Indian Economy-News & Updates

[fallstuff]

As sad as I am to say this, I don't think this will be possible. Living standards in the West are going to drop dramatically soon. Developing countries like, China, India and Pakistan will never be able to have the massive GDP per capitas required for the quality of life in the West.

On what year you were awarded the Nobel prize for Economics ?

 

[fallstuff]

GDP set to jump fourfold to $4.5 trillion by 2020: Edelweiss

GDP set to jump fourfold to $4.5 trillion by 2020: Edelweiss- Indicators-Economy-News-The Economic Times

The economy is set to grow four times over the next ten years to a hefty Rs 205 trillion from Rs 53 trillion in the last fiscal, says a report.

"Driven by a nominal annual growth rate of 13 per cent, GDP is set to quadruple over the next ten years and the country is likely to be a Rs 205-trillion (USD 4.5 trillion) economy by 2020," financial services company Edelweiss Capital said in its report--'India 2020: Seeing, Beyond,' which was released here today.

The report focuses on three super themes--financial services, private domestic consumption and physical infrastructure.

According to the report, gross domestic savings would grow by 3.8 times from Rs 19 trillion in FY09 to Rs 72 trillion in FY20.

"Over the next 10 years, the incremental financial savings (Rs 172 trillion) will equal four times the total financial services over the past 40 years," it said.

The report has forecast that domestic consumption expenditure is set to triple from Rs 30 trillion in FY09 to Rs 113 trillion in FY20.

"There will be a movement from essential items of consumption such as food, clothing and footwear, among others, to discretionary items and economic enablers such as healthcare, education, recreation, amongst others," the Edelweiss report said.

Investment in infrastructure is also set to witness a threefold increase from Rs 21 trillion during the 11th Plan (FY2008-12) to Rs 62 trillion between FY10 and FY 20, the report said.

The report has also said a massive growth is expected over several sectors such as banking, broking, asset management, life insurance, domestic pharma and healthcare, media and entertainment, education, premium urban housing and organised retail sector.

I hope that it becomes real. I second the poster who said some where in this thread, "Its about time."

Years ago when I was in college in South Florida I took an English writing class ( mandatory). Our assigned reading text had an essay by Dr. Martin Luther King Jr. Dr. King mentions about an old black male singer used to sing a song, " I have been down for so long, down don't bother me no more."

What you can or can't do is all in your head. Its time to charge along.

 

[indopak]

Tata Motors to Build Heavy Truck Plant in Myanmar

NEW DELHI--Tata Motors Ltd., India's biggest auto maker by revenue, said Monday it has signed a pact with Myanmar Automobile & Diesel Industries Ltd. to set up a factory for making heavy trucks in the Southeast Asian country.

The factory at Magwe in Myanmar is expected to be operational during January-March 2011, Tata Motors said.

The factory will have an annual capacity to make 1,000 vehicles and can be expanded to 5,000 a year, it said.

The company didn't give any financial details, but said the project will be funded by a line of credit from the Indian government.

Tata Motors to Build Heavy Truck Plant in Myanmar - WSJ.com

 

[Optimus]

Tata Motors to Build Heavy Truck Plant in Myanmar

NEW DELHI--Tata Motors Ltd., India's biggest auto maker by revenue, said Monday it has signed a pact with Myanmar Automobile & Diesel Industries Ltd. to set up a factory for making heavy trucks in the Southeast Asian country.

The factory at Magwe in Myanmar is expected to be operational during January-March 2011, Tata Motors said.

The factory will have an annual capacity to make 1,000 vehicles and can be expanded to 5,000 a year, it said.

The company didn't give any financial details, but said the project will be funded by a line of credit from the Indian government.

Tata Motors to Build Heavy Truck Plant in Myanmar - WSJ.com

It is sad that India is dealing with non democratic/military countries - We should in our string voice protest against the atrocities committed by the Military Junta in Burma.

 

[Spitfighter]

^^Its none of our business.

