Of the BRIC economies, Brazil is struggling as commodity prices fall, Russia is headed toward recession due to weak oil revenues and sanctions from Western nations, while China is slowing down. However, in India the stock market and rupee are surging; multinational companies are looking to start new operations or expand their current ones; foreign investment rules have been relaxed for insurers, military contractors, and real estate companies; and a broad tax overhaul is underway. Whether India’s momentum is sustainable or short-lived depends on whether Prime Minister Modi can push through deeper reforms.
The New York Times quotes Shailesh V. Haribhakti, the chairman of MentorCap Management, a boutique investment bank in Mumbai as saying, “All the circumstances have come together to make manufacturing and growth happen.”
With prices of crude halved, fuel costs have dropped and along with it, transport expenses and inflation. The country’s chronic budget deficits are narrowing. “We’ve got essentially a $50 billion gift for the economy,” said Raghuram G. Rajan, the governor of the Reserve Bank of India.
Modi has many economic issues on his plate that he needs to attend to: expanding the private sector’s role in coal mining, a government-dominated industry; accelerating infrastructure projects; replacing state taxes on goods that cross state borders with a national tax; and acting on bills introducing longer term reforms.
Jayant Sinha, the minister of state for finance said that the government had begun making significant changes and that “there are a lot of inherited, legacy issues” they have had to work through such as budget deficits and persistent inflation. “You have to give us a little bit of time for every business to feel the difference,” he said.
February 19, 2015 No Comments
Comedian Jerry Seinfeld will perform two shows in Mumbai in March. The comedian who won the Emmy award will appear at the Stage42 festival and is scheduled to perform on March 14 and 15, says The Hollywood Reporter.
“I have always been fascinated by India and its culture,” Seinfeld said in a statement. “I have great respect for its people and their way of life. It is a great honor for me to be invited to come there and make fun of it in person.”
February 17, 2015 No Comments
Fortune 500 company New Jersey headquartered Sealed Air Corporation says India is its fastest growing geography. “India for us I would call within Sealed Air, a mid-sized country, it’s in the top 15 countries but with the highest growth rate,” Jerome Peribere, president and CEO told the television network NDTV.
Sealed Air is a packaging company known for its brands – Cryovac food packaging, Bubble Wrap cushioning, and Diversey cleaning and hygiene. It has two units in India – in Mumbai and Bangalore. The company is growing at 3 times India’s GDP growth and expects even more robust growth going forward by creating value addition in industries.
Because of the company’s level of expertise in their laundry business in India where their technology has been able to save 40% both in the usage of water and in energy consumption, Peribere said, “We are going to increase our manpower by 50 per cent, and we are going to make our global laundry labs in India because we have an extraordinary and growing business here in India.”
January 13, 2015 2 Comments
According to VCCircle.com, global real estate consultancy firm Cushman & Wakefield has reported that Bangalore, NCR, Mumbai, Hyderabad, Pune, Chennai, Ahmedabad, Kolkata are the top eight cities that are expected to have a robust supply pipeline of 46.4 million square feet of office space available in 2015. The release said this supply is likely to favor tenants, presenting them a variety of quality options to choose from and negotiating power in the short term.
The overall vacancy for top eight cities, is estimated to rise to 19% this year. The rise will be fueled by companies in IT-ITeS, banking, financial services and insurance sectors (BFSI), pharmaceutical and manufacturing sectors which are expected to ramp up their operations due to the impact of improved business sentiment, political stability and India’s economic scenario.
January 3, 2015 No Comments
Anticipating prospects in India, German chemical company BASF SE has started the process of constructing a new innovation campus at its existing facility in Thane, on the outskirts of Mumbai, India. The investment in this campus will be $61.8 million. The India center will hire 300 scientists to work on areas such as crop protection, process development, and polymer research. The new Mumbai campus will create opportunities for building and expanding customer relationships and scientific cooperation programs that will benefit both BASF and the India R&D community, BASF India chairman and managing director Raman Ramachandran said.
Martin Brudermüller, vice chairman, told Plastics News: “We strongly believe that the time has come when we have to hike our presence in this market. Our business has grown to a certain level from where we think we have to give R&D support to our growing customer base and expanding operation in India.”
“The idea is to integrate our R&D set-up in India and operate from a single platform. The Thane innovation campus will be a key hub of BASF’s global research and development network and, next to Shanghai, BASF’s second major R&D location in Asia Pacific,” Brudermüller said.
Earlier, in October this year, BASF inaugurated a $160 million chemical complex in Dahej, in the state of Gujarat.
December 12, 2014 No Comments