and his Administration are taking action toaddress economic uncertainties and to keep the USeconomy growing.In February 2008, President Bush signed into law aneconomic growth package that will protect the health ofthe country's economy by putting money back into thehands of American workers and businesses. This growthpackage meets the criteria the President laid out inJanuary it amounts to more than $152 billion, or aboutone percent of GDP, provides tax rebates to more than130 million American households, and offers temporarytax incentives for businesses to invest in their companiesand create jobs this year.Treasury Secretary Henry Paulson is working to ensurethat Americans receive their rebates as quickly aspossible. This week, the Treasury Department begansending out letters alerting people that they may beeligible to receive up to $600 for individuals and $1,200for couples. Eligible families would also receive anadditional $300 per child. These rebate payments areanticipated to start being sent out in the second week ofMay.Housing Market & Hope NowAs regards the Housing Market Transitions, theAdministration is helping responsible homeownersacross America through a series of targeted actions.Treasury Secretary Paulson and Housing and UrbanDevelopment Secretary Alphonso Jackson are leading anaggressive plan to help struggling homeowners refinancetheir mortgages and make the financial adjustmentsnecessary to get through this difficult time.Both Paulson and Jackson facilitated creation of theprivate-sector HOPE NOW Alliance, which hasdeveloped multiple strategies to help distressedhomeowners. HOPE NOW is a cooperative effort amongmortgage counselors, servicers, investors, and lenders tomaximize outreach efforts to struggling homeowners indistress and to help homeowners refinance into a newmortgage or receive a modification. HOPE NOWmembership now covers over 90 percent of the subprimemortgage market.In February, HOPE NOW announced the new ProjectLifeline initiative, which will help more Americans keeptheir homes by giving servicers a new tool to reach out toseriously delinquent homeowners. Project Lifeline offers,where appropriate, to "pause" the foreclosure process for30 days while other longer-term solutions are explored.Recently, HOPE NOW announced that, since July, morethan one million homeowners have been helped with aworkout either a loan modification or a repayment plan.Of these, more than 638,000 were for subprimeborrowers.The Federal Housing Administration (FHA) helped morethan 100,000 families refinance their homes. In Augustlast, the President and his Administration launched a newinitiative at the Federal Housing Administration calledFHASecure. FHASecure expands the FHA's ability to offerrefinancing by giving it the flexibility to work withhomeowners who have good credit histories but cannotINDO-US BUSINESS Feb-Mar 200816

Economyagreement will immediately eliminate tariffs on more than80 percent of American exports of industrial andconsumer goods, and it will provide significant new duty-free access for American agricultural commodities.The US-Colombia free trade agreement will alsostrengthen the country's national security by sending aclear message to a key democratic ally. This tradeagreement will bring new economic opportunities toColombia's citizens and will reinforce democracy byfighting corruption, increasing transparency, andfostering accountability and rule of law.FTA With KoreaThe KoreaUS (KORUS) FTA is the most commerciallysignificant FTA the US has concluded in the past 15 years.This agreement will open a growing market of 49 millionconsumers to the full range of U.S. goods and services.More broadly, the KORUS FTA is a powerful symbol of theUnited States-South Korea partnership, strengtheningbilateral relations with one of America's most importantand reliable allies in Asia.Expanding trade expands prosperity, but the Federalgovernment has a responsibility to help those who areadversely impacted by trade. The President has askedCongress to reauthorize and reform trade adjustmentassistance, so we can help displaced workers learn newskills and find new jobs.Tax ReliefPresident Bush believes the most important action toensure the long-term health of our economy is to makesure the tax relief that is now in place is made permanent.The 2001 and 2003 tax cuts are set to expire in less thanthree years. If Congress allows that to happen, 116million taxpayers will see their taxes go up by $1,800 onaverage, and we will see an end to many of the measuresthat have helped the economy grow including the 10percent individual income tax bracket, reductions in themarriage penalty, the expansion of the child tax credit,and reduced rates on regular income, capital gains, anddividends.afford their current payments. FHA expects this programto help more than 300,000 families in total by the end ofthe year. In addition, hundreds of thousands of otherhomeowners worked out their own refinancings withprivate lenders over the latest half year in 2007.In December, President Bush signed the MortgageForgiveness Debt Relief Act of 2007, which will helpAmericans avoid foreclosure by protecting families fromhigher taxes when they refinance their home mortgages.This Act created a three-year window for homeowners torefinance their mortgage and pay no Federal taxes on anydebt forgiveness they receive.Congress Must Also Take Action By Passing ResponsibleLegislation That Helps Homeowners Without Bailing OutSpeculators And Unscrupulous Lenders.The President remains deeply concerned about thehousing issue and strongly believes that governmentassistance must be responsible. The President will notsupport legislation, like the bill recently considered in theSenate that would do more to bail out lenders andspeculators than to help American families keep theirhomes. This measure would actually prolong the time ittakes for the housing market to adjust and recover, and itwould lead to higher interest rates.President Bush continues to call on Congress to quicklypass responsible legislation modernizing the FederalHousing Administration. A modernized FHA that isgranted appropriate pricing flexibility could helpthousands of homeowners by the end of this year, andpassage of this bill is the appropriate next step to helpbring stability to the housing market for years to come.The President first sent his FHA modernization bill to theHill in April 2006 now is the time for Congress to act.Congress should also act to strengthen the regulation ofFreddie Mac and Fannie Mae to ensure they areadequately capitalized and focus on their importanthousing mission.Approving the free trade agreements with Colombia,Panama, and South Korea will contribute to U.S.economic growth. Exports now account for a larger shareof our GDP than at any other time in history, and jobssupported by goods exports pay wages 13 to 18 percenthigher than the national average.The U.S.-Colombia free trade agreement will level theplaying field, helping U.S. companies that export toColombia increase sales and compete more effectively inthe Colombian market and strengthening our nationalsecurity. Over 90 percent of U.S. imports from Colombianow enter the country duty-free, and this agreement willprovide U.S. companies and farmers with duty-freeaccess to the Colombian market. Once implemented, theINDO-US BUSINESS Feb-Mar 200817

PerspectiveIndia can beGlobal Manufacturing HubRakesh Shah, Chairman, Engineering Export PromotionCouncil (EEPC) believes that “one day India will becomethe factory of the world,” meeting every manufacturingneed of the corporate sector. Shah thinks that SMEs canplay a crucial role in contributing to Bengal's economy andturn it into India's manufacturing hub. Excerpts.EEPC was established in 1955 for thepromotion of engineering products. How willyou analyze this long journey?As we all know, the whole economy has changed a lotwith the time. The global economy has transformed froma protected market to a open market economy. Today it'sa Global village. So with the time we have also changedand metamorphosed ourselves. Also, the priority ofexports has changed. We started with spices and now weare exporting automobiles. EEPC has done a lot tochange the export scenario of the country. The main thingwhich we have done is that we have developed the SMEsector and I think that the SMEs in a country can becomethe backbone of that country's economy if we can developthem in a proper way. We have also successfully turnedengineering into a sector that has contributed to thecountry's economy in a very big way.What are the problems you think the SMEs facein our country? What steps should EEPC and thegovernment take to help them overcome suchproblems?There are actually three problems which the SMEs face inour country and they are finance, market identificationand technology.The government started some very useful programmesunder which it has started giving support to the SMEs. Ithink this is a very welcoming gesture because thegovernment is laying stress to enhance the technology ofthese small players in the market so that they can increasethe productivity. They can also set up R and D labs ortesting labs or they can also create a common facility labwith the help of the government. I would also like to give asmall suggestion to the SMEs that they also have to lookbeyond the box so that they can increase the reach and itwill also help them to increase their market share. In thesector of finance I would like to urge to the banks andother financial organizations that they also have to comeforward and be a bit lenient in giving financial support tothe SME sector.Once there is a guideline from the Reserve Bank of India(RBI) to the banks, they have to release a certain amountof funds to the engineering sector. This facility is there butis applicable now for the agricultural sector. So I amrequesting RBI that they should again start this and helpthe engineering sector to regain its past status. The banksshould disburse certain amount of money to theengineering sector so that the SMEs get the requiredfinancial backup which they need. I think in this field theGovernment has to act proactively and also EEPC is verykeenly pursuing this matter.You are doing business in Bengal for a longtime, so do you agree that Bengal is emergingas a new industrial power?If you compare this last 10 years with the time before thatthen you can say that Bengal has done remarkably well inthe field of industry. The West Bengal government isacting very proactively and I think that is the reason we areearning the confidence of the businessmen from aroundthe world.But at the same time if you compare our state's progresswith some other Indian states then I think we are still veryfar behind and we have to cover a long distance. Tobridge this gap the state government has to play a veryactive role and has to be more fast in implementing anyidea. To do that I think the government has to understandthat the economic issues are more important than thepolitical issues. The mindset also has to change. If we cando that if the government can percolate this whole thingdown to its employees' level, then only the state can reachits goal.The steel industry in the state appears to beINDO-US BUSINESS Feb-Mar 200818

Perspectiveflourishing. About 250 companies have beenset up in the last few months. What is youropinion about it?I have always thought that West Bengal has a lot of we cannot just train him to be a BPO executive butpotential in the field of steel. The state has huge resources definitely we can train them to become a skilled labourerneeded to produce steel, though we are deficient in iron through some vocational training.ore. The state government has to look into it. Also the On one hand there is rupee appreciation andpower backup has to be there as we all know that the steelon the other there is a 10 percent hike in steelindustry is a power-intensive industry.prices after the budget. As you said “it isBengal is ranked seventh among states in the only sympathy for the exporters fromfield of export. What exactly we should do to P. Chidambaram” Please explain what shouldimprove the current situation?the exporters do to cope with this scenario?How important it is to improve themanufacturing industry on a par with othersectors such as IT?because it can also earn a huge amount of revenue forour country.For example if a farmer does not want to do farming thenTo improve the export scenario of the state we have to lay The rupee appreciation is a big blow to the export sector.emphasis on the areas where we have control. For The export level has gone down. Because of this reasonexample, we are strong in the field of engineering, we have lost a huge number of jobs. For every crore ofleather, fruits and agri-products. We also have to improve rupee there is a loss of 44 jobs. Exports are the mostour SME sector because it can give tremendous support neglected sector because till today we do not have ato the state economy. At the same time SMEs can provide ministry which can help us or can guide us through thisemployment to a large number of people. We also have bad phase. The Union Ministry is obviously veryto try very hard to stop the intervention of labour unions in sympathetic but ultimately it is not doing anything for us.the industry. If we can get all these things done then only Right now the only solution for us is zero duty import onwe can gain a position in the field of exports.steel. I think this can help us a bit to improve our currentscenario.The manufacturing industry is the backbone of any stateor any country. Because as we have seen that the ITindustry is running through a very good phase in ourcountry so at the same time we also have to keep in mindthat we have to improve our manufacturing industryWhat is your dream for EEPC and Bengal?Bengal has great potential as the cost of labour in thestate is very low. I would also like to see Bengal becomethe manufacturing hub of the country. I also hope thatone day India will become the factory of the world. As faras EEPC is concerned, I would like more growth from theSME sector so that our economy becomes more robust. TCS to set up IT learning centre in GuwahatiAssam is now poised to make it to the IT map of India and science graduates from this area.”with the country's leading IT services company TataAjoy Mukherjee, Vice President and Head, Global HR,Consultancy Services (TCS) deciding to set up alearning centre at the Indian Institute of Technology, TCS, said, “The abundance of high quality talentGuwahati (IIT-G).available in the Northeast will be highlighted on aglobal scale through our initiatives. We plan to hire theTCS, the leading business solutions and outsourcing faculty for the training centre as well as fresh graduatescompany, will also initiate jointly with IIT-G collaborativefrom colleges in this area and make them an integralresearch work on mutual interests.part of TCS”.TCS inked two MoUs one with Government of AssamAs per the MoU, TCS trainees will have access to alland the other with IIT-G recently.facilities on the IIT-G campus, including classrooms,Chief Executive Officer and Managing Director of TCS, library as well as sport and recreational facilities.S. Ramadorai said, "TCS has always been a pioneer indeveloping talent in India. We have been delighted with Assam Chief Minister, Tarun Gogoi, while attending thethe level of talent emerging from Northeast India and by MoU signing ceremony, called it as a red-letter day forsetting up a dedicated training centre here, we can give Assam. “I will meet Tata Group chairman Ratan Tata fora strong fillip to the human capital development efforts developing this centre into a full-fledged softwarein an inclusive manner by hiring and training engineers development centre”. INDO-US BUSINESS Feb-Mar 200820

