Indian Economy - News & Updates - Archive

[Bushroda]

From Huddersfield to India
Applied Language are celebrating the opening of their office in India with an Indian Extravaganza in Huddersfield

[UKPRwire, Wed May 16 2007] Applied Language Solutions, a leading translation and interpreting company, are bringing a touch of spice to Huddersfield with the Indian extravaganza event they’re holding to celebrate the opening of their office in India. The event, which will be attended by local businesses, customers and local dignitaries, will take place on 24th May at their UK headquarters in Huddersfield.

To honour the traditions of their new Indian team members and welcome them into the company, Gavin Wheeldon, CEO, will perform a speech to the Indian team in their native language, who will be joining the festivities through a live web link-up.

Traditional Indian musicians will be playing time-honoured Indian music to create the authentic atmosphere, whilst guests sample genuine home-made Indian cooking provided by Curry Cuisine, a traditional Indian catering company. Attendees will also enjoy entertainment by a Bollywood dance performance given by Indian dancers from Salma’s Bollywood Academy.

Gavin enthused: “This is the perfect time for us to expand into Asia, and the ideal way for us to show our respect for our new team member’s culture. This is a fantastic event to bring the two diverse cultures together and bring a sense of unity to our international business.”

“The Indian extravaganza will be an excellent night to welcome those based in India to the company, and to allow our customers, staff and dignitaries in the UK to experience the wonderful traditions of India.”

Applied Language Solutions is opening an office in Chennai, India as part of their ongoing strategy to globally expand the company and further develop its operations in Asia.

The Indian office will provide crucial support to the Applied Language’s global sales and operations and the company is looking to recruit a large number of staff. Various employment opportunities are immediately available, and Applied Language plans to invest a further £10 million on expansion in the Asian market over the next five years.

Gavin said: “In today’s business world, more and more companies are realising that communicating in their customer’s language is pivotal to their success in the global trading arena.”

“India was chosen as a place to open an office as it is beginning to emerge as a dominant player in the global market. India is also renowned for having a highly skilled workforce, which is another great benefit of opening an office there. ”

“Having a presence in Asia will give us a huge advantage. The fast–growing Asian economy offers fantastic business opportunities for Applied Language and will give us almost 24 hour global coverage, meaning our customers will have access to our services at any time of the day.”

Applied Language Solutions are a rapidly growing language solutions company that deliver a high quality personal and corporate language service with optimal quality, price and delivery.

Applied Language translates all kinds of documents from simple letters to large technical documents, including whole websites and printed catalogues, for specialist Medical, Legal, Financial and Marketing organisations. The company is committed to using only professional in-country translators and interpreters, of whom they have over 6,000 on their books. These translators work in over 150 languages including all the major European, Asian, African, Middle Eastern and American languages.

Applied Language Solutions now have seven offices world wide: Huddersfield, California, Paris, Barcelona, Sofia, Guatemala City and India, and are proud to work with prestigious customers such as Nike, United Nations and Yahoo!. The company was honoured to be the winner of HSBC Start-Up Star Awards 2006.

 

[Bushroda]

Elephant wiser investor than Dragon
PRITI PATNAIK & SUBHASH NARAYAN
TIMES NEWS NETWORK[ THURSDAY, MAY 17, 2007 02:26:10 AM]

NEW DELHI: Big savings come in small boxes, in a tabulation of countries and savings. At least that is true of Asia, whichhas traditionally been home to good savers. However, in spite of high savings, the investment rates in some countries have exceeded the savings rates, resulting in current account deficits.

For India, over the next five years, thesavings rate is expected to be 34%, with a growth rate of 9% sustained by an investment rate of 36.1%. These are projectionsof the working group on savings in the11th Five-Year Plan under the Planning Commission. Already, the savings rate in India for 2005-06 has nearly touched 34%, according to the Reserve Bank of India.

China has much higher rates of savings and investment compared to India. However, in China, the investments are financing the manufacturing sector. “The investment ratein India is lower, but it is financing the services sector. The Indian economy is better leveraging the investment as opposed to China,”Crisil principal economist DK Joshi said.

The current account balance for Asian countries — the difference between imports and exports of goods and services, which is also a measure of the gap between investment and domestic savings — has shown a marked shift from persistent deficits to large current account surpluses.

