Indian Economy-News & Updates

[Shaurya]

Facebook is a surveillance engine, not friend: Richard Stallman, Free Software Foundation

"You know about the two rules right for interviewing Richard?" a volunteer asks before leading us to meet Richard Stallman, the man who fights for free software day in and out. One, don't use the term Open Source to mean free software.

Two, don't say Linux but say GNU/Linux. Dr Stallman, who started the Free Software Foundation in 1985 to promote freedom to create, share and modify software, is extremely sensitive to whether the goals of his initiative are rightly communicated.

A computer engineer and self-proclaimed hacker, the 58-year-old Dr Stallman lives the life of an activist. He lives frugally, like a student, he has said once. The philosophy behind the support for free software reflects in other things too.

During this interview, he gave back a Kinley water bottle, because he doesn't consume Coca-Cola bottles for the way it handles labour. Ditto is his feeling about Walmart. He uses the low-profile Lemote Yeeloong computer, browses the Net only once or twice daily and doesn't own a cell phone, because he believes it creates privacy issues.

He's a Green Party supporter. And can cut down to size all the new age iconic business corporations, which he has done in this interview. In fact, in what raised a storm, he re-quoted the famous lines 'I'm not glad he's dead, but I'm glad he's gone,' after the death of Steve Jobs. Excerpts:

How do you see the recent move by Facebook to go for listing?

I don't care about that. Facebook mistreats its users. Facebook is not your friend, it is a surveillance engine. For instance, if you browse the Web and you see a 'like' button in some page or some other site that has been displayed from Facebook.

Therefore, Facebook knows that your machine visited that page. So, Facebook carries out surveillance over visitors to thousands of different Websites, even for people who are not Facebook users. I hope we will have something for free browsers to block Facebook 'like' buttons so that people won't be under surveillance.

In any case, this is why I ask people not to put photographs of me on Facebook, because Facebook collects data about the names of people in photos. It might as well be working directly for Big Brother.

Mark Zuckerberg says the likes of Google and Microsoft are collecting information behind your back.

They all do it in a secret way. Facebook collects a lot of data from people and admits it. And it also collects data which isn't admitted. And Google does too. As for Microsoft, I don't know. But I do know that Windows has features that send data about the user.

Stay away from illegal activities/nudity/support for terrorism etc. you are being watched....

 

[Shaurya]

India: Renewable Energy Investment Outpaces Rest of the World

Investment in India's renewable energy is out-pacing the rest of the world, thanks to the improving cost-competitiveness
of wind and solar.

Renewable energy investments reached $10.3 billion
in 2011, 52% higher than the $6.8 billion invested in 2010, the highest growth of any significant economy in the world.

India now accounts for 4% of global investment in clean energy.

Policy measures like the India's National Solar Mission and declining prices for wind and solar have made this a record year.

India's National Solar Mission has set a target of producing 10% of its energy - 20,000 MW - using solar by 2022, equivalent to 18 nuclear reactors.

India will exceed its Five Year Plan (2007-2012) target, installing 14.2 gigawatts (GW) of renewables compared to its target of 12.4 GW, according to Bloomberg New Energy Finance.

Funding for solar projects has grown seven-fold since 2010, from $0.6 billion in 2010 to $4.2 billion in 2011, almost reaching that for wind at $4.6 billion.

India added 277 MW of solar in 2011, up from 18 MW in 2010, and will add another 500-750 MW this year.

India ranks third in the world for wind capacity after China and the US. It added a record 2,827 MW of wind capacity in 2011, up from 2,140 MW in 2010. An estimated 2,500 - 3,200 MW will be added in 2012, according to Bloomberg New Energy Finance.

Most of the investments are for utility-scale projects at $9.5 billion, but there was also $425 million invested in companies through venture capital and private equity in 2011, more than four times the amount in 2010.

"India's record performance in 2011, and the momentum it is carrying into 2012, is one of the bright spots in the clean energy firmament. With support mechanisms falling away in the US, the ongoing financial crisis in Europe, and China already going flat out, it is gratifying to see some of the world's other major potential markets coming alive." says Michael Liebreich, CEO of Bloomberg New Energy Finance.

"The surge in installation of renewable energy shows
that it is becoming cost competitive and scalable. To carry this
momentum forward, federal and state governments will have to
ensure four things. First, that transmission lines are available for projects; second, that the grid can handle an increased flow of renewable energy; third, that renewable purchase obligations are enforced; and, fourth, that project developers are paid on time for the power they produce," says Ashish Sethia, head of India research at Bloomberg New Energy Finance.

India: Renewable Energy Investment Outpaces Rest of the World

 

[Lambda]

Ssangyong Motor may invest $1.2 billion in India as a manufacturing base

MUMBAI: Ssangyong Motor Co may consider making India a manufacturing base, a senior executive of the Mahindra & Mahindra-owned Korean company said, mirroring similar moves by other automakers that are benefiting from low-cost of production in India.

