India, long the home of outsourcing, now wants to make its own Chips

Source: New York Times via Indian Economic Business News

The Government of India, home to many of the world’s leading software outsourcing companies, wants to replicate that success by creating a home grown industry for computer hardware. But unlike software, which requires little infrastructure, building electronics is a far more demanding business. Chip makers need vast quantities of clean water and reliable electricity. Computer and tablet assemblers depend on economies of scale and easy access to cheap parts, which China has spent many years building up. So the Indian government is trying a new approach. In October, it quietly began mandating that at least half of all laptops, computers, tablets and dot-matrix printers procured by government agencies come from domestic sources, according to Dr. Ajay Kumar, Joint Secretary of the Department of Electronics and Information Technology, which devised the policy. At the same time, it is potentially providing as much as $2.75 billion in incentives in front of chip makers to entice them to build India’s first semiconductor manufacturing plant, an important step in building a domestic hardware industry. According to Indian media reports, two consortiums have been in talks with the government to build microprocessor foundries. The first is led by the Jaypee Group, one of India’s largest construction companies, which built the country’s Formula One track in Uttar Pradesh. It has partnered with I.B.M., which will provide the technology. The second bid is from the Hindustan Semiconductor Manufacturing Corporation, an American company that, despite its name, does not manufacture any chips. It has partnered with the Geneva-based chip maker STMicroelectronics. Source: New York Times

India ranks 8 among 27 most powerful nations in world

Source: The Times of India via Indian Economic Business News

India is among the top 10 most powerful countries in the world. In a first-of-its-kind study of “national power” a group of eminent strategic experts and scholars have placed India at the eighth position among a group of 27 most powerful countries in the world. The study, conducted by the New Delhi-based Foundation for National Security Research (FSNR), judged “national power” by various indices, including energy security, population, technological capability etc. An interesting index of national power was judged by “foreign affairs capability”, which includes self-reliance in defence, membership of multilateral groupings, role in global rule-making and soft power. Interestingly, though China comes out as the second most powerful nation in the world after the US, Chinese foreign affairs’ capability is comparable to India’s, even though in terms of total power New Delhi comes way below Beijing. Professor Satish Kumar, introducing the study, said, “The Group of Experts evolved a criterion consisting of the following elements for the selection of countries which could be regarded as actually or potentially the most powerful: (i) Population above 50 million; (ii) GDP above US$ 500 billion; and (iii) defence expenditure above US$ 5 billion.” The effort, he said, was to have an Indian assessment of indices of power. The US is by far the world’s most powerful nation, several notches ahead of its nearest competitor, China.

India says it plans to double renewable energy sources by 2017

Source: Thomson Reuters via Indian Economic Business News

The Indian government recently said it planned to double its renewable energy capacity by 2017. Prime Minister Manmohan Singh said that India would ramp up its use of wind, solar and biomass energies in the coming years. “It is proposed to double the renewable energy capacity in our country from 25,000 MW in 2012 to 55,000 megawatts by the year 2017,” he said at the Fourth Clean Energy Ministerial conference in New Delhi.”We have set ourselves a national target of increasing the efficiency of energy use to bring about a 20 to 25 per cent reduction in the energy intensity of our GDP by 2020.” Mr. Singh said that a low carbon strategy was necessary for sustainable growth. Mr. Singh, however, said these non- conventional sources of energy had reduced in price but were still higher than dirtier, more conventional sources of power, like coal. It will soon be the second-largest contributor to increasing global energy demands, accounting for 18 percent of the growth. Despite intense sunshine throughout the year, India has little solar capacity and much of its solar hardware is manufactured abroad. Mr. Singh said that that needs to change. “India is potentially a large market for production of such (solar) equipment and it is also a potentially competitive, attractive production base for supplying other countries,” he said at the conference.

More reforms coming in 2-4 months: Chidambaram

Source: Indo-Asian News Service via Indian Economic Business News

Finance Minister P. Chidambaram has ruled out the possibility of early elections and said the government will take more reform initiatives in the next two-four months in a bid to boost economic growth and contain deficit and inflationary pressure.“We will continue to take small significant steps. We will also take forward some big ideas. India’s economy will continue to reform,” Mr. Chidambaram said at The Economist’s India Summit organised by the UK-based economic magazine recently. Mr. Chidambaram said the government will push for the passage of major reform regulations, like land and insurance bills, in the ongoing budget session of parliament.The finance minister said the government would need support from the main opposition party to get the bills passed in parliament.“There are many more executive actions that have to be taken, some of these executive actions we will take in the next 2-4months,” Chidambaram said. In the last one year, the government has taken several initiatives to push forward reform process. The steps include cutting subsidies on petroleum products and liberalizing overseas investment norms for retail, aviation and some other sectors. The finance minister said he was hopeful to keep fiscal deficit below 4.8 percent of the gross domestic product (GDP) in the current financial year.

Anand Sharma launches 21 new textiles parks

Source: Press Information Bureau via Indian Economic Business News

Union Minister for Commerce, Industry and Textiles Anand Sharma launched 21 New Textile Parks approved under Scheme for Integrated Textile Parks (SITP). These new parks take the total number to 61 parks as 40 Parks were sanctioned earlier. The Scheme for Integrated Textiles Parks (SITP) has been instrumental in development of wide range of models for green field clusters from a 1000 acre FDI driven integrated cluster, to a 100 acre power loom cluster and a 20 acre handloom cluster. Under the scheme, 61 parks have been sanctioned-40 projects were started in the 11th Five Year Plan and another 21 projects are to be implemented in the 12th Five Year Plan. Out of the 40 parks sanctioned earlier, a total of 25 Parks are already operational. Most of the balance Parks are expected to be completed during this financial year. The estimated employment generation is over 10 lac persons with total estimated investment of Rs. 27, 562 crore. Out of the 21 new parks, six are in Maharashtra, four in Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat, Himachal Pradesh and Jammu & Kashmir.

Government boosts incentives to give exports a leg-up as growth picks up for 3rd month

Source: Hindustan Times via Indian Economic Business News

The government on April 18th announced a host of measures to boost India’s exports including sops to special economic zones (SEZs). The initiatives announced by Commerce and Industry Minister Anand Sharma as part of the annual supplement to the Foreign Trade Policy (FTP) are aimed at pushing exports which declined by 1.76 per cent to USD 300.6 billion during 2012-13 and pushed up the trade deficit to USD 190.91 billion. These included easier land requirement norms, simpler exit options, cheaper credit and tax breaks for import of machinery. The new rules for SEZs will allow IT firms to claim tax breaks by moving offshore work to such duty-free enclaves. The earlier requirement of minimum 10-hectares for such campuses has been done away with and IT SEZs can now be set up if the these are spread across at least 100,000 square metres in seven major cities including Mumbai, Delhi and NCR, Chennai, Hyderabad, Bangalore, Pune and Kolkata. For category B cities, IT companies can set up SEZs even in a smaller built-up area of 50,000 square metres and for remaining cities in only 25,000 square metres. In view of the acute difficulties in aggregating large tracts of uncultivable land for setting up SEZs, the government also halved the minimum land area requirement to 500 hectares for multi-purpose SEZs and to 50 hectares for sector-specific SEZs. It has also been decided to permit transfer of ownership of SEZ units, including sale of units. Exports in March 2013 stood at $30.8 billion (Rs.1,69,400 crore), compared to $28.8 billion ( Rs. 1,58,400 crore) in the same month of the previous year. Imports dipped by 2.87% to $41.16 billion in March, leaving a trade deficit of $10.31 billion-down from $13.5 billion in March last year.

