“We are waiting for you!” Finance Minister Arun Jaitley told potential investors this week at the India Economic Summit in New Delhi. But the response among delegates in the conference hall may not have been the one he was hoping for.
“We are waiting for him too,” said one foreign investor, who declined to be identified, expressing impatience with the pace of reforms to make India more business-friendly. Some local industrialists struck a similar note: Anand Mahindra, chairman of Mahindra & Mahindra, one of the largest industrial groups in India, couldn’t hide his anticipation: “The pressure is on [the government] to walk the talk, and see the talk become action.” Read more
International air travelers will recognise the tag line from the HSBC campaign in airports worldwide: “In the future, South-South trade will become norm, not novelty”. If it depends on the Mahindra group and other Indian conglomerates, that tag line could become reality with regards to Africa and India.
Taking optimism to a new level, a collection of African leaders and Indian industrialists dared to dream big during a closed session of the WEF India Economic Summit in Delhi, agreeing to an informal ambition of $500bn Indo-African trade by 2020. 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
By Freha Amjad
If you are looking to ride a career helicopter into the rarefied echelons of those who earn more than $250,000 a year – then consider becoming an expat working in Asia.
Such a course is suggested by the findings of the latest HSBC Expat Explorer report, which is based on a YouGov survey of 9,288 expats worldwide. Asia is home to the highest earning expats, who are almost three times more likely to earn over $250,000 a year than their counterparts in Europe. Read more
On Friday Indian companies will begin posting their results for the quarter ended in September – the first full three-month period under the country’s new, pro-business government.
The latest macroeconomic indicators suggest the economy has picked up following this year’s general election, growing at 5.7 per cent in the three months to June. But if analyst forecasts are anything to go by, only some sectors have received a boost from renewed optimism in India. Read more
Investors have been awaiting an upturn in India’s economy since Narendra Modi, prime minister, took power in May. But a raft of recent data paints a mixed picture, with inflation moderating while slack industrial production conflicts with some robust consumer spending signals.
The Wholesale Price Index (WPI), out on Monday, confirmed that inflation is easing, reaching a 58-month low of 3.74 per cent year-on-year in August from 5.19 per cent in July. Read more
Until about a decade ago India was barely producing enough cotton to meet its own needs, let alone export the stuff. But this year Asia’s third largest economy will overtake China to become the world’s biggest producer of cotton.
Data from the US Department of Agriculture released on Thursday suggests that India will produce 30m bales of cotton in the season that began August 1 while China will produce just 29.5m bales. Read more
Since April car sales in India have been improving as consumer sentiment picks up following this year’s general election – and August saw the biggest year-on-year jump in this upturn as festival season neared.
Sales of passenger cars were up 15.2 per cent year-on-year in August to 153,758 units, according to data published on Wednesday by the Society of Indian Automobile Manufacturers (Siam), a trade body. Read more
Import restrictions and the rival appeal of equities have put a damper on India’s gold market, traditionally the world’s biggest. As festival season gets under way and Indians indulge their craving for the yellow metal, many are wondering when New Delhi and the Reserve Bank of India will begin rolling back their efforts to keep the market in check.
Officials are particularly concerned about the effect of gold imports on India’s troublesome current account deficit. One way round that problem would be to encourage more recycling of gold already in India. It could also be an enticing business proposition. Read more
India emerges from the latest World Economic Forum Global Competitiveness Report as the sickest member of the BRICs. It is ranked a lackluster 71st among 144 countries surveyed, down 11 places from last year and 22 places from five years ago. Moreover, it is ranked the lowest among its peers for the first time in years (China comes in 28th, Russia 53th, Brazil 57th).
The consequences of India’s lower GDP growth are also increasingly obvious: whereas India’s GDP per capita was higher than China’s only 15 years ago, it now stands at only a quarter of that of its Eastern neighbor.
So how come this all happened, and what can be done about it? Read more
Remember that story back in June, when the Indian government blocked a couple of foreign sources of funding for Greenpeace India?
It looks like the courts may not let New Delhi withhold the international transfers. On Wednesday, the Delhi High Court ordered that the blocked funds should be shifted from accounts with the central bank to Greenpeace’s accounts and placed in a fixed deposit until October 10, when a final verdict will be announced. Read more
By Jim O’Neill, Bruegel
Is it all over for the rise of the BRIC grouping (Brazil, Russia, India and China)?
On one level, this seems like a rather odd time to be asking such a question, especially when the political leaders of the BRICS countries (the four named above plus South Africa) have recently agreed to set up a joint development bank to be headquartered in Shanghai. So, the BRICS name is certainly here to stay, and in terms of global governance, their influence is likely to rise as a group because of the bank. Read more
Ratan Tata (pictured), who was the head of India’s powerful Tata group until 2012, ushered in a period of ambitious international expansion at the company. He is one of the most respected figures in the business community today.
On Wednesday, it was announced that the illustrious businessman has personally invested in Snapdeal, the online marketplace that is battling to win a share of India’s fast-growing market for ecommerce. Read more
Deutsche Post DHL, which makes money by shipping parcels around the world, plans to invest at least €100m in India over the next two years and is piloting a new e-commerce model for the Asia Pacific in the fast-growing market.
The move reinforces the recent take-off in India’s online shopping sector, as large platforms consolidate, infrastructure improves and internet penetration rises. Read more
Yoga guru BKS Iyengar passed away last week. As the tributes poured in, Iyengar was credited with spreading awareness of Indian culture around the world.
The yoga master was awarded the Padma Vibhushan, the second highest civilian award in India, earlier this year – and his style of teaching has become big business in the western world.
The New Yorker provides a glimpse into the master’s childhood and his own education in yoga as a young man in the 1930s, when ‘physical culture’ was taking off around the world: Read more