It's been a fun-filled 38 years for the Amul girl. The hoarding campaign has been sent to the Guinness Book of World Records as the longest running outdoor campaign. The pun-loving girl with the fringe was created in 1966 by Sylvester Da Cunha, who was then with ad agency ASP. Says Sylvester, "We wanted to take a different approach and do away with the usual farm images and look at food as fun." So he and Eustace Fernandes, the artist, came up with the polka dot kitted girl. The reason it has worked for so long," says Rahul Da Cunha, who now oversees the campaign, "is because it's spot-on, it's subtle and humourous." Thirty-eight years later, the Amul girl's showing no signs of tiring.

Courtesy: The Economic Times, January 24, 2004

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Moody's Investors Service has upgraded India's ratings to an investment grade, citing rising foreign investment into Asia's third largest economy and "vibrant" economic growth. Moody's upgraded India 's country ceiling for foreign currency bonds as well as the government's foreign currency issuer rating to Baa3 from Ba1. Moody's said the principal driver behind the rating changes was the reduction in external payments vulnerability. " India 's foreign exchange reserves have increased to over $100 billion, a $30 billion rise in the year since these ratings were last raised," said a Moody's statement. "This amount is more than twice the value of the country's external obligations due over the next year and is also nearly large enough to cover a full year's current account payments," it added. The agency said the restructuring of private and some public industry, which had benefited from the lowering of import tariffs and restrictions as well as foreign resource transfers, was being recognised by investors worldwide.

Courtesy: The Times of India, January 23, 2004

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Finance minister Jaswant Singh saw further affirmation of his policy of liberalising external borrowing by sound Indian corporates in Moody's upgrade of Indian foreign currency rating from junk to investment grade. This will help corporates access funds abroad at lower rates and also benefit the Indian economy, according to him. "I have always believed India to be investment grade. This is not hyperbole but this is reality", he said. At the same time, he was of the view that the recognition by the rating agency was significant. "Der Aaye Par Durust Aaye" remarked Singh. Mr Singh pointed out the recent policy measures taken by the government on external commercial borrowings would enable Indian companies to access funds at good rates.. On the whole, the upgrade will also give benefits to the Indian economy", he said. ' India was always investment grade.'

Courtesy: The Economic Times, January 23, 2004

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The growth story gets reinforced further, with December data for the core sectors turning bullish. The index for core sector industries grew 5.9% during December 2003, as against 4.4% growth in the corresponding month the previous year. December 2003 marked the highest growth figure for the six infrastructure industries so far this fiscal. Among individual sectors, petroleum refinery products registered the highest growth at 9.3%, although this was largely attributable to the negative growth in the sector a year ago (-7.1%). Crude oil and electricity sectors too posted higher growths compared to year ago period at 3.1% (1%), 4.8% (2.8%). Coal sector grew by 6.1% (6.8%) and finished steel grew by 7.5% (8.1%).

Courtesy: The Economic Times, January 22, 2004

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An eminent American economist, who had predicted in the early fifties how computer technology would one day thoroughly transform business, has said India is becoming a powerhouse very fast. "The medical school in New Delhi is now perhaps the best in the world. And the technical graduates of the Indian Institute of Information Technology in Bangalore are as good as any in the world. Also India has 150 million people for whom English is their main language. So India is indeed becoming a knowledge centre," said the 94-year-old guru Peter Drucker in an interview to the latest issue of ' Fortune ' magazine. "What is emerging is a world economy of blocs represented by NAFTA, the European Union, Asean. There is no one centre in this world economy. India is becoming a powerhouse very fast." He said "everybody says China has eight per cent growth and India only three per cent, but that is a total misconception. We don't really know. I think India's progress is far more impressive than China's."

