A Publication of the Embassy of India, Washington, D.C.

March 1, 2011

I India RevieI w Vol. 7 Issue 3 www.indianembassy.org

Finance Minister Pranab Mukherjee arrives in Parliament House to present the General Budget 2011-12, in New Delhi on February 28, 2011. India unveils Budget 2011-12 n India’s $280 billion n India’s economy n India hikes export budget for 2011-12 likely to grow by 9 pc target to $220 bn for seeks to further in 2011-12, says chief fiscal 2010-11 from advance growth of the PM’s Economic the earlier estimate and curb inflation Advisory Council of $200 bn Cover STORY federal budget to advance growth, reforms Finance Minister allows registered mutual funds to accept money from foreign investors and hikes the cap on investments in infrastructure bonds

Finance Minister Pranab Mukherjee arrives in Parliament House to present the General Budget 2011-12, in New Delhi on February 28, 2011. Ministers of State of Finance S.S. Palanimanickam (left) and Namo Narain Meena (right) are also seen.

ndia’s `12.58 lakh crore money toward health, infrastructure, cent. He also proposed a “very sen - 2 (`12.58 trillion or $280 billion) education, farming and defense, and ior” category of income tax payers, Union Budget for 2011-12 on outlined measures to check the fiscal above the age of 80, for whom the tax IFebruary 28 sought to address deficit. In a 110-minute Budget exemption will be up to `5 lakh. In every stakeholder with tax reliefs to Speech in the Lok Sabha, the Lower addition, he lowered the qualifying cheer households and corporates alike House of Parliament, Mukherjee said age limit for senior citizens to avail of while also promising reforms on sub - he proposed to enhance the income tax cuts to 60 from 65. sidies and foreign investment along tax exemption limit to `180,000 The Finance Minister also promised with measures to curb inflation and ($4,000) for the next financial year to bring down the fiscal deficit to 4.6 push growth. from `160,000 ($3,543) and said percent of India’s gross domestic Finance Minister Pranab corporate tax surcharge would be product (GDP) from 5.1 percent of Mukherjee also proposed more lowered to 5 percent from 7.5 per - GDP in the revised estimates, while

March 2011 India Review Cover STORY hiking allocation for education by 24 The Finance Minister maintaining a high growth rate percent, health by 20 percent, infra - despite the adverse international eco - structure by 23 percent and defense said that the foreign nomic climate,” the Prime Minister by 11 percent. Mukherjee’s proposals direct investment observed. for a new subsidy regime on farm policy was being Mukherjee also laid significant nutrients and direct cash transfers to emphasis on the institutional frame - the users of fertilizers and kerosene revamped, which may work in rural and semi-urban areas by addressed a long-pending reform. result in the entry of hiking outlays for rural banks and “As an emerging economy, with a multinational firms in micro-finance units, while promising voice on the global stage, India stands 11 food parks and major initiative for at the threshold of a decade which India’s $300 billion cold chains. 3 presents immense possibilities,” the retail trade industry, The Finance Minister also allowed Finance Minister said in his speech. apart from promising all registered mutual funds to accept He set the tone for what was his money from foreign investors and sixth budget by stating that India had to liberalize norms for hiked the cap on investments in infra - bounced back after the global finan - pension, insurance and structure bonds and intra-fund trad - cial crisis with broad-based growth, banking sectors ing during the lock-in period. “To lib - even as inflation remained a matter of eralize the portfolio investment route, concern, especially food prices — it has been decided to permit SEBI even though these had dipped from (Securities and Exchange Board of over 20 percent — to around 7 per - solidation and high economic India) registered mutual funds to cent now. growth,” he said. “Our growth in accept subscriptions from foreign This apart, Mukherjee said the for - 2010-11 has been swift and broad- investors who meet the KYC (know eign direct investment policy was based. The economy is back to its your customer) requirements for being revamped, which may result in pre-crisis growth trajectory. While equity schemes. This would enable the entry of multinational firms in the agriculture has shown a rebound, Indian mutual funds to have direct country’s $300 billion retail trade industry is regaining its earlier access to foreign investors and widen industry, apart from promising to lib - momentum. Services sector the class of foreign investors in Indian eralize norms for pension, insurance continues its near double-digit run. equity market,” Mukherjee said. and banking sectors. Fiscal consolidation has been impres - On the tax front, the Finance “We are reaching the end of a sive,” the Finance Minister said. Minister proposed to keep the excise remarkable fiscal year. In a globalized The proposals drew immediate duty rates virtually unchanged, even world, with its share of uncertainties praise from Prime Minister Dr. as 130 new items were brought under and rapid changes, this year brought Manmohan Singh, who was particu - tax coverage with a nominal duty of 1 us some opportunities and many chal - larly pleased with the decision to hike percent. The customs duty rates, lenges as we moved ahead with steady the income tax limit. “The Finance however, were retained at existing steps on the chosen path of fiscal con - Minister deserves congratulations for levels.

highlights of budget for 2011-12

n Growth at 8.75 percent to 9.25 percent in 2011-12. Economy n `58,000 crore ($12.8 billion) for Bharat Nirman — increase of could have performed better in 2010-11 `10,000 crore ($2.2 billion) n Goods and Services Tax rollout on April 1, 2012; bill for this n Mahatma Gandhi National Rural Employment Guarantee Scheme would be presented in Parliament this year wage rates linked to consumer price index n Independent debt management office being set up; public n Infrastructure critical for development; 23 percent higher allocation debt management bill to be introduced in Parliament in 2011-12 n Tax exemption limit raised from `160,000 to `180,000; for n Food storage capacity to be augmented; 15 more mega food parks senior citizens, qualifying age reduced from 65 to 60 years to be set up in 2011-12 n Age for below poverty line old age pension scheme to be n Cold storage facilities to be recognised as infrastructure sector reduced from 65 to 60 years n Service tax to stay at 10 percent n `164,415 crore ($36 billion) for defense; more will be given if n FIIs can invest $40 billion in corporate bonds required n Foreign investment in mutual funds allowed n Twenty-four percent increase in educational outlay

March 2011 India Review Bilateral EVENTS Gary Locke meets CIM Anand Sharma US Secretary of Commerce discusses further strengthening of India-U.S. relationship in business and trade with the Indian Minister for Commerce & Industry

eading delegation of U.S. billion. We hope that it will continue to companies on a business improve further given the nature of development mission to pro - engagement, and also the investments. Lmote U.S. high technology in Both ways will see an upward trend, India, U.S. Secretary of Commerce particularly the U.S. companies com - Gary Locke called on Indian Minister ing and setting up manufacturing facil - of Commerce and Industry Anand ities and participating in India’s infra - Sharma on February 7, 2011. structure building and agro-processing In their discussions, the two leaders and food processing sectors.” focussed on deepening mutually bene - Minister Sharma said the two coun - ficial trade, providing win-win oppor - Secretary Gary Locke with Minister Anand tries would continue to work toward Sharma in New Delhi on February 7. tunities for both countries. Secretary further improving bilateral trade. “This Locke and Minister Sharma had earli - said. “We welcome the significant is a follow-up to consolidate the bilat - er met during President Barack growth of investment and trade in eral economic partnership, and also Obama’s November 2010 visit to goods and services between our two strengthening the commercial dialogue India. “The US-India bilateral rela - countries, but we believe our bilateral between us. We have reviewed the tionship is stronger than ever before, commerce is far from its potential.” progress that we have made and also and President Obama’s recent visit In his remarks after the meeting, the issues of market access, non-tariff highlights the priority this administra - Minister Sharma said, “The bilateral barriers to further improve upon the tion places on this relationship,” Locke trade with the U.S. in 2010 was $50 bilateral trade,” he added. India-US Aviation Cooperation Program

inister for Overseas Indian receives the internal approvals in India. Affairs and Civil Aviation The two sides discussed the benefits M Vayalar Ravi met with Gary of the ACP partnership in being able to Locke, the U.S. Commerce Secretary, identify and execute technical collabo - in New Delhi on February 7, 2011. ration projects. The Indian side said Both sides acknowledged the excellent that projects in the pipeline such as the cooperation the two countries have grant agreement for the inspector had through the Memorandum of training programme or TMODT for Agreement and India-U.S. Aviation the DGCA may be given priority. Cooperation Program (ACP). Minister Ravi thanked Locke for The ACP bilateral partnership which committing to fund a technical assis - was launched in 2007, targets mutual tance program for the AAI for the interests in supporting modernization installation and operational certifica - 4 requirements of India’s rapidly grow - tion of a pilot Ground Based ing aviation sector. The United States Minister for Overseas Indian Affairs and Civil Augmentation System at the Chennai Trade and Development Agency is the Aviation Vayalar Ravi meeting U.S. Secretary of International Airport which will help to Commerce Gary Locke in New Delhi on lead sponsor of the ACP and funds February 7, 2011. improve the safety and efficiency of technical assistance programs for the India’s air traffic management systems. Directorate General of Civil Aviation sides exchanged views on how to The two sides agreed to hold the (DGCA) and Airports Authority of further this cooperation. Third India-U.S. Aviation Summit in India (AAI). Minister Ravi thanked Ravi also said that the Executive India sometime this year. The two Locke for the projects already under Agreement for the Bilateral Aviation ministers also presided over a business way which have helped the Indian civil Safety Agreement between the two delegation in which business heads of aviation sector on the whole. Both sides may be signed soon once it various companies participated.

