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Indian cities draw investors in
Assetz.co.uk
5th June 2007

The Indian property market is going from strength to strength according to the latest reports. Some investors have recently begun ploughing money into the country as they take advantage of cheap property prices and favourable exchange rates. The Indian tourist ministry has also been heavily promoting the many different holiday options that the country offers.

In a campaign that last year cost £8 million, the ministry of tourism has been advising overseas holidaymakers to come and experience 'Incredible India'. A spokesman said the government "is putting greater emphasis on development of infrastructure at important tourist destinations and to promote and publicise various tourism products of India within the country and abroad".

It seems that the campaigning has paid dividends, as tourist numbers have increased by around 45 per cent in the past two years. India is a huge landmass and conditions vary widely in different parts of the country. It is possible to take a ski trip to the north or a beach holiday in the south. There are jungles galore inland, allowing for safaris and wildlife-themed holidays, with visits to the habitat of the native Bengal tiger particularly popular.

The cities are also experiencing strong property price growth and demand is expected to continue at high levels for at least the next 12 months, according to the chairman of the National Housing Bank (NHB). The NHB is a regulatory body for housing finance companies in India.

According to statistics collected by the body, property prices in some of the bigger cities - like Mumbai, Delhi and Bangalore - have risen by between 30 and 40 per cent in the past year. The NHB attributes this to lack of land and housing stock supply (as much as 3.1 million units under, by government estimates), coupled with a strong economy that has seen wages rise and some sections of the populace become increasingly affluent. "Demand for housing will remain strong," a spokesman said.

With this in mind, construction companies have gone into overdrive. Real estate is being built all over the Indian peninsula, including a huge development - described as a "mega housing project" by its developers - at Mohali. British investors that buy in India can be assured of getting a lot of property for their money and the present climate suggests a bright future for Indian investment.
 
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SWISS to introduce services to Delhi and Shanghai
5 June 2007

SWISS is to add its first new long-haul destinations to its network, with the introduction of scheduled services to the key cities of Delhi (India) and Shanghai (China).

The new routes can be operated thanks to the addition of five further aircraft to the SWISS long-haul fleet, enabling the carrier to both increase frequencies on existing routes and introduce service from Switzerland to new destinations. The addition of Delhi and Shanghai should both boost the Swiss economy and enhance Switzerland’s vacation appeal.

SWISS is growing, at a steady and sustainable pace. Since last November, Switzerland’s national airline has added five Airbus A320-family aircraft to its European fleet and has introduced two further Airbus A330s and (from July 20) an additional A340 on its intercontinental network. Two more Airbus A340 aircraft will also be added to the SWISS long-haul fleet by spring 2008.

As a result of this fleet expansion, SWISS will introduce service to Delhi (India) in its 2007/08 winter timetable, and will add Shanghai (China) to its network in the 2008 summer schedules. “In extending our network to Delhi and Shanghai, we are both strengthening the Swiss economy and promoting Switzerland as a tourist destination,” says SWISS CEO Christoph Franz. Delhi will be served with Airbus A330 aircraft from November 25, 2007, while the service to Shanghai, which will begin on March 30, 2008, will be provided using Airbus A340 equipment.

India: a key growth market

Delhi will be SWISS’s second destination (after Mumbai) in the emerging Indian market. “It’s the rapid growth in this market, the strong business ties between the two countries and the high demand for air services from non-government and non-profit organisations, too, that have prompted us to add Delhi to our network as our second Indian destination,” says Harry Hohmeister, Chief Network & Distribution Officer at SWISS. The new route also offers sizeable potential for tourist traffic, from both the Swiss and the Indian source markets.

Swiss exports to India have more than doubled over the past three years, increasing 36% in 2006 alone. Imports of Indian products and services to Switzerland are also rising rapidly, and recorded 11% year-on-year growth last year.

First direct service between Zurich and Shanghai

With China now Switzerland’s second-most-important trading partner in Asia, the demand for business travel between Zurich and Shanghai has considerably increased. Calls have also been growing in the tourism sector for a direct Zurich-Shanghai connection.
Apart from flights to and from Hong Kong, no direct services currently exist between Switzerland and China. With Air China and Shanghai Airlines due to join Star Alliance next year, SWISS should also soon be able to collaborate with two well-established local airline partners to offer its customers attractive onward connections from Shanghai to other Chinese destinations.

Beijing is also set to appear in the SWISS timetable next spring, under a codeshare operation with Lufthansa via Munich. “Our new services should ensure that Switzerland enjoys attractive air connections with what is currently the world’s fastest-growing market,” CEO Christoph Franz continues.

Swiss exports to China have increased by more than 35% over the last three years. Imports of Chinese products and services to Switzerland are also seeing substantial growth, and rose 16% last year.

Schedules coordinated with Lufthansa for more customer choice

SWISS and Lufthansa will also be coordinating the schedules of their services to Delhi and Shanghai to offer valuable convenience benefits to all their customers. As a result, travellers will be able to fly from Zurich to Delhi or Shanghai either directly on SWISS or via Frankfurt or Munich with Lufthansa. The harmonised timetables will offer customers a choice of three different departure times, and a flexibility that will be particularly appreciated by business travellers. The collaboration is further confirmation of Lufthansa’s multi-hub strategy centred on Zurich, Munich and Frankfurt airports.

SWISS generates jobs

Having successfully completed its corporate restructuring, SWISS has given itself the scope to invest in its fleet, its network and its product. The present fleet expansion is also creating new jobs – around 600 of them among the company’s flying personnel alone, or an increase of some 10% on present workforce numbers.

