Indian Economy-News & Updates

[ameer219]

Indian stocks register record slide in 2 months


MUMBAI: India’s benchmark stock index fell the most in two months, snapping a four-day rally that drove it to a two-year high, as investors judged gains outpaced the outlook for earnings growth.

Tata Motors Ltd dropped the most in two weeks while Hindalco Industries Ltd had its steepest decline in two months.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 255.62, or 1.4 percent, to 17,714.40, its steepest decline since Feb 5. The S&P CNX Nifty Index on the National Stock Exchange lost 1.3 percent to 5,304.45. The BSE 200 Index declined 1.2 percent to 2,230.91. The Sensex has gained nine percent since Finance Minister Pranab Mukherjee on Feb 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads, bridges and power projects needed to sustain economic growth.

Tata Motors fell 2.2 percent to 778.05 rupees. Still, the shares have gained 17 percent from their lowest level this year on Feb 25. The Sensex trades at 17 times estimated earnings from 12 times a year ago, data compiled by Bloomberg showed. Hindalco Industries Ltd slid 4.4 percent to 176.5 rupees. Tata Steel Ltd declined 2.1 percent to 671.25 rupees. The London Metals Index, a measure of six metals including copper fell 0.6 percent yesterday.

The following were among the most active on the exchange: Elecon Engineering Co climbed 1.8 percent to 79.15 rupees
and Kingfisher Airlines Ltd jumped 3.2 percent to 49.95 rupees. courtesy bloomberg

Daily Times - Leading News Resource of Pakistan

 

[gogbot]

Indian stocks register record slide in 2 months


MUMBAI: India’s benchmark stock index fell the most in two months, snapping a four-day rally that drove it to a two-year high, as investors judged gains outpaced the outlook for earnings growth.

Tata Motors Ltd dropped the most in two weeks while Hindalco Industries Ltd had its steepest decline in two months.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 255.62, or 1.4 percent, to 17,714.40, its steepest decline since Feb 5. The S&P CNX Nifty Index on the National Stock Exchange lost 1.3 percent to 5,304.45. The BSE 200 Index declined 1.2 percent to 2,230.91. The Sensex has gained nine percent since Finance Minister Pranab Mukherjee on Feb 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads, bridges and power projects needed to sustain economic growth.

Tata Motors fell 2.2 percent to 778.05 rupees. Still, the shares have gained 17 percent from their lowest level this year on Feb 25. The Sensex trades at 17 times estimated earnings from 12 times a year ago, data compiled by Bloomberg showed. Hindalco Industries Ltd slid 4.4 percent to 176.5 rupees. Tata Steel Ltd declined 2.1 percent to 671.25 rupees. The London Metals Index, a measure of six metals including copper fell 0.6 percent yesterday.

The following were among the most active on the exchange: Elecon Engineering Co climbed 1.8 percent to 79.15 rupees
and Kingfisher Airlines Ltd jumped 3.2 percent to 49.95 rupees. courtesy bloomberg

Daily Times - Leading News Resource of Pakistan

So market decided to sell shares in the two year high ,

Shares fell again, now they are cheap others will buy again.

 

[Justin Joseph]

India is a vital market for US firms: US chamber

Lalit K Jha/PTI / Washington April 09, 2010, 10:46 IST
Representing some 3 million American businesses, including the top Fortune 500 ones, the head of the US Chamber of Commerce is visiting India next week in an effort to highlight opportunities for US and Indian firms to increase trade and investment, expand infrastructure, and leverage technology to create more jobs in both countries.


The visit of US Chamber of Commerce (UCC) president Thomas J Donohue that comes on the heels of the successful trip of treasury secretary Timothy Geithner to New Delhi and Mumbai, assumes significance as the UCC had played a key role in the passage of the Indo-US civilian nuclear deal during the Bush administration. Donohue will be accompanied by US-India Business Council president Ron Somers.

The Indo-US nuclear deal represents $150 billion in business potential for US companies and could generate as many as 2,50,000 high-tech American jobs, the chamber believes.

Noting that by looking into new markets abroad, US businesses remain at the point of the spear in strengthening US international relations, Donohue said, "in no country is this more evident than India, but our work is just beginning".

"India is a vital market for American companies and increasing bilateral trade and investment ties is necessary to driving job creation and innovation in both countries."

During his seven-day visit, Donohue will meet with top business and government leaders and make stops in New Delhi, Mumbai and Uttar Pradesh, and Madhya Pradesh.

