Indian Economy-News & Updates

[sensenreason]

"Small cars will account for 95% of the 690,000 passenger vehicles India will export in 2015, according to Tim Armstrong, Paris-based director of IHS Global Insight Inc. In 2016, India may share the top slot with Japan as the world’s biggest small car producer, building as many as 3 million units. “All of India’s expertise has been the small car,” Armstrong said. “So, obviously, it’s a natural place to turn to” to set up export units"

I think its better if India exports imports the components and assembles it and exports rather than using Indian steel/alumium..as these are finite resources...let China do the exports using these kind of mineral/metal reserves...

 

[EjazR]

Turkey : Turkey-India FTA on cards - General News Turkey

Turkey is eager to sign a Free Trade Agreement (FTA) with India in order to improve bilateral relations further among the two countries, said State Minister, Mr. Mehmet Aydin. The country is interested to co-operate in contracting, energy and housing industry, he added.

He revealed this during signature ceremony of the protocol of Economic and Technical Co-operation Joint Committee meeting, signed between Turkey and India at the Foreign Trade Under-Secretariat. Trade relations among the two countries are showing a considerable improvement in past five years.

The total trade volume in the year 2007 was US $2.6 billion, and a target has been set to raise it up to $5 billion by 2012 and to $10 billion by 2020, informed the Minister.

Several business communities in both the countries would enjoy a well-designed and smooth atmosphere for trade and economic relations, once the proposed FTA agreement is signed, he added by saying

In this regard, Mr. Anand Sharma, Indian Minister of Commerce and Industry, said that India wants to co-operate with Turkey in industries such as informatics, energy, textile and automotive. A joint working group should be created by two countries, he added.

There has been a year-on-year increase of 56 percent in Turkish exports to India which reached $543 million in the year 2008 against $348 million in 2007. Turkey mainly exports poppy seeds, marble and travertine, iron, steel and vehicles; while it imports man-made fibres, chemicals, automobiles and cotton.

 

[advaita]

@sensenreason
Bro doesnt work that way. Small car are the next big thing for exports. And it requires some pretty strong engineering skills. Today these cars are made of aluminium/steel and run on gas tomorrow these cars will probably be made of cheap composites and will probably run on battery power or combination of fossile fuels and electric power. All this requires a mind set that is not dependent on resources and there trading but a mind set of value addition and continuous organic development of engineering skills and economic value.
If we process our steel/aluminium into these low cost cars for western markets which will be forced to buy such vehicles because of Hubards peak oil then we can always buy the scrap aluminium and steel from open market, after these products are past their useful productive life.


@EjazR
I really believe FTA (s) should be signed and exploited one or two at a time. At present Asean is enough. Too many FTAs would mean exposing ourselves to too many variable (some with appreciating currencies and some with depreciating currencies) that we may not be able to use (because of similar value chains). Asean has both types of countries, some above us in the value chain and some below us. This promotes a balanced trade cycle.
China FTA has to be avoided at all cost at the moment. Their currency is unnaturally depreciated by about 15% or so. Enough to kill off any Indian competency.
China FTA is something to be wished upon the Pakistanis, for at least next few years.
In fact Saarc (or whatever the name) perhaps may have an FTA. Since all the economies have a higher debt to GDP ratios and low export GDP, that forces them to prevent artificial depreciation of their currencies. BDs also keep hankering for Road networks, that too is a good idea though obviously only with a fair quid pro quo.

IMO only

 

[ironman]

India, Turkmenistan talk TAPI pipeline
Published: Sept. 21, 2009 at 12:40 PM

ASHGABAT, Turkmenistan, Sept. 21 (UPI) -- A delegation from New Delhi met officials from the Turkmen government to discuss the terms of the Turkmenistan-Afghanistan-Pakistan-India pipeline.

Somanahalli Mallaiah Krishna, the Indian external affairs minister, met with Turkmen President Gurbanguly Berdimuhamedov to discuss a series of bilateral trade initiatives in agriculture and natural gas.

