Indian Economy-News & Updates

[Tefal]

India is biggest and currrupt country in the world. Its bureaucracy is worst. iam fully agree with u. i have doubt with its worst bureaucracy will india achive the target of being super power?

 

[NSG_BlackCats]

Indian stocks best performers in 2009 ​

New Delhi, June 28: Indian stocks have emerged as the best performers among those in the emerging and the developed markets across the globe so far this year, giving investors the highest return of nearly 60 per cent.
According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have outperformed their global peers, including in the US, the UK and China in 2009 so far.
Indian stocks have provided a return of 59.30 per cent year-to-date, against 34.37 per cent gains provided by MSCI Barra's emerging market index, covering all developing nations.
Indian stocks have even outperformed all the developed world markets covered by MSCI Barra, as the markets in the US and the UK gave returns of just 2.33 per cent and 10.17 per cent, respectively, so far this year.
Among the emerging BRIC (Brazil, Russia, India and China) nations, the Brazilian market was the closest competitor with gains of 56.89 per cent till June 26 this year. The Chinese and the Russian markets have given returns of 36.77 per cent and 41.61 per cent, respectively, in the year so far.
The 30-share benchmark index of Indian stocks, Sensex, gained over 5,000 points in the year so far to settle at 14,764.64 points on June 26 compared to 9,600 levels on December 31, 2008.
Other emerging markets which gave over 50 per cent returns so far this year include Indonesia (55.85 per cent) and Chile (51 per cent).
Analysts opined that the Indian markets have been rising on the positive global cues and got a positive spur from the decisive mandate in favour of Congress-led UPA in the General Elections.

"The Indian stocks have been on a recovery path primarily in the past three months due to election results and on expectation of new government spurring the economic reforms in the country in the days to come," an analyst from a leading brokerage said.
Meanwhile, other developed markets including Canada gave 25 per cent returns, Sweden (21.42 per cent), Norway (24.70 per cent) and Japan (2.45 per cent), according to the data.
Further, Indian stocks have also performed significantly better in the past three months period up to June 26 and have given foreign investors returns of 62 per cent.

The Brazilian markets gave returns of 40 per cent, Russia 34.37 per cent and China 34.98 per cent in the three months.

LINK

 

[PeacefulIndian]

http://www.ft.com/cms/s/0/ed601036-5f54-11de-93d1-00144feabdc0,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.html

India eyes huge rise in road building

By Joe Leahy in Mumbai
Published: June 22 2009 19:02 | Last updated: June 22 2009 19:02
India’s Congress party-led coalition government is planning to invite foreign investors to participate in an ambitious move to increase road construction 10-fold as the country seeks to boost much-needed infrastructure development.

Kamal Nath, India’s new road transport and highways minister, said he planned to set up a government “roads finance corporation” that would securitise its income and potentially list on the stock market to raise funds for his ambitious plan.

“The roads are in a mess,” Mr Nath told the Financial Times in an interview.

“At the moment, we’ve been struggling with [building] 2km a day – I’ve set a target for 20km a day ... we are going to work towards that.”

Bureaucracy and land disputes have so far curbed India’s efforts to improve its crumbling road network, even as its neighbour across the Himalayas, China, has built super-highways criss-crossing the country.

However, the return last month of the Congress party-led ruling coalition with an overwhelming majority has created the opportunity for an infrastructure programme of historic proportions, similar to the pre-war highway construction boom of the US.

PwC, in a report titled “Infrastructure in India – a vast land of construction opportunity”, says India is targeting investment in roads of $92bn in the five years to 2012.

The central government is inviting bids for more than 200 national highway projects, the equivalent of 13,000km of road.

About one quarter of these projects, with an aggregate length of 3,000km, were already at the pre-qualification stage for tenders. In addition, state governments are planning to tender 4,500km of roads by 2010.

Analysts said that, while the programme was laudable, the key was implementation.

India’s road-building programme in recent times has been disrupted by factors such as frequent changes of leadership at the National Highways Authority.

“They need to be ambitious and, more importantly, they need to focus on execution,” said Arvind Mahajan, infrastructure and government national industry director at KPMG.

