Indian Economy-News & Updates

[blueoval79]

India may lead global private equity recovery: KPMG

The domestic and international private equity players see India as the second most attractive destination after China and feel that the country may lead the global PE recovery, according a survey.

As many as 33 per cent of investors, who participated in the survey, ranked China as the most attractive market, followed by India (29 per cent), other emerging markets (19 per cent) and developed markets (20 per cent).

"India offers immense opportunities for PE investments and India will likely be at the forefront of a global PE recovery," said a survey by research firm KPMG.

It said investors find India attractive as a PE destination because of its robust economic growth, tax environment, corporate governance and investment structuring.

"The next 12 months should be viewed as an opportunity to build value in portfolio terms and show that PE is an integral part of India's future," the survey added.

It projected 2010 to be the year of consolidation with focus on portfolio nurturing, fewer new deals or fund raising, smaller investment sizes and fewer exits.

The KPMG survey, conducted along with Stanford University's Shorenstein Asia-Pacific Research Center, covered 40 General partners (GPs) and Limited Partners (LPs). Broadly, GPs handle investment operations directly for PEs, while LPs invest in them.

KPMG said Indian public markets have recovered significantly since August 2009, and initial signs are indicating that there is considerable amount of liquidity in the market from institutional investors for IPOs.

Exit options for PE funds include initial public offering, public market or strategic sale.

On India's hurdle rates (the rates of return above which the GP starts to earn the carried interest, about 8 per cent), the survey said they were in line with developed country averages.

"This is unexpected; because Indian PE should earn higher returns for developing country risks than developed country PE. We would, therefore, expect hurdle rates to be higher than developed country rates." it added.

India may lead global private equity recovery: KPMG- Finance-Economy-News-The Economic Times

 

[Strings12]

Industrial production grew by a whopping 10.4 per cent in August on the back of double-digit growth in mining, manufacturing and
electricity sectors. ( Watch Video )

Factory production had expanded by 1.7 per cent in the same month last year.

The impact of stimulus measures was evident as manufacturing grew by 10.2 per cent, electricity by 10.6 per cent in August.

The mining sector clocked a robust growth of 12.9 per cent in the month under review.

It was for the first time in June that the industry grew by a high rate of 8.2 per cent, after it was hit hard by the global financial crisis in the middle of September last year.

Axis Bank Economist Saugata Bhattacharya said the factory production is likely to breach nine-per cent mark in August mainly due to base effect.

"The rise of IIP is mainly due to base effect. The core sector is also high and exports have also picked up on the sequential basis," Kaur said.

Economic think-tank Institute of Economic Growth (IEG) has recently said as the economy is showing signs of recovery the industry would pick up further momentum with a growth of more than seven per cent in August and nearly nine per cent in October.

"The Index for Industrial Production (IIP) has shown an impressive growth of 6.8 per cent (in July). This figure was slightly higher than the last year's growth. It is definitely a pointer towards the revival of industrial growth," the IEG had said in its monthly monitor for the economy.

Indian industry came under adverse impact after US financial services icon Lehman Brothers collapsed, deepening the financial crisis across the world.

 

[Jatt Boy]

New Delhi: The recession period has been over in India. Yes, it was proved on this Dhanteras when automobile industry registered a record selling of cars in a day.

According to a report, over 25 thousands cars were delivered by the leading car manufacturers on Dhanteras in India. It was the highest ever booking of cars in a day.

Maruti Suzuki recorded highest number of sale with over 8,000 cars in a day.

It was the highest sell in a day by the country's leading small car manufacturer.

Consumers moved out with full fervour and enthusiasm to beat the all speculations regarding recession on this Diwali.

Demand for cars was so high that dealers could not make deliveries to many customers on the same day. Actually small cars are an opportunity for middle class to display wealth in the festival season. On the occasion of Dhanteras, an auspicious day on the Hindu calendar two days ahead of Diwali, it becomes more significant to bring new vehicle in the house.

The unexpected delivery of cars has also shown impact on BSE and its sensitive index were reportedly trading in green zone.

Record 25K cars delivered on Dhanteras

 

[inferno]

Great news! I also bought a new bike.

 

[WarProfessor]

New Delhi: The recession period has been over in India. Yes, it was proved on this Dhanteras when automobile industry registered a record selling of cars in a day.