Both sides focused their discussions in part on the provisions of the Turkmenistan-Afghanistan-Pakistan-India pipeline, the Indo-Asian News Service reports.

The project is funded by the Asian Development Bank to exploit gas reserves in Turkmenistan, among the largest in the world.

The 1,044-mile TAPI pipeline is seen as a rival to the long-delayed Iran-Pakistan-India natural gas pipeline from the Iranian South Pars gas field. Security of the TAPI route through Afghanistan is an impediment, though in 2008 the Afghan government made several pledges to relieve those concerns.

Washington opposes IPI as it would provide an economic benefit to the sanction-strapped Tehran.

Iran and Pakistan have moved forward with IPI in a bilateral fashion, telling New Delhi it may join the project at a later date.

 

[ironman]

India to lead second wave of IT adoption: IBM

India may lead the second wave of IT (information technology) adoption as companies here kept up investments despite the recession and seemed more forward-looking than their counterparts globally, according to IBM Corp.
Forty per cent of Indian companies, surveyed by IBM in July, said they wanted to be first to adopt a new technology, while only 11 per cent said they would wait till technology was widely available.
"In India, companies have cut back less and have really continued their investments. I think India is poised to lead the second wave of IT adoption and small-and-medium businesses (SMBs) are the engines driving this economic growth," said IBM Corp's Vice President General Business and Marketing, Surjit Channa.
"I know of many companies that suffered from the recession but Indian companies have continued and survived...because they seem to be more forward-looking than their counterparts in the West and round the world," Channa said.
The recession had forced 37 per cent companies worldwide to slash their IT budgets compared to only 15 per cent in India, the survey said.
The US-based multinational has identified India as one of its major growth markets and will continue to invest here along with Brazil, China and Russia.
"We embarked on a geographical expansion in India and opened 13 new offices in Tier II cities. We will continue to invest here and in other growth markets, mainly BRIC countries," IBM India/South Asia Director Ramesh Narasimhan said.
IBM intends to cash in on the business coming from SMBs, which represent more than 90 per cent of all businesses and employ over 90 per cent of the world's workforce, producing more patents than large firms.
IBM's General Business unit accounts for about 20 per cent of the company's total revenue worldwide and is one of the fastest growing units for IBM India.
"The SMB market is, and will remain, a key focus for IBM India. Mid-size business is important to IBM as 75 per cent of the worlds GDP comes from SMBs," Channa said.
Today, companies are under pressure to act quickly in response to economic uncertainty and maximise returns on their investments while improving service to customers, at lower risk and reduced budgets, he added.
"We are reducing cost, improving service delivery and enabling business innovation for SMBs. IBM will continue to invest in the mid-market," Channa said

 

[AnGrz_Z_K_Jailer]

$2 bn telecom contract to be up for grabs soon


NEW DELHI: The domestic market in India is set to see a significant game changer with one of the largest IT and telecom hardware contracts, worth India's leading Telecom companies
around $2 billion (Rs 10,000 crore), to be up for grabs soon. The mega project involves creating a nationwide 43,000-km long alternate communications network for the armed forces, who in turn will vacate a bulk of the radio frequencies or spectrum they currently occupy for commercial telephony. Spectrum is the lifeline for mobile telephony as all communication signals travel on these airwaves.

The Request for Proposal (RFP) of the project, which has been in discussion for over two years, is set to be issued by the month-end on BSNL’s website as the telco will execute the contract.

At present, the detailed project report is being prepared by the representatives of the Army & Navy in collaboration with BSNL. The contracts will be awarded within 60 days after the project report has been cleared by the Telecom Commission and the union cabinet, says a Department of Telecom (DoT) note on the issue. In the first of its kind in India, all successful bidders will have to transfer technology, manufacture all key components in collaboration with domestic firms and also part with their IPR due to the security implications of the project.

