Indian Foreign Affairs News & Discussions (non-US & Pakistan related

[SpArK]

India can handle capital inflows even up to $75 billion: Montek



Applying balm to the recently acquired wounds of Indian exporters, the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, who is spearheading the G20 negotiations for India, said here today that India can handle capital inflows even up to $55-75 billion this year without having to let the rupee appreciate.

“Capital inflows need not lead to appreciation necessarily,” he said, and explained that since India was looking to finance a current account deficit of 3 per cent, he was personally quite happy to let the exchange rate be.

“It would be a different matter if the surge was $100 billion,” he added. He also said that if “capital flows are excessive, we should learn to handle them.” But he, nevertheless, ruled out further appreciation.

China has announced that it will consider capital controls in view of the latest US fiscal stimulus of $600 billion to avoid destablising capital inflows. India was in no hurry to do the same, he indicated.

Asked what India has gained from the G20, he said that one of the biggest benefits was that in the IMF pecking order, India had moved up from the 22nd rank to the eighth rank. This indicated improved clout.

On what was going at the G20, he said the drafts were being readied. He declined to answer a question on what the major areas of disagreement were.

The G20 is now discussing how to take international policy co-ordination called the Mutual Assessment Process, to a higher plane. He said it was “not easy to coordinate policies” because of domestic political considerations which made it difficult to make any agreement binding. “There will not be any instantaneous results,” he said.

On the suggestion made by the US Treasury Secretary, Mr Tim Geithner, that everyone should agree to a 4 per cent cap on current account deficits or surpluses, he said there was no formal proposal to that effect and that the G20 was not discussing it.

Mr Ahluwalia commended the Korean Government for bringing development on to the G20 agenda so that the concerns of the developing countries were also taken into consideration. Until now, the G20 was only focused on the problems of the rich countries. He pointed out that this was the first time that a G20 meeting was being held in a non-G-7 country.

On China and its exchange rate policy, he said that “today the focus is on many things, not just exchange rates.”

Korean news sources, meanwhile, are saying that organised labour unions are planning a march against the G20 on Thursday. They expect about 10,000 people to join the march. Such protests have now become standard fare whenever a major international economic meeting is held.

The Hindu Business Line : India can handle capital inflows even up to $75 billion: Montek

 

[SpArK]

India tops world in remittance receipts​

T E Narasimhan | 2010-11-11 01:10:00


Remittances to developing countries are expected to reach $325 billion this year, up from $307 bn in 2009. The top recipient countries in 2010 are India, expected to receive $55 bn (Rs 2.44 lakh crore), followed by China ($51 bn).


Bangladesh to India is one of the four largest migration corridors in the world this year.

According to the migration and remittances unit of the World Bank, remittance flows to India grew robustly in the last quarter of 2009 and in the first quarter of 2010, but appear to have leveled off in the second quarter.

With a recovery in global demand, remittance flows to the East Asia and Pacific region are expected to grow 7.2 per cent and 8.5 per cent in 2011 and 2012, respectively, to $106 bn in 2012, according to the unit. It has released the Migration and Remittances Factbook 2011, which says worldwide, remittance flows are expected to reach $440 bn by the end of this year.

Hardy, too
The $307-bn of remittance flows to developing countries last year saw a 5.5 per cent decline from the previous one due to the global financial crisis. This compares with a 40 per cent decline in foreign direct investment (FDI) between 2008 and 2009 and an 80 per cent decline in private debt and portfolio equity flows from their peak in 2007.

"Recorded remittance flows to developing countries are estimated to have fully recovered to the pre-crisis level of $325 bn in 2010. In line with the World Bank’s outlook for the global economy, remittance flows to developing countries are expected to increase by 6.2 per cent in 2011 and 8.1 per cent in 2012, to reach $346 bn in 2011 and $374 bn in 2012, respectively.

The top remittance sending countries in 2009 were the US, Saudi Arabia, Switzerland, Russia, and Germany. Top recipient countries in 2010 are India, China, Mexico, the Philippines, and France.

Remittances amounted to 1.9 per cent of gross domestic product (GDP) of all developing countries in 2009, but were nearly three times as important (5.4 per cent of GDP) for the group of low-income countries. In some countries, it is more than 25 per cent.

The World Bank estimates around 200 million people live outside their countries of birth. Income differentials, as well as political and demographic forces, have the strongest effect on migration patterns.