The sharp increase in the current account deficit of the US, which is more than 6% of its GDP, has been contributed by current account surpluses of countries such as Japan and China.

“The large movements of the current account positions in the region have mainly reflected reductions in its investment GDP ratio. The change in the region’s savings has had only a small effect,” the report said.

According to the report, “global oil demand and persistence of demand and supply imbalances over the medium term may worsen the current account deficit for India”. Analysts say current account deficit will only help RBI in curbing inflation given that India already has comfortable forex reserves that can finance 13-14 months of imports.

It is expected that the region’s current account surplus will decline since the share of non-construction investment-to-GDPin east Asia is low compared to its historical level. Though critical infrastructure projects seem set to proceed in some countries, the construction investment ratio is unlikely to return to early 1990s level, the report says.

The investment in each country shows that cyclical fluctuations can be traced back to construction investment in the region. The report says the level of construction investment in the region has been fairly volatile.

Mr Joshi said a decline in construction investment in India will not have an impact on the growth rates because significant investment is finding way into sectors such as oil and gas, power and roads, which will drive the economy.

 

[Bushroda]

Now, Brazil is hot destination for India Inc
2007-05-16 21:08:25 Source : Moneycontrol.com

Brazil is not just about exotic beaches and the mountains. Over the last year alone, Indian investments in Brazil exceeded a billion dollars. Brazil has turned into a preferred destination for industries ranging from pharmaceuticals to auto manufacturing, reports CNBC-TV18.

Arun Kumar, Deputy Chairman, Strides Arcolab, said, “It is a combination of strong pipeline, domestic knowledge and favourable investment climate.”

This is the second manufacturing plant put up by Strides here. The Brazilian government offers several tax incentives and encourages foreign entities to buy land and establish their businesses here.

India and Brazil have set a bilateral trade target of USD 10 billion by 2010. And the Indian government officials feel it is easily achievable with many projects in the pipeline.

The Indian Ambassador to Brazil Hardeep S Puri said, “There is a lot coming, Tatas and Marcopolo have a JV going. India is interested in the Brazilian Embraer aircraft. There is a lot to do in agriculture, ethanol, infrastructure and minerals.”

But some Brazilians say a few sectors are taxed too high. Reginald A Barnes, New York City Center, said, “The only thing that the government will do well is to give us a bit more for the taxes we pay. We pay an average of 39% in tax annually.”

But with the economy still growing at just about 4-5% and consumption picking up, Indian companies have their eyes firmly set on Brazil.

 

[Bushroda]

Dell to open fourth call centre in India: CEO
Reuters
New Delhi, January 30, 2006

Dell Inc, the world's largest computer maker, will set up its fourth customer contact centre in India, Chief Executive Kevin Rollins said in a statement on Monday.

The company also plans to double the size of its India-based product development team during the next two years, the statement said.

The company plans to raise its headcount in India to 15,000 workers, and may set up a unit to manufacture computers in the country, a source close to the plans said on Monday.

The source, who declined to be named, said Dell would soon announce the setting up of its fourth call centre in Asia's third-largest economy. At the moment Dell employs about 10,000 workers in India.

 

[Bushroda]

'India may become a leading foodgrain exporter'
PTI[ WEDNESDAY, MAY 16, 2007 06:10:17 PM]

NEW DELHI: India can emerge as a leading foodgrain exporter in global market if only farmers in other parts of the country could match the yield levels of Ludhiana district of Punjab.

With 4.61 tonnes per hectare, which is double the national average of around two tonnes per hectare, Ludhiana has topped the districts in foodgrain output per hectare.

While chairing the meeting of Planning Commission on Monday, Prime Minister Manmohan Singh said agricultural yields can be increased by 40-100 per cent in the next 3-4 years by focusing on yield gap reduction and expanding the area of cultivation.

Commenting on the high productivity in Ludhiana, Joint Director, Department of Agriculture Punjab, Gurdial Singh said, "The soil quality, irrigated facilities backed by research and extension efforts of Punjab Agricultural University in the district have played a crucial role in making Ludhiana as country's top district in foodgrain yields."