 

[Justin Joseph]

^^Its none of our business.

yes, why should we fall to US and west's propaganda. It will have serious implications for us as Myanmar will fall into China's hands.

 

[Justin Joseph]

Infra investment must be doubled to $1 tn in 12th Plan: PM

23 Mar 2010, 1439 hrs IST, PTI

NEW DELHI: Prime Minister Manmohan Singh on Tuesday said investment in infrastructure should be doubled to about Rs 41 lakh crore during the 12th

Five Year Plan ending 2017 from the prevailing level, and directed concerned authorities to work out the details.

"Preliminary exercises suggest that investment in infrastructure will have to expand to $1,000 billion in the 12th Five Year Plan. I urged the Finance Ministry and the Planning Commission to draw a plan of action for achieving this level of investment," he said at a conference on building infrastructure hosted by the Planning Commission.

In a foreword to a report on Investment in Infrastructure, Planning Commission Deputy Chairman Montek Singh Ahluwalia also said the country needs an investment of over one trillion dollars in the next Five Year Plan.

"A preliminary assessment suggests that investment in infrastructure during the 12th Plan would need to be of the order of about Rs 40.99 lakh crore ($1,025 billion) to achieve a share of 9.95 per cent as a proportion of the GDP," Ahluwalia said in the report.

The Prime Minister said the 11th Five Year Plan targeted Rs 20 lakh crore for infrastructure development, double the amount achieved in the 10th Five Year Plan.

Yesterday, the Planning Commission had said investment in the infrastructure sector in the Eleventh Five Year Plan (2007-12) will be close to the target of $500 billion, thanks to a better-than-expected show by the telecom sector.

At the Conference, Finance Minister Pranab Mukherjee said the government is aware of the unfinished agenda in infrastructure development, which is necessary for a return to a high growth path of over 9 per cent.

On infrastructure bottlenecks, he said, power deficit and the aggregate losses of around 30 per cent due technical and commercial faults are worrisome. Less-than-expected capacity addition in the port sector, a huge investment backlog in railways and low penetration of broadband services were flagged as other concerns.

Infra investment must be doubled to $1 tn in 12th Plan: PM- Infrastructure-Economy-News-The Economic Times

 

[Justin Joseph]

Japan's Suzuki to invest $553.8 million in engines, India R&D

23 Mar 2010, 1429 hrs IST, REUTERS

NEW DELHI: Japan's Suzuki Motor Corp would invest 50 billion yen ($553.8 million) in expanding engine capacity and on research and development
in India, its Chairman Osamu Suzuki said on Tuesday.

The total amount, to be spent over two years, would be roughly equally split between engines and R&D, a spokesman for its Indian unit Maruti Suzuki told reporters.

Suzuki is in India to mark the roll-out of the millionth car from the Maruti portfolio and also to lay the foundation for capacity expansion at its plant in Manesar in northern Haryana.

Germany's Volkswagen AG owns 19.9 percent in Suzuki.

Japan's Suzuki to invest $553.8 million in engines, India R&D- Automobiles-Auto-News By Industry-News-The Economic Times

 

[Justin Joseph]

Work on 12 new airports likely to start soon: Patel

23 Mar 2010, 1434 hrs IST, PTI

NEW DELHI: Construction of 12 greenfield airports in different parts of the country is likely to start soon with the government granting them approval, Civil Aviation Minister Praful Patel said on Tuesday.

He also announced that the new integrated terminal of the Indira Gandhi International Airport here, which would enable domestic and international operations from under a single roof, would be inaugurated on July 3.

Addressing an infrastructure conference organised by the Planning Commission, Patel said "the real test for the Indian aviation sector is to create more (infrastructure) facilities ... Approvals have been granted to 12 new greenfield airports in different parts of the country."

These include two aerotropolis projects at Durgapur in West Bengal and Ludhiana in Punjab.

He added that the government's policy to allow 100 per cent foreign direct investment in the construction of greenfield airports was a key factor which was attracting huge investments in aviation infrastructure.

