Indian Economy-News & Updates

[Avatar]

Not 2018 ..More like 2015.
We don't know what China's growth rate will be in 2015 ..but India's will definitely be higher than the current pace of China. So if China slows down, India will take the lead. China is economically already much larger than India and we have a lot of catching up to do.

 

[Justin Joseph]

great news, but i do feel there is room for improvement. If we can decrease corruption we can increase average growth to 10% easy. We need to strengthen anti-corruption department.

also, we need to ensure that the growth is more equivalent. I once read an article about how India might end up half California half sub-Saharan Africa if economic growth doesn't benefit poor.

with more funds available to govt we should build more schools and lift more Indians out of poverty. I want a future where no one can point fingers at us and talk of poverty in india.

sir,

There are 3-4 rants about India

1. Illitracy:- it will be history by 2016-18

2. Poverty - Unemplyment :- Govt. of India has initiated 2 schemes

a. For rural India - Mahatma Gandhi Rural employment Act: Under this act govt will give guaranteed employment of 100 days to rural family who want it if govt. failed to give guaranteed employment for 100 days then govt. will pay the wages for that period.

b. For Urban India - PMEGP or Prime Minister Employment Generation Program: under this scheme the educated unemployed person can get subsidized loan with out colletral security upto Rs. 25 Lakh.

-----------------

As for economic growth

Power:- Govt. is building thermal power plants, nuclear power plants, solar power plants, hydro power plants etc. in dozens.

They are building dozen of Ultra Mega Power Plants of 4000 MW each. you can calculate 12 X 4000 = 48,000 MW from these only.

Rail:- High speed dedicated Fright Corridor with the help of Japan.

High speed passenger corridor.

Ports:- Do you know India don't have any big port to accommodate mother ships that's why 80% of India bound goods goes to Dubai (For western coast) and Singapore/Sri Lanka (Eastern Coast. Then they comes to India in small ships. Increasing our cost and time.

Govt. is building many ports to change this. And we have one in Kochi and Gujarat ready for it.

Airport:- You must be knowing about the new and upgradation of airports.

Expressways/Highways:- we have 2nd largest network and govt. is going to make it double.

Just today they have cleared 10,000 kms of highways you can get the pace of work.


The list is endless brother just wait and watch our time has come.

 

[su-47]

The list is endless brother just wait and watch our time has come.

A toast .....To the dawn of a new age!

Jai Hind!

 

[john9802]

wow that's really good. i hope that soon both india & pakistan advance further and further, it's about time too. but the best time would be when in our countries normal poor people won't be poor anymore and have best living conditions like in US & UK ,etc.

Good luck to both countries. this site is the only one that actually gives me hope for a better future.

 

[Bombay]

India, China lift millions out of slums
India, China lift millions out of slums

United Nations: India and China have together lifted at least 125 million out of slums between 1990 and 2010, and improved the lives of slum dwellers more than any other country, a new UN report has said.

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.

China has made the greatest progress on this front with improvements to the daily conditions of 65.3 million urban residents, the report said.

Proportionally, China's urban population living in slums fell from 37.3 per cent in 2000 to some 28 per cent in 2010, a relative decrease of 25 per cent.

Overall, the UN report finds that the number of people living in slums has risen from 777 million in 2000 to 830 million in 2010, and warns that unless urgent steps are taken the number could rise to 900 million in 2020.

India steps up campaign to woo Chinese tourists
India steps up campaign to woo Chinese tourists

ndia has stepped up its 'Incredible India campaign' to woo Chinese tourists amid projection that over 54 million Chinese were expected to travel abroad this year to spend an estimated $6.86 billion.

India tourism, which has an office here, has already stepped up its 'Incredible India' campaign to woo Chinese tourists.

"We are running a vigorous campaign with dances and cultural events all over China projecting India as tourists destination. It is in many ways paying off," Shoeb Samad, Beijing-based Director of India Tourism said here today.

"We are expecting the numbers to go up well this year," he said. The number of Chinese tourists arriving in India has gone from 21,152 in 2003 to 98,724 in 2008. Over 1,02,509 visas were issued in China region and much of it is believed to be for tourism, he said.

The campaign has led to increasing numbers of Chinese girls and boys taking up Indian dance and yoga at the India Cultural Centre here.

As a result, increasing number of airlines are operating flights between China and various Indian destinations, including Delhi, Bangalore and Chennai, Samad said. India is a natural destination for Chinese travellers looking for a spiritually gratifying experience.

Pilgrimage to historical destinations, such as Sanchi, and Budh Gaya, are high on the list for Chinese tourists along with India’s most famed tourist sight, the Taj Mahal in Agra, he said.