Lifeline issues
"Remittances in 2008 and 2009 became even more of a lifeline to poor countries, given the massive decline in private capital flows sparked by the crisis," said Dilip Ratha, manager of the Bank’s migration and remittance unit.

"However, high unemployment is prompting many migrant-receiving countries to tighten immigration quotas, which will probably slow the growth of remittance flows. Also, uncertain currency movements can have unpredictable effects on remittance flows," Ratha added.

In addition to crisis-related risks, there are major structural and regulatory changes in the global remittance market. Regulations to combat financial crime have become a roadblock to the adoption of new mobile money transfer technologies for cross-border remittances.

"There is urgent need to reassess regulations for remittances through mobile phones and mitigate the operational risks," Ratha said.

The report says the top migrant destination country is the United States, followed by Russia, Germany, Saudi Arabia, and Canada. The top immigration countries, relative to population — the percentages here show the percentage of residents who hail from elsewhere — are Qatar (87), Monaco (72), the United Arab Emirates (70, Kuwait (69) and Andorra (64).

Mexico to the United States is expected to be the largest migration corridor in the world this year, followed by Russia–Ukraine, Ukraine–Russia and Bangladesh–India.

According to the 2001 census, there are close to three million Bangladeshi nationals in India, but Ratha believes the actual number could be over 12 million now, according to other reports.

 

[SpArK]

India proposes inscription of 39 sites in World Heritage List

PTI

India has submitted a proposal to UNESCO World Heritage Centre for inscription of 39 serial sites in Western Ghats on its World Heritage List, the Government said in Lok Sabha on Wednesday.

“These sites are in the States of Kerala, Karnataka, Tamil Nadu and Maharashtra. The Kass Plateau in Maharashtra is one among the 39 serial sites included in India’s proposal,” Minister of State for Parliamentary Affairs V. Narayanasami said in a written reply.

He said a two-member technical team from International Union for Conservation of Nature (IUCN), Switzerland, was in India last month to conduct field evaluation of the proposed sites including Kass Plateau.

“The report of the team will be submitted to UNESCO, Paris and based on the additional information/clarifications, if any on India’s proposal may be required in near future,” Mr. Narayanasami said.

All proposals for natural heritage submitted by the State parties are evaluated by the World Heritage Centre, Paris and the IUCN.

The Minister also said the government and UNESCO have not given any funds to preserve the wild flowers in Kass Plateau.

 

[SpArK]

Malawi seeks Indian help in 'greenbelt initiative'​

Inspired by India’s “Green Revolution”, Malawi has sought Indian assistance in its “Greenbelt initiative” aimed at raising agricultural output. The southeast African nation is looking to India to tap its huge uranium deposits.

Malawi is also negotiating to sign Double Taxation as well as Investment Promotion and Protection agreements with India.

“Our main aim is to get India’s participation in our Greenbelt initiative to increase our farming capacity,” visiting Malawian Trade and Industry Minister Eunice Kazembe told IANS in an interview.

Malawi, a country of 14 million people, one of the world’s most densely populated nations, is mainly dependent on rain-fed agriculture but the recent climatic changes has affected its production. The “Greenbelt initiative” has been brought about by the Malawian government to counter climatic unpredictability.

“Our president decided to change Malawi into an irrigated agriculture and therefore we came to India bearing in mind that India underwent a green revolution years ago and that you have built and managed huge irrigation facilities, technologies, tools etc so we like to tap from this knowledge and skill base,” Kazembe said.

Describing the Greenbelt initiative as a multi-faceted project and inviting Indian investors in it, she said: “I am very sure that a month from now there will be investments in many areas and not just in agriculture like irrigation, farming technologies, but in transportation, logistics, agro-processing units, tourism etc.”

India and US joint projects discussed during US President Obama’s visit also sees great agricultural opportunities in Sub—Saharan Africa.

Addressing the media Monday after his meeting with Prime Minister Manmohan Singh, Obama said India and US will launch new initiatives that will mutually benefit both the countries through joint projects in regions like Africa.

“Building on Indian and American agriculture collaboration, like that of the Green Revolution, we are launching a new partnership for an Evergreen Revolution that improves food security around the world,” he said Monday addressing the media.

Also speaking at the venue, Prime Minister Singh said: “We have agreed to broaden our strategic dialogues to cover other regions and areas and initiate joint projects in Africa and Afghanistan.”

Kazembe said Malawi is currently discussing Investment Promotion and Protection Agreement and Double Taxation Agreement with India and that “these are two instruments that are crucial to investors for investment in Malawi”.

