India-Argentina Bilateral Relations - LB Associates

Contents72 Foreword73 India-Argentina Bilateral Relations75 Advantage Argentina Indian Companies in Argentina77 Business Opportunities in India80 India & Argentina Spirit of the Long Term Partnership

ForewordINDIA-ARGENTINA BILATERAL RELATIONSIndia and Argentina have traditionally enjoyed warm and cordial relations, encompassing political, economic, scientificand technological cooperation including Antarctic research and cultural cooperation. The visit of External Affairs MinisterMr Salman Khurshid in February 2013 to Argentina has provided a great momentum to the deepening of bilateral relations.The visit of the Argentinean President Ms Cristina Fernandez de Kirchner to India in October 2009, coinciding with thesixtieth anniversary of establishment of bilateral diplomatic relations galvanised the relations whereby both sides agreedto work together to enhance their multi faceted relationship to one shared on common values and interests includingdemocratic ideals, respect for human rights and mutual understanding and cooperation.Both sides have since had successful visits including that of Union Minister for Agriculture Mr Sharad Pawar, whovisited Argentina in September 2010, and Minister of State for Commerce Mr Jyotiraditya Scindia in May 2011. From theArgentinian side, Mr Mauricio Macri, Chief Minister of Buenos Aires, visited India in April 2010 and Mr Julian Dominguez,Agriculture Minister of Argentina in August 2010.Trade and economic relations form an important component of our bilateral relations and there exists tremendouspossibilities of expansion of trade relations. Indo-Argentine trade turnover stands at $1.75 billion and for the year 2012 (upto November) and represents an increase of six percent year-on-year. The main items of Indian exports to Argentina areOrganic Chemicals, Vehicles and Auto parts, Lubricants, Machinery, Sound and Image Devices and Garments, among others.The main items of India´s imports from Argentina are Soybean oil, Sunflower oil, Leather, Wool, Ferroalloys among others.Argentina is an Agricultural powerhouse and has abundant freshwater resources. It has large arable and fertile landarea. It is one of the world’s largest producers of soy oil, sunflower oil, corn, beef and soybeans and has a large and famouswine industry. It is self-sufficient in energy and has surplus petroleum for exports. Total oil reserves are about two billionbarrels. The Argentine manufacturing industry is relatively large and diversified. It is strong in food processing, automobiles,steel, metallurgy, auto parts, consumer goods, pharmaceuticals, paper, cosmetics and textiles. Argentine companies havestarted producing bio-diesel from soy. Most of the biodiesel is exported.So far a number of Indian companies have established their presence in Argentina in the fields of IT, BPO, KPO, Chemicalsand Cosmetics etc., providing employment to about 7000+ Argentines. Indian investment in Argentina exceeds $800 million.Argentina is considered an attractive near shoring destination by IT firms with clients in the Americas and availability ofbilingual skilled human resources provides attractive opportunities for business.Argentina’s potential in food and energy sectors holds tremendous potential for India in terms of diversifying anddeveloping new sources, in our quest for food and energy security.A unique Regional Action Plan, started in August 2012 by our Mission in Buenos Aires, aims to foster deeper traderelations with the Provinces of Argentina, looking for commercial and economic opportunities. In addition a number ofmarket promotion activities including organising of Buyer-Seller Meets with participation of export promotion councilsin engineering, pharma, chemicals, apparels, prospect of farmers’ mission to exploring possibility of acquire land on leaseor purchase for production of crops for export to India and third countries etc are on the anvil for the year 2013.India and Argentina also have tremendous potential for cultural cooperation. Indian classical arts, yoga, meditationand Ayurveda are very well appreciated in this country and in India we respect the culture of Argentina and their prowessin Sports.I take this opportunity to thank the Diplomatist magazine for bringing out this timely compilation highlighting thedevelopment of our countries’ bilateral relations. I hope that readers will benefit from the information provided thereinand contribute further to augment ties between the two nations.Amarendra KhatuaAmbassador of India to Argentina, Uruguay and Paraguay72THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013

special reportIt was in those years after India becamea free sovereign nation, that its foreignpolicy took birth and shaped many abilateral relationship across the Americas.Built on this premise, today India-Argentinarelations are cordial and encompass political,economic, scientific and technologicalcooperation including Antarctic research andcultural cooperation. India opened a TradeCommission in Buenos Aires in 1943 andlater converted it into an embassy in 1949.Argentina had established a consulate inCalcutta in the 1920s which was transferredto Delhi as an embassy in 1950. Argentinaopened a Consulate General office inMumbai in 2009.Since the establishment of formalbilateral relations with each other, India andArgentina have made significant strides incementing their ties by agreeing to severaldiplomatic engagements and relevantMoUs to that effect. With the 1961 visitof Argentine President President ArturoFrondizi, the list of dignatories visitingIndia has grown. In 1985, President RaúlAlfonsín was the Chief Guest at the RepublicDay parade. Before him President ReynaldoBignone attended the NAM Summit held inIndia in 1983.Amongst the latest visits ArgentineMinister of Agriculture Julian Dominguezand Chief Minister of Buenos Aires MauricioMacri visited India in 2010. The IndianExternal Affairs Minister SalmanKhurshid embarked on a recent tour toArgentina and Chile. He