Austria

Area Population Population growth Gross National Income GNI Growth Per Capita Income

83,871 sq km. 8,384,745 47060 $377,062,468,874 2% $ 45,209

Religions (2001 census): Roman Catholic 73.6%, Lutheran 4.7%, Muslim 4.2%, other 5.5%, no confession 12.0%. Education: Years compulsory--9. Attendance--99%. Literacy--98%. Health (2009): Infant mortality rate--3.6 deaths/1,000. Life expectancy--men 77.4 years, women 82.9 years. Austrian culture has largely been influenced by its past and present neighbours: Italy, Poland, Germany, Hungary and Bohemia. In 2007, Austria ranked 9th worldwide in international tourism receipts, with 18.9 billion US $. In international tourist arrivals, Austria ranked 12th with 20.8 million tourists.

Overview Once the centre of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Following annexation by Nazi Germany in 1938 and subsequent occupation by the victorious Allies in 1945, Austria's status remained unclear for a decade. A State Treaty signed in 1955 ended the occupation, recognized Austria's independence, and forbade unification with Germany. A constitutional law that same year declared the country's "perpetual neutrality" as a condition for Soviet military withdrawal. The Soviet Union's collapse in 1991 and Austria's entry into the European Union in 1995 have altered the meaning of this neutrality. A prosperous, democratic country, Austria entered the EU Economic and Monetary Union in 1999.

The Society Austrians have had two contrasting influences in their characters a natural insulation imposed by the Alpine topography; and a cosmopolitanism derived from being subjects of one of Europes largest empires the Habsburgs. As a result, the traveller is quite likely to bump into either type simple Tyrolean peasant folk in the countryside, or well read, welltravelled arty types who inhabit old cafes and museums in Vienna and Salzburg. The grandeur of imperial traditions still holds somewhat in the capital Vienna, where till recently, it was common to find descendants of genteel and noble folk reminiscing about past times in coffee houses and late Baroque mansions. Austrian society tends towards the conservative, perhaps due to a combination of influences from Alpine insularity and imperial traditions. However, Austrians also love periodic experimentation in the arts and social sciences. The majority of Austrians are Roman Catholic, a consequence largely, of the time when the Emperor Rudolf II embraced the counter-Reformation and forced his subjects to convert back to Catholicism. There is a Protestant minority numbering around 6 % of the population. Any exposition on Austrian culture has to begin with a discussion of its musical heritage. This is the land that gave birth to and nurtured such stalwarts as Mozart, Strauss and Brahms. Under the benevolent patronage of the Habsburgs, this musical creativity reached its crescendo during the 18th and 19th centuries and resonates till today, with institutions like the Vienna Boys Choir, the Staatsoper and the Musikverein keeping the tradition alive. The range of architectural styles in Austria is equally impressive. The 14th to 16th centuries was the period when the Gothic style flourished in buildings such as the St Stephens Cathedral in Vienna. Gothic was replaced with Baroque, the style that is synonymous with Vienna and Salzburg today. Early Baroque architecture gave way to Italian-inspired Baroque under the architect Fischer von Erlach that took detailing to new heights, as evinced in the millions of spires, turrets and quaint roofs that lend Salzburg its distinctive charm. The Rococo style, an amazingly lavish, excessive style of architecture can be seen in the Schobrunn Palace built by Empress Maria Theresa. In modern times, the Gaudi-esque architect Hundertwasser has designed some fantastically weird apartment blocks well worth seeing. Austrian art includes Gothic, Renaissance, Baroque and Biedermeier styles. Gustav Klimt, associated with the Art Nouveau movement and painter of the masterpiece The Kiss, is Austrias most illustrious modern artist. Austrias remaining contribution to art is the bizarre movement known as Viennese actionism, which involved experimenting with a range of direct art techniques, such as throwing red paint/blood over a canvas and ripping the canvas apart with a knife. The Economy Austria, with its well-developed market economy and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis and global economic downturn in 2008 led to a sharp but
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brief recession. Austrian GDP contracted 3.9% in 2009 but saw positive growth of about 2% in 2010. Unemployment has not risen as steeply in Austria as elsewhere in Europe, partly because its government has subsidized reduced working hour schemes to allow companies to retain employees. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 3.5% of GDP in 2009 and 4.7% in 2010, from only about 1.3% in 2008. The international financial crisis caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and south-eastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to prevent insolvency and possible contagion. In the medium-term all large Austrian banks will need additional capital. Even after the global economic outlook improves, Austria will need to continue restructuring, emphasize knowledge-based sectors of the economy, and encourage greater labour flexibility and labour participation to offset growing unemployment and Austria's aging population and low fertility rate.

Austria is one of the wealthiest and most stable of the EU member countries. It has a free market economy with a strong emphasis on social factors favouring the economically less privileged and providing conditions for equitable wages and pricing. Service, industry, and agriculture are the 3 major sectors of the Austrian economy. The foremost products are foodstuffs, luxury commodities, mechanical engineering, steel, chemicals, and vehicles. Within the vehicle sector, the production of engines and transmissions is the most important, accounting for an export quota of more than 90 percent. Austria manufactures as many as 800,000 engines per year for major car manufacturers. In the electronic engineering field, Austria is known for its production of customized electronics products such as microprocessors and integrated circuits for airbags, ABS braking systems, and components for Airbus airliners and for high-speed trains. Approximately 3 percent of all Austrians work in agriculture and forestry. Currently that sector accounted for 1.7 percent of Austria's gross domestic product. Although about 41
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percent of Austria's total area is thought to be suitable for agriculture, currently about 18 percent of the surface area is actually covered by farmland. Another 27 percent of the country's area is considered as grassland and nearly half (47 percent) is woods and forests. With its 20,000 organic farmers, Austria occupies a leading position in Europe in the branch of organic agriculture. The Austrian industry (commodities manufacturing, energy, and mining) accounts for 32.3 percent of the GDP and employed 29 percent of the workforce. In the field of raw materials and energy generation, Austria possesses ample resources. It has major deposits of iron ore and non-ferrous metals. It also has its own resources of oil and natural gas and is the EU's number-one generator of hydroelectric power. However, the constant growth of the industrial sector necessitates a significant amount of supplementary imports. This is also true of fuels and energy and of the electricity which generates industry. There are an unusually high number of medium-size enterprises in Austria's commercial industrial sector. Austrian industry covers practically every branch of manufacturing starting from basic goods to the labor-intensive production of finished goods. Plant construction (planning, delivery, and assembly of industrial facilities) is among the most important industries of the country. Plant construction and electronics sectors are strongly exportoriented. Another export-oriented sector is Austria's handicrafts, famous worldwide for, among other things, costume jewellery, ceramics, and glassware.

