Indian Economy-News & Updates

[JayAtl]

Only 700 million USD and over 3 years？That's peanut for a country of India's size。

Japan must do more for the Indians，far more。Make Indians rich as soon as possible so that we Chinese might profit more doing business with them。

Thank you。

Speaking of peanuts...Hitachi is not Japan. it is but one company and thats only for the 1st 3 years.

 

[kbd-raaf]

Only 700 million USD and over 3 years？That's peanut for a country of India's size。

Japan must do more for the Indians，far more。Make Indians rich as soon as possible so that we Chinese might profit more doing business with them。

Thank you。

I don't think you should underestimate the kind of investment China/Chinese companies are looking to make in India.

 

[luckych]

India exported Rs 2.32 lakh crore agricultural produce this year: Sharad Pawar

Agriculture Minister Sharad Pawar said the country exported agricultural produce worth Rs 2.32 lakh crore this year after addressing the consumption need of 1.2 billion population and stocking foodgrains much above the buffer norms

Addressing a function at the College of Agriculture Engineering and Post Harvest Technology near Ranipool in Sikkim today, Pawar said India is today highest producer of milk, pulses, jute and second in the production of rice, wheat, sugarcane, groundnuts, vegetable foods and cotton in the world.

It is also the leading producer of spices and plantation crops as well as livestock, fisheries and poultry. India is thus emerging as a major player in the international market," he said.

The credit for this goes to farming community, scientists, technologists and the state governments, he added.

Read more at:
India exported Rs 2.32 lakh crore agricultural produce this year: Sharad Pawar - The Economic Times

 

[luckych]

Power gear makers to step up annual exports to $10 b in 3 years

The apex body representing the power generation, transmission and distribution sector is targeting to ramp up exports, currently at $5 billion annually, to $10 billion in three years.

GROWTH

India’s Rs 1.30-lakh crore electrical equipment industry has, after four consecutive quarters of fall in revenue, shown a 2 per cent growth in the first quarter of the current fiscal, which has been largely attributed to increasing exports.

The Indian Electrical & Electronics Manufacturers’ Association’s biannual international event Elecrama-2014, which is slated to be held in Bangalore next month , has adopted “Go global” as its principal theme.

The show, dubbed as the biggest in the world, would have around 450 approved foreign buyers from Africa, West Asia, ASEAN, Latin America, SAARC and Iran.

INDIGENOUS TECHNOLOGY

The Union Ministry of Commerce supports the effort and the industry under its market access initiated scheme.

The specially hosted package will entail five one-to-one meetings with the Indian sellers, complimentary economy class air-tickets from the nearest international airport of the guest country to Bangalore, 3-day and two-nights hotel stay at the venue, including transport and visa recommendation letters.

The event attracted 234 buyers, mostly from sub-Saharan Africa, in 2012. Some 683 Indian seller firms represented the suppliers.

It had generated business worth around Rs 200 crore and some Rs 500 crore worth of business were in the pipeline, IEEMA officials said at a road show here.

This time, the 5-day event will showcase indigenously developed products and technology . The expo begins January 8.

 

[Abhishek_]

BHEL commissions first super critical thermal unit

State-owned Bharat Heavy Electricals Ltd has commissioned its first 660-MW super critical thermal unit at a NTPC power plant in Bihar.

The power equipment major on Sunday said its 660 MW Boiler Turbine Generator (BTG) unit, having super critical parameters, attained full load at the Barh thermal project.

This package for Stage II Unit 4 of the project being implemented by NTPC.

“The supercritical steam parameters for this project — efficiency and heat rate are better than those of comparable supercritical projects presently under installation by others,” BHEL said in a statement.

The maiden order for 660 MW sets were won from NTPC through international competitive bidding for this 1,320 MW project. The scope of work included design, engineering, manufacture, supply and erection along with auxiliaries.

At present, BHEL is executing orders for supply and installation of 27 steam generators and 24 turbines with supercritical parameters of 660 MW, 700 MW and 800 MW ratings.