Economy to grow at 6.4 percent in 2013-14: PM panel

Source: Indo-Asian News Service via Indian Economic Business News

The Indian economy is expected to grow at 6.4 percent in the current fiscal against the estimated 5 percent expansion registered in the previous year, the Prime Minister’s Economic Advisory Panel said. “The economy has bottomed out and we will achieve higher growth of 6.4 percent in the current financial year,” Prime Minister’s Economic Advisory Council chairman C. Rangarajan said recently. He said agriculture sector growth is likely to increase to 3.5 percent 2013-14 as compared to the estimated 1.8 percent growth in the fiscal ended March 31, 2013. The growth of manufacturing sector is likely to increase to 4 percent in the current financial year as compared to 3.1 percent in the previous year. The services sector is estimated to expand by 7.7 percent in 2013-14 as compared to 6.6 percent growth projected for the previous fiscal. Mr. Rangarajan said growth would accelerate further if the government expedites clearance for major projects. “If we take action for speedy implementation of projects we can achieve the higher rate of growth quickly even in the short-term,” he said. According to the panel’s estimate, the country’s main inflation is expected to be at around 6 percent in the current financial year as compared to the estimated 5.96 percent at the end of the financial year 2012-13. Mr. Rangarajan said moderation in inflation would give scope for monetary policy easing by the central bank. The central bank has been maintaining tight monetary policy for the last three years to contain inflation.

Meghalaya government seeks report on Garo Hills rape

Source: Times of India

SHILLONG: The state government has sought a detailed report from the West Garo Hills district administration on an incident of rape of a girl by miscreants from neighbouring Assam in Boldamgre village of the Garo Hills.

Social welfare minister Deborah C Marak convened a meeting with principal secretary (social welfare) PW Ingty and other officials in which they discussed the incident. “We have asked the concerned district administration to submit a report on the unfortunate incident,” Marak told reporters.

The state police have also asked their counterparts in Assam to arrest the absconding accused involved in the case.

“On Sunday morning, over a dozen armed miscreants from the Hat-Singimari region of Assam numbering entered the village and raped an 18-year-old girl in the village, about 12 km from Garobadha town. They also went from house to house attacking people and looting them,” a police spokesperson said.

Reportedly, the girl was attacked by the criminals and she was raped by an unidentified person. The dacoits also took away Rs 7,000 from the house of one Gajang Sangma after assaulting his family members.

Meanwhile, several NGOs, including the North East Network, have condemned the rape.

“It’s shocking that despite evidence of increasing sexual violence against women, the state government has not been able to enforce the anti-rape law strictly. The law puts special onus on the police department to act in cases of atrocities on women,” NEN said.

On the other hand, concern over sexual assaults on minors in Meghalaya is on the rise, with even the state home minister, Roshan Warjri, recently voicing her anguish in the state assembly over atrocities on women perpetuated in random in the state, which, ironically follows a matrilineal system.

Investigation is already underway in the incident of gang rape of a school girl in the Garo Hills a few months ago.

India’s cheap food plans to prove costly for government

Source: Reuters

India may soon pass a new law to give millions more people cheap food, fulfilling an election promise of the ruling Congress party that could cost about $23 billion a year and take a third of annual grain production.

The National Food Security Bill, which aims to feed 70 percent of the population, could widen India’s already swollen budget deficit next year, increasing the risk to its coveted investment-grade status.

The ambitious bill, a priority for Congress President Sonia Gandhi, will raise India’s annual food subsidy spending by 45 percent. It promises wheat and rice at a fraction of the cost to some 810 million people, expanding current handouts to roughly 318 million of India’s poorest.

Critics say the food bill is little more than an attempt to help Congress, reeling from corruption scandals, win re-election in a vote expected by next May.

The government has already budgeted 900 billion rupees ($16.6 billion) for the scheme in the current fiscal year ending March 2014. If the bill is passed, it will need to come up with as much as 1.3 trillion rupees in 2014/15, adding to a total subsidy burden that already eats up about 2.4 percent of gross domestic product.

“It is very difficult to say whether the government will be able to get the Food Security Bill passed or not, but it is definitely going to further widen the budget deficit,” D.H. Pai Panandiker, head of private think-tank RPG Foundation, said.

“The finance minister is already worried about the budget deficit, and it is going to add to his agony.”

Reducing fuel and fertilizer subsidies would be the best way of mitigating the costs, Panandiker said. Other measures will also be needed to fund the plan, which may include spending cuts and higher taxes.

Finance Minister Palaniappan Chidambaram said in March the rollout of the new food subsidies was unlikely to happen before the middle of the current fiscal year, which started April 1, curbing the financial cost. Chidambaram aims to cut the fiscal deficit to under 4.8 percent of GDP in the current year from around 5 percent in 2012/13.

BULGING STOCKS

Feeding its poor is a matter of urgency for India, home to about 25 percent of the world’s hungry poor, according to the World Food Programme, the food aid arm of the United Nations.

India is one of the world’s biggest producers of rice, wheat and sugar, but it is also one of the largest consumers with a 1.2 billion population. It exports little and builds up stockpiles to cover handouts, which are now overflowing after bumper harvests, which have come close to 200 million tons a year of rice and wheat.

The law would have little effect on India’s export volumes in a good crop year, but “in a year of shortage, there could be some impact” on international markets, a Singapore-based trader said.

The bill will give rice at 3 rupees per kg to the poorest people, less than 10 percent of current retail prices, and wheat at 2 rupees per kg.

The government estimates it would need about 61 million tons of grains, only 3 million tons than it currently makes available, to provide the extra food, hoping better distribution systems and a clamp-down on corruption will reduce wastage.

Last year only about 41.4 million tons was actually distributed by state governments in cheap food schemes.

The Congress party, which leads the ruling coalition, wants to pass the bill by May 10 when the parliament session ends.

But debate this week has been disrupted by opposition parties, which say the government is pushing the populist move as a smokescreen to avoid defending itself over corruption scandals.

Last week, police arrested the nephew of Railway Minister Pawan Kumar Bansal in connection with allegations that he accepted a bribe of $160,000 to arrange the promotion of a railway official.

The government may try to pass the bill again in the parliamentary session that starts around July 23 or push it through without a vote when parliament is not sitting, using special constitutional powers. It must then win approval for the bill within six weeks of parliament’s return.

($1 = 54.2250 Indian rupees)

Dhoni’s ‘Vishnu avatar’ lands him in legal tangle

Source: Hindustan Times

An advertisement that depicts MS Dhoni as Lord Vishnu has landed the Indian skipper in legal trouble. An activist has filed a case against him in a Bengaluru court, alleging Dhoni had ‘denigrated’ the Hindu god in the advertisement in a business magazine. The case was registered under section 295 of the IPC — injuring or defiling a place of worship with intent to insult the religion — on a complaint that said that by posing as Lord Vishnu, holding several things including a shoe in his hands, Dhoni had hurt “religious sentiments.”

The court will take up the case on May 12, when the complainant’s statement will be recorded.

China and India withdraw troops from Daulat Beg Oldie, Ladakh, ending standoff

Source: Global Post

The withdrawal ended a 20-day standoff after Chinese troops breached the militarized border. Experts say Beijing’s latest probe could embolden New Delhi.

NEW DELHI, India — Following a three-week standoff, China and India have withdrawn their respective forces from a disputed area of Daulat Beg Oldie, Ladakh, along their shared border.

The agreement was reached after intense negotiations during a flag meeting between Indian and Chinese commanders on Sunday, according to media reports.

Both sides withdrew to their respective pre-incursion positions near the so-called “Line of Actual Control” (LAC).

Times of India quoted Chinese foreign ministry spokeswoman Hua Chunying as saying:

Following the standoff at the border area, China and India with the larger interests of bilateral relations in mind have taken a cooperative and constructive attitude.

The 20-day-old standoff between the Chinese and Indian armies began after 50 soldiers from China’s People’s Liberation Army (PLA) crossed about 10 miles inside the disputed territory and set up a tented post. They subsequently put up four more tents and also deployed Molosser dogs, DNA India reported.

India responded by setting up its own post less than a quarter mile away.

Sources had told NDTV that India, unhappy with the way negotiations were progressing, was considering cancelling an impending trip to China by its External Affairs Minister Salman Khurshid.

Meanwhile, the Chinese premier, Li Keqiang, is scheduled to visit New Delhi on May 20.

