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Wednesday, March 26, 2008

Auto Sector Latest Updates | Indian Business

Auto Sector is a very dynamic sector comprising of many auto giants such as - Tata Group, Hyundai, Maruti Suzuki, Bajaj Auto, Tvs Motor Company, Skoda Auto, Hinduja Group, Ashok Leyland, Volvo, Ford Motor India, General Motors India Ltd, Honda, Toyota, LML etc. so it has a wide variety of companies ranging from scooters manufacturers to Truck manufacturers and heavy industry manufacturers. also update yourself with latest updates from Auto Sector Updates, Jobs Sector Updates , Energy Sector Updates , Media sector Updates Entertainment Sector Updates , Telecom Sector Updates , Banking Sector Updates , Finance Sector Updates , Healthcare Sector Updates , Biotech Sector Updates , Pharmaceuticals Sector Updates - and get the comprehensive news about growth of indian economy.

Latest Updates of Auto Sector:

April 2008 Auto Sector Updates:

  • Setco Automotive targets to double turnover in three years - (24/4/2008)
  • India supplies horns for 5 lakh BMW luxury cars - (24/4/2008)
  • Auto parts cos to post modest Jan-March profit - (23/4/2008)
  • Apollo group co to sell 15% in arm to PEs for Rs 70 cr - (23/4/2008)
  • BMW opens its first showroom in Kolkata - (24/4/2008)
  • Maruti Q4 net at Rs 297.7 crore - (24/4/2008)
  • Mitsubishi plans to price Outlander at Rs 15.5 lakh - (24/4/2008)
  • Toyota overtakes GM as world's top automaker - (24/4/2008)
  • Tata gets US antitrust clearance for Jaguar, Land Rover - (24/4/2008)
  • Mahindra & Mahindra drives Scorpio to Chile - (23/4/2008)
  • Honda to hike City, Civic prices by up to Rs 10,000 - (23/4/2008)
  • BMW aims to be market leader in premium car segment by 2010 - (23/4/2008)
  • German co to setup heavy truck manufacturing plant in Pune - (22/4/2008)
  • Tatas' world-class R&D hub coming up in UK - (22/4/2008)
  • Indian market to be flooded with luxury sedans - (21/4/2008)
  • Daimler, Hero to invest Rs 4,400 cr in commercial vehicles venture - (21/4/2008)
  • Chinese cars eye emerging markets fo drive fast on export targets - (21/4/2008)
  • M&M set to buy Belgian gear-maker for $475 mn - (21/4/2008)
  • Auto majors plan company-run showrooms to drive car sales - (21/4/2008)
  • Sutlej Motors to meet global standards in bus body building - (20/4/2008)
  • Auto sector corners a large pie of M&As by domestic firms - (20/4/2008)
  • Good demand for bicycles due to fuel price hike - (20/4/2008)
  • Maruti to hike prices in May first week - (20/4/2008)
  • Maruti keeps market share in FY08, Tata loses ground - (19/4/2008)
  • Zip, zap...IIT Delhi's F1 car for Silverstone circuit - (19/4/2008)
  • Higher input costs pushing up bike prices - (19/4/2008)
  • Delhi to sweep streets clean of 15-yr-old cars - (18/4/2008)
  • Beijing auto show spotlights automakers' hopes for booming China market - (17/4/2008)
  • Car companies to hike prices by Rs 4,000-16,000 - (17/4/2008)
  • Rahul Bajaj seeks CLB's permission to convene board meeting - (17/4/2008)
  • Cheap Chinese fake bikes haunt Bajaj Auto - (17/4/2008)
  • Ceat plans to set up 2 new plants in India: Official - (15/4/2008)
  • SC asks Tata Motors to file reply on Singur project - (15/4/2008)
  • M&M showcases hybrid version of Scorpio - (15/4/2008)
  • Chrysler and Nissan unveil production alliance - (15/4/2008)
  • US firm launches new bearings manufacturing plant in India - (16/4/2008)