Other supercritical sets under execution include 2x660 MW Mouda Stage-II & 2x800 MW Gadarwara of NTPC; 3x660 MW Nabinagar of NPGCL (Joint Venture of NTPC and Bihar State Electricity Board); 3x660 MW Bara TPP of the Jaypee Group; 2x800 MW Yeramarus of Raichur Power Corporation Ltd; 3x660 MW Lalitpur of the Bajaj Hindustan Group; 2x800 MW Krishnapatnam of APGenco and and 2x660 MW Raghunathpur of DVC.

The power gear maker has the capability to manufacture thermal sets having 1,000 MW rating, using domestic and imported coal.

BHEL commissions first super critical thermal unit - The Hindu

 

[luckych]

Wipro to acquire US-based Opus CMC for Rs 467 crore

Country's third largest software services firm WiproBSE 2.24 % today said it will acquire US-based Opus Capital Market Consultants for $75 million (over Rs 467 crore) to strengthen its mortgage solutions business in North America.

Read more at:
Wipro to acquire US-based Opus CMC for Rs 467 crore - The Economic Times

 

[luckych]

Hyderabad gets Hitachi’s 2nd largest facility in world​

Hitachi Solutions Ltd, a Japan-based information and telecommunications company, on Thursday announced the setting up of its largest development facility outside the United States in Hyderabad.

“Hyderabad has a lot of engineering talent, which is relevant to Microsoft Dynamics. Also this city offers cost advantage over other cities and can give us a sustainable growth,” said Mr Ananth Subramanian, chief executive officer of Hitachi Solutions India, explaining the rationale behind the decision.

The Hyderabad facility can accommodate 200 consultants, while the Chennai office, which is expected to opened on Saturday, will house 100.

With this, Hitachi has joined an array of international companies, which are placing their bet on Hyderabad, after the uncertainty caused by Telangana agitation subsided.

The Telangana factor, Mr Subramanian said, did not affect the company’s decision. “Though there was a lot of hue and cry about this issue, we did not face any problem on ground. We are not concerned about the regional issues.”

Other IT majors, who have recently, announced their expansion plans in Hyderabad include Oracle, Amazon, TCS and Infosys.

Currently, Hitachi has 100 consultants in India. Of this, 50 are located in Hyderabad and the rest are in Chennai and Pune. “Going forward, Hydera-bad will be our primary hub and Chennai will the second. Pune will cater to some of specific skillsets,” Subramanian said.

According to Mr Mike Gillis, chief operating officer of Hitachi Solutions (business solutions group), the Japanese major would increase the total headcount in India to 500 by 2015.

Giving a new geopolitical dimension to the move, Masakazu Kuji, member of board of Hitachi Solutions India, attempted to hint at the growing uneasy relations between Japan and its larger neighbour China as one of reasons for Hitachi’s new focus on India.

Hyderabad gets Hitachi’s 2nd largest facility in world | Deccan Chronicle

 

[luckych]

Mondelez Builds Largest Chocolate Manufacturing Plant In India

Mondelez International announced plans to invest $190 million in the Indian state of Andhra Pradesh to establish the company's largest manufacturing plant in Asia Pacific. The 134-acre multicategory food campus in Sri City will have annual capacity of 250,000 tons in the end state and will be the largest chocolate manufacturing plant in India. The first phase of the project is expected to be completed by 2015.

"This investment in India is part of our ongoing supply chain reinvention plan," said Daniel Myers, executive vice president, Integrated Supply Chain, in a prepared statement. "We're implementing a number of initiatives around the world to capitalize on the growing demand in emerging markets while also aggressively reducing costs and improving productivity. We're pleased with our progress in the regions where we've already begun to invest."

Last September, Myers highlighted numerous initiatives to redesign the company's supply chain to deliver $1 billion in annual productivity savings over the next three years. These savings will be a primary driver of significant improvements in the company's base operating income margin in the near term.