Taxation in Austria The principal taxes applicable to companies in Austria are the corporate income tax,
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municipal tax, real estate tax, value added tax (VAT), social security contributions, and customs and excise duties. There is no branch profits tax, excess profits tax or alternative minimum tax. Reductions in the corporate tax rate in recent years have made Austria an attractive place to invest and have ensured that it remains broadly competitive. The corporate tax rate in Austria is 25%. There is a minimum tax payment of EUR 1,750 for a limited liability company and EUR 3,500 for a joint stock company. These rates apply as from the second year of operation; the minimum tax level in the first year is EUR 1,092. For groups, these minimums apply to each taxpaying entity within the group. Resident corporations pay tax on worldwide income, but the liability for tax may be restricted or reduced by tax treaties. Therefore, foreign income may be exempt or taxes paid on foreign income may be credited against Austrian taxes, as stipulated under an applicable treaty or as approved by the tax authorities. Non-resident companies are liable for tax only on Austrian-source income. Leading Business Enterprises 3 Austrian businesses feature in the list of fortune 500 companies in the world in the year. Leading enterprises in Austria 2010 1 2 3
OMV Group Erste Group Bank Strabag

Indo Austria Business Relations Diplomatic relations between India and Austria were established in 1949. Traditionally India Austria relations have been warm and friendly. Bilateral agreements/MoUs in force include: (i) Air Services Agreement (1989), MoU on Air Services (June 1997); (ii) Double Taxation Avoidance Agreement (1999); (iii) Bilateral Investment Protection Agreement (1999); (iv) Agreement on Bilateral Economic Relations and Economic, Industrial, Technical and Technological Cooperation (1999); (v) MoU on Infrastructure Cooperation in the field of Railways (May 2002); (vi) Agreement on Cooperation in the fields of Science and Technology (Nov 2007); (vii) MoU for Infrastructure Cooperation in the Health Sector (February 2005); (viii) MoU between FICCI and Austrian Federal Economic Chamber (WKO) (October 2003) and CII and WKO (Nov 1996). (ix) MoU for cooperation in the field of Agriculture (September 2010)

INDIA - AUSTRIA ECONOMIC RELATIONS Austria, a member of the European Union since 1995 is an important link for India in its relationship with Europe, especially with countries of central and Eastern Europe. The IndoAustrian Joint Economic Commission (JEC) established in 1983 is active and ongoing (12th session was organized in Vienna on 12-13 October 2009) between the governmental Ministries and Chambers of Commerce and Industry of the two countries. There has been Co-operation in the fields of steel, manufacturing technology, railway and transport, equipment, metallurgy through a large number of collaborations, technology transfers and joint ventures.

Trade: Indias main exports to Austria are Garments, textiles & accessories including yarns, fabrics, leather and leather manufactures including footwear, carpets, Chemicals and pharmaceuticals, Auto Ancillary products, Electrical power instruments, computer software, handicrafts, spices, coffee; tea etc. Austrias main exports to India include - Machinery & equipment including projects goods; newsprint; paper and paper products; iron and steel products; professional instruments, etc.

In line with Austrias overall foreign trade growth, Indias exports to and imports from Austria have marked considerable increase in the first four months of 2011 in comparison to the same period in 2010. Exports have marked an increase by 21% y-o-y in the first four months period of 2011. Imports have registered a larger jump by 37.5% y-o-y in the same period. Textile Yarns & Fabrics, Apparels & Clothing and Footwear account for 42.5% of Indias total exports to Austria, which altogether registered increase by 26% y-o-y in the January-April period. Machinery & Transport Equipment, accounting for 26.1% of total exports to Austria, marked an increase by 21.1%. The growth was mainly pushed by Electrical Machinery, which alone accounts for 8.35% of total exports and marked 47.1% growth. As far as the imports are concerned, Machinery remains as the strongest trade field. 43.1% of Indias imports from Austria fall under this category, followed by Manufactured Goods, which represent 34.6% of total imports. Interesting to notice is the steep increase in imports

of Iron and Steel (almost 20% of total imports from Austria) by 166.3% in the four month period.

Top 5 universities of Austria 1 Universitt Wien, Vienna 2 Technische Universitt Wien, Vienna 3 Universitt Innsbruck, Innsbruck 4 Technische Universitt Graz, Graz 5 Universitt Graz, Graz Austria Consulate in Mumbai (Bombay) 26 Maker Chambers VI Nariman Point 400021 Mumbai, India Phone:+91-22-2287-4758 +91-22-2287-4759 Fax: +91-22-2287-0502 +91-22-2833-4504 Email: tamara_valladares@jasubhai.com Photographs Map:

Air Austria

Traditions and customs in Austrian culture

Tourism