• India Inc relieved as government wins trust vote
• India ranks 29th in world competitiveness
• Inflation major challenge for government, admits Prime Minister
• Ahlstrom to set up Rs.2.8 bn fabric plant in Gujarat
• HPCL to set up Rs.4 bn jatropha farm in Chhattisgarh
• Indo Rama to set up US branded furniture chain in India SEZs
• Polaris ties up with UAE's Jumbo group
• Infosys to hire 10,000 people in second quarter
• Infosys invests $1.8 mn in Australia
• Textile exports may touch $22 bn

• India and Thailand ranked in top 15 of World Best Hotels 2008
• German automotive major set up shop in India
• India to market first male contraceptive injection in 2009
• Wilbur Ross to invest $80 mn in SpiceJet
• Credit offtake by India Inc excellent: Kamath
• Indian firm acquires Germany's top ceramic filter makers
• US furniture chain in SEZs as part of India retail plan
• India's British sterling success story
• Laptops sales rising in India
• Bird group launches globally accredited travel, tourism courses

Oberoi Rajvilas, India ranked 2nd best hotel of the year 2008, while The Oriental, Bangkok Thailand stands at 14 th ranked by Travel + Leisure magazine's 13th annual poll. Travel + Leisure's 13th Annual World's Best Awards Readers' Survey Results Announced recently: Five star hotel 'Oberoi Rajvilas Jaipur, India gets the 2nd of top 100 hotels with the score of 95.71, claimed up from the 11th last year. Impressive feature of Rajasthani-style fortress and luxury tents and villas, on the edge of the fabled pink city of Jaipur. The hotel also awarded 4th in the 75 Top Hotels in Asia (2007) and Best Hotels in the World for Service by Condé Nast Traveler, USA, Gold List 2006. While 'The Oriental', Bangkok, Thailand ranked 14 th with the score of 91.94, fall down from the 3th ranked last year. Mandarin Oriental Hotel Group is the award-winning owner and operator of some of the world's most prestigious hotels and resorts. Mandarin Oriental now operates over 10,000 rooms in 23 countries with 16 hotels in Asia, 14 in The Americas and 9 in Europe and North Africa. Singita Sabi Sand & Kruger National Park of South Africa is outstand with the 1 st award in all hotels round the world with a score of 97.50, up one more step ranking as 2nd last year. while Fairmont Mara Safari Club Masai Mara of Kenya grabs the 3rd stage. India get more credits from Oberoi Udaivilas Udaipur ranked 4th and Oberoi Amarvilas in Agra which had been ranked 10 th last year, now gets to 6th.

Courtesy: www.thaindian.com, July 23, 2008

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India Inc heaved a sigh of relief Tuesday after the United Progressive Alliance (UPA) government won the trust motion, hoping economic reforms would now get a push as pressures from Left parties would no longer carry the same weight. "The worst for the Indian economy is still not over. But hopefully the political instability that was adding to the problems and the government's woes now stand hugely diluted," said a leading industrialist. "We hope the government now will concentrate on addressing some pressing issues - like reining in inflation and give a push to manufacturing growth - and put the reforms agenda back on track," the industrialist added. The Left parties, he said, had been preventing the government from taking some key decisions in areas like financial sector reforms in pension and insurance and in divesting state equity in public sector undertakings. The reactions came after the UPA government, led by Prime Minister Manmohan Singh, won the confidence motion, which was forced on it after the Left parties withdrew their outside support on the issue of Indo-US civilian nuclear deal. "We expect that in the next three months some major bills pending in parliament will also be pushed," said Rajeev Chandrasekhar, president of the Federation of Indian Chambers of Commerce and Industry (Ficci). He specifically listed two such bills - on pensions and banking - and said a 10-point agenda to move the reforms efforts forward would be presented to the prime minister Wednesday.