  • M&M launches Alfa in Andhra Pradesh - (15/4/2008)
  • M&M launches Alfa Passenger in Andhra Pradesh - (14/4/2008)
  • Argentum may roll out luxe cars for Karmann - (14/4/2008)
  • Volvo expects India, China to drive its growth in Asia - (13/4/2008)
  • SC asks Tata Motors to replace defective car - (13/4/2008)
  • Hyundai cuts export target due to strong rupee - (12/4/2008)
  • Mitsubishi Motors to increase its capacity to four folds - (12/4/2008)
  • JK Tyres acquires Mexican tyre co Tornel for Rs 270 cr - (12/4/2008)
  • Oil, environment, lifestyle fuel Asia's two-wheeler boom - (12/4/2008)
  • Toyota's small sedan to debut by 2010 - (12/4/2008)
  • Toyota to invest Rs 1400 cr for small car plant - (11/4/2008)
  • Ajanta to challenge Nano with electric car - (11/4/2008)
  • Tata faces green, not nationality issues with JLR - (11/4/2008)
  • Bajaj-Renault Lite may miss launch date - (11/4/2008)
  • Auto sales dip After seven straight years of growth - (11/4/2008)
  • Fiat may roll out cheaper Palio in BRIC countries - (11/4/2008)
  • Consumer court asks Hyundai Motor to replace faulty engine - (10/4/2008)
  • Automobile sales drop 4.7% in 2007-08 - (10/4/2008)
  • Atlas Copco acquires holding in Indian drilling technology Co - (10/4/2008)
  • Tata Motors' Nano heads for South Africa - (10/4/2008)
  • Indian SMEs help Rover for a smooth drive - (10/4/2008)
  • Ford plans side-view mirrors to track blind spots - (10/4/2008)
  • Indian auto suppliers eye US companies - (9/4/2008)
  • Ford India launches roadside assistances in Chandigarh - (9/4/2008)
  • Steel prices to impact profits of auto firms: Tata Motors - (9/4/2008)
  • Tata Motors on expansion drive in Africa - (9/4/2008)
  • Tata Motors to make trucks in South Africa - (9/4/2008)
  • SRF approves Rs 17 crore expansion project - (9/4/2008)
  • Hero Honda to pump in additional Rs 150 cr in Haridwar - (9/4/2008)
  • Emcon Technologies plans to setup plant in West Bengal - (9/4/2008)
  • Hero Honda starts Haridwar facility - (9/4/2008)
  • Ford India's 24-hour roadside service in Hyderabad - (9/4/2008)
  • Sifcor stake buy to give BFL more market access - (9/4/2008)
  • M&M's Bolero sells 50,000 units in FY08
  • Bharat Forge buys Groupe Sifcor of France - (8/4/2008)
  • Eicher's motor bike unit March sales up 14% - (8/4/2008)
  • India drives BMW's record sales - (7/4/2008)
  • Eicher Motors March sales fall marginally - (7/4/2008)
  • Tata Motors raises truck, bus prices - (7/4/2008)
  • Eicher Motors March sales slip marginally - (7/4/2008)
  • Ashok Leyland March vehicle sales up 27 per cent - (7/4/2008)
  • Maruti to power small cars with genext engines - (7/4/2008)
  • Tatas to focus on 'world truck', goes slow on Iveco deal - (7/4/2008)
  • China is world's 3rd largest motor vehicles producer
  • JK Tyres to invest Rs 480 cr for capacity expansion
  • Maruti Suzuki to launch 'world car' from India by end-2008
  • Nano may steer clear of Sona, eyes cheaper option
  • Hyundai to roll out small car from Chennai plant
  • Steel price hike could affect Nano's Rs 1 Lakh tag
  • Hyundai i10 is JK Tyre-Indian Car of the Year 2008
  • S&P downgrades Tata Motors corporate credit ratings to 'BB'
  • Tata Motors buys Nissan's South African plant
  • Indica engine to power Ace
  • Volkswagen hikes India investment for Skoda Fabia
  • GM shows off Volt, progress toward 2010 launch
  • M&M, I-Venture team buys Italian gear maker Metalcastello

March 2008 Auto Sector Updates:

- TVS launches Scooty Teenz Electric

- Hero Group, UK's Ultra scrap JV plans

- GM shows off Volt, progress toward 2010 launch

- Tata Motors gets nod to produce 'eco cars' in Thailand

- Tata Motors to list on Tokyo Stock Exchange

- Worker dies inside Tata's Singur project site

- Tatas plan to raise $983 million in Japan

- Steel Strips Wheels bags Rs 110-cr order from Renault

- M&M, I-Venture team buys Italian gear maker Metalcastello

- Mahindra sees double-digit growth in FY09

- Duty cut perks up sales figures of auto companies

- TVS Motor March sales down 9% on year

- Maruti posts record annual sales, up 13.3% in '08

- Ferrari may drive into India in 2010

- Tata Motors to invest Rs 6K cr in Pune, M&M readies Rs 1,500 cr for Chakan

- Tata Motors to invest $1.5 billion over 4-5 yrs

- Tata's acquisitions of JLR sparks an outpouring of national pride

- Hinduja Group eyes stake in Valeo

- TVS motor company launches 125CC TVS Flame

- Amtek Auto may lose $18 mn due to global currency turbulence

- Auto component industry seek check on input cost

- Ford sells Jaguar, Land Rover to Tata Motors

- Auto component industry seek check on input cost

- Minda Group becomes darling of global auto firms

- JBM Auto in JV with Italy's Magnetto

- TVS bags TPM award

- Bajaj, Hero Honda, Kinetic plan gas-based 2-wheelers

- Luminous Power to foray into electric 2-wheeler segment

- AAIFR dismisses SEBI, BSE appeals on Dunlop

- Ceat sells surplus Mumbai land

- Apollo Tyres to set up greenfield plant in Hungary

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Indian News by Industry | Highlights of Indian Industry | Indian Economy

Indian Economy constitutes of Numerous Industries which together contribute to indian GDP these industries are very diversed spread in every sphere of the Indian subcontinent - including Auto, Banking and Finance industry, Energy, Health care and biotech, Media Industry, Services industry, Telecom Industry, Transportation Industry etc.

Rail Concession to AIDS patients - From April 1

As a noble gesture towards AIDS patients, Railways will provide 50 per cent concession to them in second class passenger fares to nominated ART centres for treatment. "Railways has decided to grant 50 per cent concession in train fares to AIDS patients for treatment at nominated Anti-Retroviral Therapy (ART) centres," a senior railway official said.

The concession will be applicable only in second class. Station masters are authorised to grant concession to the patients at the stations, the official said, adding they have to produce the certificate in prescribed form issued by officer-in-charge of the concerned ART centre where the patient is to be treated or has been treated. The concession can be availed for return journey after the treatment at nominated ART centres.

However, the concession will not be applicable in Rajdhani, Shatabdi, Jan Sadharan and Garib Rath trains. The official also said the railways plans to launch 'Mother-Child Health Express' in collaboration with Rajiv Gandhi Foundation. "As per the plan, the train with seven coaches would run on a pilot basis for providing medical facilities to mother and child. The train would have facilities like delivery operation room and child health centre," said the official. Railways had on December one last launched the Red Ribbon express in collaboration with National Aids Control Organisation.

6th Pay Commission Report has for all - Salary Hikes for everyone

The sixth pay commission report has salary hikes for all the central government employees while hikes are ranging from 23% to 53% depending upon the category in which the employee falls. There has been looking skeptical however because government officials have still not given any details about the hike officially and the employees have to wait for the report to be announced officially.

Since elections are to be held next year therefore it might be a voters benefit report and governemnt is turning no stone upturn to please voters, P Chitambram presented a please all budget on february 29 /2008.

Moreover, the hikes so recommended have been more generous at the higher levels and lower levels in the government hierarchy, but not so at the middle rung — directors, deputy secretaries, etc. While for a section officer, the increase is 41.8% (24.6% at the higher level), for a director it is 31.1% (23% at higher level). For a joint secretary, the proposed hike translates into 58.7% (44.3% at the higher level), for additional secretary, it is 49% (47.4% at lower level). However, if the house rent allowance and children’s education allowance are not taken into account, the hikes are considerably lower.

