Embassy of India, Riyadh

 

 Issue 2 ♦ October 2005

India Biz News

 www.indianembassy.org.sa

Previous Issues

- A snapshot of India’s economic scene

 

 

 

 

 

 

India ranked second most attractive FDI destination

تم تقدير الهند كثاني أكبر غاية للاستثمار الأجنبي المباشر.

Transnational corporations find India the most attractive global business destination after China, according to the World Investment Report 2005 released by UNCTAD.  India has been ranked the third most attractive global destination by 42 per cent of the experts and the second most attractive location by 51 per cent of the corporations.

Direct overseas investments up

ارتفعت الاستثمارات الأجنبية المباشرة .

India's direct investments overseas have increased by US$ 2.49 billion to US$ 9.57 billion from US$ 7.08 billion in the previous fiscal.  According to the figures released by the Reserve Bank of India, the country's direct international investments have more than doubled in the last three years.  The portfolio investments from India also increased from $65 million in 2002 to $81 million in 2005.  Trade credits have increased from $1.9 billion in 2004 to $ 3.94 billion in 2005. Total reserve assets increased from $137.12 billion to $169.26 billion.

Electrical goods sector grew 19 per cent

نما قطاع الموادِ الكهربائية بمعدلِ 19 بالمائة.

The output of domestic electrical power equipment industry has increased by 19.33 per cent in 2004-05, according to the Indian Electrical and Electronics Manufacturers Association (IEEMA).  All the seven sectors of this industry, such as transmission line towers (TLT), transformers, switchgears, rotating machines, capacitors, cables and energy meters, have registered a double-digit growth, the apex body of the industry said.  “For the next 20 years at least, the power sector is expected to witness a double-digit growth. There is good potential for the engineering industry, which thrives under the umbrella of the power sector,” said, former president, IEEMA.

Three public sector banks among world’s top 25

ثلاثة بنوك القطاع العام ظهرت بين 25 البنك الأعلى في العالمِ.

 

India’s state-owned banks have a reason to smile. Three of them — Oriental Bank of Commerce (OBC), Indian Overseas Bank (IOB) and Bank of India (BoI) — have figured among the top 25 global banks in terms of return on capital employed (RoCE) to the latest Banker magazine.  In fact, 22 Indian banks, with an average return on capital of a healthy 32.8%, feature among the top 1,000 banks across the globe. While OBC, placed ninth on the list of top banks recorded a 57.55% return on capital, IOB and BoI registered returns of 53.04% and 49.55%, respectively.

India a better market: Time Warner 

الهند سوق أفضل: شركة تايم وارنر.

 

 

The Chief Executive of Time Warner Inc., the world's largest media company, said that India is a better market than China for immediate growth for his firm because the country offers stronger rule of law and less censorship. India is also catching up in infrastructure and technology to distribute media content, setting the stage for Time Warner Inc to build a significant presence quickly, Richard Parsons said at a luncheon with the American Chamber of Commerce in Hong Kong. 

India among top nations in retailing

الهند بين الدول الرائدة في البَيع بالمفرد.

Seven countries - China, India, Turkey, Vietnam, Russia, Romania and Bulgaria - offer the strongest investment opportunities for retail and consumer companies, according to the fourth edition of PricewaterhouseCoopers' Retail and Consumer study titled From Beijing to Budapest: Winning Brands, Winning Formats. Of the seven priorities, Russia, Romania and Bulgaria joined the list for the first time. The report says that while achieving a presence in these transitional markets can be challenging, companies that develop new products and formats tuned to the quickly evolving tastes of customers will be successful.

Airbus A 380 to rely on Indian chip

طائرة أيرباص أيه-130 تـعـتمد على الرقاقة الهندية.