was to meet HectorTimerman, Argentinean Minister of ForeignRelations. While looking ahead to severalpoints of engagement with the ArgentineGovernment, Khurshid hopes to evaluatepotential joint ventures in sectors like agroindustries,oil & hydrocarbons, mining ICT,infrastructure industries, chemicals and autoindustries.Growing bonhomie between India &ArgentinaA number of MoUs and agreementswere inked between the two nations in2009, during Argentine President Dr CristinaFernandez de Kirchner’s state visit. Duringher formal meeting former Indian PresidentPratibha Patil, both leaders recognised thattrade and economic relations underpinbilateral relations. In recognition of the needfor fully realising the untapped potential ofbilateral trade and economic cooperationbetween India and Argentina, both countrieshave agreed, through exchange of formalcommunication between the ForeignMinisters of the two countries, to facilitateon reciprocity basis, fiveyears multiple entry gratis visas forbusinessmen of each other’s country. TheIndia-ArgentinaBilateral RelationsIndian side welcomed the fact that theArgentine Consulate General and TradePromotion Centre in Mumbai is alreadyfully operational reflecting Argentina’sdecision to increase its presence in the Indianmarket and opening up new opportunities forentrepreneurs from both nations.A number of MoUs and agreementswere inked. Some of these are:• MoU on Cooperation in the field of TradePromotion and Technology Transferin International Trade between theGovernment of the Republic of India andthe Government of Argentine Republic• MoU between INTI, Republic of Argentinaand National Research DevelopmentCouncil Corporation, New Delhi.• Institutional Cooperation Agreementbetween the Argentine Council onScientific and Technical Research[CONICET] and the Council for Scientificand Industrial Research.• Exchange of letter for five year multipleentry gratis business visas.• Agreement between the Government ofArgentina and the Government of theRepublic of India for cooperation in thePeaceful Uses of Nuclear EnergyOther Agreements were coopeartionin customs matters; MoU on gainfulemployment of family members of adiplomatic Mission or Consular Post; MoUfor cooperation in Agriculture and AlliedSectors.India-Argentina Food SecurityStrategyOver the past decade, since India’seconomy liberalised trade with Argentinahas grown in volume and in the number ofsectors. In 2012 trade touched $1.75 billionand today the nation is a new and importantdestination for Indian companies. Indianinvestments are estimated at over $1 billionin Argentina.Yet the largest collaboration orassociation that the two nations are chartingis Food Security. According to an UNDPstudy - GM Crops for Food Security in Africa– The Path Not Yet Taken - released in 2012,the leading producers of genetically modified(GM) foods are the US and Brazil, followedby Argentina, India, Canada, and China.THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 73

special reportFor India, Argentina has been considered asignificant partner in the country’s long termfood security strategy.The Embassy Of India, Buenos Aires’“Guide for Business with Argentina,Uruguay & Paraguay” notes Argentina’spotential for contributing to India’s foodsecurity in future. It says, “At present,Argentina is a major source of edible oils forIndia. According to the Solvent ExtractorsAssociation of India (SEA), the requirementof edible oils in 2006 was 12 million tonnesof which seven million were produceddomestically and five million was imported.Imports shot up to over seven million tonnesin 2009. The requirement of edible oils isexpected to increase to 15 million tonnes andmore in the years to come. But the productionof oilseeds in India cannot match the demandand India will continue to be a long termimporter of edible oils. In this respect, Indiacan count on Argentina as a reliable source.”The study says that Argentina is the world’slargest exporter of soya oil and sunflower oil.Argentina has the third largest capacity foredible oil processing after China and USA.)Going by the importance and significancefood security to India, she has importedwheat from Argentina from time to time,including purchase of $44 million in 2008.Besides edible oil and wheat, Argentina canbe a new source of pulses, says the study.“India imports about three million tonnesof pulses from countries such as Myanmar,Australia, Turkey and Canada. Although,India does not import any pulses fromArgentina at present, the Argentine soil issuitable for cultivation of pulses of interest toIndia. The Argentine agribusiness companiesare willing to grow these, attracted by thelarge and growing market in India.” Thepivot Khurshid’s visit is food security anddays ahead will say, how India and Argentinacement this strategy.Argentina’s Energy ContributionArgentina can also contribute, to a smallextent, to India´s energy security. Argentineoil resources are under-explored. They havetwo billion barrels of discovered reserves andare currently producing 800,000 bpd. Thesector is just starting off-shore explorationand the land area has not been fully explored.Here is where Indian oil companies in publicand private sector could make an entry.Reliance has formed a joint venture with anArgentine private company Pluspetrol (alongwith an Australian company Woodside) andtheir consortium has won concessions in Peruand Bolivia for oil and gas exploration. Theyare also exploring opportunities in Argentinaand in other countries of the region. ONGCVidesh Ltd. (OVL) has signed an MoUwith their Argentine counterpart ENARSAand jointly seek opportunities in Argentinaand in this region. Indian companies haveshown interest in investment in the shale gasresources of Argentina. Argentina is the thirdlargest exporter of bio-diesel in the world.They exported over 1.5 million tonnes in2011 and increased production capacity to3.5 million tonnes in 2012. India can alsoconsider imports from Argentina.Source: Joint Statement by India and Argentina onthe Visit of President of the Argentine Republic toIndia (14/10/2009) CII; http://www.icwa.in/pdfs/Argentina_new.pdf; http://www.indembarg.org.ar/en/GUIDE%20for%20business%202012%20revised.pdf; http://web.undp.org/africa/knowledge/WP-2012-018-sakiko-GM%20Crops%20Food%20Sec%20Africa.pdf74THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013

