Mumbai: Indian chief executive officers and managing directors in India can expect a 10% salary hike in 2014, according to a report by global management consultancy, Hay Group. The annual Top Executive Compensation Report 2013-14 said that median salary for the MD / CEO expected to increase by 10 cent in 2014, up from 9% last year.
The report said that the CEO's top team is also expecting a double-digit pay rise of 10.4%. It added that a large part of CEO compensation mix in India skewed towards guaranteed pay. The firm in its report also said that gaps in succession planning are leading to dearth of internal talent pool for the top job.
Sridhar Ganesan, Country Head for Hay Group India said, "This year, we see a return to double-digit pay increases for CEOs and their top teams, after a dip last year. Despite a very conservative economic outlook, organizations believe that this year's general elections will give a spurt to their business prospects."
The study found that CEO salaries are 2.9 times those of Business Core roles, and 2.8 times those of Business Enabler roles. Further, it said that that CEOs in India are earning 78 times the salary of an entry-level professional, a ratio that has consistently been on the rise. Contiguous to this is the trend of companies preferring to recruit external CEOs rather than hiring internally from the senior management pool.
Sridhar explained that external recruitment of CEOs has grown in both number and intensity. He informed that spotlight falls on the need for robustness in the senior team's succession management processes, to make the internal talent pool relevant for leadership succession.
With respect to the CEO compensation mix, the study said that Indian CEO pay lags behind in its correlation to performance, with a large part skewed towards guaranteed pay. The mature markets, such as USA and Europe, lead the way, in terms of a greater focus on alignment of CEO pay to business performance and shareholders. Hence, total remuneration is heavily biased towards variable pay in the form of long-term incentives and short-term incentives.
Hay Group's Top Executive Compensation Report 2013-2014 aims to provide an analysis of compensation practices for top executives in Indian organizations. This year's report features insights based on the analysis of 2,524 jobs across 176 organizations. All information analyzed is of December 1, 2013.
Success in my Habit
Friday, January 31, 2014
Deakin University ties up with IIT Madras
Chennai: Deakin University, Australia, has broadened its research link in India through a new partnership with Indian Institute of Technology Madras (IITM).
Ten students undertaking higher degrees by research will collaborate on materials, engineering and manufacturing projects under a memorandum of understanding signed by Deakin Vice-Chancellor Jane den Hollander and IIT Madras Director Bhaskar Ramamurthi.
Under the MoU, five students from each institution will be enrolled in the joint PhD supervision programme. All the ten students will be based at IIT Madras.
The Deakin-enrolled students will be eligible for a three-year fee waiver, an opportunity to study in Australia for three to six months and financial assistance with international conference presentations.
Similarly, IITM-enrolled students will receive scholarships and benefits to be determined by the institution, says a joint press release.
Ten students undertaking higher degrees by research will collaborate on materials, engineering and manufacturing projects under a memorandum of understanding signed by Deakin Vice-Chancellor Jane den Hollander and IIT Madras Director Bhaskar Ramamurthi.
Under the MoU, five students from each institution will be enrolled in the joint PhD supervision programme. All the ten students will be based at IIT Madras.
The Deakin-enrolled students will be eligible for a three-year fee waiver, an opportunity to study in Australia for three to six months and financial assistance with international conference presentations.
Similarly, IITM-enrolled students will receive scholarships and benefits to be determined by the institution, says a joint press release.
Indian retail market set to touch $865 billion by 2023
Mumbai: Foreign direct investment (FDI) by multinational food processing companies has shot up to $2.14 billion in the country between April and October 2013, and continues to increase significantly.
The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6 per cent to reach $865 billion by 2023.
The opportunities in food and grocery retail in India are immense, given that it constitutes about 69 per cent of India’s total retail market, according to panel members at the seventh Food and Grocery Forum India.
Head honchos of top food and grocery brands spoke on the opportunities that lay ahead for the growth of modern retail. In a session anchored by Shivnath Thukhral, Group President of Essar Group, retail CEOs, experts and consultants shared their insights on the business of food production in the country and some consumption patterns.
