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  • #46
    And some confirmation of the Noida super tower and description of the high rise trend picking up in India.

    http://www.atimes.com/atimes/South_Asia/GJ01Df02.html

    Priyanka Bhardwaj

    NEW DELHI - It is a US$1 billion project that will put India on the top of the world, literally. Plans are afoot for the world's tallest building, with 135 stories, at Noida, a satellite township on the outskirts of the capital, New Delhi. The skyscraper is a seen as a fitting epitome of a rapidly growing and resurgent India - hub of outsourcing for multinational firms, a service-led economy that's pulling up manufacturing as well and an information technology (IT) powerhouse, all of which have translated into a hyperactive real estate sector, with the mega skyscraper to show for it.

    The Indian skyscraper, to be built as part of the ambitious Noida City Center in the northern state of Uttar Pradesh, will be built on a 140-hectare plot and will be higher than the 508 meter-high Taipei 101 in the Taiwanese capital, currently the tallest building in the world. The Noida building is slated to be 710 meters (2,330feet) tall - 202 meters higher than Taipei 101. It will be designed to resemble the peaks of the Himalayas and is scheduled to be open for business by 2013. The building will contain a 50-floor five-star hotel, a 40-story glass atrium and 370,000 sq meters of shopping space.

    "New York in the '30s, Malaysia in the '90s and China today - all have used tall buildings to showcase their countries' achievements to the world," said Hafeez Contractor, a famous Indian architect who has designed buildings around the world. "We want this building to show to the world what India can do." Chairman and chief executive officer of the Noida Authority, Deo Dutt Sharma, said: "Aspects like cost and related activities are yet to be worked out." The authority has set up a six-member committee to work on the project and visit Kuala Lumpur, which boasts the world's now-second-tallest building, Petronas Twin Towers.

    The skyscraper, its planners hope, will be the tallest new indicator of India's economic prowess as the country jumps into the race with the likes of Taiwan, Malaysia and China, where seven of the world's 10 tallest buildings rest. These countries have a penchant for tall buildings and are known to compete with each other in outdoing heights. India, too, is looking to join this race to the top.

    Noida, Gurgaon, Bangalore, Hyderabad, Chennai and Kolkata lead the business and process outsourcing (BPO) boom in the country with several highrises in their midst. Gurgaon, for instance, is sprinkled with numerous office buildings, shopping malls and residential highrises in various stages of completion to cater to the ever-rising demand of the upwardly mobile middle class. Multiple tracts of land in Noida and Gurgaon, which were lying idle just a year ago, have suddenly sprung to life, being converted into residential or commercial property.

    Realty boom
    Noida skyscrapers and Gurgaon malls, of course, are just the tip of the real estate boom in the country that has also resulted in a more than 40% rise in realty prices in the past year. The construction boom is at an unprecedented scale in India to meet the soaring needs of India's high-tech sector. It's a building boom where 70-80% of the demand is being driven by software services and business and process outsourcing companies. According to a report by international property consultancy firm Cushman and Wakefield, in some of the micro-markets within Bangalore, Kolkata, Chennai and Pune, cities where IT jobs abound, property prices have gone up by almost 50%, leading to a huge pressure to meet pent-up demand.

    A similar growth trend is visible now in Tier II cities like Ludhiana, Chandigarh, Jaipur, Hyderabad, and Kochi, where several BPO companies have moved operations due to lower costs. Bangalore has moved from an IT back-office location to a full-fledged IT hub, with cutting-edge research combined with low value-added services. Business-led demand for commercial office space has fueled demand for residential and retail properties.

    Properties with the potential of being leased out to multinationals, large corporates, banks or embassies are the most in demand. In Mumbai and Delhi, lease rentals are as high as 10-13% of the value of a residential property and 13-14% for furnished apartments and offices. Residential property prices have gone up by 30-100% in Delhi. Most predict that 2005 will also witness growth in property markets but prices will not rise as steeply as in 2004.

    China attracts about 3.2% of its gross domestic product as foreign direct investment (FDI) in its real estate sector, while India draws a measly 1.1%. In order to catch up with China, the government has recently begun giving automatic permission, without requiring the usual FDI clearances, to 100% foreign-invested construction projects. Earlier, overseas firms were allowed in only after clearance from the highly bureaucratic Foreign Investment Promotion Board (FIPB). Foreign investors can now enter any construction development area, be it to build resorts, townships or commercial premises, but they will have to construct at least 50,000 square meters within a specific time-frame. Norms relating to the stipulated land area to be developed by foreign entities have also been eased, to 25 acres from 100. Several companies have announced setting up real estate funds with estimates indicating that realty funds are expected to raise in excess of $1 billion in the coming months, with expected returns of over 15% annually.

