INDIA’S MARKET OUTPERFORMS CHINA
While investors hope that consumer spending growth in China will eventually balance its export dependence, in the short term it is India that presents more opportunity.
Economists crow over the long-term domestic growth prospects in both emerging Asian giants, which is likely to be led by a young generation of spenders eager to buy clothes, computers, cars and other goods.
Until recently, China’s massive government stimulus spending worth 6% of gross domestic product was the biggest draw in Asia for investors chasing growth. However, last month’s stunning election victory by India’s Congress-led coalition, which allowed the grouping to secure a parliamentary majority, has turned the heads of some fund managers to the consumer-oriented sectors in India.
In addition, India’s valuations are cheaper, suggesting more upside potential for any investments...
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Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
Friday, June 12, 2009
Monday, April 27, 2009
G-20 LONDON SUMMIT: EMERGING ECONOMIES FOCAL POINT
The G-20 London summit on April 2, 2009, part of the annual forum of the 20 largest economies that convenes to review the global trade and economic scenario, marked the recognition of the central role that the emerging economies will play in the revival of the global economy.
The financial crisis that gripped the global economy since last year is expected to result in a drop of 9% in global trade in 2009, according to the World Trade Organisation estimates. The developed countries’ exports are set to fall by as much as 10%, while developing countries will see a marginal contraction of 2%-3% in their shipments.
The G-20 shunned protectionism across the board to promote global trade and investment. The forum extended a $1.1 trillion for international credit and additional $250 billion through the International Monetary Fund (IMF) as part of the few decisive steps to revive the global economy. This capital infusion will benefit the emerging economies like India and China, particularly in the services exports. The two countries figure among the top 10 in services exports, with China contributing 3.7% at $137 billion closely followed by India contributing 2.8% at $106 billion of the world’s total in 2008.
G-20 itself is a manifestation of emerging economies with more weightage in the global economic affairs, as compared to the G-8, a group of eight largest industrialized nations. Some assertions, however, such as the regulations to curb tax havens, could negatively impact capital flows into emerging economies.
The G-20 London summit on April 2, 2009, part of the annual forum of the 20 largest economies that convenes to review the global trade and economic scenario, marked the recognition of the central role that the emerging economies will play in the revival of the global economy.
The financial crisis that gripped the global economy since last year is expected to result in a drop of 9% in global trade in 2009, according to the World Trade Organisation estimates. The developed countries’ exports are set to fall by as much as 10%, while developing countries will see a marginal contraction of 2%-3% in their shipments.
The G-20 shunned protectionism across the board to promote global trade and investment. The forum extended a $1.1 trillion for international credit and additional $250 billion through the International Monetary Fund (IMF) as part of the few decisive steps to revive the global economy. This capital infusion will benefit the emerging economies like India and China, particularly in the services exports. The two countries figure among the top 10 in services exports, with China contributing 3.7% at $137 billion closely followed by India contributing 2.8% at $106 billion of the world’s total in 2008.
G-20 itself is a manifestation of emerging economies with more weightage in the global economic affairs, as compared to the G-8, a group of eight largest industrialized nations. Some assertions, however, such as the regulations to curb tax havens, could negatively impact capital flows into emerging economies.
Thursday, April 09, 2009
MEDIA & ENTERTAINMENT: AN EMERGING HOTBED
Prospects of the Indian Media and Entertainment (M&E) sector estimated to grow to about twice its current size of $11.6 billion by 2013 prompted global media and entertainment companies such as The Walt Disney Company, The Warner Group, Viacom, Inc., Sony Pictures Entertainment, Inc., The Financial Times and the Dow Jones & Co. to enter the market that has grown at a sustained pace of about 15% annually during the last five years by either acquiring a stake or partnering with an Indian counterpart.
Among the most recent expansion plans in India, News Corporation, the world's largest media conglomerate by market capitalization, had announced that it will strengthen its presence in the country by investing more than $100 million to launch six new regional television channels last year.