Choi Jong-sik, Ssangyong's vice-president, sales, also said the company plans to invest over $1.2 billion over the next three to five years, which will help it roll out four new products and their variants.

Ssangyong, which will roll out its Rexton and Korando C SUVs in India later this year, could move to manufacturing and exporting smaller compact and sub-compact SUVs being jointly developed with majority stakeholder Mahindra & Mahindra.

"If you see manufacturers like Hyundai, they are exporting cars to many countries; so possibly, we may explore such opportunities in future," Choi said, adding, "We know the cost of manufacturing is lower in India, but the quality should be of international standards."

ET had reported in October that M&M and Ssangyong are jointly developing a sub-compact SUV, codenamed S101, which is likely to take on hatchbacks in India with a 3-4 lakh price tag. And the Ssangyong derivative of the same product is being considered for manufacturing and exports out of India.

M&M has started talks with Indian vendors for localisation of some key parts of Rexton and Korando C to bring down cost. Vendors are also participating in the development of the S101. Experts say Ssangyong's consideration of India as a manufacturing base is driven by factors such as Indian ownership, lower cost of manufacturing, synergies of joint development and joint manufacturing.

VG Ramakrishnan, VP at market research firm Frost & Sullivan, said: "The ownership is what may be driving the move. And if you have a product, which is well suited to the needs of the BRIC markets, it makes sense to manufacture them in India instead of a high-cost base such as Korea." Ssangyong can benefit from joint manufacturing and joint sourcing and, in the process, also arrest the high customs duty, Ramakrishnan added.

Ssangyong Motor may invest $1.2 billion in India as a manufacturing base - Economic Times

 

[Shaurya]

India increases Iran oil imports

Iran's crude oil exports to India have increased 37.5% in January.

India has increased oil imports from Iran to become the Islamic Republic's largest customer last month, ignoring recent sanctions imposed by US and EU on importing Iran’s oil.


According to The Wall Street Journal Iranian crude exports to India rose to 550,000 barrels a day in January, up 37.5 percent from December 2011.

The development, the report said, has partly offset a 50 percent cut in crude exports to China as a result of pricing dispute. China now imports around 250,000 barrels a day from Iran.

The news comes despite the West’s rising pressure on Iran to halt its peaceful nuclear program.

On the New Year’s Eve, the United States imposed new sanctions against Iran aimed at preventing other countries from importing Iran’s oil and doing transactions with its central bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling diamonds, gold, and other precious metals to Tehran.

Although financial sanctions have caused problems with regard to payment for Iran’s oil by other countries, they have apparently not been able to deter India.

Iran's Ambassador to India Seyyed Mehdi Nabizadeh said last Tuesday that India had agreed to pay for some purchases of Iranian oil in Indian rupees, a route that would avoid the risk of an interruption in banking transfers.

Meanwhile, despite a pledge to find alternative supply sources for Iran’s oil, South Africa has also increased its Iranian oil imports to 100,000 barrels a day, The Wall Street Journal quoted an unnamed informed source as saying.

The US, Israel and their European allies accuse Iran of diversion in its peaceful nuclear program and have used this as an excuse to pass four rounds of international sanctions against the country at the UN Security Council.

Refuting the claims, Tehran insists that as a member to the International Atomic Energy Agency and the Nuclear Non-Proliferation Treaty (NPT), it is fully entitled to peaceful applications of the nuclear energy.

India increases Iran oil imports - Tehran Times

 

[Shaurya]

“India is moving towards paper less kind of Insurance Industry”: Mr. J Hari Narayan, Chairman, IRDA

New Delhi: India is moving towards a paperless kind of insurance industry. “IRDA is working on the repositories and contractual liabilities to suit to the requirements of a paperless insurance industry”, said Mr. J Hari Narayan, Chairman, Insurance Regulatory and Development Authority (IRDA) speaking at the session on Addressing Distribution Challenges here today.

Speaking about India’s approach towards the insurance sector, in comparison with other countries, Mr. Narayan pointed out that India followed Rules based Regulations vis-à-vis Principle based Regulations, which suits more to the Indian context. “However we are also trying to consider the best practices of both the approaches into the Indian system”, he said.

Mr. Narayan opined that low cost broking intermediaries must be taken up to cater to the insurance requirements, especially in the Tier-II & Tier-III cities. Mr. Narayan also pointed out that in insurance, distribution is a challenge. “Insurance depends on Trust and Competence”, he said.

Mr. Ashvin Parekh, Partner, National Leader – Global Financial Services, Ernst & Young Ltd., presenting the CII recommendations on addressing distribution challenges said that on the Life Insurance front, the regulator may consider a process for ushering in regulatory changes with appropriate phase-ins; Regulatory guidelines should allow room for innovations; Conducive level of regulations v/s micromanagement; Differentiated approach for licensing of intermediaries; and Awareness creation initiatives.