Tata Motors Group global sales grow by 59 per cent to 89,768 vehicles in February 2010
Tata group | Tata Motors | Media releases | Tata Motors Group global sales grow by 59 per cent to 89,768 vehicles in February 2010

Mumbai: The Tata Motors Group global sales, comprising Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with distributed brands in India, and Jaguar and Land Rover, were 89,768 vehicles in February 2010, a growth of 59 per cent over February 2009. Cumulative sales for the fiscal (April 2009 to February 2010) are 771,238 vehicles, higher by 17 per cent compared to the corresponding period in 2008-09.

Jaguar Land Rover global sales in February 2010 were 17,197 vehicles, higher by 60 per cent. Jaguar sales for the month were 3,292 vehicles, higher by 55 per cent, while Land Rover sales were 13,905 vehicles, higher by 62 per cent. Cumulative sales of Jaguar Land Rover for the fiscal are 170,444 vehicles, lower by 16 per cent. Cumulative sales of Jaguar are 42,776 vehicles, lower by 26 per cent, while cumulative sales of Land Rover are 127,668 vehicles, lower by 11 per cent.

 

[lhuang]

wow that's really good. i hope that soon both india & pakistan advance further and further, it's about time too. but the best time would be when in our countries normal poor people won't be poor anymore and have best living conditions like in US & UK ,etc.

Good luck to both countries. this site is the only one that actually gives me hope for a better future.

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.

 

[PeacefulIndian]

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.

China has made the greatest progress on this front with improvements to the daily conditions of 65.3 million urban residents, the report said.

Proportionally, China's urban population living in slums fell from 37.3 per cent in 2000 to some 28 per cent in 2010, a relative decrease of 25 per cent.

So slum prevalence for both India & China is around 28% in 2010, which is still a considerable population.

 

[lhuang]

So slum prevalence for both India & China is around 28% in 2010, which is still a considerable population.

That's 28% too much.

 

[Napalm]

India's economy likely to surpass $1.5 trillion this year:

India's economy likely to surpass $1.5 trillion this year- Indicators-Economy-News-The Economic Times

Peter Redward, Head of Emerging Asia Research, Barclays Capital, gives his views on growth and market in a chat with
ET Now.

The question really is if equity prices across Asia are reflecting strong growth already and perhaps factoring in much longer.

If you had a $100 and you had to divide it between let's say an India, China and a Thailand, where would you go? I specifically brought up Thailand because some would say valuations in markets like that are almost nothing and may be markets are factoring in too much of the political trouble and perhaps un-valuing and not valuing markets like this at all?

Thailand is a very interesting question and we have been talking about this issue now since 2005, when the political issues arose first and the reality is as you have said, the Thai stock markets has just gone sideways through the last five years.

Valuations have continued to improve substantially. Foreigners are heavily underweight Thai assets and fundamentally if you were to invest over say a 5-10 year horizon, Thailand looks very good. However, there are problems and the key problem is one that's very familiar to most people and that is the political impasse between the Golds and the Reds and until that issue is resolved, it is very difficult to see Thai stocks having more than a temporary rally.

So, our advice to investors from offshore at this stage is stay underweight Thailand because there are better opportunities elsewhere in the near term but once we start getting a resolution of the underlying problems in Thailand to commence, we probably would not allocate anything to Thailand right now.

In terms of India versus China, I would probably weight in favour of India right now. China has some concerns surrounding the monetary policy tightening that's going on there right now and also concerns about balance sheets and the potential risks in the banking system from the rapid credit.

Until that's resolved, Chinese stocks are probably going to struggle a little bit relative to some of the other markets like Korea or Taiwan. India, however, looks pretty good to us. We think the ongoing rise in the savings rate in India and in particular the national savings rates is leading to a very sharp pickup and investment as a share of GDP, this is the same kind of dynamics that we saw in China 10 years ago.

India's economy is likely to surpass $1.5 trillion this year and in nominal space, it is growing extremely fast. We think that balance sheets in India are generally much more transparent than that are in China and we think that the RBI while it needs to cut liquidity and tighten monetary policy. It is going to tentatively behind the curve and that will also provide support for the equity market.

 

[Abhiras]

India will definitely gonna lead china is growth ....our demographic window is beginning and china's demographic window is on the verge of closure

in population growth there is a stage known as demographic window ....
Demographic Window is defined to be that period of time in a nation's demographic evolution when the proportion of population of working age group is particularly prominent.
therefore, the dependency ratio decreases and the output rises dramatically ...

