Indian Economy: News and Discussion

Discussion in 'Economy & Infrastructure' started by sagar, Feb 17, 2009.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    let Obama outsource in India one person does the work of atleast 2 americans and gets paid 10k a year while the same person in USA doing half the work would get 100k, I want to see how this stupid move will help corporations almost bankrupt save money? If USA makes this move it will hurt them more than it will hurt us.
     
  2. A.V.

    A.V. New Member

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    Slowdown pulls down India's growth to 5.3 percent

    NEW DELHI: The fears of a sharp slowdown in India were confirmed Friday, with official data showing economic growth at just 5.3 percent for the
    third quarter of the current fiscal - the slowest since 2003 - against 8.9 percent in the like period the previous year. ( Watch )

    The growth in gross domestic product (GDP) has dipped from 7.6 percent for the second quarter and 7.9 percent for the first quarter, showed statistics released by the Central Statistical Organisation (CSO).

    Overall, the growth for the first nine months of the current fiscal has dropped to 6.9 percent, as opposed to the impressive 9 percent economic expansion in the corresponding period last fiscal, the data showed.

    The latest growth figures now put a question mark over India being able to log the 7 percent or higher growth in the current fiscal year, as predicted by the government and projected by the central bank.

    The lower growth numbers also come as a major shock for the Congress-led United Progressive Alliance (UPA) government which will face national elections soon.

    What has come as a major cause for worry is the 2.2 percent decline in farm output and 0.2 percent drop in manufacturing, even as construction logged a much lower growth of 6.7 percent in the quarter under review.

    Economic activities that registered reasonable growth in the third quarter were mining (5.3 percent), hospitality, transport and communications (6.8 percent), banking, insurance and realty (9.5 percent) and government services (17.3 percent).

    "One of the reasons for the decline is the slide in agriculture. A negative 2.2 percent does have an impact," said D.K. Joshi, the principal economist with the rating agency Credit Rating Information Services of India Ltd (Crisil).

    "Yet, one must not forget that the decline is on a very high base of nearly 7 percent last year," Joshi told IANS. "All sectors have shown weakness, but manufacturing has a greater impact because of its overall weight."

    Joshi predicted that the Indian economy would grow at between 6.5 percent and 7 percent this fiscal. "Closer to 6.5 percent, I would say."
     
  3. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Broken BRICs?

    http://www.marketwatch.com/news/story/story.aspx?guid={ADFF0790-ED3F-4B16-8FC4-6702D8EF91AA}&siteid=rss

    Broken BRICs?
    Brazil, Russia, India and China no longer unified trading concept, analyst says
    By Polya Lesova, MarketWatch
    Last update: 1:27 p.m. EST Feb. 27, 2009

    NEW YORK (MarketWatch) -- Amid the devastation wrought by the global financial crisis, a leading strategist questions whether it still makes sense to lump together Brazil, Russia, India, and China, into the so-called BRIC group.
    The term BRIC was coined in 2001 by Jim O'Neill, chief economist at Goldman Sachs, to highlight the potential of these four countries to become leaders in the global economy. Over the next few decades, Goldman argued, the growth generated by the BRICs could become a much larger force in the world economy than it is now.

    "We, at Lord Abbett, were always skeptical of BRIC," because in emerging markets investors should have a lot of diversification, said Milton Ezrati, senior economist and market strategist at Lord Abbett, in an interview with MarketWatch on Friday.

    "The whole concept behind the BRIC, that these four countries were leaders, is no longer the case today," said Ezrati, who published a report this week titled, "Broken BRIC."

    Milton Ezrati, senior economist at Lord Abbett, questions the idea of lumping together Brazil, Russia, India and China, considering the big differences between the four markets. Russia, he argues, is "the biggest mess" right now, while India's Satyam corporate scandal has tarnished the country's reputation.