March 2011 India Review Ambassador’s TRIBUTE K. Subrahmanyam: A Visionary His far-reaching influence over India’s strategic thinking came not from a title, but through the power of his ideas, says Ambassador Meera Shankar

Subrahmanyam, who died President Barack Obama of the India- at the age of 82 in New U.S. relationship as “one of the defin - Delhi, on February 2, 2011, ing partnerships of this century” is an 5 K was the doyen of India’s outcome for which Subrahmanyam strategic community. India’s Prime worked tirelessly over his last decade, Minister, Dr. Manmohan Singh, even as he battled cancer. described him to The Hindu as “an I had the good fortune of working outstanding public servant, visionary with him as a young Foreign Service and thinker who will be missed by the officer and knew him closely for 30 generations ... who were inspired and years. He represented the best in the influenced by his thoughts.” Indian scholastic tradition in being He founded India’s Institute of genuinely indifferent to creature com - Defense Studies and Analysis in 1968 combined with a passionate commit - forts, wealth, and formal recognition. and served as its director until 1975. ment to the dream of India’s “tryst He enjoyed living in the world of ideas After serving as chairman of India’s with destiny” as articulated in 1947 by and had little patience for small talk. Joint Intelligence Committee and sec - Prime Minister Jawaharlal Nehru in a When a visiting scholar asked him retary in the Ministry of Defense, speech marking the country’s moment what exercise he did to keep fit, he Subrahmanyam returned to lead the of independence; Subrahmanyam was responded with the quip, “jumping to Institute in 1980 until he retired in then just 18. When he first began ana - conclusions”! If you disagreed with 1986. He continued to write and speak lyzing the role and importance of hard him, he would argue and debate fierce - on strategic issues in India in retire - power in India, it was something new ly, but treated you as an equal and ment. For almost 40 years, his real — a marked contrast to the prevailing expected you to respond as one, and if influence came not from a title or gov - framework of idealism that marked the you did, he respected you for it. In this, ernment post but through the power of country’s peaceful freedom movement, he embodied a refreshing contrast to his ideas and the vigor of his intellect. a time when politicians and activists the prevailing ethos of strong hierar - The discipline of strategic writing espoused the high moral principles of chies demanding deference to rank. and analysis in India emerged and peaceful coexistence, distance from He was willing to go against the tide. grew under his influence. A sharp and power blocs and universal disarma - Few who only saw his writings and forceful thinker and writer, he also ment. Subrahmanyam’s prodding role heard him speak at seminars in recent mentored many of India’s leading was timely. The consequences of years could have imagined the contin - strategic thinkers. In discussion and India’s neglect of hard power were uous, painful, and difficult struggle he debate he was formidable, and his clear in the border conflict of 1962. had with cancer and the extraordinary mastery over facts and details would He came to champion India’s right will power that he displayed in coping invariably leave a profound impression to acquire strategic capabilities, includ - with it and still being so productive and on those who interacted with him. ing nuclear capabilities. When India prolific. In my visits to India as ambas - Subrahmanyam’s life and influence became nuclear in 1998, he argued for sador, I would inquire from mutual is testament to the power that clear restraint. The principles he articulated friends about the state of his health — ideas and argumentation can wield in a of “no first use” and having only a before I knew it, we were meeting for a democracy. His role in shaping policy minimum credible deterrent are today spirited discussion over lunch or din - and strategic thinking in India only part of India’s nuclear doctrine. ner. He was a giant of a man. India will grew throughout his lifetime, though He was also one of the earliest and miss him. he never held an office of critical strongest proponents of closer ties (Ambassador Meera Shankar’s responsibility within the government between India and the United States. tribute to K. Subrahmanyam was during his last three decades. He was ahead of the curve in seeing originally published in Foreign Policy Successive prime ministers and their the growing convergence of interests dated February 4, 2011. The full text is key aides turned to him for advice and anchored in our shared commitment to available at: counsel. He was guided by a hard- the values of democracy and open http://www.foreignpolicy.com/arti - headed appreciation of power and its markets. The characterization in 2010 cles/2011/02/04/k_subrahmanyam_a role in contemporary affairs. This was by Prime Minister Dr. Singh and _tribute )

March 2011 India Review Ambassador’s ENGAGEMENTS Keynote Address at Emory University’s Emerging India Summit on ‘Why India Matters’ Excerpts from the address by Ambassador Meera Shankar on February 24, 2011

am delighted to be here today at While there is some misapprehension the Emerging India Summit of in the U.S. that this leads to job loss - the Emory University and to es, this is not borne out by facts. As I have the privilege of speaking to President Obama noted in his you on the interesting subject why remarks in Mumbai during his visit to India matters. India last year these are old stereo - It can be said that India has always types, which ignore today’s reality mattered even from historic times. As that increased economic interaction one of the ancient civilizations of the between India and the United States world, India made significant contri - can be a win-win proposition for both butions to the advancement of human of us. thought, be it in the realm of religion or A second significant implication of philosophy, mathematics or literature. billion people, India is already the sec - these statistics is that India also repre - Mark Twain described it, as the “cradle ond largest country in the world. The sents a rapidly growing market. We of the human race, the birthplace of population is likely to continue to grow have today a large and growing middle human speech, the mother of history, though at an increasingly slower rate class. While estimates of its size vary the grandmother of legend, the great and is likely to stabilize at 1.5 billion by from 50 million to 300 million people, grandmother of tradition…” Allowing 2050. We are likely to surpass the pop - what is true is that this is the fastest for some literary exaggeration, he got ulation of China by about 2030. The growing segment of our population. A the big picture right! sheer number of people representing study by McKinsey predicts that if Today India matters because of the one sixth of humanity implies that India continues on its current econom - democratic values it stands for and the whatever India does, be it in terms of ic growth, the income levels of popula - economic transformation it is under - social or economic development, will tion will almost triple, and India will going, which not only brings hope for have an impact globally. climb from its position as the twelfth- a better future for its one billion plus Today the median age in India is largest consumer market today to people but could become an anchor of just over 25 years and a vast majority become the world’s fifth-largest con - stability and opportunity for the global of our population is less than 65 sumer market by 2025. economy. years old. This implies that over the A case in point is the fast growing Today India is among the few coun - next several decades, we would con - mobile telephony market. Today India tries which became independent in the tinue to see a rise in our work force is the world fastest growing market for mid-20th century, which has sus - which would also provide the critical mobile telephony. The number of tained an unbroken democratic tradi - energy and dynamism to sustain our active mobile telephone subscribers tion. It is the world’s largest democ - high economic growth path. India now is poised to reach 800 million. racy with an electorate of more than already has a large pool of skilled What is remarkable is that this growth 700 million people. When India goes workers including highly skilled pro - in numbers has happened over the last to elections as it did two years ago in fessionals like engineers and doctors. 8-10 years. Mobile telephony was 2009, it is a spectacle that is watched The existing pool is also increasing introduced in India about 15 years 6 eagerly across the world, not only rapidly. What this means is that ago, but was seen initially as a luxury. because of the massive scale and color Indian companies can work with A growing population also implies of the exercise, but more importantly other international companies in that government will need to invest in because of the message it conveys of partnership to better synergize their improving and further developing governance based on the choice and respective resources. We have already essential services so that we can reap will of the people. seen this in the Information the advantage of the demographic div - India is a land of incredible diversity. Technology sector, where multina - idend. These would include delivery Like the United States, it celebrates tional firms have been able to benefit mechanisms in both urban and rural pluralism. This is a tradition that is by utilizing the services of India’s areas including public infrastructure, rooted in our civilization. skilled workforce, and increase their development of new educational and With a population of more than 1.1 profitability and competitiveness. training facilities for our young popu -