"Over the last three years, we've invested nearly $200 million to expand existing operational facilities in India," said Manu Anand, president, India and South Asia, Mondelez International, and managing director, Cadbury India. "We're delighted to partner with the government of Andhra Pradesh on this new investment, which will help us build on our success in India and drive long-term business sustainability. We expect this model plant to set examples in production efficiency, energy savings, emission reductions and community involvement."


Mondelez Builds Largest Chocolate Manufacturing Plant In India

 

[SpArK]

India's exports rise 5.86 per cent to $24.61 billion in November 2013.

 

[SpArK]

Abu Dhabi Investment Authority to invest $250M in Hines India Real Estate
BY TEAM VCC
The Abu Dhabi fund has also appointed Aditya Bhargava to look at investment options in India.

Abu Dhabi Investment Authority to invest $250 million in Hines India Real Estate: Abu Dhabi Investment Authority is investing $250 million (INR 1,500 crore) in Hines India Real Estate, the Indian arm of American property development and management firm Hines, amid a rise in overseas interest in the sector. The sovereign wealth fund has formed a strategic alliance with Hines to invest across the residential segment in metros across India. This is the first direct real estate venture with a developer in India for the fund. The sovereign wealth fund owned by the emirate of Abu Dhabi recently invested $300 million (INR 1,800 crore) in the offshore fund of Kotak Realty Funds run by Kotak Mahindra Bank. (Economic Times)

 

[Jason bourne]

Modi's pro-biz like Sydney — everybody would be comfortable: Barry O'Farrell

Barry O'Farrell is premier of New South Wales, Australia`s most populous and most prosperous state. In India recently, O`Farrell spoke with Sachin Parashar about trade and investment, violence against Indians, Australia`s past decision to stop selling India uranium — and its future take on NaMo:
You're leading a third trade delegation to India — what are you working towards?
I came to office recognizing that New South Wales(NSW) was not working at the relationship as hard as other states were. We have an infrastructure challenge. We`re looking for investment to assist with the challenge — whether investment in projects or construction companies wanting to be a part of projects or people who want to buy assets we`re selling as part of financing projects. We`re also keen to increase tourism — introduction of direct Air India flights has been a huge boon.
What makes you optimistic about India when its government seems afflicted with what`s often called policy paralysis?
As a premier, i suppose i understand the slings and arrows that come with the job — but i also understand that governments have agendas and try to run those. When you got a country that wants to spend a trillion dollars in infrastructure projects in five years, not only does that send signals about the determination of governments to deliver, it also creates opportunities.
As a state, for 20 years we`ve partnered with the private sector for major infrastructure projects. We think there is financial services expertise around public-private partnerships that could be useful to government in India, seeking to deliver infrastructure projects.
Were you worried about Indian students choosing Australia after violence targeting them?
Firstly, these attacks were unfortunate. Most occurred outside NSW but what we sawacross the country was a determination of the state to ensure students from India were provided appropriate security.
The good news is we`re seeing an increase in the number of Indian students coming to NSW — the increase in migrants from India to NSW is the largest increase of any group.
Are you happy the two countries are discussing a safeguards agreement for ura-nium sales — considering NSW has lifted a ban on uranium exploration?
The decision to ban uranium sales to India was dumb — the new government in Australia is the government which originally took the decision to supply uranium to India.
As soon as the agreement is signed, people will get on with it. We expect to announce early next year who`s been awarded the opportunity to undertake uranium exploration across NSW. We will then have a mature discussion over mining and export.
You`re visiting Ahmedabad too — if Narendra Modi becomes PM, will your Liberal party be comfortable dealing with him?