He will highlight India’s trillion-dollar infrastructure challenge, which he hopes to convert into US business opportunities. "Some of our best capabilities are in developing infrastructure and technologies that India critically needs. It’s time to integrate American businesses of all sizes into this supply chain," he said.

"To create these jobs, we are urging the governments to not only resist protectionism, but continue to open markets, embrace domestic reforms, and provide global leadership on trade, energy, and the protection of intellectual property."

Pointing to the growth in bilateral trade which has crossed $40 billion and is expected to grow at double-digit rates well into the next decade, he said, "private sectors of both our countries have been trailblazers in bringing together the two largest free-market democracies".

"Now it’s time to press our governments toward accelerating mutually beneficial commercial relations. The UCC will remain at the forefront in the effort to streamline export control rules that are a legacy of the Cold War. Many of the problems facing our countries can be solved by prudent application of sophisticated technology. More than ever we need to collaborate as partners in this field."

On April 13 he will address the CII and other business organisations in New Delhi.

http://www.business-standard.com/india/news/india-isvital-market-for-us-firms-us-chamber/90747/on

 

[Justin Joseph]

Essar plans $2.5-bn London listing for energy business

BS Reporters / Mumbai April 9, 2010, 0:44 IST

This would be the largest overseas IPO by an Indian company.

Ruias-owned Essar Energy today announced plans to raise about $2.5 billion (over Rs 11,250 crore) through an initial public offering (IPO) of shares in the UK. This would be the largest overseas IPO by an Indian company.

Essar Energy, a holding company for the group’s power and oil businesses, plans to offer a 20 to 25 per cent stake to investors in the UK and list the shares on the London Stock Exchange. It would be also London’s biggest IPO since 2006.

The Essar Group, with businesses across steel, oil and gas, power, communications, shipping, ports and logistics and construction, has annual revenues of $15 billion. The group is controlled by billionaire brothers Shashi Ruia and Ravi Ruia. ranked fifth in Forbes’ list of wealthiest Indians (November 2009), with a combined net worth of $13.6 billion.

Proceeds from the IPO will be used for the expansion of the group’s power, refinery and oil and gas exploration projects. JPMorgan Cazenove and Deutsche Bank AG are the joint global coordinators for the issue.

Prashant Ruia, vice-chairman of Essar Energy, in a media conference call said, “Essar Energy is a low-cost, Indian-focused energy company with an established track-record. As a result, we believe that Essar Energy is well-positioned to take advantage of India’s growth story. India’s strong projected macroeconomic growth is expected to result in high growth in the demand for energy. We believe that international investors are keen to access the Indian growth story through a company supported by strong governance and Essar Energy offers exactly that.”

Two-thirds of the IPO proceeds would be invested in Essar’s power business and one-third in oil and gas.

The group has four power plants with a total installed capacity of 1,220 Mega watts. It plans to take the total installed and planned capacity to 11,470 MW in the four years in two phases — six plants under construction to increase capacity to 6,100 Mw by 2012 (Phase I), and six plants under development to increase capacity by an additional 5,370 Mw by 2014 (Phase II).

The Essar Group bought West Virginia-based Trinity Coal Corp for $600 million in March. That was followed by the purchase of the Aries coal mines in Indonesia to secure fuel supplies for its power plants.

The company has 14 exploration blocks in India, Nigeria, Vietnam, Australia, Indonesia and Madagascar, including one coal seam gas block in Rajmahal India, for which Essar Energy has been declared provisional winner.

Essar Oil is expanding the capacity of its refinery in Gujarat, from the present 10.5 million tonnes per annum (mtpa) to 18 million tonnes by March 2011, Ruia said. The group further plans to expand capacity to 36 mtpa depending on market conditions. Essar Oil has a network of nearly 1,300 franchisee petrol stations across India. Essar Oil is listed on the Bombay Stock Exchange and gained 3.2 per cent to reach Rs 150.4 on the exchange following the announcement.

Essar has so far invested over $2 billion in Essar Energy’s business before the offer. As of December 31, the company had total assets of Rs 8,016 crore and net debt of Rs 3,038 crore. For the nine months ending December 31, the company had revenue of Rs 5,655 crore and net profit of Rs 120 crore.

The company however, would not use the IPO proceeds to fund the share sale to buy the refineries Ruia said. Naresh Nayyar, CEO, Essar Energy said there was no certainty on the acquisition of Shell’s refineries in Stanlow in the UK and Hamburg and Heide in Germany. “We have not entered into any binding agreement as of now. We are still in discussion with Shell and a decision will be taken on this post IPO by the board of Essar Energy,” Nayyar added.

