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A recent study by IBEF, titled Contribution of Indian Industry to the US Economy, which was released by the Union Minister of Commerce and Industry in the US, showcases the symbiotic relationship between the economies of India and the US.
A comprehensive analysis of the top five verticals of Indian industry that contributed to the US economy during the period 2004-07, the study highlights that Indian industry contributed US$ 105 billion to the US economy and created 300,000 jobs during the period through evolution across the value chain—from delivering services to product innovation and process innovation.
Foreign exchange reserves rose US$ 2.3 billion during the week ended July 17, 2009, on the back of inflows as a result of share purchases by foreign institutional investors (FIIs) and external commercial borrowings (ECBs) by corporates.
Further, Indian equity continues to hold investor interest. Nearly US$ 4 billion has been mopped up by companies through Qualified Institutional Placements (QIPs) and more than US$ 2 billion has come in through Global Depository Receipt (GDRs) and other routes over the last one month. |
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| Warm regards, |
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Aparna Dutt Sharma
CEO
India Brand Equity Foundation |
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| Focus: Roadways |
Roadways, an important part of infrastructure development in the country, are set to receive impetus with the government planning to award road projects worth Rs 2 lakh crore (US$ 41.54 billion) in the next two years.
Further, the private players are also adding momentum with the Public-Private Partnership Appraisal Committee (PPPAC) approving 15 highway projects worth Rs 15,560.5 crore (US$ 3.23 billion) and the India Infrastructure Finance Company Ltd (IIFCL) sanctioning Rs 6,475 crore (US$ 1.34 billion) of loans to 58 highway projects. Significantly, the Anil Dhirubhai Ambani (ADA) Group-promoted Reliance Infrastructure is also aiming at a near five-fold increase in its roads portfolio to Rs 22,000 crore (US$ 4.57 billion) by 2012 from the current Rs 4,600 crore (US$ 955.54 million).
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| Focus: Media and entertainment |
India's media and entertainment industry is expected to grow at five times the global annual average growth rate in the next five years at a compound annual growth rate (CAGR) of 10.5 per cent between 2009 and 2013 to touch US$ 18.58 billion by 2013. Further, with digital media industry is expected to grow over 80 per cent year-on-year. Also, analysts predict Internet advertising would touch Rs 1,100 crore (US$ 229.55 million) by 2011.
Cashing in on this growth story, Inc., a New York-based monthly magazine, is expected to launch its Indian version, India Inc., shortly. The magazine would target entrepreneurs and leaders of high-growth, mid-size companies.
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| Interview: Takumi Shibata, Deputy President and COO, Nomura Holdings and Nomura Securities, on his company's investment plans in India |
"Of all the countries around the world, India is a growing economy, which is a rarity in the current times. The relative share of Indian opportunities looks favourable.
We have about nine separate funds investing in Japan and two funds in Europe which invest into India. It could well be that we might try to increase the volume of those funds. One of them has 100% fund allocation to India and the rest would have proportional allocation. I would be very surprised if Indian equities have lower allocation in the global equity index."
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| Interview: Dr Stefan Doboczky, President, DSM, discusses his company’s global strategy and the importance of India for the company |
"India is a very important market for us because it is also our development centre for Asia-Pacific, Africa and the Middle East. We have chosen India for reasons of cost competitiveness and the fact that people here have awareness of the quality systems. They are far more aware of various compliance norms than the Chinese and are also more enterprising. The Indian pharma market is very competitive. Quality, reliability and peace of mind are key aspects here. Our Indian customers are very sophisticated and know about suppliers' reliability and other attributes. They are also very good negotiators.
...doing business in India is more predictable thanks to the country's set of established institutions."
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| Policy/Corporate Briefs |
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| FIIs, NRIs can invest in Indian Depository Receipts |
| Foreign institutional investors (FIIs) and non-resident Indians (NRIs) can now invest in Indian Depository Receipts, according to operational guidelines issued by the Reserve Bank of India (RBI) on July 22, 2009. |
| Overseas investors buy the India story again |
| Indian equity continues to hold investor interest and the consensus among investment bankers is that it is getting stronger, going by the spate of Global Depository Receipt (GDR) issues and Qualified Institutional Placements (QIPs) over the last one month. |
| 'India is emerging hub for global trade' |
| India is fast emerging as a hub for international trade and investment and now is the right time to explore opportunities in western and other Asian countries, said foreign diplomats at a seminar on 'Emerging Opportunities in International Trade and Investment', organised by the Confederation of Indian Industry (CII). |
| Sanofi-Aventis buys Shantha for Rs 3,740 cr |
| France's biggest drugmaker, Sanofi-Avenits has agreed to buy Shantha Biotechnics in a deal with its French owners, Meriuex Alliance, who have valued the unlisted Indian company at Rs 3,740 crore (US$ 775.9 million), or about eight times its projected sales of Rs 440 crore (US$ 91.29 million) for this fiscal. |
| Japan Fin Corp arm lines up Rs 741-crore for thermal power facilities in India |
| Japan Bank of International Cooperation, the international arm of Japan Financial Corporation, has signed two agreements to lend Rs 741 crore (US$ 152.88 million) to L&T-MHI Boilers Private Ltd and L&T-MHI Turbine Generators Private Ltd for manufacturing and sale of thermal power generation facilities in India. |
| FIIs, fund houses acquire stake in Texmaco through QIP |
| A group of foreign and domestic institutional investors and mutual funds have acquired stakes in engineering firm Texmaco through the recently completed Rs 179.56-crore (US$ 37.12 million) qualified institutional placement (QIP). |
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