special reportArgentina is an agricultural power.It produces 100 million tonnes offood products and exports more than50 million tonnes. Argentina is the secondlargest producer of agricultural commoditiesand livestock after USA. It is a large exporterof wheat, soya and meat. It is the world’slargest exporter of soy oil and sunfloweroil, the second largest exporter of corn,third largest producer of beef , soybeansand bio-diesel and fourth largest of wheat.Argentina is the fifth largest producer of winein the world.Argentine Agribusiness is modern, largescaleand globally competitive. While inUSA and EU, agro-exports are subsidised,the Argentine government imposes anexport tax for some commodities and stillthe exports are competitive.Argentina is using at present only 34million hectares for agriculture. They caneasily double the area of cultivation andvolume of production. Argentina has a largearea - almost equal to that of India - with avariety of fertile soils and climates. Thereare abundant water resources. Most of theagriculture is rain-fed. There are no irrigationcanals and ground water pumps as in India.The climate is congenial without extremes.It ranges from the warm northern parts to thecold Patagonia in the south lending itself forgrowing different crops. The famous Pamparegion of Argentina, the vast fertile plains,is one of the most productive regions inthe world. Most of the farming is done ina commercial scale by large landownersholding thousands of hectares. Most of thefarms are managed by professionals whohave studied agronomy. They are supportedby an excellent network of research anddevelopment laboratories.Argentina has developed an efficientinfrastructure, logistics and network fortransportation and shipping. The riverports around Rosario connect to the grainsilos and agro processing plants. The foodprocessing industries of Argentina are oneof the most advanced in the world andglobally competitive. For example, the oilcrushing capacity of Argentina is the thirdhighest in the world- even ahead of Brazilwiththe latest technology and plants. Thecommercialisation of agribusiness is doneby well established Commodity Exchangesspecialising in cereals and other agroproducts in Buenos Aires and Rosario.Thus it is evident that Argentina iswell-placed to become a global agriculturalpower in the coming decades in which foodshortage is going to be one of the mainconcerns of the world.Argentina is self-sufficient in energy anda net exporter of oil and gas. It produces850,000 barrels per day of crude oil of whichAdvantage ArgentinaIndian Companies in Argentina300,000 are exported. It has two billionbarrels of reserves. Off-shore explorationhas only now been started and the land areais under-explored. Argentina is the secondlargest gas producer (50 billion cubic metres)in Latin America and exports to Chile.The Argentine manufacturing industry isrelatively large and diversified. It is strongin food processing, automobiles, auto parts,engineering, metallurgy, pharmaceuticalsand biotechnology. Argentina is a pioneerin the world in the development and useof CNG technology. Some Argentinecompanies are globally competitive inpharmaceuticals, biotechnology, CNGtechnology, hydroelectric power machineryand niche engineering fields.Argentina has significant reservesof gold, silver, zinc, uranium, copper,phosphate and iron. The mineral resourceshave not yet been fully explored yet.Investment and Joint VenturesThere are fourteen Indian Companieswhich have established operations inArgentina. They provide employment to7000 Argentines; eight of them are in IT,India’s Exports to ArgentinaOrganic Chemicals, Vehicles and Autoparts, Lubricants, Machinery, Soundand Image Devices, Synthetic Fibers,Garments, Plastic Products, Dyes, Ironand SteelIndia’s Imports from ArgentinaSoybean Oil, Sunflower Oil, Leather,Wool, Ferro-alloys, Valves, Air pumpsand Compressors, Cosmetics, PrecisionInstruments, Corntwo in agro-chemicals one in pharma, onein cosmetics and one in mining.• TCS has a unit employing 200 Argentinesin Buenos Aires and has plans to increasethe staff strength to over 1000 by 2012• ICICI’s BPO wing “First Source” has aBPO in Buenos Aires with 320 staff.• Cognizant has IT and BPO operationsemploying 150 staff• CRISIL’s IREVNA has set up a KPO(Knowledge Process Outsourcing) unit inBuenos Aires for financial and investmentTHE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 75

special reportresearch services employing 70 Argentinestaff and has plans to expand. This is thefirst third-party KPO in Argentina• Copal Partners, an Indian FinancialResearch company has established anoffice in Buenos Aires in the second halfof 2010.This is the sixth global officeof Copal which has centres in US, UK,Dubai, India, and Mauritius. Copal has1200 employees in these six centres andserves 40 clients• HCL has opened a Centre in Buenos Airesin June 2009• Global Sourcing Solutions has openeda Centre in Buenos Aires since January2010. It has started off with 250 staff andhas plans to expand• Cellent, a Mumbai-based IT company, hasbought an Argentine start-up company“Net People” which specialises in softwarefor mobile phones• Aaliptha Software Company of Mysorehas got a seven million dollar sub-contractin 2008 to provide banking solutions toArgentine Credit Cooperative Bank• Flatworld Solutions has opened a Centrein Buenos Aires in January 2010. It hasstarted off with 100 staff and has plans toexpand• Aegis, a part of Essar group acquiredArgentine BPO company Actionline inOctober 2010• United Phosphorus Ltd (UPL) of Mumbaihas acquired two Argentine agrochemicalcompanies and a seed company andoperates four manufacturing units anda R&D unit employing 200 Argentines.UPL