The Government on FDI in food processing:
Union Ministry for Food Processing Joint Secretary J.P. Meena said the food processing sector is growing annually at 7.2 per cent compared with 3.9 per cent in agriculture for the last five years, ending 2013.
Growing at a faster rate than the agriculture sector, more and more agriculture produce is getting processed, he said, adding that investment in the food processing sector has been increasing annually at 21.66 per cent.
Foreign direct investment has also been increasing significantly at the rate of average inflow of $117 million for 11 years ending 2011-12. In 2012-13, it was $401 million, the Minister said. He added that exports were increasing at the rate of 20.4 per cent per annum.
Heads of various food and grocery brands:
“Consumers shopping at modern trade have grown from 54 per cent last year to the current 68 per cent, driven by increasing consumption, comfortable shopping experience, new categories, wide variety of brands under a single roof and attractive prices”, said Devendra Chawla, CEO of Food Bazaar.
He noted that a whopping 55 per cent of the modern trade shoppers actively seek promotional deals, 35 per cent of them make bulk purchases, of which 30 per cent are male customers.
Jamshed Daboo, CEO of Trent Hypermarkets, added that the country is moving at a fairly fast pace and that consumers are creating their own opportunities and are becoming exposed to information. The challenge, he noted, lies in serving this change.
While Mark Ashman, CEO of Hypercity, added that consumer demand had seen the growth of Hypercity to the current 15 hypermarkets pan India, since operations started in 2006.
Ajay Kaul, CEO of Domino’s added that a good 50 per cent of the market continued to sit on the sidelines, and that there was a huge opportunity in the migration of traditional to modern trade.
Nestle’s Vice President, Sales of Organised Trade, A.S. Chadha, said mass media has a big role in bringing the rural market to the center-stage, which is setting the actual consumer aspiration. “The key element to be focused on is the supply chain and infrastructure in the Tier-II cities. The potential of these cities can be tapped only by facilitating supply chain and logistics,” he added.
Sharing Chadha’s view, Sumit Chanda, Chief Merchandising Officer of Aditya Birla Retail, said, “Before we talk about consumer engagement, we need to measure consumer’s adaptability and spending power in the Tier II cities. Around 5-6 years ago, television soaps captured the lifestyle of the metros, whereas today all the soaps are showcasing Tier-II and Tier-III cities. This proves that there is a huge aspiration level among the people in these cities which the retailer has yet to tap.”
The Indian retail market, currently estimated at $490 billion, is project to grow at a compounded annual growth rate of 6 per cent to reach $865 billion by 2023.
The opportunities in food and grocery retail in India are immense, given that it constitutes about 69 per cent of India’s total retail market, according to panel members at the seventh Food and Grocery Forum India.
Head honchos of top food and grocery brands spoke on the opportunities that lay ahead for the growth of modern retail. In a session anchored by Shivnath Thukhral, Group President of Essar Group, retail CEOs, experts and consultants shared their insights on the business of food production in the country and some consumption patterns.
The Government on FDI in food processing:
Union Ministry for Food Processing Joint Secretary J.P. Meena said the food processing sector is growing annually at 7.2 per cent compared with 3.9 per cent in agriculture for the last five years, ending 2013.
Growing at a faster rate than the agriculture sector, more and more agriculture produce is getting processed, he said, adding that investment in the food processing sector has been increasing annually at 21.66 per cent.
Foreign direct investment has also been increasing significantly at the rate of average inflow of $117 million for 11 years ending 2011-12. In 2012-13, it was $401 million, the Minister said. He added that exports were increasing at the rate of 20.4 per cent per annum.
Heads of various food and grocery brands:
“Consumers shopping at modern trade have grown from 54 per cent last year to the current 68 per cent, driven by increasing consumption, comfortable shopping experience, new categories, wide variety of brands under a single roof and attractive prices”, said Devendra Chawla, CEO of Food Bazaar.
He noted that a whopping 55 per cent of the modern trade shoppers actively seek promotional deals, 35 per cent of them make bulk purchases, of which 30 per cent are male customers.
Jamshed Daboo, CEO of Trent Hypermarkets, added that the country is moving at a fairly fast pace and that consumers are creating their own opportunities and are becoming exposed to information. The challenge, he noted, lies in serving this change.