March 2011 India Review Ambassador’s ENGAGEMENTS lation to impart them the necessary ment reach all sections of society. With the U.S., we now have a strate - skills and upgrading our health care Indeed our economic growth has not gic partnership. Our shared values of systems. In each of these areas the gov - followed the traditionally accepted democracy and pluralism and our ernment is making efforts to rapidly model of economic transformation increasingly convergent interests pro - increase our capacities. from agrarian to manufacturing and vide a firm foundation for our relation - However government’s efforts alone then to the services economy. It has ship. We see our relationship with the would not be sufficient and we are been propelled by the services sector United States, which is one of our increasingly working with the private utilizing the advances in technology largest trade, investment and technolo - sector both in India and outside to pro - and innovation. gy partners, as a vital element of our vide the necessary resources. For I had mentioned a while ago about endeavor to transform our socio-eco - instance for development of infrastruc - our development solutions having rele - nomic conditions and the successful 7 ture, including building of new roads, vance for other countries as well. visit of President Obama to India last ports, airports and augmenting our Indeed tele-medicine and tele-educa - November has significantly expanded power generation capacities, it is esti - tion are two areas where this is already and deepened our cooperation particu - mated that we would require an invest - happening. Today we are providing larly in areas such as health, education, ment of close to $1.7 trillion over the tele-medicine services to our neighbor - agriculture, infrastructure and trade next decade. This represents a huge ing countries such as Bhutan. A similar and commerce which are vital for our economic opportunity for our interna - effort is underway to connect countries own development. tional partners. of Africa through a pan African e-net - These areas also represent tremen - In 2010, the Indian economy work. India is now increasingly being dous opportunities for American busi - rebounded robustly from the global seen as a solutions hub, a base for con - nesses and companies, and would financial crisis — in large part because ducting sophisticated R&D and a tech - also help further strengthen the bonds of strong domestic demand — with nology innovator. between our peoples. Our relationship growth expected to be around 8.5 per - Our foreign policy always had a with the U.S. is people-centric. The cent in the present financial year that broad and open outlook. Thanks to nearly 3 million strong Indian ends in March 2011 and similar levels our economic growth and develop - American community has come of age expected to be sustained in 2011. ment over the last two decades, we and is a vital bridge between our Today we are already the fourth now also have increased capabilities nations. Today, India is confident and largest economy in purchasing power and capacities to contribute to global aware of its capabilities. We are parity terms and if we sustain these peace and security. We have today a inspired by the success that we have high levels of growth, we are likely to broad agenda of cooperation with the achieved and driven by the aspirations become one of the three largest major countries and regions of the of our young population. But at the economies in real terms as well in the world. In Asia, India is seen as an same time we have not lost sight of decades ahead. anchor of moderation and stability. the ideals that give us our strength. India’s example shows that democ - We are also expanding our ties with (The full text of the keynote address racy and development can go together. our extended neighborhood through can be read at: http://www.indianem - Our policy choices for development greater economic, commercial and bassy.org/prdetail1685/keynote- have been the product of a healthy political engagement. Our growth has address-by-ambassador-meera- debate resulting in a broad political helped contribute to regional econom - shankar-at-emory-universityan - consensus. Our key national priority is ic growth. Countries such as Sri drsquo%3Bs-emerging-india-summit- to have sustained rapid and inclusive Lanka and Bhutan have been able to on-24th-february-2011- economic growth while ensuring that leverage this for their own economic andquot%3Bwhy-india-matter - the fruits of our economic develop - prosperity. sandquot%3B)

Ambassador Meera Shankar extends invitation to South Carolina Governor Nikki Haley to visit India overnor Nikki Haley of South Carolina Governor Haley said that she looked forward ally beneficial economic engagement with the met Ambassador Meera Shankar in to strengthening trade and economic relations fast-growing Indian economy and briefed her GWashington DC. At their meeting, between the State of South Carolina and India on developments in the Indian economy and on Ambassador Shankar recalled the impressive and was particularly interested in attracting India-U.S. relations. She also extended an invi - ceremony marking Governor Haley’s inaugura - investments to South Carolina, which would tation to Governor Haley to travel to India with tion where she was amongst the distinguished provide momentum to their economy. a trade and business delegation. At the meet - audience and said that this was a proud Ambassador Shankar discussed with ing, they agreed to finalize a mutually conven - moment for the Indian-American community. Governor Haley the great potential for a mutu - ient timeframe and to prepare for the visit.

March 2011 India Review Embassy EVENTS

BRIEFING ON INDIA’S FOREIGN POLICY

Ambassador Meera Shankar addressing students from universities in the Greater Foreign Secretary Nirupama Rao briefing the students on ‘India’s Washington, DC area, at the Embassy on February 13. Foreign Policy’ at the Embassy on February 13.

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A section of the audience.

March 2011 India Review Embassy EVENTS PRESS BRIEFING BY FOREIGN SECREtARY

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Foreign Secretary Nirupama Rao (right) addressing a press A section of the audience. conference at the Embassy of India in Washington, DC on February 15. Also seen in the picture is Ambassador Meera Shankar.

NAtIONAL COuNCIL OF INtERNAtIONAL VISItORS’ BRIEFING

Ambassador Meera Shankar addressing members of the National Guests in attendance. Council of International Visitors at the Embassy on February 18.

March 2011 India Review Consulate EVENTS INtERACtIVE DISCuSSION ON uNION BuDGEt 2011-12

he Consulate General of India, New York organ - ised an interactive panel discussion on the Indian Union Budget on 28th February 2011, at the TConsulate Ballroom. Representatives of financial institutions, academicians from various universities, compa - ny executives, media persons, and community members attended the lively interactive discussion. Dr. A.M. Gondane, Deputy Consul General, welcoming the guests introduced broad outlines of the Budget and the A view of the interactive panel that discussed the Union Budget 2011-12 Economic Survey. He said that the Indian economy had imparting developmental orientation by way of increased come out of the sluggishness consequent to the global finan - spending on infrastructure, Bharat Nirman and the other cial crisis in 2007 and was on the path of recovery with vital sectors of the economy. achievement of 8.6 percent growth during the current finan - Dr. Rajiv Sobti, MD, Chief Investment Officer, Nomura cial year and is projected to grow at slightly over 9 percent office at the World Trade Center, New York stated that the in the year 2011-12. Budget was balanced with several vital sectors focused for He said the Budget aimed at consolidating the growth. He said that some explicit measures for developing Government’s fiscal position by pegging the deficit to 4.6 the secondary market in derivatives would give a fillip to percent in 2011-12 and 3.5 percent in year 2013-14, investments by financial institutions and funds from abroad. encompassing inclusiveness through increased social spend - He appreciated the opening of investments in mutual fund ing on education, health and rural development, and by foreigners.

HOuStON CELEBRAtES BOHRA EVENt

Consul General Sanjiv Arora addressed a function held at the Dawoodi Bohra Community Center in Houston on 13 February, 2011, to celebrate the 100th birthday of their spiritual leader, His Holiness Syedna Mohammed Burhanuddin (tus). In the photo, Consul General is being greeted by His Holiness’s son, Shehzada Malikul Ashtar Bhaisaheb Shujauddin, along with Shaikh Nooruddin Yamani (‘Amil Saheb’), President, Dawoodi Bohra Community of Houston. Shehzada Malikul Ashtar Bhaisaheb Shujauddin honouring Consul General Sanjiv Arora with a traditional Shawl.

10 The new Executive Committee of India Culture Center (ICC), Houston, met Consul General Sanjiv Arora on 11 February, 2011, and discussed issues of mutual interest, especially the long- standing cooperation between ICC and the Consulate. Col. R.P.S.Bhalla is presenting a memento to the Consul General. Others in the picture are (r to l): Mr. Surender Talwar, Vice President, Mr. Swapan Dhairyawan, Picture shows Consul General Sanjiv Arora Immediate Past President and Mr. addressing a well-attended Road Show on Hemant Patel, Treasurer. GoI’s New Exploration Licensing Policy (NELP IX) in Houston on 14 February, 2011.

March 2011 India Review ECONOMY NEWS ‘INDIA tO GROw 9 PERCENt IN 2011-12’ ndia’s economy is likely to grow estimates. The services sector is expect - by 9 percent in 2011-12 on the ed to grow 10.3 percent in 2011-12 as back of 10.3 percent growth in against the estimated growth of 9.6 I services and 9.2 percent expan - percent in the current fiscal and indus - sion in industry sector, the Chairman of try is likely to grow 9.2 percent next fis - the Prime Minister’s Economic cal as against 8.1 percent projected Advisory Council said on February 21. growth this fiscal. “We hope that the economic growth However, agricultural growth is like - in the next fiscal year will be about 9 ly to be slow next fiscal because of high 11 percent. Services as well as industry are base. “Agriculture has done well this expected to do better,” said year. But you will also recognize the C. Rangarajan, Chairman of the C. Rangarajan fact that the strong growth rate in agri - Economic Advisory Council to the culture of 5 percent plus comes on top Prime Minister, while releasing the Review of the Economy of somewhat poor agricultural performance in the two pre - for 2010-11. Rangarajan said the Indian economy was vious years,” he said. Rangarajan said industry as a whole expected to expand 8.6 percent in the current fiscal, broad - could grow by 8.1 percent and pegged manufacturing ly in line with the Council’s last year projection and budget output at 8.8 percent for the current fiscal.