Courtesy: The Economic Times, January 21, 2004

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Exports will be the engine for India's growth. This was the message from the ETIG Knowledge Forum - 'Enhancing India's Exports', held at Mumbai's ITC Grand Maratha last week. The mood was upbeat, but was tempered by the reality of stifling regulations and poor infrastructure - both hinders full realisation of India's export potential. The knowledge forum, the third in a series of four seminars on exports, was organised by the ET Intelligence Group, in association with DHL Worldwide Express. . Both Mr Parthasarthy and Mr Jaiswal revealed their strategy of entering overseas markets, establish a brand, showing commitment to the market and then expanding to nearby locations. Listing acquisitions as the preferred mode of overseas expansion, both emphasised the need to leverage on local knowledge and human resources to establish leadership in a market. Brand India is now at least received with better respect that ever before. The banking sector is also gearing up, looking to invest right across the business cycle, and not just in manufacturing or finance, explained Mr Sridhar. Today, India's banking sector, as a result of consolidation and deregulation, is much more sophisticated, integrated and most critically safer than ever before. According to Mr Callen, India is the largest growth market outside China. He also noted that improved exports growth helped to upgrade domestic markets and logistics. Moderating the session, Mr Ranade noted that way back in 1991, the balance of payment crisis started with the external sector. Today the same sector is becoming India's strength.

Courtesy: www.economictimes.com, January 20, 2004

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In what can be seen as a new hope for further negotiations under the aegis of WTO forum, the European Union said it was willing to accommodate some of India's concerns on agriculture. EU Trade Commissioner Pascal Lamy who was in India stated after his bilateral meeting with Commerce Minister Arun Jaitley that the EU was ready to negotiate based on concerns of developing countries. 'Lamy, on a tour of some Asian countries to break the impasse in WTO talks, said, ''EU perfectly understood India's concerns on subsistence agriculture and it was willing to see how this could be accommodated.''

EU was willing to reduce duty to zero level if India and other developing countries could furnish a list of farm items which they wanted to export to Europe, he said. On resumption of talks he said India was ready and so were others and EU would make sure that 2004 would be an active year for trade negotiations. Hailing the positive developments in Indo-PAK relations and steps towards a South Asian free trade area, the European Union offered to share its expertise in establishing a common market, customs union and common currency in the region.

Courtesy: The Indian Express, January 20, 2004

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The nation's economy is on a roll and the government predicts growth will top eight per cent for the second half of the year - putting it in the same league as China. Meanwhile, the stock market has shot up to record highs and foreign exchange reserves have topped $100 billion. "This is not unreal, this is not euphoria. This is real. The Indian economy is heading for higher growth," said Anand Mahindra, president of the country's leading industry association, the Confederation of Indian Industry.

The new upbeat mood has been triggered by a sudden spurt of growth in a host of industries. The mobile phone industry, for instance, is selling some two million new connections each month, making India one of the world's fastest-growing telecommunications markets. Similarly, the auto industry is driving into the fast lane with nine-month sales up by 30 per cent over the same period last year. More than a decade after starting to open up its economy to the world, economists say the country finally looks poised to take off.

Foreign investors certainly believe so, pumping a record more than $7 billion into the stock market in 2003 and driving up the key Bombay share index 73 percent and the rupee close to four-year highs. Meanwhile, India is hitting the headlines internationally for taking jobs from the West, rather than for its teeming slums and rural poor. The fledgling business process outsourcing (BPO) industry has grown by almost 70 per cent over the past year and is hiring around 500 people a day. The industry employs 170,000 -- and that's expected to touch 1.1 million by 2008.

Ever growing numbers of companies are shifting software development, call centres, accounting, insurance claims processing and other jobs to India to take advantage of its low-cost, English-speaking, highly skilled workforce. Some 220 of the Fortune 500 companies around the globe already outsource their informational technology needs to India and more are shifting every month. "India is the brand to beat. It's the default brand," said Partha Iyengar, research vice-president at US-based technology research house Gartner India, referring to India's high technology skills.

Multinationals, domestic firms and investors alike are also salivating at the prospects of a nation of more than one billion where the consumer market still has vast potential. For instance, just 31.6 percent of 192 million households own a TV set and 2.5 percent have a car, jeep or van, 2001 census figures show. The growth of the past decade has put more money in the pockets of the expanding middle class, seen at 250 million to 300 million who are opening up their wallets and spending in shopping malls that have sprung up across India. Spending has been jump-started by a drop in interest rates to 30-year lows as well as by the best monsoon since 1988.