While Mark Ashman, CEO of Hypercity, added that consumer demand had seen the growth of Hypercity to the current 15 hypermarkets pan India, since operations started in 2006.
Ajay Kaul, CEO of Domino’s added that a good 50 per cent of the market continued to sit on the sidelines, and that there was a huge opportunity in the migration of traditional to modern trade.
Nestle’s Vice President, Sales of Organised Trade, A.S. Chadha, said mass media has a big role in bringing the rural market to the center-stage, which is setting the actual consumer aspiration. “The key element to be focused on is the supply chain and infrastructure in the Tier-II cities. The potential of these cities can be tapped only by facilitating supply chain and logistics,” he added.
Sharing Chadha’s view, Sumit Chanda, Chief Merchandising Officer of Aditya Birla Retail, said, “Before we talk about consumer engagement, we need to measure consumer’s adaptability and spending power in the Tier II cities. Around 5-6 years ago, television soaps captured the lifestyle of the metros, whereas today all the soaps are showcasing Tier-II and Tier-III cities. This proves that there is a huge aspiration level among the people in these cities which the retailer has yet to tap.”
Government launches Rs 500 crore social venture capital fund
New Delhi: The National Innovation Council, in partnership with the Ministry of Micro, Small and Medium Enterprises (MSME), launched the India Inclusive Innovation Fund (IIIF), an impact investment fund that will invest in ventures catering to the country's poor.
The Rs 500-crore fund, which will be registered under market regulator SEBI's Alternative Investment Fund regulations as a Category -I venture capital fund, will invest in social ventures operating in areas such as healthcare, food, nutrition, agriculture, education and skill development, energy, financial inclusion, water, sanitation and employment generation.
"The needs of the people at the base of the economic pyramid are today served by philanthropy and government grants and subsidies which can never be either adequate or scalable," said Sam Pitroda, chairman of the Council.
Pitroda, who is also the advisor to the prime minister on public information, infrastructure and innovation, said that the fund will look to expand its corpus to Rs. 5,000 crores over the next 24 months.
While the ministry of MSME has committed Rs 100 crore, or 20% of the fund's corpus, with the balance raised from banks, insurance companies, and overseas financial and development institutions.
The India Inclusive Innovation Fund will also partner with various incubators, angel networks and public R&D programmes and laboratories, to identify and invest in ventures that are involved in socially relevant technologies and solutions, with a focus on commercialising the same.
"IIIF seeks to leverage the model of venture capital to transform the lives of the less privileged," said Pitroda.
According to a press statement released by the National Innovation Council, the government will not be involved in the day-to-day operations of the fund, which will be entrusted to an asset management company (AMC), set up as a Section 25 not-for-profit venture.
The AMC will appoint a professional management team for this purpose as also an Investment Committee comprising professionals of repute, which will take all decisions, relating to investments and divestments. A Governing Council comprising government nominees as well as eminent persons from the fields of public service, industry, finance and entrepreneurship will provide oversight.
The Rs 500-crore fund, which will be registered under market regulator SEBI's Alternative Investment Fund regulations as a Category -I venture capital fund, will invest in social ventures operating in areas such as healthcare, food, nutrition, agriculture, education and skill development, energy, financial inclusion, water, sanitation and employment generation.
"The needs of the people at the base of the economic pyramid are today served by philanthropy and government grants and subsidies which can never be either adequate or scalable," said Sam Pitroda, chairman of the Council.
Pitroda, who is also the advisor to the prime minister on public information, infrastructure and innovation, said that the fund will look to expand its corpus to Rs. 5,000 crores over the next 24 months.
While the ministry of MSME has committed Rs 100 crore, or 20% of the fund's corpus, with the balance raised from banks, insurance companies, and overseas financial and development institutions.
The India Inclusive Innovation Fund will also partner with various incubators, angel networks and public R&D programmes and laboratories, to identify and invest in ventures that are involved in socially relevant technologies and solutions, with a focus on commercialising the same.
"IIIF seeks to leverage the model of venture capital to transform the lives of the less privileged," said Pitroda.
