INDIAN ECONOMIC & BUSINESS
From the Commercial Wing of the Indian Embassy in Israel
INDIAN ECONOMIC NEWS
India is the second-most important destination for FDI globally: UNCTAD
According to the United Nations Conference on Trade and Development's (UNCTAD)
publication, World Investment Prospects Survey 2010–2012, India will be the second-most
popular destination for foreign direct investment (FDI) globally over the next two years. The
developing Asia region is predominantly considered as the most-sought place for FDI with six
Asian countries featuring in the top 15. The survey was aimed at the largest global non-financial
transnational companies (TNCs), national investment promotion agencies and location experts
and explores the upcoming trends in the global FDI over the next three years. The report
highlighted that it was for the first time that the four BRIC (Brazil, Russia, India and China)
countries, all ranked in the top five for FDI inflows. The top investment destination for FDI
remains China, followed by India, Brazil, the US and the Russian Federation
Industrial production rises by 13.8% in July 2010
India's industrial production witnessed an increase of 13.8 per cent in July 2010, surpassing
analysts' forecasts. The official Index of Industrial Production (IIP) grew by 13.8 per cent year-
on-year (y-o-y) as compared to 7.2 per cent in July 2009. The rise was powered by a 63 per
cent jump in output of capital goods and 22.1 per cent in that of consumer durables.
Auto component sector to see 4-fold growth by 2020
The Indian auto component industry expects to grow by over four-fold to $113 billion by 2020
as there have been projections of a similar jump in car manufacturing in the country in the
next decade, said Automotive Component Manufacturers' Association. The total passenger
car production in the country will jump four times to reach 9 million cars in the next ten years,
the industry body said in its forecast report on Friday. Although a major chunk of this will come
from the fast growing domestic market, exports are likely to form around 35% of the total
market by 2020.
Textile & apparel exports to US grew by 20% in July 2010
Exports to the US have increased by close to 20 per cent for the month of July 2010, as per the
textile and apparel industry sources. The square metre equivalent (sme) of textile and apparel
exports from India rose from 1,606.23 million sme in July 2009 to 1,924.1 million sme in the
corresponding month in 2010.
Domestic airlines registered a 17% growth during January-July 2010
India‘s domestic airlines witnessed a surge of nearly 500,000 passengers in July 2010 in
comparison to the corresponding period in 2009. It is the 7th consecutive month for the
domestic airline industry to report an increase in the passengers flown in comparison with the
same period in 2009. As per the latest data collated by the Directorate-General of Civil
Aviation (DGCA), the domestic airlines flew 17.56 million passengers during January-July
2010 as against 14.53 million passengers carried during the same period in 2009, thereby,
registering a 17% growth.
Reserve Bank of India reports surge in electronic transactions
Catching up with the developed world, India is witnessing a surge in use of electronic means.
According to the latest annual report of the Reserve Bank of India (RBI), the use of electronic
means, as opposed to using paper, for making payments has gone up sharply in the last three
years. As per the RBI report, the share of electronic transactions rose to 88.3% in 2009-10
from 80.4% in 2007-08, in terms of value. Similarly, in terms of volume there was a rise from
27.1% in 2007-08 to 35.3% in 2009-10.
India is top exporter of petro products in Asia
India is now the largest petroleum products exporter in Asia, surpassing South Korea.
According to the data compiled by oil and metal information provider Platts, India's gross
exports currently average 1 million barrels a day, inching past South Korea which exports 0.9
million barrels a day. With the commissioning of a new refinery by Reliance Industries at
Jamnagar and Essar Oil increasing refinery output at Vadinar, India overtook South Korea by
mid-2009 and has since then consistently maintained the lead position. India's average
petroleum products export grew from 0.77 million barrels a day in January 2009 to one million
barrels a day in August 2009. In fact, India's refining capacity at 3.69 million barrels a day is
the third largest in Asia after China and Japan, which have a refining capacity of 9.6 million
bpd and 4.64 bpd respectively. Platts' compilation is based on the data from individual
Passenger car sales grew by 33% in August 2010: SIAM
Indian auto industry sales broke records for the second month consecutively in August 2010 on
the back of good monsoons, a positive customer sentiment, and low borrowing rates. According
to the Society of Indian Automobile Manufacturers' (SIAM) data, the overall sales rose by 25%
to record 1,263,000 units in August 2010 - highest ever for a single month after July 2010.
