BRIC, E7, Largest Emerging Economies

[hello_10]

BRICs Share Of World Economy Up Four Times In 10 Years
7/04/2012

The economies of Brazil, Russia, India and China account for 20 percent of the world economic output, and rising. That's up four fold in the last decade, according to a report released yesterday by the International Monetary Fund. :thumb:

Despite the growth, problems in the core economies had made the post-2008 world a difficult one for the big four emerging markets.

Their combined stock-market value has dropped to a three-year low of 16 percent of the total invested in global equities, according to data compiled by Bloomberg . Jim O'Neill , the chairman of Goldman Sachs Asset Management who came up with the term BRIC in a November 2001 research report, said that the pull back in equity values makes BRIC market stocks "irresistible," Bloomberg reported him saying on Wednesday. The last time the gap was this wide, in 2005, the MSCI BRIC Index jumped 53 percent in 12 months, more than double the gain in the MSCI All-Country World Index. :tup:

"Unless we are seeing a major collapse of those economies, it's a huge opportunity for investors," O'Neill told the newswire.

Audrey Kaplan, a fund manager at Federated InterContinental (RIMAX) said on Monday in an interview with Forbes that she had started investing in China for the first time in nearly years in the first quarter and is now overweight China and Brazil within the BRICs.

"You want to own a lot of these big names when they're cheap," Kaplan said about Brazil's large cap stocks which have underperformed the local BM&F Bovespa index all year. "We're getting back into these names because they are very attractive at their recent price levels."

According to Bloomberg, BRIC equity value, which includes locally-traded shares and ADRs, has dropped to $7.6 trillion from $9.5 trillion a year ago, when they made up 18 percent of the global total. Petrobras (PBR), Brazil's state run energy company, fell to the world's 39th-largest company by value from the 10th-biggest in July 2011. China Construction Bank's rank dropped to 20 from 12 while Rosneft , Russia's largest oil producer, sank to 106 from 70. India's ICICI Bank (IBN) has lost 17 percent of its market cap during the past year, compared with an average gain of 9 percent for global peers.

The long term trend of rising standards of living remains in place for the BRICs, but investors still have to contend with market volatility related to problems in the advanced economies.

Allan Conway, head of emerging markets at Schroder Investment Management, said the market still needs clarity on Europe. There's no clear direction yet in global equities as a result.

"In 2008, we beat the MSCI emerging markets index. The period we suffered most was 2010 when the market had no clear trend. Since then we've clawed back and are ahead by about 300 basis points over the MSCI EM and this year as of end of June up 250 basis points over MSCI EM. The challenge for us has been to stay ahead of the curve. If we wait for some incredible plan to come out of Europe, we miss 30 percent of the rally," he said. "The trick in the coming months are to look for the sign points that show we have moved away from kicking the can down the road and are moving to more long lasting structural changes."

Dedicated emerging market investment funds that have a heavy weighting in the BRICs have posted 16 straight weeks of withdrawals , losing a net $5.3 billion, according to Cambridge, Mass based fund tracking firm EPFR Global.

The BRIC economies are slowing. They've expanded by 4.8 percent on average during the first quarter, but that's down from nearly 7 percent last year.

BRICs Share Of World Economy Up Four Times In 10 Years - Forbes

BRICS Cable: Connecting Continents, brick by brick

Once completed the 34,000-km-long BRICS Cable will be the third longest undersea telecommunications cable in the world.

The quotient of success or failure of an international grouping is determined by the level of connectivity among members of the grouping and what steps the body has taken to bridge the gaps. On that count, BRICS has already cemented its place in the comity of nations.

A super ambitious BRICS project, already on, is a testimony to the grouping's high success quotient. The project is called BRICS Cable.

The project, scheduled to be completed by next year, is going to cost $ 1.5 billion, to be shared by the five member countries depending upon the work involved in each country. The grandiose nature of the project can be ascertained from the fact that once completed the 34,000-km-long BRICS Cable, stretching from Vladivostok in Russia to Miami in the US, will be the third longest undersea telecommunications cable in the world.

The grouping's leaders have acknowledged the strategic value of a new cable to directly link the 5 economies and at the 4th BRICS summit held in New Delhi in March 2012, the project was included in the joint declaration as a project of strategic importance. All the BRICS governments have already been consulted on the project and have given their in-principle support. Feasibility studies on the project began in March 2011 and were completed in less than a year. Besides, French-owned telecommunications construction firm Alcatel has finished the route survey.

How BRICS Cable Will Be a Game Changer

The BRICS countries – Brazil, Russia, India, China and South Africa – currently use hubs in Europe and the US to connect to one another. This inevitably means higher costs. More importantly, it leaves the BRICS countries in the hands of the European and American hubs managers and enhances the risks of data interception and theft.

The more networks you travel through, the higher are the chances of your data getting stolen or intercepted. For example, a call from China to Brazil may have to be routed through the US in two hops, or four or five different hops via Suez. The BRICS Cable project will end this as it will link the countries without having to route traffic through multiple hubs. :thumb:

These problems will become a thing of the past once the project becomes operational. It adds high strategic value to the entire BRICS grouping and sends a strong signal to the world that this grouping means business and has the technology, the resources, and more importantly the political will, to reduce dependence on the developed world.

Through this extensive fibre optic cable network the BRICS economies can enhance technology sharing, boost trade and facilitate financial transactions.

Advantage South Africa

Moreover, through the BRICS cable, the original BRIC members of the grouping will be able to establish a two-way avenue with 21 African countries currently using those systems. This in turn will enhance the scope of trade and economic ties between BRICS and Africa. :thumb:

In the process, the cable project will also inevitably lead to a tremendous rise in the stature of South Africa within Africa as South Africa would emerge a gateway between BRICS and the African continent.

No wonder then that South Africa is leading from the front in trying to see that the project is completed in soonest possible time. At a separate BRICS business breakfast hosted by South Africa, South Africa's President, Jacob Zuma, encouraged the attendees to support the project and play their role in fast tracking its execution.