In fact, Ludhiana tops the list with 4.61 tonnes foodgrain output per hectare closely followed by Fatehgarh Sahib district (in Punjab) that produced 4.32 tonnes a hectare in 2005-06.

A Planning Commission committee headed by C H Hanumantha Rao, which recently submitted its report, has recommended that public investment in agriculture should be increased to 4 per cent of GDP from the present level of less than two per cent to raise productivity.

 

[Bushroda]

Global funds to invest $14 bn via Indian funds
2007-05-16 20:19:17 Source : Moneycontrol.com

Foreign real estate funds have found a new way to play the Indian real estate game. Up to USD 14 billion has been raised globally for the Indian property market over the past two years, of which, only 20-25% has actually been invested, reports CNBC-TV18.

Newer global funds are now preferring to hand over their investments to local funds to manage and place their billions, rather than investing directly into projects.

Multi-billion dollar funds like Mitsubushi, Shinco, Rockstone and Al-Futtaim are set to enter India through domestic property funds of ICICI Ventures, Kotak and HDFC.

Arvind Khanna, COO, Beekman Helix India Consulting, said, “We have been approached by a few people and it is very possible that 14-15 such funds are there. At last count 80-100 funds had raised money for the Indian real estate market; so it will not surprise me if a lot of them just raised money with no capability on the ground. But they cannot find the right projects and now, when the market is going down a little, they are having a tough time because of the high returns they have promised their investors.”

Domestic realty funds will charge a management fee of between 2-4% and the foreign fund will also pay 20% of the profit received on every investment as a carry or operating fee. While the international fund has the right of co-investment in every property, this gives the domestic fund more money to play with, while allowing the global fund to independently invest more in an identified project if the developer needs more finance.

With the property market in a correction mode, global funds wanting to invest in India seem to have found the way out. Clearly, the government's intention to curb foreign funding of real estate seems to be having little impact, as global money remains bullish on India.

 

[Bushroda]

Fresh Find: Indian mango crop makes its way to Pittsburgh tomorrow
Thursday, May 17, 2007

By Shamim Ashraf, Pittsburgh Post-Gazette
--------------------------------------------------------------------------------

The long wait for supple-fleshed and intense-flavored Indian mangoes is going to be over as the "king of Indian mangoes" Alphonso and saffron-skinned "Kesar" mangoes are expected to hit Pittsburgh markets for the first time tomorrow.

"We're struggling to manage the crowd. Besides coming to our shop in person, people are calling the whole day to know when the mangoes are coming," said Nikunj Patel, manager of the Monroeville store of Patel Brothers, an Indian chain, who seemed to be enjoying the thought of lucrative sales in the coming days.

Pittsburghers are going to have a taste of these most-sought-after mangoes from India, the world's largest mango producer, three weeks after the Indian mangoes made their way into the United States.

Indian exporters have had to wait since 1989, when they first sought permission to be able to ship mangoes here. The U.S. Department of Agriculture had concerns about pests.

In January 2006, the department allowed importation of fruits treated with low doses of irradiation for killing or sterilizing insects, but it took more than a year to complete the agreements, rule-making and inspections. Final approvals were issued on April 26.

"Working on their DNA, gamma radiation sterilizes mango seed weevil and fruit flies so those cannot reproduce. It, however, is not absorbed by the fruits, which remain safe for human consumption," said Dr. Bhaskar Savani, a dentist who spent the past three years lobbying U.S. officials to allow export. His family grows mangoes in Gujarat, India.

His Savani Farms of Chalfont, Bucks County, brought in 90 boxes of Alphonso and 60 boxes of Kesar mangoes on April 27 in the first legal shipment to John F. Kennedy Airport in New York. The U.S.-India Business Council on May 1 hosted a mango celebration in Washington, D.C..

Primarily, importers are bringing in only Alphonso, a bright yellow mango with a pink blush to its skin and multiple aromatic overtones, and Kesar, a sweet-tasting golden-colored mango with green overtones.

Mr. Savani said they are also pondering importing other varieties such as Baganpalli, Dashheri, Langra and Chausa if there is demand.

Since the mangoes have to travel half the world, they will be much more costly than those imported from Central and South America.

