INDIAN AUTO SECTOR: MOVING INTO HIGH GEAR

The Indian automotive sector aptly showcases the country’s prowess in manufacturing, indicative of a marked shift from the earlier perception of outsourcing and services based economy, such that some of the leading global automotive companies plan to make India their manufacturing and exports hub.

The country’s automotive sector that has grown at about 15% over the past five years is projected to grow to $145 billion by 2016 from $35 billion, according to the Automotive Mission Plan (AMP) 2006–2016. India will emerge as the destination of choice for design and manufacture of automobiles and auto components during the period involving investments worth more than $40 billion.

While the Indian auto sector has witnessed steady growth as domestic and global companies launch new models and increasing capacities, global automobile manufacturers in their home countries are seeking bailout packages and reporting bankruptcies. For instance, the Indian unit of the U.S.-based General Motors Corporation, which filed for Chapter 11 bankruptcy protection in the U.S., continues to grow at a healthy pace and is not being included in the U.S. filing for Chapter 11.

And Tata Motors, part of India’s largest diversified Tata Group, launched models of its U.K.-based marquee brands Jaguar and Land Rover that it bought from U.S.-based Ford Motor Co., into the Indian market on June 28. See our Special Report that outlines the current state of India’s automobile sector and how it is emerging as a manufacturing hub for the global companies.

TESCO TIES UP WITH TATA, TO INVEST $115 MN

UK's largest retailer Tesco Plc on Tuesday announced plans to enter the wholesale cash-and-carry business in India with an initial investment of up to 60 million pounds in the first two years. The company has also entered into an exclusive franchise agreement with Tata group's retail venture Trent, which will help in driving the latter's hypermarket format Star Bazaar.

The Financial Express

NOW, $10 LAPTOP FOR STUDENTS

After displaying its prowess in developing the world's cheapest car, India is on track to rolling out the world's cheapest laptop computer that could cost as low as $10.

The Economic Times

India to raise 26% cap on foreign investment in the defense industry

India’s Defense Ministry plans to raise the 26% cap on foreign direct investment in the country’s defense industry, a move aimed at attracting global military and aerospace companies to invest in the country. The move will facilitate the development of a multi-role transport aircraft by the state-run Hindustan Aeronautics Ltd, the ministry said in a statement late Wednesday. The government is also keen to encourage the country’s private sector to play an active role in an industry dominated by state-run companies. Indian companies such as Larsen & Toubro and the Tata Group are in talks with global defense companies to establish manufacturing units in the country.

Livemint
http://www.livemint.com/2008/04/24151236/
India-to-raise-26-cap-on-fore.html

Buffett’s NetJets enters Indian market for charters

The world’s largest private jets operator, NetJets Inc., owned by billionaire Warren Buffett’s Berkshire Hathaway Inc. has joined hands with Mumbai-based Shreyans Motors Pvt. Ltd to sell international air charter services in India.

LiveMint
http://www.livemint.com/2008/03/19224307/
Buffett8217s-NetJets-enters.html