    The MSCI BRIC Stock Index fell 60% last year. While all four BRIC countries were hit hard, Russia's stock market was the world's worst performer, with a 74% plunge. China was down 52%, India fell 65%, and Brazil shed 58%.
    Russia is 'biggest mess'

    Among the four BRICs, Russia is "the biggest mess," Ezrati said.
    Over the last year, equities in Russia plunged, the ruble fell sharply against the dollar, and economic growth has rapidly deteriorated. Over $200 billion of Russia's international reserves were spent, largely to defend the ruble.
    The severity of Russia's troubles "speaks to a remarkable economic mismanagement and points to another remarkable missed opportunity for a country that has by now grown famous for missing opportunities," Ezrati wrote in his report.

    "The sad story is that Russia, under [President Dmitry] Medvedev and Prime Minister [Vladimir] Putin, has turned itself from a broad-based, potentially powerful industrial and resource economy into a more or less straightforward oil and gas exporter," he said.

    Soaring oil prices were a bonanza for energy-rich Russia, but the recent collapse in oil prices has dealt a serious blow to the economy. Oil prices peaked last July around $147 a barrel, but are now trading below $50.
    In contrast to Russia, Brazil is in much better shape, even though it too has suffered from the global crisis. Its currency and equity market have taken a beating, but it has a diversified array of exports, including agricultural products, minerals, and various manufactured goods.

    "What is more, Brazil, instead of dithering on policy, as the Russians seem to be doing, has actually mounted a balanced program to deal with the economic and financial pressure," Ezrati said.

    In Asia, India's prospects have been harmed not only by the global economic slowdown, but also by the financial fraud at Satyam Computer Services (SAY:
    satyam computer services ltd adr

    China's economy, while it will slow, will still continue to grow at a rapid pace, especially compared with the recession in much of the developed world.
    China "risks socials unrest if they don't grow at least 8%," Ezrati told MarketWatch. "Chinese officials are riding a tiger, so to speak, and I believe they will respond to the situation." End of Story
    Polya Lesova is a New York-based reporter for MarketWatch.
     
  4. pyromaniac

    pyromaniac Founding Member

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    Economy slows down to 5.3% in December quarter

    Shrinking farming and manufacturing activities in the third quarter of the current fiscal led to economic growth losing its steam and dropping to
    5.3%, down from 8.9% in the same time last year, government data showed on Friday. In the nine months to December, the economy grew by 6.9%, down from the 9% recorded in the same period last year.

    In the October-December period, agriculture, forestry and fishing activities shrank by 2.2% in contrast to the 6.9% growth the sector recorded same time a year ago.

    The manufacturing sector too contracted by 0.2% in the quarter, after having grown 8.6% in the same period a year ago and 5% in the previous quarter as demand dried up in the wake of job cuts and overall negative sentiment among consumers.

    Other sectors such as construction, trade, hotels, transport and communication, financing, insurance and real estate moderate moderate growth, which is lower than last years.

    However, the investments in fixed capital assets like plant, machinery and vehicles by the industry remained robust during the quarter, indicating that investment activity has not been affected by the economic slow down. The gross fixed capital formation stood at 31% as against 30.8% same period last year.

    During the quarter, mining and quarrying grew by 5.3%, slightly above 4.3% growth posted in the same period a year ago. Electricity, gas and water supply grew by 3.3%, slower than 3.8% a year ago, while construction activities slowed down to 6.7% in the quarter, down from the previous 9%.

    Trade, hotels, transport and communication grew by 6.8%, slower than the 11.6% registered in the previous corresponding quarter. Financing, insurance and real estate sectors grew by 9.5%, down from the previous 11.9%



    Hey, at least we are not in a recession

    http://economictimes.indiatimes.com/articleshow/4202468.cms
     
  5. pyromaniac

    pyromaniac Founding Member

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    Rupee hits record low of 51.12 against dollar

    MUMBAI: Sliding for the fifth day in a row, the Indian rupee on Friday breached the 51-mark for the first time ever against the greenback as the
    local currency lost 66 paise on sustained strong demand for the US dollar from foreign banks and oil importers amid weak stock markets.