Europe's demographic window lasted from 1950 to 2000.

China demographic window in 1990 and is expected to last until 2015. (therefore large growth was occured)

India is expected to enter the demographic window in 2010, which may last until the middle of the present century.

Much of Africa will not enter the demographic window until 2045 or later.(therefore ,presently no hope there)

 

[Bombay]

The post is about Chennai coming up as a hub for Car Manufacturing, not only for Indian market, but for exports as well.

CM wants Chennai to be Asia’s auto capital
CM wants Chennai to be Asia?s auto capital | Deccan Chronicle

Renault-Nissan has joined the line-up of other auto giants such as Daimler, Ford, BMW, Hyundai and Mitsubishi.

The deputy chief minister Mr M.K. Stalin said the Indian car market had huge potential considering the fact that the current car penetration level was just 12 cars per 1,000 population against Malaysia’s 273, China’s 128 and USA’s 765 cars.

Stating that the government would come out soon with a policy on automobiles and components to attract more investments, Mr Stalin said the state had been quick in responding to investment proposals. “We honour the commitments made to investors,” the deputy chief minister said.

Mr Stalin said Chennai would have an installed capacity to produce 12.8 lakh cars and about 3.5 lakh commercial vehicles each year. This translates to an output of three cars every minute and one commercial vehicle every 75 seconds.

Tamil Nadu has the largest auto components industry base and accounted for around 32 percent of India’s production capacity, he said.

Nissan’s new car Micra was launched on Wednesday and it will be exported to over 100 countries in Europe, Middle East and Africa in six months, said Akira Sakurai, CEO and managing director of Renault Nissan Automobile India.

Micra car export to start in September
The Hindu : Business : Micra car export to start in September

The plant would involve a total investment of Rs. 4,500-crore and have an eventual capacity of four lakh units. In the initial phase, the capacity would be two lakh units. The Alliance had so far invested Rs. 2,300 crore into the venture. Claimed to be as big as Tochigi facility of Nissan, the Oragadam factory could assemble both Renault and Nissan products.

Daimler to invest Rs 4,400 cr in India
Daimler to invest Rs 4,400 cr in India; looks for partners- Automobiles-Auto-News By Industry-News-The Economic Times



The new Testing track in the Plant vicinity:

CHENNAI: The world's largest truck maker Daimler today said it will invest Rs 4,400 crore over the next five years to set up a manufacturing plant here.

"The company has planned a total investment of Rs 4,400 crore over the next five years. This is the company's first important step towards its strategy to develop, manufacture and launch trucks for the Indian volume market, beginning mid- 2012," DCVI Managing Director and CEO Marc Llistosella told reporters.

The 400-acre plant, which will manufacture light, medium and heavy commercial vehicles, will have an initial capacity of 36,000 units in the first phase and will be scaled up to 72,000 units finally, he added.


Giving details of the facility, he said the company has spent about Rs 25 crore in the test track and has allocated Rs 1,200 crore for its R&D centre within the plant.

"This R&D centre, to be located in the plant, will be one of the biggest in South-East Asia," he added.

DCVI will produce a range of trucks in between 6 tonnes and 49 tonnes category from the facility with a targeted localisation of components of 85 per cent.

"Initially in the first phase, we will manufacture 25 tonnes and 49 tonnes heavy duty trucks, and it will be followed by 9 tonnes and 15 tonnes trucks," he said.

Daimler, which currently sells its Actros range of trucks from its group firm Mercedes-Benz's facility in Pune, had last year planned to introduce lightweight trucks from Mitsubishi Fuso stable in the Indian market by 2010. Recently it exited Tata Motors by selling the residual stake of 5.34 per cent in the Indian firm for about 300 million euros.

Apart from the Chennai plant, which employs 450 engineers at present, Daimler has its CV facilities in Germany, the US, Japan, Brazil and Turkey.

BMW to up Chennai plant capacity, eyes 4,000 units sales
BMW to up Chennai plant capacity, eyes 4,000 units sales


Hyundai eyes 2.60 lakh exports in 2010
Hyundai eyes 2.60 lakh exports in 2010- Automobiles-Auto-News By Industry-News-The Economic Times

Hyundai cars at Chennai port for exports:

Eyeing an export offtake of 2.60 lakh units in 2010, India’s largest passenger car exporter — Hyundai Motor — is planning to penetrate ten new markets with its leading model, the ‘i20’ car.

Currently, Hyundai exports four of its models — Santro, i10, i20 and Accent to 110 countries. While Accent has been making inroads into Middle East and Northern Africa, its Santro model is primarily focused on African countries and Mexico and Columbia in Latin America.

