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Bajaj-Renault to launch ultra low cost car in 2012
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It seems that Indian roads are going to flood with small cars...

The design, manufacturing and sourcing for the car would be done by Bajaj, and Renault-Nissan will look after marketing in India and overseas, Ghosn told reporters at a media conference in New Delhi. At the ongoing World Economic Forum summit, Mr Ghosn admitted that there were problems with his partnerships in India but added that he was gung ho about the $2500 car which will compete with the Rs 1 lakh Tata Nano when it rolls out in 2011.
Bajaj-Renault to launch ultra low cost car in 2012- Automobiles-Auto-News By Industry-News-The Economic Times
 
:: biz.bdnews24.com ::

Renault-Nissan to launch Indian low-cost car in 2012
Tue, Nov 10th, 2009 5:06 pm BdST

NEW DELHI, Nov 10, (bdnews24.com/Reuters) - Renault, Nissan Motor Co and their Indian partner will launch an ultra low-cost car in India in 2012 that will cost less than Tata Motor's Nano, the world's cheapest car.

Carlos Ghosn, chief executive of both the French and Japanese car makers, said on Tuesday an agreement has been signed with India's Bajaj Auto, building on a May 2008 plan for an ultra-low-cost car code-named ULC.

The design, manufacturing and sourcing for the car would be done by Bajaj, with Renault and Nissan handling marketing in India and overseas, Ghosn told reporters in New Delhi.

"I can tell you the cost of this car would be lower than any car today made in India," he said, adding there would be a difference between the cost and price.

India would be the first and main market for the car, Ghosn said, with exports a possibility. He said it would be a competitive and novel product compared to what was currently available.

The closest competitor for now would appear to be the Nano, the world's cheapest car which sold for around $2,000 when it hit the road earlier this year, but other global majors are also looking to launch small cars for the Indian market.

General Motors plans to launch a small car for India at the end of 2010, and Toyota Motor Corp is designing a small car for India that it expects to be ready by late 2011.

Ford Motor Co plans to begin production of a small car in India early next year, although it has said it would not compete directly with the Nano.

India was selected for the project because it was one of the most important markets for growth for autos, Ghosn said, and was also a good source of parts and products to be exported.

"Growth is going to continue and is going to be very important for the years to come," he said.

India sold 1.5 million passenger vehicles in 2008/09 and is expected to sell 2 million vehicles this year, according to industry estimates.

Renault-Nissan is building a passenger car plant in Chennai with a capacity to make 400,000 units a year.

INDIAN VENTURES

Ghosn said the ultra-low-cost car project had taken time to be worked out.

"We have now a clear definition of the product not only in terms of cost.. in terms of geometry, but even in terms of fuel efficiency."

Under the terms agreed in 2008, Bajaj would own 50 percent in the project and Renault and Nissan would have 25 percent each. There was no update on this on Tuesday, and contractual details are yet to be decided and the car could be produced outside a formal joint venture between the three firms.

Ghosn said Nissan's venture with Indian truck maker Ashok Leyland to make light trucks in Chennai was on track.

"Everything is OK there, and hopefully we will see concrete new products coming out of this collaboration," he said.

He also said there were no major problems with Renault's joint venture with India's Mahindra & Mahindra to make the Logan sedan, although sales had not met expectations.

The Logan is more than 4 metres long, which sees it hit with a 20 percent factory gate duty that makes it more expensive than competitors in its segment.

Production in 2008/09 was less than a third of capacity and and the joint venture lost 4.9 billion rupees ($105 million).
 
Foreign Aid and India: Financing the Leviathan State

With a debate now raging over whether further foreign aid programs financed by U.S. taxpayers are justified in the post-Cold War era, a review of the development experience of the recipient of the largest amount of foreign aid is instructive. India has received more foreign aid than any other developing nation since the end of World War II–estimated at almost $55 billion since the beginning of its First Five-Year Plan in 1951.(1) It has long been an article of faith among development economists and policymakers that foreign aid is a necessary and central component of economic development, yet the record of Indian economic development since 1947 belies that view.