Presenting the recommendations on the Non-Life Insurance front, the Mr Parekh said that the regulator may explore creating of class 1(retail) agent and class 2(all products) agents for general insurance. The regulator may examine a minimum commission structure for underinsured segments, he added. The regulator may also examine removal of commission caps and commission structure to form as part of product design and actuarial sign-off, he alluded.

Earlier, in his welcome address, Mr. Sanjiv Bajaj, Co-Chair, CII National Committee on Insurance and Pensions & Managing Director, Bajaj Finserve Limited, said that distribution challenges was one of the major issues impacting the growth of insurance and pensions in India and said that the CII National Committee on Insurance and Pensions has set out recommendations for the Government and the regulator on ways and means of strengthening the distribution channels in Insurance.

“India is moving towards paper less kind of Insurance Industry”: Mr. J Hari Narayan, Chairman, IRDA, Orissa Business News

---------- Post added at 11:07 PM ---------- Previous post was at 11:06 PM ----------

India's industrial production growth slows down to 1.82% in December 2011

India's industrial production growth rate slowed down to 1.82 per cent in December 2011 as compared to the level in the same month of last year, an official statement said here today.

Industrial output growth had fallen into the negative zone at (-) 4.97 per cent, a 28-month low, in October 2011, the revised figures for that month given out today said. It bounced back into positive territory at 5.94 per cent in November 2011.

The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for December 2011 released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation today showed that the General Index for the month stood at 178.8 as compared to 175.6 in the corresponding month of 2010.

The cumulative growth for the period April-December 2011-12 stood at 3.6 per cent over the corresponding period of the previous year, the statement said.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2011 stood at 136.2, 190.7 and 149.8, respectively, with the corresponding growth rates of (-) 3.7%, 1.8% and 9.1% as compared to December 2010.

The cumulative growth in the three sectors during April-December, 2011-12 over the corresponding period of 2010-11 was (-)2.7%, 3.9% and 9.4%, respectively.
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The statement said 15 of the 22 industry groups in the manufacturing sector had shown positive growth during December 2011 as compared to the corresponding month of the previous year.

The industry group ‘Publishing, printing & reproduction of recorded media’ showed the highest growth of 57.3%, followed by 41.2% in ‘Medical, precision & optical instruments, watches and clocks’ and 24.3% in ‘Tobacco products’. On the other hand, the industry group ‘Electrical machinery & apparatus n.e.c.’ showed a negative growth of 48.8% followed by 7.4% in ‘Furniture; manufacturing n.e.c.’ and 6.4% in ‘Machinery and equipment n.e.c’.

The growth rates in December 2011 over December 2010 are 4.0% in Basic goods, (-) 16.5% in Capital goods and (-)2.8% in Intermediate goods. Consumer durables and Consumer non-durables recorded growth of 5.3% and 13.4% respectively, with the overall growth in Consumer goods being 10.0%.

Some of the important items of consumer goods which showed high positive growth during December 2011 and thus contributed to the growth of the overall index for the month include ‘Cashew Kernels’ (135.3%), ‘Marble Tiles/Slabs’ (71.4%), ‘Newspapers’ (60.1%), ‘Cigarettes’ (48.0%), ‘Leather garments’ (34.8%) and ‘Pens of all kind’ (33.0%). However, some important items of the consumer goods showed negative growth. These are: ‘Vitamins’ [(-) 49.3%], ‘Polythene bags including Hdpe & Ldpe Bags’ [(-) 36.9%] and ‘Gems & Jewellery’ [(-) 24.0%].

The other important items which showed negative growth during the month are: ‘Cable, Rubber Insulated’ [(-)78.8%], ‘Cement Machinery’ [(-)76.6%], ‘Colour TV Picture Tubes’ [(- ) 71.7%] , ‘X-Ray Equipments’ [(-)40.3%], ‘Plastic Machinery including Moulding Machinery’ [(-)34.9%] and ‘Cotton Yarn’ [(-)14.5%], the statement added.

---------- Post added at 11:09 PM ---------- Previous post was at 11:07 PM ----------

Indian PM rejects Western calls to curtail Iran oil imports

TEHRAN - India resists pressure from the U.S. and the EU to curtail its trade with Iran, insisting that diplomacy is the best way to deal with Iran’s nuclear issue, according to the Washington Post.

The U.S. and its Western allies want India to curtail oil imports from Iran.

Iran is India's second-largest crude oil supplier after Saudi Arabia.

After a meeting with the EU president Herman Van Rompuy in New Delhi on Friday, Prime Minister Manmohan Singh told reporters that he believes the nuclear issue "can be and should be resolved by giving maximum scope to diplomacy."

According to CNN, India actually increased its import of Iranian crude last month.

U.S. State Department spokeswoman Victoria Nuland said on Thursday that “we are working with countries around the world, including India, that maintain strong oil relationships with Iran, encouraging all of them to reduce their dependence on Iranian crude.”

But India imports seventy percent of the oil it uses – fourteen percent of it from Iran.