Chinese incursions along the LAC have increased over the past five years.

Indian foreign policy experts say that Beijing is trying to force New Delhi to concentrate on problems within its immediate neighborhood, rather than working to become a regional power.

For China, the forever-fizzling talks to resolve the border dispute are just another tool to keep a potential rival off-balance.

The most recent incident is no different, according to Shrikanth Kondapalli, a professor of Chinese studies at Jawaharlal Nehru University.

“They [the Chinese soldiers] came at their own sweet timing and left almost as abruptly,” said Kondapalli, dismissing claims that the soldiers’ exit was the result of clever Indian diplomacy. “They were driving a lesson [home] to India that India is talking too much without much actual strength.”

As part of its “Look East” policy, New Delhi has over the past few years been taking a more assertive stance in bilateral relations and engaged with countries that China considers to lie entirely within its sphere of influence.

In October 2011, for instance, Indian Prime Minister Manmohan Singh refused to back down from a confrontation over a joint oil exploration with Vietnam in the disputed South China Sea.

Meanwhile, India has been consistently strengthening ties with groups like the Association of Southeast Asian Nations (ASEAN). And the United States has pitched for the Indian navy to play an important role in the Pacific, as well as the Indian Ocean, as part of President Barack Obama’s pivot to Asia.

In that context, China’s latest probe might have unintended consequences — pushing New Delhi to a stronger position, rather than scaring it into a weaker one.

“This will have an impact on the Indian foreign minister’s visit to China next week and the premier’s visit to India slated for the later half of this month,” said Kondapalli. “Anti-China feelings are strengthening in India with this incident.”

GlobalPost senior correspondent for China, Benjamin Carlson, said China’s retreat was “deeply confusing from a strategic point of view.”

Why Chinese troops crossed the de facto border in the first place is a mystery; why they bulked up their presence after the initial Indian protest is a mystery; and why the PLA eventually decided to stand down is a further mystery.

The whole incursion may simply have been a tactic to gain bargaining power in border negotiations with India, Carlson said, adding:

… it’s difficult to see how this will play in China’s favor as India joins China’s other neighbors in viewing the regional giant’s territorial aspirations with greater suspicion.

 

Chit fund scam: Man killed, 8th suicide reported in WB

Source: Mumbai Mirror

KOLKATA: The tragic fallout of the multicrore Saradha chit fund scam in West Bengal escalated on Monday with the first case of murder being reported in the state after eight people committed suicide. The eighth suicide happened on Sunday night.

A director of Hello India, a chit fund company, was found murdered at his residence in Hooghly district.

Jayanta Sarkar, 48, was allegedly killed with a sharp weapon on Sunday night, the police said. The attack was the first reported case of murder in connection with the Saradha scam.

On Sunday, the 60-year-old father of a chit fund company agent ended his life in North 24-Parganas district. The police say he was distressed over his son’s inability to repay money to investors.

Jagadish Roy, father of Bidhan Roy who was the agent of Anex Chit Fund, was found hanging at his home at Rishi Bankim Gar colony at Sodepur on Monday, the police said.

Steel imports to remain a hot issue for India

Source: Business Standard

The speed at which China built steel capacity has left the rest of the world bewildered

Overcapacity and production more than the market can absorb at rates remunerative for suppliers have remained principal concerns for the world steel industry since the 2008-09 global financial meltdown, the members of which still keep flying. In the first quarter of this year, the world steel production at 388.696 million tonnes (mt) clocked a growth of 2.3 per cent over the corresponding period of 2012. In contrast to growing production restraints in most parts of the world, Asian steel output in the first three months of 2013 advanced on a year-on-year (y-o-y) basis by 6.4 per cent to 259.8 mt. The speed at which China built steel capacity has left the rest of the world bewildered. Once again the progress in Asia’s production so far this year is largely on account of the world’s second largest economy.

China’s production growth when steel prices remain under pressure and capacity lay off in particularly high-cost centres continues, is not endearing the steel goliath to others. The first quarter steel production in the European Union was down 5.4 per cent to 41.5 mt, while North American output slid 5.7 per cent to 29.7 mt. This led an official of consulting firm Wood Mackenzie to tell Reuters that “most of the world is in decline, but the steel industry in China isn’t disciplined in the way Europe might be”. He thinks with Chinese production remaining “persistently high,” steel prices cannot but remain under pressure leading to margin erosion for producers everywhere. The issue is why should China be courting criticism of other producing nations and still stick to growing steel production. Moreover, near-term industry outlook is not at all encouraging. An official of ArcelorMittal credits China for building a “fearsome low-cost steel industry”. At the same time, some spirited house cleaning operation notwithstanding, the Chinese industry is still left with a good amount of high cost and polluting capacity.

That China supports its steel industry and steel products exports by way of subsidies is widely known and resented. The subsidy issue comes to the fore at regular intervals as China will have scrap with countries alleging dumping of steel products by it to the detriment of local producers. What, however, should not be lost sight of is that an industry with China’s capacity is a massive provider of employment in steel mills, upstream mines, downstream value-adding enterprises and tertiary sectors. More than half the steelmakers in China are government owned. Neither Beijing nor the provincial authorities are ready to risk economic disorder and social unrest by withdrawing life-sustaining government support to steel mills. The ArcelorMittal official says, “We are mesmerised by China, but if you look at its steel industry, despite its rise, 92 per cent of steel companies are trading at a loss.” Rising cost of energy and finance is steadily robbing Chinese industry of the status of a low-cost producer. Steel mill wage bill too, is spiralling. And this is happening when world steel demand grows slowly.

In case China sustains steel production at the first quarter rate, then it will end the year with an output of 768 mt against 716.5 mt in 2012. In its short range outlook, World Steel Association says steel use in China in 2013 should rise by 3.5 per cent to 668.8 mt. This is to leave China with an exportable surplus of nearly 100 mt. A point of concern for India, which already is a net steel importer: We should also keep an eye on Japan where softening of yen has significantly improved export competitiveness of its steel. At the same time, “conditions in Europe will remain under pressure in spite of acceleration in production discipline. We, therefore, expect southern European steelmakers to increase their presence in export markets,” says an analyst with Metal Bulletin. In this context is to be seen SAIL Chairman Chandra Shekhar Verma’s observation that “Steel imports will remain a hot button issue for India as long as the world will have much surplus capacity and producers in many places will be in some desperation to export extra metal with them.”

India’s March steel production at 6.86 mt shows a y-o-y rise of 6.5 per cent. However, production rise in this year’s first quarter at 19.826 mt was 2.8 per cent more than in the corresponding period of 2012. Production rises here are due to more and more capacity coming on stream from new projects and existing mill expansion. In fact, this will remain the trend as the country targets a steel industry of the size of 180 mt to 200 mt by 2020. As we go forward, large capacities on account of SAIL, Tata Steel, Vizag Steel and others will get commissioned in close proximity. But will local demand be growing at a rate to ensure that the steel industry will not at any stage be left with much surplus capacity. To go by the observations of Tata Steel Managing Director Hemant Nerurkar and SAIL’s Verma, steel demand in an emerging economy with its focus on infrastructure development should be more than tracking the gross domestic product (GDP) growth rate. A six per cent GDP growth in 2013-14 should, therefore, translate into Indian steel use growing at double last year’s 3.3 per cent.

 

US, UK, and Canada woo leisure travelers from India

Source: The Economic Times

Many Indian families will be visiting their kin in the US this summer; or parents will be visiting campuses where their children are studying. But the US commerce department, along with big tour operators in India, has been working towards making US an independent leisure destination for Indian tourists, rather than just visits to friends and relatives or VFR, as that segment is called.

“Following President Barack Obama’s tourism plan launched last year, we have initiated many business-to-business and people -to-people initiatives to make the US a friendlier destination for tourists from India. This includes simplification and fast-tracking of the visitor visa process and granting of multiple entry 10-year visas,” a senior official at the US embassy told ET Magazine.

