Jan. 30 – After the U.S., France and Russia, Canada and the UK plan to sign nuclear deals with India. Officials from the nuclear power industry of the United Kingdom and Canada lead by their high-profile ministers – British secretary of state for business, enterprise and regulatory reform Peter Mandelson and Canadian minister of international Trade Stockwell Day were in India last week to discuss the nuclear deal.
Energy deficient India has indicated that it needs foreign economic assistance to achieve its aim of building 18-20 nuclear reactors worth an estimated US$27 billion. Industry insiders believe the country will need a total investment of US$150 billion over the next 15 years to help bridge an energy shortfall.
Jan. 29 – Owing to heightened fears of global markets sinking India’s GDP lower, the Indian government released new GDP growth projections for this and the next year. Top government officials said they expect India’s GDP to grow by 7.1 percent this fiscal ending March 31, 2009. Projected growth in the 2009-10 fiscal is expected to increase slightly too to approximately 7 to 7.5 percent. India’s GDP growth was nine percent in 2007-2008, according to official data.
India Inc expects the governement to pump in more money into the economy when they announce their third stimulus package in February. The annual budget, the last budget of the current government is also expected to be highly generous.
Jan. 28 – Following a cut in global capital flows and a drop in orders Indian manufacturing activity contracted in December, marking the second month of declining manufacturing activity. The ABN AMRO Bank purchasing managers' index (PMI), based on a survey of 500 companies, fell to a seasonally adjusted 44.4 in December, falling for the fourth consecutive month to its lowest in more than three and a half years. A reading below 50 signals economic contraction.
Jan. 27 – India’s capital productivity – revenue generated per unit of capital employed – increased 36 percent in fiscal year 2007-08 from 1.13 in financial year 2002 to 1.54 in financial year 2008. This means that revenue generated by companies for every Rs 1 crore (US$204,300) worth of their fixed assets rose from Rs 1.13 crore (US$231,000) in 2001-02 to Rs 1.54 crore (US$315,000) in 2007-08.
Heavy machinery, oil, metals and petrochemical industries benefited most by the increase in capital productivity. As a result of generating more revenue out of the same assets these industries witnessed greater bargaining power and bettered economic prospects. Continue reading
Jan. 26 – Happy Republic Day!! The 26th of January is celebrated as India’s Republic day and today marks the 60th Anniversary of adopting the constitution of India and India becoming a Sovereign, Democratic and Republic state.
There are two days linked with India’s freedom from British rule: the first is Independence Day, and the second, Republic Day. Republic Day marks the day when India celebrates her national identity, free of foreign rule. Although India won freedom on the 15th of August, 1947, she adopted her constitution on the 26th of January 1950. Rajendra Prasad was consequently elected the first President of India.
Jan. 23 – A good education and a highly paid job abroad once meant that that the Indian expatriate male was a prized catch. But once news of the downfall in the U.S. economy hit Indian shores, marriage offers to America based potential bridegrooms have plummeted.
With no security to back them, massive lay offs and no growth prospects parents of young Indian girls are shying away from America returned Indian accountants, investment bankers, software engineers and their ilk. Potential brides are instead looking to men in India, who also offer a good education, a secure job and most importantly the option of not moving too far away from home.
"Since the global slowdown, we have registered a 20 percent decline in demand for NRI grooms," the chief executive of www.bharatmatrimony.com, Murugavel Janakiraman, was quoted as saying by Mumbai's Midday newspaper. Continue reading
Jan. 22 – Manchester United, the world famous British football club and current European Champions, have been looking for a new sponsors for their shirts since the global financial crisis meant that their current sponsor, the AIG Insurance group, is unlikely to renew their contract.
The shirt sponsorship deal valid for four years is worth US$78 million and allows premium positioning of the sponsors name and logo on the front of every players team shirt. Sahara an Indian conglomerate with interests in airlines, financial services and property is currently interested in this deal – the largest in football.
If the deal is struck, it will not only mean that Man U’s players will sport an Indian brand on their backs it will also expand a relatively niche market for football in a cricket crazy nation. Sahara will also not be the first Indian brand to be sported internationally. Ferrari’s F1 car will carry the Tata name on the scarlet cars for world championship honors in 2009. Continue reading
Jan. 22 – Coupled to the west, India based merger and acquisition deals dropped 33 percent in 2008. According to Grand Thornton who released their Deal Tracker report India witnessed 454 M&A deals valued at US$30.95 billion as against 676 deals with a value of US$51.11 billion in 2007. Similarly, private equity also fell by US$8 billion in 2008 to US$11 billion. As a result, the total value of 766 deals (M&A and PE) announced during 2008 was US$41.54 billion as against 1081 deals valued at US$70.14 billion in 2007.
Financial guru’s conclude M&A deals fell in 2008 due to several global and domestic issues. One of the reasons is the overall drop in M&A deals worldwide. Globally M&A deals worth US$2.9 trillion were announced in 2008 as compared to US$4.48 trillion in 2007 and US$3.61 trillion during 2006, registering a fall of 35 percent between 2007 and 2008. Continue reading