India has had one of the lowest rates of growth of all developing countries and remains one of the poorest countries in the world after almost 45 years of aid-financed, centrally planned development. Foreign aid has directly financed and sustained India’s centralized planning and control framework and thereby financed the growth of one of the noncommunist world’s largest and most inefficient public sectors. In 1988-89, 101 of the country’s 222 largest public-sector companies recorded losses and contributed to a federal deficit five times as large, in relative terms, as the U.S. budget deficit.(2)

Today, after nearly 45 years of planned economic development, India’s annual per capita income remains around $300. Almost 40 percent of Indians live below the official poverty line, and the absolute number of Indians in that category increased sharply between the late 1950s and the mid-1980s. In short, India is a paradigmatic case of the failure of government-sponsored aid; it stands as a dramatic testimonial to why such aid should go the way of the socialist development model it has bankrolled for decades.

Foreign Aid and India: Financing the Leviathan State

DAWN.COM | Business | WB okays $4.3bn loans to India

This piece about leviathan state is very old from pre-reform period. India's economy has been one of the fastest growing in the world this decade.

However, India remains one of the largest recipients of foreign aid and loans from the rich nations and IFCs.

In spite of all of the recent news about aid to Pakistan dominating the media, the fact remains that resurgent India has received more foreign aid than any other developing nation since the end of World War II--estimated at almost $100 billion since the beginning of its First Five-Year Plan in 1951. And it continues to receive more foreign aid in spite of impressive economic growth for almost a decade. At the recent G20 meeting, India has asked the World Bank to raise the amount of money India can borrow from the bank for its infrastructure projects, according to Times of India. At present, India can borrow up to $15.5 billion as per the SBL (single borrower limit) fixed by the Bank.

Britain will spend over $1.5 billion during the next three years in aid to Shining India, a nuclear-armed power that sent a spacecraft to the moon recently, to lift "hundreds of millions of people" out of poverty, the British secretary of state for international development said last November, according to the Guardian newspaper.

Douglas Alexander, the first cabinet minister to visit India's poorest state Bihar, said that despite "real strides in economic growth" there were still 828 million people living on less than $2 a day in India.

UK's Department of International Development says if the UN's millennium development goals - alleviating extreme poverty, reducing child mortality rates and fighting epidemics such as Aids - are left unmet in India, they will not be met worldwide. Some 43% of children go hungry and a woman dies in childbirth every five minutes.

British Minister Alexander contrasted the rapid growth in China with India's economic success - highlighting government figures that showed the number of poor people had dropped in the one-party communist state by 70% since 1990 but had risen in the world's biggest democracy by 5%.


Haq's Musings: Foreign Aid Continues to Pour in Resurgent India

Haq's Musings: Grinding Poverty in Resurgent India

Haq's Musings: South Asia's War on Hunger Takes a Back Seat
 
Sept industrial output up 9.1 pct y/y - govt | Business News | Reuters

Sept industrial output up 9.1 pct y/y - govt
Thu Nov 12, 2009 12:16pm IST
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1 of 1Full SizeNEW DELHI (Reuters) - India's industrial output rose at a faster-than-expected 9.1 percent in September from a year earlier, data showed on Thursday.
The median forecast in a Reuters poll was for an annual rise of 7.3 percent.

Manufacturing production rose 9.3 percent in September from a year earlier.

August's annual industrial growth rate was revised up to 11 percent from 10.4 percent previously.

Industrial output rose 2.6 percent in the 2008/09 fiscal year (April-March), down from 8.5 percent in 2007/08.

:cheers::yahoo:
 
Rural India gets a chance at Job Boom

BAGEPALLI, India — Under harsh fluorescent lights, dozens of heads bend over keyboards, the clattering unison of earnest typing filling the room. Monitors flicker with insurance forms, time sheets and customer service e-mail messages, tasks from far away, sent to this corner of India to be processed on the cheap.

This scene unfolds in cities across India, especially in the high-tech hubs of Bangalore and Gurgaon, places synonymous with the information technology revolution that has transformed India’s economy and pushed the country toward double-digit economic growth.

But these workers are young people from villages clustered around this small town deep in rural Karnataka State in India’s southwest. They are part of an experiment by a handful of entrepreneurs to bring the jobs outsourcing has created to distant corners of India that have been largely cut off from its extraordinary economic rise.

Only about a million workers are employed in the buzzing call centers and pristine tech company campuses that have come to symbolize India’s boom — a drop in the bucket, given the country’s more than 1 billion people.

Almost all of those jobs are in cities. But 70 percent of Indians live in rural areas. India largely skipped — or never arrived at — the industrial phase of development that might have pulled the rural masses to cities. Over the decades a Gandhian fondness for — some say idealization of — rural life has also kept people in villages, where the bonds of caste and custom remain strong.