Essar plans $2.5-bn London listing for energy business

 

[Justin Joseph]

Maruti faces capacity crunch as sales surge

The country’s largest car producer — Maruti Suzuki — is caught in a cleft. There is growing demand for its cars, but it does not have sufficient production capacity to feed this demand. To top that, this capacity constraint is not likely to be lifted before 2012.

R C BhargavaThe company, which sold over one million cars in the last financial year, expects sales to go up by around 10 per cent. In simple terms, this means that its engineers have to produce over 1,00,000 more cars, in a plant which is already working at much over 100 per cent capacity utilisation.

The man steering the fortunes of the company, chairman R C Bhargava, admits the problem. “We are certainly not in the comfort zone. We are working at well above 100 per cent capacity. Our engineers are stretching the production capacity through various innovations, as new capacity will be available only by 2012,” he says.

Bhargava says while the engineers have ensured they would be able to meet this financial year’s sales target, 2011-12 could be a challenging year.

Maruti’s engineers are trying to get out of the problem by putting in manual lines until the new capacity gets added.

Mayank Pareek, executive officer (marketing and sales), of Maruti Suzuki, says: “We are in the process of renovating, rationalising and debottlenecking our Gurgaon plant to put it to optimal use.

We hope to cover whatever added demand there is from this exercise.”

Maruti's two plants in Gurgaon and Manesar together have an installed capacity of 800,000 cars but the engineers have been able to produce over a million units this year. As a result the capacity utilisation in the plant is already at 125 per cent. The company is of course expanding the capacity in the Manesar plant by another 250,000, but this capacity will only come by 2012. However the same plants now have to produce over 1.1 million cars for this financial year.

What is adding to the worry are the long queues for some of its car models. For instance the hot selling Dzire has a waiting list of around three to four months; the Swift is not available to consumers before two months and the newly-launched Eeco, which has caught the fancy of consumers, has a waiting list of three to four months. Says Bhargava: "We had not planned or anticipated such a high growth for this model"

Maruti is also keen to push exports and add more international markets that could lessen its dependence on the European nations. In addition, Maruti has a signed a pact with Nissan to supply 35,000 A-star's (rebadged as Nissan Pixo) during the current year. This, according to experts, could mean lesser number available in the domestic market.

However, a Mumbai-based analyst says that due to increased competition in the local market from players like General Motors, Nissan and Ford, all of whom already have or will have launched a new model in the small car market, Maruti sales will come under pressure.

Maruti faces capacity crunch as sales surge

 

[imran iqbal]

Indian stocks register record slide in 2 months


MUMBAI: India’s benchmark stock index fell the most in two months, snapping a four-day rally that drove it to a two-year high, as investors judged gains outpaced the outlook for earnings growth.

Tata Motors Ltd dropped the most in two weeks while Hindalco Industries Ltd had its steepest decline in two months.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 255.62, or 1.4 percent, to 17,714.40, its steepest decline since Feb 5. The S&P CNX Nifty Index on the National Stock Exchange lost 1.3 percent to 5,304.45. The BSE 200 Index declined 1.2 percent to 2,230.91. The Sensex has gained nine percent since Finance Minister Pranab Mukherjee on Feb 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads, bridges and power projects needed to sustain economic growth.

Tata Motors fell 2.2 percent to 778.05 rupees. Still, the shares have gained 17 percent from their lowest level this year on Feb 25. The Sensex trades at 17 times estimated earnings from 12 times a year ago, data compiled by Bloomberg showed. Hindalco Industries Ltd slid 4.4 percent to 176.5 rupees. Tata Steel Ltd declined 2.1 percent to 671.25 rupees. The London Metals Index, a measure of six metals including copper fell 0.6 percent yesterday.

The following were among the most active on the exchange: Elecon Engineering Co climbed 1.8 percent to 79.15 rupees
and Kingfisher Airlines Ltd jumped 3.2 percent to 49.95 rupees. courtesy bloomberg

Daily Times - Leading News Resource of Pakistan

Can you get it easy on the Fonts and colour ? (I figured since you are upside down, it may be hard for you to read ). Much to your displeasure, article published in pakistan newpaper is perfect example of quote mining and selective reading, Indian economy is booming as opposed to your or your nations well wishes.

Indian Stocks Slide Most in Two Months; Tata Motors Declines - Bloomberg.com

April 8 (Bloomberg) -- India’s benchmark stock index fell the most in two months, snapping a four-day rally that drove it to a two-year high, as investors judged gains outpaced the outlook for earnings growth.

Tata Motors Ltd., the nation’s biggest truckmaker and owner of Jaguar Land Rover Ltd., dropped the most in two weeks. Hindalco Industries Ltd., the biggest aluminum producer, had its steepest decline in two months.

“Valuations are not cheap for automakers,” said Manish Sonthalia, who helps manage the equivalent of $190 million in equities at Motilal Oswal Securities Ltd. in Mumbai. “We are staying away from metal companies. Global commodities are on the vulnerable side. There is a lot of froth.”

The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 255.62, or 1.4 percent, to 17,714.40, its steepest decline since Feb. 5. A 14-day relative strength measure, showing how rapidly prices rose or fell during the specified period was above 70 for the past three days. Some investors see readings above that level as a signal to sell.

The S&P CNX Nifty Index on the National Stock Exchange lost 1.3 percent to 5,304.45. The BSE 200 Index declined 1.2 percent to 2,230.91.

The Sensex has gained 9 percent since Finance Minister Pranab Mukherjee on Feb. 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads, bridges and power projects needed to sustain economic growth.

‘Serious Problems’

Tata Motors fell 2.2 percent to 778.05 rupees. Still, the shares have gained 17 percent from their lowest level this year on Feb. 25. Global equities are due for a “correction” after rallying from their March 2009 low, investor Jim Rogers, author of “A Bull in China,” said in an interview with Bloomberg Television today.

The world still has “serious problems,” said Rogers, 67, the chairman of Singapore-based Rogers Holdings who predicted the start of the global commodities rally in 1999.

The Sensex trades at 17 times estimated earnings from 12 times a year ago, data compiled by Bloomberg showed. That makes India the most expensive after China among the biggest developing nations including Brazil and Russia, also known as BRICs. India’s valuations are also the highest in Asia after China and Japan.

‘Valuations Stretched’

“The valuations are stretched” and investors should be “cautious,” Mohit Mirchandani, Mumbai-based head of equity investment at Taurus Mutual Fund, which oversees 25 billion rupees ($560 million) in assets, said April 6.

Hindalco Industries Ltd., the biggest aluminum producer, slid 4.4 percent to 176.5 rupees. Tata Steel Ltd., the biggest producer of the alloy, declined 2.1 percent to 671.25 rupees. The London Metals Index, a measure of six metals including copper fell 0.6 percent yesterday.

India’s food inflation accelerated 17.7 percent in the week ended March 27 from a year earlier, according to a statement in New Delhi today. The pace quickened for a second straight week, increasing pressure on the central bank to raise interest rates.

The central bank may raise borrowing costs for a second time in a month on April 20, the next scheduled policy meeting, said Laveesh Bhandari, a director at Indicus Analytics Pvt., a research group in New Delhi.

Overseas investors bought a net 5.9 billion rupees of Indian stocks on April 6, taking their total purchases of the equities this year to 236.9 billion rupees, according to the nation’s market regulator.

Foreign funds have been net buyers for 23 straight trading days, the longest streak of inflows since August 2005, after the government’s Feb. 26 budget.

Inflows from overseas into India’s stock market reached a record 834.2 billion rupees in 2009, beating the high set two years earlier in local currency terms, as the biggest rally in 18 years lured foreign funds. They sold a record 529.9 billion rupees of shares in 2008, triggering a record annual decline.

The following were among the most active on the exchange:

Elecon Engineering Co. (ELCN IN) climbed 1.8 percent to 79.15 rupees. The maker of equipment used in mines and power transmission has won orders worth 883.5 million rupees, it said in a statement to the Bombay Stock Exchange.

Kingfisher Airlines Ltd. (KAIR IN) jumped 3.2 percent to 49.95 rupees. The airline owned by India’s largest brewer expects to post profit before interest, taxes, depreciation and amortization in the year that began April 1, Ravi Nedungadi, chief financial officer of UB Group, the airline’s parent, said in Bangalore.

 

[ameer219]

Can you get it easy on the Fonts and colour ? (I figured since you are upside down, it may be hard for you to read )
Indian Stocks Slide Most in Two Months; Tata Motors Declines - Bloomberg.com

Excuse me sir?

Mind your words before speaking. I do this to all my posts especially when I am posting a mini thread about economy. If you don't believe you can check my other posts on Pakistan economy-news and updates.

Much to your displeasure, article published in pakistan newpaper is perfect example of quote mining and selective reading, Indian economy is booming as opposed to your or your nations well wishes

.


Sir, why get overemotional over this mini thread I posted. When one of the Indian members( I decline to name him) posted about the World bank news on Pakistan economy in a negative light, no Pakistanis intervened. Can you be more professional instead?

In fact, I 100% acknowledge that economy of India is improving at very fast rates. If you want to live in denial of this article I posted and want to believe that I am opposed to well wishes against your country, go ahead!

 

[Justin Joseph]

India-made Yamaha bikes head for Australia

Praveena Sharma / DNA
Friday, April 9, 2010 2:03 IST

Bangalore: India Yamaha Motor Pvt Ltd will rely heavily on exports to push up its market share in the current year and is looking at exporting its FZ-16 and YZF-R15 to developed markets like Australia.

The company has said it will increase its share in the premium and deluxe segment to 20% by 2010-end from 12% this fiscal.
Pankaj Dubey, national business head of India Yamaha Motor, told DNA Money the parent company of the Indian subsidiary was focusing on making India a “strong” sourcing base for overseas markets.

“Since our exports are doing well, our parent company (Japanese two-wheeler major Yamaha Motor Co) is giving us a lot of orders (for overseas market). They are looking at making India a strong base for executing orders from abroad,” he said.

Dubey said India would be catering to the demand for premium and deluxe bikes like FZ-16 and YZF-R15 of the overseas
market.

“These models are currently made only in India and there is a lot of order for them from other countries. We are trying to increase our internal strength to meet the swelling demand,” he said.
According to him, the world’s second-largest motorcycle maker is exploring on how the two models can be exported to Australia, where there is huge demand for it.

“These developed markets make enough of the high-end and
super bikes but they do not make these two models. India can take care of that segment,” he said.

Dubey said the company was currently studying the “rules and regulation” in these countries to make bikes as per their specifications. “After that, we will see what we can do.”

At present, India Yamaha is exporting to countries like Columbia, Nepal, Bangladesh, Sri Lanka and others. Its exports in FY10 shot up 73.15% to 66,904 units against 38,639 units in the previous.
In March this year, the company’s overseas sales jumped 36.76% to 9,568 units from 6,996 units in the same month last year.

Dubey said the cost advantage of producing regular bikes in India over developed countries was around 20-35%. For innovative bikes, India did not offer any cost benefit.

“For innovative motorcycles, the advanced technology is not easily available and so the first-time development cost shoots up and this takes away cost advantage,” he said.

Dubey said the company would be launching one or two new products in the Indian market this year in the executive bike — 100-150cc — segment.

He said Yamaha’s current capacity of around 6 lakh units per year in India was adequate to take care of the export and domestic demand projections of the company for the year.

India-made Yamaha bikes head for Australia - dnaindia.com

 

[Justin Joseph]

Reliance in $1.7bn gas deal with US's Atlas

By Joe Leahy in Colombo, Helen Thomas in New York and,Sheila McNulty in Houston
Published: April 10 2010 03:00 | Last updated: April 10 2010 03:00

India's Reliance Industries has agreed a $1.7bn joint venture with Atlas Energy to help develop the US group's acreage in the Marcellus Shale gas formation.

The move will give Reliance, India's largest private sector company controlled by Mukesh Ambani, the country's richest man, a foothold in the US gas industry and Atlas a cash-rich partner. "This transaction will enable us to accelerate sharply our development of the Marcellus," said Edward Cohen, chairman and chief executive officer of Atlas Energy.

The Marcellus Shale, which straddles the states of Pennsylvania, West Virginia and New York, is estimated to hold enough natural gas to meet US demand for a decade. It is thought to cover 65,000 square miles, an area larger than Greece.

The deal follows a raft of similar agreements between some of the world's largest energy companies and smaller independents with exposure to so-called unconventional gas.

New drilling technology, its proponents claim, makes these fields economical to develop. This has led to higher estimates for US gas reserves, up from 30 years to 100 years at current usage rates.

ExxonMobil has agreed a $41bn deal to buy XTO, the shale gas specialist, while BP, Statoil and Total have each struck deals with Chesapeake Energy to tap into its US shale assets.

Under Reliance's arrangement, the Indian company will acquire a 40 per cent interest in 300,000 of the 580,000 acres owned by Atlas in the Marcellus region.

Reliance will pay about $340m in cash up front. It will also fund $1.36bn of Atlas' capital expenditure as the fields are developed, as well as contributing its own share of capital costs.

While Atlas will initially operate the fields, Reliance - whose upstream operations are headed by Walter Van De Vijver, a former Shell executive - is expected to take control of certain regions in the future.

Unusually, that offers Reliance the prospect of hands-on experience developing shale assets.

Reliance also has first refusal on Atlas' remaining 280,000 acres, as well as an option to take a 40 per cent share in any new leases acquired by Atlas in the area.

Reliance said it was considering committing a further $3.4bn to the joint venture over the next decade.

"Marcellus is one of the most prolific shale gas plays in North America with substantial resources and among the best economics," said Alok Agarwal, Reliance Industries' chief financial officer.

It operates the world's biggest refinery complex in a single location on India's west coast and the country's largest gas field on its east coast, and is seeking to expand offshore.

Barclays advised Reliance on the deal. Jefferies and JPMorgan Securities advised Atlas.

FT.com / UK - Reliance in $1.7bn gas deal with US's Atlas

 

[Justin Joseph]

India 2nd in auto market after China

NEW DELHI: While the global car market shrank, India’s auto industry displayed its resilience and strength, racing past several developed markets to emerge as the world’s second-fastest growing light vehicle market, second only to China and ahead of Germany, France, Japan and the US.

The government’s economic revival package gelled well with the country’s low car penetration, stable economic growth, new model launches and lower interest rates to increase the footfalls at showrooms and keep the demand ticking.

According to data released by industry body SIAM, the light vehicle market — that comprises passenger cars, utility vehicles, multi-purpose vehicles and light commercial vehicles — grew 27.5% in India in 2009-10, faster than Germany (23%), Brazil (11%), France (11%), Italy (-0.2%), UK (-6%), Japan (-9%), US (-21%) and Russia (-50%).

China was the only market to have grown faster than India as light vehicle sales there grew 42%, especially after the government reduced vehicle tax by 50% in January 2009. Overall, the world light vehicle market contracted by 14%, registering its worst sales in eight years. The yearly growth rates for all the other markets are based on 2009 calender year basis, SIAM said.

Light vehicle sales in India were driven by a rapid 25% growth in demand for passenger cars.

India 2nd in auto market after China - The Times of India

 

[ramu]

Mukherjee, a key player to India’s economic reform process: Geithner

US Treasury Secretary Timothy Geithner, who met Finance Minister Pranab Mukherjee on Tuesday to launch the U.S. - India Economic and Financial Partnership, described Mukherjee as the key to the economic reform process that began in India years ago.


We meet at a time of encouraging prospects for the U.S. and Indian economies, and the beginnings of global economic recovery,” said Geithner, thanking Mukherjee and his staff for being such gracious hosts.

“A year ago, the heads of state of India and the United States came together in London with the leaders of the other members of the G-20 and embarked on a powerful and coordinated program of economic stimulus,” he added.

Geithner said: “They committed to act to restore stability to the financial systems of the major economies, to provide financial support to emerging and developing economies on a dramatic scale, to keep markets open to trade and investment, to restore growth in their own economies, and to lay the foundation for international financial reform.”

“Those actions worked, and the world is now starting to come out of the great recession, the most severe crisis since the Great Depression,” he added.

“In the U.S., the economy has now been growing for three quarters. While unemployment remains unacceptably high, the private sector has added jobs during four of the past five months, private investment is increasing, productivity growth is very high, the financial system is recovering, private savings have improved,” said Geithner adding that the US economy is now borrowing significantly less from the rest of the world.

“We are also engaged in an important set of reforms to improve our private health care system, to strengthen our education system, to rebuild our infrastructure, to increase energy fficiency and reduce carbon emissions, to restore fiscal sustainability, and to fundamentally restructure and reform our financial system,” said Geithner.

“India navigated this financial crisis with a steady hand, and has emerged from the global recession stronger and faster than most other large economies,” he added.

Geithner further said that during the meeting Mukherjee and his colleagues outlined the opportunities and challenges ahead for the Indian economy, and the policy reforms they are undertaking to raise the rate of overall economic growth, and to extend the benefits of growth more broadly.

“India has a dynamic entrepreneurial private sector, a demonstrated ability to compete in the global market, and a commitment to quality higher education. With those strengths and the Minister’s proposed reforms, India’s economic growth, already impressive, will be even stronger in the future,” said Geithner.

