June 17 – Goldman Sachs authors of the famed BRIC's report of 2004, which outlined the emergence and dominace of Brazil, Russia, India and China by 2050, has recently published a 10 point roadmap for the Asian subcontinent. The roadmap points out India's flaws and how the country can make constructive changes to emerge as the second largest economy next only to China's by 2050 when it would have a gross domestic product of $40 trillion.
Written by Jim O'Neill, chief economist at Goldman, and Tushar Poddar of the Asia Economic Research team, the report indicates that India needs to improve its governance, control inflation, introduce credible fiscal policy, liberalise financial Markets and increase trade with its neighbours. It also needs both to significantly raise its basic educational standards, and increase the quality and quantity of its universities. The country needs to boost agricultural productivity, improve its infrastructure and environmental quality.
to read the entire report click here.
June 17 – Foreign direct investment into India has surged to over US$25 billion in 2007-08 and the country's Foreign Exchange Reserve crossed US$341 billion as of on Tuesday, Ashwani Kumar, Minister of State for Commerce and Industry the Hindustan Times reported.
To support his argument of the sustainability of GDP growth of over 8 per cent in the long run, he observed that India had the advantage of a huge young workforce (24 percent of the population are below the age of 28 years, 54 percent of the population are in the working group) and a very high savings and investment rate (over 35 percent of GDP).
June 12 – With the Barack Obama winning the democratic seat, and John McCain being his only rival, its time India decided which candidate its going to root for. The next five years are crucial to India-US relations as the world gets smaller and the economies more inter dependant. The Sunday Times of India ran an interesting piece on which potential U.S. president would be best for India. Exercpts –
While Conventional wisdom in Indian circles is that a McCain win will result in a broad continuation of Bush administration policies, including a possible revival of the US-India nuclear deal in the event of a favourable political alignment and atmosphere after the general elections. Beyond that, US-India ties, at least from Washington's perspective, would continue to be largely security driven, subject to conservative impulses arising from fears of an extremist Islamist agenda to India's west and an expanding Chinese influence everywhere. Obama on the other hand promises to be different, he will bring in fresh informed change to the region.
June 6 – Following China, Central Europe and Western Europe, India has been ranked the fourth most attractive investment destination in a survey of 834 respondents across the world. The survey conducted by Ernst and Young found the South Asian country being preferred in terms of prospects of alternative business locations, according to the Economic Times.
While China received 47 per cent votes, Central Europe and Western Europe got 42 per cent and 33 per cent votes respectively. With 30 per cent votes, India emerged ahead of the US and Russia, which received 21 per cent votes each.
June 3 – India's export growth accelerated in April as companies shipped more gems, jewelry, oil and other manufactured products to overseas markets, reported Bloomberg.
Shipments jumped 31.5 percent to US$14.4 billion from a year earlier, faster than March's 26.6 percent gain, the government said in a statement in New Delhi today. Imports in April rose 36.6 percent to US$24.3 billion, widening the trade deficit to an all-time high of US$9.87 billion.
June 2 – Global steel giant ArcelorMittal will spend at least $20 billion setting up two new integrated steel plants in India from 2009 onwards, company executives told CNN.
The two projects, based in the eastern states of Orissa and Jharkhand, will be the largest foreign direct investments yet seen in India and will add 24 million tonnes of annual steel production capacity.
Luxembourg-based ArcelorMittal is the world's biggest steel maker, with annual capacity of 120 million tonnes, but has no presence yet in the fast-growing Indian market.
May 27 – India's consumer goods companies are hiking prices across categories as they battle rising costs of commodities such as steel, copper and oil, which are inputs for their products, company officials told Reuters.
Videocon Industries, Mirc Electronics, which owns the Onida brand, Whirlpool of India and Samsung India are among home appliance makers who have either raised prices or plan to do it in coming weeks.
May 20 – The flow of European cash into Indian firms surged more than fourfold last year, jumping to 10.9 billion euros (US$17.0 billion) last year, up from US$2.5 billion in 2006, Eurostat told AFP. Among the BRIC (Brazil, Russia, India, China) countries, India emerged as the largest source of foreign direct investment for the European Union in 2007, thanks to high value takeover deals like Tata-Corus.
Meanwhile, the flow of EU foreign direct investment (FDI) into China — excluding Hong Kong — slumped last year to 1.8 billion euros from 6.0 billion euros in 2006 despite intense media interest in the country as an emerging Asian economic power.