Kazembe was here as part of the Malawian President Bingu Wa Mutharika’s delegation on a five-day trip which left for home Nov 6. The delegation invited the Indian business community to invest in sectors like energy, health and education apart from its Greenbelt initiative.

Kazembe said: “We are here to solicit investment from India to Malawi bearing in mind that India now is one of the most significant economic powers in the world.”

Kazembe said Malawi has discovered huge deposits of uranium and wants to work with India to explore more uranium sites.

She said: “We are still negotiating uranium exploration with India. These things tend to have a significant lead time because we are talking about minerals so there are many areas that has to be looked into.”

Kazembe also said that India and Malawi will exceed the two-way trade target of $300 million within three years. India—Malawi bilateral trade at present is $185 million.

“We are absolutely sure that we’ll exceed the target for a number of reasons like Malawi has exported for many years to India different types of grains. I am pleased to note that India has invited us to clinch a long term contract with its government agency.

“On the Indian side we buy equipment for SME. There was an announcement of an SME incubator by India. So in two years we will be talking about a lot more than $300 million,” she said.

On a lighter note Kazembe said she enjoyed her stay in India particularly Indian President Pratibha Patil’s banquet to the visiting delegation.

“I congratulate India for having a female president. It is very refreshing. There aren’t many female presidents in the world so to be one among the few it is very refreshing.

“The dinner was sumptuous and the ambience of the place was so very nice, flowers, decor, all so good. We enjoyed ourselves,” she said.


The Hindu : Sci-Tech / Agriculture : Malawi seeks Indian help in 'greenbelt initiative'

 

[SpArK]

India, Bangladesh border talks begin​

NEW DELHI: India and Bangladesh held their first boundary talks after five years on Wednesday, restarting a process that now enjoys strong political support in both countries.

The talks come on the eve of Bangladeshi foreign minister Dipu Moni's first diplomatic visit to Tripura on Thursday. The visit is significant because this signals an important shift in Indian policy -- that the development and security of the north-eastern states is intimately connected to the growth and development in Bangladesh and Myanmar.

Tripura had asked for a visit by Moni -- a number of India-Bangladesh initatives will be in Tripura and will jointly benefit the north-eastern states and Bangladesh. India has agreed to build a bridge on the Feni river connecting Sabroom in India with Ramgarh in Bangladesh.

An agreement between the two countries last year said Bangladesh would provide access to Ashuganj Port to facilitate transportation of over-dimensional consignments for the Palatana power project in Tripura. India has also agreed to build the Akhaura-Agartala railway link.

In nearby Myanmar, India is under no illusions that Sunday's elections in the country were neither free nor fair. The army-backed party won 80% of the seats. While India has not officially commented on the elections, the general approach here is that the polls were a step forward.

The transition from the military junta's rule to a democracy is not going to be easy. But as long as the process takes hold in Myanmar, India views it as a positive outcome. Unlike many other countries, India also appreciates the difficulties Myanmar has in holding elections in areas controlled by the Karen rebels.

But this is all part of the "engage east" policy that India was asked to follow by US President Barack Obama. "When we look east, what's the first country we see," asked sources.

Read more: India, Bangladesh border talks begin - The Times of India India, Bangladesh border talks begin - The Times of India

 

[SpArK]

India will lead South Asian growth: Singapore Dy PM​

SINGAPORE: Singapore Deputy Prime Minister Teo Chee Hean today said India will be in a good position to be a major growth engine for Asia, lifting and energising its neighbours along with it.

Sounding cautious about India's tense relationship with Pakistan, Teo said: "India, as the largest South Asian country, plays a significant role in shaping the destiny of South Asia.

A rising economic and geopolitical powerhouse, India generates more than 80 per cent of the region's Gross Domestic Product," added Teo, who is also Singapore's Defence Minister.

He noted that India has made impressive advances in the economic realm -- its IT and services sectors are world-renowned.

He also noted the Indian government's continuing push to undertake the difficult reforms to sustain growth. Teo was addressing the sixth International Conference on South Asia, organised by Singapore's Institute of South Asian Studies .

Touching on some challenging environment in South Asia, he noted that both India and Pakistan know they need to keep their often tense relations from boiling over.

Addressing the conference on the region's challenges and prospects, Teo said Sri Lanka and Bangladesh also have the potential to do well.

Sri Lanka has emerged from a decades-long civil war, and is enjoying an economic revival, while Bangladesh is another South Asian country that has made steady economic improvement.

