INDIAN ECONOMIC & BUSINESS
From the Commercial Wing of the Indian Embassy in Israel
INDIAN ECONOMY NEWS
FDI inflows into India in April-May 2009 up by 13%
Foreign direct investment (FDI) inflows into India in April-May 2009-10 have surged by 13% at
US$ 4.2 billion as against the previous two months driven by recovery in the global financial
markets, according to a top government official.
Indian per capita income rises by US$ 86.78 in 2008-09
Per capita income of Indian individuals stood at US$ 773.54 in 2008-09, according to Central
Statistical Organization data. The per capita income in India stood at US$ 687.03 in 2007-08
and has risen by over one-third from US$ 536.79 in 2005-06 to US$ 773.54 in 2008-09. The
growth in real Gross Domestic Product (GDP) at factor cost stood at 6.7% in 2008-09. While
the sector-wise growth of GDP in agriculture, forestry and fishing was at 1.6% in 2008-09,
industry witnessed growth to 3.9% of the GDP in 2008-09.
RBI sees turnaround in business sentiment
In its most optimistic prognosis for the economy in 2009, the Reserve Bank of India (RBI) said
overall business sentiment was slated for a sharp improvement from its low in the April-June
2009 quarter. According to the report on Macroeconomic and Monetary Development, which
is released on the eve of RBI’s quarterly monetary policy review, there is a turnaround in
business sentiment as per industrial outlook survey conducted by the central bank. The index
measuring respondents’ assessment for April-June 2009 improved sharply by 20.3% over the
previous quarter. The index, which measures expectations for forthcoming quarter (July-
September 2009), improved by 14% over the pervious quarter.
At 8% growth rate, India to grow fastest in 2010: World Bank
The World Bank has projected an 8% growth for India in 2010, which will make it the fastest-
growing economy for the first time overtaking China’s expected 7.7% growth.
Indian carmakers cashing in on Europe's green drive
Indian carmakers are reaping the benefits of the incentives offered by the governments of
Germany, France and the UK to people exchanging their old cars for new fuel-efficient ones.
The country’s largest car exporter, Hyundai Motor India, recorded its highest export growth
rate last month while Maruti Suzuki is raising its export target, as the scrappage policy in
Europe that gives € 750-5,000 to people buying fuel efficient cars has led to an increase in
demand for their small cars.
SBI launches pilot project to take banking to villages
To reach out to the people in the unbanked rural areas of the state, the State Bank of India
(SBI), the largest public sector lender, has launched a pilot project in Sukindagarh Gram
Panchayat in Jajpur district. Launched in co-ordination with the state Panchayatiraj
department, the pilot project is expected to enable a customer to avail banking facility in his
own village using bio-metric smart card. The scheme intends to transfer the benefits of the
National Rural Employment Guarantee Scheme (NREGS) to the villagers through use of
smart cards and is proposed to be expanded to 19 lead districts of SBI in a phased manner,
Shiva Kumar, chief general manager (CGM), SBI, Bhubaneswar circle said.
Bank's deposit growth estimate up at 19%
The Reserve Bank of India (RBI) today raised the estimate of deposit growth for commercial
banks to 19% for the current financial year from 18% set in April 2009 as part of a plan to
maintain ample liquidity in the system. This follows an upward revision in money supply
growth to 18%, up from 17% projected in the annual policy statement issued in April this year.
NRI deposits in banks shoot up to $1.16 billion in April-May
Parking money with banks in India continues to be an attractive proposition for non-resident
Indians (NRIs). Overseas Indians have cumulatively placed $1.167 billion as deposits with
banks in the first two months of the current financial year as against $452 million in the
corresponding period last year. Bankers pointed out that with the benchmark 6-month London
Inter Bank Offered Rate coming down sharply from over 3% a year ago, to around 1% now,
deposits placed by NRIs with local banks overseas are hardly fetching them any returns.
Hence, NRIs are finding it remunerative to park their money with Indian banks, which are
offering higher interest rates.
