BRIC, E7, Largest Emerging Economies

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

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
if we compare the overall infrastructure of E7 countries with developed nations as above, we find China having a clear lead with rest of E7 countries with 65 percentile. above 95 percentile is considered for the developed nations and around 50% is 'alright' for the emerging economies of E7s but with 65 percentile overall infrastructure status, China is moving fast towards the developed nations. and also, more than half of the expected $6tn investments in infrastructure for next 3 years would occur in China so we would expect China at around 80% after next 4-5 years? in fact, India is also catching up but they need to raise infrastructure spending to 10% of GDP, at least ...........
 

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78 skyscrapers approved in mumbai in one day

Mumbai: On Saturday, High-rise Committee chairman Shafi Parkar and BMC commissioner Sitaram Kunte approved development proposals for 78 skyscrapers " buildings above the height of 70 metres. Saying that Mumbai has only 30 buildings of 100 metres height or more, while Shanghai has 200 and New York close to 500, Mr Kunte made a case for buildings to get taller to circumvent the city's lack of space.

The High-rise Committee's approval for 78 skyscrapers (higher than 70 metres) in the near future, along with the support of the BMC commissioner, is set to change Mumbai's skyline in the near future.

Civic chief Sitaram Kunte and chief of the High-rise Committee, justice (retd) Shafi Parkar, both advocated the need for towers citing space crunch in Mumbai.

Participating in a seminar called 'Rising skyline of Mumbai' hosted by the practising engineers, architects and town planners association (PEATA) on Saturday, Kunte quoted an article in a reputed economics periodical, saying that Mumbai has only 30 buildings which are at a height of 100 metres or more, whereas Shanghai has 200 and New York has close to 500.

The present committee, appointed last year, has approved 38 new proposals of high-rises and 40 proposals which were pending with the last committee, said the civic chief. In his address, justice (retd) Parkar said tall buildings were a necessary alternative for the rising population of Mumbai. He stressed that enough space around the buildings was required for the high-rises.

Even as the limited space available makes it imperative to have high-rises, Mr Kunte said, a suggestion by the Maharashtra Chamber of Housing Industry (MCHI) to allow high-rises on small plots was not acceptable. He said the State government's approval to recommendations by the BMC on proposals for tall buildings - up to 120 metres - should not require the High-rise Committee approval and proposals for structures between 120 to 200 metres must be scrutinised by reputed institutions such as VJTI and IIT. Structures higher than 200 metres height must have structural consultants of international repute.

Mr Kunte assured the PEATA members and developers that the civic body will not go ahead on proposals without prior consultation. He also informed them that till May 31 this year, 326 proposals on high-rises were received by the High-rise committee, out of which 322 were cleared and 104 were pending. Sixty two are pending for submission of required documents.

In his welcome speech, PEATA chairman Pravin Kanekar said the city skyline was changing fast with diminishing textile mills and old chawls which used to be part of its identity. High-rises are a necessity and proposals for them should be cleared on priority, he said.

Making a presentation, Sunil Nesarikar, deputy chief fire officer of the BMC, said that soon, a 90 metre-high ladder will be procured to meet the requirements for fighting fires in Mumbai. Currently, the tallest ladder is 68 metres high and the tallest ladder available in the world is 120 metres high. The seminar was coordinated by architect Shirish Sukhatme and convened by Dr H M Raje and Ajit Khatri.

78 skyscrapers approved in mumbai in one day..
 

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BRIC

In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four".

The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs".[1][2][3] The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It is estimated that BRIC economies will overtake G7 economies by 2027.[4]

BRIC - Wikipedia, the free encyclopedia

=>

E7



The E7 is a group of seven countries with emerging economies. The E7 are predicted to have larger economies than the G7 countries by 2020.[1]

The "Emerging 7" according to Peter Marber (author of Seeing the Elephant (2009)) states the 7 countries as follows: China, Russia, India, Indonesia, Mexico, Brazil and Turkey.

E7 (countries) - Wikipedia, the free encyclopedia
Newly industrialized country



NICs are countries whose economies have not yet reached Developed Country status but have, in a macroeconomic sense, outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid economic growth (usually export-oriented). Incipient or ongoing industrialization is an important indicator of a NIC. In many NICs, social upheaval can occur as primarily rural, or agricultural, populations migrate to the cities, where the growth of manufacturing concerns and factories can draw many thousands of laborers.

Newly industrialized country - Wikipedia, the free encyclopedia
 

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Younger CEOs paid more in India than US

MUMBAI: A new breed of younger Indian CEOs is rewriting the rules of the compensation game. In the process, they are topping their American and European peers to stand out as the highest paid executives globally, something which was once the exclusive preserve of executives from companies based outside India.

The average annual salary for an Indian CEO below the age of 50 years now stands at Rs 7.9 crore. Compared with the Rs 7.3 crore that American corner office occupants earn and Rs 7.8 crore pocketed by European bosses, it highlights the rising salaries of younger CEOs, especially in promoter-run firms in India.

Younger Indian CEOs may have stolen a march over their global peers in the salary sweepstakes but overall, Indian CEO salaries are substantially lower than their international counterparts. This was revealed in a study by global recruitment firm Randstad, which was commissioned by TOI to compare the differentials that exist between salaries of Indian CEOs vis-a-vis their western counterparts.

The compensation of Indian CEOs, though growing sharply, is still 45% lower than their American peers and 21 % lower than European CEOs. However, the gap in salaries when compared to European CEOs is shrinking faster, especially in the manufacturing, energy and infrastructure segments, the study points out. Indian CEOs received an average salary of Rs 6.3 crore.

The study is based on conversion of international salaries to Indian rupees by applying a Purchasing Power Parity (PPP) conversion factor of 20.224. This basically means that the exchange rate is adjusted so that identical goods in two different countries have the same price when expressed in the same currency. As a representative sample, Randstad took into consideration companies that form the BSE100 (for India), FT100 (for Europe) and S&P100 (for US) indices as of August 20, 2012. All long-term benefits like stock options were excluded.