"Once these flurry of reforms are undertaken, the confidence level which had been dropping over the last three quarters in the business confidence survey of Ficci will bottom out and will put the economy back into a growth trajectory." The Associated Chambers of Commerce and Industry of India (Assocham) said the UPA government had won a vote for the future of India and for the pragmatic policies pursued by the pursued by it to build a strong nation. Chamber president Sajjan Jindal hoped the government, with its new coalition partner, would vigorously pursue reforms that are friendly towards people and industry in the remaining tenure. Investors in equity markets, which has been going through a turbulent time ever since the Left parties withdrew support, were equally elated at the government winning the trust vote. "We can expect a good session for the Indian equity markets from tomorrow," Deepan Mehta, a noted stockbroker, told IANS from Mumbai. "It will prove to be a shot in the arm for the government's reforms agenda and confidence will return to the economy and the country." Washington-based industry lobby, US-India Business Council in a statement said it will do its best to ensure the passage of the bilateral civilian agreement through the US Congress. In Mumbai, eminent economist and Planning Commission member Bhalchandra Mungekar said the positive verdict of "the peoples' parliament in this critical time in the country's history" augurs well for our economy. Probably for the first time since Independence, the UPA government has initiated so many measures for the economy, social change and the welfare of the masses, said Mungekar, a former vice-chancellor of University of Mumbai. In Kolkata, Bengal National Chamber of Commerce and Industries president K. K. Navada said he was happy over the outcome. "Now the government is under no obligation to placate the Left. Several reform measures like labour reforms and insurance reforms are due. These are needed to ensure inclusive growth and enable India inc to compete internationally," he said. Indian Chamber of Commerce secretary general (eastern region) Rajiv Singh too welcomed the development. "There will be stability at the centre now, at least for the next six months. At this moment inflation is high. prices of commodities are also rising. The capital market is not doing so well. Considering all these factors, we need stability. So the government's victory in the trust motion augurs well for the country."

Courtesy: www.thaindian.com, July 23, 2008

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German automotive major Continental AG has set up a greenfield plant in India's IT hub to manufacture electronic components for the burgeoning automobile market in the sub-continent. Located in the Bommasandra industrial area on the outskirts of the city, the Rs.2.2 billion high-tech facility, with a research and development centre, will produce instrument clusters for cars, commercial vehicles and two-wheelers, immobilisers and engine management systems for diesel and gasoline engines, electronic control units for power-assisted steering and body control units for interiors. "The booming Indian automotive market has become strategically important for us to deepen our business in the sub-continent. The projected annual growth rate of 15 percent is a huge opportunity to leverage our expertise in vehicle technology and supply affordable components and systems to Indian and multinational OEMs (original equipment manufacturers)," Continental Asian president Jay Kunkel told reporters here late Monday. The Rs.1.4 trillion global major has been shipping a range of electronic components from its plants at Hanover, Germany and Shanghai, China to Indian OEMs. It has also been supplying mechanical clusters, sensors and belts from its manufacturing facilities at Manesar, Gurgaon and Sonepat in Haryana, Pune in Maharashtra and Kolkata in West Bengal. "The recent acquisition of Siemens VDO Automotive AG worldwide for 11.4 billion euro ($18 billion) has brought its product engineering centre and automotive software development centre in Bangalore into our fold with access to their specialisation. The buyout has also pushed our ranking to number five among the world's major automotive suppliers," Kunkel said. Among the Indian and multinational OEMs sourcing electronic components and systems from Continental are Maruti Suzuki, Hyundai, Tata Motors, Ashok Leyland, Mahindras, General Motors, Ford, Skoda, Eicher, Hero Honda and TVS. According to an industry forecast, one out of two cars worldwide will be manufactured in Asia from 2012 as against every fourth car in 10 cars presently, as much of the growth is expected to come from emerging markets like China and India. "In the coming decade, the focus of the automotive industry will be the mega-trend affordable cars, especially in growth markets such as India and China. With the Indian emission norms and safety legislations getting stricter, the vehicles of tomorrow will have more electronics built into them," Kunkel noted. Continental India managing director Markus Distelhoff said the company would invest an additional euro 15 million (Rs.825 million) in the new facility by 2010 to expand the product portfolio and cater to a host of new models planned by the OEMs. "By localising our product manufacturing, we will be able to save not only on import tariffs and transportation costs, but also become competitive in a market where global majors such as Denso, Bosch, Magna and Delphi are present," Distelhoff said. The Indian subsidiary has also bagged a major order from Tata Motors to supply fuel pumps for its upcoming Nano, touted to be world's cheapest car.