Adding to the feel-good mood is the fact that peace moves with long-time foe Pakistan are steadily gaining momentum.

Courtesy: www.economictimes.com, January 19, 2004

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India, increasingly seen as a global technology outsourcing centre, is taking rapid strides towards becoming the world's manufacturing hub for compact cars.Pipe dream? Not really, when you start assessing the growth of exports of small cars to countries as far as the Netherlands, Britain, Nigeria and nations closer home like Bangladesh, Nepal and Sri Lanka in the last over one year.

For example, Maruti Udyog, a business unit of Japanese vehicles major Suzuki Motor, is well set to achieve the export target of 50,000 units in the fiscal year ending March 31, up from some 32,000 shipped overseas in 2002-03.Over 70 percent of Maruti's export is likely to be accounted by the Alto compact car, which is one of the top-selling models in its class in the Netherlands and also enjoys considerable market presence in Finland, Austria and Ireland. Hyundai Motor India, the local arm of the South Korean automobile giant, exported 30,000 cars from India in 2003. This year, it is targeting 70,000,a whopping growth of over 100 percent. And Tata Motors, a cars and commercial vehicles making arm of Tata Sons, one of India's top business houses, will make 100,000 hatchback for Britain-based MG Rover over the next four years.

"India has all the ingredients in place to become the worldwide manufacturing hub for small cars in the next couple of years," said noted automobile industry expert Tutu Dhawan. "The country is well known for its very strong auto component manufacturing base that meets global quality standards," said Dhawan. "Add to this availability of a huge pool of skilled engineering professionals at lower costs, then there is no reason why India can't emerge as a strong contender to the tile of global manufacturing hub for compact cars."

India, Asia's third largest economy, has emerged as a large car market in recent years. The country of over one billion people, where only six out of every 1,000 people currently own cars as compared to nearly 500 in developed economies, is expected to see an explosive growth over the next few years. In the fiscal year ending March 31, total car export from the country is tipped to cross the 100,000 mark, up from a mere 20,000 a few years ago."India has already become one of the largest small car producers in the world," said Rajiv Dubey, VP (commercial and passenger car business) of Tata Motors Ltd.

Courtesy: The Pioneer, October 18, 2004

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London: Steel magnate Lakshmi N. Mittal is the third richest person in London with his fortune assessed at 2.5 billion. The London-based billionaire's LNM Holdings is expected to make over 1 billion in profits on sales of 7.4 billion this year, according to latest figures released by market research group EGI.

Courtesy: The Asian Age, October 18, 2004

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New Delhi: India's exports have nearly doubled to $51.7bn in '02-03 from $26.3bn in 1994-95, in less than a decade since it became a member of the World Trade Organisation (WTO) in 1995. India's share in total world exports of goods and commercial services has gone up to 0.9% in '01 from 0.6% in 1995, an official release said here today. In total world imports of goods and commercial services during the same period, the country's share has increased to 0.99% from 0.78%. By being a World Trade Organisation member, India also avails of the most favoured nation (MFN) treatment, and national treatment for its exports to other WTO members. Regarding textiles, in accordance with the WTO agreement on textile and clothing, all WTO member countries were required to integrate specific volumes of their textiles and clothing trade into the World Trade Organisation framework. In addition, the size of quotas was expanded annually by the restraining countries that maintained the quota. These measures have led to an increase in market access, to a certain extent.

Courtesy: The Economic Times, January 15, 2004

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New Delhi: Accepting that there was no escape from outsourcing in the changed world economic environment, Britain today asked India to lift the cap on foreign investment in areas such as banking, insurance, accountancy law and financial services. It also offered to act as a bridgehead for India to European Union.

Though outsourcing is a sensitive issue in the United Kingdom, yet there was realisation it (outsourcing) was inevitable and beneficial. "Outsourcing is an inevitable and economically beneficial consequence of globalisation. But so too will Indian companies benefit - we believe - if you allow full access in India to services such as insurance, banking, accountancy, law and financial services - where we in Britain are world competitive," he said.