"With current levels of inflation, and if India's GDP shows higher growth, the gap between salaries in India will come closer to the levels of the western world. The younger Indian CEOs are compensated better, because there is a higher concentration of promoter CEOs in this group. We can see that in sectors like manufacturing, energy and infrastructure, first-generation promoters are passing on the CEO mantle to their heirs and other family members," says Balaji E, MD & CEO, Randstad India.

However, the trend of promoter CEOs earning more than professional CEOs is not restricted to the younger lot. Across India Inc, promoter CEOs earn 53% higher than professional CEOs, the study revealed.

While professional Indian CEOs still need to catch up with their international peers, the gap in the average salary is highest in the information technology, telecom and communications, finance, retail, media and entertainment sectors, closely followed by the consumer goods industry. In the manufacturing, energy and infrastructure segments, the compensation of Indian CEOs is at par with the European CEOs due to the higher concentration of promoter CEOs in these two segments.

"Today, more and more Indian CEOs get compensated at world-class levels. This trend is driven by several factors. Firstly, it speaks of the professionalization of management and secondly, the most critical constraint to growth is the availability of general managers. It is just pure supply and demand. Finally, professional managers have a considerable set of opportunities to choose from. The broad implication is that, going forward, India cannot become competitive by playing cost arbitrage but has to master the innovation game," says Vijay Govindarajan, professor at Tuck School of Business at Dartmouth College and a part of the celebrated Thinkers 50 group.

Some Indian executives, however, think that the differences in the way salaries are structured for Indian CEOs compared to their western counterparts would continue for a while. "There is a difference between CEO compensation in India as compared to the US and Europe. American CEOs, in particular, and businesses have much greater risks attached to them. The stress that leaders undergo makes them demand far greater compensations whereas in the Indian context, the time lines for performance and the risk factor is much lesser," says Hari T, chief people officer at IT services major Mahindra Satyam.

Indian CEOs from the manufacturing segment earned the highest at Rs 8.7 crore, followed by CEOs from consumer goods with an average salary of Rs 5.6 crore. The other significant point to have emerged from the study is that private sector CEOs are compensated 21 times more than public sector CEOs. With an average salary of Rs 6.3 crore, private sector CEOs are compensated far better than their public sector counterparts, who earn an average compensation of Rs 0.3 crore. The salaries of CEOs of the public sector do not include benefits and perquisites provided to those in the private sector.

Rajeev Chopra, CEO and MD, Philips Electronics India, is more pragmatic and refuses to buy into the euphoria over increasing salaries of Indian CEOs. "Broadly speaking, compensation has always been and will continue to be a function of a myriad factors, such as the prevailing salary structure in the country's job market, the specific industry, the business situation a particular company finds itself in, etc. Therefore, clearly, a 'one size fits all approach' has not worked and may not work in the context of global salaries."

Be that as it may, due to the increasing complexities of Indian businesses, salaries can only go up.

Besides, comparisons would never cease considering salaries remain the biggest point of discussion across management levels in global businesses.

Younger CEOs paid more in India than US - The Times of India
 

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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
 

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we have new GDP Per Capita on PPP calculation for India considering the year 2012 also, as below:

now poverty of India is because of its over population. Most of the problems of India is because of its Over Poulation 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 2007 till december qurater 2012, stood at around 7.7%, on 'annual' basis, considering GDP growth for the year 2012 around 5.7% only, as estimated. 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 if we consider average 1.5% 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, and more than total population of India at the time of freedom in 1947
 

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Cosidering the BRIC, we have most powerful countries ranking by US+EU governments as below:

"The new global power line-up for 2010 also predicted that New Delhi's clout in the world will further rise by 2025," as per 'Global Governance 2025,' jointly issued by the National Intelligence Council (NIC) of the U.S. and the European Union's Institute for Security Studies (EUISS).

The U.S. tops the list of powerful countries/regions in 2010, accounting for nearly 22 per cent of the global power. China is second, along with European Union at 16 per cent and India is placed third at eight per cent. Japan, Russia and Brazil follow India with less than five per cent each.

The Hindu : News : U.S. report says India third most powerful nation
=> and the most powerful countries by military strength only, are ranked as below:

Global Firepower - 2012 World Military Strength Ranking
 

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Foreign companies pulling more money out of India

MUMBAI: Foreign direct investment, the sort of sticky long-term money India craves to fund its current account deficit and build up its infrastructure, may not be so stable after all.

According to a Nomura report, multinational companies have been pulling money out of India at an accelerating rate, moving $10.7 billion out of the country in 2011, up from $7.2 billion in 2010 and just $3.1 billion in 2009.

Outward flows are bad news for a country that this week saw its rupee currency hit a new record low as investors worry about its hefty fiscal and current account shortfalls, slowing economic growth and policy gridlock.

Still, corporate funds continue to enter India even as existing investors exit. Inbound foreign direct investment surged 88 percent to a record $36.5 billion in the fiscal year that ended in March, according to official data.

"Global deleveraging may have forced companies to sell their Indian assets and repatriate funds to their home country," Nomura analysts wrote in the Friday note.

"At the same time, domestic push factors such as slowing potential growth, the high cost of doing business and regulatory uncertainty have weakened the investment climate, likely causing this erosion. This is not a good sign."

Telecoms companies Etisalat of Abu Dhabi and Bahrain Telecommunications Co are leaving India after their mobile phone licences were among those ordered cancelled by an Indian court amid a corruption probe.

New York Life recently exited its 26 percent stake in an Indian insurance venture with Max IndiaBSE 0.03 % for $530 million, while U.S. mutual fund giant Fidelity Worldwide Investment recently struck a deal to unload its India unit to local company L&T Finance Holdings.