Mr Nath said the new roads finance company would be able to draw on the government’s Rs100bn ($2bn) in annual earnings from a tax on fuel sales as well as budgetary allocations of about Rs40bn and other income of about Rs60bn.

He said the government would raise international financing for the corporation as well as investment from pension funds and others interested in the long-term returns offered by infrastructure.

“I will do a roadshow in the next two months, all over the world, to attract funds for this,” he said.

 

[notorious_eagle]

Corruption is endemic in South Asia. From a critical standpoint, I think the reason the perception about corruption is better in India is because of the overall mood of the country which perceives things to be getting better and that also includes perceptions about corruption.

I have to tell you that Pakistanis are probably the most negative of all South Asians when it comes to the running of their country. I have a relative of whom I always ask the same question, so how are things in your neck of the woods (even though I am in and out all the time) and his answer is perpetually negative despite the massive development and him being very well off (after retiring from PIA).

So perceptions are one thing which can simply be based off stories that one has heard about supposed corruption and off you go labeling the country as very corrupt (not saying we do not have this problem, however its certainly no better or no worse than India, BD etc. in my opinion).

Very well said Sir, Pakistanis have to be the most negative people in the world. I know soo many people who act like this, even though they are prospering but they cant stop being negative. Just last week i met an old relative for dinner; he simply couldnt shut up about how bad business is in Lahore but did say proudly that he bought a new Signus.

 

[dBub]

Jun 18, 2009

BEIJING (AFP) — China angrily denounced Thursday the approval by the Asian Development Bank of a 2.9-billion-dollar funding plan for India, saying the scheme encroached on a territorial dispute between the Asian giants.

"The Asian Development Bank, regardless of the major concerns of China, approved the India Country Partnership strategy which involves the territorial dispute between China and India," foreign ministry spokesman Qin Gang said, referring to a largely uninhabitable Himalayan region.

"China expresses its strong dissatisfaction over this... The bank's move not only seriously tarnishes its own name, but also undermines the interests of its members."

A bank spokeswoman confirmed to AFP that the plan had won "broad support" from the board of directors during a Monday meeting, but insisted it was not taking sides in the territorial dispute, only seeking to push forward its poverty alleviation efforts.

"ADB takes no position on territorial disputes between its members," ADB spokeswoman Ann Quon told AFP in an email.

"ADB will issue suitable guidelines for its staff on dealing with proposed activities in disputed areas... Individual projects and programmes will require separate approval by the board of directors."

According to India's Economic Times, the 2.9-billion-dollar package for India covers the whole country for the period from 2009 to 2012.

However, it says, China is particularly concerned about a 60-million-dollar watershed protection project in the Arunachal Pradesh region, where much of China and India's territorial dispute is centred.

India says China occupies 38,000 square kilometres (14,700 square miles) of its Himalayan territory, while Beijing claims the whole of the northeastern Indian state of Arunachal Pradesh, which is 90,000 square kilometres.

The two countries fought a brief but bloody border war in 1962, and are yet to resolve the border dispute.

"The Asian Development Bank as a regional development institution should not interfere in the political affairs of the members," China's spokesman Qin said.

"The Chinese government strongly urges the Asian Development Bank to take effective measures to eliminate the negative impact of this move."

The ADB's Quon said: "ADB's charter mandates that ADB shall not interfere in the political affairs of any member and that only economic considerations shall be relevant to its decision."




Havent found commentary on this development on the forum and thought I would table the issue for discussion.

Even tho the Chinese media and authorities have been agressively denouncing the move, it seems odd that China didn't block it all together given their clout within the institution.

 

[AkhandBharat]

The bandra worli sealink project was inaugurated today.

From wikipedia:

The Bandra Worli Sea Link is an 8-lane, cable-stayed bridge with pre-stressed concrete viaduct approaches, which will link Bandra and the western suburbs of Mumbai with Worli and central Mumbai, and is the first phase of the proposed West Island Freeway system. The Rs. 1600 crore project of Maharashtra State Road Development Corporation (MSRDC) is being executed by Hindustan Construction Company. Designs and Project management is by M/s DAR Consultants. Although expected to have been completed by December 2008, after a long delay of 5 years, construction is still underway. The bridge is now slated to be inaugurated on June 30. The Sea Link will enable speedy travel between Bandra and Worli, cutting travel times from 60–75 minutes to 7 minutes.