In the Gujarat CM and government, you have a great case study of how a state can succeed and create opportunities and jobs — it`s a good message for a smaller country or smaller states.
I will leave my PM and foreign minister to those issues but given Modi`s pro-business philosophy and given a pro-business government in Canberra and Sydney, i think everybody would be very comfortable.
But that`s an issue which will be determined by voters across this country. The only thing i wish you is a majority government. In Australia, we`ve just come out of three years of a minority government. We both share systems of government based on the Westminster model. I`m absolutely convinced this model was meant for majority governments — the best way to take strong decisions is by having a majority government.

 

[itachiii]

Isuzu earmarks 3k cr for Sri City unit
http://timesofindia.indiatimes.com/...ity-unit/pmarticleshow/27203305.cms?prtpage=1
Isuzu may be planning its debut in India but its engines have long powered a number of SUV models with CK Birla group company AVTEC manufacturing the powertrains. Isuzu's decision to set up a production base in India will not change those "existing arrangements" said a top company official.

AVTEC has been manufacturing Isuzu engines for local and MNC players like General MotorsIndia. CK Birla group flagship Hindustan Motors is also under a contract manufacturing deal with Isuzu for the production of the Japanese company's MU-7 SUV.

The company's first India-made product, the MU-7, was launched on Tuesday and bookings have begun. The MU-7 is powered by a 3.0-litre diesel engine producing 120kw of power and 360nm of torque. The SUV is priced at Rs 22.3 lakh (ex-showroom Chennai) for the BS IV variant and Rs 22 lakh for the BS III variant. Deliveries will start from January. Isuzu has appointed eight dealers in the south, including Chennai, Coimbatore and Madurai. The company aims to appoint 60 dealers in the next two years.


Takashi Kikuchi, MD, Isuzu Motors India, said: "Isuzu has sold the right to produce the 1.8 litre diesel engine to Hindustan Motors and so they can continue to make that engine. The HM Ambassador currently uses that engine and AVTEC also manufactures it for General Motors India for its Tavera model. In that sense, AVTEC is making engines for GM India and there is no direct relationship with Isuzu so that arrangement will not be impacted by our decision to come to India," he said.

The Isuzu 1.8 litre engine was once used by a number of other models in India including the Mahindra Bolero. AVTEC produces the engine both for in-house (HM) requirements as well as outside OEMs like GM India. Mahindra Bolero no longer uses the Isuzu engine. Isuzu's current arrangement with HM signed in June 2013 includes a contract manufacturing relationship with HM under which the Japanese company will use the Indian auto maker's Thiruvallur plant near Chennai to make the MU-7 SUV and D-Max pick-up slated for debut in India. The MU-7 was earlier sold as a completely built unit (CBU). The HM plant will churn out 5,000 units a year.

Although Isuzu is setting up its own plant in Sri City, Andhra Pradesh, at an investment of Rs 3,000 crore, it has "no time limit" for its contract manufacturing arrangement with HM. "Our plant should be up and running by 2015-16, but we can continue to have the current products manufactured in the HM plant depending on their product plans, etc. We can do it and we would like to continue relationship with them," said Kikuchi. Officials said the new plant will be capable of producing 1.20 lakh units a year. Isuzu also plans on localizing nearly 70% of components for the MU-7 and the D-Max pick up truck in the coming years.

"Isuzu will continue to focus on "SUVs and light commercial vehicles like pick-ups because in the current market situation, these segments are expanding," said Kikuchi. It may also use India as a production hub because this market "has huge potential with so many big suppliers and so many vehicle makers manufacturing here but it has not been finalised yet," he added.

 

[IndoCarib]

Isuzu Motors to invest Rs 3,000 cr in India plant - Money - DNA

 

[cirr]

India has highest inflation rate in Asia

Dec 13, 2013, 06.38AM IST
NEW DELHI: The Indian economy, Asia's third-largest, faces a difficult situation where growth has slowed to a decade low but price pressures have remained stubborn. It has one of the highest inflation rates in the world, and the highest in Asia. Weak growth and high inflation also complicated the policy choice for the central bank.

Separate data released by the Central Statistics Office showed industrial output slumped 1.8% in October compared with an annual growth of 8.4% in the same month last year. It was also lower than the 2% expansion posted in September, which had sparked hopes of a tentative recovery in the industrial sector.