Given the scale of the project, it is unlikely to go to a single vendor and multiple vendors could comprise a combination of private and public entities. According to sources, for project companies such as TCS, Infosys, Wipro, HCL, Tech Mahindra and state-owned outfits like C-DAC, ECIL and BEL, along with telecom equipment majors such as Motorola, Ericsson, Alcatel Lucent and Nokia Siemens Networks, are likely to be among the bidders.

An added incentive for successful bidders is that following the completion of this project, the Centre will then hand out an additional Rs 5,000-crore project to manage and maintain this network for the next 10 years.

Successful equipment vendors will have to manufacture all core components in India, failing which they have to enter into collaborations with state-owned companies such as Indian Telephone Industries (ITI) and BEL to fulfil this obligation, a government official associated with this project told ET. IT majors too will have to share IPR rights for their services with BSNL and other state-owned entities such as C-DAC.

In May 2009, the communications and the defence ministry had signed an MoU, under which the armed forces will release up to 45 MHz of radio frequencies over a three-year period, of which 25 MHz would be for the 3G services and the rest for 2G, the airwaves on which all communications services in the country are currently offered. As per this agreement, the defence forces must also release two blocks (10 MHz) of 3G airwaves and one block of 2G frequencies immediately while the remaining would be released in phases over a three-year time frame, based on the progress or completion of this alternate communications networks. The cost of the alternate network for the Air Force is Rs 1,077 crore while it will be Rs 8,893 crore for the Navy and Army combined.

 

[Ruag]

​

NEW DELHI (Reuters) - The Asian Development Bank on Tuesday raised India's growth forecast for 2009/10 on higher public spending, stronger factory output and improved business confidence, but warned rising fiscal deficit is unsustainable.

In the Asian Development Outlook 2009 update, the bank lifted the growth forecast for the year to end-March 2010 to 6 percent from earlier 5 percent.

In 2010/11, it expects the economy to grow by 7 percent from the previously estimated 6.5 percent on hopes of better rainfall and a rebound in exports.

In the 2008/09 fiscal year, India's economy grew 6.7 percent, its weakest in six years and well below rates of 9 percent or more in the previous three years.

To offset the pain of the global downturn and stimulate demand, the government stepped up spending and reduced tax rates.

The central bank cut its main lending rate by 425 basis points from October 2008 to April this year and injected massive liquidity into markets.

"The government's strong fiscal stimulus, complementing the Reserve Bank of India's (RBI) aggressive monetary policy easing, has successfully brought last year's economic slowdown to an end," the ADB said.

ADB lifts India's FY10 growth forecast to 6 pct | Business News | Reuters

 

[warlock21]

^^^ Various FII already said this in last 3-4 months..... but the problem is Tremendous bouyancy in the system...... GoI is pumping Money in system like any thing through various allowences to Govt. Employees and stimulus to corporates........ due to which inflation is starting itching up.... if it again reach the previous levels.. then become cause of worry for every one...

GDP may grow a bit faster then 7% claim... because effect of drought almost negeted by late monsoon rains.

 

[Ruag]

India ‘Waking Up’ to Extended Period of High Growth, UBS Says

Sept. 22 (Bloomberg) -- India may be “waking up” to an extended period of high-trend economic expansion that will cause incomes to triple over the next decade, according to UBS AG.

“India is about to resume an extended period of high economic growth,” Philip Wyatt, a senior economist at UBS in Hong Kong, said in a report today. The pace of expansion may average about 8.6 percent annually over the next 10 to 15 years.

Faster growth is crucial to Prime Minister Manmohan Singh’s goal of cutting poverty in a nation where three quarters of the population of 1.2 billion live on less than $2 a day. Singh, who won a second five-year term in May, has said that India needs a sustained expansion rate of 9 percent to improve the livelihoods of the poor and create more jobs.

A higher savings rate, helped by a younger population and export-led industrialization are among the main factors that will drive a sustainable step-up in economic growth, UBS said.