    According to Chesterton Meghraj Property Consultants, much of the investments will come in IT parks and residential projects. "We see companies from West Asia and Southeast Asia eyeing India's real estate sector. Interest to the tune of $2 billion has already been expressed after the recent announcement. The country's leadership position in back-office operations could trigger a requirement of 70 million square feet capacity in the next 2-3 years,'' Chesterton Meghraj director Santhosh Kumar said.

    Comment


    • #47
      Hyderabad is not a second tier city though the journo should get updated.

      Comment


      • #48
        Businessweek:
        by manjeet kripalani

        India: A Quiet Shopping Spree
        So far, foreign companies being bought by Indian players are small -- but that's likely to change

        China raised a storm of controversy in the U.S. earlier this year when its cash-rich corporations announced their intention to acquire several American companies, including oil producer Unocal Corp. and appliance maker Maytag Corp. (MYG ). But while China was bidding for -- and losing -- overseas acquisitions, another big Asian country, India, was also investing abroad, but with a minimum of rancor.
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        Indian companies, which had a very small presence in foreign locales just a few years ago, have inked 62 overseas deals worth $1.38 billion so far this year, buying up a variety of foreign outfits, from engineering design house INCAT International in Britain to Valeant Pharma in the U.S. That compares with just $202 million in deals in 2002. The Indian purchases have flown under the political radar because most of them are small -- the average price of recent Indian acquisitions is just $30 million -- and they usually don't involve big-name companies.

        Still, the numbers are adding up -- and a buoyant Indian stock market is helping. "Every day, even small-cap and mid-cap companies come to us wanting to buy companies overseas," says Manisha Girotra, India country head for UBS (UBS ), which advises on such purchases. "Everyone wants access to new markets and to leverage India's low-cost production base."

        Surprisingly, the biggest plays have not come from India's vibrant tech and outsourcing sector, which, analysts say, has a sound domestic business model and doesn't see the need to travel boldly abroad. The big moves are coming from more traditional industries: telecommunications, pharmaceuticals, auto parts, and other manufacturing businesses that want to secure export markets. Indeed, the biggest deal so far this year is an odd one: Bombay-based TV maker Videocon International Ltd. bought the global color-picture-tube business of France's Thomson (TMS ) for $289.8 million. Yes, picture tubes are decidedly old technology, but Videocon, one of the largest manufacturers of picture-tube glass, plans to supply its product to the Thomson operations and integrate the businesses.

        Most of India's recent acquisitions involve more modern technology. Leading the charge are drugmakers such as Sun Pharmaceutical Industries, Nicholas Piramal India, and Matrix Laboratories. They employ top Indian-trained scientists and technicians and have become rich producing generic drugs, mostly for local use and other emerging markets.

        Now India's new patent legislation, which adheres to international rules, has forced Indian pharma to focus on research and development of new drugs, like its Western counterparts. Swati Piramal, chief scientific officer of Nicholas Piramal, estimates that the drug industry will raise more than $3 billion in the stock market in the next year for overseas acquisitions, which will facilitate research collaborations and "cross-border brain transfers." In the biggest pharma deal this year, Matrix bought Docpharma, a Belgian maker of generic drugs, for $263.4 million. It followed up on Sept. 26 by buying 60% of Chinese bulk pharmaceutical firm Mchem for an undisclosed sum.

        Ten years ago, India's overseas gold rush would have been impossible. The government in New Delhi imposed severe restrictions on the export of the country's foreign exchange -- in part because there wasn't much of it. Today, India's booming tech, auto, and pharma businesses have attracted a flood of foreign investment. The country holds reserves in excess of $140 billion, and curbs on foreign investment by Indian companies are largely gone.

        Moreover, Corporate India over the last decade has aggressively restructured itself, making management more professional, and increasing efficiencies. In a long list of sectors, including telecom, auto and auto-parts manufacturing, pharma, and commodities like steel and aluminum, Indian companies are globally competitive. At the same time, they still lack the expertise they need in overseas marketing and distribution. To fill the gap they're pursuing deals in the U.S., Europe, and Asia. Given some of India's built-in advantages -- such as its enormous output of skilled engineers -- its global reach can only grow. Predicts Amit Chandra, joint managing director for DSP Merrill Lynch Ltd., "the next three to five years will see the emergence of Indian multinationals."