exports agrochemicals from itsplants in Argentina. The turnover of UPLArgentina is about $70 million and isexpected to increase• Punjab Chemicals and Crop ProtectionLtd (PCCPL) has acquired two Argentinecompany “Síntesis quimica” and operatestwo factories in Argentina producing andexporting agro chemicals. Their turnoveris about $25 million• Glenmark has acquired an Argentinepharma company “Servycal SA” whichspecialises in oncological products.They are setting up a new plant (to beinaugurated in end 2009) which willbecome the global centre of oncologicalproducts for the company. They arealready exporting to about 30 countries• Godrej has acquired two Argentinecompanies: Issue Group which is a leaderin hair colour and Argencos a cosmeticsbusiness in Argentina. The combinedturnover of $45 million. The Group has amanufacturing plant in Buenos Aires• Indian mining company, Indo BoraxChemicals Ltd has acquired small Boraxmine in Argentina in 2009• Reliance has formed a joint venture withan Argentine oil company Pluspetrol(The consortium includes Woodside ofAustralia) and they have won a concessionin Peru for oil and gas exploration• Srishti Group of Kolkota has signed(in 2009) a MoU with the provincialgovernment of Missiones to build a “VedicHotel” in the tourist resort of Iguazu• Ashok Leyland has signed a MoU withPlaza Group of Argentina for joint venturein production of buses and trucks• Tata Motors is exploring possibilities ofjoint ventures in vehicle production inArgentina• Sonalika Tractors has signed a MoU withan Argentine company for tractors andagricultural machinery• ONGC (OVL) has signed a MoU withENARSA, their Argentine counterpart forpossible joint ventures in Argentina for oilexploration• IFFCO is exploring the possibility ofsetting up a Urea plant in La pampa regionof ArgentinaNon-Resident Indian Companies inArgentina• ArcelorMittal has acquired the Argentinesteel company Acindar and steeldistribution company Majadalani forover $600 million• Sterling Group of India (owned by NRISivasankaran) has acquired a 1700 hectareolive farm in Catamarca Province ofArgentina• “Olam”, a NRI company with headquartersin Singapore has started farming inArgentina growing peanuts. They arediversifying into other crops such assoya and wheat. They have leased 17,000hectares of land and acquired two peanutprocessing plants• There are some Indians who are in textilesbusiness (imports, wholesale and retail) inBuenos AiresArgentinean companies in India• IMPSA, the Argentine engineeringcompany, specialising in hydroelectricprojects and energy, has opened anoffice in Gurgaon. They are exploringopportunities for projects as well as supplyof power generation equipments such asturbines. They source wind energy partsfrom India and outsource engineeringdesigns to Indian Companies• Biosidus, an Argentine pharma companyhas a proposal to invest $20 million ina new plant in India for production ofbiotech pharmaceuticals for Indian andAsian markets. They are already exportingover $3 million a year to India• BAGO, the leading Argentine pharmacompany has an office in Hyderabad.They have a joint venture operationwith Ranbaxy to market their productsin Thailand. Some Argentine companieshave shown interest in investment andjoint ventures in India in food processingand auto partsSources: Business.gov.in; Ministry of External Affairs,Government of India; Embassy of India in Argentina;76THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013

special reportBusiness Opportunities in IndiaIndia’s unique and vast geography,endowed with diverse topography,has made it one of the most attractiveinvestment destinations in the world. It isthe world’s largest democracy with stablepolicy environment, law and order as wellas responsive administrative set-up. Ithas become a global resource for variousmanufacturing and services industry. It isa land of abundant natural resources likecoal, iron ore, manganese ore, mica, bauxite,petroleum, titanium ore, chromite, naturalgas, limestone, dolomite, kaolin, gypsum,apatite, phosphorite, steatite, fluorite, etc. Itslarge area is covered by lush green forestsproducing wide variety of products of highquality like timber. It is a home to rich andvaried vegetations endowed with differentclimatic conditions. It is rich in flora andfauna.The diverse economy of Indiaencompasses traditional village farming,modern agriculture, handicrafts, a widerange of modern industries and a multitudeof services. With the largest area of arableland, India is one of the world’s biggestfood producers. It is the largest producer ofmilk, sugarcane and tea as well as the secondlargest producer of rice, fruit and vegetables.India’s pool of technical manpower basewith an increasing disposable income andits burgeoning market have all combined toenable India emerge as a viable partner toglobal industry. It is the preferred hotspotfor organisations keen to outsource theirR&D activities, software developmentwork, customer contact centres or IT enabledbusiness processes. The top sectors attractinghighest Foreign Direct Investment (FDI)inflows into the country are: electricalequipments, services sector (financial and nonfinancial), telecommunications, transportationindustry, fuels, chemicals, constructionactivities, drugs and pharmaceuticals, foodprocessing, cement and gypsum products.Huge investment potential exists in theupcoming Knowledge Process Outsourcing(KPO) sector and the real estate industry.The Government of India is making allefforts to supplement all such advantagesof the country. It has made infrastructuredevelopment as one of the key area offocus. Sound and effective connectivity viarail, road, ports and air, between the IndianStates and with the rest of the world, is anecessity. Along with this, efficient powersupply and excellent telecommunicationnetwork plays a very important role in thecountry’s development. Accordingly, thegovernment has undertaken several policymeasures and incentives to attract investorsinto the country and provide a good qualityof life to