Uncle Sam woos visitors

An interesting trend is that different states of the US are making efforts to woo Indian tourists independently. An example is Visit Florida, an organisation that opened an office in India recently and estimates that around 58,000 Indians travelled to Florida during 2012, which was a 16% increase over the previous year.

“India is one of the top source markets for us. We intend to showcase popular cities like Miami, Orlando, and Kennedy Space Center. We also plan to launch a Florida specialist programme for the travel trade,” says Tracy Vaughan, director, international sales and marketing of Visit Florida. Theme parks, beautiful beaches, endless entertainment, and culinary and shopping options are some of the reasons that make Florida an attractive travel proposition for Indian families.

Brand USA, the initiative to encourage international visits to the US and to grow its share of the global travel market, is set to launch a big campaign in India in to showcase, among other things, specific destinations such as Niagara Falls, Disneyland and California and Las Vegas.

Through its Visit USA Committee (Vusacom), the US government has been reaching out to tour operators, hoteliers, airlines and destination management companies in India. “The US has always been a big destination for business, education and visiting friends and relatives. But with the new initiatives, which were unveiled about 18 months ago, we have been seeing a growth in the segment of free and independent travellers too,” says Ashwini Kakkar, executive vice-chairman of Mercury Travels and chairman of Vusacom in India. These are people who are in the mid- to high-end range and can be differentiated from the kind of travellers who would go only to Bangkok or Dubai for shopping holidays. They are much bigger spenders, he adds .

According to Kakkar, the steps taken by the US government to simplify B1 and B2 visas — for tourist and business visitors — have given a boost to US-bound travel. Some 660,000 B1 and B2 visas were issued in India in fiscal year 2012. In 2013 there has been a 20% upswing over the previous year so far.

Being a sport

Like the US the UK, too, has been running campaigns in India to change the perception of the country to that of a leisure destination from one just for family visits.

“Last year, in the run up to the Olympic Games we had unveiled a huge promotional campaign. From India we are looking at sports tourism centred around football, cricket and other niche segments such as film tourism or visits to Bollywood-related locations,” says Keith Beecham, overseas network director, VisitBritain.

Specific regions of the UK, too, are working with Indian tour operators to attract bigger numbers of tourists from India. Wales, for instance, is hoping to see a large number of Indian visitors for the ICC Champions Trophy in June. “The tournament builds on Cardiff’s strong track record as a city that can host truly global sporting events and will guarantee fantastic entertainment for cricket fans,” first minister of Wales Carwyn Jones said.

“With global travel becoming an integral part of the Indian lifestyle, countries such as Canada, the US and the UK enjoy strong appeal. Theme parks are of great interest and have led to increased number of visitors to Disneyland. In the UK, major sights such as the Tower of London and Buckingham Palace are on most visitors’ itineraries,” says Vishal Suri, deputy COO tour operating, Kuoni India.

Another conventional destination, Canada, too, is seeing a shift from Indian travellers visiting friends and relatives to leisure travellers. Visitors in the VFR category are adding on vacations such as an Alaska cruise or an adventure trip to Canadian Rockies.

The state of British Columbia, which has a large population of people of Indian origin, is likely to see a growth of about 10% in the number of visitors from India in 2013. “The trend we are seeing is an increase in independent travellers. We are receiving requests for self-drive itineraries, which is great as BC is a very easy destination to enjoy by driving oneself,” says Clare Mason, manager, Destination British Columbia.

Bangladesh toll reaches 377, building owner arrested

Source: Reuters India

The owner of a factory building that collapsed in Bangladesh killing hundreds of garment workers was arrested on Sunday trying to flee to India, as hopes of finding more survivors from the country’s worst industrial accident began to fade.

Mohammed Sohel Rana was arrested by the elite Rapid Action Battalion in the border town of Benapole, Dhaka District Police Chief Habibur Rahman told Reuters, ending a four-day manhunt that began after Rana Plaza, which housed factories making low-cost garments for Western retailers, caved in on Wednesday.

Bangladesh television showed Rana, a local leader of the ruling Awami League’s youth front, being flown by helicopter to the capital Dhaka, where he will face charges of faulty construction and causing unlawful death.

Authorities put the latest death toll at 377 and expect it to climb higher with hundreds more still unaccounted for.

Four people were pulled out alive on Sunday after almost 100 hours beneath the mound of broken concrete and metal, and rescuers were working frantically to try to save several others still trapped, fire services deputy director Mizanur Rahman said.

“The chances of finding people alive are dimming, so we have to step up our rescue operation to save any valuable life we can,” said Major General Chowdhury Hassan Sohrawardi, coordinator of the operation at the site.

About 2,500 people have been rescued from the wrecked building in the commercial suburb of Savar, about 30 km (20 miles) from the capital, Dhaka.

Officials said the eight-storey complex had been built on spongy ground without the correct permits, and more than 3,000 workers – mainly young women – entered the building on Wednesday morning despite warnings that it was structurally unsafe.

A bank and shops in the same building closed after a jolt was felt and cracks were noticed on some pillars on Tuesday.

Police said one factory owner gave himself up on Sunday following the detention of two plant bosses and two engineers the day before.

Anger over the disaster has sparked days of protests and clashes, with police using tear gas, water cannon and rubber bullets to quell demonstrators who set cars ablaze.

Garment workers blockaded a highway in a nearby industrial zone of Gazipur on Sunday demanding capital punishment for the owners.

The main opposition, joining forces with an alliance of leftist parties which is part of the ruling coalition, called for a national strike on May 2 in protest over the incident.

Built on a filled-in pond

Wednesday’s collapse was the third major industrial incident in five months in Bangladesh, the second-largest exporter of garments in the world behind China. In November, a fire at the Tazreen Fashion factory in a suburb of Dhaka killed 112 people.

Such incidents have raised serious questions about worker safety and low wages, and could taint the reputation of the poor South Asian country, which relies on garments for 80 percent of its exports. The industry employs about 3.6 million people, most of them women, some of whom earn as little as $38 a month.

Emdadul Islam, chief engineer of the state-run Capital Development Authority (CDA), said on Friday that the owner of the building had not received the proper construction consent, obtaining a permit for a five-storey building from the local municipality, which did not have the authority to grant it.

Furthermore, another three storeys had been added illegally, he said. “Savar is not an industrial zone, and for that reason no factory can be housed in Rana Plaza,” Islam told Reuters.

Islam said the building had been erected on the site of a pond filled in with sand and earth, weakening the foundations.

North American and European chains, including British retailer Primark and Canada’s Loblaw, a unit of George Weston Ltd (WN.TO), said they were supplied by factories in the Rana Plaza building.

Since the disaster, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked factory owners to produce building designs by July in a bid to improve safety.

India’s IT exports resilient despite difficult times

Source: The Economic Times

DUBAI: India’s IT exporters have demonstrated resilience by surviving the difficult market conditions of recent times, a senior industry official has said.

Kamal Vachani, Hon. Regional Director of Electronics and Computer Software Export Promotion Council (ESC) for the Middle East, said India’s export of computer software and services during 2012-13 is estimated to have registered a growth of 10.26 per cent over 2011-12.

“In value terms, export of computer software and services during 2012-13 is estimated to be USD 75 billion, up from USD 68 billion estimated in 2011-12”, said Vachani.

With an objective to give a visible momentum to enhancing IT & ITES exports from the country, ESC has created a unique brand for Indian software and services companies in 2001 – INDIASOFT International IT Exhibition & Conferences, Vachani said in a statement.

According to him, the main focus of INDIASOFT events has been to enhance the opportunities for Indian software companies in emerging and established IT markets across the world. ESC has organised 12 editions so far.

Commonwealth meet in Sri Lanka ‘accommodates evil’, Canada says

Source: Times of India

LONDON: Canadian foreign minister John Baird has condemned the decision to allow Sri Lanka to host the Commonwealth heads of government meeting in November as “accommodating evil”.