The New York Times, in an article posted on its website on February 11, said India’s determination to continue buying Iranian oil has frustrated officials in Washington at a time when the forward momentum in the United States-India relationship has slowed, with differences over issues including civil nuclear cooperation, trade protectionism and military sales.

The situation was exacerbated this week by news reports that India had become Iran’s top oil customer, while an Indian official announced plans to send a trade delegation to Tehran.

Indian PM rejects Western calls to curtail Iran oil imports - Tehran Times

Mods may shift this if not in appropriate thread...

 

[Shaurya]

Indian exports rise 10.1% year-on-year in Jan.

MUMBAI (Kyodo) -- India's exports rose 10.1 percent year-on-year to $25.4 billion in January and imports were up 20.3 percent to $40.1 billion for a monthly trade deficit of $14.7 billion, the Commerce Ministry statement said Thursday.

Exports in April 2011 to January 2012 rose 23.5 percent to $242.8 billion and imports rose 29.4 percent to $391.5 billion in the same period, the statement said, quoting Commerce Secretary Rahul Khullar.

The April-January growth came from good performance in sectors such as engineering, petroleum and oil products, gems and jewelry and pharmaceuticals, it added.

India's government has set a target of $300 billion in exports for the fiscal year ending in March and aims to achieve $500 billion in exports in two years.

But the Federation of Indian Export Organizations has said recently the targets may be hard to reach because of economic slowdowns in Europe and the United States.

Indian exports rise 10.1% year-on-year in Jan. - The Mainichi Daily News

 

[Shaurya]

Govt may pass Companies Bill in Budget Session

The government today said it hopes to get the new Companies Bill, which will replace the half-a-century old Act, passed in the upcoming Budget Session.

"I had a meeting with Pranab Mukherjee, L K Advani, Sushama Swaraj. It was decided that the Bill should be send back to the Parliamentary Standing Committee [on Finance]."

The Companies Bill, 2011, which was listed for passage in the Winter Session, was strongly opposed by the Opposition and UPA ally Trinamool Congress as they said this was virtually a new Bill with considerable alterations to the earlier version.

As a result, it had to be sent back to the Committee.

The Bill will introduce new rules, covering areas such as corporate social responsibility (CSR), class action suits and a fixed term for independent directors. It also proposes to tighten laws for raising money from the public.

The Bill also seeks to strongly check insider trading by company directors or key managerial personnel by treating such activities as a criminal offence.

Further, it has proposed that companies earmark 2% their average profit of the preceding three years for CSR activities and make a disclosure to shareholders about the policy adopted in the process.

The new legislation seeks to replace the half-a-century-old Companies Act, 1956, and modernise corporate practices in line with global developments.

Link

 

[Shaurya]

Toshiba plans export hub for steam turbines in Chennai

Japan’s Toshiba Corporation seeks to turn its Indian base into a manufacturing and export hub for super-critical steam turbines and generators for southeast and west Asian markets. The company also intends to double capacity of its green-field facility near Chennai to 6,000 mw by financial year 2015.

The Chennai facility, which has been set up as a 75:25 joint venture between Toshiba and India’s JSW Group, is Toshiba’s first production facility outside Japan. It will make turbines and generators for coal-fired power plants. Located close to Ennore Port, the plant will produce steam turbines and generators ranging from 500 mw to 1,000 mw for super-critical thermal power plants.

Toshiba is one of the wo-r*ld’s largest suppliers of the-rmal power equipment. It sees huge potential for power equipment in India. The joint venture, Toshiba JSW Turbine and Generator, is charting out an export strategy to serve markets in Asia and Africa. The Chennai facility has commenced production of blades and is expected to reach full production capacity by the end of next financial year. The facility was inaugurated by Tamil Nadu chief minister

J Jayalalithaa on Sunday.

The JV had originally committed an investment of Rs 800 crore. It has so far spent about Rs 650 crore. However, with its plan to double capacity to 6,000 mw, total investments may cross Rs 1,000 crore, said Itaru Ishibashi, managing director of Toshiba JSW Turbine and Generator.

The Chennai plant will make rotor blades for turbines while other major parts will be imported from Japan. About 40 per cent parts for the equipment will be procured locally. Ishibashi said the JV would initially offer a delivery schedule of 18-20 months for supply of equipment but plans to reduce the cycle further.

About 40 per cent of India’s thermal capacity addition in the 12th plan period is expected to be based on super-critical technology due to its higher efficiency. Norio Sasaki, president and chief executive officer of Toshiba Corporation, said the plant would serve about 30 per cent of equipment needs of thermal power capacity addition proposed during the 12th plan.

Toshiba has already started bidding for several coal-fired projects and is confident of securing orders for the 2 x 660 mw and 3 x 800 mw NTPC coal-fired projects in Uttar Pradesh and Karnataka, respectively. The JV hopes to clock total revenue of $400 million by 2015. Ishibashi indicated that Toshiba would also look at production of ultra-super critical equipment whenever the demand arises.