    The US dollar ended sharply higher against the rupee at Rs.51.12/14 per dollar and the Pound Sterling also finished higher at Rs.72.49/51 per pound at the close of the Interbank Foreign Exchange (Forex) market on Friday.

    Dealers in foreign exchange said that the stronger dollar abroad gave an opportunity to the foreign banks to buy American currency in the local market and sell it in offshore non-deliverable forward contracts for immediate profits.

    In the overseas market, the dollar gained against its major rival euro but slipped against Asian competitor yen.

    The rupee on Thursday only set a fresh low record of 50.46 on sudden surge in demand for dollar. The previous low record of the domestic currency was recorded on last December 2 when it touched the intra-day high of 50.60. Including today's fall of 66 paise, the rupee had slumped by a whopping 151 paise or 3.04 per cent in the straight past five sessions.

    Continued selling by Foreign Institutional Investors (FIIs) in equity markets also weighed against the rupee. They have pulled out nearly USD 1.6 billion in the current calender year so far, dealers said. Weakness in equity markets also put pressure on domestic unit, they added.

    http://timesofindia.indiatimes.com/...f-5112-against-dollar/articleshow/4202062.cms


    Should we be worried about this? I bet the exporting people in India are happy with this
     
  6. Singh

    Singh Phat Cat Administrator

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    not necessarily :boat: but it can act as a stimulus if utilised properly..
     
  7. Singh

    Singh Phat Cat Administrator

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    Outsource more from India: Airbus parent to suppliers

    European aerospace major European Aeronautic Defence and Space Company (EADS), parent company of India’s largest aircraft supplier Airbus, has directed its European tier-1 outsourcing partners to direct a larger portion of their outsourcing orders from India.

    This indirect outsourcing will make EADS’ total business outsourced to India grow 10 times by 2020, from the current ¤100 million.

    In comparison, total outsourcing to countries outside Europe will only increase by more than three times in that period, albeit from a far larger base of ¤8 billion.

    Industry experts said this indirect outsourcing would be a clear way to rationalise costs. “Manufacturing parts in India would be 30 to 40 per cent more cost-effective, although it does depend on where the manufacturing takes place in India owing to differential tax structure,” said Kapil Kaul, CEO (Indian sub-continent), Centre for Asia Pacific Aviation (CAPA).

    EADS IN INDIA
    * Airbus signed an agreement with HAL in 1988 to make forward passenger doors for the A320, India’s largest selling passenger aircraft
    * EADS Astrium has an agreement with Antrix, Isro’s commercial arm, for PSLV launch services
    * India was the first nation with which Eurocopter signed a licence agreement for technology transfer.
    * Eurocopter recently subcontracted airframe production for Ecureuil to HAL

    EADS recently invited 11 of its European partners, including aerostructure suppliers like Aernnova, Latecoere, Spirit, Stork Fokker Premium Aerotec (also an EADS subsidiary), and systems and equipment suppliers like Cobham, Eaton, Rockwell Collins, Safran and Thales to Aero India 2009, the defence aero-show held in Bangalore to participate in talks with Indian suppliers.

    “During their visit to India, the European sourcing partners met with potential Indian partner industrialists. While relationships were established, the partners are still exploring opportunities,” an EADS spokesperson said in response to a questionnaire from Business Standard.

    EADS companies Airbus and Eurcopter have been directly outsourcing to India for more than two decades. EADS is not the only aerospace giant to be partnering with India in a major way. US-based aircraft manufacturer and rival Boeing has partnered 37 Indian private and public Indian companies while bidding for the Medium Multi-Role Combat Aircraft (MMRCA) for the Indian Air Force. Boeing has also signed a contract with the Tata group to manufacture floor beams for its 787 Dreamliner aircraft. The company has a 10-year memorandum of understanding with HAL intended to bring more than $1 billion of new aerospace manufacturing work to India.

    http://www.business-standard.com/in...ndia-airbus-parent-to-suppliers/01/55/350571/
     
  8. Singh

    Singh Phat Cat Administrator

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    Defence to get $3.1 b from 3G auction money

    DELHI/KOLKATA: Over $3.1 billion (Rs 15,700 crore) of the proceeds from the upcoming 3G spectrum auctions is likely to be given to the defence
    forces for building an alternate communications network. But, it is the state-owned BSNL, which is likely to be the biggest beneficiary since the entire sum will be given to the telco to build and maintain this network for the armed forces, said a senior DoT official.