Foreign companies have been increasingly frustrated by regulatory uncertainty and a lack of reforms. Rules that would allow foreign companies into the supermarket and airline industries are stalled.

Vodafone, the world's biggest mobile carrier, has repeatedly clashed with authorities in India, which is trying to collect more than $2 billion in taxes from it through a retroactive law change, even after India's highest court ruled in the company's favour.

Vodafone, the biggest overseas corporate investor in India, has said it will not walk away.

The Nomura report said the services, manufacturing and real estate sectors probably saw "the maximum outflow".

Foreign companies pulling more money out of India: Nomura - The Economic Times
 

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Indians account for 22% of Britain's ultra-rich club

Indians account for 22% of Britain

Super-rich Indians account for more than 20% of the wealth of ultra-high net worth (UHNW) individuals in Britain, a new list showed on Tuesday. As a national group, they are second only to expat Russians.

The list, published by the Singapore-based Wealth-X group, places steel magnate and ArcelorMittal chairman Lakshmi Mittal at second place with a fortune of $15.8 billion. Mittal was pushed to the second spot this year by Russian Alisher Burkhanovich Usmanov, who is part owner of the English football club Arsenal and is worth $16.4 billion.

"Mittal has seen his net worth estimate decline along with the stock price of ArcelorMittal, losing at least $30 billion in recent years," the report said.

The two other Indians on the top 15 list are the Hinduja brothers — Srichand at number 9 with a net worth of $7.6 billion and Gopichand at 12th with $6 billion.

Taken together, the wealth of the three Indian-origin industrialists makes up 22% of the top 15 total of $133.3 billion.

Apart from Usmanov, the two other Russians in the list include Roman Abramovich (at number 3, $12.1 billion) and Leonard Blavatnik (Number 5, $9.5 billion).

According to Wealth-X estimates, there are 10,760 individuals residents in Britain worth $30 million or more, with at least 310 new individuals joining the ranks of the ultra wealthy. On an average, Britain has added one UHNW individual every day since 2011. The combined wealth of the UHNW in Britain stands at an estimated $1.3 trillion.

"The wealth composition of the United Kingdom, London in particular, is diverse," said David Lincoln, Director of Research at Wealth-X. "This is reflected in our data showing that 31% of the UHNW population in the United Kingdom is considered non-domiciled, with non-resident Indians and West AsianUHNWIs making up a significant proportion of these."

Indians account for 22% of Britain

How Immigration Has Impoverished Britain: 75% of Pakistani and Bangladeshi Children "Live in Poverty"

Claims that immigration is economically beneficial for Britain have been destroyed by news that three-quarters of Pakistani and Bangladeshi children in the UK are being brought up in families that are living on poverty-level income.

The report, issued by Millennium Cohort Study, which is tracking children born between 2000 and 2002, has found that 73 per cent of the Pakistani and Bangladeshi seven-year olds were in families estimated to be living on less than 60 per cent of the average national household income.

Just over half of the black children (51 percent) in the Millennium cohort were in such low-income families, compared with one in four white (26 percent) and Indian (25percent) children, said an official press release.

"Predictably, low income was strongly linked to joblessness among parents, say researchers at the Institute of Education, University of London, who collected information from almost 14,000 families in England, Scotland, Wales and Northern Ireland in 2008/9."

According to the report, among fathers, Pakistanis and Bangladeshis had the highest unemployment rate (15 percent) – well above the UK average of 6 per cent. Unemployment among black fathers was also high (11 percent) but Indians were less likely to be unemployed (4 percent) than whites (5.5 percent).

Almost two-thirds (64 percent) of white and Indian mothers had jobs, compared with half (52 percent) of black mothers and only 17 per cent of Pakistani and Bangladeshi mothers.

A much higher proportion of children in lone-parent families (63 percent) were living below the study's poverty line than those with married (16percent) or cohabiting (30 percent) parents.

"The incidence of income poverty for the Millennium cohort families has not changed appreciably over the first seven years of the children's lives," says Professor Heather Joshi, the study's director.

"Despite government efforts to eradicate child poverty almost three in 10 children are still in poor families at age 7. It's particularly disappointing that around one in five seven-year-olds is in severe poverty – on incomes below half the national average."

The findings appear in a report published today by the Institute of Education's Centre for Longitudinal Studies: Millennium Cohort Study, Fourth Survey: A User's Guide to Initial Findings. Copies of the report can be downloaded here.

British National Party
 

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in between 0.00min to 0.20min, "Indians are killing us." and why, explained in between 0.30min to 2.00min ..... :tsk:

The estimates reported in the 2010 American Community Survey revealed that the median salaried household income of India-born immigrants was around $94,700. In comparison, the median household income of native-born Americans was estimated at $51,750.

Indian-born immigrants also reported one of the lowest poverty rates at 4 per cent

Dollars and sense of American desis | DAWN.COM
Indian Americans: The fastest growing and the highest income group

According to a 2007 census report, there were as many as 2,765,815 persons of Indian origin living in the United states, constituting 0.9% of the total U.S. population. The median household income for US residents born in India is $91,195 against a $50,740 average for the total population, a recent US survey has revealed. According to the same report, the overall median household income for foreign- born and native US residents is $46,881 and $51,249 respectively.

Indian Americans: The fastest growing and the highest income group
Hindu-Americans Rank Top in Education, Income


Hindu-Americans have the highest socioeconomic levels among all religions in the United States, according to a new study by the Pew Research Center's Forum on Religion and Public Life.

Experts say U.S. immigration policy is the main reason Hindus do so well.

Both the 1965 Immigration Act and the more recent H1-B visa program set the table for Hindus to succeed. The former encouraged the immigration of professionals, particularly doctors and engineers, while the latter was designed to encourage the immigration of highly skilled "guest workers."

The number of H1-B visas issued to Indians grew steadily in the late 1990s and early 2000s and then spiked again in 2007. In 2011, according to the study, India accounted for more than half of all the H1-B visas granted.

