Embassy of India, Riyadh

 

 Issue 11 ♦ September 2005

India Biz News

 www.indianembassy.org.sa

Previous Issues

- A snapshot of India’s economic scene

 

Private funds gross US$ 1 billion in India Inc in 2005

تصل قيمة الصناديق الخاصة في شركة إنديا المحدودة بمعدل بليون دولار أمريكي خلال عام 2005م.

Private equity firms have grossed nearly $1 billion through stake sales in Indian companies in the first six months of this year. Says Donald Peck, managing partner of private equity firm Actis, “We have been bullish on India for a long time. We believe that the Indian market will generate adequate returns for us. Our strategic investments in sectors like components, FMCG, healthcare, and speciality chemicals, to name only a few, are on the right track.” This upbeat sentiment is reflected in the investment appetite of private equity investors in the country. Private equity funds are said to have pumped in around $1 billion  in India Inc since January ’2005. And, with private equity activity revving up, deal sizes are becoming bigger too. The average investment has gone up from $5-10 million  to $20-30 million.

India's forex reserves up by US$ 623 million

 ترتفع قيمة احتياطي العملات الخارجية للهند بمعدل 623 مليون دولار أمريكي.

India's foreign exchange reserves resumed their upward journey, rising by US$ 623 million during the week ended August 26, 2005. The reserves, which had fallen by $1.1 billion after continuously rising for three previous weeks, stood at $1,43,841 million, according to the Reserve Bank of India's weekly statistical supplement.  Foreign currency assets also increased by $616 million, standing at $1,37,999 million as on August 26, RBI said.  The rise in inflows is primarily due to revaluation of non-US foreign currencies such as Euro, Sterling and Yen, analysts said.

India rated among top five tourist destinations

 تعتبر الهند من ضمن اكبر الاماكن الخمسة    السياحية .

Giving a further boost to the aggressive 'Incredible India' campaign of India Tourism, the prestigious UK magazine "Conde Nast Traveller" has rated the country fifth among the top ten travel destinations in the world.  "India is one of the most inimitable, incomparable travel destinations in the world," the magazine said while announcing the annual readers Travel awards 2005 in the current issue, which hit the stands this week. "Conde Nast's recognition confirms India's growing stature as a fastest growing tourism destination," the Minister of State for Tourism said.

India: An idea whose time has come

 الهند: الفكرة التي آن الأوان.

India is increasingly attracting the world’s interest for its impressive economic performance and is likely to sustain its current growth figures, says the World Economic Outlook (WEO) 2005 brought out by the International Monetary Fund. Driven by liberalisation in the past two decades and the start of a march toward a functioning market economy, India’s report card has been exciting both in terms of growth and stability. Its GDP grew by 7.4 per cent in the first quarter and 6.6 per cent in the second quarter of 2004-05, compared with 5.3 per cent and 8.6 per cent in the corresponding quarters in 2003-04. With a 6.7 per cent growth in Financial Year 2005, India stood tall over Brazil and Russia. While Brazil scored 3.7 in the same year, Russia fared better with a 6 per cent growth.

Exports rise 25 per cent, at US$ 7.35 billion

 تَرتفعُ الصادرات  بمعدل 25%،        تصل 7.35 بليون دولار أمريكي.

India’s exports rose nearly 25 per cent to US$ 7.35 billion in August 2005, compared with US$ 5.89 billion in the corresponding period last year. Trade deficit, however, widened to $3.14 billion in August 2005, against $2.04 billion in August 2004, because of high imports. Import growth saw a slowdown as it rose 32.44 per cent to $10.50 billion in August, compared with $7.92 billion in the corresponding period last year, according to the provisional trade data released by the commerce & industry ministry. Imports grew 37.07 per cent to $53.19 billion during April-August 2005 while exports were up 23 per cent to $35.76 billion at the end of the first five months of the current financial year. Trade deficit during April-August 2005 increased to $17.43 billion, compared with $9.73 billion in the corresponding period last year. 

India is the fastest growing market for servers

الهند هي أسرع سوق نامية  للخدماتِ.

India has emerged as the fastest growing market for servers in Asia-Pacific in the second quarter of 2005, clocking 30 per cent growth year-on-year, according to analyst firm Gartner. In overall market share of the server market in the region, India stood at eight per cent. It is the only market along with China in the region where the server revenues grew, according to the analyst firm. "India's healthy economic conditions were reflected in the increasing business confidence and foreign investment during the quarter," Gartner said, adding the demand was strongest in banking, finance, manufacturing and services with Public sector also being active. 

India: The second largest cement producing country

 الهند : البلد الأكبر الثاني لإنتاج الأسمنت.

India is the second largest cement producing country in the world. Cement demand in the country grows at roughly 1.5 times the GDP growth rate. The industry had a turnover of around US$ 7.8 billion in 2003-04.  The Indian cement industry with a total capacity of 151.2 million tonnes (including mini plants) in March 2003 has emerged as the second largest market after China, surpassing developed nations like the USA and Japan.

 

 

 

Foreign investments double in 4 years

تُضاعف الاستثمـارات الأجنبيـة خلال 4 سَنَواتِ.