the people.Thus, India is one of the few markets inthe world which offers high prospects forgrowth and earning potential in practicallyall areas of business, particularly in tourism,information technology (IT) and agriculturalsector. There exists immense investmentopportunities both at the national level andthe State level.Opportunities for ArgentineInvestors in IndiaAutomotive Sector• The country offers several advantages tointernational manufacturers who wish tomake the country their production hub. Itoffers expertise, low production costs andmillions of potential customers• The scale, quality and diversity of growingtalent pool in India offers significantopportunities to a global enterprise whichknows how to leverage this talent to globaladvantage• Government initiatives in the form oftax reductions on the development andproduction of hybrid vehicles are likely toprovide more opportunities to the globalplayers to foray the Indian automotivemarket• Steady growth is expected in the ruralmarket, which provides an opportunityfor players to increase their penetrationlevelsBiotechnology• Biosimilars: The use of biologics in varioustherapeutic areas such as cancer andauto-immune diseases is increasing andtheir genericisation is expected to bring anumber of opportunities for Indian playersin this space• Stem cell therapy: Stem cell therapy holdspotential for the treatment of diseasessuch as Parkinson’s disease, Alzheimer’sdisease, etc. The government and a numberTHE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 77

special reportof institutions e.g. National Centre forBiological Sciences, are focussing onbasic and applied research in stem celltechnology to gauge its efficacy andbenefits. India is the second country afterthe US to allow human clinical trials fordrugs using stem cell research• Clinical research: India is emerging as amajor clinical trials destination on accountof its high skills and low cost. The Indianplayers are moving beyond participation inphase II and phase III trials and are signingcontracts for research in drug discovery andpre-clinical stagesChemical• There are significant opportunitiesto increase chemical consumption inIndia owing to low (relative to globalconsumption) per capita chemicalconsumption in India• Development of the Petroleum, Chemicalsand Petrochemicals Investment Regionpolicy would likely to boost investment inthe sector. The Ministry of Chemicals andFertilisers has approved investments ofaround $35 billion for three regions underthis policy• India has significant opportunities inspecialty chemicals. The specialtychemicals market is expected to growfrom $18 billion in 2006 to $40 billion by2013• Research & Development in the chemicalsector has opportunities with governmentpromoting these efforts. The Centre hasplanned to lend $3.12 Million in 2009–2010 to the Central Institute of PlasticEngineering & Technology to promoteR&D effortsFood Processing• Rising urbanisation and disposableincomes, the lifestyle of consumers, traveland exposure to global cuisines and agreater willingness to experiment have ledto an increase in demand for processed andready-to-eat food. Investments worth $30billion are required to increase the outputby 10 percent through 2015• The low shelf life of fresh produce andthe high levels of wastages necessitateinvestment in supply chain infrastructureincluding bulk warehousing, food logistics,cold chain infrastructure, etc. There is alsoconsiderable scope to use sophisticatedtechniques and applications in areas such asdemand forecasting, data integration, fundflowmanagement and information sharingto improve supply chain management• Potential global outsourcing hub - Indiahas abundant resources in terms of rawmaterial for food production, includingfruits, vegetables, spices, dairy productsand edible oils. The varied agro-climaticconditions within the subcontinent alsoprovide for a diversity in cropping patternsthat is critical to grow a wide variety ofagricultural produce. The presence of askilled workforce and low labour costsare key factors to be considered whileestablishing production basesGems and Jewellery• The jewellery retail sector is likely tobecome much more organised in thecoming years, and chain specialists areexpected to expand into smaller towns andcities across the country• International brands, which were earlierconfined to the luxury segment, areplanning to enter the regular markets inreal and costume jewellery. For instance,Thailand-based Pranda is planning toincrease its presence in India• The Gems and Jewellery Export PromotionCouncil has initiated India InternationalJewellery Show Signature to promoteIndia as the preferred source for jewelleryand eventually build the ‘India’ brand.The initiative is likely to bolster both thedomestic and export gems and jewellerymarket• To bolster the export and import markets,the government has formulated new rulesfor faster clearance of import and exportconsignments of specific goods includinggems and jewelleryIT-ITeS• New verticals and geographies: Significantopportunities exist in terms of new verticalssuch as healthcare, retail, public sector,travel and tourism and emerging marketslike Asia Pacific, Central and EasternEurope and Latin America to drive thefuture growth• R&D product innovation: Emergenceof platform solutions and innovationsin technology such as cloud computing,virtualisation, open source software andservice oriented architecture• New service segments: Segments such asrural BPOs, mobility solutions, embeddedsystems, KPO, LPO, ER&D serviceexports, infrastructure management, etc.are recording significant growth• Focus on SME segment: Through initiativessuch as flexible pay-per-use/outcomebasedpricing models, shift to Tier II/IIIcities to gain operational efficiency• Government: With projects such as NationalKnowledge Networks, e-Panchayat,e-Governance, UID, GeographicInformation System, etc., the governmentsector is coming up as a major opportunityarea for IT vendorsMetals & Mining• India is rich in mineral resources anduntapped metal reserves potential isestimated at around 82 billion tonnes,leading to opportunities for new miningcapacity additions in iron ore, bauxite, coaland gold• There are significant opportunities toincrease metals consumption, as per capitametal consumption in India is far belowthe world average. For example, India’sper capita steel consumption is 49 kg ascompared to the global average of 198 kgin 2008Oil & Gas• India has significant potential to explorenew oil and gas reserves, as 36 percent78THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013