Specifically, sales were highest for the passenger vehicle and two-wheeler segments in August
National Innovation Council aims to set up $1-billion fund
The newly constituted National Innovation Council (NIC) headed by Sam Pitroda, aims to have
a $1-billion (around Rs 4,600 crore) fund to promote new ideas for inclusive development and
innovation in the country.
Consumer Affairs Ministry says yes to 49% FDI in multi-brand retail
The Consumer Affairs Ministry has given the green signal to allow 49% FDI in multi-brand
retail. It has written a letter to this effect to the Commerce Ministry. India currently allows 100
per cent FDI in cash-and-carry operation and 51% in single-brand retailing. Foreign investors
are barred from investing in multi-brand retail. Additionally, the Ministry also sought that a
model law be first put in place at the State-level to protect mom-and-pop stores from the
impact of the ‗Big Boys' of retail.
Kingfisher, British Airways sign code-sharing pact
Kingfisher Airlines and British Airways (BA) have signed code-sharing agreement on each
other's flights across India, Sri Lanka, the UK and continental Europe, bookings for which will
be available from September 7. The agreement comes after Kingfisher Airlines accepted an
invitation to join the one world alliance earlier this year. According to the agreement, British
Airways' code will be placed on 11 domestic Indian routes and one route to Sri Lanka
operated by Kingfisher Airlines.
Canada, India to tie up for making films in 2011
Canada will be signing a film and new media co-production treaty with India at the 12th edition
of the International Indian Film Academy Awards (IIFA) scheduled to be held in Toronto in
2011. This will help Indian filmmakers get access to the North American country‘s scenic
locales, including British Columbia (BC).
IT / Telecom / Biotech News
TCS top IT exporter of FY10; Genpact leads BPO pack
Tata Consultancy Services maintained its pole position in the list of top IT services exporters
for 2009-10 (in revenue terms), while Infosys Technologies and Wipro held on to the second
and third slot, respectively. According to ranking by Nasscom, HCL Technologies and Tech
Mahindra finished fourth and fifth respectively – there was no change in the pecking order of
these five tech vendors when compared to previous year's (2008-09) rankings. The BPO
exporters ranking saw quite a bit of a re-shuffle among players but Genpact continued its lead.
In another ranking, TCS, Infosys, Wipro, Cognizant and HCL Tech, in that particular order,
were the top five employers for 2009-10.
Seclore, Siemens PLM join hands
Seclore, a security software company incubated by IIT Bombay, has tied up with Siemens
PLM to integrate Seclore's FileSecure with the latter's ‗Solid Edge‖ line of products. This will
allow enterprises using the Solid Edge suite to ―define, implement and audit information usage
policies using Seclore FileSecure, according to a statement from Seclore.
Mobile subscriber base touched 652 million mark in July 2010
The number of Indian mobile subscribers witnessed a robust growth as it touched the 652.42
million mark in July 2010, with an addition of 16.92 million connections, as per the official data.
According to the Telecom Regulatory Authority of India (TRAI), the wireless user base rose by
2.66 percent to 652.42 million in July 2010 from 635.51 million in June 2010. The total
telephone subscriber base has touched 688.38 million. The increase in this category was led
by Bharti Airtel, which added 2.6 million users to take its subscriber base to 139.2 million
users. Similarly, Reliance Communications added 2.5 million new subscribers, taking its
subscriber base to 113.3 million, while Vodafone added 2.4 million connections taking its user
base to 111.4 subscribers. Furthermore, as per the data, the broadband subscriber base grew
2.67 percent from 9.45 million in June to 9.77 million in July 2010. However, the wireline
segment had a subscriber base of 35.96 million in July 2010, as per TRAI.
Transgene Biotek acquires US-based Marillion
Transgene Biotek Ltd has said that it has entered into an agreement to acquire Marillion
Pharmaceuticals Inc, a US Oncology Biopharmaceuticals company based in Exton,
Pennsylvania, in an all-share deal.