        The country already boasts two successful multinationals: the $7.6 billion Aditya Birla Group, and the $17.6 billion Tata Group. Birla has long had overseas operations in palm oil and rubber for car tires, is the world's lowest cost producer of aluminum, and recently bought two copper mines in Australia. But more ambitious is Tata, a conglomerate that includes telecom, steel, autos, hotels, tea, and technology. In the last five years, various Tata companies have spent $1.1 billion buying Britain's Tetley, U.S. telecom network operator Tyco Global, and INCAT. And it was Tata that executed two of the past year's toniest deals: It put down $50 million for a 30-year contract to manage the Pierre Hotel on New York's Fifth Avenue, and it bought a large stake in one of Manhattan's hippest fusion restaurants, Spice Market. Tata already runs a chain of 71 mostly five-star resorts from India to the Middle East to Europe.

        For smaller Indian companies, overseas acquisitions are the road to global sales. Way back in 1997, India's Sun Pharma, with 2005 sales of $305 million, bought Caraco Pharma Labs, a money-losing producer of generic drugs in Detroit. Sun imposed a ferocious cost-saving regimen on Caraco and successfully turned it around. Now it is one of Sun's gateways to the U.S. generic market. The company has done the same for two other U.S. brands it bought recently.

        India's auto-parts companies are expanding, too. Pune-based Bharat Forge Ltd., the world's second-largest forging company for auto parts after Thyssen Krupp, which had 2005 sales of $460 million, on Sept. 20 bought Sweden's Imatra Kilsta and its British subsidiary, Scottish Stampings, for an estimated $57.5 million. It was the group's fourth foreign purchase in 21 months. "Each acquisition gave us something new -- access to the new passenger-car market, to the global market for aluminum components, to the U.S. pickup-truck market, to the engine business in Europe," says Amit Kalyani, Bharat Forge's executive director. "To them we offer technology, money, and a strategy to grow their business worldwide." Ditto with Mahindra & Mahindra Ltd., which plans to use acquisitions to become the world's largest tractor maker.

        For now, India's overseas strategy involves small purchases and big ambitions. But as Indian companies grow larger and more confident, that's likely to change. In coming years, analysts expect big overseas acquisitions by the likes of private telecom giant Bharti Tele-Ventures Ltd. and state-controlled oil majors such as Oil & Natural Gas Corp., which is aggressively searching for petroleum reserves. It won't be long before India raises its global corporate profile and, like China, has to worry about the political impact of its urge to merge.

        Comment


        • #49
          McKinsey, the global consultancy firm, has mooted an eight-point reform plan to push India’s growth to the 8-10 per cent band from the current 7 per cent. And the prescription involves hard action in politically sensitive areas like labour reform and opening up the retail sector, besides bolder moves on privatisation.

          Devoting a special edition of its quarterly journal to India, McKinsey says India has ascended the world stage and laid the groundwork for rapid growth — even if its progress on creating a world class economy is “often obscured by the achievements of neighbouring China”.

          Even so, it’s time now “to unlock India’s true potential”. As McKinsey puts it: “Having picked the low-hanging fruit, India must find the resolve to deregulate politically sensitive sectors — particularly retailing, banking, the news media and defence.”

          On the controversial issue of labour reforms, it makes out a case for free use of contract labour for all work and repeal of the law forcing companies with more than 100 workers to obtain state approval before cutting jobs. It argues that simplified labour laws will unleash unprecedented flows of foreign direct investment.

          As for the other ticklish issue of opening the retail sector, it claims that exposing the sector to world-class scale, technology and capital will not lead to greater unemployment but will help workers to find jobs that add more value.

          Dealing with privatisation, McKinsey says the government could consider creating a trust or a special purpose vehicle to act as a holding entity like Singapore’s Temasek. Once the assets of public undertakings are transferred, the holding company can go public, effectively diluting the state’s share in the companies.

          On infrastructure, the consultancy firm says key areas like power, water and sewerage, railways and airports “remain troublesome, in part because intransigent state governments often block progress”. It also focuses on land reform, urban renewal, asset recovery and enforcement of measures to protect intellectual property.
          http://hindustantimes.com/news/181_1511753,0002.htm

          Comment


          • #50
            A US-based infrastructure company on Thursday unveiled plans to invest $1 billion in Indian real estate in what is being billed as the largest foreign direct investment (FDI) in the newly liberalised sector.