For a section officer, the hike is 26.2% (12.2% at the higher level), For a director 21.3% (14.3% at the higher level), for a joint secretary it is 48.2% (35% at the higher level), for additional secretary it is 39.4% (38.1% at the higher level).

The department of expenditure, which is examining the recommendations will take the report to the Cabinet for taking note of it shortly before the Parliament session begins after the recess. After that a committee of secretaries would be constituted to oversee the implementation of the report clause by clause.

Even as the Sixth Pay Commission has recommended an overall increase, ranging between 23% and 58% in various categories, it has failed to cut ice with civil servants.

Tata's Giant Takeover - Ford sells Jaguar / Rover Luxury brands to Tata's

Tata Motors of India finally tookover the luxurious Rover and Jaguar brands from world's number 3 auto maker Ford Motor Company of USA. The deal has been close to US$ 2.5 billion as said by resources. Ford was in constant talks with the Tata's from 2007 when Tata's emerged as the front runner in the takeover deal. This giant takeover would make the presence of indian Tata motors globally, recently Tata Motors also presented it's smallest and cheapest world car at the Geneva Auto Show to attract the world audience and making it's nano trully global car.

If the Tata Nano is well welcomed across the globe after it's commercial launch Tata's annual turnover would touch sky's since Nano is tagged as people's car.

U.S. automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $2 billion, according to a source familiar with the matter.

Ford, which signed the deal on Tuesday, plans to publicly announce the transaction in New York at 0800 EST on Wednesday, said another source. The deal will also see Ford pay about 300 million pounds ($598 million) into Jaguar and Land Rovers' pension funds, according to unions. Ford declined to comment, adding "our first responsibility is to communicate with our employees." The sale had been expected at the start of this month, but it was delayed as the two firms discussed their future relationship, including technology sharing and Ford's provision of engines and body parts for the two brands.

Tata, India's top vehicle maker, has been in talks with Ford since it was chosen as the frontrunner to buy Jaguar and Land Rover a few days into 2008. Tata is pursuing the deal to gain a substantial foothold outside India. But analysts have questioned how Tata will incorporate the luxury brands into its stable of sturdy trucks and functional passenger cars, including the Nano, the world's cheapest car which it unveiled in January.

While Land Rover has generated three years of record sales with its iconic SUVs, the fit of Jaguar is far less clear. Ford, which lost $2.7 billion in 2007 and $12.6 billion in 2006, is spinning off Jaguar and Land Rover to focus on turning around its loss-making operations in North America. The sale will include a commitment by Tata to continue buying engines from Ford, according to unions. All Jaguar and Land Rover's petrol engines are built in a Ford plant in South Wales, supporting hundreds of jobs there.

Diesel engines come from Ford's factory in Dagenham, east London. One of the sources knocked down reports on Indian television earlier on Tuesday that the deal had been closed for $2.65 billion. "That figure of $2.65 billion is highly unlikely," one source close to the deal said of the report on media. "You have to come south from that by quite a bit." Ahead of the media reports, shares in Tata Motors rose 2.7 percent to a three-week closing high of 679.95 rupees, in a Mumbai market that surged 6.1 percent. Ford shares were down 0.2 percent at around $5.95 at 1813 GMT.

Monday, March 17, 2008

Indian Economy Updates Rs v/s $ daily trends - March 2008

Daily rupee trends against US $ month wise (at stock market closing time):

31/3/2008:(Rs v/s US $) 40.11 - (Up^0.04) - with respect to 28/3/2008 rate

28/3/2008:(Rs v/s US $) 40.15 - (Down -0.08)

27/3/2008:(Rs v/s US $) 40.07 - (Up^0.05)

26/3/2008:(Rs v/s US $) 40.12 - (Up^0.22)

25/3/2008:( Rs v/s US $) 40.34 - (Down -0.05)

24/3/2008:( Rs v/s US $) 40.29 - (Up^0.16)

19/3/2008:( Rs v/s US $) 40.62 - (Up^0.15)

18/3/2008:( Rs v/s US $) 40.77 - (Down -0.32)

17/3/2008:( Rs v/s US $) 40.45 - (Up^0.01)

Saturday, March 15, 2008

Indian Budget Projections shattered by US economic recession

Indian budget projections are likely to be shattered by the slowdown in US economy or probably it's recession and government has to make new projections keeping the condition of US economic changes in mind becoz indian economy is governed more or less by US economy, CPI(M) on Saturday demanded immediate halt to futures trading in all essential commodities to contain inflation and corrective measures for the stability of the rupee.