"While we sell a box of Hayden or Kent varieties at $7.99, a box of a dozen Alphonso or Kesar is going to cost $35 to $40," Mr. Patel said, adding that a popular variety from Haiti, known as Haiti mango, does not cost more than $11.99 a box. A box usually contains 12 fruits.

The importers are shipping mangoes by air to cut delivery time to a day. But Dr. Bhaskar said they plan to experiment with shipping by sea, which will take as long as three weeks, but reduce the price.

Those who know how the mangoes taste are not worried about the price, said staff at Patel Brothers in Monroeville.

"People are turning up for advance booking but we have to refuse them as it is against our policy," said Mr. Patel, who said most customers are Indian and Pakistani.

Chicago-based Raja Foods is also importing Indian Alphonso and Kesar mangoes and working as a distributor for Savani's mangoes.

"We so far have two commercial shipments and are now distributing the mangoes to Patel Brothers and other Indian grocers mainly in New York and New Jersey," said Parixit Patel, manager of Raja Foods.

Nikunj Patel of Patel Brothers in Monroeville, who twice drove back from New York stores "empty- handed," said customers' "starving" demand cannot be met. "They just don't care what the price is, because they know the difference."

Some grocers in Pittsburgh, however, think the price -- $3 or more a piece -- will be an issue.

"I am not sure whether it will be a good business. It's not a city like Washington, D.C.. or New York; people may not want to pay so much here," said Niten Sharma of India Mart, a grocer on Greentree Road.

He said some other local grocers also are yet to decide.

According to the U.S.-India Business Council, India harvests 12 million metric tons each year but accounts for less than 1 percent of the global mango trade. Dozens of different types are grown commercially, everywhere from Australia to Israel to Venezuela.

America's taste for mangoes is growing -- with U.S. demand 99 percent dependent on imports, mostly from Mexico and South America -- at 250,000 metric tons annually, valued at $156 million. By contrast, in 2005-06, India exported 58,000 metric tons of mangoes to neighbors in Asia and to Europe.

The agreement allowing export of mangoes to the United States was a side note to the nuclear treaty signed last year by President Bush and Indian Prime Minister Manmohan Singh and is emblematic of a push to deepen two-way trade from $30 billion to $60 billion over the next two years.

 

[Bushroda]

India needs infrastructure spend of 8pct/GDP - official
May 16, 2007

NEW DELHI (Reuters) - India must raise the share of investment in infrastructure to 8 percent of gross domestic product by 2011/12 from less than 5 percent now to sustain high growth, a senior government official said on Wednesday.

India's Planning Commission has set a target of an average annual growth rate of 9 percent from 2007 to 2012, for which the country requires $1 trillion investment across various sectors.

Infrastructure alone is estimated to need $320 billion in this period.

"Investment in infrastructure is less than 5 percent of GDP. This should rise to 8 percent by 2011/12," said Montek Singh Ahluwalia, the deputy chairman of the planning panel that provides key economic guidance to the government.

"If we are seriously planning a 10 percent GDP growth, we need much more investment," Ahluwalia told a construction conference.

India's GDP is estimated to have expanded 9.2 percent during fiscal year to March 2007, taking it close to $1 trillion.

Analysts and research agencies expect growth to moderate to about 8.0-8.5 percent in 2007/08 due to the impact of monetary tightening in the early part of 2007.

"High interest costs will have an impact at the end of the day," Ajit Gulabchand, chairman of Hindustan Construction Co. Ltd., told reporters at the conference.

"There is also a talent shortage in engineering and construction industry," Gulabchand said.

Economists say one of the key obstacles to sustained high growth for India is the number of bottlenecks in its infrastructure. Ports are overcrowded, airports are overcrowded and most of the country faces regular power shortages.

The engagement of private players in infrastructure projects would reduce the burden of government, K.V. Rangaswami, a senior official of engineering and construction firm Larsen & Toubro Ltd., said on the sidelines of the conference.

But the government had to make available land and other facilities for infrastructure projects, he said.

In addition, high prices of commodities like cement would also impact construction activities, he said.

 

[Bushroda]

India challenges booming Chinese drives market

While the Chinese drives market may be expanding at an annual rate of up to 40%, it faces a growing challenge from India, says a new study.