    The math doing the rounds in the communications ministry runs along these lines. BSNL will get Rs 1,077 crore for setting up the alternative Air Force
    network, Rs 8,893 crore for building similar facilities for the Army and the Navy and Rs 5,730 crore for maintaining this infrastructure for the next 10 years. The Group of Ministers (GoM) that is looking into this is set to finalise the Rs 15,700 crore funding for the project and also seek Cabinet approval for this once it debates the 3G spectrum auctions roadmap.

    In the interim budget, the government had said it expects to raise Rs 20,000 crore from 3G auctions. But, the exchequer will get a mere Rs 4,000 as the remaining will be spent on the defence network. So far, the government has disbursed only a mere Rs 328.6 crore to BSNL for this project.

    Spectrum is crucial for all telecom companies as it is the lifeline on which they offer their service. But, currently a bulk of these airwaves is occupied by defence forces. BSNL is slated to complete this defence network, which will involve 50,000 kms of fibre in core network, 10,000 kms of fibre in access network and will interconnect 270 locations by 2011. The armed forces will release spectrum, the airwaves on which communication signals travel, in a phased manner, depending on the progress of this alternate network.

    Currently, all telecom services in India are provided using 2G spectrum, but the government does not more of these to meet the demands of existing players and well as new entrants who were given licenses last year.

    http://economictimes.indiatimes.com...from-3G-auction-money/articleshow/4198638.cms
     
  9. pyromaniac

    pyromaniac Founding Member

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    India’s Rupee Slides to Record Low as Funds May Pull Money Out

    March 2 (Bloomberg) -- India’s rupee slid to a record low as mounting global stock losses added to concern investors will pull money out of riskier emerging-market assets.

    The currency extended a two-week slump on speculation Standard & Poor’s will soon cut the nation’s debt rating to junk. The rupee also fell on concern the current-account deficit will widen from a record as exports decline amid a deepening global economic slump. The MSCI Asia Pacific Index dropped 3 percent after the U.S. Standard & Poor’s 500 Index lost 11 percent last month.

    “There’s a lot of pressure on the rupee as portfolio investments are falling amid the worsening global equity prospects,” said Sanjay Arya, Mumbai-based treasurer at state- owned Bank of Maharashtra. “A rating downgrade by S&P is feared. In addition, the outlook for exports looks quite bleak.”

    The rupee slid 1.3 percent to an all-time low of 51.81 per dollar as of 9:55 a.m. in Mumbai, according to data compiled by Bloomberg.

    Offshore contracts indicate traders bet the rupee will trade at 52.00 to the dollar in a month, compared with expectations for a rate of 51.44 on Feb. 27. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency.

    Dumping Equities

    Funds based abroad sold $1.65 billion more Indian equities than they bought this year, adding to 2008’s record $13.3 billion in net sales, according to data released by the Securities and Exchange Board of India. The Bombay Stock Exchange’s Sensitive Index has dropped 7.8 percent this year, following a record 52 percent slide in 2008.

    S&P last week lowered its outlook on India’s credit rating to negative from stable, saying government spending plans to shield the economy from the global recession and win voter support in elections were “not sustainable.” The company rates India’s debt BBB-, the lowest investment grade.

    Asia’s third-biggest economy expanded 5.3 percent last quarter from a year earlier, the slowest pace in five years, a government report showed on Feb. 27.


    http://www.bloomberg.com/apps/news?pid=20601091&sid=aORa9oMnE_MY&refer=india
     
  10. Rage

    Rage DFI TEAM Stars and Ambassadors

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    1 Lakh (Hundred Thousand) Indians will return from the US in the next 3-5 years

    1 lakh Indians will return from the US in the next 3-5 years

    2 Mar 2009, 1052 hrs IST, Indo-Asian News Service


    WASHINGTON: As many as 100,000 Indians and an equal number of Chinese will return to their native countries in the next three to five years, a move that will greatly boost their economies and undermine technological innovation in America, a new US study warns.