Here's a small video on the spectacular inauguration show.

For more information:
Bandra-Worli Sea Link - Wikipedia, the free encyclopedia

http://economictimes.indiatimes.com/Features/Bandra-Worli-Sea-Link-raises-hopes-for-new-infrastructure/articleshow/4714826.cms

Spectacular Laser Show on Eve of Bandra-Worli Sea Link Inauguration - myPOPKORN

 

[Jako]

Greaaaaaaaaaat........a marvel for sure......the laser and fireworks show was great ton

 

[AkhandBharat]

Yeah, very satisfying indeed.

When the entire West Island Freeway project is completed, it will be a great marked improvement over the existing and much needed infrastructure alongwith the metro transportation system that is being developed by Reliance Infrastructure. This will also shut up idiots like Gpit who think the Indian govt (UPA) only talks about development but does nothing for infra development to turn Mumbai into a world class city.

 

[Spitfighter]

Good stuff, we need more such projects not only to improve our dilapidated infrastructure but also to provide employment.

This is only the beginning, they are working on so many things, improving the national highway, building an economic corridor, adding new terminals to nearly all the airports, building/upgrading ports, i just hope the progress continues and if it does 10 years from today India will look nothing like it does today.

 

[scshqgcm]

i think CCP want to treat corruption more seriously this year
and we will see the result of the action.
if President Hu can not control it ,he will be a loser,but now i trust him.
and i think Boss hu had made the decision,the problem how to do it.
for me ,i think use the Internet is a good way,we had put some of the officials in jail this year.
but i think the chinese Justicial bureau should be controled by the centeral goverment,and let them not be affect by the local goverment.
the corruption will be more dangerous for those stupid officials.

 

[wtf]

I was once talking to a lawyer (Canadian-American, worked in a bunch of developing world as adviser etc.). My theory was that a quick legal system might be the solution to corruption.

She walked me through the history of England. In the 1800's the country was very corrupt. She told me that my description of Indian system is similar to the English system to a T. And then suddenly in the early 1900s the country cleaned up. She said that it is an enigma in legal communities how that happened. It was not clear if the fast development on industrial sector cleaned up the legal system or whether a better legal system and reducing corruption allowed industries to develop.

Her point was that a fast developing economy and improving technology might automatically clean up the system (her example was of a clogged pipe - you flush it with fast flowing water, it automatically cleans up. Some might say that cleaning up the pipe allowed water to flow faster.) . Maybe poverty and lack of resources go together and if you fix one, the other gets fixed automatically.

One example she showed was TN Seshan cleaning up the election process. That might have been seen as a small change. But it had the effect of a massive "anti-incumbency" wave against corrupt governments. Very few parties manage consecutive 5 year terms anymore in state elections. That in turn trickles down into a slightly better bureaucracy. Another one is the appointment of prominent people into political positions (Manmohan Singh, Nandan Nilekani etc.).

I am sure these things take time, but I am hopeful that things are changing for the better not worse.

 

[wtf]

Very well said Sir, Pakistanis have to be the most negative people in the world. I know soo many people who act like this, even though they are prospering but they cant stop being negative. Just last week i met an old relative for dinner; he simply couldnt shut up about how bad business is in Lahore but did say proudly that he bought a new Signus.

There is a solution to this, at least in face to face conversations-- just bring up India or Bangladesh into the discussion. Or if you are from US (or live in US), start talking about differences between developing and developed world (act as if Pakistan is worse off in comparison to US, but could develop).

Last year I had dinner with a group of Pakistani businessmen and professors from a business school in Lahore (with a sprinkling of Americans, Indians, BDeshis and Sri Lankans). They were very negative when they were talking about Zardari or political change. Now, it is not common in US business circles to be very negative over dinner conversation (unless you are having a late night drink - then it is OK for men to cry , so I had to change the tone.