India has struggled unsuccessfully with the question of how to lift this vast underclass out of poverty. Some economists argue that India still needs rapid urbanization if it is ever to become a major economic power and provide jobs to its vast legions of unemployed. But the founders of Rural Shores, a company that is setting up outsourcing offices in rural areas, say it makes more sense to take the jobs where the people are.

“We thought, ‘Why not take the jobs to the village?’ ” said G. Srinivasan, the company’s director. “There is a lot of talent there, and we can train them to do the job.”

Rural India was once seen as a dead weight on the Indian economy, a bastion of backwardness embodied by the frequent suicides of farmers eking out livings from arid fields, dependent upon fickle monsoons. But Indian and foreign companies have come to see India’s backwaters differently, as an untapped market for relatively inexpensive goods like low-tech cellphones, kitchen gadgets and cheap motorcycles.

Now some businesses have begun looking to rural India for an untapped pool of eager and motivated office workers. Rural Shores has hired about 100 young people, most of them high school graduates who have completed some college, all of them from rural areas around this small town. The company has three centers now, but it aims to open 500 centers across India in the next five years.

Most of the center’s employees are the first members of their families to have office jobs. They speak halting English at best, but have enough skill with the language to do basic data entry, read forms and even write simple e-mail messages.

With much lower rent and wages than in similar centers in cities, the company says it can do the same jobs as many outsourcing companies for half the price. A Bangalore office worker with skills similar to those of workers here commands about 7,000 rupees a month, or $150, Mr. Srinivasan said. In small towns and villages, a minimum-wage salary of about $60 a month is considered excellent.

Here in Bagepalli, the Rural Shores office hums through two shifts a day. One set of workers answers customer service e-mail messages for an Indian loyalty card company. Another processes claims for an insurance company. In one room, workers capture data from scanned timecards filled out by truck drivers in the United States. They record nights spent in Abilene, Tex., deliveries in Kansas City and breakdowns in Salt Lake City, all of which the workers decipher and enter into a database.

Amid the clatter of slender fingers hammering at keyboards, R. Saicharan, 24, a business school graduate from Chennai, explained the frenzy of typing. “Every morning we get a download of images of time sheets,” he said. “By 7 p.m. we need to process 13,000 of them.”

The time sheets belong to American truck drivers, and Rural Shores has been hired as a subcontractor for a larger outsourcing company in Bangalore to do the data entry portion of the work. Deciphering scrawls on the scanned documents, the 20 workers on Mr. Saicharan’s team race to earn bonuses for being the fastest typist.

The current champion is S. Karthik, 20, a high school graduate who worked briefly in Bangalore but found city life too hectic and expensive. “Here I can live with my family,” Mr. Karthik said.

Like many here, he is working on a college degree by correspondence course. Most of his friends had either moved to Bangalore or were unemployed. “There are no jobs in Bagepalli for a young man,” he said.

Most of the workers are the children of farmers and often the first generation to finish high school. For many, a job at an outsourcing center is an unimaginable opportunity.

K. Aruna, 19, lives with her widowed mother and younger sister in a two-room house on a narrow, muddy lane in a small village on the outskirts of Bagepalli. Until Ms. Aruna got a job at the Rural Shores center, the family subsisted on what their two-acre farm and two cows could produce. Sometimes they struggled to earn $20 a month among the three of them. They could scarcely afford vegetables and fruit to supplement dull meals of lentils and flatbread.

With her new job Ms. Aruna now makes more than $70 a month. The family has bought some furniture — a wardrobe — and new saris and jewelry. When she came home with her office identification badge hung around her neck, the whole village gawked.

“I am the only person in this village to have an office job,” Ms. Aruna said, fingering the teardrop-shaped gold earrings she had bought herself. “I never thought it would be possible.”
 
RBI earns 14900 carore in 24 Hours


gold price when RBI bought 200 ton gold was US$ 1045 per ounce
gold price after 24 hours US$ 1090 per ounce. 45 US$ net profit.
1 ounce gold = 28.35 gram gold
1 ounce gold price = US$ 1,090
1 gram gold price = US$ 38.45
1 US Dollar = INR 47.00
Local price of 1 gram gold = INR 1807.00
10 gram gold = INR 18,070.00
India's profit per 1 gram = INR 745.00
100 gram profit = INR 74,500.00
1 kg profit = INR 7.45 Lacks
1 Ton profit = INR 74.50 carore
100 Ton profit = INR 7450 carore
200 Ton profit = INR 14,900 carore
:yahoo:

Dont feel as if I'm pointing out a mistake, but couldn't digest how could investing 7.6 Billion $ could instantly make you a profit of 14,900 crore(aka 3.1 Billion $)

Correction:: India's profit per 1 gram != INR 745.00

it is 74.5 INR so profit would be 0.31 billion $(INR 1490 crores)

310 million US $ is still a huge money and that was clever on part of India.
:welcome:
 
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RBI earns 14900 carore in 24 Hours


gold price when RBI bought 200 ton gold was US$ 1045 per ounce
gold price after 24 hours US$ 1090 per ounce. 45 US$ net profit.
1 ounce gold = 28.35 gram gold
1 ounce gold price = US$ 1,090
1 gram gold price = US$ 38.45
1 US Dollar = INR 47.00
Local price of 1 gram gold = INR 1807.00


10 gram gold = INR 18,070.00
India's profit per 1 gram = INR 745.00
100 gram profit = INR 74,500.00
1 kg profit = INR 7.45 Lacks
1 Ton profit = INR 74.50 carore
100 Ton profit = INR 7450 carore
200 Ton profit = INR 14,900 carore
:yahoo:

Hi. Are you sure you are not putting an extra 0 there? The profit earned in those 24 hours should be around 5%, and not 50% as you have stated. In totality it should be INR 1,490 crores and not INR 14,900 crores.

:wave:

Global Hawk - I didn't notice your post before putting mine here.
 
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310 million US $ is still a huge money and that was clever on part of India.


Hi. I appreciate that you rightly pointed out the mistake there.
However, the price of Gold shot up immediately, merely because India bought all that Gold in one go. If India were to sell it back to make that $310m quick money, the price would come down before the transaction could take place.

Just thought I'd point this fact out. :angel:
 
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Dont feel as if I'm pointing out a mistake, but couldn't digest how could investing 7.6 Billion $ could instantly make you a profit of 14,900 crore(aka 3.1 Billion $)

Correction:: India's profit per 1 gram != INR 745.00

it is 74.5 INR so profit would be 0.31 billion $(INR 1490 crores)

310 million US $ is still a huge money and that was clever on part of India.
:welcome:

sorry. my bad. honest mistake though.:oops:

still not bad. gold price will go higher and higher.

by this purchase of gold, we send clear message to the world economy and the investers that we still stand strong in this world economic crisis.
 
Qatar and India sign trade agreements

15 November 2009
DOHA: Qatar and India signed a slew of bilateral trade agreements at the second meeting of Qatari-Indian Ministerial Committee held here yesterday. The Minister of State for International Cooperation and Acting Minister of Business and Trade, H E Dr Khalid bin Mohammad Al Attiyah led the discussions on behalf of Qatar. The Indian delegation was led by T K A Nair, Principal Secretary to the Prime Minister.

Talking to reporters, Al Attiyah said the Gulf Cooperation Council (GCC) and India would sign the proposed free trade agreement in the immediate future. He said bilateral trade between India and Qatar has been steadily growing over the last few years. "The trade volume rose by 14.3 percent in 2008 to reach $3.7bn. This indicates the expected increase in trade in the current year", he said.

Pointing out that Qatar is interested in investing in various sectors in India, he said that a committee has been formed to study and identify the fields that will provide greater value to both sides. The minister added that since the first meeting between India and Qatar held in February, the relations have developed significantly.

The Minister said that Qatar exports a total of 7.5 million tonnes of gas annually to India. T K A Nair said that the two sides discussed the working mechanisms in line with the agreements signed between the prime ministers of both countries during their recent meeting.

Yesterday's meeting also witnessed the signing of a set of bilateral pacts including agreement on economic and technical cooperation. A convention on protection and promotion of investment including a Memorandum of Understanding (MoU) between the Indian Industries Federation and Qatar Chamber of Commerce and Industry (QCCI) aimed at establishing a joint businessmen's council, and a MoU between the two countries in air services and an agreement on cooperation in the fields of security and law enforcement between the two countries was also signed.
 
sorry. my bad. honest mistake though.:oops:

still not bad. gold price will go higher and higher.

by this purchase of gold, we send clear message to the world economy and the investers that we still stand strong in this world economic crisis.