Small and medium pharma companies in US eye India for growth
According to Learning Organised, a US-based pharma and biotechnology consultancy, the
US-based pharma and biotechnology companies, particularly small and medium enterprises
(SMEs) numbering over 4,500, are looking at India for potential partnerships—either joint
venture or acquisition or offshore outsourcing or sharing of tech know-how—to offset the
possible dip in their overall business prospects over the years due to high production and
marketing costs and lack of products.
Core infrastructure shines again, growth up 6.5%
The six core infrastructure industries grew 6.5% in June on the back of robust performance by
cement and steel, adding to the cheer as news trickled in that monsoon showers had clocked
15% above normal last week. The infrastructure basket comprising coal, crude oil, refining,
power, cement and finished steel has a 27% weight in the index of industrial production (IIP),
and the June surge hints at overall industrial growth picking up, according to economists.
Telemedicine, clinical trials among lucrative verticals for PE firms
Telemedicine, healthcare education and training, clinical trials, health insurance, contract
research and manufacturing are some of the key areas in the healthcare sector that would
attract private equity (PE) investment in the future, says a CII report. As per emerging
markets, private-equity investment in India's healthcare sector tripled from $126 million in the
first half of 2007 to $459 million between January and June 2008. The other lucrative areas
that the report identifies include emergency health services, participation in national
immunisation programme, drug and pharma development and joint health initiatives between
the government and private players.
Boeing remains bullish on India sees air travel bouncing back
Aerospace major Boeing forecasts that the Indian market will require 1,000 commercial jets
in the next 20 years, which will represent over 3% of Boeing Commercial Airplanes’
forecasted market worldwide. This makes India a $100 billion market in 20 years.
Panel nod for 15 highway projects
The Public-Private Partnership Appraisal Committee (PPPAC) has approved 15 highway
projects worth Rs 15,560.5 crore (approximately US$ 3.2 billion).
Soon Indian farmers can control irrigation with a cell phone
Tata Teleservices Ltd inaugurated a pilot project at Sojitra in Anand district of Gujarat that
allows farmers to operate their irrigation pumps from remote locations without having to travel
to the farm. The new product for the rural community will be offered in partnership with Ossian
Agro Automation. Becoming the first operator in India to offer remote access to irrigation
pumps using a mobile phone in what it called as Project Nano Ganesh, Tata Indicom said the
move would save electricity, time, money and the precious resource of water. With its network
support, rural distribution channel and handset, the company would offer remote device
access to regulate the irrigation systems. After reviewing success of the project in Gujarat, it
would be rolled out across India.
Overseas demand for Indian bananas rising
Surge in banana exports by 89% during April-January 2008-09 fiscal suggest that the appetite
for Indian bananas in the European and the Middle Eastern countries has increased. The
country's banana exports have shot up by 89% to 25,013 tonnes during April-January period
of 2008-09 fiscal, compared to 13,207 tonnes in the corresponding period previous year,
according to the Agricultural and Processed Food Products Export Development Authority
Israel crop firm to make Hyderabad its hub
Israel based Makhteshim-Agan, which deals in crop protection products, will commence
activities in India with a base in Hyderabad. The company has selected Andhra Pradesh as its
operating hub. The company is contemplating to invest Rs 450 crore (about US$ 93 million) in
the coming years, generating direct and indirect employment for over 2,000 people. The
company is headquartered in Tel Aviv and has a business turnover of $2.5 billion in 2008.
Government says GM foods in India will be available in three years
The government plans to introduce genetically modified (GM) foods, particularly tomatoes,
brinjals and cauliflower, to help meet food production targets in three years time. The Indian
Council of Agricultural Research and Department of Biotechnology has approved the three
transgenic crops that are in various stages of tests and development in institutes across the
DuPont enters India's cotton-seed market
Dupont, one of the world’s top five seed companies, has acquired Nandi Seeds and the
cotton germplasm business of Nagarjuna Seeds in India, hoping to target the country’s
$275-million-a-year cotton seed market and marking its maiden entry into the cotton seed
business worldwide. India is the world’s second-largest producer and consumer of cotton.
Crops to be more nutrition-rich with Omega-3 fatty acids
With increasing awareness of healthy diets and nutritional security gaining as much focus as
food security, Indian researchers are now growing biotech-enhanced crops with Omega-3
fatty acids besides developing improved varieties of rice, rich in protein and iron.