According to a press statement released by the National Innovation Council, the government will not be involved in the day-to-day operations of the fund, which will be entrusted to an asset management company (AMC), set up as a Section 25 not-for-profit venture.
The AMC will appoint a professional management team for this purpose as also an Investment Committee comprising professionals of repute, which will take all decisions, relating to investments and divestments. A Governing Council comprising government nominees as well as eminent persons from the fields of public service, industry, finance and entrepreneurship will provide oversight.
Civil Aviation Ministry approves operations of Airbus A-380 in India
New Delhi: The Union Minister for Civil Aviation, Shri Ajit Singh has decided to remove restrictions on flights of Airbus A-380 to India. Now, flights of A-380 to India will be allowed to airports which are equipped to handle them. At present only 4 airports, i.e. Delhi, Mumbai, Hyderabad and Bangalore have the required infrastructure for operations of A-380. The decision has been taken after due consultations with the DGCA, Air India and Airports Authority of India.
The operations of A-380 aircraft would be subject to overall traffic entitlements within the bilateral Air Service Agreements (ASAs) with different countries. It has also been decided that wherever the entitlements are not expressed in terms of seats per week, the same should be rationalized and converted into seats per week before allowing A-380 operations to India from these countries. If any Air Service Agreement (ASA) specifically prohibits operation of A-380 to India, the same will also be required to be amended before A380 operations from that country are allowed. The rationalization of traffic rights from services per week to seats per week shall be done through mutual negotiations through Memorandum of Understanding. Before operations of A-380 are allowed, all the airports shall have to get DGCA certification and make adequate preparation in terms of various services required.
The operation of A 380s will help airports to generate more revenue, give more comfortable and luxurious travel to passengers, liberalize the Civil Aviation milieu in India and boost the Iimage of Indian civil aviation in the international market. As per available information, Singapore Airline, Emirates and Lufthansa are interested in operating A-380 aircrafts in India on various international routes.
The operations of A-380 aircraft would be subject to overall traffic entitlements within the bilateral Air Service Agreements (ASAs) with different countries. It has also been decided that wherever the entitlements are not expressed in terms of seats per week, the same should be rationalized and converted into seats per week before allowing A-380 operations to India from these countries. If any Air Service Agreement (ASA) specifically prohibits operation of A-380 to India, the same will also be required to be amended before A380 operations from that country are allowed. The rationalization of traffic rights from services per week to seats per week shall be done through mutual negotiations through Memorandum of Understanding. Before operations of A-380 are allowed, all the airports shall have to get DGCA certification and make adequate preparation in terms of various services required.
The operation of A 380s will help airports to generate more revenue, give more comfortable and luxurious travel to passengers, liberalize the Civil Aviation milieu in India and boost the Iimage of Indian civil aviation in the international market. As per available information, Singapore Airline, Emirates and Lufthansa are interested in operating A-380 aircrafts in India on various international routes.
Biocon to take breast cancer drug to emerging markets
Bangalore: Bangalore-based biotechnology company Biocon Ltd is planning to take its recently launched breast cancer drug to other emerging markets.
CANMAb, jointly developed with US-based drug-maker Mylan Inc, will be launched in Latin America, West Asia and North Africa, where breast cancer cases are on the rise.
“We have to get regulatory approvals, but are keen to get into those markets,” Chairman and Managing Director Kiran Mazumdar-Shaw said.
Biocon’s confidence stems from the fact that CANMAb is 25 per cent cheaper than and equally effective with Swiss drug-maker Roche’s breast cancer drug. Further, the company is confident that it can close 2014 ‘strongly’, and continues to see a healthy order book for its drugs. The company reported a net profit of ₹105 crore for the third quarter, an increase of 14 per cent over the corresponding period last year, driven by sales of drugs such as Basalog and Insupen.
Additionally, it posted Rs 701.16 crore in consolidated net sales for the quarter, 11 per cent higher than the year-ago sales. Also, Biocon has entered into an exclusive licensing agreement for co-development and commercialisation of ADXS-HPV, a novel cancer immunotherapy for cervical cancer in women, for India and other emerging markets.