"Pakistan shares the potential of its neighbours even though it faces challenges posed by extremist violence," added Teo.

But he stressed that Pakistan would remain an important front for overcoming the global threat by extremist terrorism.

Teo said greater regional cooperation would contribute to both - providing South Asian countries with a means of overcoming transnational challenges such as the threat of terrorism, criminal activity or climate change, and also for jointly exploiting their potential in trade and development.


India will lead South Asian growth: Singapore Dy PM - The Economic Times

 

[RPK]

Sri Lanka : India steps up assistance for Sri Lanka\'s hill country people

Nov 09, Colombo: India has stepped up its assistance for the people in Sri Lanka's central hill country where most of the Indian origin Tamils live, the Indian High Commission in Colombo announced.

During a two-day visit on November 7-8 to the Central and Uva Provinces, India's High Commissioner Ashok K. Kantha attended public functions at Talawakelle, Nuwara Eliya, Badulla and Passara.

At these functions he handed over a number of buses donated by his government as part of a project of supplying 55 buses to assist social, cultural, and educational institutions in Sri Lanka at a total cost of rupees 92.95 million, a press release from the Indian High Commission said.

According to the statement 20 of these buses were donated to M/s Annai Kothai Entrepreneur Co. Ltd to develop transport infrastructure for estate workers living in remote areas in the Plantation sector. A similar number of buses had also been provided last year to this company for this purpose.

During his visit, the High Commissioner announced to the local community that India is stepping up its assistance for the upcountry people.

Under the four-fold initiative Indian government will first construct 5,000 new housing units for estate workers as part of the larger commitment for construction of 50,000 houses.

Mr. Kantha said plans are afoot to construct a 150-bed hospital in Dickoya within the next few weeks to improve the medical infrastructure in the area.

The Indian government also plans to substantially increase the number of scholarships for children of estate workers and revamp a Vocational Training Centre in Nuwara Eliya, he said adding that the final aim is to improve the connectivity in the region by providing buses for better transportation.

The High Commissioner also has called on the Governor of Uva Province, C. Nanda Mathew. During the meeting, various proposals to channelize Indian assistance towards development of tourism, education, and agriculture sectors in the Province were discussed, the release said.

 

[SpArK]

Marriott to expand portfolio in India to 100 hotels​

12:00am GMT+0530
MUMBAI | Thu Nov 11, 2010 12:43am EST

Nov 11 (Reuters) - Marriott International Inc (MAR.N), the largest U.S. hotel chain, aims to expand its India hotels portfolio to 100 hotels over five years, from 11 properties now, the company said in a statement on Wednesday.

Marriott, which will add seven brands across India including Ritz Carlton and Fairfield Inn, said the expansion will create over 8,000 new jobs in India in the next three years.

 

[CONNAN]

Rohtak student designs new logo for CAG

Rohtak student designs new logo for CAG: India : India Today

The Comptroller and Auditor General (CAG) of India confirmed on Wednesday that it had handed over the report on the telecom ministry's alleged arbitrary allocation of 2G spectrum to the government.

"We have submitted the final report to the government. I cannot disclose its findings. The government will decide when to tabled it in Parliament ... It could be within a fortnight or may take longer," Comptroller and Auditor General Vinod Rai said after unveiling a new logo to commemorate 150 years of the CAG. A CAG official said a copy of the report had been sent to the Union finance ministry and the President. Once the report goes through the mandatory processes, which would take 10-15 days, it would be tabled during the ongoing month-long winter session of Parliament.

BTech student Shivan Dua shows the new CAG logo.
Meanwhile, the CAG chose a new circular-shaped logo, which has been designed by BTech student Shivam Dua. It was shortlisted from 142 entries that came through open competition.

"Dua of Rohtak, whose design was selected by a panel comprising senior officials, got a cash prize of Rs 1 lakh," Deputy CAG Narendra Singh said at the function held in the new building of the audit body.

The logo has an emblem on its upper half and a balance hanging over an open book apart from the Indian Audit and Accounts Service inscription.

Rai advised his colleagues to maintain credibility at all costs.

"We need to zealously guard our independence and credibility, which we have done for the past 150 years. We have to ensure that history does not question any glitches we might leave in our audits." Replying to a question on the Adarsh housing scam, Rai said: "We will shortly take a view on probing the alleged irregularities in the defence real estate in Mumbai."