Indian economy grows 8.2 $42 bn uN pension fund scouts for percent in third quarter investment opportunities in India n a boost for the Indian stock markets, the United Nations is looking to ramp up the India portfolio of its $42 billion I pension fund with more investments, especially in private projects in infrastructure and real estate. The members of the investment committee of the United Nations Joint Staff Pension Fund (UNJSPF), an expert group that advises on where to invest pension funds, were in India recently and held a series of meetings with asset management firms in New Delhi. “We are looking more strategically at diversification of our investments, particularly in emerging markets and specifically with regard to more opportunities the fund could take advantage of here,” said Warren Sach, the UN Secretary-General’s represen - tative for investment of UNJSPF assets. Sach pointed out that India had bright prospects for sustained fficial figures released on February 28 show that growth, based on factors like demography and growth of the the Indian economy has grown 8.2 percent in the working population. O third quarter of the current fiscal, slower than an average of 8.9 percent in the first two quarters. India approves foreign Quarterly gross domestic product (GDP) at factor cost investment worth $300m at constant prices (2004-05) for third quarter of 2010-11 is estimated at $279.5 billion, as against $258 billion he Indian government on February 23 approved 19 propos - during the same period last year, registering a growth of 8.2 als of foreign investment worth `1,358 crore (over $300 mil - percent, according to data released by the Central Statistical T lion) including a big-ticket deal from Shriram Capital Ltd. Organization. Agriculture, forestry and fishing grew at 8.9 According to a statement from the government, the biggest percent, construction at 8.0 percent, trade, hotels, transport proposal is from Shriram Capital Ltd. which intends to bring in and communication at 9.4 percent, and financing, insur - `1,180 crore ($262 million) through induction of foreign equity in ance, real estate and business services at 11.2 percent in the an investing company. Other major investors include FM radio broadcasting company quarter under review. The growth rate in mining and quar - Reliance Broadcast Network Ltd, foreign institutional investors rying, manufacturing and community, social and personal and non-resident Indians. services is estimated at 6 percent, 5.6 percent and 4.8 per - cent, respectively.

March 2011 India Review Economy NEWS

IndIa Back on PRe-RecessIon BP to buy 30 pc stake in gRowth Path: woRLd Bank RIL oil blocks for $7.2b ukesh Ambani-led Reliance Industries he Indian economy appears M(RIL) has said that London-based global energy major BP was buying a 30- to be back to the growth percent stake in 23 of its oil and gas blocks trend before the global finan - for a whopping $7.2 billion. T cial crisis with a particularly The pact, which would constitute one of strong GDP growth over the first half the largest single foreign direct investment of the 2010-11 fiscal, though there proposals for India, was signed in London have been some inflationary worries, by Ambani and Robert Dudley, the chief the World Bank has said. executive of BP Group, formerly called The Reserve Bank of India (RBI) is British Petroleum. “The partnership across the full value likely to continue its policy of cautious chain comprises BP taking a 30 percent rate hikes in an uncertain environment, sector bounced back strongly after the stake in 23 oil and gas production sharing the World Bank said in the second of 2010 monsoon brought normal levels contracts that Reliance operates in India, its semi-annual series of India Updates of rainfall, and the industrial sector including the KG D6 block,” the $44.6 bil - released on February 22. registered double-digit growth for lion Indian oil to retail giant said in a state - The signals are not clear whether three consecutive quarters. ment on February 21. core inflation was caused by more gen - The current account deficit in the BP would pay Reliance Industries an eral demand pressures, which would 2009-10 fiscal year was the largest aggregate consideration of $7.2 billion for the interests to be acquired in the 23 pro - best be addressed with more aggressive ever in dollar terms and the monthly duction sharing contracts, RIL added. policy tightening, or by second round deficit widened further during the first effects of earlier food and commodity half of the 2010-11 financial year, but price shocks, for which the current the trend then reversed with import India releases `150 monetary policy stance is likely to be growth slowing and export growth commemorative coin adequate, it said. The December 2010 accelerating in September-December Update notes that India’s agricultural 2010. coin of `150 denomination ($3.33) Awas released by Finance Minister Pranab Mukherjee in New Delhi on February 26, India raises export target bearing the por - trait of Chanakya, the to $220 billion lotus and the uoyed by nearly 30 percent is pretty good. My reckoning is by next honeybee, to increase in the first 10 months, month we will cross $200 billion and conclude the celebrations marking 150 B India has hiked its export target we should end this financial year at years of India’s Income Tax Department. to $220 billion for fiscal 2010-11 from $220-$225 billion,” Khullar said. Chanakya, often called India’s the earlier estimate of $200 billion, India’s total imports grew 17.6 Machiavelli, though he predated the Italian thinker by some 1,800 years, was advisor Commerce Secretary Rahul Khullar percent to $273.6 billion in the April- to the first Mauryan emperor Chandragupta said on February 12. January period, resulting in a trade (from 340 BC to 293 BC), and laid the foun - The country’s exports went up 32.5 deficit of $89 billion. In January, India dation for governance with his treatise, the percent to $20.6 billion in January, led imported goods worth $28.6 billion. Arthasastra . Why the flower and the bee? by a 70 percent surge in engineering Khullar said exports of engineering “Ideally, governments should collect taxes 12 and a 36 percent jump in petroleum products surged 70 percent to $45 bil - like a honeybee, which sucks just the right and oil products. Exports increased lion in the April-January period, main - amount of nectar from the flower, so that 36.4 percent to $22.5 billion in ly because of huge demand for Indian both of them can survive. The lotus is our national flower,” explained the Finance December. In April-January, the total products in South American countries. Ministry. exports reached $184.6 billion — just Other sectors that helped in better The `150 coin is not only unique for its $15.4 billion short of the financial year than expected performance in export denomination, but also in terms of its size target of $200 billion. data include: gems and jewellery (9.3 and metal composition. This 44-millimetre Exports increased 29.4 percent in percent increase at $24.5 billion), circular coin is made of 50-percent silver. the first 10 months of 2010-11 against petroleum and oil products (36 per - Also released was a coin of `5 a whole year target of 15 percent. cent up at $30 billion), and cotton yarn denomination. “On the whole, export performance (52 percent up at $4.7 billion).

March 2011 India Review Economy NEWS IndIa’s goLd consUMPtIon UP By 66 Pc In 2010 he World Gold Council’s metal. “If we look at some indicators (WGC) Indian chapter on like a 22 percent increase in prices in February 18 reported that the the last three years, then gold prices T country consumed 66 per - this year may go up, but then this is not cent more of the precious yellow metal certain,” Mitra said. in 2010 as compared to the previous While the demand last year was led year — a total of 963.1 tons valued at by gold jewellery consumption, which `1,733.3 billion (about $38.4 billion). grew by 69 percent at 745.7 tons val - The WGC said the growth was pri - ued at `1,342.1 billion, that of invest - 13 marily driven by increase in gold jew - ments in gold products like bars and ellery consumption and investment in coins grew by 60 percent at 217.4 tons gold bars and coins in the country, priced at `391.3 billion. which has seen an exorbitant increase countries and the uncertainty in the The astronomical rise in the con - in gold prices last year. international currency market. “If we sumption of gold, according to Mitra, “The year 2010 saw one of the high - look at the strong growth in January in is due to many factors, including est growths in gold consumption in the which the country consumed around stocking up of gold and diversification country till date,” said Ajay Mitra, 85 tons of gold — which was higher of assets by several central banks of WSG’s Managing Director for Middle than the previous year’s like period — Asian countries, coupled by geo-politi - East and India. we foresee a sustainable demand this cal conditions and heavy buying of Mitra said the yellow metal would year,” he said. gold jewellery in India and China. likely be on a bull run even in 2011, as Regarding prices, Mitra said the “Last year, the country imported prices may increase due to massive high demand in 2011 may drive up 918 tons of gold — the highest in a buying by central banks of many Asian even further the price of the high value year,” Mitra said.

artin dynamics signs civil aviation sector can absorb $4.5 million deal investment of over $120b: PM with Us firm echnopark-based artificial intelligence rime Minister Prime Minister said. Tcompany Artin Dynamics on February 14 Dr. Manmohan “The Ministry of Civil signed an agreement with Triune Infomatics P Singh said on Aviation and the Airports in California to distribute its flagship February 12 that India’s Authority of India have product SPARA in the U.S. market. civil aviation sector had started the development The $4.5-million, three-year deal with Triune Infomatics will come into effect from witnessed unprecedent - and modernization of the first quarter of 2011, a senior company ed growth in the recent existing airports on a mis - official said. past and would have the sion mode to create SPARA is a power-saving product that potential to absorb investment of over world-class air infrastructure in our works on artificial intelligence technology. It $120 billion. “I am told the projected country,” he said. Dr. Singh said: “Air uses innovative hardware engineering to growth of India’s aviation sector has a transport in India has witnessed reduce power wastages from an idling potential to absorb investment of over unprecedented growth in the recent computer, according to the company. $120 billion with attendant job cre - past. During the last seven years, Nitin Prabhakar, Managing Director of Artin Dynamics, said the latest deal was ation for lakhs of workers directly and domestic air traffic has tripled and another significant step for the company’s indirecly,” Dr. Singh said, while inau - international traffic has more than global expansion. gurating the new terminal at the doubled. An exponential growth in “We are pleased to partner with Artin Thiruvananthapuram International passenger traffic is expected in this Dynamics. This agreement will enable us to Airport in the southern Indian state of decade as well.” The new terminal is a introduce SPARA and other energy-saving Kerala. “The government fully under - three-storeyed fully air-conditioned products from Artin to the U.S. market,” said stands the importance of the civil avia - facility with a floor area of 20,000 sq Rahul Kuruvilla, President of Triune tion sector to the Indian economy, meters. It will now be open to interna - Infomatics, one of the leading IT consulting firms in the U.S. particularly as it gets more and more tional traffic, as domestic operations integrated to the global economy,” the will continue at the old terminal.