The company’s licensing income was down to ₹15 crore in the quarter compared with Rs 23 crore last year and R&D expenses were down 53 per cent to Rs 20 crore.
Mazumdar-Shaw said regulations for clinical trials, especially the ones conducted for vaccines, are “ridiculous and impractical” and people with no understanding of clinical trials are making such recommendations.
Recordings of large trials as mandated by authorities involving 10,000 patients and more are extremely difficult, she said.
CANMAb, jointly developed with US-based drug-maker Mylan Inc, will be launched in Latin America, West Asia and North Africa, where breast cancer cases are on the rise.
“We have to get regulatory approvals, but are keen to get into those markets,” Chairman and Managing Director Kiran Mazumdar-Shaw said.
Biocon’s confidence stems from the fact that CANMAb is 25 per cent cheaper than and equally effective with Swiss drug-maker Roche’s breast cancer drug. Further, the company is confident that it can close 2014 ‘strongly’, and continues to see a healthy order book for its drugs. The company reported a net profit of ₹105 crore for the third quarter, an increase of 14 per cent over the corresponding period last year, driven by sales of drugs such as Basalog and Insupen.
Additionally, it posted Rs 701.16 crore in consolidated net sales for the quarter, 11 per cent higher than the year-ago sales. Also, Biocon has entered into an exclusive licensing agreement for co-development and commercialisation of ADXS-HPV, a novel cancer immunotherapy for cervical cancer in women, for India and other emerging markets.
The company’s licensing income was down to ₹15 crore in the quarter compared with Rs 23 crore last year and R&D expenses were down 53 per cent to Rs 20 crore.
Mazumdar-Shaw said regulations for clinical trials, especially the ones conducted for vaccines, are “ridiculous and impractical” and people with no understanding of clinical trials are making such recommendations.
Recordings of large trials as mandated by authorities involving 10,000 patients and more are extremely difficult, she said.
Tamil Nadu clears Rs 854 crore worth water projects
Chennai: The Tamil Nadu Government has sanctioned Rs 853.96 crore for water supply and sewerage projects in small towns and cities, according to an official press release.
The projects under Urban Infrastructure Development Scheme for Small and Medium Towns comprise Rs 441.46 crore for providing underground sewerage systems in six towns – Periyakulam, Sattur, Mettur, Arakkonam, Tirupattur and Chidambaram.
Drinking water supply projects totalling Rs 412.50 crore are planned in Arni, Periyakulam, Thiruvettipuram and Tindivanam.
The State Government has also approved a Rs 230-crore drinking water project for Tirunelveli Corporation with Rs 11.10 crore a year operation and maintenance cost. The project will be funded by the German Development Bank.
To strengthen the drinking water supply to Chennai, the reservoir at Thervoy Kandigai in Thiruvallur district to the North of Chennai will be linked to Poondi Reservoir through the Kandaleru-Poondi canal at a cost of Rs 93.77 crore under the Tamil Nadu Investment Promotion Programme. The project will be implemented by the Chennai Metropolitan Water Supply and Sewerage Board, the release said.
The projects under Urban Infrastructure Development Scheme for Small and Medium Towns comprise Rs 441.46 crore for providing underground sewerage systems in six towns – Periyakulam, Sattur, Mettur, Arakkonam, Tirupattur and Chidambaram.
Drinking water supply projects totalling Rs 412.50 crore are planned in Arni, Periyakulam, Thiruvettipuram and Tindivanam.
The State Government has also approved a Rs 230-crore drinking water project for Tirunelveli Corporation with Rs 11.10 crore a year operation and maintenance cost. The project will be funded by the German Development Bank.
To strengthen the drinking water supply to Chennai, the reservoir at Thervoy Kandigai in Thiruvallur district to the North of Chennai will be linked to Poondi Reservoir through the Kandaleru-Poondi canal at a cost of Rs 93.77 crore under the Tamil Nadu Investment Promotion Programme. The project will be implemented by the Chennai Metropolitan Water Supply and Sewerage Board, the release said.
Czech company sets up plant in Pune
Pune: Czech Group Gearspect has set up a plant in Pune to manufacture gear measuring equipments and gear cutting machines for the auto, aeronautics, heavy engineering, construction equipment and defence sectors.