Toshiba plans export hub for steam turbines in Chennai | mydigitalfc.com

 

[Shaurya]

Hikal`s API manufacturing plant to be ready by June'12

Hikal Ltd, the outsourcing partner for pharmaceuticals, biotech, agrochemicals and speciality chemicals industries announced that the company's multipurpose facility to manufacture active pharmaceutical ingredients (APIs) will be operational by June 2012.

The company also informed that it will supply a wide range of APIs from its Bangalore facility to its customers in markets like the US, Europe, South East Asia, Latin America, Canada and Japan. This was the company's third site approval as a result of the US FDA audit at the facility located at Jigani near Bangalore.

Hikal is building a new multipurpose API facility at this site would meet additional demands from its US, European and Japanese customers. The plant will be operational by June 2012 and can accommodate 32 reactors with capacities ranging from 6 m3 to 10 m3.
This will result in a total reactor volume of approximately 300m3.

The company has appointed Peter Nightingale as the president of its 100 per cent contract research subsidiary, Acoris Research Ltd, Pune, India. Nightingale is a PhD in chemistry from the University of Manchester, United Kingdom and is a process development chemist with over three decades of experience in the pharmaceutical, agrochemical and fine chemical sectors.

"We are pleased to announce the appointment of Dr Nightingale as the president of Acoris Research Ltd. Dr. Nightingale’s extensive experience in the adaptation of new technologies in chemistry and as a veteran process development chemist will be a great asset to Acoris Research," said Jai Hiremath, vice chairman and managing director, Hikal.

Hikal`s API manufacturing plant to be ready by June'12

---------- Post added at 03:05 AM ---------- Previous post was at 03:02 AM ----------

A good Opinion article regarding the " manufacturing goal " of ours...

New Manufacturing Policy: Why India needs a blueprint to boost manufacturing

India's New Manufacturing Policy aims to create 100 million jobs in 15 years; grow manufacturing about 3% faster than GDP so that its contribution to GDP can increase from 16% to 25%; and increase technological depth and value addition in India's manufacturing to enable India to improve its trade balance which has been deteriorating with increases in imports (including large volumes of manufactured goods) exceeding exports. How will these ambitious goals be achieved?

The concept of Industrial Policy - the deliberate management of a nation's industrial growth - had been banished with the Washington Consensus' faith in free markets and distaste for government intervention in industry.

With the reforms of the 1990s India has also been following the path of cutting the government's role. Overall its economy has grown: with many quips that India's economy grows only when its government sleeps.

However manufacturing has not been an engine of this growth. The need for an Industrial Policy has now appeared even in the USA to stimulate the growth of its manufacturing sector and create jobs.

India cannot carry on the way it has in the last two decades when several developing countries - Thailand, Malaysia, and of course, China - have grown their manufacturing sectors much faster than ours, even though India had a stronger manufacturing base than them in the 1980s.

The urgent question is, what is government's role in accelerating growth of manufacturing? Studies of the approaches taken by the countries mentioned, and the strategies adopted by others earlier, especially Japan and Germany, who continue to sustain their manufacturing strengths, reveal the nature of effective industrial policy.

Good industrial policy is not about micro-managing industry, which was the stifling way of India until the 1980s. Nor is it about 'picking winners' - particular firms and technologies to bet on - a risky approach that has worked sometimes in other countries but failed often too.

Sound industrial policy is the process of accelerating learning within a country's industrial eco-system that enables enterprises within it to improve their competitiveness faster than enterprises in other countries.

Therefore the role of government is to stimulate a vibrant eco-system of private and public producers, with the institutions that provide public goods such as education and business regulations.

Since an eco-system consists of several interacting policies and institutions, the participants in it must come together to understand what the constraints in it are and devise a way out of them. Deng Xiaoping described this process as, 'Feeling the stones underfoot as one crosses the stream'.

Each developing country enters the stream of technological and industrial growth from its own starting point and must chart its own path forward, as Dani Rodrik explains in One Economy: Many Recipes. The implication of these insights are that the countries in which the components of the eco-system work together more effectively, thereby learning and changing faster, will overtake others.

Thus new industrial powers emerge. The thrust of an effective industrial policy must be to improve processes of inter-institution collaboration and learning, rather than to pick winners, or try to manage a complex input-output matrix of resources.