March 2011 India Review Science NEWS India to issue $11 bn tender for six more subs ndia will this year issue a $11 we are going Currently, the Indian Navy operates billion global tender for build - through the process 14 diesel-electric submarines after it ing six more next generation of Request For decommissioned two Foxtrot class I vessels, Navy Chief Admiral Information. I hope submarines last year. Of the 14 sub - Nirmal Verma said in New Delhi on within this year we marines, 10 are Kilo class Soviet-ori - February 16. will be able to push gin vessels and the rest are HDW The new submarine program, the tender,” Verma German-origin vessels. known as Project 75I, will be a follow- said. The Indian Navy issued the RFI for on to the six Scorpenes that are being Defense Minister French firm Project 75I in September last year. built at the Mumbai-based Mazagon A.K. Antony DCNS is now exe - The Defense Acquisition Council Docks Limited (MDL) under Project cuting the Project chaired by Defense Minister A.K. 75. “The government has already 75 Scorpene orders in collaboration Antony gave the approval for Project cleared Project 75I. At the moment, with MDL at a cost of $4 billion. 75I last July.

Production of upgraded Disney buys Indian- indigenous tanks by 2014 American’s social ndia will begin production of an upgraded version of the indige - networking site I nous Arjun main battle tank (MBT) by early 2014, an official said ntertainment giant Walt Disney Co has on New Delhi on February 14. E acquired Togetherville, a social network The Defense Research and for elementary school-age children founded Development Organization (DRDO) by an Indian-American, to strengthen its is readying the Mark-II version of the offerings in online gaming. Arjun for its first summer and winter 2014, the Arjun Mark-II tanks will be Togetherville seeks to mimic the experi - trials this year. ready for production,” the DRDO ences of social networks such as Facebook, Among the upgrades, the Mark-II official said. The Army has already but in a way that’s protective of children tank would feature an indigenous ordered 248 Arjun Mark-I tanks for younger than 10 and allows for parental supervision. engine that would replace the existing induction into its armored regiments. The site lets children connect with their German engines of the 58-ton Arjun The first lot of 124 tanks, for which the real-world friends in their virtual Mark-I. The developments come with - orders were placed on the Avadi-based neighborhood, according to founder and in a year of the government sanction - Heavy Vehicles Factory in 2004 at a Chief Executive Mandeep S. Dhillon. ing the Arjun Mark-II project last May. cost of $4 million each, has been “Togetherville is very focussed on trying “In 24 months from now or early handed over to the Army. to really reflect what the adult community has been doing on the Web and build a real online experience that adults enjoy for kids, but do it in a safe, COPPA-compliant way,” DRDO mosquito repellent launched Dhillon said. He was referring to the safeguards 14 launched in New Delhi on based on the diethyl phenyl n insect repellent established by the Children's Online Privacy February 14 by India’s acetamide formulation and is that keeps Indian sol - Protection Act (COPPA). Defense Research and meant primarily for Indian Dhillon further told the Los Angeles A diers safe from mos - Development Organization Army personnel posted in Times that the strategic acquisition, the quito bites in the interiors of (DRDO), in association with forward areas. terms of which were not disclosed, was the northern state of Jammu Jyothy Laboratories Limited, Jyothy Laboratories will completed on February 18. The and Kashmir and the north - a private firm. Developed by market the repellent as a wet Togetherville transaction is the latest digital east is now commercially the Defense Research and wipe, Maxo Safe and Soft, acquisition by Disney, which in July bought Development Establishment, priced at `3 a pack and a available in the market. social gaming company Playdom for $563 a DRDO laboratory, the cream, Maxo Military, The product, a spin-off of million and mobile application multi-insect repellent is available for `36. military research, was developer Tapulous.

March 2011 India Review Diaspora NEWS Law giving voting rights to NRIs comes into force

on-resident Indians can now get their names regis - tered in the electoral rolls, N with the amended legisla - tion coming into force on February 10. A press release by the Ministry of Law and Justice on February 10 said that the government has issued the 15 necessary notification bringing the Representation of the People (Amendment) Act 2010 into force. “The amended Act confers voting rights to citizens of India who are absenting from their place or ordinary residence in India owing to their employment, education or otherwise outside India (whether temporarily or not),” the release said. It said that Indian nationals, not File photo of a woman casting her vote using the Electronic Voting Machine at a polling station in Sheeri, residing in India, will be entitled to near Srinagar, India, in 2004. have their names registered in the elec - place of residence is in India as the documents self-attested by them,” toral rolls in the Assembly or parlia - mentioned in their passport. said the press release. (IANS) mentary constituency in which their “Overseas Indians can now furnish

First Indian-American In a galaxy far away, Indian-origin elected to Chicago scientist finds her calling City Council hirty-year-old Ameya Pawar has S-based Indian ori - with light. Its presence is Tbecome the first Indian-American to be gin astrophysicist inferred by the gravitational elected to the Chicago City Council. Pawar was elected Sukanya Chakrabarti forces it exerts on matter that U on February 22 as the alder - has found her calling 260,000 can be seen. Chakrabarti man for the 47th Ward on light years away in a galaxy deployed a method to predict Chicago’s North Side that has that can barely, if at all, be Galaxy X that is similar to the been represented by outgo - seen. Galaxy X, at a distance way Neptune was discovered ing alderman Gene Schulter for over 30 which is modest on the cos - 160 years ago. Then years. mic scale, is where she is per - Neptune was called Planet X, “It is amazing. It was really amazing,” fecting her theoretical skills. and hence the name Galaxy Pawar, who was a virtual unknown when Dealing with structures of Sukanya Chakrabarti X for now. “The dark mat - he entered the race, told ABC7 after the election. Pawar, the son of Indian the Milky Way that seem to ter theory is successful at immigrants, and an emergency prepared - exist more by their gravitational signa - recovering the large-scale distribution ness expert working on his third master’s ture than by actual observational fact, of galaxies, but when you look on sub- degree, won with 50 percent of the vote. Chakrabarti, of the University of galactic scales, it far overpredicts the “I don’t think it mattered what my back - California, Berkeley, has perfected a number of dwarf galaxies relative to ground was. They just wanted to get technique that could give scientists what we actually observe,” involved. They wanted a say in what was some key answers to deeply troubling Chakrabarti, who came to the U.S. as going on in their local government,” he questions. The most baffling of them a 10-year-old, said. said. Pawar promises to have an elected ward council to guide his actions at City relates to dark matter, which forms Growing up in a family of academics Hall and to give $50,000 of his salary to over 80 percent of the universe. Dark in Kolkata, Chakrabarti said she was help offset the city’s deficit or offer matter is a mysterious matter that always interested in studying “complex community grants. (IANS) cannot be seen as it does not interact structures”. (IANS)

March 2011 India Review Trends in SOCIETY Innovation in Rural India: Treasures from India’s Bottom of Pyramid he Bottom of the Pyramid (BoP) has emerged as a dominant concept in busi - T ness, much encouraged by Late Dr. C.K. Prahalad, a renowned management thinker and a distin - guished professor at the Ross School of Business, University of Michigan. His work, “The Fortune at the Bottom of the Pyramid”, clearly demonstrates the growing importance of the bottom of the pyramid, which is undergoing a rapid transformation in terms of income level, awareness, and propensi - ty to consume. The Indian rural econ - omy is getting stronger and rural con - sumer demand is on the rise. The bot - tom of the pyramid, thus, is made up of the mass and needs to be addressed to ensure sustainable growth. The BoP is the largest, but poorest socio-economic group. India has made a mark on the global map with the con - cept and has been successful in chang - ing its image-perception from a manu - facturing and back-end processing hub into a research and innovation hub. It’s worth noting that rural India con - tributes to more than 54 per cent of India’s GDP, has 64 per cent of its con - sumption expenditure and accounts for 33 per cent of the national savings. It’s interesting to note that the lower 16 income class has reduced by almost 67 per cent in the last 15 years, according to estimates by the National Council of Applied Economic Research (NCAER). In rural India, there now exists a growing middle class having a Key Drivers waivers and improved income levels monthly income independent of mon - Changes in occupation pattern are stimulating activity in rural India. soons, cropping season etc; thus (reduced dependence on farming), is Consumerism is on the rise and the ensuring a definite growth in the pros - ensuring steady and regular income. propensity to spend is quite visible. perity levels, and a sustainable periodic Better infrastructure, increased invest - The government of India is funding expenditure. ment, a good monsoon, farm-loan rural development and fueling its