Success StoryRolta Acquires TUSC, Expands US OperationsRolta, one of India's leading IT companies, specializing in TUSC holds a global reputation as a source ofGIS/GeoSpatial Information Systems, Engineering unsurpassed expertise in high-end consulting for large-Design, and Enterprise Information & Communications scale ERP applications, Fusion Middleware, BusinessTechnology, has announced recently the acquisition of Intelligence and core Database Technology. TUSC is oneBroech Corporation, doing business as “TUSC”, an IT of only a handful of companies worldwide that have theConsulting Company specializing in ERP applications as highest level of Partner certification for both ERP andwell as Database and Business Intelligence solutions, Oracle Technology. TUSC currently has five “Oraclebased on Oracle technologies.Master” level consultants on its staff, giving the companyan unmatched reputation globally for outstandingThe consideration for this transaction is about US$ 45expertise in Oracle technologies. Over the years, TUSCmillion, including escrows and earn-outs. Rolta expectshas published many books that most consider standardthis transaction to be immediately accretive toreference material for any Oracle specialist. This trackshareholder value in the current fiscal year ending in Junerecord enabled TUSC to win Oracle's most prestigious2008.award - the TITAN award, for the third time, as an OracleAs a part of its systematic and aggressive growth plans, Partner in 2007.Rolta has adopted a clear acquisition strategy of takingTUSC has also developed and owns a broad range ofover companies that provide a synergetic mix ofintellectual property. For example, one of its softwareTechnology and IPR, enabling Rolta to move up the valueproducts 'Periscope' is an advanced Data Mining andchain for addressing complementary markets. This is theVirtualization tool that helps customers access theirsecond acquisition by Rolta in a span of six months andenterprise data from disparate data base platforms,will bring to Rolta a strong portfolio of products anddrastically reducing the cost of integrating andcustomers; improved access to complementary marketsadministrating multiple data sources residing on differentand industry service lines; and strengthen its globalsystems. Their 'Knowledge Framework' is industry leadingdelivery model; while continuing to leverage its existingand has won various Best Practices awards. Their 'realcorecompetencies in the GeoSpatial and Engineeringtime database monitoring and pro-active alert' softwaredomains.suite is in use by many Fortune 500 Companies, acrossTUSC is headquartered in Chicago, with excellence 1000+ databases.centers and offices across the US that are staffed by overThe three founders of TUSC, Rich Niemiec, Joe Trezzo160 consultants. Established in 1988, TUSC has servedand Brad Brown, will continue to lead the company. Theirover 2000 customers in diverse sectors like Utilities,leadership of various Oracle User Groups andEnergy, Engineering, Manufacturing, Finance, Insurance,participation in Oracle Technology advisory councilsRetail, Government, Healthcare, Services,evidences their standing in the industry, duly recognizedTransportation, and Technology. Over 50% of revenuesby awards, like the Ernst & Young 'Entrepreneur of theare generated from repeat business. TUSC is a profitableYear' award. With each having over 20 years ofCompany and its 2007 revenues were in excess of US$48experience, this management team brings a wealth ofmillion, with a CAGR of more than 30% over the past 4experience to Rolta. As a wholly owned subsidiary ofyears. The Company has been listed twice on the 'Inc.Rolta, TUSC will continue to lead its operations from500 Fastest Growing Private Companies' list in the US.headquarters in Chicago, USA.INDO-US BUSINESS Feb-Mar 200821

Success StoryTUSC's offerings are focused towards mission-critical Deployment services worldwide. Rolta, through its jointapplications, providing significant opportunities in the venture Stone & Webster Rolta Ltd., providesRolta customer base, especially in the Engineering and comprehensive Engineering, Procurement andUtilities sectors because of a workflow that requires the Construction Management (EPCM) services to meetintegration of Design, Engineering, Mapping and ERP. turnkey project requirements of power, oil, gas andThe continued development of Fusion Applications by petrochemical sectors. Rolta's joint venture with Thales,Oracle presents another significant opportunity for this France, leverages a broad spectrum of cutting-edgebusiness. While today TUSC operates completely on a US technologies, systems and solutions from Thales, andbased delivery model, by leveraging Rolta's offshore Rolta's leadership position in the Indian market. This JVinfrastructure and domain expertise, the Company takes advantage of the technology transfer from Thalesexpects TUSC's businesses to achieve better margins, for developing state-of-the-art C4ISTAR informationhigher scalability, and provide greater value to customers systems, for domestic and international markets. Roltaworldwide.has acquired Orion technology Inc. a Canadian softwareand integration company specializing in enterprise WebK. K. Singh, Chairman and CEO of the Rolta group, said,GIS Solution. Rolta, headquartered in Mumbai, employs“We are extremely pleased with the acquisition of TUSC4000+ professionals with countrywide infrastructure andwho shares our passion for excellence. This brings intointernational subsidiaries across the globe and is today athe Rolta fold, a company that has strategic maturity,strong player in the Infrastructure, Defence, Homelandexceptional technology, commendable work ethic,Security and Enterprise Information & Communicationestablished branding and a strong portfolio of high-endTechnology (ICT) markets. Forbes ranked Rolta as one ofconsulting services. We will now be able to provide"Asia's Best 200 Under a Billion" for the fourth time in theEnterprise level solutions to our customers worldwide,last six years. The Company is listed on the NSE in cashthereby increasing the value for our stakeholders”.and F&O segment and forms part of CNX IT, NIFTYRolta is an Indian multinational organization that has Midcap 50 and CNX 500 indices. The company is alsoexecuted projects in over 35 countries. Rolta is a leading listed on BSE 'A' group and forms part of BSE Midcap, BSEprovider and developer of Information Technology based 200, BSE 500, BSE IT and BSE TECK indices. TheGeoSpatial Information Systems (GIS), Engineering Company's GDR is listed on the Main Board of LondonDesign Services, Software Development, Advanced Stock Exchange and its FCCB's are listed on theSecurity, Network Management, ERP Consulting and Singapore Stock Exchange. McDonald's to expand India BusinessMcDonald's India is setting up a food processing plant in in Punjab, he added, Currently, we are procuring aboutthe northern region. Though the location is yet to be 2,200 metric tonnes of vegetables like peas and onionfinalized, the proposed plant is likely to be set up either in from Punjab and further 600 metric tonnes of wheatPunjab or Haryana with an investment of Rs 100 crore. annually which is likely to go up by 2,000 metric tonnesAlso, it has plans to set up a distribution centre in this in the near future. So, in order to process the vegetablesregion in addition to Delhi, Mumbai, Kolkata and locally, we are planning to set up a food processing plantBanglore.with an investment of Rs 100 crore, in this part of thecountry. The location is yet to be finalized, but it may beFurther, to fuel its growth rate of 40 percent, McDonald'seither of the two states (Punjab and Haryana). Further,India and its suppliers will be investing Rs 400 crore inwe plan to set up a distribution centre in this region. Thethe next three years. The organisation plans to open 40company today opened its second restaurant inrestaurants and create about 1,800 jobs by the end ofChandigarh.this year.He further added, with the opening of this restaurant, the"Out of the total investment, in northern India, we wouldtotal number of Mcdonald restaurants in India goes upbe investing close to Rs 200 crore. Further, we aim to setto 131, with 77 in the northern and eastern regions andup 5 more restaurants in Punjab including in cities like53 in the southern and western regions. In the northernRopar and Patiala," said Vikram Bakshi, managingregion, the company has 33 restaurants in Delhi, 21 indirector, Connaught Plaza Restaurants Ltd, one of theUttar Pradesh, 11 in Haryana, Punjab four, Rajasthantwo joint venture partners McDonald's has in India.three, and one each in Uttaranchal, Chandigarh andCommenting upon the proposed food processing facility Himachal Pradesh. INDO-US BUSINESS Feb-Mar 200822

Face-To-Face'You Can Startan IT Firm inJust 24 hoursIt is true that Bengal has lostmany growth opportunitiesin IT for being a late starter.Dr. Debesh Das, the newMinister In-charge of ITDepartment of WestBengal, does not want to bebogged down by Red Tape.Rather he wants to beahead of many states in thecountry and would like totake special care and giverequired emphasis onhardware, its chip designrelated activities in thestate. He looks quitedetermined and firm in hisstand to provide all possibleback-up support to theaspiring firms which arekeen to invest in the state.Special CorrespondentSubhajit Bhattacharyaspoke to Dr. Debesh Dasabout his IT agenda.Excerpts.What role do you think IT has played to bring WestBengal to this stage of industrial resurgence?The IT industry has played a very great role to project West Bengal as adream destination. The IT industry in the state posted a growth of 46percent last year (2006-2007). Right now there are about 55,000people who are working in the IT industry. Though there still is a hugerequirement in the field of IT in West Bengal and I think that by 2010 theindustry will employ about 200,000 people. Also I would like to informyou that 20 million square feet of land has been allotted to the IT industryin West Bengal. We are also trying our best to provide additional land tocompanies such as WIPRO, Infosys and ITC Infotech. We are also veryeager to promote the Hi-tech industry in Bengal. We have already given150 acres of land near IIT Kharagpur, from which land will be given tosome advanced IT companies in the SemiConductor field. Also we havestarted to build a unique structure at Salt Lake Sector 5 which will beknown as India Design Centre. The uniqueness of this building is that indifferent floors we will have different facilities. For example on the firstfloor we will have a training centre for IT professionals. On the secondand third floors we will have the chip design industry. And on the fourthfloor we will have an incubation centre. From our state IT department weare trying our best to promote certain industries such as the chip buildingindustry, the multimedia industry and the wireless industry in the state. Sofrom this I can say that we are definitely playing a very key role in thedevelopment of West Bengal.Do you agree that West Bengal started late in the fieldof IT?Yes I do agree that we are a late starter in this field. We started almostafter five years late in comparison with other states of India. But at thesame time if you see our growth rate then you can see that it is very highand that is the only reason we are one of the best players in the ITindustry.Which are the main factors which you believe hasINDO-US BUSINESS Feb-Mar 200823

Face-To-Faceattracted the IT giants like WIPROCOGNIZANT to set up their base in thestate?West Bengal has now the best infrastructure in thecountry. We offer world class IT hub facility at Rajarhatwhich is situated within 10km from the airport. TheRajarhat project is spread on 300 acres of land and wevery firmly believe that we can offer any world classfacilities to any big IT farm who ever wants to establishtheir base in Bengal. Also we are offering abundant andcheap power to all the IT firms. The main resource whichBengal has is the huge English speaking population anda huge number of talented IT professionals. We haveinstitutes like IIT Kharagpur. Also, we have the StatisticalInstitute which is one of the best research institutes in thecountry. We are also coming up with an Indian Institute ofScience. We also have IIM Joka and Universities likeCalcutta University and Jadavpur University. So you cansee that we have a huge bank of resources in our state.Law and order situation in the state is good in comparisonto other places such as Delhi, Bangalore or Mumbai. Thestate Government is also trying to make business friendlypolicies so that the businessmen do not have to run fromone door to another to open a company in the state. Soin a nutshell I can say we as a state have tried and I thinkwe will definitely be the best and will give West Bengal arobust economy.Which are the sectors do you think that thestate IT ministry should focus more to turnWest Bengal into a dream IT destination inIndia?I think its time that we should place more and moreemphasis on promoting the Hi-tech and software industryalso we should establish the chip industry in the state. Weare also trying to promote the hardware and fabricationlab in the state.After the Rupee appreciation the exportmarket of India is badly affected.Outsourcing works are diverted toPhilippines and Myanmar and even to SriLanka. How do you think we can combatthis problem?I agree to this point that outsourcing is a major issue in USand UK and as you have said that the works are beingdiverted to other neighbouring countries. But I would liketo point out to this fact that the quality of work which we asa country provide to the world is the best and there ishardly any comparison to that. So this is our biggeststrength. At the same time we also have to promote moreand more Hi-tech and software companies to meet thecrisis.What initiatives are being taken by the stateIT Ministry and WEBEL to promote the localIT companies of Bengal?Our main objective is to promote the software industry ofthe state. We are trying to promote those IT companieswhich work on patents and royalties. We are also trying topromote those companies that could design softwareproducts. We have also taken some good initiative suchas if a guy comes to us with an idea to start a softwarecompany then the State Government will act as anventure Capital company and will fund the project. Alsowe have started a training subsidy programme where if acompany has scarcity of funds in training their staff thenwe will provide them with adequate backup to train theirstaff. For this programme only small and medium scale ITfirms are eligible.We have already set up two offices one in Kolkata andother is in Durgapur. These offices are called incubationcentres. The Kolkata office has a strength of 300 peopleand the Durgapur 100 people. So now if anybody comesto us with an intention of opening an IT firm in the statethen it is just a matter of twenty four hours and you canstart your new company.As we know that cities like Durgapur,Asansole and Siliguri are also becomingnew IT destinations. How much do youthink that they can succeed?The state Government is trying very hard to develop theseplaces simultaneously with Kolkata. Already eightcompanies started operating in Durgapur two companiesin Siliguri. About 2,000 people got jobs in those places.Also we have taken 200 acres of land in kalyani and wewill turn it into an IT hub as soon as possible.Where do you expect to see West Bengal ITindustry in five years?I am very much hopeful about the future of the IT industryin Bengal. Big giants like INFOSYS and WIPRO arespreading their wings in Bengal. Also VIDEOCON hasannounced that they will also come up with a fabricationcentre very soon. Also we are trying to build an amplenumber of hardware companies in the state. So verystrongly I hope that our noble endeavour will succeedand after three years IT will provide employment to about600,000 people in Bengal.INDO-US BUSINESS Feb-Mar 200824