Mr. Arthur told the meeting that after the United States and Japan, the U.K. was the third largest investor in the country, while India has become the eighth biggest investor in Britain. Indian companies were doing business through the London Stock Exchange that had greater financial depth than both NYSE and Nasdaq combined.

He said Britain was keen to see greater Indian access to the E.U. markets for agricultural produce. The two countries have a shared interest in avoiding protectionism. While Tourism and Education afforded great opportunities to build bridges between the peoples of the two nations, his country was ready to act as the bridgehead for India to the E.U.

Acknowledging that India was fast emerging as an international player and economic powerhouse, the High Commissioner said New Delhi is a key partner with which his country had a shared priority to combat terrorism and strategic cooperation for peace and security.

"Development policy is a key element in our bilateral relationship Emphasising Britain's support to India's permanent membership to the United Nations Security Council, he said six senior British Ministers would be visiting the country this year and hold discussions for closer bilateral cooperation in areas such as counter-terrorism, sustainable development, climate change, weapons of mass destruction, energy supply and a liberal global trading regime which already stand identified.

Courtesy: The Hindu, January 15, 2004

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New Delhi: In the seventh consecutive year of biotech plants, India has hiked its crop acreage by 100% thanks to the increase in Bt cotton area. Planted for the first time in '02, the country doubled its Bt cotton area to around 1000,000 hectares in '03 despite all the teething troubles over spurious seeds and lower-than-expected yields.

However in terms of world ranking India lags behind. The world leaders in biotech crops are Brazil, South Africa, the US, Argentina, Canada and China. The top rankers were responsible for 99% of the global biotech crop area. Of these China and South Africa experienced the greatest annual increase with both the countries planting increasing the biotech crops area by one third than in '02.

Courtesy: The Economic Times, January 15, 2004

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Mumbai: Indian gems and jewellery exports have crossed the $10 billion mark for the calendar 2003. According to the Gems and Jewellery Export Promotion Council (GJEPC), provisional figures for 2003 indicate exports of $10.646 billion against $8.708 billion in the previous year. Of the total, cut and polished diamonds accounted for $8.023 billion ($6.894 billion), jewellery $1.857 billion ($1.342 billion), coloured gemstones $187.51 million ($189.07 million) and other items (including rough diamonds, non-gold jewellery, pearls and synthetic stones) of $578.64 million ($282.03 million). Sanjay Kothari, Chairman, GJEPC, said, "The industry has grown from its modest origins in the 1960s till date as the world's largest manufacturing centre of cut and polished diamonds contributing to 60 per cent of the world's supply in terms of value, 85 per cent in terms of caratage and 92 per cent in terms of pieces. India has achieved this status in a year when the global economy was plagued with SARS and the Iraq war. We are confident of successfully accomplishing exports of $16 billion by 2007.'' Further, Mr. Kothari added that the GJEPC had a two-fold vision of doubling gems and jewellery exports and also attaining the position of being the foremost trading centre in the world. Towards this end, the GJEPC recently set up Indian Institute of Gems and Jewellery (IIGJ) along with the jewellery product development centres that offer a variety of courses in jewellery crafting and manufacturing.

Courtesy: The Hindu, January 15, 2004

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We are in a globalised environment with every nation doing its utmost to modernise its economy and give its people a better life. India is clearly on a growth trajectory, with success achieved in key areas like foreign exchange reserves, interest rates and currency stability. The economy after a modest growth of 4.4% in 2002-03 is poised to grow at over 7% this fiscal. But to sustain this recovery and translate the gains into a better quality of life for its people crucial decisions are required. And it is this context that the finance minister's recent announcements should be viewed. A brief look at the announcements will underline how crucial they are. There is the across-the-board reduction in customs duty and further reduction in duty on key inputs for industry like coal and steel. A special thrust through duty cuts has been given to the IT sector so that India becomes a powerhouse in hardware too. To spread education and reduce the rich-poor divide, customs and excise duties on computers have been slashed. Power shortages are a grim reality of modern India. Incentives are being given for putting up power projects. Taxes on domestic airfares have been cut to help tourism - the biggest employment generator and forex earner. To prevent rampant smuggling duties on cellular phones has been cut. Many new projects for the common man are on the anvil. To improve rural infrastructure a massive Rs 50,000 crore is to be spent. To help small businesses a Rs 10,000 crore fund is proposed. Senior citizens are being given a better deal with higher coupon bonds.