New Manufacturing Policy: Why India needs a blueprint to boost manufacturing - The Economic Times

 

[Shaurya]

India retains world's most optimistic market tag

India has once again emerged as the most optimistic market, driven by its buoyant domestic consumption levels, but slowing growth and inflationary concerns could put pressure on consumer confidence for the year ahead, says a survey.
According to the latest global consumer confidence findings from Nielsen, a provider of information and insights into what consumers watch and buy, India remained the world's most optimistic market for the eighth consecutive quarter with a one point consumer confidence index increase to 122.
India was followed by Indonesia and the Philippines at 117 in the list.
Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen said, "Buoyant domestic consumption also maintained confidence levels in the large emerging economies of India, Indonesia and Brazil. However, slowing GDP growth within emerging economies and inflationary pressures would suggest some degree of caution for the year ahead."
Elaborating further, Nielsen India Managing Director Justin Sargent said, "The stabilisation of India's consumer confidence metric is encouraging and the retention of the top spot globally reminds us of the inherent strength of the Indian economy, the savings mindset of the Indian consumer, and the positivity of consumer sentiment which has likely been helped by the recent cooling of inflationary pressure."
Meanwhile, the global consumer confidence increased in the December quarter led by the world's two largest economies ?- the US and China -- but deteriorated in the eurozone countries.
Global consumer confidence increased one index point to 89, even as confidence levels in 24 out of 27 European markets witnessed a decline.
"While Europe's challenging economic conditions in the second half of 2011 bought renewed vulnerability and fragility to consumers and financial markets globally, some of the most positive news last quarter came from the world's two largest economies ?- the US and China -? where confidence rebounded to Q1 2011 levels," Bala added.
Confidence levels declined in 35 out of 56 markets, while confidence rose in 12 markets and remained flat in nine, but shoppers are still cautious, the survey, conducted between November 23 and December 9, 2011, said.
Hungary was the world's most pessimistic market at 30 index points, followed by Portugal (36) and Greece (41), where quarterly confidence levels fell seven, four and 10 points, respectively.
"European markets accounted for nine of the 10 most depressed markets last quarter," the report said.
Further, the consumer discretionary spending is likely to remain restrained in the second half of this year.
"Despite consumers becoming more confident about their personal finances for the year ahead, there is still a reluctance to spend, especially in the West; rising tensions in the Middle East and their impact on gasoline prices could further compound global consumer concerns and spending plans," Bala added.
More than half (52%) of global online consumers described their personal finances for 2012 as excellent/good, up from 50% in Q3 2011, but 65% indicated it is not a good time to buy.

India retains world's most optimistic market tag - PTI -

 

[russellpeters]

For IT, deals from Europe hasten

German, French cos waking up to virtues of outsourcing, now more than ever

Suparna Goswami-Bhattacharya & Beryl Menezes l Bangalore/Mumbai


Ø TCS just won a contract with TDC, Denmark’s largest telecommunication company, the loser being Computer Sciences Corp, a local vendor
Ø Mahindra Satyam recently won a multimillion dollar contract from a chemical company in Germany
Ø Wipro won a large deal from pharma giant Astra Zeneca deal in Europe in the last quarter
Ø Two large deals Infosys won in the last quarter were from Europe
Ø TCS has been selected by Europcar as strategic IT partner in France

Instances of Indian software companies winning contracts in Europe, especially the so-called continental Europe comprising Germany and France, have increased of late.
It’s a tailwind that India’s coders are desperately seeking to keep cranking up the growth rates.
French and German companies, known for their conservative approach to offshoring, seem to be veering to the view that the Indian offshoring model has immense cost and efficiency benefits, especially in times of sovereign crises.
Not surprisingly, analysts estimate the share of revenues from Europe to increase to 25% from around 18% by the end of next fiscal.
“European customers are finding that Indian companies are more transparent and easy to negotiate with compared with delivery teams from American and local vendors,” said an analyst with a foreign brokerage, who did not wish to be named.
Giving an instance, he said, an American vendor’s onsite team had a loose relationship with its Indian counterpart due to which there was lack of proper communication and transparency. “The client received different communications from the local and offshore operations of the same vendor, which increased his costs,” he said.
Anirudha Bhosale, analyst with Deutsche Bank, said this is because organisational structures of multinational vendors are aligned by geography unlike Indian vendors who prefer the verticals schemata — such as telecom, financial services and manufacturing.
“This helps top-tier Indian firms strengthen relationships with European customers by delivering homogeneous solutions,” Bhosale said.
The work delivered by Indian vendors is also being adjudged topnotch. For instance, TCS recently received a top technology award after being adjudged for its work by an expert panel of CIOs and industry leaders in Belgium.
Vaibhav Dhasmana, assistant vice-president, Barclays Securities (India), said such awards and deals are the result of Indian firms pitching for more and being active in these markets.
“The basis of offshoring is cost arbitrage. Indian companies have focussed on the US and western Europe traditionally. However, since the demand in these markets has begun to taper off due to financial pressures recently, Indian companies are increasingly looking at continental Europe and eastern Europe. Such awards and deals are basically the fallout of IT firms pitching more aggressively and being more active in these geographies,” he said.
Even Cognizant Technology Solutions in its recent forecast said Europe seems to be moving away from discretionary spends to outsourcing spends — from capex to opex — and this emanates from the financial stress.
Some say Indian vendors also have world-class application development capabilities and shown great progress in package implementation as well, an area where IBM and Accenture are known to excel.
A recent Deutsche Bank report on continental Europe, authored by Bhosale, said for Oracle implementation, Infosys is considered to be on a par with IBM and Accenture, while Wipro, TCS and Cognizant are said to have made good progress too.
Rajan Kohli, chief marketing officer, IT business, Wipro, said for the No. 4, Europe is the second-largest market accounting for 28.2% of revenues in the third quarter.
“We have been witnessing growth across industry sectors. The growth has resulted from our strategy to focus on going local, an important aspect for anyone to be successful in this region. By this, I mean that we do not see Europe as a single market, but look at each specific country,” Kohli said. “We are willing to make investments ahead of the market in our focussed geographies and we have been rewarded with industry leading growth rates in these respective markets.”
That could quite be the story of the next two years for India’s software companies — if they get their localisation right. The massive revenue skew towards the US could be derisked significantly, at least by the Top 5, then.