The South African promoters – Imphandze Subtel Services (Pty) Ltd, a subsidiary of Imphandze Investments, in association with i3 Africa (Pty) Ltd– are in possession of the requisite telecommunications licences in South Africa to land, operate and maintain the undersea cable in South Africa. Following the outcome of the BRICS Summit in India, they are now in the process of formally inviting telecommunications operators and other potential investors in the BRICS countries and the USA to participate in the project.

The promoters have worked closely with reputed experts in the field of submarine cable systems and have come up with satisfactory feasibility studies. Axiom and Terabit Consulting – two global leading consulting firms in the submarine cable industry – carried out the market, traffic and commercial feasibility, while Alcatel-Lucent – the world leading provider of turnkey submarine cable systems networks – carried out the technical feasibility.

Challenges

It is an important strategic project for immense social and economic benefits to all BRICS countries. A challenge for the grouping in completing this task is that there are 12 participating countries, and agreements have to be signed with operators and governments in all the connecting countries. This is easier said than done as each of the 12 participating countries has its own sets of laws, much different from others.

BRICS Cable: Connecting Continents, brick by brick | Russia & India Report

 

[hello_10]

GDP Growth Rate of E7/BRIC for 2012

China: 7.80%

Indonesia: 6.00%

India: 5.40% :ranger:

Mexico: 3.80%

Russia: 3.60%

Turkey: 3.00%

South Africa: 2.60%

Brazil: 1.30%

https://www.cia.gov/library/publica...=India&countryCode=in®ionCode=sas&rank=50#in

India's manufacturing PMI up at 54.2 in February 2013 :thumb:

India's seasonally adjusted HSBC Purchasing Managers' Index (PMI) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – went up to 54.2 in February this year, up from 53.2 in January, to signal a further improvement in business conditions.

"Nevertheless, the index was below the long-run series average," a press release from HSBC said here today.

It said that, reflective of higher levels of total new business, production in the Indian manufacturing sector rose during February. The pace of growth was solid, and faster than that seen in January.

Almost 35% of monitored companies signalled increased output at their units, while 17% registered a fall, it said

The release said that, as has been the case for almost four years, the volume of incoming new work at manufacturing firms in India rose during February. With approximately 29% of monitored companies reporting higher levels of new orders and 14% noting a decrease, the pace of expansion was solid. Anecdotal evidence suggested that new orders increased in line with stronger demand, maintained product quality and the launch of new products, it said.

"A further rise in export orders was recorded, amid evidence of stronger demand from international clients. Despite posting a solid increase, total export business grew at the slowest pace in the current six-month sequence of expansion," the release said.

According to it, employment in the Indian manufacturing sector expanded slightly during February. Firms stated that payroll numbers were increased in tandem with higher production requirements. Nonetheless, backlogs of work rose during the month. However, the overall rate of accumulation was only moderate. According to panellists, higher levels of new orders and power shortages both fed through to the latest rise in unfinished business.

Continuing the trend that has been observed since April 2009, input prices increased in February, with the pace of inflation robust. Respondents indicated that raw materials including plastics and fuel all rose in price. Concurrently, output prices also increased. The rate of charge inflation was strong and the quickest in six months.

"Pre- and post-production inventories at manufacturers in India both increased during February. The rate of accumulation for purchasing stock was solid, but only slight for finished goods," it said.

Manufacturers increased their input buying during February, marking a 47-month sequence of expansion. Purchasing activity expanded solidly and at the quickest rate in nine months, it said.

Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "Manufacturing activity picked up on the back of stronger growth in domestic orders. Together with some replenishment of inventories, this lifted growth in output and purchases. Inflation pressures, however, remain firm, with input cost inflation holding steady and inflation of output prices picking up. The numbers underscore that the room for monetary policy easing is limited, even with progress on fiscal consolidation."

The HSBC India Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies.

India's manufacturing PMI up at 54.2 in February 2013 | NetIndian

 

[hello_10]

India with 122 billionaire ranks 5th in top 10 countries for billionaires
15 MAR, 2013

MUMBAI: The super rich will continue to get richer in the coming decade. The number of high net worth individuals in India with net assets of Rs 150 crore to Rs 160 crore is expected to more than double over the next 10 years, rising by 137% in Mumbai and around 120% in Delhi, says Knight Frank Wealth Report 2013.

The global property consultancy firm ranks India at 5th spot with 122 billionaires as of 2012 end in the top 10 countries for billionaires that are expected to increase to 225 billionaires with an 84% growth by 2022.

The report ranks Mumbai at the 7th spot with a total of 2,105 high net worth individuals in the top 30 global cities; while Delhi is at 11th spot with total 1,905 such super-rich individuals. By 2022, number of high net worth individuals in Mumbai is expected to increase to 4,988 with 137% rise; while Delhi is likely to see it growing 120% by then to 4,278.

"The rise of the Asian global cities is in parallel to what many are now calling "The Asian Century". With the historic shift in economic power towards Asia, its cities are undoubtedly going to become more influential in the coming years," said Nicholas Holt, Director Research, Asia Pacific, Knight Frank.

Across Asia, the number of HNWIs is set to rise by 88% over the next decade, the joint highest rate of growth in any world region. While New York and London top the list in the cities that matter to HNWI's, Mumbai stands only on the 38th spot of the top 40 cities.

"It is interesting to note that both Mumbai and Delhi are expected to grow at a high rate which is comparable only with fastest growing cities like Shanghai, Beijing, Rio De Janeiro and Sao Paulo," Samantak Das, Director Research & Advisory Services, Knight Frank India.

As per Knight Frank's luxury investment index, the super-wealthy are also set to step up their interest in "investments of passion" such as art, fine wine, classic cars, coins and watches this year, especially those in China. Knight Frank's luxury investment index shows that classic cars have seen the largest appreciation in value over the last decade, with an average uplift in price of 395%.

India with 122 billionaire ranks 5th in top 10 countries for billionaires: Knight Frank - The Economic Times

 

[hello_10]

the news as below doesn't surprise me....... India has to keep Indian Rupees value at somewhere close 1.0 INR = 1.5 Pakistan Rupees, and 1 Yuan = 10.0 INR, somewhere close to, of these currencies of its neighbors...... and until India makes it import expansive enough to be less imported this way, we will have bigger CAD in future...... and yes it will then need to bring the 1$ = INR 65 this way, which will then make the import of oil expansive too but we do know that India can't import more than what it already does. and until the imported products are made expansive enough to be less imported, the growing CAD will not be controlled .........