Several leading airport operators and related companies had invested or formed joint ventures with Indian partners in these projects, Patel said, adding that Indian firms had also started participating in global bidding for airport and aviation infrastructure projects.

"I am sure that Airports Authority of India will also be bidding for many international projects in the future," he said.

Noting that land acquisition was a major area of concern, Patel said "we will have to closely work with the states because airports cannot be made 100-200 km away from the cities. They have to be in close proximity".

Observing that India had several cities with large populations which were not connected by air, he said there was a huge potential for developing greenfield airports.

In this context, he said the potential was reflected in the fact that in 2004, India had 50 operational airports which grew to over 90 in five years. "This will grow".

The Minister also pointed out that the penetration of civil aviation in India was among the lowest, with the country having a ratio of 2.89 million passenger per aircraft compared with 0.05 million in the US.

Maintaining that an airport was "faster and cheaper" to build than road or rail heads, Patel said this was "a challenge as well as an opportunity" for domestic and foreign investors to come forward.

Work on 12 new airports likely to start soon: Patel- Airlines / Aviation-Transportation-News By Industry-News-The Economic Times

 

[Justin Joseph]

Indian IT poised to gain from US health reforms
Mini Joseph Tejaswi, TNN, Mar 23, 2010, 05.48am IST

BANGALORE: US president Barack Obama’s $871-billion healthcare reform has brought cheer to Indian healthcare BPO and IT service providers.

Although the reform may not result in heavy healthcare technology outsourcing from the US — as it does not talk about any major re-architecturing, re-engineering or system overhauling of the existing platforms — it is expected to bring in windfall benefits to domestic BPO providers who are focussed on insurance and claims processing domains. Indian healthcare IT providers mostly focus on systems integration, application management, maintenance and legacy modernisation.

Minneapolis-based healthcare expert Dr Saji Salam said, ‘‘All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs.''

The reform will bring 32 million poor and emigrant Americans under insurance cover. Insurance firms will look at outsourcing partners to help them enrol new members and process their call and claim needs. Rising cost pressures will force insurers and hospitals to concentrate only on a few core functions such as benefit and services design, sales and marketing, while outsourcing back-office functions like member database management, claims processing, support services and enrolment processing.

Sanjiv Kapur, head, Patni BPO, said he saw significant healthcare outsourcing opportunity in BPO and IT areas. "The reform extends coverage to millions of Americans, which means we will see a significant influx of the newly insured into the healthcare system. The additional enrollees will need to beadministered as and when it happens. This means a lot more work in areas of claims processing, enrolments, underwriting support and customer support.''

K Vinayambika, senior V-P, healthcare practice, Cognizant said the company had been benefiting from opportunities spawned by regulatory changes in the US healthcare and life sciences industry, be it HIPAA or ICD-10/5010 in the healthcare and pharma spaces. ‘‘The new bill will create newer opportunities for healthcare players like us,'' she said.

The reform also brings an opportunity for medical transcription providers as electronic health records (EHRs) implementation is likely to undergo some changes. "It will mean a change from paper records to electronic ones, mandatory for all healthcare institutions," said Raman Kumar, CEO, CBay Systems, a medical transcription firm.

Indian IT poised to gain from US health reforms - India Business - Biz - The Times of India

 

[abdul1]

India and China lift millions out of slums: UN

India has lifted 59.7 million people out of slum conditions since 2000. Slum prevalence fell from 41.5 per cent in 1990 to 28.1 per cent in 2010. This is a relative decrease of 32 per cent, the study found, according to the report called State of the World’s Cities 2010/2011.

 

[ashisbutt]

Well, this has nothing to do with the economy. But I still want to show some light to this. Thank you.

If pic dosn't show up then please use this linl

http://01176647652825009567-a-g.googlegroups.com/attach/a0025ad8da3f2a20/image001.gif?view=1&part=4

 

[Justin Joseph]

Dell Switching PC Exports from China to India

Mar. 23 – Dell Computers have made its first exports out of India from its PC manufacturing plant in Sriperumbudur, Tamil Nadu. This may be an early sign that the PC export sector, long dominated by China and Taiwan, will start to face competition from India based manufacturing units.