March 2011 India Review Trends in SOCIETY growth through various sponsored The BoP consumers Rural Healthcare schemes like the Mahatma Gandhi It is estimated that rural healthcare in National Rural Employment are fairly ambitious. 2015 would be Rs. 240 billion ($5.29 Guarantee Act, and Sampoorna They are focused on billion), which is 24 per cent of the Grameen Rozgar Yojana etc — the improving their lives, total market size. government has allocated a total of `535 billion ($11.78 billion) in 2009- using education as a Recent Trend : The Social Aspect 10 and has also provided subsidies for tool to improve life, It would be wrong to assume that com - rural initiatives. It is implementing ini - panies think of approaching this mar - tiatives like Financial Inclusion, Unique and dreaming big for ket by reducing the goods to their bare Identification, and encouraging the their children minimum and delivering them at a 17 uptake of internet and mobile connec - large scale. Large companies not only tivity for the BoP. NGOs are working approach these markets to improve on income generating activities in rural tion growing much faster than urban their bottom line, but also to improve India through various initiatives, areas, as per the findings. consumers’ lifestyles. Following are including the establishment of Self- some examples to corroborate this: Help Groups. Enhanced connectivity Consumer Durables Project Shakti of Unilevers: While by road is improving the employability The growth of the consumer durables the Shakti Ammas’ help in promoting quotient of the rural population. This is market is much larger in rural areas range of Lever products, they also allowing them to earn more and, there - compared to the semi-urban or urban work toward improving the general fore, have a higher disposable income, markets. According to a study “Rise of well being of the village they work in. especially in non-harvest seasons. The Consumer Durables in Rural India” by For instance the Scojo Foundation of BoP consumers are fairly ambitious. an industry body, India’s rural con - U.S. works with Shakti Ammas in They are focussed on improving their sumer durable market is tipped to providing reading glasses to the poor lives, using education as a tool to attain an annual growth of 40 per cent at very affordable costs. Scojo improve life, and dreaming big for their in the next fiscal 2011-12, as against Foundation has trained Shakti children. the current pace of 30 per cent. Ammas to test the eyes and provide reading glasses to artisans for better Multinational Initiatives Telecommunication efficiency. Indian and multinational corporations Owing to India’s growing population The Nokia Life Tools Program: By have not limited their innovative solu - and disposable income, the rural mar - providing its farmer subscribers with tions for Indian markets only. They are kets are expected to be the propellers of latest crop rates in the mandi , or teach - actually taking these innovations to the the Indian telecom sector as well. Rural ing them English, Nokia is ensuring international platform and are treating users account for at least 50 per cent of that customers improve their standard India as a BoP Innovation and new subscribers for some of India’s of living and do not get exploited. Research Hub. leading telecom providers. IFFCO Tokio leverages its association with IFFCO and sells micro crop Sector-specific milestones: Banking insurance, at a premium of `1 that is Fast Moving Consumer Goods Banks have come up with specific pro - bundled with the cost of fertilizers. In the FMCG sector, the rural share is grams to cater to rural banking Today IFFCO Tokio serves over 8 mil - 34 per cent of national FMCG sales requirements. Kisan credit cards, lion farmers across the country. and growing at a faster pace than launched jointly by RBI, NABARD and urban India — 18 per cent versus 12 nationalized banks, for the farmer Conclusion per cent in cities. In categories such as community, aim to address short-term A high potential in the rural segment soap, washing soaps and powder, rural credit needs of farmers for cultivation does not mean rushing with initiatives India accounts for more than 55 per of crops. to capitalize on the opportunity. cent of the overall market. According In 2009, over 31 million Kisan Greater emphasis should be given on to a study by research firm The Nielson Credit Cards were issued — much identifying the important products that Company, the FMCG market in rural more than the 18+ million credit and have great significance in a rural con - India should definitely touch the $100 debit cards issued in India. sumer’s life. Companies need to focus billion mark by 2025 on the back of their efforts on empowering the rural “unrelenting” demand driven by rising Insurance consumer with the latest trends and income levels. At present, rural con - Close to 50 percent of LIC’s policy technology and teach them ways to sumers spend about $9 billion per holders is from rural areas. The total improve their standard of living. annum on FMCG items and product rural population, thus, offers a huge (Courtesy: Overseas Indian Facilitation categories, with the pace of consump - potential for insurers. Center)

March 2011 India Review Short STORY WAITING FOR THE BUDDHA By Anil Chandra The author, a former Indian bureaucrat, is a short story writer and a scholar. Chandra has also written three books on history covering ancient India and China

n 629 A.D. Srong-tsan-gamp of Tongstan left his master and began to The old monk replied: “You have no Yarlung dynasty ascended the work on his own. But he had no luck right to say such things, my friend. throne at Lhasa and at the with his child. No sooner had the boy Birth and death are part of life. So is I behest of his two queens (one reached an age when he could help his suffering. Your problem is you wish to from Nepal and the other from China) father and be a support, than he fell ill; live for your own happiness.” introduced Buddhism in Tibet. and after being laid up for a week with “What else should one live for?” However, it was under his great grand - a burning fever, died. Tongstan could asked Tongstan. son Trisong Deutsen that Tibet became no longer hold his remorse and gave “For Nirvana,” said the monk. Buddhist. Padmasambhava, a tantric way to despair so great and over - “Sorrow, suffering, dissatisfaction, and Buddhist living in Uddiyana in north - whelming that he murmured against all other forms of unpleasantness are west India, was invited to Tibet in 747 inherent in life. By giving up our crav - A.D. and it was his association with Tongstan could no ing for desire, personal gratification King Deutsen that led to the spread of and selfish living, we can attain Buddhism in this land. This is the story longer hold his Nirvana.” of how it happened. remorse and gave way Tongstan was silent awhile, and then In Lhasa in 751 A.D., there lived a to despair so great asked: “But how can one attain cobbler, Tongstan, by name. He had a Nirvana?” tiny room in a basement, the one win - that he murmured Gyatsho Tshering replied: “How one dow of which looked out on to the against God. In his may attain Nirvana has been shown to street. Through it one could only see the grief he prayed again us by Buddha. He preached his mes - feet of those who passed by, but sage of compassion and true happiness Tongstan recognized the people by their and again that he too many centuries back. Follow his teach - boots. He had lived long in the place and might die, reproaching ings and you shall be more content.” had many acquaintances. There was God for having taken The boot maker bowed humbly and hardly a pair of boots in the neighbor - asked from where he could obtain the hood that had not been once or twice the son he loved, his teachings of Buddha. through his hands, so he often saw his only son “The teachings of Buddha are con - own handiwork through the window. tained in the scriptures called The Tongstan had always been a good God. In his grief he prayed again and Turning of the Wheel of Law. This is in man, but in his old age, he began to again that he too might die, reproach - Sanskrit whereas our language is Bhot. think more about his soul and God. ing God for having taken the son he If you want I will come to you for the While he still worked for a master, his loved, his only son, while he, old as he next few days and tell you of the mes - 18 wife had died, leaving him with a three- was, remained alive. sage of Buddha.” year-old son. None of his elder chil - One day, Gyatsho Tshering, an old “That will be most kind of you holy dren had lived; they had all died in man from Tongstan’s native village Gyatsho Tshering,” said Tongstan. infancy. At first, Tongstan thought of who had become a monk, called in on And so began the education of sending his little son to his sister in the his way from the Samye monastery. Tongstan. At first, they met only on country, but then he felt sorry to part Tongstan opened his heart to him and holidays. But having once started, with the boy, thinking: “It would be told him of his sorrow. Tongstan found his heart so light that hard for my little boy to have to grow “I no longer even wish to live, holy he wanted his friend to come every day. up in a strange family. I will keep him man,” he said. “All I ask of God is that Sometimes he got so absorbed in the with me.” I may soon die. I am now without any discussions that the oil in his lamp In order to earn more money, hope in the world.” burnt out before he could think of bid -