Baird spoke out after his Commonwealth counterparts in London on Friday agreed to press ahead with the meeting despite strong criticism over Colombo’s human rights record.

“We’re appalled that Sri Lanka seems poised to host CHOGM and to be chair-in-residence of the Commonwealth for two years,” the Canadian minister told Guardian newspaper late Friday.

“Canada didn’t get involved in the Commonwealth to accommodate evil; we came to combat it. We are deeply disappointed that Sri Lanka appears poised to take on this leadership role.”

Prime Minister Stephen Harper has said Canada will boycott the November 15-17 meeting unless Sri Lanka investigates suspected war crimes including the alleged indiscriminate killing of civilians by government troops in the climax of the civil war in 2009.

Commonwealth secretary-general Kamalesh Sharma said Sri Lanka had not been on the formal agenda at Friday’s talks but said it had been discussed, and there was no opposition to November’s meeting being held in that country.

It was a “collective decision”, he told a press conference afterwards, adding: “No member of government has indicated remotely that it wishes to change the venue.”

Sharma said the Commonwealth was working with President Mahinda Rajapakse’s regime to address international concerns.

And he said he believed Colombo subscribed to the principles of human rights, democracy and rule of law laid out in the Commonwealth charter signed by Queen Elizabeth II last month.

“All member states subscribe to the same principles and values equally,” he said.

“Interacting with them on many fronts — as I have been doing at all levels — I am fully persuaded that they are sincere in subscribing and following those values.”

Ladakh incursion: China expresses readiness to work with India deal with differences

Source: Times of India

BEIJING: China on Sunday took note of Prime Minister Manmohan Singh’s remarks over PLA’s incursion into the Depsang Valley and said that it is willing to work with New Delhi to deal with differences while maintaining peace at borders and forging strategic cooperative partnership.

“We have noted Prime Minister Manmohan Singh’s statement,” a statement by the Chinese foreign ministry said.

“The two sides have been in communication through the working mechanism for consultation and coordination on boundary affairs, border meetings and diplomatic channels for a solution to the incident in part of the western section of the China-India border,” the statement said.

According to the statement, the reaction was in response to a question over Singh’s remarks that Chinese troops incursion into the Depsang Valley in Ladakh can be settled through talks.

Singh told media in New Delhi on Saturday that India does not want to “accentuate” the situation in the wake of the recent Chinese incursion in Ladakh and is working on a plan to resolve it.

“We do have a plan. We do not want to accentuate the situation. We do believe that it is possible to resolve this problem. It is a localized problem. I think the talks are going on,” Singh said.

China had denied that its People’s Liberation Army (PLA) soldiers had pitched tents in Daulat Beg Oldi (DBO) sector in Ladakh amounted to trespass and violation of the line of actual control (LAC).

The Chinese statement said “we stand ready to work together with India to properly deal with differences and maintain peace and tranquillity in the border areas in a bid to boost the healthy and stable development of China-India strategic and cooperative partnership.”

It said “while actively developing friendly cooperation in recent years, China and India have committed themselves to settling disputes including the boundary question through peaceful negotiation and preventing the disputes from affecting the development of bilateral relations”.

The two sides are currently trying to resolve the issue through border consultation mechanism inked last year even as external affairs minister Salman Khurshid is due visit Beijing on May 9, which officials said would be followed by new Chinese Premier Li Keqiang visit to New Delhi.

Kerala, Tamil Nadu agree to share water

Source: Times of India

THIRUVANATHAPURAM: Ministerial-level talks between Kerala and Tamil Nadu on sharing water under the Parambikulam-Aliyar river pact ended here on Sunday on a positive note with TN agreeing to release 100 cusecs per day to Kerala.

In response to Tamil Nadu’s gesture, Kerala agreed to release 40 cusecs per day to Tamil Nadu from Shiruvani river to Coimbatore.

Briefing reporters after the meeting which was attended by Tamil Nadu PWD minister T Ramalingam, Kerala water resources minister PJ Joseph said the joint water regulatory board, consisting of officials from both states, would meet soon to discuss water sharing from Sholayar river.

The meeting was held against the background of Kerala government’s decision to move Supreme Court to get due share of water from the neighbouring state under the Parambikulam-Aliyar river agreement.

Kerala had accused Tamil Nadu of not honouring the pact by not releasing the due share to Chittor river in Palakkad which was facing acute drought situaion.

Kerala had also brought to Tamil Nadu’s notice the drought situation prevailing in Palakkad and non-availability of water under PAP had adversely affected agriculture sector.

As per the Parambikulam-Aliyar project (PAP), Kerala is entitled to get 7,250 million unit cubic feet in a water year (between July 1 to June 30).

A joint water regulatory board of officials from Tamil Nadu and Kerala release the water under a “fortnightly pattern”.

Dikshit accepts protest letters over inflated bills

Source: Hindustan Times

Chief Minister Sheila Dikshit on Sunday accepted the 10,50,000 letters written to her by the Delhi residents over inflated water and power bills following the protest of Aam Aadmi Party (AAP) at Jantar Mantar  in the national Capital.

AAP leader Arvind Kejriwal said Dikshit’s agreeing to accept the letters is “people’s victory.”

Kejriwal vowed that the movement against the inflated bills would continue until the tariffs are brought down, and alleged that both the Congress and the BJP have together cartelised the water and electricity sector in the state.

“At 9 am one of my associates, Dilip Pandey, got a call from the chief minister’s Office saying Sheila Dikshit wanted to talk. Dikshit said she will receive the protest letters. She was compelled to do so because of the people’s pressure. She had to bow down to the people,” said Kejriwal, while addressing a gathering.

Since the chief minister agreed to accept 10,50,000 letters of protest to her written by the people of Delhi highlighting the inflated bills, the AAP activists called off their scheduled march to her residence, AAP spokesperson Aswathi Muralidharan said.

In the afternoon, AAP activists Manish Sisodia and Kumar Vishwas along with 10 other party members boarded a bus, carrying the  protest letters from Jantar Mantar and handed these over to Dikshit’s staff around 3 pm at her residence at Motilal Nehru Marg in New Delhi’s VIP area.

Kejriwal said the movement against inflated water and power bills would continue till the bills are either waived off or the charges are reduced.

“Our aim is not just to submit these (over) 10 lakh letters, but we are seeking action on them. Our protest is unlike that of the Bharatiya Janata Party’s Vijay Goel who simply protests for limelight. We have said we won’t pay our bills and this movement will continue till these bills are reduced,” he asserted.

Kejriwal said the Congress governments both at the Centre and in the state had failed to address the issue of water crisis in the national Capital.

“Every year, the Prime Minister says that we will provide water to every household in this country. They have not been able to provide water to Delhi in the past 65 years. How will they provide water to the entire country,” he asked.

“Sheila Dikshit has been in power for the past 15 years. Why has not the issue been addressed,” he asked. Most of the water tanker companies are owned by leaders of these two parties, and the government was hand in glove with the power discoms, he alleged.

Earlier, Delhi Traffic Police eased the traffic restrictions they had imposed in Janpath-Sansad Marg area due to protests and demonstrations.

Kejriwal fasted for 15 days earlier this month to press his demand for reduction in water and electricity tariffs in the capital.

Samsung to start manufacturing Galaxy S4 in India soon

Source: The Hindu Business Line

New Delhi, April 28: Samsung India today said it will soon start manufacturing its flagship high-end smartphone Galaxy S4 in India.

“We are planning to start manufacturing of S4 soon at our Noida facility,” Samsung Mobile and Digital Imaging Country Head Vineet Taneja told PTI.

He, however, refused to share any timeframe by when the production will start. The Noida facility is manufacturing about 35-40 million phones annually, including 12 smartphones such as Galaxy S3.

The company currently imports the recently launched Galaxy S4 from South Korea.

Sensing huge demand for Galaxy S4, the company is also looking to double the high-end smartphone (above Rs 20,000) market size in India, which is currently contributing around 10-12 per cent of the overall smartphone market.

