Other Briefings
Indian Oil Workers End Strike
Jan 12 – Buckling under government pressure, 55,000 officers of 14 protesting oil companies in India called off their strike on Friday evening and resumed work. The three day nation wide strike by mid level officers who were demanding higher pay, led to unprecedented fuel shortages, and a 10-20 percent increase in prices of fruits and vegetables across India.
India Invites in Overseas Professionals to Work
Jan. 9 – On Thursday India Prime Minister Manmohan Singh took another step towards preventing the country from sinking further into an economic crisis. After cutting interest rates and increasing FDI limits into the country, the government announced that it was wooing back Indian professionals.
During his annual speech at Pravasi Bharatiya Divas – India's convention to connect with its diaspora, Singh announced that all OCI (Overseas Citizenship of India) card holders who are qualified professionals such as doctors, dentists, pharmacists, engineers, architects and chartered accountants – will have the benefit of practicing their professions in India.OCI cards are issued to those nationals who either are or were citizens of India and now liveor hold citizenship of another country.
Spanish-India trade grows five fold in 2008
Jan. 7 – Spain, a colorful, hot country on the Mediterranean coast increased investments into India five fold last year.
"Spanish investment in India in the first three quarters of 2008 calender year was USD 158 million (or 114 million euros). This had increased by 500 per cent from the previous year," Chief Executive Officer of Interes 'Invest in Spain', Javier Sanz told the Economic Times.
The Second largest country in Western Europe, Spain has a strong industrial base and predominatly invested in the automotive and infrastructure sectors in India. One of the largest Indo-Spanish project till date is the 22-kilometre, 670 million euros Delhi metro project from the railway station to the airport – a joint venture between Spain's Caf (Construcciones y Auxiliar de Ferrocarriles SA) and India's Reliance.
India’s Economy Expected to Emerge Strong from Current Crisis
Jan. 6 – They say whatever doesn’t break you makes you. Going by the thought, India’s economy is expected to emerge from the financial crisis as the fourth strongest economy among G-20 countries. Given its robust forex reserves, high GDP growth rate and various fiscal and monetary measures taken to tackle the downturn, India’s economic growth is expected to follow China, Russia and South Korea according to an Assocham study.
The study which takes into account seven economic indicators relating to size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves, expects more developed economies to grow at a much slower pace compared to India and her Asian counterparts.
India Unveils Second Stimulus Package
Jan. 5 – India announced a second stimulus package to further boost an ailing economy that is growing at its slowest pace since six years. The Indian government announced a one percent cut in policy interest rates (repurchase rate and reverse repurchase rate) to 5.50 percent and 4 percent and also decided to cut the cash reserve ratio by half a percentage point to 5 percent. The move is expected to free up Rs 200 billion (US$4.16 billion) in the banking system.
India’s Nuclear Future
Jan. 4 – The largest trade mission of commercial nuclear executives from America are expected to visit India later this month to discuss business alliances to meet collective energy security demands. The 50-membered high-level delegation, representing more than 30 of the world's leading commercial nuclear companies will arrive in India to pitch for multi-billion dollar sales of reactors to India. India plans to set up new nuclear reactors after getting an NSG waiver on nuclear commerce in October this year.
New Delhi plans to import eight 1000 MW nuclear-powered reactors by 2012. The United States hopes to win at least two contracts, which it feels will significantly boost its atomic industry.
India to Upgrade Railway Infrastructure
Dec. 29 – The Indian railways, often known as the lifeline of the country, announced that they would spend an additional Rs 30,000 crore (US$6.6 billion) to upgrade infrastructure and boost the economy. The sector plans to renew 2,941 km of railway tracks and sleeper sheets along 2,382 km of railway lines utilizing about 344,228 tons of steel during this financial year. Laloo Prasad Yadav, the railway minister announced that the railways would invest Rs 75,000 crore (US$15 billion) to upgrade infrastructure over the next seven years during his annual budget speech in Parliament.
As part of its growth initiative, the Railways have already manufactured 3,000 coaches this year, a year on year rise of 12.5 percent. They will also develop 300 railways stations into model stations and construct 23 world class stations. The Indian railways which run on electricity also have plans afoot to increase electricity generation and capacity, the Economic Times said.
Publishing to Take Off in India
ec. 26 – The publishing business in India is expected to grow manifold next year. While earlier this month the government laid out the final guidelines for local editions of foreign magazines regarding content and advertising, a few days later the foreign investment promotion board cleared the entry of U.A.E. and Netherlands-based publishers. Adding to the optimism in the sector, one of the world's largest book publishers, Harper Colins, said they are looking at India as a major growth center.
Harper Collins, who says their business in India has been growing by 30 percent over the past three years, is especially looking at targetting young urban Indians. They expect the Indian publishing market to grow exponentially as the growth of Indian authors such as Arvind Adiga is fueling the number of english readership in the country positively.