March 2011 India Review Short STORY ding his friend goodbye. studying the Buddhist scriptures. Padmasambhava, “is following a Earlier, when he went to bed, he Meanwhile, Gyatsho Tshering, the old course between self-indulgence and used to lie with a heavy heart, moaning Tibetan monk, fell sick and died. extreme asceticism; and leading a as he thought of his son but now he His death had a profound effect on moral and well-ordered life.” only found peace and contentment. the king. He relapsed into sorrow and Trisong Deutsen thought about this From that time, Tongstan’s whole life began wondering about the meaning of for some time. After a long silence, he changed. He became peaceful and life. Not able to contain himself any asked: “How can one follow this mid - calm. The more he discussed the longer, he one day asked dle path?” teachings of Buddha, the better he Padmasambhava what is happiness and “My Lord, it is called the Noble understood life and the clearer and how it could be obtained. Eightfold Path,” replied the man from happier he felt in his mind. “There is no absolute happiness, India. “It is Right Views, Right 19 Now, Tongstan was also the boot Your Lord,” replied Padmasambhava. Resolve, Right Speech, Right maker of the king of Tibet, Trisong “Indeed, dukh, or suffering, is inher - Conduct, Right Livelihood, Right Deutsen, who lived in his majestic ent in our lives. It is due to our crav - Effort, Right Recollection and Right Khritse Marpo (the Red Palace). ing for individual satisfaction; it can Meditation.” Tongstan frequently went to the king to be stopped by stopping this craving; The king remained quiet for a long make or mend his shoes. This had and this can only be done by taking a time. The more he thought about this brought him quite close to the king and middle path as propounded by path, the more he liked the idea. he frequently shared his grief and Buddha.” “Did Buddha preach this?” he asked. sorrow with him. “And what is this middle path?” “Yes, My Lord,” replied One day the king asked him: asked the king. Padmasambhava. “That is why we call “Tongstan, you lost your only son “This, My Lord,” replied him Tathagata. It means he who has sometime back and had lost all desire attained enlightenment.” to live. Now I notice your sorrow “He certainly was a great man, seems to have lessoned and you are at Padmasambhava,” said the king. “Did peace with yourself. What has brought he say anything about suffering?” about this miracle?” “Yes, Your Majesty,” replied the man “My Lord,” replied the boot maker, from Aryadesh. “It is the teachings of Buddha. He has “What?” taught me the meaning of life.” “That birth is suffering, aging is suf - “You know Tongstan, I too have fering, disease is suffering, death is suf - heard of the many wonders of fering, every wish unfulfilled is suffer - Buddha. But I have never understood ing — in short, all the five components the full meaning of this religion. I still of individuality is suffering.” get confused between our earlier The more Deutsen contemplated beliefs when we followed the these answers, the more he began see - Shamanistic religion and worshipped ing merit in the teachings of Buddha. our local Gods and these teachings of He brooded about these answers for the Buddha. Very recently, a man many days. Then one day, he asked from Uddiyana in northwest Aryadesh Padmasambhava: “What is the best has come to my court. His name is way to avoid these sufferings?” Padmasambhava. He, too, speaks of “This is called the Noble Truth of the many wonders of Buddha. Why Stopping of Suffering, My Lord,” he don’t you bring your monk friend to replied. “It is the complete stopping me so that we may all learn something of that thirst, so that no passion more?” remains. It means completely leaving “Of course, Your Majesty. I shall do this thirst, being free from it, giving as you bid.” no place to it.” And so, Gyatsho Tshering was However, despite these long talks brought to the king and there again with Padmasambhava, Trisong began a long series of discus - Deutsen was still not completely sions between this Tibetan convinced of the merits of monk, Padmasambhava, the Buddha’s teachings compared to king and the boot maker. As his own beliefs of local Gods. King Trisong Deutsen knew So one day, he asked his how to read, he also began Indian friend: “Holy man,

March 2011 India Review Short STORY

you also know something of occult sci - he felt drawn to look out the window should leave.” And so saying, Deutsen ences. Why can’t you ask your Buddha again. He saw that Tsering Wangyal had poured more tea into the visitor’s to come and speak to me and tell me leaned his spade against the wall, and tumbler. They sat in silence for a long the truth about life?” was either resting himself or trying to time. Then Wangyal Tsering got up Padmasambhava contemplated the get warm. The man was old and broken and said: “Thank you, Your Majesty. king’s question for a long time. “Very down, and had evidently not enough You have given me food and comfort well, Your Highness. I will today do strength even to clear away the snow. both for soul and body. You are much something. I am sure Buddha will grant “What if I called him in and gave more than a king. You are a noble your wish and come to you in person.” him some tea?” thought Deutsen. man.” That night as Deutsen was gloomily He slowly rose and putting the Slowly Tsering walked to the door contemplating about life, he laid his samovar on the table, made tea. Then, and while going out blessed his host. head upon both his arms, and before he tapped the window with his fingers. Deutsen again began looking out of the he was aware of it, he fell asleep. Tsering Wangyal turned and came to window, waiting for Buddha and “King Deutsen!” he suddenly heard the window. Deutsen beckoned him to thinking about him and his doings. His a voice, as if someone had breathed the come in and went himself to open the head was full of his preachings. words above his ear. door. Two town-people went by; then a He started from his sleep. “Who’s “Come in,” he said, “and warm baker carrying a basket. Then a woman there?” he asked. yourself a bit. I’m sure you must be came up in a peasant made shoes. She He turned around and looked at the cold.” passed the window, but stopped by the door; no one was there. They called Seeing the king, Wangyal was wall. Deutsen glanced up at her again. Then he heard quite distinctly: shocked. “My king,” he said. What through the window and saw that she “King Deutsen, King Deutsen! Go to brings you to this humble abode?” was poorly dressed and had a baby in your friend, the boot maker’s room “Hush,” whispered the king. “I am her arms. Deutsen heard the baby cry - tomorrow, ask him to leave you alone here to meet someone. But let that not ing, and the woman trying to soothe it. for a day and look out for me, for I disturb you. Come, my friend, first He rose, and going out of the door, shall come. Be sure to be alone.” have some tea with me.” called her. So the next morning Deutsen rose “You are a very kind man,” “Why do you stand out there with well before daylight and after eating Wangyal answered. “My bones do the baby in the cold? Come inside. You some food, quietly went to the room of ache to be sure, but then I am an old can wrap him up better in a warm his friend, Tongstan. There, he told man.” He started shaking off the place. Come this way.” Tongstan that he wished to spend the snow, and lest he should leave marks The woman was surprised, but she whole day alone in his room for con - on the floor, began wiping the soles followed him inside his room. He took templation. Much shocked and con - of his shoes. But as he did so he tot - her near the stove and said: “Sit down fused, Tongstan left the king alone. He tered and fell. my dear and warm yourself. Also himself went to spend the day in the Deutsen rushed to lift him and gen - please feed the baby.” monastery of Samye. tly put him in a chair. Filling two tum - “Haven’t any milk. I have eaten So Deutsen sat by the window, look - blers, he passed one to his visitor, and nothing myself since early morning,” ing out into the street, and whenever pouring his own into the saucer, began said the woman, but still she took the any one passed the window, he would to blow on it. baby to her breast. crane his neck to see who was passing But while Wangyal drank his tea, Deutsen shook his head. He by. A porter passed in torn clothes; Deutsen kept looking into the street. brought out a tumbler and some then a water carrier. Some children “Who are you expecting, My bread. Into it he poured some cab - playfully ran past the window. Lord?” asked the visitor after some bage soup and said: “Eat my dear and Presently, an old army soldier came time. “If I am an intrusion, I may be I’ll mind the baby.” 20 near the window, spade in hand. permitted to leave.” The woman began eating while Deutsen knew him by name as they “Pray do not be cruel,” said Deutsen put the baby on the bed and had both fought in many wars togeth - Deutsen. “It is true I am expecting sat down beside it. He chuckled and er. His name was Tsering Wangyal and someone. But that does not mean you chuckled, and soon the baby was he began clearing the snow in front of the window. “That birth is suffering, aging is “I must be growing crazy,” said Trisong Deutsen, laughing at his fancy. suffering, disease is suffering, death is “Tsering Wangyal comes to clear away suffering, every wish unfulfilled the snow, and I am imagining its is suffering — in short, all the five components Buddha coming to visit me. I am a fool.” Yet after he had waited for sometime of individuality is suffering”