"The education capital of this group is phenomenal," said Khyati Joshi, an associate professor at the Fairleigh Dickinson School of Education in Teaneck, New Jersey.

The Pew study, titled "Asian Americans: A Mosaic of Faiths," bears that out, and the numbers are staggering.

Eighty-five percent of Hindu-Americans are college graduates, and 57 percent have some postgraduate education, which is nearly five times the national average.

Education levels largely correlate to income, and there as well, Hindus rank at the top of the list.

According to the study, 48 percent of Hindu-American households have an income of $100,000 or more, and 70 percent make at least $75,000.

Another, secondary driver for the success of Hindus can be traced back to India's caste system, according to Prema Kurien, a professor of sociology and the director of the Asian/Asian American Studies Program at Syracuse University in New York.

"Hindu migrants to the U.S. are largely from upper caste backgrounds," she said. "Upper castes have had a long history of socioeconomic and educational advantage in India."

According to Alan Cooperman, the associate director for research for the study, the success of Hindus stems from the type of person that chooses to leave India and who the U.S. admits. This, he said, is quite different from other immigrant groups, where there are often high numbers of refugees or undocumented immigrants.

"This is the first time anybody has had good data on [Hindus]," said Cooperman. "Hindus are a fascinating group."

Hindu-Americans Rank Top in Education, Income
 
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QS World University Rankings - Wikipedia, the free encyclopedia

here, this ranking is based on the level of infrastructure of Universities, not on the quality of students. for example, we have one more QS ranking of the Management Institutes as below, and compare average GMAT scores by Indian instutes with rest of the world. :india:
Global 200 Top Business Schools 2010 by Region | TOPMBA (Asia)

(here, GMAT score for IIM Calcutta was '760' in 2009 which is incorrectly written here for 2010 as 500 only. Minimum GMAT score required for admission in IIM Calcutta is "700", as per in "Admissions Requirements" section of this website.)
Indian Institute of Management Calcutta | TOPMBA (IIMC)

here, few US's institutes have average 700+ score due to international students only otherwise compare yourselves with European shiits, only French ANSEAD could have on average above 700 GMAT score :tdown:. while British Management Institutes have more than 70% international students only. now you will get to know, how Indians of average 780 marks have raised US's overall score to above 700 for its top management institutes, helping the Americans performing high in business side by their talent, similarly how Indian professionals are back boon of US's technological firms.

Global 200 Top Business Schools 2010 by Region | TOPMBA (North America)

Global 200 Top Business Schools 2010 by Region | TOPMBA (Europe)

Global 200 Top Business Schools 2010 by Region | TOPMBA (Latin and Central America)
 
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Gen-next of immigrants in US return home ; India, China to gain from reverse brain drain

Samir Kapadia seemed to be on the rise in Washington, moving from an internship on Capitol Hill to jobs at a major foundation and a consulting firm. Yet his days, he felt, had become routine.

Meanwhile, friends and relatives in India, his native country, all in their early- to mid-20s, were telling him about their lives in the newly surging nation. One was creating an e-commerce business, another a public relations company, still others a magazine, a business incubator and a gossip and events website.

"I'd sit there on Facebook and on the phone and hear about them starting all these companies and doing all these dynamic things," recalled Kapadia, 25, who was born in India but grew up in the United States. "And I started feeling that my 9-to-5 wasn't good enough anymore."

Last year, he quit his job and moved to Mumbai.

In growing numbers, highly educated children of immigrants to the US are uprooting themselves and moving to their ancestral countries, experts say. They are embracing homelands that their parents once spurned but that are now economic powers
.

Some, like Kapadia, had arrived in the US as young children, becoming citizens, while others were born in the US to immigrant parents.

Enterprising Americans have always sought opportunities abroad. But this new wave underscores the evolving nature of global migration, which is presenting challenges to US supremacy and competitiveness.

In interviews, many of these Americans said they did not know how long they would live abroad; some said it was possible they would remain expatriates for many years, if not for the rest of their lives. Their decisions to leave have, in many cases, troubled their immigrant parents. Yet most said they had been pushed by the dismal hiring climate in the US or pulled by prospects abroad.

"Markets are opening, people are coming up with ideas every day, there's so much opportunity to mold and create," said Kapadia, now a researcher at Gateway House, a new foreign-policy research organisation in Mumbai. "People here are running much faster than those in Washington."

For generations, the world's less-developed countries have suffered brain drain - the flight of many of their best and brightest to the West. That, of course, has not stopped. But now, a reverse flow has begun, particularly to countries like China and India and, to a lesser extent, Brazil and Russia. Some scholars and business leaders contend that this emigration does not necessarily bode ill for the US.

They say young entrepreneurs and highly educated professionals sow American knowledge and skills abroad. At the same time, these workers acquire experience abroad and build networks that they can carry back to the US or elsewhere - a pattern known as "brain circulation."

But the experts caution that in the global race for talent, the return of these expatriates to the US and US companies is no longer a sure bet.

"These are the fleet-footed, they're the ones who in a sense will follow opportunity," said Demetrios G Papademetriou, president of the Migration Policy Institute, a non-profit group in Washington that studies population movements.

"I know there will be people who will argue all about loyalty, etc, etc," Papademetriou said. "I know when you go to war, loyalty matters. But this is a different kind of war that affects all of us."

The US government does not collect data on the emigration of US-born children of immigrants, or on those who were born abroad but moved to the country as young children. But several migration experts said the phenomenon was significant and increasing.

"We've gone way beyond anecdotal evidence," said Edward JW Park, director of the Asian Pacific American Studies Program at Loyola Marymount University in Los Angeles. He pointed out that this migration was spurred by the efforts of some overseas governments to attract more foreign talent by offering employment, investment, tax and visa incentives.

"So it's not just the individuals who are making these decisions," he said. "It's governments who enact strategic policies to facilitate this."