It is learnt that the CAG is looking into larger defence real estate issues of Mumbai and the Adarsh society would be one of them. The housing society, originally meant to be a six-storey structure for Kargil war heroes and widows, got converted into a 31-storey tower through the alleged collusion of bureaucrats, politicians and top defence officers, who now own flats there.

 

[RPK]

The Hindu : News / National : India to build 1,000 houses for Tamils in Sri Lanka

External Affairs Minister S.M. Krishna has said a pilot project to construct 1,000 houses for Internally Displaced Persons (IDPs), ie. Tamils, in northern and eastern Sri Lanka will begin soon.

In a letter to Communist Party of India MP from Tamil Nadu P. Lingam, he said the construction of the dwelling units was part of India's commitment to build 50,000 houses for the IDPs. Besides, to revive the agricultural activities in northern Sri Lanka, India was procuring 500 tractors and other agricultural implements to be distributed among IDPs, and also dispatching seeds for the “Maha” season.

“You may rest assured that the Centre is continuing to monitor the situation to assist in the welfare and rehabilitation of the IDPs and to assist in the reconstruction of northern and eastern Sri Lanka,” he said.

Besides assisting the island government in the welfare of the IDPs — providing Rs. 500 crore, setting up an Indian emergency field hospital, sending de-mining teams, supplying 7,800 tonnes of shelter and roofing material and 70,000 agricultural starter-packs and gifting 4 lakh cement bags — India was also assisting it in railway infrastructure projects, KKS harbour rehabilitation, setting up vocational training centres and development of civil infrastructure.

 

[SpArK]

Australia welcomes Obama's support for India's quest for UNSC

NEW DELHI: Australia, a long-time supporter of India's permanent membership of the expanded UN Security Council, on Friday welcomed US President Barack Obama's backing for New Delhi, saying it was "delighted" at the development.

"Australia has supported India for a permanent seat in the Security Council for many years now. So, we're delighted that other countries are also beginning to do that," Australian High Commissioner Peter Varghese said.

Varghese, while speaking on the sidelines of a function here, was responding when asked to comment on Obama's promise of support to India's quest for permanent seat of the Security Council.

Australia has been for long supporting India's candidature for permanent membership of the UNSC, saying it has credentials for the same.

At the function, the high commissioner donated Rs two lakh on behalf of the Australian contingent that participated in the Commonwealth Games to an NGO 'Asha' which helps in the education of slum children.

"This contribution was not the idea of Australian government, was not even the idea of the Commonwealth team's management. It was very much the idea of the individual athletes who came to India for the Games and they wanted to leave India by making a small contribution to the country," Varghese said.

He said, "The purpose of today was really to acknowledge the wonderful achievement that Asha has succeeded in doing by bringing 170 slum kids to high quality tertiary institutes...the collection that our team made, they wanted it to go to a non-government organization that was doing good work in the slums."

Read more: Australia welcomes Obama's support for India's quest for UNSC - The Times of India Australia welcomes Obama's support for India's quest for UNSC - The Times of India

 

[SpArK]

G 20 Approval Puts India on Eighth Place in IMF Board



New Delhi (ABC Live): The proposed IMF’s quota reforms by G-20 countries will place India on eighth place in the Board of the International Monetary Fund (IMF).

Information to this effect was made by India’s planning commission deputy chairman Montek Singh Ahluwalia before the G-20 summit that, "India will move to the eighth position in the IMF Board from its present 22nd position. We will get much more in the quota share once the G-20 leaders take a political decision to approve what has been decided by the IMF on quota increase in 2008."

It is to mention that the decision to this effect was taken by the IMF in 2008 but G-20 finance ministers approved these in October in South Korea and has added significantly to its merit and the decision at the highest political level in the G-20 will amount to a "seal of approval" that can be implemented thereon Ahluwalia said the IMF reforms of 6% shift in quota have helped India and China to some extent.

With eighth largest quota India gets much more in the quota share and China is the third largest beneficiary after India.

The IMF Board has 20 members and the decision has been approved by a number of countries. About 15 more, however, have to approve it.

 

[SpArK]

Canada, India begin free trade talks​

Indian Prime Minister Dr. Manmohan Singh met with Canadian Prime Minister Stephen Harper in June. (Dave Chidley/Canadian Press)
Canada and India have entered formal discussions for a comprehensive free trade pact.

In Seoul, South Korea, for the G20 summit, Prime Minister Stephen Harper announced that negotiations for an agreement that could be worth as much as $6 billion a year to both countries has begun.