            Royal Indian Raj International Corporation (RIRIC), a Nevada-based company promoted by people of Indian origin, is firming up plans to build integrated townships and planned cities in the country.


            Quote:
            "We have got into a contract to acquire nearly 5,000 acres of land near Mumbai, 3,000 acres near Delhi, 5,600 acres near Bangalore and another 5,000 acres near Kolkata," Benjamin claimed.


            NRI group plans biggest FDI in Indian real estate

            http://www.hindustantimes.com/news/5...1600060001.htm

            Comment


            • #51
              VIENTIANE, Sept. 30 (Xinhuanet) - Economic ministers from the 10-member Association of Southeast Asian Nations (ASEAN) and India agreed here Friday that negotiations on a free trade area (FTA) between the two sides should be sped up in the coming months, an Indian minister said.

              Senior economic officials from India and ASEAN will have two more talks from now to the 11th ASEAN Summit to be held in December in Malaysia to "resolve the issues separating both sides,especially those regarding the rules of origin (ROO)," E.V.K.S Elangovan, Indian minister of commerce and industry, said after the 4th consultations between his ministry and ASEAN economic ministers.

              Treasuring private sector's involvement in the ASEAN-India engagement, the ministers also appealed for closer interaction and collaboration between business communities and government officials towards the realization of the FTA.

              Noting the slow process of setting up an ASEAN-India Regional Trade and Investment Area, including a free trade area, as specified in the Framework Agreement Comprehensive Economic Cooperation between ASEAN and India signed in 2003, the ministers agreed to push back the date for the FTA one year to Feb. 1, 2007,ASEAN General Secretary Ong Keng Yong said after the consultation, noting that the ROO issue seems to be the main cause.

              The Indian side put forth the twin criteria of determining ROO,namely the value addition method and change in tariff heading (CTH), he noted, adding that he 40 percent domestic value addition in goods is generally applied in the world.

              Rules of origin are designated to prevent third countries from taking advantage of a FTA between two other countries. If a goods does not meet the origin criteria, it is deemed as originating from a third country and cannot be traded under the FTA.

              ASEAN members are reluctant to accept the CTH criteria. CTH means that a certain products entering a FTA member economy will go through sufficient value addition to become another product, which will bear a new tariff head under the International Harmonized System of Customs classification, before being exported.

              Setting up the ASEAN-India FTA in goods is targeted for completion by Dec. 31, 2011 for Brunei, Indonesia, Malaysia, Singapore, Thailand and India. For the Philippines, Cambodia, Laos,Myanmar and Vietnam, the target is on Dec. 31, 2016.

              ASEAN-India trade soared 48.2 percent on year to 5.5 billion USdollars in the first quarter of this year, the Indian minister said, noting that last year's respective figures were 40.8 percentand over 17.6 billion dollars. Enditem
              http://news.xinhuanet.com/english/20...nt_3567158.htm

              Comment


              • #52
                http://www.business-standard.com/com...t=0&leftindx=3
                India’s trade deficit widened three-fold to $15.80 billion in the first quarter of 2005-06 from $5.17 billion a year earlier on a surge in capital goods imports and an inflated crude oil bill on account of a rise in prices globally.


                The crude oil prices (Indian basket) averaged $49.2 per barrel in April-June 2005 as against $34.1 a barrel in the first quarter of the last fiscal.


                Exports rose to $21.75 billion in April-June 2005 $17.84 billion in April-June 2004. The imports rose to $37.56 billion in April-June 2005 from $23.01 billion in the first quarter of 2004-05.


                The non-oil imports comprising items such as capital good and industrial machinery rose by 77.9 per cent while oil import bill grew by 31 per cent in the reporting quarter.


                Petroleum products imports were in the range of USD 3.1 to 3.3 billion per month in April-June 2005. The monthly oil import bill Q1 of 2004-05 was lower between USD 2.1 to 2.7 billion.


                The merchandise exports grew by 22 per cent in Q1, although the rate of export growth moderated reflecting the high base in the previous fiscal. The merchandise trade deficit expanded to US 15.8 billion in Q1 of 2005-06 as against USD 5.2 billion in the April-June 2004..