Officials in India said they had seen a sharp increase in the arrival of people of Indian descent in recent years, including at least 100,000 in 2010 alone, said Alwyn Didar Singh, a former senior official at the Ministry of Overseas Indian Affairs. Many of these Americans have been able to leverage family networks, language skills and cultural knowledge gleaned from growing up in immigrant households.

Jonathan Assayag, 29, a Brazilian-American born in Rio de Janeiro and raised in South Florida, returned to Brazil last year. A Harvard Business School graduate, he had been working at an Internet company in Silicon Valley and unsuccessfully trying to develop a business.

"I spent five months spending my weekends at Starbucks, trying to figure out a startup in America," he recalled.

All the while, friends from Harvard urged him to make a change. "They were saying: 'Jon, what are you doing? Go to Brazil and start a business there!"' he said.

Last year, he relocated to Sao Paulo and became an "entrepreneur in residence" at a leading Brazilian venture capital firm. He is now starting an online eyewear business.

"I speak the language, I get the culture, I understand how people do business," he said.

Calvin Chin was a Chinese-American entrepreneur born in Michigan and used to live in San Francisco, where he worked at technology startups and his wife was an interior decorator.

Chin's mother was from China, as were his paternal grandparents. His wife's parents were from Taiwan. They are now in Shanghai, where Chin has started two companies - an online loan service for students and an incubator for technology startups. His wife, Angie Wu, has worked as a columnist and television anchor, and they have two young children.

"The energy here is phenomenal," Chin said.

Reetu Jain, 36, an Indian-American raised in Texas, was inspired to move to India while taking time off from her auditing job to travel abroad. Everywhere she went, she said, she met people returning to their countries of origin and feeling the "creative energy" in the developing world.

She and her husband, Nehal Sanghavi, an Indian-American lawyer, moved to Mumbai in January 2011. But instead of continuing in accounting, she switched professions. Embracing a long-held passion, she now works as a dance instructor and choreographer and has acted in television advertisements and a Bollywood film.

For many of these emigres, the decision to relocate has confounded - and even angered - their immigrant parents. When Jason Lee, who was born in Taiwan and raised in the US, told his parents during college that he wanted to visit Hong Kong, his father refused to pay for the plane ticket.

Gen-next of immigrants in US return home ; India, China to gain from reverse brain drain - The Economic Times

Bangalore hires more NRIs than other cities: Study

BANGALORE: Among Indian cities, Bangalore hires the highest proportion of NRI professionals.

In the January-March 2012 quarter, NRI professionals were 29% of the total number of lateral hires (people with more than three years of experience ) in Bangalore. In Delhi /NCR, this was 27%, in Mumbai 26%, in Hyderabad 18% and in Chennai and Kolkata 16% each, says a study by MyHiringClub, a global recruitment tendering platform. "Overall hiring activity was not good in the final quarter of the last financial year, but the quantum of NRI hiring has gone up. IT, pharma and healthcare companies prefer to hire candidates with international exposure,'' says Rajesh Kumar, CEO of MyHiringClub. Many of these are companies that are expanding globally and therefore need to understand global practices and market specificities , which NRIs do.

The study finds that NRI professionals accounted for 21% of total lateral hiring in India during the quarter, a 5 percentage point increase over the previous quarter's 16%. The IT &ITES sector has seen the maximum number of NRI hiring at 23%. Pharma and healthcare accounted for 21%, FMCG 18% and infrastructure 11%. Bangalore has long been the preferred choice for NRIs. Third party hirers say 7 out of 10 candidates who want to relocate to India ask for vacancies in Bangalore. "If candidates do not have specific compulsions, based on factors like ageing parents, spouse located elsewhere, bought a home in a different city, children' s school admissions etc, most of them prefer Bangalore,'' says B S Murthy, CEO of executive search firm LeadershipCapital .

Ajay Dutt, business head at Aim Plus Staffing, says Bangalore is the top priority destination for a majority of returning professionals. "The job opportunities are the highest here. Also, 60% of NRIs who are looking to return are techies and being in Bangalore gives them an edge,'' he says. Kris Lakshmikanth, CEO of HeadHunters, say that in most cases, the NRI preference is for city close to their hometown and for Bangalore.

"Bangalore often becomes the only choice for candidates who have their origins in Kolkata, Bhubaneshwar, Lucknow etc. It's got great weather, it's neutral, relatively more safe to live and work and it's cosmopolitan,'' he says. India Inc is expected to hire around 35,000 "home-coming'' Indians during fiscal 2013. Some 946 employers from 11 industry segments across six cities participated in the MyHiring Club study.

Bangalore hires more NRIs than other cities: Study - The Times of India
Reverse brain drain: For many immigrants' children, American dream lies in India, China

For generations, the world's less-developed countries have suffered so-called brain drain — the flight of many of their best and brightest to the West. That has not stopped, but now a reverse flow has begun, particularly to countries like China and India and, to a lesser extent, Brazil and Russia.

Officials in India said they had seen a sharp increase in the arrival of people of Indian descent in recent years — including at least 100,000 in 2010 alone, said Alwyn Didar Singh, a former senior official at the Ministry of Overseas Indian Affairs.

Reverse brain drain: For many immigrants' children, American dream lies in India, China - The Times of India
 
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E7 Growth Performance Trumps G7
January 2012

It is now three years since the Great Recession ended and profound changes are underway in the world economy. The global economic axis which had been shifting fundamentally away from the advanced economies of Europe and North America to the world's emerging economies has accelerated sharply over the past four years. Moreover, living standards are rebalancing across the world, rising in the emerging countries but falling in the advanced countries.

The global economy has been severely buffeted in the past few years as it lurches from one crisis to yet another. The bursting of the US housing bubble, the meltdown of the sub-prime mortgage market, the freezing of credit markets, the collapse of Lehman Brothers, the sovereign debt crisis, credit rating downgrades, and the very survivability of the eurozone, have all contributed to the unprecedented battering that is plaguing the global economy.