“We think the stage is set for rising manufactured exports and industrialization, possibly explosively, over the next 10 to 15 years as India takes some export share away from China’s overarching dominance,” Wyatt said.

Companies including Volkswagen AG, Toyota Motor Corp. and other car manufacturers have announced plans to spend more than $6 billion through 2012 to build factories in India.

Suzuki Motor Corp., Hyundai Motor Co. and Nissan Motor Co. are making India a hub for overseas sales, helped by cheaper labor and a surging domestic market.

Exports Double

Maruti Suzuki India Ltd.’s exports more than doubled to 79,860 units this year. The company aims to ship 130,000 vehicles in the year to March, 86 percent more than last year, according to Chairman R.C. Bhargava.

A younger population will also drive growth, Wyatt said. “The dependency ratio continues to drop and has at least another 10 years worth of distance to go before flattening out like Japan in the 1960s or Korea in the 1970s,” he said.

India’s per capita income may triple in the next ten years and rise by about 5 times by 2025 to well over $10,000 from the present $3,000, Wyatt wrote. Higher incomes will result in higher consumption for items like steel, cement and oil, he said.

“If we take individual commodities like steel, cement and oil we can observe that India is entering the zone of accelerating consumption per capita,” according to UBS.

India’s $1.2 trillion economy expanded 6.7 percent in the year to March 2009. That compares with an average growth rate of about 8.8 percent in the previous five years.

India ?Waking Up? to Extended Period of High Growth, UBS Says - Bloomberg.com

 

[Rank]

^^^ Various FII already said this in last 3-4 months..... but the problem is Tremendous bouyancy in the system...... GoI is pumping Money in system like any thing through various allowences to Govt. Employees and stimulus to corporates........ due to which inflation is starting itching up.... if it again reach the previous levels.. then become cause of worry for every one...

GDP may grow a bit faster then 7% claim... because effect of drought almost negeted by late monsoon rains.

Frankly speaking i have 100 of friends belongs to india one of my very good friend wish me happy eid yesturday and we were discussing about the situation. I said to him that now adays India economy is too much thats why maybe your GOI spending soo much money on weapons after What he said to me guess what ?

"Seriously WE DONT CARE ABOUT OUR ECONOMY GROWTH" our people death ratio too much... poverty rate incresses daybyday ... no food nuthing 90% of population under povrty! all such so called economy money goz to our GOI pockets nuthing for us"

So thats your Economy ???

 

[grey boy 2]

Congrate. My Indians friend for 7% growth in 2010;

Its getting pretty close to China 8.9% in 2010.

Way to go.

By the way, do you know there is a thread India economy update

for your post ?

 

[oct605032048]

congratulations！

 

[warlock21]

@ chinese Members...

some International Media( fund managers actually) reports are saying tht Chinese GOvt. buying Gold in huge volume..... wht is the reason......

Is there any News regarding Rio Tinto Deal?

 

[warlock21]

Frankly speaking i have 100 of friends belongs to india one of my very good friend wish me happy eid yesturday and we were discussing about the situation. I said to him that now adays India economy is too much thats why maybe your GOI spending soo much money on weapons after What he said to me guess what ?

"Seriously WE DONT CARE ABOUT OUR ECONOMY GROWTH" our people death ratio too much... poverty rate incresses daybyday ... no food nuthing 90% of population under povrty! all such so called economy money goz to our GOI pockets nuthing for us"

So thats your Economy ???

Wht u say for this...

 

[grey boy 2]

@ chinese Members...

some International Media( fund managers actually) reports are saying tht Chinese GOvt. buying Gold in huge volume..... wht is the reason......

Is there any News regarding Rio Tinto Deal?

Buddy; Don't always look at things with a supicious mindset;

Sometimes the reason could be as simple as gold hold value.

Or may be you can read whats the article below say.

Why China wants to buy $93 billion worth of gold | 01 March 2009 | www.commodityonline.com

Concerning your next question; is it that difficult to do a little google ?