SWISS’s expansion is generating new jobs in related fields, too, such as technical services, catering and ground handling. “Every long-haul aircraft we add to our fleet creates about as many jobs as will be found in a small or medium-sized enterprise in Switzerland,” Christoph Franz points out. “So here, too, our fleet expansion is generating added value for the Swiss economy.”
 
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Indian Rupee Strengthens Versus Greenback
RTT News

Monday, June 04, 2007 10:59:34 AM - The Indian rupee showed strength against its U.S. counterpart on Monday, reversing weakness that occurred in overnight trading. The currency remained in a range near its high, still supported by last week's strong GDP data. News over the weekend that the U.S. and India were unable to reach a nuclear deal did not seem to have a significant impact on trading.

The Indian rupee gained ground versus the dollar Monday morning in New York. With these gains, the rupee remained hovering near a multi-year high set recently versus the greenback. At 10:45 am ET, the Indian currency fetched a mark of 40.20 against its American counterpart. This is compared to a level of 40.545 just after 7 am. Monday's advance brought the rupee back to levels it experienced on Friday.

India announced last week that its economy grew 9.4% for the 2006-07 fiscal year, compared to a 9% growth the previous year. This number was India's highest in 18 years, boosted by expansion in manufacturing, as well as exports and services.

Over the weekend, India and the United States could not reach agreement on a proposed nuclear deal after three days of negotiations in Delhi. The deal would have seen the U.S. share fuel and information with India. One of India's concerns with the deal is a clause that would let the United States end its cooperation if India tested a nuclear weapon. Prime Minister Manmohan Singh is expected to discuss the deal with President Bush when they meet at the G-8 summit in Germany this week. The two men had agreed to the deal in July 2005.

Dollar Drops Against Major Counterparts

Monday, June 04, 2007 10:46:46 AM - The U.S. dollar dropped against its major counterparts on Monday morning in New York. The morning saw the greenback drop to a three-week low against the sterling. Trading took place amid the mid-morning release of data that showed U.S. factory orders increased by 0.3% in April.

The dollar fell against the euro in Monday morning trading in New York, reaching its lowest level in almost a week. The dollar moved off a daily high of 1.3432 that it touched around 9:30 am Eastern Time. The greenback then began to slip against the euro after the release of data showing Euro Zone PPI rose above expectations during April. By 9:30 am Eastern Time, the greenback was down to 1.3498, its lowest level against the euro since last Tuesday. The dollar began to rally a little after 10 a.m. ET.

The greenback also dropped against the yen on Monday morning in New York. The pair saw relatively little movement during the early morning, trading around 122. However, traders soon mulled data showing that Japanese capital spending grew more than expected in the first quarter. This took the dollar lower. By 9:15 am Eastern Time, the greenback was at 121.54, its lowest level against the yen since last Thursday. The greenback rallied over the next half-hour before leveling off.

The dollar slipped to a three-week low in trading with the pound on Monday morning in New York. The slide began around 5 am Eastern Time and continued into the mid-morning. By 9:30 am Eastern Time, the dollar traded as low at 1.9908 before stabilizing near that mark. Monday's action came as traders looked ahead to the British retail sales monitor and Thursday's Bank of England rate decision.
 
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Sustaining rapid growth
Business Standard / New Delhi June 05, 2007

Our analysis of the performance of a large sample of 1,700 Indian companies, representing about 75 per cent of the market capitalisation of the Bombay Stock Exchange, reinforces the very positive macro-economic news from 2006-07. Incomes (sales revenue and other) grew by over 27 per cent for the sample as a whole, the highest rate of growth in the five-year period 2002-07 and significantly higher than the previous year’s growth rate of about 20 per cent. Operating profits (EBDITA) grew by almost 40 per cent, compared with 11 per cent in the previous year. This was despite material and manpower costs increasing by over 27 per cent. And net profits grew by 47 per cent, compared with a measly 14 per cent growth in the previous year and second only to the 53 per cent achieved in 2003-04. The one dark spot on this very impressive performance is the relative decline during the fourth quarter of the year, but that was not enough to offset the achievements of the previous three quarters.

There are some fundamental issues arising from this performance, which relate to sustainability over the longer term. One set of issues pertains to the sources of this growth. Clearly, productivity is a significant contributor, reflected in the wide gap between income growth and profit growth; but it is not the only driver. The corporate sector has been making huge investments in capacity over the past four years, a process that is reflecting in major macro-economic indicators, such as the capital goods segment in the Index of Industrial Production (where the capital goods sub-set has been outpacing others) and the Gross Fixed Capital Formation numbers in the National Accounts (growth now comes more from investment than consumption). Such investment upswings are typically thought to last about three years, but nothing seems to be typical in the Indian economy today. Assuming this capacity expansion goes on for some more time, many companies will very likely find themselves in a situation in which their capacity exceeds their ability to sell domestically. At that point, they will either have to look more aggressively for markets abroad, or, failing this, curb investment plans until demand catches up with capacity. The high profit levels of the 1,700 companies (9.1 per cent of sales, on average) would suggest that they have the cushion to get into export markets despite the rise of the rupee. If they fail to do that, then declining investment can precipitate a fairly sustained slowdown in growth, as India saw between 1997 and 2003. The essential point is that higher penetration of global markets is critical to sustaining the kind of performance seen in recent years.

