Maruti Suzuki led a two-track recovery in India’s car industry last year, dragging up overall sales while local competitors such as Tata Motors floundered. But new figures out on Tuesday have disappointed analysts in the festive period.
The 32 year-old brand, with a reputation for churning out reliable and affordable cars, posted net profits of Rs8.02bn ($131m) in the quarter ended December, up 18 per cent year-on-year. That’s well below an average forecast for profits of Rs9.06bn in a poll by Thomson Reuters. Read more
As Sri Lanka’s new president, Maithripala Sirisena, takes the reigns in Colombo, the focus is on his plans to overhaul politics on the island – to call a general election and return to parliamentary democracy.
It may be relatively straightforward to win support with those measures, as he takes over from Mahinda Rajapaksa, whose decade-long rule is remembered for nepotism and creeping authoritarianism. But matching the economic boom Sri Lanka saw under its former leader will be more difficult. Read more
When the government finally defeated separatist Tamil guerrillas in 2009 – bringing an end to a 25-year civil war – tourists began to swarm back to Sri Lanka.
The government of former president Mahinda Rajapaksa, who lost power in an election this month, was eager to draw foreign visitors who provide valuable foreign exchange. And groups like Jetwing, the hotels-to-agency tourism group, have felt the benefits. Read more
The streets of Colombo were strangely quiet in the hours after Mahinda Rajapaksa, the former Sri Lankan president, conceded defeat on Friday. The shutters were down at most shops and restaurants, the pavements were empty and the capital’s red tuk-tuks were hurtling around virtually empty streets.
The contrast with the cacophonous celebrations that greeted the result of India’s elections last year could hardly have been starker. There are, however, similarities between the two game-changing polls. Read more
A jump in gold imports to India since the scrapping of quantitative restrictions last November is fuelling questions over whether New Delhi may see fit to reimpose curbs to prevent the country’s current account deficit from ballooning again to risky proportions. Read more
Last year in India was remarkable not only for the resurgence in economic dynamism that followed the election of Narendra Modi, the prime minister. New data shows it was also a banner year for mergers and acquisitions.
In the calendar year to December 30, India saw deals worth $48.4bn, according to Dealogic, marking the highest value since 2010. Inbound deals were valued at $16.5bn, their highest level since 2011. Read more
This month, the FT interviewed a senior executive at Uber in India about the US taxi-hailing company’s plans for rapid expansion in the country. But later that week, a 25 year-old woman said she had been raped by her Uber driver in New Delhi. The government banned the service from operating in the capital and asked state governments to ban all unregistered web-based taxi services.
Swept away by its bold ambitions, it seems Uber has fallen foul of local circumstances in its rush to recruit new drivers. The company declined to discuss this and related issues followed the alleged rape. But are Indian taxi services any more cautious in selecting their drivers? And assuming Uber gets past the rape case, can it go on to succeed in India? Read more
How do you like your smartphones and tablets? Light or large? Black or white? For most consumers in emerging markets the question is: cheap or cheaper?
This is the market manufacturers should be focusing on, according to a new report by Gartner, a technology research company, which estimates that no less than 78 per cent of global smartphone sales will come from developing economies by 2018. Read more
So far, things have been going the right way for Prime Minister Narendra Modi as he strives to meet ambitious pre-election promises and kick-start a recovery in the Indian economy. The recent drop in oil prices has helped two crucial data points: inflation and the external balance. But what about growth?
In some ways, the new Bharatiya Janata Party (BJP) government has been luckier than anyone might have guessed. Read more
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Economists and investors have turned optimistic about the Indian economy since Prime Minister Narendra Modi took over in New Delhi this May.
Sweeping to victory with a strong majority, the new Bharatiya Janata Party (BJP) administration is expected to roll out a series of policy reforms that will kick start growth in Asia’s third largest economy. But has this triggered a boom in the Indian consumer sector too? Read more
When Indian activist Kailash Satyarthi (pictured) won the Nobel Peace Prize last month it was a moment of great pride for civil society in India, not least because of a recent face-off between the new government and NGOs, especially the environmental group Greenpeace.
Prime Minister Narendra Modi swept to power this year on a pledge to cut red tape and speed up decision making, winning favour with industrialists across the country. But many campaigners are more sceptical of the new pro-business administration. Read more
On a hot Tuesday afternoon Neha Arora, 32, stands outside an upmarket café in south Mumbai, struggling with two mobile handsets. She complains that her phone calls regularly cut out.
“It’s a way of life, I guess,” the wedding planner says. “You just call back or the other person calls back.” Read more
The FT flagged recent concerns around the Indian car industry. Sales had picked up for four consecutive months after the new pro-business government came to power this May – but that run of growth is now ending.
Beyond domestic sales, the recent drop in exports from India is another key trend in the Indian automotive industry and the reasons for the fall are often misunderstood. Read more
Nimbuzz, a Netherlands-based but India-focused messaging app, was acquired by New Call Telecom of the UK this week in a deal that valued the company at about $250m.
That is a tiny sum compared with the $22bn Facebook paid this year for WhatsApp, with its 465m users worldwide. Nimbuzz has 200m registered users, mostly in India, the Middle East and north Africa, and its success in the vast Indian market provides important lessons for tech companies in Asia’s third largest economy. Read more
While most Indians were celebrating the Diwali holiday last week, authorities in New Delhi slipped out an order that may bring an end to the state monopoly on coal mining.
Many analysts are now questioning, however, whether international mining groups will enter India if the government follows through on last week’s ordinance. And more to the point – even if they do, is this the answer to India’s acute energy shortage? Read more
A jeweller in Surat, Gujarat, has been the talk of the town – and the whole nation – after giving cars and apartments to hundreds of employees.
Savjibhai Dholakia, chairman of Hari Krishna Exports, handed out 500 Fiat Puntos, 207 apartments and 570 pieces of jewellery, according to the Guardian newspaper, which said that he would pay for his mysterious beneficence in installments “over the next few years.”
The scale of Dholakia’s generosity is unusual, but it is somewhat in keeping with Indian tradition. Throughout the country, offices are piled high with hampers of dried fruit and chocolates, gifts from companies to employees and clients, as India celebrates its festival of lights on October 23. Read more
India has stepped up efforts to curb nearly 1m tobacco-related deaths a year by issuing new rules to embolden the health warnings on tobacco packets and make the country one of the world’s strictest in terms of tobacco labelling.
But while regulators try to crack down on branded cigarettes and similar products, there is still a vast unregulated market for tobacco in India. And it’s far from clear that slapping warnings on cigarette packs will have much impact on health.
For one thing, many more Indians smoke traditional bidis than branded cigarettes. In addition, a lot of people get their nicotine fix from chewing tobacco and other products often produced in the informal sector. Read more
There you are, taking it easy on your summer holiday in Istanbul or Dubai, searching online for the next restaurant to sample. You may not know it, but the information you seek could be coming to you courtesy of a small company based in Gurgaon, near New Delhi.
Zomato, an online restaurant directory, has become a household name in India. That could soon be true in many other markets. Over the past year the website has expanded quickly overseas – from Poland to New Zealand – through a mixture of acquisitions and organic growth. Read more
The Indian Super League, the country’s new professional football league, kicked off last weekend. Sceptics who doubted its pulling power were proved wrong as Kolkata’s Salt Lake Stadium packed out for the first game.
In a nation where cricket is tantamount to a religion, few expected football to have much appeal. But the ISL – backed by media group Star India and IMG-Reliance, a partnership between the sports management group and Mukesh Ambani, India’s richest man – has captured the attention of the public, the players and the sponsors. Will it last? Read more