    [​IMG]
    1 lakh Indians will return from
    the US in the next 3-5 years


    The study on immigration by a team at Duke, Harvard and Berkeley universities led by Vivek Wadhwa, an Indian-American technology entrepreneur turned academic, says "America's loss is the world's gain".

    There are no hard numbers available on how many have returned, but anecdotal evidence shows that this is in the tens of thousands, says Wadhwa, executive-in-residence for the Pratt School of Engineering at Duke University and fellow at the Labour and Worklife Programme at Harvard Law School.

    "With the economic downturn, my guess is that we'll have over 100,000 Indians and as many Chinese return home over the next three-five years," says Wadhwa. "This flood of western educated and skilled talent will greatly boost the economies of India and China and strengthen their competitiveness.

    "India is already becoming a global hub for R&D. This will allow it to branch into many new areas and will accelerate the trend," he says.

    "The US has always had the luxury of being arrogant about immigration because it has been the strongest magnet for the world's best and brightest," but as the study shows "there are other strong magnets now".

    "We are effectively exporting our economic stimulus. Policies like those which the US just enacted which prevents some banks from hiring foreign workers will have the opposite effect from what they intended - they will send jobs abroad and scare away top talent," Wadhwa said.

    The study released on Monday Ewing Marion Kauffman Foundation, based in Kansas City, Montana, indicates placing limits on foreign workers in the US is not the answer to America's rising unemployment rate and may undermine efforts to spur technological innovation.

    "A substantial number of highly skilled immigrants have started returning to their home countries in recent years, draining a key source of brain power and innovation," said Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation.

    "We wanted to know what is encouraging this much-needed economic growth engine to leave our country, thereby sending entrepreneurship and economic stimulus to places like Bangalore and Beijing."

    The report builds on an earlier Kauffman Foundation report by Wadhwa documenting a queue of one million H-1B holders and their families anxiously awaiting longer-term work visas and growing frustrated with the immigration process.

    Until recently, America has been the prime destination for the world's best and brightest immigrants. "Immigrants have made tremendous personal sacrifices," said Wadhwa. "They would leave behind relatives and friends and accept second-tier status in American society.

    "Now countries like India and China are providing equal career opportunities and a better quality of life. So the most highly educated and skilled are often returning home."

    The two-year study covered 1,203 Indian and Chinese subjects who had studied or worked in the US for a year or more before returning home.


    http://economictimes.indiatimes.com...-in-next-3-5-years/rssarticleshow/4210916.cms

    :idhitit:
     
  11. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    these are all skilled, well educated people leaving, very stupid move by US government and corporations, leaving millions of unskilled useless idiots, this will help make USA much more uncompetitive in the future.
     
  12. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    I don't think these guys will be permanently here once the US economy revives they will go back. So
     
  13. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    some may find no incentives to go back, either way India should fully utilize them, but it is a dark sign for the US economy.
     
  14. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    one more point USA also dosen't have that many educated people that can handle the work that was being done if the people leaving decide not to come back, but it should provide a nice boost to the Indian economy.
     
  15. Rage

    Rage DFI TEAM Stars and Ambassadors

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    India most attractive stock market for asset allocation: Macquarie

    India most attractive stock market for asset allocation: Macquarie

    Thursday, February 12, 2009 15:31 IST


    New Delhi: India is the most attractive stock market in terms of asset allocation in a portfolio due to the current lucrative valuations and the recent government measures to boost liquidity in the economy, says global research firm Macquarie.

    "In terms of countries, our top pick is India. In our view, the risk and reward trade-off for India is now much improved. Besides, recent events have significantly eased concerns like high valuations, bullish earnings forecasts among others," Macquarie Research said in a report.