It's little wonder that the fallout from these crises has had a profound effect on the structure of the world economy. Interestingly, a comparison between the major advanced economies of the G7 and the seven largest emerging economies – the E7 – reveals some startling differences. Collectively, the E7 bloc which includes China, India, Indonesia, Brazil, Russia, Turkey and Mexico now accounts for close to 31% of world GDP, up from 19% twenty years ago. During this same time period, the G7 has seen its share of world output fall from 51% to 38%.

The impact of the global recession on the G7 and E7 economies has been quite varied. In a nutshell, while the recession and the ongoing economic malaise have knocked the wind out of the G7 economies, the impact on most of the E7 countries has been relatively muted. Five of the G7 economies – Britain, France, Italy, Japan, and the United States – all suffered back-to-back declines in GDP both in 2008 and 2009. Canada and Germany, however, posted declines in GDP on a calendar year basis only in 2009.

In contrast, four members of the E7 group – Brazil, Mexico, Russia, and Turkey – experienced declines in economic activity only in 2009 with the fall in GDP ranging from a low of -0.6% in Brazil to a high of -7.8% in Russia. Moreover, the economies of China, India, and Indonesia rode out the financial storm and sailed through the global recession without posting a single negative year of growth.

Since climbing out of the Great Recession, the recovery has been weak across the board for all the G7 economies and there are growing fears that another economic downturn may be unavoidable. For example, for the G7 group as a whole, growth in GDP averaged 2.7% in 2010 but weakened to 1.3% in 2011 and is expected to slip even further and average just 0.6% this year. In contrast, while a slowdown is also anticipated in all the major emerging economies because of the global inter-linkages, there is no talk of recession. Economic growth in the E7 averaged 7.5% in 2010, 6.0% in 2011 and is projected to slip to 5.2% this year.

It is these divergent trends in growth that have significantly altered the global economic landscape. To put things in perspective, over the four year period from the end of 2007 through to 2011, only four of the G7 economies have regained their pre-recession levels of output. Canada has been the best performer in this group but despite that it is still only 3.1% larger than it was in 2007. The size of Germany's economy, the second best performer, is 1.8% larger while the United States and French economies have just managed to move ahead of where they were in 2007.

Three of the G7 economies – the United Kingdom, Japan, and Italy – have failed to recover the output lost from the 2008-09 recession and find themselves essentially stuck in what amounts to a long drawn-out economic slump. The UK economy is 2.6% smaller than it was in the pre-recession peak year of 2007, Japan's is 4.2% smaller, and Italy's is 4.7% smaller (see Table 2).

In contrast to the G7 countries, the production of goods and services is bigger today in all the E7 economies than it was in 2007. China's economy is 44.6% larger than it was before the crisis and despite a slowing down of growth its GDP is likely to expand by another 8.2% this year. Similarly, India's economy is 34.6% larger, Indonesia's is 25.2% and Brazil's is 16.5% bigger. Even Mexico's economy, which is 3.9% larger and, therefore is the E7's worst performer, has outperformed every single member of the G7.

The major advanced economies now face years of struggle and none of them are likely to see a return to pre-crisis rates of growth for the next few years. Indeed, several of the G7 economies including Britain, France, Germany, and Italy could be heading back into recession as the recovery is increasingly showing signs of coming unstuck. Unemployment is rising again in Europe, retail sales are falling, and although inflation has started to edge down it still remains above central bank targets. Moreover, the need to reduce budget deficits and reign in unsustainable debt-to-GDP ratios – which are at alarmingly high levels in all the G7 economies – risks further entrenching the recessionary conditions in which these economies find themselves stuck.

With the outlook for growth diverging sharply, the G7 countries are split into two camps – the United States and Canada are expected to grow at around 2% in 2012 and Japan's economy is also likely to see its output rise by a similar amount as the country rebuilds from last year's devasting tsumani and earthquake. On the other hand, the outlook for European economies is darkening. With the debt crisis in the eurozone countries continuing to swirl and showing no sign of easing, the IMF in its latest forecast expects the region's GDP to contract by 0.5% this year. Italy, the regions third largest economy is projected to decline by 2.2%, by far the worst performer of any G7 economy.

It is now abundantly clear that, more than two years after the end of the Great Recession, a sustained recovery remains stubbornly elusive for the major advanced economies. Despite massive amounts of monetary and fiscal stimulus, the rate of growth in all of the major advanced economies has been sharply below their respective long-term averages. Moreover, constrained by large debts and deficits, not a single G7 country is expected to achieve growth rates above, or even at, its long-term average for several more years. :nono:

In contrast, since 2007, growth in the economies of the E7, despite the ongoing global turbulence, has not deviated much from their long-term averages. By 2020 this bloc, given the current trends, will surpass the G7 and account for a greater share of world output. This, in turn, will lead to a shift in the current geo-political power structure. Whether this will be muted or more pronounced remains to be seen.

E7 Growth Performance Trumps G7 / Ranga Chand - International Economist and Financial Author
with my experience, I would say that share of G7 would down by around 1% every year while that of E7 would grow by at least 1% every year. hence, we find GDP share of E7 to be 35% by 2016 this way, and that of G7 hardly around 34% in world by 2016 :tsk:

for example of India & China, even if they grow by around 5.8% and 8% respectively this year, it will then mean by their GDP size as below:

China: 144.6 * 1.08 = 156% or 56% higher than its 2007 level

India: 134.6 * 1.058 = 142.4% or 42.4% higher than its 2007 level

while US would grow by around 1.7% only this year and that of EU would be (-)ve, as estimated :tsk: :facepalm:
 
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India ranks first in top 10 destinations for outsourcing
Oct 8, 2012

NEW DELHI: India ranked first in the list of top 10 locations for outsourcing business operations in 2011 but it has started facing competition from countries like Phillipines and Indonesia, global property consultant Jones Lang LaSalle (JLL) said in a report.