Last year, the Chinese AC and DC drives market was worth $463m, but it faces potential challenges, says the market analyst IMS Research. For example, a devaluation of the Yuan could slow the booming export market, while a crippled banking system, large amounts of public debt, and escalating property prices, are likely to slow public spending on large infrastructure projects.

At the same time, India is posing a increasing challenge, especially as the Indian Government has recently lifted the cap on foreign ownership of local firms to 75%, and has committed more funding to infrastructure projects. IMS forecasts that the Indian drives market will have an annual growth rate of 13.3% over the coming four years.

The growth of the Chinese drives market has been driven largely by the influx of investment by foreign drives-makers. Five of the 11 largest drives suppliers in the Asia-Pacific market are now from Europe or North America.

 

[Bushroda]

India plans to join ranks of chipmakers

SEOUL: Having carved a niche in global software development and services outsourcing, India’s search for the next big thing in high-tech could see it take on the rest of Asia in the crowded chip manufacturing market.

Semiconductor firms such as Intel Corp, Advanced Micro Devices Inc and Freescale Semiconductor Inc. have already tapped India for chip design, but not manufacturing.

New government incentives to boost chip making, coupled with India’s low labour costs and surging demand for electronic goods from a fast-growing middle class, could change that.

“India would be the only country in the world with robust models in chip design, chip manufacturing and electronics manufacturing,” said Poornima Shenoy, president of lobby group India Semiconductor Association.

In March, Hindustan Semiconductor Manufacturing Corp, which is backed by a group of Indian investors based in Silicon Valley, announced plans to build two chip-making plants in India for up to $4.5 billion using technology from Germany’s Infineon Technologies AG

“Our focus is clearly the Indian market, although we plan to export out of the country as well.

The growth in mobile phones and computers has enabled the demand for chips,” said Deven Verma, chairman of Hindustan Semiconductor Manufacturing.

Mobile phone subscribers in India rose 68 percent in March from a year earlier to 166 million. Still, only about 15 percent of India’s 1.1 billion people own a mobile phone, compared with around 35 percent in China.

“The global demand for chips will always go through a cycle of oversupply and shortages, but the potential in India is going to be huge in the years to come. Whether we make it or not, India will continue to buy chips,” Verma said.

Consumption surge: India spent about $2.8 billion on semiconductors in 2005, and demand is estimated to exceed $36 billion by 2015, according to a study by the India Semiconductor Association and research and consultancy firm Frost & Sullivan.

Furthermore, the study says electronic equipment consumption should surge to $363 billion by 2015, more than 10 times spending of $28.2 billion in 2005.

“It is just an enabler that was badly required for the semiconductor industry to take off in India,” Alok Ohrie, managing director of AMD India, said of the government push. “It will help establish semiconductor manufacturing in India.”

AMD is a technology partner to the local SemIndia consortium, which has said it planned to set up a chip-making facility in India with an investment of $3 billion over the next five years. But some investment may have already passed India by.

Intel, the world’s largest chip maker, said last November it was waiting for India to form its semiconductor policy before deciding on plans to begin manufacturing. In March, Intel said its first semiconductor plant in Asia would be built in China.

Texas Instruments Inc, the world’s biggest maker of mobile chips, said earlier this month it will build a $1 billion plant in the Philippines a move that signals the entry of semiconductor companies into new low-cost countries.

South Korea’s Hynix Semiconductor Inc. will consider emerging markets like India to set up a manufacturing facility in the future as part of its global expansion strategy, its senior vice-president O.C. Kwon told the Reuters Global Technology, Media and Telecoms Summit.

Tough competition: One difficulty the industry faces is that India does not spring to mind as a manufacturing destination in a very competitive sector with established Asian rivals, because of inadequate infrastructure and archaic labour laws.

“It is easy for any company to imagine manufacturing in Taiwan or China or even Japan today,” said Ajay Marathe, chief operating officer of SemIndia.

“India as a manufacturing hub of the future, however, needs some wisdom. This wisdom has to do with the understanding of the exploding Indian market and exponentially growing middle class with sizeable disposable income,” he said.

Analysts say interest in India would be fuelled by a growing appetite for electronic goods such as computers, mobile phones, and digital televisions that currently use imported chips.

At the moment such chips may very well have been designed in India, because, while it lags in chip manufacturing, it has made big strides further up the value chain.