    "Valuations in India are now much more reasonable than they have been for some time ... most interestingly India is now trading at a discount to Asia ex-Japan, something it hasn't done on a sustained basis since 2001," Macquarie said adding that the current earnings expectations are no longer outrageously optimistic.

    Meanwhile, the response from policy makers has also been very impressive. Since mid-September, the Reserve Bank of India has cut the repo rate and the cash reserve ratio by 350 and 400 basis points respectively, while the reverse repo rate has been cut by 200 basis points in a month, the report said.

    As per Macquarie's outlook for economic growth in 2009, China, India, Indonesia and the Philippines would see meaningful amount of growth, while Hong Kong, Singapore, Korea and Taiwan are likely to see large contractions.

    On the back of initiatives taken by the government, growth rate of India is unlikely to be a disaster, it said.

    Macquarie Research India economist Rajeev Malik expects the economy to grow 5.5 per cent this year, making it the second strongest economy in Asia (and probably the world).

    In striking contrast, the global growth dynamic would remain weak for virtually all of 2009. Fiscal policy may provide some temporary excitement, but a sustained turnaround in global growth will not occur until late 2009 at the earliest.

    Hong Kong, Singapore, Korea and Taiwan are all expected to see GDP contract this year, while India and China are expected to grow only 5.5 per cent and 7.0 per cent, respectively, it said.

    Macquarie further said that though the weakness in domestic demand in the developed world has dampened the export cycle of Asia, every country in Asia except India is now seeing exports contracting in year-on-year terms.

    "We have recently downgraded China to an underweight (from an overweight) due to growing concerns over the outlook for earnings, investor fund flows and policy," Macquarie said.

    "We remain underweight on Korea and Taiwan. These are the two markets where the earnings and balance sheet destruction are likely to be most severe in the near term and in Korea valuations are far from compelling," it added.


    http://www.dnaindia.com/report.asp?newsid=1230121
     
  16. sagar

    sagar Regular Member

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    http://timesofindia.indiatimes.com/Auto-sales-zoom-in-February/rssarticleshow/4215078.cms

    Auto sales zoom in February
    3 Mar 2009, 0051 hrs IST, Pankaj Doval, TNN

    Print Email Discuss Share Save Comment Text:



    NEW DELHI: After months of slowdown, car and bike sales seem to be revving up with February numbers showing double-digit growth for almost all major
    companies. Market leaders Maruti and Hero Honda were among the gainers in the month, prompting analysts to hope that the worst may be over for the auto sector.

    "The sales are on a recovery path and we are confident that the momentum would be maintained," Maruti's executive officer (marketing and sales) Mayank Pareek told TOI. Government's move to cut excise and interest rates which has made financing affordable has acted as a booster dose.

    In February, Maruti reported its highest-ever retail numbers at 70,625 units against 59,311 units in the same month last year, a growth of 19%. And its bread-and-butter small car portfolio, comprising models like Alto, Wagon-R, Zen, Swift and A-star, managed a 14% growth. Pareek said fuel price cuts have acted as a positive factor. “So not only did cars become affordable to buy, but they also became affordable to run,” he said.

    An important recovery was that of Tata Motors that has been struggling for the last few months. Tata Motors’ passenger vehicle numbers managed a growth of 1.5% at 19,039 units in February, the first positive month for the company after October last year.

    “While the financial stimulus announced by t he government, particularly for commercial vehicles, has had a positive impact, the retail market would still take some time to reach the corresponding period levels of the last fiscal,” the company said.

    Hyundai saw numbers going down 13.5% in January, but had a good month as its numbers grew 45% at 21,215 units in February. Honda Siel saw a growth of 48%. “February numbers are encouraging, but we have to remember that this is on a low base. February is usually a low sales month as customers and dealers prefer to postpone purchases on hopes of a duty cut in the Budget. This was not the case this year,” said Jnaneswar Sen, Marketing V-P for Honda Siel Cars India.
     
  17. A.V.

    A.V. New Member

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    China joins India against protectionism

    NEW DELHI: China has joined India in opposing protectionism, saying it is detrimental to the "recovery and growth" of global economy which is going
    through a very difficult phase.