Courtesy: www.thaindian.com, July 15, 2008

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The large emerging economies are performing well with China at 17th position followed by India at 29th, Brazil at 43rd and Russia at 47th position, says IMD's World Competitiveness Year Book 2008. Larger markets like China, India and Russia have come into the picture and they are providing new dimensions to world competitiveness. These countries are growing very quickly, for example the growth rate is 11 per cent in China and eight per cent in India and Russia, respectively. And this has a pull effect on smaller economy. India at 29th position is still struggling with problems of infrastructure. Russia at 47th position has big revenues from oil and gas but has problems related to economic diversification and transparency of business legislation and Brazil at 43rd position is clicking for the first time. China has moved from 15th position to 17th despite showing a growth of above 11 per cent. "It is due to extreme growth leading to overheating of economy reflected in terms of inflation as cost of raw materials, cost of consumer goods and increasing cost of food in the country," IMD's World Competitiveness Centre Director Stéphane Garelli said. Secondly, he said that China is consolidating its performance as it has introduced last year a number of legislations like legislation on taxation and legislation of financing the pension fund. "This consolidation has a cost and is very important for the country's future. But somehow this is a bumpy road to growth," Garelli added. He further said that smaller nations like Hong Kong, Switzerland, Netherlands, Austria, Finland and Denmark have benefited a lot due to globalisation of economy. The 20th anniversary issue of the Year Book lists the US at number one position followed by Singapore. Singapore is closing the gap (score of 99.3) with the US and it is predicted that the US would fall from its leadership position as it is in a similar position to that of Japan in 90s. "The past crisis in Japan bears some resemblance with the present turmoil in the US and it is undergoing all sorts of crisis-stock exchange, real estate and credit crunch," Garelli said. When the competitiveness started 20 years ago, Japan was at number one position whereas US was at number three but the scenario has changed and the US is still at number one position whereas Japan is at number 22. The competitiveness index does not only look at economic growth but also looking at managing the path to prosperity. And prosperity is economic growth plus other things, including quality of life and quality of environment. The IMD World Competitiveness Yearbook is a comprehensive report on the competitiveness of nations and is calculated by combining four factors-economic performance, government efficiency, business efficiency and infrastructure through 330 criteria.

Courtesy: www.igovernment.in, May 15, 2008

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The first 'Made in India' male contraceptive injection is set to hit the market as early as next year with final trials under way to test the drug and rectify some minor side effects. The injection - Reversible Inhibition of Sperm Under Guidance (RISUG) - has already been patented in five countries including India, said its inventor Sujoy K. Guha, a biochemical engineering professor at the Indian Institute of Technology (IIT), Kharagpur, West Bengal. 'We are in the last and final phase of the trials on RISUG and the results so far are positive. Already 250 people have taken the injection and after testing the drug on another 250 individuals, we will market it by end-2009,' Guha told IANS here. Asked about the uniqueness of the drug, Guha said: 'It is the only male contraceptive injection that has a prolonged effect for over 12 years. Also, one can potentially reverse the effect if he so desires. 'Besides I have developed a new molecule. This is the first time a polymer molecule is being used as spermicide.' The injection consists of a polymer called styrene maleic anhydride, which renders sperm ineffective.