'We are attracted to frugal mindset of Indian professionals'
'We are attracted to frugal mindset of Indian professionals' - Interviews-Opinion-The Economic Times

How frugal is India as compared to other locations?

India is not the cheapest country in the world. What India offers is a low-cost market model. The Indian mindset has frugality embedded. Not all countries are like this. The attractiveness for us is not the low cost, instead Indian engineers, marketers and product planners that have frugality in their mindset. I had a meeting with a partner. He came with his engineer for the product.

I brought my engineer for the product. When I posed the question of investment quantum to both, I was shocked by the difference. What my Indian partner promised to do it with one, my engineer tells me we need five to complete this project. The difference is huge. It is a completely different approach. That’s why we think Indian engineering and product planning is such an important thing. We want this spirit to conquest other markets.

 

[jha]

there is no need to compare with china...both of us have different ways ...

 

[Hutchroy]

Ports:- Do you know India don't have any big port to accommodate mother ships that's why 80% of India bound goods goes to Dubai (For western coast) and Singapore/Sri Lanka (Eastern Coast. Then they comes to India in small ships. Increasing our cost and time.

Govt. is building many ports to change this. And we have one in Kochi and Gujarat ready for it.

1. DHAMRA PORT : PHASE ONE : 18 METRES

2. GANGAVARAM PORT : 21 METRES

3. MUNDRA PORT :

Containers 17.75 Metres, Multipurpose : 15.5 Metres, Oil : 32 Metres

4. NEWS ITEM : PARADIP PORT : NOW 14 METRES. PLANNED 17.1 METRES

In addition there are Ports being developed at Ratnagiri, Vizhinjim, Karaikal, Krishnapatnam, Dhamra and a Port for Containers at Kalpi Roads (on the Hooghly River)

Of course there are other Ports like the Port of Jamnagar (Reliance and Essar Refineries) which Annually handles 70 Million to 100 Million Tonnes of Oil Imports and possibly 50 Million Tonnes of Oil Exports, Dahej & Hazira for LNG and a few more Container Oriented Ports with 18 to 20 Metres Water Depth

 

[Napalm]

When will India and China overtake US in GDP (nominal terms)?
When will India and China overtake US in GDP (nominal terms)? The Economics Journal

Here are some charts from Goldman Sachs research. China is expected to overtake US around 2035 and India is expected to overtake US in 2040 and then it will be the race between the two Asian giants.

World in 2025 according to Goldman Sachs estimates – China closing on US and India closing on Japan, but the world order is not significantly different from today. However, when you go a little further, world order dramatically changes as India and China become the top economies US comes in a close 2 – 3 and there is a vast gap afterwards.

 

[IBRIS]

German war on Indian turf: BMW plans blitz on Audi, Merc

With the leadership position in its bag in India, much ahead than what it had projected internally, BMW India looks set to withstand rivalry from its two other German counterparts — Mercedes Benz and Audi, with a number of launches and other initiatives including the start of a used car business this year.

With a little over 3,500 units as sales, India is a small market for the German carmaker in its global operations, but even then India finds a separate mention in its annual report by way of a thirteen page supplement on India. The company has now set a target of over 4,000 units sales for 2010 that will mean another year of double digit year growth. During the year, BMW will launch the new 5 series in July and the premium small SUV X1 in December.

“In 2010, we aim to achieve double digit growth. In absolute numbers we want to achieve sales of over 4,000 units,” said Peter Kronschnabl, president, BMW India. “The Chennai plant has a capacity of 3,000 units per annum. We will also invest more on our plant.”

With the expansions in the pipeline, the company is also looking to increase the head count in its plant by a third. Currently, around 200 people work in its factory.

Further, the company is starting up its pre-owned car business (BMW Premium Selection) in India, which it hopes will account for as much as a third of its sales once the outlets have a national presence.

“The pre-owned car segment has a big potential in India, because till date there is not much of an organised format here,” Krosnschnabl said. “Globally, we sell as many used cars as new cars, but since India is a new market for us, we hope to sell at least as many as 30 per cent of our new car sales here. That will, however, happen only when we are present in all major cities in the country with our pre-owned car outlets.”

The company is starting an outlet in Chennai and later another one in Gurgaon.

BMW is also investing $50 million (Rs 225 crore) in an independent finance arm that will offer retail finance for customers, commercial finance for dealers and also insurance in collaboration with Bajaj Allianz.

German war on Indian turf: BMW plans blitz on Audi, Merc- Hindustan Times