RUSSIA INDIA
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RUSSIA INDIA
www.rus-ind.com RUSSIA & INDIA 4-2012 RUSSIA &I N D I A Partnership for the Future The special edition of Business Council for Cooperation with India №4 2012 FROM SUMMIT TO SUMMIT Russian-Indian privileged partnership in action EFFECTIVE LEADERSHIP President Vladimir Putin to present Russia at the 16th Petersburg International Economic Forum BRICS: THE POLE OF NON-WESTERN WORLD Moscow and New Delhi are building new geo-economics AGNI-V IN SPACE: NORMAL FLIGHT India joins Global Missile Club KUDANKULAM NPP: STEEPLECHASE The protests against the key project of Russian nuclear engineers instigated from abroad …also in this edition: THE BANGALORE WONDER. A REPORT FROM THE INDIAN SILICON VALLEY • DOWNSHIFTERS IN THE LAND OF MAHABHARATA. WHY RUSSIANS LEAVE FOR INDIA • CRICKET IN NEW FIELDS. A CULT INDIAN GAME IN RUSSIA • CINEMA. RUSSIAN ACTOR STARRED AS RAJ KAPOOR • POLITICS & DIPLOMACY FIRST PERSON ДЕЛОВОЙ СОВЕТ ПО СОТРУДНИЧЕСТВУ С ИНДИЕЙ USINESS COUNCIL OR COOPERATION WITH INDIA Mr. Sergey Cheremin is a Chairman of the Board of the Business Council I Dear Friends! am sincerely happy that you are holding in your hands a new issue of the Russian-Indian Business Council’s Magazine “Russia & India: Partnership for the Future” on the days of the 16th Petersburg International Economic Forum. Our project recently marked the first anniversary since the date of official registration in May 2011. The pilot issue came out in the autumn of 2010. As we had planned, the magazine became a weighty word in the development of Russian-Indian partnership and a floor for direct dialogue between business people of our countries. It contributes to the exchange of current analytical information and innovative ideas. This year, the city on the Neva hosts the forum under the slogan “Effective Partnership.” St Petersburg awaits the world’s leading politicians, business persons and experts. The forum traditionally includes Russian-Indian business dialogue. We expect the partners from the two countries to discuss the issues of economic, scientific and high-tech cooperation, as well as the integration of Russian and Indian business communities. It is absolutely topical for both states which pursue the policy of economic modernization and follow long-term development strategies. In March 2012, the BRICS (Brazil, Russia, India, China and South Africa) member-states held a summit in New Delhi and the 2nd Business Forum took place on its sidelines. A business mission of Russian innovative companies recently visited the Indian capital. The Business Council for Cooperation (DSSI) with India and the Associated Chambers of Commerce and Industry (ASSOCHAM) met in a joint session. This substantial dialogue proved very effective: several new cooperation guidelines were proposed in New Delhi, and the DSSI and ASSOCHAM signed a cooperation agreement. I would like to express the hope that the positive impulses from New Delhi will reach St Petersburg and that joint work will continue. I also hope that aside from the themes announced on the magazine cover, the readers will find much useful and interesting information in the current issue. RUSSIA&INDIA 4-2012 1 Contens POLITICS & DIPLOMACY 4 ECONOMY & BUSINESS Chronicle of scientific and technical communications 4 Propitious Climate of Bangalore 52 Successful Meetings 6 Women’s best friends 56 The Precious Attraction of India 58 The Bricks of a New World Order 10 BRICS Business Forum 14 “We need to create greater investment opportunities…” 16 ECONOMY & BUSINESS 20 44 2 RUSSIA&INDIA 4-2012 Sikhs, the disciples of chieftains and wise men 61 Mumbai is the “Gateway of India” 64 AYURVEDA: old is gold 68 Kudankulam Passions 20 Krishna Followers in Russia 72 Agni-V poised for launch 23 Russian actor to play the role of Raj Kapoor 74 Russia–India: Submarines to choose 24 Journey Beyond Three Seas 76 Non-system approach 28 Lost Illusions 78 India arms itself with new helicopters 32 Downshifters choose hospitality 82 Living with the Bat 88 India is exploring outer space. In creating your own, 34 58 CULTURE 68 SPORT don’t be shy to borrow from others 34 Nano Breakthrough in Russian¬Indian Cooperation 38 SPLAT: innovations for beauty and health 40 Russian Technologies for Indian Programmers 42 Charming Indian Auto 44 Tata Dynasty’s Empire 48 20TH CENTURY Svetlana Alliluyeva: Romance with India 92 88 82 92 RUSSIA&INDIA 4-2012 3 POLITICS & DIPLOMACY CHRONICLE OF EVENTS POLITICS & DIPLOMACY CHRONICLE OF EVENTS Chronicle of scientific and technical communications or offering technology, the IndoRussian Science and Technology Centre can network him or her with partners in either country. RISTC delegation in New Delhi From 25 to 30 March 2012 a delegation of the Russian-Indian Scientific and Technological Center (RISTC) visited New Delhi to participate in the Russian business mission to India and 4 Business Forum of the BRICS. RISTC was represented at the Forum by the Director-General of the Centre S.Y.Sukonkin and Deputy Director-General of L. I. Kornauchova. During the sessions of the Forum discussions were held on such issues as improving financial relationships of the BRICS countries, cooperation in energy security, the role of information technology and innovation, the means to improve the business partnership between the BRICS countries. As part of the Russian business mission a database on a companies – technological leaders in 4 RUSSIA&INDIA 4-2012 India was prepared, new business contacts were established, and further prospects of cooperation with Indian partners were discussed. The Agreement on cooperation between Russian-Indian Business Council and the Association of Chambers of Commerce of India was signed. The RISTC delegation accompanied by the Deputy Trade Representative of Russia in New Delhi Mr. Sergei Sizov held talks with Indian company Sanshadow Consultants Pvt. Ltd. During the talks the areas of possible cooperation were discussed, and following the discussions an agreement on cooperation between RISTC and Sanshadow was signed. Delhi Unit inauguration Delhi NCR branch of the IndoRussian Science and Technology Centre (IRSTC) has been inaugu- rated on April 25, 2012 at Gurgaon, Delhi NCR by Dr T. Ramasami, Secretary, Department of Science & Technology, Government of India, and Academician A.O. Gliko, Director General, RAS Institute of Physics of the Earth, who are also the Co-Chairs of the Joint Council of the Integrated Long Term Program – the flagship of the IndoRussian S&T cooperation program. Moscow branch of the IndoRussian Science and Technology Centre was inaugurated during the Summit level meeting in Moscow in December 2011. Now the two branch offices will work in tandem to facilitate and promote transfer and commercialization of innovative technologies developed jointly or independently by Indian and Russian scientists. If an Indian or Russian business person or entrepreneur has a proposal for technology partnership and its commercialization, whether seeking Tatarstan-India: fruitful cooperation In April 2012 Reliance Industries Limited (RIL) and Tatarstan have agreed to set up a joint working group of specialists to develop strategic partnership in petrochemical and oil refining sectors, especially in crude oil refining. India’s imports from Tatarstan already include synthetic rubber, trucks and helicopters, instrument-making products. Tatarstan’s imports consist mainly of medical products, food, raw materials and equipment for the foodprocessing industry. There are also plans to promote cooperation in culture, education, research, sports and tourism. FGFA: facing delay but worth waiting The Ministry of Defence of India has announced a two-year delay in the joint Indo-Russian project, Fifth Generation Fighter Aircraft (FGFA). But still Indian designers remain optimistic saying that the FGFA project would provide invaluable experience in testing and certifying a heavy fighter aircraft that is bigger and more complex than the Tejas light combat aircraft (LCA), India’s foundational aerospace achievement. In January 2010, Russian company Sukhoi test-flew a prototype called the PAK-FA, the acronym for Perspektivnyi Aviatsionnyi Kompleks Frontovoi Aviatsy (literally prospective aircraft complex of frontline aviation). Now, Hindustan Aeronautics Limited (HAL) will partner Sukhoi to transform the bare-bones PAKFA into an FGFA that meets the Indian Air Force (IAF)’s requirements of stealth (near-invisibility to radar), super-cruise (supersonic cruising speed), networking (real-time digital links with other battlefield systems) and worldbeating airborne radar that outranges enemy fighters. The IAF clearly wants a topof-the-line FGFA. According to Ashok Nayak, who spoke to Business Standard as HAL’s chairman before retiring last October, the IAF has specified 40-45 improvements that must be made to the PAK-FA. These have been formalised into an agreed list between Russia and India, the Tactical Technical Assignment. “Our boys will learn the Russian language, their way of working, their design rules and their design norms,” says Nayak. But the most valuable learning, say HAL executives, would take place during the FGFA’s flighttesting. “Unlike the basic design phase which we missed out on, we will actually gain experience during flight testing. This phase throws up dozens of problems, and we will participate in resolving these, including through design changes,” says N.C. Agarwal, HAL’s design chief. Despite the continuing imponderables, HAL believes the FGFA project provides genuine technological skills, far more useful than licensed manufacture. Agarwal says, “We will pay some $6-7 billion to France for the license to build the Rafale in HAL. In the FGFA project, a similar sum would bring in genuine design knowledge that will help us in the future.” RUSSIA&INDIA 4-2012 5 POLITICS & DIPLOMACY CHRONICLE OF EVENTS Successful Meetings In June 2012, St Petersburg is hosting the 16th international economic forum (SPIEF), the key floor in Russia to discuss macroeconomic issues at top-level. Although the forum has become a routine annual event for Russia’s second largest city, like the Hermitage or Victory Parade, it is difficult to overestimate its significant in the stability and prosperity of the region. 6 RUSSIA&INDIA 4-2012 POLITICS & DIPLOMACY Forum helps you It all began under the aegis of the CIS parliamentary assembly and with the support of the Russian government in June 1997. Nobody could imagine then that more than 1,500 persons from 50 countries all over the world would attend the forum. The key result was the signing of the 500-billion-rouble loan agreements between the governments of Russia and Belarus. The next year, there were 2,600 participants in the forum, including top officials from the CIS, the Council of Europe, the UN and UNESCO. An accord was reached on 700 investment projects, but a default occurred two months later, and few believed that someone would take an interest in Russia in 1999. However, 2,000 business people who gathered in St Petersburg a year after the default gave a signal of confidence to ordinary Russians: CHRONICLE OF EVENTS “a crisis is double-sided, and recession is inevitably followed by an improvement in competitive environment and a new upturn.” The 7th Petersburg Economic Forum that took place in the year of the 300th anniversary of St Petersburg became a veritable breakthrough. It was attended by President of the European Bank for Reconstruction and Development (EBRD) Jean Lemierre, Secretary General of the Organization for Economic Cooperation and Development (OECD) Donald Johnston, and Chairman of the Latin American parliament Ney Lopez. The forum inaugurated the first serious discussion over Eurasia’s socio-economic strategy in the 21st century, while RussianIndian “round-table” meetings were the most interesting forum events. Many think that it was after the Petersburg consultations that the group of leading develop- ing nations BRIC (Brazil, Russia, India, China) ceased to be just an acronym for economic analysts and began to turn into a leading political force in the world. In 2004, the number of participants in the St Petersburg Economic Forum exceeded 3,000 for the first time, and UN Secretary General Kofi Annan delivered an address to the participants together with Russian President Vladimir Putin. The largest developing countries were in the focus at the jubilee 10th forum. At the new LenExpo exhibition complex, built specially for high-level forums, India’s Minister of Commerce and Industry Kamal Nath and Russian First Deputy Prime Minister Sergei Ivanov met to ease the tensions over arms supplies and renew long-term contracts. In 2007, the forum launched cooperation with the World Economic Forum in Davos. The RUSSIA&INDIA 4-2012 7 POLITICS & DIPLOMACY CHRONICLE OF EVENTS Petersburg forum’s higher status sealed the memorandum of mutual understanding between the Russian Ministry of Economic Development and Trade and the World Economic Forum. More than 8,000 persons from 76 countries took part in the official program of the forum. Among the guests were the heads of nine foreign states and three prime ministers. Thirteen ceremonies to sign agreements worth a total of 13.5 billion dollars took place under the SPIEF aegis. One day was devoted to an analysis of the Russian economy and the prospects for its entering the group of the world’s largest economies by 2020. In the post-crisis 2010, the aggregate sum of contracts signed at the forum exceeded 15 billion dollars. SPIEF 2012 is expected to be quite imposing: it will be attended by Vladimir Putin, Dmitry Medvedev and all the economic ministers of the new Russian government, as well as the heads of all BRICS development institutions. Nuclear power generation will top the agenda, and again, the Russian-Indian dialogue is expected to be as significant as before. The Indian authorities stake on nuclear power plants, and Russia is a natural, experienced and efficient partner in this area. Natural relations The Bhopal tragedy in 1984 which claimed 18,000 lives held back the development of India’s nuclear power engineering for a long time. Although it occurred at a chemical plant which had nothing to do with nuclear power generation, the speculations about possible nuclear power plant accidents frustrated many an energy program. India has some 6 billion barrels of proven oil reserves. This will only last it for 20 years if it maintains the present-day production level at some 800,000 barrels a day. But the demand for electricity is growing, the price of imported oil is increasing, and domestic coal companies do not produce enough. The first NPP in Tarapur 8 RUSSIA&INDIA 4-2012 was launched in 1969 with U.S. assistance, but the USA later began to delay uranium supplies. In 1982, India signed contracts with France to build new NPPs. But it still badly needed foreign specialists. Russia is building two VVER1000 reactors at the Kudankulam NPP in Tamil Nadu. There are many advance technological solutions in the project; India insisted on carrying out construction and assembly works on its own. Since it has no experience in building NPPs with light water reactors, the commissioning date was postponed several times. The latest date was end of May 2012, so it is possible they will cut the ribbon on the NPP just before the opening of the forum, which will give a new impulse to top-level talks. Anyway, the possibility to upgrade the NPP to eight nuclear reactors has already been discussed. Russian-Indian accords reached at the 2011 forum will certainly make headway. At that time, Deputy Prime Minister Sergei Ivanov noted that India took a special place among Moscow’s partners because machinebuilding products made up almost half of Russian exports to the banks of the Ganges, while oil and gas only accounted for 5 percent. According to President of the Confederation of Indian Industry Balasubramaniam Muthuraman, Indian-Russian trade POLITICS & DIPLOMACY reached 8.5 billion dollars a year. Moscow and New Delhi hiked the target to 20 billion dollars a year by 2015. Muthuraman underlined that small business accounted for 40 percent of the Indian industry. The Confederation of Indian Industry urges local business people to more actively participate in Russian fairs and business conferences. At SPIEF 2011, the Indian delegation comprised over 500 people. Indian Minister of Industry and Commerce Anand Sharma reminded that Russia had helped his country create large industrial facilities: metallurgical plants, electric power plants, and mining enterprises. Finance and banking could become the new fields of interaction between the two states. India is also mulling the Russian offer to use the Russian GLONASS satellite navigation system. Indian Ambassador to Russia Ajai Malhotra noted that both countries are easing the visa regulations for business persons. Russian companies now feel more confident in Indian markets, from metallurgy to subway construction. India’s population is expected to exceed China’s by 20302035, and the country’s GDP continued to grow even in the midst CHRONICLE OF EVENTS of the economic crisis. Russia’s AFK Sistema is considering the possibility to build an oil refinery in eastern India, while Severstal thinks of the project to establish a new plant with an Indian partner. India displayed an interest in Russian long- and medium range planes SuperJet 100 and An-148. The Petersburg forum should show whether the recent SuperJet 100 crash in Indonesia has affected this interest. Business needs no guardian Another positive point noted by Russian and Indian SPIEF participants was that large business did not require mediation by politicians in striking mutually advantageous deals. Russian and Indian entrepreneurs are building confidence, crucial for longterm projects. Understandably, administrative levers can be used both in Russia and India to foil any project, so multi-billion-dollar projects still need the authorities’ blessing. SPIEF meetings, with or without neckties, are a very useful tool. It is not politicians but the market that dictates the advantages, for example in the construction of Indian pharmaceutical factories in Russia. This market suggests that Russian metallurgical giants which get super profits because of high prices of steel, have spare funds to invest in India, where per capita steel production is ten times lower than in Russia. The market calls for continuing Russian-Indian cooperation in developing BraMos missiles, which Brazil, Chile, South Africa and a dozen of other countries are ready to buy. Russia and India fit each other like pieces of a jigsaw puzzle. Russians have a developed defense sector, metallurgy and aerospace. India has quality mass consumption goods and an advanced pharmaceutical sector. Russia imports 80 percent of medicines. The two countries have also kept good old ties. Many young Indians speak fluent Russian. Their parents studied in Moscow, and they learnt in their childhood that the Russian language was important and that Russia was a good friend. A considerable portion of the Indian elite received higher education in the Soviet Union. It is another matter that the Indian economy has not yet attained the stage of large-scale export of capital. So there is no Indian neighborhood or Indian carmaking plant in St Petersburg yet. However, there may well be quite a few such projects in three or four years. RUSSIA&INDIA 4-2012 9 POLITICS & DIPLOMACY DISCUSSION FORUM The Bricks of a New World Order By Sergei SERY The BRICS summit in New Delhi has laid the foundation of new geoeconomics and geopolitics. In the long term, it will lose the West its leadership in managing international finance, and the right to sway the destinies of the world with sanctions or cruise missiles. POLITICS & DIPLOMACY M ore than a decade ago, Goldman Sachs’ leading economist Jim O’Nil invented a witty acronym – BRIC – for a new union bringing together Brazil, Russia, India and China. The western analyst’s key idea boiled to the following: in the 21 st century, four rapidly developing economies of the modern world which represent different continents would set up their own “club of interests” without waiting for favors from nature or international financial institutions. The acronym means “brick” in English, suggesting that this forum will become a construction material for the emerging new economic order, whose urgency is increasingly obvious due to the identity crisis of the G-8. It took five years to implement the idea which initially looked exotic: BRIC was created in 2006. New Delhi, India. March 29, 2012. Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Prime Minister of India Manmohan Singh, Chinese President Hu Jintao (L-R) pose for a group photo at the fourth BRICS (Brazil, Russia, India, China and South Africa) summit. 10 RUSSIA&INDIA 4-2012 At first, many were suspicious and skeptical, seeing a hidden anti-Western implication in this informal association. They assumed that Russia, together with India and China, had taken Brazil along to add more weight to their group, and were starting, in an un- derhand way, a revolution in the world economy and finance. A revolution by the BRIC states to depose Wall Street fat cats holding complete dominion over geoeconomics: the financial speculators, such as George Soros or Warren Buffett, and the dispassionate World Bank and IMF managing directors. The latter were always ready to lend a helping hand to the developing economies in trouble, but only if their governments swore on the Bible to follow the principles of the liberal or AngloSaxon development model. The discussion over what kind of association BRIC is never stopped ahead of the meeting of its leaders in the Indian capital in early March 2012. By that time, South DISCUSSION FORUM Africa had joined the “quartet,” adding “s” to the acronym and pluralizing the “brick.” Vladimir Putin, when he was prime minister, reminded about BRICS’s huge but not fully tapped potential in his article “Russia in a Changing World,” published in the “As South Africa jointed the forum, BRICS acquired a truly global format, accounting for over 25 percent of the world’s GDP,” Putin said naming the BRICS’ objectives and describing the association’s niche in the world economy. While acknowledging In an attempt to arrange new relations with international financial institutions, BRICS is giving a serious thought to another ambitious project – the establishment of a financial institution of their own – a BRICS Development Bank. newspaper Moskovskiye Novosti before the New Delhi forum. “This unique body is the most obvious demonstration of the transfer from unipolarity to a fairer world order. It brings together five countries with a population of almost three billion people and the largest developing economies, tremendous labor and natural resources and vast domestic markets. that “we’re only getting used to work in this group, getting accustomed to each other,” the Russian premier predicted that “when the “five” BRICS states expand to the full, its influence on international economics will be quite large.” It was the theme of “expanding to the full” that the BRICS forum in New Delhi addressed. Its slogan “BRICS partnership for the sake RUSSIA&INDIA 4-2012 11 POLITICS & DIPLOMACY “We discussed foreign policy issues; special attention was drawn to the situation in conflict areas, including the situation in Syria,” Dmitry Medvedev noted. “It is important not to permit outside interference in Syria’s affairs, and give the opportunity to its government, on the one hand, and the Opposition, on the other, to begin dialogue.” of global stability, security and prosperity” – raised the forum’s level quite high. The summit in the Indian capital at which President Medvedev represented Russia did not become a routine assembly of the five leading economies of the non-Western world just to wag a finger at the USA, the EU and the IMF with the World Bank or have the BRICS leaders photographed against the background of the Red Fort and other New Delhi places of interests. Setting up BRICS’ own system of settlements and loans in the national currencies, to be used in mutual trade and investments, was one of the main accords reached at the New Delhi forum. Five BRICS banks – Russia’s Vnesheconom12 RUSSIA&INDIA 4-2012 POLITICS & DIPLOMACY DISCUSSION FORUM bank, the China Development Bank, the Export-Import Bank of India, the Brazilian Development Bank, and the Development Bank of South Africa signed two key documents. The first agreement envisioned extending loans in national currencies and the second confirmed the letters of credits within the framework of the mechanism of BRICS inter-bank cooperation. The idea of the accords is to rid the “five”(in business cooperation between the member-states) of perpetual fluctuations of two world reserve currencies, the U.S. dollars and the euro, which gain and fall intermittently on the wave of numerous factors, from the Greek crisis to the threat of war with Iran. Presidential aide Sergei Prikhodko explained that the decisions by the BRICS forum in New Delhi were expected to enhance the role of the national currencies in settlements between the member-states. Overall, there have been increasingly insistent calls in the world for creating a new reserve currency as a substitute of the dollar and the euro. The BRICS leaders considered the issue in New Delhi, but it is yet unclear which currency it will be – the Chinese yuan, the Russian rouble or some other currency. Another landmark decision at the BRICS summit was the coordinated initiative to reform the IMF and other international financial institutions, to let BRICS countries play a large role at them. In practical terms, BRICS seeks to have its quotas raised at the IMF. The IMF management reform began in 2010 and is expected to be finished before the annual meeting of the Fund and the World Bank. The revision of the quota formula must be completed by January 1, 2013, while the quotas should be revised by January 1, 2014. The West and non-Western world should meet each other halfway, which will be to either side’s advantage. At the meeting in New Delhi, the BRICS leaders announced that if the IMF raised their quotas, it could count on additional financial injections. The BRICS’ New Delhi declaration notes that a successful reform of the quotas will increase the IMF resources. The IMF leadership which lacks funds is already pinning many hopes on BRICS money. Last autumn, IMF managing director Christine Lagarde made it clear in her statement to the BRICS leaders, including President Medvedev, as she urged them to increase loans to the IMF. Russian Finance Minister Anton Siluanov elaborated on the idea to set up a BRICS financial institution. “In February 2012, India suggested setting up a new BRICS Development Bank, in the run-up to the meeting of the G-20 finance ministers and national banks governors. Initially, it was proposed to create the bank to assist African countries. However, as an incentive for BRICS to participate in the establishment of the DISCUSSION FORUM bank, India clarified its position and suggested that the new Bank, aside from poorest countries, give loans to BRICS states as well.” The BRICS leaders said in the New Delhi declaration that it was necessary to establish a new bank to accumulate resources for infrastructure and sustainable development projects. The projects would be implementable not only within the five BRICS states, but also in many developing countries which so far have been watching BRICS as interested onlookers. However, BRICS has been unable to make tangible progress in the establishment of a Development Bank. After the meeting, the BRICS finance ministers were instructed to study the implementability and viability of the initiative and present their conclusions at the next summit in South Africa in 2013. Lastly, the big “five” of the non-Western world, perhaps for the first time, did not limit themselves to geo-economics at the BRICS summit in New Delhi, but tried to grope for ways of interaction in geopolitics. According to Dmitry Medvedev, the BRICS leaders noted a considerable disproportionate representation of nations and continents at the UN Security Council at the present time. “Russia supports India, Brazil and South Africa as powerful candidates for admission to the UN Security Council,” the Russian president stated. BRICS noted in its statement the inadmissibility of using the UN to “cover up the policy towards replacing undesirable regimes and imposing unilateral formats to resolve conflicts.” BRICS firmly object to using force against Iran . “We must avoid political disruptions that create volatilities in global energy markets and affect trade flows, Indian Prime Minister Manmohan Singh said. As the New Delhi forum clearly showed, BRICS are putting together new geoeconomics and geopolitics in the world, step by step, brick by brick. New Delhi, India. April 2, 2012. Brazilian Trade Minister Fernando Pimentel, Russia’s Economic Development Minister Elvira Nabiullina, India’s commerce secretary, Anand Sharma, Chinese Commerce Minister Chen Deming, Rob Davies, South Africa’s minister for trade and industry, L-R, at the fourth BRICS (Brazil, Russia, India, China and South Africa) summit. RUSSIA&INDIA 4-2012 13 POLITICS & DIPLOMACY CHRONICLE OF EVENTS Russian Minister of Economic Development E.Nabiullina and Indian Minister of Commerce and Industry A.Sharma (center) BRICS Business Forum The BRICS (Brazil, Russia, India, China and South Africa) Business Forum was held on the same date as the summit of the organization. This time, it was India’s turn to host the summit and the forum. Russia was represented at the forum by the delegation of officials from 18 companies working in the fields of pharmaceuticals, medicine, energy effectiveness, and information and nuclear technologies. T he permanent secretariat set up last year arranges ties and interaction between the business circles of the member-states, and prepares BRICS business forums. The secretariat that includes the Business Council for Cooperation with India, researches promising markets and informs business persons about mutual investment and cooperation opportunities. As preparations were underway for the BRICS business forum this last March, a decision was made to organize, jointly with the Russian Ministry of Economic Development, a business mission for Russian innovative companies. The business mission was timed with the BRICS summit and stayed 14 RUSSIA&INDIA 4-2012 in India from March 26 through March 28, 2012. Taking part in the business mission were such companies as NIS GLONASS, Rostekhologii, Sitronics, R-Farm, Farmasintez, Technopromexport, Neutron Technologies, Severstal, Hevel and Akvelit. The Russian business people’s visit was organized and supported by the Russian trade mission. By Russian participants’ request, the trade mission arranged 14 separate meetings with dedicated Indian companies and organizations. Russia’s R-Farm, Farmasintez and Akvelit (pharmaceutical, medicine) had theme meetings at the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers and the Ministry of Health and Family Welfare, as well as talks with such companies as Ranbaxy, Cadila, Torrent, Jubilant, Carborundum Universal, and the Sun Group. A series of meetings was arranged for Hevel (solar energy) and Neutron Technologies which were entering the Indian market for the first time. On March 26, representative of Russian companies visited the Indian Ministry of Health and Family Welfare, the Ministry of Chemicals and Fertilizers, and a number of Indian companies: BELL, Sanshadows Consultants, BHEL, NTPC, ECIL, Cadila, Carborundum Universal, Torrent, IVRCL, Jubilant Life Sciences, Panacea Biotec, and Venus Remedies. The key event in the business mission program was the interactive meeting between the Russian delegation with representative of more than 30 Indian companies at the Federation