"In order to check speculation and inflation, futures trading must be stopped in all essential commodities though the government has removed pulses, wheat and rice from the purview of forward market due to our pressure," CPI-M Politburo member Sitaram Yechury described.

Stating that the US has officially admitted that its economy was going through rough times, he said, recession, falling value of Dollar and growing unemployment in America would have adverse impact on India and the government must initiate corrective measures to tackle the situation.

Observing that Rupee has appreciated by 13 per cent during the past one year, he said decline in exports and manufacturing sector coupled with badly hit IT and textile sectors would cause considerable loss of jobs.

He said that such a situation has put the projections in the union budget into uncertainties.

It may also be noticed that CPI(M) are also against the nuclear deal and want the indian government to abundan it, they are organising a meeting to discuss the Indo-American nuclear deal on 17th of this month in delhi with government officials.

Sunday, March 9, 2008

Rising Food Prices a concern | Inflation above 5% for february

India needs to be vigilant about rising food prices but achieving a goal of 9 percent economic growth on average over the next few years is feasible, Montek Singh Ahluwalia said in an interview.

Ahluwalia, the deputy head of India's planning commission, said India should consider setting up a sovereign wealth fund to make use of its swelling foreign exchange reserves, although any such move would take time.

Annual inflation accelerated in late February to 5.02 percent, the highest in nearly nine months and above the 5 percent level the central bank wants to contain it at for the fiscal year ending on March 31.

"I think that an inflation rate somewhere between 4.0-5.0 percent, nearer the lower end of that range, is what one can defend. However a lot depends on the composition of inflation," Ahluwalia said in the interview late last week

Prices such as food and fuel should also be kept under "a modest degree" of control, he said. Food prices overseas were rising but the government had taken measures to keep domestic prices under control and internal food stocks were satisfactory.

"So if we have a normal monsoon this year we should not be in difficulty. But constant vigilance is needed and the government gives high priority to this part of the agenda," he said.

The annual southwest monsoon lasts from June to September. Only about 40 percent of farmland is irrigated and the rains can determine spending and consumption patterns in rural areas.

Growth target

India's economy is forecast to grow 8.7 percent in the fiscal year ending March 31, down from an 18-year high of 9.6 percent in 2006/07. Growth in the October-December quarter slowed to an annual 8.4 percent from 8.9 percent in July-September.

The government has a five-year plan with a goal of average growth of 9 percent for the years to fiscal 2011/12, with a target of 10 percent for that last year.

Ahluwalia, one of the top economic advisers to Prime Minister Manmohan Singh, said the target was feasible.

"I agree the next two quarters don't look good for the international economy but I don't think we need to alter our medium-term prospects on that account," he said.

"There are a lot of underlying strengths in the Indian economy that are building up, which augur well for growth."

Ahluwalia supported creating a sovereign wealth fund to earn better returns on India's $300 billion foreign exchange reserves.

"You do want breathing space to manage short-term securities but our reserves greatly exceed what is needed for such management," he said.

"So quite frankly it makes a lot of sense to experiment with foreign wealth funds to earn better returns, but I doubt if we can do that very quickly," he said, adding there were restrictions on how the Reserve Bank of India (RBI) could deploy reserve assets.

Sovereign wealth funds in China, the Middle East and elsewhere have come into existence due to surging oil prices and large U.S. trade deficits. But some U.S. and European policy makers are concerned they could take investment decisions based on political rather than commercial grounds.

"India will probably be viewed much better than many others as a sovereign wealth investor and perhaps we should cash in on that. However, this is an area for the Finance Ministry and the RBI to take a view" Montek said.