Another issue that arises is the way in which the stock market values the large mass of companies in this sample. A simple analysis of ratios suggests that the price-earnings ratio of this sample is higher than that of the 30 companies comprising the Sensex. Since all 30 are part of the sample, this means that the ratio for the non-Sensex companies is higher than for the sample as a whole. Evidently, a lot of companies in the lower ranges of market capitalisation are being valued rather aggressively by investors. The large number of new fund offers for mid-caps, small-caps and now even micro-caps is testimony to this. It is quite conceivable, though, that any significant correction in prices will hit smaller companies hardest, particularly those which have not been able to hedge their bets by diversifying outside the country. In short, while it is entirely appropriate to celebrate last year’s successes, it is also time to tread cautiously and focus on companies that are doing what is necessary to sustain their performance.
 
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India's ISEC sells sugar to Dubai
REUTERS[ TUESDAY, JUNE 05, 2007 06:30:14 PM]

LONDON: The Indian Sugar Exim Corporation Ltd (ISEC) has sold more than 200,000 tonnes of bulk Indian raw sugar to Dubai's Al Khaleej Sugar, the biggest producer of refined sugar in the Middle East, the refinery's general manager said on Tuesday.

"It will start this year and spill over into next year," Jamal al-Ghurair told the media, declining comment on the price. "The numbers (tonnage) are going up day by day," he added.

It was the Dubai refinery's first bulk purchase of Indian raw sugar, he said. Al-Ghurair said the refinery had made the purchase because of the freight advantage of Indian sugar over Brazilian sugar to the Dubai refinery.

He said he expected to make further purchases of Indian raw sugar because of the availability of Indian supplies and the freight advantage over Brazil, the refinery's traditional origin for raw sugar. "India is a natural sugar supplier to Dubai whenever they have sugar," Ghurair said.

He said the Indian raw sugar would be delivered basis 8,000 tonnes per day load. He declined to comment on the relative costs of freight from India and Brazil to Dubai, saying the numbers were constantly in flux.
 
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You are right Neo,

Rs. 3199.92 is nearly 80 billion dollars. This is from Central government. Apart from this amount respective State governments have their own development budget.

I figured that out happy Feet, thanks for uour confirmation. :tup:
 
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Chief Says G.E. Aims to Match the Growth Pace Set by India
By HEATHER TIMMONS, New York Times
Published: June 1, 2007

NEW DELHI, May 31 — Pressure to slim General Electric’s corporate portfolio at home has not stopped Jeffrey R. Immelt’s aggressive plans for expanding in emerging markets.

On Thursday, Mr. Immelt, G.E.’s chairman and chief executive, told executives here that India had “never offered us more potential than it does today.”

G.E. plans to participate in the country’s “massive focus” on energy, he said, and will create a fund for infrastructure that could reach $1 billion.

“This is the era of the developing world and of emerging markets,” Mr. Immelt said. As the United States economy cools, G.E. and other large multinational companies are shifting their focus to faster-growth parts of the world.

Mr. Immelt’s latest trip to India comes as the country’s economy hit a new high. Figures released on Thursday showed that India’s gross domestic product grew by 9.4 percent in the year ended in March. Indian officials say they expect growth to continue above 9 percent this year.

“If we can grow at the same pace as the Indian economy, we can be a great company,” Mr. Immelt said.

Last year, G.E. executives said that they planned to make India a major market and that revenue from India would more than quadruple, to $8 billion by 2010. Assets in India will also reach $8 billion by 2010, the company said.

Mr. Immelt said Thursday that those goals were in sight: revenue in India in 2007 should be $3 billion, out of $175 billion at G.E., and by 2008 should reach $4 billion. G.E. should “blow right through” the target of $8 billion in Indian assets by 2010, he said.

This year, G.E. will earn more revenue outside of the United States than in it. The company said in April that first-quarter profit rose 2 percent, in part because of a focus on selling goods and consumer services in Asia and the Middle East. Revenue in developing markets was up 14 percent in the quarter.

Some analysts, notably Jeffrey Sprague of Citigroup, have suggested that G.E. spin off units, including NBC Universal and GE Money, to streamline the company and improve its stock performance.

Mr. Immelt did not address asset sales Thursday. Instead, he said the company would continue to focus on several “macro themes,” including emerging markets.

A worldwide demand for infrastructure is “a stunning long-term trend,” Mr. Immelt said, and could require $4 trillion in overall global investment over the next eight years. Other macro themes include environmental technologies and opportunities created by changing demographics, like the rapidly growing need for health care.

The visit by Mr. Immelt comes as United States and Indian officials are in the last stages of negotiating a deal to share civilian nuclear technology. The plan has been stalled several times, though an agreement could be struck this weekend when R. Nicholas Burns, an under secretary of state, comes to New Delhi for fresh talks.

Nuclear plant manufacturers, including G.E. and Westinghouse, are expected to be the chief beneficiaries of any deal, and G.E. has been lobbying both governments to agree to the plan.

“India wants to do this, and the United States wants to do it,” said Scott R. Bayman, president and chief executive of GE India, after Mr. Immelt’s speech. “It makes so much sense. We’ll get it resolved,” he said.

Mr. Immelt said he intended “ultimately to be a participant in the nuclear industry here.”

G.E.’s presence in India dates back more than a century, and the company’s former chief executive John F. Welch Jr. is largely credited with promoting India as an outsourcing center. GE Money is one of India’s largest credit card lenders through a partnership with the State Bank of India, and the company counts India’s largest companies among its customers.