"India, while still hitting the high notes on the offshoring market, will need to work hard to maintain its edge," JLL India Chairman and Country Head Anuj Puri said in a statement.

Puri said when it comes to offshoring business operations to India, the traditional benefit of availability of a large talent pool, lower costs and quick turnaround time still apply.

Outsourcing to India enables foreign companies to overcome office space costs in their own countries, he added.

"India has the largest english speaking population in the world, ensuring optimal communication customer-vendor communications. However, India is beginning to face stiff competition on the outsourcing front from other markets like Phillipines and Indonesia," Puri said.

The report said that the options for global location decision makers are extending.

"Optimal decisions require a broader and more considered evaluation reflective of changing times. India continues to be a leading player in this environment, supported by its strong fundamentals," JLL Director - Corporate Research Tom Carroll said.

However, he said the global corporations are increasingly focused on productivity, operational efficiency and future scalability, rather than straight cost-saves in the short term and therefore "India will need to ensure it reflects these concerns if it is to retain its leading position".

"India consistently leads top 10 locations for FDI in shared service centres (2003-2011), the statement said.

Malaysia and Poland were at the second and third positions, respectively, accoring to the report.

India ranks first in top 10 destinations for outsourcing: JLL - Economic Times
Firms see India 3rd most-favoured destination: UN report

NEW DELHI: Major global companies consider India their third most favoured destination after China and the United States, a U.N. report said on Thursday, and investment inflows could increase by more than 20 percent both this year and next.

Foreign direct investment (FDI) flows into India leapt 30 percent to nearly $32 billion in 2011, though held back by slow pace of reforms, it still remains a long way down the league table of FDI recipients.

China drew $124 billion last year, while Brazil attracted nearly $67 billion and Russia $53 billion..

"The FDI inflows into India can go up by 20-25 percent this year and by about 20 percent next year, if the present trend continues," said Nagesh Kumar, Chief Economist, United Nations Economic and Social Commission for Asia and the Pacific, while releasing the UNCTAD's World Investment Report 2012.

Some 179 global companies - from the manufacturing, services and primary sectors - were surveyed between February and May, on their favoured investment destinations for 2012 to 2014.

Kumar said FDI growth seems to be keeping its momentum in 2012, referring to furniture maker IKEA and Coca Cola's (KO.N) recent announcements to pump nearly $5 billion combined into India over the long term.

Though India's economic growth slowed to 5.3 percent in the March quarter, its slowest in nine years, its trends still compared favorably, Kumar said.

"Compared to many other places, India is doing better in terms of growth," he said, adding global investors were looking at the long term prospects and wide market in Asia's third largest economy.

The report said worldwide FDI flows exceeded the pre-financial crisis average in 2011, reaching around $1.5 trillion, despite turmoil in the global economy, and is projected around $1.6 trillion this year.

Global companies are sitting on hefty cash reserves and waiting for the euro zone situation to stabilise before investing, he said.

Earlier this year India allowed full foreign ownership of single brand retailers, although late last year it backtracked on a plan to allow in foreign supermarkets.

Many investors are hoping it revives that plan soon, after Prime Minister Manmohan Singh recently took over the finance portfolio and talked about the need to address problems in the insurance and mutual fund industries, as well as taxation.

Kumar said corporate investors look at long term prospects and recent controversies over retroactive tax proposals broadly aimed at taxing companies like Vodafone (VOD.L), or proposed general anti-tax avoidance rules ( GAAR) would not hurt India's prospects as an investment destination.

Firms see India 3rd most-favoured destination: UN report - The Times of India
 
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Rs 51.46 lakh crore infrastructure outlay projected during 12th Plan

NEW DELHI: The Planning Commission is aiming at a total outlay of Rs 51.46 lakh crore in the infrastructure sector during the 12th Plan (2012-17), short of the earlier projection of USD 1 trillion (about Rs 55 lakh crore).

"The total investment during the 12th Plan is projected at Rs 51.46 lakh crore compared to Rs 27.74 lakh crore realised during the 11th Plan", a source privy to the development said.

While the public investment in the infrastructure sector is expected to decrease to 53.32 per cent in the 12th Plan from about 62.47 per cent in the previous Plan, the share of private sector is projected to increase to 46.68 per cent from 37.53 per cent.

Sources further said that infrastructure sector investment as percentage of the Gross Domestic Product (GDP) is expected to rise steadily to 10.40 per cent in the terminal year (2016-17) of the 12th Plan.

The average investment in infrastructure sector for the 12th Plan as a whole is likely to be about 9.14 per cent of the GDP as compared to 7.22 per cent during the previous Plan.

As per the details, the highest investment is envisaged in power sector at about Rs 15 lakh crore, roads follow at Rs 9.2 lakh crore, telecommunication at Rs 8.84 lakh crore and railways at Rs 4.56 lakh crore.

These proposals will be placed before the meeting of the Full Planning Commission to be chaired by Prime Minister Manmohan Singh on Saturday.

Although the Prime Minister in March 2010 had pegged the investment target for infrastructure sector during the 12th Plan at USD 1 trillion, the figures in dollar terms have to be revised in view of falling value of rupee.

Rs 51.46 lakh crore infrastructure outlay projected during 12th Plan - Economic Times
Brazil spending vast amounts on infrastructure
Aug 14, 2012 9:34 AM

Brazil estimates that it must spend $110 billion per year over the next five years to meet its infrastructure needs.

The figures are from the Brazilian Association of Infrastructure and Basic Industries (ABDIB) and reported by Canadian Manufacturing online.

In comparison, Canada spent $8 billion on new infrastructure in 2010-2011 at the height of the government's infrastructure investments. The figure has declined to $4 billion for 2012-13. click here

Brazil's construction requirements are heightened by the infrastructure needs of the coming 2014 FIFA World Cup of Soccer, for which several stadiums are under construction, and the 2016 Olympic Games in Rio de Janeiro.