Friday, February 29, 2008

Indian Finance Budget 2008-09 HIGHLIGHTS!!

Highlights of the Union Finance Budget as it is being presented by Mr. P. Chitambaram :

Thursday, February 28, 2008

Is Govt sucking blood of 5% taxpayers to run whole country of 125 crores??

Finance Minister Mr. P Chitambaram would present the General Union Finance Budget tomorrow in the Parliament House. It would be seventh budget presented by P. Chitambarm as the finance minister . he presented the first budget in year 1997 some 11 years ago.

It is strongly indicated that there would not be any tax rates cut in tomorrow's budget . India's population is 125 crores and it is horrible to know that the total percent of tax payers is still in single digits ~ 5 percent . There can be hike in taxes in order to compensate for this year's budget deficit.

However the policies of government need to be changed rather then such financial reforms. It is not at all good for the country like India which sucks taxes from only 5% of the population in order to subsidise or feed the rest of the population which is a huge number in excess of 100 crores.

Finance Minister has to bring more industries under the tax knife so as the burden which is imposed on 5% of population to feed the other 95% is reduced as government clearly earns from taxes and import duties which are applicable to just 5% of the total population.

Some of the individuals who are into agri business i.e. the farmers, agricultural land owners of excess then 50 acres does not pay any amount of tax to the government however they earn profits in crores which simply becomes black money which these farmers never show to government.

So Mr. P Chitambaram kindly wake up and rather then sucking blood of 5% of populaion increase the domain of tax payers by bringing the rich farmers who own more then 50 acres of cultivable land under the taxable individuals so that there remains unbiased growth of all sectors .

Indian Economy growth target is again pegged at 9% this year which would be however impossible to sustain as the year runs by. because government has stopped thinking about agricultural sector and is concentrating on the services sector which is more governed by the US economy rather then Indian Economy. Its a bitter truth anyways!!

Monday, February 25, 2008

Indian Union Railway Budget 2008-09 HIGHLIGHTS!!

Lalu Prasad yadav presented a traveller friendly railway budget yet again.
Highlights of the Union Railway Budget 2008-09 are:


Lalu Prasad Yadav presents railway budget in parliament (Updates)

Union Railway Minister lalu Prasad Yadav presented the railway budget for the year 2008-09 in parliament house today ie 26/2/2008 dressed in traditional Lalu style attire he looked cool and composed in his own way. He made common man happy once again as the railway budget consisted of no price hikes in any of the fares rather there were even more trains proposed this year.

It can be noted down that since Lalu Prasad became Railway minister there has been complete turn around in the fortunes of indian railways as once railways were a burden on government as it was running in huge losses from last 5-6 decades but after Lalu taking oath as the railway minister some 3 years back it has been in profit since then and that too in tune of INR 20000 crores which is a whopping amount atlast Lalu can be proud of his great achievement.

In the railway budget for year 2008-09 sops were given for students, senior citizens and common man as there was no rise in the fares and other taxes of the railways. However their is still enough slack in Indian railways that can be exploited to increase revenue without increasing the fares and taxes. Cash surplus projections of the railway budget 2008-09 stand at Rs 21578 crores. Hats off to Mr Lalu.!

Re: Hit Sector feeling Good- Govt to announce Excise Sops in Budget

The main sectros which are greatest hit by the rising rupee including: Textiles, Rubber Sector, Handlooms, Handicrafts, Leather sector and Marine sector are breathing easy as the budget 2008-09 would provide excise duty waivers and extension of the interest rates, It can be noted that these six sectors are highly labour intensive and were greatest hit by the appreciating value of indian rupee in international market, Duty is to be cut on certain sectors like leather, marine sector.

All of these sectors were witnessing a negative growth in exports from the start of the previous fiscal and the local demand also declined due to cheap imports from the other countries to India, So the small business groups of textile hubs like Ludhiana, Jallandhar, Moradabad can see a hope as these cities saw a lot of closures in the past one year.