Over the last 12 months, G.E. signed deals to finance a power plant for a cement company and supply Air India with environmentally friendly engines. It also said it planned to invest $2 billion in Indian real estate and about $250 million in infrastructure and health care projects in India.

Despite the activity, India’s effect on G.E.’s revenue stream is still minimal. India provided less than 2 percent of G.E.’s overall revenue last year, at $1.9 billion. Even so, that represented a jump of 90 percent over 2005.

G.E. expects to add 4,000 more employees in India over the next two years, bringing its total work force in the country to 17,000.
 
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Monsoon ceases to hold sway over India economy
Gulf News

New Delhi: The early arrival of India's annual monsoon promises good crops and incomes for millions of farmers, but econ-omists say the rains no longer hold such a sway over Asia's third-largest economy as they did in the past.

The June-September rains are often defined as India's economic lifeline. The progress of the monsoon is keenly watched, for it used to hold the key to everything from crop output to inflation, consumer spending and economic growth.

But things are changing.

For years, India was largely a closed economy with agriculture and rural consumption the main drivers of supply and demand. A few decades ago, a bad monsoon could push the economy into recession.

Agriculture is still a large part of the economy and with two-thirds of India's population of more than one billion living off farming-related activities, rural incomes are a major source of demand for everything from soap to compact cars.

Yet farming's contribution to economic growth is dwindling.

The agriculture sector's share of the trillion dollar economy has fallen steadily to about 22 per cent from 38 per cent in 1980 - a trend that appears to be accelerating.

"The broader impact of a poor monsoon on growth is definitely coming off," said Rajeev Malik, Singapore-based economist with JP Morgan Chase.

"In case of a severe drought it will take a toll, but not as bad as it used to be as in the past," he said.

India's performance in the 2006-07 financial year is a case in point.

The economy grew by a hefty 9.4 per cent, propelled by double-digit expansion in manufacturing and services, even as the farm sector grew by a paltry 2.7 per cent.

For the current financial year ending in March 2008 the central bank predicts growth of 8.5 per cent.

Shrinking sector

As India embraced free market reforms in 1991, the farm sector was eclipsed by services and manufacturing as production controls and tariff barriers were removed to open the economy to global supply and demand.

With vital industries such as software and pharmaceuticals powering India's growth now, investors don't have to worry as much as before whether a bad monsoon will hit village demand for motorcycles, shampoo or refrigerators.

"There is increasing de-linking happening between industry and the farm sector," said Shubhada Rao, chief economist with Yes Bank.

Rao said companies have started moving their manufacturing away from overcrowded cities, creating new opportunities for the rural population.

The contrast between manufacturing and farm performance was particularly telling in 2004 when farm output stagnated because of erratic monsoon rains but manufacturing expanded almost nine per cent.

It was possible because many villagers who saw their farm incomes hit by bad weather found work on a massive government highway scheme, which allowed them to maintain normal levels of earnings and spending. But for all its diminishing impact, the rural economy is still on investors' and economists' radar screens as poor rains can hit farmers' profits and hurt other sectors, analysts say.

With the majority of Indians still living in the countryside ups and downs in rural incomes still have a sizeable impact on consumption and growth, they say.

In fact, saturated urban markets mean that makers of consumer goods such as Hindustan Lever increasingly rely on rural demand to boost their sales.

"The influence of the farm sector on the economy has come down but rural demand still holds the key to overall growth and that is unlikely to change," said N.R. Bhanumurthy, economist in the Institute of Economic Growth.
 
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Tuesday, 5 June 2007

India economic zones get go-ahead

By Sunil Raman
BBC News, Delhi

India hopes the new zones will boost trade and exports
The Indian government has given final approval for 24 Special Economic Zones (SEZs) to be created in the country.

Big companies, including Reliance Industries and Wipro, are among those to have their plans given the go-ahead.

The Commerce Ministry decision comes after a two-month freeze on approving SEZs, which have attracted protests from threatened farmers and landowners.

Inspired by similar zones established in China, the tax-free enclaves are seen as a way to promote trade.

Proposals for another nine SEZs were approved pending scrutiny by state government departments, while a further 13 applications were deferred.

Investment hopes

Among those projects given clearance are Reliance Industries' proposed 440 hectare site in northern state of Haryana near New Delhi, and another in Rewas in the western state of Maharashtra.

The Rewas scheme, located in the Delhi-Mumbai corridor, will have about 200 high-speed freight trains linking trade zones with industrial complexes and ports.

Industrial conglomerate Tata has had an SEZ approved for the eastern state of Orissa, while IT firm Wipro's proposal in the southern state of Andhra Pradesh has also been given the green light.

Overall, Manmohan Singh's government has given approval for 111 SEZs in the past two years.

There is no clear policy yet on how companies should go about acquiring land

M K Vevu
National editor, Economic Times

India believes that the zones will help provide employment and secure large amounts of foreign investment.

The initiative has inspired huge interest among would-be developers but has also prompted resistance from rural communities in India, where farming is the mainstay of some two-thirds of the population.

Recent government moves to clear land for a petrochemical centre in West Bengal led to conflicts killing 14. Other regions also saw protests.

This, and other protests by farmers has led the Indian government to bring in a law that would ensure financial compensation and jobs to people who would be displaced by these zones.

The 'Rehabilitation Policy' was to be introduced in Parliament earlier this year but differences between various ministries has delayed it.