                The sharp expansion in the trade deficit turned the current account into a deficit of $6.2 billion in April-June 2005 compared to a surplus of $3.4 billion a year earlier, according to Reserve Bank of India’s preliminary balance of payments data.


                The current account deficit was more than offset by surplus in the capital account, resulting in accretion to the foreign exchange reserves of $1.2 billion in Q1 of 2005-06. After factoring in the valuation changes, forex reserves declined by $3.1 billion to $138.4 billion by end of June 2005.


                The country held the fifth largest stock of foreign exchange among the emerging market economies and the sixth largest in the world.


                The dynamism of travel earning, sustained pace of software exports and other professional services and stable remittances from overseas Indians contributed to a healthy growth in gross invisible receipts.


                The private transfers comprising remittances from Indian working abroad contributed about 23 per cent of gross invisible receipts, RBI said.


                Gross invisible payments rose by 75 per cent in April-June 2005. The rise in outbound tourist traffic, transportation and insurance payments and demand for business services such as consultancy, engineering contributed to payment outflow.


                The net capital inflows at $7.1 billion were driven mainly by foreign direct investment, portfolio investment and external commercial borrowings. (ECBs) and banking capital . The FDI increased to $1.05 billion in Q1 from $717 million a year ago. Much of FDI went into cement, sugar, plastic, synthetic and rubber industries.


                The portfolio investment showed over 10-fold rise to $864 million from USD 81 million. FII inflows recorded a turnaround in June with a net inflow of $1.2 billion. Inflows through American and Global depository receipts also remained strong in the quarter.


                The NRI deposits showed net small positive inflows in April-June 2005 as against net outflows of $1.77 billion. The short-term credit showed net outflow as oil companies’ stepped-up their recourse to domestic financing and accelerated repayments.



                BUT NOTICE THE FOLLOWING IF YOU ARE CAREFUL

                The non-oil imports comprising items such as capital good and industrial machinery rose by 77.9 per cent while oil import bill grew by 31 per cent in the reporting quarter.

                Expect good growth in manufacturing and trade in coming quarters, i will say it GDP growth for the year will surely be beyound 7.3%.

                Why?
                1st quarter is always the slowest quarter in india but yet it went beyound 8%, it was merely 5.6% for Q1 OF 2004.
                Q2 and Q3 have alwasy tended to be high because of harvest and festivals etc and Q4 is always a quarter when everyone is trying to push growth as high as possible to meet targets.

                India is on the rise, make no mistake, its amazing thatwith limited reforms, we are able to do so much, now imagine an India with reformed labor laws and 51% FDI in retail.....

                Comment


                • #53
                  Take out 2003 when we suffered a severe drought and 2001 when there was a border dispute with our best buds, our economy has been breaching the 7% mark regularly now, the new Neo Hindu rate of growth is impressive but we can do much more.

                  Speaking of growth, the population growth rate has declined to 1.4% and the Govt has started to penalize civil servants who get a third child.

                  We need such strong steps like the Chinese have done in certain areas.

                  VAT is being implemented across states now, the BJP is realizing that it works so their states are implementing.

                  IF WE CONTINUE TO GROW LIKE THIS, WE WILL BREACH THE 1 TRILLION DOLLAR MARK IN REAL TERMS IN THE SECOND QUARTER OF 2008.

                  Comment


                  • #54
                    Agriculture's Share in GDP down to below 20% for the first time ever. The sign of things to come. India is industrializing rapidly without doubt.

                    http://economictimes.indiatimes.com/...ow/1257270.cms

                    NEW DELHI: Indian economy, which grew by 8.1 per cent in the first quarter, will clock a growth rate of 7 per cent for entire 2005-06 against 6.9 per cent last fiscal, economic think tank Institute of Economic Growth (IEG) forecasts in its latest report.

                    Meanwhile, inflationary expectations still persist in the economy given the growing money supply and high world oil prices, IEG said in its latest Monthly Monitor.

                    Although both industry and services sectors are expected to be growing below compared to 2004-05, it is still above the average growth, IEG said.

                    Agriculture, which has shown a growth of 2 per cent in the first quarter of this fiscal and whose share in the total GDP fell below 20 per cent for the first time, is expected to do better this year, particularly in the rabi season compared to last year, it said.

                    The institute predicted that wholesale prices-based inflation rate, which was 3.75 per cent in the middle of September, would stand at 4.15 per cent, 4.4 per cent and 4.8 per cent for October, November and December, respectively.