When the world's largest passenger jet, Airbus A 380, takes to the skies in 2007, it would rely on an Indian chip to communicate with ground controllers. Believe it or not, a version of the same chip would find a place in Airbus' trans-Atlantic rival Boeing's 787 dreamliner, the latest flying machine coming out from the US aerospace firm. "Co-developed and verified" by Indian IT major, HCL Technologies, this chip would be integrated into the system data acquisition computer of the aircraft, a top company official has said. The software would be used for real time advanced data communication needs of on-board critical electronic devices and the delivery to Airbus would happen by this year-end, HCL Vice President and Head of Aerospace said.

Rolls-Royce upbeat on prospects in India

شركة رولز رويس متفائلة بالفرصِ في الهند.

The aircraft engine manufacturer Rolls-Royce is bullish on prospects in India. It has estimated that the Indian market is growing at 20 per cent a year compared to a growth of about 7 per cent in other markets. "There is a lot of potential in India. The aptitude for new equipment is growing and we would like to realise it. India and China are the two real growth areas for the business," the Customer Business Director, Middle East and South Asia, Mark Tyack, said.  Rolls-Royce enjoys a dominant market position in the single aisle aircraft segment in India, with V-2500 engines powering the Airbus A-320 aircraft of Indian Airlines, Air Deccan and Kingfisher Airlines. The company feels that the new Trent series engines will also be ideally suited to meet the requirements of the wide body aircraft that airlines from India plan to acquire. 

Mittal wins Asian Achiever's award

يربح السيد/ميتال جائزة "فائـز آسيـوي"

NRI steel tycoon Lakshmi Mittal has won this year's 'Asian Achievers' award for entrepreneurship for his outstanding achievement in the global steel industry where his company has taken the top spot. Another NRI industrialist Manubhai Madhwani was honoured with the Lifetime Achiever's Award.

IITs rated third best in world

قدرت المعاهد الهندية للتكنولوجيا كثالث أفضل جامعة التكنولوجيا في العالمِ.

The Indian Institutes of Technology (IITs) have been ranked the third best technology universities in the world for 2005, according to the prestigious Times Higher Education Supplement (THES).  The publication, which is highly respected and read in the world of academia, said: "Our peer review of the world's top technology universities shows that in 2004, the high praise for the Indian Institutes of Technology was no fluke".  "Up to third position in 2005 from fourth place last year, the IITs are a source of Indian national pride as well as innovation and wealth".  Among science universities, the IITs have been ranked 36th in the world. 

 

India's economy up 8.1 percent in quarter

ارتفع الاقتصاد الهندي بـمعدل 8.1 بالمائة في ربع السنة.

India's economy grew a robust 8.1 percent in the April-June quarter from a year ago, lifted by strong manufacturing as well as services such as banking and tourism, the government said.  The figure surpassed expectations and the 7.6 percent growth recorded in the same quarter last year, prompting many analysts to revise their full-year growth forecasts for the current fiscal.  Finance Minister P. Chidambaram, who earlier predicted 7.1 per cent growth in gross domestic product for the April-June period, said he was optimistic that the growth momentum seen in the first quarter would continue through this fiscal year. 

US$ 1.08 billion FII inflow in Sept largest among emerging markets

تدفّق 1.08 بليون دولار أمريكي من  المستثمرين المؤسساتيينِ الأجانب في شهر سبتمبرِ الذي أكبر بين الأسواق الناشئة.

Stock valuations may be getting dearer by the minute but foreign funds don’t seem to be worried a wee bit. Foreign institutional investors (FIIs) ploughed in US$ 1.08 billion in September alone, the largest inflow into major emerging markets in a month.  Interestingly, FIIs pulled money out of Korea and Taiwan. While Korea saw net outflows of $890 million during the month, outflows from Taiwan was much less at $317. Thailand saw the fourth consecutive positive flow with $316 during the month. Indonesia and Philippines also saw marginal inflows.  Fund managers note that the fundamental story of India Inc remains attractive and with 16-20 per cent earnings growth estimated going forward, valuations at current levels continue to be attractive.