Courtesy: The Economic Times, January 14, 2004

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Persons of Indian origin working abroad are the most generous in the world, when it comes to sending money back to their family in India. Remittances to India are the highest in the world today, amounting to 15 per cent of the world total. The money coming back to India is seven times that of China, according to data collated by ETIG from records of various central banks. For the period January to September 2003, money sent back to India amounted to $13.3 billion, well above remittances to Mexico and Philippines. This has been made possible by both the large number - as many as 20 million - of professionals of Indian origin working abroad, as well as the high average amount sent back by Indians. The average Indian remittance from the US, the highest sending country in the world, is also the highest among all other countries. Average Indian remittances were $1,104 for the period January to December 2002, which is 38 per cent higher than the average remittance sent to Pakistan of $790, the next highest.

Mexico and Philippines are way behind India in this category, with their average remittances from the USA at less than $400 over the period. High Indian remittances make the south Asia region the second highest recipient of total worker remittances, after Latin America and the Caribbean. Latin America accounts for 25 per cent of total remittances while south Asia accounts for 20 per cent. But while the money going back to Latin America are diffused among a number of countries, India has a very high share in south Asia's total remittances. India has a share of more than 70 per cent of overall South Asia's remittances, which is the largest share that any country has in the region it belongs to.

Courtesy: The Economic Times, January 14, 2004

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Along with the success of Indian pharmaceutical companies in the global context, another allied industry, gelatin too has come into the limelight. India has a cost advantage for the product, which finds applications in food, pharmaceutical and photographic industries. Production in India currently forms just 5% of the global production of 272,300 tons/annum. Globally, more than 80% of the production of gelatin is undertaken in high cost countries in Europe, America and Japan. The leading international players are D G F Stoess and Sobel N V. Indian companies, due to the low cost of raw materials in the country find it easy to tie-up with large international clients. Out of the 14,000 tons/annum produced in India, almost 36% are exported. The leading exporter of gelatin in India is Sterling Biotech, whose clients include Cardinal Health inc. USA, ranked 23rd in the Fortune 500 list. Raw material costs in India are about 30% lower than that in the high cost countries. Owing to the availability of raw materials, and the technology which makes indigenous production possible. The future for the industry largely depends on the growth of the pharmaceutical industry. Globally, the growth is expected to be around 3%.

Courtesy: The Economic Times, January 14, 2004

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"The Asian countries should take a concerted action against the outsourcing backlash by the US, Europe and Australia to challenge the growing threat of protectionism while charting out a three-point agenda for the Asian nations on taking it to the masses," Arun Shourie, Union IT and Communication Minister said at the inauguration of the Second Asian IT Ministers' Summit in Hyderabad. Outsourcing backlash is a common concern now in the Asian countries, we should take a concerted view and action on the outsourcing backlash unleashed by US, Europe and Australia and face these challenges with a strong counter force." Lauding India's IT sector and its professionals as exemplary in the global scenario, he said 35 per cent of the R&D is done by Indians and 100 of the Fortune 500 companies have set up their R&D centres in India.