InterviewVedic Village A Perfect Holistic WellnessDestinationVedic Village is a Spa Resortlocated on the outskirts ofkolkata. Over a period, it hasemerged as a perfect HolisticWellness Destination. It issurrounded by 125 acres of lushgreen fertile organic farm landand natural ponds. It has alsothe only Medical Resort Spa inBengal. Special CorrespondentSubhajit Bhattacharya spoketo Vedic Village ExecutiveDirector M.J. Robertson aboutthe group's future ventures andalso the realty scenario in WestBengal.How Vedic Village started?The Vedic Village is the brainchild of thecompany called Vedic Realty Limited whichis formerly known as Sanjeevni ProjectsPvt. Ltd. At first when we stepped intoBengal's territory, we started with a housingproject at Dum Dum. Though the projectwas very small with only 350 apartments, itwas there that we first started the idea ofthe Club in a housing estate and that is thefirst of its kind in Bengal. Now you can seethat many of he realtors speak about theclub facility but I am really skeptical aboutthe facility which they provide. The DumDum project was a huge success for usthen we again started with another projectat the same place known as Space Towncomprising 550 apartments. We alsoequipped this project with another sortafter world class club called Space Circle. Ican very confidently say that the level offacilities which we provide in this club, youcan easily compare them with anyinternational clubs in the world.When we started the Vedic Village ideathen our basic purpose is to venture intothe area of health and wellness. We alwaysknew that India has a huge bank of Ayurvedic medicines so we targetedthat area. There has never been a proper marketing in this field so wetried to do that on an upper scale. Then in West Bengal we first startedthe idea of the Medical Resort Spa, which is considered the best in itscategory. In this kind of Spa you can not only get comfort but at the sametime you can also get medication. At the same place we made smallbunglows where people can come and stay at the same time if they wantto buy then they can do that also. So actually we used this project in bothways, as a property which is saleable and also as hotel where people cancome and stay and get their Ayurvedic treatment.What made you to choose Bengal as your destination?Our groups chairman Raj Modi is a man with great vision. As you knowthat always the first comers get the maximum profit so to be very true wewanted to do that. Because I always think that Bengal has a greatpotential and also the government always have the eagerness to dosomething for the state so that is the reason we chose Bengal. Also I amborn and brought up in Bengal I also worked as CEO of the Tollyclub so Iknow this place very well so these are the reasons which actually helpedus to venture into Bengal.Do you think the Vedic Village can be a touristdestination in Bengal? Which are the fields you thinkthe government should lay more emphasis on todevelop medical tourism in the state?Definitely, I think Vedic Village can be a part of the tourism spots inBengal because this is the only place where you can get a glance ofmedical tourism. I have been to the Berlin tourism fair which is the largestof its kind in the world and I this year actually represented Bengal alone atthe fair. So I would definitely say that the participation from the Bengal'stourism industry has to increase. We have to build up a robust scenario sothat we can easily woo the tourist in the state. I cannot alone market myproperty in an international fair. I also at the same time have to marketINDO-US BUSINESS Feb-Mar 200825

InterviewBengal as a package then only we can change thepresent scenario of tourism in the state. We also haveto lay stress on developing the infrastructure of thestate. Our honourable Minister ManabendraMukherjee is a very active person and I have greathopes on him and I know that he will do it.Bengal's industrial scenario is changingfor the better. At the same time the realtyand the hotel industry are enjoying aboom. Do you think that there is a realdemand in the market?There is no doubt about Bengal's resurgence. It's astage of development. When we started in Bengal withVedic Village project then the we charged 200 dollarsfor each room. People said that the price range was toohigh for a place like Bengal. But now we charge 300dollars for each room and people are buying. Nowpeople will spend and they also have the power tospend but at the same time you also have to keep inmind that you have to give them the best quality whichwe always tried to give to our customers in VedicVillage. Now the requirement has also increased westarted with 18 rooms now we have 200 rooms so youcan easily see that the demand has increased.As the industry will grow in the state at the same time thewhole scenario will change. I have great hopes for Bengal'sIT industry as it has a great potential. There is obviouslygreat demand in the market. But we have to be more agile indelivering in the results. Because customers today want toget the best in a very short time. The realty industry has onlyextended up to 10 km from the city. So there is a hug spacestill left to develop but at the same time the government hasto be more conscious about the wetland issues. Thoughthere is a huge development in the realty and hotel industrybut I think in the long run only the big players can survive. Ifthe small players has to stay in the market then they have toshake hands with the big players in the market.What are your hopes and plans for Bengaland Vedic Village?I have great hopes for Bengal. We also have big plans forBengal in future. Vedic village also is growing in a very fastway. We are coming up with another Vedic Village project inNeemrana, a place between Delhi and Jaipur. We are alsotargeting to raise our turnover to Rs 2,500 crore in the nextfew years.Pailan - Growing from LandDevelopment to Goat FarmingA dreamer and son of Bengal, Apurba SahaFounded and built the Pailan Group of which todayhe is the Chairman. Special Correspondent SubhajitBhattacharya spoke to Saha about the group'svision and future plans and about the boomingBengal in general.Tell us about Pailan Group…I started the Pailan group 15 years ago from a single company. Now, by Godsgrace this company has about 7-8 companies under its banner. I am anundergraduate but from the very first day I have great dreams which I nourishedand nurtured and now you can see the result in front of you. When I started offwith the project in Pailan and brought the land, there were hardly any kind ofdevelopment out here. This Pailan is known as a place which is full of goons andantisocial elements. So at the initial stage I have to face and confront manytypes of blockage. So by overcoming all of them I started with a project ofmaking 900 plots for government employees. Then I started PailanManagement college, which isnow one of the best colleges inIndia. Then I started Pailan WorldSchool which is the firstinternational school in Bengal. Mymain motive is to develop theeducational infrastructure of thestate. Because I think that byproviding good education to thenew generation we can produceINDO-US BUSINESS Feb-Mar 200826

Interviewgood resource in the state which will definitely play amajor part in this industrial boom in the state.What is your opinion of the new industrialpicture in Bengal?I would say as a businessman that definitely we are a latestarter. But I am happy that this industrial boom started.The last eight years' period has been the most effectivetime for Bengal. Now we have to start with new endevourand zeal to make up for the lost time. This new era ofindustrialization is like a boon to Bengal's economy. At thesame time we have to keep in mind that we have todevelop the infrastructure of the state to woo morebusiness tycoons like the Tatas or Reliance to the state.Do you think the local businessmen willprofit from this industrial boom in Bengal?Do you think they have played a part toproject the state as a desired destinationglobally?Definitely, I think the local businessman will profit fromthis boom and also if companies like the Tatas or Reliancecomes to the state. For example, I have bought land justfew kilometers from the plot of the Tata project. So now ifthe Tatas come and build their small car factory in thatland then automatically the communication system ofthat area will also develop and at the same tome we willalso get the benefit because of them. But we also have toamalgamate with this big names so that we can getmaximum profit from them.I think the local businessmen played a major role toproject West Bengal in a big way. I would also thank thegovernment for their endless efforts and I would thank ourchief minister for all the good things which are happeningin the state.We all know that Bengal is an Agro-basedstate. Do you think Bengal is ready forthings like contract farming?We all know this fact that Bengal is an Agro-based state.But at the same time we also have to keep in mind that wehave to survive in this fast changing arena ofglobalization. Because of this reason, we might have tosacrifice certain lands. All these problems which you arewitnessing in Singur are entirely man-made. Because thelocals do not have time for such things. Rather I would saythat they are very happy with this kind of development inthe area.What are the future plans of the Pailangroup?We are now venturing into the Agro-based industry. I thinkthis industry has great potential in the global market. Sowe first started with potato seeds import. We used toimport the potato seeds from France. Now we arethinking of making potato flakes and we will export themto countries like the US, UK and to the Scandinaviancountries, because there is a huge market in thosecountries. If you see the statistics then you can see that thepotato consumption rate in India is about 15-20%whereas the potato consumption rate in the westerncountries is as high as 80-150% so you can easilyunderstand that the demand is very high. To start thisproduction we have already started building coldstorages and we are also taking potatos directly from thefarmers. By the end of this year when this project will be infull swing then we are hoping to produce 10000 flakes atthe initial stage.Another project which we will soon venture into is thegoattary project. This is dream project of mine after myPailan World School. Under this project we will startproducing small black goats then we will sell its processedmeat to the market. These meats have great demand inthe western world because they are fat and cholesterolfree. The main problem which we are facing in doing so isthe absence of resources. So we are taking the help of theself help group. We have already started it in the threedistricts of Purulia, Birbhum and Bankura. We alsocontacted the dist administration. They will also help us inmaking homes for the goat farmers. They will createbreeding centers. If this project succeeds then each of theself help group will earn up to 10,000 per month. There isso much of demand that about three lakh goat farmerscan earn their living from this project. The initial projectwill cost around Rs 12,000 crore. I think this project hasgreat future because if you look at Vietnam of Australiathen you can see the difference which they have earnedfrom this industry.What do you think about Bengal's future?The future of Bengal is very bright because the economy isbooming. Whatever the scenario was before five years,now everything has changed a lot. The city is famous forBandhs and strikes. This will also change because if thereare jobs in the market then the this bandh scenario ofBengal will also change. We also have to build goodinfrastructure to woo more businessmen. I want to seeWest Bengal to become the Rome of 21st century. INDO-US BUSINESS Feb-Mar 200827

InterfacePaving the Path for‘Best Bengal’Sanjay Budhia is a man brimming withenergy and a sense of purpose. He is theManaging Director of Patton Industries.Special Correspondent SubhajitBhattacharya speaks to Budhia in a candidinteraction to know the secret behind hisand Bengal's success.What is your opinion on the rise of newBengal?I would say that this is the time for Bengal. The timewhen people in the global market are looking at it withhope. I think businessmen are very happy and eager toinvest in the the booming economy of Bengal. I don'tthink its only IT. If you look at the agro industries andpharma then you can realize that every industry is at avery good stage in West Bengal. The government isalso very eager to help and develop the market assoon as possible so that they can woo maximumnumber of businessmen into the state. Now thegovernment is also trying to promote themanufacturing industry and the main aim is to createmore and more jobs in the state. Tata's small carindustry is a boon to the state's economy and as far aswe know that it will be in full swing from the mid of thisyear and will help give jobs to thousands of people.We all know that West Bengal is an agro based stateand that does not mean that we only have to promotethe agriculture but at the same time we have topromote industry. Now this is the time for globalizationwhen we have to move hand in hand with bothagriculture and industry. We have to make it in such away so that both of them compliment each other. Wehave to amalgamate both of them so that that theagro-based industry in the state gets maximumbenefit. To do this in a more successful and robust waythe government has to be proactive and have tocommunicate to the farmers, so that themiscommunication or the misunderstanding does notcome in-between. The people of West Bengal shouldunderstand that what ever is done it is done for thebetterment of the people of the state, so it is not apersonal agenda but it is an agenda for thedevelopment of the people.Do you think with this industrial boom in thestate, the interference of unions in theindustry will end?I know that this kind of scenario in a state definitelydiscourages, the business community to come to the state.But if you see our organization, we are doing business herefor a long time, but I would be very proud to say that wehaven't lost a single working day. The main thing behind thisis that you have to be clear to your employees and youalways have to project what ever is true and don't make anykind of hype but we should tell the truth. So to change thisbandh scenario we have to communicate with theemployees and also to the people and tell them the truth andI think as the industrialization will start booming in the statethese hazards will definitely vanish.You have an experience of working with theTATA's very closely, so do you think these bignames will help the all round development ofthe state?Yes I have been working with the Tata's for a long time. Wehave invested in some of the companies of Tata. We have asizable equity in the tin plate company of Tata. we have aholding of about 13-14%. We also have equity in the TataMetalics Limited. I think Tatas are such a name which meansfaith and which means power. So I think they are the best andI think doing partnership with them is the best thing that canever happen to a company. I would definitely say that theirpresence in the state will not only help the state's market todevelop but at the same time it will also help develop theinfrastructure and also many ancillary companies willdevelop with them in the state.In the last few years the FDI in the state hasincreased risen. Why do you think that WestINDO-US BUSINESS Feb-Mar 200828