Q3 FY13 current account deficit at record high of 6.7% of GDP

Q3 FY13 current account deficit at record high of 6.7% of GDP - The Economic Times

 

[hello_10]

double post

 

[badguy2000]

forget bric or e7so called. Today.the most powerful counties in the world are still as same as they were in wwii,that are 5 main winners(p5 of undc) and 3 main losers(german japan italy)

 

[hello_10]

forget bric or e7so called. Today.the most powerful counties in the world are still as same as they were in wwii,that are 5 main winners(p5 of undc) and 3 main losers(german japan italy)

naah, we now find US very close to the state SU had got till 1990, and now they have to start destroying defence arms in the same way as Russia did since 1990, along with the ongoing defence budget cuts. the current defence budget which they can't afford for longer by just borrowing more debts

for example, Per Capita Income on PPP of Britain, Russia, China, India is as below, think, haven't the things changed to date? now US+EU economies are almost same as at 2008 level, while being heavily indebted now due to the debt they borrowed since 2008? while the emerging economies continue having decent growth even since 2008???? and don't forget, not only China registered 10%+ growth rate since 1990, but also India had on average 7% growth since 1992, and same is true in case of ASEAN, South America etc... things did changed during last 30 years :thumb: :ranger:

BRITAIN GDP PER CAPITA PPP at 1990, $15,650
United Kingdom GDP per capita PPP

RUSSIA GDP PER CAPITA PPP at 1990, $8013
Russia GDP per capita PPP

INDIA GDP PER CAPITA PPP at 1990, $873.76
India GDP per capita PPP

CHINA GDP PER CAPITA PPP AT 1990, $794.93
China GDP per capita PPP

 

[hello_10]

duplicate post

 

[badguy2000]

naah, we now find US very close to the state SU had got till 1990, and now they have to start destroying defence arms in the same way as Russia did since 1990, along with the ongoing defence budget cuts. the current defence budget which they can't afford for longer by just borrowing more debts

for example, Per Capita Income on PPP of Britain, Russia, China, India is as below, think, haven't the things changed to date? now US+EU economies are almost same as at 2008 level, while being heavily indebted now due to the debt they borrowed since 2008? while the emerging economies continue having decent growth even since 2008???? and don't forget, not only China registered 10%+ growth rate since 1990, but also India had on average 7% growth since 1992, and same is true in case of ASEAN, South America etc... things did changed during last 30 years :thumb: :ranger:

Well,india can not match uk or france,economicallyor militalily. Uk.france,japan and italy each has much powerfully industry chains than india. If necessory,either of them can store a military force more powerful than india soon

 

[hello_10]

Well,india can not match uk or france,economicallyor militalily. Uk.france,japan and italy each has much powerfully industry chains than india. If necessory,either of them can store a military force more powerful than india soon

yaah in comics

France is a small but a true military power, but economy not good enough to go beyond its own territory. and about UK, all in air, no strength neither good economy, only publicity by media is keeping it as a power. i do remember, 'Basra' of Iraq was known as the biggest reserve of oil, but British troops couldn't maintain hold on it as their training wasn't good

and bit more to your hypothesis, Indian Military is as capable as Russian Military, with the fact that russia shared their every key techs with India, along with the similar size of Indian military. from here, neither I could see whole EU could have any resistance against Russia during Georgia war 2008, nor the same is true even if whole EU put itself against India.....

please dont abuse Indian Military by comparing kids like France, UK, Germany.... India, China, US, Russia are the 4 "united states" of their region, similar to EU :ranger:

check the 3 links as below to get to know the ground reality, the real world :thumb:

=> http://defenceforumindia.com/forum/...5-countries-highest-military-expenditure.html

=> Global Firepower - 2013 World Military Strength Ranking

=> U.S./EU report says India third most powerful nation

 

[badguy2000]

yaah in comics

France is a small but a true military power, but economy not good enough to go beyond its own territory. and about UK, all in air, no strength neither good economy, only publicity by media is keeping it as a power. i do remember, 'Basra' of Iraq was known as the biggest reserve of oil, but British troops couldn't maintain hold on it as their training wasn't good

and bit more to your hypothesis, Indian Military is as capable as Russian Military, with the fact that russia shared their every key techs with India, along with the similar size of Indian military. from here, neither I could see whole EU could have any resistance against Russia during Georgia war 2008, nor the same is true even if whole EU put itself against India.....

please dont abuse Indian Military by comparing kids like France, UK, Germany.... India, China, US, Russia are the 4 "united states" of their region, similar to EU :ranger:

check the 3 links as below to get to know the ground reality, the real world :thumb:

=> http://defenceforumindia.com/forum/...5-countries-highest-military-expenditure.html

=> Global Firepower - 2013 World Military Strength Ranking

=> U.S./EU report says India third most powerful nation

Well,all p5 have complete industry chains and can arm themselve and make up weapon loss by themselves if necessory. however,either of india,brazil depend on imported weapons and can not make up wartime weapon loss.

 

[hello_10]

Well,all p5 have complete industry chains and can arm themselve and make up weapon loss by themselves if necessory. however,either of india,brazil depend on imported weapons and can not make up wartime weapon loss.

look, US and Russia are the leaders, France, UK are gone and China is catching up with US, Russia. while India is having very close term with Russia, and move in the same direction with a set speed........

for example, we all know that Rafale is the last home made aircraft of France . UK is on EFT Typhoon, which is in fact a German aircraft. like, just have a look on the UK's arms, all have technologies shared from US, EU and just no research on the future projects

and on the side of India, they are involved in 5th gen aircraft with russia from design to production phase. along with major home projects, full tech transfer is seen in all the major deals for missiles, submarines, frigates, destroyers, tanks, with 4.5th ge SU30mki and expected for Rafale too.... :thumb:

with that, have a look on the size of India, considering its GDP on PPP to be around $8.5trillions by 2012, while considering the method which was in applicable by both IMF, World Bank till 2006 as below. US, EU, Russia, China, India are the united states of their region :thumb:

Indian economy on PPP was already $5.16trillion by 2006, as per the factor used by IMF, World Bank both till then, the method which consider undocumented part of GDP also and it was in application since WW2. they changed this method for the last 5 years only :ranger:

"There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005, India's GDP at PPP is estimated at $ 5.16 trillion or $ 3.19 trillion depending on whether the old or new conversion factor is used," it said.