IT / Telecom / Biotech News
India continues to be most attractive outsourcing hub
India continues to be the most preferred destination for companies looking to offshore their IT
and back-office functions. It also retains its low-cost advantage and is among the most
financially attractive locations when viewed in combination with the business environment it
offers and the availability of skilled people, according to global management consultancy AT
India ranks 20 for number of unique IP addresses
The first quarter 2009 state of the internet report prepared by Akamai Technologies has
ranked India at 20 globally for number of unique IP addresses with over 3 million IP’s. It also
ranked India at 11 with 1.60% of observed attack traffic and ranked at 107 for average
connection speed, at 898 kbps as against the global average connection speed of 1.7 mbps.
Networking equipment market may grow 15%
The market for enterprise networking equipment in India is estimated to grow from $1 billion in
2008 to $1.7 billion by 2012, recording a compounded annual growth rate (CAGR) of 15%
during this period, says a study done by Springboard Research.
GSM firms add 8.89 million users in June
GSM operators added 8.89 million subscribers in June, taking the total number of subscribers
using the technology to 315.8 million. In May, 8.3 million subscribers were added and the
corrosponding figure for April was 8.9 million, the Cellular Operators Association of India
(COAI) said in a statement. Bharti Airtel, added 2.82 million, increasing its subscriber base to
102.4 million. Vodafone-Essar, recorded a lower net addition of 2.37 million in June,
compared to 2.54 million in May. The Aditya Birla Group telecom service provider added 1.61
million subscribers during the month, up from 1.3 million added in May, while Aircel has added
1.11 million new users during the month.
Biocon ties up with Mylan of US for biogenerics
Biocon Ltd announced an exclusive collaboration with the US-based generic drugs major
Mylan Inc to develop, manufacture, supply and commercialise many high-value generic
biologic compounds for the global markets.
Michelin's US$ 2.26 billion FDI proposal gets FIPB clearance
French tyre major, Michelin, has gained clearance from the Foreign Investment Promotion
Board (FIPB) for its US$ 2.26 billion foreign direct investment (FDI) proposal to set up a
manufacturing facility in Tamil Nadu. The Compagnie Financiere Michelin (CFM) company
plans to set up a wholly-owned subsidiary to make radial tyres, tubes and ancillary tyre-related
products at the plant, according to an official release. The company has lined up an
investment of US$ 821.49 million over a period of seven years. It further intends to infuse US$
1.44 billion over a period of three years after the completion of the initial funding, depending
on the progress of the project and demand of the tyre market.
Hino Motors to open India unit in 3 years
Japanese truck maker Hino Motors expects to sell about 700 trucks this fiscal in India and
plans to set up a manufacturing plant in three years in the country.
Honeywell expects faster growth at India operations
US aerospace and technology firm Honeywell, expects business at its India unit to rise at
double the pace of its growth in developed markets, its top executive said. The firm has
expanded its India workforce, which includes software professionals and aerospace
researchers, to 11,000 from around 500 some six years ago. Honeywell, which operates in
four business segments—aerospace, automation and control solutions, transportation
systems and speciality materials—expects revenue from India to be $600 million in 2009.
US' Sikorsky enters India; delivers first commercial helicopter to corporate
US-based Sikorsky Aircraft Corporation delivered its first commercial helicopter last week to a
Mumbai based corporate signifying their formal entry in India. Sikorsky is a world leader in the
design, manufacture and service of helicopters. It is a subsidiary of United Technologies Corp.
The company is looking at making India the hub to cater to the requirements of the South
Asian market after forming a joint venture with the Tata Group to manufacture helicopter
cabins in India.