In rural areas retail inflation was at 11.7%, while in urban areas it stood at 10.5%, highlighting the extent of pain for households, especially those with low incomes.

The increase in retail inflation also heaps more misery on the ruling Congress party, which was routed in state elections. Rising prices, particularly of food, was identified as one of the factors, which had angered voters to give mandate against the party.

Reserve Bank of India (RBI) Governor Raghuram Rajan said inflation was higher than the central bank's comfort zone, while growth was weaker than estimated and vowed to calibrate policy carefully. "There are some trade-offs that we have to make," he said.

RBI will review monetary policy next week and the latest round of data, particularly retail inflation numbers, may prompt the central bank to raise interest rates to tame inflationary pressures.

Inflation has emerged as a policy headache and has played havoc with household budgets. The centre says it is taking steps to moderate inflation but has blamed the state governments for failing to reform archaic farm market laws and act against hoarders.

Industrial output data showed the manufacturing sector contracted 2% in October compared with a 9.9% growth in October 2012, while mining fell 3.5% compared with a decline of 0.2% in the year-ago period. Electricity was the only sector which notched up growth, rising 1.3% in October compared with an expansion of 5.5% in the year-earlier period.

The consumer goods sector fell 5.1% compared to a growth of 13.8%, underscoring the fragile consumer sentiments. Consumer durables registered a bigger decline, contracting 12% in October compared with a 16.7% expansion in October 2012.

 

[luckych]

Global 500 cos set to create over 2 lakh R&D jobs in India by 2018: Study

In keeping with the historic trend that companies with a higher R&D spend find India more attractive for investments, there is a clear opportunity to create additional 2,00,000 R&D jobs in India by Global 500 companies in the next five years, according to Zinnov.

About 45 per cent of the world’s top 500 R&D spenders invest in India and the Deccan Triangle (Bangalore, Hyderabad, and Pune) has over 200 established R&D centres and is the innovation engine of India.

Advisory and management consulting firm Zinnov in its report titled ‘Crossing the Value Chasm’, highlights some of the key trends on the top spenders and their operations in India and other global locations.

The report reveals interesting differences in the trend based on industry verticals and geographical preferences for R&D investments.

Top 500 R&D spenders

According to the report, the top 500 R&D spenders contribute over $577 billion with the top 100 R&D spenders alone contributing over 66 per cent to the global R&D spend.

About 40 per cent of the overall R&D spend is from organisations headquartered in North America, followed by 34 per cent from Europe, 18 per cent from Japan, and 7 per cent from Asia-Pacific.

Pari Natarajan, CEO, Zinnov, in a statement said: “To move to the next level, R&D centres in India must work on charters that impact the top-line objectives of the company — the ones that create architectural and business impact, for which higher maturity of product teams is a must.”

Top destination for R&D investments

Today, China is the leading destination for R&D investments with 385 Global 500 companies having a presence there compared with 220 in the Bay Area and 228 companies in India.

Globally, the automotive vertical has the highest R&D spend and India is one of the key destinations for these companies with cities such as Pune and Chennai fast emerging as auto hubs.

Worldwide, the software vertical saw the largest increase in spend of 15 per cent, followed by the semiconductor and energy vertical at 10 and 9 per cent, respectively.

R&D headcount

Today, close to 50 per cent of the Global 500 companies have over 10 per cent of the global R&D headcount in India. While software/Internet companies tend to achieve the milestone of locating 10-20 per cent of their R&D headcount in India faster than others, fee companies seem to have reached a ceiling at a minimal 1-4 percent of the global headcount.

A factor is that many of the India centres lack strong leadership and global stakeholder buy-in. Currently, only 11 per cent of the companies with centres in India have global roles in engineering, product management and support functions.

Global 500 cos set to create over 2 lakh R&D jobs in India by 2018: Study | Business Line