And what about side effects?
'The drug has no major side effects. However, during trials we found that after taking the injection, about 65 of the subjects developed temporary scrotal enlargements. But things were normalised within two weeks. We have researched on the method of injection that will check such minor effects,' Guha said. The human trial of the contraceptive, backed by the Indian Council for Medical Research (ICMR), started 19 years ago in three centres in New Delhi and 20 other centres across the country. 'So far, the drug failed in the case of five out of 250 subjects during the trial and, that too, because of sudden body movements while the injection was being administered. As a result, the people were double-punctured. But if doctors are trained accordingly then 100 percent success of the drug is guaranteed,' Guha added. The injection has already been patented in India, China, the US, Malaysia and Indonesia. Guha stumbled upon the contraceptive while researching on a method to purify drinking water 30 years ago.

Courtesy: www.indiaenews.com, July 15, 2008

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Prime Minister Manmohan Singh Tuesday said curbing inflation and maintaining growth momentum was a major challenge for the government. In an interaction with editors here, the prime minister said his government had taken a number of measures to rein in inflation and hoped prices would moderate with time, national television reported. "It's not a typical inflation, it's influenced by global factors," Singh was reported as saying. India's headline inflation during the week ended June 28 touched a 13-year high of 11.89 percent, while the growth rate of industrial production decelerated to a six-year low of 3.8 percent. In view of soaring inflation, economists have expressed doubts if India would log an eight percent growth this fiscal, compared to nine percent last year.

Courtesy: www.thaindian.com, July 15, 2008

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American billionaire investor Wilbur Ross, known for turning around bankrupt companies, will invest $80 million (Rs.3.45 billion) in the Gurgaon-based low cost carrier SpiceJet, it was announced Tuesday. "We believe in the long-term validity of the low-cost airline model in India and that fuel prices eventually will stabilise," Ross said in a statement. WL Ross and Co. will make the investment and Ross will join SpiceJet's board, the statement said. Immediately after the announcement of the deal, SpiceJet's shares increased by almost 16 percent to 30.25 after previous day's closing of Rs.27.95. "This is a significant investment for SpiceJet to retain its low-cost model in the slow growth environment. This will help SpiceJet to funds its expansion plans," Spicejet director Ajay Singh told IANS without divulging details of the investment. This would be WL Ross' second investment in India. Last year, WL Ross had struck a deal with apparel maker OCM India for about $37 million. "WL Ross is one of the largest and the most experienced investors in the world. With this investment, we have no doubt that SpiceJet will fulfil its promise of emerging as India's leading airline," SpiceJet board member Bhulo Kansagra said. Earlier on, Vijay Mallya-promoted Kingfisher Airlines was looking to pick up a stake in SpiceJet but the board preferred Ross. "At present we look at the investment made by Ross. In future, we may be open to look for the idea of consolidation in the industry," Singh said.

Courtesy: www.thaindian.com, July 15, 2008

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Singapore-based Ahlstrom Asia Holding has announced setting up of a fabric manufacturing plant in Mundra special economic zone (SEZ) in Kutch district of Gujarat with a proposed investment of Rs.2.8 billion. "We have done the 'bhoomi puja' (ground breaking ceremony) and the plant is expected to be operational by October next year," Ajay Sahni, senior business development manager, told IANS Monday. The plant will manufacture spun bond and melt blown fabrics, which are non-woven textiles, and will have production capacity of 12,000 tonnes. Ahlstrom Asia Holding deals in hospital supplies as face mask, cotton and sterilization wraps among others etc. According to INDA, the US-based trade association for non-woven textiles, the global market for non-woven textiles is estimated to be $112 billion. The Mundra SEZ is the special purpose vehicle promoted by the Rs.180 billion Adani Group.