March 2011 India Review Short STORY

an old woman selling apples just in basket, the boy sprang forward to her, front of his window. She had a large saying, “Let me carry it for you, basket, but there did not seem to be Mother. I’m going that way.” many apples in it; she had evidently The old woman nodded her head, sold most of her stock. She placed the and as they moved away, she blessed basket on the ground in order to rest, Deutsen, but quite forgot to ask him to and while she was looking further pay for the apple. towards the street, a boy in a tattered When they were out of sight, cap ran up, snatched an apple out of Deutsen returned to his room to again the basket and tried to slip away. But await the arrival of Buddha. But no one 21 the old woman noticed it and caught came and presently it was evening. the boy by the sleeve. The boy Feeling tired, he lay down to rest. screamed and the old woman began As he was about to go to sleep, he scolding and beating him. Deutsen seemed to hear footsteps, as though rushed out and heard the boy saying, someone was moving behind him. “I did not take it. What are you beating Deutsen turned around, and it seemed me for? Let me go.” to him as if people were standing in the Deutsen separated them. He took the dark corner, but he could not make out boy by the hand and said, “Let him go, who they were. And a voice whispered Mother. Forgive him. He is just a child.” in his ear: “King Deutsen, King “I’ll teach him a lesson so that he Deutsen, don’t you know me?” won’t forget for a year! He is a rascal!” “Who is it?” muttered Deutsen. “Let him go, Mother. He won’t do it “It is I,” said the voice. And out of again. Please let him go.” the dark stepped Tsering Wangyal, The old woman let go, and the boy who smiled, and vanishing like a cloud, wished to run away, but Deutsen was seen no more. stopped him. “It is I,” said another voice, after a “Ask the lady’s forgiveness,” he said. few minutes. And out of the darkness “And don’t do it another time. I saw stepped the woman with the baby in her laughing. He drove his finger straight you take the apple.” arms, and the woman smiled and the at the baby’s mouth and then quickly The boy began to cry and to beg baby laughed, and they too vanished. drew it back, and he did this again pardon. “It is I”, said a third voice, and this and again. This made the baby laugh “That’s right. And now here’s an time, Deutsen saw the old apple all the more and Deutsen felt quite apple for you,” and Deutsen took an woman and the boy stepping out of the pleased. apple from the basket and gave it to the darkness and smiling. They, too, van - The woman sat eating and talking, boy, saying, “I will pay you, Mother.” ished quickly like the others. and told him who she was, and where “You will spoil them that way, the And Deutsen felt good. He under - she had been. young rascals,” said the old woman. stood that Buddha had visited him When she had finished eating she “He ought to be beaten so that he through these people and had shown got up to go. Deutsen sighed. would remember it for a week.” him the correct way to live. He under - “Haven’t you any warmer cloth - “Oh, Mother,” said Deutsen, “that’s stood that only by following his mes - ing?” he asked. the simple way, but it’s not the correct sage could he and his people attain “No,” she replied. “I cannot afford way. If he should be beaten for stealing enlightenment. He understood that by anything better.” Then the woman an apple, what should be done to us for the Buddha visiting him, he was came to the bed and took the child. our sins?” blessed, and now he should spread his Deutsen picked his long cloak, which The old woman was silent. message throughout his kingdom. he had earlier hung on a nail in the wall “We should forgive, dear Mother,” King Deutsen called and gave it to her. said Deutsen, “or else we shall not be Padmasambhava the next morning and “Here,” he said. “It will do to wrap forgiven. And we should forgive a after narrating to him his experiences him up.” thoughtless youngster most of all.” of the previous day, said: “My friend, The woman looked at the cloak, then “It’s true enough,” she said, “but you are truly a remarkable man. I wait - at her host, and taking it, burst into they are getting terribly spoilt.” ed for the Buddha and he came. I am tears. While leaving, she thanked and “Then we must show them better blessed. From now onwards I will call blessed him. After the woman left, ways,” Deutsen replied. you Guru Padmasambhava. As for me, Deutsen ate some cabbage soup, and Soon enough, the old woman was I will devote the remainder of my life to again began waiting. Presently he saw about to move, and as she picked her spreading the message of Buddha.”

March 2011 India Review Cinema NEWS M.F. Husain revives ‘Mughal-E-Azam’ through paintings oted painter M.F. Husain “There are lots of such classics in the has paid a personal tribute archive. However, being stacked for a to K. Asif’s epic film long time, the prints and negatives of N Mughal-E-Azam by recre - those timeless films are decaying,” ating the movie’s fabulous scenes in a Shah Rukh said. series of exquisite paintings. “My motive of making this docu - “I love India. I loved the film and mentary was to let us come together really wanted to show the grandeur and spend some money to revive or and the power the film shows,” preserve these films,” he said. M.F. Hussain Hussain said in a 22-minute documen - Veteran actor Dilip Kumar, who tary on Asif’s timeless classic. black and white to color and preserved played the role of Salim in the film, is Superstar Shah Rukh Khan present - for future generations. the only actor alive among the whole ed the documentary made by his pro - The documentary was an initiative cast and he would be shown the docu - duction house, Red Chillies by K. Asif’s son, Akbar Asif, to keep the mentary, said Shah Rukh. Entertainment, at JW Marriot hotel on cinematic treasure alive. Along with “I have to go and show him the February 24. The documentary shows Sharoopji Mistry, he had released the documentary. He would love to see it,” how the film was transformed from color version of the epic film in 2006. Khan said. On V-Day, ‘Pyaasa’ among Time’s top romantic movies ndian director Guru Dutt’s fifties’ classic musical-drama Pyaasa has Top ten romantic movies I been listed fifth among Time mag - n Son of the Sheik (1926) azine’s Valentine’s Day list of top n Dodsworth (1936) Romantic Movies. n Camille (1936) For the February 14 day celebrating n An Affair to Remember (1957) love and affection between intimate n Pyaasa (1957) companions, “ Time.com has a list — n Jules and Jim (1962) from the songs you need to ease the n Chungking Express pain to the movies that will sweep you n Moulin Rouge (2001) up in a romance nearly as epic as your n Talk to Her (2002) own.” In choosing Pyaasa , Time n Brokeback Mountain (2005) asked: “Where did classic Hollywood go when it died?” And itself answered: whose one true friend is a prostitute, “To India, where the nation’s pop cin - director-star Guru Dutt creates a ema (Bollywood to you) still attends to musical drama as ethereal as the poet’s antique conventions of family fealty, verses, as sultry and earthy as Waheeda personal integrity and, of course, Rehman, the 20 year old actress who all-conquering love.” became Dutt’s mistress and muse,” “In this achingly lush tale of a poet Time said. 22 India Post releases stamps on six legendary actresses set of six stamps on as many leg - Kumar, Mohammad Rafi, Hemant Kumar and endary actresses of Indian cinema was Begum Akhtar, and directors Dadasaheb A released by India Post at the world Phalke, Satyajit Ray and Bimal Roy. philatelic exhibition in New Delhi on February Legendary heroines of yesteryears Asha 13. The actresses who have been honored Parekh and Vyjayanthimala Bali graced the are Meena Kumari, Nutan, Kanan Devi, occasion and paid homage to the actresses Devika Rani, Leela Naidu and Savitri Devi. and work culture of those days. The stamps were released by Gurudas Kamat, India Post had earlier honored actors The Minister also released a coffee table Minister of State for Communication and Madhubala, Nargis, Guru Dutt and Raj book ‘Pigeon to Post’ by Steve Borgia on Information Technology. Kapoor, singers K.L. Saigal, Mukesh, Kishore Indian postal history on the occasion.

March 2011 India Review Travel & TOURISM SPIrITuAlITy OF AurOVIllE fine blend of serenity and spiritual aura, Puducherry rests in a small enclave A surrounded by Tamil Nadu. A Union Territory, Puducherry pos - sesses a serenity of its own and a gentle, laid back charm that soothes 23 your senses. Situated 200 km from the southern part of Chennai, Puducherry is an important travel destination where the quiet beaches are bound to take your breath away. The word ‘Puducherry’ has been derived from the Tamil language, which means ‘New Town’. It is a small town which possesses a cosmopolitan flair of many nationalities. Walking on a busy street, one can hear snatches of conver - sation in English, French, German, Tamil, Telugu, Malayalam and Hindi.

Aurobindo Ashram Think Puducherry and the first thing MAHE: that strikes you is the Aurobindo Separated at birth Ashram. Shri Aurobindo Ghosh was an accomplished linguist, philosopher, ahe, which is part of scholar and an ardent advocate of M Puducherry, is ironically Indian independence. The Ashram situated in Kerala, on the west was founded in 1920 upon his arrival. coast, where the Mahe river meets The ashram houses the ‘samadhi’ of the Arabian sea. This tiny ‘Heaven Aurobindo Ghosh and the ‘Mother’, on Earth’, Mahe has a character his French disciple Mirra Alfassa. of its own with its serene beaches from where one can have a good Auroville, the City of Dawn look of the Dharmadam islands Founded in 1968, this unique town - luring you with its lush green trees ship is one of the major tourist attrac - and placid ambiance. Well tions of Puducherry. At its center connected by roads, other means stands Matrimandir, built in the form of reaching the place is the of a globe. Kozhikode Airport and the It is a place for quiet meditation. Kozhikode Railway Station. There are 80 settlements and over 1,500 people engaged in reforesta - tion, organic agriculture, health care The churches gothic Sacred Heart Church with and village development. It is the churches that lend three stained glass panels portraying Puducherry its European flavor. The the life of Christ. Puducherry beach, Promenade church of Our Lady of the Promenade street, a 5-km scenic Immaculate Conception or Notre Temples stretch alongside the main Dame de la Conception is almost 300 Among other places of interest are the Puducherry beach, the Rock Beach, is years old. The church of Our Lady of temples which reflect the Indian style a huge attraction. A statue of the Angels is known for an oil painting of architecture. The oldest one dates Mahatma and a 150-year-old light that was gifted by Napoleon III. The back to the 10th century A.D. Chola house are a visual treat. most awesome, however, is the grand Dynasty.

March 2011 India Review EMBASSY OF INDIA SS Pre-sort First Class A U.S. Postage 2107 Massachusetts Avenue NW CL T Paid RS Washington, D.C. 20008 FI Silver Spring, MD Tel: 202-939-7000 RT Permit No. -SO Fax: 202-462-7276 PRE 3966

n Invoking Lord Shiva

Devotees conduct a traditional ‘aarti’ on the occasion of Maha Shivaratri on March 3, 2011. The festival is marked by special prayers and a day-long fast offered to invoke Lord Shiva.

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