DNA E-Paper - Daily News & Analysis -Mumbai,India

 

[russellpeters]

Rupee advances by 11 paise vs dollar
PTI | Feb 13, 2012, 12.11PM IST

Rupee advances by 11 paise vs dollar - The Times of India

MUMBAI: The Indian rupee advanced by 11 paise to 49.31/32 against the US currency at 1030hrs in view of selling of dollars by banks and exporters on the back of persistent capital inflows from foreign funds.

The rupee resumed lower at 49.45/46 per dollar at the Interbank Foreign Exchange (Forex) market as against the last weekend's level of 49.42/43 per dollar and hovered in a range of 49.20 per dollar and 49.53 per dollar before quoting at 49.31/32 per dollar at 1030hrs.

Banks and exporters preferred to reduce their dollar position in view of sustained capital inflows into equity market from foreign funds, a dealer said.


SBI Q3 net profit up 15%, beats forecast
SBI
SBI beat market expectations with a 15 percent rise in third-quarter net profit as interest income rose.
Reuters | Feb 13, 2012, 03.15PM IST

SBI Q3 net profit up 15%, beats forecast - The Times of India

MUMBAI: State Bank of India, the country's biggest lender, beat market expectations with a 15 percent rise in third-quarter net profit as interest income rose.

State-run SBI, which is exposed to some of India's biggest troubled borrowers, reported a net profit of 32.6 billion rupees for the three months to December 31, up from 28.3 billion rupees a year earlier.

Analysts, on average, had expected a 10 percent rise in net profit to 31.2 billion rupees, according to Thomson Reuters.

SBI, which was downgraded by Moody's Investors Service in October because of its thin capital base and worsening asset quality, said its non-performing assets ratio was 2.22 percent at end-December compared with 1.61 percent a year earlier.

The bank is counting on a government capital infusion of $1.6 billion in the current fiscal year ending March 31, but has said it needs double that amount to maintain its capital adequacy ratio as it grows.

 

[Shaurya]

Amway Corporation to commission its India manufacturing plant in 2014

KOLKATA: US-based direct selling fast moving consumer goods company Amway Corporation will commission its first own manufacturing centre in India in 2014, investing Rs.3 billion, a top company executive said Monday.

"The board of the company has approved the plan of setting up our first own manufacturing centre in India. The plant is scheduled to start production from 2014," Amway India Enterprises Managing Director and Chief Executive William S. Pinckney told mediapersons here.

The new plant in the country, which is the company's second biggest market in Asia after China, will produce its flagship brand Nutrilite and beauty products.

The company, however, refused to say where the plant would be located.

"We are considering three different states in different zones of the country for building the plant. Things have not been finalised yet. We are looking for the state which will give us the best facilities," Diptarag Bhattacherjee, vice-president (East) of the company, said.

Amway will also set up its corporate office in the National Capital Region (NCR), investing Rs.1 billion.

Pinckney said the company achieved double-digit growth in India mainly due to experimental marketing and brand awareness and penetration of products in semi-urban and rural areas.

The company, which clocked a turnover of Rs.21.30 billion for the fiscal year 2011, aims to cross the Rs.25 billion-mark in 2012.

Amway Corporation to commission its India manufacturing plant in 2014 - The Economic Times

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HAL prepares to manufacture Rafale combat jet in India

State-run Hindustan Aeronautics Limited (HAL) is getting ready to progressively manufacture the Dassault Rafale combat jet that has apparently been chosen by the Indian Air Force (IAF) for its $10.4 billion order for 126 planes.

HAL officiating Chairman and Managing Director P.V. Deshmukh told India Strategic defence magazine (..:: India Strategic ::.. Home Page: The authoritative monthly on Defence and Strategic Affairs.) that the company had already earmarked its own land near Bangalore, where it is headquartered, to produce some of the aircraft's major components and integrate the overall aircraft and systems.

The first 18 aircraft would come in fly-away condition, within three years of signing of the contract and meanwhile, HAL would get the production tooling, expertise and technical know-how under transfer of technology from the French.

The remaining 108 aircraft would initially be progressively manufactured from SKD (semi-knocked-down) and CKD (completely knocked-down) kits. Gradually, HAL would start producing the fuselage and other parts from the raw materials. Dassault engineers would assist in technology transfer and production plants.