InterfaceBengal has become a cynosure of theglobal business community?There is actually no magic behind it. The main mantra isvery simple. As I have said the state government is movingin a very focused manner to improve the businessenvironment in West Bengal. The people starting from thebureaucrat to the chief minister work very hard to presentWest Bengal as a desired destination. Previously it wasonly Delhi, Mumbai, Chennai and Hyderabad, whichalways attracted attention of the global market. But nowwe have also succeeded in doing so. But I would say thatthere is still no the time to relax. This is not the time to becomplacent. We have to work hard to hold on to thisposition. Also I would say that we have to do continuousmarketing for the state, because we have to rememberthat today the investors have all the choices and options.The infrastructure in the state has to grow along with thestate's development. Now you can see that we are talkingabout a second airport and also about a second port inthe state. So you can see that the necessity is the mother ofall inventions. As the investors will come the developmentwill also occur.The export scenario in the state is not so good, wehave been ranked s the seventh among Indianstates. What do you think is the reason behind it andhow we can change it.Yes, right now the state is lagging behind on the exportfront. We have to give special attention to the exportsector. We also have to give it maximum priority. As weare seeing, the business scenario is changing in the state.So obviously the export industry will also get a boom. Ihave personally discussed this matter with the FinanceMinister Asim Dasgupta and the government is regardingthe whole issue very seriously and I think very soon we willsee good results.As Honorary Consul of Malaysia in WestBengal which are the fields in the state youthink you can promote in Malaysia?I think Bengal has a great potential in he field of tourismand also agro industries and both the countries are veryeager to have good bilateral relations. So I am workingand trying my best to promote Bengal in the bestpossible way.Where do you expect to see Bengal afterfive years?I definitely want my state to develop as fast as possibleand I want to see it as “Best Bengal” and not just WestBengal.Assam Inks MoU with Xola to Promote Adventure TourismAssam took a big step forward in the promotion and potential for wildlife tourism, eco-tourism as well asprojection of adventure tourism resources with the cultural and religious tourism. “All this must besigning of a Memorandum of Understanding between harnessed in a proper manner for the economicTourism Department, Government of Assam and Xola development of the State,” he added.Consulting Inc, an internationally known American firm,Xola Consulting Inc will soon begin work in identifyingin the presence of Chief Minister Tarun Gogoi at Dispurfive to seven destinations (hotspots) suitable foron 26 February 2008. This project is a follow-up of thesustainable tourism development, besides makingChief Minister's visit to the US in June and September lastdetailed itinerary recommendations for tripsyear.incorporating adventure, nature, cultural and regionalExpressing his happiness over the signing of MoU, tribes' assets; evolving marketing strategies to wooGogoi said, “It augurs well for Assam that Xola domestic and international tourists; framing theConsulting Inc has come forward to promote and yardstick for monitoring the tourism benefits andproject adventure tourism of the State across the globe impacts for rural people and resources and establishingas an outcome of my talks I have had during my two visits linkages with international trade and academicto the United States last year.institutions for the promotion and development ofGogoi exuded optimism that the project would helptourism sector in the State.project the huge tourism potential of the State in a big Minister for Tourism Rockybul Hussain, Principalway thus bringing in investment into the sector and Secretary, Tourism, Himangshu Shekhar Das, Director,opening up vistas of avenues for the educated Tourism, Dilip Kumar Baruah and other senior officialsunemployed youth.of the state Government were present during the signingof the MoU. Xola Consulting Inc was represented byThe Chief Minister said that Assam, being one of the richChristina Heyniger.biodiversity hotspots of the world, has tremendousINDO-US BUSINESS Feb-Mar 200829

AgricultureAssam Goes Organic,Plans Exports in Big WayBy Md. Sabir NishatAfter the export of organic Joha rice produced in Assam to Europeanmarkets, the Assam State Agricultural Department is going in for organicfarming in a big way.The first consignment of 17.5 metric tonnes of organic Joha rice wasshipped through the Amingaon inland container depot on the outskirts ofGuwahati on May 3 last year.The Karbi Anglong district, known for its fertility, has already beenidentified as an organic zone. “The process is on to declare KarbiAnglong district as an organic zone,” says Minister for AgriculturePramila Rani Brahma, who is on a mission to promote organicagriculture in a big way at a time when researchers have found out thatorganic food is more nutritious than ordinary produce and helps tolengthen our lives by cutting the risk of cancer and heart disease.Organic agriculture is knowledge rather than resource-intensive, saysBrahma, adding, “Much of the required knowledge and techniques arealready available with traditional farmers. ITKS or indigenous traditionalknowledge systems are at the very core of organic farming. The IndianCouncil of Agricultural Research has conducted trials and validatedmany of these ITKS. Traditional knowledge has thus entered the realms ofagricultural science.”Organic farming promotes indigenous varieties of seeds rather thanhybrids, so that the farmer is not dependent on seed marketingcompanies a major savings. Women play a crucial role in the selectionand preservation of seeds. The popularmyth that organic farming leads to loweryields has been exploded by trialsconducted worldwide, including India.The Tamil Nadu Agricultural University'sstudy on organic cultivation of greenchilli found it produced better yields andquality. Likewise, the University ofAgricultural Sciences, Dharwar,Karnataka found more viability inorganic cultivation of groundnut. DittoFrench beans. Punjab AgriculturalUniversity studies found use of organicinputs produced better rice yields. AsAgriculture Officer attached to Brahma,Mowsam Hazarika, points out, “It is inrainfed agricultural systems that organicfarming produces consistently betteryields. In Green Revolution areas, too,there is no diminishing of yields.”Even the World Bank admits: “Farmers indeveloping countries who switch toorganic agriculture achieve higherearnings and a better standard of living,according to a series of studiesconducted in China, India and six LatinAmerican countries by the InternationalFund for Agricultural Development(IFAD).”Tankeswar Rahang, a small orangefarmer of Sonapur in Kamrup (rural) says,“We do not use chemical fertilizers norchemical pesticides as they harm thequality of our produce. It is throughorganic methods that we have been ableto make our harvest better, with no pestsor diseases.”All over the country, groups of small andmarginal farmers are coming together toform organic farming collectives.Through NGOs or governmentagencies, they are getting their farmscertified as organic, thus opening upmarkets in India and abroad.Cultivation of mango in Assam, with itswarm, humid climate during summerand cold, dry winter is not consideredsuitable for growing the fruit. Besides,rampant attacks by pests and insectsoften decimate the ripened fruit. But thathas become passé now, with the farmerseyeing it as a commercial propositionINDO-US BUSINESS Feb-Mar 200830

Agricultureagainst the backdrop of a slew ofinitiatives that have brought in foodprocessing units to the state.Says Hazarika, “With the coming up ofthe pickle industry, that requires hugequantities of raw mangoes, farmerscan now reap in additional income bytaking up mango cultivationcommercially. Even its production inthe traditional household gardens canbring extra income if the raw mangoesare supplied to the new units.”Nearly 5.95 lakh hectares of land isunder horticulture cultivation,comprising about 15 per cent of thegross cropped area. Assam producesan estimated 34,000 tonnes ofmangoes every year. However, most ofit is sold raw and the bulk finds its wayto the unorganized pickle sector. Butnow, with the coming up of two pickleunits, including Nilon's, which hasalready commissioned a plant atDalgaon in Darrang, 120 km fromGuwahati, there is ample scope for thefruit and the farmers.“This plant needs a huge quantity ofmangoes, besides other fruits andvegetables. This year, we haveprocured only 5,000 tonnes of rawmangoes, but the word is spreadingand inquiries are pouring in fromfarmers,” says Deepak Sanghavi,Managing Director of Sanghavi FoodsPvt Ltd, a wholly-owned subsidiary ofthe Rs100-crore Nilon's Enterprises.Nilon's has a 25 per cent stake, whichis the highest in the country's organizedpickle sector.Sanghavi has also entered into anagreement with an NGO, AssamUnnati Sabha, to go for contractfarming, to ensure that his unit gets acontinuous flow of raw materials,including mangoes, papayas,turmeric, ginger and lemon. Nilon'shas supplied seeds and technicalknowhow to the Assam Unnati Sabhato grow over 30,000 papayas inTinsukia district, which will benefit 25educated unemployed youth. Thecompany will procure the entire cropfrom the NGO for producing tutty-frutty that the cake industry requires.On top of it, two other food processing units have also come up in the Statewith the Government's Horticulture Technology Mission giving themincentives to the tune of Rs 4 crore. One of these has already startedfunctioning, producing potato chips under the brandname Kishlay byprocuring potatoes from the local farmers. It is learnt that three more unitsare in the pipeline.An organic food supermarket, the first of its kind in the North East region,will come up at Panjabari in Guwahati in a sprawling three bighas of landat an estimated cost of Rs 10 crore. The three-storied swanky supermarketwill also house a laboratory, cold storage, a greenhouse, a conferenceroom and stalls selling everything organic, from tea to fruits to vegetables.“All the products will be tested for quality at the in-house laboratory beforethey are up for sale,” says Brahma.Besides storing organic products from local farmers, the market will haveorganic produce from outside the State. As of now, the market will cater tothe demands of local consumers. “Depending upon production, we willexplore the possibility of looking beyond the borders by turning the marketinto a major export centre for organic produce, says Brahma.Another organic market at Beltola in Guwahati is on the anvil. Meanwhile,the Assam Government has prepared a district-wise list of thrust cropsunder the horticulture mission, which includes banana, pineapple, ginger,potato, lemon, litchi and cashew nut. Reviving the traditional belt oforange around Sonapur of Kamrup, eastern part of Tinsukia, Nagajankaarea of Jorhat, Jatinga of North Cachar Hills has also been alreadyinitiated under the Horticulture Technology Mission. “For the benefit ofginger growers of Karbi Anglong, Tinsukia and other districts, we havealready set up an Agri-Export Zone for ginger,” says Brahma, who has sether eyes on achieving 2 per cent annual growth in the agricultural sectorinvolving 27 lakh farm families during the 11th Plan by stepping up farmmechanization and other scientific agricultural practices. “As the task forachieving 2 per cent annual growth is a challenging one, I earnestlyappeal to the youth to come forward and contribute their mite towardsushering in a Green Revolution in Assam,” she rounds off.INDO-US BUSINESS Feb-Mar 200831

Chamber NewsInteractive Session on Indian BudgetAn interactive programme on “Budget Impact 2008” was organizedat American Centre, Mumbai on 3 March 2008. The speakers wereL - R: Michael Newbill, Jaideep Kulkarni & Heetesh VeeraHeetesh Veera, Partner with Ernst andYoung and Jaideep Kulkarni, Partnerwith Ernst and Young. The Chief Guestwas Michael Newbill, Chief, Economicand Political Section of the AmericanConsulate General, Mumbai. R. K.Chopra, Secretary General of Indo-American Chamber of Commerceaddressed the gathering.Jaideep Kulkarni spoke on Direct Taxproposals and Heetesh Veera spokeon Indirect Tax proposals.There was a good interaction betweenthe speakers and audience, theprogramme concluded with vote ofthanks by R.K. Chopra.Lincoln House 50, Going Strong with Indo-US TiesIndo-American Chamber ofCommerce (IACC), WIC and USConsulate General, Mumbai jointlyorganized a party to commemoratethe 50 years of US Consulate officein the Lincoln House. Atul Nishar,Regional President IACC, WIC andMichael Owen, Consul General,US Consulate, Mumbai playedperfect hosts to the guests whichcomprised crème da la crème of theMumbai society.Digvijay Singh, former ChiefMinister of Madhya Pradesh, wasthe chief guest for the occasion. Heshared with the audience hismemories of the time when LincolnHouse was known as the WankanerHouse and he said that he ispleased that in its new avatar as theLincoln House his ancestral home ishelping the Indo US friendshipcause.Atul Nishar emphasized that whileIndo-US friendship has reachednew heights in the last 50 years, stillthere are a lot of areas where the two countries can learn from oneanother. He said that IACC is committed to the cause of strengthening &promoting IndoUS friendship.Michael Owen lauded IACC for fostering friendship between the twocountries.The evening also saw a fusion of a rare kind when Emmy Award winningtap star Jason Samuels Smith sharing the stage with renowned Kathakmaestro Pandit Chitresh Das. The duo enthralled the audience with theirsynchronized and spectacular performances.Adding to the glamour quotient were Bollywood beauties Vidya Balan,Minisha Lamba and Mona Singh.L-R: Dr. Digvijay Singh, Michael S. Owen, Vidya Balan & Atul NisharINDO-US BUSINESS Feb-Mar 200832