It's official: India's a trillion-$ economy - Times Of India

 

[badguy2000]

look, US and Russia are the leaders, France, UK are gone and China is catching up with US, Russia. while India is having very close term with Russia, and move in the same direction with a set speed........

for example, we all know that Rafale is the last home made aircraft of France . UK is on EFT Typhoon, which is in fact a German aircraft. like, just have a look on the UK's arms, all have technologies shared from US, EU and just no research on the future projects

and on the side of India, they are involved in 5th gen aircraft with russia from design to production phase. along with major home projects, full tech transfer is seen in all the major deals for missiles, submarines, frigates, destroyers, tanks, with 4.5th ge SU30mki and expected for Rafale too.... :thumb:

with that, have a look on the size of India, considering its GDP on PPP to be around $8.5trillions by 2012, while considering the method which was in applicable by both IMF, World Bank till 2006 as below. US, EU, Russia, China, India are the united states of their region :thumb:

Indian economy on PPP was already $5.16trillion by 2006, as per the factor used by IMF, World Bank both till then, the method which consider undocumented part of GDP also and it was in application since WW2. they changed this method for the last 5 years only :ranger:

Well,the problem of india is not it gdp or ppp ,but india's lack of industry chains,which is the base of independent defence might. Saudia is rich,but it is never a independent military force,because it has no industry. Russian gdp was less than brazil,but russia has much more mighty industry than brazil,thus nobody think brazil is more powerful than russia.

 

[hello_10]

Well,the problem of india is not it gdp or ppp ,but india's lack of industry chains,which is the base of independent defence might. Saudia is rich,but it is never a independent military force,because it has no industry. Russian gdp was less than brazil,but russia has much more mighty industry than brazil,thus nobody think brazil is more powerful than russia.

considering the old method which was in application till 2006, we have a calculation as below. here, India is the country of 350 million Middle Class, whose per capita income is close to $20,000 on PPP, which is similar to Very High HDI countries like Poland, Argentina, Saudi Arabia etc

rest, Im running a thread stating the Wide Range of Industries of India, as below too :ranger:

=> http://defenceforumindia.com/forum/...de-india-indian-firms-shine-across-globe.html


=> We have new GDP Per Capita on PPP calculation for India considering the year 2012 also, is as below: :thumb:

now poverty of India is because of its over population. Most of the problems of India is because of its Over Population and India has to reduce its population only. otherwise India has around 350mil Upper Middle Class, more than total population in 1947, whose per capita income on PPP is similar to the Very High HDI countries like Argentina, Poland, Saudi Arabia etc. one day I calculated as below:-

first, we find GDP on PPP of India was $4.45tn in 2011 but its still manipulated by the US/UK since 2007. as, till 2006, we had a different way of measuring GDP on PPP which used to include estimated undocumented part of GDP also. and I remember, this way GDP of high population 'developing' countries was around 50% to 80% higher, and for the middle order countries like Brazil/Turkey it was around 10% higher. and for the developed nations, the difference was hardly around 1% to 3% by that "Old Method" which was in application till 2006. like as below:

"There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005, India's GDP at PPP is estimated at $ 5.16 trillion or $ 3.19 trillion depending on whether the old or new conversion factor is used," it said.

It's official: India's a trillion-$ economy - Times Of India

means, GDP of India on PPP was already $5.16tn in 2006. again we have India's growth rate since 2007 as below:

India GDP Annual Growth Rate

here we find, "Average Growth Rate" of India from first quarter of 2007 till the December quarter 2012, stood at around 7.7%, on 'annual' basis. hence considering GDP on PPP of India at $5.16tn in 2006 by Old Method, we may calculate its value by 2012, after 6 years since early 2007, as below:

GDP on PPP of India by end 2012 = 5.16*1.077*1.077*1.077*1.077*1.077*1.077= $8.053tn

but we would also get to know that PPP value consider value of goods and serivces in US$ term, means we would include the factor of inflation of United States also. and even if we consider average 2.0% inflation of US for those six year in between early 2007 to 2012, with considering an overall factor of just 1.10 this way, then GDP on PPP of India comes around = 8.053* 1.1= $8.86tn by 2012. and it still hasn't included 'Value Added' effects also........

again, we know that share of agriculture was around 17% in India's GDP in 2012. therefore, we find share of agriculture in indian economy, 0.17 * 8.86= $1.506 trillions, on which 50% population of india is dependent. means around 600mil people based on agriculture in india have per capita income around = $2,500 on PPP by 2012, which is itself similar to the lower middle order countries.

this way, 8.858 - 1.50 = $7.36tn is left for rest of 600mil people based in industry and service in India, with per capita income of around $12,366 on PPP which is higher than Brazil..........

again, we have news that 25% of the population of cities are either in slum or in bit better condition only. so we would consider per capita income of 300mil living in cities in low condition at hardly $3,000 which takes a share of $900bil from its GDP. hence we are then left with around 7.36 - 0.90 = $6.46tn, around, for rest of 300 mil people living in cities, the so called Middle Class of India with per capita income around $21,533 on PPP this way.

but it is estimated that out of total 600mil people based in agriculture sector, it also has around 50mil Lower Middle Class with Per Capita Income around $12,000 on PPP. (as we know that agriculture has higher share of 'undocumented' part, with that, Agriculture also has higher share of non-taxable business of India.) so we find total middle class of India around 350mil with per capita income around $20,000 on PPP which is similar to Very High HDI countries like Argentina, Poland, Saudi Arabia etc, which is more than total population of India at the time of freedom in 1947 :ranger:

=> check these also, to have an overall idea about the today's India :thumb:

Most Expansive Places to Live
15-10-2012

5th Moscow $17,566 per sq.m.

7th Singapore $16,350 per sq.m.

10th Mumbai $11,306 per sq.m.

12th Sydney $8,774 per sq.m.

20th Shanghai $6,932 per sq.m.

29th Istanbul $4,569 per sq.m.