Changi open to JVs with more Indian firms
Changi Airports International is ready to enter into joint ventures with more Indian companies
in developing airports. The company, which has picked up a 26% stake for $20 million in
Bengal Aerotropolis Pvt Ltd (BAPL), said it is looking at other opportunities. Changi has
already formed consortium with companies like Tata Real Estate. It has bid for airports in
Karnataka along with Tata Real Estate and the Leela Group to develop an airport at Kannur in
North Kerala. The company is expecting good returns from its recent partnership with BAPL to
develop the country’s first aerotropolis-airport city project with an estimated investment of $2.5
TCS bags second deal from Volkswagen
Tata Consultancy Services has bagged an IT outsourcing contract to service automaker
Volkswagen in Germany, according to a top company official. According to the contract, TCS
is to develop new applications that would help VW reduce the time to market its new cars and
better the car buying experience for the customer.
IBM in deal with Sun TV
IBM has announced the signing of a services deal to implement and manage Customer
Relationship Management-(CRM) related applications for Sun Direct TV, part of the Chennai-
based Sun TV Group. Sun Direct TV, launched in December 2007, has over three million
subscribers. It plans to implement a CRM platform for six million subscribers, with a target of
10 million by 2010.
Toshiba-JSW to invest $160 million near Chennai
Toshiba is betting big on Tamil Nadu for boosting its power equipment business. Toshiba-
JSW, a 75:25 joint venture between Japan based Toshiba corporation and the JSW group (O.
P. Jindal group) has firmed up its plan to invest US $ 160 million (Rs 800 crore) in setting up a
manufacturing unit for super critical power equipment in Tamil Nadu, over a five year period.
Renault puts India car plans on the fast track
French carmaker Renault has completely recast its plans for India as part of a new,
aggressive approach that will see it producing cars in its Chennai plant by 2011.
Forthcoming Events in India
International Furniture Fair
August 6-9,2009, Bangalore
India International Jewllery Show (IIJS 2009)
August 6-10,2009, Mumbai
3rd Renewable Energy India 2009 Expo
August 10-12, 2009, New Delhi
8th International Railway Equipment Exhibition
August 24-26,2009, New Delhi
September 4-7, 2009, Mumbai
India International Travel Mart
September 5-7,2009, Mumbai
International Foodtec India 2009
September 17-19,2009, Mumbai
India International Auto Parts Expo
October 22-25, 2009, Mumbai
Delhi International Leather Fair
October 23-25,2009, New Delhi
India International Hardware Show 2009 (IIHS)
October 28-30, 2009, Noida
IFSEC India (Int. Fire & Security Exhibition & Conf)
October 29-31,2009, New Delhi
India International Trade Fair
November 14-27,2009, New Delhi
December 11-14,2009, New Delhi
December 11-14, 2009, New Delhi
Tex Styles India
February 24-27, 2010, New Delhi
Business Offers for Israeli Companies
No Company Details Interest
MDG Associates Private Limited MDG Associates offers consultation
574, Main Road, Chirag Delhi, New Delhi services to foreign companies which
1 110017 would like to set up their base in
India and enter the Indian market.
Tel: 91-11-41834111-12, 91-11-26180120 Consultation services are provided
Fax: 91-11-41834111 in the following areas:
Email: email@example.com -India Entry Strategies.
Website:www.mdgindia.com - Creating Business Structures.
- Assistance in search for Joint
Contact Person: Ventures Partners.
Mr. Piyush Dwivedi -Market Feasibility Studies.
Email: firstname.lastname@example.org - Taxation and Legal Advise.
- Accounting Services.
Modern Woollens, Mumbai Manufacturers & Exporters of
Contact Person: Dharmendra Shukla Worsted Yarn
2 Tel: 91-22-66973798
Planets F& B. Park, Ahmedabad Interested in Exporters / Importers
3 Contact Person: Dipak Shah of Liquor, Food, Beverages,
Tel: 91-79-26561292/26561293 Vegetables, Sea Food, Cigarettes,
Fax: 91-79-26304208 Chocolates.