Courtesy: The Indian Express, January 13, 2004

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A large number of Indian companies have made overseas acquisitions in recent times. Many others are also waiting in the wings looking for opportunities. According to data available from Capitaline, as on March '03, several companies had net worth running into thousands of crores. ONGC leads the pack with a figure of over Rs 35,000 crore. The rest of the biggies include a mix of public and private sector enterprises, with the oil and gas sector having a strong presence. In fact, there were 14 companies with a net worth of more than $1bn. This list does not include banks and financial institutions. The existing data shows big deals in excess of $100m have been few and far between. These include Reliance Industries' proposed $211m acquisition of FLAG Telecom, and the $1bn spent by ONGC to pick up a stake in Russian oil fields. Tata Tea's acquisition of Tetley at around £270m also falls in this category. The recent big shoppers abroad include Ranbaxy's acquisition of RPG Aventis, where the value of the deal has not yet been announced. Some other buyers are auto component companies like Bharat Forge ($23m), Sundaram Fasteners ($1.5m), infotech majors like Infosys ($22.9m), Wipro ($18.7m) and i-flex ($11.5m), which have acquired small software companies abroad. Wockhardt ($18.2m), Asian Paints ($12.6m) and Indo-Gulf fertiliser ($51.6m) have also made investments abroad. The figures in brackets are indicative as they are converted figures into dollars at current rates from estimates available.

Courtesy: The Economic Times, January 12, 2004

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The euphoria over Indian equities is not only being reflected in the form of benchmark indices hitting lifetime highs. The strong showing of the Indian markets is also making its presence felt on overseas bourses. In 2004, till date, American Depositary Receipts (ADRs) issued by five Indian companies out of a total 11 companies from India listed on the US bourses rank among the top 50 overseas companies in terms of performance. About 481 overseas companies have issued depositary receipts (DRs) and are listed on the US bourses. It is to be noted that in 2004, the tech-heavy Nasdaq has gained 83.55 points, or 4.17 per cent, at 2,086.92 points, while the Dow Jones Industrial Average stood flat, up 4.97 points at 10,458.89 points. Apart from Sify, another top performing ADR issued by an Indian company is Rediff.com at number five position in the list of 481 companies. Rediff.com has surged 36.88 per cent to $7.20 in 2004. This is followed by Mahanagar Telephone Nigam Ltd (at number 15 gaining 25.65 per cent at $7.69) and Videsh Sanchar Nigam Ltd (adding 20.91 per cent at $7.98 or ranked 31st in the list). Silverline Technologies, ranked 42nd, has till date gained 19.35 per cent at $1.85.

Courtesy: The Indian Express, January 12, 2004

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India, with more than 85 million businesses, is the most entrepreneurial country by volume, says a new study. But the 2003 Global Entrepreneurship Monitor findings also say that because of the country's population of more than one billion, India was ranked as part of the second most entrepreneurial group of countries. Worldwide, the researchers of the study estimated, about 297 million people in the 41 countries surveyed were trying to develop 192 million businesses past their initial launch. The study divided the 41 countries surveyed into five groups, ranging from the most entrepreneurial to the least. The US fell in the middle category with 14 other countries, including Britain, Canada, Australia, Singapore and Argentina. In the bottom group of least entrepreneurial were seven countries that included Poland, France, Russia and Japan. According to national experts in the countries studied, there is a universal perception that governments were ineffectual in promoting or assisting entrepreneurial activity. "It is not clear if this is because governments- as a group- are focusing on the wrong policies or programmes, are ineffective in their efforts, or are just not devoting enough resources to affect the ongoing entrepreneurial activity," the study said.

Courtesy: The Economic Times, January 12, 2004

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The Centre for Monitoring Indian Economy (CMIE) raised its forecast for India 's growth in the year to March 2004 to 8.2 per cent from 7.4 per cent on the back of a strong resurgence in the industry and services sectors. The upgrade comes just a few days after the Reserve Bank of India said the economy would expand at more than seven per cent in the current year, up from 4.3 per cent a year earlier.

Courtesy: The Economic Times, January 12, 2004

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Renowned development economist Lord Meghnad Desai has changed his position on India's globalisation. He now believes that 10 years of globalisation has actually led to reduced poverty in this country. In Delhi to attend the ongoing Pravasi Bharatiya Divas, he spoke to N Vidyasagar.