Dell is believed to be exporting several thousand desktop computers a quarter to the Middle East. The Sriperumbudur plant has the capacity to make one million units a year, and most of the production from the plant so far has serviced the rapidly growing domestic market, where Dell sold about 850,000 PC units last year.

Recent and continuing changes in India’s tax base now make it cheaper for Dell to supply from India rather than from China, especially to countries in the Middle East, Africa and Europe. Export infrastructure improvements have also made a difference and are now starting to kick in. Nokia has also been exporting hand phones from its plant near Chennai and has said it intends to make India one of its export hubs in the future.

Dell Switching PC Exports from China to India | 2point6billion.com - Foreign Direct Investment in Asia

 

[abdul1]

Economy to touchnbsp$25 tn in next 5 years Sharma

Commerce and Industry Minister Anand Sharma on Tuesday expressed confidence that the size of Indian economy is likely to double to $2.5 trillion by 2015.

"We will see India doubling its GDP in the next five years to $2.5 trillion," Sharma said at the 44th convocation of the Indian Institute of Foreign Trade (IIFT).

India is the second fastest growing economy in the world after China even as the developed economies are just coming out of the shocks of the financial tsunami.

India's GDP was estimated at $1.2 trillion in 2008-09.

Prime Minister Manmohan Singh today expressed confidence the Indian economy would grow by 8.5 per cent in the next fiscal and accelerate to nine per cent the following year from an estimated 7.2 per cent this fiscal.

 

[Justin Joseph]

Bharti seals deal with Zain for $10.7 bn

NDTV Correspondent and Agencies, March 24, 2010 (New Delhi)

Bharti Mittal's multi-billion dollar African acquisition has finally been sealed. The board of Zain, Kuwait's largest mobile firm, has approved the sale of its African assets to India's largest telecom firm Bharti Airtel for $10.7 billion (Rs 49,000 crore).


The Zain deal will give Bharti access to 42 million customers across 15 African markets, creating the world’s ninth-largest wireless operator with combined sales of $13 billion. Bharti and Zain are hoping to conclude the deal in the next couple of days.

Bharti Airtel on Sunday had said it tied up $8.3 billion from a clutch of foreign banks and State Bank of India to fund the acquisition of Zain telecom's African assets.

"Bharti Airtel is pleased to announce that the entire financing requirement of $8.3 billion for the proposed acquisition of Zain's African unit (Zain Africa BV) has been successfully tied up," the company said in a statement.

"Financing was oversubscribed, with major international banks committing to underwrite the total amount," the statement added.

Bharti's lead-arranger and lead-advisor Standard Chartered Bank has committed the highest amount at $1.3 billion followed by $0.9 billion by Barclays, sources close to the development said, adding both have more capacity to underwrite, if required.

While rest of the co-advisors--ANZ,BNP, Bank of America-Merrill Lynch, Credit Agricole CIB, DBS, HSBC, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation--have allocated $600 million each, the company added.

In addition to the dollar financing, the SBI Group has committed up to $1 billion equivalent rupee loan to Bharti which will also cover any associated transaction costs, the company said.

Global Investment House KSCC is serving as the regional financial advisor on this transaction, Bharti said. Bharti has over 125 million subscriber in India and if the deal goes through, the company would have a major footprint in the African market and would get access to over 40 million customers of Zain in the continent.

Bharti had earlier said the total agreed enterprise valuation of $10.7 billion is likely to result in a total payout of around $9 billion (which includes any loans payable by the operating companies to the Zain Group) based on the estimated net debt of about $1.7 billion as on December 31, 2009.

It has been agreed that $700 million out of the total payable amount would be paid after one-year from closing.

Bharti seals deal with Zain for $10.7 bn - NDTV Profit


It is historic deal.

After Sri Lanka and purchased of Warid Telecom Bangladesh and now this Purchase of Zain will give it a global footprint and branding.