Piramal Healthcare completes $3.7 billion deal with Abbott
Piramal Healthcare‘s shareholder can expect to soon receive a special dividend as the US-
based drugmaker Abbott has completed its $3.7-billion acquisition of the Mumbai-based firm‘s
Indian formulation business.
Drug market grows 20% in first half of 2010; foreign firms tighten hold
India's drug retail market grew 19.6% in the first six months of the year, headed by new leader
American company Abbott Laboratories, as foreign drugmakers strengthen their dominance
among the top 10 brands sold in the country. By June end, Abbott held a market share of 7%
followed by domestic heavy weight Cipla that controlled 5.3% of the market, according to
market research firm ORG IMS. The acquisition of Mumbai-based Piramal Healthcare‘s
domestic formulation business, with a 4.2% market share, in May, helped Abbott dislodge long
time leader Cipla. Ranbaxy Laboratories, owned by Japan‘s Daiichi Sankyo, having a market
share of 4.83% is ranked third, followed by UK‘s GlaxoSmithKline that controls 4.28% of the
market. Ahmedabad-based Zydus Cadila is fifth with a 3.8% market share. In June 2008,
Japan‘s Daiichi Sankyo had bought Ranbaxy catapulting it to the second position then.
Advinus develops molecule for diabetes
Advinus Therapeutics, the research-based pharmaceutical company promoted by the Tata
Group, on Monday announced the discovery of a novel molecule for the treatment of type II
diabetes — GKM 001. The molecule is an activator of glucokinase; an enzyme that regulates
glucose balance and insulin secretion in the body.
Siemens enters solar, wind power business in India
Siemens has set up an exclusive office in Vadodara, Gujarat, to expand its renewable energy
business in solar and wind power. Siemens said the country is looking to generate up to 20
GW (giga Watts) of solar power by 2022 as part of the National Solar Mission.
Tata Power-led consortium to set up 240-mw project in Indonesia
A consortium led by Tata Power, India‘s largest private power utility, will develop a 240 mw-
geothermal power project in Indonesia. The Tata Power-led consortium will complete the
geothermal project by 2015.
Elitecore launches network security operations in Africa
Ahmedabad-based Elitecore Technologies, a leading provider of network security solutions
announced foray into the African market with its NGN ready billing support system and
operations support system (BSS/OSS) product suits. Elitecore will offer its billing and revenue
management, AAA and PCRF product suites in the African telecommunication market.
HAL, Russian firms seal transport plane venture
Hindustan Aeronautics Ltd and its two Russian partners have signed a shareholders'
agreement to set up a joint venture that will develop and build a new, modern multi-role
transport aircraft (MTA) for their respective air forces. The joint venture company will be based
in Bangalore and the subsidiary in Moscow.
IBS to provide support services for Germany's TUI Group
Travel, transport and logistics major IBS Software has entered into a five-year deal with TUI
Group Airlines to provide support services. The Germany-based TUI AG is a leading travel
group in Europe with interests in travel, hotels, resorts and shipping.
Solar Semi partners Canadian firm
Solar Semiconductor, a photovoltaic (PV) products company, has announced a strategic
partnership with Sonepar, a distributor of electrical and Solar PV products in Canada and
worldwide. This strategic partnership will give contractors and installers access to Solar PV
kits meeting the Ontario Domestic content requirement.
HCL Infosystems enters the gaming zone
First Indian company to launch handheld consoles, set to compete with international brands
like Sony and Nintendo. Delhi-based HCL Infosystems became the first Indian company to
enter the handheld gaming console market earlier this month. The move is part of the
company‘s plans to expand its hardware, services and ICT systems integration and
distribution business. These handheld gaming consoles launched under the ME brand, will
compete with market leaders like Sony‘s PlayStation Portable and Nintendo DS.