HAL has been preparing for the medium multi-role combat aircraft (MMRCA) project in terms of allocation of funds and organisational changes needed to launch and deliver the targets on time. Three phases have been earmarked for HAL's goalposts in manufacturing this highly-sophisticated aircraft.

Deshmukh, who was earlier managing director of HAL's MiG complex at Nasik, said that over the next 10 years, the Rafale project should generate business approximating $4-5 billion. "It is a huge project for us," he observed.

He disclosed that HAL already had Memorandums of Understanding (MoUs) with Dassault and engine-maker Snecma to produce some of the designated parts. "HAL has been preparing for the MMRCA project in terms of allocation of funds and organizational changes needed to launch and deliver the MMRCA project targets on time."

Separate divisions have been planned for the aircraft and engine of the MMRCA at Bangalore, and two locations have been shortlisted within the HAL estate there for setting up the airframe and engine divisions.

Pre-planning activities with respect to conceptual design of plant layout for the aircraft and engine production units are under progress. Accessory production has been planned at HAL divisions at Hyderabad, Lucknow and Korwa (Uttar Pradesh).

Deshmukh described the Rafale as a state-of-the-art multi-role combat aircraft capable of a wide range of missions such as air defence, air superiority, close air support, air-to-ground precision strikes, interdiction, maritime roles and nuclear strikes. It has an integrated suite of avionics, electronic sensors, AESA Radar and active/passive counter measures.

"HAL is the designated lead production agency for the airframe, aero-engine and systems integration of the aircraft. Out of the 126 aircraft,, 18 aircraft will be directly supplied by Dassault Aviation and 108 aircraft will be built at HAL in three phases. In the next four years, the Rafale aircraft deliveries would commence from HAL to the Indian Air Force as per the agreed schedule. HAL envisages a business volume of about Rs.20,000 to Rs.25,000 crores ($4-5 billion) in the MMRCA project over the next 10 years."

Deshmukh said that the offset requirement of the MMRCA programme being 50 percent of the foreign exchange content, HAL is also looking forward to active participation in this industrial effort up to around 30 per cent of the offset value.

HAL prepares to manufacture Rafale combat jet in India | Deccan Chronicle

MODS may delete if in inappropriate thread ...

 

[Shaurya]

Oil imports: India-Iran work out rupee trade mechanism

MANGALORE: Indian and Iranian governments have worked out Rupee trade mechanism for payment of India's total crude imports from the latter in Rupees rather than convertible currency - the US Dollar normally used for such trade globally. The new mechanism is expected to be operational in two months. This arrangement comes in wake of American and European anti-nuclear sanctions that are increasingly disrupting Iran's economy.

Anup K Pujari, Director General of Foreign Trade interacting with reporters on the sidelines of Karnataka: Export Vision 2020, exporters' convention organised by Federation of Indian Export Organisations (Southern region) here on Monday that a decision to denominate our trade in rupee terms was taken at a bilateral meeting of two countries as trade cannot be done using international currency. "It is not barter, but it is almost like barter," he said.

Explaining the mechanism worked out, Anup Pujari said whatever oil India imports from Iran and for that oil whatever money India is supposed to pay, part of that amount will be retained in a bank in India. Thereafter, any Indian who exports to Iran need not have to bother about some US bank. Once (export) documents are negotiated, the designated Indian Bank, where the money will be kept, will pay the exporter the equivalent amount in Indian currency.

Oil imports: India-Iran work out rupee trade mechanism - The Times of India

 

[Splurgenxs]

India's January inflation at 6.55% down from 7.47% in December

India’s annual rate of inflation for the month of January fell to a 25-month low of 6.55 per cent, giving fresh life to calls for an interest rate cut by the Reserve Bank of India.

The inflation rate also beat a forecast of 6.7 per cent.

Food inflation, which has a weightage of abfout 14 per cent in the Wholesale Price Index (WPI) fell to 2.25 per cent from 3.07 per cent in December 2011, primarily because of a good harvest for most food articles and a consequent drop in prices.

Core inflation, or non-food manufacturing inflation declined to 6.49 per cent from 7.44 per cent.

Fuel inflation was at 14.21% against 14.91%

Reacting to the inflation data, Finance Minister Pranab Mukherjee said the numbers “should have come down further” and that he was “still not comfortable”.

Nonetheless, the clamour of lower interest rates is bound to increase, as India Inc. has been demanding for some time, in light of the new numbers which show that both food and non-food inflation have declined, albeit marginally

While the lower numbers are partially the product of a higher based, they are bound to put pressure on the RBI to lower key rates in an effort to boost growth and productivity The RBI has already been facing calls for such cuts in the wake of lower advance estimates of GDP as well as lower core sector growth, both indicating a slowdown in the overall economy.

One of the reasons for the falling inflation rate is the high base rate – inflation had been in double for close to two years before November 2011 – and a tighter monetary policy has led to lower liquidity and inflation