By 2015, Brazil is expected to have invested CDN $22 billion in its rail infrastructure alone.

The country has the fifth largest population in the world. Its GDP in 2011 was $2.324 trillion. Canada's GDP is about $1.4 trillion

Brazil spending vast amounts on infrastructure | Canadian Consulting Engineer

Brazil is ramping up its infrastructure spending as the country prepares to host the 2014 World Cup and 2016 Summer Olympics. Last year, the government announced a $900 billion investment program over the 2011-2014 period to improve its roads, railways, and ports. Part of that multiyear commitment is a $19 billion-plan to build a high-speed rail that will connect Rio de Janeiro and São Paulo.

Read more: http://www.businessinsider.com/infrastructure-urban-land-institute-2011-10?op=1#ixzz2Cy0KJU6s
 
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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
 

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BRICS create their own financial institutions

World Bank showed that, despite the growing economic clout of emerging countries, the "old guard" of the U.S. and Europe is in no hurry to hand over the reins of power to newcomers. In response, the latter decided to establish their own regional crisis fund. Its exact scope remains unclear, but Russia's press has leaked information that the financial pool may well be very large indeed.

It could be comparable in size to the Chiang Mai Initiative, which is a crisis fund set up between China, Japan, South Korea, and the ASEAN economies. That mutual credit pool is now worth roughly $240 billion.

The funds would, of course, be insufficient to save the countries from catastrophe; but they are enough to provide temporary relief, says Daria Zhelannova, a senior analyst at Alpari.

The fund will allow the BRICS to create their own system of mutual lending. Moreover, in the event of a liquidity shortage, any BRICS member will be able to draw from the fund in an amount equal to its own contribution, multiplied by an as-yet-undefined coefficient.

The mutual fund will give the group its own financial reserve and preclude the need to go hat in hand to the IMF and World Bank, whose charity comes with strict obligations on the borrowing country, says head of investment operations at ACB Lanta Bank, Oleg Poddymnikov.

It could even be used to address large-scale economic development issues faced by the BRICS countries, as well as to fund financial operations (e.g., currency interventions, loans to companies).

Finally, the fund may also be utilised to assist other nations to develop ties with the BRICS, notes Investkafe analyst Ilya Rachenkov. After all, the world contains around 150 countries whose total GDP (calculated at purchasing power parity) is less than the mutual fund's slated budget.

The fund was conceived by a special working group set up under the BRICS on June 10, 2012. This same group, incidentally, is in the process of framing another joint organization — a development bank to be used to fund infrastructure projects. The exact framework of the bank and the fund is likely to be on the agenda for the next BRICS summit in March 2013, according to Russian online newspaper Gazeta.ru.

A few years ago, it was fashionable among experts to predict a change in the line-up of the BRICS, if not a quick death. However, the members themselves took an interest in the group's survival and began seeking ways to forge closer economic ties.

Despite their status as the fastest developing economies in the world, the global crisis could sabotage growth "’ especially since most of them are dependent on raw materials, asserts Poddymnikov.

This is not just the case for Russia, whose growth has crashed from 7.5 to 4.5 percent due to Europe's ongoing malaise: China and India are the world's top agricultural producers; Brazil produces more sugar and coffee than anyone else; Russia is a global leader in oil and gas production, as China is in coal.

Hot topic: BRICS Experts surmise that, if such initiatives as the mutual fund and the development bank become a regular feature and succeed in bringing about the desired effect, the bloc's role in the global economy will increase even further. :thumb:

It is not yet known which currency or assets will be used to store the reserves. The U.S. dollar is an option, as is the use of special drawing rights (SDR). The Chinese yuan would play into China's hands, but this is likely to be opposed by the other members of the BRICS. Moreover, the Chinese currency is not yet fully convertible.

The next step in strengthening cooperation between the BRICS, according to the Investkafe analyst, could be to extend the role of national currencies in settlements between member countries.

"However, the process could take a while. Relations could also develop through foreign trade, although there might be some overlap with the WTO," Rachenkov said.

BRICS create their own financial institutions | Russia & India Report
 

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The torrid average annual growth of 10% plus for the last 30 years is gone for China。

In the next 10 years,China will achieve average annual growth of some 8%,with India growing 20-30% slower at 5.5-6.5%。

This has been the case for the past 20 years and will hold true for the next 10 years。
 

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The torrid average annual growth of 10% plus for the last 30 years is gone for China。

In the next 10 years,China will achieve average annual growth of some 8%,with India growing 20-30% slower at 5.5-6.5%。

This has been the case for the past 20 years and will hold true for the next 10 years。
actually things are quite different in case of these two economies. China's growth for last 20 years was mainly supported by gains on export side, which is an achievement, but it then put it on a high risk if its external demands slow down, and we do know that there won't be any gain from the Western markets from now onwards. but India's growth was mainly due to Home Demand so even at 6%+, it will be consistent. so considering the whole this decade, I would put these two having around 7% Growth each till 2020. as now they have to grow on their internal demands only. for example of "Compsite PMI" numbers as below, which consider around top 500 Service and top 500 Manufacturing companies of a country, as below for this current year 2012. while growth rate of India was the slowest last year, at 6.5%, as compare to last over 10 years :ranger:

=> for example of ASEAN region, how Indonesia is handsomely growing at 6%+ during this year as its less dependent on external demands than Thailand, Malaysia type other regional ASEAN economies who are struggling this year due to troubling external markets.......

China: The HSBC Composite PMI data (which covers both manufacturing and services) signalled a marginal expansion of business activity during October. This was the second successive monthly rise in output, and the rate of growth was broadly similar to September. The HSBC Composite Output Index posted 50.5 in October, up from 50.3 in September. :sad:

http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10289
 
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