of the Indian Chambers of Commerce and Industries (FICCI) President of the Russian Chamber of Commerce and Industry Sergey Katyrin and Chairman of the Board of the Business Council for Cooperation with India (DSSI) Sergey Cheremin POLITICS & DIPLOMACY on March 27. At the plenary session, welcome addresses were delivered by Sergey Cheremin, Minister for Foreign Economic Relations, Moscow government, chairman of the board of the Business Council for Cooperation with India under the Chamber of Commerce and Industry, head of the delegation N.Reznik (who also presented the Russian Ministry of Economic Development), R-Farm chairman of the board A.Repik, and official representative of the NIS company in India A.Bondarenko who presented the GLONASS satellite navigation system. On the same day, the Business Council for Cooperation with India and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) held a joint session. ASSOCHAM Director Rajkumar Dhoot, ASSOCHAM Secretary General D.S.Rawat and all the ASSOCHAM leadership held a welcome reception for the Business Council delegation led by Sergey Cheremin. The “round table” meeting was both friendly and business-like: several guidelines for joint work were proposed, and the Business Council and ASSOCHAM signed a cooperation agreement. On March 28, 2012, members of the Russian delegation took part in the 2nd BRICS Business Forum to continue the establishment of business contacts. President of the Russian Chamber of Commerce and Industry Sergei Katyrin moderated the second session of the Business Forum which addressed BRICS co- CHRONICLE OF EVENTS DSSI and ASSOCHAM are signing a cooperation agreement operation in energy security with an emphasis on green and renewable energy. Katyrin noted in his report that these issues have special significance for Russia. He called for forming, even now, an advance long-term BRICS interaction strategy within the scope of world energy development (at least until 2050), which would reflect the priority issues in enhancing energy effectiveness and energy conservation and developing alternative energy sources. Sergei Katyrin underlined that Russia was open for constructive proposals and that it was ready to promote the BRICS initiatives towards substantial progress in world energy cooperation and implement large-scale joint modernization projects in power generation. Following are the results of the forum: The Business Council for Cooperation with India under the Russian Chamber of Commerce and Industry and the ASSOCHAM signed a cooperation agreement; Non-Commercial Partnership – Russian-Indian Scientific and Technological Center and Sanshadow Consultant Pvt.Ltd signed a framework scientific and technological cooperation agreement, and Russian Minister of Economic Development E.Nabiullina, at a meeting with Indian Minister of Commerce and Industry A.Sharma, informed him about the business mission, emphasizing the involvement of pharmaceutical companies. The parties decided to arrange a business mission of Indian companies to Russia to promote the cooperation started in New Delhi. Russian business mission participants in New Delhi RUSSIA&INDIA 4-2012 15 POLITICS & DIPLOMACY POLITICS & DIPLOMACY PERSONA GRATA projects are presently under implementation. Moreover, the thenPresident Medvedev and he had jointly met with some Indian and Russian CEOs and there were “good prospects in pharmaceuticals, steel, diamonds and hydrocarbons.” “We need to create greater investment opportunities…” By Sergei STROKAN The Ambassador Extraordinary and Plenipotentiary of the Republic of India in Moscow His Excellency Mr. Ajai MALHOTRA has kindly agreed to answer the questions of the chief-editor of the magazine “Russia&India-partnership for the Future” Sergei Strokan. R & I: How would you characterize the present state of India-Russia relations? India-Russia bilateral relations are unique, sturdy and time-tested. They are characterized by warmth and mutual respect, and are exemplary in many ways. The pillars of our multifaceted cooperation include space, defence, trade and economic cooperation, science & technology, atomic energy, oil & natural gas, pharmaceuticals and culture. We have had a rather intense, high level engagement between India and Russia over the past year. In the last six months of 2011 alone, there have been visits from India to Russia by our Ministers of Home Affairs, Tourism, Defence, Power, Commerce, Steel, External Affairs, Shipping, and our National Security Advisor. The pinnacle of these exchanges during 2011 was the official visit 16 RUSSIA&INDIA 4-2012 precedented goodwill and trust between us and boosted our partnership. to the Russian Federation undertaken by our Prime Minister, Dr. Manmohan Singh, in midDecember. It reaffirmed the un- R & I: How did the Prime Minister of India view his recent visit to the Russian Federation? Interacting with the media on the return flight from Moscow to New Delhi on December 17, 2011, Prime Minister Dr. Manmohan Singh described his Russia visit as “very successful”, adding that he was “very satisfied” with its results. He noted that India’s strategic partnership with Russia is special and privileged and is steadily forging ahead, while the depth and range of our relationship with Russia is growing. Dr. Manmohan Singh affirmed that our strong strategic partnership in nuclear energy, defence and space, will be buttressed by a stronger economic relationship in future. In this context, he recalled that President Putin had mentioned to him that over 400 India-Russia cooperation R & I: What important events in our bilateral relations can be mentioned as remarkable in 2012? Very important was President Medvedev’s visit to India in late March 2012 for the annual BRICS Summit. We also look forward to welcoming the President of Russia to India at the end of 2012 for the annual India-Russia Summit. On April 13 this year we celebrate sixty five years of India-Russia diplomatic ties. Rather uniquely, these ties were established four months before India became independent. We intend commemorating this anniversary on a grand scale and have drawn up a year-long calendar of academic and cultural activities, seminars, exhibitions, and other events. Amongst them is a Festival of Indian Films and Culture that would be held in several Russian cities and would be inaugurated at a high level. In addition, reciprocating the “Festival of Indian Culture” held in Russia in 2011, India will later this year host a “Festival of Russia in India” as well as “Days of Moscow in Delhi”. R & I: What trends or sectors in India-Russia relations are likely to witness progress in 2012? Our ties have gained enormous variety, depth and strength over the decades and are poised for further diversification during 2012. PERSONA GRATA There is tremendous scope for greater engagement and growth, especially to make trade and economic cooperation better reflect contemporary realities commensurate with the status of our over US$ 1.5 trillion size economies. Advances in science and technology and structural reforms have unveiled new growth potential in both economies. Russia’s modernization programme and economic reforms, recent WTO membership, and upgrading of its Custom Union with Belarus and Kazakhstan to a ‘Common Economic Space’, have also opened up attractive new vistas for trade and investment cooperation. We look forward to our entrepreneurs exploiting such openings. Cooperation in hydrocarbons, science & technology, pharmaceuticals, fertilizers, diamonds, IT, coal, and steel are amongst key focus areas. We will also explore creating of a joint investment fund, having a Comprehensive Economic Cooperation Agreement with the broader Eurasian region, securing greater connectivity through the North-South Transport Corridor, etc. Russian and Indian businessmen must maintain regular dialogue and contact in order to harness such prospects. Both our countries have recently liberalized the issue of visas for business travel, which will facilitate business interaction and linkages. We also need to create greater awareness of investment opportunities in both countries and each others’ growing capabilities and latest achievements. Further advancement in implementation of trade, economic, investment, defence, Prime Minister Dr. Manmohan Singh described his Russia visit as “very successful”, adding that he was “very satisfied” with its results. He noted that India’s strategic partnership with Russia is special and privileged and is steadily forging ahead, while the depth and range of our relationship with Russia is growing. scientific and technical projects, cultural exchanges, and strengthened tourism, academic, parliamentary and people-to-people contacts, can be anticipated during 2012. R & I: India is the Chair of BRICS this year. What are the plans and priorities for BRICS in 2012? India assumed the Chairmanship of BRICS on March 29 this year, when the New Delhi BRICS Summit took place. BRICS has come a long way since Russia convened its first Summit in Yekaterinburg in 2009. It has grown in influence with each passing year and its activities are now closely watched by the rest of the international community. Our strength as a group is derived from the fact that we are not merely rapidly emerging economies, but also have good bilateral ties with a capacity to cooperate at the international level. The India-Russia special and privileged partnership is a case in point. It is now generally accepted that the BRICS countries can play a significant role in promoting economic and financial stability at the global level. It is important for the BRICS countries to show they can constructively and effectively engage with the larger international community on a fairly wide range of issues. Economic issues have been the focus of the BRICS agenda since the very first Summit. The agenda of the New Delhi Summit was built upon issues that have been identified at previous Summits. Given uncertainties in the global economy today, this may not be the appropriate time to unnecessarily widen or dilute the BRICS agenda. So, the focus is largely on what are by now traditional BRICS issues. These are usually clustered around themes of better governance of the global economy and sustainable development or green economy issues. Intra-BRICS cooperation is also an important aspect of BRICS activities. We live in an era where human knowledge as well as S&T RUSSIA&INDIA 4-2012 17 POLITICS & DIPLOMACY POLITICS & DIPLOMACY PERSONA GRATA ist visas by this Embassy has grown by 24% in 2011 compared to 2010. We are undertaking fresh tourism promotion initiatives in 2012 and expect this welcome trend to continue. Popular Indian destinations include Delhi-Agra-Jaipur, Goa, Haridwar-Rishikesh, Kulu-Manali, Ladakh, and Kerala. Russian tourists are increasingly trying places that are off the beaten path. We are thinking of visa-on-arrival for Russian nationals travelling to India on ordinary passports, but its consideration is presently at a very, very preliminary stage. We will have to wait and see how it evolves. Meanwhile, India and the Russian Federation have a visa-free regime for diplomatic and official passport holders of both countries. 30MKI fighter and the T-90 tank. Russia is India’s largest partner in military-technical cooperation and vice versa, and there are good prospects for further cooperation in the long-term. We are satisfied with the pace of work to upgrade and refit INS Vikramaditya, formerly Admiral Gorshkov. We expect our mutually agreed schedule for its delivery to be maintained; its delivery will mark a major addition to India’s naval capabilities. R & I: What about the recent media stories about tightening of the issuance of Indian visas to women from some CIS countries, including Russia? The media stories that you refer to have no basis. India warmly welcomes tourists from Russia and, indeed, from all parts of the world. There is no policy to subject visa applicants from any country to greater scrutiny or discrimination on the basis of their gender. We issue visas on the basis of standard procedures that are common to most diplomatic missions. India is a complete tourist destination and cordially invites all Russian friends to come and enjoy its hospitality! R & I: How is Russian tourism into India developing? Which are the popular destinations? What about visa on arrival for Russian tourists? Tourism from Russia into India is developing quite well. In June 2011, we liberalized our visa regime for Russian tourists visiting India and are now routinely giving six month multiple entry visas to Russian tourists, compared to one month single entry visas earlier. This has facilitated tourist travel from Russia to India. The number of Russians issued tour- R & I: What parts of our country have you visited as the Indian Ambassador to Russia? Any memorable impression? How do you view Russia as a destination for Indian tourists? I have so far visited Arkhangelsk, Kaliningrad, Sochi, St. Petersburg on two occasions, and Vladivostok, while I intend to go to Tver, Novosibirsk and Yaroslavl in the next couple of months. I have been impressed, wherever I have been, by the positive changes underway in Russia, especially those that have taken place over NEW DELHI, INDIA. APRIL 2, 2012. Alexander Kadakin (L), Ambassador of Russia to India, and Ajai Malhotra, Ambassador of India to Russia, at the fourth BRICS (Brazil, Russia, India, China and South Africa) summit. are amongst the main sources of a nation’s wealth. The BRICS countries can usefully share experiences in capacity building, education and skills development, as also lessons learnt as well as best practices arising from facing the challenges of growing urbanization. We also need to find innovative ways to generate finances for important infrastructure or environmental projects that contribute to our quest for environmentally sustainable development. The idea of a BRICS development bank deserves to be explored, as do prospects for cooperation between our stock exchanges, for example. We need to work together to overcome the impasse in the Doha Development Round, so that a rule based international multilateral trading regime that is fair, equitable and addresses the development agenda, finally emerges. However, it is not just international financial, monetary and trading institutions that are in need of urgent reforms. Reform and expansion of the UN Security Council are equally necessary if it is to reflect 18 RUSSIA&INDIA 4-2012 contemporary reality and enhance its credibility and effectiveness in dealing with global issues. R & I: This year marks the 50th anniversary of our military-technical cooperation. What are the main features of bilateral interaction in this sphere? Is India satisfied with the pace of work as regards delivery of the aircraft carrier Admiral Gorshkov? India-Russia defence cooperation has for long been an important pillar of our strategic partnership. This year we mark half a century of cooperation in this field. Our defence ties have transformed radically in recent years from a buyerseller relationship to a dynamic one that goes beyond the purchase of equipment, to cover joint research, development, and production of advanced defence systems. Several flagship projects are evidence of this deep-seated change, e.g., the Fifth Generation Fighter Aircraft project, the Multi-Role Transport Aircraft project, besides those for manufacturing in India the Brahmos missiles, the SU- PERSONA GRATA the last decade. While I retain a lot of memorable impressions of visits outside Moscow, the one that immediately comes to mind is a visit last autumn to the Solovki archipelago in the middle of the White Sea, near Arkhangelsk. What a beautiful location! My wife and I had the opportunity to spend a few hours visiting the legendary Russian Orthodox Solovetsky Monastery complex and to learn about its history. Russia has a lot to offer - friendly people, rich culture, well-developed art and architecture, colourful folk traditions, exquisite ballet and music, eye-catching churches, impressive forts, stunning landscapes, and so on. Indian tourists are increasingly travelling abroad and Russia could be an attractive destination. I am pleased that Russia too is taking initiatives to welcome tourists from India. This will help bring us even closer together. RUSSIA&INDIA 4-2012 19 ECONOMY & BUSINESS ECONOMY & BUSINESS NUCLEAR POWER NUCLEAR POWER Kudankulam Passions By Sergei STROKAN The unexpected problems Russian nuclear engineers encountered at the final stage of the construction of the Kudankulam nuclear power plant in India were masterminded from abroad. The sensational acknowledgement by Prime Minister Manmohan Singh that the West had been behind the protests by a group of activists of the Indian anti-nuclear movement had the effect of exploding bomb both in Moscow and Delhi. Nobody expected Atomstroiexport’s rivals to play an anti-nuclear card against the Russians in an underhand way. But the Indian authorities and Russian specialists have the resolve to carry the nuclear “project of the century” in Kudankulam through. T he clouds over the Kudankulam nuclear power plant, the flagship of RussianIndian nuclear cooperation, gathered all of a sudden, with the speed of tree-uprooting tropical storms that pound the southernmost part of India in the state of Tamil Nadu on the shore of the Indian Ocean. As preparations were underway in December 2011 for the visit by Indian Prime Minister Manmohan Singh to Moscow, officials of the two countries were making proud statements that the construction works at the Kundankulam NPP had entered the final phase. Unofficially, high-placed 20 RUSSIA&INDIA 4-2012 sources in Moscow and New Delhi hinted that the commissioning of the NPP scheduled for late 2011 would certainly enter on the credit side of the next top-level meeting. However, the Kudankulam situation at the end of September and early October suddenly began to look like a bad dream or collective madness. Several hundred local residents, without apparent cause, announced an indefinite hunger strike against the first nuclear reactor going online in December and blocked access to the NPP. This suspended the construction works at two 1-MW nuclear reactors of the besieged NPP. By that time, one of the reactors was 99 percent completed, and the sec- ond, due to be commissioned in August 2012, was 93-percent completed. Several weeks later, thousands of seasonal workers brought to the south from the states of Uttar Pradesh, Bihar and Jharkhand hastily withdrew from the construction site. To drive them out, local protest movement activists used all means, including the termination of their rental agreements. The agreement to build the Kudankulam NPP with Russia’s assistance was signed in June 1998 by the then Russian Atomic Energy Minister Yevgeny Adamov and head of the Indian Atomic Energy Commission R.Chidambaram. Russian officials repeatedly underscored the uniqueness of the project and its complete safety. The press service of the Atomstroiexport, a leading Russian engineering company which builds nuclear facilities abroad, Kudankulam is implementing the Russian AES-92 project with 3rd generation reactors which meets all the modern requirements for nuclear power plants. The main advantage of AES-92 over older generation projects is the use of “several levels of protection and additional passive safety systems in combination with standard active systems. The People’s Movement Against Nuclear Energy set the tone from the beginning, with its activists demanding that the Kudankulam NPP be shut down. They insisted that after the ac- cident at the Fukushima NPP in Japan in March 2011, a similar tragedy could occur in India. One of the key arguments was that the NPP was being built on the shore of the Indian Ocean and was vulnerable to the devastating force of tsunami, as was the Fukushima plant. The protesters dismissed the assurances by Russian representatives that the facility was absolutely safe. The Kudankulam crisis was a major embarrassment for the Indian leadership ahead of the official visit to Moscow by Prime Minister Manmohan Singh and his talks with Russian President Dmitry Medvedev. Until then, the Kudankulam project had been the symbol of “privileged strategic partnership” between the two countries, announced during President Medvedev’s visit to New Delhi in 2010. In an attempt to placate the protesters, Prime Minister Manmohan Singh set up a government commission of 15 experts to address the safety concerns of the people. In the first weeks of the protest, former Indian President Abdul Kalam made an urgent trip to Tamil Nadu, to broker a deal between the authorities and the protesters. The activists of the movement opposed to the Russian NPP rejected his services out of hand. “Kalam is another representative of the nuclear lobby and he will not be able to convince us,” the People’s Movement Against Nuclear Energy said in a statement. Russia and India were unable to have the plant commissioned by their summit last year. The project was suspended for half a year, although the “Russian captains”Atomstroiexport specialists – did not abandon “the flagship.” What did happen in Kudankulam? Did we see growing environmental awareness of the local residents who were sincerely voicing their legitimate concerns over what they believed insufficiently safe nuclear technologies offered by Russia? As Kudankulam replaced one expert commission after another, all leading Indian experts chorused that it was not possible to find fault with Kudankulam even from the point of view of the most stringent criteria. However, the protesters turned a deaf ear, insisting that that they would sit-in until the NPP was shut down. In a sensational interview to the U.S. magazine Science in late February, Prime Minister Manmohan Singh answered to the question where the clouds over Kudankulam had come from. “There are NGOs, often funded from the United States and the Scandinavian countries, which don’t fully appreciate the need for our country to increase energy supply.” For example what’s happening in Kudankulam where local NGO-led protests have stalled the commissioning of 21000 MW nuclear reactors,” Singh said. Deputy Prime Minister Dmitry Rogozin was the first Russian government official to respond to this statement. He referred to the activity of foreign NGOs abroad as “a usual story.” ”Some NGOs often act as the state lobby,” Rogozin stated making it clear that there was “a foreign hand” behind Indian activists’ actions. Meanwhile, police detective had to intervene in the Kudankulam NPP situation. The Indian Home Ministry annulled the license of several NGOs funded from abroad which had arranged the Kudankulam NPP protests. Indian Minister of State V.Narayanasamy said law-enforcement bodies were “thinking of taking further action.” “In fact the people who are agiRUSSIA&INDIA 4-2012 21 ECONOMY & BUSINESS ECONOMY & BUSINESS NUCLEAR POWER DETAILS Agni-V poised for launch By Sergei STROKAN tating near the plant have been continuing their agitation for the past three months. People are being brought there in trucks from various villages,” he said. The Indian authorities also said they had sued 16 NGOs suspected of violating the Foreign Contribution Regulation Act and misuse of charity funds, and blocked their accounts. India’s Central Bureau of Investigation said local NGOs had received 7.5 million U.S. dollars from abroad to fund the NPP blockade. On top of that, India deported a German national, suspected of raising funds for the needs of “the local movement of environmentalists” opposed to the commissioning of the NPP. In a special operation, local police detained Sonnteg Reiner Hermann who had lived on a tourist visa in the town of Nagircoil, a quiet corner of the State of Tamil Nadu far from the key tourist routes. A police spokesman told local reporters that law-enforcement agents had been watching the quiet German and found out that he was not a tourist. Sonnteg Reiner Hermann raised money for the needs of local NGOs and maintained close contacts with leader of the People’s Movement Against Nuclear En22 RUSSIA&INDIA 4-2012 ergy S.P.Udayakumar and other activists. Curiously, “the German tourist” took a close interest in Kudankulam from Nagircoil, located several hundred kilometers away from it. He was deported to Germany from Chennai, the capital of Tamil Nadu. Using a new argument against Indian NGO activists who were taking cues from Western colleagues in the continuing blockade of the station, technical director of the Nuclear Power Corporation of India S.A.Bharadwaj announced “the price of the issue” to the nation in early March. According to the official, every day of delay in commissioning the NPP cost the Indian budget 50 million rupees (about $ 1 million). The taxpayers had to pay for the stubbornness of nuclear power opponents who were manipulating the democratic freedoms. S.A.Bharadwaj said the Tamil Nadu authorities, who had looked into the claims by anti-nuclear power activists, concluded that the Kudankulam NPP met all the safety requirements and that they were resuming construction. It follows from the explanations of the NPP executives, that the Nuclear Power Corporation of India urged the builders who had left to return to the construc- tion site. According to preliminary estimates, the station could start generating electricity not sooner than six months after the resumption of works. The decision by the Tamil Nadu authorities to support the central government was an important victory for Prime Minister Manmohan Singh’s Cabinet in confronting the opponents to the NPP projects and their foreign sponsors. Until recently, the local authorities have refrained from siding with the Indian government. The resumption of works at the Kudankulam NPP was not possible upon the prime minister’s direct order without their consent. Such is the Indian political system where the governments of the states enjoy broad powers. Today, the Indian authorities are making it clear that they will carry the project through despite the foreign conspiracy against the Kudankulam NPP. Undoubtedly, the Russian-Indian relations which were called “all-weather” at the latest summit will live through this trouble. These relations will not become a hostage of local manipulators and their foreign sponsors who are using devious means to push Russia from the Indian nuclear market.. The test of India’s new intercontinental ballistic missile was a milestone in the development of the country’s defense and research and technological potential I n April 2012, India made a crucial move in developing its strategic potential as it successfully test-fired the Agni-V intercontinental ballistic missile. The launch ushered New Delhi into the world club of nuclear weapons states. Prime Minister Manmohan Singh personally congratulated Indian scientists and missile designers on this outstanding achievement. “Yet we make missiles” is a half-forgotten line from a popular Soviet-era song, which aptly describes the sentiment of an advance nation, proud of its capability to rise to the heights of scientific and technical progress. The Russian-Indian space rocket triumph began several decades after Soviet intercontinental ballistic missiles had flown into space. The Indians, too, can now pride themselves on the ability to make missiles. They took the first steps in this field with the assistance of Soviet specialists, and overcame the western sanctions slapped on New Delhi for its excessive – as the USA and its allies believed – nuclear missile ambitions. Agni-V, the first Indian ICBM with a range of over 5,000 kilometers, was launched from a range on the island of Wheeler in the Bay of Bengal, State of Orissa, at 08:07, local time, on April 19. Twenty minutes later, after flying 5,000 kilometers Agni-V fell in the designated area of the Indian Ocean off the coast of Indonesia. Head of the Defense Research and Development Organization V.K.Saraswat was the first to announce that the benchmark test was successful. “It was a perfect launch and the missile hit the pre-determined target and the mission met all its parameters,” Saraswat stated. India is to carry out two more tests within the next few months, and is expected to launch production of this class of missiles not later than in a year. India’s top political leadership made comments immediately after the Agni-V test. «The nation stands tall today. We have joined the elite club of nations (to possess the ICBM capability),» Defense Minister A.K.Antony said. Prime Minister Manmohan Singh said called the launch of India’s ICBM “another milestone in India's quest to add to its security preparedness,” and congratulated the scientist and missile designers on its success. It will be inducted into the Indian armed forces in 2014-2015. Its development cost is estimated at $480 million. Evaluating the Agni-V test, Indian expert said it was a means of deterring China in the first place. New Delhi regards China, as well as Pakistan, as the main threats to the country’s security. Despite diplomatic efforts aimed at normalizing relations between New Delhi and Beijing, the old problems in these relations have not disappeared. Half a century after the war of 1962 which ended in India’s defeat, the old problems have not gone anywhere. The points of view on how to reach a settlement of the territorial issues are still far apart, President of Observer Research Foundation Nandan Unnikrishnan said. According to the Indian expert, the development of Agni-V was long overdue, because until recently, Indian missile programs, due to shortages of resources and other impeding circumstances had been developing slower that its neighbors’. OUR REFERNCE. Agni-V is India’s advance three-stage solid propellant ground-to-ground missile capable of carrying a nuclear charge (the previous model, Agni-III with a range of 3,500 kilometers was tested five years ago). It carries MIRV (multiple independently targetable re-entry vehicles) payloads. The missile’s length is 17.5 meters; it masses 50 tons and has a diameter of 2 meters. Its total payload is up to 1.5 tons. Agni-V can be transported by motor- and railway transport which provides for launching it from different locations. The ICBM can reach any part of Chinese territory, including its densely populated eastern coast, and Eastern Europe. RUSSIA&INDIA 4-2012 23 ECONOMY & BUSINESS ECONOMY & BUSINESS VIEWPOINT «S61» «Sindhukirti» Russia-India: Submarines to choose By Vladimir KARNOZOV Air Independent Propulsion systems are not that important for Russian submarines, unlike European ones. Endurance is achieved by larger battery capacity. Classic acid base batteries give way to lithium-ion ones which increase underwater endurance by almost two-fold, from nine to 16 days, precisely as the bulky and unreliable European units. Supply and Demand In mid-2010, India’s Minister of Defense Arackaparambil Kurian Antony approved the plan codenamed Project 75 (I) to purchase six non-nuclear submarines worth 10.7 billion dollars. Two submarines are to be built in the country which wins the tender, while other four are to be built in India under license. 24 RUSSIA&INDIA 4-2012 In accordance with the practice to purchase foreign military equipment, representatives of the world’s top weapons and military equipment exporting countries were invited to participate in the tender. In the second half of 2010, India sent them information inquiries, and is expected to send requests for proposal in mid-2012. If everything runs smoothly, the winner will be announced in 2012, while the first submarine is to be handed over to India in 20162017. Four contenders – Rosoboronexport (Russia), Howaldtswerke – Deutshche Werft GmbH (HDW, Germany), DCNS holding (France) and Spain’s Navantia offered, respectively, Amur-1650, Type 214, Scorpene and S-80. Under the terms of the Indian tender, a prototype of the submarine offered for exports must be part of the bidder’s Navy. The Russian Navy includes Project 677 head submarine, codenamed “Lada.” The Amur-1650 is its export version. The German Navy operates Type 212 submarines, a base model for the Type 214 export version. France’s Navy only has nuclear-powered submarines, but the DCNS holding has already supplied two Scorpenes to Chile, and two to Malaysia. Also, France is in talks over the project to build six more Scorpenes for India, under a contract with the Mazagon Dock. The submarine offered by Navantia, does not yet meet India’s requirements (there is no analog in the Spanish Navy). But the situation may change soon: in 2013-2015, the Spanish Navy might induct the first S-80 into its Navy. The Indian Navy operates four Type 209 (Shishumar class) submarines and ten Russian submarines of Project 877EKM (Sindhu type by Indian classification). Earlier, the Indian Navy had eight Russian submarines of earlier projects, but the last of them – the Wagli – was retired last year after 36 years of service. Specialists estimate that of the current Indian fleet of submarines, just four will have remained in service by 2020, and none by the year 2025. India is planning to purchase 24 new non-nuclear submarines. It will assemble 12 at domestic shipyards and have another 12 assembled at shipyards of the partner country. In 2003-2004, France won a 4-billion-dollar tender to build six Scorpene submarines. All the six units will be built at the Mazagon Docks Ltd under license, with commissioning in 2010-2015. Regrettably, the construction is pacing slower than India originally anticipated. Underwater rivals Germany, France and Russia are longtime rivals in the world market of non-nuclear submarines. European shipbuilders have VIEWPOINT As a bonus, Russia offers its customers the submarines equipped with the Club-C system, manufactured by the Novator firm, an export version of the Kalibr system, which is standard weaponry on Russian warships. The arsenal of Club-C submarines includes antiship 3M-54 missiles, anti-submarine 91R misisles and 3M-14 missiles to engage ground targets. As of today, only Russia offers such weapons for exports. designed more advanced air independent propulsion systems (AIP). The Germans claim that their Type 212 models can move for 14 days underwater at a speed of 3 knots without resurfacing. However, Russian submarines have an edge in submarine-tosubmarine duels. The Soviet and Russian specialist paid more attention to lower noise signature to enable diesel-electric submarines to effectively fulfill their missions to protect naval bases and coastal areas. They say Project 636 submarines, which are still produced by Russian shipyards, have more chances for victory, compared with new European submarines. The Amur 1650 advanced model would look a still better favorite in a duel, thanks to its design features: a powerful hydro-acoustic system and lower signature compared with the previous model, thanks to reduced noise level and displacement (1,765 tons versus 2,350 tons). Germany’s HDW has supplied eight Type 212 submarines to the German and Italian Navies since 1998. The export version is somewhat larger by displacement (1,960 tons versus 1,450 tons). Nine such submarines were supplied to Portugal, South Korea and Greece. Mass media reports on numerous technical faults somewhat overshadowed the initial success of these models in the international market. Specifically, the reports mentioned a higher tilt after resurfacing in bad weather, especially in a strong wind, an insufficiently powerful air independent propulsion system and fuel cells overheating. Among other reported shortcomings were a leaking hydraulics system, periscope vibrations, propeller cavitation, and unstable operation of on-board systems. In 2010-2011, South Korea’s Navy temporarily withdrew its submarines of this class from combat duty for repairs, after 30 reported cases of the loss of bolts on three of them. Though Germany’s Type 212/214 subs looked very advanced at the turn of the century, they were unable to avoid technical problems during initial operation. The Germans must have resolved many of these problems by now, which would make the German submarine one of the favorites at the Indian tender. Spain’s S-80 is the largest of the four submarines with a displacement of 2,400 tons. Due to the world economic crisis, the completion date of the head submarine project was postponed from 2011 to 2013 and later to 2015, which is its weakest point. S-80 is a modern project with a new but untested air independent propulsion system, based on an ethanol-to-hydrogen converter unit. S-80 is equipped with Integrated Combat System Core designed by Lockheed Martin of the USA. It certainly guarantees a high quality, but the USA, when exporting such advanced systems, RUSSIA&INDIA 4-2012 25 ECONOMY & BUSINESS ECONOMY & BUSINESS VIEWPOINT normally places restrictions on access codes, algorithms and software. Earlier, India placed a separate order with France to build six Scorpene-class submarines. Increasing the order to 12 units might benefit the local partner – MDL. France has no non-nuclear Scorpene-class submarines in service, but they are in the armory of Portugal and Malaysia – both purchased simplified 1,500-ton versions without AIP. Media reports said the submarines built for Malaysia had diving problems. The performance of several Malaysian government officials was questioned in this connection and DCNS lawyers had more problems to deal with as the com- «S-62» «Sindhuvijay» pany was accused of using corruption schemes. RJ-10 missile against stationary DCNS designed its own and moving targets and surface AIP, called MESMA (Module ships. Based on Russian Onix, d’Energie Sous-Marine AutoAlaf and Yakhont developments, nome). A conventional steam RJ has a startup mass of some four turbine power plant is powered tons. by steam generated from the comIndia might have various reabustion of ethanol (kept on board) sons to integrate BraMos missiles and stored oxygen at a pressure of in the existing European subma60 atmospheres. There is only one rine projects. However, it will be submarine with a true MESMA difficult to accomplish it in pracAIP at present, last of the three tice. German designers placed Agost 90B-type submarines (S137 hydrogen storage and generation Hanza) ordered by Pakistan. It reservoirs in the upper part of the differs from the other two in servhull, right behind the control house ice with Pakistan’s Navy by diswhich complicates the insertion of placement (increased from 1,760 an additional section. Also, the intons to 2,050 tons) due to the integration of such a powerful missile stallation of an additional 200 system requires proper systems to kW MESMA unit. The submarine ensure its effective use in combat. reportedly was unable to reach a Of the three European contenders, speed of four knots declared by the only France has an underwater vermanufacturer and could not even tical launching experience. Rusmake three knots at trials. sian specialists can easily install BraMos missile on Russian submaBraMos for submarines rines, because Russia has a rich exBraMos Aerospace led by Dr perience in underwater launching, Siwathanu Pillai is a joint Indianand, most importantly, BraMos is a Russian venture. The company derivative of the Onyx system used is developing a supersonic attack by the Russian Navy. 26 RUSSIA&INDIA 4-2012 Russia’s weak points largely stem from the consequences of the system crisis in the defense sector after the breakup of the Soviet Union. The construction of Russian submarines in India under license and the corresponding offset program (to train maintenance personnel) requires a special approach. The offset program needs an active participation of large integrated organizations, such as the Unified Shipbuilding Corporation and the Rostekhnologii stateowned corporation. Streamlined Endurance Russia began to develop “Lada”-class submarines (export version is Amur 1650) in the mid1980s. It was conceived as a sort of interceptor, capable of confronting U.S. nuclear attack submarines in Russian coastal waters. U.S. nuclear submarines’ missions include detecting and tracking Russian nuclear submarines on patrol as part of strategic deterrence force. With the view of better accomplishment of missions, Project 677 submarines differed from previous models by smaller displacement, lower noise signature, and a more powerful hydro-acoustic system, compared with Project 636. At the turn of the century, Russia’s Admiraleiskiye Verfi shipyard laid down two hulls of batch-produced Kronstadt and Sevastopol submarines, and launched the construction of an export version. According to the company, the first hull is 40-percent ready, the second is just 10-percent completed, while the hull of the export version submarine is ready for equipment installation. This is a good start for fulfilling the foreign customers’ order within a tight timeframe, if they select Amur-1650. The five years the St.Petersburgbased company spent on trials, enabled it to identify the problems that had to be resolved before launching full-fledged batch production of Project 677 submarines. It is standard Russian practice to test an entirely new type of vessel in active trials before any decision-making on batch production. In 2011, the Sevmash company (also known as SMP) announced plans to build diesel-electric submarines along with Admiralteiskiye Verfi. Sevmash specializes in the construction of nuclear submarines. The company, based in Severodvinsk, has built 128 submarines since it handed over a K-3 submarine to a customer in 1958. The company claims it can build at least one diesel electric submarine K-45 - «CHAKRA» VIEWPOINT In the Project 75 (I) tender, the AIP issue is crucial for Russia. By the time the Indian tender committee starts reviewing the best bids in earnest, the work to develop AIP for Amur 1650 will have been completed. Thanks to considerable investments in new technologies in Soviet times, Russian scientists gained a huge experience in developing fuel cells, used in submarines, spacecraft and latest drone types. for exports every year without delaying the construction of nuclear submarines for the Russian Navy. Sevmash’s significance is that its participation will be an impor- tant contribution to Russia’s export opportunities in such areas as quality and the capability to meet the tender terms for the offset program. With a 27,000-strong workforce, it is not only Russia’s largest shipyard, but also the best equipped and financially stable company. Amur-1650 is offered with the AIP of the following design: fuel cells in combination with diesel fuel reformation and hydrogen emission through electro-chemical generator. This technical solution provides for not storing oxygen on board the submarine. This simplifies the solution of coastal infrastructure issues and ensures safer operation of AIP submarine. Interestingly, the Russian Navy is not particularly interested in AIP unlike the Europeans: the Russian Ministry of Defense does not order R & D for Project 677. It assumes that endurance can be increased by larger battery capacity. The classical acid-base batteries are giving way to lithium-ion ones. Supposedly, the lithium-ion battery on Amur 1650 will increase immersion endurance two-fold, from nine to 16 days, which compares with the performance characteristics of German AIP submarines. It is also possible that during Rest for Proposal preparations, Indian specialists might reject their previous AIP requirement, leaving only the requirement for endurance and other immersion parameters. In that event, Amur 1650 will have the best chances to will India’s Project 75 (I) tender. RUSSIA&INDIA 4-2012 27 ECONOMY & BUSINESS ECONOMY & BUSINESS DETAILS DETAILS Non-system approach AFK Sistema Runs into Problems in India. By Anna BALASHOVA Kommersant correspondent especially for R & I A scandal broke out after AFK Sistema, one of the largest Russian consortiums, entered the Indian market. In early 2012, India’s Supreme Court unexpectedly revoked a majority of licenses of Sistema Shyam TeleServives LTD, a local affiliate of the Russian consortium, which provides mobile communication services to 15 million subscribers across the country. Although President Dmitry Medvedev expressed his personal concern over the situation at the BRICS summit, the license revocation problem has not been settled. Journalist Anna Balashova found out the reason behind India’s decision and the consequences it might have for business ties between the two countries R ussia’s AFK Sistema entered the Indian market in 2007 when it acquired a 10-percent stake in Shyam Telelink LTD (later renamed to Sistema Shyam TeleServices Ltd – SSTL). As of that time, the local mobile operator based in the state of Rajasthan had around 100,000 subscribers. Sistema then increased its stake to 74 percent by paying a total of 45 million dollars. Another 460 million dollars were spent to purchase a license to provide services in all the states and allied territories in 2008. In 2010, Russia became a shareholder as it used India’s payments for the Soviet-era and Russian loans to purchase the mobile operator’s 28 RUSSIA&INDIA 4-2012 follow-on offering worth 600 million. Its Rosimushchestvo Federal Agency for State Property Management came in possession of 17.14 percent of SSTL shares, with Sistema’s stake decreasing to 56.68 percent. Sistema stated its readiness to invest up to seven billion dollars in the construction of mobile communication networks across the country and did not rule out a merger between SSTL and Mobile TeleSystems (MTS), its main telecommunication asset. Several years ago, SSTL began to work under the MTS brand, but an analysis of the expediency of the merger will be appropriate after the Indian company’s clientele exceeds 150 million. Such was the reservation made by AFK’s key shareholder Vladimir Yevtushenkov. As of now, SSTL has more than 15 million subscribers, and there is much uncertainty about the growth prospects. Bollywood-Style Repudiation In early February 2012, India’s Supreme Court ruled to revoke 21 of 22 SSTL licenses. The ruling was passed within the inquiry into a high-profile corruption scandal involving high-placed Indian officials and business persons, including former Telecoms Minister Andimuthu Raja. The court eventually concluded that the licenses had been sold underpriced in 2008 and without proper tenders, which lost the Exchequer $40 billion. Aside from 21 SSTL licenses, the court revoked 101 permits from a number of companies. By June 2012, all of them should stop operation in the territories where their licenses were recalled. In the meantime, India planned a new tender for the released frequencies. This time, the national telecommunications regulator TRAI recommended market prices for using frequencies, which it believed should be ten times higher than the price paid in 2008. According to the AFK estimates, 5 MHz frequencies in the 800 MHz band in which SSTL is interested, approximately cost $ 6 billion. The court’s ruling plays in the hand of large Indian mobile operators whose licenses have not been revoked. SSTL and other companies that lost their frequencies said the price was unacceptable. Some said they would have to withdraw from the Indian market. For example, Norway’s Telenor invested in the local Uninor 17 billion Norwegian kroner (some $2.8 billion at the current exchange rate). After losing its licenses, it said it was not ready to pay the TRAI-recRUSSIA&INDIA 4-2012 29 ECONOMY & BUSINESS ECONOMY & BUSINESS DETAILS ommended sums to get them back. Telenor and Sistema minority shareholders call for quitting the Indian market altogether as there is no guarantee that multi-billion investments in new licenses will pay back. The companies that had their licenses quashed, attempted to delay the court’s ruling on the deadline for shutting off their networks and persuade the Indian authorities to revise TRAI’s recommendations. However, they were unsuccessful. By the end of March, Russian President Dmitry Medvedev raised the issue at the bilateral meeting with Indian Prime Minister Manmohan Singh at the 30 RUSSIA&INDIA 4-2012 BRICS summit. A week later, the Supreme Court postponed the annulment of the operators’ licenses by three months to September 7, and pushed the dates of the tenders to late August. The terms of the tenders have not been announced yet. Crossroads In 4th quarter of 2011, Sistema posted a loss of 346 million dollars as the cost of SSTL licenses and another $349 million of goodwill (the difference between a company’s book value and market value) In late February 2012, Sistema officially notified the Indian government about the dispute within the framework of the Russian- Indian agreement on mutual promotion and protection of investments, effective since 1996. “The annulment of the SSTL licenses contradicts the agreement under which India commits itself to provide complete protection and security of investments and not to expropriate investments,” the AFK said in an official statement. If the dispute is not settled amicably until August 28, 2012, AFK might complaint to the international court of arbitration. The Russian Foreign Ministry also released a statement on this situation. Telenor representatives, too, stated the possibility to challenge the Indian court’s ruling at international bodies. Furthermor, Norwegian Trade Minister Trond Giske recently said the situation might have political repercussions. The Norwegian government has a 54-percent stake in Telenor. VTB Capital analyst Viktor Klimovich sees two possible scenarios in the development of the situation. Under the first, the Indian authorities will continue to demand huge sums for the prolongation of licenses, while the other envisions a decrease in license prices and the participation of the aggrieved companies in the tender. In case of the first scenario, Sistema will withdraw from the Indian market and start international litigation to have its investments returned. It will be a DETAILS serious worsening of the investment climate for India. “For Sistema, it also implies the collapse of its plans, as SSTL was not only a telecoms project but the starting point for the Russian consortium to develop other businesses in India,” Klimovich said. His colleague Yevgeny Golosnoi from Nomos Bank has serious doubts that Sistema will be able to recover the lost profit in a court action against the Indian authorities: “the company will win if it recovers the $3 billion dollars invested in the project.” Yevgeny Golosnoi believes the Indian market is at the crossroads now. The telecoms market can develop along two ways: the first envisions an allocation of many licenses. India and Ukraine have opted for it. Under the pressure of competition, the players take over each other or quit the market. The second way is a kind of oligopoly; when few companies get licenses and the authorities regulate their operation in order to forestall collusion in fixing unjustifiably high prices of services for subscribers. The terms of the new license allocation tender have to show which way the Indian authorities will select this time. The longer this period of uncertainty lasts, the more losses Sistema incurs in India. Yevgeny Golosnoi estimates its monthly losses at $50 to $60 million. RUSSIA&INDIA 4-2012 31 ECONOMY & BUSINESS ECONOMY & BUSINESS AVIATION AVIATION INDIA ARMS ITSELF WITH NEW HELICOPTERS India’s Air Force inducted the first 21 Mi-17B-5 helicopters into its army on February 17. Indian pilots had been looking forward to the equipment – the new helicopter is custom-made for India’s climate, flight conditions and combat specifics. It can fly missions in the Himalayas, deserts and jungle. By Yevgeny GALYANOV the Indian Air Force and help the IAF carry out military, rescue and other sorts of operations, Antony said. Mi-17B-5 helicopters have already got a good reputation in India. Some of the recently supplied Russian helicopters are operated in the north of the country. India praised the quality of the new equipment, and local media outlets reported New Dehli had plans to purchase 59 more helicopters. Presentation of the symbolic key of the helicopter Mi-17B-5 to the Defence Minister of India A.K.Antony weapons-trading company Anatoly Isaikin. “These helicopters were manufactured in accordance with India’s recommendations and the specifics of the objectives and tasks set before the armed forces of this country,” Vertolyoty Rossii (Russian Helicopters) sales director Sergei Ostapenko said. “We’re looking at Russian helicopters’ prospects at the ongoing Indian tenders with optimism,”Ostapenko added. India is holding another two helicopter tenders at present, for a multiCEO "Rosoboronexport" Anatoly Isaikin in the helicopter Mi-17B-5 T he contract to supply 80 Mi-17B-5 helicopters to India was signed in 2008. The first batches were delivered in the autumn of 2011. India has received and officially commissioned 21 such helicopters so far. In all, 80 helicopters are to be included in the Air Force inventory by 2012. The 32 RUSSIA&INDIA 4-2012 contract is worth 1.34 billion dollars, according to the Indian mass media. At a ceremony at the Palam air base near New Delhi, Indian Defense Minister Arackaparambil Kurien Antony said these new Russian helicopters would enhance the capability of the Indian army. These multi-purpose helicopters will add to the operational muscle of Some newspapers said the country’s interior ministry and other lawenforcement agencies have been eyeing the new equipment, so the number of purchased units might increase by at least 12. Taking part in the induction ceremony was a Russian defense sector delegation led by director of the Rosoboronexport state-owned The helicopter Mi-17В-5 got into operation in the Indian Air Force on February 17, 2012 Mi-17B-5 is a modern version of Mi-8MT featuring combat use design features. The helicopter is intended for transportation of cargoes and airborne troops, as well as external large-size cargos. The design also provides for minimizing the disembarkation time, which is crucial in combat (36 troops in 15 seconds). role helicopter (in which Russia’s Ka226 participates) and an ultra-heavy lift helicopter (Russia’s bid is Mi-26). “It’s very good and reliable helicopter. We’re happy to fly these,” Indian pilot, commodore Rajesh Isser told RIA. At a news conference devoted to the induction ceremony, a documentary was show about various helicopters operated by the Indian army and the Mi-17B-5 capabilities. RUSSIA&INDIA 4-2012 33 ECONOMY & BUSINESS ECONOMY & BUSINESS COSMOS India is exploring outer space In creating your own, don’t be shy to borrow from others By Sergei BABUSENKO India should be considered not as an ordinary poor country with a wealth of problems, but as a power which is making all efforts to resolve these problems. India is for independence of views and action and wishes to use the advantages given by science and technology. Indira Gandhi 34 RUSSIA&INDIA 4-2012 COSMOS Aviation and rocket production development India first developed rockettype projectiles several hundred years ago. They looked like steel tubes tied to guiding bamboo poles, and had a range of about one kilometer. The Europeans learnt about them the hard way in the battle of Seringapatam (State of Kerala in southern India), when the troops led by Tippoo Sultan fired many such projectiles at the British army inflicting upon it heavy casualties, especially upon the British cavalry. The gaining of independence in 1947 prompted India to start developing its aviation and rocket production. In 1962, it founded the Indian National Committee for Space Research (INCOSPAR) under control of the Department of Atomic Energy. On November 21, 1963, NASA specialists launched Nike Apache, a small high-altitude U.S.-made rocket. That story had a curious twist: the rocket head containing a set of scientific instruments, was delivered to the launch site by bicycle. NASA’s car broke down and they borrowed a means of transportation from a local postman. The Soviet Union, the USA, Great Britain and France then used the Thumba Equatorial Rocket Launching Station (TERLS) to launch their geophysical rockets for almost a decade. In all, more than 350 launches were made. Meanwhile, the Indians were watching closely and learning. For the learning to be effective, India set up the Center of Space Science and Technology which began to develop domestic analogues of foreign equipment. The solid-fuel Rohini RH-75, with a 75-millimeter black powder-fired engine was the first rocket designed and produced by India. On November 20, 1967, it soared aloft to an altitude of nine kilometers with a payload worth one kilogram of scientific instruments. It became the key guideline in the Indian space research program: in creating your own, do not be shy to borrow from others. India made a breakthrough in space research in 1969, when INCOSPAR was succeeded by the Indian Space Research Organization (ISRO) led by Dr Vikram Sarabhai, the Indian Tsiolkovsky. New Delhi’s foreign policy has always been oriented toward multi-vector relations. Unlike China and the USSR, it had the opportunity to not only acquire licenses and train specialists abroad, but also buy assemblies and sets of space equipment on both sides of the Iron Curtain. In the 1960s, Indian student Abdul Kalam, (who later became one of the fathers of Indian space rocket program) studied in the USA. He managed to get access to technical reports on the Scout project to develop a small solidfuel booster rocket. It actually became the prototype of India’s first booster called Satellite Launch Vehicle (SLV-3). The first Indian four-stage solid-fuel booster massing some 17 tons had to take a 40-kilogram satellite to a 400-kilometer high circular orbit. India manufactured more than 85 percent of rocket parts. The former parent state indirectly contributed to it. In the early 1970s, Great Britain shut down the wellknown rocket range Woomera in Australia. India quickly saw its chance and bought test benches and launchers at scrap metal prices, to make them the basis of their launching pads at the Sriharikota Launching Range (SHAR) on the Sriharikota island. By 1975, India had finalized the key systems of the booster rocket through tests on geophysical rockets and the prototype made a suborbital flight the next year. The first launch of a space rocket from SHAR took place on August 10, 1979. Abdul Kalam was head of the project. India took its first step into outer space with the assistance of the Soviet Union. On April 19, 1975, a Kosmos-3 booster rocket carrying Ariabhata, the first Indian satellite, blasted off from the Kapustin Yar cosmodrome. India lauched Rohini (RS1) satellite on its own on July 18, 1980. The development of SLV-3 and the launch of the first satellites marked the establishment of India’s space exploration. Unlike Great Britain, India never stopped research after launching its prestige satel- In August 1972, Vikram Sarabhai pointed out that it was important to be well up on the latest achievements in space research and keep pace with time, as India had the opportunity to be among the world’s leading states. It has human resources and a network of companies. India still relies on imports of finished products, but there are no reasons not to aim at complete independence in space research. Cooperation with foreign countries should be encouraged in all ways, he said. RUSSIA&INDIA 4-2012 35 ECONOMY & BUSINESS ECONOMY & BUSINESS COSMOS India plans its first manned flight for 2016. Building a spaceship is a difficult, but quite feasible task. Finalizing the booster rocket faces serious complex problems, whose solution might require the assistance of Russian specialists with a successful longstanding experience. lite. On May 30, 1981, the third SLV-3D1 rocket was launched. The first three stages functioned normally, but the fourth did not separate properly and the 38-kilo- gram RSD1 satellite which had a camera on board to photograph the Earth, found itself in an offdesign orbit and ceased to exist in nine days. Only the fourth launch of the booster of this series was completely successful on April 17, 1983, when it put into orbit a 41.5-kilogram RSD2 satellite. The third Rohini transmitted beautiful images of the planet. Rakesh Sharma was the first Indian who flew into space in 1984. He was included as a space explorer in the crew of the Soyuz T-11 (Yuri V.Malyshev was commander and Gennady Strekalov was engineer). The Soyuz T-11 was launched from the Baikonur cosmodrome on April 3, 1984 and docked with the Salyut-7 orbiter. The crew spent 7 days, 21 hours and 41 minutes in space. On April 11, 1984, the mission was completed as the astronauts returned to Earth in the Soyuz T-10 landing capsule. The IRS-1C satellite put into orbit by the Russian Vostok-M booster on December 28, 1995, became a landmark in India’s national space program. It was the first domestic satellite with three scanners of various spatial resolution. Until 1999 (when the USA launched its IKONOS-2 unit), IRS-1C provided operational footage with the best resolution in the world. The IRC-1C data were much needed in the world market of space research information (for example, for online transmission to a network of foreign stations); in all 24 stations in 17 countries were receiving the IRS-1C signal. Russian specialists played an important role in developing the Indian cryogenic engine, which raised India’s national space program to a new level. The fact that India won the tender to manufacture communications satellites for Europe in 2006 shows its high achievements in the field of space technologies. Achievements, plans and calculations Rockets are not an end in itself for India. They should put into orbits various satellites. India is one of the few countries in the world with the capability to manufacture and launch geostationary communications satellites. Indians 36 RUSSIA&INDIA 4-2012 launch weather satellites, remote probing and Earth mapping satellites. The fact that India won the tender to manufacture communications satellites for Europe in 2006 shows its high achievements in the field of space technologies Back in January 2006, ISRO unveiled a supersonic combustion ramjet. In a number of ground tests, stable supersonic combustion was achieved for seven to ten seconds. India used Russian test benches. This technology is viewed as crucial in developing multiple re-entry vehicles in the future. It actually started the work towards COSMOS developing India’s shuttle Avatar. Space equipment is used not only for navigation and telecommunications, but also for direct solution of the country’s pressing social problems in health care and education. The INSAT-2C, launched in January 2007, supports the operation of 300 countryside remote study and medical treatment centers across India. As the first step towards orbital flights, the Indians carried out a Spacecapsule Recovery Experiment (SRE-1) with a unit massing some 550 kilograms. It was put into space by means of a PSLV booster on January 10, 2007. The capsule contained the equipment for technological experiments in space metallurgy and synthesis of nano-crystals in the conditions of microgravity. Of course, the main purpose of the experiment was to perfect the technology to return people from space. It also tested fibred carbon and phenolic resin coatings for multiple re-entry vehicles. The first lunar probe, Chandrayaan-1, was launched in 2008. The program exceeded all expectations, when molecules of water were found in lunar soil. Regrettably, ISRO lost radio contact with the probe, which terminated the mission one year ahead of schedule. However, it is still viewed as top achievement even now. Moscow and New Delhi reached an accord to step up cooperation in space research, including moon research programs, manned flights and the use of the Russian GLONASS satellite navigation system. Space research is not always problem-free. India announced the plans to develop a spacecraft in 2008. It is a descent capsule with a cylindershaped service module resembling Russia’s Soyuz. An upgraded GLSV rocket had to put it in orbit, but its reliability was questioned. Of the seven GLSV launches, only two are considered fully successful. A major failure on December 10, 2010 put in doubt a space mission of Indian gaganauts (derived from the word “gagan” which means “sky”), when a GLSV booster blew up after the launch. It was a disappointment for ISRO which had planned to use GLVS for manned spaceships. A certified a manned spacecraft implies a high reliability co-efficient demonstrated in test flights. It also requires extra safety systems, such as escape capsule to be ejected in case of in-flight malfunctions. A manned rocket is more sophisticated than a satellite booster. Prime Minister Manmohan Singh told the RIA Novosti news agency ahead of his visit to Moscow in December 2011 that Russia had provided a tremendous support to India’s space program. He also said he sincerely hoped that the space agencies of the two countries would continue to cooperate in the next few years. RUSSIA&INDIA 4-2012 37 ECONOMY & BUSINESS PROJECTS & INNOVATIONS Nano Breakthrough in Russian-Indian Cooperation By Yulia TKACHYOVA Russia and India are at the point of breakthrough in oil and gas cooperation. In the near future, nano technologies which seem fantastic at first sight will help to double the output of oil and convert gas into a solid phase, to make shipments easier. Alexander Khavkin, a leading Russian developer of new technologies from the Institute of Oil and Gas Problems, Russian Academy of Sciences, tells R & I correspondent Yulia TKACHYOVA about innovations in the field of bilateral energy cooperation. R & I: What is your opinion of India’s energy sector? Energy issues have priority for India at present. For example, coal accounts for up to 53 percent of power generated in the country, 38 RUSSIA&INDIA 4-2012 and this ratio will not change much in the next few years. The government has approved a plan to boost coal-fired energy production capacities. A high demand for coal is also explained by the fact that India is a net importer of this fuel, although it has the fourth largest coal reserves in the world and is the world’s third largest coal producer. According to the prognosis of India’s Coal Minister Sriprakash Jaiswal, the demand for coal will increase by more than three times to two billion tons a year in the next two decades. At present, the country mines 530 million tons of coal, and imports another 70 million tons a year. India’s aggregate reserves of all kinds of coal are estimated at 120 billion tons. The leading coal producers are the State of Bihar and West Bengal, accounting for almost three quarters of national production. The largest coking coal reserves are found in the Jharia field in Bihar. Coal is also mined in Assam (bituminous coal) and Tamil Nadu (rich deposits of lignite in Neyveli). R & I: What other problems does this branch of industry have? Coal, which is the corner stone of local power generation, is difficult to mine. Each produced ton is expected to claim a miner’s life! Methane and other hydrocarbon components of coal gas pose the greatest danger. Tragic coalmine accidents warrant the conclusion that the existing methods to reduce dust escape and contain fires are obviously faulty. Despite constant improvement of mine ventilation methods and the use of modern gas analyzers, the human factor is increasingly prominent as the cause of fires and explosions. Consequently, it is necessary to pay more attention to the development of reliable systems to protect the work area in coal mines from dust and gas explosions and rule out the negative influence of the human factor. There are two aspects to the problem of extracting methane from coal beds: reducing methane emissions in shaft mining and extracting methane as a hydrocarbon product. Since post-accident mine rebuilding requires tremendous funds, it is time to implement cost-cutting methods and develop alternative technologies. R & I: We hear you’re in talks with a number of Indian companies over launching your developments. What is the point of your know-how? ECONOMY & BUSINESS It is difficult to explain it briefly. In general, launching the nano technologies Russian specialists developed for India, will help resolve not only social tasks for the society, but raise its coal industry to a new level. Let us adopt a common frame of reference, for example, we might view slates as a sort of nano-collectors of methane. This is a field where I offer to work. Extracting methane from coal and slates, increasing the effectiveness of oil recovery and transportation are the issues to which we find solutions at the nano-scale! Explosive methane accumulates in mines; it is a prime cause of miners’ death. To prevent the release of methane into drifts during shaft mining, we offer to convert methane in the coalmine atmosphere into gas hydrate. It can be used as fuel and transported by trains or ships. Therefore, we wish to bring forward an alternative method, which replaces pipelines in gas transportation. There are many problems associated with pipelines at present, from gas hydrate plugs to labor-consuming pipeline construction projects. R & I: How do they handle methane accumulation in mines at present? Methane is extracted through wells drilled from the surface. That is, they bleed off gas to pump air instead. They reinforce ground with polymer resin-type mixtures, and also use hardening mixtures (concrete, foam concrete, gypsum concrete) in replacing coal pillars, walling, filling of voids and damming. Regrettably, all these methods ignore the nanosize of pores in unworked coal. Coal is a nano-collector. Imagine how small coal pores must be – less than 100 nanometers, and these ultra-small pores are filled with methane. Furthermore, coal has a wealth of pores less than 10 nanometers. The available technology of preliminary extraction of methane from coal is not very effective. Diluting gas to safe concentrations with fresh air flow in prime roadways of a production unit is no guarantee of safe PROJECTS & INNOVATIONS The first development well was drilled in northern India’s town of Jawalamukhi on April 20, 1957. Its location was chosen by Soviet specialists. At present, ONGC participates in surveys and subsequent development of hydrocarbon fields in 26 Indian sedimentary basins, meeting 30 percent of the country’s demand for crude. The corporation owns and operates more than 11,000 kilometers of pipelines in India. mining. We offer to work with slates at the nano-level! R & I: How is India’s oil production faring? There is an oil basin in the valley of the Brakhmaputra river in the east of the country (the State of Assam). It is India’s oldest oilfield discovered in the late 1950s with the assistance of Russian oil industry specialists. The significance of West India increased dramatically due to oil and gas prospecting and production in the State of Gujarat and on the continental shelf in the Gulf of Cambay. India’s explored oil reserves make up 0.6 billion tons. The country annually produces some 40 million tons, mostly in offshore mining. Oil and Natural Gas Corpoation (ONGC) marts its anniversary on August 16, 1956, which is regarded as the date of the beginning of oil production in India. Indian Oil Corporation, another Indian oil and gas giant currently owns 10 of India’s 18 refineries, 7,730 kilometers of pipelines and 22,000 petrol stations. oil and gas beds at the nano-level. Simply put, we suggest not going back to a depleted oil stratum but secure maximum production with our know-how from the beginning. Moreover, research and field tests of our technologies showed their effectiveness and profitability. R & I: What do you think about hydrocarbon reserves? Do you believe there is a possibility to increase the world’s oil reserves by several times? Indeed, such research work is underway. Few know that nanotechnology can help increase the world’s oil and gas reserves, raising the oil recovery factor from 30 to 60 or 70! We seek to solve the issue of controlling the properties of RUSSIA&INDIA 4-2012 39 ECONOMY & BUSINESS PROJECTS & INNOVATIONS SPLAT: innovations for beauty and health S PLAT is a Russian designer and manufacturer of innovative professional oral care products SPLAT specializes in the production of high-quality products unparalleled in the world for professional oral care which are truly effective, helping people to be healthy, good-looking and successful. The SPLAT laboratory and an R & D center develop unique formulae and combinations of ingredients. As of now, the company has more than ten Russian and international patents. The SPLAT research center is always in search for new convenient forms to ensure the maximum clinical effect of each product. A number of its inventions have won international recognition. This list includes LUCTATOL ®, an effective composite to prevent tooth 40 RUSSIA&INDIA 4-2012 decay, that inhibits up to 96% of dental plaque accumulation, the revolutionary DE-SMOKE ® phyto-whitening formula that dissolves safely and efficiently the complex of pigmented tartar left over by nicotine resins, coffee and red wine, the Sp. White System® polishing/safe whitening system, and a special active form of hydroxyapatite for a deep restoration of tooth enamel. Every product coming out of the SPLAT laboratory is designed to attain specific objective in the field of oral care. The line of products under the SPLAT brand includes cleaning foams, toothpastes, dental flosses, mouthwashes, and manual and ion toothbrushes of the PROFESSIONAL, SPECIAL, JUNIOR, TRAVEL, and EXPRESS series. SPLAT unveiled a line of new products in the spring of 2012 MAXIMUM, a new toothpaste with whitening effect, is developed for maximum oral cavity freshening. It is the first SPLAT toothpaste for adults that includes the unique LUCTATOL ® anti-decay composite. Zinc ions with Timol, a natural antiseptic, have astringent and anti-inflammatory effect and block the growth of pathogenic bacteria that cause bad smell. An active form of nanohydroxyapatite (the key mineral in building soft tissues) acts like a filling to stop and firm the vulnerable areas of enamel. A high concentration of the Polydon® whitening component removes the plaque caused by tobacco, tea and coffee. SPLAT cleaning foams for teeth and gums are an innovative product for everybody who is used to highend life and cares for his health. Easy use foams do no require water or toothbrush and remove up to 97 percent of dental plaque, protect from decay, normalize acid-base balance of oral cavity, and ensure gentle whitening of enamel, gum care and fresh breath in just five seconds. In the spring of 2012, the company presented five new flavors for those with penchant for change: Mediterranean bergamot, spice ginger, organic aloe & manuka, highland lavender and Maximum with a taste of icy mint and sweet orange. Anti-bacterial toothbrushes with silver ions, a long-expected novelty, are intended for children from 2 to 8. SPLAT Junior toothbrushes prevent bacteria spreading, and effectively clean plaque. Safe for milk teeth and finished to the finest detail to make the youngest buyers happy. The upgraded toothpaste formulae for children from 3 to 8 of the Junior series are now 100 percent free of abrasive substances. They do not contain fluorine, coloring agents, or preservatives, and are safe if swallowed. For the first time, the children products’ formula includes a unique active form of nanohydroxyapatite (mHAP) which has been proven to strengthen enamel by stopping its vulnerable places like a dentist’s filling. ECONOMY & BUSINESS All SPLAT products undergo extended clinical and in vitro tests in Russia, Japan and EU countries and have the European certificates for compliance with requirements of the Cosmetics Directive. SPLAT manufactures its products in small batches, using the best components offered by the leading international producers, at its own up-to-date environmentally friendly factory in the ecologically clean pristine Valday region. The manufacturing facilities have CO2-neutral status and are certified for compliance with GMP Cosmetics and ISO 9001 standards. The SPLAT products are safe and suitable for everyday use. The SPLAT team genuinely believes that it is possible to change the world for the better and works to ensure the snow-white smiles could light up the planet at least once every second. Over the eleven years since the foundation of the company, SPLAT products have gained more than 12% of Russia’s domestic market. Customers can purchase them at some 35,000 trade outlets. The produce is exported to 18 countries, including China, Malaysia and Singapore. Oksana ZHENDARSKA, director of economy and development, PROJECTS & INNOVATIONS SPLAT foreign trade division, tells R & I about the company’s plans and development prospects R & I: Why is the Indian market important for you? Emerging markets are important, including India. Its huge potential that attracts investors from different countries is obvious to us, too. As of today, the large Russian companies present in the international market only represent the raw materials sector. SPLAT wanted to change the situation and presented innovative products that won customers in 18 countries aside from Russia. Health is crucial for each nation, and I’m confident that our products will help people keep flashing beautiful snow-white smiles, and become more attractive and successful. R & I: What are the specifics of oral cavity hygiene culture in India and how does it differ from Russia’s? Regrettably, oral hygiene culture in India is far from being perfect. Whereas the consumption of toothpaste in Russia approximates European standards (some 400 grams per capita a year), it is around 118 grams per capita in India. There is a justified opinion that the consumption of hygiene products is indicative of the health of the nation. We have a long way to go, and we wish to contribute to India’s oral hygiene culture. R & I: What key needs in the oral care market in India do you see now? A consumer in India cannot afford much. Local firms offer cheap products just to clean teeth without preventive care. Toothpaste is often produced in primitive conditions where any norms of hygiene or control over the quality of the composite are ignored (which make the end product much cheaper). There is no guarantee that such products are safe for health: they might contain staphylococcus or coli bacillus. R & I: Keeping these specifics in mind, which products have you selected for exports to India? I’d like to recommend toothpastes for children and pregnant women; you should not economize on your health. I like this Chinese saying: Health is one. Money, beauty and social position are zeroes… If there is “one” in a person’s life, one might get infinity by adding zeros. If there is not, the zeroes will remain zeroes, no matter how many of them there are. RUSSIA&INDIA 4-2012 41 ECONOMY & BUSINESS ECONOMY & BUSINESS HI TECH Russian Technologies for Indian Programmers By Anna GEROYEVA Russian company and Indian programmers have found each other. The Russian company ABBYY is a leader among world suppliers of optical character recognition technologies, automated forms processing and applied linguistics. It has a firm position in the international market of content management systems and electronic document turnover. ABBYY brings together 14 international companies world over. India is one of the most promising markets for the company. Yelena POSPELOVA, director general of ABBYY 3A, an international division for business in emerging markets, tells R&I about the success the company has achieved in that country and the world at large. R & I: You’ve been in the market for over a decade. How did you fare in 2011, was it luckier than the previous year, and if so, where were you successful? Indeed, we’ve operated in the Indian market for more than ten years. The work with emerging markets always has specifics of its own, and a company might find it difficult to fit into the rapidly changing market conditions. Yet we succeeded in it, and the year 2011 was no exception: ABBYY 3A reached the level of national projects in which we participate 42 RUSSIA&INDIA 4-2012 on equal footing with such wellknown brands as Microsoft. Last year, the number of clients increased dramatically and we had to hire more personnel. R & I: At what rate did your sales grow in India? The sales of our technologies to India double each year on the average, which considerably exceeds the normal growth of the IT market in general. In arithmetic terms, ABBY business in India grows at 50 percent a year, whereas the growth rates in the IT industry do not exceed 25 percent. We are truly suc- character recognition, believes that the Indian market has a huge potential to use data input software. Our product is necessary, as the paper archives to be digitized keep swelling. We work with documents in 200 languages, including Korean, Arab and Chinese. Our technologies require tremendous initial investments at the stage of creating intellectual property. For India, which gets everything as software development kit (SDK), beautifully documented and integrated, launching a new technology project does not take more than a month. That is why the synergy between high intellectual technologies and the integrator who has the means to fine-tune the end solution is truly successful with the consumers. Among the popular ABBYY products in the Indian market is the ABBYY FlexiCapture toolkit for logical form recognition, customized data extraction from forms and conversion of retrieved information for further processing or storage. It is gratifying to see many of our products and solutions finding their consumers in India. HI TECH R & I: What are ABBYY 3A’s competitive advantages? We’re a unique company offering an integrated product with broadest functionality. It is unparalleled in Russia by the number and quality of languages we support (over 200). There are such analogues in the world, but they are scarce. R & I: Could you tell about the specifics of the Indian market? The Indian market has many skilled engineers capable of taking SDK technology to integrate in their solutions. India is famous for its programmers and their solutions, so artificial intelligence or AI technologies for integration in original complex software are not just in demand there, they are vital. This is what ABBYY supplies. You might say India and our company have found each other: they need our product, and we need their skilled engineers. A perfect match, in short. R & I: What significant projects have you implemented in India? There are many such projects; one of the largest is the children’s census in the Indian State of Orissa, initiated by the regional administration. The head of the administration set the task to raise the level of elementary education in the state, and a children’s census was initiated. We took up the project, coped with it well and as a result, the project won an Indian Prime Minister’s award. R & I: What are your plans to develop business in India this year? We’ve worked out a strategy called “Complete and Not Compete,” where we give the market and its top system integrators the SDK technologies and the right to integrate them in their solutions. That is, we complement and enrich the solutions by Indian integrators without competing with them. This is synergy between countries and mutual advantage. We plan for our cooperation with Indian system integrators to be more intensive and on a larger scale, by automating data flows and ensuring easy and quick access to state services for the population in state-level projects. cessful because of the growing demand for our products on the part of large market players. R & I: Precisely what do you offer to the Indian market? ABBYY offers automated data input technology. As a rule, our consumers are business process outsourcing companies which abound in India, government bodies with big data archives and educational institutions that have to process large volumes of tests taken by students and applicants during the examination period. Our company, a world leader in automated data input and optical RUSSIA&INDIA 4-2012 43 ECONOMY & BUSINESS A SECRET OF SUCCESS Charming Indian Auto By Sergei NIKITIN T he history of India’s car making dates back to 1942 and is associated with Hindustan Motors Ltd (HM). Understandably, no domestic models were available at that time, so the Indians took their guidelines from British ones. In the 1950s, HM produced the first Indian motor car, called Ambassador, a copy of Britain’s Morris Oxford. Surprisingly, it is still produced as Grand and Avigo models, and is in demand not only in India but also on the British Isles. The vehicle is superb on rundown Indian roads, thanks to an excellent suspension design. Ambassador’s main users are taxi drivers and civil servants. Contessa Classic, an upgraded version of Vauxhall Victor (1972), is another HM’s hit. The author of this article worked in India in the 1990s 44 RUSSIA&INDIA 4-2012 An Indian car is not science fiction but a hard fact. It is vehicles, not elephants as many believe, that are a means of mass transportation in India. They cannot boast top quality or outstanding design – yet. India’s leading car manufacturer Tata Engineering and Locomotive Company (TELCO) perfects its products year in and year out, offering them not only in the domestic, but also in the world market. and drove that car. Compared with Russia’s Zhiguli 2106 it seemed a clumsy giant, with an awful air conditioner and slow acceleration. But once it starts, it is set to run! Insolent Indian cyclists, who largely make up Brownian motion in New Delhi streets scattered away upon seeing my car without my asking them to give way. In my opinion, however, it is not HM that is associated with the In- dian car. I would give the palm to the TATA logo. Truck as artwork The bulk of Indian trucks and buses that ply for hire in the country are this or that licensed version of Germany’s Mercedes-Benz with a load capacity of five to seven tons, bought in 1954. At present, India produces a broad range of trucks with payloads ECONOMY & BUSINESS of one to 40 tons and 12- to 80-seat buses. By output of commercial vehicles, Tata is among the world’s top ten producers. Indian car-making has charm of its own. A majority of trucks rolling off the assembly line are just wheeled frames with an engine and something resembling a driver’s seat. The cabin, the body and all rigging are missing. Indian do-it-himselfers then turn this chunk of metal into a true artwork. You cannot meet two same trucks on Indian roads. As a woman’s sari, the exterior of each truck is unique in its own way. Tata Group scored true success in 1991, as Ratan Tata, a grandson of the firm’s founder, took the helm. In 1998, the company unveiled Tata Indica, the first car of its own design, a small hatchback with a 1.4-liter petrol or diesel engine which is also produced by Tata Motors. Despite certain shortcomings, the model was tremendously popular. Already in early January 1999, the number of orders for the car exceeded 100,000. In 2003, Tata Group launched exports of Tata Indica to Great Britain. Advertised as City Rover, its sales soared to one million in 2008. The secret of success is a low price: just 5,000 U.S. dollars. In 1998, Tata Group presented another model of purely Indian design. Tata Safari, initially equipped with a 1.9-liter diesel engine, was far from ideal, while its price differed little from world prices. The new CEO proved to be a persistent person. In 2004, the Tata administration decided to acquire Daewoo’s truck manufacturing unit. Tata Novus, the first new offering from Daewoo tucks acquisition is powered by a 300 hp engine and has a 12-speed gearbox. Another truck – Globus – debuted shortly thereafter. The next model was Starbus. In 2005, Tata Motors purchased a 21-percent stake in another carmaker, Hispano Carrocera, one of the leaders in bus manufacturing and bus sales in the European market at the time. Four years later, it acquired another 79 percent of shares of the Spanish bus producer A SECRET OF SUCCESS effectively taking it over. This became possible after the stunning debut of the overhauled bus Hispano Divo at the Madrid International Motor Show 2008. This is where Tata Motors got carried away. On June 2, 2008, it signed a deal with Ford Motors Company to purchase Britain’s Jaguar and Land Rover. Under the 2-billiondollar agreement, Tata Motors acquired Lanchester and Daimler, two design centers and two plants in Great Britain. Yet, wheeled frames routinely roll off the concern’s truck assembly lines, and as routinely, self-taught domestic mechanics convert them to fit into the Indian’s idea of what a vehicle should look like. A tradition, that it… Nanotech already available in India India already has a nano-car unlike Russia, whose nanotech chief’s Anatoly Chubais’ promised but not delivered nano-tanks or nanoplanes. On March 23, 2009, the first Tata Nano rolled off the assembly line in the town of Sanand, the world’s first four-wheeled means of transportation with a price tag under 2,000 U.S. dollars. It was specially designed for markets of the world’s least developed countries. However, the car has not made much success as an export item. Its ultra-low cost concept played a wicked joke on the producers. The designers economized on everything, reducing car comfort to the nano-scale. The capacity is dismal: theoretically, it is a four-passenger car (including the driver) but in practice it is not. The car lacks the second wing mirror, a steering booster, an air conditioner (which is a big disadvantage for India) and safety cushions. Also, it only has one windshield wiper. The trunk is only accessible from inside the car, as there is no rear door. The welded body is reinforced by front seats welded to the floor, unadjustable lengthwise. The rear RUSSIA&INDIA 4-2012 45 ECONOMY & BUSINESS panel of the car body is solid. The engine and the 150-liter trunk are accessed from inside through folding rear seats. The base model lacks door rubber, exterior mirrors, heater, ventilation, radio-recorder and deflectors. A European would find it wild, but for an Indian, used to streaking A SECRET OF SUCCESS along on scooters, coming in possession of such a car is like flying on a rocket. The only base model is powered by a two-cylinder 1-liter 33 hp engine and has a four-speed gear box, while the low cost of the car makes its truly attractive for India’s ordinary residents. Of course, Tata Motors has more commercial projects in store. In 2009, it presented a prototype of Tata Xover crossover, a 5-meterlong 7-passenger jeep. Tata Motors produces a range of cars jointly with foreign firms. It is in partnership with Marcopolo, Brazil’s bus producer, Italy’s Fiat concern (joint production of engines) and Iveco (design of new commercial vehicles). As for nano technologies, they are really available at Tata motors. Together with Reva Electric Car Company, Maini Group of Ganglore and AEV LLC of USA, it designed an Indian fuel cell car. The prototype is mounted on a “flexible” platform, which is adjusted to the size of the hydrogen tank. The Proton Exchange Membrane (PEM) fuel cell technology generates electricity in a chemical reaction involving hydrogen fuel and oxygen. This is something to learn from. The decision by head company for Tata-controlled Jaguar and Land Rover to skip the Deitrot Auto Show in January 2012 was a measure of the ambitious tasks India’s car-making industry is setting for itself. These premium brands did not attend the U.S. car show as it coincided with the Indian one in early January. Jaguar and Land Rover specialists have sound reasons to regard India an important and rapidly developing market, so the brands need it to offer their models. Tata launched the supply of its pickups and light trucks to European countries, including Russia, in the beginning of the 2000s. It arranged the assembly of several models in Ukraine and at the Automobiles and Motors of the Urals (AMUR), Russia, and the former Ural Automotive Plant in Novouralsk. Not only Tata Motors It would be unfair not to mention other players in India’s car market, especially because they do deserve attention. In 1945, John Mahindra, who worked as an Indian diplomat in Washington, decided to give up his political career for business. Ghulam Mohammed, a high-ranking 46 RUSSIA&INDIA 4-2012 ECONOMY & BUSINESS Pakistani official helped him in his undertaking. The new firm the former Indian diplomat set up was called Mahindra & Mohammed. A few years later, Mohammed had to withdraw from business. He was replaced by another Pakistani official – Clark Mahindra, brother of the company founder. Immediately after the reshuffle in 1948, the company was renamed to Mahindra & Mahindra. It selected a Willys – Overland crossover for the platform, but the vehicle only debuted in 1965 due to numerous problems. Though it was quite appealing, the Indian customer obviously seemed unprepared for such means of transportation, so the model never became popular. The early 1980s marked the second birth of the company. It launched licensed production of several models of famous U.S. Jeeps. Jeep became the platform for the first original models of an independent Indian car-making industry: 3-door and 5-door Mahindra Commander vehicles, an 8-passenger CL station wagon and its truncated 5-passenger version with a large trunk, called Mahindra Marshal. The exports of these cars to Germany began in 1993, which was a breakthrough for India. In 2002, the company launched the production of Mahindra Scorpio, its first ever original model. The 4-door SUV was a trailblazer for India. It was exported to many countries of the world and has reached the U.S. market by now. A separate chapter in the company’s history was setting up joint production of the famous Logan model with France’s Renault in 2007. The cost of Mahindra-Renault Logan was much lower than the original model, which made the car popular not only in India, but also in the whole South Asia. During 65 years of its existence, Mahindra operated for no more than 30 years. It actually stood idle all other years. However, in the past few decades it has started brisk business: licensed production of phaetons, crossovers, trucks and minibuses. Next, it began to offer much more comfortable cars, designed by A SECRET OF SUCCESS its engineers. At present, Mahindra actively works on such autos as Mahindra-Renault Logan. Maruti Udyog Ltd is another car manufacturer. In 1973, it set up the Maruti firm together with Suzuki Motors in suburban Delhi, to produce Japanese models. The first model was Maruti 800 (Suzuki Alto/Fronte SB), which remains the most popular economy car, and is proudly called the Indian Volkswagen. Maruti Esteem (Suzuki Swift), produced since 1994, is no less popular with the Indian population. The original version was powered by a 1-liter 65 hp engine. Due to the mounting competition in the Indian market, the producer equipped the model with a 1.3-liter 85 hp engine, overhauled the car design, and installed an air conditioner and a powerful sound system. During a business trip to India, the author of this article often met the above models on Indian roads. Cheap, unpretentious and quick moving Marutis are associated with the busy streets of Delhi, Calcutta, Mumbai or Bangalore, especially in the neighborhoods where two bicyclists barely manage to scrape by. At present, the Indian car industry is experiencing an upturn, and will certainly surprise the world with original and affordable vehicles of its own design in the future. RUSSIA&INDIA 4-2012 47 ECONOMY & BUSINESS A SECRET OF SUCCESS Tata Dynasty’s Empire Tata is not just legendary trucks or passenger cars running along Indian roads. It is the best known Indian multi-profile corporation bringing together more than 80 companies. For 150 years Tata has been the calling card of Indian business. The Tata family had astounding success as the country’s key business dynasty which built its empire from scratch. By Sergei STROKAN T he story of the Tata clan’s long way to prosperity began in Manchester in 1867 where British writer and historian Thomas Carlyle was reading lectures at the time. Jamshedji Tata, 28, was one of the listeners, who seemed to have benefited from attendance: he remembered the Carlyle’s remark that “the nation which gains control of irons soon acquires control of gold.” Jamshedji was a patriot of the Swadeshi independence movement, which called for developing national industry and for India’s independence, as well as for independence from British goods. The idea to assume control of iron later helped Jamshedji formulate one of the conditions for making his dreams come alive. India’s domestic steel making industry had to bring it prosperity and independence. The other two elephants, on which India had to ride into the new century, as Tata believed, were education and cheap electricity. But for Jamshedji, formulating these prin48 RUSSIA&INDIA 4-2012 ciples was not enough. Instead of pursuing a career in economic research, the educated young man rolled up his sleeves and rushed to put his ideas into life. It is now difficult to judge which Jamshedji was more – a great dreamer, a brilliant thinker or a smart entrepreneur. Anyway, his projects materialized, even though it happened after his death. Jamshedji set up his first trade company with initial capital of 21,000 rupees (4,500 U.S. dollars) in 1868. Five years later, he took up textile production and created Central India Spinning, Weaving and Manufacturing Company. When British Queen Victoria was declared the Empress of India, it was renamed to Empress Mill on August 1, 1877. Although Tata stuck to liberal views, he did not parade them for the time being: a businessman as he was, profit was his key concern. In 1887, Jamshedji set up the Tata Sons partnership which included his elder son Dorabji and his cousin Ratanji Dadabhoy. But it was a long shot before attaining the three key objectives – building the first steel mill in the country, providing cheap electricity and developing national education. Jamshedji Tata was studying steel-making for several years; he travelled to Europe and the USA to borrow the experience of leading corporations. It took him years to obtain official permission to build a plant. It was only in 1900 that he finally secured it, and then he spent several years in search for a suitable location. Tata never saw his dream come true: he died in 1904. His son Dorabji completed the steel mill construction project. In 1907, he founded Tata Iron and Steel. Nor did Jamshedji Tata see his second dream materialize in his lifetime – providing cheap electricity to India, although he had made many efforts toward it. He studied different technologies for a long time, visited the Niagara Waterfall at the advice of U.S. industrialist and inventor John Westinghouse in order to see power generation with his own eyes. In 1910, he set up Tata Hydro Electric Power Supply. ECONOMY & BUSINESS Yet he did manage to cope practically unassisted with the third task – developing India’s education, although it cost him a penny. In 1898, he contributed half of his fortune to the project to set up a university in Bombay to train Indian scientists and conduct research. It was only seven years later that the government agreed to pay half of maintenance costs. But one university was not enough for raising the level of education in a huge country. In the late 19th – early 20th century Jamshedji called for creating a network of science education institutions in different regions of India. He was the first to voice the idea of technology parks, which materialized in Bangalore, a world-famous technology city. India’s modern aircraft-making owes much to Tata Group. In 1932, Jamshedji’s distant relative Jehangir Tata established the first airline, Tata Aviation Service. He later headed Tata Group. By upbringing, he was more European than Indian, as he spent the first 20 years of his life in the native land of his French mother. Jehangir took a great interest in aviation since childhood: he watched famous pilot Louis Bleriot’ flights, had his first flight at the age of 15, while in 1929 he became the first licensed civil aviation pilot in India. Tata Aviation Service linked Bombay, Ahmedabad and Karachi. It was the prototype of Tata Airlines, nationalized by the Jawaharlal Nehru’s government in 1953. A SECRET OF SUCCESS Jamshedji Nusserwanji Tata, the founder of the Tata dynasty, went down in the history of modern India as one of the personalities who completely changed the face of the country. Not only did Jamshedji Tata establish the largest industrial group with an annual income of some 18 billion dollars, he was an ideologist of Indian business who helped the country to overcome the humiliating poverty plaguing it in the era of the British rule. Offshore software engineering began to develop thanks to Tata Group in 1974, when the first ITcompany, Tata Consultancy Services (TCS) concluded a contract with foreign customers for supplies of its software. Under Jehangir’s guidance, the company grew to a giant corporation comprising almost 250 companies of different profiles. Tata produces chemical products, household appliances, refrigerators, and cars. In 1991, Jehangir’s nephew and successor headed the company. He restructured the company focusing on the key fields, such as steel production, power generation and information technologies. At present, the official owners of all companies are not Tata family members, but the trusts that control part of shares. Each is managed by its own board of directors, and the profits derived from the operation of com- pany are used for their development or charity. In 1999, the group brought the dream about a people’s car into effect. Having rejected joint production, including a joint venture with Daimler Chrysler -- Tata’s partner in the production of cars that seemed to be too expensive for ordinary Indians -- the company designed the first “domestic” passenger car Tata Indica that cost $5,100. The Russian market knows Tata mainly by its trucks. Several years ago, Tata Motors’ head office in Bombay made optimistic predictions that Indian people’s cars Tata Indica hatchbacks and Tata Indigo sedans, whose price compared to Russia’s Lada Kalina, would soon start running along Russian roads. However, Indian passenger cars have not won a niche in the Russian market. The company burst into the 21st century thanks to Ratan Tata. He RUSSIA&INDIA 4-2012 49 ECONOMY & BUSINESS A SECRET OF SUCCESS In 1909, with Tata’s participation the Indian Institute of Science was established, a large research and education center at that time. At present, it has 40 various departments and centers and the best library in the country. It annually trains 1,500 scientists and engineers, and conducts research in aerospace, electronics, power generation and environmental protection. ECONOMY & BUSINESS about a large industrial and hightech business empire in 1877, as he started with 21,000 rupees, a small textile factory and a contribution of half of his capital for the sake of developing education in India? One thing is a fact: as the founder willed, Tata continues to struggle for control over iron. One of the most significant transactions in the past decade was the acquisition by Tata Steel of NatSteel, a large Asian metallurgical company. Charitable trusts had to resort to tough methods, such as cracking down on the mutinous “old guard” who sought to take his post. At Ratan’s initiative, the board of directors approved the decision under which the pension age was lowered to 75 years. Tata’s previous CEO, Ratan’s uncle Jehangir retired at 87, so it was customary not to leave business earlier. Once approved, the decision automatically put a majority of the opponents to a progressive Ratan within retirement age and they had to step down. In 2002, Tata assumed control over VSN Broadband Limited, the main provider of international telecommunication services in India. Tata Consultancy Services, the leading IT company, floated its shares on the exchange back in 2004, raising more than one billion dollars in Indian business’ record largest IPO. A year later, TCS, together with Microsoft and three Chinese companies, set up one of the largest IT outsourcing companies. Did Jamshedji Tata dream 50 RUSSIA&INDIA 4-2012 A SECRET OF SUCCESS Tata family members do not quite fit into the image of “genuine oligarchs.” They do not purchase castles abroad or throw wild parties in Courchevel. Ever since the founding of the company, Jamshedji Tata spent a considerable portion of his wealth on charity. His descendants followed up the tradition, creating a unique system of charitable trust companies. One of Jamshedji’s sons, Ratan, allocated funds to support Mahatma Ghandi’s work in South Africa and financed research at the London School of Economics, where he contrib- uted to the establishment of a department of sociology. One of the first teachers at the department was Clement Attlee, who later became Britain’s prime minister and it was during his term in office that India gained independence. Ratan Tata died in 1918. He bequeathed his fortune for the needs of education, arts and culture. Sir Ratan Tata Trust was set up in the same year. Jamshedji’s second son, Dorab, passed a considerable portion of his wealth – shares, real estate, land and even his wife’s jewelry, including the world’s largest diamond “the Golden Jubilee” weighing more than 545 carats to the newly created Sir Dorabji Tata trust. At present, it finances several research centers in Bangalore. Other Tata family members stuck to the principle spelled out by famous U.S. steel tycoon Andrew Carnegie in the 19th century: “to die rich is to die disgraced.” They founded several more trusts. One of them, named in honor of Dorabji’s wife Meherbai, supports young women who engage in social work. Others offer grants for innovations and development of education, and fund medical research. At present, these charity organizations control almost 66 percent of Tata Sons, the Tata Group founder. Tata’s offices are found all over the world – in the USA, Canada, Brazil, Great Britain, Hungary and Japan. In the beginning of this century, the group advanced to international recognition through traditional Indian business. In 2000, Tata Tea purchased a controlling stake in Tetley Group, Britain’s largest tea corporation, in the first acquisition of a famous western brand in the history of Indian business. RUSSIA&INDIA 4-2012 51 ECONOMY & BUSINESS ECONOMY & BUSINESS A SECRET OF SUCCESS Propitious Climate of Bangalore From Bangalore to Skolkovo Vladimir Putin was so impressed by India’s research center in Bangalore during his visit in December 2004, that he ordered quick solutions in establishing an offshore software development and IT center in Russia. They say Bangalore’s experience was among the factors that prompted the idea to set up the Skolkovo intellectual cluster. When in Bangalore, the Russian president saw the operation of effective business to fulfill orders to develop software for various objectives, from optimal movement of goods in trade networks to the calculation of gas dynamics in aircraft turbine. Bangalore, with a population of seven million, sits on a mere 120 square kilometers, but accounts for 35 percent of India’s hightech products. The world famous International Tech Park (ITPB) includes six high-rise buildings, each with the name of its own: Discoverer, Voyager, Innovator, Creator, Explorer and Navigator, with an aggregate area of more than 2,000 square feet (190,000 square meters). The Tech Park continues to grow, with 26 acres (110,000 square meters) awaiting those who wish to become neighbors of Microsoft, Oracle, Motorola, Toshiba, IBM – the international companies that opened their offices in Bangalore. More than 10,000 millionaires consider Bangalore their home. Bangalore exports approximately one-third of all Indian software and IT services provided by 1,500 small and large companies. According 52 RUSSIA&INDIA 4-2012 than 30 countries and 125,000 personnel engaged in the development of intellectual software. Bangalore was once called “pensioners’ paradise” thanks to its propitious climate. Nowadays, this large research and industrial center is often called the Silicon Valley of India for numerous resident IT companies. The city accommodates manufacturers of machine building, electronics and aerospace products, as well as telecommunications equipment producers and defense firms. There are also the Indian Institute of Science and the National Aerospace Laboratories there. Considering Bangalore’s increasing economic role in the world, the city is regarded as one of the most attractive locations for running a business in a developing country. Infosys founder Narayana Murthy to Indian analysts, many of those who left Bangalore in the 1970s for higher pay in the United States, later returned home to start their own business. Pioneer’s problems It is now all too obvious that Narayana Murthy created a company destined to become a locomotive of the new economy, which is changing the familiar image of Mother India before our very eyes. In 1981, when Infosys was founded, few could imagine what the information technologies (IT) were about. Murthy realized what prospects they opened, and jumped on the foothold of accelerating train in time. But it was all very nice on paper: there were obstacles, too. As the businessman himself recalls, India’s environment in the 1980s was “extremely business unfriendly.” Heading a private firm meant a neverending struggle against bureaucracy. He spent a whole year to get a telephone connection for his company, and waited three years for a license to import a computer. “We used to have a joke: half the people in the country are waiting for a telephone, the other half are waiting for a dial tone,” he said. The borrowed money only helped to keep afloat for a while. But Murthy and his six colleagues who had been with the firm from A SECRET OF SUCCESS the beginning, kept their feet on the ground. The secret was simple: “You spent less than what you earned.” He and his colleagues stayed in very inexpensive hotels, didn’t have any cars, sometimes they took buses, sometimes they walked to the venue of their meeting. First success In the late 1970s and early 1980s, the world’s demand for custommade software was growing rapidly, and Infosys founders realized that this opened broad opportunities for software suppliers. Initially they only had one client, a New-York-based company, which ordered a customized set of software. The first client is very important. They can make or break a start-up. India trained many engineers, who were all looking for a job. The government allocated considerable funds for training technical manpower at colleges. “By and large we have recruited very smart people,” Murthy recalls, “and smart people, they learn pretty quickly, they adapt very quickly, and they think of new innovations.” Minister Manmohan Singh carried out reforms to deregulate domestic business. Exporters were given significant incentives, such as duty free imports of equipment and software, an income tax break until 2010 and exemption of excise duty on industrial goods purchased in India. “We could travel abroad, we could travel easily, we could get consultants from outside, we could import - all of that,” the pioneer of high-tech business said. He stepped down as director general when he turned 60. Murthy, who is honorary chairman of the board, claims he measures the success of his company not on the figures and revenues it generates, but on the happiness it creates for people. This would include the public benefit a company creates and decent remuneration for its personnel. Many employees of his firm truly benefited from this policy. At Murthy’s initiative, employees were given the opportunity to purchase company shares. Their prices were growing so fast that 400 staff became owners of packages of shares worthy one million dollars on short notice. Entrepreneur’s mission A high tech breakthrough would be unthinkable without state support. In the early 1990s, Finance Generations Sharmila Samuel, an Infosys medium tier manager, has good chances to enter the company Leftist views no obstacle to business Narayana Murthy, a co-founder of Infosys and a pioneer of Bangalore developments, initially tried to actively resist world capitalism and spend almost all his fortune on this noble objective. But after USSR and Bulgarian secret services snubbed his projects, Murthy invested 250,000 dollars in a new computer business in Bangalore. Having recruited about a dozen personnel, he became a representative of the very world capitalism in the 1990s against which he had previously meant to struggle. By the beginning of the 21st century, the volume of Infosysproduced software exceeded that of the whole Russian IT market by two times. In 2010, Infosys’annual turnover reached 4.8 billion dollars; the company has branches in more RUSSIA&INDIA 4-2012 53 ECONOMY & BUSINESS ECONOMY & BUSINESS A SECRET OF SUCCESS administration. After graduating from a university as a system analysis specialist, she was soon appointed head of a group of developers for two projects for U.S. customers. The objective is a higher quality of products or services the two U.S. firms provide to their clients. One offers software to Atlanta shops. Earlier, a customer paid by credit card and got a receipt indicating the product’s price, the change, etc. But after completion of the project, the receipt added the customer’s name entry, Sharmila Samuel said. The second company has an office in California. Infosys is creating for it a more reliable protection for passwords used in financial transactions. Sharmila was among 200 aspirants to the programmer’s job. The company only recruited 15, including Sharmila, a representative of a new generation of India’s growing middle class. Propitious climate, good working and living conditions The summer in Bangalore is not very hot, which many foreigners find suitable as they consider a startup in the city. But the ITPB attracts Indian and foreign specialists both by interesting work and good conditions. Infosys and other IT firms turned Bangalore into a prosperous enclave, surrounded by a countless private farms that continue to practice patriarchal lifestyle. The number of such enclaves that take a worthy niche in the 21st century economy is increasing. Aside from Bangalore, these are Hyderabad, Mumbai, Delhi, Chennai and several other modern technologies centers. Sunset of Bangalore’s Miracle? Whereas sales of software brought India 110 million dollars in 1990, the proceeds from sales of these products in foreign markets reached 2.7 billion dollars in 1999. In 2000, they exceeded four billion dollars. By 2005, software sales proceeds totaled 12 billion dollars and continued to grow, exceeding 12 percent of India’s aggregate experts and two percent of its GDP. Today, Bangalore is not only the capital of IT industry, but also aeronautics, biotechnologies, and space exploration. A SECRET OF SUCCESS But even inveterate enthusiasts of the development of this industry have to admit now that it cannot serve as perpetual motion engine to pull the Indian economy upwards. A slower economic growth in the USA, and a dramatic decrease in spending on renewing technologies by U.S. corporations could not but influence their Indian partners. Even Infosys suffered losses. Last year, the USA’s Credit Suisse First Boston lowered the rating of securities in the whole sector, changing the recommendation from “buy” to “hold.” Admittedly, it is an unpleasant sign. But a majority of Indian analysts believe the unlucky streak will not last long. The industry is not expecting any major crisis because U.S. business persons, while slashing the funds intended for software and electronic service, will tend to work with Indian specialists instead of inviting their highly-paid fellow Americans. Brain drain Brain drain is another persistent problem plaguing the industry. Directors of many Russian enterprises and research centers know it only too well. It is a never-ending process, despite the economic recession in the USA and especially in Europe. The overseas “headhunters” select the most promising students before their graduation. Vandana Rathi, a human resource expert of a large firm in Delhi, complains that she has to explain to candidates with required skills increasingly often the benefits they may get for working at an Indian company. The demand for skilled Indian engineers in the West is great. Prof Ramamurti believes it makes no sense to try to keep young specialists from leaving. Skilled personnel now work in one country, now move to another. It is a sign of time, he says. It makes no sense to hold graduates. There is only one way to resist brain drain – train more specialists and create a good environment for them at home. Then many will stay in their homeland or come back after gaining experience. And it really happens. 54 RUSSIA&INDIA 4-2012 RUSSIA&INDIA 4-2012 55 ECONOMY & BUSINESS ECONOMY & BUSINESS TREND TREND Women’s best friends By Anna GEROYEVA Russian diamonds make up 7 to 8 percent of the world market of cut diamonds. A lion’s share of Russia’s precious stones is exported and a mere 3 to 4 percent are sold in the domestic market. Russia prefers exporting uncut diamonds to using them in domestic jewelry-making. However, high customs duties and retailers’ surcharge hike the price of jewelry for end consumers by 45 percent of the real value. R & I correspondent Anna Geroyeva interviewed Indian businessman Divyesh D.JOSHI, an enthusiast of Russian jewelry-making, who shared his views about its prospects. port jewelry-grade diamonds. We also buy technical raw materials: these diamonds are very small and almost look like powder. Russia does not process this kind of raw materials, so we export them to India which makes use of them. I should also note that we work with diamonds in a diamonds market. Several years ago, Divyesh D. Joshi founded the Nascent Company in Russia to export uncut diamonds to jewelry-makers abroad. He intends to expand his business in the next few years, staking on the Russian consumer. R & I: How long have you been in the Russian market? We’ve been cutting rough diamonds since 2006 and have accords with Russia’s Alrosa Company for supplies of rough diamonds. But I set up a Russian company. We cut Russian diamonds here to ex56 RUSSIA&INDIA 4-2012 R & I: What difficulties does your business encounter in Russia? Although Russia has a population of 140 million people, and many could afford gold pieces, the demand for jewelry is very low. Things are quite different in my homeland. Gold items are preferred to other decorations and people of all ages buy them. Russian youths tend to prefer a new television or a trip to the seaside to a new ring or earrings, while older people would save money. Few invest in jewelry. R & I: You say Russian retail gold and diamonds do not sell well. Why do you think business in Russia has prospects? What is the situation in the market at present? Imported products admittedly prevail in the Russian gems mar- ket, which is disadvantageous to consumers, the Russian budget and the economy in general. Russian diamonds make up 7 to 8 percent of the world market of cut diamonds. A lion’s share of Russia’s precious stones is exported and a mere 3 to 4 percent are sold in the domestic market. Russia prefers exporting uncut diamonds to using them in domestic jewelry-making. However, high customs duties and retailers’ surcharge hike the price of jewelry for end consumers by 45 percent of the real value. The high price is not justified, but regrettably, few are concerned about the consumer’s interests in Russia, otherwise the current system practiced in the Russian market would have long been changed. It is no secret that corruption among Russian officials sometimes exceeds all permissible levels. I think it is wrong when people have to pay three or four times more for gold in Russia than in European countries or the USA. R & I: How do you propose to resolve this all-Russia problem? I believe there is one way out. It’s easy and difficult at the same time. Russia needs to launch its own production of jewelry! It is a unique country with no problems with raw materials or labor force. By setting up specialized companies, you can reach several objectives: employ many people in craftsmanship, make jewelry out of raw materials produced in this country and replenish the Russian budget. I plan to set up such a company within two years, a small firm at first. I believe this plan is quite feasible. R & I: What difficulties do jewelry makers encounter in Russia at present? There are many difficulties. High manufacturing area lease rates are the first. In Russia, the price of rent exceeds that in Central Asia or Dubai by four times. Also, there are no young people to employ. The labor force at Russian jewelry manufacturers’ ages inexorably; skilled workers retire, and the state has no coherent system to train new ones. Also, Rus- sia uses old cutting technologies; few invest in technologies which increases the price of the product. R & I: You said the existing Russian companies lack personnel, skilled workers at jewelry-making companies are aging, new employees are not coming, and there is nobody to work… Whom are you going to hire? Russians, of course! Seriously, I will carefully select workforce for my company, handle their training, and see to it that they acquire quite high skills. You know, I pin special hopes on Russian women; they have good eyesight, strong hands yet soft and gentle fingers. They will cope with this work well. R & I: Do you think this practice is possible in Russia? I think so. There are many abled-bodied persons who can afford gold items with gems. Many female employees have money and are ready to spend it on jewelry. Not without reason is it said that diamonds are women’s best friend. Simply Russian women have never been offered this kind of service. I believe we’ll make a success. R & I: How do people in your country feel about jewelry? Buying gold, making gold and wearing gold is an art. Everybody knows it and behaves accordingly. Our people do not buy gold to wear it forever. The item can be returned to the shop to trade in for a new one. RUSSIA&INDIA 4-2012 57 ECONOMY & BUSINESS ECONOMY & BUSINESS TREND TREND The Precious Attraction of India By Roman BARASHEV A silver bracelet with amethyst or a garnet necklace used to make an excellent present for women in the USSR. The wives of numerous employees at the Soviet Embassy, consulates, trade mission, the State Committee of the Council of Ministers for Foreign Economic Relations, journalists and specialists engaged in Indian-Russian construction projects bought up commercial quantities of precious and especially semi-precious stones. Soviet ladies allegedly brought up with strict Communist morals and indifferent to items of luxury and capitalist values, ferried bagfuls of Indian gems to their Motherland. Buying any jewelry is no problem in Russia at present. But dozens of thousands Russian tourists prefer doing it on their own in India. T he Moonstone by Wilkie Collins and Sir Arthur Conan Doyle’s the Sign of Four which many of us read in our youth are centered on Indian gems, but these stories are fiction. Russian tsars had real gems, such as the Orlov and Shah diamonds. The 194.8-carat Orlov diamond is set in the tsar’s scepter, a symbol of authority specially produced by the date of the coronation of Emperor Pavel I in late XVIII century. It was found in India and belonged to Jahan Shah. The dia58 RUSSIA&INDIA 4-2012 mond changed hands many times, and, according to one version, Russian Count Orlov bought it in the XVIII century and gave it to Empress Catherine on her name day in 1773. Another version has it that Catherine bought it herself at the treasury’s expense, but arranged gift-giving to conceal the spending. The story of the Shah diamond is tragic for Russia. In 1829, mutinous Persians demolished the Russian Embassy, killing 37 of its personnel, including famous Russian diplomat, playwright, poet and composer Alexander Gri- boyedov. To make up after the diplomatic scandal, the Persian Shah sent his grandson, Prince Hozrev Mirza with precious gifts to Russian Emperor Nicholas I in Petersburg. The gifts included an Indian 88.7-carat diamond. Both gems are kept at Diamond Fund of the Moscow Kremlin. Russia has used Indian gems for ages. For example, Pink Tourmaline is set in the 1685 Gospel at the Treasury of the Trinity Lavra of St Sergius, a major Russian Orthodox Church center. Legends of Indian gems abound, probably because India has been famous for them for millennia. Jewelry was found during the excavation of Mohenjo-daro, a Harappan civilization center which flourished in the 23 rd –19 th centuries B.C. Some stories said Indian gems were brought to King Solomon along with other exotic goods. India’s present-day jewelrymaking industry is the most dynamic sector, growing at 15 to 20 percent a year, and accounting for the largest portion of hard currency revenue. Consequently, the Indian authorities pay most serious attention to it. At least five colleges train specialists in this area. These include the Mumbaibased Indian Institute of Gems and Jewelry (IIGJ) and the Gemmological Institute of India (GII). The first has operated for more than 30 years, and the second for over 40 years. India is the largest world exporter of jewelry. According to the Diamonds & Gold of Russia magazine, India accounts for 60 percent of world exports of precious stones in value terms and 90 percent in quantitative terms. The country takes care to develop and strengthen the domestic market. It is the primary objective of the All India Gems and Jewelry Trade Federation (GJF). According to its chairman Bachharaj Bamalwa, the Federation brings together more than 300,000 producers, and wholesale and retail traders. It would be wrong to assume that gems trade is limited to large cities, where the population’s incomes are higher. City trade only makes up 30 percent of retail trade, with villages and small town accounting for the remaining 70 percent. India’s gems and jewelry industry employs 1.3 million people. Liking gems is a national trait. Still, only a visit to India can give an idea of how rich it is in precious and semi-precious stones. A personal impression would not be as precise as statistics, yet it is far stronger. I first visited India for several months of pre-graduation practice more than three decades ago. The first thing I did was take a walk through the Jan Path market in New Delhi where I purchased a blood-stone set in a silver frame. RUSSIA&INDIA 4-2012 59 ECONOMY & BUSINESS Our University Hindi teacher told me before my trip to India that it was my horoscope stone. Years later, I learnt that blood stone was a symbol of wisdom and courage, and helped keep optimism and willpower. I might lack all these virtues, for very soon I lost my bloodstone. But that happened in Soviet times far back in the past, when buying Indian gems in Russia was next to impossible, while tourist trips to India were a rare exotic opportunity. The lucky ones, who did travel there in groups, could hardly afford one semi-precious stone because of a limited amount of local currency they could use. There was however robust demand for Indian gems among numerous personnel at Soviet missions, journalists and specialists who could afford them. The demand tended to prevail among women and was draining family budgets. Soviet ladies allegedly brought up with strict Communist morals 60 RUSSIA&INDIA 4-2012 TREND and indifferent to items of luxury and capitalist values, ferried bagfuls of Indian gems to their Motherland. Men used to bring home Indian jewelry as presents. For example, a silver bracelet with amethyst or a garnet necklace made a splendid present for women in the USSR. Indian gems are popular not just among Russians. While exploring the Red Fort shopping mall in New Delhi, I saw many female tourists from America and Europe, who were buying up jewelry with as much enthusiasm. No ideology can overcome women’s love for gems. For the Indians, the gems are more than decoration. They are believed to have magical significance and influence a person’s life. Back in ancient times, they designed navaratna, a combination of nine stones as the symbols of nine planets in Indian astrology: pearl for the Moon, emerald for Mercury, ruby for the Sun, diamond for Venus, red coral for Mars, blue sapphire for Saturn, yellow sapphire for Jupiter, cinnamon stone for Rahu and cat’s eye for Ketu. Navaratna protects from trouble and has a beneficial influence upon a person’s life. It is also a ritual object when put into the foundation of a house or a temple. In ancient India, the magical properties of gems were used in the treatment of various diseases. According to ayurvedic concepts, illnesses befall a person because of disharmony with the universe. They say the gems draw the energy of the universe and help a person to restore harmony. Jewel therapy is still practiced in India. Buying any Indian precious or semi-precious stones is not a problem in Russia at present. But dozens of thousand Russian tourists who travel to India every year prefer to do it on their own. Even if you are no lover of gems, walk around shops with piles of gems of various colors in any Indian town. You will feel their magic. CULTURE DETAILS Sikhs, the disciples of chieftains and wise men By Vladimir SKOSYREV The country with a population over one billion only has 20 million Sikhs. Yet they take a prominent place in India’s politics, economy and culture, as we can see from the life and career of Indian Prime Minister Manmohan Singh. Moscow community A Sikh in Moscow is not a rare sight nowadays: a man with a broad and thick beard, a large turban on his head and an indispensable iron bracelet on the right hand. Sikhs are India’s third largest religious group. A Sikh temple is called gurdwara, which literarily means “guru’s door”. When outside of their homeland, the Sikhs take care to keep the traditions of their forefathers. The largest Sikh diaspora centers are found in Canada, the United States, Malaysia and East Africa. In the modern Western world, Sikhs are often mistaken for Muslims because of their trademark turbans. The community of incoming Sikhs in Russia, mostly business persons and students, was started in the 1990s. A Gurdwara committee was registered in Moscow in 1997. The Moscow-based Sikhs have no temple of their own yet, but their praying assemblies – sangats – can be held in any quarters which have the Adi Granth holy book. The Gurdwara Committee Moscow, a religious organization of Sikhs that brings together some 500 members, mostly business persons, was registered in Moscow in May 2003. The Sikhs welcome any visitor, regardless of his nationality or faith. Reading the Adi Granth holy scripture, singing hymns, and partaking consecrated food put you in the atmosphere of spiritual harmony and love. Founder Teachers and the Adi Granth Sikhism, as a religious movement, originated in northwestern India in the beginning of the 16th century. Its founder was Guru Nanak, born near Lahore in 1469. He travelled extensively, and even visited Mecca. He settled in Punjab in the beginning of the 16th century where he began to propagate his new teaching. He and his successors set up a well-organized religious community of the Sikhs. The Sikh religion existed in the form of successive veneration of ten Gurus from 1469 through 1708. The 10th teacher – Guru Gobind Singh proclaimed the end of the Guru cult and said the Guru Granth Sahib, or Adi Granth, was the last Guru henceforth and for ever and ever. The Adi Granth holy scripture, written and compiled by the Gurus, is an authentic holy text. Nobody is permitted to change a line or even a comma in the 1,430-page Holy Scripture. Sikh’s outlook for God, life and people The Sikhs believe in one God, all-powerful and all-pervading. Nobody knows His real name. The Sikhs worship by meditating. No other deities, demons or spirits are worthy of worship, according to their religion. Professing love and brotherly relations to all people on Earth regardless of their ethnicity makes groundwork for their outlook for life. What kind of person should an orthodox Sikh be? Firstly, they must be good people, and seek and manifest their God-given Faith and Love, be free in their will and respect the freedom of others. Love must be manifested in daily deeds, RUSSIA&INDIA 4-2012 61 CULTURE CULTURE DETAILS in the simplest and routine things. Unsurprisingly, Sikhs are always optimistic, joyful and hopeful. Any person regardless of his ethnicity, sex and origin can embrace Sikhism. The Sikhs must keep on them five objects (five Ks): Kesha – uncut hair hidden under a turban, Kangha, a wooden comb worn in the hair, Kara, a steel bracelet, Kachla, undergarments, and Kirpan, a sword or a dirk worn under garments. The rule is mandatory. A sword is never used for asserting one’s power, threatening or violence on others. The Sikhs cremate their dead. After cremation, the ashes of the dead person are poured into a channel or river. There are no monuments to the dead. After death, the soul rejoins the God. Sikhism has no concepts of afterlife heaven or hell, retribution, sins, karma and rebirth. The Sikhs believe the teaching of retribution in the next life, necessary repentance, cleansing of sin, fasts, chastity and “good deeds” are an attempt by certain mortals to manipulate others. Golden Temple The key shrine of the Sikhs, the Golden Temple, is in the Punjab town of Amritsar. After the death of 62 RUSSIA&INDIA 4-2012 Guru Nanak in Amritsar where he lived and preached, it became the place of pilgrimage and a shrine for the Sikhs. Its construction began under Guru Arjun (1581-1606). A settlement around it later grew into a large city called Amritsar, by the name of the lake. The Golden Temple sits in the center of Lake Amritsar. The temple is joined with the shore with a narrow marble bridge. Beginning from the 17th century through the middle of the 18th century, the Sikhs waged a constant war with Muslim armies. The Muslims destroyed the Sikh temple several times, but the Sikhs, in rebuilding it, only made it larger and more beautiful. During the rule of Maharaja Ranjit Singh (1780-1839), the temple was adorned with marble, gilding and many gems. The dome was covered with a massive 400-kilogram gold sheet, which earned it the name Golden Temple by which it is known nowadays. The Golden Temple is an example of combined Indian and Muslim architecture. Under the Sikh tradition, there are no objects or images inside the temple, save the Adi Granth Holy Book. It is kept under a canopy on a pedestal adorned with gems. The service in the temple runs from daybreak till dawn. It begins in the morning with the reading of the first page of the Book and ends with the reading of its last page. Repast at the temple Before entering the temple, the pilgrims immerse themselves in the water of the holy lake. It is a symbolic purification of the soul and is not viewed as bathing. Upon entering the temple, the believers take off their footwear and cover their heads with a rectangular yellow kerchief. Then then take a bow with palms held against each other to the holy book, say a prayer, and sit down on the floor to hear the book read. The Amritsar complex comprises several temples and hotels for pilgrims and a huge kitchen which caters for all the visitors regardless of nationality, religion or caste. Daily attendance of the temple reaches up to 20,000 people, and on holidays, their numbers increase five-fold! A foreigner is allowed to enter the temple; they must have their heads covered and take off their footwear before walking in. I was lucky to see both the kitchen and the refectory. When I, in a crowd of pilgrims, began to move along the marble bridge across the pond, the dome of the shrine shone with gold in the sun, and multicolor garments of women and blue and scarlet turbans of men made fanciful reflections in the water. Amplified through loudspeakers, the tune of the hymns sang by males underscored the feeling of festivity in what was transpiring. Suddenly the singing stopped and the pilgrims slowly trod towards the hall where everything was ready for dinner. The Golden Temple is not merely an abode for believes, it is probably the world’s largest mess hall offering meals for free. Bearded barefoot men holding wooden spoons, each the size of an oar were making a ritual of cooking around the steaming pots with pottage of lentils, massing over three tons. They were putting generous portions of onions, garlic and red hot pepper in a tasty smelling soup. Before repast, thousands of volunteers had washed floors, cut onions, shelled peas, and peeled garlic. They had also washed 40,000 metal plates and spoons. Each can have a meal at this place without paying a rupee. Such is the tradition. The communal kitchen was founded by 3rd Guru Amar Das in the 16th century. Its purpose is DETAILS to put all people on equal footing. Amar Das wished the Sikhs helped each other and were ready to work not only for themselves, but also for the common good. In the museum set up at the temple, there is picture showing a Guru’s wife. She works at the communal kitchen together with ordinary people. Any person, regardless of his faith, can have a meal at the temple. In this sense, the abode is a symbol of variety and tolerance characteristic of India. Bloodbath in the temple The Golden Temple has not been a quiet abode all the time. In the 1970s and 1980s, part of the Sikhs mutinied, demanding a separate state in Punjab. The leader of a bellicose sect with his followers took shelter in the temple. Prime Minister Indira Gandhi ordered the army to clean it of the armed insurgents in 1984. Many militants were killed in the operation, and the temple was damaged. One tragedy came hard on heels of the other. Two Sikhs – the commandos from Indira Gandhi’s guard – killed her in revenge for ordering to storm the temple. These upheavals did not rock the state’s foundation or its loyalty to secularism. In the Indian army, the Sikhs still account for at least 20 percent of all posts. Prime minister is a Sikh Moscow and New Delhi alternatively host top-level meetings. Last year, Indian Prime Minister Manmohan Singh visited our country. He is well-known in Russia, not only because of the post in the state which plays an increasingly larger role in international affairs. Manmohan Singh is also known as an outstanding economist. As the finance minister in the beginning of the 1990s, he carried out reforms to create a favorable investment climate in India. It is thanks to these reforms that the Indian economy sharply increased its growth rates. This outstanding statesman was born 79 years ago in Punjab to a family belonging to the religious community of the Sikhs. Before him, all Indian prime ministers were Hindus. Manmohan Singh became the first Sikh prime minister. There are just 20 million Sikhs in the country with a population over one billion. Yet they occupy a prominent place in India’s politics, economy and culture, as the life and career of Prime Minister Manmohan Singh show. RUSSIA&INDIA 4-2012 63 CULTURE CULTURE DETAILS DETAILS Mumbai is the “Gateway of India” Mumbai is the most cosmopolitan city in India, the business capital of the country where the famous Bombay Stock Exchange operates. And it is also a whirlpool of unbridled exotic experiences that pump you up with adrenalin 24 hours a day. By Sergei STROKAN W hen we say India, we mean Goa. This is what India still is for the majority of Russians who continue to regard this former Portuguese colony on the Indian Ocean as the “Gateway of India”. However the real “Gateway to India” is an hour away from Goa by plane, in legendary Mumbai (Bombay until 1996). Surrounded by the ocean on one side and by the jungle on the other, Mumbai is Goa plus, so to speak, one of the strangest cities not only in India but also in the world. The local lore is intertwined there with the most bizarre external influences, which makes this megalopolis with a population of 15 million the most cosmopolitan place in India. Be64 RUSSIA&INDIA 4-2012 ing the capital city of the State of Maharashtra, Mumbai gives you a plenitude of feelings and exciting experiences, thus proving that there is more to India than just tea, monkeys and elephants. Every person discovers this city in his own way. And yet, it is better to start in the central part of Mumbai, which was built by the British and can take you back to colonial times: Victoria Terminus, the largest railway station in Asia, the building of the University, the old edifice of the Hotel Taj Mahal on the embankment, the Gateway of India, the Triumphal Arch built to mark the arrival of King George V of England in 1911. Particularly impressive is the University complex: the library crowned with a tower with a chiming clock and the Convocation Hall designed by British architect Gilbert Scott. Institutions and stores in Mumbai open quite late, and the streets are surprisingly empty in the morning, allowing you to take a quiet stroll before the midday clamour and heat deafen you and force you back to your hotel. After catching your breath, you will soon feel like venturing out again after lunch to get drawn into the whirlpool of city life. A guide will take you, for a token fee, to the quarter which, although being in Downtown Mumbai, lives its own off-the-beaten-track life. It’s hard to believe that all this is happening in the city that is reputed to be India’s financial and business centre, just two steps away from the famous 19th century Bombay Stock Exchange. It is the 21st century, but this place is filled RUSSIA&INDIA 4-2012 65 CULTURE The city got its name from Goddess Mumba Devi, the patroness of the indigenous fishing people who lived there since time immemorial. It was built on seven swampy islands, using sand and struggling with the water and the jungle. The city sprawls in a horseshoe form around a picturesque bay, especially if seen from above, with a broad stretch of sandy beaches behind the seafront balustrades. with cramped homes, tiny stores, tailor, ironing and barber shops, and small temples of different religions. In front of one of them there is a cow lying in the road and several women next to it, offering you a wisp of hay to feed the sacred animal. One will also discover many surprising things when learning about different faiths in India. For example, Mumbai is the only place in the country where the Parsis live. They believe that the deceased cannot be buried or cre66 RUSSIA&INDIA 4-2012 CULTURE DETAILS mated because this will defile the sacred elements. Dead bodies are left in special places to be eaten by vultures. There is a part of the primordial jungle left intact in one of the city parks where members of the sect can carry out their rituals and that can be entered only with a special pass. Another of Mumbai’s landmarks is a huge open air wash house called Dhobi Ghat. It’s a very unusual sight: tucked in between a railway station and dwelling houses, there are numerous concrete wash pens, with hundreds of men toiling away as only males can work as laundrymen. They thrash the clothes and then hang them out to dry. The sight of Dhobi Ghat at the sunset is quite striking. Darkness falls early in India. But when the heat subsides and dusk sets in, Mumbai and you with it begin to live a different life. Unlike, say, New Delhi, which seems to be a hick town after Mumbai and goes dormant after nightfall, this place on the coast of the Indian Ocean bustles with nightlife. In old Soviet times, our movie houses played the Indian film “Bombai Raat Ke Bahon Mein”. Thirty years on nightlife in Bombay, now Mumbai, appears to be much more vibrant. When numerous hotels, restaurants, nightclubs and discotheques along the coast turn on their lights, wealthy tourists and the local aristocracy start streaking in. Dazzlingly beautiful women and their male partners in rich clothes, both European and ethnic, flutter out of sparkling limousines. Many of them are film stars. Mumbai is the centre of India’s film industry known as Bollywood. This is where famous actors live. They work hard during the day, starring in three or four films at the same time (Bollywood cooks films like cakes), and relax during the night, drifting from one place to another. If all of a sudden you feel nostalgia for Bangkok at night, the easiest solution would be to go to the red light area. And yet it would be wiser to choose one of the better places that abound in Mumbai. For example, if you are not in for Indian food, the Hotel Grand Maratha has an excellent Lebanese restaurant called Maroush, which is known not only for its cuisine but also for a belly dance performed by Mexican dancer Amar. She makes two 30-minutes appearances during the night, walking between the tables and stirring passions. After Maroush, you may want to opt for a quieter time and move one store down to the Bombay High bar where you can listen to live mu- DETAILS boat. The island’s name comes from the huge statute of the elephant that was first seen by the Portuguese upon landing. The temple consists of seven caves carved in a mountain, with Mahesamurti being the most spectacular one: a 27 by 27 meter square is supported by rows of stone pillars. Rock-cut sculptures of Shiva in different reincarnations are seen in niches: Shiva slaying Andhaka; Ardhanarisvara (a half-man, halfwoman representation of Shiva); Shiva as Nataraja performing the Tandava (cosmic dance); Kalyanasundaramurti, depicting Shiva’s marriage to the goddess Parvati; Rudra-Shiva, the Destroyer. Thirty-five kilometers from Mumbai are Kanheri Caves, a series of caves with rock-cut sculptures dating back to the 2nd-9th centuries. Unlike Elephanta, this is a Buddhist temple. Another complex of Buddhist caves is located in Karli, 114 kilometres from Mumbai, and consists of several halls created over two periods starting nearly 2,000 years ago by monks who sought shelter during rains. The facades are decorated with ornaments and paired figures. Although located seemingly close, it may take four hours to get to Karli. But that can’t be helped as roads in India, including those leading to its business capital, are congested not only with cars but also with animals. sic performed by touring groups, or you can order kebab and drive away to Night Lover in the eastern part of the city. Its only downside is high prices (free entrance but a bottle of beer costs 400 rupees, or $9, which is an exorbitant price by Indian standards). It is better to stay in five-star hotels in Mumbai such as the Taj Mahal or the Oberoi Towers, which will make you feel like an Indian maharaja. On the other hand, four-star hotels are also quite decent. One of them is the Ambassador with a rotating restaurant on the 12th floor, offering a breathtaking view of the city and the bay area. Mumbai’s vicinities deserve a look too. The easiest way is to take a trip to Elephanta Caves: a ferry leaves from the Gateway of India and an hour or so later brings you to an island with one of the most famous Shiva temples. To avoid crowds, you may want to start off early to catch the nine o’clock RUSSIA&INDIA 4-2012 67 CULTURE CULTURE PHARMACIA AYURVEDA: old is gold By Mariam SALGANIK Ayurveda, Science of Life in Sanskrit, is a very ancient scientific system of medicine that developed, flourished and continues to be widely used in the Indian Subcontinent. To go back to the sources of Ayurveda one has to delve really deep into history, because it was conceived about 2500 years back in the times of the Vedas. Sometimes Ayurveda is even referred to as the Fifth Veda. 68 RUSSIA&INDIA 4-2012 A yurveda’s conceptual base was formulated rather early in its classical texts and never changed since that time. However, this is not to say that Ayurveda remained static, it went on developing and expanding but strictly on the foundation of the initial concepts: like treating organism as a whole and not as an aggregate of parts, or regarding human beings as cosmic entities containing all, that cosmos con- tains and staying in constant interaction with it. Till the last decades of the last century Ayurveda was practiced in the Subcontinent, but after 1974, when the World Health Organization has invited attention to traditional systems of medicine, Ayurveda along with Chinese and Tibetan medical systems started steadily gaining awareness in the West. At present Ayurveda is enormously popular outside its homeland, particularly in the USA and Europe including Russia. Although in Russia Ayurveda has been virtually unknown, say, 15 years back, now it turning into a household word. But then a question might be asked: what made this ancient system of medicine popular in developed, technologically advanced countries with well established health-care networks? What makes tens of millions prefer spending their money – a lot of money too! – on this outlandish treatment? And since the market – hot as it is – is showing no signs of cooling, it looks that patients are not disappointed with the results of Ayurvedic medication! The very first and easy explanation that immediately springs to the mind is the mounting mistrust of and confusion over the virtual avalanche of new medicines churned out by the international pharmaceuticals. At exorbitant prices too. Yet, there is another explanation of a more profound nature: Ayurvedic approach is different from that of the modern medicine. While modern medicine with all its spectacular progress becomes more and more specialized and disease-oriented, Ayurveda remains non-specialized and patient-oriented, which gives it a certain advantage in management of chronic and gerontal ailments. Paradoxically, it is the progress of modern medicine that increases the aged segment of population especially in developed countries, which gains more from Ayurvedic treatment than mainstream medicine can offer. PHARMACIA According to Ayurveda, macrocosmos in a living being transforms into three doshas – say, into three forms of biological energy: vata, that controls all our voluntary and involuntary movements, pitta, which is our biochemical lab, and kapha – that keeps together and lubricates our system. When the three of them are in balance, we are physically and mentally healthy, while their imbalance means disease. Hence, all Ayurvedic treatment is aimed at retention or restoration of this balance. So – what is Ayurveda? Let me start with a quote from a classical Ayurvedic text: “mind, soul and body in combination are like a tripod upon which the world is sustained”. As for death: it is the reversion of matter consisting in living organism to its original state. Thus, a living organism is a micro-cosmos that returns to macro-cosmos in order to sustain the eternal turnover. RUSSIA&INDIA 4-2012 69 CULTURE CULTURE PHARMACIA Contrary to general notion, Ayurveda is not herbal medicine. It uses herbal materials along with mineral stuff and other sources. And Ayurveda does not advocate vegetarianism – in fact, in many cases classical texts prescribe medicated meat soups as part of treatment. So it is wrong to presume that vegetarianism is obligatory for Ayurvedic treatment or for Ayurvedic way of life. The maintaining or restoration of health depends on our consumption of environmental matter in the right form, proportion, combination and at the right time. The timing is very important, because of doshas’ daily, seasonal and age-related fluctuations. But what is all-important is the diet. It is said in the classical texts: “If you keep a proper diet, what is the need for treatment? If you don’t keep a proper diet, what is the use of treatment?” Ayurveda insists that all diseases are psychosomatic, since body and mind are in constant reciprocal action. However, the tenet does not cancel individual predisposition for maladies to affect body rather than mind or visa-versa. This, as well as one’s proneness to 70 RUSSIA&INDIA 4-2012 certain ailments or immunity to certain ailments, depends on individual configuration of doshas, or a person’s prakriti, to use a Sanskrit term. According to Ayurvedic theory, each one of us is born with a certain predominance of one or two doshas that determins our physical and mental characteristics. Doshic configurations are as individual and constant as our fingerprints, yet people can be classified into several prakriti groups in accordance with doshic dominance. Ayurvedic physician, by identifying your prakriti would know what ailments you are predisposed to – and likewise which ones don’t threaten you – and advise you on your individual diet, treatment, way of living etc. PHARMACIA Does it sound fantastic, or too good to be true? In 2007-09 a group of Indian and Russian specialists including geneticists, conducted a study aimed at checking the ancient prakriti theory by methods of modern science. The results are highly encouraging and now the institute of Genomics in New Delhi is working to develop a diagnosticum that would make it possible for a physician – not necessarily an Ayurvedic one – to diagnose your predisposition for cooperated with Indian colleagues. Regretfully, with time the pendulum swung far into the commercial side: mushrooming Ayurveda centers were – and are – less interested in study and research than in quick money-making. Well, the process of commercialization of Ayurveda is not confined to Russia alone! At any rate, nowadays Ayurveda is well known in this country and people can benefit from it. However, having mentioned the Indo-Russian team’s successful erly the drugs produce no adverse by-effects – as opposed to mainstream medicines. It must be said that efficacy of Ayurvedic drugs – time-tested for millennia! – creates a great demand for them, which by turn creates environmental problems as it is only wild-growing plants that are used in drugs. So far, all attempts to replace them by estate plants failed. An initial meeting with an Ayurvedic physician lasts an hour chakarma or Five Actions, procedure, designed to cleanse the system on cellular level, to strengthen and rejuvenate it. The mounting popularity of Ayurveda could not but mount the black side of it. The commercialization of Ayurveda outside its homeland, development and spread of what is known as Ayurvedic tourism or else as Hotel Ayurveda has already made Indian authorities quite uneasy about the trend of compromising this great diseases and help you to keep out of harm. It would be enough to send your blood sample to a lab to identify your prakriti. They say that Russians are slow to harness but fast to ride. The description fits Ayurveda’s introduction to Russia. Russia was a latecomer to Ayurveda-mania in the West, but in 1996 Dr. Svetlana Mayskaya invited to Moscow a team of Ayurvedic physicians from the famous Arya Vaidya Sala in Kerala headed by Professor C.R.Agnives to practice and teach Ayurveda. It was professor Agnives who actually rocked the cradle of Ayurvada in Russia. Ancient system of medicine was taught to medical students and doctors, Ayurvedic research was conducted in a number of Moscow institutes that research, I must also say that the mammoth pharmaceutical companies of India like Dabur India Ltd, Zandu Pharmaceutical Works or The Himalaya Drug Company with its distribution division in America (Himalaya USA)– to name but a few, are investing a great deal into Ayurvedic drugs research and development. Well, buying Liv-52 or Memoria or some other equally popular drugs in Moscow, we seldom realize that these are ancient Ayurvedic medicines in modern forms. Ayurvedic drugs are composite, some of them consist of dozens of components. Only natural materials are used in Ayurvedic drugs– for instance, calcium is made of burnt seashells. If given by a physician and taken prop- or longer, because he –or she – has to ask you detailed questions about your health, diet and lifestyle. Then he – or she – will listen to your pulse. In Ayurveda 12 different pulse points are assessed. The appearance of your skin, lips, nails, and eyes is also observed. Mind you – no x-ray, no blood tests, nothing of the sort! An Ayurvedic physician doesn’t need them. Then the physician can work out an individualized treatment plan, which includes diet, or rather seasonal diets, yoga exercise, meditation, and often massage. Massages are a very important part of Ayurvedic treatment. There is a whole array of them at the physician’s disposal, yet the crown of Ayurveda is the pan- historical legacy. Steps are taken to control the self-styled medical gurus as well as the drugs they are using. Alas, it is easier to introduce control measures than to convince the gullible that Ayurveda is a system of medicine – not a universal panacea! RUSSIA&INDIA 4-2012 71 CULTURE CULTURE DETAILS Krishna Followers in Russia There are over 100 large Vaishnava centres and several hundred spiritual groups in Russia. The Vaishnavas attach great importance to family values and bring up their children to be tolerant, undefiled, free of bad habits, and respectful of nature and Holy Scriptures. The Russian Centre of Societies for Krishna Consciousness and spiritual centers hold religious services and teach canonical texts on a regular basis. The fundamental principles of Vaishnavism are purity (bodily and mental), severity with regard to sensual desires, pursuit of truth, as well as mercy and compassion. By Vladimir IVANOV I n November 2011, Indian President Pratibha Devisingh Patil congratulated Russian Vaishnavas, the followers of the Society for Krishna Consciousness, on the 40th anniversary of this spiritual movement in Russia. “Over the last several decades, ISKCON [International Society for Krishna Consciousness – Ed.] has played an important role in 72 RUSSIA&INDIA 4-2012 popularizing the noble and eternal message of Srimad Bhagavad-Gita and has contributed to establishment of spiritual harmony in many countries”, Ms Pratibha Patil’s message reads in part. The fact that you have been engaged in this activity for such a prolonged time attests to your determination”, Ms. Patil went on. “I congratulate ISKCON Russia and hope its followers will con- tinue their service to the people of Russia with the same enthusiasm as before. I extend my best wishes to the worshippers of the Lord Krishna in Russia in connection with this joyous event.” The public relations department of the Russian Centre of Societies for Krishna Consciousness said that this spiritual movement, which has become a symbol of religious freedom in the post-Soviet space, is today developing vigorously in the sphere of social service, as well as cultural and educational activities comprising, among other things, strengthening of RussianIndian relations, propagation of a healthy lifestyle without alcohol, cigarettes, drugs, etc. The Russian Vaishnavas account for a large proportion of Russian tourists to India. Twice a year, many Vaishnavas make pilgrimages to the holy places such as Vrindavan and Mathura (the birthplace of Krishna), Nabadwip (the birthplace of the Golden Avatar Sri Chaitanya) Jagannath Puri, the Himalayas, and southern Indian temples and shrines. A week of solemn, spiritual and cultural events in Moscow on June 12-19, 2012 will be the climax of celebrations marking the 40th anniversary of this spiritual movement in Russia. The festival will for the first time involve Soviet Vaishnavas (as the Krishna followers are usually referred to). The guests of honour will include Shyamasundara Dasa (Sam Speerstra), who accompanied Prabhupada on his trip to the Soviet Union. Sam was a close friend of George Harrison, the lead guitarist for Beatles, and at his request was with him in the last minutes of his life in November 2001. Several hundred guests from different regions of Russia and other countries will participate in the celebrations. Their organisers want to make the festival a meeting place for different generations of Vaishnavas in an attempt to take a fresh look at the role, objectives, goals and prospects of Vaishnavism in Russia and the world. Meetings, discussions and interviews with Vaishnavism trailblazers are scheduled, which should certainly be interesting to both those who study the history of this movement and those who have just come to know it. During the festival, two Russians will be initiated as Sanyasi (the highest monastic rank in Hinduism), thus bringing the total number of Russian Sanyasi to four. DETAILS Exactly 40 years ago, A.C. Bhaktivedanta Swami Prabhupada (1896-1977), an Indian religious leader and enlightener, visited the Soviet Union. The Indian preacher could do it despite the iron curtain and close attention to foreigners from secret services, which acted all the more rigorously when it came to dissidence. In fact, throughout the Soviet period any religion was considered to be the antipode of the official ideology and was hardly welcomed, to say the least. RUSSIA&INDIA 4-2012 73 CULTURE CULTURE CINEMA Russian actor to play the role of Raj Kapoor Singer Vladimir BRILEV will play Raj Kapoor in an Indian biographical film. The shooting is to begin in Yekaterinburg in mid-2012, and will continue in India and Bali. The Russian artist assures he is ready as can be for work in Indian cinematography: during the interview he demonstrated to an R & I correspondent his singing and dancing skills. By Anna GEROYEVA R & I: You are going to play the role of Raj Kapoor, a theatre and film actor, scriptwriter and producer, who won India’s all possible awards and regalia in his lifetime, and is known as the father of Indian cinema. Do you think you are ready to play such an outstanding personality? I think I am (smiling). As Kapoor, I have high biological energy, characteristic of the personalities who achieved everything through perseverance. Life was hard on me: I had a difficult childhood and youth, I starved for days on end, my work was exhausting, I had no home of my own, 74 RUSSIA&INDIA 4-2012 staying at railway stations overnight, and eating round fried meat pies and drinking fizz for dinner… I’m just 26, and by this time, I’ve overcome and achieved much; I have a house of my own, I have money, lawyer’s education and even a PhD degree. I might have assumed I’m established in this life and relax. But my childhood dream – to become an artist – has never given me peace. I worked much towards making it come true; I have become an acknowledged singer and won several professional awards and that despite the dire predictions by spiteful critics that neither my songs nor I have a future! I combine concert performances with studies at the Russian Academy of Theatre Arts (GITIS) to make my other dream come true – becoming an actor. That is why I unconditionally accepted Bollywood’s proposal to play the role of Raj Kapoor in an Indian film! R & I: Is it the first offer in your life to star in a film? Russian producers invited me, too. I refused because I did not find their scripts interesting enough. R & I: Why do you find starring in an Indian film so appealing? Do you wish to be a celebrity in a foreign state, or gain acting experience, or, perhaps, is it a large fee? Definitely not the money. Under the contract, my fee for the film is purely symbolic: $ 1. Everybody is astounded to hear this sum. Before signing the contract with the studio, I decided it would be fair if I didn’t get much money for my work. R & I: Fair to whom? To myself, in the first place and the divine forces that are giving me the opportunity to realize my longstanding dream to play in a film. My childhood dream is miraculously coming true – isn’t it enough for a prize? Indeed, of the film budget of 220 billion dollars, a considerable sum was due to me, but I refused to take it in favor of low-income persons, giving away 80 percent for charity and another 20 percent for post production, the so-called free picture runs in India. I’m hoping that after starring in this film, I’ll start my acting career in Bollywood. Indeed, I dream of becoming an Indian cinema actor. I promise to make a 100- percent effort; I will be working for viewers. R & I: Do you think the Indians will react adequately to you, a Russian actor; are you sure you’ll be able to forge a good contact with them? Those people belong to other culture. They have a different mentality and world outlook… I don’t quite agree that there is a big difference between the Russian and Indian mentality. We are much alike, believe me! We are spontaneous, sincere, and capable of love. Thanks to this likeness, I’ve already established a contact with an Indian audience! Perhaps, it happened because India is part of my soul – I’m being sincere. Indians are truly my kin. I often visited that country with guest performances, up to 30 times a year. And I never got tired, on the contrary, I sort of charged from the Indians who did not speak Russia and did not understand the texts of my songs, yet were very sensitive to every word or note. Every time I was leaving the scene as if charged, I wished to sing for the audience again and again. It is an indescribable feeling, when thousands of people sing together with you. R & I: You visited India many times, could you imagine you’d be working in Bollywood? When my friends and I flew to New Delhi for the first time, I dreamed of visiting Mumbai. As we were still on the plane I was trying to persuade everybody to visit the place for a couple of days. I wished to see the picturesque city and Bollywood. But it so happened I saw film studios and ethnic flavor in other Indian regions. Yet we did visit Mumbai. I was set to see the sights and a bird’s view of the city then. I was fortunate to be able to get an insight into the country. I fell in love with India from the first minutes of my staying there. On the day of our arrival, I visited a famous Indian producer (it was only later that I learnt he was a person of such renown). Indians are certainly awesome: hospitable, kind and friendly. Meeting guests is a veritable ritual for them, with songs, dances and change of dishes. Indians are surprisingly emotional, which I like a lot. Could you tell about the Bollywood offer? In late September 2011, the RitzCarlton Hotel hosted the third IndiaRussia Business Dialogue forum, a benchmark event with information support by India TV. It was quite significant for me, too: I was a guest and it was there that I met Shahrukh Khan, a famous Indian actor. We had a long friendly talk. It was a stunning offer to me from this famous man, respected in the whole world, to play a role in a new film, and what role, such a hero. I was amazed to see his assistant opening a notebook and asking me to look at the photos, my photos! In those pictures, I looked a bit on the portly side, which bewildered me. “It’s not you, it’s Raj Kapoor. You’re a dead ringer for him,” they told me. I was flattered to hear it. But, to be candid, I did not take the offer very seriously at first. Sometime later, Mr Prakash Jha, president of a large Bollywood company, phoned me in the middle of the night. I had been acquainted with Prakash for years, and CINEMA he told me everybody in Bollywood had confirmed the project and that they were selecting a cast. And the producers of the film really wished to see me playing Raj Kapoor. I hang up and stared at nothing for a while: it looked as if the fate was meeting me halfway. And then I finally believed that this film was no accident and began to take the prospects for working with Indian film producers in earnest. What is the film about? R & I: Under the contract, I cannot disclose script details or the shooting crew’s plans. Briefly, it’s a film about Raj Kapoor’s life, his personal and human dramas, starving in childhood, difficult relationship with the outside world, and the death of his beloved. According to the film producers’ idea, Raj Kapoor must be known in all the corners of the world, therefore many roles in the film are performed by famous European actors. The film will be shot in Russia, India, and, probably, in Bali. The film director will select wonderful scenic places, the plot is fascinating, so I don’t think the viewers will find the film boring. I cannot tell more! R & I: How are you preparing for your role? I’ve read a lot about this personality using various sources and in different languages to learn his biography details. His biography is amazing; I cannot stop wondering at Raj Ka- poor’s magnetism. Comparing his life with what was written in the script of the future film, I see that the authors have brightened up some episodes of his life. But this fact in no way spoils the film, nor does it change my opinion of Kapoor. I’m well aware that this effort will probably be most self-sacrificing in my life. The snag in shooting is that all vocal dubbing is live. I will not lip sync. I will be singing and dancing at the same time! But I am no stranger to it. (He gets up from the table, begins to sing and dance before the amazed café guests and then returns to the table). I’ve seen many Indian films, and I’m well aware of how I will have to work. R & I: Will you have to change your appearance to embrace Raj Kapoor’s image? I look like Raj Kapoor in his youth. The same shape and color of the eyes, the same nose. But he was stouter than I, so I will have to put on at least ten more kilograms. I will have to let my hair grow – my hair curls naturally, but it’s not as thick as the Indian’s. Also, I will have to work hard on my Hindi; I know it a little, but there is no limit to perfection, as they say. I am sure the Russian actor’s starring in an Indian film will bring closer our cultures and benefit Russian-Indian relations in general. We are truly two spiritually close nations. Over time, Russia and India will certainly reassert this fact more than once. RUSSIA&INDIA 4-2012 75 CULTURE CULTURE CINEMA CINEMA Journey Beyond Three Seas By Anna GOLUBEVA 55 years ago the first Soviet-Indian film “Pardesi” (Journey Beyond Three Seas) was released. The alliance of two so different, at first sight, film industries prompted Soviet ideologists to acclaim the movie as “a filmed document showing the whole world one more time that our peoples have shared views on many foreign policy issues”. Now that the world has changed, we recall, with nostalgia, the history of that film and its legendary creators whose efforts make people in both countries remember the “Hindi-Russi bhai bhai!” (Indians, Russians, brothers, brothers!) slogan up to this day. F ilm exchanges for release and festivals, national film weeks and joint productions… Fruitful cooperation between India and the Soviet Union in this field started several months after India’s declaration of independence when Bombay filmmakers invited the USSR to organise a Soviet film festival in India. In late December 1950, an official delegation, which included film director Vsevolod Pudovkin and actor Nikolai Cherkasov, flew to Bombay to help prepare the festival. Two years later Soviet people saw the first Indian film Dharti Ke Lal (Children of the Earth). Khwaja Ahmad Abbas, Bimal Roy, Raj Kapoor, Nargis, Hrishikesh Mukherjee, Dev Anand, Chetan Anand, and Nirupa Roy came to the Soviet Union in 1954. It was then, during that first visit by Indian filmmakers and actors to the friendly Soviet Union, that a remarkable conversation took place in Moscow, marking the beginning of long-term cooperation in film production. “The Soviet side expressed the wish that the joint film be equally interesting in both India and the Soviet Union,” Indian screenwriter and 76 RUSSIA&INDIA 4-2012 film director Khwaja Ahmad Abbas recalled. “Writer Boris Polevoy told me about 15th century traveller Afanasy Nikitin who had reached India and lived for three years among peasants in Maharashtra and in South India. I proposed this story to the Soviet side, and it was approved right way. A series of talks followed. I suggested complete parity in the joint production: two film directors, Soviet and Indian, two cameramen, and so on. We had to start by striking up cooperation between the Indian and Soviet writers: me and Maria Smirnova.” The film director on the Soviet side was Vasily Pronin, who would later create such all-time enduring films as Cossacks (1961) and Our Home (1965). Khwaja Ahmad Abbas and screenwriter Maria Smirnova (who by that time had authored such well-known Soviet films as The Rural Teacher (1947) and The Story of a Real Man (1948), decided against writing a trivial script based on a traditional narration and used instead Afanasy Nikitin’s notes from the journey that had gone down in the history of literature as a monument to the best of the Russian merchantry, praising courage, honesty and great-heartedness. In 1468-1474, merchant Nikitin of Tver made a real trip to India and described in detail its everyday life, customs and traditions. The screenwriters decided to structure the film as a series of episodes forming a fascinating mosaic of the main character’s adventures and deep feelings. It was important to find the right actor for this role. And it is not surprising that young Soviet actor Oleg Strizhenov was chosen to play the courageous trailblazer. By that time he had starred in such hits as The Gadfly (1955) based on Ethel Lilian Voynich’s novel, The Mexican (1955) based on Jack London’s story, and The Forty-First (1956) based on Boris Lavrenev’s novella of the same name and directed by Grigory Chukhrai. Progressivelyminded and extremely sensitive to modern trends, Khwaja Ahmad Abbas thought that Strizhenov was the only possible candidate for the role. In his opinion, no one else but this actor could convey the best qualities of Russian character combined with male charisma and charm. The Indian cast included such talented actors and actresses as Nargis, Balraj Sahni, Prithviraj Kapoor, and Padmini. Champa, a simple village girl with whom the honourable hero fell in love (attracted by her pure soul), was played by renowned Indian actress Nargis at the helm of her career. She was known worldwide from her works with Raj Kapoor. But by that time their tandem (Raj and Nargis starred together in 15 films) had fallen apart. Ironically, Pardesi and Mehboob Khan’s epic film Mother India were Nargis’ last major works. In 1956, she married actor Sunil Dutt, left the film industry and devoted her life entirely to the family, leaving us the memory of her exotic Champa in snow-white attires, with snowflakes whirling around her beautiful magnetising face and Afanasy Nikitin dreaming of showing Russian winter to his beloved one. What an amazing convergence of kindred spirits expressed so poetically by the art of cinema. “When filming in India we saw over and over again that our work was striking a chord with people’s hearts,” Khwaja Ahmad Abbas reminisced. “Very different people – not so rich tradesmen, students, peasants, fishermen, boatmen and even clergymen – tried to help us when told that we were working with Soviet filmmakers.” Khwaja Ahmad Abbas (19141987) is a truly unique personality. He was a film director, a writer, a lawyer, a film critic, a journalist and a screenwriter. Abbas was born in Panipat in the family of a celebrated poet. He graduated from Aligarh Muslim University’s law department and did his LL.B there. Abbas joined the film industry being a well-known writer and journalist who was actively working with the Indian press and publishing his own newspaper for a long time, covering political, art and social problems in the country. He entered the film industry in 1943 as an advertising agent and publicist for Bombay Talkies. In 1945, he debuted as a director with his Dharti Ke Lal (Children of the Earth) based on Bijon Bhattacharya’s Nabanna (Harvest) story about the Bengali famine of 1943. The film shocked with the naturalism of some scenes and earned Abbas the reputation of one of the most progressive-minded Indian film directors. In 1950, Abbas created his own production company and, together with his colleagues, made films that combined the features of both Soviet social realism and Italian neorealism. Film connoisseurs remember that Raj Kapoor’s best social films, including The Tramp, were based on his screenplays. It was when Kapoor went for box office hits and reworked the screenplay for Bobby that the old friends broke up. Abbas did not like the transformation of his characters from poor people, as he had conceived them, into rich men in the film. It’s not surprising therefore that such an uncompromising man who sincerely admired the Soviet Union helped create a film that showed the closeness of the Russian and Indian people. A critical look at Pardesi can reveal obvious political bias, straightforwardness and unconcealed naiveté. But the success of the film in both countries and its striking emotionality and noble concept appear to outweigh any failings in mentality of the bygone era. Unlike western film studios that sought to use Bollywood as a less costly auxiliary component, Pardesi set an example of equal cooperation between two filmmaking powers that had so similar aesthetic and ethical principles that they could treat each other with profound respect and love. RUSSIA&INDIA 4-2012 77 CULTURE CULTURE CINEMA CINEMA Lost Illusions By Anastasia BELOKUROVA and Boris GRISHIN Photo by Boris GRISHIN Rishi Kapoor in Moscow at the premiere of “Chintu ji” N CEO Company “Format A Plus” Alla N. Aristova Indian films were so popular in the Soviet Union that “Sovetsky Ekran” magazine critics often noted ironically: “Sweet passions of nice-looking and idling people”. But Indian films always brought in more cash than any of the highly artistic motion pictures made in the so-called socialist camp, and this fact was never questioned. In the 1990s, Bollywood films gradually disappeared from Russian screens, giving way to American movies that poured into the country. However even though Hollywood productions have swept the new Russian market, interest in Indian films is still there. 78 RUSSIA&INDIA 4-2012 ew Indian cinema was an enigma for the Russian audience at first as no one knew contemporary actors and everyone still remembered and loved Mithun Chakraborty, Dharmendra, Amitabh Bachchan and Anil Kapoor. The first company that started releasing Indian motion pictures in the market was Triada which cooperated with Indian entrepreneur Arun Kumar. The Russian company Format A Plus also played a major role in promoting Indian films by offering them on different media and publishing its own glossy magazine “Indian Cinema World”. The magazine brought the latest Bollywood news to subscribers in remote villages where they had no access to the Internet. In 1996, Mosfilm Studios provided Format A Plus Director Alla Aristova with 90 copies of Indian films released in Soviet times. She and Arun Kumar started making video cassettes and DVDs with Indian films. Shortly thereafter the company acquired the rights to another 200 Indian films, released mainly in the 1960-80s. No one expected big profits at that time, but slowly demand for Indian films picked up and leading distributors started buying them again. Format A Plus also launched the production of advertising booklets that came along with the videocassettes and discs, thus attracting a large audience. In Soviet times, Indian films were a rarity on television. “Seeta Aur Geeta” was played several times and in the late 1980s So- viet television showed compilations of songs from Indian films on public holidays. Later regional cable channels arranged for special viewings of Indian motion pictures. The current situation on Russian television is more than lamentable. Three or four channels play the same old films over and over again. The satellite channel “India TV” is not widely available and offers a limited variety of films. There is yet another problem: viewers’ likings often appear to be at odds with television channels’ policies. In fact, despite the fact that Shah Rukh Khan does enormous popularity, Russian television channels refuse to take films with him, prefer the old good “Seeta Aur Geeta” and “Disco Dancer”, which guarantees them high ratings. RUSSIA&INDIA 4-2012 79 CULTURE CULTURE CINEMA Akshay Kumar and A.N.Aristova in Bollywood Modern Indian filmmaking industry has the world’s biggest audience. True, it is limited mainly to Asia, but is in fact the biggest in terms of numbers. This situation appears to be paradoxical for the Russian motion picture market where Indian films are virtually nonexistent. While Bollywood productions beat all viewing records in the Soviet Union, it would be logical to assume that they can bring people to movie theatres in contemporary Russia as well. All the more so since there is a market of DVDs (the spread of the Internet is taking its toll of course, but the audience is still there). However, Russian distributors do not want to take Indian films and firmly believe that there is no demand for them in the country. 80 RUSSIA&INDIA 4-2012 Naturally, after 20 years of absence in the market and total lack of information about Indian films, it’s not so easy to regain the audience which is completely unaware of modern Bollywood products. In fact, if you offer an unknown product, you have to invest in advertising. But this is what Russian distributors are not going to do: why do anything and invest if one can simply play Hollywood films that have been intensively marketed for decades by the smoothly going American film advertising industry? Rare occasions when Indian films appear in Russian movie theatres bring about nothing but a bitter feeling of lost opportunities. In 2009, Rishi Kapoor came to Russia with his “Chintu Ji”. The only viewing at Moscow’s Khudozhestvenny movie theatre brought in the full house of connoisseurs from across the city. The news was spread by word of mouth as there was no advertising or even a bill with the name of the film and the actor! In the same year, a retrospective show of Indian films was organised at the Moscow International Film Festival (it was the Year of India in Russia). Information about the films had boiled down to a simple list of titles and names that meant nothing for the overwhelming majority of Russian people. The resulting low attendance was not really surprising. And here is a different story about Danny Boyle’s “Slumdog Millionaire”. Formally, it’s not an Indian film, but Europeans take it as such as it was shot in India by mainly an Indian crew with Indian actors and tells a life story which is typical for Indian films. Moreover, the film is partly in Hindi, and even producers looked gloomy during the shooting, anticipating a failure, as all “professional” were confident that people wouldn’t watch it. But the result proved otherwise: a big success and eight Oscars, including the main one in the “Best Film” category. Global box-office receipts exceeded $200 million (with a $15 million budget). Sixteen weeks after the release, it still was the best-selling movie in the US. It also made a surprisingly big success in Russia and received a Russian National Film Academy award as the best foreign language film of 2009. “Slumdog Millionaire” was distributed in Russia by a newly created company, Volga, and was in fact its first release in the market. Needless to say, more experienced professionals only sneered and predicted an imminent failure of the company. However the Indian film brought it success and a special prize as a top-earning European film in Russia. The irony is that the film got Oscars in the US as an American movie and received awards in Russia as a European one, while actually being Indian in essence. CINEMA Rishi Kapoor signs autographs at the premiere of “Chintu ji” The rekindled interest was thought to bring Indian films back to Russian movie theatres, but… distributors never dared to do so. Clearly, any other film void of Oscar-related publicity needs advertising and investment. The chance was missed and the situation is unlikely to change unless there appears some far-sighted entrepreneur willing to invest heavily in advertising skilfully and ardently. The reward would be the pay dirt of Indian films that will sweep the Russian market and bring sizeable dividends. Sooner or later this will happen anyway. But if we wait longer, Indian films will return to Russia with some transnational film corporation like Sony Pictures that will commit large amounts of money to the Indian project. These people will offer nothing to Russian distributors or ask anything of them. They will simply say how many hundreds of copies must be released and at which prime time. They will get the dividends too. In fact, Hollywood is already showing interest in Bollywood and it has grown substantially over the past several years. Unlike Russian businessmen, their American colleagues can feel the market. But what about Indian entrepreneurs? Is the Russian market of interest to them? Format A Plus, Triada and Russkoye Shchastye (Russian Happiness), which distribute Indian films for home viewing, have been pushed out of the market by rapidly growing Internet services. People have virtually stopped buying licensed products as practically any film can be downloaded for free. That leaves film distribution. But modern Indian films are something new and unknown in Russia. And new things have to push their way through the scepticism of “professionals” who know how to make money only on old products. This brings associations with the music market when British Decca Records producer Dick Rowe turned down the Beatles at their audition, saying, “guitar bands are on their way out” and “the Beatles have no future in show business”. Decca Records has long ceased to exist, but Dick Rowe came down in history as the man who made the biggest misjudgment in music history. RUSSIA&INDIA 4-2012 81 CULTURE CULTURE COMMUNITIES COMMUNITIES DOWNSHIFTERS CHOOSE HOSPITALITY By Anastasia BELUKUROVA Photo by Sergei STISHOV Unofficial statistics say some two million former USSR residents live in India at present, legally or illegally. They prefer to settle in the northern part of the State of Goa. Some come for holiday, but then refuse to leave, discarding their passports to stay for good. Others, after a trip to Goa, come to like the local good things so much that they make India their venue of choice for holiday-making. Some travel to India for enlightenment, while others wish the feel the rhythm of life which differs so drastically from cheerless routine existence. And some simply prefer to put a mite of welcome heat into severe Russian winter. M any Russian colonies have appeared in northern Goa. The community largely comprises former representatives of Russian “office plankton” who swapped their careers for rustling waves and a sunny sky above. For many Russian “natives” of the former Portuguese colony, taking part in Bollywood crowd scenes has become routine. Those with entrepreneurial acumen open a small business of their own on the coast. William Somerset Maugham, a connoisseur of Southeast Asia, wrote that local climate ennobled 82 RUSSIA&INDIA 4-2012 the character. Unsurprisingly, an increasing number of Russian downshifters (the modern yappies who suddenly preferred alternative lifestyle) have been coming to the area. The Indian authorities rightly used it as a legitimate pretext to tighten the visa regime for Russians. In their opinion, which differs from Maugham’s, it is Russian tourists who often indulge in riotous recreation with alcohol and drugs and worsen the criminal situation in the country. “Goa’s precious lands need to be protected,” parliamentarian Shantaram Naik said, “Russians and Israelis have occupied certain villages in a manner which cannot be called ideal tourism. We cannot allow any Goan village to be called ‘Israel Village’ or ‘Russian Village’”. By no means are all Russians drunkards or bawlers. Well-known Moscow journalist Georgy Mkheidze tells about his impressions from “staying on the Indian side.” R & I: When did you first have the idea to travel to India? Why did you choose India and did you consider other options in South and Southeast Asia? In late 2003, my girlfriend Lisa and I realized that we were very tired of working for glossy magazines (she worked for Playboy Russia and I wrote for FHM). What had seemed revolutionary and fascinating a few years ago became boring and disgusting. Also, we had a feeling that we have found our bearings in that area – to this or that extent - and that we were unable to make further progress. So we decided to take a time-out, to take a break and think over what we really wanted to do. Georgy Mkheidze was born in Moscow in 1971. He graduated from the Moscow State Institute of Culture. In first journalist experience, he took part in making the Basilisk, the first esoteric miscellany under the guidance of poetess Margarita Pushkina. He published his articles in the magazine OM from 1995, and in 1997 through 2000 he was editor of the cinematography magazine Premiere. Georgy Mkheidze also edited the cultural section of the FHM magazine and wrote for Playboy, Jalouse and Harper’s Bazaar. After the first experience in a television project – the Golod-2 (Hunger-2) reality show shooting in New York -- he gave up printed media journalism for television, to become creative producer of the TNT Hypnosis show and the Who Doesn’t Want to Be a Millionaire reality show. He handled Internet television within the framework of the Snob project for a year. He is currently creative producer of Perets Channel. RUSSIA&INDIA 4-2012 83 CULTURE At that time, Russia began tentative discussions about downshifting (which became a nationwide trend several years later). Two years before, Lisa had visited Goa as a tourist; she initially lived in a hotel in the south of the State and then retreated to the north and talked at length about the good things of the local life. So we largely understood what we were going to India for. Thailand was probably the only other cheap option with comfortable condi84 RUSSIA&INDIA 4-2012 CULTURE COMMUNITIES tions and warm climate (Bali had not yet become a popular spa for Russians by that time), but India seemed (and still does) much more hospitable, versatile and interesting. Our fluent English was certainly an advantage in the country where it is an official national language (along with Hindi). R & I: Could you briefly tell how you fixed yourself in the new place, rented a house and got used to new life? How long did you live in Goa? Did you continue to work remotely from Goa? After acclimatization that lasts about a month, on the average, you begin to feel as an old-timer and sort of look down at new arrivals. We rented living quarters from the landlord whom Lisa knew by her visit. Prices of lodgings, car rent and foodstuffs fall dramatically for you when you live in India for a long time, which is a pleasant surprise. Another asset of the local lifestyle is the opportunity to get practically everything on credit or a long-term installment plan, and the friendliness and trust that seem impossible between the seller and the customer in Russia. We spent almost all three seasons in India (from late autumn to late spring or early summer). Then Lisa gave birth to a son and while he was an infant, we were apprehensive about travelling there, yet in the recent years, we’ve tried to visit the place every spring for as much as possible (regrettably, we now have to reduce our period of stay). I know people who work productively while living in Goa, and thus fully provide for themselves. They even find time for creativity. I feel respect and admiration for them – because I myself