The potential for growth in India’s M&E sector is underscored by the low penetration base. For instance, the print media with low penetration rate of 38% and the cable & satellite penetration in the country of just about 50% offers a large market that remains to be tapped. See our Special Report highlighting the trends in the sector.
Prospects of the Indian Media and Entertainment (M&E) sector estimated to grow to about twice its current size of $11.6 billion by 2013 prompted global media and entertainment companies such as The Walt Disney Company, The Warner Group, Viacom, Inc., Sony Pictures Entertainment, Inc., The Financial Times and the Dow Jones & Co. to enter the market that has grown at a sustained pace of about 15% annually during the last five years by either acquiring a stake or partnering with an Indian counterpart.
Among the most recent expansion plans in India, News Corporation, the world's largest media conglomerate by market capitalization, had announced that it will strengthen its presence in the country by investing more than $100 million to launch six new regional television channels last year.
The potential for growth in India’s M&E sector is underscored by the low penetration base. For instance, the print media with low penetration rate of 38% and the cable & satellite penetration in the country of just about 50% offers a large market that remains to be tapped. See our Special Report highlighting the trends in the sector.
TELECOM: DIAL INDIA FOR GROWTH
India’s mobile telecommunication services sector has defied the economic recession. The incumbent mobile telecommunication service providers collectively added 15 million new subscribers in the month of January, which is more than twice the population of Finland, home country of largest mobile handset manufacturer Nokia Corp., taking the country’s total tally of wireless subscribers to 362 million.
The world's fastest-growing mobile telecom services market estimated to reach a subscriber base of about 650 million by 2012, exposes the growth potential for global mobile telecom service providers who are not yet present in India. Such service providers are missing out on opportunities to grab a share of the projected mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, while the profitability of their operations in saturated developed markets continue to be under pressure.
The string of investments in Indian telecom companies last year, including, Tata Teleservices Ltd, the telecom services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider of $2.7 billion; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; as well as South Africa’s largest telecom company MTN Group’s attempts to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
Of significance is the fact that the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; Loop Telecom, a BPL Mobile Communications group company; S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd; among others which are likely targets – but within the regulatory purview as an overseas entity’s stake in the domestic company cannot exceed 74%.
India’s mobile telecommunication services sector has defied the economic recession. The incumbent mobile telecommunication service providers collectively added 15 million new subscribers in the month of January, which is more than twice the population of Finland, home country of largest mobile handset manufacturer Nokia Corp., taking the country’s total tally of wireless subscribers to 362 million.
The world's fastest-growing mobile telecom services market estimated to reach a subscriber base of about 650 million by 2012, exposes the growth potential for global mobile telecom service providers who are not yet present in India. Such service providers are missing out on opportunities to grab a share of the projected mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, while the profitability of their operations in saturated developed markets continue to be under pressure.
The string of investments in Indian telecom companies last year, including, Tata Teleservices Ltd, the telecom services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider of $2.7 billion; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; as well as South Africa’s largest telecom company MTN Group’s attempts to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
Of significance is the fact that the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; Loop Telecom, a BPL Mobile Communications group company; S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd; among others which are likely targets – but within the regulatory purview as an overseas entity’s stake in the domestic company cannot exceed 74%.
GENERAL ELECTIONS: ADVANTAGE INFRASTRUCTURE
'Cautiousness & Consciousness' have become the catchwords for both investors and the government as India approaches the next General Elections, which are scheduled from April 16 to May 13 amid a worldwide economic recession.
India's challenge is not only to augment its antiquated infrastructure, but also to build new infrastructure to keep up with its $1 trillion economy and the aspirations of its 1.2 billion population that grows by 16 million people each year.
Recognising that good governance and infrastructure are a vital pre-requisite to keep ‘India Shining’ at Gross Domestic Product (GDP) growth of more than 7%, infrastructure development has been accorded key priority for the 11th Five-Year-Plan for the years 2007-2012 and the 12th plan period 2012-2017 with projected investment requirement of $500 billion and $1.5 trillion respectively by the Prime Minister's Committee on Infrastructure.