47th Dubai $3,393 per sq.m.

54th Bangkok $2,996

68th Kuala Lumpur $2,182 per sq.m.

73rd Jakarta $,2099

World's most expensive cities

Mumbai, Delhi office rentals top Shanghai, New York
Jul 25, 2012

MUMBAI: Office rentals in Mumbai and Delhi continue to be among the highest in the world, beating the likes of New York, Washington or Shanghai despite a depreciating rupee. Renting office space in Mumbai and Delhi costs over $65 and nearly $73 per square meter a month, while the same costs $63 in New York $48 in Washington and $41 in Shanghai, property consultancy firm DTZ said in a report.

Mumbai, Delhi office rentals top Shanghai, New York - Economic Times

=>

7,730 high net worth Indians collectively own $925 billion
NEW DELHI: India is home to as many as 7,730 ultra high net worth (UHNW) individuals whose combined wealth amounts to a whopping $925 billion, says a study.
According to the world ultra wealth report 2012-13, by Wealth X, a global wealth intelligence and prospecting company, India has 7,730 UHNW individuals, of which 109 are billionaires.
However, in the corresponding period last year there were as many as 8,215 with a total wealth of $980 billion.
The Wealth-X analysis shows there are 109 billionaires in the country and this group represents the top 1.4 per cent of the UHNW population, and controls 20.5 per cent of the total fortune attributable to the ultra wealthy segment.

On average, these billionaires are worth close to $1.7 billion each.
Meanwhile, the global UHNW population grew by a modest 0.6 per cent to 187,380 with a combined wealth of $25.8 trillion.
The combined wealth attributable to this segment, however, shrank by 1.8 per cent from a year ago largely driven by the Euro zone crisis and a slowdown in emerging economies, the report said.
Asia saw the largest percentage reduction in UHNW population amongst the regions (2.1 per cent) owing to poor equity performance, particularly in Japan, China and India, the report said.

The population and wealth growth of UHNW depends on the economy and its direction and clarity of government policies.
Since India's GDP growth continue to moderate and the Indian equity markets, which have significant impact on the local UHNW population, declined by 8 per cent during the measuring period and the Indian Rupee declined by 25 per cent affecting the UHNW population and their wealth.
In India, the lowest tier of the UHNW group represented by those worth $30 million to $49 million is the largest group, making up 45.7 per cent of the total UHNW population in India. They have a combined fortune of $125 billion, or 13.5 per cent, of the total wealth of the India's ultra affluent.

The study focuses solely on persons with a net worth of $30 million and above (after accounting for shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets).

The Wealth X study further said there are 5,775 Indians having wealth between $30 million and $100 million, and nearly 845 have wealth between $100 million and $200 million.
Between $200 million and $500 million, there are 855 Indians, while in the range of $500 million to $999 million, there are 150 Indians, the study said.
The report further said the NRI population in Asia was adversely affected by the poor performance of equity markets and weakness in the financial services sector.

7,730 high net worth Indians collectively own $925 billion: Report - The Economic Times

 

[hello_10]

double post

 

[hello_10]

I would compare India with the Asian Newly Industrialized Countries as below, leaving Japan, Korea, Taiwan, Singapore as they are among the industrialized nations and Malaysia is too small to be compared.....

=> Newly industrialized country - Wikipedia, the free encyclopedia

hence, we have "Average Growth Rate" of last 32 years of China, India, Philippines, Thailand, including Indonesia as below: (since 1980)


here we can see that India could maintain around 6.3% growth rate for the 31 years of 1981 to 2011, which is quite high as compare to the 3 biggest economies of ASEAN. but population growth rate of around 1.9% since 1981 has added 500mil extra people during this period, which has pulled India down. hence India's per capita income is around same as that of Philippines, Indonesia.....

and here we have a "miracle" growth rate of China, around 10% for the last 32 years to 2011, with controlling its population too through One Child Policy etc, and hence its per capita income is around 3 times to that of India while per capita income of India was higher than that of China till 1991, the year when economic reforms took place in India.......

=> hence even if India now has around 350mil Middle Class whose per capiat Income would stand at around $20,000 on PPP as below, India is still a poor country. 350mil population is in fact more than total population at the time of freedom of India, 1947, but its still a poor country because of around extra 600mil population

now poverty of India is because of its over population. Most of the problems of India is because of its Over Population and India has to reduce its population only. otherwise India has around 350mil Upper Middle Class, more than total population in 1947, whose per capita income on PPP is similar to the Very High HDI countries like Argentina, Poland, Saudi Arabia etc. one day I calculated as below:-

first, we find GDP on PPP of India was $4.45tn in 2011 but its still manipulated by the US/UK since 2007. as, till 2006, we had a different way of measuring GDP on PPP which used to include estimated undocumented part of GDP also. and I remember, this way GDP of high population 'developing' countries was around 50% to 80% higher, and for the middle order countries like Brazil/Turkey it was around 10% higher. and for the developed nations, the difference was hardly around 1% to 3% by that "Old Method" which was in application till 2006. like as below:

"There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005, India's GDP at PPP is estimated at $ 5.16 trillion or $ 3.19 trillion depending on whether the old or new conversion factor is used," it said.

It's official: India's a trillion-$ economy - Times Of India

means, GDP of India on PPP was already $5.16tn in 2006. again we have India's growth rate since 2007 as below:

India GDP Annual Growth Rate

here we find, "Average Growth Rate" of India from first quarter of 2007 till the December quarter 2012, stood at around 7.7%, on 'annual' basis. hence considering GDP on PPP of India at $5.16tn in 2006 by Old Method, we may calculate its value by 2012, after 6 years since early 2007, as below:

GDP on PPP of India by end 2012 = 5.16*1.077*1.077*1.077*1.077*1.077*1.077= $8.053tn

but we would also get to know that PPP value consider value of goods and serivces in US$ term, means we would include the factor of inflation of United States also. and even if we consider average 2.0% inflation of US for those six year in between early 2007 to 2012, with considering an overall factor of just 1.10 this way, then GDP on PPP of India comes around = 8.053* 1.1= $8.86tn by 2012. and it still hasn't included 'Value Added' effects also........