Chamber NewsNABSHOW 2008 : Connecting India & US Through CreativityThe Indo-American Chambers of Commerce(IACC) in association with the National Associationof Broadcasters (NAB) organized a curtain raiser forthe NABSHOW 2008, in February in Mumbai,Hyderabad and Chennai. The NABSHOW, aconference cum exhibition, will be held in Las Vegasfrom 11 to 17 April 2008.From conception through distribution, the NABShow has proudly served as the incubator forexcellence helping to breathe life into contenteverywhere for the past eight decades. 110,000plus professionals from 163 countries who create,direct, produce, record, light, film, broadcast,transmit, post, animate, edit, write, protect, digitize,stream, promote, integrate, manage, present,network, program, sell or buy content, attend theNAB Show.The media and the entertainment business in India, aRs. 440 billion industry, is one of the fastest growingsegments of the economy at a CAGR of 18 percent.Digitalization of both content and delivery platforms,in the audiovisual entertainment space is leading toincreasing reach out to wider audiences withinshorter spans of time.Speaking at a press conference on the occasionFarokh Balsara, National President, IACC, India,said, “The Indian media and entertainment industry isgoing through a metamorphosis due to thedigitization of content and delivery platforms. To keeppace with these fast paced changes, Indiancompanies will need to adopt relevant strategies tostay competitive. The NAB Show providesbroadcasters with a global platform to buildsynergistic partnerships and accelerate the visibility ofthe Indian content globally. In addition, it will throwlight on the impact of wireless technology and thechallenges & opportunities that convergence isbringing to the mainstream multimedia industry at themacro level and micro level”Farokh Balsara also emphasized that Media &Entertainment industry is Chamber's one of the thrustareas. IACC has even coined a term for it 'Hollywoodto Bollywood”. Keeping in line with this goal IACChas collaborated with the NAB (National Associationof Broadcasters). IACC has signed a MOU with NABfor the exclusively promoting NAB Show 2008 inIndia.Chris Brown, Executive Vice President, Conventions &Business Operations, NAB, said, “We are verypleased to be in India to meet your industry leaders andto communicate the importance the NAB Show plays inthis industry on every continent around the world. TheNAB Show starts with content -- not gadgets -- andprovides the industry with the best opportunities toshowcase content to those who buy, re-purpose,deliver and distribute it across traditional andemerging platforms worldwide."“The NAB Show is the best source for the creativity,inspiration, solutions and next-generationtechnologies, which serves as the perfect platform forthe media professionals to foster growth. Businessdevelopment, search for new markets and maintainingrelationships with the existing customers are the chiefprospects involved with the NAB Show,” Brown added.Margaret Cassilly, Vice President, InternationalOperations, Conventions & Business Operations, NABsaid, “Our partnership with the IACC will benefit Indianbroadcasters as well as NAB Show attendees. As thedestination for content professionals, the NAB Show isthe perfect spot for India to access electronic mediaresources and connect with media professionals fromaround the world".India has truly arrived on the global broadcastingscene is evident from the fact that first time in the historyof the NAB Show one super session is not onlydedicated to its entertainment industry but also chairedby Farokh Balsara. He would be joined by fourrenowned speakers from India namely, Jagdish Kumarof Star TV, A. P. Parigi of Entertainment Network Limited,Sunil Lulla of Mididtech and Anurag Batra of E4M.Thissuper session is named “Tune-in to India'sEntertainment Industry-From emerging to surging” isscheduled for Wednesday, 16 April, 2008. Besides alarge delegation which will participate in conferences,there would be an India Pavilion at NAB for Indianbroadcasters to display their products.INDO-US BUSINESS Feb-Mar 200833

Chamber NewsReception in Honour of US SpeakerL- R : Michael S. Owen, Nancy Pelosi & Atul NisharThe Indo-American Chamber of Commerce, WICand the Taj Mahal Palace & Tower, Mumbai hosteda reception in honor of Speaker of the United StatesHouse of Representatives Nancy Pelosi and seniorMembers of Congress on 24 March 2008.The reception, held at the Taj Mahal Palace andTower capped off two days of meetings for thedelegation in Mumbai. The congressionaldelegation's visit was focused on energy and globalwarming.The importance of partnership between India andthe United States was emphasized in the openingremarks given by Karambir Singh Kang, GeneralManager of Taj Mahal Palace & Tower, Mumbai.While other speakers were Atul Nishar, MurliDeora, Union Minister for Petroleum & NaturalGas, Nancy Pelosi and Michael S. Owen.Pune BranchAutomation Alley team in talks with Indian auto component firmsThe Pune branch of IACC arranged for businessmeetings with the visiting delegation fromAutomation Alley for industries across Maharashtra.A wide range of sectors were covered including autocomponents, ancillaries, manufacturing,engineering services, financial services etc.Each of the visiting companies got at least fivematching business meetings with Indian SMEs aswell as large enterprises such as Bharat Forge andTata Autocomp. Many business deals are expectedto go through because of these business meets.The Chamber, also, organized a visit to the TataMotors facility at Pune. The visitors were quiteimpressed by the level of automation reached at thisfacility.A press meet was organized to meet KennethRogers, Executive Director, Noel Nevshehir,Director, both from the Automation Alley and the USCommercial Consul Jim Cunningham.A business presentation for members was, also,made by Noel Nevshehir, Director, AutomationAlley.US Commercial Consul Jim Cunningham flanked by AshutoshParasnis, Chairman, IACC, Pune and Shekhar Agharkar, PastChairman, IACC, Pune along with the Automation Alley delegationEarlier in the day a breakfast meet for the delegation wasorganized by IACC in conjunction with the USCommercial Service. Ashutosh Parasnis, Chairman,IACC, Pune briefed the delegation about the Puneindustrial scenario.Automation Alley expressed gratitude for all thearrangements made by the Chamber during their visit toPune. This is evident from their gracious letter receivedby the Chamber.INDO-US BUSINESS Feb-Mar 200834

Chamber NewsGujarat Branch'Destination USA' BeckonsThe Indo-American Chamber of Commerce (IACC) Good or Bad manners of others raise stress. PeopleGujarat Branch has planned a series of programmes coming from different countries with differentunder the focus “Destination USA”. To begin with environments face a lot of stress. We also find stress inIACC, Gujarat Branch organized a one-day seminar schools, corporates and many other places.on Destination USA: Opportunities & Attitude, on 12Pandya specifically mentioned that there is dangerJanuary 2008 at Grand Bhagwati. The seminar waspoint in Corporate World. Earlier, the age of Presidentaddressed by four eminent speakers - S. Dangayach,and Vice-President in a corporate company was 45-M.D., Sintex, Rooshi Kumar Pandya, Management50 years. Now if a person is a President or Vice-Guru, Ramesh G. Shah, Associate Prof. of School ofPresident at the age of 32-35, he will retire at the ageHospitality Management, USA, and Shailesh Thaker,of 45 years due to stress. And this is common both inManagement Trainer.India and the US.Amal Dhru, Chairman of IACC, Gujarat Branch,Ramesh Shah talked about “Business Experience,made a brief welcome speech on the occasion. HeChallenges and Opportunities in USA”. He said Italyintroduced all the speakers to the audience. An overwent to the US taking Pizza and Pizza became veryattentive audience of around 180 were spell bound byfamous all over the world. “So we have to go to the USthe knowledge of the eminent speakers.taking Paratha. And it will also become very famous asDangayach, who delivered the Keynote Address at the the people in the US are looking for new things.”seminar, talked about Indo-US business relations. HeUS population is 30 millions out of this, 3 millions aresaid the US is a progressive and pragmatic country.Indians and 1 percent of them are Gujarati's. In 1960“But India is also not far behind,” he said, adding, thatIndians in US were 5,000 as compared to 2005“India should lead and come up with force toIndians in US are 24,00,000.compete with the US Economy.” He gave example ofa small thing like sanitation, Portable sanitation earns In 1997, Indian businesses in the US were 167,000approximate one billion dollars as an industry. “In firms and 491,000 employees. In 2002, there wereIndia we have such conditions for sanitation but we 223,000 firms and 610,000 employees.don't make use of it,” he said.The revolutionary inventions and discoveries made byDangayach said US is synonymous with the US are as follows. Shah said that ith the advent of MCopportunity. And that's why US is known as the land of Donald there was no eating problem in the US, asopportunities. India is growing at the rate of close to there are over 30,000 “MC DONALD” all over the10 percent. India is the land of entrepreneurs. The country and every week one MC DONALD is opened.sprit of Gujarati's entrepreneurs is par excellent, heThen came “Holiday inn”, “Cruz line”, “Wall Mart”,said.“Dollar stores” and so on, and revolution of all this,Dangayach talked about the need for upgrading the changed market completely. It bought the productscountry's education system. “We are a skill deficient from every corner of the world at a very cheap rate,country. We have high manpower but manpower is and sold them cheaper than any other markets innot having appropriate skills. We are extremely poor the US.on that count where as US is extremely rich on thatThen came “Banking revolution” when everythingcount. Its manpower is also highly skilled. Thus there isbecame online, with the ATM cards, Debit cards,a perfect match.Credit cards, you can take out money from each andRooshi Kumar Pandya talked about stress every corner of the world. You can pay Electricity bill,Management and for five minutes he took out stress Telephone bill, Tax bill directly through online with thefrom the minds of delegates present at the seminar. ATM card.INDO-US BUSINESS Feb-Mar 200835

Chamber News“We know that in USA people are fat. Obesity and He spoke about, what is called “Place Bo Effect”. Thehealth care has become. You can come out with any person is affected positively by positive suggestionsmedicine, which can reduce the weight or fatness of made by seniors, peers, and superiors. Then there isthe people. By this you can become billionaire in one “Pygmalion Effect”. you achieve what you expect tonight,” Shah said.achieve and what others expect you to achieve. ThisThe Presence of Amon M. Mwamanenge, Ministereffect is from negative to positive. The third isplenipotentiary, Tanzania high Commission. & Nocabo Effect, that is negative to negative and thenNGOGA Eugene Fixer, 1st Counsellor, Embassy of positive. It is negative from top line to bottom line andthe republic of Rwanda added gravity to the then it becomes positive from bottom to top.programme. They made a point that Gujarat andAccording to him “Competing + Skill + Attitude =Tanzania have been in touch with each other for five toSuccess”.six centuries.“Dull people talk about other people. Average peopleThey also invited all to come to Tanzania and Rwandatalk about events. And Good people talk aboutfor doing business.work”. So we should have an Attitude towards work,They invited Gujarati entrepreneurs to do business in he said.the fields of agriculture, textiles, pharmaceutical,The Vice-Chairman, Kaizar Mahuwala, compered thetourism, minerals, gems, IT, ect. As they lacked inwhole programme and delivered the vote of thanks.expertise.The main sponsors were DNA as Media Partner, TheShailesh Thaker, Management Trainer, talked about Grand Bhagwati Group of Hotels as Event Host. TheInternational Attitude & Values for a Global Manager. session sponsors were Lancer Laser Tech RelianceIndustries and Citi Bank. Electrotherm sponsoredThe fourth eminent speaker was Dr. Shailesh Thaker,Tea/Coffee break. Seminars well-wishers werewho is a great Management Trainer & HumanNaroda Nagrik Bank, Airtel, Shital Motors, MapsPotentialist. He started with the counting of attitudeIndia and Gujarat Gouravas.“ATTITUDE”. A = 1, B =2, ATTITUDE = 100.Amon M. Mwamanenge, Minister Plenipotentiary, Tanzania High Commission and Ngoga Eugene Fixer, 1st Counselor, Embassy of theRepublic of Rwanda, along with IACC Council MembersINDO-US BUSINESS Feb-Mar 200836