'Commitment signalled'

Prime Minister Singh has also faced opposition from the finance ministry and central bank over tax incentives to be provided to industries in these enclaves.

The government "has still not resolved pending issues," says the national editor of The Economic Times, M K Venu.

He added that by clearing 24 proposals, the government had "signalled its commitment" to SEZs but pointed out that it had not cleared any of the controversial schemes, which require acquisition of vast tracts of land.

"There is no clear policy yet on how companies should go about acquiring land. That is a political issue and will take some time to sort out," Mr Venu pointed out.

http://news.bbc.co.uk/2/hi/business/6723827.stm
 
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Coming Soon to India: Middle-Class Money
Fast-track India likely will be home to the world's fifth-biggest consumer market by 2025, a trend that should lift nearly 300 million Indians out of poverty
By Brian Bremner

http://imageshack.us

Years of high-speed growth in the 8% range is transforming and enlarging India's middle class. By 2025, India is expected to emerge as the world's fifth-biggest consumer market as incomes and living standards continue to improve, according to a study by the McKinsey Global Institute. Nearly 300 million Indians are expected to escape poverty and India's middle class will leapfrog by a factor of 10-from 50 million today to roughly 583 million 18 years from now.

Average annual household disposable income is projected to rise from $2,784 to $7,804 during the same period. If it does, this would be fantastic news for India's 1 billion-plus population that has experienced high poverty rates during most of the postwar era, not to mention local and foreign companies that will profit from the rise of India's supersized middle class. Here's a look at the big spending areas likely to be most affected.


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High Octane

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Lured by this emerging market's vast potential, General Motors, Fiat, Honda, and other foreign carmakers have announced Indian investments valued at roughly $1.5 billion.

Right now, India's entire industry-local producers and transplants-collectively manufacture about 1.4 million vehicles a year. That's expected to double by 2008, and if it does, India will surpass Britain and Canada in total car production. The government hopes to see India auto sales jump from last year's $34 billion to $145 billion in 2016. In that case, the domestic auto industry could represent about 10% of India's gross domestic product.

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White Hot

http://imageshack.us

India's searing mobile-phone market has the world's biggest handset makers—Nokia, Motorola, Samsung, LG, and Sony Ericsson—scrambling to get a piece of the action. With good reason: The country's mobile subscriber base is now approaching 150 million and is expected to reach 450 million by 2010. Every year, 17 million to 18 million new users enter the market.

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Entry Level

Motorola launched its Motofone F3 in 2006 after researching the needs of thrifty rural Indians. The slim 9mm phone sells for as low as $32, making it one of the cheapest on the market. It has large fonts, a screen readable even in bright daylight, and a six-icon-based menu guided by voice prompts in regional languages. Another plus: The handset boasts a long battery life—500 minutes of talk time and 300 hours of standby time.

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Cool Threads

http://imageshack.us

The Indian fashion industry has grown from humble beginnings at the start of the decade into a sizable business that is getting international attention. Young designers are mixing Indian fashion traditions with contemporary looks for men and women. Some, including Anamika Khanna, Rohit Bal, and Tarun Tahiliani, have picked up international accolades for their work. Indian designer wear generates only $40 million or so in sales, but is expected to grow briskly in the decade ahead.

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Buying Power

http://imageshack.us

By 2015, India’s consumer market will be as big as Italy’s, and will grow into the fifth biggest worldwide 10 years after that. India’s expanding middle class has prompted big Indian conglomerates such as Tata, Reliance, and Bharti to expand into retail. Foreign brands such as Nike, Samsung, and Sony have tied up with local players, and Wal-Mart is entering the fray via an alliance with Bharti

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Quality Care

http://imageshack.us

Foreigners in search of high-quality, affordable medical care love India, and the country is well known for global companies like Ranbaxy that make generic drugs. Yet as India’s middle class grows, its health-care sector will have to expand much more to keep pace.

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Passing Marks?

http://imageshack.us

India needs a dramatic upgrade of its system of state universities and private colleges. True, the various Indian Institute of Technology campuses are world-class and have long turned the country's smartest kids into stars. But that is an exception, and competition for those slots is ferocious. A study last year by McKinsey concluded that only 25% of India-trained engineers and 15% of the system's finance and accounting professionals had the skills to work for a multinational company. That’s a problem if India is going to really leverage the talents of the world's largest pool of young people. Some 60% of India's 1 billion-plus population is below the age of 25.


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Drink Break

Spending on food and beverages represents about 56% of average household consumption, and foreign chains such as Starbucks view India as a critical emerging market in the decades ahead.

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Bollywood Dreams

India’s Hindi-language film industry is the world’s biggest in terms of volume and ticket sales, and Bollywood talent is starting to have appeal in foreign markets. Indians particularly love their musicals, and that has touched off a Bollywood ringtone craze that is also driving growth in the mobile-handset market.

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Better Lives

http://imageshack.us

If India’s high-speed economic growth rates stay on track, as is widely expected, nearly 300 million Indians are expected to escape poverty. While urban India is likely to experience the biggest income gains, rural India’s average income growth per household is projected by McKinsey to accelerate from its 2.8% average over the last two decades to 3.6% over the next two.
 
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G8 courts China, India
The Standard, Hong Kong
Wednesday, June 06, 2007

China and India once waited for crumbs from the table of the world's wealthiest nations but at the G8 summit in Germany this week the two rapidly growing economies will be dining as near equals.
When Chancellor Angela Merkel welcomes the heads of the Group of Eight nations to the northern German resort of Heiligendamm today, they will be joined by the leaders of Brazil, China, India, Mexico and South Africa.