again, we know that share of agriculture was around 17% in India's GDP in 2012. therefore, we find share of agriculture in indian economy, 0.17 * 8.86= $1.506 trillions, on which 50% population of india is dependent. means around 600mil people based on agriculture in india have per capita income around = $2,500 on PPP by 2012, which is itself similar to the lower middle order countries.

this way, 8.858 - 1.50 = $7.36tn is left for rest of 600mil people based in industry and service in India, with per capita income of around $12,366 on PPP which is higher than Brazil..........

again, we have news that 25% of the population of cities are either in slum or in bit better condition only. so we would consider per capita income of 300mil living in cities in low condition at hardly $3,000 which takes a share of $900bil from its GDP. hence we are then left with around 7.36 - 0.90 = $6.46tn, around, for rest of 300 mil people living in cities, the so called Middle Class of India with per capita income around $21,533 on PPP this way.

but it is estimated that out of total 600mil people based in agriculture sector, it also has around 50mil Lower Middle Class with Per Capita Income around $12,000 on PPP. (as we know that agriculture has higher share of 'undocumented' part, with that, Agriculture also has higher share of non-taxable business of India.) so we find total middle class of India around 350mil with per capita income around $20,000 on PPP which is similar to Very High HDI countries like Argentina, Poland, Saudi Arabia etc, which is more than total population of India at the time of freedom in 1947 :ranger:

as in above post, with the estimated 350million Indian Middle Class, whose Per Capita Income on PPP at around $20,000, which is similar to Very High HDI countries like Saudi Arabia, Poland, Argentina etc, we also have an estimate of Upper Class of India as below:

(here, 350million Middle Class of India is more than total population at the time of freedom in 1947, when it was at around 347million. the year 1947 when India had only around 5% Upper class and rest poor )


in the report as below, mention around 115 Billionaires in India, as compare to hardly around 60 by Forbes. its because Forbes estimate only Share values, while the report as below includes, "shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets, according to Wealth-X...". :ranger:
World's Billionaire Club Grows; Ultra Millionaires Lose Money - WORLD PROPERTY CHANNEL Global News Center

and here is the main report, as below :thumb:
Wealth-X World Ultra Wealth Report 2011-2012 | Wealth-X

also, we may have an overall look on the UHNW of the whole world by this report as below :ranger:

=> further to the above talks, BRIC economies as whole have their UHNWI estimate, with India's at around 8,200, is given in the article as below: :ranger:

BRIC Country Super-Rich Worth $4 Trillion

The future of wealth will be built with BRICs.

According to new data from Wealth-X, the wealth research and consulting firm, Brazil, Russia, India and China now have a combined 25,600 people with $30 million or more in net worth (which includes shares in publicly traded and closely held companies, residential and investment real estate, art, planes, cash and other investible assets).

That is about half the number of ultra-high-net individuals in the U.S., according to Wealth-X.

The BRIC ultrarich have a combined net worth of $4.125 trillion, compared to $6.4 trillion for the U.S.

What is most interesting about the BRIC data is the concentration of wealth at the very top of the wealth pyramid. In Russia, the nation's 80 billionaires account for 7% of the total population of people with a net worth of $30 million or more, but they own 84% of that group's $640 billion in wealth.

In Brazil, the nation's 50 billionaires account for less than 1% of the ultrarich population but a third of the group's $890 billion in wealth. India's 115 billionaires represent 1.4% of the total ultrarich population and 20% of the group's wealth of $945 billion.

China's billionaires account for 1% of the ultrarich and about a third of their wealth of $1.65 trillion.

The U.S., of course, isn't exactly a model of equity when it comes to billionaires and the ultra-rich. Its 450 billionaires account for less than one percent of the ultra-rich population but control 25% of the group's $6.4 trillion wealth.

But the fastest global growth in billionaires and their lesser ultra-rich aspirants will likely be from the BRICS rather than the U.S. or Europe.

"In Russia, as in other emerging markets"¦.billionaires and near-billionaires, followed in aggregate by the mass of ultra-high-net-worth will dominate wealth," according to Wealth-X.

Which country would you want to live in if you had a net worth of $30 million or more?

BRIC Country Super-Rich Worth $4 Trillion - The Wealth Report - WSJ

 

[hello_10]

Wonder up there in the clouds, what Gandhi-Nehru would be thinking seeing new members joining the billionaires' club every year but the ranks of the poor not shrinking.

its all about a bottom line fact that they left 347millions people in 1947, 2% rich and rest poor at the time of freedom, while there are already 350million Middle Class in India whose per capita income is close to $20,000 on PPP, similar to Very High HDI countries like Poland, Saudi Arabia, Argentina etc, post#76...... but rest of the population growth has covered all the gains since then....

 

[hello_10]

i would like to keep a record of my comments on current Indian Economic state in this thread as below :thumb:

=>

The question is where you can find the money--Indian has been running on fiscal deficit and trade deficit for a long time.

the US+EU markets are finished now and it does have an effect on the Indian market too. i think, even 5%+ growth for this fiscal is 'not bad', as it will be the growth without any external support/orders, with covering the losses on the trade side with West too......

and about fiscal deficit, we find its around 5% only, which is 'good', in fact, for an economy which would have at least 5%+ growth in this tough time..... and about deficit on the trade side, we find Indian currency maintaining the same value during 2012, to 2013 till now, which also means that somehow someway currency didn't face as much pressure that it would fall. and in fact, recent surge in Gold import, along with maintaining the currency level, is all a good sign, showing strength of Indian currency while covering the trade losses :thumb:

and i find things so good on the foreign trade side that there is even hefty outward FDI from India too as below, which still doesn't effect the currency level

Overseas direct investment by India Inc soared by 179 per cent in the month of January to $3.303 billion against $1.184 billion in the year-ago period.

Indian companies' overseas investment in the first 10 months of the current financial year have been about $3 billion lower, aggregating $23.325 billion ($26.468 billion).

India Inc's investment abroad jumps 179% in January | Business Line

=> thats the fiscal deficit of India while comparing other as below, we don't find India on any crisis in either way, while we do know that an "Emerging Developing" like India would at least have 5% growth with 5% inflation, while the same is just not possible with the developed economies like US/UK as below

71. China -1.80 2011 est. :thumb:
149. India -5.00 2011 est.
178. Pakistan -7.00 2011 est.
190 . United Kingdom -8.80 2011 est.
191 . United States -8.90 2011 est

Budget surplus (+) or deficit (-) 2012 country ranks, By Rank

=>

All in good time.