Jiri Horacek, CMD, Gearspect Group a. s., said that this will be the only company to manufacture Gear Lead Profile Pitch Inspection Equipment in India. It also plans to assemble gear cutting machines in two years and later manufacture them. The facility involves an initial investment of Rs 6.5 crore.
Jiri Horacek, CMD, Gearspect Group a. s., said that this will be the only company to manufacture Gear Lead Profile Pitch Inspection Equipment in India. It also plans to assemble gear cutting machines in two years and later manufacture them. The facility involves an initial investment of Rs 6.5 crore.
Coffee sector likely to get Rs 950 crore, a boost for R&D
Bangalore: The Union ministry of commerce is hopeful of approval from the cabinet by the middle of February for the 12th five-year plan (2012-17) allocations for the coffee sector.
It has approval from the planning commission for a 60 per cent increase in allocation to the sector over the 11th plan, at Rs 950 crore, a top ministry official said.
"The Expenditure Finance Commission has also given its approval for the detailed packages for several schemes. However, it requires cabinet approval. We have circulated a note and are waiting for comments from the finance ministry," J S Deepak, additional secretary, ministry of commerce, told Business Standard on the sidelines of the India International Coffee Festival here on Friday.
He said the ministry had approved continuation of all major schemes such as the one on rejuvenation and replanting, mechanisation, export promotion and research and development (R&D).
"The major focus of the 12th plan would be on R&D. We have enhanced the allocation to R&D by 60 per cent to Rs 140 crore. There are no constraints on spending money here&D. Our thrust area is to find a solution for the White Stem Borer pest attack on Arabica gardens, which is destroying the crop in major growing regions and affecting productivity. We hope to find a solution during this plan period," he said.
Adding: "We have told the Coffee Board to bring the best minds in the scientific world to launch a combined effort to fight this pest and find a solution in the next few years. We want them to partner with the Indian Council of Agricultural Research and the horticulture research institute to find a solution."
He noted Coffee Research Institute scientists had found a solution for leaf rust disease.
Growers in Karnataka, where 72 per cent of India's output comes, had sought a subsidy package of Rs 300 crore from the central government for mechanisation during the 12th plan. During the 11th plan, the government had allocated Rs 50 crore in the fifth year, of which only Rs 22 crore was released to the beneficiaries.
It has approval from the planning commission for a 60 per cent increase in allocation to the sector over the 11th plan, at Rs 950 crore, a top ministry official said.
"The Expenditure Finance Commission has also given its approval for the detailed packages for several schemes. However, it requires cabinet approval. We have circulated a note and are waiting for comments from the finance ministry," J S Deepak, additional secretary, ministry of commerce, told Business Standard on the sidelines of the India International Coffee Festival here on Friday.
He said the ministry had approved continuation of all major schemes such as the one on rejuvenation and replanting, mechanisation, export promotion and research and development (R&D).
"The major focus of the 12th plan would be on R&D. We have enhanced the allocation to R&D by 60 per cent to Rs 140 crore. There are no constraints on spending money here&D. Our thrust area is to find a solution for the White Stem Borer pest attack on Arabica gardens, which is destroying the crop in major growing regions and affecting productivity. We hope to find a solution during this plan period," he said.
Adding: "We have told the Coffee Board to bring the best minds in the scientific world to launch a combined effort to fight this pest and find a solution in the next few years. We want them to partner with the Indian Council of Agricultural Research and the horticulture research institute to find a solution."
He noted Coffee Research Institute scientists had found a solution for leaf rust disease.
Growers in Karnataka, where 72 per cent of India's output comes, had sought a subsidy package of Rs 300 crore from the central government for mechanisation during the 12th plan. During the 11th plan, the government had allocated Rs 50 crore in the fifth year, of which only Rs 22 crore was released to the beneficiaries.
India seeks more Japanese investments: PM
New Delhi: The Prime Minister Manmohan Singh has sought increased Japanese investment in India even as both the countries have agreed to explore the idea of concrete cooperation in manufacturing and research and development in the electronic sector as well as in energy efficient and energy saving technologies.