Chamber News'Sister City' MOU between Ahmedabad & ColumbusThe Gujarat Branch of the Indo-AmericanChamber of Commerce has had theprivilege of playing an important role insigning a MOU (Memorandum ofUnderstanding) between AhmedabadMunicipal Corporation (AMC) andColumbus Ohio, USA as “SISTER CITIES”.The Agreement was signed on 6 February2008 at the AMC premises.Delegates from Columbus Ohio, USA -Edward P. Fisher (Executive Director, CSCI),Nirmal K. Sinha (Deputy Director, PublicUtilities, City of Columbus Ohio), Niranjan(Neil) Patel (President Ganpati Inc.) andfrom Ahmedabad city, Amitbhai Shah(Mayor, Ahmedabad City), Dinesh K.Makwana (Dy. Mayor), I.P. Gautam(Municipal Commissioner), CaptDilipkumar J.Mahajan (DeputyCommissioner) and IACC BranchChairman Amal Dhru , Branch CouncilMembers & Branch Secretariat.“Indo-American Chamber of Commerce”has played a pivotal role in achieving thishistorical and very important agreementfor Ahmedabad. Delegates fromColumbus Ohio, USA and Ahmedabad Muncipal Corporationboth were very thankful to “Indo-American Chamber ofCommerce” & also visited IACC Gujarat Branch Office in thisregard. The delegation also called on Chief Minister NarendraModi along with IACC Branch Chairman Amal Dhru andCouncil Members. The event of “SISTER CITY” agreement washighly successful. This agreement will involve cultural,educational & business exchanges between the two cities evenas the city would emulate Columbus experiences in the BRTS,riverfront and other projects.In addition to this IACC, Gujarat Branch has also received aletter from Michael S. Owen (Consul General, USA), Thankingand Congratulating Indo-American Chamber of Commerce,Gujarat Branch for playing such an important & key role inbringing the Agreement to its conclusion.Budget: International Trade & InvestmentIACC Gujarat Branch organized a programme on Dhru said that this year's Union Budget had created“Budget-2008: International Trade and Investments” the desired and expected vibrations, debates, andon 5 March 2008 at Gajjar Hall, Law Garden, controversies. “In fact, the best thing that the BudgetAhmedabad.does to our economy is that it sets many minds towork, enables exchange of ideas, and virtually turnsEminent speakers such as Ajay Shah (Associativethe national attention towards our economy,” heDirector, Ernst & Young, Mumbai), spoke on Directadded.Taxes and the Regulatory Amendments. UdayPimprikar (Associative Director, Ernst & Young, According to Nanavati, the Budget kept in view theMumbai), spoke on Indirect Tax & the Regulatory interests of small farmers and voters. He was in favorAmendments, Devang Nanavati (Lead India Fame) of imposing tax on farmers earning above 10 lakh.spoke on Common man & overall Impact & Mr.Dholakia said, the investment climate was veryRavindra Dholakia (Economist, IIM-A) spoke on favorable and it was announced that India had joinedGujarat & International Business and Amal Dhru,the club of high savers with 28 percent of theChairman, IACC, was the anchor of this interestingsavings rate. Ajay Shah & Uday Pimprikar gaveinteractive Budget programme.correct idea of Direct and Indirect Tax.INDO-US BUSINESS Feb-Mar 200838

Chamber NewsTamil Nadu BranchGetting Corporates & NGOs to Interact on CSRThe Indo-American Chamber of Commerce (TamilNadu Branch) organized an event of discussion onCorporate Social Responsibility (CSR), a topic of greatrelevance to today's society, on 22 February 2008 atHotel Taj.David T Hopper, Consul General, AmericanConsulate General Chennai, the Chief Guest at theevent, talked about Why CSR? Hiren Shah, Chairmanof IACC-TN, welcomed the chief guest and theparticipants at the event.Ms. Nagori, Head of Corporate Social Responsibility,Taj Group of Hotels, S. Ramamurthy, Director,Cognizant Foundation, Chennai and MustafaMoochhala, Managing Director, InnobridgeConsulting, elaborated about the NGO's role in thecurrent trend, and NGO's survival and marketcapitalization etc,.The event was very unique and special since IACC-TNwas able to bring corporates and NGOs together ona common platform. The event was also uniquebecause the NGOs not only presented theirdifficulties in obtaining funds but were able tounderstand how to approach corporates for theirspecific demands. The corporates in turn throughtheir audio-visual presentation were able todemonstrate the hierarchy and decision makingpatterns for fund approvals and releases to NGOs.There was very good interaction between theaudience and the speakers.Consul General David Hopper delivering the Inaugural address atthe programme Corporate Social Responsibility organized inassociation with the American Consulate General, Chennai on 22February 2008.L-R: Raghini Gupta, Consul for Cultural Affairs, American ConsulateGeneral and Hiren Shah, Chairman, IACC (TN Branch).Seminar on Enabling Business InfrastructureThe Indo-American Chamber of Commerce (IACC) TamilNadu branch organized a seminar on “Enabling BusinessInfrastructure” in Chennai on 19 January 2008. The speakerswere Ms. Ragini Peter, Vice President, Sri City, Ramesh Nair,Managing Director, Jones Lang Lasalle. From the Chamber'sside, Farokh T Balsara, National President, Vinay Agarwal,Regional President, SIC, Hiren Shah, Chairman, TN-Branchand R.K.Chopra, Secretary General, IACC, addressed thegathering.About 60 members from different parts of India participatedin the seminar, organized in connection with the NationalExecutive Committee meeting on that day. The role of SEZ inproviding infrastructure for the different kinds of industries, itschallenges, trends in modern work and places futuristic viewswere discussed in the seminar.L - R: Ravi Shankar, Vice Chairman IACC-TN, Ramesh Nair,Managing Director, Jones Lang Lasalle, Farokh T Balsara,National President, IACC, Hiren Shah, Chairman, IACC-TN, Vinay Agarwal, Regional President, IACC, SIC, RaginiPeter, Vice President, Sri City, R.K. Chopra, SecretaryGeneral, IACC.INDO-US BUSINESS Feb-Mar 200839

Chamber NewsKarnataka BranchSummit Highlights India as GlobalHub for Sourcing & Supply ManagementThe Indian Institute of Management (IIM) Bangalore,together with the International Supply ManagementInstitute (SMI), organized an “India Sourcing Summit”at Windsor Manor Hotel in Bangalore on 8 and 9February, 2008. The Summit was one of India'spremier events on sourcing and supply managementand showcased the country as a global centre for thesame.The two-day knowledge event, supported by the IndoAmerican Chamber of Commerce (IACC) broughttogether the “who is who” of Corporate India, as wellPennsylvania Firms Keen on Trade with IndiaA multi-sector Trade Mission from the State ofPennsylvania, USA visited Bangalore on 13 and 14February 2008. Pennsylvania Trade Office India incooperation with Bangalore Chamber of Commerceand Industry (BCIC) and Indo-American Chamber ofCommerce (IACC), Karnataka branch organized aninteractive meeting with the visiting delegation on thefirst day.Pennsylvania Trade Mission participating companiesincluded: Allegheny Bradford Corporation,InfraScan, Inc, Kibow Biotech, Inc, PhiladelphiaInternational Medicine, Top Line Process EquipmentCompany and Universal Industrial Gases, Inc andone University viz. The Pennsylvania State University-Greater Allegheny Campus (PSU-GA) alsoparticipated in the Mission.The meeting was addressed by Peter O'Neill,Executive Director, Center for Trade Development,Department of Community & EconomicDevelopment, Commonwealth of Pennsylvania. Hehighlighted the growing interest of Pennsylvaniacompanies in exploring business opportunities ininternational markets with special focus on growingtrade with India.India's top imports from Pennsylvania in 2006amounted to US$ 296.5 million and consisted ofmachinery ($53.7mn), computer & electronics($44.5mn.), chemicals($41.5mn), primary metalmanufacturing ($39.3mn.), transportationequipment ($17.2mn), electrical equipment &as business leaders from international companies andexperts from academic institutions. Some of theeminent speakers at the summit included Seshasayee,MD, Ashok Leyland; Vaideesh, MD, Johnson &Johnson India, Capt. Gopinath, Executive Chairman,Deccan Aviation and Ravichandran, President, TVSLogistics.The Conference was structured to provide maximumbenefit to participants, through key-note addresses,plenary sessions, workshops and parallel workingsessions.appliances ($13.7mn), plastics & rubber ($ 11.7mn.),and fabricated metal ($9mn.).Pennsylvania's Authorized Trade Representativeoffices in India, located in Bangalore and Mumbaiwork with Pennsylvania companies to increase tradewith India.The meeting provided an excellent opportunity toChamber members to interact with the delegates andexplore possibilities of business cooperation.Pennsylvania Trade Mission at HotelTaj Residency, BangaloreUdaya Kumar, Chairman IACC, Ramappa Secretary GeneralBCIC, Peter O'Neill Executive Director, Centre for TradeDevelopment Commonwealth of Pennsylvania, USA.,VenkatKidlaya Past President BCIC, Sushama Kanitkar AuthorizedRepresentative Director Pennsylvania Trade Office, Bangalore.INDO-US BUSINESS Feb-Mar 200840

Chamber NewsIACC CEO NetworkingThe Indo American Chamber of Commerce (IACC),Karnataka organized a CEO Networking Event forits members on 22 February 2008 at Hotel Le-Meridien Bangalore.The evening included a featured talk on 'Growthdrivers and Risks in the Indian Economy: A MediumtermPerspective' by Dr. Subir Gokarn, ChiefEconomist, Standard & Poor's Asia Specific.The presentation highlighted the significant shift inglobal economic power towards China over the nextfive years. This trend makes China the world's largesteconomy and significantly concentrates economicactivity in the three giants, China, the US and India.Against this backdrop, the speaker examined somekey domestic drivers of growth and themacroeconomic context in which they are likely tooperate. While this is a broadly positive story, thepresentation also took into account some significantrisk factors, which, it argues, are largely attributableto inadequate public policy responses to the growthmomentum. Finally, global patterns, domesticL- R: Standing: Subir Gokarn, Chief Economist, Standard & Poor'sAsia Pacific. Sitting: Vasanth Kini, Vice Chairman, IACC, Karnataka,Udayakumar, Chairman, IACC, Karnataka, Pradip K.Dutta, M.D &Corporate VP, Synopsis India Pvt Ltd.drivers and risk factors are brought together to visualizethree possible medium-term scenarios for the Indianeconomy.The evening was sponsored by Juniper Networks IndiaPvt Ltd.The Indo American Chamber of Commerce,Karnataka Branch organized a Seminar on “USImmigrant & Non Immigrant Visas” on 17 January,2008 at Hotel Taj Gateway, Bangalore.Rajkrishna S Iyer, an Attorney admitted in India &California and Member of THE CHUGH FIRM inLos Angeles, addressed the participants. The topicsaddressed at the seminar were• Introduction Immigrant & Non Immigrant Visas• H1-B & L1 Holistic View, Which is better for you?• Blanket L1• Greed CardSeminar on Immigrant & Non-Immigrant Vias• Recent Trends USCIS / ConsulateThe Chugh Firm, an exclusive affiliate of UniversalLegal sponsored the seminar. The seminar was wellattended and very informative.Rajkrishna S. Iyer, Attorney, The Chugh Firm, addressing IACCmembers on US Visas.INDO-US BUSINESS Feb-Mar 200841

Chamber NewsCelebrating Women's Day, the IACC-WBC WayThe Open Secret behind Every Man's SuccessOn the eve of Women's Day, it was time to turn thespotlight on the gender that needs to be sensitized tothe needs of women, namely men. On the evening of7 March 2008, four men Vivek Mansingh, CountryManager, Dell India, Bert O'Donoghue, ManagingDirector, 3M India, Leo Scrivner, VP (HR), Cisco andR.K. Mishra, winner of the Lead India Contest tooklead to discuss women's issues at a seminar organizedby Women's Business Council of Indo AmericanChamber of Commerce (IACC) at Hotel ITC WindsorSheraton & Towers, Bangalore.The topics of discussion ranged from empowermentof women to business rationale of including women inevery aspect. “I hate it when people say, 'Oh you'rejust a house wife!' How would you like it if she askedyou if you were just an engineer or doctor? Be proudto be a housewife,” said MansinghThe panelists were keen to acknowledge thecontribution of women in their lives.“The best consultant I have is my wife and I'm glad shedoesn't charge me,” said Scrivner, who alsorecommended Sudha Murthy's book 'Otherwise andWise'. “My wife is the one who keeps me on theground. She's the only one who tells me what I reallyam,” said Mishra.“More than 90 percent of my leadership abilitiescome from the women in my life. My mother had avision for each of us siblings and despite our hardtimes, she planned and executed it to perfection. Mywife teaches me how to maintain relationships. Frommy sister, who's a singer, I learn to be creative andpassionate,' said Mansingh.Mishra spoke of rural women and the challenges thatthey face and shine through. “That's why microfinancecompanies prefer to give loans to women any day.They know women are sincere and their money willcome back” he said.O'Donoghue highlighted the importance ofmaintaining flexibility of work hours to ensure thatworkplaces can attract and retain women employees:“It's not the 'butt-time in office' that counts, but theoutput and performance that counts. It's not easy, butdo-able.”Priya Chetty- Rajagopal, Chairperson of IACCNational Women's Business Council and VPStantonchase International, added: “Someone oncetold me that work is a verb, not a place. I thinkorganizations should remember that both for womenand men.”ITC Hotel The Windsor were the hospitality sponsorsfor the evening, whereas Reliance Time Outsponsored gift vouchers for the participants and Titansponsored watches for the speakers. The event waswell attended and appreciated by all.Howard County, Maryland Looking for India avenuesThe Indo American Chamber of Commerce (IACC), Mukesh Majmudar, CEO, Star Hotels; KiritKarnataka hosted a reception in honor of Ken Ulman, Parmar, President, 4KP, LLC; Saurabh Naik,County Executive, Howard County Maryland and his President, IEI, Inc.; Sushant Sidh, Capitoldelegation to India on 26 February 2008 at Hotel Taj West Strategies; S. Kumar Rajasekhara, President &End, Bangalore.CEO, Marsilli North America, Inc., AaronGreenfield, Chief of Staff, Howard County;The trade delegation visited this country to identifyRichard Story, CEO, Howard County Economicimmediate business opportunities and encourage businessDevelopment Authority and Srinath Bagal, Fastrepresentatives to further explore the strategic advantagesVDO accompanied Ulman on this mission.of bi-lateral trade between India and Maryland.INDO-US BUSINESS Feb-Mar 200842

