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The Union Budget 2010-11 presented by Finance Minister, Mr Pranab Mukherjee, in Parliament on February 26, 2010, has articulated the nation plan for broad-based growth, solidly basing it on four pillars, viz., high growth, fiscal consolidation, public spending of high order to achieve inclusive growth, and better financial sector.
Equally, whilst lending form to the country's growing aspirations, the Budget builds on India's increasing role as an important global economic player.
Today's newsletter presents the key budget highlights and perspectives on the same. |
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Aparna Dutt Sharma
CEO
India Brand Equity Foundation |
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Focus: Cement |
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Major cement manufacturers have posted a 12.6 per cent year-on-year increase in dispatches at 18.2 million tonnes in January 2010. Cement production too has registered 12.8 per cent growth and the last 10 months have seen 23.6 million tonnes of fresh capacity addition.
Meanwhile, Lafarge, the world's largest manufacturer of cement, is aiming at an 11 per cent volume growth in India, as compared to a 5 per cent average growth expectation for the world.
Jaiprakash Associates Ltd has announced plans to invest Rs 1,250 crore (US$ 270.72 million) in raising its clinker and cement manufacturing capacity at its existing facility in Himachal Pradesh. And, cement manufacturer, Burnpur Cement, is gearing up to build a pan-India presence in the next fiscal to meet the growing demand for cement. | |
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Focus: SMEs |
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Technology company, Dell India, and search company, Google, have announced products for SMEs in India. Dell has launched a PC line designed specifically for SMEs, while Google India has extended its free advertising coupons offer for SMEs across India.
A joint study released by PricewaterhouseCoopers and Confederation of Indian Industry (CII), analyses how the micro, small and medium enterprises (MSMEs) in Gujarat are undergoing a transformation, with several large-scale investments being undertaken by public and private sector players. Meanwhile, the board of the Asian Development Bank (ADB) has sanctioned a loan of US$ 300 million to develop and expand India's MSMEs. | |
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Interview: Jan Smits, Regional Managing Director, InterContinental Hotels Group (IHG) Asia Australasia on the group's India plan for the year |
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"The outlook for India's tourism and hospitality industry remains robust. For IHG, we remain positive and are focused on opening new hotels. Our ambition for India is to build a profitable portfolio of hotels and our pipeline will definitely increase. What gives IHG an added advantage is its Holiday Inn brand, which provides a mid-scale full service segment that has the biggest opportunity for growth."
"India is emerging as a strong source market for IHG. Demand for both domestic trips and outbound travel is expected to increase strongly, due to affordability and changing attitudes among Indian consumers. This benefits our hotels both in India and globally." | [More] |
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Interview: Edward J Ludwig, Chief Executive Officer (CEO) and Chairman, Becton, Dickinson and Company (BD) on why India is important for the company |
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| "We are very excited about India. It is among the very few markets where the country head directly reports (to the US headquarters). That puts India at the same level of China, Japan and Canada. We add close to 100 people in our India team each year. On the manufacturing side, we have planned significant expansions by transferring 10 manufacturing lines of IV catheter from Sweden (to India). There is continuous expansion happening on the marketing side." | [More] |
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| Policy/Corporate Briefs |
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| Govt allows repricing of FCCBs |
| The government has allowed companies to reprice their foreign currency convertible bonds (FCCBs) on par with qualified institutional placements (QIPs), giving FCCB issuers flexibility in renegotiating terms with their investors. |
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| M&A, private equity deals gain momentum in new year |
| The total value of mergers and acquisitions (M&A) and private equity (PE) deals—including qualified institutional placement deals—in January 2010 stood at US$ 3.8 billion, an 81 per cent growth over the value of deals posted in the corresponding month of 2009, which stood at US$ 2.1 billion. |
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| FIIs put in record money in equity mkt |
| Foreign institutional investors (FIIs) made a record investment in the Indian equity market in 2009, surpassing inflows in 2007, according to the Economic Survey 2009-10. Additionally, assets under management of the mutual funds industry touched a record high, indicating revival of investor interest in the financial markets. |
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| Twelve FDI proposals get government nod |
| Twelve foreign direct investment (FDI) proposals—including those of Zee Entertainment, Walt Disney and Max India—totalling over US$ 216.1 million, have received government approval. |
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| Exports of gems and jewellery increase 62 per cent in January 2010 |
| Exports of gems and jewellery have touched US$ 2.6 billion in January 2010, growing 61.8 per cent over the same period in the previous year, according to the Gems and Jewellery Export Promotion Council (GJEPC). |
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| Amazon looks at India to revamp biz |
| Seattle-based online retailing company, Amazon.com Inc, is ramping up its key e-Commerce Platform Group (eCPG) at the company's Hyderabad development centre, as part of plans to build next-generation platform services. |
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| Stone India inks JV with Japanese firm for manufacturing air springs |
| Multi-product engineering company, Stone India, has signed an agreement with Sumitomo Electric Industries of Japan to enter into a joint venture to locally manufacture air springs in India. |
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| Coca Cola launches analytical centre in Pune |
| The Coca Cola Company has launched an analytical services centre at Pune, designed to provide the company with analytical and technical support for its operations in India, South Asia and some parts of Eastern Europe, Southern Eurasia and West Asia. |
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| Dubai-based Al Reyami group to set up three office furniture facilities in south |
| Reyami Interiors Pvt Ltd, is looking to tap into the growing turnkey office interior market in India and is setting up three facilities in the south with an investment of Rs 110 crore (US$ 24 million) for producing office furniture and interiors. |
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