Calm before the storm!

here we have growth data's for the major emerging economies (BRIC/E7) for 2012 as below. i can't see India doing very bad as compare to others in so bad external market :ranger:

18 China 7.80% 2012 est. :thumb:
34 India 6.50% 2012 est.

46 Indonesia 6.00% 2012 est.

102 Russia 3.40% 2012 est.

112 Turkey 3.00% 2012 est.

151 Brazil 1.30% 2012 est.

https://www.cia.gov/library/publica...zil&countryCode=br&regionCode=soa&rank=151#br

=>

5% is not bad actually considering the global economic conditions.

thats a very true, and until Indian currency fall dramatically, we don't find any problem on the CAD side too.......

true Indian currency value would be at around, INR 1.0 = 1.5 Pakistani Rupees, to 1.0 Yuan = INR 10. and for that, Indian Rupees gotto depreciates to USD 1.0 = INR 65 (around)...... hence until current CAD brings the Indian Currency to this level, we find this 'over valued' INR is still unaffected by the current CAD level :ranger:

 

[hello_10]

Emerging Markets Are Going To Spend A Massive $6 Trillion On Infrastructure In The Next Three Years

Each week, more than one million people are either born in or migrate to cities around the world.

Much of this rapid urbanization comes from the emerging world, putting tremendous pressure on that country's feeble infrastructure.

Pipes burst, roads are jammed, the water is tainted and the lights even go out.

Merrill Lynch estimates that $6 trillion will need to be spent by selected emerging market countries over the next three years to meet the basic needs of these citizens. Water, transportation and energy investments will consume the bulk of these funds, accounting for 82 percent of total projected spending. Nearly every emerging market country Merrill researched will make an investment in all three.

While each developing country could benefit from an upgrade, needs vary. This table details how different emerging market countries stand up against each other in terms of quality for the country's roads, rails, ports, etc. We've highlighted the specific areas where the countries rank in the bottom half among the 133 surveyed by the World Bank.

You can see that Brazil has the worst overall ranking among the countries listed. Though the country is a large exporter, the extremely poor condition of the country's roads and rails has hampered the growth of internal textile and farming industries. However, there is light at the end of the tunnel for the country, as the government already has a plan in place to improve these conditions (Read: Brazil's Infrastructure Plays Catch Up).

India's infrastructure also rates poorly, and is slowing the country's ascent to top of the world's economies (Read: India's Achilles Heel). One of India's key issues is electricity. Merrill says that nearly 40 percent of Indian households do not have access to electricity, the worst of any major developing economy.

Power is also a problem in South Africa where a major power plant has not been built in 20 years and blackouts/power outages have hurt the country's mining industry in recent years. Merrill projects $54 billion will need to be spent on the country's power system over the next three years, accounting for nearly half total infrastructure spending.

China, which accounts for more than half of that $6 trillion estimate, ranks far above emerging peers in terms of infrastructure at the 65th percentile. Merrill says that one of China's biggest needs is in water and environmental development. The firm estimates that the Asian country will need to build roughly 40,000 reservoirs at Rmb 12.5 million a piece to create an internal water distribution system and alleviate pressure when regions experience extended droughts such as what China is seeing presently.

The needs of a growing global population set to reach 7 billion later this year and investment needed to supply these people with sufficient water, roads, housing and power is why we identified infrastructure as a megatrend in 2007 and made it the key investment theme of the Global MegaTrends Fund (MEGAX).

Although some infrastructure investments, such as those in Russia, have seen delays as fiscal dollars have been diverted during the financial crisis, we continue to believe in the long-term viability of the story.

Emerging Markets Are Going To Spend A Massive $6 Trillion On Infrastructure In The Next Three Years - Business Insider

Budget 2013 gives big push to infrastructure with Rs 50,000 cr tax-free bonds
FEB 28 2013

Infrastructure got a major thrust in Budget 2013-14 with Finance Minister P Chidambaram today announcing a slew of measures to boost sector's growth, like raising Rs 50,000 crore through tax-free bonds, setting up of major ports and a road regulator.

"While every sector can absorb new investment, it is the infrastructure sector that needs large volumes of investment," Chidambaram said emphasising on the need to create "new and innovative instruments to mobilise funds" for meeting infra investments targets of Rs 55,00,000 crore in 12th Plan. :thumb:

The private sector will share 47 per cent of the investment, he said.

"The key to restart the growth engine is to attract more investment, both from domestic investors and foreign investors.... We will improve communication of our policies to remove any apprehension or distrust in the minds of investors," the Minister said.

Debt funds for infrastructure would be encouraged and tax-free bonds up to Rs 50,000 crore will be allowed in 2013-14, Chidambaram said in his Budget speech.
Government would seek funds from multilateral agencies like World Bank and Asian Development Bank to build roads in North East, linking it to neighboring Myanmar.

To give a big push to the highways sector, he said a road regulatory authority has been proposed that will address issues adversely impacting the sector like financial stress, enhanced construction risk and contract management.

The bottlenecks stalling road projects have been addressed and 3,000 kilometres of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14, he said. "The Delhi Mumbai Industrial Corridor (DMIC) project has made rapid progress. Plans for seven new cities at industrial corridors have been finalised and work on two new smart industrial cities at Dholera, Gujarat and Shendra Bidkin, Maharashtra will start during 2013-14," he said.

To augment port sector, Chidambaram said "two new major ports will be established in Sagar, West Bengal and in Andhra Pradesh to add 100 million tonnes (MT) of capacity."

With this the number of major ports in the country will increase to 12.

In addition, a new outer harbour will be developed in the VOC port at Thoothukkudi, Tamil Nadu through PPP at an estimated cost of Rs 7,500 crore to add 42 MT of capacity.

These moves are aimed at catering to increased import of coal and oil and container volumes in the years to come.

Cargo traffic at ports during the six-month period ended September 2012 grew by just 1.8 per cent to 455.8 million tonnes due to decline in shipments handled at major ports.