Chamber NewsUS Renewal Energy Trade Mission Keenon Selling Clean-Energy TechThe Bangalore Chapter of Indo American Chamberof Commerce (IACC) hosted a reception on 16January 2008 at Hotel Chancery Pavilion in honour ofAssistant Secretary of Commerce David Bohigian, theU.S Renewable Energy Trade Mission to India andCarmine D'Aloisio-MinisterCounselor forCommercial Affairs, American Embassy, New Delhi.The mission visited Beijing, Guangzhou, and HongKong, China as well as Kolkata and Bangalore, India.These companies were exposed to businessopportunities in these fast-growing, markets, whereAmerican clean-energy technology goods andservices can help improve the environment.The continuing rapid growth of the Chinese andIndian economies presents unparalleledopportunities and challenges,” said Bohigian. “U.S.clean-energy companies can help China and Indiameet their enormous energy demands whiledeploying, technology that benefits the environment.The 18 US companies participating in this mission areamong the most innovative in the world and themission's business and government meetings allowthem to present cutting-edge products and services tothese dynamic markets.”IACC has identified 'Environment' as one of its thrustareas and has been proactive in creating awarenessthrough seminars, exhibitions, workshops,conferences and disseminating informationregarding various environmental issues through itsenvironment extension called EnvironmentalResource Center (ERC) located in the Mumbai office.Formerly known as United States EnvironmentalResource Center (US-ERC), it was established as ajoint initiative with US-AEP/US-AID in 1999 inresponse to the growing need for improved industrialenvironmental performance, energy efficiency andurban development. Some of the thrust areas havebeen energy efficiency, hazardous waste treatment,waste minimization, waste recovery and reuse, waterpollution, air pollution and clean energy. IACC seesthe need to work towards creating a road map with aview for minimizing and safeguarding theenvironment degradation.In the meanwhile, ERC works on:• Exposing the Indian industry to US technology byrecruiting Indian delegates for trade shows in theUSA.• Arranging one to one business meetings forinbound delegations.• Provide Indian Environment market informationsuch as industry sector analysis, international marketinsights, customized market research and trade leads.• Organize events independently or jointly withenvironmental organizations promoting cleantechnologies.L to R: David Bohigian Assistant Secretary of Commerce, Uday Kumar Chairman IACC, Carmine D'Aloisio Minister Counselor for commercialaffairs, American Embassy, New Delhi. US Renewable Energy Trade Mission - DelegatesINDO-US BUSINESS Feb-Mar 200843

Chamber NewsAndhra Pradesh BranchPennsylvania Firms Seek PartnersThe IACC Andhra Pradesh Branch, co-organised a Luncheon Meeting on 12February, 2008 in association with USCommercial Services and PennsylvaniaTrade Mission, led by Peter O'Neill,Executive Director, Center for TradeDevelopment, Commonwealth ofPennsylvania, USA and Mark Russell,Commercial Consul, US Consulate,Chennai, at Golden Room, Hotel TajKrishna.One-to-one meetings were arranged withthe participating companies, namelyAllegheny Bradford Corporation; InfraScanInc.; Kibow Biotech Inc.; Overhead DoorCorporation; The Pennsylvania StateUniversity - Greater Allegheny CAMPUS(PSU-GA) Philadelphia Int'l Medicine (PIM);Top Line Process Equipment Company; andUniversal Industrial Gases Inc. (UIG). whosought partners for collaborations andrepresentations in Hyderabad.The meeting was followed by a presentationby O'Neill, briefing the members about the state and prospectsat Pennsylvania. Bipin Chandra, President, AMCHAM and V.Anand Reddy, Chairman, IACC-A.P. briefed the membersabout prospects and developments in Hyderabad. At the outsettrade and government policies, tax and other benefits,industrial development of the two states were discussed.V. Anand Reddy, Chairman IACC-AP, receiving Peter O'Neill, ExecutiveDirector, Center for Trade Development, Commonwealth of PennsylvaniaHyderabad pitches for Georgia's India OfficeAnand Reddy, Chairman of the Indo-AmericanChamber of Commerce (Hyderabad branch) haspromoted that city as a prime spot for Georgia toopen an India office.In a recent video interview with GlobalAtlanta, Reddysaid aerospace and education top the list of reasonsGeorgia should look at Hyderabad for opening itsoffice.The Georgia Institute of Technology signed amemorandum of understanding with the AndhraPradesh government last June, paving the way for acampus on 20 acres in Hyderabad and an eventualextension in Visakhapatnam.Hyderabad is also the site of a new internationalairport that is seeing surging demand as it nears itsMarch 2008 launch date, Reddy said.Jeff Pearse, marketing and business developmentdirector at Hartsfield-Jackson Atlanta InternationalAirport, hasn't studied the Hyderabad airport in muchdepth, but he said the general demand forinternational air transportation in India has sharplyincreased over the past few years.Global Atlanta conducted a non-scientific surveyasking readers what they thought would best Indianlocation for Georgia's prospective office. Hyderabad,which wasn't listed in the pool of seven cities, waswritten in for 40 percent of the votes.Hartmann conducted a chamber-sponsored seminarin Chennai, India, in November on doing business inAmerica and replicated that presentation at anotherseminar in Hyderabad.INDO-US BUSINESS Feb-Mar 200844

NewsIndian BPOs to provide high-endservices to US, UK insurersBusiness process outsourcing companies such as InfosysBPO, Patni's BPO arm, EXL Services and Genpact areincreasing their focus on providing high-end actuarialservices to insurers in the US and UK.The Indian IT companies, which have been hithertoproviding back office services (claims processing andothers), are now planning to provide actuarial valuations.Genpact, one of the largest players in the property andcasualty space has been in actuarial services since thelast five years.Mohit Thukral, senior vice-president and business leader,Genpact, said, "In the last 4-5 years, the demand fromthese markets has doubled. We started with just 10people and today have a base of 60-70 acturials andstudents."Actuarial processes constitute the extreme complex endof the knowledge process outsourcing (KPO) space.Actuaries are professionals who design insurancepolicies.They assess the financial consequences of unforeseenevents and the premiums needed to cover the risks. TheIndian off-shoring industry is particularly strong in thisarea.The total estimated revenues from Indian offshoreinsurance business process outsourcing services wereexpected to rise from $790 million in 2007 to about $2billion by 2010. Employment is also likely to increasefrom 41,600 to 1.5 lakh in 2010."One of the key reason for work coming to India, otherthan mature practices, is the shortage of skill-sets. Anactuary in US with 5-6 years of experience gets a packageof $150,000-250,000 and a acturial student will drawabout $70,000-125,000 a month. When the same workcomes to India, the cost saving is almost half," addedThukral.Patni Computers, which started an actuarial processoutsourcing unit around two years back, has three USinsurance companies as its clients and a 125 memberteam who do actuarial valuations.According to Sanjiv Kapur, senior vice president and headof Patni BPO, "70-80 per cent of the work done at PatniBPO is financial services and insurance. The gamutcovered includes life, health, property and casualtyinsurance."Sheshadri BC, SBU head Insurance Health andLifescience, Infosys BPO, added, "We are actively talkingto a few players in the life insurance segment."Infosys BPO has been working with an insurance playerfor the past one and a half years and provides analyticalservices.Another player, EXL Services is also keen on providingactuarial valuation services. "We have seen an increase indemand. We are currently providing analysis and plan toenter valuation services as well," said Rohit Kapoor,president, EXL Services.Paternoster, UK's insurance company set up in June, ismaking a conscious effort to get Indian actuarial talent. Itwants to introduce new thinking as traditional methods ofcomputing life expectancy are off the mark. INDO-US BUSINESS Feb-Mar 200846

NewsTatas in JV with Boeing to makedefence aerospace components.Tata Industries Limited and Boeing Company, the Pentagon's second-largestsupplier, have agreed to form a joint venture company to supply more than $500million worth of defence-related aerospace component parts to the US company.According to a media release, the JV company will be established by June and willsoon begin building Boeing aerospace components.This is the second big deal involving the two companies in the recent past. The lastwas an agreement with TAL Manufacturing Solutions Ltd, a wholly ownedsubsidiary of Tata Motors, for manufacturing floor beams for Boeing's 787Dreamliner airplane programme. The current agreement intends to utilise notonly the existing Tata manufacturing capability, but also to develop new supplysources throughout the Indian manufacturing and engineering communities forboth commercial and defence applications.This JV between Tata and Boeing is an important part of our strategy to buildcapabilities in defence and aerospace, said Tata Group Chairman Ratan Tata. Ilook forward to the joint venture becoming a world-class facility in India.Manufacturing capabilities established within the JV company would in laterphases be leveraged across multiple Boeing programs, including the MediumMulti-Role Combat Aircraft (MMRCA) competition.The agreement to be executed in a phased manner will potentially issue contractsfor work packages to the JV company involving defence-related componentmanufacturing on Boeing's F/A-18 Super Hornet for the US Navy and RoyalAustralian Air Force, CH-47 Chinook and/or P-8 Maritime Patrol Aircraft in thefirst phase. Prospect of establishing a research and development center forTata Chem buys US firm,becomes world's 2nd largestsoda ash producerTata Chemicals Ltd (TCL) has acquired US-based soda ash-maker GeneralChemical Industries Products Inc (GCIP) for $1.05 billion (about Rs 4,000crore), to become the world's second-largest producer of soda ash.The announcement was made exactly a year after Tata Steel, another Tata groupcompany, acquired British steel major Corus.TCL is now the third largest manufacturer of soda ash and sodium bicarbonate inthe world, with a production capacity of close to three million tonnes per annum(MTPA). The acquisition will add another 2.5 MTPA to take total capacity to 5.5MTPA, next only to the US-based FMC Chemicals.The company had bought 63.5 percent stake in the UK-based Brunner Mondadvanced manufacturingtechnologies later is also beinglooked into.Boeing, Lockheed Martin Corpand other overseas defencecontractors are partnering withIndian companies ahead of theirbids for India's $11 billion offighter jets, the biggest order forcombat planes in 15 years. Thewinner of the deal must order atleast 50 per cent of defencecomponent purchases fromIndia.Group for about Rs 508 crorein December 2005. It alsoholds a 33 percent stake inIndo Maroc Phosphore SA(IMACID), Morocco, whichmakes phosphoric acid.The latest acquisition will helpTata Chemicals make half of itssoda ash from natural sodaash, which costs only half theproduction cost formanufacturing synthetic sodaash. TCL is one of the largestsynthetic soda ash producers inthe world, along with a fewplayers in China.Soda ash is mainly used inglass and detergent productionINDO-US BUSINESS Feb-Mar 200848

NewsTwo Foreign 'varsities to set up campuses in B'loreIn a major boost to the growing Information Technologyand biotechnology sectors in Karnataka at least twoforeign universities are planning to set up base in thestate.While the Carnegie Mellon University has already madesome progress in this regard, Deakin University, a majorAustralian university is keen on establishing a campus inIndia, in Bangalore."They are thinking to set up a base here sometime in Mayand June this year. They then want to start in a small wayby setting up an office, and then ramp up. During thediscussion with state government officials, they said theywill see the market first and then establish a campus,"Karnataka State IT & BT Secretary M N. Vidyashankarsaid.Besides, Deakin University of Australia has alsoproposed to establish a base in Bangalore, as part oftheir Deakin India Research Initiatives. The university hasproposed an investment of Australian $76 million ($68million) in setting up the research institute in Bangalorethrough which it aims to churn out 400 PhDs in thebiotech sector, in four years time.The university has proposed to bear 50 percent of theinvestment, while the government of India andKarnataka government will have to share the other halfof the expenses between them.Sources say Carnegie Mellon's President Jared L Cohon,who was in Bangalore recently, held discussions withsenior state officials in this regard. The university isplanning to establish a skeleton presence in Bangaloreto study the market condition before starting a full-fledged campus here. They want to help the IT sector inthe country secure quality manpower.According to Vidyashankar, the Karnataka governmentis aggressively pitching for the project. "They don't wantland, but some funding support. Now we are in the finalstage of decision-making. Hopefully, someannouncement to this effect may be made soon,” hesaid.According to sources in the state government, the firstbatch of 200 students passed out from the finishingschool in Mysore, have been absorbed by the industry.The school run by Raman International Institute ofInformation Technology is planning to enroll 1,000students in the next batch, set to start shortly.Dale Carnegie recently announced an IT finishingschool in Bangalore in partnership with WalchandPeopleFirst, a training institute in Karnataka. Theinstitute, in Ramanagaram satellite town, entails aninvestment of Rs 70 crore. The school will enroll 1,800students in the first batch.and it contributed 40 percent of TCL's revenues of Rs TCL signed the definitive agreement to acquire 100 per4,563 crore for the first nine months of 2007-08. The rest cent equity of the privately held GCIP from Herbingerof the revenues are from its fertiliser and other inorganicCapital Partners, a private equity player with majoritychemicals business.shareholding. The acquisition, subject to US regulatiory"This is a historic occasion for Tata Chemicals which was clearances, will be done through debt and equitystarted in 1939. The acquisition will help us accessmarkets in North America, Latin America and the Farfunding,said TCL executives.East," said Homi Khusrokhan, Managing Director, TCL at A profit-making and debt-free company, GCIP isa press conference in Mumbai recently.estimated to have a turnover of over $400 million, saidGCIP's subsidiary General Chemical (Soda Ash) Partners TCL executives. In November 2007, the Gujarat-based(GCSAP) has mining and manufacturing facilities soap and personal care producer Nirma had acquiredlocated at the Green River basin in Wyoming, USA. the Searles Valley Minerals (SVM), one of the top fiveThe Green River basin is the largest and most producers of natural soda ash in the US with a turnover ofeconomical natural soda ash mine (trona) in the world. $300 million.GCSAP shares the Green River basin with three otherproducers of soda ash, OCI Chemical Corporation, Lazard and Standard Chartered Bank acted as financialFMC Corporation and Solvay Mineral. advisors to TCL on the transaction. INDO-US BUSINESS Feb-Mar 200849