could hardly bring myself to work. Pulling myself together to write even a small article required long and hard efforts from me. Relaxing (at least in the early 2000s) was much more comfortable than working. Perhaps, the situation has changed by now, as GPRS Internet is available. I used the opportunity to live on the rent from tenants of my apartment in Moscow, so I could afford to work for pleasure only. R & I: What did you usually do in your spare time? Aside from traditional Goan pleasantries (the ocean, international get-togethers and trance parties), travelling was certainly the key activity. When a Russian realizes that India is not much smaller than Russia, he or she cannot but develop a natural wish to see the delightful and tempting corners of that country with their COMMUNITIES own eyes. As you begin to travel, you notice that they all seem like different countries: Rajasthan, Tamil Nadu, Gujarat, Himachal Pradesh… By that time, India set up low-cost airlines which Russia still lacks. It made trips not only exciting, but also comfortable. R & I: Many Russian tourists, unfamiliar with Southeast Asia countries, are wary of travelling to India or other countries in the region for thousands of reasons. Some dislike ubiquitous beggars, others fear insufficient sanitary arrangement because of the possibility to catch a tropical disease. What problems did you encounter? They were far fewer than they threatened us with in Russia before our trip. Anti-sanitary conditions in India are grossly exaggerated (especially in the recent years, thanks to the sensible policy of the Indian government, even in megapolices), and hygiene precautions essentially boil down to elementary rules, such as washing one’s hands and not drinking running water. We had enough money, by and large, and Western Union did help a couple of times (its offices are within reach even from a Himalayan village), as did Indians’ hospitality. We did manage to defuse several conflicts with local residents peacefully, and careful driving protected us from the temptation to drive fast, another mass affliction of Russian newcomers. R & I: Do you agree with the widespread opinion that many Russians find India appealing because of its warm climate, cheap prices and incredible feeling of freedom? I believe so. As I said, we find India’s variety increasingly attractive year after year; you always have the opportunity to discover new aspects you never explored before. For example, I’m now dreaming of living in Mumbai for a month or two; this town fascinated me from the first time I saw it eight years ago, and I still regard it as one of the most beautiful cities on the planet by its architecture and “character.” R & I: Does India change a Russian? Indeed it does, as it also changes any European or American (judging by Gregory David Roberts’ novel Shantaram). Take the new perception of time for example: after the first season in Goa, I was happy to find out upon my return to Moscow that I no longer had problems waiting at meetings or in queues: what had used to make me nervous turned into the pleas- ant process of contemplating the current of the life. It is a very Indian approach to “pauses” in the rhythm of life; it infuriates the newcomers to India in the first week, but then you subconsciously assimilate and accept it. R & I: Who did you prefer to communicate with? Your compatriots, foreigners or local residents? We deliberately avoided meetings with Russian “spiritual” RUSSIA&INDIA 4-2012 85 CULTURE tourists, who were coming en masse for the sake of clichéd and stereotyped enlightenment: they aren’t exactly the right kind of public! Regrettably, communication with the Indians was limited by the language barrier, yet it did not prevent us from making friends with a couple of per86 RUSSIA&INDIA 4-2012 CULTURE COMMUNITIES sons; we also stuck several brief acquaintances, which we still remember with a feeling of respect and gratitude. As for Europeans, I have a close friend, who has lived in Goa for five years, and who deliberately limited the circle of his contacts. We tried to practice a balanced approach there. R & I: What do you think about the local transport? Did you use a motorbike? Is it true that local buses are “hell on wheels” for Europeans? To my knowledge, we’ve already traveled over half of the country – but it is not the reason to stop and not to visit, say Assam or Darjeeling, or India’s far south, or Jammu and Kashmir. We decided from the beginning that we’ll keep to a certain lower level of comfort, and “the local buses” (meaning a torturous invention called “sleeper” for lowincome users) are far below that level as we soon saw. So we’d recommend travelling around by at least class 3AC trains (3rd class with air conditioner), or by planes which really rival these trains by prices. Compared with buses and cheap trains, this surely saves your nerves and resources when travelling large distances. Not only did we use a bike, I’d say it’s pleasure in its own right: among tops on the long Indian list of good things. We started with motor scooters but soon switched to bikes which were much safer and comfortable. You get used to driving along the “wrong” side of the road in about a week, while in a couple of months, you learn to squeeze past articulated trucks and buses. R & I: Some say Goa is not the true India, but an international beach hangout with its multi-cultural flavor. Would you agree with this quite resolute opinion? To a certain extent, but see no contradiction here which they suggest in this connection. My opinion is rather a compromise: Goa is a wonderful bridgehead for travelling about the country; you always know this compact world awaits you, and you’ll look forward to returning there after all your wanderings. I’m not a great admirer of Indian cuisine, so the happier I was to find that Goa offers excellent alternatives which increase year in and year out. My latest visit was quite gastronomic as several dozen restaurants with European cuisine had opened (from Bulgarian and Greek to Ukrainian and very nearly Belarussian) with very decent prices and excellent cooking, far better than the Moscow average. There is also seafood, COMMUNITIES whose prices grew by just 15 to 20 percent at the most in a decade. So there are no problems in Goa to find milder food, without curry or masala. When travelling, we never denied ourselves the opportunity to see ancient monuments and architectural masterpieces (Mumbai makes a particularly striking impression – you might think of a Victorian London built by a megalomanic designer with unlimited resource), and see a new action movie or a thriller at the cinema. Watching dramas or comedies without the knowledge of the language is not possible, but with genre films your intuition helps more than you might expect. I still remember some films, and I think I’ll keep them in my memory forever, for example, the awesome police action film Khakee, a Bollywood action drama or Sholay, a restored original version, my favorite in childhood. It was run with the Dolby soundtrack on the occasion of an anniversary of that greatest hit. R & I: Whom would you advise to visit India and in what mood? I cannot imagine a person who would not like it there (provided he behaves properly). As for the mood, I believe India is huge enough (in all the meanings of this word) to teach a foreigner how to come to be fond of it without causing mutual damage. R & I: Are you going to return there for an extended period? Firstly, I do not intend to stop going there at least once a year. In a long term outlook, Goa would seem to be an ideal place to live in after retirement. I think of investing in a local business. But there’ve been many rumors that for a foreigner who has no trusted persons among the locals, or connections (at least at the level of village administration) it would not be the best idea. I’ve started to raise the issue with local acquaintances. Perhaps, it’s not as bad as it seems. RUSSIA&INDIA 4-2012 87 SPORT SPORT CRIKET Living with the Bat By Arnold KABANOV Cricket is the most popular game in India. It was quite widely spread in Russia before the revolution of 1917 as well, with four cricket clubs operating in St. Petersburg alone. In modern Russia, cricket is played too, though not as much as in India, of course. And yet, more and more cricket fields appear every year… M entioning the name of Tendulkar, an Indian cricket star, is like casting magic spells in India. A friend of mine, a Russian cricket connoisseur, likes to talk about the beauties of this game with Indians when travelling abroad. And whenever the name of Tendulkar comes up, it hits home like a magic key to the locked door in a treasure cave: it brings a broad smile on their faces and gets them going. In fact, how can one not talk with a foreigner who knows how many points Tendulkar scored in the latest game against Australia? Sachin Tendulkar is the cricket legend, the greatest batsman of all times, the hero of India’s triumph at last year’s World Cup. He is a person of the same magnitude in his country as film stars are. 88 RUSSIA&INDIA 4-2012 My friend can spend days watching live broadcasts of key cricket games, for example between India and Pakistan, and if the latter lose, it is rumored that they go back home not as a team in one plane but by different flights to avoid the anger of their fans. Their Indian counterparts react likewise when their team fouls up in critical games. Laymen may find the cricket rules unclear and confusing. But a real connoisseur needs no more than five minutes to explain them. Every team has 11 players; the game is played on an oval or round field with a rectangular pitch at the centre and wickets at both end of it; the goal is to score as many runs as possible in two or four innings. In each innings one team bats and the other fields, one bowls and the other strikes the bowled ball. The batsman strikes the ball with his bat so that the fielding team does not catch it and send it to the wicket. If the batsman hits the bowled ball over the field boundary without the ball touching the field, the batting team scores six runs. If the ball touches the ground and then reaches the boundary, the batting team scores four runs. The batsmen may also try to score points for their teams by running across the pitch. And so on and so forth … Finding a cricket fan in Russia, let alone a person who would be at least vaguely familiar with the rules of this game and would not mix it up with crocket as in Alice in Wonderland is a challenging task. Cricket, first played in England almost five thousand years ago, became quite popular in British colonies. And it still is liked and played in the countries that emerged to take their place. In fact, it’s not such a short list. Apart from India, Pakistan and England as the country of origin, it also includes Australia, New Zealand, Zimbabwe, South Africa, Sri Lanka, the Caribbean … Russia is not there, but those who think that there is no cricket in Russia are wrong. On the contrary, the game has been taking the first but strong steps in our country. Actually, no, not the first steps. It is more of a comeback to Russia. It was played in the country before the revolution. Russian cricket began in St. Petersburg and was initially played mainly by and among British diplomats and entrepreneurs, with local people joining in later on. Strictly speaking, cricket was no longer something exotic in Russia in the late 19th and early 20th centuries. There were four cricket clubs in St. Petersburg alone and overs or sets of six pitches were not confused with innings any more, and bats were often taken up by people in other towns as well. But in 1917 cricket was basically destroyed. The Bolesheviks loathed all amusements that they thought were too “bourgeois” and “aristocratic”. The “red inquisition” put a final end to cricket. However several years ago it sprang back to life in Russia again. In 2007, an event occurred that may be considered historic one day: the Russian team played the first game against touring Carmel&District Cricket Club of North Wales at Moscow State University’s baseball stadium (baseball and cricket are members of a family of related bat-and-ball games). There were no Russian names in the team, though. In fact, the players’ names clearly suggested their foreign origin from India or neighboring countries such as Pakistan, Bangladesh or Sri Lanka. Like in St. Petersburg in the late 19th century, these were foreigners who had happened to be in Russia by some twist of fate. And it was also a foreigner who had initiated the revival of cricket in modern Russia. Ashwani Chopra of India and his friends started playing CRIKET cricket in Moscow in the middle of the1990s. They could not find the necessary equipment at that time and had to use primitive bats and tennis balls. As time passed, equipment became available and there appeared an organization that could take cricket to the official level. Chopra and his supporters registered the United Cricket League, created the Russian cricket team and played the first test matches and tournaments. Luckily, there were diplomats and managers from Australia, England and other countries working in Moscow who missed cricket. And things got moving. The United Cricket League succeeded in “promoting” the game to such an extent that national tournaments became a reality: modest in scale, with only half a dozen clubs participating, but still a major success. The national team made a breakthrough, too. In 2008 it was trailing far behind even minor rivals such as Czechs or Estonians in Twenty20 tournaments – a short- ened format of the game at a professional level (in classic cricket test matches last five days). In 2010, at a tournament in Macedonia, which was the de facto European Cricket Championship, the team made it to the finals but lost to the more experienced Hungarians in the last game. Mainly Indians who had received Russian citizenship or residence permits played for the team. The International Cricket Council (ICC) rules are quite mild and allow not only citizens of a country but also those who have lived in it for at least five years to play for the national team. The ICC understands that more stringent rules may leave many members out, and this would be bad for this sport. Strictly speaking, silver at the 2010 European Championship may not be much of an achievement and is largely disregarded by the cricket’s big league which is interested only in individual tests and World Cup games, but it certainly is an achievement for Russia. RUSSIA&INDIA 4-2012 89 SPORT SPORT CRIKET CRIKET And wouldn’t you agree that playing at the Olympic Games is a very strong incentive that can spur the development of this sport in any country? As for lapta, yes, it’s a bit regrettable, but when feeling sorry for it, one should remember that Russians’ genetic affection for it may actually help them master cricket nuances and subtleties faster. My friend, the admirer of Sachin Tendulkar, is absolutely convinced of that. It only seems that there are too many rules in cricket and that they are so confusing. This brings up associations with rugby. Some ten years ago the general feeling was that Russia would never have big wins or get into the cream of the rugby world, that this is a tightly closed club. But the persistence of the specialists responsible for the development of Russian rugby slowly tore down the seemingly insurmountable wall brick by brick. As a result, Russia made its first ever appearance at last year’s World Cup that riveted the attention of tens of millions of people around the world for a month. It did not make it to the play-off but looked quite decently against such rugby giants as Ireland or Australia, and even scored its first point in the game with the Americans. Doesn’t this prove that there is nothing impossible in sport? And that even an exotic sport can bring medals and glory with enough perseverance and hard work? The question is whether it’s worth doing. Some sceptics say: why does Russia need this Indian-Australian-British cricket if it has always 90 RUSSIA&INDIA 4-2012 had its own game of lapta? And if something has to be promoted, it should certainly be it. Lapta is in fact a genuinely Russian game. Pieces of equipment used for playing it found by archaeologists in Novgorod date back to the 14th century. And so, it may be even older than cricket. Also, it is very much similar to it. One can say that lapta and cricket are almost identical. At least, both have the same goal – to strike a bowled ball and then try to make as many runs across the pitch as possible. Just about everyone used to play it in old times: the poor, the aristocracy, the peasants and the intelligentsia. Vladimir Lenin is said to have played it too. But then the game fell into oblivion, and wouldn’t it be logical to revive it instead? However those who raise their hands to vote for cricket will always have an unbeatable counterargument – the international status of cricket. It has just so happened that of all related bat-and-ball games, only two – baseball and cricket – have spread over the world. When abroad, switch to any big sport channel and you will surely catch a baseball or cricket game during the day. Although first class cricket is played on a limited territory (mainly in former British colonies) its popularity can hardly be called low. On the contrary, it is close to that of baseball or rugby. In Australia some top games were known to have been attended by more than one hundred thousand people. Here are some more noteworthy statistics related to television. I bet no one can say offhand how many people watched the Indian Premier League Championship last season. 140 million! The television audience of the World Cup is even bigger. In fact, only sport “kings” like football or Formula-1 can boast such figures… India is not the only country where cricket is a matter of national pride and a national affection. It is among the top three sports in England and Australia as well. There is yet another important point to make. In February 2010, the ICC was admitted to the association of non-Olympic sports recognized by the International Olympic Committee. And what could that mean? This means that cricket may be included in the Olympic Games in the future. This possibility is already under discussion, and there are reasons to think that the outcome will be positive for cricket. Baseball and rugby travelled the same road. On top of it all, a special “telegenic” format has been developed for cricket at the Games: it is the same compact Twenty20, with the test lasting about three hours. RUSSIA&INDIA 4-2012 91 20 TH CENTURY PAGES OF HISTORY Svetlana Alliluyeva: Romance with India PAGES OF HISTORY Svetlana ALLILUYEVA: “For me, Brajesh Singh was an alien from another world, far richer and more interesting spiritually than the world where I grew up.” Mutual understanding was most unexpected and wonderful: their different backgrounds, countries, languages, experience and age were no obstacle. On the contrary, all these differences seemed to help them understand, pity and love each other. Photo agency Associated Press 20TH CENTURY By Sergo KUKHIANIDZE Stalin’s daughter Svetlana ALLILUYEVA died in late 2011. She was 85. She lived the larger part of her life in the United States. The fate of this unusual woman cannot be conceived without India, although she stayed there for just a couple of months. But what months! S vetlana Alliluyeva took an interest in India when she was a high school student. The girl, who had an inquisitive mind, avidly read books on history, philosophy and culture of that distant and mysterious country. At that time, she could not imagine the crucial role the youthful interest in the coun92 RUSSIA&INDIA 4-2012 try would play in her life. At any rate, she might have never ventured to make the acquaintance of Brajesh Singh, an Indian Communist and politician. Their relationship changed her life forever. Svetlana and Brajesh first met in a quite unromantic place. It happened in the district of Kuntsevo, Moscow, in October 1963. Svetlana was at a hospital for high-ranking government officials and members of their families to have her tonsils out. That hospital also provided treatment for Soviet Union’s friends from foreign countries, who were zealous fighters for peace in the whole world. Brajesh Singh was hospitalized for nasal polyps surgery. Understandably, Svetlana and Brajesh were in different wards, yet they sometimes saw each other – when strolling along the corridor or in the dining hall where their tables happened to be next to each other. Although Svetlana saw many coevals among hospital patients – she was 37-year-old at the time, had been married twice and had been bringing up two children – son Iosif and daughter Yekaterina – she riveted her attention on this short gray-haired bespectacled Indian, who was much older than she. It was not that his appearance was appealing, it was his truly gentlemanlike behavior and splendid aristocratic manners (Brajesh came from the family of a rich rajah). Also, Brajesh came from India, the country she had long adored though she had never seen it. Singh, 54, worked as a translator at a Moscow publishing house at the time. He lived alone when he met Alliluyeva. He had been estranged from his first Indian wife and two daughters for more than two decades ago… Svetlana, much as she wished to strike an acquaintance with the man, had no idea how she could do it. She tried to approach him on several occasions, but every time she felt shy and stopped short of starting a conversation. She even tried to learn by heart several English phrases to start talking with the mysterious Indian, but… What held her back? A simple enough thing: how could she possibly come up to a stranger, a foreigner, and initiate a conversation? But one day, gathering up her courage, she asked a nonchalant question, which came quite easily, “you must be from India?” He gave a Brajesh Singh, Svetlana Alliluyeva’s husband. were much more congenial to him than Russia…” Svetlana repeatedly said that Brajesh had half a mind to quit the Communist Party. Of course, not only Svetlana was aware about Singh’s political views, the Central Committee and even the Politburo knew about them, too. Is it then surprising that they never let her marry Singh during the three years of their life in her Moscow apartment? The ideology patriarchs, Anastas Mikoyan and the allpowerful Mikhail Suslov, tried to talk her out of marriage. During a meeting in Old Square, the latter bluntly told her: “Your father was very much against marriages with foreigners. We even had such friendly smile and a happy nod, “yes! yes!” “Could I ask you something?” Svetlana pressed with newly-found confidence. They sat on a sofa and talked for more than an hour about Gandhi, Nehru, and Indian castes… Alliluyeva was firing questions while Singh was answering them with pleasure. Incidentally, he did not know whom he met that day. Alliluyeva only revealed him her identity during their next meeting. “I deemed it necessary to finally introduce myself,” as she later recalled. “Singh looked at me through the thick glasses of his spectacles and only said: “oh!” – that wonderful English “oh” which can have so many intonations.” He said nothing more. “Singh never asked me any questions about my father later, not even when we lived together. He did not belong either to Stalin’s admirers or those for whom the Soviet Union was the ideal of justice on the earth. He knew Europe well, and European Communists were his friends. The Socialist Yugoslavia and especially Poland Svetlana Alliluyeva. 26 april 1967. AP Photo. a law!” But no threats could make Alliluyeva and Singh separate, as their relationship was truly warm. But their happiness did not last long. Singh died of chronic bronchitis in 1966. He died in Svetlana’s arms. Alliluyeva made the decision to take her husband’s ashes to India. She had always considered and called him her husband. But her wishing so was not enough. Even when she obtained permission from Soviet government bodies, Svetlana was not allowed to leave the country alone. Soviet Foreign Minister Andrei Gromyko ordered to assign to her a companion, a Foreign Ministry employee, to watch her. Mrs Kassirova was a specialist on India. The trip to India in 1966 was actually her first journey abroad from the Soviet Union. Once, she had briefly visited her brother Vasily at his Air Force unit deployed in East Germany. Although she was staying in India for a sad occasion, Alliluyeva could not but admire Delhi. The city won her heart at once. “There was a variety of centuries, countries, and influences everywhere,” she later recalled, “pretty Indian women in sari were driving latest car models… A yogi stood on his head and elbows right in the cenRUSSIA&INDIA 4-2012 93 20TH CENTURY Ms Peters arrives in the USA in April 1967. Ms Peters is answering Life magazine’s questions. 94 RUSSIA&INDIA 4-2012 20 TH CENTURY PAGES OF HISTORY ter of a park…” The Oberoi Hotel where they had an ice-cream was comfortable and luxurious the European way. Multi-storey department stores, ubiquitous advertisements of U.S. films Doctor Zhivago, the Sound of Music, detective films… In stores, you do not know which way to look: colorful and unique saris, Kashmiri shawls, sandals, and bracelets make you dizzy… Svetlana saw young men clad European-style, while elderly people wore pajamas and kurtas, a long white shirt worn over trousers or a black long jacket (achkan). Indian women were in sari, younger girls and schoolgirls wore dresses with long shalwar or churidar: European dresses were only worn by women from the West – there were quite a few here. Beautiful old trees were planted on roadsides around Delhi. Monkeys sat on their thick knotty roots picking lice off their young. “Oddly, I had a persistent feeling of d`eja v u... I’ve seen these trees, and monkeys, and benches... I’ve long known all this,” she wrote. Of course, Svetlana had dreamt of these exotic pictures many times since she had taken an interest in India. And when she travelled to India she saw them with her own eyes. Not surprisingly, Alliluyeva did not want to part with them. She was overfilled with true joy, which she probably felt for the first time in her life. After she completed her mission – poured her husband’s ashes into the Ganges – Soviet Embassy personnel started making insistent recommendations that she leave the country as soon as possible and return to Moscow. But she was increasingly reluctant to do it with each passing day. “I did not wish to return to the terrible world of Kosygins and Suslovs… India emancipated and liberated something within me. Here I stopped feeling myself a part of “government property” which I had been in the USSR all my life… Inside, I had already irrevocably freed myself from this eternal slavery,” as she would candidly note later. Perhaps, the book titled Ambassador’s Report by Chester Bowles, the then U.S. envoy to India, was the last straw. Allilyeva came across the book when she was visiting her husband’s relatives. She found Mahatma Gandhi quote in it: “It is possible for a single individual to defy the whole might of an unjust empire to save their honor, their religion, their soul and lay the foundation for that empire’s fall or its regeneration.» She learnt it by heart and repeated every day, as if it were a mantra. Soon Svetlana began to openly talk about her wish to live in India for some time. At first, she shared it with her new Indian friends and then, in a private talk, with the Soviet Ambassador to India Ivan Benediktov. The latter flatly denied her wish. Furthermore, he bluntly warned her that she would never be allowed to leave the USSR again. Nothing could stop Alliluyeva after that talk. She was resolved to ask the U.S. Embassy in Delhi for political asylum. But how could she get there, being under constant surveillance on the premises of the Soviet diplomatic mission? Svetlana was to have flown from Delhi to Moscow on March 8, 1967, according to the date on her ticket procured by Embassy personnel. She made up her mind to flee to the U.S. Embassy on March 6 afternoon. But in the evening of March 5, after agonizing reflections, she thought better of it and decided to flee without any delay. There were so many people around in daytime. Ironically, it was on March 5 that her father died. But the magic of numbers had nothing to do with it; it was just that Svetlana wanted to do it as quickly as possible. Did she have an escape plan? Alliluyeva said she did not. This is what she wrote in her reminiscences: “I walked out to call a taxi. It was dark in the stairwell, and I barely dialed the number. The Indian could not understand where he had to drive up: “the Russian Embassy?” “No, PAGES OF HISTORY Ms Peters’s interview to the New York Times. no, the Russian residence!” I kept telling him, as the gate watcher had told me… I stood by the gate, marking time, strolling to and fro. My nerves were on edge…” Five minutes later, an old car appeared from behind the left corner, a Delhi taxi. A smiling turbaned Sikh sat in the driver’s seat, and another Indian sat next to him. They opened a car door for her. “Do you know where the U.S. Embassy is?” “Yes, it’s fast beside.” They turned into a dark side lane to make a shortcut, what a smart driver! Then they drove past the Soviet Embassy, and went round one side of the U.S. Embassy. A minute later the car pulled up near the main entrance. The Sikhs helped Svetlana take out her suitcase, she gave them several rupees, and up she went on unsteady legs along a long broad staircase. “Once I stepped over the threshold, something inside let go, I felt relief, and everything suddenly seemed easy and simple,” she recalled. Just one question: “did they really let her leave the Soviet Embassy that easily? After Svetlana’s stated her wish to extend her stay in India, she was under constant sur- veillance by security agents of the Soviet diplomatic mission. How did she slip past them? It seems Alliluyeva decided to skip the details of her flight in her reminiscences for this or that reason. A few years ago, Svetlana Iosifovna’s friend, a daughter of the Soviet General, told the author of this article what really had happened. Here is her story: “Of course, Svetlana knew that she was being watched day and night. After deciding to defect, she washed all her clothes, including underwear, and hung them out on the balcony of the apartment in the Embassy’s residential quarters. Her watchers among the security agents saw it and relaxed, reasoning that “she could not escape without clothes” and left their post that evening. In short, Alliluyeva’s plan worked. “Having lulled her watchers’ vigilance, Svetlana slipped unnoticed out of her apartment…” Anyway, after getting to the U.S. Embassy that evening, Alliluyeva told the marine guard at the entrance why she had come, and he quickly led her to a small room… A month later, she arrived in New York, where she soon publicly torched her Soviet passport, along with her Soviet past. RUSSIA&INDIA 4-2012 95 BUSINESS CONTACTS Business Council is a reliable aid of for cooperation with Russian CALLING CARD India (BCCI) – and Indian business circles in establishing mutually beneficial contacts. Business Council for cooperation with India has resumed its activity in 2006 in compliance with the decision of the leaders of Russia and India on expanding cooperation. The initiative of the Chamber of Trade and Commerce of the RF to resume BCCI was supported by JSFC Sistema. BCCI functions as a non-commercial partnership. The purposes of the Partnership are strengthening and developing business ties and trade and eco- nomic relations between the Russian Federation, India and countries of the Asian-Pacific Region, and also assisting in establishing mutually beneficial contacts between Russian and Indian business circles. 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