On the waterways front, in addition to five inland waterways, he said: "I am happy to announce that the Minister of Water Resources will move a Bill in Parliament to declare the Lakhipur-Bhanga stretch of river Barak in Assam as the sixth national waterway."

On power front, he said the government has given nod for constructing the power transmission link from Srinagar to Leh in Jammu & Kashmir at an investment of Rs 1,840 crore.

Chidambaram also said the government was pushing for a Chennai-Bangalore industrial corridor and a Mumbai-Bangalore industrial corridor. :thumb:

In the oil and gas sector, he said the government would move towards a transparent revenue-sharing model, approve blocks that have been awarded under the New Exploration Licensing Policy. He also said that the Dabhol LNG terminal, with a capacity of 5 million tonnes a year would be fully operational in 2013-14.

Talking about rural infrastructure, he said NABARD operated the Rural Infrastructure Development Fund (RIDF)and has successfully utilised 18 tranches so far.
"I propose to raise the corpus of RIDF-XIX in 2013-14 to Rs 20,000 crore" and a sum of Rs 5,000 crore will be made available to it to finance construction of warehouses, godowns, silos and cold storage units designed to store agricultural produce, both in the public and the private sectors.

To monitor investment proposals and project under implementation, Cabinet Committee Investment(CCI) has been set up. "Two meetings of the CCI have been held already and decisions were taken in respect of a number of oil and gas, power, and coal projects. CCI will take up some more projects shortly," he said.

Besides, he said to attract new investment and to quicken the implementation of projects, there would be an investment allowance for new high value investments.
"A company investing Rs 100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 per cent of the investment" in addition to the current rates of depreciation.

There will be enormous spill-over benefits to small and medium enterprises, he said.

Budget 2013 gives big push to infrastructure with Rs 50,000 cr tax-free bonds, two new ports

 

[hello_10]

Russia makes huge investment

An ambitious programme in Russia to remake or modernise the crumbling Soviet-era roads, railways, bridges and ports is under way.

Between $60bn (£39bn) and $65bn (£42bn) is being invested each year on major renovation projects across the country – not that you'd notice if you visit Russia's regional capitals, which still look drab and run-down, bar a few brightly coloured billboards. That's because most of the money is going into transport and power systems – the lifeblood of this vast but largely empty country.

Infrastructure investment in Russia in 2010 reached $111bn (£72bn), according to a report by Morgan Stanley, a 10-fold increase from the $7bn spent in 1999. :thumb:

Commentators regularly attack the Kremlin's "spending frenzy", claiming it has driven up the oil price needed to balance the budget to over $125 a barrel – from $21 in 2007, based on Citigroup figures.

But they don't seem to acknowledge that, rather than propping up struggling factories or paying public servants, the money is going on much-needed infrastructure projects.

And, when set against the rapidly expanding economy, the spending splurge is not that much: as a share of GDP it has doubled from 3.5pc of GDP in 1999 to 7pc in 2010 – slightly ahead of India's 6pc, but well behind China's 11pc. :thumb:

What's more, it isn't just the federal government making the investment, but state-owned companies, many of which are now on the privatisation list. Over half of all infrastructure investment (3.7pc of GDP) was made by just eight large state-owned companies, while federal budget spending accounted for only 1.8pc, according to Morgan Stanley.

The real boom in infrastructure spending, though, has not even begun. A host of mega-projects are being prepared that will push the spending even higher over the next couple of years.

Among the biggest projects planned are the development of the Vankor oil and gas field, the biggest find in Russia in the past 25 years; the Ust-Luga port in the Gulf of Finland that will be the biggest warm-water port in Russia; the reconstruction of the Black Sea resort of Sochi ahead of the 2014 Winter Olympics; and the construction of the East Siberia-Pacific Ocean (Espo) oil pipeline.

Morgan Stanley estimates that a total of $500bn worth of infrastructure projects are underway or about to start.

"Based on our major projects database, we see a steady $60bn-$65bn [per year] flow of infrastructure capital expenditure on major projects, and a new generation of mega-projects under development, including high- speed rail, new federal highways, the Moscow transport hub and further development of the Yamal oil and gas province," says Jacob Nell, chief economist of Morgan Stanley and author of the report.

To sustain this high level of development, Mr Nell estimates state-owned companies will have to raise another $28bn a year to finance the work – about as much as Russia attracts in foreign "¨direct investment.

What is odd is that much of this work has gone unnoticed. This is partly because the spending has not had much impact on the country's growth or overall investment – both are now lower than before the financial crisis began. And because the more opaque state-owned companies are in the front line, their spending is harder to see than federal budget spending or privately funded investment.

But perhaps the biggest factor is that, unlike China and India, which were both largely agrarian economies, Russia inherited a lot of serviceable infrastructure from the Soviet era. In the boom years of the Seventies, when the workers' paradise looked like it might actually happen, Kremlin spending on infrastructure averaged 40pc of GDP a year. It was only in the Nineties that it fell away to next to nothing. :ranger:

"Russia inherited significant elements of a modern industrial infrastructure from the Soviet Union, including an oil and gas industry, a mining industry, a railway network, a power network, and urban transport and municipal services. However, the infrastructure was often inefficient, and there were notable gaps, particularly in telecommunications and transport," says Mr Nell.

Russia makes huge investment in transport networks - Telegraph

=> India's $1 Trillion Infra Spend Confirmed | Weekly Voice - The Newspaper for South Asians in GTA


the above news confirms that even if Russia has the infrastructure comparable to developed nations, they spent around 7% of GDP on infrastructure during last 5 years, as compare to hardly 6% in case of India. even China's Infrastructure level has reached a good level, but still their infrastructure spending is well above 11% to GDP........ Brazil also has plan to make huge investment in infrastructure, mainly concerning the coming Olympics.....

here, I don't think that even $1.0trillion spending on Infrastructure in India would help it reach 10% to GDP by the next 5 years. there is a need to involve more private firms in this sector, with as much as they are willing to invest in this sector. even if government has set target of $1.0 trillion spending on Infrastructure by the next 5 years, it would be considered as the 'least', and the efforts would always be made to attract as much private investment in this sector, as possible :thumb: