Sameer

Well ya, thats true but when you put it in terms of a ratio and perform regressions with other determinants such as rainfall, ratio of private to public investment, organized/unorganized sector gdp ratio and tradeopenness, this above reason of yours does not become that obvious, ie

Since Y= alpha * capital stock + (1- alpha) labor stock + total factor productivity (1)

You can sub in the above mentioned variables (rain etc) into equation 1 and then have a statistically meaningful relationship. Essentially I was trying to measure total factor productivity, ie growth that comes from factors other than capital and labor.

Sameer

oops where tradeopenness=( imports+exports)/total gdp

and all variables are in logs of course.

oneman28

China's industry revenue has been increasing at 16+% for years.

Data for august
http://au.biz.yahoo.com/050914/33/9952.html

Sameer

Starting salaries in India has quadrupled in five years, says Assocham
New Delhi | October 09, 2005 5:06:21 PM IST


The starting salary for freshers passing out graduate courses like BBA/BCA from general universities across India has increased from Rs 2,500 in 2000 to Rs 10,000 in 2004, according to Associated Chambers of Commerce and Industry (ASSOCHAM) Eco Pulse (AEP) Study.

In case of BCA and BSc (Information Science) streams, salary levels have gone up to as much as Rs 10,000-15,000 in last two academic years 2003-04 and 2004-05, the study said.

Most of the firms visiting university campuses for recruitment came from the Information Technology (IT) and IT enabled sevices (ITES) sectors.

The AEP Survey also revealed that in order to synchronise with the industry requirements, many of the universities have placement cells headed by a Director who looks after the matters relating to students employment and training programmes.

"Some of the departments like Management Studies have their own placement cells. Companies from new economy sectors like IT and ITES, certain revamped Manufacturing sectors, Hospitality, Banking and Finance have started visiting for campus recruitments," it said.

It include companies like Infosys, TCS, Wipro, Cognizant, Dell Computers, iGate, ICICI Bank, CRISIL, ABN Amro Bank, IDBI Bank and Standard Chartered.

On the new trend, Assocham president Mahendra K Sanghi said, "It is a healthy sign for our industry as well as economy that the companies do not restrict themselves only to professional courses but are interested in the general streams also."

The recruits are not only the students from BBA and BCA but from other streams like B.Sc and Humanities as well.

The study found that the firms which recruits graduates also arrange for certain educational programmes for them.

Most of the Undergraduate courses offered in the universities across the country provide basic skills to the students and are in synchronization with the requirements of the industry.

"The Universities are making conscious efforts towards restructuring their undergraduate courses to cater to the industry needs and this is evident from the increase in the starting salary levels of the students", said Sanghi. (ANI)

Sameer

http://economictimes.indiatimes.com/...ow/1257741.cms

BEIJING: Bilateral trade between India and China during the first eight months of this year has touched $12.2bn and is all set to cross the record of $13.6bn achieved in ‘04.

During January-August period, the total bilateral trade was worth $12.2bn, up by 40.4% over the same period last year, latest Chinese customs statistics showed. India’s exports to China grew by 28.3% to $6.7bn while the country’s imports from China witnessed a hefty 58.7% increase to touch $5.5bn.

India enjoyed a trade surplus of around $1.2bn during the first eight-month period in ‘05 compared to $1.7bn last year, it said. “If such high growth rates can be kept, the aim of increasing the bilateral trade volume to $20bn or higher by ‘08 will be realised soon if not this year,” a trade analyst said.

He also said that the upcoming “Made in India” trade exposition in Shanghai, China’s eastern metropolis and financial hub, would be a good opportunity for the Indian industry to showcase their manufacturing prowess and enhance bilateral trade volume as well as diversify the trade basket.

The third MII, scheduled from October 17 to 20, organised by the Confederation of Indian Industry in co-operation with the consulate general of India in Shanghai is expected to offer an important window for mutual synergies between Indian and Chinese businesses
Meanwhile, a report prepared by the Chinese commerce ministry said that China’s two-way foreign trade will hit $1.4 trillion. The ministry has forecast a trade surplus of $90bn to $100bn for ‘05, compared to $32bn a year ago.

The report said the surplus will be created by a predicted 30% jump in exports to $750bn, compared with an 18% rise in imports to $660bn. China recorded a trade surplus of $60.2bn in the first eight months of ‘05, far surpassing the $32bn logged in ‘04.

Exports remained buoyant in the first eight months, rising 32% year-on-year to $475.7bn, while imports grew just 15% to $415.5bn. The predicted trade surplus of $90 to $100bn will account for 5% of China’s total trade volume, compared to 2.8% in ‘04, the ministry’s report said.

In ‘04, China replaced Japan as the world’s third largest trader following the US and Germany with its trade volume hitting $1.2 trillion - $593.4bn for exports and $561.4bn for imports.

Sameer

SOme very important news





Join Date: Aug 2004
Location: DED, LKO, PHL
Posts: 951

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Manufacturing cuts the flab, roars back to form


Quote:
Indian manufacturing is gaining from a clear focus on key parameters like operating costs, efficiency and innovation. Fuel & power, critical & neglected inputs were amongst the first targets. Fuel & power expenses vis-à-vis sales of ten sectors within manufacturing between FY00 and FY05 show that while sales have grown at a CAGR of 11.5%, power and fuel expenses have grown at 7.3% only.

Working capital, hitherto not thought of as a cost-cutting tool, has gained prominence. For a sample of 43 companies with annual sales of over Rs 1,000 crore, the working capital/sales ratio has fallen from 12.1% in ‘95 to 5.6% in ‘05. The total sales for these companies in FY05 was Rs 6,30,000 crore. At a 10% interest rate for short-term borrowing, this corresponds to a savings of over Rs 4,000 crore a year.

“The greatest contribution of innovation to Indian manufacturing is faster product development, smart supply chain and deployment of lean manufacturing for dynamic production and supply of customised products — all these aided by the deployment of IT applications,” says RN Mukhija, president, operations EBG, L&T.

Probably the greatest transformation has been brought about by a change in workers’ mindsets and an improved work culture. While problems still exist, there is a substantial change in the attitude of a work force that wasn’t always flexible, and who are, themselves, feeling the impact of globalisation in Indian industry.

Research by ET Intelligence Group confirms that a big part of the change is also attributable to the entry of matriculates/graduates into the work force, who have a better understanding of the changes happening all around and the consequences of a rigid stand. A statistic to prove the point is the substantial decline in the number of industrial disputes. As per CMIE data source, the number of recorded disputes fell from 1,825 in 1991 to 1,166 in 1996 to 489 in ‘03, the latest available.

Sameer

Walmart to enter India soon.

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Delhi/Bangalore: Speculation is rife that the world’s largest retailer, the $285 billion Wal-Mart Stores Inc, is not keen to wait for the government’s green signal on foreign direct investment in the retail sector. Apparently, the retail colossus from Bentonville plans to set up its first store either in Bangalore or Gurgaon based on a cash-and-carry format—something that Indian laws currently permit.
Wal-Mart’s cash-and-carry brand, Sam’s Club, is likely to be set up within the next 10-12 months, sources said. Sam’s Club will be the second global cash-n-carry format, after German retailer’s Metro AG’s debut in Bangalore two years ago. An email to Elizabeth Keck, director, international corporate affairs, Wal-Mart in the US went unanswered.
A senior executive, approached by Wal-Mart to head this business in India, said, “They want to establish a presence in the country either way. To begin with, they plan an one-off cash-andcarry store which will strictly operate on the business-tobusiness model.’’
According to sources, Wal-Mart wants to adopt a dual strategy for India— B2B cash-n-carry formats, followed by hypermarkets in the post-FDI scenario.
Sources said: “Since Wal-Mart is not keen on entering India through the franchise route, it plans to stick only to the B2B, cash-and-carry route, till FDI clearance is given. Through the B2B route, they will supply to the unorganised sector. This will complement Wal-Mart’s existing sourcing operations out of India.’’
Sam’s Club, a division of Wal-Mart, is the largest warehouse chain in the US serving small business owners and operators. Warehouse clubs are the youngest retail concept, having started in the early 1980s. It emerged as the fastest growing segment through the 1990s in the US. Sam’s Club and Costco, two of the largest club chains, already rival sales of the leading supermarkets, drug stores and mass merchants, with the exception of Wal-Mart super stores.
These warehouse clubs cater to small businesses and retailers, who buy their products at a huge discount over the market price. Spread over an area in excess of 6500 sq mt—the size of the first Metro store in India—these clubs are able to price their products very low because of sheer economies of scale in sourcing.
For the past few months, it has been lobbying aggressively with the government to open up foreign direct investment in retail. But the government has been unable to build political consensus on this sensitive issue, particularly with the Left.
Recent reports, however, suggest that the government is exploring various options—including allowing foreign retailers restricted entry to about 10 cities and a cap of 49% on foreign holding. But sources said that the current debate over FDI in retail is likely to drag on for a few more months.
Meanwhile, Wal-Mart is stepping on the gas. It is setting up additional procurement offices in Delhi and Mumbai, expected to be operational by next year. Wal-Mart has targeted sourcing products worth $1.5 billion from India this year, against last year’s $1.2 billion.

Sameer

Mumbai Metro Rail
Financial bids by November 16





The three shortlisted bidders for the Mumbai Metro Rail Project have been asked to submit their financial bids by November 16, 2005. The Mumbai Metropolitan Region Development Agency hopes to finalise the preferred bidder by end-2005 and physical work is likely to begin by April 2006.
Giving details on the selection process, MMRDA officials stated that once the preferred bidder is selected, a special purpose vehicle would be formed to implement the project in which the bidder will have a stake of 74 per cent with MMRDA holding 26 per cent.
The three shortlisted bidders represent consortia led by Larsen & Toubro, Reliance Energy and IL&FS (see table).
The SPV will develop the elevated 15-km Versova-Andheri-Ghatkopar link with 14 stations en route that represents one of the three lines contained in phase-I of the project. MMRDA further added that the SPV would have to develop the project within five years from the date of finalization of agreement, failing which MMRDA is liable to invoke a penalty-cause. Likewise, the developer is also entitled to a performance bonus should the project get commissioned within five years. The project will be developed on BOT basis for 30 years.
Elaborating on the other two lines of phase-I, MMRDA officials informed that field work for the 13-km Mahim-Kurla-Mankhurd line with 11-km of elevated track was in progress while the technical report for the 36-km Colaba-Charkop line (10 km underground and 26 km elevated) was already submitted to the government. The modalities for the development of these two lines are being finalised.
The Mumbai Metro Rail Project in its entirety envisages 146 km of rail network (114 km of which would be elevated) to be developed in three phases. The project, targeted for completion by 2021, is estimated to cost Rs 19,500 crore, at current prices.

Consortium Leader
Other members

Larsen & Toubro
Gammon India, Siemens AG, Bharat Earth Movers

Reliance Energy
Connex (France), Metro Rail (Hong Kong)

IL&FS
Italian Thai Developers, Consolidated Transport Network, Unity Infra Projects, Skanska Cementation






[26 September 2005]



http://www.projectsmonitor.com/detai...sp?newsid=9711

Sameer

The director of Ikea was also present in Delhi and Mumbai last week wanting to set up a similar system to Wal Mart until the commies die and then FDI in retail is allowed.

Speaking of Mumbai there is a plan to build a luxuary mall close to Juhu beach area or brandra where only expensive designer clothes will be sold.

Versache, Prada etc will open up. While these clothes have been available in India for years now through secondary stores, these will be the first Italian designer only stores...

Harris Neutral

I know India is amonght the top 10 world economies.... but come on see it the other way. a country bearing a population of 1100 million will have a good overall economy but when u compare it with population, then GDP/capita is only around 500 US$. Which means it is amongst the poorest countries in the world. India is the poorer then Sri Lanka, Pakistan, Maldives, China, Bangladesh, AND OFFCOURSE REST OF THE WORLD.... Ha ha... maybe India is ahead of some Afrricans and minor nations. But dont worry u will get better by year 8000 AD

Jay

Hey @ss clown, look at this...

http://www.cia.gov/cia/publications/.../2004rank.html

__________________
A grain of wheat eclipsed the sun of Adam !!

Vaman

Hes a packie pretending to be american with the sole intent of trolling.

Dont sweat it Jay.

Sameer

jay dont worry about him, his Pakistani per capota comment reminds be of the recfent thrad where a Pakistani comissioner claimed that Pakistan had grown by 8% for the last 3 years.

Such jealous people only make me proud that we are fustrating them so much that they need to sign up and post something negative.

Sameer

To the socialist nay sayers of free trade, here you go. Its only the begining.

http://economictimes.indiatimes.com/...ow/1155066.cms

Be desi, buy phoren: India keeps the West busy

INDIATIMES NEWS NETWORK[ WEDNESDAY, JUNE 29, 2005 02:06:28 AM]
NRI Special Offer!
All those gora doomsayers can eat crow! Indians are not stealing Western jobs . In fact, because of rising Indian demand for a range of goods, jobs are being created in a number of countries across the globe, the US included. Manufacturing units in foreign countries are buzzing with activity producing aircrafts to computer hardware, all to match the growing demand amongst Indians.

Emerging as one of the biggest spenders in recent times, the Indian aviation sector has placed orders for over 350 aircrafts with a list price of about $26 bn. Currently there are 156 large carriers in service. India's booming aviation sector and the growing number of passengers has led to this huge demand.

The greatest surprise order has been by Delhi-based Interglobe Airlines for a hundred planes with a catalogue price of $6 bn. Kingfisher Airlines has ordered for five A380s ($1.4 bn) and Coimbatore-based Paramount Airline has ordered five Embrayer 170/175 aircraft.

While many aviation analysts in the country have their reservations about the success of India's private airlines, these orders promise a burst of activity and new jobs for manufacturing giants like Airbus, Boeing, ATR, Embraer, besides engine/component companies in Europe and the US. In the four days at Paris Air show, Boeing had won orders worth $2.8 bn while Airbus got orders worth $7.5 bn.

Thus, the boom in Indian aviation sector will help in keeping white and blue collar jobs in several Western economies as trade analysts observe that these orders will lead to acceleration in their production lines and hiring of people. Major carriers across the globe view India as a key market and are gearing up to tap this growth.

In an interview to a news agency, Interglobe promoter Rahul Bhatia refused to divulge details regarding their strategy to cope with the shortage of pilots in the country. However, in reply to questions, he said the airline would begin by "importing" senior pilots or commanders in a "significant proportion" in the first three years.

In the technology sector, the IT service market is around $600 bn and India gets only about 3 per cent of that. However leading global companies have realised the vast potential of this sector and are planning for a bigger share. According to Vinnie Mehta, executive director, Manufacturers Association of Information Technology, "In the PC segment almost 55-60 per cent of the products are branded while the rest come from the unorganised sector."

Among the big-name brands, Dell is a major player who supplies to Indian consumers. Dell does not manufacture in India and imports its products from Malaysia. Mehta says components are imported by-and-large from Taiwan, China, Singapore, South Korea and Malaysia. The size of the PC market in India in 2004-05 was close to 4 mn units and is expected to grow at 30 per cent in 2005-06.

Western manufacturers are also eyeing India's growing wireless telephony market. And for good reason. Some of the major global players - Nokia, LG, Samsung, Motorola and Sony Ericsson -- are present in India. The booming wireless sector, the world's fastest growing major mobile market, added 1.7 mn new users in May taking the total wireless base to 55.87 mn customers. This is just the tip of the iceberg as Indian cellphone service providers are busy expanding into rural areas.
The fast-maturing wireless market offers great promise to global handset makers as only five in 100 Indians own a mobile handset, compared with over a quarter in China, the world's largest mobile market. Keeping this increasing customer ratio in mind, it is interesting to note that most of the mobile sets sold in India are manufactured abroad. Thus these booming customer growth figures translate in to healthy revenue for the manufacturing countries.

For instance, Nokia, the world's largest mobile phone company sources its products for India from its manufacturing units spread across Finland, China, Hungary, Germany, Mexico, South Korea and the US.

By the end of its financial year in December 2004, Nokia's turnover from selling handsets and cellular networks in India stood at whooping Rs 7,502crore.
Fifth-ranked handset maker LG Electronics Inc has only recently started manufacturing in India. And that too only two out of its 12 mobile models presently sold in the country. The company imports most of its handsets from its parent unit in Korea.

Both Sony Ericsson and Motorola import their products from their manufacturing units spread across the globe.

Analysts estimate that between 30 mn and 35 mn handsets will be sold in the $3-bn handset market during 2005, compared with 17 mn last year. Back of the envelope calculations show that Nokia, with about 31 per cent share and the second leading, Motorola with about 19 per cent share in the market will sell about 9 mn and 6 mn handsets respectively.

Sudhin Mathur, general manager, Sony Ericsson, says: "The market as such is maturing, with the consumer demands moving towards more converged technology products. We are planning to launch a number of new handsets soon."
Indian lakhpatis, growing every year, are pushing the demand for expensive top of the line cars. You name it and it is sold here in India. Including the Rs 5 crore Maybach from DaimlerChrysler (only 1,000 of these are manufactured every year). And if you are slightly poorer then opt for Rs 2.5 crore Bentley's Arnage RL Limo.

The Indian automobile industry has witnessed a positive growth in recent years. The two primary factors for this rise, is the improvement in the living standards of the middle class and an increase in its disposable incomes.

Moreover, liberalisation steps, such as, relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies, initiated by the government of India, have played an important role in attracting several foreign players in this market. The institutionalisation of automobile finance has also made way for sustaining a long-term high growth for the industry

According to the Society of Indian Automobile Manufacturers (SIAM), the industry has maintained a growth of 20 per cent till May 2005, with passenger cars and utility vehicles growing around 13.32 per cent and 15.80 per cent respectively.

Giving Indian auto manufacturers a stiff competition are foreign manufacturers such as DaimlerChrysler, Fiat, Ford, General Motors, Honda, Hyundai, Skoda, Toyota and Volvo.

Hyundai imports two of its popular car brands -- Terracan and Tucson -- from its mother company in Korea. Terracan, launched in 2003, saw its import leap from 188 cars in 2003 to 392 in 2004. Till May, 2003 it has already imported 103 cars. Tucson was launched in April 2005 and already 298 cars have been imported to India by May end.

India's growing middle class, with its finger on the global pulse, has pushed the demand for foreign goods. So, the next time your foreign collaborator cribs about Indians stealing jobs, tell them about how our fancy lifestyles and appetite for consumer goodies keep Western manufacturing humming.
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It is also obvious that an aerospace enginner working for Boeing makes a heck of a lot more money than some political science grad who works as a customer service agent.
Free trade works, its just a bit too complicated for the idiotic journalists and politicians to understand and itis a long term process.

Observer

Re:'Sameer' on 10-04-2005, 01:04 PM Post #40, here

"On the contrary there is a proven statistical relationship between a stock market and the economy wherein the stock market in the LR follows the economy. ... At least thats what I learnt in Forecasting Financial markts in masters."

That was certainly a unique masters program.

Most other masters programs dealing with "Forecasting Financial markts", teach that the stock market is a leading indicator of the economy wherein the stock market leads the economy as stated by: 'Monk" on 10-04-2005, 11:01 AM Post #38 here.

Any comments?