According to a report, over 25 thousands cars were delivered by the leading car manufacturers on Dhanteras in India. It was the highest ever booking of cars in a day.

Maruti Suzuki recorded highest number of sale with over 8,000 cars in a day.

It was the highest sell in a day by the country's leading small car manufacturer.

Consumers moved out with full fervour and enthusiasm to beat the all speculations regarding recession on this Diwali.

Demand for cars was so high that dealers could not make deliveries to many customers on the same day. Actually small cars are an opportunity for middle class to display wealth in the festival season. On the occasion of Dhanteras, an auspicious day on the Hindu calendar two days ahead of Diwali, it becomes more significant to bring new vehicle in the house.

The unexpected delivery of cars has also shown impact on BSE and its sensitive index were reportedly trading in green zone.

Record 25K cars delivered on Dhanteras

Nice. Indians are driving cars, whereas US citizens are converting to bikes. There is a wakeup call for US in store sometime in the future when they realize India will give nothing back to anyone, never.

 

[third eye]

This is crazy.

The number of cars in Delhi alone are more than that of Mumbai, Chennai & Kolkatta put together. Even when the festival season was not on , upto 1000 machines ( 2 & 4 wheelers) were added to Delhi each day.

How many fly overs can the govt make & how often can they widen roads ?

Meanwhile, could someone help by translating the lines below into understandable english ?

Nice. Indians are driving cars, whereas US citizens are converting to bikes. There is a wakeup call for US in store sometime in the future when they realize India will give nothing back to anyone, never.

 

[Iggy]

Nice. Indians are driving cars, whereas US citizens are converting to bikes. There is a wakeup call for US in store sometime in the future when they realize India will give nothing back to anyone, never.

According to you which state of India is claimed by US now?? or are you suggesting that we should exchange our cars with US peoples bikes??i really dont understand what you are saying?can you please translate this in English??

 

[R.A.W.]

HONG KONG: Companies in Asia are set to offer bigger pay rises next year as the region continues to rebound from global recession, notably in
India where base salary levels are poised to jump nearly 10 percent, a survey showed on Wednesday.

Salaries in Indonesia and China will also surge, by 8.7 percent and 6.7 percent respectively, whereas workers in Japan can expect a paltry 2.1 percent pay rise, according to the survey by Hewitt Associates.

The survey covered more than 2,000 local and joint-venture companies in the Asia-Pacific region. Salaries -- or annual guaranteed pay -- this year in Asia's fast-growing economic powerhouses China and India, at 4.5 percent and 6.3 percent respectively, were the lowest since 2005, Hewitt said.

Salaries barely grew at all in Hong Kong and Japan, this year as companies cut staff. More than 60 percent of companies surveyed in Hong Kong, Japan and Singapore froze wage levels, compared with only 26.1 percent in India and 30.8 percent in China.

Next year, only 6 percent of companies in India and 8.3 percent in China expect to freeze pay compared with 12-14 percent of companies in Japan, Singapore, Hong Kong and Australia.

 

[R.A.W.]

well some good news after such a long long recession

 

[EjazR]

India and Saudi Arabia to increase cooperation in tourism sector | NVO News

New Delhi
The Union minister of state for Tourism, Sultan Ahmed who is currently on a four day official visit to Riyadh, Saudi Arabia (05-08 October 2009) held a meeting with Dr. Salah K. Al-Bukhyyet, Vice president for Investment, Saudi Commission for Tourism and Antiquities. During their meeting, the two sides discussed matters of bilateral cooperation in the tourism and hospitality sector and issues of mutual interest particularly with regard to ways and means of increasing tourism in both the countries. The bilateral cooperation envisages finalizing international executive programme for cooperation. Sultan Ahmed offered India’s vast expertise to augment the hospitality sector in Saudi Arabia and to train and enrich the human resources in the sector; and exchange of key personnel to learn from both sides in managing and maintaining heritage sites. In the long run it was also proposed that the Indian side could set up full-fledged Management cum Training Institute for training Saudi youth in the hospitality sector. Both sides agreed that these issues will also be discussed during the forthcoming Indo-Saudi Joint Commission meeting to be held in Riyadh on 31st October, 2009