Indian exports make their mark in global markets

تميزت الصادرات الهندية في الأسواقِ العالميةِ

India manufacturing has indeed arrived on the global market with its growing competitiveness. Manufacturing exports have risen from Rs US$ 6 billion in FY2000 to more than US$ 22 billion in financial year 2005, as per an ETIG study of 1,025 companies for which financial year 2005 data is available. This corresponds to 30% CAGR against a sales growth of 15%. As a result, share of exports in total sales has nearly doubled to 14.2%. Chemicals, metals, auto and auto ancillaries have seen maximum increase in exports. Chemicals and metals have seen exports rising at 37% over this period.

IMF gives high marks to Indian economy

يَعطي صندوق النقد الدولي العلامات العالية للاقتصاد الهندي.

With the Indian government steaming ahead with reforms, the prospects for the country's economy are "very good," the Managing Director of the International Monetary Fund (IMF) Rodrigo Rato said.  "The Indian economy is on a very strong footing with a very strong growth. We certainly share with the Indian government and Finance minister the need for special vigilance against inflationary pressures," he said.  The IMF managing director said, "India is one of the countries dealing with the pressures of translating to the consumer the reality of oil prices". He also congratulated Indian authorities for the implementation of the VAT reform. Turning to the global economic outlook, he said that IMF projects world economic growth of 4.3 per cent in both 2005 and 2006. 

Satyam among Asia's best firms: Forbes

شركة ساتيام للكمبيوتر بين أفضل شركات آسيا: مجلة فوربز

Malaysian budget carrier AirAsia, Singapore water treatment firm Hyflux, Philippine fastfood giant Jollibee and India's Satyam Computer are among Asia's best for companies with annual revenues under US$ 1 billion, Forbes Asia magazine said.  Japan led this year's list with 38 winners, followed by Australia with 25 companies, Forbes said in a statement naming the 200 best Asian firms with earnings of under $1 billion a year.

India is "one-stop shop" for retailers and apparel companies

الهند "دكان شامل" لشركاتِ الملابس والباعة.

India has now become the second most preferred alternative after China in textiles and emerged as a "one-stop shop" for retailers and apparel companies looking for a reliable destination for their sourcing solutions, a CII study has said.

Korean engineering firms plan base in India

تُخطّط شركات الهندسة الكورية إقامة مقرها في الهند.

After the success of chaebols such as Hyundai, Samsung and LG in India, Korean electrical manufacturers are now looking to set up manufacturing base in the country. Electrical and heavy engineering companies such as Hyundai Heavy Industries, Hyosung, LS Group (formerly a part of LG) and Doosan Heavy Industries are considering making India their manufacturing hub.  The aim is to export electrical equipment such as transformers, gas insulated switch gears, and circuit breakers to the Middle East.  The plan is to tie up with a local manufacturer to make equipment meant for exports to the Gulf, or set up a wholly owned subsidiary in India. Right now, Korean electrical exports to the Middle East are negligible, because of the large distance covered.

Third India- Arab Summit on Socio- Economic Relations

قمّة الهند - العرب الثالثة حول العلاقات الاقتصادية الاجتماعية.

 

The Associated Chambers of Commerce and Industry (Assocham) will be organising the third India Arab conference on Socio - Economic Relations on 16th November 2005 at ASSOCHAM House, 47 Prithviraj Road,  New Delhi. This Conference will complement and reinforce the strong India Arab bilateral relations. The Conference will have the following sectors covered in the deliberations:

  • Create awareness on the emerging economic trends and outlook on both the regions;
  •  Discuss issues of concern related to Indo-Arab trade and investment;
  •  Prospects of Joint Venture between Arab and Indian businessmen.

Saudi business representatives are invited to participate in the conference which shall provide them an excellent opportunity to interact with the visiting business delegation as well as the top Government officials. For more details please contact: 

Ms. Priyanka Kapoor/Mr. Sameer
The Associated Chambers of Commerce and Industry of India
Corporate House, 147 B Gautam Nagar, Gulmohar Enclave, New Delhi
Phone: 91-11-26512477-79, 91-11-51643407-10
Fax: 91-11-26512154
Email: international@assocham.com, assocham@nic.in

Website: http://www.assocham. org/events/showevent.php?id=56

 

 

 

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