Courtesy: www.thaindian.com, July 14, 2008

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Credit offtake by India Inc during the first quarter (April-June) of this fiscal has been excellent though consumer credit has slowed down, said Confederation of Indian Industry (CII) president K.V. Kamath here Monday. "Credit offtake by Indian Inc has been excellent so far. I think corporate India is a pipeline of $700-750 billion, which is being funded either through cash accruals, bank credit or external commercial borrowings. I see no slowdown in credit offtake by corporate India. Consumer credit has already slackened," Kamath, who is also the CEO of ICICI Bank, told reporters on the sidelines of a CII meeting. On the corporate performance in the first quarter of this fiscal, Kamath said while it was "satisfactory" on the whole, some sectors did face growth challenge. "We have to see what happens in this (quarter) and next quarter. We will take a call after assessing the performance by the end of the two quarters," Kamath noted. Admitting that liquidity situation was comfortable till recently, Kamath said successive hikes in CRR (cash reserve ratio) by the Reserve Bank of India (RBI) had the desired impact, as the objective was to contain headline inflation even at the cost of growth. "Our challenges are rising inflation and soaring commodity prices. What is insulating us is the huge pipeline of investment in core sectors. Though 60 percent of the Indian economy is from the services sector, we are yet to see this sort of challenge from the manufacturing sector. The banking side is also facing challenges but is not impacting the overall growth rate," Kamath pointed out. On the interest rate, he said whatever has to be done, had already been done. He declined to speculate whether the rates would remain high or decrease in the near future. "Let us see what policy framework will be in place and what action RBI will take when it meets (July 29) for the busy season credit policy," Kamath said. Citing high crude oil prices as the single factor contributing to double-digit inflation, he said high rate of inflation would continue to be a challenge as long as oil prices remained high.

Courtesy: www.thaindian.com, July 14, 2008

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Hindustan Petroleum Corp Ltd (HPCL) will pump in Rs.4 billion in Chhattisgarh during the next three years for undertaking massive jatropha plantations, a rich source of bio-fuel. The company would also set up a bio-diesel plant in the state. The public sector company signed a tri-partite agreement in this regard Monday with the Chhattisgarh government and the state-owned Chhattisgarh Renewable Energy Development Agency (CREDA) to form a joint venture company to undertake the project in the state. HPCL, a Fortune 500 company, will hold 74 percent equity and CREDA will have 26 percent stake in the company. HPCL would extract oil from the entire yield of jatropha seeds from 15,000 hectares in the plant and market it through a network of retail outlets across the state. "Under the agreement, HPCL will take up jatropha plantation on more than 15,000 hectares of government-owned wasteland in the state," CREDA director S.K. Shukla told reporters. Chhattisgarh Chief Minister Raman Singh who attended the function said: "The state will be known as a leading bio-fuel producing state during coming years." About 400 million jatropha saplings have been planted in the state during the past four years.