I used to be very negative and pessimistic about India 's capacity for sustained growth. Today, my progress report on India is a positive one. About two years ago, India turned the corner. In the 1990s, I had my doubts whether India was seriously committed to globalisation. But 10 years of change, in cumulative terms, has paid dividends. Top line Indian businesses are now modernised. I am very impressed by the way Tatas and Birlas have restructured. Ambanis were always a modern company. Earlier, the Indian bourgeoisie was not ready for capitalism. Now, it is. India no longer has the loser or victim attitude. Indians now have a 'can do', 'can succeed' and 'can win' mentality. There was reluctant globalisation in the mid-90s. When this government came into power, nobody had much hope from the BJP and NDA. When the BJP was in opposition, it had adopted anti-globalising rhetoric just as the Congress is doing now. People used to say the BJP is a shopkeeper's party. When they got into power, the BJP understood the game. The credit for this should go to prime minister A B Vajpayee. Achieving high GDP growth. It is difficult to reduce poverty with low growth. It is not impossible, but very difficult. Because, only autocratic governments can practise that kind of redistribution. We don't have that kind of government. A democratic government really needs extra growth. Globalisation in the last 10 years has been good for poverty reduction. The great myth in the early 90s was that globalisation would worsen poverty. That has been proved false. India has to enhance the growth rate. Then it has to follow policies, which enhance the poverty impact of extra growth.

Basically, a lighter government in terms of economic market intervention. Also, lower deficit and tax burden on the people. India has to take infrastructure and human development issues very seriously. The government must redirect money to core human developmental issues. Literacy has to be pushed. Literacy is a great force. We ought to have a major rashtra yagna on education because the advantage India has in IT will only be maintained if there is continuous improvement of the labour force through investment in education, research and development... Employment generation in India is happening in the know-ledge-based industry and not at the lower end of manufacturing. The government has to liberalise labour laws. If our labour market practices were more flexible and if we could generate finance for small industries, we could grow exactly like China . There has been a lot of talk about job losses in the West and the resultant backlash against outsourcing to India ... The WTO rules are straightforward. There is no justification for any restriction. That's one part. Then, we have the General Agreement on Trade in Services (GATS) coming up. GATS is supposed to open up global competition. I have always held that GATS is good for Third World countries. I think we should strongly protest against the public sector autho-rities in the US , in places like New Jersey , who complain about outsourcing. Because, where it suits them, the developed countries preach competition and liberalisation. I think the UK government has been very good on this. Take, for instance, Barclays in the UK which has got the union to agree about outsourcing. America is more scared. But that's only in the public sector. The American private sector is not worried because outsourcing will help improve profitability. But if we win on outsourcing we have to be in a position to allow competition in our territory.

Courtesy: The Economic Times, January 10, 2004

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Oil and Natural Gas Corporation has found positive indications of oil reserves in the Sunderbans offshore and reserves of methane gas at Ranigunge coal belt in West Bengal during sustained survey operations, as drilling work is on by the agency at Gobindapur in East Midnapore district. Raha, who had an hour-long meeting with Chief Minister Buddhadev Bhattacharjee at Writers' Buildings here, said survey work had been done in the Sunderbans offshore with the help of ocean botton cable (OBC) technique due to severe difficulties posed by the high silting in the seabed. He said that drilling would be taken up in four to five rigs in the Sunderbans offshore within four to six months.

Courtesy: The Economic Times, January 10, 2004

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If '03 saw the beginning of cross-border deals, you can bet your shirt that '04 will see an all-time high in such transactions. The prime minister today announced that Indian corporates will be freely permitted to make overseas investments up to 100% of their net worth. This could be either through an overseas joint venture or a wholly owned subsidiary. This may have become necessary with Indian corporates emerging as global players and the increasing traffic of cross-border deals. Currently, the automatic route is available up to a limit of $100m. With this ceiling now removed for large Indian corporates, there will be considerable flexibility in acquisitions as well as significant reduction in the time taken to sew up a deal. Indian corporate entities now also have permission to go "global" in the agricultural sector. This will enable Indian companies to take advantage of global opportunities and also to acquire technological and other skills for adoption in India. According to finance minister Jaswant Singh, companies could now think of getting into contract farming abroad, which offers considerable potential.