The meeting was also attended by Deputy Chief of Mission Mr. Rajeev Shahare and Mr. Bani Roy, Under Secretary, Ministry of Tourism. From the Saudi Commission for Tourism and Antiquities, Dr. Hamad Al-Ismail, Assistant Vice President for Investment Services, Dr. Fahd Al-Jarboa, Assistant Vice President for Marketing, Dr. Abdullah Alweshail, General Director, National Project for Tourism Human Resource Division and Eng. Ahmed Al-Eesa, General Director for Licensing and Quality Dept. were present in the meeting.
The Government of India Tourist Office (GOITO) Dubai in collaboration with the Embassy of India, Riyadh, has organized the “India Tourism Road Show” in Riyadh during the visit of Shri Sultan Ahmed. There will be a special segment on medical tourism in the Road Show which is of immense interest for Saudis.
Sultan Ahmed is leading a large delegation comprising officials from Ministry of Tourism, Government of India, Executive Directors of GOITO offices in Dubai and Tokyo and a large contingent of Indian tour operators. The event includes meetings with Saudi Commission for Tourism and Antiquities, detailed presentations on Indian tourism, buyer-seller meet between Indian tour operators and Saudi tour operators etc. The participants will also have a taste of famous Indian delicacies.

 

[EjazR]

India and Saudi Arabia to increase cooperation in tourism sector | NVO News

New Delhi
The Union minister of state for Tourism, Sultan Ahmed who is currently on a four day official visit to Riyadh, Saudi Arabia (05-08 October 2009) held a meeting with Dr. Salah K. Al-Bukhyyet, Vice president for Investment, Saudi Commission for Tourism and Antiquities. During their meeting, the two sides discussed matters of bilateral cooperation in the tourism and hospitality sector and issues of mutual interest particularly with regard to ways and means of increasing tourism in both the countries. The bilateral cooperation envisages finalizing international executive programme for cooperation. Sultan Ahmed offered India’s vast expertise to augment the hospitality sector in Saudi Arabia and to train and enrich the human resources in the sector; and exchange of key personnel to learn from both sides in managing and maintaining heritage sites. In the long run it was also proposed that the Indian side could set up full-fledged Management cum Training Institute for training Saudi youth in the hospitality sector. Both sides agreed that these issues will also be discussed during the forthcoming Indo-Saudi Joint Commission meeting to be held in Riyadh on 31st October, 2009

The meeting was also attended by Deputy Chief of Mission Mr. Rajeev Shahare and Mr. Bani Roy, Under Secretary, Ministry of Tourism. From the Saudi Commission for Tourism and Antiquities, Dr. Hamad Al-Ismail, Assistant Vice President for Investment Services, Dr. Fahd Al-Jarboa, Assistant Vice President for Marketing, Dr. Abdullah Alweshail, General Director, National Project for Tourism Human Resource Division and Eng. Ahmed Al-Eesa, General Director for Licensing and Quality Dept. were present in the meeting.
The Government of India Tourist Office (GOITO) Dubai in collaboration with the Embassy of India, Riyadh, has organized the “India Tourism Road Show” in Riyadh during the visit of Shri Sultan Ahmed. There will be a special segment on medical tourism in the Road Show which is of immense interest for Saudis.
Sultan Ahmed is leading a large delegation comprising officials from Ministry of Tourism, Government of India, Executive Directors of GOITO offices in Dubai and Tokyo and a large contingent of Indian tour operators. The event includes meetings with Saudi Commission for Tourism and Antiquities, detailed presentations on Indian tourism, buyer-seller meet between Indian tour operators and Saudi tour operators etc. The participants will also have a taste of famous Indian delicacies.

 

[Sam Dhanraj]

India may purchase oil fields in Russia​

22:34 20/10/2009

NEW DELHI, October 20 (RIA Novosti) - India's state-owned Oil and Natural Gas Corporation is considering the purchase of Russian oil fields and companies, Indian oil minister Murli Deora said.

The ONGC is currently taking part in Sakhalin-I, an oil and gas project off the coast of Russia's Pacific island of the same name. It is also the owner, via subsidiary ONGC Videsh Ltd. (OVL), of British oil company Imperial Energy, with production licenses for fields in west Siberia's Tomsk Region.

In September, India's oil minister visited Tomsk, where he held talks with Governor Viktor Kress on participating in future oil and gas projects in Russia.

"The governor invited us to take part in the development of new [oil] fields, and we will consider his offer," he said.

Deora said India, which is the third-largest consumer of oil in Asia, was interested in taking part in the Sakhalin-3 project.