India’s semiconductor design industry had revenues of $3.3 billion in 2005 and employed about 75,000 people. That is expected to increase to $43 billion in revenue and over 780,000 employees in 2015, the India Semiconductor Association said.

In February, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s top contract chip maker, opened an office in Bangalore to support its customers with design activities in India. STMicroelectronics’ Indian chief told Reuters in February that headcount in its Indian chip design centre would be raised to 3,000, from 1,700 now, in the next three years.

“If India can do the chip design work, it can take care of the manufacturing part as well, especially when labour costs in India are still 10-12 percent lower than China,” said Y S Sashidhar, vice-president at Frost & Sullivan. reuters

 

[Neo]

Thursday, May 17, 2007

India plans to join ranks of chipmakers

SEOUL: Having carved a niche in global software development and services outsourcing, India’s search for the next big thing in high-tech could see it take on the rest of Asia in the crowded chip manufacturing market.

Semiconductor firms such as Intel Corp, Advanced Micro Devices Inc and Freescale Semiconductor Inc. have already tapped India for chip design, but not manufacturing.

New government incentives to boost chip making, coupled with India’s low labour costs and surging demand for electronic goods from a fast-growing middle class, could change that.

“India would be the only country in the world with robust models in chip design, chip manufacturing and electronics manufacturing,” said Poornima Shenoy, president of lobby group India Semiconductor Association.

In March, Hindustan Semiconductor Manufacturing Corp, which is backed by a group of Indian investors based in Silicon Valley, announced plans to build two chip-making plants in India for up to $4.5 billion using technology from Germany’s Infineon Technologies AG

“Our focus is clearly the Indian market, although we plan to export out of the country as well.

The growth in mobile phones and computers has enabled the demand for chips,” said Deven Verma, chairman of Hindustan Semiconductor Manufacturing.

Mobile phone subscribers in India rose 68 percent in March from a year earlier to 166 million. Still, only about 15 percent of India’s 1.1 billion people own a mobile phone, compared with around 35 percent in China.

“The global demand for chips will always go through a cycle of oversupply and shortages, but the potential in India is going to be huge in the years to come. Whether we make it or not, India will continue to buy chips,” Verma said.

Consumption surge: India spent about $2.8 billion on semiconductors in 2005, and demand is estimated to exceed $36 billion by 2015, according to a study by the India Semiconductor Association and research and consultancy firm Frost & Sullivan.

Furthermore, the study says electronic equipment consumption should surge to $363 billion by 2015, more than 10 times spending of $28.2 billion in 2005.

“It is just an enabler that was badly required for the semiconductor industry to take off in India,” Alok Ohrie, managing director of AMD India, said of the government push. “It will help establish semiconductor manufacturing in India.”

AMD is a technology partner to the local SemIndia consortium, which has said it planned to set up a chip-making facility in India with an investment of $3 billion over the next five years. But some investment may have already passed India by.

Intel, the world’s largest chip maker, said last November it was waiting for India to form its semiconductor policy before deciding on plans to begin manufacturing. In March, Intel said its first semiconductor plant in Asia would be built in China.

Texas Instruments Inc, the world’s biggest maker of mobile chips, said earlier this month it will build a $1 billion plant in the Philippines a move that signals the entry of semiconductor companies into new low-cost countries.

South Korea’s Hynix Semiconductor Inc. will consider emerging markets like India to set up a manufacturing facility in the future as part of its global expansion strategy, its senior vice-president O.C. Kwon told the Reuters Global Technology, Media and Telecoms Summit.

Tough competition: One difficulty the industry faces is that India does not spring to mind as a manufacturing destination in a very competitive sector with established Asian rivals, because of inadequate infrastructure and archaic labour laws.

“It is easy for any company to imagine manufacturing in Taiwan or China or even Japan today,” said Ajay Marathe, chief operating officer of SemIndia.

“India as a manufacturing hub of the future, however, needs some wisdom. This wisdom has to do with the understanding of the exploding Indian market and exponentially growing middle class with sizeable disposable income,” he said.

Analysts say interest in India would be fuelled by a growing appetite for electronic goods such as computers, mobile phones, and digital televisions that currently use imported chips.