The Galaxy S4, which is packed with newer imaging features as well as ‘gesture-control’ technology, has a five-inch full HD super AMOLED touchscreen, 13 mega pixel rear and 2 mega pixel front camera and supports 3G networks.

Although Samsung is the market leader in smartphone market in India, competition from Apple, BlackBerry and Nokia has put pressure on it to add new software features to maintain its lead.

According to research firm IDC, the overall mobile phone market in India reached about 218 million units in 2012, growing 16 per cent year-on-year.

Of this, 16.3 million units were smartphones, but the category saw a growth of about 48 per cent. Samsung was the leader in the quadcore and 5-inch plus screen size models, IDC added.

The demand for smartphones is expected to be around 34-36 million units this year.

Globally, Samsung had 30.3 per cent share of the smartphone market (with sales of 215.8 million units) in 2012, while Apple had a 19.1 per cent share with sales of 135.9 million units, according to IDC.

India’s super-rich club shrinking

Source: Times of India

LONDON: The good news is India is home to 109 billionaires with an average net worth of $1.7 billion each. The bad news, however, is that compared to last year, India has seen the largest fall in super-rich population in the world.

Compared to last year, India has 485 fewer super-wealthy individuals, followed by China which lost 265 and Japan which lost 210.

The country’s super-rich club — those worth at least $30 million — has 7,730 members with a combined worth of $925 billion. Among them, the largest chunk is of the ultra high-net worth individuals (UHNWIs) who are worth $30 million to $49 million.

They make up 45.7% of the total UHNW population in India with a combined fortune of $125 billion or 13.5% of the total wealth of the India’s ultra affluent.

This is significantly higher than most of its immediate neighbours — Pakistan (310 super-rich), Bangladesh (85) and Sri Lanka (60), or most other Asian countries like Singapore (1,305), Indonesia (785), Thailand (625) and Malaysia (780). Only Japan (12,830) and China (11,245) have more super-rich people than India.

Wealth-X’s “World Ultra Wealth Report” shows the world’s UHNW population grew by 0.6%. The growth rate of the global billionaire population, however, outstripped that growth rate by expanding at 9.4%.

There are 2,160 billionaires globally with a total wealth of $6,190 billion. This group of billionaires, representing the top 1.2% of the world’s UHNW population, controls 24% of the total fortune attributable to the ultra- wealthy. On average, these billionaires are worth $2.9 billion each.

Bollywood celebrates 100th birthday

Source: Times of India

One hundred years after the screening of a black-and-white silent film, India’s brash, song-and-dance-laden Bollywood film industry celebrates its centenary later this week.

The milestone will be marked with the release of Bombay Talkies, made up of short commemorative films by four leading directors, while India will be honoured as “guest country” at next month’s Cannes festival.

Exhibitions in the capital New Delhi are showcasing a century of cinema, including onscreen kissing scenes that originally fell foul of the censors.

It is also a time for reflection on how the industry has evolved, from its early screen adaptations of Hindu mythology to the garish romantic escapism of modern blockbusters.

Commercially, cinema is thriving: India produced almost 1,500 movies last year and the industry is expected to grow from $2 billion to $3.6 billion in the next five years, according to consultancy KPMG.

Leading the way is Hindi-language Bollywood, which took the “B” from its home in Bombay and won the hearts of movie-mad Indians.

But old-timers complain that it has become superficial, neglecting to deal with pressing social concerns of the age.

“There’s a dumbing down that has taken place in the content. I think we are suffering from what is called the narrative crisis,” said veteran director and producer Mahesh Bhatt.

He contrasts modern filmmakers with Dhundiraj Govind Phalke, known as the “father of Indian cinema”, who brought the first all-Indian feature film to the silver screen in Bombay (now Mumbai) on May 3, 1913.

A tale from the Hindu epic Mahabharata, Raja Harishchandra, quickly became a hit despite its female characters being played by men — women acting was still widely frowned upon.

Phalke made more than 100 films until his silent style fell victim to “talkies” in the 1930s, but the advent of sound technology allowed India cinema to flourish.

Bollywood plot-lines today can involve stars breaking into song, often in picturesque far-flung locations, apropos of nothing — a style that may bemuse a Western audience, but one that helps to set Indian cinema apart.

“If it was exactly the same thing as Hollywood, Hollywood would have run us over. We don’t have that money,” said film critic Anupama Chopra.

For her and many others the “golden age” of cinema was the 1950s, when movie greats emerged such as Satyajit Ray, India’s most renowned filmmaker, who hailed from the alternative film hub of West Bengal.

It was the era of newly independent India, searching for an identity and producing films such as Mehboob Khan’s 1957 hit Mother India, which combined social concerns with popular appeal.

The 1970s and 80s saw a growing commercialism with the rise of the “masala” movie — a family entertainer that typically mixed up romance and action, songs and melodrama, a comedy touch and a happy ending.

Parallel Cinema continued to focus on realism, with films such as Mahesh Bhatt’s Arth (Meaning) in 1982, a gritty tale of an extramarital affair that presented strong female characters.

It was a path-breaker in a decade described as the “dark ages” of Hindi cinema, which struggled with the advent of colour television, rampant piracy and dependence on the Mumbai underworld for funding.

Things improved after India’s economy opened up in the early 1990s, and again a decade later when filmmaking won formal “industry” status. Both steps encouraged foreign firms, such as Fox and Disney, to invest in Bollywood.

But subsequent leaps in technology have not been matched by advances in storytelling, say critics, who lament the formulaic plots, passive roles for women and the copying of Hollywood.

Bollywood’s escapist fantasies have long held mass appeal because “there’s enough realism in the common man’s life”, said Bhatt.

But with ever more TV shows, the Internet and easily available global films, such movies may no longer meet the demands of the educated middle-class.

This expanding group “wants to see something better than trash which caters to the common man who drives auto-rickshaws. They want to see a different kind of cinema,” said veteran actor Rishi Kapoor.

A new crop of experimental filmmakers has started to appear, such as “Hindi indie” darling Anurag Kashyap who is a fixture on the global film festival circuit.

Trade analysts say the growth in multiplex cinemas has also encouraged mainstream films to diversify: a surprise hit last year was Vicky Donor, a romcom about sperm donation.

Raj Nidimoru is co-director of upcoming Go Goa Gone, one of India’s first zombie films, and he believes the move away from staple Bollywood is only just beginning.

“This is just a ripple right now, it’s going to become a wave.”

Canadian Food Festival at Taj Mahal Palace

By Sparsh Sharma for the Government of Canada

A “Sugar Shack” Experience

The Consulate General of Canada in Mumbai, in partnership with the Taj Mahal Palace, presents the Canadian Food Festival from March 22nd to March 30th, 2013.

Mumbaikars will have the chance to feast on Canadian delicacies with a sweet twist at the Shamiana restaurant.  The menu is inspired by the Canadian sugar shacks where maple sap is collected in March and boiled into syrup, toffee and more.

Overseeing the creation of these delights is Chef Louis Charest, Executive Chef to the Governor General of Canada, who has come directly from Canada to prepare sumptuous meals using authentic Canadian ingredients.

On arriving in Mumbai, Chef Charest said “I am excited to share the Canadian sugar shack experience with Mumbaikars. These flavours will serve as an inspiration to display great Canadian cuisine and amazing Canadian products with a fun mix of Indian spices.”

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Chef Charest brings the Canadian Sugar Shack dining experience to life through old-time specialties like maple taffy on snow, split pea soup, poutine, maple baked ham, tourtière, and mouth-watering maple desserts.

Following on the success of last year’s Atlantic Canadian Seafood Festival, there will also be a delicious spread of the freshest Canadian seafood, including lobster, scallops, crab, halibut and more. By pairing these delicacies with organic Canadian wines from British Columbia, including dessert wine, and modern Canadian cocktails, the festival is a food lover’s dream come true!

To further capture the true feeling of a Canadian sugar shack, Shamiana is hosting a traditional musical performance at the Sunday Sugar Shack Brunch on March 24th. Mario LeBreton and Philippe LeBlanc will entertain with toe-tapping classics and original music that will transport listeners to a traditional Eastern Canadian party.

Agriculture and Agri-Food Canada and the Atlantic Canada Opportunities Agency have worked with Canadian suppliers to ensure that only the finest Canadian products are being delivered straight from Canada to your plate during the entire festival.  The Canadian Food Festival will be the opportunity to see new Canadian products not yet available in the Indian market.

Canada’s Consul General in Mumbai, Mr. Richard Bale said “Canada has high-quality agricultural products to share with India and this event will give a unique opportunity for Mumbai to taste Canada’s diverse and top-quality products.  Canada is already providing pulses, canola oil, fish and seafood, specialty and fine foods, sauces and seasonings, wines, spirits, ice wine, bakery, confectionery, and snacks to the Indian market, and we look forward to new products being available in the marketplace in the near future.”

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Background

In his role as Executive Chef to Canada’s head of state, Chef Charest has catered for high-ranking officials, prime ministers, dignitaries, royalty and world leaders including their Royal Highnesses, Her Majesty Queen Elizabeth II and Prince Phillip the Duke of Edinburg, and now Chef Charest is cooking for Mumbai!

Chef Charest’s pride in showcasing his talent has been rewarded with 14 gold medals, 3 trophies, 4 grand gold medals, 1 World Cup, 4 silver medals and 3 bronze medals. This has included winning gold at the famed New York Culinary Salon, representing Canada in the World Banqueting Competition at the World Championships, winning an individual silver medal at the World Culinary Olympics in Berlin, Germany, in 1996, and earning five gold medals at the Culinary Grand Prix in Glasgow, Scotland, in 2001.

Why Buffett is bullish on stocks: A Q1 letter to clients

By Dan Richards, Visiting Professor at Rotman School of Management

Introduction

Since 2008, I have posted templates to serve as a starting point for advisors looking to send clients an overview of the year that just ended and the outlook for the period ahead.

Advisors have told me they’ve received a great response to these letters and the templates rank among my most popular articles – that’s especially the case given today’s uncertainty.

This letter has three components:

  1. An update on performance
  2. Perspectives on today’s macro challenges from Warren Buffett’s most recent letters to investors
  3. Your recommendations for the period ahead

 

The first quarter in review: Why Warren Buffett is bullish on stocks

As we enter the second quarter of 2013, I’m writing to summarize markets developments since the start of the year and to share my thoughts on positioning portfolios for the period ahead. First though, a quick recap of the first quarter of 2013.

At the end of March, U.S. stock markets crossed the all-time high reached in October of 2007. This was due to an exceptionally strong performance to start the year following the agreement by U.S. Congress in early January to avoid the “fiscal cliff” that would have required dramatic reductions in spending and risked throwing the U.S. back into recession.

Three things worth noting about first quarter performance:

  1. Driven by a strong start in January, global markets were up by almost 9% in the first quarter, led by gains in the United States of over 10%. One word of caution: Last year global markets were up by 12% in the first three months before giving back almost all of those gains in the second quarter, in large measure due to concerns about Europe.
  2. On the topic of Europe,  in spite of recent headlines about the bank crisis in Cyprus and continuing issues in Greece, the European market was up by 7% (in local currency) in the first three months of 2013. While Cyprus and Greece got the headlines, the large bulk of Europe’s economic performance will continue to be driven by the larger countries.
  3. Canada continued to underperform the United States and global markets. Since the beginning of 2010, the Canadian market is up by about 15%; in that same time the United States is up by roughly 50%.

 
Here’s how first quarter performance looked:

Monthly Returns - Local CurrencyCanadaU.S.EuropeEmerging MarketsWorld Markets
January 20132.2%5.3%5.1%1.0%4.9%
February 20131.5%1.3%0.9%0.0%1.2%
March 2013-0.6%3.8%0.9%-0.8%2.3%
Q1 20133.1%10.7%7.1%-0.2%8.6%

Returns to month end, all in local currency, including dividends

 

Warren Buffett’s view: Stocks still offer value

Warren Buffett is generally considered the greatest investor of all time. From 1966 when he began running Berkshire Hathaway to the end of 2012, the overall U.S. stock market (including dividends) has returned an average of 9.4% annually. That means that $1000 invested in the US market in 1966 was worth just over $74,000 at the end of 2012. During that same time, the book value of Berkshire Hathaway increased by almost 20% per year, twice the U.S. market return. The result: That same $1000 invested in Berkshire Hathaway’s book value would have grown to over $5 million.

That’s why Warren Buffett’s views are worth heeding. And that’s also why his annual letter to investors is awaited each year with such anticipation. Three key messages in this year’s letter:

1. Invest in “wonderful”  businesses

Buffett is known for saying that he’d rather buy “a wonderful business at a fair price than a fair business at a wonderful price.”  He’s written in depth about the competitive insulation that makes for a great business. (In another well-known turn of phrase, he’s said that he wants to buy businesses “so wonderful that an idiot could run them, because some day an idiot will.”

In this year’s letter, Buffett touched on Berkshire Hathaway’s investment in American Express (of which he owns just under 14%) as well as Coca-Cola, IBM and Wells Fargo, his other three big holdings in which he owns between 6% and 9%. In all four cases, he increased his stake in 2012; he quotes the Mae West line that “too much of a good thing is wonderful.”

2. Look past today’s uncertainty

Buffett addressed the uncertainty that preoccupies many members of the media and which has dampened the willingness of American business to invest. He points out that uncertainty has been a constant in the United States since 1776; the only variable is whether people ignore the uncertainty (which typically happens in boom times) or fixate on it.

Buffett continues to express confidence in the resiliency of American business, just as he did in his famous New York Times article in the fall of 2008 titled “Buy American I Am” that appeared close to stock market bottoms during the uncertainty in the aftermath of the global financial crisis.

3. Stay in the game

In this year’s letter, Buffett addressed the temptation to, in his words “try to dance in and out (of the stock market) based upon the turn of tarot cards, the prediction of so-called experts or the ebb and flow of business activity.”
He went on to say that since the long-term outcome of investing in stocks is so overwhelmingly favourable “the risks of being out of the game are huge compared to the risks of being in it.”

In an interview that followed the release of his letter, Buffett reiterated his view that given that at some point interest rates will inevitably rise, stocks of quality businesses continue to offer good value relative to bonds, even in the face of the run-up in equity prices since last summer. He also repeated his skepticism about owning bonds saying that today “the dumbest investment is a government bond.”
 

What this means for your portfolio

In my email at the end of last year, I outlined some guiding principles in my approach to building client portfolios, three of which I repeat here.  I’d be pleased to discuss these guidelines at our next meeting.

1. Time to rebalance: Adhering to your plan

In light of stock valuations and the risk in bonds, early last year we recommended that clients increase equity weights to the upper end of their range. Given strong stock performance since the mid-point of last year, that has worked out well and we continue to advise that clients hold their maximum equity weight.
But strong performance by stocks means that today some clients are above the top of their equity allocation. In those cases, we have been recommending reducing equity weighting to bring portfolios back within their guidelines. Regardless of what happens to markets in the short term, barring a significant change in your circumstances, you should stick to your investment parameters.

2. Diversifying portfolios

When building equity portfolios, I’ve always advocated strong diversification outside Canada. This helped my clients through most of the 1990s, then hurt them in the decade after 2000, then helped them again in the past three years.

Going forward, I have no idea whether the Canadian market will do better or worse than global markets, but I do know that we represent fewer than 5% of investing opportunities around the world. In addition, because of our resource focus Canada’s market will tend to be more volatile over time than those of the U.S. and yes, even Europe.  For those reasons, I continue to recommend geographic diversification of stock portfolios.

3. Focus on dividends and cash flow

The final principle relates to the role of cash flow from investments. Amid the uncertainty surrounding economic growth and equity returns, I continue to place priority on the cash yield from investments. While the headlines talked about US markets hitting new highs in March, investors who reinvested their dividends saw their account values exceed the 2007 peak significantly earlier.

Dividends on stocks in selective sectors continue to make these stocks attractive. When it comes to equities, we do have to be increasingly discerning, however; in some traditional high-dividend sectors stocks that pay steady income are expensive by historical standards and show signs of stretched valuations.

Parliamentary Secretary for Foreign Affairs attends Armenian Presidential Inauguration

Parliamentary Secretary for Foreign Affairs attends Armenian Presidential Inauguration

Deepak Obhrai, Parliamentary Secretary to the Minister of Foreign Affairs, will be attending the inauguration of Serzh Sargsyan, President of the Republic of Armenia, on April 9, 2013 where he will convey congratulations on behalf of Prime Minister Harper and Canada.

The Parliamentary Secretary will also meet with the Armenian Foreign Minister to congratulate Armenia on the successful membership bid to La Francophonie and express hope for working closely with Armenia on Canada’s priority themes within this body. These themes include children and youth, equality between women and men, and sustainable economic growth among members.

Mr. Obhrai will also take the opportunity to reiterate Canada’s strong support for the efforts by Turkey and Armenia to normalize relations and address historical differences.

ATN Signs Animated Epic Series The Legend of Ponnivala for Canadian Broadcast: In Tete-a-Tete with Dr. Brenda Beck, Producer of the Series

Source: The Sophia Hilton Foundation of Canada

The Sophia Hilton Foundation of Canada and Soft Science Associates, Ltd., creators of the animated Legend of Ponnivala series, have signed on with the Asian Television Network for Canadian broadcast of the 26-episode series. The series is slated to launch in English on ATN in late April, with a Tamil-language broadcast planned for the summer.

The Legend of Ponnivala tells the story of the epic South Indian heroes Ponnar and Shankar. It also relates the origins of their family, back to the founding of the region two generations earlier. It is a surprisingly expansive tale for a local legend, and includes a wealth of historical and social insights into medieval Indian culture. It draws inspiration and characters from the great Indian epic, the Mahabharata, while keeping its focus on farming, the lifestyle central to its place of origin.

Speaking exclusively to AnimationXpress.com’s Zeenia Boatwala about this broadcasting deal, Dr. Brenda Beck, Creator and Producer of The Legend of Ponnivala shares, “I am very happy about this contract. When I met with ATN’s CEO, Dr. Shan Chandresekar, we realized we were on the same page with this series. He had seen the Legend of Ponnivala trailers and was enthusiastic about the prospect of adding it to the network’s family lineup. I felt that the broadcast potential and strength that ATN was offering would be a great vehicle to get the series out to the widest possible audience, Asian and non-Asian alike. The plan to broadcast in both English and Tamil reflects a fitting balance between the story’s Kongu roots and its modern re-telling in English”

The Legend of Ponnivala has previously been seen only as a feature film in select international settings. One extended excerpt received a nomination for Best Animated Film (Home Video) at the 2012 FICCI BAF Awards in India. Another extract was a featured presentation at the MOSAIC International South Asian Film Festival in Mississauga, Ontario.

Dr. Brenda Beck, Adjunct Professor, Department of Anthropology, University of Toronto, adds more, “ Now that its premiere Canadian broadcast has opened the door, we’re looking to build on that momentum and get in touch with additional networks in order to really move the story forward onto an international stage.”

The Legend of Ponnivala is derived from a vast, ancient Hindu folktale tradition from South India’s Kongu region. The story has traditionally been told through song and passed down through generations of singing bards. One such performance was captured on over forty hours of audio tape in 1965 by Dr. Brenda Beck, who directed the series. Art and animation on the project began in 2008. Animator Ravichandran Arumugam, whose grandfather was a traditional singer of the epic, was brought on board to lead the art and animation team.

Informing more on the story line of this series, Dr. Brenda, highlights, “In retelling The Legend of Ponnivala, I have tried to stay as faithful as possible to the story’s original style and content as I recorded it in 1965. At that time, the only place it existed was in the tales of the singing bards of the Kongu region, and it was only by chance that I was able to capture and preserve it on audio tape. This very colourful tale depicts the life of farmers in medieval South India through the adventures of three generations of local kings. Due to a curse, the royal family is forced to confront jealous outsiders who threaten their sovereignty over the land of Ponnivala.

Shares further, “The story has very close ties to other Indian epics, and has even been called a ‘local Mahabharata.’ Because this epic is only really known in selected parts of Tamilnadu, it is fresh and unique, but its size and scope certainly make it powerful enough to stand alongside other great world epics like the Odyssey or Beowulf.”

Also involved in the project is award-winning Celtic musician and world music expert Steafan Hannigan, along with the voice talents of Sivakumar, Sumit Bhatia, Lata Pada, Afroz Khan, Ishwar, and Sanjay Talreja.

“The Legend of Ponnivala” is an epic adventure story for all ages. Part mythology, part fairytale, part historical drama and part action series, Ponnivala promises to delight and entertain viewers of all ages and across all cultures.

On the closing note, Dr. Brenda, expresses, “The Legend of Ponnivala is more than just a TV series. We’ve already released a comic book set in both print and digital formats on our website. It is being taught in elementary schools in Canada, using our lesson plans plus creative added exercises thought up by teachers.  The story provides a unique window on ancient Indian culture, and is even being used as an exhibit at Canada’s Royal Ontario Museum this spring. The whole scope of the project is so much more than just a television series, but with this broadcast the breadth of its cultural, educational, and entertainment value will now be revealed to a much wider audience than we could possibly reach on our own.

If you would like to learn more about the Canada-India Legend of Ponnivala project, please contact Dr Brenda Beck at [email protected]

Indians break another ceiling in Canada as Bharat Masrani is appointed CEO of top bank TD Trust

Indians break another ceiling in Canada as Bharat Masrani is appointed CEO of top bank TD Trust

Source: News East West

TORONTO: Finally, an Indian-origin person is becoming CEO of Canada’s top financial institution.

Bharat Masrani, who is in charge of the bank’s US personal and commercial banking operations, will take over as the CEO of TD Trust – which is Canada’s top bank – from Nov 1.

It will be the first time that a person of Indian origin becomes the head of a bank in Canada. Currently, Sarabjit Marwah , who is the number two in Scotiabank in Toronto, is the highest-ranking Indian in corporate Canada.

But 56-year-old Bharat Masrani will now be the top Indian in corporate Canada when he takes the reins of the country’s top bank.

Masrani, who has been with TD Trust since 1987, started his career as a Commercial Lending Trainee where he rose to Account Manager, Commercial Accounts in 1988. He progressed through a number of positions and responsibilities before assuming the role of Vice President and Head, Corporate Banking Canada.

In 1996, he was appointed Vice President and Country Head for India and then to Senior Vice President, Corporate Finance and Co-Head in Europe in 1997.

In 1999, Bharat also served as Senior Vice President and Chief Executive Officer of TD Waterhouse Investor Services in Europe. Prior to his current position, Bharat was Vice Chair and Chief Risk Officer, Corporate Office, TD Bank Financial Group.

Bharat Masrani, who earned his Bachelor of Administration with Honours in 1978 and then his MBA in 1979 from York University’s Schulich School of Business, currently lives in Portland, Maine, with his wife Shabnam and two children.

“As we look to the future, the Board is confident that Bharat’s leadership, breadth of experience and global business insight will serve him well,” TD Trust chairman Brian Levitt said in a statement on Wednesday.

Outgoing CEO Ed Clark said, “Bharat brings a continuity of strategy, culture and values. I am extremely confident in the future of TD.”

The TD Board opted for Masrani for the top job because of his excellent execution of his boss Ed Clark’s strategies in the US where acquisitions of many banks, including those of Commerce Bancorp for more than $8-billion and some Florida banks, made TD Trust as one of the top ten banks in the US. In fact, the bank has more branches in the US (over 1,300) than in Canada (1,100).