Dec. 6 – Prime Minister Manmohan Singh highlighted the telecom industry’s potential for continued growth this week during a speech at India Telecom 2013, a trade show and conference sponsored by the Department of Telecom and the Federation of Indian Chambers of Commerce & Industry.
During his speech, PM Singh praised the benefits of India’s growing telecom capabilities and looked forward to continued progress, saying “the expansion of telecom connectivity in our urban areas and later, in our rural areas, has improved our people’s lives in a major way. However, a large part of the vast transformative potential of telecommunications still remains untapped.” Continue reading
Dec. 4 – Volvo announced plans this month to launch its Eicher Pro Series trucks in India with its joint venture partner, Indian automaker Eicher Motors. Volvo points to the country’s enormous growth potential as the driving force for its expansion plans.
Production of the Pro Series will start this February in newly upgraded Indian manufacturing facilities. Over the past years, Volvo-Eicher Commercial Vehichles (VECV) have invested over Rs 1,800 crore (US$288.3 million) into expanding and modernizing production facilities in India, including a first-class engine factory, new assembly lines, a cab factory and cab painting workshop.
Recently, the auto industry has suffered slow growth due to a weak rupee, leading to decreased domestic demand and increased costs for imported parts. Despite this, VECV remains confident in future industry growth. Set to become the world’s third largest automotive market by 2016, India will surpass Japan, Germany and Brazil. Continue reading
Oct. 18 – India’s information technology (IT) sector will enjoy positive results due to a 10 percent fall of the rupee against the dollar from July to September of this year. Depreciation of the rupee has increased the operating margins of export-oriented industries such as the IT sector, which derives the majority of its profits building and maintaining complex software systems for multinational companies. Top Indian IT firms expect quarter-on-quarter revenue growth of 2.5-5.0 percent in dollar terms, led by Tata Consultancy Services (TCS).
Between the weakened rupee and the revival of growth in the United States, investors and analysts are bullish on what is seen as a robust sector with sustainable growth. Most recently, the Bombay Stock Exchange’s IT index has been outperforming its SENSEX index, with large companies such as Infosys enjoying a 3.5 percent share-price increase. Foreign institutional investors who dominate the Indian stock market generally concentrate on large-cap stocks such as Tech Mahindra, HCL Tech, and TCS, but as the IT sector flourishes investment has been trickling down to mid-cap stocks. Continue reading
Sept. 29 – Royal Enfield, the classic British motorbike brand snapped up by India’s Eicher Motors in 1994 following a long British decline and eventual bankruptcy, is set to launch its first new bike in the UK since the brand effectively left Britain.
Royal Enfield, which was purchased lock stock and barrel and relocated to Chennai, now dominates the premium bike sector in India’s market, selling about 113,000 bikes last year – 95 percent of those being larger than 350cc. Eicher is increasing production of the brand to 250,000 units in 2014 with eyes on a significant export sales – including back to Britain. The brand is profitable, making profits last year of some US$168 million as revenues increased 56 percent on 2011. Continue reading
Sept. 24 – The Indian government is currently working to set up a long-term infrastructure trust fund that would be open to both foreign and Indian investors – which would be similar to the real estate investment trusts in countries such as Singapore, Hong Kong and the US – by the end of this year in a move to boost further investments into the country’s wavering infrastructure sector.
Over the past years, India’s infrastructure sector has struggled to secure financing for projects since banks have been unwilling to lend because of policy constraints and since private investors have also been hesitant to provide funding due to the recent volatility within the country. This is where such a trust fund would come in. Continue reading
Case Study: U.S.-based Mylan Pharmaceuticals
Aug. 16 – Right on the heels of Ford Motor’s announcement that their global auto sales manufacturing hub would be in India, U.S.-based pharmaceutical giant Mylan said that the company has additional plans to invest in India. With half its global work force of 20,000 persons located in the country, about one-seventh of its global income is from its India operations – but this is also expected to jump significantly. Continue reading
Aug. 14 – Over the past decade, India has seen various sectors grow within the country. Starting from the services sector (which makes up about 23 percent of the country’s total foreign direct investment (FDI)), India also experienced growth in the following sectors: computer software and hardware (8 percent), telecommunications (8 percent), housing and real estate (7 percent) and construction activities (7 percent).
In addition, the power and oil & gas industries also present significant opportunities for foreign investors looking to get their foot in the door of the Indian market. Given the expanding economy, energy demand is predicted to increase five-fold over the next 25 years, creating a huge potential for returns on investment in these fields.
In this update, we will examine three key sectors for FDI in India: telecommunications, power and oil & gas. Continue reading
Aug. 13 – Seventeen new airports are to be constructed during India’s current 12th Five-Year Plan period, the Minister of State for Civil Aviation, K. C. Venugopal, has informed the Central Government. The 12th Five-Year Plan period runs until 2017.
Included are four airports in Karnataka, three in Maharashtra, two in Kerala and one each in Arunchal Pradesh, Goa, Jharkhand, Madhya Pradesh, Puducherry, Rajasthan, Uttar Pradesh and West Bengal. All 17 airports are listed out below, and an accompanying map can be found to the right. Continue reading