                    Industry, which grew about 9.6 per cent in Q1 will not be able to sustain the growth and end up growing at 7.2 per cent during the current fiscal, the economic think tank said.
                    The growth of index of industrial production (IIP) fell to 6.7 per cent in July, 2005 compared to 11.7 per cent in the previous month, it said.



                    Negative growth in both mining and electricity sectors by 0.4 and 1.2 per cent respectively has led to this fall in overall IIP growth, the journal said.

                    This fall in IIP growth could be an aberration as this was the consequence of devastating rainfall in the West of India, IEG said. But the overall growth in industrial sector for 2005-06 is dependent on the external demand, it added.

                    Economy grew by 6.9 per cent last fiscal with agriculture posting a 1.1 per cent growth, and industry and services registering a 7.6 per cent and 8.9 per cent growth, respectively.

                    On rising WPI-based inflation rate to 3.75 per cent in the middle of September compared to 3.13 per cent in the second week of August, IEG said the increase is not only due to recent hike in the domestic fuel prices, but also is fuelled by the rise in the prices of fruits and vegetables, sugar, cement and iron and steel prices, all of which have rose by above 8 per cent.

                    In fact, the latest WPI inflation stood at 3.97 per cent during the week ended September 24.

                    The economic think tank said money supply growth has started rising. Currently M3 is growing at 15.7 per cent which is mostly due to growing non-food credit to commercial sector backed by the strong business confidence.

                    This growth in M3 is despite the decline in the pace of forex accumulation, it said.

                    However, the rate of inflation, based on consumer prices index for industrial workers, has decreased from 4.06 per cent in July to 3.45 per cent in August.

                    In August 2004, it was 4.61 per cent, IEG said, adding the impact of rising wholesale prices would be certainly reflected in the retail prices, although with a lag.

                    The economic think tank predicted the CPI inflation rate to hover around 3.6 per cent in September, October and November.
                    "Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except all those others that have been tried from time to time. "

                    "Although prepared for martyrdom, I preferred that it be postponed."

                    Sir Winston Churchill

                    Comment


                    • #55
                      August IIP out!

                      August IIP up 7.4% as against July 6.7% however this is still lower than the Q1 IIP of almost 10%.

                      http://www.indiadaily.com/breaking_news/48079.asp

                      Mining slows down industrial growth to 7.4% in August for India

                      A sharp slowdown in mining sector lowered industrial growth to 7.4 per cent during August 2005 as against 8.6 per cent in the same month last fiscal.

                      Growth in mining sector declined to a negative 1.3 per cent during the month compared to 4.4 per cent in August last fiscal. Manufacturing growth slowed down as well to 8.2 per cent from 9.1 per cent a year ago, according to the latest data released by the government today. The overall Index of Industrial Production would have been even lower had it not been for a slight upturn in the electricity sector which grew 7.8 per cent during the month compared to 7.4 per cent in August last fiscal. This is the second successive month of slower industrial growth on yearly comparative basis. Industrial sector had grown 6.7 per cent in July 2005 after posting strong growth of 10.8 and 11.7 per cent in May and June respectively. On a cumulative basis, the Index of Industrial Production for the first five months this fiscal grew by a higher 8.8 per cent compared to 8.0 per cent in April-August 2004. During April-August this year, manufacturing sector grew by 9.8 per cent as compared to 8.4 per cent during the same period in 2004-05. The growth in electricity sector was slower at 5.9 per cent in April-August this year against 7.7 per cent in the year-ago period. The growth in the mining sector also dipped to 2.0 per cent during April-August 2005 compared to 5.2 per cent during the corresponding period last fiscal. As many as 13 of the 17 industry groups monitored under the IIP have shown positive growth during August this year. ''Other manufacturing industries'' recorded the highest growth of 24.6 per cent, followed by 21.1 per cent in ''basic metal and alloy industries'' and 14.7 per cent in ''textiles''. As per use-based classification, except basic goods growth in all the other five segments - capital goods, intermediate goods, consumer goods, consumer durables and consumer non-durables - slowed down during August this fiscal. Basic goods'' grew by 8.4 per cent in August against 5.2 per cent a year ago. It grew 7.0 per cent in April-August this year compared to 5.0 per cent in the same period in 2004-05. Capital goods recorded 8.9 per cent growth compared to 13.5 per cent a year ago. In the first five months this fiscal, the sector registered a growth of 11.8 per cent as against 13.0 per cent a year-ago. In the case of intermediate goods, growth slipped to a meagre 2.5 per cent in August against 4.9 per cent in August last year. During April-August this year, the sector grew 3.2 per cent as compared to 8.6 per cent a year ago. Growth in consumer goods stood at 10.6 per cent in August as against 14.4 per cent in August 2004. During April-August 2005-06, growth in consumer goods jumped to 15.1 per cent from 9.3 per cent in the year-ago period. Consumer durables and non-durables grew by 13.1 per cent and 9.7 per cent in August 2005 as against 20.1 per cent and 12.4 per cent respectively in August 2004. In the first five months this fiscal, the sectors grew by 13.2 and 15.8 per cent as compared to 15.4 per cent and 7.3 per cent respectively in April-August 2004-05.
                      "Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except all those others that have been tried from time to time. "