The G8 leaders will especially want to hear what President Hu Jintao and Indian Prime Minister Manmohan Singh have to say on the vexed issues of climate change and world trade.

Lalit Mansingh, a former Indian ambassador to the United States, said the Group of Eight "are being forced to recognize the new emerging powers.

"A lot of international economic reports - by Goldman Sachs and others - say the Chinese economy definitely and the Indian economy possibly will overtake that of the United States quite soon.

"So the invites to India, China, Brazil, etc, are a recognition of that global clout. It is also a recognition of the fact that the West will have to share power with new emerging centers."

The so-called G8 plus five process formally began at the 2005 summit in Gleneagles, Scotland, when British Prime Minister Tony Blair invited the heads of the five emerging economies to participate in the talks.

With a combined population of 2.4 billion people, China and India are huge, export-hungry markets for the world's biggest exporters such as Germany.

And as their burgeoning economies consume ever more coal and natural resources, any future global agreement on limiting global warming would be fatally flawed without their participation.

China's stunning economic growth has been achieved at a terrible cost to its environment.

Monday it unveiled its long-awaited national strategy for addressing climate change but insisted its economic development must come first.

Crucially, Beijing also insisted it would not commit to any caps on greenhouse gas emissions.

Merkel on the other hand has vowed to use the summit to urge her G8 counterparts to sign up to mandatory limits on emissions.

China's position is clear - the developed world must help it to cut pollution.

"The consequences of restricting the development of developing nations will be much more serious than the consequences of global warming," Ma Kai, China's top economic planner, told journalists Monday.

In a briefing on the G8 summit last week, Beijing however dismissed the suggestion that, mindful of its growing economic muscle, it will block initiatives at the summit.

"I don't think China will be a Mr No at the G8. We want to be a Mr Cooperation or Mr Partnership," an official said.

"As far as China is concerned, we are a developing country and will be for a fairly long time to come.

"But we hope in the future our cooperation with the G8 can be institutionalized and regular."

The other members of the "plus five" group have other agendas to pursue. For Brazilian President Luiz Inacio Lula da Silva a face-to-face meeting is promised in Heiligendamm with French President Nicolas Sarkozy.

South African President Thabo Mbeki prepared for his summit trip with talks last week in Pretoria with Blair. The wealthiest nations, Blair said, must make good on the promises they made at Gleneagles to massively increase aid to Africa.

Indian analyst Uday Bhaskar said the fact the G8 was making space at the negotiating table for the newcomers is a formal recognition that the current G8 lineup - Britain, Canada, France, Germany, Italy, Japan, Russia and the United States - fails to reflect the direction in which the world is moving.

"The emerging hexagon of relevant powers of this century are the US, the EU and Japan at level one and Russia, China and India on level two," said Bhaskar. "The invitation [to the emerging economies] is a formal acknowledgement of that."

AGENCE FRANCE-PRESSE
 
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Singapore Airlines to operate 50 flights to India per week

Singapore Airlines will from June 24 operate eight times a week to Chennai, taking its services to India to 50 a week.

"Our eighth service to Chennai (in a weeek), the launch city of our India operations, is a befitting way to commemorate our 50th flight to India," said CW Foo, general manager (India) of Singapore Airlines.

The new service will help boost its capacity by almost 14 per cent to the Tamil Nadu capital, the airline said.

Singapore Airlines will operate a Boeing-777-200 aircraft with a two-class configuration of 30 Business class and 293 Economy class seats for this service, offering more onward options to several cities in the carrier's global network.

Singapore Airlines has also introduced e-ticket services and an Internet check-in facility for Indian customers.

The airline, which started operations to Chennai in 1970, operates flights to eight destinations in India.
 
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India: retail, farm sector must link up

The booming, organised retail sector should have a link with the agriculture sector which would result in mutual development and generate maximum employment, said Governor T N Chaturvedi on Thursday.

Speaking after releasing “The South India Retail and Realty Report: 2015 and beyond” during the valedictory of - The Shop - South India’s first retail event, Mr Chaturvedi said the organised retail should also think in terms of social responsibility and not just business profitability.

Business model

He stressed the need for evolving a business model that has a role for the smaller retail units in the unorganised sector.

Modern retail cannot remain cut off from the common man.
The survival of the small time village grocer and the neighbourhood thelawala in every by-lane of the country is just as important to India’s economy as the sales figures of large business houses and modern shopping centres, felt the Governor.

Upgrade, satisfy

With earning youngsters having less of liabilities and high disposable incomes, they seek best of the products and services and the retail market have to upgrade and satisfy this consumer base, the Governor pointed out.

Mr Chaturvedi said as the organised retail in the South has crossed 4.9 per cent of the retail marker as against the national percentage of 4.6, the retail invariably deserves a special attention of policy makers in the South.
Earlier in the day, a “CEO Meet” discussed the success stories of South based retailers.

One of the key issues addressed at the session involved the process of going national from being a strong regional player and other issues.
 
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It’s Grrrrr8 (honest)
From The Times
June 6, 2007

As the G8 summit begins in Germany, Hugo Rifkind explains everything you need to know – and lots of stuff you didn’t

A is for Angela Merkel

Merkel, the German Chancellor, will be hosting her first G8 summit, in Heiligendamm, Germany. A Christian Democrat, and formerly known as competent, if rather drab, she reinvented herself to become Germany’s first female Chancellor in 2005 by getting some highlights done and playing Angieby the Rolling Stones at her political rallies. Although she only narrowly beat Gerhard Schroeder, the incumbent, in that election, her popularity has subsequently grown. The G8 will be her biggest moment so far on the international stage, and her motto for the summit is “Wachstum und Verantworting!”. This may sound like an expensive brand of stereo, but translates as “Growth and Sustainability!”