With the pace at which India Inc is expanding its footprint abroad, the country’s outward foreign direct investment (FDI) may very well catch up with inward FDI. In ‘2004-05, Indian direct investment abroad aggregated $1.54 billion on the back of a drive by manufacturing companies to expand abroad. On the other hand, total FDI into the country totalled $2.32 billion. According to the RBI annual report, the phase of acquiring foreign companies, which kicked off in the information technology and related services sector, has now spread to other areas. Apart from manufacturing, the non-financial services segment accounted for outward FDI of $230.1 million, followed by trading at $175.5 million and financial services with $6.9 million. In ‘2000-01, India’s outward FDI was just $708.3 million. Maximum outward direct investments by Indian companies have been in the US during the period between April 1995 and March ‘05. Indian firms invested over $2 billion in the form of equity and loans in companies (IT and pharma) set up there. Russia, Mauritius, Sudan (oilfields)and the UK were other major investment destinations during the last decade. On the inward FDI front, Mauritius still tops the list, followed by the US and the Netherlands. During the last fiscal, the FDI flows from Germany and Japan rose sharply. FDI flows were directed mainly at the manufacturing sector, which received $924 million, followed by computer services at $372 million and business services ($363 million). Foreign portfolio flows at $8.8 billion were also buoyant during ‘2004-05.

India shines as global firms plan more investment

 تتفوق الهند بينما تَنوى شركاتَ عالمية   المزيد من الاستثمار.

India's booming technology and telecoms industries will see more investment coming their way from Asian companies such as Flextronics and Kyocera as they tap Asia's third-largest economy for its lower cost structure and growing demand. Scores of global firms such as General Electric Co. and American Express Co. already employ thousands of English-speaking Indian staff to do high-end financial analytics and back-office work at costs that are 25 to 60 percent cheaper than in Western countries. Many companies are either increasing their India presence or have plans to do so within a year as the $700 billion economy, forecast to grow about 7 percent this year, offers similar potential for growth. 

 

India's clinical trial sector can surpass IT revenues by 2010

 القطاع التجريبي من الطب في الهند يمكن  أن  يَتجاوز إيرادات قطاع تقانة المعلومات بحلول عام2010م.

India is emerging as a major hub for global clinical trials and this new sector is poised to generate more revenue than the information technology industry by 2010, an industry leader has forecast. "India is going to be one of the major hubs for clinical trials in the next five to seven years," Dr Krishna M Ella, Chairman and Managing Director of Hyderabad-based Bharat Biotech International, one of India's largest biotech firms, said.

'India could emerge as iron ore powerhouse'

' الهند قد تظهر كمركز نفوذ حديد خامِ في العالم '.

Global mining heavyweight BHP Billiton Ltd./Plc. said India holds the potential to emerge as the world's third top supplier of iron ore to steel mills. India already mines more ore than it consumes, meaning it is a net exporter of ore, which has turned golden for mining companies as steel makers scoop up hundreds of millions of tonnes of the raw material, mostly from Brazil and Australia. 

Dubai plans US$ 3.6 billion Indian alumina plant

تنوي دبي إقامة مصنع الأوكسيد الأمنيوم في الهند قدره 3.6 بليون دولار أمريكي.

Dubai Aluminium Co., operator of the largest aluminum smelter in the Middle East, signed a contract to jointly develop in India a US$ 3.6 billion an alumina ore plant, a bauxite mine and a smelter as it seeks to meet rising Asian demand. Dubal, as the Dubai government-owned company is also known, and its partner India's Larsen and Toubro Ltd. agreed to develop bauxite mineral mine and refinery in two phases in India's eastern state of Orissa, the companies said at the contract signing in Dubai.

Pilkington sets sights on Indian market

ترتكز شركة بيلكينغطون حضورها في السوق الهندية.

The world's leading finished-glass manufacturing companies are increasing their presence in Indian market. Pilkington Plc, a leading global glass maker, is planning to set up a fully owned subsidiary in India. The other two leading global glass manufacturers, St Gobain and Asahi, are already present in India.

India rated third in energy potential

 تعتبر الهند ثالث اكبر الدول في العالم  لإمكانية الطاقة.

India’s energy potential is rated the third largest in the world, with annual installations of 875 mega watts (MW), only after Europe and US, exceeding forecasts of 500 MW, according to analysis by Danish consultants BTM Consult. This accounts for 10.7 per cent of the total MW of capacity added globally. India’s cumulative wind energy capacity is currently 3,000 MW, only behind Denmark, which has a installed capacity of 3,083 MW. Europe and US have an installed capacity of 34,725 MW and 6,750 MW respectively in 2004. It is expected that India’s installed capacity would touch 8,300 MW by 2009.

 


 


Some Important Websites:

Ministry of External Affairs :  http://meaindia.nic.in/

Ministry of Finance: http://finmin.nic.in

Ministry of Commerce and Industry:http://commin.nic.in

Confederation of Indian Industry (CII) : www.ciionline.org 

Federation of Indian Chambers of Commerce & Industry (FICCI) : www.ficci.com 

India Trade Promotion Organisation (ITPO) : www.indiatradepromotion.org Trade-India.com : www.trade-india.com / Indian Exporters : www.indianexporters.com
Exporters India : www.indiamarkets.com /  India Mart : www.indiamart.com

 

 

India Biz News is a monthly newsletter of the  Embassy of India, Riyadh, B-1 Diplomatic Quarter, P.O. Box 94387, Riyadh - 11693, Saudi Arabia. Reader’s comments and feedback are welcome and should be sent  to   : The Commercial Wing, Fax: 480 7764, E-mail: com@indianembassy.org.sa

 

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