At the moment such chips may very well have been designed in India, because, while it lags in chip manufacturing, it has made big strides further up the value chain.

India’s semiconductor design industry had revenues of $3.3 billion in 2005 and employed about 75,000 people. That is expected to increase to $43 billion in revenue and over 780,000 employees in 2015, the India Semiconductor Association said.

In February, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s top contract chip maker, opened an office in Bangalore to support its customers with design activities in India. STMicroelectronics’ Indian chief told Reuters in February that headcount in its Indian chip design centre would be raised to 3,000, from 1,700 now, in the next three years.

“If India can do the chip design work, it can take care of the manufacturing part as well, especially when labour costs in India are still 10-12 percent lower than China,” said Y S Sashidhar, vice-president at Frost & Sullivan. reuters

http://www.dailytimes.com.pk/default.asp?page=2007\05\17\story_17-5-2007_pg5_9

 

[Bushroda]

Thursday, May 17, 2007

India plans to join ranks of chipmakers

SEOUL: Having carved a niche in global software development and services outsourcing, India’s search for the next big thing in high-tech could see it take on the rest of Asia in the crowded chip manufacturing market.

http://www.dailytimes.com.pk/default.asp?page=2007\05\17\story_17-5-2007_pg5_9

Redundant post Neo, guess I beat you in reporting

 

[Bushroda]

Investing in China and India better than BRIC
Thursday, 17 May 2007 17:24

China and India are a better bet for people investing overseas than the other half of the BRIC emerging markets sector - Russia and Brazil.

And that means investors would be better off concentrating their money there, rather than in a more traditional BRIC fund.

That is according to Jersey-based investment house Ashburton, which highlights the demand driven nature of the Asian countries as giving them the edge.

Chinese and Indian equities have performed well in the first half of 2007, with firms returning robust earnings and strong growth forecasts. Currency appreciation and liquidity flows from foreign and domestic money in search of performance have also supported this growth.

"The main reason for the appeal is the Chinese and Indian economies are driven by a combination of positive demographics and consumption growth, and offer an attractive long-term investment opportunity that is both substantially different and complementary to that offered by resource based economies," said Craig Farley, one of Ashburton’s Asia Pacific specialists.

"Given the recent commodity bull market, a lot of private investors will have built up sizeable weightings to the resource sector through both specialist holdings and global equity portfolios.

"Targeting 'China and India' allows them exposure to one of the driving forces behind the global economy at the moment without further increasing their direct exposure to commodities, as would be the case through a BRIC fund."

However, he believes there could be a correction on the horizon in China with government measures to cool the Indian economy also possible.

But when put in context of longer-term trends this does not overly concern.

"Chindia’s demographic profile is becoming younger, more literate and more urban, leading to greater productivity, rising incomes and increasing demand for goods and services," Mr Farley explained.

 

[Bushroda]

India emerging as a global doctor

[YOUTUBE]

Another video

[YOUTUBE]

 

[Bushroda]

AFX News Limited
Sun Microsystems eyes Indian retail, healthcare sectors for growth
Forbes 05.18.07, 5:26 AM ET

BANGALORE (Thomson Financial) - US technology giant Sun Microsystems Inc will focus on India's booming retail, healthcare and financial services industries to tap the world's second-fastest growing economy, co-founder and chairman Scott McNealy said.

India is already the 'fastest growing non-US geography' in terms of revenue for the Santa Clara-based maker of computer servers, McNealy told reporters in Bangalore, known as India's Silicon Valley.

'It won't stop growing as long as you keep cranking out engineers,' said McNealy, whose company's Java technology is used by 3.5 million Indian software developers.

The next phase of growth in India for the company will be powered by industries such as retail -- which he said will head for a shakeout as large supermarket chains expand -- as well as healthcare and financial services, the government sector and Internet companies.

'We'll move as fast as the market here will allow us,' said McNealy, who co-founded Sun in 1982.

In India, Sun's Java technology is used by sofware developers on more types of mobile devices, smart cards, cash machine-cards, personal computers and servers than any other software.

A study by two professors at the Indian Institute of Management-Ahmedabad found that Java-related services and products account for 2.1 pct of gross domestic product in India, whose economy is growing nine percent a year, the fastest after China.