B is for Bush George W. Bush. That one. What with climate change almost guaranteed to be a major theme of the G8 summit, the US President last week infuriated the Germans and pretty much everybody else (except for loyal Tony Blair) with a surprise announcement of his own rather vague climate change proposals. Her thunder now somewhat stolen, Merkel is still hoping for a more concrete commitment from G8 members, which would ideally see them cutting their greenhouse gas emissions by 50 per cent by 2050.

C is for Countries The members of the G8 are the UK, the US, Germany, France, Japan, Russia, Canada and Italy. People tend to forget about the last two in pub quizzes.

D is for Development Expect much talk about the Millennium Development Goals: eight development targets agreed upon at the Millennium Summit in New York, in September 2000, to be achieved by 2015. Although more of a UN initiative than a G8 one (all 189 UN states signed the Mil-

E is for Education Universal Primary Education is one of the MDGs (Millennium Development Goals). In much of Africa in particular, only half or fewer of all children complete primary school. On the plus side, as of 2004, 20 million more African children are attending school. To meet the goal, another 47 million must be enrolled by 2010.

F is for Formality Technically, there isn’t any. Don’t be fooled by the suits, ties, armies of wonks and bottomless legions of aides and hangers-on. Unlike the UN or most other multinational bodies, the G8 is theoretically supposed to be an utterly informal meeting of national leaders.

G is for Gleneagles The Gleneagles G8 summit of 2005 is the recent summit that most remember, thanks largely to Bob Geldof’s simultaneous Live8 concert. Various commitments were made to write off Third World Debt and boost aid. Two years, on (reckons Debt Aid Trade Africa, at data.org ) the UK and Japan are broadly on track with their commitments, and the US and Canada have increased aid, but by less than they promised. Germany and France have not increased theirs, and Italy’s has actually been cut. Nobody seems quite sure about Russia.

H is for Heiligendamm Heiligendamm is the small Baltic beach resort where the G8 summit will be taking place. It was founded in 1793 by Friedrich Franz I, the Grand Duke of Mecklenburg-Schwerin, after a recommendation from his doctor, and is famed for its beautiful white classicist buildings.

Within Germany, this white town by the sea is often known as Die Weiße Stadt am Meer. This means The White Town by the Sea. A literal folk, the Germans.

I is for India and China Most estimates currently give China the fourth largest GDP in the world. India hovers at around number 10, but is the world’s most populous democracy. It is thus a little strange, many feel (especially if they live in India or China) that neither has a place in the G8. Particularly as, in terms of GDP, the World Bank places Canada at number nine (below poor, neglected Spain) and Russia (shaky in the democracy stakes) way down at 14.

So. This is where it all gets a bit confusing. For some meetings, the G8 includes India, China, Mexico, Brazil and South Africa, and is known as the G8+5.

For others it sits without Russia, and is known as the G7. Similarly, there is also a G11, a G33, a J8 and a D8, there used to be a P8, and there are two entirely separate G20s. Try not to worry about this.


J is for Japan Still the second largest national economy in the world, by quite a long way.

K is for Kosovo A potential diplomatic flashpoint. In brief, Russia doesn’t want Kosovo to become an independent state, and almost everybody else (bar the angry, angry Serbs) does.

L is for Leadership The presidency of the G8 rotates between the member countries. In 2008 the summit will be in Japan , and in 2009 Italy. The UK has its next turn in 2013.

M is for Mortality and also for Mothers Reducing child mortality and improving maternal health are two of the Millennium Development Goals. As of 2004 (reports the World Bank) large swaths of Africa and considerable chunks of Asia have a mortality rate among underfives of approaching one in ten. In parts of Africa, one mother dies for every 100 children born.

N is for Nukes Iran and North Korea are the obvious problems on the summit table, but there is also the growing row between Russia and the US over proposed American missile defences in Poland and the Czech Republic.

O is for Origins Surprisingly murky. The ball probably started rolling in 1974, when the US invited officials from the UK, West Germany and Japan to discuss the global economy.

The following year, perhaps not entirely by coincidence, the neglected French seized the initiative, and invited the leaders of Italy, West Germany, Japan, the UK and the US to a summit.

This began as the G6, expanded to become the G7 when Canada joined in 1976, and became the G8, with Russia added, in 1998.

P is for Poverty Another Millennium Development Goal.

By 2015, the aim is to have eradicated extreme poverty and hunger throughout the world.

There isn’t much chance of this. If current trends continue, the World Bank reckons, by then one in ten people will still be living on less than $1 a day.

Q is for Quantity Between them, the members of the G8 represent an estimated 65 per cent of the world’s economy. In global population terms, however, they represent a fraction of that. Particularly notably, there is not a single G8 member from the extremely populous southern hemisphere.

R is for Russia Ah, Russia. According to one US foreign policy expert (Simon Serfaty, of the Centre for Strategic and International Studies), Vladimir Putin is “the elephant in the room”. Russia has rumbling disagreements with the US over security, the EU over energy and the UK over shadowy events which may or may not have happened over tea in a London hotel. In a TV interview last week, George Bush was even moved to describe Putin as “my friend”. Things must be bad.