I bought up Indian,Sri Lankan and Pakistani stock markets and started comparing them. In a few minutes the people of different groups were boasting about how well their country was doing in comparison to the other. I kept my mouth shut after that and the dinner conversation was saved. Hilarious!!

 

[scshqgcm]

Yes that was wat needed (affirmative action) to bring about parity among backward indegenous people and chinese and Indians, so the civil war ended and brough prosperity for all the citizens. Now they are again reviewing those laws and reforming where it needed. That is how it should be.

PS: Nobody kicked any Chinese or Indians out of Malaysia and till this day Chinese are the most affluent people of Malaysia.

come on,man ,in a moden country,who have they right to kick any of it's citizens out of their own country.Hitler had done that.
and about Malaysia chinese,i dont think they r treated equally,the Malasia indians too.
you can not imagine that ,a black French want to set up a company and he have to have a white French partener,and the law is protecting to so-called local people ,no matter how long your ancester become a local even more than 150 years ago,just because you r indians or chinese.in Malaysia they do it now.this is racist.
Malaysia chinese work hard ,and the get a better life,but this is a reason to prove that there is no discrimination?
what a funny logic!
everyone should be equal in a country under it's law

 

[Omar1984]

South Asian countries should really respect each other's sovereignity.

Sri Lanka is not a disputed territory and its not part of India. Sri Lanks is its own independent country, and I wish Sri Lanka all the success.

 

[scshqgcm]

Sri Lanka May Become ?Hong Kong of India? After War (Update2) - Bloomberg.com

Sri Lanka’s economy can bounce back from its weakest growth in six years and become the “Hong Kong of India” as the end of almost three decades of civil war boosts business opportunities, HSBC Private Bank said.

Decades of fighting on the Indian Ocean island shackled its $32 billion economy, which according to figures released yesterday expanded 1.5 percent last quarter from a year earlier as the global recession intensified the slowdown. Ports, retailers, apparel and tea exporters could lead a recovery after the Tamil Tiger rebels were defeated last month.

“The rebound will be spectacular,” said Arjuna Mahendran, the Singapore-based chief investment strategist for Asia at HSBC Private Bank, which oversees $494 billion in assets. “To start with, Sri Lanka’s location gives its port a natural advantage.”

Sri Lanka could benefit from its proximity to India, just as Hong Kong profits from being a trade hub to China. Sri Lanka lies 31 kilometers (19 miles) south east of India, the world’s second-fastest-growing major economy.

Seventy percent of the volume handled by the Colombo port is trans-shipment of goods imported by India and this could be increased because Indian ports don’t have adequate depth, Mahendran said. Sri Lanka has embarked upon a plan to quadruple capacity at the Colombo port in three years.

The Liberation Tigers of Tamil Eelam were defeated on May 16, ending their 26-year struggle for a separate homeland in Sri Lanka. The Tigers, who controlled a third of the country at one point, fell swiftly since January as the Sri Lankan military launched an unprecedented offensive to wipe them out.

‘Lot of Potential’

“It’s something you never expected to happen when you have lived most of your life under the specter of war,” said Otara Gunewardene, who runs Odel, Sri Lanka’s biggest department store. “It’s unbelievable. I see things differently now and see a lot of potential for growth.”

Odel plans to sell a stake in the company to overseas investors and spend $20 million to add another 70,000 square feet to its flagship store in Colombo and open new outlets in other cities in the country.

“We fought terrorism and now the economic war has to be fought,” said Malik Fernando, whose family owns Dilmah Tea Co., among the best-known Ceylon tea brands in the world. “For manufacturers, the cost of doing business is very high because infrastructure, like roads and power, was neglected because of the war.”

Small Economy

Dilmah, for example, operates a bus service in Colombo to pick up their workers from home because “we know that if they use the public transport, they are going to be late, fagged out and stressed,” Fernando said.

Still, Sri Lanka can be turned around quickly as it is a small economy and Dilmah is exploring options to expand in the hotels and tourism business, Fernando added. John Keells Holdings Ltd., the island’s biggest diversified company, said it sees opportunities to grow in all its businesses from property development to banking and insurance.