                      "Although prepared for martyrdom, I preferred that it be postponed."

                      Sir Winston Churchill

                      Comment


                      • #56
                        Indian Economic outlook for 2005-06 upgraded to 7.3%

                        http://news.xinhuanet.com/english/20...nt_3578182.htm

                        India expected 7.3% GDP growth for 2005-06
                        NEW DELHI, Oct. 3 (Xinhuanet) -- Indian economy will clock an impressive 7.3 percent GDP growth for the fiscal 2005-06, at the back of strong prospects of Kharif production and reasonably buoyant industrial and services sector performance, the Confederation of Indian Industry (CII) has predicted.

                        In its latest State of the Economy Report, CII has said that the minimum support services (MSP) announced by the Indian government for the 2005 Kharif season had a positive impact, which resulted in an increase in area under sowing for major crops.

                        The improved South West monsoon has also aided the recovery in the progress of Kharif sowing, leading to an improved Kharif prospects for 2005-06, with an increase of 3.2 percent, a marked recovery from 1.1 percent growth recorded in 2004-05.

                        The report also pointed towards a better than expected performance of Index of Industrial Production (IIP) which grew 9.3 percent in April-July 2005-06. According to the report, a strong growth in non-food credit, growth in capital goods production and imports are perhaps the factors supporting sustained growth for the industrial sector.

                        Inflation is expected to be on the higher side of its 5-5.5 percent projections due to rising crude oil prices, said the report.

                        The report has brought out that the Indian power sector is faced with problems related to inadequate capacity expansion, inefficiency of existing plants, transmission and distribution losses and bad financial health of State Electricity Boards, all contributing to the rising gap between demand and supply of power.
                        "Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except all those others that have been tried from time to time. "

                        "Although prepared for martyrdom, I preferred that it be postponed."

                        Sir Winston Churchill

                        Comment


                        • #57
                          I recently figured that a 1% change in the ratio of (non agricultural sector gdp:agri gdp) leads to 0.27 increase in overall gdp growth after OLS regression on some other key variables as well.

                          There are still issues for me to sort out with the above as the relationship must be delinearized but in the past at least, over the last 20 years, this has been statistically true.

                          Comment


                          • #58
                            The world's largest steelmaker, Mittal Steel, has signed an agreement to invest $9bn in a steel project in the eastern Indian state of Jharkhand.

                            This will be the second biggest foreign investment in India's steel sector.

                            The company will also study the possibility of setting up a 2,400 megawatt capacity power plant and a township for employees.

                            India's demand for steel is growing rapidly, with increased demand for cars, fridges and building materials.

                            'Good infrastructure'

                            The chairman of Mittal Steel, UK resident LN Mittal, said the project would be developed in two phases of six million tonnes each.

                            The first phase is expected to be completed within 48 months of the agreement of the detailed project report and the second within another 54 months after completion of the first phase.

                            "Steel consumption in India is said to experience considerable growth over the next decade and therefore it is a natural market for Mittal Steel to build a production presence," said Mr Mittal.

                            "Jharkhand is well known for its raw material reserve and good infrastructure and it is an excellent location for setting up this type of green field venture."

                            He also said there was no need to export or import iron ore since there was enough available in Jharkhand, the Press Trust of India news agency reports.

                            The company said a final agreement would be signed after completion of a detailed project report.

                            South Korean steel maker POSCO decided to invest $12bn in the eastern Indian state of Orissa earlier this year.

                            India has been slow to open its markets to foreign investment, and privatisations in key industries, such as oil and heavy engineering have proved politically sensitive in recent years.