Geithner said the US and India both face some common problems, such as how to design a private financial system that can finance future innovation, how to extend financial services more broadly to people outside the banking system, and how to finance our very substantial infrastructure needs in ways that effectively leverage private investment.

“We also face the urgent challenge of making sure that the gains from economic growth in both of our countries are broadly shared. Economic growth must be about improving the prospects for all our citizens,” he added.

The US Treasury Secretary thanking Mukherjee for providing details about the Indian economy said India has made remarkable progress and is an indispensable partner in securing the future prosperity and security of the world.

“US President Barack Obama and Prime Minister Dr Manmohan Singh recognize that, as two of the world’s largest economies, we need to work more closely together,” said Geithner.

“Our ability to cooperate on economic and financial issues will be critically important to the success of global efforts to create conditions for a more stable global financial system, more balanced global economic growth that is less dependent on the willingness of Americans to live beyond our means, more effective and representative international financial institutions, and a more open global trading system,” he added.

Geithner, who arrived here along with Federal Reserve Vice Chairman Donald Kohn, also met Prime Minister Dr Manmohan Singh earlier in the day.

He is expected to discuss ways to rebalance the global economy.

The discussions will complement a strategic dialogue program that the United States shares with China, but will be more limited in scope, according to U.S. treasury officials.

The two sides are also expected to discuss infrastructure financing, with the Treasury offering expertise in helping India develop a municipal bond market, and India sharing experience in private-sector infrastructure development.

Before meeting Dr. Singh, Geithner visited a storefront mobile banking site on the outskirts of the national capital that is affiliated with Eko, a nonprofit organisation, and the State Bank of India.

The US Treasury Secretary said he wanted to show how India was coming up with creative solutions to its development problems.

On Wednesday, Geithner will hold a roundtable discussion with US financial companies and Indian entrepreneurs in Mumbai. (ANI)


Source : Business News

 

[yashchauhan]

India - toughest for expats after China.

India has emerged as the second most challenging location to work for expatriates after China across the globe even as multinational firms are expanding their presence in the emerging economies, says a study.

About 46 per cent of multinational companies reported a decrease in the number of international assignments over last year, while about 44 per cent of the MNCs plan to ramp up their overseas postings this year, according to an annual Global Relocation Trends Survey.

The reported decrease in the number of international assignments is a record high level in the 15-year history issued by Brookfield Global Relocation Services.

"China, India and Russia ranked first, second and third, respectively, as the countries that expatriates found the most challenging," the survey said.

Moreover, these countries have also emerged as the most challenging locations for expatriates due to the issues related to housing, schooling, immigration challenges and healthcare costs among others. Led by strong economic activity from emerging and developing economies in Asia, international assignments in the region are increasing but challenges mainly due to the difficulty in finding suitable housing, schooling, health care, and immigration red tape remain," Brookfield Global Relocation Services President Rick Schwartz said.

Besides, India has emerged as the most challenging destination for corporate international assignment policy and programme managers -- replacing China which had occupied the top position since the 2003-2004 report.

China and India topped the list of locations with the highest rates of assignment failure, interestingly they are also among the top destinations for overseas assignments.

"A key way for companies to maximise their return on investment while minimising assignment failure is by providing mandatory cross-cultural training to assignees and their family.

"Although 80 per cent of companies surveyed said they provide formal cross-cultural preparation, only 17 per cent (down from 22 per cent last year) mandated it," Brookfield Global Relocation Services Executive Vice President Scott T Sullivan said.

Most of the foreign assignees do not prefer to keep their families with them during international assignments, as only 47 per cent of international assignees had families with children.

The survey was conducted among 120 multinational firms covering a total employee population of 5.8 million.




‘India a tough nut for expats’

 

[DemonHunter]

India to become 3rd largest economy by 2012
24 January 2010 08:10

A report by PricewaterhouseCoopers (PwC) shows India can overtake Japan as the world’s third largest economy by purchasing power parity (PPP) by 2012.

India’s economy expanded 7.9 % in the second quarter of 2009-10 and is expected to grow over 7 % in the whole fiscal hear, posits the global accounting firm. According to the key policy makers of Prime Minister Manmohan Singh’s government, India will return to a 9% growth trajectory in two or three years.

The effects of the global financial crisis on India and China were largely limited; both countries returned to high growth rates in 2009 while Western economic giants are still facing slow growth and unemployment.

Additionally, India is expected to grow faster than China after 2020. China, which was projected to become the world’s largest economy by 2041, now looks set to achieve the distinction sometime around 2020, the PwC report said.