S is for Security Currently, Heiligendamm is surrounded by 12 km (7 miles) of protective fencing, and a 2km terrestrial exclusion zone, with another exclusion zone out to sea. The site has been sealed against nonaccredited individuals since last Wednesday, roads and rail lines have been blocked off, barriers have been built out to the sea, and 16,000 police are on duty. It’s like the beginning of a Die Hard movie.

T is for Transparency As far as Germany is concerned, top of the G8 agenda, even above climate change, is the very unsexy issue of transparency in hedge funds.

In essence (and quickly, before you doze off) German authorities are worried that the hedge fund industry is so huge, murky and opaque that it could destabilise the world economy.

Angela Merkel is keen to force hedge funds to be more transparent, but has backed down slightly in the face of resistance from the UK, the US and Japan, who feel that things are just fine. Can you guess where most hedge funds are based? Indeed. The UK, the US and Japan.

U is for the Great Unwashed By some estimates, there are as many as 100,000 protestors converging on Rostock, the nearest accessible city to Heiligendamm.

They are environmentalists, squatters, anti-globalisationists, anticapitalists, antiwar activists and antimany other things. Many are currently living in huge temporary tent cities dotted around Heiligendamm, and some may even have brought soap.

V is for Vaccination Combating HIV, Aids and malaria is yet another Millennium Development Goal, and was the subject of several pledges at Gleneagles. Tuberculosis is also a growing problem. Within Africa (says data.org) the provision of antiretrovirals to combat HIV has increased dramatically, although over 70 per cent of those who need them still aren’t getting them. Meanwhile, 18 million nets and 23 million malaria treatments have been distributed. Polio prevention has been a particular success, with Niger and Egypt removed from the list of polio-endemic countries in 2006. Nonetheless, in cash terms, most G8 members are failing to meet their commitments.

W is for Women Likewise, the Millennium Development Goals pledged to “promote gender equality and empower women”. In terms of progress, this is a tricky one to measure.

The World Bank monitors equality in education and equality in employment, and hopes to see equality throughout the former by 2015. Angela Merkel herself is the only female G8 leader, and the third in history, after our own Baroness Thatcher, and Canada’s Prime Minister of five months in 1993, Kim Campbell.

X is for Xenophobia When Russia headed the G8 in 2006, domestic xenophobia was a major issue. And thank God, because xylophones weren’t, at all.

Y is for Young People Not all of the young people gathering in Germany are wearing black jeans and hoodies with pictures of cannabis plants on them. Some are members of the J8, a junior G8 programme designed to “give young people from around the world the chance to voice their opinions on global issues and raise their awareness of their role as global citizens”. There ain’t no party like a J8 party. Possibly.

Z is for Zimbabwe Although Merkel has promised they will be discussed, the continuing problems in Robert Mugabe’s Zimbabwe are not likely to be a major issue at the G8 summit. Nonetheless, it does begin with a “Z”.
 
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Mission Mumbai: Rs12k crore set aside for city makeover
Sandeep Ashar
Wednesday, June 06, 2007 08:44 IST

Disaster preparedness, malls are on BMC’s radar

MUMBAI: Cleanliness and beautification drives, the upgrade of civic infrastructure, disaster preparedness, environment-friendly initiatives, and social welfare programmes will power Mumbai’s transformation’s mission in 2007. Presenting the Rs12,866 crore budget for the city on Tuesday, municipal commissioner Dr Jairaj Phatak said it was a “realistic budget that took the city’s priorities into account.” The Centre has added a few hundred crore rupees to the corpus.

Mumbai residents may find it heartening that although the BMC has provided an additional Rs3,258 crore this year, there will be no tax rise. The civic infrastructure will be granted a sizeable chunk (43 per cent) of the outlay. Another Rs2,353.63 crore will be deployed to buttress social infrastructure such as hospitals and schools.

The budget’s prime focus is on development initiatives such as the Mumbai Sewer Disposal Project-II, and BRIMSTOWAD that seeks to improve city’s storm water drains. But new and ambitious proposals, including the establishment of municipal malls at 10 locations and the commissioning of earthquake- and tsunami-risk assessment studies involving international experts, constitute some of the highlights of the budget.

The BMC wants to replicate the success of private malls and has set aside Rs15 crore for its foray into the area. “The idea is to provide facilities such as like vegetable markets, fruit markets, provision stores, and departmental stores under one umbrella,” said Manu Kumar Srivastava, the additional municipal commissioner. Municipal hawkers will be accommodated in the malls.

While a major anchor like an Apna Bazaar store will be included in the plan to increase footfalls. Acknowledging that development endeavours will not succeed without the empowerment of the urban poor, the BMC has apportioned Rs1,608 crore to elevate the lot of the city's underprivileged. Refurbishing of the infrastructure in age-old gaothans, adivasi padas and koliwadas will be undertaken this year.

Wholesale reforms were also proposed in the neglected education sector, including the provision of Re1 per day allowance to girl students for attending schools from this year. Other proposals include: financial assistance to bright girl students, initiation of 84 model English medium public schools, and the offer of incentives like free uniforms, school books, shoes, water bottles, and flavoured milk for 3.80 lakh students of municipal schools.

In fact, the current education budget of Rs1,098.55 crore is Rs318 crore more than last year's provision. Other sectors that received substantial allocations include water supply and sewerage works (33 per cent), and roads and traffic operations (17 per cent).
 
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