"Our government is committed to opening new markets for Canadian goods and services," Harper said in a statement. "Today, I am pleased to announce that we have taken another step on that path by launching trade negotiations with India."

The two countries have flirted with a trade tie-up for years, before stepping up efforts of late.

In recent months, Canada has been active in trade negotiations, as it seeks to diversify away from the increasingly wobbly U.S. economy. Negotiators are in the midst of a trade pact with the European Union that they hope to complete next year.

As it stands, trade between Canada and India is fairly low, but India is one of the world's largest and fastest growing economies.

Canada's free trade history with Asia has been rocky. Free trade talks with South Korea have quietly died because of irreconcilable differences over cars and Canadian beef. Talks announced years ago with Singapore have gone nowhere.​

Read more: CBC News - Money - Canada, India begin free trade talks

 

[SpArK]

India, UK trade could touch $24 bn by 2015: Survey​

NEW DELHI: India and the UK can more than double their bilateral commerce to USD 24 billion in the next five years by increasing trade and investment cooperation in sectors like energy, sciences and IT, a Ficci-Grant Thornton survey said today.

"In 2009-10, the trade was valued at USD 10.6 billion. India seeks to double its bilateral trade with UK to USD 24 billion in the next five years, an ambitious but achievable target," it said.

With some big ticket acquisitions, India is now a major investor in the UK.

"The UK being the world's sixth largest manufacturer, a hub for science and innovation and gateway to EU, will continue to remain an attractive place to do business for Indian companies," it added.

Indian companies already provide employment to 90,000 people in the UK. The Tata Group is the largest manufacturing employer there and more than 180 Indian companies have invested in the IT sector, it said.

Based on the views of top-level executives on various economic and business related issues, the survey noted that the two-way trade and investment can receive a major fillip if the challenges faced by India and British companies in doing business in each other countries are expeditiously addressed.

"Some of the issues that have a bearing on investment decisions of companies relate to government regulations, state and local approvals, effect of taxation, IPR protection, ease of raising finances and ease of inflow of capital," it said.

Some of the issues raised by Indian companies in the UK relate to government regulations and support measures, ease of obtaining business visas, the rates of corporate and personal taxes and labour costs.

With its growing energy and infrastructural requirements in urban as well as rural areas, India offers huge opportunities to British companies.

On the other hand, Britain offers Indian automobile industry opportunity for acquisition and gaining access to EU market.


India, UK trade could touch $24 bn by 2015: Survey - The Economic Times

 

[SpArK]

Govt of India donates 500 Mahindra tractors to Government of Sri Lanka​

November 16, 2010, 19:06 IST
Mr. Basil Rajapaksha, Minister of Economic development, Sri Lanka tries his hand at the wheel of a Mahindra tractor

The Government of India recently donated 500 Mahindra tractors to the Government of Sri Lanka to help the rural population in North Sri Lanka. M/s DIMO, the Mahindra dealer in Sri Lanka, was awarded the contract for supply of these tractors.


The first batch of 52 tractors out of the total order of 500 was handed over by HE, Mr. Ashok K. Kantha, the High Commissioner of India in Colombo to Mr. Basil Rajapaksha, Minister of Economic development, Sri Lanka. The ceremony was attended by Hon. Rishad Bathiyudeen, Minister of Industry and Commerce, Hon. Dogulas Devananda, Minister of Traditional Industries and Small Enterprises Development and Major General (Retd.) G. A. Chandrasiri, Governor of Northern Province. All the tractors come with a complete set of farm implements, namely, 9 Tine Tiller, Rotovator, two furrow Disc Plough and cage wheel.
“We are delighted that the Government of India has chosen to donate Mahindra tractors to the Government of Sri Lanka. The Mahindra Group has a long and enduring association with Sri Lanka which is an important market for us and this is our way of helping in the nation building process,” said Mr. P. N. Shah, Chief Executive, International Operations, Automotive and Farm Sector.

Mahindra has already established a base for itself in Sri Lanka where it has been selling its range of tractors and utility vehicles for over a decade. The Group now plans to further consolidate its presence by foraying into the hospitality and finance sectors.

Mahindra tractor models 575 DI and the 605 are very popular in Sri Lanka. Future plans include a focus on expanding the range, offering agricultural implements along with tractors and increasing the service network to serve customers better.

About The Mahindra Group
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA

Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.


Govt of India donates 500 Mahindra tractors to Government of Sri Lanka