”While the exact date is open to doubt, it seems highly likely that, by 2030, China will clearly be the largest economy in the world on PPP,” writes PwC head of macroeconomics, John Hawksworth, in the report.

The report, released Friday by PwC, the largest of the world’s Big Four auditing firms, projected that China will overtake the US to become the world’s largest economy by 2020, more than 20 years ahead of the earlier prediction of 2041.

It is also predicted that China’s share in global GDP will be 19% by 2030, while the proportion for the US and the EU will be 16% and 15%, respectively.

India to become 3rd largest economy by 2012|?slâmi Davet – English News

 

[Choppers]

Bharti Walmart to foray into south, west India within 2 yrs

CHANDIGARH: Bharti Walmart, the 50:50 joint venture between Bharti Enterprises and US-based Walmart Inc, on Tuesday said it will enter the southern and western parts of India within the next 18-24 months as it looks to expand presence in the country.

The wholesale firm had earlier announced plans to have 10 -15 outlets within the next three years in Punjab, Haryana, Delhi NCR, Rajasthan, Uttar Pradesh and Madhya Pradesh.

"Within 12-18 months we should be able to be in the southern markets. We are focusing on all four southern states. And probably after that, within two years, we will be in west India," Bharti Walmart Managing Director and CEO Raj Jain told.

He said the company has started scouting for locations in the southern and western states but is yet to take a decision on the total number of outlets likely to be set up in those regions.

"The cash-and-carry outlets in south and west would follow our existing format of 50,000-80,000 sq ft size," he said.

The firm today opened its second outlet in Chandigarh. Its first store in Amritsar was inaugurated in May last year.

"This year we will open five more outlets in North India, taking our total retail space to over 3 lakh sq ft from one lakh sq ft now," Jain said.

Regarding today's Walmart Asia President Scott Price's announcement that the American retail giant will increase sourcing from India, Jain said, "We are looking to start exporting mangoes soon and also put more emphasis on basmati."

Bharti Walmart will open a new technical training centre in Delhi later this year in collaboration with the state government on lines with the existing centre in Punjab.

"The centre in Amritsar has already trained 2,000 students in courses like retail, wholesale and supply chain management, of whom 700 have secured placements in various places. We now want to replicate it in Delhi," Jain said.

 

[Justin Joseph]

Infosys posts Q4 profit of 1600 cr; to hire 30,000 employees

Tuhina Pandey and Mokshada Batra, April 13, 2010 (Bangalore)

Infosys, the second largest Indian IT company, kick started the earning season on Tuesday posting numbers quite aligned with the street's expectations.

Infosys on Tuesday reported a consolidated net profit of Rs 1600 crore for the quarter-ended March 31, 2010, a quarter-on-quarter growth of 2.6 per cent and year-on-year decline of 0.9 per cent.

The company registered revenues of Rs 5,944 crore for the March-ended quarter 2010, up by 3.5 percent quarter-on-quarter and a year-on-year-growth of 5.5 per cent.

But investors were, as always, more focused on the keenly awaited guidance for next fiscal which came in healthy at 16-18 per cent for dollar revenue growth but more muted in rupee terms at 9-11 per cent with earnings seen largely flat in FY11.

"We have done very well to what we thought we would. We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building during the economic downturn", S Gopalakrishnan, CEO and MD said on Tuesday. "This quarter we added 47 new clients, the highest in recent times", he said.

Infosys also said it was looking at recruiting nearly 30,000 persons for this fiscal year including over 2000 from overseas.

In India it had already made 19,000 campus offers, T V Mohandas Pai, Member of the Board and Head-HRD and Education and Research said.

The company was planning to induct 5,500-6,500 laterals, he said while talking about Infosys' hiring plans. It was planning to recruit 1000 each for its China and US office and around 400 in Manila.

Infosys also saw one of the largest wage increase. "There has been a large wage increase for middle and junior level employees. In senior level there has been a 10 per cent increase in wages". Overall the average wage hike has been around 14-17 per cent, he said.

All expect Infosys to beat its indicated guidance as it has in the past but the margin contraction by 150 basis points next fiscal on the back of rupee appreciation and wage hikes, and rising attrition are causes for some concern.

An upbeat management at Infosys headquarters and the most widely used phrase "cautiously optimistic” is out of fashion for now. However, as of now it seems like "play it safe" is still the Infosys mantra.

Infosys posts Q4 profit of 1600 cr; to hire 30,000 - NDTV Profit