What's new

Indian Economy-News & Updates

How is the plan?

  • Good

    Votes: 161 61.7%
  • Average

    Votes: 53 20.3%
  • Poor

    Votes: 47 18.0%

  • Total voters
    261
Gordon Chang OMG .
What a anti-China guy :D

Most people picked China , haha . Rightly so , at this point there is no comparison between these two countries but demography is a massive advantage India has and we too are doubling our Economy in every 5 years.
 
Renault to invest Rs 4500cr in Chennai facility before 2015

Renault has big plans for India. The carmaker is looking to launch a hatchback using the Nissan platform and take on market leader Maruti. Renault also is in no mood to allow former partner - M&M to exploit the Logan platform. Remember, Renault and M&M have ended their India alliance.
In an interview with CNBC-TV18’s Shereen Bhan, Katsumi Nakamura, Head of Asia & Africa and Marc Nassif, Country MD, Renault India, speak about the company’s plans going forward.
Nassif said Renault's commitment is to invest Rs 4,500 crore, about 700 million euros before early 2015 in Chennai facility.
Below is the transcript of the interview. Also watch the accompanying video.
Q: You have talked about being able to acquire 2.5% market share in India by 2013. You are looking launching about five products in the next two years. Can now give us a sense of the kind of money that you have invested in India so far and the kind of investments that you will now be making because you have got a pretty aggressive product pipeline?
Nassif: The investment so far, the most visible one we have, is in Chennai facility which is an alliance investment. Our commitment is to invest Rs 4,500 crore, about 700 million euros before early 2015. That includes state of the art facility, which has a capacity today in terms of vehicles of 2 lakh, which we have decided to join it to extent. We will have 4 lakh capacity per annum installed by mid 2012.
Q: You intend to launch two SUVs, in a sense you are planning to take on your erstwhile partner Mahindra and Mahindra. I want to know if you are going to be hitting M&M where it hurts, which is in the Scorpio-Xylo price bracket. More importantly, where does your relationship with M&M lie, as far as the Logan, which is now called the Verito, is concerned? M&M would like you to extend the Logan platform to include hatchbacks as well. Is that something Renault India is agreeable to? Will you go beyond the current Logan variant in your relationship with Mahindra and Mahindra for the future?
Nassif: We have a clear and a friendly relationship with our friends from Mahindra. We have decided to go together that Logan should continue in the market. By the way Logan is highly appreciated product. The only thing that was missing is local masala which was attractive design and attractive look. The car has what Renault has built in terms of DNA—quality, robustness, sturdiness, reliability, comfort, fuel efficiency, roominess, ride and handling. The only thing that was missing was attractiveness. And that we got the message.
The cars, which we are bringing now, are quite appealing to the customer. Its atleast the feedback we are receiving today. The deal, the agreement, the discussion we have had with Mahindra so far allows them to do a sedan on that platform which we believe they are doing well. They have just re-launched the car under their brand and with a new name. Now it belongs to them to develop it and to do whatever they feel as long as they keep it as a sedan.
Q: A quick question to you and that is on the ultra low cost car that you are developing with Bajaj. What we know, which is public information at this point in time, is that Bajaj has developed a prototype. That this prototype is a four wheeler and it is able to do about 30 kmpl. Does Renault support this prototype? Have you seen this, do you support the concept and the idea?
Nakamura: I did not see the prototype. Renault is interested in such market and such inexpensive car offer to the customers. We are waiting for the detailed information on that prototype. But we have not seen it.

Q: You are going ahead with plans of launching a hatchback which will be on the Nisan platform that you and Nissan will jointly launch sometime next year to take on market leader Maruti Suzuki. But there has also been a lot of speculation that you are working on your own alternative of ultra-low-cost car, apart from the one that Bajaj is working on, is that accurate?
Nakamura: No, at this point we are just seeing the market.

Renault to invest Rs 4500cr in Chennai facility before 2015 - CNBC-TV18 -
 
Indian diesel prices higher than its neighbours :

062511-Indias-diesel-prices-higher-than-its-neighbours-equitymaster.gif
 
rs 27.8/l in bangladesh !! what the hell .....does bangladesh hv oil fields or what ?
 