Tristar Overseas Pvt.Ltd, New Delhi
Contact Person: Saurabh Garg, Vice President Exporters of Basmati Rice
4 Tel: 91-98-18900699., Fax: 91-11-23832292
United Worldwide, Mumbai Manufacturers / Exporters of
Contact Person: Rakesh Shah Stainless Steel Utensils, Aluminum
5 Tel: 91-22-8345245., Fax: 91-22-8387117 Utensils, Non Stick Cookware,
E-Mail: email@example.com Terry Towels
ALS Exports, Tamil Nadu
Contact Person: L.S. Sivakumar Manufacturers / Exporters of Cotton
6 Tel: 91-422-2426336., Fax: 91-422-4221430 Terry Towels.
Karni Exports, Jaipur Manufacturers & Exporters of
7 Contact Person: Pradeep Nahata Women, Girls & Kids Garments
Tel: 91-98-28199329., T/F: 91-141-2770896 (Knitted/ Woven) scarves, stoles,
E-Mail: firstname.lastname@example.org bandhanas.
Liberty Whiteware Ltd. Manufacturers & Exporters of
New Delhi Bathroom products, Ceramic
8 Tel: 91-11-42463000 Sanitary ware.
Oscar Overseas Manufacturers & Exporters of home
9 Contact Person: Rakesh furnishing items including: bed
Email: email@example.com linens, cushion covers, sheets sets,
Website: www.oscar-india.com etc.
Papad Store, Ahmedabad
10 Tel: 91-79-30125521., Fax: 91-79-30124259 Manufacturers / Exporters of Spices
Euroasia Trans Continental, Mumbai Dealers in Pharmaceuticals,
11 Tel/ Fax91-22-67745555 Intermediates, New Molecules,
E-Mail: firstname.lastname@example.org Veterinary & Herbals
Chamunda CLIT Pharma Machinery P.Ltd Manufacturers & Exporters of
12 Contact Person: Gaurav Soni Pharmaceutical Machinery (Dosage
Tel: 0091-79-25842679/84 Processing Equipment, Fluid Bed
Fax: 0091-79-25840589 Systems, High Shear Mixers).
Sri Durga Traders, Kerala, India Exporters of Food Grain, Sugar,
13 Contact Person: Vasantkumar, M. Lahoti Mushroom, Onions and other
Tel: 91-474-2760887., Fax: 91-474-2760888 commodities.
Haria Exports Limited, Mumbai Exporters of Ready Made
14 Contact Person: Kanti Haria, Chairman Garments, Uniforms, Textiles,
Tel: 91-22-40973000., Fax: 91-22-40973030 Household Linen (Towel, Bed
E-Mail: email@example.com Sheets, Pillow Covers)
Premji Ghellabhai & Co Exporters of Food Products
15 Contact Person: Sanjay Shah
Krauter Healthcare Limited Marketing & Distribution Alliance
16 Contact Person: Raj Sinha, Asst Mgr. for Herbal Baby Care Products
Tel: 91-120-2554233., Fax: 91-120-2542109
Alpine International, New Delhi Exporters of Tea, Coffee, Rice,
17 Contact Person: Rajiv Jain Pulses, Spices and Agro
Tel: 91-11-45092869., Fax: 91-11-28742020 Commodities
Aadarsh Packaging Products, Kolkata, India
18 Contact Person: Arun Kr. Ghosh Manufacturers & Exporters of Eco-
Tel: 91-33-26593515 Mob: 91-97302060087 Friendly Bags
V.K.Exports, Chennai, Tamil Nadu Interested in exporting leather and
19 Contact Person: K. Udayakumar, Proprietor leather products
Tel: 91-44-29710227; Fax: 91-44-22760865
Kanin India Limited, New Delhi Interested in exporting office
20 Contact Person: Vikram Dos, Sr. Manager stationery, staplers and punches.
Tel: 91-11-26991336, Fax: 91-11-26959407 Brand names are Kangaro & Kanex.
Karpasa Export Pvt Ltd., Gujarat Interested in exporting spices, oil
21 Contact person: Mrs. Oza seeds, pulses, grains, animal feeds,
Tel: 91-281-258-5249 etc.
Address & contact details of the Commercial Wing, Embassy of India:
140 Hayarkon Street, Tel Aviv 63451 – P.O. Box 6633, Tel Aviv 61033.
Tel: 03-5291999; Fax: 03-5270821; E-mail: firstname.lastname@example.org
Please send your comments, feedback and enquiries to the Commercial Wing of the Indian
Embassy in Tel Aviv. Please visit the Embassy `s Website: www.indembassy.co.il