A high-ranking source from the Indian oil industry told RIA Novosti the ONGC could buy either existing oil companies or new oil fields in the Tomsk region, as well as in Russia's north.

He said India would discuss energy cooperation at a meeting of the heads of major Russian and Indian enterprises, scheduled to take place ahead of a Russia-India summit in December.

 

[EjazR]

The Hindu : News : India looks East to build Asian economic community

Keen to tap the booming services market in Southeast Asia, India has pressed for an early conclusion of talks with the 10-member ASEAN on trade in services and investments to create an Asian economic community.

“We attach high importance to the early conclusion of negotiations on the trade in services and investment agreement and we should direct our officials accordingly,” Prime Minister Manmohan Singh said at the 7th India-ASEAN summit here last evening.

“Our engagement with the ASEAN countries is a key element of India’s vision of an Asian economic community. India wishes to partner ASEAN in realising this vision on the basis of mutual benefit, mutual prosperity and mutual respect,” Singh said.

After India signed the Free Trade Agreement with the Association of Southeast Asian Nations (ASEAN) in August, the two sides have started negotiations to broadbase the pact to include investment and services.

The FTA is now limited to trade in goods. With services contributing 55 per cent of its economy, India is quite keen on tapping the growing services market in Southeast Asia.

Singh expressed confidence that the two-way trade between India and ASEAN would touch USD 50 billion by 2010.

ASEAN’s 10 member countries are Thailand, Vietnam, Cambodia, Brunei, Laos, Myanmar, Malaysia, Indonesia, Singapore and the Philippines.

“We (India-ASEAN) should aim for an even higher target for our trade turnover,” Singh said. India—ASEAN trade was estimated at USD 48 billion in 2008.

He said the Free Trade Agreement is a first major step towards creating an India-ASEAN regional trade and investment area.

Singh also proposed steps like intensification of talks on an open-skies policy, simplification of the visa regime to encourage business and tourist travel to further strengthen the two-way ties.

 

[Insane]

The Billion Dollar Companies from India ( Revenue $ Billion)

1 Indian Oil 51.66
2 Reliance Industries 34.03
3 Tata Steel 32.77
4 Bharat Petroleum 27.71
5 Hindustan Petroleum 25.43
6 Oil & Natural Gas 24.04
7 State Bank of India 22.63
8 Icici Bank 15.06
9 Hindalco Industries 14.87
10 Steel Authority of India 9.82
11 NTPC 9.63
12 Tata Motors 8.54
13 Larsen & Toubro 7.3
14 Bharti Airtel 6.73
15 Mahindra & Mahindra 5.92
16 Tata Consultancy Svcs 5.7
17 Wipro 4.98
18 Bharat Heavy Electricals 4.81
19 GAIL (India) 4.69
20 Reliance Communications 4.26
21 Grasim Industries 4.23
22 Canara Bank 4.19
23 Infosys Technologies 4.16
24 Punjab National Bank 4.15
25 ITC 3.65
26 Bank of India 3.62
27 Bank of Baroda 3.56
28 DLF 3.5
29 HDFC Bank 3.09
30 Union Bank of India 2.66
31 Hero Honda Motors 2.57
32 IDBI Bank 2.51
33 Indian Overseas Bank 2.25
34 Central Bank of India 2.22
35 HDFC-Housing Devel 2.21
36 Axis Bank 2.2
37 Syndicate Bank 2.2
38 Oriental Bank of Commerce 1.86
39 Allahabad Bank 1.81
40 UCO Bank 1.81
41 Indian Bank 1.56
42 NMDC 1.42
43 Jindal Steel & Power 1.36
44 Power Finance 1.26
45 National Aluminium 1.24
46 Power Grid of India 1.15

Source of data :The Global 2000 - Forbes.com

 

[Insane]

Indian Companies with $Billion plus Profit ( $Billion)

1 Oil & Natural Gas 4.95
2 Reliance Industries 4.87
3 Tata Steel 3.08
4 State Bank of India 2.23
5 Indian Oil 1.97
6 DLF 1.95
7 Steel Authority of India 1.89
8 NTPC 1.86
9 Bharti Airtel 1.59
10 Reliance Communications 1.35
11 Tata Consultancy Svcs 1.25
12 Infosys Technologies 1.16

I want this list to grow to 50 by 2015.