Monday, February 18, 2008

Indian Economic Updates

Indian Economy is a volatile economy which witnessess up's and down's now and then. so such economy should be tracked daily from reliable sources so that our valuable visitor's get latest updates on Indian Economy. Indian Economic Updates(Rates) would be month wise which would be updated on daily basis .
FEBRUAURY Updates of Indian Economy:
28/2/08- Social sector may not be FM's actual focus

28/2/08- Chidambaram likely to present 'please-all' budget tomorrow

28/2/08- Economic Survey: Economy in high growth trajectory

28/2/08- FM may opt for mid-year allocations

22/2/08- New mining policy nearly ready

22/2/08- Fiscal gap narrowing but underlying stress stays

20/2/08-FM's options for achieving 9% growth

20/2/08-Direct tax collections sustain 40% growth

20/2/08-IT companies reduce wage bill in Q3: Assocham

19/2/08-Interest rates to move downwards: IBA chief

19/2/08-SEZ, promotion of industries top plan agenda

19/2/08-India's crude oil import bill jumps over 29%

18/2/08-Arshiya enters into deal with Singapore govt

18/2/08-Global financing agencies show interest in Bihar growth

18/2/08-Oil steady above $95, buoyed by supply risks

18/2/08-Though few, India-focused firms AIM big on LSE

18/2/08-Poll year may see support of Rs 10,000 cr over GBS

18/2/08-LLPs may not get total immunity for lapses

18/2/08-Insurance sector seeks 49% FDI

18/2/08-Finance Ministry likely to review BCTT in Budget 2008-09

18-2-08-Global financing agencies show interest in Bihar growth

18-2-08-Foreign PE funds may come under surveillance

18/2/08-Need to moderate tax concessions to SEZ: Rangarajan

more updates>>

Saturday, February 16, 2008

Indian Economy : Dwindling Agricultural Sector | Dependent Services Sector

Indian Economy is agricultural economy with about 70% of labour doing jobs which are directly or indirectly related to the Agricultural sector , It has been seen that after the liberalisation of Indian economy in 90's the agricultural growth has come in negative and government looks still helpless. Recently according to stats released by government officials in india the growth of agricultural sector came down to under 3% whereas previous year it was more then 3% hence the future of Indian agriculture looks no good since it is showing negative growth from couple of years and government has still not come up with a concrete solution to control the dwindling agricultural output of India which is still an agricultural based economy.

After the liberalisation policies of Indian government came into effect in early 90's the growth of Indian economy has become more or less concentrated in big cities , Metros like Delhi, Bangalore, Mumbai, Kolkata, Pune, Ludhiana which comprise very less area in total , Still at grass root level there has been nothing done Indian Government boasts of the milestones it has reached but the whole growth of economy is more or less due to foreign players , Business houses which is quite evident that share markets are going down daily volatility in market is increasing.

From past decade indian economy is governed by the situation of US economy ie if the US economy grows indian markets would touch new high's and when any recession would come in US market then Indian Markets tumble down as pack of cards, So the growth of Indian economy is majorly due to foreign companies which come here for expanding there business and Indian government should know it well that they are here for making profits and profit would be in indian rupees which they would use for growin their business in some other under developed country, recently the subprime market woes has adversly affected the Indian services industry in which Indian economy had no role to play but since economy of India is governed by the US economy the effect was clear :Markets Crashed, Jobs in Services industries cut, IPO's failed and investor's lost crores of money in past couple of months.

One Question arises that what would be India's economic conditions if for a minute we forget about metros and talk about the other 85% of the land area of the country
In that case the Indian economic profile would be somewhat like this:
Country : India
Major Industry : Agriculture
Economic Growth rate: less then 3 % and is on further decline
Major Occupation : Farming, Agriculture, 85% population involved directly or indirectly
Reason: Government policies failure Government still sleeping
Future: Dark would have to borrow food crops and the overall debt would further increase.
Summary: Government needs to change the economic policies so that the growth is more even and not concentrated in and around big cites and metro's.

Time has come when India needs to learn from China- as China has developed everything on it's own without very less help of foreign currencies where as Indian economy is totally in contrast of the chineese economy...to be continued..