Overseas investments by India Inc double to $43.9 bn in FY’11

Investments by Indian companies abroad have more than doubled in the previous financial year as they expanded their overseas operations, according to data released for the first time by the Reserve Bank of India.

Foreign direct investment (FDI) by Indian firms jumped more than two-folds in financial year 2010-11 to $43.9 billion from about $18 billion in the previous year, the data showed. FDI by Indian corporates was $5.1 billion in the first two months of the current financial year beginning April. Indian overseas investment policies have been liberalised over the years to promote exports and strengthen economic linkages with other countries.

“In the post 2003 period, the policy has enabled corporate entities and registered partnerships to invest in bonafide businesses abroad, currently to the extent of 400 per cent of their net worth, under the automatic route,” the RBI said in a release on its website. India has been facing a fall in foreign institutional investment due to global risk aversion, with foreign funds selling nearly $213 million of local shares so far in June, after offloading $1.16 billion in May.

However, FDI flows into India bounced back in April on an investment surge in services, construction and auto sectors, reversing a steep drop recorded in the previous financial year.

Outward FDI comprises investments in equity, loans and guarantees issued by Indian firms to their joint ventures or wholly owned subsidiaries (WoS). The biggest outward investment from India during May this year was by Gammon India Ltd, which pumped over $ 1.83 billion into its Panama-based joint venture, Campo Puma Orient SA. The Panamanian JV is engaged in the fields of agriculture, forestry, hunting and fishing. The investment was in lieu of both equity, as well as a loan to the subsidiary.

In May, Tata Steel invested $514.57 million in its Singapore-based subsidiary Tata Steel Asia Holdings PTE.

Tata Motors, also invested in its joint venture company in Thailand and a WoS in the United Kingdom. Religare Enterprises invested $166 million in its wholly owned American subsidiary, Religare Global Asset Management Inc.

Overseas investments by India Inc double to $43.9 bn in FY’11 - Indian Express
 
India: Tata becomes India's wealthiest group
_53532086_53532083.jpg


The combined value of the Reliance groups, led by feuding brothers Mukesh and Anil Ambani, is $81.6bn.

The Tata group, led by Ratan Tata, is worth $98.7bn (£60.9bn), according to the company.

The change is partly the result of the strengthening share prices of the almost 30 listed Tata companies.

These firms are in a range of industries from energy to chemicals.

But it is also due to the fall in the market value of the Ambani brothers' firms over the past year.

The Reliance group of companies has faced challenging times as a company riven by family feuds and disputes.

Run by Mukesh Ambani's brother Anil, the telecoms company has faced a slump in its share prices as a result of a high profile scandal involving licences for second generation phones.

Tata's elevation to India's most valuable quoted company indicates a marked reversal from a year ago in the fortunes of the Tata and Reliance groups, the BBC's Nidhi Dutt in Mumbai (Bombay) says.

Despite having many more companies listed on the Indian stock exchange in 2010, Tata ranked behind Mukesh Ambani's Reliance Industries, which held the top slot. Reliance has interests in the petrochemical and energy sectors, but only two listed firms.

But one year on, Tata is now not only worth more than Reliance Industries, but both it and Reliance Communications combined.

Source - BBC
 
27 June 2011 Last updated at 12:46 Share this pageEmailPrint
25
ShareFacebookTwitter
What is wrong with the Indian economy?
By Paranjoy Guha Thakurta
Delhi

Food inflation is hurting poor Indians
Continue reading the main story
Global Economy

Crucial week in store for Greece
US retail sales slip back in May
China inflation at 34-month high
Indian inflation rate exceeds 9%
The irony was inescapable for Indians when last Friday global oil prices tumbled, yet the government announced a hike in the prices of diesel, kerosene and cooking gas.

Such a move will further stoke inflation in Asia's third largest economy. India's wholesale prices have already increased by 9.1%, and looks certain to touch double digits in the days to come.

High inflation is hurting growth. The government thinks GDP growth will slow to between 7.5 to 8% during the fiscal year ending April 2012, down from 8.5% between 2010-11.

No wonder then that the stock markets have been bearish. Foreign investors - both direct and portfolio - are suddenly wary of pumping money into one of the world's largest and fastest-growing economies.