Courtesy: www.thaindian.com, July 14, 2008

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IFGL Refractories has acquired Germany-based Hofmann Group of Companies, leading manufacturers of ceramic special filters used by foundries, July 4, said company director and chief executive Pradeep Bajoria here Monday. He said: "The company has picked up 96.16 percent in Hofmann through a special purpose vehicle, IFGL GmbH, which is 100 percent subsidiary of Monocon International Refractories Limited, UK." Monocon International Refractories Limited, UK is a step-down subsidiary of IFGL. The approximate cost of acquisition was 7 million euros, of which HSBC Bank Plc has provided with a loan of 5.3 million euros. Rest of the amount was internal accruals, he added. This acquisition would enable Hofmann to access growing market in India and China. Two brothers, Ernst Reiner Hofmann and Hartmut Hofmann, jointly owned Hofmann. Hartmut Hofmann would continue as the managing director of Hofmann Ceramics GmbH. Hofmann manufactures ceramic special filters used by foundries and have two operating manufacturing facilities - Erdbach near Frankfurt in Germany and City of Bela in Czech Republic. It is well known for its manufacture of special ceramics, particularly ceramic filters for foundries. In filters it has a market share of 58 percent in Germany, 38 percent in Europe and 21 percent in the USA. Through this buyout IFGL got an entry to the foundry industry, which is growing at 15 percent in China and 17 percent in India, Bajoria said. This would also help IFGL to get a strong foothold in mainland Europe. "We are already selling filters in India. Now our focus will be on manufacturing filters to sell locally as well as to export it to China," he said. IFGL immediately would start manufacturing filters from Rourkela. It has an existing plant over there. It would invest Rs 70 million to construct another plant for filters in the spare five-acre in the same place. Later, it may shift the filter plant to Pune or Kandla. In addition to this, the company has already started constructing continuous casting refractory manufacturing facility at the Kandla SEZ in Gujarat at an investment of Rs 500 million. IFGL's turnover last fiscal stood at Rs 3.78 billion with a profit after tax (PAT) of Rs 285 million. It expects a turnover of Rs 5.5 billion and a 25 percent growth on last fiscal's PAT in 2008-09. Hofmann registered a turnover of 13.7 million euro last fiscal and is expected to do 16 million euro this fiscal. "If cost permits IFGL might set up manufacturing unit in China," said Bajoria. All foundry products of the company would be sold under Hofmann Ceramics brand.

Courtesy: www.thaindian.com, July 14, 2008

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Indo Rama Retail Holdings Pvt Ltd, the Indian franchisee of the US-based Office1Superstores, is planning to set up stores inside the special economic zones (SEZ) of India. Indo Rama is the retail venture of the promoters of Indo Rama Synthetics (India) Ltd and is the country franchisee for Office1Superstores, a stationery and furniture retail chain in the US. 'We are talking with the developers of SEZs and also participate in real estate exhibitions. As of now we have an outlet in Noida SEZ,' A.K. Srivastava, chief operating officer of Indo Rama, told IANS on the sidelines of a media meet here Monday. According to Srivastava, only those having a unit inside the SEZ can own the retail outlet. 'Though sales will be restricted to other units inside the SEZ there are several tax benefits available,' he added. Srivastava said the SEZ store plan is part of the company's second phase of expansion. 'Our idea is to have at least 50 major outlets and 100 sub dealers in tier 3 and 4 cities by the end of this fiscal,' he remarked. With other foreign retail chains in this segment - office depot and staples - setting shops in India, Srivastava said: 'It is only we who follow the franchisee route. Others follow the company owned showroom concept.' Apart from opening its own stores, Indo Rama Retail also appoints regional franchisees. The regional franchisee in turn appoints sub-franchisees including dealers who sell just the private label Office1Superstores products. The company has three retail store formats viz., company owned and company operated, franchisee owned and sub dealers. Indo Rama Retail plans to open 25 stores in major cities within the overall target of 200 stores over the next three years time. According to Srivastava the outlets would stock branded as well as private label products in the ratio of 70:30. 'Going forward and to earn higher income, the private label stock will be increased to 40 percent.' He said stores located in major cities could do a turnover of Rs.10 million a year. 'The information technology sector is growing and so are the other industries. Further every home is now becoming a home cum office needing office stationery,' he remarked.