Tea exporters could also benefit from a 30 percent surge in prices this year while the worldwide recession hasn’t sapped demand for the high-end lingerie and apparels the nation sells overseas, HSBC’s Mahendran said.

Sri Lanka, which receives about 500,000 tourists each year, aims to increase that number by at least 20 percent annually through a global campaign entitled “Small Miracle,” said Dileep Mudadeniya, managing director of the Sri Lanka Tourism Promotion Bureau.

More Tourists

The war discouraged travelers from the U.S. and Europe for years from visiting the teardrop-shaped tropical island.

Occupancy rates have been 40 percent in the past two years in Colombo’s five-star hotels, which have a combined capacity of 2,000 rooms, said Jerome Auvity, general manager at Hilton Colombo. As a result, the average room tariff is about $62 a night, he said.

“There is no immediate reaction suggesting business is rising,” Auvity said. “Give it another six months to see whether confidence returns to Sri Lanka’s leisure market. There is still this dark cloud, this debate and issue regarding the displaced people.”

The final battles have left about 300,000 people displaced and living in more than 40 camps across the northern part of the country. President Mahinda Rajapaksa said last month he intends to resettle them in the region within 180 days.

Still, the Board of Investment of Sri Lanka expects foreign direct investments to quadruple to $4 billion by 2012, led by investments in ports, tourism, telecommunication and textiles.

Foreign Investment

“We have been getting encouraging responses from foreign investors,” said Dhammika Perera, chairman of the Board. “We expect three leading hotel chains to sign an investment agreement with us in about three months.”

Sri Lanka’s economic growth can accelerate almost four times the current pace to 6 percent by 2010, says Prakriti Sofat, an economist at HSBC Holdings Plc. in Singapore. Citigroup Inc. economist Anushka Shah expects growth at 5.7 percent next year.

The nation’s benchmark stock index, the Colombo All-Share Index, surged 3.1 percent to 2416.02 at close of trade today, the most since the week the war ended, as local investors snapped up shares.

The Securities and Exchange Commission is now keen for the likes of George Soros, Mark Mobius and other top fund managers to invest in the country and help the Colombo Stock Exchange double its capitalization to $14 billion in a year.

“It will take a while for people to realize that a 30-year war has ended and the dividends it can bring,” said Channa de Silva, director general of the Commission. “Sri Lanka is a country waiting to unfold and we are confident there will be a lot of interest internationally.”

Sri Lanka May Become ?Hong Kong of India? After War (Update2) - Bloomberg.com

1 United States 14,330,000　 　
2 Japan 4,844,000
3 China (PRC) 4,222,000 ]
4 Germany 3,818,000
5 France 2,978,000
6 United Kingdom 2,787,000
7 Italy 2,399,000
8 Russia 1,757,000
9 Spain 1,683,000
10 Brazil 1,665,000
11 Canada 1,564,000
12 India 1,237,000
13 Mexico 1,143,000

38 Colombia 249,800
— Hong Kong 223,800

78 Sri Lanka 42,160

no offence,my Sri lanka friends.
i just want to ask Indian friends,how ,when?
Hongkong 's GDP is 20%+ of India,and HK had been the world financial center next to London and NY,and it had developed more than 150 years,and the Guang dong province next to HK has 35% of Indian GDP,and you know that Macau and Taiwan is near HK too.
so tell me ,will you let Mumbai to be replaced by Sri lanka.and when Sri Lanka has trouble ,will you stay with her?
we will do everything to protect HK,why?HK is part of China,and we r brothers.
and i am sure that Sri Lanka will have a better future,and they will work hard to develop their country,but i dont think India will try her best to make Sri Lanka to be HK.and i dont think india have or will have the power to do so.i dont think the US will put her financial center in Canada.
now ,Shanghai is the most developed city of China mainland,and it's goal is to catch up with HK,and even Beijing dont think about it.

if you have one HK ,you r great power in your region
if you have more HKs,even little HKs,you r superpower for sure

walk before you talk