Imperial Auto in joint venture with Italian company
Imperial Auto Industries (IAI) and Allevard Rejna Autosuspensions, a company belonging to
Italian group Sogefi, have entered into an alliance to manufacture elastic suspension
components for the domestic and overseas automotive companies. Allevard-IAI Suspensions
Pvt Ltd, a 51:49 joint-venture between the two companies respectively, will initially undertake
manufacturing of stabiliser bar and torsion bar for passenger cars and utility vehicles.
Tata Steel picks up 80% in Canadian ore project for $279 million
Tata Steel has exercised its rights to acquire 80 per cent interest in the Direct Shipping Ore
project of New Millennium Capital Corp, Canada (NML). Tata Steel is the largest shareholder
with 27.4 per cent in New Millennium. It has now exercised its exclusive option to participate in
the DSO project and has a commitment to take the resulting production. According to the joint
venture agreement, Tata Steel will reimburse 80 per cent of NML's cost to date on the DSO
project and arrange funding up to CDN $300 million (about $279 million) of capital costs for
the project to earn its 80 per cent share of the venture.
RPG firm buys 10% in Aussie coal company
The RPG Group-promoted Integrated Coal Mining Ltd, an affiliate company of power producer
CESC Ltd, has acquired 10 per cent stake in Resource Generation (RG), an Australian coal
mining company, for $10.5 million (Rs 45 crore). Integrated Coal Mining will purchase a million
tonnes of thermal coal per annum for three years and two million tonnes per annum for a
further 17 years from RG‘s Boikarabelo mine in South Africa. RG has agreed, it said in a
statement, to place 18,268,053 shares with Integrated Coal Mining at a share price of $0.575.
Forthcoming Events in India
Event Date Source
Automation 2010 September 21-24 www.biztradeshows.com
Power India 2010 October 27-30, www.indiapowershow.com
India Chem 2010 October 28-29, www.indiachem.in
IFSEC India November 23-25, www.ifsecindia.com
Asian Herbal Show November 26-28, www.biztradeshows.com
Global Energy December 2-5, www.biztradeshows.com
India Telecom 2010 December 9-11, www.indiatelecom.org
2010, New Delhi
4th World Ayurveda Congress & December 9-13, www.ayurworld.org
Arogya Expo 2010, Bangalore
5th Vibrant Gujarat Global Summit January 12-13,
2011, Mahatma www.vibrantgujarat.com
International Handloom Fair (IIHF) February 16- 18,
2011, Chennai www.hepcindia.com
India Soft 2011 March 25-26, www.indiasoft.org
******** Assistance for Investors *********
The Government of India has recently set up a joint venture company called “Invest
India” in partnership with Federation of Indian Chambers of Commerce & Industry (FICCI)
and State Governments. The aim of ―Invest India‖ is to promote foreign investment in India in
a comprehensive and structured manner. The company would provide support and
assistance to the investors guiding them through the various procedures for investment and
help them in setting up their business in India. Israeli companies which would like to invest /
open a business in India, can contact “Invest India” to get assistance.
Invest India – Contact Details
General Email: email@example.com
1. Mr. V K Topa
Managing Director, Invest India
Federation House, Tansen Marg
New Delhi 110001, India
Fax: +91-11-23314373, 91-11-23329369
2. Mr. Dushyant Thakor
General Manager, Invest India and Additional Director FICCI
Federation House, Tansen Marg
New Delhi 110001, India
Tel: +91-11-23765085 (D), 23738760-70 Extn 411
******* Database of Indian Exporters / Suppliers ********
The Federation of Indian Export Organizations (FIEO) has prepared a database of
around 12,000 members representing every product and service sector of India, which is
updated on a weekly basis. The database can be accessed at http://www.fieo.org. Importers
may use the "Search" business tool on the FIEO website to search for exporters of their
desired products/services, select the Indian companies of their choice and forward trade
queries directly to their selected companies using the tool. Electronic brochures of the
exporting companies are also being made available on the website to facilitate better decision
making by importing companies. Further, Director General of Federation of the Indian Export
Organisations is available on "Chat Service" of the FIEO website every Wednesday from 3.00
p.m. to 5.00 p.m. (Indian Standard Time) to respond to queries, live, on trading with India
including providing policy clarifications related to investment, banking, taxation, excise,
FEDERATION OF INDIAN EXPORT ORGANISATIONS
NIRYAT BHAVAN, OPP. ARMY HOSPITAL RESEARCH & REFERRAL, RAO TULA RAM MARG,
NEW DELHI 110 057
Business Offers for Israeli Companies
No Company Details Interest
1 Jenith Alloy Steels Manufacturers & Exporters of
Contact Person: Ms. Pranila Upadhyaya Stainless Steel Products (billets,
Tel: 091-731-2430187 wire, wire rods, bright bars and
Fax: 91-731-4068297 black bars)
E-Mail: firstname.lastname@example.org They can supply any grade of
Web: www.jenithsteel.com stainless steel to specification in
Billet Form, Wire Rod Form,
Drawn Wire Form and Bright Bars
and Round Bars.