Courtesy: www.indiaenews.com, July 14, 2008

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Indo Rama Retail Holdings Pvt Ltd, the Indian franchisee of the US-based Office1Superstores, is planning to set up stores inside special economic zones (SEZ) as part of its ambitous plans to set up a chain of stores across the country to cater to the growing demand for quality office stationery. Indo Rama is the retail venture of the promoters of Indo Rama Synthetics (India) Ltd and is the country franchisee for Office1Superstores, a stationery and furniture retail chain in the US. "We are talking with the developers of SEZs and also participate in real estate exhibitions. As of now we have an outlet in Noida SEZ," A.K. Srivastava, chief operating officer of Indo Rama, told IANS on the sidelines of a media meet here Monday. According to Srivastava, only those having a unit inside the SEZ can own the retail outlet. "Though sales will be restricted to other units inside the SEZ there are several tax benefits available," he added. Srivastava said the SEZ store plan is part of the company's second phase of expansion. "Our idea is to have at least 50 major outlets and 100 sub dealers in tier 3 and 4 cities by the end of this fiscal," he remarked. With other foreign retail chains in this segment - Office Depot and Staples - setting up shop in India, Srivastava said: "It is only we who follow the franchisee route. Others follow the company owned showroom concept." Apart from opening its own stores, Indo Rama Retail also appoints regional franchisees. The regional franchisee in turn appoints sub-franchisees including dealers who sell just the private label Office1Superstores products. The company has three retail store formats viz., company owned and company operated, franchisee owned and sub dealers. Indo Rama Retail plans to open 25 stores in major cities within the overall target of 200 stores over the next three years' time. According to Srivastava, the outlets would stock branded as well as private label products in the ratio of 70:30. "Going forward and to earn higher income, the private label stock will be increased to 40 percent." He said stores located in major cities could do a turnover of Rs.10 million (nearly $250,000) a year. "The information technology sector is growing and so are the other industries. Further every home is now becoming a home cum office needing office stationery," he remarked.

Courtesy: www.thaindian.com, July 14, 2008

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Leading Indian provider of retail IT solutions Polaris Retail Infotech Ltd (PRIL) has signed up with the United Arab Emirates (UAE)-based consumer and electronics retailer Jumbo group to sell a new PRIL product. According to a statement issued by Jumbo group here, it will sell the Polaris Retail Excel suite in the Gulf retail markets. The agreement was signed by PRIL senior vice-president Mohit Oberoi and Jumbo group's head of enterprise resource solutions Arvind Sahay. According to the statement, PRIL Retail Excel is a robust and comprehensive application suite that embodies the mandatory functionality of a typical business while providing ample scope for configuration and customisation to each retailer's business needs.

Courtesy: www.thaindian.com, July 14, 2008

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Indian businesses have created at least 19,000 new jobs in Britain in the past 12 months and helped save some 14,000 existing ones, British Deputy High Commissioner Mike Connor says. The 14,000 jobs saved were at the ailing Jaguar and Land Rover unit that Tata Motors acquired in Britain earlier this year, Connor told IANS in a chat here. At the existing basic wage rate of six pounds ($11.9 or Rs.510) an hour for eight hours a day, these jobs translate into a minimum contribution of 530 million pounds ($1.05 billion or Rs.45 billion) a month to Britain's economy. Annually, it works out to 12 billion pounds ($23.8 billion or Rs.1.02 trillion).

It is indeed a far cry from 1947.

India's foreign exchange reserves then stood at Rs.15.47 billion (all held in pounds sterling) with the pound worth Rs.13.5. But what India gives to Britain today is almost thrice that - or approximately 15 months' wages to a workforce of 34,000 - at just two enterprises in Britain. "Kindly desist from doing the math in Indian rupees," the diplomat quipped. "The salaries are more than double the minimum wages in sectors into which Indians have invested in the UK. Therefore, the figure ought to be much more. "Bilateral trade between our countries is a two-way street at roughly eight billion pounds per year either way. The balance of payments is fair to both the sides," Connor said. "During the last five years, 5,290 projects have come to India and roughly a fourth of it came to the south with 10 percent year-on-year growth. "Virtually 60 percent of auto parts manufactured in Sriperumbudur (60 km west of here) are products of British R&D. Even some of the transmission parts of Tatas' Nano are manufactured to British specifications. "The ever increasing outsourced jobs in India originating in Britain pay wages comparable with British and Indian PPP (purchasing power parity). Further, all British companies around Chennai are headed by Indians. "Thanks to joint ventures like the Marks and Spencer with Reliance Retail one can buy clothes of British quality in India - at Indian prices."