Courtesy: The Economic Times, January 10, 2004

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Corporate India can now prowl on global companies priced above $100 million without obtaining permission from the government and bid big against competition for the target takeovers. Besides, the government decision to allow Indian corporate for the first time to invest overseas in the agriculture sector, is expected to see a flurry of activity. Companies like Dabur, ITC, Barista, Satnam Overseas will benefit from this move. Companies will now begin to buy out farms, coffee plants and tea gardens and orchards. India Inc is thrilled at Prime Minister AB Vajpayee's announcement of extending this freedom to companies. "We are moving away from a mistrust based system to a system where companies are being trusted. This is a big step in the liberalisation process and reflects the confidence and strengthening of the Indian MNC," said CII DG Tarun Das. "Companies can now keep sensitive information at a distance from competition. Indian companies can now make it to big deals which are time bound," said Sunil Kant Munjal, MD, Hero Cycles. "Opening up of doing agricultural sector overseas is a major bonanza." Buoyed by productivity gains, financial reforms, a strong rupee and bulging forex reserves, Indian companies are thinking global. Sectors bullish on going global include auto, pharma, infotech, chemicals, light engineering, entertainment. Aditya Birla group is going global aggressively and has acquired companies in Australia , China and Indonesia . Dabur has acquired three companies this year. Tata's slogan this year is globalisation; Hindalco is buying out Aluminium firms. Ambanis, Ruias, Mahindras, and strong consumer group companies like TVS, Asian Paints and Bajaj - they are all on the prowl, out to capture developing markets. Reliance is buying out FLAG Telecom for $212 million and Tata Motors acquiring Daewoo Commercial Vehicle truck unit for $118 million. Already investment bankers and private equity managers are chasing India Inc with cash to close the deals. "It is a bold step. But one has to wait till for actual guidelines to come to see whether any riders are attached to it," said Satish Kaura, chairman Samtel group. The move is expected to give boost a many mid-sized Indian companies, as well. With over 50 Indian firms waiting to spread wings, the creation of an Indian MNC Index is also in the works.

Courtesy: The Economic Times, January 10, 2004

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For the FMCG (fast moving consumer goods) consumer, '04 could be one of the best years. The recent mini-Budget has ensured that your favourite brand of soap, shampoo or perfume will become more affordable. It has also ensured that the consumer will have a much wider choice in terms of brands in several categories like soaps, shampoos, creams, perfumes, processed foods among such others. The reduction in peak customs duty from 25% to 20% and the removal of the 4% special additional duty will give the struggling FMCG industry a huge respite in terms of reduced input costs. Import prices of palm oil, a key input for soaps and perfumes is expected to become cheaper. Industry players said the reduction in import duties would help companies absorb the recent hike in commodity prices. Adi Godrej, chairman, Godrej group told ET that the FMCG industry will get globally competitive. The industry is mainly banking on a pick-up in rural consumer demand after the Rabi harvesting in April '04.

Courtesy: The Economic Times, January 10, 2004

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Apollo Hospitals Group (AHG) is looking at picking up nominal equity stakes in overseas hospital projects, located in Bangladesh and the Mauritius. In both these projects, AHG is currently working as the project consultant. Sources close to the development said the process is currently in advanced stages of talk and is expected to be finalised very soon. The development comes at a time when Apollo had decided not to go in for any further investment after picking-up 49% stake in the recently operational Apollo Gleneagles hospital in Kolkata. The 330-bed super-speciality Bangladesh unit, which is promoted by STS Holdings Ltd and is expected to be operational by December 2004, would see an investment of $31 million and is funded via $15.5 million in equity and $15.5 million in a debt fund. It is learnt that the promoters of STS Holdings have offered a 10% equity stake worth $1.55 million to Apollo. For the Med Point Hospital Ltd-promoted Mauritius unit, which is undergoing an expansion programme, sources said that AHG is planning to pick up a nominal equity stake worth $1,00,000. It is also learnt that Apollo has bagged the operations and management contract for the Bangladesh hospital.

Courtesy: The Economic Times, January 10, 2004