Hey that's the spirit!!

no wonder indians are good entrepreneur's
 
India to be $2-trillion economy by 2014-15: Rediff.com Business

India to be $2-trillion economy by 2014-15
November 16, 2009 20:23 IST

CommentIndia will be a $2-trillion economy in the next five years as its GDP growth is likely to average at 12 per cent in nominal terms powered by a huge consumption demand, Enam Securities has said.

"India's GDP is likely to grow at (an) average 12 per cent in nominal terms. Hence, India will be a $2-trillion economy by 2014-15," Enam Securities head-research, Nandan Chakraborty, and economist Sachchidanand Shukla said in a report titled 'India Strategy' released on Monday.

This growth will be led by the huge consumption demand in sectors like FMCG, power, auto (small car hub), IT and pharma, it added.

The brokerage firm said insurance companies, financial services and equity markets will flourish as the country's annual savings pool grows to $700 billion from $400 billion at present.

"More than half of this ($700 billion) could flow into financial savings. With favourable demographics and average seven per cent real growth, India can sustain more than 30 per cent savings rate akin to the Asian tigers, or China and Japan [ Images ]. This will transform the domestic financial services space," Enam said.

Life insurance penetration in India, which is already a $1-trillion economy, is estimated to reach a level of 4.4 per cent over the next two years as insurance companies focus on expanding into rural India, the report said.

Life insurance penetration in India stands at about 4 per cent at present. Only 26 per cent of rural and 60 per cent of urban population have life insurance cover.

"There is a huge scope for premium expansion. Life insurance penetration is relatively low in India with premiums/GDP at 4 per cent versus 6 per cent for developed nations. India is the fourth largest life insurance market in Asia ex-Japan and has recorded high 31 per cent CAGR over the past six years in total premiums," Enam said.

In terms of growth, companies like SBI Life, Reliance Life and Birla Sun Life offered significant opportunities for investment at attractive valuations, the report said.

Private insurers such as HDFC Standard Life, ICICI Prudential Life, Max New York Life and Birla Sun Life offered attractive valuations for investors due to high persistency ratios and longer duration of policies, it said.
 
India to be $2-trillion economy by 2014-15: Rediff.com Business

India to be $2-trillion economy by 2014-15
November 16, 2009 20:23 IST

CommentIndia will be a $2-trillion economy in the next five years as its GDP growth is likely to average at 12 per cent in nominal terms powered by a huge consumption demand, Enam Securities has said.

"India's GDP is likely to grow at (an) average 12 per cent in nominal terms. Hence, India will be a $2-trillion economy by 2014-15," Enam Securities head-research, Nandan Chakraborty, and economist Sachchidanand Shukla said in a report titled 'India Strategy' released on Monday.

This growth will be led by the huge consumption demand in sectors like FMCG, power, auto (small car hub), IT and pharma, it added.

The brokerage firm said insurance companies, financial services and equity markets will flourish as the country's annual savings pool grows to $700 billion from $400 billion at present.

"More than half of this ($700 billion) could flow into financial savings. With favourable demographics and average seven per cent real growth, India can sustain more than 30 per cent savings rate akin to the Asian tigers, or China and Japan [ Images ]. This will transform the domestic financial services space," Enam said.

Life insurance penetration in India, which is already a $1-trillion economy, is estimated to reach a level of 4.4 per cent over the next two years as insurance companies focus on expanding into rural India, the report said.

Life insurance penetration in India stands at about 4 per cent at present. Only 26 per cent of rural and 60 per cent of urban population have life insurance cover.

"There is a huge scope for premium expansion. Life insurance penetration is relatively low in India with premiums/GDP at 4 per cent versus 6 per cent for developed nations. India is the fourth largest life insurance market in Asia ex-Japan and has recorded high 31 per cent CAGR over the past six years in total premiums," Enam said.

In terms of growth, companies like SBI Life, Reliance Life and Birla Sun Life offered significant opportunities for investment at attractive valuations, the report said.

Private insurers such as HDFC Standard Life, ICICI Prudential Life, Max New York Life and Birla Sun Life offered attractive valuations for investors due to high persistency ratios and longer duration of policies, it said.

India's economy will be bigger than 2trillion$ after 5years. According to the writer India will grow at at 12%p.a for the next 5 years at nominal rate. If we assume that India's inflation rate for that period will be around 5 to 6%p.a, so that means India will grow only by 6 to 7%p.a real growth?? The Planning Commission expects real GDP growth rate to reach double digit figures within 2 years. Furthur as FDI inlflows, Exports will increase, Rupee will also appreciate.
 
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