But there are a few blushes too. Primark, a leading British apparel company, cancelled a sizeable order from Tirupur, Tamil Nadu, over allegations that the Indian suppliers employed child labour. It's a charge denied by manufacturers in India, but Connors called it an "aberration". "Being a signatory to the International Labour Organisation's convention, British companies cannot source products that are manufactured with unfair practices. Virtually 99.99 percent of what is made in India is welcomed in Britain - be they goods, services or skilled manpower," Connors said. Companies of Indian origin registered in Britain can operate anywhere in the European Union, are taxed at only 28 percent, and can repatriate profits limitlessly, an aide added. Out of a market cap of nine billion pounds ($17.9 billion) in companies of Indian origin in Britain, three billion pounds ($5.96 billion) were subscribed through the London Stock Exchange. Britain offers India huge inputs of technology in mobile telephony, road and rail transport systems and shipbuilding yards. One with British technology is coming up in Cuddalore, Tamil Nadu. Three trade delegations offering major tie-ups are due before October. Dynamatic Technologies Ltd, (aerospace and automotive components), Symphony Services Corp (product engineering outsourcing services), Infosys, Wipro, Satyam and Dr Reddy's Labs are among the larger Indian companies doing business in the UK. "We even allot rent free business accommodation in central London for three months. Now that is something loved by thrifty Indian businessmen," Connor said.

Courtesy: www.thaindian.com, July 13, 2008

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Infosys Technologies Ltd plans to hire about 10,000 people in the second quarter (July-September) of this fiscal (2008-09) to take its staff strength beyond 100,000, a top company official said here Friday. "We will hire about 10,000 people this quarter (Q2) in line with our recruitment plans to add about 25,000 people during this fiscal (FY 2009). The gross addition will make us cross the 100,000 figure in the total number of employees in our parent company (Infosys) and its subsidiaries worldwide," Infosys board member and head of HRD and education and amp; research T.V. Mohandas Pai told IANS. Continuing its hiring spree over the last two years, the IT bellwether added 7,182 people during the first quarter (April-June) of this fiscal, taking the total number of employees to 94,379 by June despite a whopping number of 3,990 employees leaving the company for various reasons. As a result, the net addition for the first quarter is 3,192 employees, including 2,012 laterals as against 2,586 in the last quarter. "Attrition rate has marginally gone up to 13.6 percent in the first quarter from 13.4 percent in the previous or fourth quarter (January-March) of the last fiscal (FY 2008) though it has declined by 0.1 percent from 13.7 percent a year ago," Pai admitted on the sidelines of a briefing on the firm's financial performance for the quarter under review. Of the 3,990 employees who left the company in Q1, 12.1 percent quit voluntarily to pursue higher studies and around 47 percent to join other firms. The remaining left for other reasons, including involuntary resignations. Though the global software major receives a record one million job applications every year, just 2.3 percent of them are offered employment on merit after going through a stringent selection process. At the 27th annual general meeting June 14, Infosys chairman and chief mentor N.R. Narayana Murthy told the shareholders that creation of a diverse workforce would be the greatest challenge for corporations in a globalised world. 'As corporations grow and globalise, I am convinced that the greatest challenge they will face will be the creation of a diverse workforce,' Murthy noted. Of the total number of employees, 87,816 are software professionals, including 82,368 billable and 3,372 trainees. Sales and support teams have 6,563 employees. Utilisation rate of software engineers was marginally lower at 68.9 percent during the first quarter as against 69.8 percent in the previous quarter and 70.5 percent in the same period a year ago. Similarly, onsite and offshore effort remained flat at 24.3 pand 75.7 quarter-on-quarter.

Courtesy: www.indiaenews.com, July 11, 2008

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Laptop sales are rising in India, which now accounts for over 25 percent of the total personal computer (PC) market, an industry body said Tuesday. The Manufacturers Association for Information Technology (MAIT) said in its Industry Performance Review 2007-08 that notebooks