NewsUnicorn Plans India Foray in TelecomUS-based telecom infrastructure company, UnicornCommunications, is planning to enter the Indian market.It intends to commence operations in about three monthsand will offer telecom infrastructure such as mobiletowers.Unicorn will compete with existing players, includingGTL, Quipo and American Towers Corporation.“The bulk of the investment will go into developing acentralized research and development centre forengineering, planning and training in India,” DavidRottmayer, CEO Unicorn Communications, said.In the long run, Unicorn plans to start a vocationaltraining and development centre to address the shortageof telecommunication skills in India and other growingeconomies.has an effect onc u s t o m e rsatisfaction.“ T e l e c o moperators arefacing numerouschallenges due tothe regulationsconcerning thesharing of activeand passiveinfrastructure. Theyare shedding theirassets, in mobile towers, to generate cash. Thisdecoupling means bigger tower management challengesin the future,” Saibal Sen, founder, Zenesys added.According to a joint study by Zenesys, a consultancy Unicorn will import specialized field camp equipment tocompany, and the Indian Institute of Management, work at the self-contained units in the rural areas. TheLucknow, the market size of telecom infrastructure sector company will buy most of the generalized transportationis estimated at $15.5 billion.and construction equipment locally. It is in talks forAccording to experts, 350,000 to 500,000 towers wouldinfrastructure projects with telecom equipmentbe required in the next three years.companies, including Nokia, Seimens and Huawei, whoalready have a considerable presence in India.“Since the demand is huge, competition is bound toincrease. In order to improve the telecom quality, there is“When we find a strategic local partner, we will enter intoa need to set up more towers,” Romal Shetty, executivea joint venture relationship that makes sense for eachdirector and head, telecom, KPMG said.party. Unicorn on its part will bring multi-skilledengineers, technicians and program managementAccording to the Zenesys study, India's expertise - all of which is short supply in India,” Rottmayertelecommunication market exceeds existing capacity and added. SBI gets US approval for setting upnew branch in New YorkThe government-owned State Bank of India (SBI) has The branch would also undertake business ofreceived the US central bank's approval to set up a new remittance, investment advisory and trade-relatedbranch in New York. SBI is India's largest commercial services, it said.bank.SBI maintains offices in 32 countries outside India andThe approval for SBI comes nearly three months after already has a branch in New York.ICICI Bank, largest private sector lender in the country,Besides, the Mumbai-based SBI has a branch ingot approval to start its branch operation in New York.Chicago, an agency in California and a representative"The proposed Jackson Heights branch (of SBI) would office in Washington.offer a range of banking products and services, The bank, which already had clearance from RBI forincluding permissible deposit accounts and small expanding its branch operation in New York, alsobusiness loans," the Federal Reserve said in an orderoperates a wholly-owned subsidiary from California. issued recently.INDO-US BUSINESS Feb-Mar 200847

NewsIndian IT Firms Get HighestExposure in US MarketsIndian IT firms such as Patni, Mphasis, Hexware have highexposure to markets in the US, with about 70-80 per centof their total sales coming from that country, a study byCiti Investment Research said.CIR, a division of Citigroup Global Markets, in its Indiastrategy report released recently has listed 10 companieseach from the IT and non-IT sectors that have highexposure to the US markets.The list has been prepared in the backdrop of concernsabout slowdown in the US affecting Indian companies.The report said, "India's overall export intensity remainsone of the lowest in the region and it is among lessersensitive economies to a deceleration in the US growth."However, the report also says that certain US-exposedexport sectors, including textiles, jewellery, leather willcontinue to live in the shadow of a slowdown in theworld's largest economy.The report said IT services provider Patni has the highestexposure to the US, with the market contributing about 80percent to its total revenues followed by Mphasis andA majority of Americans are not averse to purchasingmade-in-India products, but the opposite is the case forthose made in China, according to a new surveyconducted by renowned US-based business magazineFortune.In the wake of some of the American companies,including toymaker Mattel, recalling products theysourced from China due to high lead content, nearlythree in five (57%) of the US citizens surveyed by Fortunesaid they were "less likely to buy a product if it is made inChina."As much as 52% of the survey respondents said such anincident would not affect their purchasing decision if theproduct was made in India.Hexware, as much as70 percent of theirrevenues come fromthe US.About 65 percent ofrevenue of Satyam andMindtree come fromthe US. Infosys (63percent), Wipro (60 percent), KPIT (60 percent), TCS (56percent) and HCL Tech (56 percent) are some of the othercompanies with high US exposure.Among the non-IT companies, Arvind Mills has thehighest exposure at 35 percent followed by UnitedPhosphorous, which gets 29 percent of its sales from theUS, the report said.Sun Pharma (26 percent), Dishman (25 percent),Ranbaxy (25 percent), Glenmark Pharma (24 percent),Suzlon (22 percent) and Tata Tea (20 percent) are someof the other companies with high exposure to the USmarkets, it added.Made-In-India Products Find Favour in US"more likely" to buythese products, while30% said it did notmatter to them whethergoods were exportedfrom the dragoncountry.Fortune magazine,which surveyed 1,000adults throughout America recently said "where aproduct is manufactured does not impact Americans'purchasing decisions except when that product is madein China."Nearly three-in-five (57%) Americans were less likely tobuy a product if it was made in China. When productsIn the survey, only 35% of Americans said they were "lesswere manufactured in other areas, such as Easternlikely" to purchase a product manufactured in India,Europe (57%), Western Europe (55%), Canada (53%),while 11% said they were "more likely" to buy suchIndia (52%), Africa (51%), Mexico (48%), Japan (47%),goods.and South Korea (46%), nearly a majority said it did notFor China-made products, 11% people said they were matter, the survey found. INDO-US BUSINESS Feb-Mar 200850

Art & CraftsUnicorn Plans India Foray in TelecomUS-based telecom infrastructure company, UnicornCommunications, is planning to enter the Indian market.It intends to commence operations in about three monthsand will offer telecom infrastructure such as mobiletowers.Unicorn will compete with existing players, includingGTL, Quipo and American Towers Corporation.“The bulk of the investment will go into developing acentralized research and development centre forengineering, planning and training in India,” DavidRottmayer, CEO Unicorn Communications, said.In the long run, Unicorn plans to start a vocationaltraining and development centre to address the shortageof telecommunication skills in India and other growingeconomies.has an effect onc u s t o m e rsatisfaction.“ T e l e c o moperators arefacing numerouschallenges due tothe regulationsconcerning thesharing of activeand passiveinfrastructure. Theyare shedding theirassets, in mobile towers, to generate cash. Thisdecoupling means bigger tower management challengesin the future,” Saibal Sen, founder, Zenesys added.According to a joint study by Zenesys, a consultancy Unicorn will import specialized field camp equipment tocompany, and the Indian Institute of Management, work at the self-contained units in the rural areas. TheLucknow, the market size of telecom infrastructure sector company will buy most of the generalized transportationis estimated at $15.5 billion.and construction equipment locally. It is in talks forAccording to experts, 350,000 to 500,000 towers wouldinfrastructure projects with telecom equipmentbe required in the next three years.companies, including Nokia, Seimens and Huawei, whoalready have a considerable presence in India.“Since the demand is huge, competition is bound toincrease. In order to improve the telecom quality, there is“When we find a strategic local partner, we will enter intoa need to set up more towers,” Romal Shetty, executivea joint venture relationship that makes sense for eachdirector and head, telecom, KPMG said.party. Unicorn on its part will bring multi-skilledengineers, technicians and program managementAccording to the Zenesys study, India's expertise - all of which is short supply in India,” Rottmayertelecommunication market exceeds existing capacity and added. SBI gets US approval for setting upnew branch in New YorkThe government-owned State Bank of India (SBI) has The branch would also undertake business ofreceived the US central bank's approval to set up a new remittance, investment advisory and trade-relatedbranch in New York. SBI is India's largest commercial services, it said.bank.SBI maintains offices in 32 countries outside India andThe approval for SBI comes nearly three months after already has a branch in New York.ICICI Bank, largest private sector lender in the country,Besides, the Mumbai-based SBI has a branch ingot approval to start its branch operation in New York.Chicago, an agency in California and a representative"The proposed Jackson Heights branch (of SBI) would office in Washington.offer a range of banking products and services, The bank, which already had clearance from RBI forincluding permissible deposit accounts and small expanding its branch operation in New York, alsobusiness loans," the Federal Reserve said in an orderoperates a wholly-owned subsidiary from California. issued recently.INDO-US BUSINESS Feb-Mar 200842

Art & CraftsIndian IT Firms Get HighestExposure in US MarketsIndian IT firms such as Patni, Mphasis, Hexware have highexposure to markets in the US, with about 70-80 per centof their total sales coming from that country, a study byCiti Investment Research said.CIR, a division of Citigroup Global Markets, in its Indiastrategy report released recently has listed 10 companieseach from the IT and non-IT sectors that have highexposure to the US markets.The list has been prepared in the backdrop of concernsabout slowdown in the US affecting Indian companies.The report said, "India's overall export intensity remainsone of the lowest in the region and it is among lessersensitive economies to a deceleration in the US growth."However, the report also says that certain US-exposedexport sectors, including textiles, jewellery, leather willcontinue to live in the shadow of a slowdown in theworld's largest economy.The report said IT services provider Patni has the highestexposure to the US, with the market contributing about 80percent to its total revenues followed by Mphasis andA majority of Americans are not averse to purchasingmade-in-India products, but the opposite is the case forthose made in China, according to a new surveyconducted by renowned US-based business magazineFortune.In the wake of some of the American companies,including toymaker Mattel, recalling products theysourced from China due to high lead content, nearlythree in five (57%) of the US citizens surveyed by Fortunesaid they were "less likely to buy a product if it is made inChina."As much as 52% of the survey respondents said such anincident would not affect their purchasing decision if theproduct was made in India.In the survey, only 35% of Americans said they were "lesslikely" to purchase a product manufactured in India,while 11% said they were "more likely" to buy suchgoods.Hexware, as much as70 percent of theirrevenues come fromthe US.About 65 percent ofrevenue of Satyam andMindtree come fromthe US. Infosys (63percent), Wipro (60 percent), KPIT (60 percent), TCS (56percent) and HCL Tech (56 percent) are some of the othercompanies with high US exposure.Among the non-IT companies, Arvind Mills has thehighest exposure at 35 percent followed by UnitedPhosphorous, which gets 29 percent of its sales from theUS, the report said.Sun Pharma (26 percent), Dishman (25 percent),Ranbaxy (25 percent), Glenmark Pharma (24 percent),Suzlon (22 percent) and Tata Tea (20 percent) are someof the other companies with high exposure to the USmarkets, it added.Made-In-India Products Find Favour in USFor China-made products, 11% people said they were"more likely" to buythese products, while30% said it did notmatter to them whethergoods were exportedfrom the dragoncountry.Fortune magazine,which surveyed 1,000adults throughout America recently said "where aproduct is manufactured does not impact Americans'purchasing decisions except when that product is madein China."Nearly three-in-five (57%) Americans were less likely tobuy a product if it was made in China. When productswere manufactured in other areas, such as EasternEurope (57%), Western Europe (55%), Canada (53%),India (52%), Africa (51%), Mexico (48%), Japan (47%),and South Korea (46%), nearly a majority said it did notmatter, the survey found.INDO-US BUSINESS Feb-Mar 200842