The upshot is that India's once booming stock markets are presently under-performing and are well below the peak levels of January 2008.

Slowdown
Industrial production has also slowed, dragged down by a slump in capital goods output.

To add to these worries, foreign direct investments (FDI) have fallen by a quarter, they are $19bn (£11.9bn ) this fiscal year, down from $25bn (£15.7bn) in 2009-10.

What is going wrong with the Indian economy, the fourth largest in the world in terms of purchasing parity?

Clearly, a number of internal and external factors are to blame.

Inflation is one and Prime Minister Manmohan Singh has warned that the country's rapid economic growth is under "serious threat" from inflation.


India imports 84% of its oil
What is worse for India's poor - at least one out of four people survive on less than a dollar a day - is that overall inflation is being led by high food prices, especially the prices of protein items and also of vegetables, fruit and dairy products.

Inflation is also being fuelled by a surge in international oil prices - India imports 84% of its oil.

The government says it is being forced to increase fuel prices because of costlier imports, the mounting losses of the state-run petroleum refining and marketing companies and widening budget deficits.

To tame inflation, India has tightened monetary policy, raising interest rates 10 times since March 2010.

With money becoming dearer to borrow, investments have slowed down.

India was able to buck the global recession in 2008 to a large extent by increasing spending on welfare schemes, including a massive jobs for work programme in villages.

Before the recession, the economy grew at nearly 9% for four years in a row, slowed down to just over 6.5% in 2008-2009, and then rose to 8% the following fiscal year.

The Congress-led government has come under fire not being able to rein in inflation, particularly double-digit food inflation.

It has also been rocked by a number of corruption scandals, which have dented its image.

The biggest of these is the telecoms scandal, where a former minister is accused of selling mobile phone licenses to firms at a fraction of their real value in exchange for bribes in 2008. The minister denies the charges.

Creaky
Not surprisingly, foreign investments in the world's second-largest market for mobile phone services have come down sharply in recent months.


Industrial production has slowed down
And no new economic initiatives appear to be under way barring a right to food law.

The government's critics say much remains to be done to create jobs and improve India's creaky infrastructure.

In large parts of the country, electricity supply is erratic, roads are in poor condition and water supply is uncertain.

The country's healthcare and education systems are badly in need of resources.

Agriculture, which provides more than half of India's population a precarious livelihood, has grown at a relatively tardy pace.

Even the services sector - including computer software and business process outsourcing companies - are not growing as fast as they were on account of the slow and uneven recovery from the recession in the West.

Despite comfortable stocks of wheat and rice, the distribution of cereals is inefficient. The problem is compounded by poor storage facilities.

India's farmers are vulnerable since 60% of the country's farms are rain-fed without any irrigation facilities and dependent on a four-month-long monsoon during which 80% of the year's total rainfall takes place.

Although many predict a good crop as a result of the current monsoon conditions, prices of food may not fall immediately.

So there appears to be no short-term solution in sight to end the misery of high prices and low growth.

The author is a leading analyst on the Indian economy

BBC News - What is wrong with the Indian economy?

Guys what do you think? Long term prospects :tup::tdown:??
 
That guy is hyping some things .
WE all know what he has written abt inflation , FDI decrease etc
 
Noob question-Today,I saw an American financial expert(or something like that!) say that India has outgrown it's FIN!What does that mean?!
 
That guy is hyping some things .
WE all know what he has written abt inflation , FDI decrease etc

Ok, fair enough- some things might be sensationalised, but are these issues being addressed? I mean 8% growth down to 7.5% is very serious (even from my POV as an amateur economist). Can we expect a upturn anytime soon and the realisation of double-digit growth?
 
Growth has mainly been impaired by inflation due to rising oil prices and food inflation....... as oil prices have tumbled a bit, we can hope that the prices in india will too decrease but as for food inflation - that's only due to limited supply with growing demand. With a good monsoon we can hope for food supply to increase hence bringing down the food inflation but for the long term we need to invest in our agricultural sector- increase productivity while decreasing our dependence on the monsoon by providing decent irrigation facilities.
 

Pakistan Affairs Latest Posts

Back
Top Bottom