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
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
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
Jun. 14 – In a move to honor its commitment to develop its telecommunications infrastructure, Telecoms Minister Kapil Sibal confirmed that India’s Department of Telecommunications (DoT) has cleared a proposal to establish a total of 2,199 solar-powered mobile towers in regions which are affected by terrorist activity.
India has recently experienced attacks in many of its lesser-connected regions from Maoist extremists. It is hoped that the establishment of these towers will bolster regional security and connectivity.
The proposal – which will take about one year to build – is worth a total of Rs 3,046.12 crore (US$530 million), and will be funded by the Universal Service Obligation Fund (USOF) of India.
Mar. 27 – A report by Indian Brokerage Firm Angel Broking states that Indian IT outsourcers have doubled their share in total worldwide IT spending over the past six years. Furthermore, the larger Indian IT companies have performed better than other global players in the same period.
In 2007, India’s IT companies accounted for US$31 billion, or 4.8 percent of the worldwide IT spending of US$641 billion. This year, it is estimated to have risen to US$77 billion, or 9.8 percent of the global total IT spending of US$785 billion.
The report also finds that the Indian outsourcers’ share in the total revenues of the top 13 global IT companies rose from 7.7 percent in 2007 to 14.3 percent in 2012. Meanwhile, the share of non-Indian IT multi-national corporation’s dropped from 92.3 percent to 85.7 percent. Continue reading
By Gunjan Sinha, Associate, Business Advisory Services, Dezan Shira & Associates
Mar. 11 – With the advent of high-capacity broadband telecommunication systems in India, along with constantly evolving computer processors and video compression techniques, video conferencing has become a regular and popular feature for businesses across the country.
The regular use of video-conferencing has lead to the increased involvement of people who are now able to participate in meetings and communicate via audio and video channels without the need for an intermediary or actually being physically present at the meeting. Continue reading
Jan. 9 – The Indian government has proposed significant curbs to the importation of foreign technological products. If successfully implemented, this regulation will require a large percentage of technological goods to be manufactured locally. This plan reflects the government’s strong desire to compel foreign firms to increase their manufacturing operations in India.
While the specifics of this plan are still in draft form, it is causing much anxiety among global technological companies. To comply with this regulation, foreign firms would have to quickly establish factories within India or risk losing their current business. Continue reading
By Ian Bhullar
Jul. 18 – The strong performance of Tata Consultancy Services (TCS) in the three months up to June, reported last week, are an indication of the continued potential of Indian IT outsourcing services in spite of adverse market conditions in the United States and Europe.
TCS recorded a net profit of INR32.8 billion from March to June, and revenue of INR148.7 billion, up 37.7 percent from a year ago. Over the last four quarters, the company has recorded steady volume growth of 3.3, 3.2, 6.3 and 7.4 percent respectively. Continue reading