                            India's demand for steel is growing rapidly as strong economic growth has increased demand for cars, fridges and building materials.

                            The market for steel is also strong elsewhere in Asia, particularly in China, contributing to high steel prices in the last two years.

                            Tata, one of India's top producers, earlier this year clinched a deal to invest up to $1.2bn to build three steel plants and develop iron ore mines in Iran to boost supplies to India.
                            http://news.bbc.co.uk/2/hi/south_asia/4322612.stm

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                            • #59
                              Govt nod for 17 SEZs

                              The government today cleared 17 proposals for setting up special economic zones (SEZs), including one each by Ranbaxy, Zydus Cadila and Biocon with investments of at least Rs 3,000 crore. Proposals for two free-trade warehousing zones, to be set up by IL&FS at Kandla and Chennai, were also approved.

                              Biocon’s 80-acre biotech SEZ at Bangalore envisages an initial investment of Rs 1,200 crore. Zydus Cadila’s 12-acre SEZ in Gujarat would come up with an initial investment of Rs 375 crore, which was projected to rise to Rs 1,600 crore, officials said.

                              Ranbaxy proposes to set up an 80-acre biotech SEZ at Mohali in Punjab, with an initial investment of Rs 675 crore.

                              Similarly, Cognizant Technology’s proposal to set up an SEZ, spread over 28 acres in Chennai, with an initial investment of Rs 675 crore, was approved by the government. The company has informed the government that its SEZ will create 15,000 jobs.

                              Real estate developer DLF’s proposal for four SEZs was also cleared. While its proposed SEZs at Gurgaon and Chennai were cleared, those in Maharashtra and West Bengal were given an in-principle approval. An information technology SEZ by the Kerala government near Kochi was also approved.

                              A proposal by Oriental Textiles to set up an SEZ on 400 acres near Gurgaon also got clearance today. This SEZ is expected to generate another 15,000 jobs.

                              An IT SEZ near Pune and another SEZ by a consortium of shoe manufacturers near Chennai were cleared.

                              Officials said a port-based SEZ at Vallarpadam in Kerala was also cleared. The proposal had been awaiting clearance for over a year.

                              The government today also decided to insist on a minimum land area of 25 acres for IT, biotech and gems and jewellery SEZs because of a large number of proposals coming in, officials told Business Standard. The government has deferred its decision on 23 SEZs as they have been found to be too small in size.

                              Similarly, the area restriction for multi-product SEZs had been pegged at 1,000 hectares, officials said adding that the Board of Approval overruled a suggestion by the revenue department that the area limit for all SEZs should be 1,000 hectares.

                              http://www.business-standard.com/co...N&autono=202514


                              Reuters:INTERVIEW - India's 2005 gold consumption to rise 33 pct

                              NEW DELHI (Reuters) - Gold consumption in India, the world's largest importer, is expected to surge nearly 33 percent in 2005 to 850 tonnes because of higher incomes and good farm output, the World Gold Council (WGC) said on Thursday.

                              http://in.news.yahoo.com/051006/137/60g17.html

                              S&P: "The states' VAT is a clear winner."

                              India unlikely to meet fiscal deficit target - S&P

                              By Annapurni Hariharan

                              MUMBAI (Reuters) - Credit rating agency Standard and Poor's said on Tuesday India was unlikely to meet its fiscal deficit target of 4.3 percent of gross domestic product for the fiscal year to March 2006 due to increased expenditure.

                              Ping Chew, S&P director of sovereign ratings, told a news conference that India remained on a stable ratings outlook. S&P raised its India rating to one notch below investment grade in February.

                              http://in.news.yahoo.com/051004/137/60ezl.html

                              Comment


                              • #60
                                Originally posted by Sameer
                                I recently figured that a 1% change in the ratio of (non agricultural sector gdp:agri gdp) leads to 0.27 increase in overall gdp growth after OLS regression on some other key variables as well.

                                There are still issues for me to sort out with the above as the relationship must be delinearized but in the past at least, over the last 20 years, this has been statistically true.
                                Thats simply beacuse the Non-agri GDP has been growing at a much faster clip than the Agri-GDP.
                                The agri-GDP growth rate is very poor, hence the decline in their share of overall GDP. As the Agri-GDP gets supplanted with Non-Agri-GDP this translates into increased growth.
                                "Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except all those others that have been tried from time to time. "

                                "Although prepared for martyrdom, I preferred that it be postponed."

                                Sir Winston Churchill

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