2 Beeko Scientific Industries Manufacturers & Exporters of
Contact Person: Dev Raj Rana Laboratory Scientific Instrument
Tel: 91-171-2631673 Microscopes. The company is
Fax: 91-171-2600173 interested in importers of
E-Mail: email@example.com Laboratory Equipment,
E-Mail: firstname.lastname@example.org Microscope, Scientific
3 Auro Avenida Exports Pvt.Ltd Leading ISO 9001:2000 certified
Contact Person: V. Niveditha, Project Integrators specializing in
Asst.Manager, Business Development sourcing and exporting diverse
Tel: 91-40-23372771/72 range of products like electrical
Fax: 91-40-23372776 machinery, laboratory, educational
E-Mail: email@example.com equipments, medical and
Web: www.auroavenida.com healthcare accessories
Interested in companies
manufacturing, supplying and
importing laboratory equipments,
medical equipments and
4 Padmalaya International, Tamilnadu Manufacturers & Exporters of
Contact Person: D.Vijaykumar Spices, Coconut Oil and Chillies
Mob: 91-98-430-23379 Interested in importers of Spices.
5 Inis Ventures Ltd Inis Ventures Ltd assists small and
Contact person: Mrs. Michal Beeri mid size Israeli companies with
Mobile: 972-54-4715424 mature products to effectively
Email: firstname.lastname@example.org penetrate into the Indian market.
India office: The company provides a cost
No. 514, 5th floor Somdutt Chambers, II effective local sales representative
Bhikaji Cama Place, New Delhi 110066 office for their clients.
6 Yogsudha This company is interested in
Contact Person: Yogesh Mathur exporting Handicrafts, Garments,
Tel: 91-141-2790924 Leather products.
7 Shri Nidhi Arts and Crafts, Jaipur Manufacturers & Exporters of
Contact Person: Piyush Dadhich Indian Handicrafts and Jewellery.
8 RANGSEY CLOSET, Gujarat, India Manufacturers & Exporters of
Contact Person: Saurin Shah Garments. Have the capacity and
Tel: 91-989871446 can handle about 10000 pieces in
E-Mail: email@example.com assorted sizes. Interested in
Web: www.rangseycloset.com importers of garments.
9 EISCO – ELECTRONIC Manufacturers & Exporters of
INSTRUMENTATION, Ambala, India Scientific & Laboratory
Contact Person: P.K. Jain Instruments, Glassware,
Tel: 91-171-2663087/2662797 Microscopes, Charts and Models
Fax: 91-171-2663595 Interested in importers of
E-Mail: firstname.lastname@example.org laboratory & Scientific
email@example.com Instruments, Educational
Web: www.eiscolabs.com Equipments
10 G.R. Engineers, Mumbai Manufacturers of Steel Forged
Contact Person: Gaurav Dhingra Pipe Flanges and Fittings used in
Tel: 91-2527-240237 Water, Oil, Gas and Petro
Fax: 91-22-26556955 Chemical Industries. Looking for a
E-Mail: firstname.lastname@example.org agent / representative for sale of
Web: www.grengineers.com their products.
Address & contact details of the Commercial Wing, Embassy of India:
140 Hayarkon Street, Tel Aviv 63451 – P.O. Box 6668, Tel Aviv 61033.
Tel: 03-5291999; Fax: 03-5270821;
Please visit our website: www.indembassy.co.il