The interim budget for the financial year 2009-10 announced by the Finance Minister also sets the ground for how the ruling United Progressive Alliance (UPA) will approach the General Elections, announcing that 9% of the country’s GDP will be spent on infrastructure by 2014 (Interim Budget: Continuity Of Growth).
'Cautiousness & Consciousness' have become the catchwords for both investors and the government as India approaches the next General Elections, which are scheduled from April 16 to May 13 amid a worldwide economic recession.
India's challenge is not only to augment its antiquated infrastructure, but also to build new infrastructure to keep up with its $1 trillion economy and the aspirations of its 1.2 billion population that grows by 16 million people each year.
Recognising that good governance and infrastructure are a vital pre-requisite to keep ‘India Shining’ at Gross Domestic Product (GDP) growth of more than 7%, infrastructure development has been accorded key priority for the 11th Five-Year-Plan for the years 2007-2012 and the 12th plan period 2012-2017 with projected investment requirement of $500 billion and $1.5 trillion respectively by the Prime Minister's Committee on Infrastructure.
The interim budget for the financial year 2009-10 announced by the Finance Minister also sets the ground for how the ruling United Progressive Alliance (UPA) will approach the General Elections, announcing that 9% of the country’s GDP will be spent on infrastructure by 2014 (Interim Budget: Continuity Of Growth).
Monday, March 09, 2009
ECONOMY TO GROW 6.7% THIS FISCAL
Indian economy will grow 6.7% in fiscal year 2009-10, pushed by a healthy increase in consumption even as private investment will moderate, information services provider Dun & Bradstreet (D&B) has projected.
In its Economy Outlook 2009-10, D&B said the economy will pick up in the medium to long-term when the policy responses of the government and Reserve Bank of India will come into play and the external situation will stabilise.
The Financial Express
Indian economy will grow 6.7% in fiscal year 2009-10, pushed by a healthy increase in consumption even as private investment will moderate, information services provider Dun & Bradstreet (D&B) has projected.
In its Economy Outlook 2009-10, D&B said the economy will pick up in the medium to long-term when the policy responses of the government and Reserve Bank of India will come into play and the external situation will stabilise.
The Financial Express
Wednesday, January 07, 2009
BRICS TO ACCOUNT FOR 40% OF WORLD GROWTH BY 2020
BRIC nations - Brazil, Russia, India and China - are likely to contribute 40 per cent of global economic growth in the next 10 years due to a "tectonic shift" in the distribution of global capital over the next decade, global consultancy firm Ernst & Young said.
The Economic Times
BRIC nations - Brazil, Russia, India and China - are likely to contribute 40 per cent of global economic growth in the next 10 years due to a "tectonic shift" in the distribution of global capital over the next decade, global consultancy firm Ernst & Young said.
The Economic Times
Saturday, August 02, 2008
INDIA SECOND BEST COUNTRY FOR BUSINESS INVESTMENT: SURVEY
India is the second best country for business investment, a new survey of American corporate executives shows. Conducted by Development Counsellors International every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. This is the first year respondents were asked to rank the business favourablity of the world’s 25 largest countries (based on GDP).
MINT
India is the second best country for business investment, a new survey of American corporate executives shows. Conducted by Development Counsellors International every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. This is the first year respondents were asked to rank the business favourablity of the world’s 25 largest countries (based on GDP).
MINT
Tuesday, July 22, 2008
INDIA AMONG TOP THREE MEDIA, ENTERTAINMENT MARKETS
India continues to be one of the top three markets for global collaborations in entertainment and media, because of a 'relatively friendly foreign investment regime..
The Economic Times
Tuesday, January 15, 2008
India to see $700-bn investment
Anticipating a 700-billion-dollar investment pipeline for the country, ICICI Bank Managing Director and CEO K V Kamath has said that corporates alone would infuse up to 500 billion dollars in the next three to four years.
The Financial Express
ndia-to-see-700bn-investment-Kamath/261010/
The Financial Express
ndia-to-see-700bn-investment-Kamath/261010/
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