"I believe there is enormous untapped potential in our business ties," Singh said after the annual summit level meeting between India and Japan adding that the presence of Japanese companies in India increased 16 per cent last year. The Japanese Prime Minister, Shinzo Abe, is currently in India for the annual summit meeting. Abe will also be the chief guest for the Republic Day celebrations to be held here on Sunday.
"Japan is at the heart of India's 'Look East Policy'. It is also a key partner in our economic development and in our quest for a peaceful, stable and prosperous Asia and the world. Anchored in our shared values and interests, the partnership between a strong and economically resurgent Japan and a transforming and rapidly growing India can be an effective force of good for the region," Prime Minister Singh said.
Commenting on the growing ties between the two countries, Singh said the bilateral maritime exercises have now been established on an annual basis and India has welcomed Japan's participation in the Malabar exercise this year.
"Our negotiations towards an Agreement for Cooperation in the Peaceful Uses of Nuclear Energy have gained momentum in the last few months. Our Joint Working Group on US-2 amphibian aircraft has met to explore the modalities of cooperation on its use and co-production in India," Singh said.
A joint statement issued after the talks, states that the two leaders welcomed the expansion of the bilateral currency swap arrangement to $50 billion from $15 billion and signing of the contract for its entry into force in January this year. The two Prime Ministers expressed their expectation that this expansion will further strengthen financial cooperation and contribute to the stability of global financial markets including emerging economies, the statement adds.
The two leaders also welcomed the signing of the Exchange of Notes for yen (¥) loan totalling ¥11.390 billion for the "Uttarakhand Forest Resource Management Project" which will help in the reconstruction efforts in the wake of devastating floods that hit the state in June last year, as well as the signing of the Exchange of Notes for grant aid totalling ¥1,495 billion for a "Project for Improvement of the Institute of Child Health and Hospital for Children" in Chennai.
Recognising the importance of development in the Chennai-Bengaluru areas, they underlined their commitment to enhancing cooperation between the two countries on the Chennai-Bengaluru Industrial Corridor (CBIC).
"I believe there is enormous untapped potential in our business ties," Singh said after the annual summit level meeting between India and Japan adding that the presence of Japanese companies in India increased 16 per cent last year. The Japanese Prime Minister, Shinzo Abe, is currently in India for the annual summit meeting. Abe will also be the chief guest for the Republic Day celebrations to be held here on Sunday.
"Japan is at the heart of India's 'Look East Policy'. It is also a key partner in our economic development and in our quest for a peaceful, stable and prosperous Asia and the world. Anchored in our shared values and interests, the partnership between a strong and economically resurgent Japan and a transforming and rapidly growing India can be an effective force of good for the region," Prime Minister Singh said.
Commenting on the growing ties between the two countries, Singh said the bilateral maritime exercises have now been established on an annual basis and India has welcomed Japan's participation in the Malabar exercise this year.
"Our negotiations towards an Agreement for Cooperation in the Peaceful Uses of Nuclear Energy have gained momentum in the last few months. Our Joint Working Group on US-2 amphibian aircraft has met to explore the modalities of cooperation on its use and co-production in India," Singh said.
A joint statement issued after the talks, states that the two leaders welcomed the expansion of the bilateral currency swap arrangement to $50 billion from $15 billion and signing of the contract for its entry into force in January this year. The two Prime Ministers expressed their expectation that this expansion will further strengthen financial cooperation and contribute to the stability of global financial markets including emerging economies, the statement adds.
The two leaders also welcomed the signing of the Exchange of Notes for yen (¥) loan totalling ¥11.390 billion for the "Uttarakhand Forest Resource Management Project" which will help in the reconstruction efforts in the wake of devastating floods that hit the state in June last year, as well as the signing of the Exchange of Notes for grant aid totalling ¥1,495 billion for a "Project for Improvement of the Institute of Child Health and Hospital for Children" in Chennai.
Recognising the importance of development in the Chennai-Bengaluru areas, they underlined their commitment to enhancing cooperation between the two countries on the Chennai-Bengaluru Industrial Corridor (CBIC).
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