    "China is firmly opposing trade protectionism because such a policy is harmful to the recovery and growth of world economy," Chinese Ambassador Zhang Yan said here.

    He said as a responsible member of the World Trade Organisation, China will continue to stand by the principle of free trade and oppose any form of trade protectionism.

    The Chinese envoy's comments came a day after India said protectionist steps by developed nations would complicate the global financial crisis.

    As the US moves towards eliminating tax benefits for American firms outsourcing jobs to foreign countries, finance minister Pranab Mukherjee had said developed countries should not resort to protectionism to overcome the financial crisis.

    "Any sort of protectionism will complicate the problem instead of resolving it," Mukherjee said on Tuesday.

    Favouring deeper cooperation between China and India in dealing with the financial downturn, the Chinese Ambassador said both countries must guard against protectionism.

    "In the G-20 summit in Washington last November, our leaders committed themselves to not adopting measures of trade protectionism," he added.
     
  18. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Next Silicon Valley is emerging in India, China, Brazil

    http://specials.rediff.com/money/2009/mar/04slide1-next-silicon-valley-emerging-in-india.htm

    Next Silicon Valley is emerging in India, China, Brazil

    March 4, 2009

    Developing countries like India, China and Brazil may soon become Silicon Valley's new address as their receptiveness to new ideas in technology devices and networked services will encourage high-tech companies to test new service offerings in these emerging markets, a study said.

    "The next Silicon Valley is already emerging in places like India, Brazil and China. Best of all, it is a much bigger valley. The path to high performance in communications and high tech will certainly pass through the developing world," consulting and outsourcing firm Accenture said in the study.

    Text: PTI
     
  19. A.V.

    A.V. New Member

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    Inflation dips further to 3.03% from 3.36%

    NEW DELHI: Triggered by falling commodity prices, inflation fell further to 3.03% during the week ended February 21 from 3.36% a week earlier.


    WPI for all commodities was down by 0.1%.

    Earlier a Reuters poll showed that the inflation rate was expected to have fallen to a six-and-a-half-year low near 3% in late February.

    T he median forecast of 12 analysts was for a 3.03% rise in the wholesale price index in the 12 months to February 21, compared with a rise of 3.36% in the previous week.

    Annual inflation for the week ended Dec. 27 was revised to 5.86 percent from 5.91 percent. The wholesale price index stood at 227.6 points in the week ended Feb. 21.

    Annual inflation was 5.69 percent during the corresponding week of the previous year.

    Reaction on Inflation figures

    ANUBHUTI SAHAY, ECONOMIST, STANDARD CHARTERED BANK, MUMBAI: "Inflation numbers are in line with expectations and the downward trend remains clear. After couple of more prints at the worst we should see inflation falling lower than 1 percent."

    "We expect more rate cuts as fiscal headroom remains limited and onus lies on monetary policy to support growth. We see repo rate at 4 percent, reverse repo rate at 3 percent and CRR at 3.50 percent latest by mid-2009."

    MARKET REACTION: -

    The partially convertible rupee trimmed losses to be at 51.97/99 per dollar from 52.09/12 before the data. It had ended at 51.53/55 on Wednesday.

    - The 10-year bond yield rose to 6.45 percent from 6.42 percent before the data. It had closed on Wednesday at 6.44 percent.
     
  20. sagar

    sagar Regular Member

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    India's Sterlite in $1.1 bln deal for Asarco

    NEW DELHI, March 7 (Reuters) - India's Sterlite Industries Ltd (STRL.BO) will buy bankrupt U.S. copper miner Asarco LLC for $1.1 billion in cash and $600 million in notes, the latter paid over a period of nine years, the Indian firm said on Saturday.

    The figure is lower than a sum of $2.6 billion Sterlite offered last year before backing out of that deal. (Reporting by Devidutta Tripathy; Editing by Clarence Fernandez)



    http://www.reuters.com/article/mergersNews/idUSSP11085420090307
     

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