special reportof the country’s sedimentary basin iseither poorly explored or unexplored. InOctober 2010 NELP IX was launched,which received 74 bids for 33 oil & gasexploration blocks• India has huge potential to developunconventional sources of hydrocarbonincluding shale gas and coal-bed methane.The first round of bidding for shale gasblocks is expected to launch by the end ofthis year• Significant opportunities exist in gastransmission pipelines and City GasDistribution (CGD) network, as thePNGRB is likely to increase CGD coverageto 250 cities by 2020• India is expected to witness significantLNG capacity additions over the nextfive years. India’s Liquefied NaturalGas capacity is expected increase from12.5 mtpa in 2010 to around 35 mtpaby 2016• India is emerging as refining hub, withsignificant capacity additions beingplanned over next few years. By 2015,India’s refining capacity is likely to reacharound 260 mtpa• Opportunity also exists for oil and gasvalue chain players. These players couldinclude upstream service providers andmanufacturers of steel pipelines, LPGcylinders, valves, tankers, CompressedNatural Gas (CNG) kits and retailers(petrol, auto-LPG, CNG)Pharmaceutical• Increasing genericisation: Approximately$150 billion worth of drugs is expected togo off-patent by 2015. The value of thesedrugs going off-patent is expected to peakin 2012. There is an unprecedented globalwave of genericisation and India is wellpositioned to leverage this opportunity, asis witnessed by the increasing AbbreviatedNew Drug Application (ANDA) filingsand improving compliance standards.India’s share is 31 percent of the totalANDA filings globally. Governmentsworldwide are promoting the use ofgeneric drugs to counter soaring healthcareexpenditures through various reforms• Mergers and acquisitions: Multinationalplayers are making their presence feltin India in numerous ways; new playersare entering the market, old players areincreasing their stake, M&As are on therise; and there is a trend of alliances formarketing and research. The pharma,biotech and healthcare sectors sawinbound M&A deals to the tune of 52percent of the total M&A deal value in2010. There has been an increase in thenumber of in-licensing and out-licensingdeals and collaborative researchRetail• The retail boom, which has so far beenconcentrated in the metros, is beginning topercolate down to smaller cities and towns.The rural market is projected to dominatethe retail industry landscape in India by2012 with total market share of above 50percent• India has one of the largest numbers ofretail outlets in the world. The sector iswitnessing exponential growth, with retaildevelopment taking place not only in majorcities and metros, but also in tier II and tierIII cities• Retail companies are expected to tap therural segment as their key driver of growthas it accounts for two fifths of the retailconsumption pie• The organised Indian retail industry hasalso begun witnessing an increased level ofactivity in the private label space, which isexpected to grow further in the near future.• Development of India as a sourcing hubshall further make India an attractive retailopportunity for global retailers. Retailers,such as Tesco, JC Penney, etc. are steppingup their sourcing• Retail franchising has been growing at avery fast pace, with over 600 franchisorsand more than 40,000 franchisees acrossthe countryTelecom• The wireless subscriber base is expectedto exceed one billion by 2014, with urbansubscribers contributing around 572million and rural subscribers contributing468 million• The share of VAS in wireless revenue islikely to increase to 12-13 percent by 2011and 20 percent by 2013• The Indian telecom equipment market isexpected to be worth around $77-$111billion by 2015• The number of telecom towers is expectedto reach 571,000 by 2015Sources: Business.gov.in; Ministry of External Affairs,Government of India; Embassy of India in ArgentinaTHE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 79

special reportCultural Cooperation between India & ArgentinaSpirit of the Long Term PartnershipBy KV Vidya & Malvika KareerIndia has been constantly expanding itsglobal footprint on the globe. It is tradepartners with countries not only in theneighbouring region, but with countriesacross the continents spearing throughdifferent cultures and diversities. It has beenobserved historically, that with trade came aninflux of new cultures that blended with thelocal traditions. From food, to clothes andmusic, the influence of cross culture has beenexperienced. The cultural influences can beseen in various forms, whether it’s the dancestyle ‘Tango’ or Bollywood movies such as‘Kites’(shot and based in South America) oreven the local cuisine that is influenced bySouth American food.Argentina has been India’s key tradingpartner, and cultural cooperation is an areathat has a lot to offer. Cultural cooperationwill become the catalyst for trade betweenIndia and Argentina.The two countries enjoy strong ties andcomplement each other in trade. India hasused culture as a means to strengthen its tieswith Argentina. Cultural agreement betweenIndia and Argentina encourages cooperationin fields such as education, art, literature,mass media or communication, journalism,sports and games(as agreed in 1974 agreement). Thereis a need to explore new roads to broadenthe scope and level of cultural cooperationbetween the two countries and strengthen thecultural linkages between the nations. Onlya handful in India would know that therealso exists a city of Hastinapur in Argentina.This city is a large spiritual centre patronizedby a local organization, where people cometo understand spirituality from the vedicperpective and study the ancient school ofIndian Hindu philosophy.The Indian embassy in Argentina hasbeen organizing events like the “Festival ofIndia”, since 2008, which included classicalfolk dance performances, food festivals,painting exhibition, films and music. TheIncredible India campaign is an integral partof this initiative.Revisiting the cultural agreementbetween India and Argentina in 1974, it canbe seen that exchange of materials, in areasranging from education, literature to sportsand music has been done to quite an extentand it has widened. In 1924, Rabindra NathTagore visited Argentina as the guest ofVictoria Ocampo, who is also a well-knownliterary personality and writer. Tagore has acollection of poems under the title “Purabi”,which embodied his stay in Argentina.The Argentine writer has been conferreddoctorate by Prime Minsiter, Indira Gandhiin 1968. The interaction between Tagore andOcampo established an intellectual, literarybridge between the literary societies of Indiaand Argentina. An international conferenceon Tagore was organized in Buenos Aires, in2012. This contributed to the strong interestof Argentina in spiritual and cultural traditionof India.India has lot to offer to the world.Ayurveda and Yoga play a major role inthis contribution. Ayurveda has gainedlot of popularity as a safer alternativetherapy to modern medicine globally. It isa new avenue that is being explored andextensively researched. India, the birthplaceof this science is contributing immensely tothis research pertaining to its modern dayapplications as an effective alternative therapy.The University of Buenos Aires has beenrunning postgraduate courses in Ayurvedain collaboration with Gujarat AyurvedaUniversity successfully. A foundation calledthe Fundacion Salud de Ayurved PremaArgentina has spread the knowledge ofAyurveda throughout Latin America. The80THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013

special reportfoundation, based in Buenos Aires in theArgentine Republic runs courses in two of thecountries major medical schools, the Schoolof Medicine of the University of Buenos Airesand the National University of Cordoba’sSchool of Medicine. The Foundation hasbeen accredited as a Collaborating Center forteaching, assistance and research in the fieldof Ayurvedic Medicine in Argentina by theGujarat Ayurveda University, at Jamnagar,Gujarat, India.Similarly yoga, the Indian scientific artof meditation and exercises is an effectiveway to control many health related ailmentsand helps fight stress and promotes wellbeing. Hastinapur city in Argentina is acentre for Yoga, meditation, philosophy,devotional singing, sacred drama, workshopsand seminars, spreading wisdom of Indianphilosophy in foreign land. A lot of Yogacentres have been set up in Argentinaalready. The spirit of India is celebratedthrough festivals such as Ganesh Chaturthiand Baisakhi both by Argentines and theIndian diaspora.Many natives in Argentina dance tothe tunes of bollywood numbers, which isgetting integrated with the local music anddance. Indian cinema also has a significantrole to play in influencing cultural practiceslike dance and music. A lot of Indian movieshave been screened in different film festivalsin Argentina. This has not only promoted thefilm industry in terms of greater internationalpresence but also with increased revenues.Moreover, there is a very special nightclub called ‘Groove’ in Buenos Aires.Here, one won’t come across salsa orreggaton music like the other night clubsbut soulful Sanskrit melodies that enchantthe atmosphere.This unique, one of a kindplace provides what is called “Yoga Rave”.It is a new concept of fun which is freefrom alcohol, smoking and drugs. The bodyand soul are united by the mantras, yoga,meditation, music and dance in a neverbefore-seenmanner.Cooperation has been happening also inthe field of sports. Maradona, the renownedfootball star visited Kolkata in December2008 at the invitation of the Indian FootballAcademy and inaugurated a football school,which was named after him. The academy isexploring collaborations for training and skillexchanges. A Junior Hockey team from Indiaplayed a series of friendly matches with theArgentine team in December 2008 in BuenosAires and the Senior Hockey team playedin Argentina in the second half of January2009. An Indian women´s hockey team alsotoured Argentina to play a friendly series inJanuary 2009.An Indian Army Polo team playedmatches with their Argentine counterpartsin December 2008 at Buenos Aires and sentan Indian officer for a one-year equestriantraining in Argentina. Both Argentine andIndian Polo players have reciprocallyparticipated in tournaments.In light of broadening the scope ofcultural collaboration, there can be morefocus on reciprocal visits of intellectuals,writers, artists and professors for deliveringlectures, study tours and conducting specialcourses. Scholars and pioneers fromeducational, artistic, literary, journalists andsports associations and organisations shouldproactively participate in conferences,symposia and seminars as this will holdimmense value addition. At the statelevel, government can look at exchange ofmaterials in the fields of education, cultureand sports, translation and exchange ofbooks, periodicals, other educational,cultural and sports publications as a meansof cultural cooperation.We understand India is known for theknowledge services provided by it to bothdeveloped and developing nations. Thereis need for measures to pierce through thelanguage as well as cultural barriers inorder to heighten the strategic partnershipbetween the countries. Visits of teachers,scholars, trainers and students could help usunderstand and integrate the two differentcultures. It will also help the two countriesdraw a clearer picture of how the twocountries can economically benefit fromeach other.Culture will act as a catalyst forimproving trade, whether its apparels,export of food and culinary products,or even the business services offered byIndia. The Argentine President has alwayswelcomed Indian entrepreneurs. She feelsthat a conducive environment exists for highproductivity investments in her country.Companies like TCS, ICICI, Copal Partners,Godrej, Reliance, Tata Motors are amongthe many companies who have already setbase in Argentina. Both sides have uniquestrengths—whether in natural resources,industry, or services. Building on thesecomplementarities will continue to underpintheir strategic relationship.Undoubtedly, culture has a verysignificant role to play in establishing mutualrelationships among nations. It is importantand imperative for governments of both thenations to enhance cultural exchanges ata faster pace to maintain cordial relations.The governments should take keen interestin organising India Shows, festivals andexhibitions to showcase their artefacts,symbolising their culture in true form.They can also enable archaeologists to gainexperience of excavations, trainings andfindings in other’s territory. Thus, culturalintegration can be encouraged betweenIndia and Argentina to build up stronger andsustainable partnership.KV Vidya is the Head of the LAC Division in FICCI.Malvika Kareer is a Research Associate at FICCI.THE EXTRAORDINARY AND PLENIPOTENTIARY DIPLOMATIST • March 2013 81

AdvertorialAyurveda in Argentina andother Latin American countriesAyurveda has been recognized bythe WHO as one of the oldest livingsystems of medicine of the world. InArgentina as in other countries, there hasbeen increasing interest and acceptanceof this ancient science of life as it offerspractical solutions to many problems inmodern life.We have now been spreading Ayurvedain the Argentine Republic and Latin Americafor over 25 years. The Fundación de SaludAyurveda Prema (Prema Ayurveda HealthFoundation) is a nonprofit organizationregistered with the Argentine government.On 2001, after obtaining approvalfrom India’s Ministry of Foreign Affairs andMinistry of Health, the Fundación de SaludAyurveda Prema signed a Memorandumof Understanding (MoU) with GujaratAyurveda University (Jamnagar, India)in the presence of Mrs. Shailaja Chandra(Secretary, Indian System of Medicineand Homeopathy), the Governor of theGujarat State, and other top Indian officials.The MoU accredited the foundation asa collaborating center for teaching andresearch in the field of Ayurvedic Medicinein Argentina.Currently, we are conducting threeannual postgraduate courses on Ayurvedicmedicine approved by the Faculty ofMedicine, Buenos Aires University. In 2000they approved our first PostgraduateCourse on Ayurvedic medicine. Later, in2002, an annual Advanced PostgraduateCourse on Ayurvedic medicine was addedas well as a Postgraduate Distance learningCourse on Ayurvedic Medicine.These courses are intended for medicaldoctors, psychologists, pharmacists, andother professionals in the health field. Allthese courses have been delivered underthe auspices of the Indian Embassy inArgentina. Several Indian ambassadors toArgentina like Mr. Nigan Prakash (2000), MrPramathesh Rath (2006 and 2007) and Mr.R. Viswanathan (2008 and 2012) have alsodelivered lectures to our courses.Our institution in conjunction withIUGR (Great Rosario University Institute) hasbegun a Postgraduate Course on AyurvedicPhytotherapy in 2012 also. This is the firstcourse that is taught on this subject withuniversity endorsement in Latin America.We also offer courses in Ayurveda Healthincluding Abhyanga Massage Courses andMarma Points to people related to the fieldof health and the general public. Since 2005,we have also offered online courses on theprinciples of nutrition in Ayurveda. Thishas enabled our students, who come fromall Spanish-speaking countries, to sharetheir personal growth and transformationexperiences; the latter often extend to theirfamilies, making it possible for whole familygroups to acquire better health habits.Dr Jorge Luis Berra M.D. DirectorFundación de Salud Ayurveda PremaSanta Fe 3373 6 o B - (1425BGI)Buenos Aires - ArgentinaTE: (+5411) 4824-1574 / 4827-4590http://www.medicinaayurveda.orginfo@medicinaayurveda.orgA crucial aspect of successfullyintroducing Ayurveda practice in LatinAmerica has been our work with Ayurvedicmedicines. We have counseled theappropriate Health Departments within theHealth Ministries of Venezuela and CostaRica to give them scientific information,and help their personnel understand thebackground of the therapeutic use of suchmedicines, thus facilitating their officialregistration.We have also conducted lectures,seminars, workshops, and conferenceson various Ayurveda topics in Ministriesof Health, Schools of Medicine, andprofessional and scientific associations inmost Latin American countries: Mexico, ElSalvador, Honduras, Nicaragua, Costa Rica,Panama, Colombia, Venezuela, Ecuador,Peru, Brazil, Paraguay, and Chile, even Spain,Germany and IndiaOf all systems of traditional medicine,Ayurveda seems to be best understoodby people in Latin America and the West,and the most updated. Participants inour courses tell us that Ayurveda’ holisticand scientific approach, improves anddeepens their practical work as medicaldoctors, psychologists, nutritionists,physiotherapists, kinesiologists, nurses,yoga teachers, nutrition counselors, manualtherapists, and other health professionalsand technicians.Opening ceremony Postgraduate Course on Ayurvedic Medicine 2012, with the participation, from right toleft, of: Dr Jorge Luis Berra, Mr R Viswanathan (Indian Ambassador of India to Argentina), Rosana Molho(Director Fundación de Salud Ayurveda Prema), Mr S Babu (Counselor Indian Embassy).From our institution, Fundación deSalud Ayurveda Prema, we are open topossible forms of collaboration with otherinstitutions and companies interested topromote Ayurveda in Argentina and otherLatin American countries.

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